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HomeMy WebLinkAboutC07-030 Golden Eagle Elderly Housing CorporationFOR19 RD 3560-13 FORM APPROV ED (02-05) OMB NO 0575-0189 MULTI -FAMILY PROJECT OWNER'S/MANAGEMENT AGENT'S MANAGEMENT CERTIFICATION Owners of insured and assisted multifamily housing projects are required by administrative guidelines as found in HB -2- 3560, the Rural Housing Multi - Family Asset Management Handbook, to submit certain data for review by the Servicing Official'sapproval of a new management agent. These requirements apply to insured multifamily projects and subsidized, non-insured projects that are not financed by State Agencies or the Department of Hnt ino and Urban Develonment. Project Name - Borrower Case Number/Project Number Citv. State U Date (mm/dd/yyyy) ra , ai , -s t 1:2 - ---2-oc(v Acting on behalf of !rt(c>a,a RL(e Ic4er 6l SicLr,_ Q PC 9,A-176iQ the Project Owner (Owner), and the Management Agent (Agent), we mAe the following certifications and agreements to the United States Department of Agriculture regarding management of the above project. 1. We certify that: a. We will comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the owner in return for awarding the management contract to the agent, and that such payments will not be made in the future. b. We have executed or will execute, within 30 days after receiving the approval(s) required by paragraph b below, a Management Agreement for this project. The Agreement provides / will provide that the Management Agent will manage the project for the term and fee described below. Changes in the fee will be implemented only in accordance with Rural Development's requirements. (1) Term of Agreement:_ I (2) Fees: �t (a) PUPM Fee (Occupied Units Only) _9ACb.L>Ct__ (b) Add On Fees __ -------- (3) Calculation of Estimated Yield (See Attachment 1.) c. We will disburse management fees from project income only after: (1) We have submitted this Certification to Rural Development, (2) Rural Development has approved the Agent to manage this project; and (3) Rural Development has approved the management fee (if required)_ d. We understand that no fees may be earned or paid after Rural Development has terminated the Management Agreement. e. If Rural Development notifies me of an excessive management fee, the Agent, will within 30 days of the notice either: (l) Reduce the compensation to an amount Rural Development determines to be reasonable and (2) Require the Agent to refund to the project all excessive fees collected, or (3) Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of this decision letter on the appeal. 2. We will select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administration responsibilities in accordance with HB -2-3560 and other Rural Development regulations. We agree to: a. Comply with this project's Mortgage and Promissory Note, and Loan Agreement/Resolution or Workout Agreement. b. Comply with Rural Development Handbooks or other policy directives that relate to the management of the project. c. Comply with Rural Development requirements regarding payment and reasonableness of manaLement fees and allocation of manage- ment costs between the management fee and the project account_ d. Refrain from purchasing goods or services from entities that have identity -of -interest with us unless the costs are as low as or lower than arms -length, open -market purchases. The Agent agrees to: a. Ensure that all expenses of the project are reasonable and necessary. b. Exert reasonable effort to maximize project income and to take advantage of discounts, rebates and similar money -saving techniques. c. Obtain contracts, materials, supplies and services, including the preparation of the annual financial reports, on terms most advantageous to the project. d. Credit the project with all discounts, rebates or commissions including any sales or property tax relief granted by the State or local government received. e. Obtain the necessary verbal or written cost estimates and document the reasons for accepting other than the lowest bid. L Maintain copies of such documentation and make such documentation available for your inspection during normal business hours. g. Invest project funds that Rural Development policies require to be invested and take reasonable effort to invest other project funds unless the owner specifically directs the Agent not to invest those other funds. We certify that the types of insurance policies checked below are in force and will be maintained to the best of our ability at all times. Fidelity bonds and hazard insurance policies will name Rural Development as a co -payee in the event of toss. Note: For any box not checked, attach an explanation as to why you cannot obtain that type of insurance. Such situations should be extremely rare. a.E�delity bond or employee dishonesty coverage for (1) all principals of the Agent and; (2) all persons who participate directly or indirectly in the management and maintenance of the project and its assets, accounts and records. b,ZHazard insurance coverage required by Rural Development r gulations. c.[✓�Public liability coverage required by Rural Development regulations. The Agent agrees to: a. Furnish a response to Rural Development's supervisory visit review reports, physical inspection reports, and written inquiries regarding the projects annual financial statements or monthly accounting reports within 30 days after receipt of the report or inquiry. b. Establish and maintain the project's accounts, books and records in accordance with: (1) Rural Development's administrative requirements; (2) generally accepted accounting principles; and (3) in a condition that will facilitate financial reporting. 7. We agree that: a. All records related to the operation of the project, regardless of where they are housed, shall be considered the property of the project. b. Rural Development, the General Accountability Office (GAO), and those agencies' representatives may inspect According to the Paperit or - Reduction ,21ci ol 199.), an agency may not conduct or sponsor, anti a person is not require- to respond to, a collection at to ormation unless it displays a valid O1v113 control number. The valid OMB control number %ar this information collection is 0575-0189. The tine required to complete this information collection is estimated to average 30 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and inoonaining the data needed. andcompleting and rerueiving the collection of informonon. (1) any records which relate to the project's purchase of goods or services, (2) the records of the Owner and the Agent, and (3) the records of companies having an identity -of -interest with the owner and the agent. c. The following clause will be included in any contract entered into with an identity -of -interest individual or business for the provision of goods or services to the project: -'Upon request of Rural Development or (name of owner or Agent), (name of contractor or supplier) will make available to Rural Development, at a reasonable time and place, its records and records of identity -of -interest companies which relate to goods and services charged to the project. Records and information will be sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The owner agrees to request such records within seven (7) days of receipt of Rural Development's request to do so. 8. We certify that any Management Agreement does not contain the types of "hold harmless" clauses prohibited by Rural Development. We agree to include the following provisions in the Management Agreement and to be bound by them: a. Rural Development has the right to terminate the Management Agreement for failure to comply with the provisions of this Certification, or other good cause, 30 days after Rural Development has mailed the owner a written notice of its desire to terminate the Management Agreement. b. In the event of a default under the Mortgage, Note or Loan Agreement/Resolution, Rural Development has the right to terminate the Management Agreement immediately upon Rural Development's issuance of a notice of termination to the Owner and Agent. c. If Rural Development exercises this right of termination, 1, the Owner, agree to promptly make arrangements for providing management that is satisfactory to Rural Development. d. If there is a conflict between the Management Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. e. If the Management Agreement is terminated, I, the Agent, will give to the Owner all of the project's cash, trust accounts, investments and records within 30 days of the date the Management Agreement is terminated. 10. 1, the Owner, agree to submit a new Management Certification to Rural Development before taking any of the following actions: a. Authorizing the agent to collect a fee different from the fees specified in Paragraph I of this Certification. b. Changing the expiration date of the Management Agreement - c. Renewing the Management Agreement. d. Permitting a new Agent to operate the project. e. Permitting a new Agent to collect a fee. f. Undertaking self-management of the project. 1 1 . We agree to: a. Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds of race, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. b. When the head of household or spouse is otherwise eligible, give families with children equal consideration for admission. c. