Common use of Development Management Clause in Contracts

Development Management. (a) The Borrower shall provide for the management of the Development in a manner satisfactory to the Agency, shall employ a bonded and licensed management agent, develop a management plan, and use a management agreement acceptable to the Agency. A fidelity bond shall be maintained in an amount equal to one month's gross rent and shall insure the Borrower and the Agency against misapplication of Development funds. All management agreements shall include a copy of this Agreement, which shall be incorporated therein, and made a part of the contract. The management agreement shall provide that, subject to the rights of the First Lien Lender, it is subject to termination with or without cause by the Borrower or the Agency, and without penalty, upon not less than thirty (30) days prior written notice to the management agent. Any liability associated with the termination of the management contract shall be the sole obligation of the Borrower. Upon notice of termination, the Borrower agrees to make immediate alternative arrangements, satisfactory to the Agency, for the continued management of the Development. In the event that the Borrower shall fail to make such alternative arrangements for a substitute managing agent within a reasonable time (which in no event shall exceed sixty (60) days from the date of the sending of the termination notice), the Agency shall have the unilateral right to make such alternative arrangements. The amount of the management agent's compensation shall be subject to approval by the Agency, which shall not be unreasonably withheld. (b) The Borrower shall require that a Resident Selection/Affirmative Fair Housing Marketing Plan (“Plan”) be prepared and maintained in cooperation with the managing agent. This Plan shall be subject to the approval of the Agency, shall include information on affirmative marketing efforts and compliance with fair housing laws, and shall include preferences for occupancy given to households displaced by construction, repair, renovation or rehabilitation of a housing development, public action, or natural disaster. (c) In carrying out this Plan, the Borrower/management agent shall: (i) Lease no less than the percentage of total units of all sizes and types to Affordable Tenants as required by Section 4(a); (ii) Give preference to the applicants in the following order: (1) Persons displaced by: (A) Natural disaster; (B) ▇▇▇▇▇▇, renovation, rehabilitation of this Development; (C) Other public action; (D) Other causes, provided that such displacement shall be certified in writing by a government agency; and (2) All other applicants; (iii) Begin marketing of the Development at least ninety (90) days prior to the availability of the units for occupancy; (iv) Assure that all advertising (including letterheads, brochures and media advertising), shall include “Equal Housing Opportunity” and the “handicapped” logo. Further, if advertisements contain human models, a mix of minority and non-minority models are to be used to reflect the open housing philosophy. No preference for any economic status or lifestyle shall be depicted; (v) Where a significant number of persons in the community have limited fluency in the English language, provide publications, information, brochures and leases in the native language of such persons; “Significant number of persons” is deemed to be at least twenty-five percent (25%); (vi) Develop and maintain a policy and procedure for the selection and rejection of applicants; (vii) Assure that tenant selection is carried out without favoritism or partiality, and that no preference is given to any applicant other than as provided herein; and (viii) Where necessary, conduct such additional marketing as reasonably required to fulfill affirmative marketing goals and meet other goals of the Plan.

Development Management. (a) The Borrower shall provide for the management of the Development in a manner satisfactory to the Agency, shall employ a bonded and licensed management agent, develop a management plan, and use a management agreement acceptable to the Agency. A fidelity bond shall be maintained in an amount equal to one month's gross rent and shall insure the Borrower and the Agency against misapplication of Development funds. All management agreements shall include a copy of this Agreement, which shall be incorporated therein, and made a part of the contract. The management agreement shall provide that, subject to the rights of the First Lien Lender, it is subject to termination with or without cause by the Borrower or the Agency, and without penalty, upon not less than thirty (30) days prior written notice to the management agent. Any liability associated with the termination of the management contract shall be the sole obligation of the Borrower. Upon notice of termination, the Borrower agrees to make immediate alternative arrangements, satisfactory to the Agency, for the continued management of the Development. In the event that the Borrower shall fail to make such alternative arrangements for a substitute managing agent within a reasonable time (which in no event shall exceed sixty (60) days from the date of the sending of the termination notice), the Agency shall have the unilateral right to make such alternative arrangements. The amount of the management agent's compensation shall be subject to approval by the Agency, which shall not be unreasonably withheld. (b) The Borrower shall require that a Resident Selection/Affirmative Fair Housing Marketing Plan (“Plan”) be prepared and maintained in cooperation with the managing agent. This Plan shall be subject to the approval of the Agency, shall include information on affirmative marketing efforts and compliance with fair housing laws, and shall include preferences for occupancy given to households displaced by construction, repair, renovation or rehabilitation of a housing development, public action, or natural disaster. (c) In carrying out this Plan, the Borrower/management agent shall: (i) Lease no less than the percentage of total units of all sizes and types to Affordable Tenants as required by Section 4(a); (ii) Give preference to the applicants in the following order: (1) Persons displaced by: (A) Natural disaster; (B) ▇▇▇▇▇▇Repair, renovation, rehabilitation of this Development; (C) Other public action; (D) Other causes, provided that such displacement shall be certified in writing by a government agency; and (2) All other applicants; (iii) Begin marketing of the Development at least ninety (90) days prior to the availability of the units for occupancy; (iv) Assure that all advertising (including letterheads, brochures and media advertising), shall include “Equal Housing Opportunity” and the “handicapped” logo. Further, if advertisements contain human models, a mix of minority and non-minority models are to be used to reflect the open housing philosophy. No preference for any economic status or lifestyle shall be depicted; (v) Where a significant number of persons in the community have limited fluency in the English language, provide publications, information, brochures and leases in the native language of such persons; “Significant number of persons” is deemed to be at least twenty-five percent (25%); (vi) Develop and maintain a policy and procedure for the selection and rejection of applicants; (vii) Assure that tenant selection is carried out without favoritism or partiality, and that no preference is given to any applicant other than as provided herein; and (viii) Where necessary, conduct such additional marketing as reasonably required to fulfill affirmative marketing goals and meet other goals of the Plan.