Common use of Calculation of Debt Service Coverage Clause in Contracts

Calculation of Debt Service Coverage. Month 1 Month 2 Month 3 ------------ ------------ ------------ INCOME Gross Potential Rent Other Income Vacancy Loss ------------ ------------ ------------ Adjusted Gross Income ------------ ------------ ------------ OPERATING EXPENSES Utilities Maintenance Management Fee Administration Insurance Real Estate Taxes Other Expenses ------------ ------------ ------------ Total Operating Expenses ------------ ------------ ------------ (1) Accrual adjustments for: R/E Taxes Insurance Tax/ Accounting Other Replacement Reserves ------------ ------------ ------------ Income for DSC Calculation ============ ============ ============ ------------ ------------ ------------ Stabilized Debt Service ------------ ------------ ------------ ------------ ------------ ------------ Debt Service Coverage (2) ------------ ------------ ------------ Please submit this form along with the following supporting documentation: Monthly Financial Reports (income statement, balance sheet, general ledger and rent rolls) Operating Budget Copies of bank statements. (1) This number should reconcile easily with the monthly financial statements (2) The ratio between the Income for DSC calculation and Stabilized Debt Service. As example, a 1.15 DSC means that for every $1.00 of Stabilized Debt Service required to be paid there must be $1.15 of Net Operating Income available. DEVELOPMENT FEE AGREEMENT This Development Fee Agreement ("Agreement"), is entered into as of the date written below by and between Apartment Developers, Inc. ("Developer") and West Mobile County Housing, LTD., an Alabama limited partnership ("Owner"). Developer and Owner collectively may be referred to as the "Parties" or individually may be referred to as a "Party".

Calculation of Debt Service Coverage. Month 1 Month 2 Month 3 ------------ ------------ ------------ INCOME Gross Potential Rent Other Income Vacancy Loss ------------ ------------ ------------ Adjusted Gross Income ------------ ------------ ------------ OPERATING EXPENSES Utilities Maintenance Management Fee Administration Insurance Real Estate Taxes Other Expenses ------------ ------------ ------------ Total Operating Expenses ------------ ------------ ------------ (1) Accrual adjustments for: R/E Taxes Insurance Tax/ Accounting Other Replacement Reserves ------------ ------------ ------------ Income for DSC Calculation ============ ============ ============ ------------ ------------ ------------ Stabilized Debt Service ------------ ------------ ------------ ------------ ------------ ------------ Debt Service Coverage (2) ------------ ------------ ------------ Please submit this form along with the following supporting documentation: Monthly Financial Reports (income statement, balance sheet, general ledger and rent rolls) Operating Budget Copies of bank statements. (1) This number should reconcile easily with the monthly financial statements. (2) The ratio between the Income for DSC calculation and Stabilized Debt Service. As example, a 1.15 1.10 DSC means that for every $1.00 of Stabilized Debt Service required to be paid there must be $1.15 1.10 of Net Operating operating Income available. DEVELOPMENT FEE EXHIBIT I TO THE PARTNERSHIP AGREEMENT This Development Fee Agreement ("Agreement")SURVEY REQUIREMENTS The Survey shall satisfy the minimum standard detail requirements for an ALTA/ACSM Land Title Survey, is entered into as established by ALTA, ACSM and NSPS in October of 1999, including optional items 1 through 11 and 13, and shall show the date written below by and between Apartment Developers, Inc. ("Developer") and West Mobile County Housing, LTD., an Alabama limited partnership ("Owner"). Developer and Owner collectively may be referred to as the "Parties" or individually may be referred to as a "Party".items listed below:

Calculation of Debt Service Coverage. Month 1 Month 2 Month 3 ------------ ------------ ------------ INCOME Gross Potential Rent Other Income Vacancy Loss ------------ ------------ ------------ Adjusted Gross Income ------------ ------------ ------------ OPERATING EXPENSES Utilities Maintenance Management Fee Administration Insurance Real Estate Taxes Other Expenses ------------ ------------ ------------ Total Operating Expenses ------------ ------------ ------------ (1) Accrual adjustments for: R/E Taxes Insurance Tax/ Accounting Other Replacement Reserves ------------ ------------ ------------ Income for DSC Calculation ============ ============ ============ ------------ ------------ ------------ Stabilized Debt Service ------------ ------------ ------------ ------------ ------------ ------------ Debt Service Coverage (2) ------------ ------------ ------------ Please submit this form along with the following supporting documentation: Monthly Financial Reports (income statement, balance sheet, general ledger ledger, and rent rolls) Operating Budget Copies of bank statements. (1) This number should reconcile easily with the monthly financial statements. (2) The ratio between the Income for DSC calculation and Stabilized Debt Service. As example, a 1.15 1.10 DSC means that for every $1.00 of Stabilized Debt Service required to be paid there must be $1.15 1.10 of Net Operating Income available. DEVELOPMENT FEE AGREEMENT This Development Fee Agreement ("Agreement")EXHIBIT I SURVEY REQUIREMENTS The Survey shall satisfy the minimum standard detail requirements for an ALTA/ACSM Land Title Survey, is entered into as established by ALTA, ACSM and NSPS in October of 1999, including optional items 1 through 11 and 13, and shall show the date written below by and between Apartment Developers, Inc. ("Developer") and West Mobile County Housing, LTD., an Alabama limited partnership ("Owner"). Developer and Owner collectively may be referred to as the "Parties" or individually may be referred to as a "Party".items listed below:

Calculation of Debt Service Coverage. Month 1 Month 2 Month 3 ------------ ------------ ------------ INCOME Gross Potential Rent Other Income Vacancy Loss ------------ ------------ ------------ Adjusted Gross Income ------------ ------------ ------------ OPERATING EXPENSES Utilities Maintenance Management Fee Administration Insurance Real Estate Taxes Other Expenses ------------ ------------ ------------ Total Operating Expenses ------------ ------------ ------------ (1) Accrual adjustments for: R/E Taxes Insurance Tax/ Accounting Other Replacement Reserves ------------ ------------ ------------ Income for DSC Calculation ============ ============ ============ ------------ ------------ ------------ Stabilized Debt Service ------------ ------------ ------------ ------------ ------------ ------------ Debt Service Coverage (2) ------------ ------------ ------------ Please submit this form along with the following supporting documentation: Monthly Financial Reports (income statement, balance sheet, general ledger and rent rolls) Operating Budget Copies of bank statements. (1) This number should reconcile easily with the monthly financial statements. (2) The ratio between the Income for DSC calculation and Stabilized Debt Service. As example, a 1.15 DSC means that for every $1.00 of Stabilized Debt Service required to be paid there must be $1.15 of Net Operating Income available. DEVELOPMENT FEE AGREEMENT This Development Fee Agreement ("Agreement"), is entered into as of the date written below by and between Apartment DevelopersCrane & Xxxxxx Investments, Inc. L.L.C. ("Developer") and West Mobile County Housing000 Xxxx Xxxx Limited Partnership, LTD., an Alabama a South Dakota limited partnership ("Owner"). Developer and Owner collectively may be referred to as the "Parties" or individually may be referred to as a "Party".