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Redevelopment Law, the NSP Requirements and the HOME Program, including Section 92.508 (or successor regulation) of the HOME Regulations and Section 33418 of the Redevelopment Law, and shall annually complete and submit to Agency/City a Certification of Continuing Program Compliance substantially in the form of Exhibit N to the Agreement, or other form provided by the Executive Director. Representatives of the Agency and City shall be entitled to enter the Property, upon at least twenty-four (24) hours notice, to monitor compliance with these Restrictions, to inspect the records of the Project, and to conduct an independent audit or inspection of such records. Developer acknowledges and agrees that an Agency and/or City representative will inspect and audit the Project on not less than an annual basis to confirm Developer's compliance with the management, maintenance, and operational requirements set forth in this Agreement (including, without limitation, compliance with the Redevelopment Law, HOME Regulations, and NSP Requirements). Developer agrees to cooperate with City in making the Property and all Housing Units thereon available for such inspection(s) or audit(s). Developer agrees to maintain records in a businesslike manner, to make such records available to the Agency and City upon twenty-four (24) hours notice, and to maintain such records for the entire Affordability Period. Developer shall cure any defects or deficiencies found by the Agency/City while conducting such inspections within two weeks of written notice thereof, or such longer period as is reasonable within the sole discretion of the Agency/City. Without limiting the generality of the foregoing, Developer shall prepare, maintain and submit to the Agency, as appropriate, the following records and reports in compliance with Health and Safety Code Section 33418 and 24 CFR 92.504(c)(12): (a) Annual Reports. Developer shall file with the Agency an Annual Report (herein referred to as the "Annual Report") within one hundred fifty (150) days following the end of each calendar year, commencing with the end of the calendar year (or portion thereof) in which the first disbursement of the Loans occurs. The Annual Report shall contain a certification by Developer as to such information as the Executive Director may then require, including, but not limited to, the following: (1) The fiscal condition of the Project, including the Annual Budget; an updated Project cash flow projection; a financial statement for the previous calendar year that includes a balance sheet and a profit and loss statement indicating any surplus or deficit in operating accounts; a detailed itemized listing of income and expenses; and the amounts contained in any fiscal reserves. Such Annual Budget and financial statement shall be prepared in accordance with generally accepted accounting practices, consistently applied. The Executive Director may require that the financial statement be audited at Developer's expense by an independent certified public accountant acceptable to the Executive Director. Each annual financial statement submitted by Developer shall include a report showing the amount of Residual Receipts produced by the Project in the applicable year, to enable the City and Agency to evaluate the amount of Residual Receipts payments required to be made on the Loans for such year, as required by the Promissory Notes. (2) Any substantial physical defects in the Project, including a description of any major repair or maintenance work undertaken or needed in the previous and current years. Such statement shall describe what steps Developer has taken in order to maintain the Project in a safe and sanitary condition in accordance with applicable housing and building codes and the property standards set forth in 24 CFR 92.251. 6 DOC SOC/ 1495827v2/200272-0003