Program Loan Documents. The Sponsor shall enter into this Standard Agreement with the Department, which shall govern the encumbrance of the Program Loan funds. In addition, the Sponsor shall enter into a regulatory agreement with the Department, which will govern the use, operation and occupancy of the Development. The regulatory agreement will provide for, among other things, the imposition of certain low-income occupancy requirements, the regulation of rents on the low-income units, audits and other financial controls, reserve requirements, management oversight by the Department, and compliance with federal and state laws. In addition to the regulatory agreement, the Loan shall be evidenced by a promissory note and secured by a deed of trust. The regulatory agreement shall be recorded prior to the Department's deed of trust. The Sponsor shall execute and enter into additional agreements and documents, as the Department may deem reasonable and necessary to meet the Program requirements and the terms and conditions of this Agreement. The Sponsor Operating Guaranty must be executed in accordance with paragraph 15 of this Agreement to provide the Department with assurance that the Sponsor has the resources and experience to develop, own and manage the Development.
Program Loan Documents. The Sponsor shall enter into this Standard Agreement with the Department, which shall govern the encumbrance by the Department of the funds to be used to fund the Loan. In addition, the Sponsor shall enter into a Regulatory Agreement with the Department, governing certain matters related to the use, operation and occupancy of the Development, including, but not limited to, the imposition of certain low income occupancy requirements, regulation of rents on the low income units, audits and other financial controls and reserve requirements, management oversight by the Department, compliance with federal and state laws, and other Department requirements. In addition to the Regulatory Agreement, the Loan shall be evidenced by a Promissory Note and secured by a Deed of Trust. The Regulatory Agreement shall be recorded prior to the Department's Deed of Trust. The Sponsor shall execute and enter into additional agreements and documents, as the Department may deem reasonable and necessary to meet the Program requirements and the terms and conditions of this Agreement. The Sponsor and any affiliate of the Sponsor which demonstrated the requisite experience of owning and developing affordable rental housing, must execute the Department's Sponsor Operating Guaranty to ensure that the Sponsor has the resources and experience to develop, own and manage the Development.
Program Loan Documents. The Sponsor shall enter into this Agreement with the Department, which shall govern the encumbrance of the Program Loan funds. In addition, the Sponsor shall enter into a regulatory agreement with the Department, governing the use, operation and occupancy of the Development, including, but not limited to, the imposition of certain low income occupancy requirements, regulation of rents on the low income units, audits and other financial controls and reserve requirements, management oversight by the Department, compliance with federal and state laws, and other Department requirements. In addition to the regulatory agreement, the Loan shall be evidenced by a promissory note and secured by a deed of trust. The regulatory agreement shall be recorded prior to the Department's deed of trust. The Sponsor shall execute and enter into additional agreements and documents, as the Department may deem reasonable and necessary to meet the Program Requirements and terms and conditions of this Agreement. The Sponsor, and any affiliate of the Sponsor which met the application threshold requirements of experience and capacity, must execute the Department's Sponsor Operating Guaranty to provide assurance that the Sponsor has the resources and experience to develop, own and manage the Development.
