This subsection applies if a protected action affects a unit occupied by a designated household that: is current in its rent and has not violated any other material term of the lease; within 60 days after the giving of the notice of intent, provides the owner with written notice showing that the household qualifies as a designated household and stating that the household is applying for an extended lease under this section; and executes the extended lease form delivered in accordance with § 7-216(a)(2) of this subtitle and returns it to the owner within 60 days after the giving of the notice of intent. Except for a protected action under § 7-102(a)(3) of this title, an owner may not take a protected action that affects a unit in an assisted project occupied by a designated household without offering to the designated household an extended lease for at least 3 years beginning on the day of the giving of the notice of intent. The owner shall set aside at least 20% of the assisted units in an assisted project for designated households to receive extended leases under this subtitle. If the number of assisted units occupied by designated households that meet the standards of subsection (a) of this section exceeds 20% of the assisted units, the owner shall allocate the available units: first to designated households with an individual described under § 7-213(1) of this subtitle with priority based on length of continuous residence; and then to designated households that do not contain such an individual but include a minor, based on length of continuous residence.