GROUND LEASE - RIDGE VIEW COMMONS II

paid when due and remains unpaid thirty (30) days following the date that City provides written notice of the delinquency. The Affordable Housing Monitoring Fee will increase annually by three percent (3%) over the prior year. 4.4 Annual Report; Estimate of Surplus Cash; Annual Budget. 4.4.1 Annual Report: Estimate of Surplus Cash. By not later than April 30 of each year during the Term, Owner shall submit an annual report ("Annual Report") to the City in form satisfactory to City, together with a certification that the Project is in compliance with the affordability and occupancy requirements of this Agreement. The Annual Report shall, at a minimum, include the following information for each Restricted Unit: (i) unit number; (ii) number of bedrooms; (iii) current rent, utility, and other charges; (iv) the affordability category and affordability restrictions that apply to the unit; (v) dates of any vacancies during the previous year; (vi) number of people residing in the unit; (vii) total household Gross Income; (viii) documentation of source of household income; (ix) lease commencement and termination dates; and (x) the information required by Section 4.2. Owner shall include with the Annual Report, an income recertification for each household, documentation verifying tenant eligibility, and such additional information as City may reasonably request from time to time in order to demonstrate compliance with this Agreement. The Annual Report shall conform to the format requested by City; provided however, during such time that the Project is subject to a regulatory agreement restricting occupancy and/or rents pursuant to requirements imposed in connection with the use of State or federal low-income housing tax credits, Owner may satisfy the requirements of this Section that pertain to tenant income certification and rents by providing City with a copy of compliance reports required in connection with such financing. In addition to the information described above, the Annual Report shall include the following: (i) A Project income and expense statement for the reporting period; (ii) A summary of maintenance and other issues anticipated to affect the current budget needs of the Project and the amount expected to be needed for major repairs or other needs during the following fiscal year; (iii) A report on the Project operating and replacement reserve accounts summarizing draws of such funds and remaining balances; (iv) Information on the status of the waiting list for units, including the number of households on the list and the number of City of Pleasanton residents and persons employed in the City on the list; (v) If rents for any Restricted Units have been increased pursuant to Section 3_3, documentation that the increase in rents is required for Financial Feasibility, and documentation regarding Owner's efforts to secure additional sources of rent or operating subsidy for the Project; 18 4879-3324-5885v3