92466.1-CA Capital Advance Mixed Finance Program Regulatory Agreeme

Regulatory Agreement
Capital Advance Mixed Finance
Program
Instructions to Closing Attorney and
Title Company
1. Partnership Mortgagor – The
general partner executes the
Regulatory Agreement. A copy of
the partnership agreement should
be furnished and should be
furnished and should be examined
to determine that it contains
nothing inconsistent with the
Regulatory Agreement. It should
further contain a provision
substantially as follows:
“The partnership is authorized to
execute a note and mortgage in
order to secure a capital advance
from the Secretary of Housing and
Urban Development and to execute a
Regulatory Agreement and other
documents required by the
Secretary in connection with such
capital advance. Any incoming
general partner shall as a
condition of receiving an interest
in the partnership agree to be
bound by the note, mortgage, and
Regulatory Agreement and other
documents required in connection
with the capital advance to the
same extent and on the same terms
as the original general partner.
Upon any dissolution, no title or
right to possession and control of
the project, and no right to
collect the rents therefrom shall
pass to any person who is not
bound by the Regulatory Agreement
in a manner satisfactory to the
Secretary.
2. In all cases involving the
issuance of a commitment there
shall be added to the mortgage a

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner
provision substantially as
follows:
“The Regulatory Agreement of even
date herewith entered into between
the Mortgagors (Grantors) herein
and the Secretary of Housing and
Urban Development which is being
recorded simultaneously herewith,
is incorporated in and made a part
of this mortgage (deed of trust).
Upon default under the Regulatory
Agreement and upon request by the
Secretary may declare this
mortgage (deed of trust) in
default and may declare the whole
of the indebtedness secured hereby
to be due and payable.” If the
mortgage is already on record, it
should be modified to incorporate
the Regulatory Agreement.
Ordinarily this may be done by a
separate Modification Agreement
executed by the mortgagor and HUD.
3. The Regulatory Agreement shall
be executed by the Mortgagor and
Secretary and recorded at the
expense of the Mortgagor prior to
endorsement for insurance, prior
to consent to a conveyance in
existing insured mortgage cases,
or prior to the conveyance to a
purchaser in sales cases.
4. Since the requirements for
execution vary from state to
state, space is left at the end of
the printed form for proper
execution. Generally,
acknowledgment by each party will
be required and the form of
acknowledgment used in the

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form HUD-92466.1-CA (10/07)

mortgage or deed of trust would be
acceptable.
5. The Agreement is to be executed
in the name of the Secretary by
the Hub/Program Center Director.
6. A legal description of the
property shall be attached.
7. Whenever this Agreement is
executed by a person not liable
for the payment of the note and
mortgage, such person shall be
listed in Paragraph 23. If all
persons executing this Agreement
are so liable, the word “none”
should be inserted in Paragraph 23
or Paragraph 17 should be stricken
in its entirety.
8. The dollar amount to be
inserted in the first paragraph of
6(a) is 1/12 the annual Reserve
for Replacements recited in the
commitment.
9. The Mortgagor may use the
traditional Regulatory Agreement,
form HUD-92466CA, instead of form
HUD-92466.1CA.
After recording, return original
to the Office of Counsel at the
appropriate HUD Multifamily Hub/
Program Center Office.

Page 2 of 15
form HUD-92466.1-CA (10/07)

Regulatory Agreement for
Capital Advance Mixed Finance
Program

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

Housing for the Elderly or Persons
with Disabilities
Section 202 of the Housing Act of
1959 or Section 811
of the National Affordable Housing
Act.
Project Number

Other Secured Lien Holders

Amount of Mortgage Note

Date

Mortgage Recorded State
Book

County
Page

Date

This agreement entered into__________________ day of __________ 20______,
between _______________________________________________________ whose
address is _______________________________________________ hereinafter
called Mortgagor and the undersigned Secretary of Housing and Urban
Development hereinafter called HUD.
Whereas the American Homeownership and Economic Opportunity Act of 2000
amended both the Section 202 Supportive Housing Program for the elderly
and Section 811 Supportive Housing program for persons with disabilities
to allow the use of capital advance and rental assistance funds in mixedfinance development projects owned by for-profit limited partnership
entity that is controlled by a single purpose exempt organization.
Whereas, the Mortgagor has been organized for the purpose of the ownership
and operation Mortgaged Property, a ____ unit development.
Whereas ____ of the ____ units in the project are being financed in part,
with the proceeds of the capital advance described herein and will receive
assistance under a Project Rental Assistance Contract. The ____ HUD
assisted units are hereafter referred to as the “Assisted Units.”

