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Vista Del Rio under any project -based rental voucher (other than with respect to the subsidy pursuant to the HAP Contract) shall not exceed the difference between thirty percent (30 %) of the tenant's actual gross income and Affordable Rent chargeable for the applicable Unit hereunder (and under the Regulatory Agreement). (c) Vista Del Rio hereby acknowledges and agrees that, upon completion of construction of the Project and leasing of the Units to Extremely Low Income and Very Low Income households pursuant to this Agreement, the DDA and the Affordability Restrictions, Vista Del Rio will have received governmental subsidies from Authority, City, Successor Agency and TCAC (through the Tax Credits allocated to the Project) in exchange for Vista Del Rio's agreement to limit the rents charged to tenants of the Project to an Affordable Rent and Vista Del Rio further acknowledges and agrees that, except for the HAP Contract payments with respect to 8 Assisted Units, which are part of the approved financing for the Project, acceptance of additional governmental rental subsidies (without the consent of the Executive Director) resulting in total, cumulative rent payments to Vista Del Rio in excess of an Affordable Rent for any of the Units at the Project would constitute an unjustified windfall to Vista Del Rio at the expense of Authority and the federal and state governments. Further, with respect to the HOME Units, the HOME Regulations prohibit application of any Project Based Section 8 assistance, Portable Voucher, or other rental subsidy that, cumulatively with the rent to be paid by the tenant household, exceeds an Affordable Rent calculated pursuant to the HOME Regulations. 7.4 Rent Increases. On an annual basis, the Executive Directors shall provide Vista Del Rio with the maximum allowable schedule of Affordable Rents for the Property in accordance with changes in allowable rent and income tables published by HUD and the State of California, provided however that the rent for the HOME units shall in no event be higher than the rent for the equivalent Successor Agency assisted Unit. In no event shall Vista Del Rio charge any tenant more than the Affordable Rents prescribed for the Units pursuant to this Agreement and as directed by the Executive Directors. 8. [RESERVED.] 9. GENERAL PROVISIONS AND WARRANTIES As a material inducement to City and Successor Agency to enter into this Agreement, Vista Del Rio represents and warrants as follows: 9.1 Formation, Qualification and Compliance. Vista Del Rio (a) is a limited partnership, validly existing and in good standing under the laws of the State of California, (b) has all requisite authority to conduct its business and own and lease its properties, and (c) is qualified and in good standing in every jurisdiction in which the nature of its business makes qualification necessary or where failure to qualify could have a material adverse effect on its financial condition or the performance of its obligations under the Loan Documents. Vista Del Rio is in compliance with all Governmental Requirements applicable to its business and has obtained all approvals, licenses, exemptions and other authorizations from, and has accomplished all filings, registrations and qualifications with, any Governmental Authority that are necessary for the transaction of its business. 20 DOCSOC/ 1475221 v 10/200272 -0004