Property Management Agreement Sample Page 7
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293.9 Operating Budget. Manager shall prepare a recommended annual operating budget
and projected rental rates for the Development for each fiscal year during the term of this
Agreement, and shall submit the same to Owner at least forty-five (45) days before the beginning
of such fiscal year. The annual operating budget shall include a schedule of recommended rents
to be charged for each housing unit, including recommended rent increases with respect to
Tenant Lease renewals and new Tenant Leases. In preparing each proposed annual operating
budget, Manager shall use its best efforts to take account of anticipated increases in real estate
taxes, utility charges and other operating costs. To the extent feasible, Manager shall support
anticipated increases in real estate taxes and utility charges with written evidence or
documentation. Proposed annual operating budgets for the Development shall be subject to
approval by Owner. Owner shall inform Manager of any changes incorporated in the approved
operating budget, and Manager shall make no expenditures in excess of the amounts set forth in
such approved operating budget for each line item of operation expense itemized, without the
prior written approval of Owner, except as permitted pursuant to Section 3.5 thereof for
emergency repairs involving manifest danger to persons or property, or required to avoid
suspension of any necessary services to the Development.
3.10 Escrow & Tax Payments. From the funds collected and deposited by Manager in
the Operating Account, Manager shall make any monthly escrow payments required under the
mortgage loans or the direction of Owner, if any, for the purpose of funding insurance, tax and
such other reserve or escrow accounts for the Development as are necessary to conform to the
Requirements. Manager promptly shall present tax bills and insurance premium notices to the
escrow agent for payment, and shall furnish Owner with evidence of timely payment of such
taxes and insurance premiums, and of timely payment of mortgage and escrow payments, if any.
3.11 Licenses and Permits. Manager shall acquire and keep in force, at Owner's
expense, all licenses and permits required for the operation of the Development as rental housing
and commercial space, if applicable.
3.12 Records and Reports. In addition to any Requirements specified in this Agreement,
Manager shall have the following responsibilities with respect to records and reports:
a) Manager shall establish and maintain a comprehensive system of records, books, and
accounts, which may include computerized systems, using the accrual method of
accounting and in a manner conforming to the directives of the Authority and
otherwise satisfactory to Owner, which is consistent with and for the duration
mandated by the Requirements. Manager agrees to grant a right of access to the
Authority, any agency providing funds to Authority, the Comptroller General of the
United States, and any of their authorized representatives of Owner, with respect to
any books, documents, papers, or other records pertinent to this Agreement in order
to make audits, examinations, excerpts, and transcripts.
b) Manager shall prepare and submit the following reports to Owner on or by the
fifteenth (10th) day after the end of each calendar month.
Sample Property Management Agreement RAD Conversion Sites
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