Agmt 2013 Alameda Housing Associates LC

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• 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 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; 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 or 90% of AMI, as necessary to comply with Section 2.1. • 2.2.2 Notice of Affordability Restrictions on Transfer of Property. 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 18 6508;8223 1 339451.3 5