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(yuarterly unless more frequent reporting is required by HUD
or the Authority); (c) to submit to HUD and the Authority
for approval any changes from its appr~ved Fina1 Proposal
which would materially reduce or alter its obligations or
any changes which would alter the design or materially
reduce the quality or amenities of the Project; (d) to
complete said work no later than the end of the period
stated in the HAP Agreement, or if the Project is to be
completed in stages, no later than the end of the period
stated in the HAP Agreement for the completion of each
stage; (e) to commence and diligently continue marketing the
Dwelling Units in accordance with.its approved Affirmative
Fair Housing Marketing Plan no later than 60 days prior to •
the estimated completion d~te of the Project and to notify
the Authority of the date of commencement of marketing; (f)
to notify HUD and the Authority of any Dwelling Units which
the Owner anticip3tes will be vacant on the effective da~e
of the HAP Contract not less than 30 days prior to the
estimated completion date of the Project; (g) to submit to
NUD and the Authority the evidence of completion of the
construction work described in the HAP Agreement; (h) to
lease the Dwelling Units to Eligible Tenants for use and
occupancy solely as private dwellings; (i) to use its best
efforts to keep all Dwelling Unfts occupied by Eligible
Tenants in order to avoid any reduction in HAP Payments; fj)
to use a form of lease for the Dwelling Units whicY- has been
approved by HUD or the Authority; (k) tp deposit all tenant
security deposit funds in a segregated bank account; (1) to
make a de~ermination of each Eligible Tenant's income at
least annually; (m) to maintain the Dwelling Units and
related facilities in good and tenantable condition so as to
provide decent, safe and sanitary housing; (n) to submit
monthly requests to HUD and/or the'Authority for HAP Payments
in accordance with the HAP Contract; (o) to promptly apply
to HUD and the Authority for "Special Additional Adjustments"
in "Contract Rents" under the HAP Contract to the extent
necessary to cover increases in the actual and necessary
expenses of owning and maintaining the Dwelling Uni*s which
are not adequately compensated for by "Automatic Annual
Adjustments" under the HAP Contract; and (p) to allow all
renewable terms of the HAP Contract to go into effect automatically
as provided in the HAP Contract and to take no action which
would prevent such automatic renewals from going into ef£ect.
4. 'rhe Owner further covenants and agrees: (a) to
duly and.punctually perform and observe all of its other
covenants and obligations under Section 8 Contracts and all
applicable HUD regulations; (b) to enforce and secure the
performance and observance of all the Issuer's covenants and
obligations under the Section 8 Contracts; (c) to exercise
3>> Of 3t.S ~Jthnr r2~12~c 3nr,~ ~nr~r?rc i,~pr~Pr fiiZ~ SPCtlnn 8
Contracts so as to secure the optimum benefit therefrom; (d)
to promptly deliver to the Issuer copies of all notices
given pursuant to the Section 8 Contracts; and (e) to promptly
advise the Issuer of any defaults under the Section 8 Con-
tracts.
5. In the event of any default by the Owner in the
performance or observation of any of its covenants or obli-
gations under the Section 8 Contracts, the Issuer shall have
the right, but not the obligation to: (a) to declare such
default to be a default under the terms of the Mortgage ar_d
the Owner's Note; (b) to enter the Project at any time and
from time to time for the purpose of curing such default, in
which event the cost thereof, together with interest thereon
at the rate set forth in the Note plus 1/2 of 1$, but in no
event in excess of the maximum rate permitted by law, shall
be paid by the Owner to the Issuer on demand.
Q,,~ 351 P,~~ 354
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