RecDoc 2009-095365 - Laserfiche WebLink

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Documents and HUD rules and regulations pertaining thereto, the HUD documents and HUD rules and regulations shall prevail. No default may be declared under the CalHFA Documents without HUD prior written consent. 3. HUD Rules. During the time period in which Section 202 or the PRAC regulations apply to the development, rents approved by HUD pursuant to the Section 202 program and the PRAC shall be deemed to be in compliance with the CalHF A Regulatory Agreement, and compliance by the Developer with the Section 202 Regulations and the PRAC with respect to continued occupancy by households whose incomes exceed the eligible income limitations of Section 4 of the CalHF A Regulatory Agreement, or other matters set forth in Section 4 through 9 of the CalHF A Regulatory Agreement, shall be deemed to be compliance with the requirements of the CalHFA Documents. Nothing in the CalHF A Documents shall in any way limit, interfere or conflict with the rights of HUD with respect to development, operation and management of the Development; nor can the CalHF A Documents in any way jeopardize the continued operation of the project in terms at lease as favorable to existing as well as future terms. 4. CalHFA Loan Disbursement. Upon continued satisfaction of the conditions precedent to loan disbursement set forth in the CalHF A Loan Agreement, CalHF A shall disburse the CalHF A Loan proceeds to Borrower from time to time following approval by CalHF A and HUD of Borrower's requisitions in accordance with the HUD Documents. HUD approval of a requisition shall be deemed CalHF A approval, provided that the requisition conforms to the use of CalHF A funds shown in the Financing Plan approved by CalHF A and is an eligible use of CalHF A funds under applicable CalHF A regulations. CalHF A agrees that the uses of CalHF A funds shown in the Financing Plan are eligible uses. Requisitions not requiring HUD approval shall be submitted only to CalHF A for approval and disbursement pursuant to the CalHF A Loan Agreement. Notwithstanding the foregoing, if any CalHF A Loan proceeds are to be used toward Borrower's satisfaction of HUD' s "front money escrow" requirements, then such CalHF A Loan proceeds shall be disbursed in accordance with HUD's Section 202 Program and HUD' s Firm Commitment dated ,2005, issued to Borrower, in connection with the Development. 5. Residual Receipts; Permanent Loan Funds. Any whole or partial repayment of the principal and any other payments as set forth in the CalHFA Documents shall be made only from either (a) Residual Receipts (as defined in the HUD Documents), and then only after obtaining the prior written approval of HUD, or from the Borrower's own funds or (b) new permanent financing funds provided by the California Department of Housing and Community Development or any other permanent lender. 6. Indemnification. Enforcement by CalHF A of any indemnification provisions in the CalHF A Documents will not and shall not result in any monetary claim against the Development, the HUD Capital Advance proceeds, any reserve or deposit required by HUD in connection with the HUD Capital Advance, or the rents or other income from the Development other than residual receipts authorized for release by HUD, without the prior written consent of HUD, but CalHF A shall have the right to add any amounts due CalHF A pursuant to indemnification provisions in the CalHF A Documents to the principal amount of the CalHFALoan and the Note and interest shall accrue thereon commencing on the date indemnification payments are due. 7. Transfer. Approval by HUD of a Transfer of Physical Assets (as defined in Handbook 4350.1 Rev-I) ("TP A") shall constitute approval of the transfer by CalHF A and the Borrower shall deliver to CaIHFA, at the same time as its delivery to HUD, any application for HUD's approval of a proposed Exhibit ~G" - Page 2