West Orange Fourth Round HEFSP_adopted 111025_Appendices

Additionally, the Owner will deposit an amount as agreed upon between the Borrower and the Agency for the Project as a reserve for repairs and replacement of items at the Project and initial project costs, excluding social service and/or operating costs. Additionally, the repair and replacement reserve will be funded quarterly by the Borrower with an amount equal to three (3} months repair and replacement reserve as shown on the Project's Form 10. This reserve will be separate from the Special Needs Project Escrow and will be known as the Repair and Replacement Reserve. All reserve and escrow payments required pursuant to this Section shall be held in accounts under the sole control of the Agency and shall be paid out for the benefit of the Project as needed on request of the Owner or on the Agency's own initiative. Any interest whii ay be earned on such reserves shall remain in the escrow account and shall be used for simil es unless the Owner payment of taxes, payments in lieu of taxes, insurance “or to properly fund painting, decorating, repair and replacement needs with respect to t, then the Agency may require an increase in the minimum required escrow amounts ngcessar’ assure proper funding. Section 22. Inspection of Premises. Th: er covenants and agrees to permit the Agency, its agents or representatives, to inspe et gre at any and all reasonable times with or without notice, pursuant to the provisions et id the Program. Section 23. Books and Recordye ue wher covenants and agrees to maintain adequate books and records of its transactiong{"in@iyding the social services provided to the Project's residents, with respect to the Project i wner’s standard form. Such books and records shall be available for inspection and au eA gency or its agents at any time during business hours, with notice, pursuant to the provigions e Act and the Program. The Owner further covenants and agrees to cause the financial affairs with respect to the Project to be audited by independent certified ish the Agency with its audit report of such accountants as may public accountants and ghall from time to time be re d by the Agency. The Owne Q.. to the Agency such other information and reports respecting the Project as ma € to time be required by the Agency. Section 24. Management Contract. The Owner may, and if the Agency so elects, shall contract for the services of a

mation and reports respecting the Project as ma € to time be required by the Agency. Section 24. Management Contract. The Owner may, and if the Agency so elects, shall contract for the services of a firm experienced in real estate management to act as the managing agent for the Project. The selection of any such managing agent, the scope of the agent's duties and the basis of the agent's compensation shal! be the subject of a consultation between the Agency and the Owner and any contract for the employment of any managing agent shall provide that such contract may be terminated by the Agency at any time by notice of such determination by the Agency given to the Owner and managing agent. Section 25. Prohibited Actions. Except with the express approval of the Agency, which approval shall not be unreasonably withheld, the Owner shall not with Project Revenues (as defined in Section 20 hereof), Loan disbursements or grant advances: 4