Common use of Developer Responsibilities Clause in Contracts

Developer Responsibilities. A. The Developer for each Approved Project shall be responsible for all project management functions of the Approved Project including project design and development, construction and/or rehabilitation, maintenance, selection of tenants, annual recertification of Household income and size, and management of the Approved Project and units in accordance with local requirements, the most recent version of the DR-MHP Policies and Procedures Manual, and the requirements of this Agreement for the duration of the affordability period. B. The Developer for each Approved Project shall be responsible for all repair and maintenance functions of the Approved Project, including ordinary maintenance and replacement of capital items. The Developer shall ensure maintenance of residential units, commercial space and common areas in accordance with local health, building, and housing codes, and the management plan. C. If the Developer hires a separate entity to manage the property after construction is complete, the Developer for each Approved Project shall ensure that the Approved Project is managed by an entity approved by the Subrecipient that is actively in the business of managing affordable housing. Any management contract entered into for this purpose shall be subject to Subrecipient approval and must contain a provision allowing the Developer to terminate the contract upon 30 days’ notice. The Developer shall terminate said contract as directed by Subrecipient upon a determination that management does not comply with DR- MHP requirements and/or the provisions of any recorded regulatory agreement for the Approved Project. D. The Developer for each Approved Project shall develop a management plan for the Approved Project subject to Subrecipient approval prior to the start of construction. Any change to the plan shall be subject to the approval of Subrecipient. The plan shall be consistent with program requirements and must include provisions addressing the following: • The role and responsibility of the Developer and the delegation of its authority; • Personnel policy and staffing arrangements including key personnel and lines of authority; • Plans and procedures for publicizing and achieving early and continued occupancy by eligible low- to moderate-income tenants; • Procedures for determining tenant eligibility and selecting tenants and for certifying and annually recertifying Household income and size; • Plans for carrying out, and budgeting for, an effective maintenance and repair program including a capital needs assessment prepared every 5 years, except that for newly constructed projects, this requirement shall apply beginning with year 10 from issuance of certificate of occupancy; • Rent collection policies and procedures; • Policies and Procedures for managing funds that meet generally accepted accounting principles; • A program for maintaining adequate accounting records and handling necessary forms and vouchers; • Plan for safe-guarding all tenant personally identifiable information (PII) such as social security numbers, names and birthdates, against possible identity theft as applicable. • Plans for enhancing tenant-management relations; • The management agreement, if any; • Provisions for periodic update of the management plan; • Appeal and grievance procedures; • Policies and procedures for collections for tenant-caused damages, processing evictions and terminations; and • A supportive services plan for Approved Projects serving Special Needs Populations, including Supportive Housing and/or providing supportive services to the general tenant population. E. Annually, during the term of this Agreement, Subrecipient shall perform monitoring of the Developer and Approved Projects to ensure compliance with federal and state requirements and timely project completion. The Developer shall be required to resolve any monitoring findings to the Subrecipient's satisfaction by the deadlines set by the Subrecipient. Developers shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement for a minimum period of 5 years after the Department notifies the Subrecipient that the HUD/HCD contract has been closed according to the record retention requirements at 2 CFR 200.333. Subrecipients may charge Developers a reasonable annual fee for compliance monitoring during the term of affordability period. The fee must be based upon the average actual cost of performing the monitoring of CDBG-DR-assisted Approved Projects. The basis for determining the amount of the fee must be documented and the fee must be included in the costs of the project as part of the project underwriting. If a monitoring fee is charged, Subrecipient shall remit 10% of the monitoring fee collected from each Approved Project to the Department not less than annually and within 90 days of receipt of the fees. Should the Developer fail to perform its duties as described above, including a failure constituting a material default pursuant to the agreement between the Developer and Subrecipient (“Developer Agreement”), such that the Approved Project’s ability to meet its stated goals under the Program is materially impaired or wholly prevented, or that materially impacts the delivery of an eligible and compliant project on a timely basis pursuant to this Agreement, such failure may constitute a default under this Agreement. Subrecipient will be responsible for curing such default, by way of corrective action or hiring a new Developer. Any proposed cure of such default must be provided to the Department in writing for approval prior to implementation. If such default is not cured timely, Subrecipient will be responsible for repayment to HCD of the funding for the Approved Project.

