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6.1 Management Responsibilities. If Owner elects to rent the Restricted Unit,
<br /> then Owner shall be responsible for all management functions with respect to the
<br /> Restricted Unit, including without limitation the selection of tenants, certification and
<br /> recertification of household income and eligibility, evictions, collection of rents and
<br /> deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of
<br /> capital items, and security. Except as City may otherwise agree in writing, City shall have
<br /> no responsibility for management or maintenance of the Restricted Unit. The contracting of
<br /> management services to a management entity shall not relieve Owner of its primary
<br /> responsibility for proper performance of management duties.
<br /> 6.2 Repair, Maintenance, and Security. If Owner elects to rent the Restricted
<br /> Unit, then throughout the term of this Agreement, Owner shall at its own expense, maintain
<br /> the Restricted Unit in good physical condition, in good repair, and in decent, safe, sanitary,
<br /> habitable and tenantable living conditions in conformity with all applicable state, federal,
<br /> and local laws, ordinances, codes, and regulations. Without limiting the foregoing, Owner
<br /> agrees to maintain the Restricted Unit in a condition reasonably free of all waste, nuisance,
<br /> debris, unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and
<br /> illegal activity, and shall take all reasonable steps to prevent the same from occurring in the
<br /> Restricted Unit. If Owner elects to rent the Restricted Unit, then Owner shall prevent and/or
<br /> rectify any physical deterioration of the Restricted Unit and shall make all repairs, renewals
<br /> and replacements necessary to keep the Restricted Unit and the improvements located
<br /> thereon in good condition and repair.
<br /> 6.3 Restrictions on Transfer. If Owner elects to rent the Restricted Unit, then
<br /> upon the conveyance, sale or lease of the Property, the purchaser or transferee shall
<br /> submit an Annual Report to the City.
<br /> 7. Recordation: No Subordination. This Agreement shall be recorded in the Official
<br /> Records of Alameda County. Owner hereby represents, warrants and covenants that with
<br /> the exception of easements and restrictions of record, absent the written consent of City,
<br /> this Agreement shall not be subordinated in priority to any lien (other than those pertaining
<br /> to taxes or assessments), encumbrance, or other interest in the Property. If at the time this
<br /> Agreement is recorded, any interest, lien, or encumbrance has been recorded against the
<br /> Property in position superior to this Agreement, upon the request of City, Owner hereby
<br /> covenants and agrees to promptly undertake all action necessary to clear such matter from
<br /> title or to subordinate such interest to this Agreement consistent with the intent of and in
<br /> accordance with this Section, and to provide such evidence thereof as City may reasonably
<br /> request.
<br /> 8. Encumbrance.
<br /> 8.1 Encumbrances. Owner agrees to use best efforts to ensure that any deed
<br /> of trust secured by the Property shall contain each of the following provisions: (a) the
<br /> holder of such deed of trust shall use commercially reasonable efforts to provide to City a
<br /> copy of any notice of default issued to Owner concurrently with provision of such notice to
<br /> Owner (provided however, the failure to do so shall not impair such holder's rights and
<br /> remedies); and (b) City shall have the reasonable right, but not the obligation, to cure any
<br /> default by Owner within the same period of time provided to Owner for such cure,
<br /> extended by an additional thirty (30) days.
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