R2002-192 AUTHORIZING DEVELOPMENT AGREEMENT

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� � . . ' , � :i ii�aii;, a.. .. ... . . . _ . . . . _'��,.�-.�:`.�`. ' __ ....—+.:+::�ii•'s.. provisions of this Agreement to the contrary,with respect to Third Party Costs or Overhead that are to be reimbursed monthly,DHA shall remit payment within seven(7)days of receipt of applicable funds from HUD and upon receipt from Developer of an invoice and the proper supporting documents. The Parties specifically contemplate reliance on an escrow agent to carry out the reimbursement process set out in this Section 7.3.1. DHA and Developer acknowledge that in connection with the Closing of any Component, responsibility for HUD and IHDA eligible Third Party Costs incurred by the Developer with respect thereto may be assumed by the relevant Owner Entity and the funds allocated by DHA to the reimbursement of such Third Party Costs may in the discretion of the Developer be treated as a disbursement of HOPE VI Financing to such Owner Entity,provided the foregoing shall be consistent with the Proj ect Documents for such Component. 7.4 Management Fee. The management fee (the "Management Fee") shall be determined by the DHA and the Developer in the management documents negotiated for each Component. 7.5 Allocation of Savings. Upon achieving the Stabilized Occupancy Milestone and Final Completion of Phase I,the Developer,the City and DHA will share"Verified Cost Savings" as described in this Section 7.5 and in accordance with all statutes,rules,and regulations pertaining to public and mixed-finance housing development. Verified Cost Savings shall consist of any residual funds budgeted but unspent and/or unobligated with respect to any budget line item or contingency after completion of work under that line item. 7.5.1 Limitations. Distribution of any and all Verified Cost Savings under this Section 7.5 shall comply with Safe Harbor Standards and shall only be distributed provided that the sum of such Verified Cost Savings distributions plus the total of all fees and compensation to the Developer identified in this Article 7 and any subsequent amendments shall not exceed twelve percent (12%) of Project Costs as defined in Exhibit B and provided that the amount of Verified Costs Savings distributed to the Developer shall not exceed one percent (1%) of Project Costs. 7.5.2 Allocation of Verified Cost Savings. Verified Cost Savings far Rental Units, Homeownership Units and Public Infrastructure Improvements during Phase I shall be allocated as follows and subject to the limitations on distribution to Developer described in Section 7.5.1 of this Agreement. To the extent the Verified Cost Savings are allocable to Rental Units,Developer shall receive an amount equal to five percent(5%)of any such Verified Cost Savings,which amount shall be in addition to the Development Fee but subject to the limitations described in Section 7.5.1,and the remaining ninety-five percent(95%)shall be allocated to DHA as program income.To the extent the Verified Cost Savings are allocable to Homeownership Units,Developer shall receive an amount equal to five percent (5%) of any Verified Cost Savings, which amount shall be in addition to the Development Fee but subject to the limitations described in Section 7.5.1,and the remaining ninety- five percent (95%) shall be allocated to DHA as program income. To the extent the Verified Cost Savings are allocable to Public Infrastructure Improvements as defined in Section 2.2.1,Developer and DHA shall not receive any such Verified Cost Savings and one hundred percent(100%) of all such Verified Cost Savings shall be allocated to the City for use by the City for the Revitalization,in a manner deemed most appropriate by the City,including but not limited to for the benefit of Public Infrastructure Improvements. Notwithstanding the foregoing,Developer and DHA shall make such ' Decatur Housing Authoriry Near North Impact Area Development Agreement Page 32