Common use of Gross Mismanagement Clause in Contracts

Gross Mismanagement. During the Affordability Period, and in the event of “Gross Mismanagement” (as that term is defined below) of the Apartment Complex or any part of the Project, Executive Director and/or Authority shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from Executive Director. If Developer or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the Executive Director), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non-defaulting party), then Developer or Property Manager shall have an additional 10 days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from date of the initial written notice of such condition(s), except that the conditions described in subdivisions (d) and (e) below may exist for up to, but no longer than, seventy-five (75) days without triggering the Authority’s right to replace the Property Manager as described in the immediately following sentence as long as Developer is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, Executive Director shall have the sole and absolute right to immediately and without further notice to Developer (or to Property Manager or any other person/entity) to replace the Property Manager with a new property manager of the Executive Director’s selection at the sole cost and expense of Developer. If Developer takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager.‌

Gross Mismanagement. During the Affordability Period, and in the event of “Gross Mismanagement” (as that term is defined below) of the Apartment Complex or any part of the ProjectPhase II, Executive Director and/or Authority shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from Executive Director. If Developer or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the Executive Director), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non-defaulting party), then Developer or and its Property Manager shall have an additional 10 days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from the date of the initial written notice of such condition(s), except that the conditions condition described in subdivisions subdivision (d) and (e) below may exist for up to, but no longer than, seventy-five (75) days without triggering the Authority’s right to replace remove the Property Manager as described in the immediately following sentence as long as Developer is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, Executive Director shall have the sole and absolute right to immediately and without further notice to Developer (or to Property Manager or any other person/entity) to replace remove the Property Manager and Developer shall contract with a new property manager replacement Property Manager reasonably acceptable to Authority (in accordance with Section 4.11.1) within thirty (30) days following Authority’s removal of the Executive Director’s selection at the sole cost and expense of Developerdefaulting Property Manager. If Developer takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager.‌Manager.

Gross Mismanagement. During the Affordability Required Covenant Period, and in the event of “Gross Mismanagement” (as that term is defined below) of the Apartment Complex or any part of the ProjectDevelopment, Executive Director and/or Authority City Manager shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from Executive DirectorCity Manager. If Developer or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the Executive DirectorCity Manager), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non-defaulting party), then Developer or and its Property Manager shall have an additional 10 days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from the date of the initial written notice of such condition(s), except that the conditions described in subdivisions (d) and (e) below may exist for up to, but no longer than, seventy-five (75) days without triggering the AuthorityCity’s right to replace remove the Property Manager as described in the immediately following sentence as long as Developer is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, Executive Director City Manager shall have the sole and absolute right to immediately and without further notice to Developer (or to Property Manager or any other person/entity) to remove the Property Manager and replace the Property Manager with a new property manager of the Executive DirectorCity Manager’s selection at the sole cost and expense of Developer. If Developer takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager.‌Manager.

Gross Mismanagement. During the Affordability PeriodPeriod (for Phase A of the Project), and in the event of “Gross Mismanagement” ―Gross Mismanagement‖ (as that term is defined below) of Phase A of the Apartment Complex or any part of the ProjectComplex, Executive Director and/or Authority Landlord shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from Executive Director. If Developer Tenant or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the Executive Director), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non-defaulting party), then Developer or Tenant and its Property Manager shall have an additional 10 days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from the date of the initial written notice of such condition(s), except that the conditions described in subdivisions subdivision (d) and (e) below may exist for up to, but no longer than, seventy-five (75) days without triggering the AuthorityLandlord’s right to replace remove the Property Manager as described in the immediately following sentence as long as Developer Tenant is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, Executive Director shall have the sole and absolute right to immediately and without further notice to Developer Tenant (or to Property Manager or any other person/entity) to replace remove the Property Manager with a new property manager of the Executive Director’s selection at the sole cost and expense of DeveloperManager. If Developer Tenant takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager.‌Manager. For purposes of this Ground Lease, the term ―Gross Mismanagement‖ shall mean management of Phase A of the Apartment Complex in a manner which violates the terms and/or intention of this Ground Lease to operate a high quality affordable housing complex, and shall include, but is not limited to, any one or more of the following: (a) Habitually leasing to subtenants who exceed the prescribed income levels; (b) Habitually allowing subtenants to exceed the prescribed occupancy levels without taking immediate action to stop such overcrowding; (c) Under-funding required reserve accounts if Annual Project Revenues are sufficient to maintain such reserve accounts; (d) Failing to timely maintain the Apartment Complex in accordance with the Property Management Plan and Maintenance Standards; (e) Fraud or embezzlement of Apartment Complex funds, including without limitation funds in the reserve accounts; (f) Failing to fully cooperate with the Anaheim Police Department or other local law enforcement agency(ies) with jurisdiction over the Apartment Complex, in maintaining a crime-free environment within the Apartment Complex; (g) Failing to fully cooperate with the Anaheim Fire Department or other local public safety agency(ies) with jurisdiction over the Apartment Complex, in maintaining a safe and accessible environment within the Apartment Complex; (h) Failing to fully cooperate with the Anaheim Planning & Building Department, including the Code Enforcement Division, or other local health and safety enforcement agency(ies) with jurisdiction over the Apartment Complex, in maintaining a decent, safe and sanitary environment within the Apartment Complex; and (i) Spending funds from the Capital Replacement Reserve account for items that are not defined as eligible costs, including eligible capital and/or replacement costs, under the standards imposed by generally accepted accounting principles (―GAAP‖) (and/or, as applicable, generally accepted auditing principles). Notwithstanding the requirements of the Property Manager to correct any condition of Gross Mismanagement as described above, Tenant is obligated and shall use its best efforts to correct any defects in property management or operations at the earliest feasible time and, if necessary, to replace the Property Manager as provided above. Tenant shall include advisement and provisions of the foregoing requirements and requirements of this Ground Lease within any contract between Tenant and its Property Manager for Phase A of the Project.

