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Loan Agreement
<br />San Leandro and Citizens' Housing Corporation
<br />Page 5 of 5
<br />Developer covenants as follows:
<br />SECTION 4.01 EXISTENCE
<br />Developer will preserve and maintain its existence and all of its rights, privileges and franchises; conduct its
<br />business in an orderly, efficient, and regular manner; and comply with all applicable laws, rules, regulations
<br />and orders of a governmental authority.
<br />SECTION 4.02 INSURANCE
<br />Developer shall maintain, at all times during the term of this contract, the insurance and bonding
<br />documentation described in Exhibit C to this contract, and shall comply with al( other requirements set forth
<br />in that Exhibit.
<br />SECTION 4.03 RECORDS
<br />Developer shall maintain on a current basis complete records, including books of original entry, source
<br />documents supporting accounting transactions, eligibility and service records as may be applicable, a
<br />general ledger, personnel and payroll records, canceled checks, and related documents and records to
<br />assure proper accounting of funds and performance of this contract in accordance with instructions
<br />provided and to be provided by City. Developer shall comply with all such instructions. Developer shall
<br />maintain project-specific records demonstrating compliance with the HOME regulations at 24 CFR Part 92,
<br />Subpart F, concerning property standards, energy efficiency, tenant protection, qualification as affordable
<br />housing, and other project requirements. These records shall be made available for inspection by City
<br />upon City's request. As required by HOME regulations, all project records are to be retained by Contract
<br />for at least three (3) years beyond the term of affordability for the units acquired, rehabilitated or
<br />constructed under this contract. Because the term of affordability under this contract is fifty-five (55) years,
<br />Developer shall retain records for a minimum of fifty-eight (58) years. Developer will cooperate with City in
<br />the preparation of, and wilt furnish any and all information required for reports to be prepared by City as
<br />may be required by the rules, regulations, or requirements of City or of any other govemmental entity.
<br />Developer will also permit access to all books, accounts, or records of any kind to City or to any other
<br />governmental entity for purposes of audit or investigation, in order to ascertain compliance with the
<br />provisions of this Contract.
<br />SECTION 4.04 EQUAL OPPORTUNITY
<br />Developer shall abide by the Federal requirements specified in the HOME regulations at 24 CFR, Part 92,
<br />Subpart H, governing equal opportunity, fair housing, affirmative marketing, relocation, labor standards,
<br />environmental review, lead-based paint, and other federal requirements.
<br />SECTION 4.05 HOLD HARMLESS
<br />Developer agrees to indemnify and hold harmless the City and all its officers, agents, volunteers, and
<br />employees, for any and all liability caused by the negligence or wrongful act of Developer arising out of the
<br />performance of this agreement, and to pay all claims, damages, judgments, legal casts and attorney's fees
<br />related thereto.
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