RecDoc 2024-043618 Affordable Housing Restrictive Agreement

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San Francisco bay area; and (c) the proposed management agent has no record of defaults, maintenance problems, housing or building code violations, or substantiated fair housing complaints at properties it owns or operates. The Parties agree and acknowledge that the City will have the right to disapprove a proposed management agent that has a record of defaults, maintenance problems, housing or building code violations, and/or substantiated fair housing complaints at properties it owns or operates. (b) The initial management agent for the Affordable Units shall be identified by the Owner at least ninety (90) days before the Owner commences leasing activities for the Affordable Units. For any change in the Affordable Units Management Agent, the Owner shall submit for the City's reasonable approval the identity of any proposed Affordable Units Management Agent who meets the criteria in subsection (a) above. The Owner shall also submit such additional information about the background, experience and financial condition of any proposed Affordable Units Management Agent as is reasonably necessary for the City to determine whether the proposed Affordable Units Management Agent meets the standard for a qualified management agent set forth above. If the proposed Affordable Units Management Agent meets the standard for a qualified management agent set forth above, the City shall approve the proposed Affordable Units Management Agent by notifying the Owner in writing. Section 5.3 Performance Review. In addition to the reporting requirements under Section 3.2 above, the City reserves the right to conduct an annual (or more frequently, if deemed reasonably necessary by the City) review of the management practices and financial status of the Affordable Units. The purpose of each periodic review will be to enable the City to determine if the Affordable Units are being operated and managed in accordance with the requirements and standards of this Agreement. The Owner shall cooperate with the City in such reviews. Section 5.4 Replacement -of Management Agent. (a) If, as a result of a periodic review, the City determines in its reasonable judgment that the Affordable Units are not being operated and managed in accordance with any of the requirements and standards of this Agreement, the City shall deliver notice to the Owner and the Investor Limited Partner identifying the deficiencies of the management agent with regards to the management of the Affordable Units. Within thirty (30) days of receipt by the Owner of such written notice, City staff and the Owner shall meet in good faith to consider methods for improving the financial and operating status of Affordable Project. The City shall have the right to review and inspect documents related to the management and operation of Affordable Project. The then acting .Management Agent will have a period of thirty (30) days to address the deficiencies identified by the City. If, after initial meeting or after the sixty (60) day cure period runs (commencing from the date of the deficiency notice), the City staff recommends in writing to the Owner for the replacement of the Management Agent, the Owner shall identify a replacement Management Agent. (b) Any contract for the operation or management of Affordable Project, entered into by the Owner shall provide that the contract can be terminated or modified as set forth above. Failure to remove the Management Agent in accordance with the provisions of this Section shall constitute default under this Agreement, and the City may enforce this provision through legal proceedings as specified in Section 6.7, below. REV: 07-12-24 VR 1199\10\3491196.8