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separately charged fees or service charges assessed by the Developer which are required of all tenants, other than security deposits, e a reasonable allowance for an adequate 1 eve 1 of service vie of utilities not included i n a or above, including garb awe collection, sewer, water, electricity, gas and other heating, o o i n g and refrigeration fuels , but not including telephone service, and d possessory interest, taxes or other fees or charges assessed for use of the land and facilities associated therewith by a public or private entity other than the Developer. In the event that all utility charges are paid by the landlord rather than the tenant, no utility allowance shall be deducted from the rent. "Monthly bent'' does not include optional payments by tenant for optional services provided by the Developer or the rop rt. Manager. Occupancy Limits. The maximum occupancy of the Dental Units small not exceed more than such number of persons as is equal to the sum of the number of bedrooms in the unit, multiplied by two , plus one (1). For the two bedroom units, the maximum occupancy shall not exceed five persons. For the three bedroom units, the maximum occupancy s h all not exceed s even 7 persons. Marketing Program. The Developer shall prepare and obtain Agency Executive Director's approval, which approval shall not be unreasonably withheld, of a marketing program for the leasing of the Rental Units within each Phase (the "Marketing Program"). The leasing of the Rental Units shall b e marketed in accordance with the approved Marketing Program as the s une may be amended from t i m to time with Agency Executive Director's prior written approval, which approval shall not unreasonably be. withheld. The Developer shall provide the Agency with periodic report with respect to the leasing of the n to l Units. The Marketing Program shall eo n tain a Lottery and Wait Lis t /Preference List for initial lease-up only. T h e Developer hall be responsible to organize, schedule and coordinate a lottery drawing to select potential tenants for the Rental Units for initial lease -up only, which shall be open to the public. The lottery shall take place not less than 90 days prior to completion of the applicable Phase of the Rental Units. Preference in the lottery, so long as not inconsistent with federal and State law (including* without limitation, all fair housing laws, rules and regulations)} shall be given as follows: (1) Any persons who have been displaced from their residences due to programs or projects implemented by the Agency within the Station District; and (2) Other households who live or work in Santa Ana. Subject to all fair housing laws, rules, and regulations, all categories shall receive preference in the order listed. The requirements of this Section 401.7 shall only apply to the extent that the number of applicants for Rental Units exceeds the number of Rental Units available for lease upon initial lease -up. For the purpose of the tottery drawing, the lottery will be divided by those who have claimed a preference and those who do not. All lottery forms will he drawn and numbered to create a complete lit of alternate applications. The Developer shall provide written notification. to lottery participants informing them of the results and their priority number. This priority number represents the order with ATTACHMENT ISO. 7-3 DO OU 1400673v 141200272 -0001