Brown Park Apartments Exhibits.pdf

06/2009 1

LEASE AGREEMENT

GENERAL INFORMATION:

A. PROHIBITION AGAINST DISCRIMINATION: The owner of this apartment complex borrowed money from the United States of America acting through the USDA, Rural Development of the United States Department of Agriculture (USDA, RD) to build the complex. The owner is therefore subject to the nondiscrimination provisions of Title VI of the Civil Rights Act of 1964, Title VIII of the Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975.

Any tenant/member who believes he or she is being discriminated against because of age, race, color, religion, sex, familial status, disability, or national origin may file a complaint in person with, or by mail to the U.S. Department of Agriculture, Director, Office of Civil Rights, 1400 Independence Avenue, SW, Washington DC 20250-9410 or to the Office of Fair Housing and Equal Opportunity, U.S. Department of Housing and Urban Development (HUD), Washington, DC 20410.

B. PARTIES TO THE LEASE: Throughout this lease there will be references to regulations and requirements of the USDA, Rural Development to which you and the owner of the property must follow and comply. The USDA, Rural Development will be referred to in this lease as the "USDA, RD." The owner of the apartment complex will be referred to as the "Owner," and the owner's agent will be called "Management." You will be called the "Resident ".

C. RENT SCHEDULES: Pursuant to the agreements between the Owner and the USDA, RD basic rental schedule and a note rate rental schedule have been established for each unit in the development. The Owner has agreed:

1. that the rental charged for the unit you will be renting shall be the basic rent or 30% of your monthly income (less allowances for certain living expenses authorized by the USDA, RD) whichever is greater, but in any event not to exceed the note rate rental of the unit; and

2. that a recertification of your income will be obtained at intervals of not less than one per year as required by the USDA, RD and that the rental charged shall be adjusted by the Owner or its agents to reflect income changes shown by the recertification.

D. ELIGIBILITY REQUIREMENTS: Eligibility for occupancy of this apartment complex is limited by federal law to certain low and/or moderate-income Residents. Occupancy may also be limited to households qualifying as elderly or handicapped according to the regulations of the USDA, RD. Prior to execution of this Lease, Resident must provide Management verifications of income and complete an application for housing. All eligibility and rent requirements are determined through the Form USDA, RD 3560-8, "Tenant Certification", as may be amended.

By executing this document, Resident acknowledges that rental rates in this Agreement are based on the Form USDA, RD 3560-8, and agrees to submit to recertification of income and eligibility at least on an annual basis. Resident agrees to cooperate with this process by

Exhibit A

06/2009 2 providing all required income information and further agrees to comply with all USDA, RD requirements. Additionally, USDA, RD and Owner have the right to further verify information provided by Resident. Failure to comply with the eligibility determination process or the provision of false or misleading information will lead to eviction and possible criminal or civil prosecution.

E. CONDITIONS OF THE AGREEMENT:

1. This lease agreement ("lease") is made this _____________ between the Owner, _____________, and the Resident, _____________.

2. In consideration of (a) Resident's representations in Resident's rental application and (b)

Resident's payment of the rent and performance of the other provisions of the lease, the Owner leases to Resident _____________ (the apartment or unit) in the apartment community commonly known as _____________, located at _____________

3. OCCUPANCY:

a. The following individuals will be occupying the apartment:

NAME AGE RELATIONSHIP

b. UNAUTHORIZED PERSONS: No person other than those listed above and their guests may reside in the apartment.

4. RENT, LATE FEES & UTILITIES:

a. RENT AND LATE FEES During the term of this lease, Resident shall pay as rent

$________ payable in monthly installments of $___ in advance on the _______ day of each month (the "due date") beginning with the commencement date of this lease. If Resident does not pay the full monthly installment of rent so that Management receives it on or before the due date, in addition to late fees, discussed below, Resident shall pay the monthly installment of rent by cash, money order, or certified check. If Resident does not pay the full monthly installment of rent on or before ten (10) days after the due date, the Resident may also be charged a LATE FEE of $_10.00___, (late fee will be an amount equal to five percent (5%) of the Resident's gross tenant contribution or $10, whichever is higher provided that such amount does not exceed the maximum rate allowed by law). Management agrees to accept rental payments without regard to any other charges owed by Resident to Management and to seek separate legal remedy for the collection of any other charges which may be owing to Management by Resident.

