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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 Mana ement Repair and Maintenance-, Marketing: Reserves.
<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. City shall have the right to review and approve the
<br />qualifications of the management entity proposed by Owner for the Project, and shall have the
<br />right to review and approve any property management agreement executed between Owner and
<br />such entity, which approval 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 shall be subject to City review and approval, which
<br />shall not be unreasonably withheld or delayed. Following the occurrence of an Event of Default
<br />hereunder, subject to any applicable cure period and the approval of the Project lenders and
<br />equity investors, City may require Owner to contract with a qualified management agent selected
<br />by City and approved by the Project lender and equity investor, to operate the Project, or to make
<br />such other arrangements as City deems necessary to ensure performance of the required
<br />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
<br />shall prevent and/or rectify any physical deterioration of the Property and the Project and shall
<br />make all repairs, renewals and replacements necessary to keep the Property and the
<br />improvements located thereon in good condition and repair. Owner shall provide adequate
<br />security measures for the Project, including without limitation, the installation of adequate
<br />lighting and deadbolt locks.
<br />REV: 02-25-2020 PR
<br />ATTY/AGR.2020.039/Premia 1180 Main Owner, LLC (Page 24 of 42)
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