Common use of Replacement Reserve Fund Clause in Contracts

Replacement Reserve Fund. The Mortgagor shall establish and maintain a Replacement Reserve Fund by depositing monthly installments with the Authority, beginning with the Mortgage Cutoff Date, as determined by the Authority. For the first year, the annual payment to the Replacement Reserve Fund shall be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 below, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 Loan as accelerated.

Replacement Reserve Fund. The Mortgagor shall establish and maintain a Replacement Reserve Fund by depositing monthly installments with the Authority, beginning with the Mortgage Cutoff Date, as determined by commencement of amortization of the Authoritypermanent mortgage loan. For the first year, the annual payment to the Replacement Reserve Fund shall be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 TCAP Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 belowTCAP Mortgage, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 TCAP Loan as accelerated.

Replacement Reserve Fund. The Mortgagor shall establish and maintain a Replacement Reserve Fund by depositing monthly installments with the Authority, beginning with the Mortgage Cutoff Date, as determined by commencement of amortization of the Authoritypermanent mortgage loan. For the first year, the annual payment to the Replacement Reserve Fund shall be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 Mortgage Loan or TCAP Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 belowMortgage or TCAP Mortgage, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 Mortgage Loan or TCAP Loan as accelerated.accelerated.‌

Replacement Reserve Fund. The a. At or prior to closing of the Mortgage Loan, the Mortgagor shall establish and maintain a Replacement Reserve Fund with the Authority by depositing monthly installments with the AuthorityAuthority the amount of $***, beginning with the Mortgage Cutoff Date, as determined by the Authority. For the first year, the annual payment to and maintain the Replacement Reserve Fund pursuant to this Agreement. To the extent that certified actual costs are less than the costs of the acquisition and rehabilitation of the Development used by the Authority to authorize the Mortgage Loan, any remaining Mortgage Loan proceeds shall be applied first to pay any remaining deferred developer fee, then disbursed into the Replacement Reserve Fund. b. In addition to the deposits required pursuant to section 8.a. above, beginning *** , the Mortgagor shall make monthly payment for deposit into the Replacement Reserve Fund, in the initial amount of be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds . c. Amounts on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Reserve d. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 below, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 Loan as accelerated. e. The Authority shall continue to hold and administer the Replacement Reserves as set forth herein, for the longer of the period the Mortgage Loan is outstanding or so long as the HAP Contract is in effect.

Replacement Reserve Fund. The Mortgagor shall establish and maintain a Replacement Reserve Fund by depositing monthly installments with the Authority, beginning with the Mortgage Cutoff Date, as determined by the Authority. For the first year, the annual payment to the Replacement Reserve Fund shall be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 below, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 Loan as accelerated.

Replacement Reserve Fund. The a. At or prior to closing of the Mortgage Loan, the Mortgagor shall establish and maintain a Replacement Reserve Fund with the Authority by depositing monthly installments with the AuthorityAuthority the amount of $***, beginning with the Mortgage Cutoff Date, as determined by the Authority. For the first year, the annual payment to and maintain the Replacement Reserve Fund pursuant to this Agreement. To the extent that certified actual costs are less than the costs of the acquisition and rehabilitation of the Development used by the Authority to authorize the Mortgage Loan, any remaining Mortgage Loan proceeds shall be applied first to pay any remaining deferred developer fee, then disbursed into the Replacement Reserve Fund. b. In addition to the deposits required pursuant to section 8.a. above, beginning *** , the Mortgagor shall make monthly payment for deposit into the Replacement Reserve Fund, in the initial amount of be $***, payable in monthly installments of $***. Subsequent to the first year of operation, monthly installments shall increase to an amount which is the greater of 3% higher than the deposit for the prior year be made based upon or an amount equal to 1/12 of ***% of the gross annual rent potential (including tenant contributions and subsidies) for the Development as indicated in the most recent annual budget prepared by the management agent of the Mortgagor and approved by the Authority's Director of Asset Management ("Gross Rent Potential"), unless a different payment schedule or amount is approved or directed in writing by an Authorized Officer of the Authority. The Authority agrees to consult with the Mortgagor regarding any increase in the funding of the Replacement Reserve Fund which is higher than the required funding formula specified in this Agreement; provided, however, that the decision concerning any increase in the funding shall be solely within the discretion of the Authority. Funds . c. Amounts on deposit in the Replacement Reserve Fund shall be invested and reinvested by the Authority's Office of Finance in accordance with the Act, and shall at all times be under the control of the Authority. Interest earned on this Fund, if any, shall become a part of this Fund and shall be treated and disbursed in the same way as any other deposits to the Fund, in accordance with the Authority's policy regarding the use of Replacement Reserve Funds. Reserve d. Disbursements from this Fund shall be made only for the replacement of eligible items which have exhausted their useful life, or in emergency situations to protect the health, safety and welfare of the tenants residing at the Development, and all disbursements shall be made in accordance with the Authority's written Replacement Reserve Fund policy, as amended from time to time, and only upon the written direction of an Authorized Officer of the Authority. . In the event that the Section 1602 Mortgage Loan or TCAP Loan is accelerated after a default in the terms of the in the terms of the Section 1602 Regulations and other Section 1602 requirements resulting in the Mortgagor becoming liable for a Recapture Obligation pursuant to section 31 belowMortgage or TCAP Mortgage, the Authority may, in its sole discretion but is not required to, apply or authorize the application of the balance on deposit in this Fund to the amount due on the Section 1602 Mortgage Loan or TCAP Loan as accelerated.