RES 17969 - Laserfiche WebLink

dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements, proceeds from vending and laundry room machines, the proceeds of business interruption or similar insurance, the proceeds of casualty insurance not required to be paid to the holders of Approved Senior Loans (provided however, expenditure of such proceeds for repair or restoration of the Project shall be included within Annual Operating Expenses in the year of the expenditure), condemnation awards for a taking of part or all of the Property or the Improvements for a temporary penod, and the fair market value of any goods or services provided to Borrower in consideration for the leasing or other use of any part of the Project Gross Revenue shall include any release of funds from replacement and other reserve accounts to Borrower other than for costs associated with the Project Gross Revenue shall not include tenant security deposits, loan proceeds, capital contributions or similar advances 1 2 3 "Annual Operating Expenses" shall mean for each calendar year during term hereof, the following costs reasonably and actually incurred for the operation and maintenance of the Project to the extent that they are consistent with an annual independent audit performed by a certified public accountant using generally accepted accounting pnnciples: property taxes and assessments, debt service currently due and payable on a non-optional basis (excluding debt service due from residual receipts or surplus cash of the Project) on loans which have been approved in wnting by the City and which are secured by deeds of trust senior in pnonty to the Deed of Trust ("Approved Senior Loans"); property management fees and reimbursements in amounts in accordance with industry standards for similar residential projects and paid pursuant to a property management agreement approved by City, premiums for property damage and liability insurance, utility service costs not paid for directly or indirectly by tenants, maintenance and repair costs; fees for licenses and permits required for the operation of the Project; expenses for security services; advertising and marketing costs, payment of deductibles in connection with casualty insurance claims not paid from reserves; tenant services; the amount of uninsured losses actually replaced, repaired or restored and not paid from reserves; cash deposits into reserves for capital replacements in an amount equal to $450 per unit per year or such greater amount as reasonably required by the holder of an Approved Senior Loan or as required by a physical needs assessment prepared by a third-party selected or approved by City and prepared at Borrower's expense, cash deposits into operating reserves in an amount reasonably approved by the City or required by the holder of an Approved Senior Loan, but only if the accumulated operating reserve does not exceed three (3) months' projected Project operating expenses, any previously unpaid portion of the developer fee (without interest), provided that the aggregate amount of such fee does not exceed the maximum allowable for the Project pursuant to California Tax Credit Allocation Committee regulations, and other ordinary and reasonable operating expenses approved by City Commencing on the Project placed in service date, Annual Operating Expenses shall also include payment of any current and accrued partnership management fee payable to the general partner of Borrower and accruing in the maximum annual amount of Twenty-Five Thousand Dollars ($25,000), and an asset management fee payable to the investor limited partner of Borrower in the maximum annual amount of Seven Thousand Five Hundred Dollars ($7,500), each increasing annually by three percent (3%), provided that the asset management fee shall only be included in the calculation of Annual Operating Expenses dunng the first fifteen (15) years following the date upon which the Project is placed in service OAK#4829-4624-9261 v5 4