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4.8.1 Prohibited Lease Terms. The Lease Agreement may not contain any of the <br />following provisions: <br />(a) Agreement to be Sued. Agreement by the tenant to be sued, to admit to guilt, <br />or to a judgment in favor of the Developer in a lawsuit brought in connection <br />with the lease; <br />(b) Treatment of Property. Agreement by tenant that the Developer may take, <br />hold, or sell personal property of household members without notice to tenant <br />and a court decision on the rights of the parties. This prohibition, however, <br />does not apply to an agreement by the tenant concerning disposition of <br />personal property remaining in the housing unit after the tenant has moved out <br />of the unit. The Developer may dispose of this personal property in <br />accordance with State law; <br />(c) Excusing Developer of Responsibility. Agreement by the tenant not to hold <br />the Developer of the Developer's agent legally responsible for any action or <br />failure to act, whether intentional or negligent; <br />(d) Waiver of Notice. Agreement of the tenant that the Developer may institute a <br />lawsuit without notice to the tenant; <br />(e) Waiver of Legal Proceedings. Agreement by the tenant that the Developer <br />may evict the tenant or household members without instituting a civil court <br />proceeding in which the tenant has the opportunity to present a defense, or <br />before a court decision on the rights of the parties; <br />(f) Waiver of a Jury Trial. Agreement by the tenant to waive any rights to a trial <br />byjury; <br />(g) Waiver of Right to Appeal Court Decision. Agreement by the tenant to waive <br />the tenant's right to appeal, or to otherwise challenge in court, a court decision <br />in connection with the lease; and <br />(h) Tenant Chargeable with Cost of Legal Action Regardless of Outcome. <br />Agreement by the tenant to pay attorney's fees or other legal costs even if the <br />tenant wins in a court proceeding by the Developer against the tenant. The <br />tenant, however, may be obligated to pay attorney's fees and costs if the <br />tenant loses, if provided for under applicable law or court ruling. <br />4.9 Selection of Tenants. <br />4.9.1 Developer shall review the selection of tenants for the Affordable Units in <br />compliance with lawful and reasonable criteria and the requirements of this Agreement. Each <br />Affordable Unit shall be leased to Eligible Households that are chronically homeless and <br />document -ready individuals on the Coordinated Entry List. All residents will be referred from <br />the County of Orange Coordinated Entry System. <br />4.9.2 Local preference for Santa Ana residents and workers in tenant selection <br />for the Affordable Units shall be a requirement of the Project. Subject to applicable laws and <br />regulations governing nondiscrimination and preferences in housing occupancy required by the <br />State of California, the Developer shall give preference or cause for the preference in leasing the <br />Affordable Units to households that live and/or work in the City of Santa Ana or who have an <br />12 <br />9138-126780AIS17029.2 <br />