RES 17969 - Laserfiche WebLink

1 2 4 EXCLUSIONS FROM ANNUAL OPERATING EXPENSES Annual Operating Expenses shall exclude the following- developer fees and interest on any deferred developer fees (except as permitted pursuant to Section 1 2.3), contributions to Project operating or replacement reserves, except as provided in Section 1 2 3, debt service payments on any loan which is not an Approved Senior Loan, including without limitation, unsecured loans or loans secured by deeds of trust which are subordinate to the Deed of Trust, depreciation, amortization, depletion and other non-cash expenses, expenses paid for with disbursements from any reserve account; distnbutions to partners, any amount paid to Borrower, any general partner of Borrower, or any entity controlled by the persons or entities in control of Borrower or any general partner of Borrower Notwithstanding the foregoing limitation regarding payments to Borrower and related parties, the following fees shall be included in Annual Operating Expenses, subject to applicable limitations set forth in Section 1 2.3 above, even if paid to Borrower, an affiliate of Borrower, or a partner of Borrower. fees paid to a property management agent, resident services agent, or social services agent, partnership management fees, asset management fees, and subject to Section 1 2 5, repayment of cash advances by Borrower or its partners to cover Project operating expense deficits or emergency cash needs of the Project Payments to Borrower, its partners or affiliates in excess of the limitations set forth in Section 1.2 3 shall not be counted toward Annual Operating Expenses for the purpose of calculating Surplus Cash 1 2.5 ADJUSTMENT TO OPERATING EXPENSES. Notwithstanding anything to the contrary set forth herein, for the purpose of calculating Surplus Cash, Annual Operating Expenses shall include (a) the repayment of operating deficit loans provided by Borrower's limited partner(s)provided however, interest payable on such loans may be included in Annual Operating Expenses only in an amount equivalent to the lesser of(i) interest accrued at the actual interest rate charged for the loan, or(ii) interest accrued at a rate equal to the Applicable Federal Rate, and (b) the amount of any tax credit adjustor that is required to be paid from Project cash flow. 1.3 EXCESS PROCEEDS Within ten (10) business days after Borrower's receipt of its limited partner(s)' capital contnbution following the issuance of the IRS Form 8609 for the Project, Borrower shall pay to the City as a reduction of the outstanding pnncipal balance of this Note, a one-time payment in the amount of City's Share of Excess Proceeds. "Excess Proceeds" shall mean the sum of all sources of financing received by Borrower for acquisition, construction and permanent financing of the Property and the Project, less the sum of actual uses as shown on the final cost certificate for the Project. The City shall be entitled to share Excess Proceeds with the County, based on the proportional share of financing that each such entity has provided for development of the Project, as more specifically set forth in Section 1 2 above Pnor to calculating Excess Proceeds, the Project operating reserve shall be funded in the amount of three (3) months' projected Project operating expenses 1 4 DUE ON SALE The entire unpaid pnncipal balance and all interest and other sums accrued hereunder shall be due and payable upon the Transfer(as defined in Section 8 1 of the Regulatory Agreement) absent City consent, of all or any part of the Project or the Property or any interest therein other than a Transfer permitted without City consent pursuant to the Regulatory Agreement or the Ground Lease. Without limiting the generality of the foregoing, this Note shall not be assumable without City's prior wntten consent, which consent may be granted or denied in City's sole discretion. OAK X4829-4624-9261 v5 5