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. d. If the project receives any form of direct Federal financial assistance, comply with the provisions of Section 504 of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instructions implementing these laws. The Agent understands that these laws and regulations prohibit discrimination against applicants or tenants who are handicapped or of a certain age - e. Furnish Rural Development any reports and information required to monitor the project's compliance with Rural Development's fair housing and affirmative marketing requirements. f. Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. g. Provide minorities, women and socially and economically disadvantaged firms equal opportunity to participate in the project's procurement and contracting activities. 12. We certify that we have read and understand Rural Development's definition of "identity -of -interest" and that the statement(s) checked and mfrmation entered below are true. a. ( h o identity -of -interest exists among the Owner, the Agent and any individuals or companies that regularly do business with the project, or b. ❑Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Owner. 13. The items checked below are attached: [Idanagement Plan entity -of -Interest (IOI) Disclosure Qualification Certificate or Certification of NO Identity -of -Interest (10I) ❑ Other (Specify)_ Warnings: There are fines and imprisonment for anyone who makes false, fictitious, or fraudulent statements or entries in any matter within the jurisdiction of the Federal Government (18 U.S.C. 1001). There are fines and imprisonment for anyone who misuses rents and proceeds in violation of Rural Development regulations relative to this project. This applies when the mortgage note is in default or when the project is in a nonsurplus cash position (Section 543 of the Housing Act of 1949). Rural Development may seek a "double damages" civil remedy for the use of assets or income in violation of any Loan Agreement/Resolution or any applicable Rural Development regulations. Rural Development may seek additional civil money penalties to be paid by the mortgagor through personal funds for (1) Violation of an agreement with Rural Development to use non -project funds for certain specified purposes as a condition of receiving transfers of physical assets, flexible subsidy loan, capital improvement loan, modification of mortgage terms or workout. The penalties could be as much as the USDA Secretary's loss at foreclosure sale or sale after foreclosure. (2) Certain specific violations of the Loan Agreement/Resolution. The penalties could be as much as $50,000 per occurrence (Section 543 (b) of the Housing Act of 1949). By Project Owner: � is eL Fn/ G Li p-� arc. Co,tyia� Named e `� 1101 Signature Date (mm/ddlyyyy) By Manaa menet Agent: CAs (nnnvdd/yyyy) Fonn RD '560-30 (0? -05) Applicant[Borrower Name: Position 3 UNITED STATES DEPARTMENT OF AGRICULTURE RU RAL DEVELOPMENT RURAL HOUSING SERVICE CERTIFICATION OF NO IDENTITY OF INTEREST (IOI) project Name: f 4�'-d ldeN Est�/e Sen �o.� /Q/'.at27 rne�y�`s Location: (Tovtin, CountrN. State) �,Q Cvunc �roa, �r�l� ew—v ry , usa IDENTITY OFINTEREST STATEMENT An Identity of Interest occurs: (1) When there is any financial interest between the applicant borrower andior management entity and the supplying entity. (2) When one or more of the officers, directors, stockholders or partners of the applicant/borrower or management entity is also an officer, director, stockholder, or partner of the supplying entity. (3) When any officer, director, stockholder, or partner of the applicant/borrower and/or management entity has a 10 percent or more financial interest in the supplying entity. (4) When the supplying entity advances any funds to the applicant/borrower and/or management entity. (5) When the supplying entity provides or pays on behalf of the applicant/bon-ower and/or management entity the cost of any materials and/or services in connection with obligations underthe management plan/management agreement. (6) When the supplying entity takes stock or any interest in the applicant/borrower and/or management entity as part of the consideration to be paid them. (7) When there exists or comes into being any side deals, agreements, contracts or understandings entered into thereby altering, amending, or cancelling any of the management plan; management agreement documents, organization documents or other legal documents pertaining to the property, except as approved by the Agency. [, (please print name), hereby certify that I have read the identity of interest statement above and °understand what the USDA, Rural Development, Rural Housing Service (herein referred to as the Agency), has determined constitutes an identity of interest. I further certify that NO identity ofinterest relationship exists. 1 also hereby certify, under penalty of law'*, and with knowledge that this information may be verified, that the information submitted is true and accurate. I further understand that failure to disclose any identity, of interest to the Agency will also subject me to any administrative remedies available to the Agency. Such remedies may include suspension and debarment from participating in any Federal program. I further understand and agree that I will complete an Identity of Interest Disclosure/Qualification Certificate if at any time my circum- stances change, and an identity of interest relationship is formed. Applicandl3orro��,er. ignature , S —V ire ,) Date Applicant/Borrower Signature Date warning: Section 1001 of Title 18, United States Code provides. "Whoever, in any matter within the jurisdiction of the executive_ Iegislanve, or Judicial branch of the Government of the United States_ knowingly and willfully falsifies, conceals, or covers up by any trick_ scheme, or device a material fact, makes any materially false, fictitious, or fraudulent statement or representation, or makes or uses any false wTaing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry shall be fined under this title or imprisoned not more than 5 years, or both.-- GOLDEN EAGLE. ELDERLY HOUSING CORPORATION 700 Broadway Eagle, CO 81631 AGEMENT PLAN FOR GOLDEN EAGLE SENIOR APARTMENTS 1. The Role and Responsibility of the Owner Golden Eagle Elderly Housing Corporation, ("Owner") is a non-profit corporation, established for the purpose of providing affordable housing to senior residents, age 62 or older and disabled persons. The Project is comprised of thirty six (36) one bedroom apartments and is designated as a low income elderly housing project under Rural Development 3560 RD Project Number 05-019-481259681-010 The project is further described as follows: Name: Golden Eagle Senior Apartments 700 Broadway PO Box 850 Eagle, CO 81631 County: Eagle County It is the Policy of Golden Eagle Elderly Housing Corporation to manage Golden Eagle Senior Apartments in accordance with RD 3560 and all federal, state and local regulations. 2. Management: The Owner has secured a Management Agreement with Eagle County ("Agent"), 500 Broadway, PO Box 850, Eagle, CO 81631, to be the exclusive agent for the management of the Golden Eagle Senior Apartments. The agent is responsible for the day to day operations of the property in accordance with RD 3560 and all other applicable federal, state and local laws. Owner's role will be oversight and monitoring of Agents performance in compliance with RD 3560 and adherence to this management plan. OWNER WILL SUBMIT FORM RD 3560-13 MANAGEMENT CERTIFICATION FORM WITH THIS MANAGEMENT PLAN. All responsibilities and requirements of this certification are included as part of this Management Plan. Upon request of Rural Development, the Owner or Owner's Agent will make available to Rural Development, at a reasonable time and place, its records and records of identity -of - interest companies which relate to goods and services charged to the project. Records and information will be sufficient to permit Rural Development to determine the services performed, the dates the services were performed, the location at which the services were performed, the time consumed in providing the services, the charges made for materials, and the per unit and total charges levied for said services." The Owner agrees to request such records from agent within seven (7) days of receipt of Rural Development's request to do so. 3. Management Agreement Terms: Owner agrees to include the following provisions in the Management Agreement and to be bound by them: A. Rural Development has the right to terminate the Management Agreement for failure to comply with the provisions of this Certification, or other good cause, 30 days after Rural Development has mailed the owner a written notice of its desire to terminate the Management Agreement. B. In the event of a default under the Mortgage, Note or Loan agreement/Resolution, Rural Development has the right to terminate the Management Agreement immediately upon Rural Development's issuance of a notice of termination to the Owner and Agent. C If Rural Development exercises this right of termination, the Owner, agrees to promptly make arrangements for providing management that is satisfactory to Rural Development. D. If there is a conflict between the Management Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. E. If the Management Agreement is terminated, the Agent, will give to the Owner all of the project's cash, trust accounts, investments and records within 30 days of the date the Management Agreement is terminated. 2 F. Owner will to submit a new Management Certification to Rural Development before taking any of the following actions: Authorizing the agent to collect a fee different from the fees specified in Paragraph 1 of this Certification. 