Agenda Packets - 1997/10/06 - Laserfiche WebLink

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10/02/97 THU 17:08 FAX 16122889400 HOLHES&GALEY,LTD 8014 existing tenants based on tenant participation in employment training and other supportive services programs. C. During each MPHA Fiscal Year commencing with the first MPHA Fiscal Year after DOFA, and subject to any limitations arising from application of Section 20 (e) of the Act and operation of the Development Operating Subsidy Cap, the MPHA shall pay to the Partnership an amount equal to (1) Estimated MHOP Unit Expenses for such period, less (2) Estimated MHOP Unit Income for the period (the "Operating Subsidy Requirement"). The MPHA shall pay to the Partnership, on the first day of each month of an MPHA Fiscal Year, one-twelfth (1/12) of the Operating Subsidy Requirement for such MPHA Fiscal Year; provided, however, that the Partnership and the MPHA may agree, upon determination of the Operating Budget and Operating Subsidy Requirement for any MPHA Fiscal Year, to provide for unequal monthly payments for such year. VIII. RESERVE FUND. An operating reserve will be created by the Partnership from its funds. The reserve will equal three years' estimated operating subsidy for the MHOP Units, but will be allowed to grow through interest earnings and certain operating subsidy reimbursements, if any. Shortfalls, either because of the recalculation of three years' estimated operating subsidy or because of necessary withdrawal from the reserve may be made up by the MPHA, but it is not obligated to do so. 4110 IX. ADMINISTRATIVE COSTS. The MPHA and City shall each bear the costs associated with the obligations and responsibilities described herein or otherwise related to the construction and operation of the MHOP Units. X. TERMINATION AND/OR ASSIGNMENT A. In the event the City wishes to terminate this Agreement it may do so as follows: 1. Ninety (90) days' notice of its intention to terminate shall be served upon the MPHA or an agency of the City by the City in writing; 2. The City shall assume and undertake all of the obligations and responsibilities of the MPHA as set forth in all written agreements relating to Silver Lake between the MPHA, on the one hand, and the City, the Developer, the Partnership, the MHFA, HUD or any other contracting party,on the other; 3. The City or an agency of the City shall become the contracting party with HUD with respect to the annual contributions contract governing the construction and operation of Silver Lake; 4. HUD shall consent in writing to such termination; and • 5. The MPHA shall be released from all future liability arisingfrom and responsibility for the ongoing construction or operation of Silver Lake. D\MNN 125101 I\DCC SIINITIAI..DOC 7 INITIAL AGREEMENT MPHA/CITY OF MOUNDS VIEW SILVER LAKE DEVELOPMENT