25F - AGMT - 605-611 EAST WASHINGTON ST LOAN

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1004. Entry and Inspection. At all times prior to completion of the construction, upon reasonable notice, Agency/City and their agents shall have (a) the right of free access to the Property and all sites away from the Property where materials for the construction are stored, (b) the right to inspect all labor performed and materials furnished for the construction, and (c) the right to inspect and copy all documents pertaining to the construction. 1005. Construction Information. From time to time during the course of the construction, within ten (10) Business Days following Agency or City's written demand therefore, Developer shall furnish requested reports of Project Costs, progress schedules and contractors' costs breakdowns for the construction, itemized as to trade description and item, showing the name of the contractor(s) and/or subcontractor(s), and including such indirect costs as real estate taxes, legal and accounting fees, insurance, architects' and engineers' fees, loan fees, interest during construction and contractors' overhead. 1006. Protection Against Liens. Developer shall diligently file a valid Notice of Completion upon completion of the construction, diligently file a notice of cessation in the event of a cessation of labor on the construction for a period of thirty (30) days or more, and take all actions reasonably required to prevent the assertion of claims of lien against the Property. In the event that any claim of lien is asserted against the property or any stop notice or claim is asserted against the Agency or the City by any person furnishing labor or materials to the Property, Developer shall immediately give written notice of the same to Agency/City and shall, promptly and in any event within ten (10) Business Days after written demand therefor, (a) pay and discharge the same, (b) effect the release thereof by delivering to Agency/City a surety bond complying with the requirement of applicable laws for such release, or (c) take such other action as Agency/City may require to release Agency/City from any obligation or liability with respect to such stop notice or claim. 1100. FEDERAL (HOME PROGRAM) AND REDEVELOPMENT COVENANTS 1101. CHDO. Orange Housing Development Corporation, the sole member of the managing general partner of Developer, represents and warrants that it qualifies and is in good standing as a Community Housing Development Organization under the HOME Program. Developer hereby covenants and agrees to maintain such status throughout the term of this Agreement, and to provide the Agency and City with written documentation necessary to demonstrate maintenance of said status on an annual basis. In the event Orange Housing Development Corporation transfers its general partnership interest in Developer to another entity (with the consent of the Executive Director or as otherwise permitted by this Agreement), Developer hereby agrees that such successor entity shall qualify and be in good standing as a Community Housing Development Organization under the HOME Program and shall satisfy the requirements and meet the qualifications of Orange Housing Development Corporation, as described in Section 901.1. 1102. Qualification as Affordable Housing. As more particularly provided in the Affordability Restrictions on Transfer of Property, Developer shall use, manage and operate the Property in accordance with the requirements of 24 CFR 92.252 and California Health and Safety Code Section 50053 so as to qualify the housing on the Property as Affordable Housing with affordable rents. 33 25F-39