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<br />EXHIBIT 3
<br />required) to enter upon the Project and perform all acts and work necessary to protect,
<br />maintain and preserve the improvements and landscaped areas on the Project, in the amount
<br />of the expenditure arising from such acts and work of protection, maintenance, and
<br />preservation by City and/or reasonable costs of such cure, including a fifteen percent (15%)
<br />administrative charge, which amount shall be promptly paid by Developer to City upon
<br />demand.
<br />(c)Removal of Personal Property. During the Term of Agreement,
<br />Developer shall not cause or permit the removal from the Project of any items of
<br />Developer’s personal property (other than tools and equipment used in the operation of the
<br />Project and obsolete equipment) unless (i) no Event of Default remains uncured and (ii)
<br />Developer promptly substitutes and installs on the Project other items of equal or greater
<br />value or utility in the operation of the Project, all of which shall be free of liens and shall
<br />be subject to the liens of the City/HOME-ARP Loan Deed of Trust and the Financing
<br />Statement.
<br />7.6.Obligation to Refrain from Discrimination. Developer covenants and
<br />agrees for itself, its successors, its assigns and every successor in interest to the Property
<br />or any part thereof, that there shall be no discrimination against or segregation of any
<br />person or group of persons on account of race, color, creed, religion, sex, mental or physical
<br />disability, marital status, ancestry or national origin in the sale, lease, sublease, transfer,
<br />use, occupancy, tenure or enjoyment of the Property nor shall Developer itself or any
<br />person claiming under or through him establish or permit any such practice or practices of
<br />discrimination or segregation with reference to the selection, location, number, use or
<br />occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The
<br />foregoing covenants shall run with the land and shall remain in effect for the term of the
<br />Agreement.
<br />7.7.Maintaining Financial Stability. It is anticipated that during a portion of
<br />the Term of Agreement, the Project will be supported by a PBV Rental Subsidy for not less
<br />than twenty-five (25) of the Restricted Units, and the HOME-ARP Subsidy Reserve for the
<br />sixteen (16) HOME-ARP Units. These subsidies will not overlap on the same units. If,
<br />during the Term of Agreement and through no fault of Developer, (a) the HOME-ARP
<br />Subsidy Reserve is depleted, (b) there is a reduction, termination or nonrenewal of the PBV
<br />Rental Subsidy, or (c) the Project generates insufficient income to cover its operating costs,
<br />required deposits to replacement reserves, and debt service on approved financing as shown
<br />on the Operating Budget, and as is necessary to maintain the financial stability of the
<br />Project, with the exception of the HOME-ARP Units during the HOME-ARP Compliance
<br />Period, Developer may request approval of the City (a) to allow households with adjusted
<br />incomes that do not exceed sixty percent (60%) of AMI, adjusted for actual household size,
<br />to occupy the Restricted Units (i.e., a unit previously restricted to households with adjusted
<br />incomes that do not exceed 30% of AMI), and (b) to increase the rent on one or more of
<br />the Restricted Units, to rents that are affordable to households with an adjusted income that
<br />does not exceed sixty percent (60%) of AMI, adjusted for actual household size.
<br />The rent increase is subject to the following requirements: (a) concurrently with the
<br />request, Developer shall provide the City with evidence of the anticipated reduction,
<br />20
<br />WISEPlace Permanent Supportive Housing
<br />City HOME-ARP Loan Agreement
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