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hours' notice to Developer, which shall promptly give notice to Tenants of the Affordable Unit to <br />be inspected. <br />4.7 Affordable Rental Lease Agreement. Developer shall prepare and obtain City's <br />approval, which approval shall not be unreasonably withheld, conditioned or delayed, of a rental <br />lease agreement for the Affordable Unit ("Affordable Unit Lease Agreement") for the Affordable <br />Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members <br />of the household who will occupy the Affordable Unit; and 2) state that the Household's right to <br />occupy the Affordable Unit is subject to compliance with the Median Income requirements, <br />adjusted for family size appropriate to the unit, as periodically published by HCD. All Affordable <br />Unit Lease Agreements must be consistent with the terms contained in this Density Bonus <br />Agreement. <br />4.8 Selection of Tenants. <br />4.8.1 Developer shall be responsible for the selection of tenants for the Affordable <br />Units in compliance with lawful and reasonable criteria and the requirements of this Agreement. <br />4.8.2 Local preference for Santa Ana residents and workers in tenant selection for <br />the Affordable Units shall be a requirement of the Project. Subject to applicable laws and <br />regulations governing nondiscrimination and preferences in housing occupancy required by the <br />State of California, the Developer shall give preference in leasing the Affordable Units to <br />households that live and/or work in the City of Santa Ana or who have an active Housing Choice <br />Voucher issued by the Housing Authority of the City of Santa Ana or any other Public Housing <br />Authority. <br />4.8.3 All applicants for Affordable Units will be screened and "lotterized." A <br />waiting list will be created from a lottery generated from the initial pool of rental applications. <br />The waiting list will track applicant name and contact information, lottery number (or designated <br />number after the initial lottery), household income, household size, status of application, and any <br />other information deemed necessary. The waiting list will be maintained as an electronic file and <br />available for audit by the City of Santa Ana in accordance with resident selection procedures as <br />set forth herein. <br />4.8.4 Prior to the rental or lease of an Affordable Unit to a tenant(s), Developer <br />shall require the tenant(s) to execute a written lease and to complete a Tenant Income Verification <br />Form (in substantially the form attached hereto as Exhibit B) certifying that the tenant(s) <br />occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility <br />requirements established for the Affordable Unit. Developer shall verify the income of the <br />tenant(s) as set forth herein. <br />4.8.5 The Developer may rent or lease an Affordable Unit(s) to a nonprofit <br />organization or an entity affiliated with a nonprofit organization, provided that the nonprofit <br />organization or entity is required as a condition of that lease (a "Master Lease") to sublease the <br />Affordable Unit to an Eligible Household. The Master Lease shall be provided to the City, which <br />shall have thirty (30) days to review and approve, which approval shall not be unreasonably <br />withheld. Prior to the rental or lease of an Affordable Unit under a Master Lease, Developer shall <br />10 <br />2130 East Fourth Street Density Bonus Agreement <br />5 53 94.0010 1 \43846773.1 <br />