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leases or rents has been granted, except for any Permitted Encumbrances. To the best of
<br />Trustor's knowledge and belief, no tenant or tenants occupying, individually or in the aggregate,
<br />more than five percent (5%) of the net rentable area of the Improvements are in default under
<br />their leases or are the subject of any bankruptcy, insolvency or similar proceeding.
<br />2.22 Affordability Covenant.
<br />The Affordability Restrictions on Transfer of Property ("Affordability Restrictions"), the
<br />same date hereof, and executed in connection with the Loan Agreement, is valid and in full force
<br />and effect. Grantor agrees and hereby acknowledges that the Affordability Restrictions shall be
<br />recorded as an encumbrance against the Security, inclusive of the leasehold interest established
<br />by the Ground Lease and the fee simple interest owned by Obligor.
<br />Section 3. TAXES AND INSURANCE; ADVANCES
<br />3.1. Taxes, Other Governmental Charges and Utility Charges.
<br />(a) Trustor shall pay, prior to delinquency, all real property taxes and assessments,
<br />general and special, and all other charges of any kind, including without limitation non-
<br />governmental levies or assessments such as maintenance charges, levies or other charges
<br />resulting from covenants, conditions and restrictions affecting the Security, which are assessed or
<br />imposed upon the Security or upon Trustor as owner or operator of the Security, or become due
<br />and payable, and which create or may create a lien upon the Security, or any part thereof, or
<br />upon any personal property, equipment or other facility used in the operation or maintenance
<br />thereof (all the above collectively hereinafter referred to as "Impositions"); provided, however,
<br />that if, by law, any Imposition is payable, or may at the option of the taxpayer be paid, in
<br />installments, Trustor may pay the same in installments (together with any interest charged) as the
<br />same become due and before any fine, penalty or cost may be added thereto for the nonpayment
<br />of any such installment. Notwithstanding the foregoing, Trustor shall have the right to diligently
<br />contest, in good faith and by appropriate proceedings, the validity of any Imposition, so long as
<br />Trustor demonstrates to Beneficiary that Trustor is maintaining sufficient reserves for the
<br />payment of all contested liabilities and so long as the security and value of Beneficiary's interest
<br />under this Deed of Trust are not impaired as a result of such contest.
<br />(b) If at any time after the date hereof there shall be assessed or imposed (1) a tax or
<br />assessment on the Security in lieu of or in addition to the Impositions payable by Trustor
<br />pursuant to this Section 3.1 hereof, or (2) a license fee, tax or assessment imposed on Beneficiary
<br />and measured by or based in whole or in part upon the amount of the outstanding Obligations
<br />secured hereby, then all such taxes, assessments or fees shall be deemed to be included within
<br />the term "Impositions" as defined in this Section and Trustor shall pay and discharge the same as
<br />herein provided with respect to the payment of Impositions. If Trustor fails to pay such
<br />Impositions prior to delinquency or if Trustor is prohibited by law from paying such Impositions,
<br />Beneficiary may at its option declare all Obligations secured hereby, together with all accrued
<br />interest thereon, immediately due and payable. Anything to the contrary herein notwithstanding,
<br />Trustor shall have no obligation to pay any franchise, estate, inheritance, income, excess profits
<br />or similar tax levied on Beneficiary or on the Obligations secured hereby.
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<br />WISEPIace Permanent Supportive Housing
<br />City HOME -ARP Deed of Trust
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