Draft_October 2025_West Orange_HEFSP_with Appendices

Section 15. . Adyance 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 ur State Subsidy Source. The Owner covenants and agrces 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 Agreement, 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 eapressly provided in Section 3 und 4 of this Agrcenient or as otherwise agrecd to in writing by the Agency, and except for facilities approved by the Agency as normally appurtenant to residential projects for nen-transients (such as laundry facilities), the Project shall be used solely (or as otherwise may be approved by the Agency} to provide aftordable housing units for a special needs population(s) under the Agency's Program. f ra Section 18. Consideration for Lease. The Ownercovenants and agrees not to require as a condition of the occupancy or leasing of any dwelling unit in the Project and uot to accept or allow any employee or agent to accept any consideration ether than the prepayment of the first month's rent, plus a security deposit not in ex! of one (1}-month's rent to guarantee the performance of the covenants of the rent agreement or tcasc. 4 Section 19. Security Deposit The Owner covenants and agrees to deposit all moneys paid to the Owner by any resident, ifany, as a. security deposit tor the payment of rent or other allowable charges under any use and occupancy agreement and/or Icase in a separate interest bearing bank account held and maintained in accordance with applicable Jaw. Section 20. Account for Project Revenues/Operating Account. The Owner covenants and agrees to establish an account-for Project Revenues specific to the Project. "Praject Revenucs” shall mean ai] rents and other revenues of any type whatsoever received in respect of the Project or the Owner, except for Loan.disbursements. Project Revenues shall be deposited in such account and all operating expenses should. be paid from this account. Section 21.

ed in respect of the Project or the Owner, except for Loan.disbursements. 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 wiil serve as 2 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 cquai 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 (0 for a project escrow. 13