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<br /> <br /> 3 <br /> "Project Operating Account" means a checking account maintained by Operator, <br />which shall be held in a bank or savings and loan institution acceptable to City as a segregated <br />account insured by the Federal Deposit Insurance Corporation or other comparable federal <br />insurance program. <br /> <br /> "Property" shall mean the real property described on the attached Exhibit A. <br /> <br /> "Regulatory Agreement" means the Declaration of Covenants which is required to be <br />executed by City and Operator and recorded in the official records of Alameda County pursuant <br />to the terms and conditions of the Homekey Agreement. <br /> <br /> "Resident" shall mean a Homekey qualifying resident who occupies and resides in an <br />Assisted Unit. <br /> <br /> "Shortfall" means the amount, if any, by which the Operating Costs for any Fiscal Year <br />during the Term exceed the Project Income obtained from the Assisted Units for such Fiscal <br />Year. <br /> <br /> "Subsidy Payment" means a payment made by City to Operator pursuant to the terms of <br />this Agreement, which shall be made in the manner and in the amount specified in Article 4 <br />below. <br /> <br /> <br /> <br /> <br />ARTICLE 2 <br />TERM <br /> <br /> The term of this Agreement (the "Term") shall commence on the Effective Date and <br />shall terminate on the fifth (5th) anniversary of the date of the City’s issuance of a Certificate of <br />Occupancy for the Project, unless earlier terminated in accordance with the terms herein. <br /> <br />ARTICLE 3 <br />PERFORMANCE OF GRANT OBLIGATIONS <br /> <br />3.1 Operation of Project. Commencing on the Initial Occupancy Date, Operator shall <br />operate, manage and maintain the Project in accordance with the Ground Lease, Regulatory <br />Agreement and Homekey Agreement. <br /> <br />3.2 Operating Reserve Account. Operator shall maintain an Operating Reserve Account at <br />all times during the Term. In addition, if the Subsidy Payment made to Operator for a Calendar <br />Year exceeds the certified Shortfall for such Calendar Year, as determined pursuant to the <br />reports delivered under Article 5, Operator shall deposit such excess amount in the Operating <br />Reserve Account. If the Shortfall for a Calendar Year exceeds the Subsidy Payment made to <br />Operator for such Calendar Year, Operator shall first use Operating Reserve Account funds, to <br />the extent available, to fund Operating Costs that comprise such excess Shortfall. <br /> <br />DocuSign Envelope ID: FD5B6EFC-4700-4210-9102-207694C552B7