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Property, or any part thereof or interest therein, (ii) any payment, prepayment or extinguishment of
<br />the Loan, the Note, or (iii) any reconveyance of the Deed of Trust.
<br />4.3 Reconveyance. Upon the termination of this Agreement, the Parties agree to
<br />execute and record appropriate instruments to release and discharge this Agreement; provided,
<br />however, the execution and recordation of such instruments shall not be necessary or a
<br />prerequisite to the termination of this Agreement upon the expiration of the term.
<br />5. Binding Upon Successors; Covenants to Run with the Land. Owner hereby subjects
<br />its interest in the Property and the Project to the covenants and restrictions set forth in this
<br />Agreement. The City and Owner hereby declare their express intent that the covenants and
<br />restrictions set forth herein shall be deemed covenants running with the land and shall be binding
<br />upon and inure to the benefit of the heirs, administrators, executors, successors in interest,
<br />transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or
<br />transfer of the Property, the Project or any part thereof or interest therein. Any successor -in -interest
<br />to Owner, including without limitation any purchaser, transferee or lessee of the Property or the
<br />Project (other than the tenants of the individual dwelling units within the Project) shall be subject
<br />to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and
<br />every contract, deed, ground lease or other instrument affecting or conveying the Property or the
<br />Project or any part thereof, shall conclusively be held to have been executed, delivered and accepted
<br />subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether
<br />such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease
<br />or other instrument. If any such contract, deed, ground lease or other instrument has been
<br />executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an
<br />instrument in recordable form signed by the parties to such contract, deed, ground lease or other
<br />instrument pursuant to which such parties acknowledge and accept this Agreement and agree to
<br />be bound hereby. Owner agrees for itself and for its successors that in the event that a court of
<br />competent jurisdiction determines that the covenants herein do not run with the land, such
<br />covenants shall be enforced as equitable servitudes against the Property and the Project in favor
<br />of City.
<br />6. Property Management; Repair and Maintenance; Marketing.
<br />6.1 Management Responsibilities. Owner shall be responsible for all management
<br />functions with respect to the Property and the Project, including without limitation the
<br />selection of tenants, certification and recertification of household income and eligibility,
<br />evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary
<br />repairs, replacement of capital items, and security. City shall have no responsibility for
<br />management or maintenance of the Property or the Project.
<br />6.2 Management Entity; Social Services Provider; Referral Agency. City shall
<br />have the right to review and approve the qualifications of (i) the management entity, (ii) the
<br />social services provider, and (iii) the agency that will refer Eligible Households for prospective
<br />occupancy of the Project, that Owner proposes to engage, and shall have the right to review and
<br />approve any agreement executed between Owner and such entities, which approval shall not be
<br />unreasonably withheld. The contracting of management services to a management entity shall
<br />not relieve Owner of its primary responsibility for proper performance of management duties.
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<br />OAK #4834-1210-2746 v4
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