Draft_October 2025_West Orange_HEFSP_with Appendices

8/3/17 4.04 Calculation of Annual Service Charges. The Annual Service Charge shall be equal to 6.28% of the Annual Gross Revenue. 4.05 Land Taxes. The Land shall be exempt from taxation as of the Annual Service Charge Start Date in accordance with the HMFA Law, provided however, that if such exemption of the Land is invalidated by a court of competent jurisdiction, then this Agreement shall remain in full force and effect and shall be reformed to provide that: (a) Conventional taxes are assessed against the Land; (b) the Entity shall be entitled to a credit against the Annual Service Charge for the amount, without interest, of the Land tax payments timely made in the last four (4) preceding quarterly installments; and (c) In any year that the Entity fails to make any Land tax payments if and when due and owing, such delinquency shall render the Entity ineligible for any Land tax payment credits against the Annual Service Charge for that year. No credit will be applied against the Annual Service Charge for partial payments of Land taxes. In addition, the Township shall have, among this remedy and other remedies, the right to proceed against the Property pursuant to the Tax Sale Law and/or to declare a Default. 4.06 Annual Service Charge Installments. Payment of the Annual Service Charge shall be paid to the Township on a quarterly basis on February 1, May 1, August 1, and November 1 after the Annual Service Charge Start Date, subject, nevertheless, to adjustment for over or underpayment within thirty (30) days after the close of each calendar year. In the event that the Entity fails to timely pay any installment, the amount past due shall bear the rate of interest permitted under applicable New Jersey law and then being assessed by the Township against other delinquent taxpayers in the case of unpaid taxes or tax liens on the land until paid. 4.07 Payments After Recordation of Agency Mortgage. In accordance with N.J.S.A. 55:14K-37, from the date of recording the Agency Mortgage on the Project to the date of Substantial Completion of the Project, the annual amount payable to the Township as taxes or as payments in lieu of taxes in respect of the Project site shall not be in excess of the amount of taxes on the Project site for the year preceding the recording of the Agency Mortgage. ARTICLE V ADDITIONAL PROJECT COVENANTS 5.01 Improvements to be Constructed.

all not be in excess of the amount of taxes on the Project site for the year preceding the recording of the Agency Mortgage. ARTICLE V ADDITIONAL PROJECT COVENANTS 5.01 Improvements to be Constructed. The Entity will construct the forty-four (44) Affordable Units and all related improvements. The Entity shall commence the Project in accordance with the schedule set forth within the Application and the Redevelopment Agreement. To the extent that the schedule set forth within the Application and the schedule within the Redevelopment Agreement shall conflict, and/or if the schedule set forth in the Redevelopment Agreement shall be adjusted in accordance with the terms thereof, the schedule established under the Redevelopment Agreement shall control. 6