Developer Responsibilities. A. The Developer for each Approved Project shall be responsible for all project management functions of the Approved Project including project design and development, construction and/or rehabilitation, maintenance, selection of tenants, annual recertification of Household income and size, and management of the Approved Project and units in accordance with local requirements, the most recent version of the DR-MHP Policies and Procedures Manual, and the requirements of this Agreement for the duration of the affordability period. B. The Developer for each Approved Project shall be responsible for all repair and maintenance functions of the Approved Project, including ordinary maintenance and replacement of capital items. The Developer shall ensure maintenance of residential units, commercial space space, and common areas in accordance with local health, building, and housing codes, and the management plan. C. If the Developer hires a separate entity to manage the property after construction is complete, the Developer for each Approved Project shall ensure that the Approved Project is managed by an entity approved by the Subrecipient that is actively in the business of managing affordable housing. Any management contract entered into for this purpose shall be subject to Subrecipient approval and must contain a provision allowing the Developer to terminate the contract upon 30 thirty (30) days’ notice. The Developer shall terminate said contract as directed by Subrecipient upon a determination that management does not comply with DR- DR-MHP requirements and/or the provisions of any recorded regulatory agreement for the Approved Project. D. The Developer for each Approved Project shall develop a management plan for the Approved Project subject to Subrecipient approval prior to the start of construction. Any change to the plan shall be subject to the approval of Subrecipient. The plan shall be consistent with program requirements and must include provisions addressing the following: • The role and responsibility of the Developer and the delegation of its authority; • Personnel policy and staffing arrangements including key personnel and lines of authority; • Plans and procedures for publicizing and achieving early and continued occupancy by eligible low- to moderate-income tenants; • Procedures for determining tenant eligibility and selecting tenants and for certifying and annually recertifying Household income and size; • Plans for carrying out, and budgeting for, an effective maintenance and repair program including a capital needs assessment prepared every 5 years, except that for newly constructed projects, this requirement shall apply beginning with year 10 from issuance of certificate of occupancy; • Rent collection policies and procedures; • Policies and Procedures for managing funds that meet generally accepted accounting principles; • A program for maintaining adequate accounting records and handling necessary forms and vouchers; • Plan for safe-guarding safeguarding all tenant personally identifiable information (PII) such as social security numbers, names names, and birthdates, against possible identity theft as applicable. • Plans for enhancing tenant-management relations; • The management agreement, if any; • Provisions for periodic update of the management plan; • Appeal and grievance procedures; • Policies and procedures for collections for tenant-caused damages, processing evictions and terminations; and • A supportive services plan for Approved Projects serving Special Needs Populations, including Supportive Housing and/or providing supportive services to the general tenant population. E. Annually, during the term of this Agreement, Subrecipient shall perform monitoring of the Developer and Approved Projects to ensure compliance with federal and state requirements and timely project completion. The Developer shall be required to resolve any monitoring findings to the Subrecipient's satisfaction by the deadlines set by the Subrecipient. Developers Developer shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement and the initial development phase of an Approved Project for a minimum period of 5 five (5) years after the Department notifies the Subrecipient that the grant agreement between HUD and the State of California (“2018 HUD/-HCD contract Grant Agreement”) has been closed according closed. Subsequent to close-out of the record retention requirements at 2 CFR 200.333grant agreement between HUD and the State of California, all records and books relevant to this Agreement and the operational phase of an Approved Project shall be retained for the most recent five (5) year period, until five years after the affordability period terminates. All records must be maintained in such a manner as to ensure that the records are reasonably protected from destruction or tampering. All records shall be subject to inspection and audit by the Subrecipient, the Department, HUD, or its representative. Subrecipients may charge Developers a reasonable annual fee for compliance monitoring during the term of affordability period. The fee must be based upon the average actual cost of performing the monitoring of CDBG-DR-assisted Approved Projects. The basis for determining the amount of the fee must be documented and the fee must be included in the costs of the project as part of the project underwriting. If a monitoring fee is charged, Subrecipient shall remit 10% of the monitoring fee collected from each Approved Project to the Department not less than annually and within 90 ninety (90) days of receipt of the fees. Should the Developer fail to perform its duties as described above, including a failure constituting a material default pursuant to the agreement between the Developer and Subrecipient (“Developer Agreement”), such that the Approved Project’s ability to meet its stated goals under the Program is materially impaired or wholly prevented, or that materially impacts the delivery of an eligible and compliant project on a timely basis pursuant to this Agreement, such failure may constitute a default under this Agreement. Subrecipient will be responsible for curing such default, by way of corrective action or hiring a new Developer. Any proposed cure of such default must be provided to the Department in writing for approval prior to implementation. If such default is not cured timely, Subrecipient will be responsible for repayment to HCD of the funding for the Approved Project.

