Housing Hope HCS-15-42-1213-198(1) 7/25/2016

c. Factors to be Considered for Exceptions The factors to be considered by the City in determining whether to grant a requested exception under paragraph (b) of this section are contained at 24 CFR § 92.356(0(2). V. Certain Acts Prohibited The Agency shall not make any sale, encumbrance, assignment, or conveyance, or transfer in any other form, of the Property or Project or any part thereof or of any of its interest therein other than in accordance with the terms of this Loan Agreement. The Agency shall not, without the prior approval of the City: 1. Make any distribution not permitted by the terms of this Loan Agreement; 2. Assign or transfer any right to operate or manage the Project, except pursuant to the terms of this Loan Agreement; 3. After the rehabilitation of the Project, remodel, remove, add to, reconstruct, or demolish any part of the Project, or impair any real or personal property of the Project, without prior written approval by the City; 4. Require, as a condition of the occupancy or leasing of any dwelling unit in the Project, any consideration or deposit in excess of that permitted by HOME Program regulations to guarantee the performance of the covenants of the lease. Any funds collected as security deposits shall be kept separate and apart from all other funds of the Project in a trust account with a depository insured by the Federal Deposit Insurance Corporation and shall be held and disbursed in accordance with Washington law and this Loan Agreement. The balance of such account shall at all times equal or exceed the aggregate of all outstanding obligations under said account, plus accrued interest thereon; 5. Permit the use of the units in the Project for any purpose except that which is approved by this Loan Agreement; 6. Incur any liability or obligation in connection with the Project, contingent or otherwise (other than liabilities and obligations in connection with the financing of the acquisition, development and construction of the Project); 7. Enter into any contract or contracts for supervisory or managerial services except as permitted by this Loan Agreement; or 8. Invest any funds from the Project in any property, real or personal, except as authorized by this Loan Agreement or by the City, or deposit any such funds Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 18 of 53