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<br /> E. Rents During Construction/Rehabilitation: Upon close of escrow, tenants will be notified <br /> that leases will be modified to reflect a new rent structure per this Agreement, but in no event will it <br /> be more than they are currently paying. <br /> 502. Affordable Gross Starting Rents (Less Reasonable Utility Allowance): Initial <br /> rents maybe recalculated to allowable rental amounts at the time of initial lease-up following <br /> completion of construction in accordance with any changes in allowable rent and income tables as <br /> published by HUD and the State of California. <br /> 503. Rent Increases: On an annual basis, the City shall provide the Developer with the <br /> maximum allowable schedule of rents for the Property. In no event can Developer charge any <br /> tenant more than such amount. <br /> 504. Recertification of Tenant Income. <br /> a. Developer shall take all necessary steps to review the income of all tenants prior to <br /> renting to them, as well as reviewing current tenants on an annual basis, in accordance <br /> with NSP regulations and guidelines. Every fifth (5th) year, Developer shall require new <br /> original income documents to be submitted by tenants. Tenants in NSP assisted units <br /> whose incomes no longer comply with federal income guidelines shall have their rents <br /> adjusted in accordance with federal NSP guidelines. <br /> b. NSP assisted units continue to qualify as affordable housing despite a temporary non- <br /> compliance caused by increases in the incomes of existing tenants if actions satisfactory <br /> to HUD are being taken to ensure that all vacancies are filled in accordance with this <br /> section until the non-compliance is corrected. <br /> 505. Obligation to Refrain from Discrimination. Developer covenants and agrees for <br /> itself, its successors, its assigns and every successor in interest to the Property or any part thereof, <br /> that there shall be no discrimination against or segregation of any person or group of persons on <br /> account of race, color, creed, religion, sex, marital status, ancestry or national origin in the sale, <br /> lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property nor shall Developer <br /> itself or any person claiming under or through him establish or permit any such practice or practices <br /> of discrimination or segregation with reference to the selection, location, number, use or occupancy <br /> of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall <br /> run with the land and shall remain in effect for the term of the Agreement. <br /> 506. Maintenance. Developer shall maintain the Property (and all abutting grounds, <br /> sidewalks, roads, parking and landscape areas which Developer is otherwise required to <br /> maintain) in good condition and repair; shall operate the Property in a businesslike manner; shall <br /> prudently preserve and protect its own as well as the City's interests in connection with the <br /> Property; shall not commit or permit any waste or deterioration of the Property (except for <br /> normal wear and tear); shall not abandon any portion of the Property or leave the Property <br /> unguarded or unprotected; and shall not otherwise act, or fail to act, in such a way as to <br /> 10 <br /> 25K-46 <br /> <br />