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Developer shall provide the Agency with periodic reports with respect to the leasing of the <br />Rental Units. The Marketing Program shall contain a Lottery and Wait List/Preference List for <br />initial lease-up only. The Developer shall be responsible to organize, schedule and coordinate a <br />lottery drawing to select potential tenants for the Rental Units for initial lease-up only, which <br />shall be open to the public. The lottery shall take place not less than 90 days prior to completion <br />of the applicable Phase of the Rental Units. Preference in the lottery, so long as not inconsistent <br />with federal and State law (including, without limitation, all fair housing laws, rules and <br />regulations), shall be given as follows: <br />(1) Any persons who have been displaced from their residences due to <br />programs or projects implemented by the Agency within the Station District; and <br />(2) Other households who live or work in Santa Ana. <br />Subject to all fair housing laws, rules, and regulations, all categories shall receive <br />preference in the order listed. The requirements of this Section 401.7 shall only apply to the <br />extent that the number of applicants for Rental Units exceeds the number of Rental Units <br />available for lease upon initial lease-up. <br />For the purpose of the lottery drawing, the lottery will be divided by those who <br />have claimed a preference and those who do not. All lottery forms will be drawn and numbered <br />to create a complete list of alternate applications. <br />The Developer shall provide written notification to lottery participants informing <br />them of the results and their priority number. This priority number represents the order with <br />which prospective tenants will be reviewed for final determination of eligibility. If a household <br />who was selected claimed a preference but could not verify such preference, then that participant <br />will be deemed ineligible and the next selected participant will be notified. <br />401.8 Maintenance. The Developer shall maintain each Phase of the Rental <br />Portion of the Project, or cause same to be maintained in a decent, safe and sanitary manner, and <br />in accordance with the standard of maintenance of first class affordable housing apartment units <br />within Orange County, California. If at any time the Developer fails to maintain each Phase of <br />the Rental Portion of the Project in accordance with this Agreement and such condition is not <br />corrected within five (5) days after written notice from the Agency with respect to graffiti, <br />debris, and waste material, or thirty (30) days after written notice from the Agency with respect <br />to general maintenance, landscaping and building improvements, then the Agency, in addition to <br />whatever remedy it may have at law or in equity, shall have the right to enter upon such Phase <br />and perform all acts and work necessary to protect, maintain, and preserve such Phase, and to <br />attach a lien upon such Phase, or to assess such Phase in the amount of the expenditures arising <br />from such acts and work of protection, maintenance, and preservation by the Agency and/or <br />costs of such cure, including a reasonable administrative charge, which amount shall be promptly <br />paid by the Developer to the Agency upon demand. <br />401.9 Management Plan; Property Management. For each Phase of the <br />Rental Portion of the Project, the Developer shall submit for the reasonable approval of the <br />Agency a "Management Plan" which sets forth in detail the Developer's property management <br />51 <br />DOCSOC/ 1400673Y 141200272-0001