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

request, the Agency shall provide, at its own expense, an audit of the Project certified by an independent certified public accountant. c. The City may request any other information that it deems necessary to monitor compliance with requirements set forth in this Loan Agreement. Such information shall be provided promptly by the Agency. 5. Other Information In addition to the annual report required above, if required by the City, the Agency shall file with the City an operating report including such information as the City may reasonably require and submit it at intervals as directed by the City, but in no case more often than on a quarterly basis. 6. Inspections At any time during the term of this Loan Agreement, upon reasonable prior notice to the Agency and during normal business hours, the City or its designee may enter and inspect the physical premises of the Agency's office and inspect all accounting and other records pertaining to the HOME assistance activities and operation of the Project. Upon request by the City, the Agency shall notify tenants of upcoming inspections of their units or records in order to ensure compliance with HOME Program rules pertaining to property standards as contained at 24 CFR § 92.251 and 25 CFR § 92.355 and in accordance with state law. Prior to or contemporaneously with the tenants' execution of their leases, the Agency shall inform tenants in writing of, and require tenants to acknowledge by their signatures thereon, the City's reserved right to inspect their rental units and records. The Agency shall retain the acknowledged notices with the tenants' leases. Inspections of residential units will be conducted in compliance with applicable landlord- tenant laws. The City shall inspect the Project periodically for compliance to certain property standards to ensure the property is maintained as decent, safe, sanitary, in good repair and habitable housing, as may be prescribed by the HOME Program, or the Uniform Property Condition Standards (UPCS) per 24 CFR §5.703, or such successor standards as the County may require. 7. Reserve Requirements Unless otherwise approved by the City the Agency shall make every reasonable effort following Project completion to fund all replacement and operating reserves in accordance with the pro forma operating budget for the Project. Replacement Reserves shall not be used for purposes other than capital replacements or improvements to the Project, without the prior consent of the City, which consent shall not be unreasonably withheld. Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 45 of 53