KOTTINGER GARDENS PHASE 1 GROUND LEASE - MAR 2016

any), the City's zoning and development standards, building, plumbing, mechanical and electrical codes. all other provisions of the City's Municipal Code. and all applicable disabled and handicapped access requirements. including without limitation, the Americans with Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 1 1 1 35. et seq., and the Unruh Civil Rights Act, Civil Code Section 51. et seq.. To the greatest extent allowed by law. Lessee shall indemnify, defend (with counsel approved by Lessor) and hold harmless the Indemnitees from and against any and all Claims arising in connection with the breach of Lessee's obligations set forth in this Section whether or not any insurance policies shall have been determined to be applicable to any such Claims. This Section shall survive the expiration or termination of this Lease. Section 9.8 Affordability and Use Restrictions. Lessee hereby covenants and agrees that the Leased Premises shall be used solely for the operation of a multifamily rental senior housing development in compliance with the requirements set forth herein. Throughout the Term (i) no fewer than forty-nine percent (49%) of the residential units in the Project shall be available at Affordable Rents to Eligible Households whose income is no greater than sixty percent(60%) of Area Median Income, and (ii) the remainder of the residential units in the Project shall be available at Affordable Rents to Eligible Households whose income is no greater than eighty percent(80%) of Area Median Income. One (I) of the residential units in the Project shall be a manager's unit for which the rent will not be restricted. In the event that recertification of tenant incomes indicates that the number of residential units actually occupied by Eligible Households falls below the number reserved for each income group as specified in this Section 9.8. Lessee shall rectify the condition by renting the next available dwelling unit(s) in the Project to Eligible Household(s) until the required income mix is achieved. Section 9.9 Preference for City of Pleasanton Residents and Employees. In order to ensure that there is an adequate supply of affordable housing within the City of Pleasanton for residents and employees of businesses within the City, to the extent permitted by law and consistent with the program regulations for funding sources used for development of the Project. Lessee shall give a preference in the rental of the residential units in the Project to Eligible Households who live or work in the City of Pleasanton. Notwithstanding the foregoing, in the event of a conflict between this provision and the provisions of Section 42 of the Internal Revenue Code of 1986, as amended, or HUD Regulations applicable to the Project, the provisions of such Section 42 and HUD Regulations shall control. Lessee shall comply with City's Affirmative Marketing Policies or other rental policies and procedures as they may be amended from time to time to ensure that residents and people who work in Pleasanton are provided adequate notice and opportunity to rent units in the Project. Section 9.10 Reporting Requirements; Access to Information; Inspections. (a) Tenant Certification. Lessee or Lessee's authorized agent shall obtain from each household prior to initial occupancy of each residential unit in the Project (except the manager's unit), and on every anniversary thereafter, a written certificate containing all of the following in such format and with such supporting documentation as Lessor may reasonably 32 191 A52V 1 656915 8 OAK#4834-9609-16%4 v11