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79-• L; Cl ~3 3 5 4
<br />fA 108N ND. R{BB.EH rkcember 1978
<br />U. S. DEPARTMENT OF HOUSING AND [:R9AN DEVELOPMENT
<br />REGULATORY AGREEMENT
<br />HOUSING FOR THE ELDERLY -NONPROFIT
<br />(Section 202 of tFte Nousing:ict of 1951,1
<br />(Section 8 Nottsin~ Assistance Payrrtenrs Contracts]
<br />Project Number 103-EH 010-NP
<br />P~mount of Mortgage Note $1, 989, 700.00 Dace May 25, 1979
<br />Mortgage Recorded: State Nebraska County Ha11 Dace May 31, 1979
<br />This Agreement entered into this 25th day of May , 197 9 ,between
<br />LUTHERAN HOMES, INC. ,
<br />whose address is Grand Island, Nebraska 68801
<br />hereinafter called Mortgagor, and the undersigned Secretazy of Housing and Urban Development herein-
<br />after called HUD.
<br />In consideration of the making of the loan by HUD and the disbursement of any pazt thereof, and
<br />in arder to comply with the requirements of the Housing Act of 1959, and the Regulations adopted by
<br />the Secretary pursuant thereto, the Mortgagor agrees Eor itself, its successors and assigns, and any owner of
<br />the mortgaged property, that in connection with the mortgaged property and the project operated thereon
<br />and so long as the loan is outstanding.
<br />(I) Mortgagor shall promptly make all payments dc, under the Note and Mortgage.
<br />(2) (a) Mortgagor will establish and maintain a special fund to be known as the revenue fund
<br />account in a bank which is a member of the Federal Deposit Insurance Corporation
<br />into which will be deposited (i) the minimum capital investment required pursuant to
<br />the Regulations and (ii) aU rentals, charges, income and revenue arising from the open-
<br />ation or ownership of the project. Expenditures shall be made from the revenue fund
<br />account only in accordance with the operating budget submitted to and approved by
<br />HUD.
<br />{3) On or before the first day of each fiscal yeaz during which the loan is outstanding Mortgagor
<br />will submit an operating budget for that fiscal year to HUD. The budget shall include all nec-
<br />essary operating expenses, current maintenance charges, expenses of reasonable upkeep and
<br />repairs, taxes and special assessment levies, prorated amounts required for insurance and all
<br />other expenses incident to the operation of the project; and shall show the expected revenues
<br />Lo pay such expenses, including annual debt service requirements and reserve fund deposits.
<br />'The expenses incurred and disbursements shall not exceed the reasonable and necessary
<br />amount thereof, and the Mortgagor will not expend any amounts or incur any obligarons in
<br />excess of the amounts approved in the annual operating budget except upon written certifi-
<br />carion by the Mortgagor to HUD that such expenses were unanticipated and are necessary
<br />and provided further, that nothing in this section shall limit the amount which the Mortgagor
<br />may expend from funds obtained from some other source than project revenues or other func
<br />required of the Mortgagor pursuant to this Agreement or the Building Laan Agreement.
<br />(4) As security for the loan, for she requued payments under this Agreement into the reserve
<br />fund for replacements, and for all ocher obligations of the Mortgagor under this Agreement,
<br />the Mortgagor hereby assigns, pledges and mongages to HUD all its rights to the income and
<br />charges of whatever sort which it may receive or be entitled to receive from the operation of
<br />the mortgaged property, subject, however, to any assignment of rents or project income in
<br />the mortgage referred to herein. Until a default occurs under this Agreement, however,
<br />permtssion is granteo to Mortgagor to collect ann retain under the provtstons of ttus Agree-
<br />ment such rents, profits, income and chazges, but upon default this permission is terminated,
<br />as to all rents, profits, income and chazges due or collected thereafter.
<br />(5; Mortgagor will establish and maintain a reserve fund for replacements by the allocation to
<br />such reserve fund in a separate account in a bank which is insured b}' the Federal Deposit
<br />Insurance Corporation, concurrently with the beginning of payments towards amortization
<br />of the principal of the Mortgage held by HUD of an amount equal to $ 665.75
<br />per month unless a different •dace or amount is approved in wziting by HUD, Such
<br />fund, whether in cite form of a cash deposit or invested in obligations of, or fully guaranteed
<br />as to principal by, the United States of America shall at all times be subject to the control of
<br />HUD. Disbursements from such fund, whether for the purpose of effecting replacement of
<br />structural elements, and mechanical equipment of the project or for any other purpose. may
<br />be made only after the consent in writing of HUD, In the event of a default in the terms of rh
<br />mortgage, HL1D may demand the fufl or partial application of the balance in such fund to the
<br />amount due on he mortgage debt. The Mortgagor additionally shall deposit into the reserve
<br />fund for replacements within 60 days after the end of each fiscal yeaz, any Residual Receipts
<br />realized from the trperation of the mortgaged property.
<br />(6) The real property covered by the mortgage and this agreement is described in Schedule A
<br />attached hereto.
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