Item 18 - Permanent Supportive Housing Project at 918 Bewley Street

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Property and Project for no longer than the Total Affordability Term. It is the express intent and agreement between the Parties that this Agreement shall remain binding and enforceable against the Property, the Project, and the Units to ensure compliance with the Conditional Grant Agreement. 4.2 Rental of Units. Upon the completion of construction of the Project and receipt by Owner of all required permits for the occupancy of the Units, Owner shall rent or cause to be rented each Affordable Unit for the Total Affordability Term for such Affordable Unit in accordance with the terms and conditions set forth in this Agreement, which provide among other terms and conditions for the rental of each Affordable Unit at an Affordable Rent to Qualified Residents for the Total Affordability Term. 4.3 Occupancy Levels. Subject to state or federal laws and regulations, the number of persons permitted to occupy each Affordable Unit shall not exceed two persons per bedroom, plus one person. For the Shared Housing units and individual bedrooms, the number of persons permitted to occupy each bedroom shall not exceed two persons. No persons may reside outside of each individual bedroom, any common area, or otherwise not in a bedroom but within a shared housing unit. If an Eligible Household, during the terms of its tenancy, adds members that exceed the maximum occupancy allowed under this section, Owner shall provide written notification informing the household that: it is over-occupancy; has been placed on a waiting list for up to one- hundred and eighty (180) days; the expiration date of the waiting list; and the terms for terminating the lease. A written status update will be provided to the household at one-hundred and twenty (120) days, ninety (90) days, sixty (60) days and thirty (30) days if applicable. 4.4 Use of the Property. All uses conducted on the Property by Owner, including, without limitation, all activities undertaken by the Owner pursuant to this Agreement, shall conform to all applicable provisions of the Santa Ana Municipal Code and other applicable federal, state, and local laws, rules, and regulations. The Project shall at all times during the term of this Agreement be used as an affordable rental housing complex and none of the Affordable Units in the Project, nor shall the Property or any portion thereof, ever be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, or sanitarium or rest home. All of the community facilities and any social programs provided to the Project’s residents shall be available on an equal, nondiscriminatory basis to residents of all Units at the Project. 4.5 Maintenance. Owner shall, at all times during the term of this Agreement, cause the Property and the Project to be maintained in a decent, safe and sanitary manner, regardless of cause of the disrepair. Owner shall be fully and solely responsible for costs of maintenance, repair, addition and improvements. City, and any of its employees, agents, contractors or designees shall have the right to enter upon the Property at reasonable times and in a reasonable manner to inspect the Project, after providing notice as follows: (i) at least a 24-hour notice to Owner and Tenants of the Affordable Unit which will be inspected, or (ii) at least 48 hours’ notice to Owner, which shall promptly give notice to Tenants of the Affordable Unit to be inspected. 4.6 Affordable Rental Lease Agreement. Owner shall prepare a rental lease agreement for the Affordable Unit (“Affordable Unit Lease Agreement”) for the Affordable Unit. All Affordable Unit Lease Agreements must 1) identify the names and ages of all members of the household who will occupy the Affordable Unit; and 2) state that the Eligible Household’s right EXHIBIT 2