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requirements than those imposed hereby, the requirements of such other lenders, investors or regulatory agencies shall prevail. 2.2 Rents for Restricted Units. Rents for P.e:tricted Units shall be limited to Affordable Rents for households of the applicable income limit in accordance with Section 2.1 and Exhibit B . A household which at initial occupancy qualifies as Very Low- Income or whose household income is less than or equal to 90% of AMI, 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 as Very Low - Income or whose household income is less than or equal to 90% of AMI 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, subject to Section 2.2.1. 2.2.1 If upon recertification of tenant incomes, Owner determines that a Very Low Income tenant's household income has increased and exceeds the qualifying income for a Very Low Income Unit but does not exceed the maximum qualifying. income for a 90% Unit, then, upon expiration of the tenant's lease: (i) Such tenant's unit shall be considered a 90% Unit; (ii) Upon sixty (60) days' written notice to the tenant, such tenant's rent may be increased to the lesser of (a) an Affordable Rent for a 90% Unit, (b) the maximum rent permitted pursuant to Health and Safety Code Section 50053(b), and (c) the fair market rent for the unit; and (iii) Owner shall rent the next available unit at an Affordable Rent to a household whose gross household income does not exceed Very Low Income. If upon recertification of tenant incomes, Owner determines that a Very Low Income or a 90% AMI tenant's household income has increased and exceeds the qualifying income for a 90% Unit, then, upon expiration of the tenant's lease: (i) Such tenant's unit shall be considered a 90% Unit; (ii) Upon sixty (60) days' written notice to the tenant, such tenant's rent may be increased to the lesser of: (a) thirty percent (30 %) of the tenant's actual household income; and (b) the fair market rent for the unit; anc (iii) Owner shall rent the next available unit at an Affordable Rent to a household whose gross household income does not exceed Very Low Income or 90% of AMI, as necessary to comply with Section 2.1. 1865088.5 5