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incurred in connection with the acquisition of the Property, the rehabilitation of the Improvements, and the maintenance, management and operation of the Project, and none of such costs and expenses shall be the obligation of the City. 3.6 Financing Plan. As set forth in the attached Exhibit E , Borrower has provided City with a financing plan for the Project ( "Financing Plan ") which, among other items, describes: (i) the estimated costs of the Project, including acquisition costs and hard and soft rehabilitation costs, (ii) identification of all sources of acquisition, rehabilitation, and permanent financing, (iii) projected rehabilitation and absorption periods. By its execution of this Agreement, City hereby approves the Financing Plan. The Parties agree that the Financing Plan may be modified by mutual written agreement of the Parties. The Parties each agree that they will not unreasonably withhold consent to a modification of the Financing Plan, provided that Borrower demonstrates to the reasonable satisfaction of City that such changes are necessary due to changes in market conditions, development and operating costs, rehabilitation costs, interest rates or availability of mortgage financing. 3.7 Development Schedule. Borrower shall commence and complete rehabilitation of the Improvements, and shall satisfy all other obligations of Borrower under this Agreement within the time periods set forth herein, as such time periods may be extended upon the mutual written consent of the Parties. Borrower shall commence work on the rehabilitation of the Improvements within sixty (60) days following the Effective Date, and Borrower shall diligently prosecute to completion the rehabilitation of the Project within twelve (12) months following the Effective Date. Subject to force majeure, Borrower's failure to commence or complete rehabilitation of the Improvements in accordance with the time periods specified in this Section 3_7 foregoing shall be an Event of Borrower Default hereunder. 3.8 Inspections. For the purpose of ensuring compliance with this Agreement, Borrower shall permit representatives of the City to enter upon the Property to inspect the Improvements following forty -eight (48) hours prior written notice (except in the case of emergency in which case such notice as may be practical under the circumstances shall be provided). 3.9 City Disclaimer. Borrower acknowledges that the City is under no obligation, and City neither undertakes nor assumes any responsibility or duty to Borrower or to any third party, to in any manner review, supervise, or inspect the progress of work or the operation of the Project. Borrower and all third parties shall rely entirely upon its or their own supervision and inspection in determining the quality and suitability of the materials and work, the performance of architects, subcontractors, and material suppliers, and all other matters relating to the rehabilitation of the Improvements and operation of the Project. Any review or inspection undertaken by the City is solely for the purpose of determining whether Borrower is properly discharging its obligations under this Agreement, and shall not be relied upon by Borrower or any third party as a warranty or representation by the City as to the quality of the design or construction of the Improvements or otherwise. 3.10 Construction Plans. Borrower shall submit to City's Building Department detailed construction plans for the rehabilitation of the Improvements (the "Construction Plans "). As used herein "Construction Plans" means all construction documents upon which 1755895.2 7