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make monthly deposits from project income into the Replacement Reserve in accordance with
<br />Developer's Budget, as amended from time to time. Developer may withdraw funds from the
<br />Replacement Reserve Account solely to fund capital improvements for the Project, such as
<br />replacing or repairing structural elements, furniture, fixtures or equipment of the Project that are
<br />reasonably required to preserve the Project. Developer may not withdraw funds from the
<br />Replacement Reserve Account for any other purpose without the prior written approval of the
<br />City.
<br />13. NONDISCRIMINATION COVENANTS
<br />13.1 Obligation to Refrain from Discrimination. Developer covenants and agrees that:
<br />(a) In Use of Property. There shall be no discrimination against or segregation of
<br />any person, or group of persons, on account of race, color, creed, religion, sex, marital status,
<br />national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or
<br />enjoyment of the Property, nor shall Developer or any person claiming under or through it,
<br />establish or permit any such practice or practices of discrimination or segregation with reference
<br />to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or
<br />vendors of the Property.
<br />(b) In Affordable Housing Restrictions. The foregoing covenant shall (a) be
<br />included in the Affordability Restrictions on Transfer of Property, (b) run with the land, and (c)
<br />remain effective for the term of the contract (for 55 years).
<br />(c) In Employment. In construction on the Property, Developer shall not
<br />discriminate against any employee or applicant because of race, color, creed, religion, sex,
<br />marital status, disability, national origin, or ancestry. Developer shall take affirmative action to
<br />ensure that applicants are employed, and that employees are treated during employment, without
<br />regard to their race, color, disability, creed, religion, sex, marital status, disability, national
<br />origin, or ancestry.
<br />(d) In all Contracts. Developer shall cause the foregoing covenants to be inserted
<br />in all contracts for any work covered by this Agreement so that such provisions will be binding
<br />upon each contractor for the benefit of City, provided that the foregoing covenant shall not apply
<br />to contracts or subcontracts for standard commercial supplies or raw materials.
<br />14. ENVIRONMENTAL MATTERS
<br />14.1 Representation and Warranty. Except as disclosed in writing to the City, Developer
<br />has no knowledge (a) of the presence on, under or about the Property, now or in the past, of any
<br />Hazardous Materials, or of the transportation to or from the Property of any Hazardous
<br />Materials, (b) that asbestos or polychlorinated biphenyls (PCBs) are contained in or stored on the
<br />Property, or (c) that there are any underground storage tanks located in, on or under the Property.
<br />14.2 Compliance with Environmental Laws. Developer shall (a) comply with all
<br />environmental laws and environmental permits applicable to the construction of the Property, (b)
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