Agmt 2006 Allied Housing Program etc

Home

(ii) No Conflict. Agency's execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which Agency is a party or by which it is bound. (iii) No Litigation or Other Proceeding. No litigation or other proceeding (whether administrative or otherwise) is outstanding or has been threatened which would prevent, hinder or delay the ability of Agency to perform its obligations under this Agreement. (iv) No Bankruptcy. Agency is not the subject of a bankruptcy or insolvency proceeding. 2.3 Effective Date. The obligations of Owner and Agency hereunder shall be effective as ofthe Effective Datp. ARTICLE III OPERATION OF THE PROJECT 3.1 The Property. Owner represents and warrants that as of the Effective Date: (i) Owner possesses or has the contractual right to acquire fee simple title to the Property, and (ii) to the best knowledge of Owner after reasonable inquiry, the Property is subject to no covenant, condition, restriction or agreement that would prevent Owner's performance of its obligations under this Agreement, the Regulatory Agreement, the Agency Loan Documents or the City Loan Documents. If at any time the foregoing statements become untrue, the Agency shall have the right to terminate this Agreement upon written notice to Owner. In the event that Owner does not acquire fee simple title to the Property by [June 30, 2006], this Agreement shall terminate and be of no further force or effect. 3.2 Operation ofProiect. Owner shall operate the Project on the Property in accordance with the terms and conditions of this Agreement, the Regulatory Agreement, the Agency Loan Documents and the City Loan Documents and in compliance with the terms and conditions of all approvals, entitlements and permits that the City or any other govemmt:ntal body or agency with jurisdiction over the Project or the Property has granted or issued as of the date hereof or may hereafter grant or issue in connection with operation of the Project. The Project consists of the operation of an existing twenty-five unit multi-family housing and commercial development of which all twenty-five (25) residential units shall be affordable to very low- and extremely low-income households ("Restricted Units") pursuant to the terms and conditions set forth in Section 3.3 hereof and the Regulatory Agreement. 3.3 Affordable Units. Owner covenants and agrees for itself, its successors and assigns that for the term of the Regulatory Agreement, no fewer than twenty-five (25) ofthe Project's residential units will be made available to households of very low- and extremely low- income in accordance with the terms hereof and the Regulatory Agreement, subject to the Four- year Transition Period as defined, and more particularly described, in the Regulatory Agreement. 818642.2 6