Late rental payments are lease violations and can lead to lease termination, at Management’s option.

b. INCREASE IN RENT DURING LEASE TERM: The basic and note rate monthly rental rates are subject to change by the Management upon approval of the change by the USDA, RD, in accordance with its regulations. When submitting a request for such a change to the USDA, RD, the Management shall provide notice of the request to the Resident. Notice may be provided by mailing and posting pursuant to the USDA, RD's

06/2009 3 regulations. Any change in basic and market monthly rental approved by the USDA, RD shall be effective as of the date stated in a notification of the approved change to the Resident, which shall be at least thirty (30) days after the date of notice to the Resident.

The monthly rental payment made by Resident may never be less than the current basic rent.

c. NO RENT INCREASE BECAUSE OF PREPAYMENT OF DEFAULT BY OWNER: No increases in Resident's contribution to rent will take place because of prepayment of the USDA, RD loan during the term of the lease. Should any federal subsidies paid to the Owner on behalf of Residents be suspended or canceled due to monetary or nonmonetary default by the Owner, the rent contribution made by the Resident (or when applicable, the payment received by Resident from Owner) shall not change over that which would have been required had the subsidy remained in place.

d. UTILITIES: The rent payment includes the following utilities: ______________.

Management agrees to provide these services. Resident has responsibility for payment of all telephone and cable TV charges inclusive of hook-up and installation) and all electric utilities. When Resident takes possession of the unit, Resident must notify _____________to place the apartment meter in tenant's name and sign a utility release for Management. Resident is responsible for paying utility charges not specifically included in the rent promptly when due. Failure to pay utility charges when due is a lease violation.

5. TERM: This lease shall be for one year, beginning the first day of _________________. If the Resident takes possession of the apartment prior to the commencement date of this lease, Resident shall pay rent at the rate and in the manner required by this lease and such possession in all other respects shall be subject to the applicable provisions of this lease.

All subsequent renewal terms shall also be for periods of one year. The rent for each subsequent period of tenancy shall be such amount as Management may lawfully establish and Resident shall continue to be subject to all provisions of this lease.

6. POSSESSION: Resident shall not be entitled to possession of the apartment until (a) Resident and Management have signed this lease and (b) the prior resident has vacated the apartment and (c) Resident has paid the rent for the first month of the lease term, the security deposit and any other lawful charge payable by Resident prior to taking possession.

If the Resident is unable to take possession at the commencement date of the lease because the apartment is not ready for occupancy or because a prior resident is holding over or because of any cause beyond Management's control, the lease term will begin on the first day of the following month provided that possession can be delivered to the Resident by that time. If possession cannot be delivered by that time, either party to this lease shall have the right to terminate this lease.

7. RETURNED CHECK CHARGE: Resident shall pay Management a $20.00 processing charge for any check of Resident's which is returned because of insufficient funds, a closed account or any other similar cause. In the event that Resident's check is returned because of non-sufficient funds, a closed account, or any other similar cause, Management shall have the right to require Resident to pay the monthly installment of rent by cash, money order, certified check or cashier's check. Such rent shall not be considered paid until it is

06/2009 4 actually received by Management.

8. USDA, RD RENTAL ASSISTANCE: If you as Resident receive USDA, RD rental assistance from the USDA, RD, you must subscribe to the following statement and your signature on this lease indicates that you have read the statement and agree to the terms of the statement:

I understand and agree that as long as I receive rental assistance, my gross monthly contribution (as determined on the latest Form USDA, RD 3560-8, which must be attached to this lease) for rent and utilities will be $ _____________ If I pay any or all utilities directly (not including telephone and/or cable TV), a utility allowance of $_______________will be deducted from my gross monthly tenant contribution and my resulting net monthly contribution will be $_______________If my net monthly tenant contribution would be less than zero, Management will pay me _____________

I also understand and agree that my monthly tenant contribution under this lease may be raised or lowered, based on changes in the household income or adjustments to income, failure to submit information necessary to certify income, changes in the number and age of persons living in the household, and on changes in basic and market monthly rental rates approved by the USDA, RD. Should I no longer receive rental assistance as a result of these changes, or the rental assistance agreement executed by the Owner and USDA, RD expires, I understand and agree that my monthly tenant contribution may be adjusted to no less than _____________ (basic rental) nor more than _____________ (note rate rental) during the remaining term of this lease, except that these rental rates may be changed by a USDA, RD approved rent change or occupancy charge change.

I understand that every effort will be made to provide rental assistance so long as I remain eligible and the rental assistance agreement between the Owner and USDA, RD remains in effect. However, should this assistance be terminated I may arrange to terminate this lease, giving proper notice to Management as set forth elsewhere in this lease.