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form HUD-92466.1-CA (10/07)

Whereas the remaining ____ units in the project are being financed with
public/private debt and/or low income housing tax credit equity. These
units so financed and hereafter referred to as the “Non-assisted Units.”
This Agreement regulates operations of the Assisted Units, which make up a
portion of the real estate included within the mortgaged property.
In consideration of the making of the capital advance by HUD and the
disbursement of any part thereof, and in order to comply with the
requirements of the Housing Act of l959 or National Affordable Housing
of l990 and the Regulations adopted by the Secretary pursuant thereto,
Mortgagor agrees for itself, its successors and assigns, and any owner
the mortgaged property, that in connection with the mortgaged property
the project operated thereon and so long as the capital advance is
outstanding:
l. The Note and Mortgage bear no
interest and repayment is not
required so long as the Assisted
Units remain available for very
low-income elderly persons or
very low-income persons with
disabilities (whichever is
applicable).
2. a) The parties to this Agreement
acknowledge and agree that
the Owner shall: maintain
separate books and records
for the operation maintenance
of the Assisted Units and the
operation and maintenance of
the Non-assisted Units.
b) Unless otherwise agreed by
HUD, the operating expenses
between the Assisted Units
and the Non-assisted Units
are based on the relative
square footage of the
Assisted Units and the Nonassisted Units.
c) The parties acknowledge and
agree that unless otherwise
specifically provided herein,
the terms and conditions set

Act
the
of
and

forth below shall apply
solely to the Assisted Units,
provided that nothing herein
shall preclude HUD from
receiving complete financial
records and information
pertaining to the operation
of both the Assisted Units
and the Non-assisted Units.
3. The Owner will establish and
maintain a special fund to be
known as the revenue fund
account in a bank which is a
member of the Federal Deposit
Insurance Corporation, Savings
Association Insurance Fund, or
the National Credit Union Share
Insurance Fund, into which will
be deposited all rentals,
charges, income and revenue
arising from the operation or
ownership of the Assisted Units.
The bank in which this account
is established shall provide
collateral acceptable to HUD to
equal the maximum amount in the
account at any one time when
such amount exceeds $l00,000.
If the bank will not provide
appropriate collateral in such

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form HUD-92466.1-CA (10/07)

instances, the Owner will be
required to establish accounts
in two or more banks so that the
total amount on deposit at any
time does not exceed $l00,000 in
any one bank. Expenditures
shall be made from the revenue
fund account only in accordance
with the operating budget for
the Assisted Units submitted to
and approved by HUD.
4. Not later than 30 days prior to
the beginning of each fiscal
year, the Owner shall submit an
operating budget for that fiscal
year to HUD. The budget shall
include all necessary operating
expenses, current maintenance
charges, expenses of reasonable
upkeep and repairs, taxes and
special assessment levies,
prorated amounts required for
insurance and all other expenses
incident to the operation of the
Assisted Units; and shall show
the expected revenue to pay such
expenses, including reserve fund
deposits. The expenses incurred
and disbursements shall not
exceed the reasonable and
necessary amount thereof, and
the Mortgagor will not expend
any amount or incur any
obligations in excess of the
amounts approved in the annual
operating budget except upon
written certification by the
Mortgagor to HUD that such
expenses were unanticipated and
are necessary and provided
further, that nothing in this
section shall limit the amount
which the Mortgagor may expend
from funds obtained from some
other source than revenues from
the Assisted Units or other

