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5. The lower income units specified in paragraph 1 above shall be leased only to tenants who are "lower income families," (as defined in section 3(b)(2) of the Act), at the time of initial occupancy. 6. Rents for lower income units shall be determined in accordance with section 17(d)(8) of the Act. 7. In the event reexamination of lower income tenant household income indicates that the tenant no longer qualifies as a lower income household, the City of Pleasanton shall take action in accordance with regulations at 24 CFR Part 850, Subpart F. 8. The covenants and restrictions contained herein shall cease, in whole or in part, upon (a) a determination by the City of Pleasanton that there has been a total or partial involuntary loss of the Project by Eden Housing, Inc., caused by (1) fire, (ii) seizure, (iii) condemnation or (iv) foreclosure, or (b) change in law or action by a Federal agency after execution of the Project grant agreement, which prevents the City of Pleasanton from enforcing the HDG restrictions; provided that (1) the secured obligation to repay the HDG, as required by the instrument securing the HDG as a debt on the Project, is either satisfied or eliminated through judicial or non - judicial foreclosure and (2) any HDG amount remaining outstanding at the time of the involuntary loss, any proceeds from insurance or any amount realized at foreclosure over the secured 69- 1 385 1 9 thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants regardless of whether such covenants are set forth in such contract, deed or other instruments. 1. The Project shall consist of the following unit configuration for lower income households, as required by the Housing Development Grant (HDG) Owner /Grantee Agreement between the City of Pleasanton and Eden Housing, Inc., for Project No. CA031HG701. Type: Elderly Total Number: 1 BR 180 units (Lower Income units 72) 2 BR 20 units (Lower Income units 8) Total 200 units (Lower Income units 80) 2. Neither Eden Housing, Inc. nor the City of Pleasanton shall convert any units in the Project to condominium ownership or to a form of cooperative ownership that is not eligible to receive an HDG from HUD under section 17 of the U.S. Housing Act of 1937 (42 U.S.C. 1437o), (the Act). 3. Neither Eden Housing, Inc. nor the City of Pleasanton shall discrim- inate against prospective tenants on the basis of their receipt of or eligibil- ity for housing assistance under any Federal, State or local housing assistance program or, except for an elderly housing project or units specifically identi- fied in the first paragraph of this covenant as designated for the elderly, on the basis that they have a minor child or children who will be residing with them. 4. The number of units specified in paragraph 1 above, by bedroom distri- bution, as lower income units, shall be occupied or available for occupancy by lower income households. 18:covenant.HDG -2-