Agenda - 05-02-1988 - Laserfiche WebLink

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057 (j) Assist and counsel the Applicant during the construction phase of the project in matters relating to filing application for and obtaining monthly construc- tion funds, coordinating and implementing changes in construction; and obtaining the service of a qualified person or firm to certify the project costs; (k)Assist the Applicant in establishing sound management and operating procedures , including the selection of a qualified management agent, and (1) Assist and counsel the Applicant in establishing appropriate methods of keeping records and accounting procedures to meet the requirements of the Secretary. Delete any of the above duties which are inapplicable and insert any other duties which the Housing Cosultant will perform. 2. (a) The Applicant agrees to compensate the Housing Consultant by payment of a fee in the amount of 2% of the HUD Approved mortgage amount. to a maximum of$20.000.00: plus 1% of excess mortgage amount Aver 51.500.000.00 to a maximum fee of S40.00(1.00 (b)The fee provided herein shall be due and payable in the following manner: 1. An initial retainer of One Thousand dollars ($1,000.00). 2. An additional amount to bring total paid up to 60% of total fee at Initial Closing. 3. During the construction, up to seventy-five percent (75%), less any previous payments. This represents an additional fifteen percent (15%) to be paid during the construction period. Payment of this portion of the fee shall be made at the time construction draws are made and amount will be based on percentage of completion. 4. The balance remaining shall be approved for payment at Final Closing. (c) If a retainer fee in the amount of S1.000.00 , as mutually agreed to between the Applicant and the Housing Consultant, has been paid by the Applicant to the Housing Consultant, it shall become a part of the total fee due hereunder. In the event a Section 202 loan is made by the Secretary to the Applicant, the first payment of the fee, as provided in Section 2(b) of this Contract, shall be reduced by the amount of the retainer fee already paid. In the event a Section 202 loan is not made by the Secretary to the Applicant, the Applicant agrees to forfeit the retainer and the Housing Consultant agrees to accept the retainer as full compensation under this Contract. This Contract will then become null and void, and the applicant shall have no further liability for payments due hereunder. (d) The fee shall include all those expenses of the Housing Consultant which are reasonably related to providing the services for the Applicant as set forth herein, including such items as travel and telephone expenses. 3. The services of the Housing Consultant are to commence upon the execution of this Contract and the work required shall be undertaken and completed in an expeditious and business-like manner. Failure to do so. or violation of any of the covenants, agreements or stipulations of this Contract by the Housing Consultant shall give the Applicant the right to terminate this Contract provided the Housing Consultant is notified in writing five days prior to the effective termination date. If so terminated. the Applicant shall have no further liability for payments due under this Contract. The Applicant reserves the right to reduce the total amount of the fee, based on its determination of poor performance or nonperformance of any of the covenants. agreements or stipulations of this Contract by the Housing Consultant; provided, the Housing Consultant is notified in writing of the basis for this determination and the amount of the reduction. 4. The Housing Consultant shall periodically submit written narrative progress reports to the Applicant. 5.The Applicant agrees to cooperate with the Housing Consultant in carrying out the purposes of this Contract. Failure to do so, or violations of any of the covenants. agreements or stipulations of this Contract by the Applicant shall give the Housing Consultant the right to terminate this Contract provided the Applicant is notified in writing five days prior to the effective termination date. If so terminated, the Housing Consultant shall be entitled to reasonable compensation for all work done under this Contract. 6. If at any time the Applicant decides not to proceed with the housing project. the Applicant shall have the right to terminate this contract provided the Housing Consultant is notified in writing five days prior to the effective termination date. If so terminated, the Housing Consultant shall be entitled to reasonable compensation for all work done under this Contract. page 2 of 3 HUD-92531-A (EH) (3-51)