funds required of the Mortgagor
pursuant to this Agreement.
5. As security for the Capital
Advance for the required
payments under this Agreement
into the reserve fund for
replacements, and for all other
obligations of the Mortgagor
under this Agreement, the
Mortgagor hereby assigns,
pledges and mortgages to HUD all
its rights to the income and
charges of whatever sort which
it may receive or be entitled to
receive from the operation of
the Assisted Units, subject,
however, to any assignment of
rents or project income in the
Mortgage referred to herein.
Until a default occurs under
this Agreement, however,
permission is granted to
Mortgagor to collect and retain
under the provisions of this
Agreement such rents, income,
operating surplus and charges,
but upon default this permission
is terminated, as to all rents,
income, operating surplus and
charges due or collected
thereafter.
6. a)Mortgagor will establish and
maintain a reserve fund for
replacements for the Assisted
Units in a separate account
in a bank which is insured by
the Federal Deposit Insurance
Corporation, Savings
Association Insurance Fund,
or the National Credit Union
Share Insurance Fund.
Concurrently with the
effective commencement of
rental assistance payments
under the Project Rental

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form HUD-92466.1-CA (10/07)

Assistance Contract, the
Mortgagor will deposit an
amount equal to $
per month unless a different
date or amount is approved in
writing by HUD. Such fund,
whether in the form of a cash
deposit or invested in
obligations of, or fully
guaranteed as to principal
by, the United States of
America shall at all times be
subject to the control of
HUD. Disbursements from such
fund, whether for the purpose
of effecting replacement of
structural elements and
mechanical equipment of the
project for any other
purpose, may be made only
after the consent in writing
of HUD. In the event of a
default in the terms of the
mortgage, HUD may demand the
full or partial application
of the balance in such fund
to be amount due on the
mortgage debt.
b) Mortgagor will deposit the
minimum capital investment
with an escrow agent
acceptable to HUD pursuant to
Regulations.
c) Mortgagor will deposit the
operating reserve fund with
an escrow agent acceptable to
HUD pursuant to Regulations.
d) Within 60 days after the end
of each fiscal year, any
residual receipts realized
from the operation of
Assisted Units within the
mortgaged property shall be
deposited in a separate

residual receipts account.
Residual receipts shall be
under the control of HUD and
shall be disbursed only at
the discretion of HUD for
such purpose as it may
determine to be necessary or
appropriate.
7. The real property covered by the
Mortgage and this Agreement is
described in Schedule A attached
hereto.
8. Mortgagor shall not without the
written approval of the
Secretary:
a) Transfer, dispose of or
encumber any of the mortgaged
property. Any such transfer
shall be only to a person or
persons or corporation
satisfactory to and approved
by HUD, who shall, by legal
and valid instrument in
writing, to be recorded or
filed in the same recording
office in which conveyances
of the property covered by
the Mortgage are required to
be filed or recorded, duly
assume all obligations under
this Agreement and under the
Note and Mortgage;
b) Assign, transfer, dispose of,
or encumber any personal
property, including rents or
charges derived from the
Assisted Units, and shall not
disburse or pay out any funds
except as provided herein and
in the Capital Advance
Agreement.

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form HUD-92466.1-CA (10/07)

c) Remodel, reconstruct, add to,
or demolish any part of the
Assisted Units or those
portions of the mortgaged
property which have a direct
material impact on the
Assisted Units or subtract
from any real or personal
property of the project;

families, and when computing
the amount available for
disbursement, the Mortgagor
shall allocate to the
family’s balance, the
interest accrued on the
balance during the year.
Unless prohibited by State or
local law, the Mortgagor may
deduct for the family, from
the accrued interest for the
year, the administrative cost
of computing the allocation
to the family’s balance. The
amount of the administrative
cost adjustment shall not
exceed the accrued interest
allocated to the family’s
balance for the year. The
amount of the segregated,
interest-bearing account
maintained by the Mortgagor
must at all times equal the
total amount collected from
the families then in
occupancy plus any accrued
interest and less allowable
administrative cost
adjustments. The Mortgagor
must comply with any
applicable State and local
laws concerning interest
payments on security
deposits. The Mortgagor,
subject to State and local
law, may use the family’s
security deposit balance as
reimbursement for any unpaid
family contribution or other
amount, which the family owes
under the lease in accordance
with the Regulations.

