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2.2.2 Notice of Affordability Restrictions on Transfer of Pro ert . Owner and City shall execute a Notice of Affordability Restrictions on Transfer of Property substantially in the form attached hereto as Exhibit D , and shall cause such notice to be recorded substantially concurrently with the recordation of this Agreement. 2.3 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 Project Units that are not Restricted Units. The Restricted Units shall be allocated among affordability categories as set forth in Exhibit B . 2.4 Manager's Unit. Two (2) dwelling units in the Project may be used as resident managers' units, and shall be exempt from the occupancy and rent restrictions set forth in this Agreement. 2.5 No Condominium Conversion. Owner shall not convert the Project to condominium or cooperative ownership or sell condominium or cooperative rights to the Project or any part thereof during the term of this Agreement. 2.6 Non - Discrimination' Compliance with Fair Housing Laws. 2.6.1 Preferences. In order to ensure that there is an adequate supply of affordable housing within the City of San Leandro for residents and employees of businesses within the City, to the extent permitted by law and consistent with the program regulations for funding sources used for development of the Project, at initial lease up, Owner shall give a preference in the rental of the residential units in the Project to eligible households that include at least one member who lives or works in the City of San Leandro. Owner agrees to use targeted marketing to local residents and employees to increase awareness of the availability of units in the Project, including without limitation, advertising in local media such as the San Leandro Times and local - serving bilingual media and undertaking outreach to the San Leandro Unified School District, City employees and the San Leandro Chamber of Commerce. 2.6.2 Fair Housing. Owner shall comply with state and federal fair housing laws in the marketing and rental of the units in the Project. Owner shall accept as tenants, on the same basis as all other prospective tenants, persons who are recipients of federal certificates or vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto. 2.6.3 Non - Discrimination. Owner shall not restrict the rental, sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, or national origin of any person. Owner covenants for itself and all persons claiming under or through it, and this Agreement is made and accepted upon. and subject to the condition that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in 1865088.5 6