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covenants shall be enforced as equitable servitudes against the Property and the Project in favor
<br />of City.
<br />6. Property Management; Repair and Maintenance; Marketing.
<br />6.1 Management Responsibilities. Owner shall be responsible for all management
<br />functions with respect to the Property and the Project, including without limitation the
<br />selection of tenants, certification and recertification of household income and eligibility,
<br />evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary
<br />repairs, replacement of capital items, and security. City shall have no responsibility for
<br />management or maintenance of the Property or the Project.
<br />6.2 Management Entity. City shall have the right to review and approve the
<br />qualifications of the management entity proposed by Owner for the Project, and shall have the
<br />right to review and approve any agreement executed between Owner and the management entity,
<br />which approval shall not be unreasonably withheld. The contracting of management services to
<br />a management entity shall not relieve Owner of its primary responsibility for proper
<br />performance of management duties. City hereby approves MidPen Property Management
<br />Corporation, a California nonprofit public benefit corporation, as the initial management entity
<br />for the Project. Any subsequent management entity shall be subject to City review and approval,
<br />which shall not be unreasonably withheld or delayed. Upon City determination and delivery of
<br />written notice to Owner that Owner has failed to operate the Project in accordance with this
<br />Agreement, subject to any applicable cure period and the approval of the Project lenders and
<br />equity investors, City may require Owner to contract with a qualified management agent selected
<br />by City and approved by the Project lender and equity investor, to operate the Project, or to make
<br />such other arrangements as City deems necessary to ensure performance of the required
<br />functions.
<br />6.3 Repair, Maintenance and Security. Throughout the term of this Agreement,
<br />Owner shall at its own expense, maintain the Property and the Project in good physical condition,
<br />in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions in
<br />conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations.
<br />Without limiting the foregoing, Owner agrees to maintain the Project and the Property (including
<br />without limitation, the residential units, common areas, meeting rooms, landscaping, driveways,
<br />parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained
<br />landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take
<br />all reasonable steps to prevent the same from occurring on the Property or at the Project. Owner
<br />shall prevent and/or rectify any physical deterioration of the Property and the Project and
<br />shall make all repairs, renewals and replacements necessary to keep the Property and the
<br />improvements located thereon in good condition and repair. Owner shall provide adequate
<br />security measures for the Project, including without limitation, the installation of adequate
<br />lighting and deadbolt locks.
<br />6.3.1 Additional Requirements. All construction work and professional services
<br />for the Project shall be performed by persons or entities licensed or otherwise authorized to
<br />perform the applicable work or service in the State of California and shall have a current City of
<br />Pleasanton business license if required under local law. To the extent allowed by state and
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<br />OAK #4821-6084-0273 v5
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