Common use of Operating Obligations Clause in Contracts

Operating Obligations. (a) From the date the first apartment unit in the Apartment Housing is available for its intended use until 3 consecutive months of Breakeven Operations, the General Partner will immediately provide to the Partnership the necessary funds to pay Operating Deficits, which funds shall not be repayable, shall not change the Interest of any Partner and shall be considered a guaranteed payment to the Partnership for cost overruns. For the balance of the Operating Deficit Guarantee Period, the General Partner will immediately provide Operating Loans to pay any Operating Deficits. Beginning in the sixth year of the Operating Deficit Guarantee Period, provided the General Partner has delivered to the Special Limited Partner audited financial statements evidencing the Partnership's achievement of a Debt Service Coverage 1.15 for the preceding three calendar years, the aggregate maximum amount of the Operating Loan(s) the General Partner will be obligated to lend will be $2,105,000 (the "Operating Deficit Cap"). The Operating Deficit Cap shall not apply to limit General Partner's obligation to make Operating Loans: (i) during the first five years of the Operating Deficit Guarantee Period, or (ii) in any subsequent year of the Operating Deficit Guarantee Period, until the General Partner has delivered the audited financial statements evidencing Debt Service Coverage of 1.15 for the preceding three calendar years. The amount of any Operating Deficit that arises prior to the year in which the Operating Deficit Cap becomes effective shall not be counted toward the Operating Deficit Cap. Notwithstanding the foregoing, the Operating Deficit Cap shall not apply to limit the General Partner's obligation to make Operating Loans if the HAP Contract is terminated due to any action or omission of the General Partner in violation of the HAP Contract or Section 8 program requirements, other than a termination due to reasons beyond the reasonable control of the General Partner. (b) Each Operating Loan shall be nonrecourse to the Partners, and shall be repayable out of 50% of the available Net Operating Income or Sale or Refinancing Proceeds in accordance with Article XI of this Agreement. (c) The Partnership shall pay the Development Fee in accordance with the terms of the Amended and Restated Development Fee Agreement and Section 11.1 of this Agreement.

Operating Obligations. (a) From the date the first apartment unit in the Apartment Housing is available for its intended use (for properties being rehabilitated with the tenants in residence, the period commences with the signing of this Agreement) until 3 three consecutive months of Breakeven OperationsOperations (for properties being rehabilitated, the Operating Deficit Guarantee Period ends following three consecutive months of Breakeven Operations after completion of all rehabilitation as approved in the Plans and Specifications or scope of work), the General Partner will immediately provide to the Partnership the necessary funds to pay Operating Deficits, which funds shall not be repayable, shall not change the Interest of any Partner and shall be considered a guaranteed payment to the Partnership for cost overruns. For the balance of the Operating Deficit Guarantee Period, Period the General Partner will immediately provide Operating Loans to pay any Operating Deficits. Beginning in the sixth year of the Operating Deficit Guarantee Period, provided the General Partner has delivered to the Special Limited Partner audited financial statements evidencing the Partnership's achievement of a Debt Service Coverage 1.15 for the preceding three calendar years, the The aggregate maximum amount of the Operating Loan(s) the General Partner will be obligated to lend will be $2,105,000 231,404 which is equal to one year's operating expenses (the "Operating Deficit Cap"). The Operating Deficit Cap shall not apply including debt and reserves) as agreed to limit General Partner's obligation to make Operating Loans: (i) during the first five years of the Operating Deficit Guarantee Period, or (ii) in any subsequent year of the Operating Deficit Guarantee Period, until by the General Partner has delivered and the audited financial statements evidencing Debt Service Coverage of 1.15 for the preceding three calendar yearsSpecial Limited Partner. The amount of any Operating Deficit that arises prior to the year in which the Operating Deficit Cap becomes effective shall not be counted toward the Operating Deficit Cap. Notwithstanding the foregoing, the Operating Deficit Cap shall not apply to limit the General Partner's obligation to make Operating Loans if the HAP Contract is terminated due to any action or omission of the General Partner in violation of the HAP Contract or Section 8 program requirements, other than a termination due to reasons beyond the reasonable control of the General Partner. (b) Each Operating Loan shall be nonrecourse to the Partners, and shall be repayable out of 50% of the available Net Operating Income or Sale or Refinancing Proceeds in accordance with Article XI of this Agreement. (cb) The Partnership shall pay the amount of the Development Fee set forth in accordance with Exhibit B to the terms of the Amended and Restated Development Fee Agreement and entered into as of even date herewith on an annual basis (the "Scheduled Amount"). In the event the Net Operating Income of the Partnership is insufficient to pay such annual amount, the General Partner shall contribute to the Partnership the amount by which Net Operating Income distributable for payment of the Development Fee pursuant to Section 11.1 of this Agreementis less than the Scheduled Amount, and such amount shall be includable in the General Partner's Capital Account.

