Common use of Project Cost Overruns Clause in Contracts

Project Cost Overruns. In the event that the cost of construction, development, and Rehabilitation of the Project exceeds the total project cost set forth in the Development Budget, General Partner shall pay to the Partnership the amount of such excess. Such payment or payments shall be made at such times as may be necessary to assure that the costs of construction, development, and Rehabilitation of the Project are timely paid. Except as provided in this Section 5.7, such payments by General Partner shall not constitute loans nor contributions of capital to the Partnership by General Partner, and General Partner will not be entitled to receive any repayment or other compensation or consideration with respect to such amounts. Notwithstanding the foregoing, to the extent that Investor Limited Partner's Capital Contributions are increased under Section 5.4 as a result of the cost of construction, development, and Rehabilitation of the Project exceeding the total project cost set forth in the Development Budget, then the Partnership will reimburse General Partner for amounts paid by General Partner under this Section 5.7, or will reimburse a Development Guarantor for amounts paid by such Development Guarantor under the Development Guaranty Agreement, upon receipt by the Partnership of Investor Limited Partner's increased Capital Contribution. If the increase in Investor Limited Partner's Capital Contribution is less than the aggregate of the amounts paid by General Partner under this Section 5.7 and amounts paid by the Development Guarantors under the Development Guaranty Agreement, then the proceeds of Investor Limited Partner's increased Capital Contribution will be allocated between General Partner and the Development Guarantors as determined by General Partner; provided, however, the Limited Partners shall have no duty to determine the reasonableness of such allocation or oversee the application of such funds by the General Partner to the General Partner and/or the Development Guarantors.

Project Cost Overruns. In the event that the cost of construction, development, and Rehabilitation of the Project exceeds the total project cost set forth in the Development Budget, General Partner shall pay to the Partnership the amount of such excess. Such payment or payments shall be made at such times as may be necessary to assure that the costs of construction, development, and Rehabilitation of the Project are timely paid. Except as provided in this Section 5.7, such payments by General Partner shall not constitute loans nor contributions of capital to the Partnership by General Partner, and General Partner will not be entitled to receive any repayment or other compensation or consideration with respect to such amounts. Notwithstanding the foregoing, to the extent that Investor Limited Partner's Capital Contributions are increased under Section 5.4 as a result of the cost of construction, development, and Rehabilitation of the Project exceeding the total project cost set forth in the Development Budget, then the Partnership will reimburse General Partner for amounts paid by General Partner under this Section 5.7, or will reimburse a Development Guarantor for amounts paid by such Development Guarantor under the Development Guaranty Agreement, upon receipt by the Partnership of Investor Limited Partner's increased Capital Contribution, but such reimbursement shall not exceed the excess of (i) amount of such increase in Investor Limited Partner's Capital Contribution over (ii) the sum of $150,000.00. If the increase in Investor Limited Partner's Capital Contribution is less than the aggregate of the amounts paid by General Partner under this Section 5.7 and amounts paid by the Development Guarantors under the Development Guaranty Agreement, then the proceeds of Investor Limited Partner's increased Capital Contribution in excess of $150,000.00 will be allocated between General Partner and the Development Guarantors as determined by General Partner; provided, however, the Limited Partners shall have no duty to determine the reasonableness of such allocation or oversee the application of such funds by the General Partner to the General Partner and/or the Development Guarantors.