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202403937 of initial occupancy, and such Qualifying Tenant's income should subsequently exceed 140% of the applicable income limit, Owner shall, after such determination of income, rent the next available residential unit of comparable or smaller size in the Project to another Qualified Tenant. As used in this Agreement, "Qualifying Tenants" means persons or families whose income at the time of initial occupancy does not exceed the applicable percentage of the area median income ("AMI") published by the United States Department of Housing and Urban Development ("HUD") for the area in which the Affordable Unit is located, as adjusted for family size and as agreed to by Owner. 1.9 Rent Restrictions. The Gross Rent for Affordable Units shall not exceed 30% of the imputed income limitation applicable to such Affordable Unit; provided that the imputed income limitation (as defined in Code Section 42(g)(2)(C)) shall apply to all Affordable Units. As used in this Section 1.9, "Gross Rent" means the rental charge for an Affordable Unit including any utility allowance determined by HUD in accordance with Section 8 of the United States Housing Act of 1937 (42 U.S.C. 14370 ("Section 8"). Gross Rent does not include any subsidy payment under Section 8 or any comparable rental assistance program (with respect to such unit or the tenant(s) thereof), nor does it include any fee for a basis of the low-income status of the tenant(s) of the unit by any governmental program of assistance (or by an organization described in Section 501(c)(3) of the Code and exempt from tax under Section 501(a) of the Code) if such program (or organization) provides assistance for rent and the amount of assistance provided for rent is not separable from the amount of assistance provided for supportive services. Gross Rent does not include any rental payment to the owner of a unit if the owner pays an equivalent amount to the Farmers Home Administration under Section 515 of the Housing Act of 1949 (42 U.S.C. 1485). 1.10 Notice to the Authority. Immediately upon discovering any violation of any of the covenants, restrictions, and representations set forth herein, Owner shall notify the Authority in writing of such violation. ARTICLE II EVENTS OF DEFAULT; REMEDIES; ENFORCEMENT BY AUTHORITY ONLY 2.1 Events of Default. If the Authority becomes aware of a violation of any of the provisions hereof, it shall give written notice thereof to Owner directing Owner to remedy the violation within a reasonable specified period of time. If any violation of this Agreement by Owner is not corrected to the reasonable satisfaction of the Authority within the period of time specified by the Authority in the notice described herein, the Authority shall have the right, without further notice, to declare an event of default ("Event of Default") under this Agreement. Any cure of any default or Event of Default made or tendered by any member of Owner shall be deemed to be a cure by Owner and shall be accepted or rejected on the same basis as if made or tendered by Owner. 2.2 Remedies. Upon and after the occurrence of an Event of Default and after the expiration of any applicable cure period, the Authority may declare the Loan to be immediately due and payable and may institute and prosecute any proceeding at law or in equity to abate, 4880-0752-8835.3