2. Changing the expiration date of the Management Agreement. 3. Renewing the Management Agreement. 4. Permitting anew Agent to operate the project. Permitting a new Agent to collect a fee. 6. Undertaking self-management of the project. G. Owner, Agent and employees will: 1. Comply with all Federal, State, or local laws prohibiting discrimination against any persons on grounds of race, color, creed, familial status, handicap, sex or national origin, including Title VI of the Civil Rights Act of 1964, Fair Housing Act, Executive Order 11063 and all regulations implementing those laws. 2. Give families with children equal consideration for admission, provided the head of household or spouse is otherwise eligible, 3. Give handicapped persons priority for subsidized units that were built and equipped specifically for the handicapped. 4. Comply with the provisions of Section 504 of the Rehabilitation Act of 1973, as amended, the Age Discrimination Act of 1975 and all regulations and administrative instructions implementing these laws in the event the project receives any form of direct Federal financial assistance. 5. Follow all laws and regulations which prohibit discrimination against applicants or tenants who are handicapped or of a certain age. 6. Furnish Rural Development any reports and information required to monitor the project's compliance with Rural Development's fair housing and affirmative marketing requirements. 7. Not discriminate against any employee, applicant for employment or contractor because of race, color, handicap, religion, sex or national origin. 3 Provide minorities, women and socially and economically disadvantaged firms equal opportunity to participate in the project's procurement and contracting activities. H. The Owner and Agent agree to operate the housing project in accordance with this management plan; The Owner and Agent will comply with Agency requirements and contract obligations, agree that no payments have been made to anyone in return for awarding the management contract to the management agent, and ensure that such payments will not be made in the future; J. The Owner and Agent will comply with Agency handbooks, notices, and other policy directives that relate to the management of the housing project; K. The Management Agreement between the borrower and the management entity complies with the requirements of RD 3560. 4. Identity of Interest Owner and Agent certify that we have read and understand Rural Development's definition of "identity -of -interest" and that the statement(s) checked and information entered below are true. A. No identity -of -interest exists among the Owner, the Agent and any individuals or companies that regularly do business with the project, or B. Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Owner. C. The items checked below are included in this Management Plan ❑ Identity -of -Interest (I01) Disclosure Qualification Certificate or ✓ Certification of NO Identity -of -Interest (IOI) ❑ Other (Specify): 5. Self -Evaluation of the Property and Develop Transition Plans A. Self -Evaluations The Owner and/or Agent will conduct annual self evaluations of the property in accordance with the following: V. 1. With the assistance of interested persons, including persons with disabilities or organizations representing disabled persons, evaluate their current policies and practices and the effects thereof; 2. After consultation with interested persons, including disabled persons or organizations representing disabled persons, modify any policies and practices that do not meet the requirements of this part; 3. After consultation with interested persons, including disabled persons or organizations representing disabled persons, take appropriate remedial steps to eliminate the effects of any discrimination that resulted from adherence to these policies and practices that do not meet the requirements of this part; and 4. Maintain a record of the self-evaluation for at least 3 years. The record will be made available for public inspection and be provided to the Agency upon request. 5. The self evaluation record will contain 1. A list of the interested persons consulted; 2. A description of areas examined and any problems identified; and 3. A description of any modifications made and any remedial steps taken. 6. Manazement Plan Requirements Owner, under the terms of a Management Agreement with Eagle County has delegated responsibilities and performance of services to its Agent for a fee. The delegated responsibilities and services include but are not limited to: A. Compliance with this project's Mortgage and Promissory Note, and Loan Agreement/ Resolution or Workout Agreement. B. Compliance with Rural Development Handbooks or other policy directives that relate to the management of the project. C. Compliance with Rural Development requirements regarding payment and reasonableness of management fees and allocation of management costs between the management fee and the project account. D. Will not purchase goods or services from entities that have identity - of -interest with Golden Eagle unless the costs are as low as or lower than arms -length, open -market purchases. E. Select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administration responsibilities in accordance with HB -2-3560 and other Rural Development regulations. F. Compliance with and acknowledge RD 3560-13, Multi -Family Project Owner's/Management Agent's Management Certification. The following items and services will be provided by Management Agent in return for the management fee set forth in Paragraph 3 of this agreement: A. Supervision by the management agent and staff (time, knowledge, and expertise) of overall operations and capital improvements of the site. B. Hiring, supervision, and termination of onsite staff C. General maintenance of project books and records (general ledger, accounts payable and receivable, payroll, etc.). Preparation and distribution of payroll for all onsite employees including the costs of preparing and submitting all appropriate tax reports and deposits, unemployment and Workers' Compensation reports, and other IRS or State -required reports. D. Preparation and submission of proposed annual budgets and negotiations for approval with RHS, HUD, or other governmental agencies and the borrowers. E. Preparation and distribution of RHS, HUD, Housing Finance Authority (HFA), or other governmental agency and normal financial reports to borrowers, RHS, HUD, HFA, or other governmental agency. F. Preparation and distribution of required year-end reports to RHS, HUD, HFA, or other governmental agency and borrowers. G. Preparation of requests for reserve withdrawals, rent increases, or other required adjustments. H. Arrangement of preparation by outside contractors of Energy Audits and Utility Allowance analysis. Implement appropriate changes. I. Preparation and implementation of Affirmative Fair Housing Marketing Plans (AFHMPs) as well as general marketing plans and efforts. Cel J. Reviews of tenant certifications and submission of monthly Rental Assistance requests, overage, and monies collected for occupancy surcharge. Submission of payments where required. K. Preparation, approval, and distribution of operating disbursements and oversight of project receipts and reconciliation of deposits. L. Overhead of management agent including: Establishment, maintenance, and control of an accounting system adequate to carry out accounting supervision responsibilities. 2. Maintenance of agent office arrangements, staff, equipment, furniture, and services necessary to communicate effectively with the properties, RHS, HUD, HFA, or other governmental agency and with the borrowers and the main office. 3. Postage expenses related to the normal responsibility for mailings to the properties, RHS, HUD, HFA, or other governmental agency, the tenants, the vendors and the borrowers. 4. . Expense of telephone and facsimile communication to the properties, tenants, RHS, HUD, HFA, or other governmental agency and the borrowers. 5. Direcf*costs of insurance (fidelity bonds covering central office staff, computer and data coverage, general liability, etc.), directly related to protection of the funds and records of the borrower. 6 Central office staff training and ongoing certifications. 7. Maintenance of all required profession and business licenses and permits. (This does not include site office permits or licenses.) 8. Insurance coverage for Agents office and operations (Property, Auto, Liability, Errors and Omissions (E&O), Casualty, Workers' Compensation, etc.). 9. Travel of Agent staff to the properties for onsite inspection, training, or supervision activities. 10. Agent bookkeeping for their own business. 11. Attendance at meetings (including travel) with tenants, borrowers, investors, and/or RHS, HUD, HFA, or other governmental agency. 7 12. Development, preparation, and revision of management plans and/or agreements. 13 Coordination of HUD vouchers with tenants including reporting to alb pertinent agencies an orrowers. -- 14. Direct the investment of project funds into required accounts. 15. Maintenance of bank accounts and monthly reconciliations. 16. Preparation, request for, and disbursement of borrower's initial operating capital (for new projects), as well as administration of annual return to borrower. 17. Account maintenance, settlement, and disbursement of security deposits. 