RES 16822 - Laserfiche WebLink

D. Recapture of Federal Funds. In the event that any of the Units cease to be used in accordance with the Use Requirement prior to the expiration of the Restricted Period, any federal funds applied to that Unit (or those Units) shall, subject to the limitations set forth in the Disposition Agreement, be eligible for recapture from and/or repayment by PHA to HUD and shall be treated as federalized assets subject to all federal requirements (the "Repayment Obligation"). Notwithstanding anything to the contrary contained in this Section 3, each of the City and PHA shall have the right to enforce this Agreement; provided, however that the City and/or PHA shall be required to repay any federal funds provided by HUD and applied to the Units in the event the Units are not operated in accordance with the terms of Section 1 of this Agreement. 4. Actions Requiring the Prior Written Approval of HUD and PHA. Neither Lessee nor Owner shall convey, assign, transfer, sublease, pledge, hypothecate, encumber or otherwise dispose of the Disposition Property or any interest therein or permit the conveyance, assignment, transfer, sublease, pledge or encumbrance of the Disposition Property during the Restricted Period without the prior, jointly-executed, written approval of HUD and PHA. Notwithstanding the foregoing, Owner and/or Lessee need not obtain the prior written approval of HUD and PHA for (i) the conveyance or dedication of land for use as streets, alleys or other public rights-of-way, (ii) the granting of easements for the establishment, operation and maintenance of public utilities, and/or (iii) entering into residential agreements with tenant families. 5. Third Party Beneficiaries. HUD shall have the same enforcement rights and remedies available to the City and/or PHA under Section 3 of this Agreement, in addition to all other remedies available to HUD under statute, at law or in equity. No person or entity, other than the parties to this Agreement,has any rights or remedies under this Agreement. 6. Termination of Use Requirement. Upon the expiration of the Restricted Period, the Use Requirement shall cease and terminate, and the Disposition Property shall be deemed released of the Use Requirement and this Agreement without the requirement of any further writing between the parties herein. Notwithstanding the foregoing, upon expiration of the Restricted Period, PHA and HUD agree to execute and deliver to Owner such documents as Owner shall reasonably request releasing and confirming the release of the Use Requirement and this Agreement from title to the Disposition Property and clearing title to the Disposition Property from any cloud created by the Use Requirement or this Agreement. 7. Successors and Assigns. Recordation of this Agreement shall constitute the agreement by PHA, Lessee and Owner to be bound by and to comply with the restrictions set forth in this Agreement. The benefits and burdens of this Agreement touch and concern and run with the land and are binding upon and shall inure to the benefit of the respective successors and assigns of the parties to this Agreement. Wherever the term "Owner" is used herein such term shall be construed to include any successor owner to title to the Disposition Property (each, a "Successor Owner") and wherever the term "Lessee" is used herein such term shall be construed to include any successor lessee under the Ground Lease ("Successor Lessee"). Notwithstanding the foregoing, no party other than PHA shall exercise the rights and privileges Page 4 of 16