d) Pay any compensation or make
any distribution of income or
other assets derived from the
Assisted Units to any of its
officers, directors,
trustees, members, partners
or stockholders;
e) Enter into any contract or
contracts for supervisory or
managerial services;
f) Require as a condition of
occupancy or leasing of any
Assisted Unit or residential
space in the project, any
consideration or deposit
other than a security deposit
in an amount equal to one
month’s total tenant payment
or $50, whichever is greater.
The family is expected to pay
the security deposit from its
own resources and other
available public or private
resources. The Mortgagor may
collect the security deposit
on an installment basis.
The security deposits must be
placed in a segregated
interest-bearing account. A
record shall be maintained of
the amount in this account
that is attributable to each
family in residence in the
project. Annually for all

g) Permit the use of the
dwelling accommodations of
the project for any purpose
except the use, which was

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form HUD-92466.1-CA (10/07)

originally intended, or
permit commercial use greater
than that originally approved
by HUD.
h) Amend its articles of
incorporation or by-laws
other than as permitted under
the terms of the articles of
incorporation approved by
HUD.
9. Mortgagor shall maintain the
mortgaged premises,
accommodations and the grounds
and equipment appurtenant
thereto, in good and substantial
repair and condition; provided
that, in the event all or any of
the buildings covered by the
Mortgage shall be destroyed or
damaged by fire or other
casualty, the money derived from
any insurance on the property
shall be applied in accordance
with the terms of the Mortgage.
10. Mortgagor shall not file any
petition in bankruptcy or
insolvency, or for a receiver,
or for reorganization or
composition, or make any
assignment for the benefit of
creditors or to a trustee for
creditors; or permit an
adjudication in bankruptcy, or
insolvency, the taking
possession of the mortgaged
property or any part thereof by
a receiver, or the seizure and
sale of the mortgaged property
or any part thereof under
judicial process or pursuant to
any power of sale and fail to
have such adverse actions set
aside within 45 days.

11. Mortgagor shall from funds other
than project income generated by
the Assisted Units immediately
satisfy or release any
mechanic’s lien, or any other
lien which attaches to the
mortgaged property or any
personal property used in the
operation of the project, and
shall dismiss or have dismissed
or vacated any receivership, or
petition in bankruptcy or
assignment for benefit of
creditors, creditors bill or
insolvency proceeding involving
the project or the mortgaged
property.
12. a) All income and other funds of
the Assisted Units shall be
segregated from and accounted
for separately from income
and funds of the Non-assisted
Units and from income and
funds of any non-project
sources, and from any funds
of any other corporations and
persons. Income and other
funds pledged to the project
shall be expended only for
the purposes of the project.
b) Mortgagor shall provide for
the management of the project
satisfactory to HUD. Any
management contract entered
into by the Mortgagor
involving the project shall
contain a provision that it
shall be subject to
termination, without penalty
and with or without cause,
upon written request by HUD
addressed to the Mortgagor
and the management agent.
Upon receipt of such request
the Mortgagor shall

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form HUD-92466.1-CA (10/07)

immediately move to terminate
the contract within a period
of not more than 60 days and
shall make arrangements
satisfactory to HUD for
continuing proper management
of the project.
c) Neither Mortgagor nor its
agents shall make any
payments for services,
supplies or materials unless
such services are actually
rendered for the project or
such supplies or materials
are delivered to the project
and are reasonably necessary
for its operation. Payments
for such services or
materials shall not exceed
the amount ordinarily paid
for such services, supplies
or materials in the area
where the services are
rendered or the supplies or
materials furnished.
d) The mortgaged property,
equipment, buildings, plans,
offices, devices, books,
apparatus, contracts,
records, documents, and all
other papers relating thereto
shall at all times be
maintained in reasonable
condition for proper audit
and subject to examination
and inspection at any
reasonable time by HUD and
its duly authorized agents.
Mortgagor and its successors,
assigns or its agents shall
retain copies of all written
contracts or other
instruments which affect the
mortgaged property, all or
any of which may be subject

