6200 12TH DR SE 2020-10-22 - Laserfiche WebLink

201803290404.014 10.2 City Approval Upon the City's approval of Owner's updated operating budget and the proposed substitute Approved Management and Operations Plan, which approval will be by the City's Mayor m wasting and will not be unreasonably withheld or delayed,such plan is the"Substitute Approved Management and Operations Plan"and it replaces the Approved Management and Operations Plan under this Covenant Owner thereafter may rent units,as they become available through vacancies,in accordance with the Substitute Approved Management and Operations Plan. 10 3 Compatible Subsidy For purposes of this section, a"compatible subsidy"is one that(a)is provided on terms consistent with the operation of the Property in compliance with this Covenant,as modified by this Section 10,with all other recorded covenants and loan documents entered into by Owner for the Property and(b) will not reduce or impair the use of low-income housing tax credits claimed for the Property 10 4 Coverage Standard Compliance For purposes of this section, "Coverage Standard Compliance"is the maintenance of an expense coverage ratio of 1 05 to 1 0 based on the operating cash flow of the Owner from the Property The"expense coverage ratio"shall be calculated based on the gross cash receipts for a specified period divided by all cash expenditures incurred incident to the operation of Property during such period(including, without limitation,operating expenses and capital expenditures not paid from any reserves,equity, or development financing proceeds) For the purpose of this subsection,"gross cash receipts" means all cash received from the operations of the Property, including all government subsidies or other operational or rent subsidies due and payable at such time but not yet received by the Owner,but excluding member's capital contributions, loan proceeds,prepayment of rent, security deposits, insurance proceeds, condemnation awards,proceeds from sales or refinancing of the Owner's property, and any other funds not generated from current Property operations By way of example • If gross cash receipts are$110,000 and cash expenditures are $100,000,then the expense coverage ratio is 1 10 to 1 0 and Coverage Standard Compliance"is maintained 14 //f /