Laserfiche WebLink
12. Property Management of HOME-Assisted Unit. Developer shall maintain the Development in <br /> compliance with all applicable housing quality standards and local code requirements for the <br /> duration of this Regulatory Agreement. <br /> 13. Occupancy Procedures. Developer shall adopt written tenant selection policies and criteria for <br /> the HOME- Assisted Unit that: <br /> a. Is consistent with the purpose of providing housing for Very Low-Income <br /> Households; <br /> b. Is reasonably related to program eligibility and the applicants' ability to perform the <br /> obligations of the lease; and <br /> c. Provides for: <br /> (I) The selection of tenants from a written waiting list in the chronological order <br /> of their application, insofar as is practicable; and <br /> (2) The prompt written notification to any rejected applicant of the grounds for <br /> any rejection. <br /> 14. Security Deposits. Any security deposits collected by Developer or Developer's agent shall be <br /> kept separate and apart from all other funds of the Development in a trust account with depository <br /> insured by the Federal Deposit Insurance Corporation,or other comparable federal deposit insurance <br /> program, and shall be held and disbursed in accordance with California law. The balance of such <br /> amount shall at all times equal or exceed the aggregate of all outstanding obligations under said <br /> account, plus accrued interest thereon. <br /> 15. Restrictions on Sale. Encumbrance, and Other Acts. <br /> a. Except for leases to tenants in the ordinary course of business, Developer shall not <br /> make,or allow,any sale,encumbrance,hypothecation, assignment,pledge,conveyance,or transfer <br /> in any form of the Development or of any of its interest therein, except as permitted pursuant to the <br /> Loan Agreement, or with the prior written approval of the City. <br /> b. The City may approve a sale, transfer or conveyance provided that all of the <br /> following conditions are met: <br /> (1) Developer is in compliance with this Regulatory Agreement or the sale, <br /> transfer or conveyance will result in the cure of any existing violations of the Regulatory Agreement; <br /> (2) The successor-in-interest to Developer agrees to assume all obligations of <br /> Developer pursuant to this Regulatory Agreement and the HOME Program; <br /> (3) The successor-in-interest demonstrates to the City's satisfaction that it can <br /> own and operate the Development in full compliance with all HOME Program requirements; and <br /> 2220342.1 Page 5 <br />