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L <br />2.4 Manager's Unit. One (1) dwelling unit in the Project may be used as resident <br />manager's unit, and shall be exempt from the occupancy and rent restrictions set forth in this <br />Agreement. <br />2.5 No Condominium Conversion. Owner shall not convert the Project to <br />condominium or cooperative ownership or sell condominium or cooperative rights to the Project or <br />any part thereof during the term of this Agreement. <br />2.6 Non -Discrimination; Compliance with Fair Housing Laws. <br />2.6.1 Preference for Returning Residents, City of Pleasanton Residents and <br />Employees. At initial lease -up of the Project, Lessee shall provide Eligible Households who <br />were relocated from the now -vacant and to -be -demolished residential units located on the Land, <br />priority in renting the new residential units to be constructed as part of the Project. In addition, <br />in order to ensure that there is an adequate supply of affordable housing within the City of <br />Pleasanton for residents and employees of businesses within the City, to the extent permitted by <br />law and consistent with the program regulations for funding sources used for development of the <br />Project, Owner shall give a preference in the rental of the residential units in the Project to <br />Eligible Households who live or work in the City of Pleasanton. Notwithstanding the foregoing, <br />in the event of a conflict between this provision and the provisions of Section 42 of the Internal <br />Revenue Code of 1986, as amended, or HUD regulations applicable to the Project (including <br />without limitation, requirements applicable to the Project due to any Section 8 rental subsidy <br />contract), the provisions of such Section 42 and HUD regulations and requirements shall control. <br />Owner shall comply with City's Affirmative Marketing Policies or other rental policies and <br />procedures as they may be amended from time to time to ensure that residents and people who <br />work in Pleasanton are provided reasonable notice and opportunity to rent units in the Project. <br />2.6.2 Fair Housing. Owner shall comply with state and federal fair housing laws <br />in the marketing and rental of the units in the Project. Owner shall accept as tenants, on the same <br />basis as all other prospective tenants, seniors who are recipients of federal certificates or <br />vouchers for rent subsidies pursuant to the existing Section 8 program or any successor thereto. <br />2.6.3 Non -Discrimination. Owner shall not restrict the rental, sale, lease, <br />sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any portion thereof, on <br />the basis of race, color, religion, creed, sex, sexual orientation, disability, marital status, ancestry, <br />or national origin of any person. Owner covenants for itself and all persons claiming under or <br />through it, and this Agreement is made and accepted upon and subject to the condition that there <br />shall be no discrimination against or segregation of any person or group of persons on account of <br />any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those <br />bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision <br />(p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, <br />transfer, use, occupancy, tenure or enjoyment of the Property or part thereof, nor shall Owner or <br />any person claiming under or through Owner establish or permit any such practice or practices of <br />discrimination or segregation with reference to the selection, location, number, use or occupancy <br />of tenants, lessees, subtenants, sublessees or vendees in, of, or for the Property or part thereof. <br />Owner shall include such provision in all deeds, leases, contracts and other instruments executed <br />by Owner, and shall enforce the same diligently and in good faith. <br />OAK #4821-6084-0273 v5 <br />