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written notice and subject to the rights of Residents under their respective leases during <br />reasonable business hours. Owner agrees to cooperate in such inspection. <br />Section 3.6 Monitoring Fee. Owner shall be obligated to pay to City an annual <br />affordable housing monitoring fee in the amount set forth in the City's master fee schedule for <br />each Affordable Unit (the "Affordable Housing Monitoring Fee"). This fee is payable at initial <br />lease -up of each Affordable Unit, upon each annual review, and upon re -occupancy of any <br />Affordable Unit. The City will not charge an annual Affordable Housing Monitoring Fee in the <br />same year that the City charges a fee in connection with the initial lease -up. If the City <br />determines, in the exercise of its reasonable discretion, that Affordable Project requires <br />additional technical assistance or compliance monitoring in an amount in excess of the typical <br />time required for comparable projects, the City shall give the Owner, the Investor Limited <br />Partner, and all Senior Lenders a detailed explanation of the deficiencies and Owner shall have <br />ten (10) days to address the issues identifies. If the City determines that the issues have not been <br />adequately addressed, Owner shall pay City for such additional costs at the rate of $190 per hour, <br />or such other amount approved in the City's master fee schedule approved by the City from time <br />to time. All compliance monitoring and technical assistance fees shall be payable to City within <br />fifteen (15) days following City's written request for payment, and City shall have the right to <br />file a lien against the Affordable Site if such fees are not paid within thirty (30) days of such <br />written request. If in any year Owner demonstrates to the City's satisfaction there is insufficient <br />Affordable Project cash flow available to pay the Affordable Housing Monitoring Fee, the City <br />will permit the fee to be deferred. Any deferred amounts shall accrue and shall be payable from <br />future Affordable Project cash flow and until such deferred amounts are paid, Owner shall <br />submit to the City annually an Affordable Project cash flow statement. <br />ARTICLE 4 <br />OPERATION OF THE AFFORDABLE PROJECT <br />Section 4.1 Residential Use. Affordable Project shall be operated only for residential <br />use. No part of Affordable Project shall be operated as transient housing in which the term of <br />occupancy is less than thirty (30) days. No part of the Development may be operated as an <br />emergency shelter (including shelter for disaster victims) or facilities such as nursing homes, <br />convalescent homes, hospitals, residential treatment facilities, correctional facilities, halfway <br />houses, housing for students, or dormitories (including farmworker dormitories). <br />Section 4.2 Taxes and Assessments. The Owner shall pay all real and personal <br />property taxes, assessments and charges and all franchise, income, employment, old age benefit, <br />withholding, sales, and other taxes assessed against it, or payable by it, at such times and in such <br />manner as to prevent any penalty from accruing, or any lien or charge from attaching to the <br />Affordable Project; provided, however, that Owner shall have the right to contest in good faith, <br />any such taxes, assessments, or charges. In the event Owner exercises its right to contest any <br />tax, assessment, or charge against it, Owner, on final determination of the proceeding or contest, <br />shall immediately pay or discharge any decision or judgment rendered against it, together with <br />all costs, charges and interest. Nothing herein shall prohibit Owner from applying for and <br />obtaining the welfare tax exemption pursuant to Section 214(g) of the California Revenue and <br />Taxation Code. <br />REV: 07-12-24 VR <br />1199\1013491196.8 <br />