2018-367 Housing - Community Home Trust Grant Agreement

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DocuSign Envelope ID: 5C622784- 3DD9- 4F2B- 8D53- D3D3E1D35BD4 I I� I I III II I �II III I I I RB6513 137 47158 ■ Exhibit F: STEWARDSHIP FEE Reserves collected through the Lessee's monthly Stewardship Fee are explicitly the property of Lessor, but may only be used for the capital replacement needs of the Property. Lessor must reserve the full amount of the funds for this purpose. The Stewardship Fee Reserves will be administered by Lessor, and Lessor will decide which capital replacement costs are eligible for the use of the reserves. Lessee may request release of funds, and Lessor shall release funds at its sole discretion, if the requested use is found to be necessary and in accordance with the Reserve's intended use. Specifically, the Stewardship Fee reserves will be used for the replacement of the following capital systems: ALL HOMES: • The HVAC System • The Water Heater • Interior Floor Finishes Covered UNLESS already covered by HOA: • The Roof • The Exterior Siding and Trim Services Also Included in Stewardship Fee • Routine Termite. Inspection and Continuous Termite Warranty • Pressure Washing (only if required by HOA) In communities with homeowner or condominium owner associations, a portion of the above capital costs may be covered by the owner association dues. In this case, capital items that are specifically the responsibility of the owner association are explicitly excluded from coverage under the Stewardship Fee reserves and are not included in establishing your fee calculation. Lessee's monthly Stewardship Fee will be adjusted to reflect coverage of these items under the owner association dues. Lessor will manage the above capital systems replacement needs in consultation with Lessee. System components will be replaced with products of comparable quality and features. At Lessor's discretion, during a system replacement Lessee may opt to replace components with higher rather than comparable quality products. In this case, Lessee will pay the cost difference between the comparable quality and the higher quality product. It is incumbent upon the Lessee to notify Lessor immediately of any deficiencies in the above capital systems. Damages resulting from failure to make prompt notice of deficiencies are the responsibility of Lessee. The Stewardship Fee Reserves are explicitly the property of Lessor, but may only be used for the capital replacement needs of the Property as specified in this Exhibit F. Lessee acknowledges that the Stewardship Fee Reserves are intended for the benefit of Lessee and all other CHT lessees and will not be returned to Lessee upon the sale or transfer of the Leasehold Estate.