Affordable Housing Reg Agmt APN 752812 7528112 04232020

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2. 7.1 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. 2.7.2 Non-Discrimination. 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 subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. Owner shall include such provision in all deeds, leases, contracts and other instruments executed by Owner, and shall enforce the same diligently and in good faith. 2.8 Float Up Provisions. 2.8.1. It is anticipated that twenty-five (25) Restricted Units in the Project (the "Subsidy Units") will receive project-based vouchers or other rental subsidies (the "Rental Subsidy") throughout the term of this Agreement. If any change in federal law occurs, or any action (or inaction) by Congress or any federal, state, or local agency occurs, which results in a material reduction, termination or non renewal of the Rental Subsidy through no fault of the Owner, such that the Rental Subsidy is no longer available, Borrower shall, in anticipation of such loss in Rental Subsidy, use good faith efforts for a period of sixty (60) days, to obtain alternative sources of rental subsidies and shall provide the City weekly progress reports on Borrower's efforts to obtain alternative sources of rental subsidies. If at the end of such sixty (60) day period Borrower is unable to secure an alternate source of rental subsidy, notwithstanding Section 2.2 above, Borrower may increase the rent on one or more of the Restricted Units that overlap with a Subsidy Unit, to the the Qualifying Rent for a Low-Income Household, to maintain the financial stability of the Project. 2.8.2. Notwithstanding Section 2.2 above, in the event that Bank of America, N.A., California Community Reinvestment Corporation, or their respective successors and assigns as lender of first-priority lien on the Property foreclosures on the Project (or receives a deed in lieu of foreclosure), the rents on one or more of the Restricted Units may be increased to sixty percent (60%) Area Median Income ("AMI"), to maintain the financial stability of the Project. 2890662.3 5