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

201803290404.015 • If gross cash receipts are$90,000 and cash expenditures are $100,000,then the expense coverage ratio is 0 90 to 1 0 and Coverage Standard Compliance"is not maintained 10 5 Adjustment Regarding Coverage Standard Compliance The parties acknowledge that Coverage Standard Compliance m Section 10.4 is derived from requirements contained in the LLC Operating Agreement or in Owner's loan agreements for the Property If such requirements are later amended as to lessen or eliminate such requirements,Owner shall give written notice to the City,and this Section 10 will be amended by the parties to reflect such amended requirements 10 6 Substitute Plan Adjustment The parties acknowledge that their intent is that the Property always be operated as close to the original Approved Management and Operations Plan as Coverage Standard Compliance will practically allow Accordingly,if at any time when a Substitute Approved Management and Operations Plan is in effect it becomes possible to revert to some or all of the onginal Approved Management and Operations Plan and still remain in Coverage Standard Compliance,then Owner will provide written notice of that fact to the City and provide a proposed new Substitute Approved Management and Operations Plan for City approval, which approval will not be unreasonably withheld or delayed The parties recognize that three examples that could cause this to occur are(A)improvements in operations that reduce expenses, (B)reduction or elimination of the need for Coverage Standard Compliance under Section 10 5 above or(C)availability of new or increased compatible subsidies If new or increased compatible subsidies are available,Owner shall promptly apply and pursue such subsidies, and Owner shall enter into and perform any contracts required to obtain and maintain such subsidies 10 7 Resident Leases If there is a loss of Subsidies,no existing resident's lease will be terminated solely on account of such loss of subsidy and any lease terminations shall be in compliance is applicable law and regulations 10 8 Arbitration If the City and Owner have a dispute under this Section 10, the dispute shall be determined by arbitration in Everett, Washington,under the American Arbitration Association(AAA) Commercial Arbitration Rules with Expedited Procedures in effect on the date hereof, as modified by this agreement There 15/tr