RecDoc 2022-011753- Regulatory Agreement

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3.4 Records. (a) The Owner shall keep and maintain at the Project, or elsewhere with the City's written consent, complete, accurate and current records pertaining to the Project, and shall permit any duly authorized representative of the City to inspect records, including records pertaining to income and household size of Residents, Rent charged Residents and affirmative marketing requirements. All Resident lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Owner and shall be maintained as required by the City, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the City. The Owner shall retain copies of all materials obtained or produced with respect to occupancy of the Units for a period of at least five (5) years. (b) The City shall notify Owner of any records it deems insufficient. Owner shall have thirty (30) calendar days after the receipt of such a notice to correct any deficiency in the records specified by the City in such notice, or if a period longer than thirty (30) days is reasonably necessary to correct the deficiency, then Owner shall begin to correct the deficiency within thirty (30) days and correct the deficiency as soon as reasonably possible. 3.5 On-site Inspection. The City shall have the right to perform an on-site inspection of the Project during normal business hours at least one (1) time per year upon forty-eight hours (48) prior written notice and subject to the rights of tenants under their respective leases. The Owner agrees to cooperate in such inspection. 3.6 MonitorinaFee. Owner shall be obligated to pay to City an annual Affordable Housing Monitoring Fee in the amount set forth in the City's Master Fee Schedule for each residential unit in the Project that is subject to the affordability restrictions set forth in the Regulatory Agreement. This fee is payable at initial lease -up of each residential unit, upon each annual review, and upon re -occupancy of any residential unit. The City will not charge an annual monitoring fee in the same year that the City charges a fee in connection with the initial lease -up. If the City determines, in the exercise of its reasonable discretion, that the Project requires additional technical assistance or compliance monitoring in an amount in excess of the typical time required for comparable projects, the City shall give the Owner, the Investor Limited Partner and all Senior Lenders a detailed explanation of the deficiencies and Owner shall have ten (10) days to address the issues identifies. If the City determines that the issues have not been adequately addressed, Owner shall pay City for such additional costs at the rate of $179 per hour. All compliance monitoring and technical assistance fees shall be payable to City within fifteen (15) days following City's written request for payment, and City shall have the right to file a lien against the Property if such fees are not paid within thirty (30) days of such written request. If in any year Owner demonstrates to the City's satisfaction there is insufficient Project cash flow available to pay the annual monitoring fee, the City will permit the fee to be deferred. Any deferred amounts shall accrue and shall be payable from future Project cash flow and until such deferred amounts are paid, Owner shall submit to the City annually a Project cash flow statement. REV: 01-19-2022 SK ATTY/AGR.2022.005/GS HIP 1304 ECR, LP (Page 9 of 23)