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delivered and accepted subject to the covenants, restrictions, duties and obligations set forth
<br />herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in
<br />such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or
<br />other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain
<br />and deliver to City an instrument in recordable form signed by the parties to such contract, deed,
<br />ground lease or other instrument pursuant to which such parties acknowledge and accept this
<br />Agreement and agree to be bound hereby. Owner agrees for itself and for its successors that in
<br />the event that a court of competent jurisdiction determines that the covenants herein do not run
<br />with the land, such covenants shall be enforced as equitable servitudes against the Property and
<br />the Project in favor of City.
<br />6. Property Management, Repair and Maintenance; Marketing; Reserves; Supportive
<br />Services.
<br />6.1 Management Responsibilities. Owner shall be responsible for all management
<br />functions with respect to the Property and the Project, including without limitation the selection
<br />of tenants, certification and recertification of household income and eligibility, evictions,
<br />collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs,
<br />replacement of capital items, and security. Owner may delegate responsibility for the foregoing
<br />matters to a management entity subject to the provisions of Section 6.2. City shall have no
<br />responsibility for management or maintenance of the Property or the Project.
<br />6.2 Management Entity; Social Services Provider. City shall have the right to review
<br />and approve the qualifications of the management entity and the social services provider
<br />proposed by Owner for the Project, and shall have the right to review and approve any property
<br />management agreement and social services agreement executed between Owner and such
<br />entities, which approvals shall not be unreasonably withheld. The contracting of management
<br />services to a management entity shall not relieve Owner of its primary responsibility for proper
<br />performance of management duties. City hereby approves HIP Housing Affordable Ventures,
<br />Inc., a California nonprofit public benefit corporation, as the initial management entity for the
<br />Project. Any subsequent management entity or social services provider shall be subject to City
<br />review and approval, which shall not be unreasonably withheld or delayed. Following the
<br />occurrence of an Event of Default hereunder, subject to any applicable cure period and the
<br />approval of the Project lenders and equity investors, City may require Owner to contract with a
<br />qualified management agent selected by City and approved by the Project lender and equity
<br />investor, to operate the Project, or to make such other arrangements as City deems necessary to
<br />ensure performance of the required functions.
<br />6.3 Repair. Maintenance and Security. Throughout the term of this Agreement,
<br />Owner shall at its own expense, maintain the Property and the Project in good physical condition,
<br />in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions in
<br />conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations.
<br />Without limiting the foregoing, Owner agrees to maintain the Project and the Property (including
<br />without limitation, the residential units, common areas, meeting rooms, landscaping, driveways,
<br />parking areas and walkways) in a condition free of all waste, nuisance, debris, unmaintained
<br />landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take
<br />all reasonable steps to prevent the same from occurring on the Property or at the Project. Owner
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<br />OAK #4820-8711-2085 v4
<br />ATTY/AGR.2019.148/Redwood Oaks Associates 11 LP - Regulatory Agreement
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