Operating Obligations. (a) From the date the first apartment unit in the Apartment Housing is available for its intended use until 3 consecutive months of Breakeven Operations, the General Partner will immediately provide to the Partnership the necessary funds to pay Operating Deficits, which funds shall not be repayable, shall not change the Interest of any Partner and shall be considered a guaranteed payment to the Partnership for cost overruns. For the balance of the Operating Deficit Guarantee Period, the General Partner will immediately provide Operating Loans to pay any Operating Deficits. Beginning in the sixth year of the Operating Deficit Guarantee Period, provided the General Partner has delivered to the Special Limited Partner audited financial statements evidencing the Partnership's achievement of a Debt Service Coverage 1.15 for the preceding three calendar years, the aggregate maximum amount of the Operating Loan(s) the General Partner will be obligated to lend will be $2,105,000 1,905,800 (the "Operating Deficit Cap"). The Operating Deficit Cap shall not apply to limit General Partner's obligation to make Operating Loans: (i) during the first five years of the Operating Deficit Guarantee Period, or (ii) in any subsequent year of the Operating Deficit Guarantee Period, until the General Partner has delivered the audited financial statements evidencing Debt Service Coverage of 1.15 for the preceding three calendar years. The amount of any Operating Deficit that arises prior to the year in which the Operating Deficit Cap becomes effective shall not be counted toward the Operating Deficit Cap. Notwithstanding the foregoing, the Operating Deficit Cap shall not apply to limit the General Partner's obligation to make Operating Loans if the HAP Contract is terminated due to any action or omission of the General Partner in violation of the HAP Contract or Section 8 program requirements, other than a termination due to reasons beyond the reasonable control of the General Partner. (b) Each Operating Loan shall be nonrecourse to the Partners, and shall be repayable out of 50% of the available Net Operating Income or Sale or Refinancing Proceeds in accordance with Article XI of this Agreement. (c) The Partnership shall pay the Development Fee in accordance with the terms of the Amended and Restated Development Fee Agreement and Section 11.1 of this Agreement.

Operating Obligations. (a) From the date the first apartment unit in the Apartment Housing is available for its intended use (for properties being rehabilitated with the tenants in residence, the period commences with the signing of this Agreement) until 3 three consecutive months of Breakeven OperationsOperations (for properties being rehabilitated, the Operating Deficit Guarantee Period ends following three consecutive months of Breakeven Operations after completion of all rehabilitation as approved in the Plans and Specifications or scope of work), the General Partner will immediately provide to the Partnership the necessary funds to pay Operating Deficits, which funds shall not be repayable, shall not change the Interest of any Partner and shall be considered a guaranteed payment to the Partnership for cost overruns. For the balance of the Operating Deficit Guarantee Period, Period the General Partner will immediately provide Operating Loans to pay any Operating Deficits. Beginning in the sixth year of the Operating Deficit Guarantee Period, provided the General Partner has delivered to the Special Limited Partner audited financial statements evidencing the Partnership's achievement of a Debt Service Coverage 1.15 for the preceding three calendar years, the The aggregate maximum amount of the Operating Loan(s) the General Partner will be obligated to lend will be $2,105,000 108,108 which is equal to one year's operating expenses (the "Operating Deficit Cap"). The Operating Deficit Cap shall not apply including debt and reserves) as agreed to limit General Partner's obligation to make Operating Loans: (i) during the first five years of the Operating Deficit Guarantee Period, or (ii) in any subsequent year of the Operating Deficit Guarantee Period, until by the General Partner has delivered and the audited financial statements evidencing Debt Service Coverage of 1.15 for the preceding three calendar yearsSpecial Limited Partner. The amount of any Operating Deficit that arises prior to the year in which the Operating Deficit Cap becomes effective shall not be counted toward the Operating Deficit Cap. Notwithstanding the foregoing, the Operating Deficit Cap shall not apply to limit the General Partner's obligation to make Operating Loans if the HAP Contract is terminated due to any action or omission of the General Partner in violation of the HAP Contract or Section 8 program requirements, other than a termination due to reasons beyond the reasonable control of the General Partner. (b) Each Operating Loan shall be nonrecourse to the Partners, and shall be repayable out of 50% of the available Net Operating Income or Sale or Refinancing Proceeds in accordance with Article XI of this Agreement. (cb) The Partnership shall pay the amount of the Development Fee set forth in accordance with Exhibit B to the terms of the Amended and Restated Development Fee Agreement and entered into as of even date herewith on an annual basis (the "Scheduled Amount"). In the event the Net Operating Income of the Partnership is insufficient to pay such annual amount, the General Partner shall contribute to the Partnership the amount by which Net Operating Income distributable for payment of the Development Fee pursuant to Section 11.1 of this Agreementis less than the Scheduled Amount, and such amount shall be includable in the General Partner's Capital Account.