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separately charged fees or service charges assessed by the Developer which are required of all <br />tenants, other than security deposits, (c) a reasonable allowance for an adequate level of service <br />of utilities not included in (a) or (b) above, including garbage collection, sewer, water, <br />electricity, gas and other heating, cooking and refrigeration fuels, but not including telephone <br />service, and (d) possessory interest, taxes or other fees or charges assessed for use of the land <br />and facilities associated therewith by a public or private entity other than the Developer. In the <br />event that all utility charges are paid by the landlord rather than the tenant, no utility allowance <br />shall be deducted from the rent. "Monthly Rent" does not include optional payments by tenants <br />for optional services provided by the Developer or the Property Manager. <br />6. Occupancy Limits. The maximum occupancy of the Rental Units shalt not <br />exceed more than such number of persons as is equal to the sum of the number of bedrooms in <br />the unit, multiplied by two (2), plus one (1). For the two (2) bedroom units, the maximum <br />occupancy shall not exceed five (5) persons. For the three (3) bedroom units, the maximum <br />occupancy shall not exceed seven (7) persons. <br />7. Marketing Program. The Developer shall prepare and obtain Agency Executive <br />Director's approval, which approval shall not be unreasonably withheld, of a marketing program <br />for the leasing of the Rental Units within each Phase (the "Marketing Program"). The leasing of <br />the Rental Units shall be marketed in accordance with the approved Marketing Program as the <br />same may be amended from time to time with Agency Executive Director's prior written <br />approval, which approval shall not unreasonably be withheld. The Developer shall provide the <br />Agency with periodic reports with respect to the leasing of the Rental Units. The Marketing <br />Program shall contain a Lottery and Wait List/Preference List for initial lease-up only. The <br />Developer shall be responsible to organize, schedule and coordinate a lottery drawing to select <br />potential tenants for the Rental Units for initial lease-up only, which shall be open to the public. <br />The lottery shall take place not less than 90 days prior to completion of the applicable Phase of <br />the Rental Units. Preference in the lottery, so long as not inconsistent with federal and State law <br />(including, without limitation, all fair housing laws, rules and regulations), shall be given as <br />follows: <br />(1) Any persons who have been displaced from their residences due to <br />programs or projects implemented by the Agency within the Station District; and <br />(2) Other households who live or work in Santa Ana. <br />Subject to all fair housing laws, rules, and regulations, all categories shall receive <br />preference in the order listed. The requirements of this Section 401.7 shall only apply to the <br />extent that the number of applicants for Rental Units exceeds the number of Rental Units <br />available for lease upon initial lease-up. <br />For the purpose of the lottery drawing, the lottery will be divided by those who <br />have claimed a preference and those who do not. All lottery forms will be drawn and numbered <br />to create a complete list of alternate applications. <br />The Developer shall provide written notification to lottery participants informing <br />them of the results and their priority number. This priority number represents the order with <br />ATTACHMENT NO. 7-3 <br />DoCSOGI 400673v 141200272-0001