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2890662.3 40 <br />2.7.1 Fair Housing. Owner shall comply with state and federal fair <br />housing laws in the marketing and rental of the units in the Project. Owner shall accept <br />as tenants, on the same basis as all other prospective tenants, persons who are <br />recipients of federal certificates or vouchers for rent subsidies pursuant to the existing <br />Section 8 program or any successor thereto. <br />2.7.2 Non-Discrimination. Owner covenants for itself and all persons <br />claiming under or through it, and this Agreement is made and accepted upon and <br />subject to the condition that there shall be no discrimination against or segregation of <br />any person or group of persons on account of any basis listed in subdivision (a) or (d) of <br />Section 12955 of the Government Code, as those bases are defined in Sections 12926, <br />12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and <br />Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, <br />occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any <br />person claiming under or through Owner establish or permit any such practice or <br />practices of discrimination or segregation with reference to the selection, location, <br />number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, <br />of, or for the Property or part thereof. Owner shall include such provision in all deeds, <br />leases, contracts and other instruments executed by Owner, and shall enforce the same <br />diligently and in good faith. <br />3. Reporting Requirements. <br />3.1. Tenant Certification. Owner or Owner’s authorized agent shall obtain from <br />each household prior to initial occupancy of each Restricted Unit, and on every <br />anniversary thereafter, a written certificate containing total household income with such <br />supporting documentation as City may reasonably require. <br />Owner shall retain such certificates for not less than three (3) years, and upon City’s <br />request, shall make the originals available for inspection by City and shall provide <br />copies of such certificates to City. <br />3.2 Annual Report; Inspections. Owner shall submit an annual report (“Annual <br />Report”) to the City in form satisfactory to City, together with a certification that the <br />Project is in compliance with the requirements of this Agreement. The Annual Report <br />shall, at a minimum, include the following information for each dwelling unit in the <br />Project: (i) unit number; (ii) number of bedrooms; (iii) current rent and other charges; <br />(iv) dates of any vacancies during the previous year; (v) number of people residing in <br />the unit; (vi) total household income of residents; (vii) documentation of source of <br />household income; and (viii) the information required by Section 3.1. <br />Upon City’s request, Owner shall include with the Annual Report, an income <br />recertification for each household, documentation verifying tenant eligibility, and such <br />additional information as City may reasonably request from time to time in order to <br />demonstrate compliance with this Agreement. The Annual Report shall conform to the <br />format requested by City; provided however, during such time that the Project is subject <br />to a regulatory agreement restricting occupancy and/or rents pursuant to requirements <br />62