to inspection and examination
by HUD or its duly authorized
agents.
e) The books and accounts of the
operations of the mortgaged
property and of the project
shall be kept in accordance
with the requirements of HUD.
f) Within 60 days following the
end of each fiscal year HUD
shall be furnished with a
complete annual financial
report based upon an
examination of the books and
records of Mortgagor prepared
in accordance with the
requirements of HUD,
certified to be an officer of
the Mortgagor and, when
required by HUD, prepared and
certified by a Certified
Public Accountant, or other
person accepted to HUD.
g) At the request of HUD, its
agents, employees, or
attorneys, the Mortgagor
shall give specific answers
to questions upon which
information is desired from
time to time relative to the
income, assets, liabilities,
contracts, operation, and
condition of the property and
the status of the Mortgage
and any other information
with respect to the Mortgagor
or the mortgaged property and
of the project which may be
requested.
h) All receipts relating to the
Assisted Units shall be
deposited in the name of the
project in a bank, whose

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form HUD-92466.1-CA (10/07)

deposits are insured by the
FDIC, Savings Association
Insurance Fund, or the
National Credit Union Share
Insurance Fund. Such funds
shall be withdrawn only in
accordance with the
provisions of this Agreement
for expenses of the Assisted
Units or their prorate share
of expenses for the project.
Any person receiving funds of
the Assisted Units shall
immediately deposit such
funds in the project bank
account and failing so to do
in violation of this
Agreement shall hold such
funds in trust. Any person
receiving property of the
project in violation of this
Agreement shall immediately
deliver such property to the
project and failing so to do
shall hold such property in
trust.
i) Mortgagor shall at all times,
if required by the laws of
the jurisdiction, maintain in
full force and effect a
license to operate the
project from the State and/or
other licensing authority.
Mortgagor shall lease any
portion of the project
attributable to the Assisted
Units only on terms approved
by HUD.
j) Mortgagor shall not collect
from tenants or occupants or
prospective tenants or
occupants of the Assisted
Units any admission fee,
founder’s fee, life-care fee,
or similar payment pursuant

to any agreement, oral or
written, whereby the
Mortgagor agrees to furnish
accommodations or services in
the project to persons making
such payments.
k) No officer, director,
trustee, member, stockholder,
partner nor authorized
representative of the
Mortgagor except for
management by sponsor or nonprofit affiliate, shall have
any financial interest in any
contractual arrangement
entered into by the Mortgagor
in connection with rendition
of services, the provision of
goods or supplies, management
of the project, procurement
of the site or other matters
whatsoever.
13. a) If project is funded under
Section 202 of the Housing
Act of l959, as amended,
Mortgagor will limit public
occupancy of the Assisted
Units in the project to
elderly families and
individuals as defined in
Section 202 of the Housing
Act of l959, and applicable
HUD Regulations. If project
is funded under Section 8ll
of the National Affordable
Housing Act of l990,
Mortgagor will limit public
occupancy of the Assisted
Units in the project to
persons with disabilities as
defined in Section 8ll of the
National Affordable Housing
Act of l990, and applicable
HUD Regulations. The
criteria governing

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form HUD-92466.1-CA (10/07)

eligibility of tenants for
admission to the Assisted
Units and the conditions of
continued occupancy shall be
in accordance with the
Project Rental Assistance
Contract.
b) Except as provided in (d)
below Mortgagor will make its
dwelling accommodations and
services available to
eligible occupants of the
Assisted Units at charges
established in accordance
with a schedule to be
approved in writing by HUD.
Such accommodations shall not
be rented for a period less
than 30 days. Commercial
facilities, if any, shall be
rented only in accordance
with a schedule of charges
fixed by the Mortgagor.
Subleasing of the Assisted
Units shall be permitted only
upon the terms and conditions
approved by HUD in writing.
c) Upon prior written approval
by the Secretary, Mortgagor
may charge to and receive
from any tenant in a Assisted
Unit such amounts as from
time to time may be mutually
agreed upon between the
tenant and the Mortgagor for
any facilities and/or
services which may be
furnished by the Mortgagor or
others to such tenant upon
request, in addition to the
facilities and services
included in the approved
Project Rental Assistance
Contract.