Gross Mismanagement. During the Affordability PeriodPeriod (for Phase B of the Project), and in the event of “Gross Mismanagement” ―Gross Mismanagement‖ (as that term is defined below) of Phase B of the Apartment Complex or any part of the ProjectComplex, Executive Director and/or Authority Landlord shall have and retain the authority to direct and require any condition(s), acts, or inactions of Gross Mismanagement to cease and/or be corrected immediately, and further to direct and require the immediate removal of the Property Manager and replacement with a new qualified and approved Property Manager, if such condition(s) is/are not ceased and/or corrected after expiration of thirty (30) days from the date of written notice from Executive Director. If Developer Tenant or Property Manager has commenced to cure such Gross Mismanagement condition(s) on or before the 20th day from the date of written notice (with evidence of such submitted to the Executive Director), but has failed to complete such cure by the 30th day (or such longer period if the cure cannot reasonably be accomplished in thirty (30) days as reasonably determined by the non-defaulting party), then Developer or Tenant and its Property Manager shall have an additional 10 days to complete the cure of Gross Mismanagement condition(s). In no event shall any condition of Gross Mismanagement continue uncured for a period exceeding forty-five (45) days from the date of the initial written notice of such condition(s), except that the conditions described in subdivisions subdivision (d) and (e) below may exist for up to, but no longer than, seventy-five (75) days without triggering the AuthorityLandlord’s right to replace remove the Property Manager as described in the immediately following sentence as long as Developer Tenant is diligently working to cure such conditions of Gross Mismanagement. If such condition(s) do persist beyond such period, Executive Director shall have the sole and absolute right to immediately and without further notice to Developer Tenant (or to Property Manager or any other person/entity) to replace remove the Property Manager with a new property manager of the Executive Director’s selection at the sole cost and expense of DeveloperManager. If Developer Tenant takes steps to select a new Property Manager that selection is subject to the requirements set forth above for selection of a Property Manager.‌Manager. For purposes of this Ground Lease, the term ―Gross Mismanagement‖ shall mean management of Phase B of the Apartment Complex in a manner which violates the terms and/or intention of this Ground Lease to operate a high quality affordable housing complex, and shall include, but is not limited to, any one or more of the following: (a) Habitually leasing to subtenants who exceed the prescribed income levels; (b) Habitually allowing the subtenants to exceed the prescribed occupancy levels without taking immediate action to stop such overcrowding; (c) Under-funding required reserve accounts if Annual Project Revenues are sufficient to maintain such reserve accounts; (d) Failing to timely maintain the Apartment Complex in accordance with the Property Management Plan and Maintenance Standards; (e) Fraud or embezzlement of Apartment Complex funds, including without limitation funds in the reserve accounts; (f) Failing to fully cooperate with the Anaheim Police Department or other local law enforcement agency(ies) with jurisdiction over the Apartment Complex, in maintaining a crime-free environment within the Apartment Complex; (g) Failing to fully cooperate with the Anaheim Fire Department or other local public safety agency(ies) with jurisdiction over the Apartment Complex, in maintaining a safe and accessible environment within the Apartment Complex; (h) Failing to fully cooperate with the Anaheim Planning & Building Department, including the Code Enforcement Division, or other local health and safety enforcement agency(ies) with jurisdiction over the Apartment Complex, in maintaining a decent, safe and sanitary environment within the Apartment Complex; and (i) Spending funds from the Capital Replacement Reserve account for items that are not defined as eligible costs, including eligible capital and/or replacement costs, under the standards imposed by generally accepted accounting principles (―GAAP‖) (and/or, as applicable, generally accepted auditing principles). Notwithstanding the requirements of the Property Manager to correct any condition of Gross Mismanagement as described above, Tenant is obligated and shall use its best efforts to correct any defects in property management or operations at the earliest feasible time and, if necessary, to replace the Property Manager as provided above. Tenant shall include advisement and provisions of the foregoing requirements and requirements of this Ground Lease within any contract between Tenant and its Property Manager for Phase B of the Project.