West Orange Township_Fourth Round HEFSP_Final Draft

Section 15, . Advance Amortization Payments, The Owner shall not make any advance principal repayment except as allowed by the Program and Program Guidelines. Section 16. Compliance with the Program, the Act, Agency's Regulations and Any Federal or State Subsidy Source. The Owner covenants and agrees to comply with the Program. the Act and any regulations promulgated pursuant thereto, and with any amendments or supplements to the Program, the Act or regulations. Throughout the term of this Agrcement, the Owner further covenants and agrees to comply with any and all requirements imposed upon it as a condition of any federal or state grant, subsidy or loan. Section 17. Use of Project- Leasing. Except as otherwise expressly provided in Section 3 and 4 of this Agreement or as otherwise agreed to in writing by the Agency, and except for facilities approved by the Agency as normally appurtenant to residential projects for nan-transients (such as laundry facilities), the Project shall be used seicly (or as otherwise may be approved by the Agency) to provide affordable housing units for a special nceds population(s) under the Agency's Program Section 18. Consideration for Lease. The Owner covenants and agrees not to require as a condition of the occupancy or leasing of any dwelling unit in the Project and not ta accept or allow any cmployee or agent to accept any consideration other than the prepayment of the first month's rent, plus a sccurity deposit not in excess of one (1) month’s rent to guarantee the performance of the covenants of the rent agreement or lease. Section 19. Security Deposit The Owner covenants and agrees to deposit all moneys paid to the Owner by any resident, if any, as a security deposit for the payment of rent or other allowable charges under any use and occupancy agreement and/or lease in a separate interest bearing bank account held and maintained in accordance with applicable law. Section 20. Account for Project Revenues/Operating Account. The Owner covenants and agrecs to establish an account for Project Revenues specific io the Project. “Project Revenues” shall mean al] rents and other revenues of any type whatsoever received in respect of the Project or the Owner, except for Loan dishursements. Project Revenues shall be deposited in such account and all operating expenses should be paid from this account. Section 21, Reserve and

ct of the Project or the Owner, except for Loan dishursements. Project Revenues shall be deposited in such account and all operating expenses should be paid from this account. Section 21, Reserve and Escrow Payments. On the date of the execution of this Agreement, the Owner will deposit with the Agency the following amounts as shown on the closing budget for the Project (“Form 10°) which will serve as a reserve against late payments and be available to pay expenses when due or be available to assist with project expenses. These amounts will comprise the Special Needs Project Escrow: (a) an amount equal to twelve (12} months of the estimated annual insurance payments: and {b) an amount equal to twelve (12) months of the estimated annual tax payments; and (c} an amount(s) as stated on the Form 16 for a project escrow. 43