d) Nothing contained in this
Agreement shall be construed
to relieve the Mortgagor of
any obligations under the
Project Rental Assistance
Contract.
14. Mortgagor will comply with the
provisions of any Federal, State
or local law prohibiting
discrimination in housing on the
grounds of race, color, creed,
age, sex, handicap, familial
status or national origin,
including Title VI of the Civil
Rights Act of l964 (42 U.S.C.
2000d-1), the Fair Housing Act
(42 U.S.C. 360l), Section 504 of
the Rehabilitation Act of
l973(29 U.S.C. 794), Age
Discrimination Act of l975(42
U.S.C. 6l0l) Executive Orders
ll063 and ll246, Section 3 of
the Housing and Urban
Development Act of l968, and the
affirmative fair housing
marketing requirements at 24 CFR
part 200, subpart M.
15. No litigation seeking the
recovery of a sum in excess of
$5,000 nor any action for
specific performance or other
equitable relief shall be
instituted nor shall any claim
for a sum in excess of $5,000 be
settled or compromised by the
Mortgagor unless prior written
consent thereto has been
obtained from HUD. Such consent
may be subject to such terms and
conditions as HUD may prescribe.
16. Upon a violation of any of the
above provisions of this
Agreement by Mortgagor, HUD may
give written notice, thereof, to

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form HUD-92466.1-CA (10/07)

Mortgagor, by registered or
certified mail, addressed to the
address stated in this
Agreement, or such other address
as may subsequently, upon
appropriate written notice
thereof to HUD, be designated by
the Mortgagor as its legal
business address. If such
violation is not corrected to
the satisfaction of HUD within
30 days after the date such
notice is mailed or within such
further time as HUD determines
is necessary to correct the
violation, without further
notice HUD may declare a Default
under this Agreement effective
on the date of such declaration
of default and such default HUD
may:
a) Bring any action necessary to
enforce any rights of the
Mortgagor growing out of the
project operation, and
operate the project in
accordance with the terms of
this Agreement until such
time as HUD in its discretion
determines that the Mortgagor
is again in a position to
operate the project in
accordance with the terms of
this Agreement and in
compliance with the
requirements of the Note and
Mortgage, or require Power of
Attorney from Mortgagor to
effectuate transfer of the
project to a HUD approved
nonprofit corporation.
b) Collect all rents and charges
in connection with the
operation of the Assisted
Units and use such

collections to pay the
Mortgagor’s obligations under
this Agreement and under the
Note and Mortgage, and the
necessary expenses of
preserving the property and
operating the project.
c) Declare the whole of said
indebtedness immediately due
and payable and then proceed
with the foreclosure of the
mortgage.
d) Apply to any court, State or
Federal, for specific
performance of this
Agreement, for an injunction
against any violation of this
Agreement, for the
appointment of a receiver to
take over and operate the
property in accordance with
the terms of this Agreement,
or for such other relief as
may be appropriate, since the
injury to HUD arising from a
default under any of the
terms of this Agreement would
be irreparable and the amount
of damage would be difficult
to ascertain.
e) Require the Mortgagor to
transfer all of its right
title and interest in the
project and to all project
assets to a private forprofit or nonprofit entity
designated by HUD and, for
this purpose the Mortgagor
hereby constitutes and
appoints HUD its true and
lawful attorney-in-fact, with
full power of substitution in
the premises, to transfer the
project and all project

