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(p) City shall not be required to approve disbursement of any amount which, in City's
<br />opinion, will reduce that portion of the undisbursed funds designated for the cost of completion of
<br />the rehabilitation below that amount needed to pay for the labor and materials necessary to
<br />complete the work.
<br />(q) Borrower and City shall maintain records which accurately and fully show the date,
<br />amount, purpose, and payee of all expenditures from the Loans. Each party has the right at all
<br />reasonable times to inspect the books and records of the other party as pertinent to the purposes of
<br />this Agreement.
<br />(r) It is understood and agreed that the City shall have no liability to Borrower by reason of
<br />the failure to perform or inadequate performance of any contractor retained by Borrower for work
<br />on the Project.
<br />4. Obligation to Refrain from Discrimination
<br />Borrower herein covenants by and for him/herself, his/her heirs, executors, administrators
<br />and assigns, and all persons claiming under or through them, that there shall be no discrimination
<br />against, or segregation of, any person or group of persons on account of race, color, creed, religion,
<br />sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy,
<br />tenure or enjoyment of the Property, or any part thereof, nor shall Borrower himself or any person
<br />claiming under or through him, establish or permit any such practice or practice of discrimination
<br />or segregation with reference to the selection, location, number, use or occupancy of tenants,
<br />lessees, subtenants, sublessees or vendees in the Property.
<br />5. Low and Moderate Income Housing Covenant
<br />(a) Borrower covenants and agrees for him/herself, his/her heirs, executors, administrators
<br />and assigns, and every person acquiring an interest in the Property or any part thereof, that, for a
<br />period of 15 years or as long as these Loan remain outstanding, commencing upon the recordation
<br />of the Deed(s) of Trust, the Property shall be owned and occupied exclusively by persons or
<br />families with a household income that does not exceed 80% of the median income for the area,
<br />adjusted for family size, as determined by HUD.
<br />(b) Borrower represents and warrants to City that the information relating to Borrower's
<br />household income that has been provided by Borrower to City to verify Borrower's eligibility for
<br />the Loans is true, correct and complete as of the date such information was provided to City and as
<br />of the date of this Agreement. If any such information changes prior to the close of escrow for the
<br />rehabilitation of the Property, Borrower shall promptly notify City of such change. Borrower
<br />acknowledges that City is relying upon the representations made by Borrower with respect to
<br />Borrower's household income and that City would not enter into this Agreement if Borrower's
<br />household annual income were in excess of 80% of the median income for the area, adjusted for
<br />family size, as determined from time to time by HUD.
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