Multifamily property management agreement

security deposits which shall be held in special accounts in accordance with law, shall, in

accordance with the Loan Documents, be deposited in the Development Operations

Account established pursuant to the Loan Documents. Monies received by the Agent

pertaining to the Development shall in no event be commingled with the Agent’s own funds

or with funds held by the Agent for other parties, and all monies received by the Agent

pertaining to the Development shall be trust funds in the hands of the Agent. Expenses to

be paid from the Development Operations Account are those allowed by the Loan

Documents but do not include expenses which the Agent is required by this Agreement to

pay solely from its own funds. Except for emergency repairs as provided in this Agreement,

the Agent shall incur no expenses pertaining to the Development that are not normal and

customary for the successful operation of the project as represented in the annual budget for

the Development submitted to MaineHousing pursuant to the Loan Documents .

Disbursements from the Development Operations Account shall be made only in the

manner prescribed in the Loan Documents.

14. Fidelity Bond.

The Agent will furnish, at its own expense, a fidelity bond in the principal sum of

_______________________ Dollars ($__________), which is at least equal to the gross

potential income for two months and is conditioned to protect the Developer against

misapplication of Development funds by the Agent and its employees. The other terms and

conditions of the bond, and the surety thereon, will be subject to the approval of the

Developer.

15. Agent’s Compensation.

The Agent will be compensated for its services under this Agreement in the manner selected

below and is irrevocable for the term of the agreement as executed between the parties:

A monthly management fee, to be paid as an operating expense of the

Development.

Such fees will be payable monthly on the _________ day of each month in

the amount of:

(1) ________% of Collected Rents for such month,

(2) a flat fee of $___________ per unit per month.

Additional project management expenses excluded from the above fee but

reasonable and specific to the management of the project are the item(s)

which will be charged directly to the project as specified in Addendum A

(attached) of the Project Operating Budget submitted annually to

MaineHousing. This addendum is subject to the annual review and approval

of MaineHousing and, once approved, becomes an attachment to this

agreement.

Please note that if this is a project being placed in service, the Agent’s total compensation

(Management Fee plus Management charges plus Other Administrative Costs), defined as

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Multifamily property management agreement
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