Common use of Operating Deficit Clause in Contracts

Operating Deficit. The Provider is solely responsible for covering any Manageable Cost increases in any Fiscal Year. In the event that there is an operating deficit as a result of unanticipated changes in rent revenue or increases in Non-Manageable Costs that exceeds the Operating Reserve, BC Housing may cover the balance through: a. a mid-year budget adjustment that increases the subsidy; b. an extraordinary expense payment; or c. at annual financial review, if such an unanticipated expense results in an operating deficit for the Fiscal Year, BC Housing may retroactively adjust the Operating Subsidy required.

Appears in 3 contracts

Sources: Operating Agreement, Community Housing Fund Operating Agreement, Operating Agreement