9. USDA, RD PLAN I PROJECTS: If you as a Resident will be occupying a unit in an apartment complex financed pursuant to USDA, RD's Plan I either with or without interest credit approved on or after August 1, 1968, you must subscribe to the following statement and your signature on this lease indicates that you have read the statement and agree to the terms of the statement:

I understand and agree that my rent rate of _____________ [excludes] my cost of utilities. I further understand and agree that should I be permitted to occupy when my income exceeds maximum limits, I shall pay a 25 percent (25 %) rental rate surcharge in addition to my rental rate.

10. USDA, RD PLAN II INTEREST CREDIT: If you as Resident will be occupying a unit in an apartment complex financed pursuant to USDA, RD's Plan II Interest Credit, you must subscribe to the following statement and your signature on this lease indicates that you have read the statement and agree to the terms of the statement:

I understand and agree that my gross monthly tenant contribution as determined on the

06/2009 5 latest Form USDA, RD 3560-8, which must be attached to this lease, for rent and utilities will be _____________If I pay any or all utilities directly (not including telephone or cable TV), a utility allowance of _____________will be deducted from my gross monthly rent except that I will pay no less than the basic rent or more than the note rate rent stated below. My net monthly rent will be _____________I understand that should I receive rental subsidy benefits (interest credit) to which I am not entitled, I may be required to pay back the sums I was not owed and I agree to pay any amount of benefit to which I was not entitled. I also understand and agree that my monthly rent under this lease may be raised or lowered based on changes in the household income, failure to submit information necessary to certify income, changes in the number and age of persons living in the household and on changes in the basic and note rate rental rates approved by the USDA, RD. My rent will not, however, be less than _____________ (basic rental) no more than _____________ (note rate rental) during the term of this lease, except that these rental rates may be changed by a USDA, RD approved rent change.

11. REDETERMINATION OF RENT: Resident understands and agrees that Resident may request a redetermination of rent pursuant to the USDA, RD guidelines and standards based upon any changes in family income, family composition and other eligibility requirements. Resident must request a rent redetermination whenever permanent changes to gross household income or permanent adjustments to household income result in an increase of $100.00 or more per month or $1200 or more per year, or in a decrease of $50 or more per month or $600 or more per year. Resident must also notify Management of any changes in household size or composition.

12. RECERTIFICATION OF INCOME: Resident agrees that a recertification of income shall be made to the Management sixty (60) days prior to one year from the date of this lease provided, however, that in any event, Resident shall recertify his or her income upon the execution of any subsequent lease of the apartment. Resident understands that failure to comply with recertification requirements of the USDA, RD, or the transmission of false information regarding income or other eligibility factors can lead to eviction from the apartment complex. Furthermore, Resident agrees that if Resident fails to recertify or refuses to cooperate in the recertification process, Management may charge Resident the note rate rent and occupancy surcharge during the period of occupancy with an expired certification.

13. RENT ADJUSTMENT: Resident agrees that the monthly rental payment is subject to adjustment by Management to reflect income changes which are disclosed by any of Resident's recertification’s and Resident agrees to be bound by such adjustment.

Management agrees to give thirty (30) days written notice of any such adjustment to the Resident, stating the amount of the adjusted monthly rental which the Resident will be required to pay. If the Resident refuses cooperation with the recertification process, or delays completion of the recertification process until after thirty (30) days prior to the due date for recertification, Resident will be deemed to have waived the thirty (30) day notice period for rent adjustment. In such a case, any rent adjustment will take effect immediately upon recertification.

14. SECURITY DEPOSIT: At the same time this lease is signed, Resident will deposit _____________ (not to exceed the net Resident contribution or basic rent, whichever is

06/2009 6 greater) with Management as a security deposit. The security deposit shall be deposited in a separate account in a federally insured financial institution. Amounts held as a security deposit may be used to compensate Owner for damage and loss caused or allowed by Resident, as specified in regulations of the USDA, RD and state law. Security deposit funds may also be used to compensate Owner for unpaid rent of late fees still owing after Resident has vacated the unit. Until so used, the Security Deposit shall be held in an interest bearing account, in trust, for the Resident.

The fact that Management holds the security deposit shall not affect Management's right to obtain possession of the apartment for non-payment of rent or for any other reason permitted by law. To the extent that the security deposit is not applied in a permitted manner, it shall be returnable to the Resident. If Management assesses charges to the security deposit for damage caused by the Resident, an itemized accounting for such charges will be presented to Resident unless the Resident has abandoned the apartment and cannot be found. Under no circumstances may the security deposit be deducted from the last month's rent.

