05.02 - HRA West Grove Townhome Refunding

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together with interest from the date of any such advance until repaid, at a rate equal to the yield `... rate of the Bonds, all subject to the limitations set forth in the Indenture, and which repayment obligation shall be referred to in this Agreement as a"Payment Obligation"; Third, to repay to the County HRA advances, if any, that the County HRA shall have made from its Special Benefits Tax, levied pursuant to the pledge in Section 3.6 herein and the Indenture, to cover any shortfall in the Operating Fund, as defined in the Financing Documents, together with interest from the date of any such advance until repaid, at a rate equal to the yield rate of the Bonds, all subject to the limitation set forth in the Indenture; Fourth, to fund the Reserve Fund, Operating Fund, Repair and Replacement Fund, and Rebate Fund as defined in the Financing Documents and as established by the County HRA for the Project; and Fifth, the City HR.A shall retain all Surplus Revenues and shall apply the same for any puipose authorized by law. Section 3.9. Proiect Mana�ement. The City HRA will either manage the Project itself or with the prior, written approval of the County HRA, will cause the Project to be managed only by an established, experienced professional management company. Notwithstanding the foregoing, during any period when there is an outstanding Payment Obligation, or during any period for which cash flows prepared pursuant to the Financing � Documents project that the Revenues available to pay debt service on the Bonds will not be at ,. least 110% of the amount required therefore, the County shall have the right upon prior written notice to the City HRA, County HRA and the Trustee for the Bonds, and following a six-month opporiunity to cure such deficiency, to direct the control, management and operation of the Project. In such event the County may in its sole discretion, operate and rnanage the Project itself or retain a professional management company. Section 3.10. Income Limitations. The City HRA and County HRA, having determined that the Project is necessary to alleviate a shortage of decent, safe and sanitary housing for low and moderate income elderly persons, and having defined "low and moderate income" as no more than 120% of the median income in the County, agrees to the following: (a) All of units in the Project will be occupied or available for occupancy by persons whose incomes do not exceed 120 percent of the County median income, adjusted for family size. (b) Tlle income limitation expressed in Section 3.10(a) must be satisfied from initial occupancy of any of the units in the Project through the Maturity Date. (c) Upon request of the County HR.A or County, the City HRA shall deliver or cause to be delivered written evidence satisfactory to the County HRA or County of compliance with the covenants in this Section. This evidence must include documentation of the household income of each of qualifying renter, a written determination that each qualifying renter's �.. EMT-238666v5 8 CR195-4