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(vi) A report on the Project operating reserve and replacement reserve accounts <br />summarizing draws of such funds and remaining balances; <br />(vii) A financial audit of the books and records of the Project prepared in <br />accordance with generally accepted auditing standards by an independent certified public <br />accountant. <br />(viii) City may from time to time request additional information, and Owner <br />shall promptly supply such information in the reports required hereunder. Owner shall provide <br />all information reasonably requested by City regarding the Property or the Project, including <br />without limitation, any information required by HUD in connection with Owner's use of the <br />CDBG Funds and the HOME Funds. <br />3.5 Maintenance of Records. <br />3.5.1 Owner shall keep and maintain complete and accurate books, records, and <br />accounts relating to the Project, including all such books, records, and accounts necessary to <br />evidence and substantiate Owner's compliance with the requirements of this Agreement. Books <br />shall be kept and maintained in accordance with generally accepted accounting principles <br />consistently applied. Owner shall maintain all records regarding the rehabilitation and <br />construction of the Project for five (5) years after final payment and all other pending matters are <br />closed. Owner shall also maintain tenant leases, income certifications and other matters related <br />to the leasing of the Project for a period of five (5) years after the final date of occupancy by each <br />tenant. <br />3.5.2 Records must be kept accurate and up-to-date. City shall notify Owner in <br />writing of any records it deems insufficient. Owner shall have fifteen (15) calendar days from <br />such notice to correct any specified deficiency in the records, or, if more than fifteen (15) days <br />shall be reasonably necessary to correct the deficiency, Owner shall begin to correct the <br />deficiency within fifteen (15) days and diligently pursue the correction of the deficiency as soon <br />as reasonably possible. <br />3.6 Information and Records. All Project books, records, and accounts shall be open <br />to and available for audit, inspection and copying by the City or HUD, their auditors or other <br />authorized representatives at reasonable intervals during normal business hours. Copies of all tax <br />returns and other reports that the Owner may be required to furnish any governmental agency <br />shall at all reasonable times be open for inspection by the City at the place that the books, records <br />and accounts of the Owner are kept. The Owner shall preserve such records for a period of not <br />less than five (5) years after the creation of such records in compliance with all HUD records and <br />accounting requirements including. If any litigation, claim, negotiation, audit exception, <br />monitoring, inspection or other action relating to the use of the Loan is pending at the end of the <br />record retention period stated herein, then the Owner shall retain such records until such action <br />and all related issues are resolved. Such records shall include all invoices, receipts, and other <br />documents related to expenditures from the Loan funds. Records must be kept accurate and <br />current. Owner shall cause records to be accurate and current and in such a form as to allow the <br />City to comply with the record keeping requirements contained in 24 C.F.R. 570.506. Such <br />12 <br />OAK #4820-8711-2085 v4 <br />ATTY/AGR.2019.148/Redwood Oaks Associates 11 LP - Regulatory Agreement <br />