18. Work with auditors for initial setup of audits and annually thereafter for audit preparation and review. Assistance with supplemental letters and preparation of Form P -D 3560-10, Borrower Balance Sheet, as well as other RHS, HUD, HFA, or other governmental agency reports. 19. Storage of records and adherence to records retention requirements. 20. Assistance to onsite staff with tenant relations and problems. 21. Assistance in severe actions (eviction, death, insurance loss, etc.). 22. Oversight of general and preventive maintenance procedures and policies. 23. Development and oversight of asset replacement plans. 24. Oversight of preparation of Section 504 reviews, development of plans, and implementation of improvements necessary to comply with plans and Section 504 requirements. 25. Reporting to general and limited partners and State Agencies for LIHTC compliance purposes. 26. Conduct annual self evaluations and transition plans or the property in accordance with Management Plan. N. 27. Operate the housing project in accordance with RD 3560 and the Owner's Management Plan, receipt of which is hereby acknowledged. 5. Identity of Interest: 1. The Owner and Agent will comply with Agency requirements and contract obligations, agree that no payments have been made to anyone in return for awarding the management contract to the management agent, and ensure that such payments will not be made in the future; 2. The Owner and the Agent will refrain from purchasing goods and services from entities that have identity -of -interest (IOI) relationships with the borrower or the management agent until the IOI relationship has been disclosed to the Agency and not denied by the Agency; and 3. The Owner, Agent, and supplier of goods and services agree that all records relating to the housing project are the property of the project, the Agency, and the Agency's representatives. 4. The Owner and Agent must obtain materials, supplies, utilities, and services at a reasonable cost and seek the most advantageous terms for the project. The Owner or Agent must credit any rebates, fees, proceeds, or commissions generated by transactions using project funds to the project. 5. Owner and Agent certify that we have read and understand Rural Development's definition of "identity -of -interest" and that the statement(s) checked and information entered below are true. A. No identity -of -interest exists among the Owner, the Agent and any individuals or companies that regularly do business with the project, or B. Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Owner. 7. Management Decisions and Supervision Management decisions for the Project will be made by the Board of Directors of Golden Eagle Elderly Housing Corporation in compliance with RD 3560. Board decisions will be provided to the Agent, Director of Housing, Eagle County, and Property Manager. Z The Agent, Eagle County, has extensive knowledge and expertise in Human Resources. and compliance with applicable employment laws, including equal employment opportunity requirements. Employees of Agent are required to attend orientation for benefits and county operations, including personnel policies and procedures. The Agent's supervisor for Project's day to day operations will be the Director of Housing, Eagle County. The Director of Housing will hire, train, or provide access to training, and supervise the Property Manager for the Project. Property Manager will be required to take the "STAR" training and certification with in six months of hire. Property Manager's responsibilities will be management of the Project in accordance with RD 3560, HB 2. including marketing the Project, maintaining a waiting list, selection and admission of tenants, computation of tenant rents and rental assistance payments, annual re -certification of tenants, assignment of rental assistance, enforcement of Occupancy Rules and Regulations, directing and supervising maintenance personnel, emergency management, tenant relations, rent collection, rent roll maintenance, budget development and compliance, report Project status as requested to the Board of Directors and other duties as assigned. The Property Manager is the key contact for the Agent and will make decisions regarding the day to day operations, tenant selection, tenant non-compliance of Occupancy Rules, and emergency response and report to the Director of Housing. On site staffing for the Project will include the Property Manager and a Maintenance Person. Agent's Facilities Management Department will assist maintenance person when needed. Contracted outside services will provide services on a limited and per diem basis as necessary to insure the smooth operation of the Project. 7. Property Manager Experience and Knowledge Selection of a Property Manager is based on similar experience, knowledge or the ability to learn and apply required skills under RD3560. It is most advantageous if a Property Manager comes to the Project with RD 3560 or LIHTC certification. The Property Manager is required to complete the STAR certification training. Property Manager must be able to understand the lease and the requirements set forth in the lease and apply these requirements equally to all tenants. Property Manager must be able to understand and apply the Project's Occupancy Rules equally to all residents, which includes correspondence to tenants who are not in compliance with the occupancy rules. The Property Manager must understand and practice Fair Housing Policies for applicants and tenants of the Project. Rental duties are included in the job description of the Property Manager. Agent will oversee the selection process, training for each office process and orientation to the property. 10 8. Required Agent Consultation with Owner: The Agent must consult with the Owner regarding: A. Material non compliance of any tenant which would result in eviction or non -renewal of a tenants lease. B. Purchase of items that are not included in the annual budget C. Notification of non-compliance by Rural Development D. Unique circumstances that are out of the scope of knowledge and responsibility of the agent and its employees. E The Owner will work in concert with the Agent to utilize the purchasing power of Eagle County to the benefit of the Project. This purchasing power will include, but is not limited to: Office Supplies Maintenance supplies Insurances Employee benefits. 9. Proiect Marketing The Golden Eagle Elderly Housing will market this project in compliance with Fair Housing Laws. The Project is listed on the Eagle County web site and is very visible in the community. The Eagle Senior Center is in the middle of the project grounds, so all seniors coming into the Senior Center are aware of this Project. Potential marketing strategies are to Eagle County Communities are: A. Advertise locally in the Vail Daily and the Enterprise at least 1 time. B. Develop a brochure with photos of tenants and activities and distribute to local churches, real estate offices, physicians offices, Health and Human Services for Eagle County, Hospitals, Police and Fire Department offices in Eagle County and the Senior Centers in Minturn and El Jebel. C. Create opportunities for free PR through stories and articles in the local press about the Project. The above strategies are designed to reach low income and minority persons who might not know of the Project otherwise. In cases where the applicant and/or tenant does not speak English as their first language, the Agent will locate a translator to communicate with the person. The agent will provide documents translated into Spanish, which is the most prevalent 2nd language in Eagle County. 11 The 2006 exterior renovation of the Project has brought increased interest from the community and families interested in bringing their elderly parent to Eagle. Currently, The Project is at 100% occupancy currently with 13 persons on the waiting list and more than 20 applications out to inquiries. In the event the waiting list drops to 10 persons the marketing outreach will be stepped up as outlined above to insure an adequate waiting list to maintain occupancy. A sample waiting list is attached to this Management Plan. Attachment D 10. Reasonable Accommodation, Plans and Practices: The Occupancy Rules for the Project are presented to all tenants upon lease signing. The following process for accommodation requests are included in the Occupancy Rules: #33 REASONABLE ACCOMMODATION REQUESTS It is the Policy of Golden Eagle Senior Apartments to provide reasonable accommodation for all tenants with special needs. Disabled and handicapped residents have the right to request changes in policies or procedures, or modifications to their apartment if it will afford the tenant a better living experience. The following procedures apply: A. Tenants must make requests for modifications or reasonable accommodation in writing to the Property Manager. Reasonable accommodation requests must include: 1. Accommodation and modification requested. 2. Backup verification from a third party that the modification and/or accommodation will benefit the tenant. The third party must be qualified to make that determination. Property Manager has a Form that should be used by the physician or practitioner providing the verification. 3. Property Manager will submit all requests with verification letters within two work days following receipt of such request to the Officers of the Board of Directors for their review. 