Draft_October 2025_West Orange_HEFSP_with Appendices

‘rhe Owner shall not approve or allow to occur any material change in the scope of plans and specifications for the Project without the express approval of the Agency. Construction or rehabilitation shall at all times be subject t the discretionary inspection, discretionary review. regulation and approval of the Agency and its duly authorized representatives. Any such inspection, regulation. review or approval of the Agency shall be solely for its benefit for the purpose of assuring that the programs and goals of the Project are being fulfilled. The Owner shall not knowingly do any act which would cause the release, in whole or in part, of the surety bond or bonds issued in connection with the Architect’s Contract or Construction Contract, as applicable, including, without limitation, deviation from the payment schedule, waiver of any material requirements imposed on the architect or any contractor or subcontractor under the Architect's Contract or Construction Contract. as applicable, or consent to any major change in the in the scope of plans and specitications or scope of the work, unless seh act would not cause any release because the surety has consented thereto. ea Section 9, Funding snd Conditions Precedent to Advance. A. Funding of Construction or Rehabilitation: > Upon and subject to the terms and conditigfs of this Agreement, the Mortgage and Mortgage Note, the Agency agrees to advance and disbutse the principal sum of $239,922 as follows: The balance of the Principal Sum of ‘$23 39,922 remaining after disbursement of acquisition costs shall be made only after the Agency has received and approved, subject to its sole diseretion, all items required for closing on the Agency Document Checklist for Construction and Permanent Financing. B. Conditions Precedent to‘Advanse: The Agency's obligations to make the other disbursement under the Mortgage shail be subject to the satisfaction‘of the following conditions precedent, any of which may be waived in whole or part by the Agency. 1. Each ofthe owner’ $s covenants, agrcements, representations and warranties contained in this Agrecment shall continue to be true and shai] not be breached. 2, If applicable, the full amount of the previous advance shall have been expended for Land acquisition, costs and discharge of any related lien. 3. All work performed and material furnished for the Project

pplicable, the full amount of the previous advance shall have been expended for Land acquisition, costs and discharge of any related lien. 3. All work performed and material furnished for the Project shall bc in accordance with the plans and specifications for the Project and all work shall have been properly performed to the satisfaction of the Agency. 4. No event shall have occurred and no conditions shall exist that would prevent the advance ftom becoming a valid second mortgage lien on the Project and the Land or secured by a 10