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to occupy the Affordable Unit is subject to compliance with the requirements for being an Eligible <br />Household. All Affordable Unit Lease Agreements must be consistent with the terms contained <br />in this Agreement. <br />4.7 Selection of Tenants. <br />4.7.1 Owner shall be responsible for the selection of tenants for <br />the Affordable Units in compliance with lawful and reasonable criteria and the <br />requirements of this Agreement. <br />4.7.2 Each Affordable Unit shall be rented to Qualified Residents <br />referred from the Orange County Coordinated Entry System. <br />4.7.3 A local preference for Santa Ana residents, students and <br />workers in tenant selection for the Affordable Units shall be a requirement of the <br />Project. Subject to applicable laws and regulations governing nondiscrimination <br />and preferences in housing occupancy required by the State of California, the <br />Owner shall give preference to Qualified Residents in leasing the Affordable Units <br />in the following order of priority: <br />(a)First priority shall be given to persons who have been <br />permanently displaced or who face permanent displacement from housing in the <br />City as a result of any of the following: (i) for projects funded by the Low-Moderate <br />Income Housing Asset Fund, a redevelopment project undertaken pursuant to <br />California’s Community Redevelopment Law (Health & Safety Code Sections <br />33000, et seq.); (ii) Ellis Act, owner-occupancy, or removal permit eviction; (iii) <br />earthquake, fire, flood, or other natural disaster; (iv) cancellation of a Housing <br />Choice Voucher HAP Contract by property owner; or (v) governmental action, such <br />as Code Enforcement. <br />(b)Second priority shall be given to persons who are <br />either: (i) residents of Santa Ana, (ii) individuals working in the City at least thirty <br />two (32) hours per work for at least six (6) months prior to the occupancy, (iii) <br />persons who seek to reside in the City as an accommodation to a mental or physical <br />disability, or (iv) households with students who attend public school in the City. <br />4.7.4 Prior to the rental or lease of an Affordable Unit to a <br />tenant(s), Owner shall require the tenant(s) to execute a written lease and to <br />complete a Tenant Income Verification Form (in substantially the form attached <br />hereto as Exhibit B) certifying that the tenant(s) occupying the Affordable Unit <br />is/are a Qualified Resident and otherwise meet(s) the eligibility requirements <br />established for the Affordable Unit, including any eligibility for the local preference <br />set forth in Section 4.7.3. Owner shall verify the income of the tenant(s) as set forth <br />herein. <br />4.8 Income Verification and Certification. <br />EXHIBIT 2