Developer Responsibilities. A. The Developer for each Approved Project shall be responsible for all project management functions of the Approved Project including project design and development, construction and/or rehabilitation, maintenance, selection of tenants, annual recertification of Household income and size, and management of the Approved Project and units in accordance with local requirements, the most recent version of the DR-MHP Policies and Procedures Manual, and the requirements of this Agreement for the duration of the affordability period. B. The Developer for each Approved Project shall be responsible for all repair and maintenance functions of the Approved Project, including ordinary maintenance and replacement of capital items. The Developer shall ensure maintenance of residential units, commercial space space, and common areas in accordance with local health, building, and housing codes, and the management plan. C. If the Developer hires a separate entity to manage the property after construction is complete, the Developer for each Approved Project shall ensure that the Approved Project is managed by an entity approved by the Subrecipient that is actively in the business of managing affordable housing. Any management contract entered into for this purpose shall be subject to Subrecipient approval and must contain a provision allowing the Developer to terminate the contract upon 30 thirty (30) days’ notice. The Developer shall terminate said contract as directed by Subrecipient upon a determination that management does not comply with DR- DR-MHP requirements and/or the provisions of any recorded regulatory agreement for the Approved Project. D. The Developer for each Approved Project shall develop a management plan for the Approved Project subject to Subrecipient approval prior to the start of construction. Any change to the plan shall be subject to the approval of Subrecipient. The plan shall be consistent with program requirements and must include provisions addressing the following: • The role and responsibility of the Developer and the delegation of its authority; • Personnel policy and staffing arrangements including key personnel and lines of authority; • Plans and procedures for publicizing and achieving early and continued occupancy by eligible low- to moderate-income tenants; • Procedures for determining tenant eligibility and selecting tenants and for certifying and annually recertifying Household income and size; • Plans for carrying out, and budgeting for, an effective maintenance and repair program including a capital needs assessment prepared every 5 years, except that for newly constructed projects, this requirement shall apply beginning with year 10 from issuance of certificate of occupancy; • Rent collection policies and procedures; • Policies and Procedures for managing funds that meet generally accepted accounting principles; • A program for maintaining adequate accounting records and handling necessary forms and vouchers; • Plan for safe-guarding safeguarding all tenant personally identifiable information (PII) such as social security numbers, names names, and birthdates, against possible identity theft as applicable. • Plans for enhancing tenant-management relations; • The management agreement, if any; • Provisions for periodic update of the management plan; • Appeal and grievance procedures; • Policies and procedures for collections for tenant-caused damages, processing evictions and terminations; and • A supportive services plan for Approved Projects serving Special Needs Populations, including Supportive Housing and/or providing supportive services to the general tenant population. E. Annually, during the term of this Agreement, Subrecipient shall perform monitoring of the Developer and Approved Projects to ensure compliance with federal and state requirements and timely project completion. The Developer shall be required to resolve any monitoring findings to the Subrecipient's satisfaction by the deadlines set by the Subrecipient. Developers Developer shall retain all books, records, accounts, documentation, and all other materials relevant to this Agreement and the initial development phase of an Approved Project for a minimum period of 5 five (5) years after the Department notifies the Subrecipient that the grant agreement between HUD and the State of California (“2018 HUD/-HCD contract Grant Agreement”) has been closed according closed. Subsequent to close-out of the record retention requirements at 2 CFR 200.333grant agreement between HUD and the State of California, all records and books relevant to this Agreement and the operational phase of an Approved Project shall be retained for the most recent five (5) year period, until five years after the affordability period terminates. All records must be maintained in such a manner as to ensure that the records are reasonably protected from destruction or tampering. All records shall be subject to inspection and audit by the Subrecipient, the Department, HUD, or its representative. Subrecipients may charge Developers a reasonable annual fee for compliance monitoring during the term of affordability period. The fee must be based upon the average actual cost of performing the monitoring of CDBG-DR-assisted Approved Projects. The basis for determining the amount of the fee must be documented and the fee must be included in the costs of the project as part of the project underwriting. If a monitoring fee is charged, Subrecipient shall remit 10% of the monitoring fee collected from each Approved Project to the Department not less than annually and within 90 ninety (90) days of receipt of the fees. Should the Developer fail to perform its duties as described above, including a failure constituting a material default pursuant to the agreement between the Developer and Subrecipient (“Developer Agreement”), such that the Approved Project’s ability to meet its stated goals under the Program is materially impaired or wholly prevented, or that materially impacts the delivery of an eligible and compliant project on a timely basis pursuant to this Agreement, such failure may constitute a default under this Agreement. Subrecipient will be responsible for curing such default, by way of corrective action or hiring a new Developer. Any proposed cure of such default must be provided to the Department in writing for approval prior to implementation. If such default is not cured timely, Subrecipient will be responsible for repayment to HCD of the funding for the Approved Project.