Agenda Packet_2023-03-07 - Laserfiche WebLink

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EXHIBIT 3 ARP Operating Expense Deficit which occurs during the HOME -ARP Compliance Period; provided, however, the Developer shall have no right to expend funds from the HOME -ARP Subsidy Reserve while a Developer Event of Default is continuing. (c) If at any time during the HOME -ARP Subsidy Reserve Compliance Period, the Developer experiences a cash flow shortfall resulting in a HOME -ARP Operating Expense Deficit which the Developer believes qualifies for payment out of the HOME -ARP Subsidy Reserve, Developer shall submit a written request to the City for consent to a disbursement from the HOME -ARP Subsidy Reserve including the specific expenses for which the disbursement is requested. The City shall approve or disapprove such request within ten (10) business days of receipt of the written request; such approval shall not be unreasonably withheld. (d) In no event shall any of the HOME -ARP Subsidy Reserve funds be used to pay for any partnership fees or asset management fees of the Partnership. (e) The HOME -ARP Subsidy Reserve is intended to assure affordability of the HOME -ARP Units during the HOME -ARP Subsidy Reserve Compliance Period. If the HOME -ARP Units continue to operate in accordance with the HOME -ARP requirements, per enforceable restrictions imposed by the City, after the HOME -ARP Subsidy Reserve Compliance Period, unexpended funds in the HOME -ARP Subsidy Reserve at the end of the HOME -ARP Subsidy Reserve Compliance Period may be retained in the HOME -ARP Subsidy Reserve and utilized to cover HOME -ARP Unit Operating Expense Deficits associated with HOME -ARP Units during the extended HOME -ARP Subsidy Reserve Compliance Period. (f) Unexpended funds in the HOME -ARP Subsidy Reserve at the time the HOME -ARP Restrictions are no longer enforced must be returned to the City and deposited in the City's HOME account and recorded as HOME Program income. (g) Per the HOME -ARP Regulations, no less than annually, the City will review the HOME -ARP Subsidy Reserve account to determine that the account is appropriately sized based on the projected operating deficits of the HOME -ARP Units restricted to occupancy for HOME -ARP Qualifying Populations. (h) If the Developer re -syndicates the tax credit financing any time during the HOME -ARP Compliance Period, the City, at the City's sole and absolute discretion, shall require the Developer to either: (i) allow the HOME -ARP Subsidy Reserve to remain with the Property; or (ii) repay any amounts remaining in the HOME - ARP Subsidy Reserve as of the date of the re -syndication to the City. (i) Net operating income resulting from the HOME -ARP Subsidy Reserve is not permitted and is prohibited by this Agreement. Section 13. NONDISCRIMINATION COVENANTS 13.1. Obligation to Refrain from Discrimination. Developer covenants and agrees that: 37 WlSSEPlace Permanent Supportive Housing Itl an Agreement Rounc13 — 51 3/7/2023