Common use of OPERATION AND MANAGEMENT OF THE PROJECT; RESIDENTIAL UNITS; BOOKS AND RECORDS Clause in Contracts

OPERATION AND MANAGEMENT OF THE PROJECT; RESIDENTIAL UNITS; BOOKS AND RECORDS. Section 26.01 Property Manager. Provided that no Event of Default exists, Tenant may select and enter into an agreement for the management and operation of the Premises with any party without the consent of the FCRHA if such party is an Affiliate of Tenant or such party satisfies the following requirements: (a) such proposed property manager, or the officer or manager having supervisory responsibility for the Project has at least five (5) years’ experience operating residential projects similar in size to or larger than the Project, (b) such proposed property manager is not one against whom any action or proceeding is pending to enforce rights of the Commonwealth of Virginia or any agency, department, public authority or public benefit corporation thereof arising out of a mortgage obligation to the Commonwealth of Virginia or to any such agency, department, public authority or public benefit corporation, and (c) such proposed property manager is not one with respect to whom any notice of default which remains uncured has been given by the Commonwealth of Virginia or any agency, department, public authority or any public benefit corporation thereof arising out of a contractual obligation to the Commonwealth of Virginia or to any such agency, department, public authority or public benefit corporation. Tenant shall, prior to the effective date of any such management agreement, notify the FCRHA of the proposed management agreement and submit to the FCRHA all information and documents the FCRHA may reasonably require for its review with respect to the criteria set forth above. If the FCRHA determines that the third-party manager does not comply with the foregoing criteria, the FCRHA shall so advise Tenant in writing within twenty (20) Business Days, specifying in what respect the proposed third-party manager does not conform to the requirements above. In such event, Tenant shall submit a different third-party manager for the FCRHA’s review in accordance with the terms of this Section or provide evidence reasonably satisfactory to the FCRHA that such third-party property manager has satisfied the criteria set forth above. Each review by the FCRHA shall be carried out within twenty (20) Business Days of the date of delivery of the information requested hereunder, and if the FCRHA does not notify Tenant of FCRHA’s determination within the time period for the FCRHA’s review as outlined above, then Tenant shall have the right to give to the FCRHA a second notice stating (in bold, capital letters) “IF THE FCRHA SHALL FAIL TO RESPOND TO TENANT WITHIN FIVE (5) BUSINESS DAYS AFTER THE FCRHA’S RECEIPT OF THIS NOTICE, THE FCRHA SHALL BE DEEMED TO HAVE DETERMINED THAT THE PROPOSED THIRD-PARTY MANAGER CONFORMS TO THE REQUIREMENTS IN SECTION 26.01 OF THE LEASE” and if the FCRHA has not notified Tenant of its determination within such five (5) Business Day period following the FCRHA’s receipt of such second notice, the FCRHA shall be deemed to have determined that the third-party property manager is satisfactory. Each property manager that satisfies the requirements of this Section 26.01 shall be an “Approved Property Manager” and any management agreement between Tenant and an Approved Property Manager with respect to the Project shall be a “Management Agreement”. Notwithstanding the forgoing, [ ], a [ ], an Affiliate of the Tenant, is an Approved Property Manager under this Lease. Tenant shall not enter into a management agreement with a new third-party property manager or consent to the assignment by an Approved Property Manager of its interest under its Management Agreement, without first complying with the notification and verification requirements set forth in this Section 26.01.

OPERATION AND MANAGEMENT OF THE PROJECT; RESIDENTIAL UNITS; BOOKS AND RECORDS. Section 26.01 Property Manager. Provided that no Event of Default exists, Tenant may select and enter into an agreement for the management and operation of the Premises with any party without the consent of the FCRHA if such party is an Affiliate of Tenant or such party satisfies the following requirements: (a) such proposed property manager, or the officer or manager having supervisory responsibility for the Project has at least five (5) years’ experience operating residential projects similar in size to or larger than the Project, (b) such proposed property manager is not one against whom any action or proceeding is pending to enforce rights of the Commonwealth of Virginia or any agency, department, public authority or public benefit corporation thereof arising out of a mortgage obligation to the Commonwealth of Virginia or to any such agency, department, public authority or public benefit corporation, and (c) such proposed property manager is not one with respect to whom any notice of default which remains uncured has been given by the Commonwealth of Virginia or any agency, department, public authority or any public benefit corporation thereof arising out of a contractual obligation to the Commonwealth of Virginia or to any such agency, department, public authority or public benefit corporation. Tenant shall, prior to the effective date of any such management agreement, notify the FCRHA of the proposed management agreement and submit to the FCRHA all information and documents the FCRHA may reasonably require for its review with respect to the criteria set forth above. If the FCRHA determines that the third-party manager does not comply with the foregoing criteria, the FCRHA shall so advise Tenant in writing within twenty (20) Business Days, specifying in what respect the proposed third-party manager does not conform to the requirements above. In such event, Tenant shall submit a different third-party manager for the FCRHA’s review in accordance with the terms of this Section or provide evidence reasonably satisfactory to the FCRHA that such third-party property manager has satisfied the criteria set forth above. Each review by the FCRHA shall be carried out within twenty (20) Business Days of the date of delivery of the information requested hereunder, and if the FCRHA does not notify Tenant of FCRHA’s determination within the time period for the FCRHA’s review as outlined above, then Tenant shall have the right to give to the FCRHA a second notice stating (in bold, capital letters) “IF THE FCRHA SHALL FAIL TO RESPOND TO TENANT WITHIN FIVE (5) BUSINESS DAYS AFTER THE FCRHA’S RECEIPT OF THIS NOTICE, THE FCRHA SHALL BE DEEMED TO HAVE DETERMINED THAT THE PROPOSED THIRD-PARTY MANAGER CONFORMS TO THE REQUIREMENTS IN SECTION SECTION 26.01 OF THE LEASE” and if the FCRHA has not notified Tenant of its determination within such five (5) Business Day period following the FCRHA’s receipt of such second notice, the FCRHA shall be deemed to have determined that the third-party property manager is satisfactory. Each property manager that satisfies the requirements of this Section 26.01 shall be an “Approved Property Manager” and any management agreement between Tenant and an Approved Property Manager with respect to the Project shall be a “Management Agreement”. Notwithstanding the forgoing, [ ], a [ ], an Affiliate of the Tenant, is an Approved Property Manager under this Lease. Tenant shall not enter into a management agreement with a new third-third- party property manager or consent to the assignment by an Approved Property Manager of its interest under its Management Agreement, without first complying with the notification and verification requirements set forth in this Section 26.01.