Common use of Use Restrictions; Monitoring and Reporting Clause in Contracts

Use Restrictions; Monitoring and Reporting. a. City and TCAH intend that the Property be forever held and operated solely and exclusively as affordable housing. Accordingly, TCAH hereby acknowledges and agrees that prior to recording the Deed, City shall cause to be recorded against the Property a Restrictive Covenant in the form of Exhibit C hereto, requiring that the Property be held and used only for affordable housing unless City and TCAH otherwise agree in writing. b. While TCAH continues to own the Property, staff from City’s Human Services Department (or the designated successor(s) thereof) shall have the right to monitor all leases and rentals for compliance with income eligibility and programmatic requirements. c. While TCAH continues to own the Property, it shall: (i) comply with all laws, rules and regulations applicable to the Property and to the operation of low income housing, including without limitation any requirements imposed by the source of any funding for construction of the improvements on the Property, to the extent the same remain applicable; (ii) maintain all records relating to operation of the Property as may be required by any governmental body that has jurisdiction over the Property or that provided funding for the Improvements on the Property; (iii) comply with the requirements and standards of Office of Management and Budget (“OMB”) Circular No. A-122 (revised), “Cost Principles for Nonprofit Organizations, and establish and/or maintain accounting systems to assure that it is audited and that those audits meet the requirements for Circular A-110 “Uniform Requirements for Grants to Universities, Hospitals, and other Nonprofit Organizations” and if applicable OMB Circular No. A-133 (revised) “Audits of States, Local Governments, and Nonprofit Organizations”; (iv) maintain records of all ethnic and racial statistics of persons and families benefited in the performance of its services on the Property, including, but not limited to, the number of low and moderate income persons (51%-80% of median income), the number of very low income persons (31%-50% of median income) and the number of extremely low income persons (0-30% of median income) and households assisted in accordance with federal income limits, the number of elderly (over 62 years of age) and individuals with disabilities, family size, and number of female heads of households; (v) provide City with written reports of its activities at such intervals, but not more frequently than quarterly, as City may request; (vi) provide City and the United States Government and/or their representatives with access to the Property and financial records pertaining to the Property and its operations. d. TCAH shall cause the revenue generated by its operation of the Property to be allocated to establishing appropriate reserves for maintenance and repair of the improvements on the Property, and to creating a Housing Trust Fund to be used for future acquisitions of additional affordable housing units within the City of Tempe, all in such amounts as may be approved by the Board of Directors of TCAH. e. TCAH hereby covenants and agrees as to the matters set forth below unless City otherwise agrees in writing: (i) At all reasonable times and as often as City may request, TCAH shall permit authorized representatives designated by City to have access to the Property and to the records relating to the operations of the Property; to make copies of or excerpts from such records; and to discuss the affairs, finances and accounts of TCAH relating to the Property as shall be relevant to the performance or observance of the terms, covenants and conditions of this Agreement. (ii) TCAH will keep the Property adequately insured at all times by financially sound and reputable insurers, against fire, flood, extended casualty and against such other risks as are customarily insured against by companies in a similar business, as a prudent owner and operator of the properties and business of TCAH would maintain. (iii) TCAH shall obtain promptly and keep in full force and effect all licenses, permits, and authorizations necessary to its business. (iv) TCAH will not create, incur, or suffer to exist any security interest, mortgage, pledge, lien, claim, charge, or encumbrance, in, of or on the Property. (v) TCAH shall not sell, transfer or otherwise dispose of the Property.

Use Restrictions; Monitoring and Reporting. a. City and TCAH intend that the Property be forever held and operated solely and exclusively as affordable housing. Accordingly, TCAH hereby acknowledges and agrees that prior to recording the Deed, City shall cause to be recorded against the Property a Restrictive Covenant in the form of Exhibit C hereto, requiring that the Property be held and used only for affordable housing unless City and TCAH otherwise agree in writing. b. While TCAH continues to own the Property, staff from City’s Human Services Department (or the designated successor(s) thereof) shall have the right to monitor all leases and rentals for compliance with income eligibility and programmatic requirements. c. b. While TCAH continues to own the Property, it shall: (i) comply with all laws, rules and regulations applicable to the Property and to the operation of low income housing, including without limitation any requirements imposed by the source of any funding for construction of the improvements Improvements on the Property, to the extent the same remain applicable; (ii) maintain all records relating to operation of the Property as may be required by any governmental body that has jurisdiction over the Property or that provided funding for the Improvements on the Property; (iii) comply with the requirements and standards of Office of Management and Budget (“OMB”) Circular No. A-122 (revised), “Cost Principles for Nonprofit Organizations, and establish and/or maintain accounting systems to assure that it is audited and that those audits meet the requirements for Circular A-110 “Uniform Requirements for Grants to Universities, Hospitals, and other Nonprofit Organizations” and if applicable OMB Circular No. A-133 (revised) “Audits of States, Local Governments, and Nonprofit Organizations”; (iv) maintain records of all ethnic and racial statistics of persons and families benefited in the performance of its services on the Property, including, but not limited to, the number of low and moderate income persons (51%-80% of median income), the number of very low income persons (31%-50% of median income) and the number of extremely low income persons (0-30% of median income) and households assisted in accordance with federal income limits, the number of elderly (over 62 years of age) and individuals with disabilities, family size, and number of female heads of households; (v) provide City with written reports of its activities at such intervals, but not more frequently than quarterly, as City may request; (vi) provide City and the United States Government and/or their representatives with access to the Property and financial records pertaining to the Property and its operations. d. c. TCAH shall cause the revenue generated by its operation of the Property to be allocated to establishing appropriate reserves for maintenance and repair of the improvements on the Property, and to creating funding a Housing Trust Fund to be used for future acquisitions of additional affordable housing units within the City of Tempe, all in such amounts as may be approved by the Board of Directors of TCAH. e. d. TCAH hereby covenants and agrees as to the matters set forth below unless City otherwise agrees in writing: (i) At all reasonable times and as often as City may request, TCAH shall permit authorized representatives designated by City to have access to the Property and to the records relating to the operations of the Property; to make copies of or excerpts from such records; and to discuss the affairs, finances and accounts of TCAH relating to the Property as shall be relevant to the performance or observance of the terms, covenants and conditions of this Agreement. (ii) TCAH will keep the Property adequately insured at all times by financially sound and reputable insurers, against fire, flood, extended casualty and against such other risks as are customarily insured against by companies in a similar business, as a prudent owner and operator of the properties and business of TCAH would maintain. (iii) TCAH shall obtain promptly and keep in full force and effect all licenses, permits, and authorizations necessary to its business. (iv) TCAH will not create, incur, or suffer to exist any security interest, mortgage, pledge, lien, claim, charge, or encumbrance, in, of or on the Property. (v) TCAH shall not sell, transfer or otherwise dispose of the Property.