4. The Officers of the Board of Directors will review the accommodation request and advise the Property Manager of their decision for approval or disapproval of the accommodation within 21 days of receipt of such request. S. Tenant will be advised in writing of The Board of Director's decision for reasonable accommodation within 2 working days of receipt of such decision. In the event the 12 accommodation is approved, Property Manager will proceed to bid out the alterations or accommodation needed to the premises. 6. Actual cost of the modification will be billed to the tenant, other than those accommodations required by law. Examples of modifications that are reasonable can include grab bars in the bathroom, ramps, visual/and or hearing enhancements, lever doors handles, etc. 7. In the event the accommodation is denied, tenants have the right to file a grievance. Grievance policies are available at the Property Manager's office. Golden Eagle Elderly Housing Corporation will reasonably provide accommodation to tenants requesting alternate equipment, should such equipment be available. Such alternate equipment would be lever handles instead of doorknobs, range with front mounted controls, removing doors within the apartment that impede mobility aids, and lever type sink faucets. Golden Eagle Elderly Housing Corporation will not withhold permission for tenants who will pay for there own reasonable accommodation, provided such accommodation is required under the above Policy for Reasonable Accommodation Requests. The Project's handicapped parking spaces are in excess of required, designated handicap parking spaces for this Project. We will relocate one of the handicapped parking spaces in the event a tenant requests a handicapped space closer to their apartment, provided the Project receives approval from the local Fire Department for such relocation. Communications with tenants and applicants is in writing. Any one who is sight impaired can request reading assistance from the Property Manager, who will provide this accommodation within a reasonable time. Hearing impaired persons, applicants and tenants can call the TDY number for information and/or request information in writing from the Property Manager. The business office for the Project is Handicap accessible including the Property Manager's office, laundry room, and lavatories. 11. Condition of Apartments The Project has developed a form for move in inspections and annual recertification inspections. This is the form which goes in the tenant file upon completion and a copy to the tenant. The Inspection worksheet Form is included as Attachment A. Tenants are walked through their apartment upon occupancy and are shown the emergency alarm system and how it works. They receive a copy of their lease, the Occupancy Rules, The Pet Addendum (if applicable) a copy of Inspection report after completion, and the Tenant Grievance Policy. 13 12. Eligibility of Applicants and Tenants The Property Manager is in charge of the waiting list and tenant selection based on RD 3560. Applicants selected for the next apartment are sent a letter describing all financial information necessary to determine eligibility to move in to the Project and given a date to meet with the Property Manager for Initial Certification. Upon the Initial Certification interview, the applicant presents all requested financial information to the Property Manager, who then compiles all the documented information on a worksheet. The financial information is totaled and those totals are then transferred to the Tenant Certification Form RD 3560-8. Once the adjusted income has been calculated Property Manager explains to the applicant how the rental rate was determined. If a subsidy is available, the rental assistance is explained. The adjusted income will determine whether the applicant will pay Basic or Note rent or an amount in between these to rental rates. Tenant signs the certification form attesting to the validity of the financial information. Files for Tenants due for recertification are reviewed and issued a notice 90 days prior to the recertification. The notice lists all financial information necessary to determine eligibility to continue occupancy and assigned a Certification Date. Tenants are also sent a notice for annual inspection to determine cleanliness and compliance with applicable Occupancy Rules. Tenant's whose inspections do not meet standards of the Project are given 30 days to correct the deficiency. Tenants provide all requested financial information for recertification and the Property Manager compiles all the information on a worksheet, and then transfers the totals to the Tenant Certification Form RD 3560-8. Once the adjusted income has been calculated Property Manager explains to the applicant how the rental rate was determined. Tenant signs the certification form attesting to the validity of the financial information. 13. Record Keeping: Completed applications received are kept in a locked file cabinet after the applicant has been added to the wait list. A fee of $35.00 is required as part of the application process. This fee covers the cost of a criminal background check, credit check and landlord check for evictions. Current tenant files containing the lease, background check, any addendums, application, current and prior certifications with supporting financial information, correspondence and contact information is also keep in a locked filing cabinet. 14 14. Rent Collection The lease agreement between the Tenant and Owner states that all rents are due by the 1St of the month and no later than the I Oh of the month or a late fee of $25.00 will be charged. There is one exception to the late fee. On occasion a Social Security check is received the third week of the month, which prevents a tenant from meeting the 10th of the month deadline. In these cases, we will accept a check by the 25th for the current month without a late fee. Tenants hand deliver rent checks or cash to the Property Manager, either in person or by dropping their payments in a secure, locked "Green Box" located in the Golden Eagle Laundry room, which is accessible before and after business hours. Property Manager records each payment on a rent roll. The rent roll specifies tenant name, rental rate, rent paid, check number and date. The rent roll also defines and breaks out security and pet deposit payments, application fees and other payments, such as repayment of unauthorized rental assistance under a separate heading. Copies of all checks are made and kept with a copy of the deposit slip. Receipts are given for all security deposits made. A deposit is then made to the operations account at the bank. Deposits into the operations account include paid rent, application fees and laundry facility income. A deposit is made to the security deposit account when there are pet deposits and security deposits. In the event an applicant includes both rent and security deposit in the same check, a request to transfer the applicable security deposit amount from the operations account to the security deposit account is sent to the finance department of the Agent, after approval from the Director of Housing. The Property Manager is responsible for collection and recording of all payments to the Project and then disseminating the rent roll and deposit documentation to the Agent's finance department. 15. Rate Changes Property Manager processes all rate change requests to Rural Development after approval of such rate change by the Board of Directors. Request for rental rate increases and changes in the utility allowance are submitted to Rural Development for review and approval 90 days prior to the beginning of the new fiscal year and in conjunction with submission of the proposed annual budget. Request for any change in rental rate or utility allowance is done in accordance with RD 3560. Tenant notices as to rental rate change and utility allowance changes are hand delivered to each resident and also posted outside the Property Management Office 60 days prior to implementation of the proposed rate changes. Notices and postings are in English and in Spanish. 15 16. Maintenance: The Project's as built plans are located at the Agent's Facilities Maintenance Department. Updated plans will be handled by the contractor and the Property Manager. The preventative and corrective maintenance of the Project is necessary to the ongoing integrity of the Project. To this end we have developed check lists for preventative maintenance and move in move out inspections. See Attachment B. It is the responsibility of the Property Manager and Maintenance staff to communicate on all aspects of the maintenance program from furnace inspection to snow removal. Golden Eagle plans for and provides an effective preventive maintenance program, repair and replacement program, in addition to managing emergency repairs and replacement as necessary. A. Snow removal Snow removal from sidewalks and parking lot will be done by the Maintenance staff person when there is a snow fall of two inches or more. Ice Melt will be put down routinely during freezing and snowy weather. Tenants each receive a small container/sprinkler of ice melt at the beginning of the winter season. Refills of ice melt are made available in a container easily accessed for all tenants. B. Move -outs An apartment will be inspected upon tenant move out. Any damage will be priced for repair and/or replacement and the tenant will be given written documentation as to charges to be deducted from the security deposit in accordance with State Landlord Tenant's laws. C. Move -ins Upon Turnover a vacated apartment requires painting and cleaning of the unit. At that time it is determined if carpeting, vinyl flooring, and stove and refrigerator are to be cleaned or replaced and then ordered for a timely delivery and installation for occupancy. Interior painting is the responsibility of the maintenance staff person. All apartments are painted the same color. D. Exterior Painting Exterior painting will be done by a commercial painting contractor when necessary. Request for Bids will be published and contract will be awarded based on meeting all criteria in the RFB. E. Maior repairs and grounds maintenance. The Maintenance Person is responsible for timely repairs on all work orders submitted by the Property Manager or tenants. Major repairs that cannot be addressed by maintenance will be contracted for with an outside vendor. The grounds maintenance will be done by the maintenance person. 