Laserfiche WebLink
4. Consistent with the requirements of the funding agencies, the Agency shall <br /> make annual deposits from Project income in amounts as specified in the <br /> initial and annual budgets. <br /> 5. Withdrawals from the accounts shall be made in a manner consistent with the <br /> requirements of the funding entities, including the City, if the City elects to <br /> impose such requirements. Withdrawals from the Replacement Reserve <br /> Account shall be made only for capital improvements such as replacing or <br /> repairing structural elements, furniture, fixtures, or equipment of the Project <br /> which are reasonably required to preserve the Project. Withdrawals from the <br /> Operating Reserve Account may be utilized only to cover actual and <br /> reasonable operating expenses, or to compensate for vacancy and bad debt <br /> losses. <br /> 6. All reserves shall remain with the Project upon sale or transfer and shall be <br /> used solely for the purposes stated herein notwithstanding any change in the <br /> ownership of the Project. <br /> H. Use of Income from Operations <br /> The Agency or the Agency's management agent shall promptly deposit all <br /> operating income in an account established in the Agency's name segregated by <br /> general ledger for the Project. There shall be no commingling of the Project <br /> funds with other funds controlled by the Agency. <br /> Withdrawals from this account shall be made only in accordance with the <br /> provisions of this HOME Agreement and the annual operating budget, and shall <br /> be disbursed, applied, or reserved and set aside for payment when due, in the <br /> following priority, to the extent available: <br /> 1. All charges incurred in the operation of the Project in connection with utilities, <br /> real estate taxes and assessments, and liability, fire, and other hazard <br /> insurance; <br /> 2. Salaries, wages, and other compensation due and payable to the employees <br /> or agents of the Agency employed on site and off site in connection with the <br /> management, maintenance, administration, or operation of the Project, along <br /> with all withholding taxes, other insurance premiums, Social Security <br /> payments, and other payroll taxes or payments required in connection with <br /> such employees; <br /> 3. Payments of required interest, principal, impounds, fees, and charges, if any, <br /> on loans secured by the Property; <br /> Amended HOME Loan Agreement <br /> Housing Hope's Kennedy Court Improvement Project <br /> Page 34 of 53 <br />