Reductions to Program Grants for Condominium Conversion of Residential Units Sample Clauses

Reductions to Program Grants for Condominium Conversion of Residential Units. Developer understands and agrees that full Program Grants are payable under this Agreement only to the extent that all Residential Units are exclusively rental apartments and not condominiums. Notwithstanding anything to the contrary herein, if any Residential Units are converted to condominiums, for the remainder of the Term each Program Grant payable in accordance with this Agreement shall be reduced by an amount equal to all Residential Property Taxes owed for the previous tax year, but the amount of any such reduction shall nevertheless be included in calculating the Program Cap. For example, if one-third (1/3) of the Residential Units are converted to condominiums in 2018, the Program Grant otherwise payable in 2019 shall be reduced by an amount equal to all Residential Property Taxes owed for the 2018 tax year. Therefore, by way of example only, if the Residential Property Taxes owed for the 2018 tax year equals $500,000.00, and the Program Grant otherwise payable in 2019 would have been $3 million, the actual Program Grant payable in 2019 would be $2.5 million, but for purposes of calculating the Program Cap, the City will be credited for having made a Program Grant payment of $3 million. If all Residential Units that were converted to condominiums are subsequently leased as rental apartments by Developer or a successor in interest hereunder, then this Section 5.3.2 shall not apply to a Program Grant payable in a given Program Year so long as all Residential Units were used exclusively as rental apartments for the entirety of the previous calendar year.
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