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<br />receive the remaining amount of the Project Homekey Grant from the Project Homekey
<br />Agreement as necessary for payment of costs of the construction and rehabilitation of the
<br />Improvements. If necessary, Lessee shall apply to the State for disbursements of the remaining
<br />funds, and Lessor shall cooperate with and assist Lessee and deliver approvals to the State, to the
<br />extent required in order to obtain the remaining portion of the Project Homekey Grant from the
<br />State for the foregoing expenses.
<br />
<br />ARTICLE 6.
<br />OPERATION OF PROJECT
<br />Section 6.1 Use. For the entire Term of this Ground Lease, the Leased Premises shall
<br />be used for the development and operation of the Project in accordance with the terms and
<br />conditions of this Ground Lease, the Project Homekey Agreement and the Regulatory
<br />Agreement.
<br />Section 6.2 Compliance with Project Homekey Agreement. The Parties agree that,
<br />regardless of whether Lessor is jointly or solely responsible for performance of the requirements
<br />of the Project Homekey Agreement under the terms of that agreement, Lessee shall perform all
<br />of the requirements of the Grantee under the Project Homekey Agreement, for so long as the
<br />Ground Lease is in effect and Lessee is the lessee under that agreement, and Lessor shall not be
<br />responsible for performance of such obligations. Such requirements to be performed by Lessee
<br />shall include, without limitation, compliance with maximum income and rent requirements,
<br />meeting all program deadlines, compliance with all rent standards, use in accordance with
<br />eligible uses, compliance with all performance milestones, preparation and submission of all
<br />required reporting, compliance with all conditions of disbursement of the Homekey Grant,
<br />compliance with prevailing wage laws, liability for environmental requirements, insurance
<br />requirements, relocation requirements, and adaptability and accessibility requirements,
<br />submission and compliance with the property management plan, supportive services plan and
<br />affirmative fair housing marketing plan, compliance with fair housing requirements, and
<br />compliance with record retention, inspection and audit requirements.
<br />Section 6.3 Non-Discrimination; Compliance with Fair Housing Laws. Lessee
<br />shall not restrict the rental, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
<br />Leased Premises, or any portion thereof, on the basis of race, color, religion, creed, sex, sexual
<br />orientation, disability, marital status, ancestry, or national origin of any person. Lessee
<br />covenants for itself and all persons claiming under or through it, and this Ground Lease is made
<br />and accepted upon and subject to the condition that there shall be no discrimination against or
<br />segregation of any person or group of persons on account of any basis listed in subdivision (a) or
<br />(d) of 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 Section
<br />12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or
<br />enjoyment of the Leased Premises or part thereof, nor shall Lessee or any person claiming under
<br />or through Lessee establish or permit any such practice or practices of discrimination or
<br />segregation with reference to the selection, location, number, use or occupancy of tenants,
<br />lessees, subtenants, sublessees or vendees in, of, or for the Leased Premises or part thereof. DRAFT
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