Common use of Maintenance of Reserves Clause in Contracts

Maintenance of Reserves. Participant shall, commencing as of the first month following the first anniversary of the completion of the first Unit (as such completion is evidenced by the issuance of a certificate of occupancy by the City as to the corresponding building), set aside the Capital Replacement Reserve. The Capital Replacement Reserve shall be deposited into a separate interest-bearing trust account. Funds in the Capital Replacement Reserve shall be used for capital replacements to the Improvements’ fixtures and equipment which are normally capitalized under generally accepted accounting principles. As capital repairs and improvements of the Development become necessary, the Capital Replacement Reserve shall be the first source of payment therefor; provided, however, that Participant may first use other funds for payment with the prior consent of City Manager, which approval shall not be unreasonably withheld. The non-availability of funds in the Capital Replacement Reserve does not in any manner relieve Participant of the obligation to undertake necessary capital repairs and improvements and to continue to maintain the Site in the manner prescribed in this Section 3.3 and the CC&Rs. Participant, at its expense, shall submit to City on not less than an annual basis an accounting for the Capital Replacement Reserve. Any moneys in the Capital Replacement Reserve which are not expended as of June 1, 2067 shall be applied toward payment on one or more obligations payable by Participant to the City. Capital repairs to and replacement of the Improvements shall include only those items with a long useful life, including without limitation the following: (a) appliance replacement; (b) hot water heater replacement; (c) plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; (d) air conditioning and heating replacement; (e) asphalt replacement;

Maintenance of Reserves. Participant shallshall set aside, or cause the permanent lender to, commencing as of the first month following the first anniversary of the completion of the first Housing Unit (as such completion is evidenced by the issuance of a certificate of occupancy by the City as to the corresponding building), ) set aside the Capital Replacement Reserve. A Capital Replacement Reserve shall be established by the Participant as a capital reserve in the amount of One Thousand Dollars ($1,000.00) per Year (for the first Year), which shall remain fixed for the first five Years and then shall increase by fifty dollars ($50.00) per unit annually, to a maximum of Five Hundred Dollars ($500.00) per unit annually. The Capital Replacement Reserve is more fully described in Section 3.3 of this Agreement. The Capital Replacement Reserve shall be deposited into a separate interest-bearing trust account. Funds in the Capital Replacement Reserve shall be used for capital replacements to the Improvements’ fixtures and equipment which are normally capitalized under generally accepted accounting principles. As capital repairs and improvements of the Development become necessary, the Capital Replacement Reserve shall be the first source of payment therefor; provided, however, that Participant may first use other funds for payment with the prior consent of City Manager, which approval shall not be unreasonably withheld. The non-non- availability of funds in the Capital Replacement Reserve does not in any manner relieve Participant of the obligation to undertake necessary capital repairs and improvements and to continue to maintain the Site in the manner prescribed in this Section 3.3 5 and the CC&RsAHA. Participant, at its expense, shall submit to City on not less than an annual basis an accounting for the Capital Replacement Reserve. Any moneys in the Capital Replacement Reserve which are not expended as of June 1, 2067 shall be applied toward payment on one or more the obligations payable by of Participant to City under the CityAHA, including the attachments thereto. Capital repairs to and replacement of the Improvements shall include only those items with a long useful life, including without limitation the following: (a) appliance replacement; (b) hot water heater replacement; (c) plumbing fixtures replacement, including tubs and showers, toilets, lavatories, sinks, faucets; (d) air conditioning and heating replacement; (e) asphalt replacement;: