Common use of Future Contributions Clause in Contracts

Future Contributions. A. The City and the Authority agree that either the City or the Authority will make additional contributions to the Oaks Project totaling $400,000 at the times and in the amounts set forth below, subject to annual appropriation therefor by the City Council or the Board, as applicable (collectively, the “Future Contributions”): Contribution Date Required Contribution Amount Predetermined Number of Market Rate Units if Appropriation is Not Made Predetermined Number of Restricted Units if Appropriation is Not Made Within 10 business days of Certificate of Occupancy (C.O.). C.O. expected October 15, 2026 $200,000 31 31 No later than 1 year from previous contribution, expected October 15, 2027 $150,000 15 47 No later than 1 year from previous contribution, expected October 15, 2028 $50,000 4 58 B. The Parties agree that the Purchase Contribution and the Future Contributions in the total aggregate amount of $800,000 (collectively, the “Required Contributions”) are provided by the Authority and the City in consideration of all 62-units in the Oaks Project being rented in accordance with the Restrictive Covenant. The Parties agree that the amounts of the Future Contributions set forth in Section 5.A. set a contribution floor. The City and the Authority have the option to contribute amounts in excess of the amounts set forth in Section 5. A. in any given year, and any contribution in excess of the amounts set forth above shall be credited towards the remaining payment amounts in inverse order starting with the final amount payable expected on October 15, 2028. Upon receipt of any excess payment, the Parties agree to work together in good faith to determine the applicable number of Restricted Units.