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(b) HOME Units continue to qualify as affordable housing despite a temporary <br />non - compliance caused by increases in the incomes of existing tenants if actions satisfactory to HUD <br />are being taken to ensure that all vacancies are filled in accordance with this section until the non- <br />compliance is corrected. <br />11.21 Other HOME Program Requirements. Vista Del Rio shall comply with all other <br />applicable requirements of the HOME Program, the Section 8 Requirements, and the CRL. <br />11.22 Controlling Covenants. If there is a discrepancy between State and Federal law <br />with regard to any of the aforementioned covenants, the more stringent shall apply. <br />12. MAINTENANCE, MANAGEMENT, OPERATION, PRESERVATION AND REPAIR <br />OF PROPERTY <br />12.1 Maintenance. Vista Del Rio shall, at its sole cost and expense, maintain or cause to <br />be maintained the interior and exterior of the Project and all Units thereof and the Property in a <br />decent, safe and sanitary manner, in accordance with the HUD Housing Quality Standards (HQS) <br />and the maintenance standards required by Section 92.251 of the HOME Regulations, and in <br />accordance with the standard of maintenance of first class apartments within Orange County, <br />California. None of the Units in the Project shall at any time be utilized on a transient basis, nor shall <br />the Property or any portion thereof ever be used as a hotel, motel, dormitory, fraternity or sorority <br />house, rooming house, hospital, nursing home, sanitarium or rest home, or be converted to <br />condominium ownership. If at any time Vista Del Rio fails to maintain the Project or the Property in <br />accordance with this Agreement and such condition is not corrected within five (5) Business Days <br />after written notice from City or Successor Agency with respect to graffiti, debris, and waste <br />material, or thirty (30) days after written notice from City or Successor Agency with respect to <br />general maintenance, landscaping and building improvements, then City and Successor Agency, in <br />addition to whatever remedy they may have at law or at equity, shall have the right to enter upon the <br />applicable portion of the Project or the Property and perform all acts and work necessary to protect, <br />maintain, and preserve the Project and the Property, and to attach a lien upon the Property, or to <br />assess the Property, in the amount of the expenditures arising from such acts and work of protection, <br />maintenance, and preservation by City and Successor Agency and /or costs of such cure, including a <br />reasonable administrative charge, which amount shall be promptly paid by Vista Del Rio to City or <br />Successor Agency, as applicable, upon demand. The liens created under this Section shall be subject <br />and subordinate to the lien of the mortgage or deed of trust encumbering the Property (or any part of <br />the Property) for the Construction Loan and the Senior Loan approved pursuant to the terms of this <br />Agreement. The City and /or Successor Agency shall inspect the Property annually after the date of <br />issuance of the Release of Construction Covenants as described in Section 310 of the DDA and Vista <br />Del Rio shall cooperate with the City and Successor Agency to make the Property and all Units <br />thereon available for such inspection. <br />12.1.1 Alterations and Repair. Vista Del Rio shall not remove, demolish or <br />materially alter any Improvement without City's prior consent, except to make non - structural repairs <br />which preserve or increase the Property's value, and shall promptly restore, in a good and <br />professional manner, any Improvement (or other aspect or portion of the Property) that is damaged or <br />destroyed from any cause. <br />12.2 Compliance with Laws. Vista Del Rio shall comply with all laws and requirements <br />of Governmental Authority (including, without limitation, all requirements relating to the obtaining <br />28 <br />DOC SOC/ 1475221 v 10/200272 -0004 <br />