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principles or methods as are reasonably acceptable to City, in accordance with 24 CFR
<br />92.508.
<br />12.4 Project Operating Budget. Developer must promptly deposit all project
<br />income directly into a segregated depository account established exclusively for the
<br />Project ( "Project Operating Account "). Withdrawals from this account may be made
<br />only in accordance with the provisions of this Agreement and the approved Project
<br />Budget, as it may be revised from time to time with City approval. Developer may make
<br />withdrawals from this account solely for the payment of project expenses and project
<br />fees. Withdrawals from this account for other purposes may be made only with the prior
<br />written approval of the City.
<br />12.5 Replacement Reserve Account. Developer must establish or cause to be
<br />established a segregated interest - bearing replacement reserve depository account
<br />( "Replacement Reserve Account ") no later than sixty (60) days after the Certificate of
<br />Completion is filed. Developer must make monthly deposits from project income into
<br />the Replacement Reserve in accordance with Developer's Budget, as amended from time
<br />to time. Developer may withdraw funds fiom the Replacement Reserve Account solely
<br />to fund capital improvements for the Project, such as replacing or repairing structural
<br />elements, furniture, fixtures or equipment of the Project that are reasonably required to
<br />preserve the Project. Developer may not withdraw funds from the Replacement Reserve
<br />Account for any other purpose without the prior written approval of the City.
<br />13. NONDISCRIMINATION COVENANTS
<br />13.1 Obligation to Refrain from Discrimination. Developer covenants and
<br />agrees that:
<br />A. In Use of Property. There shall be no discrimination
<br />against or segregation of any person, or group of persons, on account of race, color,
<br />creed, religion, sex, mental or physical disability, marital status, national origin, or
<br />ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
<br />Property, nor shall Developer or any person claiming under or through it, establish or
<br />permit any such practice or practices of discrimination or segregation with reference to
<br />the selection, location, number, use or occupancy of tenants, lessees, subtenants,
<br />sublessees, or vendors of the Property.
<br />B. In Affordable Housing Restrictions. The
<br />foregoing covenant shall (a) be included in the Affordability Restrictions on Transfer of
<br />Property, (b) run with the land, and (c) remain effective for the term of the contract (for
<br />55 years).
<br />C. In Employment. In rehabilitation of the Property,
<br />Developer shall not discriminate against any employee or applicant because of race,
<br />color, creed, religion, sex, marital status, mental or physical disability, national origin, or
<br />ancestry. Developer shall take affirmative action to ensure that applicants are employed,
<br />and that employees are treated during employment, without regard to their race, color,
<br />creed, religion, sex, marital status, national origin, or ancestry.
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