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<br />EXHIBIT 3 <br />ARP Operating Expense Deficit which occurs during the HOME-ARP Compliance <br />Period; provided, however, the Developer shall have no right to expend funds from the <br />HOME-ARP Subsidy Reserve while a Developer Event of Default is continuing. <br />(c)If at any time during the HOME-ARP Subsidy Reserve <br />Compliance Period, the Developer experiences a cash flow shortfall resulting in a <br />HOME-ARP Operating Expense Deficit which the Developer believes qualifies for <br />payment out of the HOME-ARP Subsidy Reserve, Developer shall submit a written <br />request to the City for consent to a disbursement from the HOME-ARP Subsidy Reserve <br />including the specific expenses for which the disbursement is requested. The City shall <br />approve or disapprove such request within ten (10) business days of receipt of the written <br />request; such approval shall not be unreasonably withheld. <br />(d)In no event shall any of the HOME-ARP Subsidy Reserve funds be <br />used to pay for any partnership fees or asset management fees of the Partnership. <br />(e)The HOME-ARP Subsidy Reserve is intended to assure <br />affordability of the HOME-ARP Units during the HOME-ARP Subsidy Reserve <br />Compliance Period. If the HOME-ARP Units continue to operate in accordance with the <br />HOME-ARP requirements, per enforceable restrictions imposed by the City, after the <br />HOME-ARP Subsidy Reserve Compliance Period, unexpended funds in the HOME-ARP <br />Subsidy Reserve at the end of the HOME-ARP Subsidy Reserve Compliance Period may <br />be retained in the HOME-ARP Subsidy Reserve and utilized to cover HOME-ARP Unit <br />Operating Expense Deficits associated with HOME-ARP Units during the extended <br />HOME-ARP Subsidy Reserve Compliance Period. <br />(f)Unexpended funds in the HOME-ARP Subsidy Reserve at the time <br />the HOME-ARP Restrictions are no longer enforced must be returned to the City and <br />deposited in the City’s HOME account and recorded as HOME Program income. <br />(g)Per the HOME-ARP Regulations, no less than annually, the City <br />will review the HOME-ARP Subsidy Reserve account to determine that the account is <br />appropriately sized based on the projected operating deficits of the HOME-ARP Units <br />restricted to occupancy for HOME-ARP Qualifying Populations. <br />(h)If the Developer re-syndicates the tax credit financing any time <br />during the HOME-ARP Compliance Period, the City, at the City’s sole and absolute <br />discretion, shall require the Developer to either: (i) allow the HOME-ARP Subsidy <br />Reserve to remain with the Property; or (ii) repay any amounts remaining in the HOME- <br />ARP Subsidy Reserve as of the date of the re-syndication to the City. <br />(i)Net operating income resulting from the HOME-ARP Subsidy <br />Reserve is not permitted and is prohibited by this Agreement. <br />Section 13.NONDISCRIMINATION COVENANTS <br />13.1. Obligation to Refrain from Discrimination. Developer covenants and <br />agrees that: <br />37 <br />WISEPlace Permanent Supportive Housing <br />City HOME-ARP Loan Agreement