16 F. Garbaize and Trash Removal. The garbage and trash removal is contracted out to the City of Eagle. Dumpsters are provided for the tenants to empty their personal trash. Garbage disposals are furnished in each apartment. The City of Eagle empties the dumpsters twice per week. Additional pickups will be added in the event two pickups become inadequate to remove the refuse. G. Common areas Each apartment has a private entrance from the outside eliminating need for hallway or entryway janitorial services. All common ground areas and the parking lot will be maintained by the maintenance staff. H. Maintenance Requests Occupancy rules, paragraph 5 states: Tenants may pick up a maintenance request in the laundry room next to the Green Box or at the Property Manager's office. TENANTS who require maintenance in their apartment must fill out a maintenance request form and drop it off at the Property Manager's Office or in the Green Box at the Golden Eagle Senior Center. Tenants must fill out a maintenance request in order to have work completed and tracked. I. Purchase orders Golden Eagle Elderly Housing does not use a purchase order system. The Property Manager has a credit card for purchases where Golden Eagle does not have an account. The invoices and charge receipts are submitted to the agency for timely payment. I Reserve funds The annual budget submitted to RD will reflect anticipated use of reserve funds for the coming year, such as appliance replacement or furnace replacement. In the event of any emergency purchases requiring reserve funds will be submitted for approval to the RD office. K. Laundry The only supplemental service provided at Golden Eagle is a laundry room located at the Golden Eagle Senior Center in the middle of the apartment complex. Golden Eagle Elderly Housing has purchased and own two coin operated washers and two coin operated dryers for use by tenants only. There is a maintenance contract with Sears to maintain these washers and dryers. The Property Manager is responsible to empty the coin boxes, record and deposit the income from these machines into the operations account. All operating instructions and warnings are posted on each machine. 17 17. Accounting Methods A. Agent uses the accrual method for accounting. The Property Manager is responsible for tenant records, collection of rent, security deposits, fees, and other income then recording and deposit of income into the appropriate account. This information is provided to agents finance officer. Agents finance officer is responsible for accounts payable, reconciliation of accounts and compilation and generation of quarterly and annual reports. The Property Manager is responsible to input the financial reports into MINC from reports generated by the finance officer. B. The 2007 budget was created specifically to be compatible with Form RD3560-7. Budgets, quarterly, and annual reports are all reported through the MINC system in compliance with RD 3560. C. There are no other properties owned by Golden Eagle Elderly Housing Corporation.) D. The annual audit is conducted by an outside firm who is not associated with the project or the agent, and their specific responsibility to perform the audit and generate a report on their findings. 18. Tenant Records Applicant files and current tenant files which include but are not limited to application, background and credit checks, landlord references, signed release of information forms, notices, certifications and supporting documentation, leases and all additional correspondence pertaining to the tenant are kept in a locked file in the Property Management Office. Property Manager maintains these files. Previous tenant records are retained in the Property Manager's office for one year and then archived at agents offices. The maintenance requests generated by the tenants are retained in the maintenance office after the work has been performed. RD will review the financial records with the Finance officer at the agents' offices and the tenant and maintenance records will be reviewed at the Property Manager's office. 19. Energy conservation measures and practices. Tenants receive updated conservation information from both the electric company, Holy Cross Energy and the gas company, Kinder Morgan. Kinder Morgan is requested annually to review every furnace and replace the filters to enhance efficient operation of the furnaces. 18 Nine buildings which comprise Golden Eagle Senior Apartments received a complete exterior renovation which was also designed to assist in energy conservation. New vinyl clad, thermal pane windows replaced aluminum single pane windows, a new layer of siding and stucco will add insulation to the exterior walls of the buildings. Installation of roof vents and a new roof will add an insulating factor to each apartment. We have addressed water conservation by reducing the number of water dependent foliages with bark. From 2007 to 2012 we will embark upon Xeriscaping of the grounds. And replace an inefficient irrigation system with a zoned system which will be a substantial savings on water costs. 20. Tenant Relations: It is the policy of Golden Eagle Elderly Housing Corporation, its Agent and staff to work cooperatively with the tenants and the tenant's association. Our representative will attend all meetings, if requested, and respect tenants' right to meet without representation from the Ownership. Golden Eagle Elderly Housing Corporation, its Agent and staff will work to create solutions through compromise with the Tenants Association, with the provision that any compromise will not be in conflict or opposition to the Occupancy Rules or regulations set forth in RD 3560. 21. Tenant Grievance Policy and Appeals Procedure A. The Tenant Grievance Policy and Appeals Procedure are given to each resident upon lease signing and acknowledgement of receipt is included in the lease. B. The Tenant Grievance Policy and Appeals Procedure are posted on a bulletin board across from the entry to the Property Manager's office. C. Copies of the Tenant Grievance Policy and Appeals Procedure are available to tenants in a display file next to the Green Box in the Golden Eagle Laundry room, accessible before and after business hours and also outside of the Property Manager's office. D Grievance and Appeals Procedures will be followed as required in RD3560.160 E. The Property Manager will present any tenant grievance filed to the Board of Directors, either by email or during a Board meeting. After consideration and discussion of the grievance, the Board will determine A response to the tenant which will be drafted and mailed certified mail, return receipt requested, or hand delivered to tenant and marked as to date and time. 19 22. Staff Training It is the Policy of Golden Eagle Elderly Housing Corporation and it's agent to train on site staff members in: A. Fair Housing Laws B. Non Discrimination and Harassment Laws C. Star Training for the Property Manager D. Additional training as necessary to be proficient in federal law and regulations and state and local laws that pertains to management of the Project. E. Agent's HR department designs and implements training in areas of team work, building relationships, leadership and other management practices in order to elevate the standards of behavior and practice of its employees. 17. Termination of leases or occupancy agreements and eviction. The Property Manager is responsible for knowledge and application of RD 3560, Occupancy Rules, Lease agreements and the eviction process. The Golden Eagle Elderly Housing Corporation's Policy is to work diligently to work out a compromise with tenants in violation of lease provisions and occupancy rules, through conversations and written notices. In the event compromise is not possible, documentation of material non compliance of the terms of the lease agreement, non payment of rent and repeat violations of the Occupancy Rules, the Property Manager will seek to terminate the lease agreement by either: A. Non -renewal of the tenants lease B. Eviction. Documentation of such violations will be the responsibility of the Property Manager. Agent's attorneys are responsible for knowing and administering notifications to be given to a tenant when termination of the lease agreement is imminent and will implement all requirements for eviction under State and Local judicial processes. 18. Insurance It is the responsibility of Agent's Financial Officer to secure and maintain all insurance coverage including fidelity insurance in accordance with Rural Development's requirements. 