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19:MGMTAGR.EHI (12/18/89) 4 <br />(b) A complete set of plans and specifications and copies of all <br />guarantees and warranties pertinent to the construction, fixtures and <br />equipment. With the aid of this information and inspection by competent <br />personnel, Agent will thoroughly familiarize itself with the character, <br />location, construction, layout, plan and operation of the Development, and <br />especially the electrical, heating, plumbing, air conditioning and ventilating <br />systems, the elevators and all other mechanical equipment. <br />9. Marketing. Agent will carry out the marketing activities (after <br />initial occupancy) prescribed in the Management Plan, observing all <br />requirements of the Affirmative Fair Housing Marketing Plan approved by HUD and <br />CHFA, attached hereto as Exhibit "B ". Subject to Owner's prior approval, <br />advertising expenses will be paid out of the Development Operation Account as a <br />Development expense; provided, however that such advertising expenses do not <br />exceed the amount approved in the Annual Operating Budget. <br />In Marketing and leasing the units, the Agent shall comply with all <br />the applicable marketing and tenant eligibility and selection procedures and <br />requirements set forth in the Ground Lease, HDG Covenants, HDG Owner /Grantee <br />Agreement, Regulatory Agreement, City Resolutions and the Affirmative Fair <br />Housing Marketing Plan, which documents include, but are not limited by, the <br />following marketing requirements: <br />(a) Lease all units in the Project in accordance with the <br />requirements of the Regulatory Agreement Ground Lease. <br />(b) Give preference to the applicants in the following order: (i) <br />persons displaced by natural disaster, construction of this Development, other <br />public action and other causes, provided that such displacement shall be <br />certified in writing by a government agency; and (ii) in accordance with <br />Subsection 5(b) of the Ground Lease, as amended; <br />(c) Begin marketing of the Development at least ninety (90) days <br />prior to the availability of the units for occupancy; <br />(d) Assure that all advertising (including letterheads, brochures <br />and media advertising) shall include "Financed by the California Housing <br />Finance Agency" and "Equal Housing Opportunity" and the "handicapped" logo. <br />Further, if advertisements contain human models, a mix of minority and <br />non - minority models are to be used to reflect the open housing philosophy. No <br />preference for any economic status or lifestyle shall be depicted; <br />(e) Where a significant number of persons in the community have <br />limited fluency in the English language, provide publications, information, <br />brochures and leases in the native language of such persons; <br />(f) Develop and maintain a policy and procedure for the selection <br />and rejection of applicants which shall be approved by the City and CHFA; <br />(g) Assure that tenant selection is carried out without favoritism <br />or partiality and that no preference is given to any applicant other than as <br />provided in this Agreement, the Management Plan, Ground Lease, Owner /Grantee <br />Agreement, City Resolutions or required by Law; <br />