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1118. Conflict of Interest. Developer shall comply with and be bound by the conflict of <br />interest provisions set forth at 24 CFR 570.611, as well as state regulations pertaining to conflict of <br />interest. <br />1119. Monitoring. Developer shall cooperate with periodic on-site monitoring activities <br />conducted by City and/or Agency representatives. <br />1120. Recertification of Tenant Income. <br />(a) Developer shall take all necessary steps to review the income of all <br />tenants prior to renting to them, as well as reviewing current tenants on an annual basis, in <br />accordance with HOME Regulations and NSP Requirements. Every fifth (5th) year, Developer shall <br />require new original income documents to be submitted by tenants. Tenants in HOME Units whose <br />incomes no longer comply with federal income guidelines shall have their rents adjusted in <br />accordance with federal HOME guidelines (24 CFR 92.252-92.253). <br />(b) HOME Units continue to qualify as affordable housing despite a <br />temporary non-compliance caused by increases in the incomes of existing tenants if actions <br />satisfactory to HUD are being taken to ensure that all vacancies are filled in accordance with this <br />Section until the noncompliance is corrected. <br />1121. Other Federal Program Requirements. Developer shall comply with all other <br />applicable requirements of the HOME Program and the NSP Requirements. <br />1122. Controlling Covenants. If there is a discrepancy between State and Federal law <br />with regard to any of the aforementioned covenants, the more stringent requirement shall apply. <br />1200. MAINTENANCE, MANAGEMENT, OPERATION, PRESERVATION AND REPAIR <br />OF PROPERTY <br />1201. Maintenance of the Property. Developer shall, at its sole cost and expense, <br />maintain or cause to be maintained the interior and exterior of the Project and all Housing Units <br />thereof and the Property in a decent, safe and sanitary manner, in accordance with the HUD Housing <br />Quality Standards (HQS) and the maintenance standards required by Section 92.251 of the HOME <br />Regulations, and in accordance with the standard of maintenance of first class apartments within <br />Orange County, California. None of the Housing Units in the Project shall at any time be utilized on <br />a transient basis, nor shall the Property or any portion thereof ever be used as a hotel, motel, <br />dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium or rest <br />home, or be converted to condominium ownership. If at any time Developer fails to maintain the <br />Project or the Property in accordance with this Agreement and such condition is not corrected within <br />five (5) days after written notice from City with respect to graffiti, debris, and waste material, or <br />thirty days after written notice from City with respect to general maintenance, landscaping and <br />building improvements, then City, in addition to whatever remedy it may have at law or at equity, <br />shall have the right to enter upon the applicable portion of the Project or the Property and perform all <br />acts and work necessary to protect, maintain, and preserve the Project and the Property, and to attach <br />a lien upon the Property, or to assess the Property, in the amount of the expenditures arising from <br />such acts and work of protection, maintenance, and preservation by City and/or costs of such cure, <br />including a reasonable administrative charge, which amount shall be promptly paid by Developer to <br />City upon demand. The liens created under this Section shall be subject and subordinate to the lien <br />36 <br />DOCSOC/ I469583v5/200272-0003