20 19. Management agreement. The Management Agreement between Golden Eagle Elderly Housing Corporation and Eagle County is included in this Management Plan as Attachment C. Covered under the Management agreement: A. Management compensation. B. On-site management. C. Duties and responsibilities of the on-site management staff. There will be no live -on-site manager for this Project. Both the Property Manager and Maintenance Staff are furnished Cell phones and are on call 24 hours per day. The Business Office Hours are 9:30 to 4:30, Monday through Friday, except Holidays approved by the Agent. At all times there will be notice posted in the Laundry Room and on the bulletin board across from the Property Managers Office. The information stated on the notice includes: A. Business office telephone number B. Regular business office hours C. 24 hour emergency on call phone numbers of: 1. The Property Manager, cell phone and home phone 2. The Maintenance Person, cell phone and home phone 3. Health Emergency, 911 Management Plan approved by: By Project Owner: GOLDEN EAGLE ELDERLY HOUSING CORPORATION RHS Project Number 05-019-481259681-010 Name/Title: President of the Board of Directors Signature Date: Management Plan accepted by: By Management Agent: EAGLE COUNTY GOVERNMENT Name/Title: E e unty Commissioner Signature Date 21 Management P1an.2006.doc GOLDEN EAGLE SENIOR APARTMENTS Interior Physical Standards ❑ Move in inpection ❑ Annual recert inspection Date Resident Apt. # General condition Tenant Maintenance Good Fair Poor Good Fair Poor FLOORING Carpet is dean and without excessive wear Carpet seams are secure and stretched prop" Resilient flooring is clean and unstained Resilient flooring is free of tears and breaks WALLS, FLOORS, AND CEILINGS Walls and ceilings are free of holes Wallboard joints are secure and free of cracks Walls and ceilings are free of water leak/damage Walls and ceilings are free of material that may fall WINDOWS AND DOORS All doors are free of holes and metal doors free of rust Door hardware is secure, unbroken and easily operates Deadbolts are in place and secure Windows ran be easily opened and dosed Window interiors are free of moisture damage Windows are free of bent blinds or tom curtains ELECTRICAL, AIR-CONDITIONING, HEATING Units are free of bare wires, uncovered outlets Switches working property without evidence of arching Light fixtures are u broken and operable Heating and cooling modes function property/thermostat WATER HEATERS Water heaters operate properly, do not leak Provide adequate hot water Water heaters are supplied with temperature pressure relief valves SMOKE ALARMS AND CARBON MONOXIDE ALARMS Located according to local code Operating properly EMERGENCY CALL SYSTEM Operating property Switches located in bathroom and bedroom Switches fumished with pull cord and the down position is ON INSECTNERMIN INFESTATION Units free of visible signs of insects or rodents Units free of signs of insect or rodent damage RANGE AND RANGE HOOD Housing is sound and finish is free of chips, damage , rust Electrical connections secure and insulated All range elements operate Doors and drawers secure Control knobs and handles in place and secure Range hood fan and light are operable Range top and burner pans dean and free from chips Oven is leaned and free from build up REFRIGERATOR Housing is sound and finish is free of chips, damage, rust Cooler and freezer operating satisfactorily Shelves and door container secure and free from rust Door gaskets in good condition and functioning properly Refrigerator is dean and free of spoiled food APARTMENT UNITS SINKS Finish is free of chips, damage, rust Sink is free of cracks, breaks and leaks Strainer in good condition and in place Fittings working properly and free of leaks Plumbing connections under cabinet are free of warps Sink secured to wall, counter or vanity top Sinks is dean and surrounding area is dean INSPECTION WORKSHEET ATTACHMENT A GOLDEN EAGLE SENIOR APARTMENTS Interior Physical Standards ❑ Move in inpection ❑ Annual recert inspection Date Resident Apt. # General condition Tenant Maintenance Good Fair Poor = Good Fair Poor CABINETS Cabinets and vanities are secure to wall and floor Cabinet faces, doors and drawers fronts not broken/peeling All drawers and doors are in place and working properly Counter tops secure and free of bum marks or chips Shelves in place, fastened securely and free of warps Bottoms under sink are free of evidence of warps, breaks and Counters, vanities and back splashes are properly caulked WATER CLOSET Stool is free of cracks, breaks, and is securely fastened to the floor Seal is secure and in good condition Tank is free of cracks, breaks and leaks Lit fits and is in good condition Flushing mechanism is in good condition and operates properly Water closet base at floor is properly caulked Water closet and bowl are clean and free from BATHTUB AND SHOWER STALL Finish is free of chips, damage and signs of rust Tub and shower are free of cracks breaks and leaks Strainer is in good condition and in place Walls and floors of bathtub are properly caulked\ Top and sides of shower stall are properly caulked Bathtub and shower walls are clean and have no scum build up ACCESS LIVING ROOM The living room furnishings allow easy access through the room The living room is free of debris and paper accumulations BEDROOM The path to the bedroom is dear and accessible to EMT's There are no obstacles or furniture blocking the path There is easy access to the bed and pull cord BATHROOM The bathroom is accessible The bathroom pull cord is accessible KITCHEN Dishes are clean and put away 77 Food is not laying out to spoil Garbage has been disposed of property Counter tops are free of clutter CLOSETS Flammable items are not stored Closets are neat and orderly NOTES: Resident Date Golden Eagle Apts. Date m yw Z W W �x Q N CL w Q U Z oQ zw w� W z -� �w w� zz ww o� J W 0 a N W H J Z W W H = � U Q CO) aw aU �Z oa zw w~ cn Z 12 0w w� zz ww o� J W 0 nom. ATTACHMENT C MANAGEMENT AGREEMENT FOR GOLDEN EAGLE ELDERLY HOUSING CORPORATION This Management Agreement, between Golden Eagle Elderly Housing Corporation (the "Owner") and Eagle County (the "Agent") will become effective and in full force on January 16, 2007, under the terms and conditions set forth herein. This agreement is contingent upon written approval of the US Department of Agriculture, Rural Development. 1. General terms: A. Appointment and Acceptance. The Owner appoints the Agent as the exclusive management agent for the property described as in paragraph B of this agreement, and the Agent accepts the appointment, subject to the terms and conditions set forth in this agreement. B. Proiect Description. The property to be managed by the Agent under this agreement (the "Project") is a housing development consisting of the land, buildings, and other improvements which make up RD Project Number 05-019-481259681-010 The project is further described as follows: Name: Golden Eagle Senior Apartments 700 Broadway PO Box 850 Eagle, CO 81631 County: Eagle County The Project is comprised of thirty six (36) one bedroom apartments and is designated as a low income elderly housing project under Rural Development 3560. 2. Definitions As used in this agreement: A. "RD" means the United States Department of Agriculture, Rural Development division, including any successor agencies. B. "Principle parties" means the Owner and the Agent C. "Owner" means Borrower D. "Agent" as used in this agreement, means the person or business entity, including employees at the Agent's office and the project site, engaged in the task of providing management of an RD financed Multi Family Housing project under a contractual arrangement with the Owner. E. "Agency" means Rural Development (RD) 3. Management Agreement Term Agent will manage the project for the term and fee described below. Changes in the fee will be implemented only in accordance with Rural Development's requirements. A. Term of Agreement: 3 years B. Fees: $ 7300.00 annual fee for 2007, and subsequent increases as needed to cover Agent's costs under this agreement, provided that the increases will not exceed Rural Developments Maximum Management Fee for the State of Colorado, known as PUPM calculated according to RD 3650. 4. Management Agreement Fee The management fee, as described above is to compensate the Agent for providing oversight to the project including, but not limited to the following: A. Overseeing compliance with National, state, and local laws and regulations; B. Establishing strong project management policies and procedures; and C. Overseeing the implementation laws, regulations, policies, and procedures through the supervision of onsite staff. Owner and Agent agree: A. To comply with Rural Development requirements and contract obligations, and agree that no payments have been made to the owner in return for awarding the management contract to the agent, and that such payments will not be made in the future. B. Disbursement of management fees from project income will be made only after: (1) We have submitted this Certification to Rural Development; (2) Rural Development has approved the Agent to manage this project; and (3) Rural Development has approved the management fee (if required). C. We understand that no fees may be earned or paid should the Owner or Rural Development terminate this Management Agreement. In the event Rural Development notifies Owner or Agent of an excessive management fee, the Agent, will within 30 days of the notice either: A. Reduce the compensation to an amount Rural Development determines to be reasonable and, B. Require the Agent to refund to the project all excessive fees collected, or C. Appeal the decision and abide by the results of the appeal process, making any required reductions and refunds within 30 days after the date of this decision letter on the appeal. 