Resolution 8837 - Laserfiche WebLink

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5 MANAGEMENT AGREEMENT 5.4. It is agreed that payments of Development Operating Subsidy from the MPHA shall be made directly to the Agent. In the event that the MPHA does not provide the Agent with the Development Operating Subsidy Requirement or the Development Operating Subsidy Requirement is inadequate to pay the difference between Authority Unit Income and Authority Unit Expenses, all as defined in Article IV of the MPHA Regulatory Agreement, the Agent shall utilize funds in the Development Operating Subsidy Reserve as described in Section 5.6 of the MPHA Regulatory Agreement. In the event the Development Operating Subsidy Reserve reaches the levels described in Sections 6.3 and 6.4 of the MPHA Regulatory Agreement, the Agent may exercise the remedies provided therein. 5.5. Taxes. (a) The parties hereto acknowledge that property taxes shall be paid by the Owner according to law. The Agent shall obtain statements for ad valorem property taxes and assessments against the Development and transmit copies thereof to the Owner promptly upon receipt thereof by the Agent. (b) Pursuant to Minnesota Statutes, §469.040, the Authority Units are exempt from property taxation and instead the Owner will be obligated to forward payments in lieu of taxes equal to five percent (5%) of "shelter rents," as defined therein. It shall be the duty of MPHA to annually certify to the appropriate assessing officials the number of Authority Units in the Development and the obligation of the Agent to calculate and provide to the Owner the amount of such payments in such a manner as to permit the timely payment thereof. (c) Notwithstanding anything in the preceding paragraphs of this Section 5.5 to the contrary, the Owner or Agent shall have the right at any time during the term of this Agreement to contest the amount of or assessment pertaining to real estate taxes, assessments, or any other imposition levied or imposed by any governmental authority concerning the Development. Section 6. Confer with Owner and the MHFA. Agent agrees to keep itself informed on the policies of the MHFA as they relate to compliance with the Low Income Housing Tax Credit Program, and, notwithstanding the authority given to the Agent in this Agreement, to confer fully and freely with the Owner, the marketing agent, if any, and the MHFA in the performance of its duties hereunder. Section 7. Meetings with Owner and Marketing Agent. The Agent agrees to cause an officer of the Agent to attend meetings with the Owner and marketing agent, if any, at any time or times requested by the Owner, marketing agent, or the MPHA.