Repairs to improvements. Lessee shall, at its own expense, keep, repair, and maintain all buildings and improvements now existing or hereafter constructed or installed on the Premises in good order, condition, and repair, reasonable wear and tear excepted, which obligations shall include, without limitation, all structural and non-structural and capital and non-capital repairs and replacements. Lessee shall also, at its own expense, make any and all repairs and perform all work required by applicable law to keep the property, buildings, and improvements on the Premises in compliance with all applicable County, State, and Federal laws and regulations, including but not limited to environmental, Americans with Disabilities Act, and other requirements. Lessee shall establish and maintain a reserve fund for replacements by depositing to an account (the “Reserve Fund for Replacements”) an annual amount of at least $300 per dwelling unit in the Project on the Premises per year. The Reserve Fund for Replacements shall be held in a safe, responsible, and federally insured depository approved by Lessor. Such fund, whether in the form of a cash deposit or obligations of, or fully guaranteed as to principal by, the United States of America, shall at all times be under the control of Lessor, an Authorized Mortgagee (as defined in Section 21), or other entity approved by Lessor. Disbursements from the Reserve Fund for Replacements shall require prior written approval of Lessor, which shall not be unreasonably withheld, conditioned, or delayed; provided, however, if an Authorized Mortgagee requires the use of funds in the Reserve Fund for Replacements, Lessee shall be entitled to disbursements from the Reserve Fund for Replacements in order to satisfy such requirement. Notwithstanding anything in this paragraph to the contrary, at any time an Authorized Mortgagee or a limited partner of Lessee requires Lessee to maintain an account for similar purposes as the Reserve Fund for Replacements and the said account (i) is required to be held in a safe, responsible, and federally insured depository, (ii) requires the deposit of at least $300 per dwelling unit in the Project on the Premises per year, and (iii) contains a balance of at least $300 per dwelling unit in the Project on the Premises deposited per year since the commencement of the account, less authorized expenditures, the requirements of such Authorized Mortgagee or limited partner with respect to the treatment and use of the funds in such ...
Repairs to improvements. That the Lessee shall, at its own expense, keep, repair and maintain all buildings and improvements now existing or hereafter constructed or installed on the demised premises in good order, condition and repair, reasonable wear and tear excepted. As part of its due diligence and review process, staff notes that the Internal Revenue Service (IRS) has provided criteria to determine what would qualify as a capital improvement, which is an improvement that adds to the value of a property, extends its useful life, or adjusts it to new uses. The property is improved whenever it experiences a betterment, adaption or restoration. An expenditure is for betterment if it facilitates a material condition or defect in the property that existed before it was acquired or when it was produced - it makes no difference whether or not you were cognizant of the defect when you received the unit of property; results in a material addition to the property - for instance, physically broadens, grows, or extends it, or results in a material increase in the property's capacity, productivity, power, or quality. An expenditure is for a restoration if it returns a property that has plunged into disrepair to its ordinarily efficient operating condition; rebuilds the property to a like-new condition after the end of its useful economic life; replaces a significant part or important structural component of the property; replaces a piece of a property for which the owner has taken a loss, or repairs damage to a property for which the owner has taken a basis adjustment for a casualty loss.4 Generally, repairs are one-time expenditures to keep the property as currently existing in a usable and operating condition.5 4 Information can be found at this link: xxxxx://xxx.xxx.xxx/businesses/small-businesses-self- employed/tangible-property-final-regulations#Whatisthefactsandcircumstancesanalysis. 5 The United States Supreme Court has recognized the highly factual nature of determining whether expenditures are for capital improvements or for ordinary repairs. See Xxxxx x. Xxxxxxxxx, 290 U.S. 111, 114 (1933) (“[T]he decisive distinctions [between capital and ordinary expenditures] are those of degree and not of kind”); Deputy v. du Pont, 308 U.S. 488, 496 (1940) (observing that each case “turns on its special facts”). Because of the factual nature of the issue, the courts have articulated a number of ways to distinguish between deductible repairs and non-deductible capital improvements. For exampl...
Repairs to improvements. The LESSEE shall, at its own expense, keep, repair and maintain all buildings and improvements now existing or hereafter constructed or installed on the premises in good order, condition and repair, reasonable wear and tear excepted; provided, however, LESSEE shall have no obligation to repair or restore damage to the extent caused by on event beyond its control as provided in paragraph 45, except that the proceeds of insurance required under paragraph 37 shall be applied as provided therein.
Repairs to improvements. Sublessee shall, at its own expense, keep, repair and maintain all buildings and improvements now existing or hereafter constructed or installed on the subleased premises in good order, condition, and repair, reasonable wear and tear excepted.
Repairs to improvements. That Developer shall at its own expense, keep, repair and maintain all buildings and other improvements now existing or hereafter constructed or installed on the premises in good order, condition and repair, reasonable wear and tear excepted.