5. Identity of Interest: The Owner and Agent will comply with Agency requirements and contract obligations, agree that no payments have been made to anyone in return for awarding the management contract to the management agent, and ensure that such payments will not be made in the future; 2. The Owner and the Agent will refrain from purchasing goods and services from entities that have identity -of -interest (IOI) relationships with the borrower or the management agent until the IOI relationship has been disclosed to the Agency and not denied by the Agency; and 3. The Owner, Agent, and supplier of goods and services agree that all records relating to the housing project are the property of the project, the Agency, and the Agency's representatives. 4. The Owner and Agent must obtain materials, supplies, utilities, and services at a reasonable cost and seek the most advantageous terms for the project. The Owner or Agent must credit any rebates, fees, proceeds, or commissions generated by transactions using project funds to the project. 5. Owner and Agent certify that we have read and understand Rural Development's definition of "identity -of -interest" and that the statement(s) checked and information entered below are true. A. No identity -of -interest exists among the Owner, the Agent and any individuals or companies that regularly do business with the project, or B. Only the individuals and companies listed on Form RD 3560-31 have an identity -of -interest with the Owner. 6. Termination of this Management Agreement by Rural Development Rural Development has the right to terminate the Management Agreement for failure to comply with the provisions of this Certification, or other good cause, 30 days after Rural Development has mailed the owner a written notice of its desire to terminate the Management Agreement. In the event of a default under the Mortgage, Note or Loan a agreement/Resolution, Rural Development has the right to terminate the Management Agreement immediately upon Rural Development's issuance of a notice of termination to the Owner and Agent. 2. If Rural Development exercises this right of termination, I, the Owner, agree to promptly make arrangements for providing management that is satisfactory to Rural Development. 3. If there is a conflict between the Management Agreement and Rural Development's rights and requirements, Rural Development's rights and requirements will prevail. 4. If the Management Agreement is terminated, I, the Agent, will turn over all of the project's cash, trust accounts, investments and records to the Owner within 30 days of the date the Management Agreement is terminated. 7. Management Agent Agreements Management Agent agrees to: A. Comply with this project's Mortgage and Promissory Note, and Loan Agreement/ Resolution or Workout Agreement. B. Comply with Rural Development Handbooks or other policy directives that relate to the management of the project. C. Comply with Rural Development requirements regarding payment and reasonableness of management fees and allocation of management costs between the management fee and the project account. D. Refrain from purchasing goods or services from entities that have identity - of -interest with us unless the costs are as low as or lower than arms -length, open -market purchases. E. Select and admit tenants, compute tenant rents and assistance payments, recertify tenants and carry out other subsidy contract administration responsibilities in accordance with HB -2-3560 and other Rural Development regulations. F. Comply with and acknowledge RD 3560-13, Multi -Family Project Owner's/Management Agent's Management Certification. 8. Management Agent Services The following items and services will be provided by Management Agent in return for the management fee set forth in Paragraph 3 of this agreement: A. Supervision by the management agent and staff (time, knowledge, and expertise) of overall operations and capital improvements of the site. B. Hiring, supervision, and termination of onsite staff C. General maintenance of project books and records (general ledger, accounts payable and receivable, payroll, etc.). Preparation and distribution of payroll for all onsite employees including the costs of preparing and submitting all appropriate tax reports and deposits, unemployment and Workers' Compensation reports, and other IRS or state -required reports. D. Preparation and submission of proposed annual budgets and negotiations for approval with RHS, HUD, or other governmental agencies and the borrowers. E. Preparation and distribution of RHS, HUD, Housing Finance Authority (HFA), or other governmental agency and normal financial reports to borrowers, RHS, HUD, HFA, or other governmental agency. F. Preparation and distribution of required year-end reports to RHS, HUD, HFA, or other governmental agency and borrowers. G. Preparation of requests for reserve withdrawals, rent increases, or other required adjustments. H. Arrangement of preparation by outside contractors of Energy Audits and Utility Allowance analysis. Implementation of appropriate changes. I. Preparation and implementation of Affirmative Fair Housing Marketing Plans (AFHMPs) as well as general marketing plans and efforts. J. Reviews of tenant certifications and submission of monthly Rental Assistance requests, overage, and monies collected for occupancy surcharge. Submission of payments where required. K. Preparation, approval, and distribution of operating disbursements and oversight of project receipts and reconciliation of deposits. L. Overhead of management agent including: Establishment, maintenance, and control of an accounting system adequate to carry out accounting supervision responsibilities. 2. Maintenance of agent office arrangements, staff, equipment, furniture, and services necessary to communicate effectively with the properties, RHS, HUD, HFA, or other governmental agency and with the borrowers and the main office. 3. Postage expenses related to the normal responsibility for mailings to the properties, RHS, HUD, HFA, or other governmental agency, the tenants, the vendors and the borrowers. 4. Expense of telephone and facsimile communication to the properties, tenants, RHS, HUD, HFA, or other governmental agency and the borrowers. 5. Direct costs of insurance (fidelity bonds covering central office staff, computer and data coverage, general liability, etc.), directly related to protection of the funds and records of the borrower. 6 Central office staff training and ongoing certifications. 7. Maintenance of all required profession and business licenses and permits. (This does not include site office permits or licenses.) 8. Insurance coverage for Agents office and operations (Property, Auto, Liability, Errors and Omissions (E&O), Casualty, Workers' Compensation, etc.). 9. Travel of Agent staff to the properties for onsite inspection, training, or supervision activities. 10. Agent bookkeeping for their own business. 11. Attendance at meetings (including travel) with tenants, borrowers, investors, and/or RHS, HUD, HFA, or other governmental agency. 12. Development, preparation, and revision of management plans and/or agreements. 13 Coordination of HUD vouchers with tenants including reporting to all pertinent agencies and borrowers. 14. Direct the investment of project funds into required accounts. 15. Maintenance of bank accounts and monthly reconciliations. 16. Preparation, request for, and disbursement of borrower's initial operating capital (for new projects), as well as administration of annual return to borrower. 17. Account maintenance, settlement, and disbursement of security deposits. 18. Work with auditors for initial setup of audits and annually thereafter for audit preparation and review. Assistance with supplemental letters and preparation of Form RD 3560-10, Borrower Balance Sheet, as well as other RHS, HUD, HFA, or other governmental agency reports. 19. Storage of records and adherence to records retention equirements. 20. Assistance to onsite staff with tenant relations and problems. 21. Assistance in severe actions (eviction, death, insurance loss, etc.). 22. Oversight of general and preventive maintenance procedures and policies. 23. Development and oversight of asset replacement plans. 24. Oversight of preparation of Section 504 reviews, development of plans, and implementation of improvements necessary to comply with plans and Section 504 requirements. 25. Reporting to general and limited partners and State Agencies for LIHTC compliance purposes. 26. Conduct annual self evaluations and transition plans or the property in accordance with Management Plan. 27. operate the housing project in accordance with RD 3560 and the Owner's Management Plan, receipt of which is hereby acknowledged. Owner and Agent mutually agree to the terms and responsibilities set forth in this Management agreement. Owner: Golden Eagle Elderly Housing Corporation President, Bo6rd of Directors Date Agent: Eag Commi sinner 1V--1 Date na 87 . 3 7z' it zg Eli 12 g a . 1 -E M .1 o AT sus 1 Ise. 51. E -t2 Z' s SIM . IR 9 gi 9 ZA inm�Ii nen i i�'�iu �mn ■� n■nm■e� n m � nw�■�e ima�en n�n��■n �■� i��� u� �o� n nono�■no �� �IIIIII�I�I iw�wlAl�� I� I� I�IIu �II�II��IIIIII ��IIIIIIII 1811 IIlull I ! !..... Illd ll�l�llllllllll�I ��� ne�s��nsnnnn�nne�n �1 11■Illlillllllllilll 11111 �1 11■111�1' ��IYI■1�11�1��11� �1� �1■1■1■1191I�1■11�11■191�1== 111 111101■1111111■111 11111 mm■n�l