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form HUD-92466.1-CA (10/07)

assets to the for-profit
entity or private nonprofit
corporation designated by
HUD, if the Mortgagor fails
or refuses to make such a
transfer as required by HUD.
17. a) Mortgagor has executed the
Project Rental Assistance
Contract. The terms of the
Project Rental Assistance
Contract, when executed,
shall be incorporated by
reference into this
Regulatory Agreement.
b) A violation of the Project
Rental Assistance Contract
may be construed to
constitute a default
hereunder in the sole
discretion of HUD.
18. As used in this Agreement the
term:
a) “Assistance Contract” refers
to a Project Rental
Assistance Contract between
the Mortgagor and HUD under
Section 202 of the Housing
Act of l959 or between the
Mortgagor and HUD under
Section 8ll(d)(2) of the
National Affordable Housing
Act of l990.
b) “Assisted Units” refer to
units assisted pursuant to
Project Rental Assistance
Contract.
c) “Default” means a default
declared by HUD when a
violation of this Agreement
is not corrected to its
satisfaction within the time

allowed by this Agreement or
such further time as may be
allowed by HUD after written
notice;
d) “Distribution” means any
withdrawal or taking of cash
or other assets of the
Assisted Units other than for
payment of reasonable
expenses incident to its
construction, operation and
maintenance;
e) “Mortgage” includes “Deed of
Trust”, “Chattel Mortgage“
Declaration of Covenants” and
any other security for the
Note identified herein;
f) “Mortgaged Property” includes
property, real, personal, or
mixed, covered by the
mortgage or mortgages
securing the note held by
HUD;
g) “Mortgagee” refers to the
holder of the mortgage
identified herein, its
successors and assigns;
h) “Project” includes the
mortgaged property and all
its other assets or
whatsoever situate, used in
or owned by the business
conducted on said mortgaged
property;
i) “Residual Receipts” means
with respect to the Assisted
Units, any cash remaining
after;
l) The Payment of;

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form HUD-92466.1-CA (10/07)

i) All amounts required to
be deposited in the
reserve fund for
replacements;
ii) All obligations of the
Assisted Units other
than the mortgage held
by HUD unless funds for
payment are set aside or
deferment of payment has
been approved by HUD;
and
2) The segregation of;
i) An amount equal to the
aggregate of all special
funds required to be
maintained by the
Assisted Units;
ii) All tenant security
deposits held.
19. HUD shall not be liable for any
of its actions hereunder except
for arbitrary and capricious
conduct.
20. This instrument shall bind, and
the benefits shall inure to, the
respective parties hereto, their
legal representatives,
executors, administrators,
successors in office or
interest, and assigns, and all
owners of the mortgaged
property, so long as the
Mortgage is outstanding.
21. The invalidity of any clause,
part or provision of this
Agreement shall not affect the
validity of the remaining
portions thereof.

22. Mortgagor warrants that it has
not, and will not, execute any
other agreement with provisions
contradictory of, or in
opposition to, the provisions
hereto, and that, in any event,
the requirements of this
Agreement are paramount and
controlling as to the rights and
obligations set forth and
supersede any other requirements
in conflict therewith.
23. Mortgagor does not assume
personal liability for payments
due under the Note and mortgage
or for payments to the reserve
for replacement fund. However,
defaults or other failures to
follow program requirements may
result in limited denial of
participation or debarment from
HUD or other Federal programs.
24. Mortgagor shall have available
necessary equipment or devices
and make reasonable
accommodations to meet the needs
of persons with visual and/or
hearing impairments in
compliance with Section 504 of
the Rehabilitation Act of 1973
(29 U.S.C. 794) and 24 CFR Part
8.
25. Notwithstanding any other
provisions herein, HUD
specifically acknowledges and
agrees that the provisions of
this Agreement shall not
restrict the ability of the
Mortgagor to make debt service
payments from income or cash
derived from operations of the
Non-assisted Units or to
otherwise utilize or distribute
income or cash from the

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form HUD-92466.1-CA (10/07)

operations of the Non-assisted

Units.

United States of America
Secretary of Housing and Urban
Development (Signature)

Owner (Signature)

By (Name)

By (Name)

Official Title

Date

Official Title

Date

Page 15 of 15
form HUD-92466.1-CA (10/07)