Agenda Packets - 1997/10/06 - Laserfiche WebLink

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10/02/97 THU 17:08 FAX 16122889400 HOLMES&GALEY,LTD fj013 - 5. "Estimated Allowed Project Expenses," "Estimated MHOP Unit 1111 Expenses," and "Estimated MHOP Unit Income" shall mean the estimated amounts of such items for any period determined in accordance with subsection (B) hereof. B. Not later than 90 days prior to the anticipated Date of Full Availability ("DOFA") for occupancy of any unit of Silver Lake, and not later than 150 days before the first day of any subsequent MPHA Fiscal Year, the Partnership shall prepare and submit to the MPHA a proposed operating budget for the following MPHA Fiscal Year (or, in the case of the year in which DOFA occurs, the remainder thereof) ("Operating Budget"). The Operating Budget shall project Estimated Allowed Project Expenses, Estimated MHOP Unit Expenses, and Estimated MHOP Unit Income for the subject period,subject to the following conditions: 1. Estimated Allowed Project Expenses shall be as reasonably estimated by the Partnership. The MPHA may comment upon and propose changes to the Estimated Allowed Project Expenses as provided by the Partnership and set forth in the Operating Budget submitted to the MPHA, but the Partnership shall not be required to reduce any estimated expense below Silver Lake development-wide amount for such expenditure reasonably anticipated by the Partnership for the period. However, the portion of any line item within the Estimated Allowed Project Expenses included in • Estimated MHOP Unit Expenses shall be altered from the MHOP Percentage if the MPHA demonstrates satisfactorily that allocation of such item to the MHOP Units on the basis of the MHOP Percentage is inappropriate(e.g., marketing and advertising costs, if such relate solely or preponderantly to the non MHOP units). 2. Until the completion of initial rent-up of the MHOP Units, Estimated MHOP Unit Income shall be determined on the basis of assumed tenant rent collections for each unit size equal to the average tenant rent collections for all units of comparable size owned and administered by the MPHA in the most recent annual or semiannual period for which such statistics are available at the time of the Partnership's submission of the Operating Budget for such period to the MPHA For each subsequent MPHA Fiscal Year, Estimated MHOP Unit Income shall be determined on the basis of the aggregate tenant rents actually collected for all MHOP Units during the first six months of the preceding MPHA Fiscal Year. Notwithstanding the foregoing, with respect to any MPHA Fiscal Year, the MPHA may agree to project Estimated MHOP Unit Income at a level different from that which would otherwise be established pursuant to the preceding sentence, taking into account(a) the reasonably anticipated level of incomes of tenants anticipated to be admitted to the MHOP Units during such period, based on anticipated turnover and the admissions • policies, and (b) reasonably anticipated increases in income levels of D.MNNI25,011\DOCS\IN1TIAL.DOC 6 INITIAL.AGREEMENT MPHA/CITY OF MOUNDS VIEW • SILVER LAKE.DEVELOPMENT