CITY COUNCIL REGULAR MEETING AGENDA PACKET 9-1-26

3 "Restricted Unit" means the JADU Inclusionary Unit on the Property that is depicted in attached Exhibit B and that, if rented, may only be rented and occupied at a Qualifying Rent in accordance with and as set forth in Section 2. 2. Use and Affordability Restrictions. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that expressly conflicts with such restrictions without the express written consent of City. 2.1 Affordability Requirements. Owner shall have the right, but not obligation, to rent the Restricted Unit. Provided, however, that if Owner elects to rent the Restricted Unit, it shall be rented at not more than Qualifying Rent and occupied by Eligible Households. Owner shall ensure that language is contained in all leases and contracts with tenants (if any) executed by Owner that prohibits subleasing of the Restricted Unit. 2.2 Rents for Restricted Units. Rent charged to, and paid by, a tenant for the Restricted Unit shall be not more than Qualifying Rent. 2.3 Non-Discrimination: Compliance with Fair Housing Laws. Owner shall not discriminate against persons or groups of persons on account of race, color, religion, creed, sex, sexual orientation, marital status, familial status, ancestry or national origin in the rental of the Restricted Unit, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the rental of the Restricted Unit in the Property. Owner shall each ensure that language prohibiting such discrimination shall be included in all deeds, leases and contracts executed by Owner or its successors and assigns with respect to the Restricted Unit. Owner shall comply with applicable state and federal fair housing laws in the marketing and rental of the Restricted Unit in the Property. 3. Reporting Requirements as to Rental Tenants of JADU’s. 3.1 Tenant Verification. If Owner elects to rent the Restricted Unit, then Owner or its authorized agent shall obtain from each Eligible Household prior to initial occupancy of the Restricted Unit, and on every anniversary thereafter, written documentation verifying each tenant's eligibility containing all of the following, including additional documentation as City may reasonably require (collectively hereinafter "Written Verification"): (a) Number of people in the household; and (b) Total household income. Owner or its authorized agent shall retain Written Verification for not less than three (3) years, and upon City's request, shall make the Written Verification available for inspection by City and shall provide copies of the Written Verification to City. Owner or its authorized Page 200 of 344