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Without limiting the generality of the foregoing, Owner shall comply with lease terms for HOME Assisted Units as governed by 24 CFR Part 92.253 (including the requirement that tenants of the HOME Assisted Units may be evicted only for serious or repeated violation of their lease, violation of applicable federal, state or local law, or for other good cause), and with all other applicable federal HOME requirements set forth in 24 CFR Part 92.350 -358. The HOME Assisted Units shall be considered "floating units" within the meaning of 24 CFR Section 92.252(j). 2.2 Rents for Restricted Units Rents for Restricted Units shall be limited to Affordable Rents for households of the applicable income limit in accordance with Section 2.1 Notwithstanding the foregoing, no tenant qualifying for a Restricted Unit shall be denied continued occupancy of a unit in the Project because, after admission, such tenant's adjusted income increases to exceed the qualifying limit for such Restricted Unit. A household which at initial occupancy qualifies in a particular income category shall be treated as continuing to be of such income category so long as the household's gross income does not exceed 140% of the applicable income limit. In the event the gross household income of a household that qualified at the applicable income limit at initial occupancy exceeds the applicable income limit for a unit, that unit will continue to be considered as satisfying the applicable income limit if the unit remains Rent - Restricted. If upon recertification of tenant incomes, Owner determines that a tenant has a household income exceeding the maximum qualifying income for such tenant's unit, the tenant shall be permitted to continue to occupy the unit, and upon expiration of the tenant's lease and upon sixty (60) days' written notice, Owner may increase the rent for such unit to the lesser of one - twelfth of thirty percent (30 %) of the tenant's actual household income or the fair market rent, and Owner shall rent the next available unit to a tenant whose household income does not exceed the applicable income limit in order to achieve the affordability requirements of this Agreement. With respect to the HOME Assisted Units, the HOME Regulations shall prevail in the event of inconsistency between the provisions of Section 2. 1 or Section 2.2 and the HOME Regulations. 2.4 Unit Sizes, Design and Location The Restricted Units shall be of comparable design quality as unrestricted units in the Project, but may have reduced interior amenities. Tenants of Restricted Units shall have access to all common facilities of the Project equal to that of tenants of units in the Project that are not Restricted Units. 2.5 Manager's Unit One dwelling unit in the Project may be used as a resident manager's unit, and shall be exempt from the occupancy and rent restrictions set forth in this Agreement. 2.6 No Condominium Conversion Owner shall not convert the residential units in the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the residential portion of the Project or any part thereof during the 1753724.3 6