Item 12 - Density Bonus Agreement No. 2025-03

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require the lessee thereunder to require each prospective sub -tenant to complete a Tenant Income Verification Form (in substantially the form attached hereto as Exhibit B) certifying that the resident(s) occupying the Affordable Unit is/are an Eligible Household and otherwise meet(s) the eligibility requirements established for the Affordable Unit under this Agreement. If an Affordable Unit subject to a Master Lease is not rented within thirty (30) days, then the City shall have the right to require termination of the Master Lease or declare a default under this Agreement for failure to fully utilize the Affordable Unit. The Master Lease shall require compliance with this Agreement, and nothing in this paragraph or the Master Lease shall relieve Developer from compliance with the obligations of this Agreement. 4.9 Income Verification and Certification. Developer shall make reasonable efforts to verify or cause to be verified that the income and asset statement provided by an applicant in an income certification is accurate by taking, at a minimum, at least one of the following steps as a part of the verification process: (1) obtain three months consecutive pay stubs for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 4.9.1 Gross Household Income. Gross household income means all income from whatever source from all adult Household members, which is anticipated to be received during the 12-month period following the date of the determination of Gross Household Income. The applicable sources of income are defined in California Code of Regulations Title 25 Housing and Community Development Section 6914. 4.9.2 Annual Recertification. Developer agrees to recertify or cause to be recertified household eligibility annually. Notification of Annual Tenant Recertification shall be sent to the household in substantially the form attached hereto as Exhibit C. An Annual Rental Housing Compliance Report ("Annual Compliance Report") shall be sent by Developer to the City in substantially the form attached hereto as Exhibit D for City's review and approval. The Annual Compliance Report shall be due to the City within 30 days of the anniversary of the commencement of the Affordability Term, which is the date that each building receives all required occupancy permits from the City. 4.9.3 Continued Income Qualification and Vacated Affordable Units. If the annual recertification demonstrates that a previously Eligible Household's gross household income exceeds the allowed Median Income for the Affordable Unit, the Developer will be considered in compliance with this agreement so long as one of the following pertinent actions from the following list is taken: (a) The Developer may offer to rent the unit to the previously, but no longer, Eligible Household as an Unrestricted Unit without any limitations on rental rates. In that case, the Developer must then make available for rent to an Eligible Household another unit within the Project that meets the size and location requirements for Affordable Units under this Density 11 2130 East Fourth Street Density Bonus Agreement 55394.00101 \43846773.1