F. ELIGIBILITY FOR RESIDENCE IN APARTMENT COMPLEX:

1. ELIGIBILITY DETERMINATIONS: Eligibility determinations will be made once each year at the same time as the annual recertification of income. Resident agrees to supply all requisite information in order for Management to make a redetermination of eligibility pursuant to USDA, RD guidelines and standards, including, but not limited to, verification of income from employment and all other sources, applicant's financial capability to meet living and rental expenses, credit reports, prior landlord references, family composition including names and ages of family members, and other personal financial data. Resident and Management agree that should Resident no longer meet the eligibility requirements of the project during the term of the lease agreement, Resident will be required to vacate the unit within thirty (30) days or at the end of the term of the current lease agreement (whichever is longer) unless an exception is authorized by the USDA, RD.

2. ELIGIBILITY REQUIREMENTS: Resident shall meet eligibility requirements pursuant to USDA, RD standards, including, but not limited to:

a. Be a very low, low or moderate income person as defined by the USDA, RD.

b. Comply with the project occupancy policies established by the Owner. The project’s occupancy polices are available from Management.

(1) If household composition changes so that the project’s unit density standards are no longer met (as defined in the project’s occupancy policies), Resident agrees to move to a unit of appropriate size when one is available. Management agrees to give thirty

(30) days notice prior to the scheduled move. If Resident refuses to move or if no unit of appropriate size becomes available during the current lease term, Resident will be required to vacate the project unless an exception is authorized by the USDA, RD.

(2) Residents who hold a Letter of Priority Entitlement (LOPE) and who are temporarily occupying a unit for which they are not eligible agree to move when a suitable unit

06/2009 7 becomes available.

c. Possess the legal capacity to enter into a lease agreement.

d. Be eighteen years of age or older.

G. TERMINATION OF THE AGREEMENT:

1. TERMINATION BY MANAGEMENT: Management may terminate or refuse to renew this lease for material noncompliance with the lease or other good cause, including without limitation:

a. failure to pay rent when due under the terms of this lease.

b. failure to meet eligibility requirements of the project.

c. failure to comply with recertification requirements of the USDA, RD.

d. transmission of false information regarding income or other eligibility factors to

Management.

e. making false statements in the rental application.

f. failure to comply with all conditions and agreements contained in this lease.

g. failure to comply with occupancy rules and regulations established by Management.

h. any action or conduct of the Resident, any member of the Resident’s household, or their guests which disrupts the viability of the project by being a direct threat to the health or safety of any person, which interferes with the right of any tenant or household member to the quiet enjoyment of the premises and related project facilities, or that results in substantial physical damage causing an adverse financial effect on the project or the property of others, EXCEPT when such threat can be removed by applying a reasonable accommodation.

i. admission to, indisputable evidence of, or conviction for use, attempted use, possession, manufacture, selling, or distribution of an illegal controlled substance that:

(1) is conducted in or on the premises by the Resident or someone under the Resident's control or

(2) is allowed to happen by a household member or guest because the Resident has not taken reasonable steps to prevent or control such illegal activity; or because the Resident has not taken steps to remove the household member or guest who is conducting the illegal activity.

Innocent members of the Resident's household who are not engaged in the illegal activity, and who are not responsible for control of another household member or guest

06/2009 8 may remain in the dwelling unit if an otherwise eligible household remains or can be formed and such person signs a lease and meets USDA, RD eligibility requirements.

2. NOTICE OF VIOLATION: Prior to termination of the lease, Management must provide Resident with a Notice of Violation. The Notice of Violation will:

a. describe the violation of the lease by referring to the relevant provisions of the lease and stating the nature and frequency of the violation in order to enable the Resident to understand and correct the problem, if the problem is capable of being corrected. In those cases where the lease or occupancy agreement violation is due to the Resident's failure to pay rent, the Notice will state the dollar amount of the balance due on the rent account and the date of computation.

b. state that the Resident will be expected to correct the lease violation by a specified date which shall be no less than ten (10) days from the date of the Notice, if the problem is capable of being corrected.

c. state that the Resident may informally meet with Management to attempt to resolve the stated violation before the date of corrective action specified in the Notice, if the problem is capable of being corrected.

d. Advise the Resident that if he or she has not corrected the stated violation by the date specified, or if the problem is capable of being corrected, Management may seek to terminate the lease by instituting an action for eviction at which time the Resident may present a defense.

3. SERVICE OF NOTICE ON RESIDENT: Management shall serve the Notice by sending it first class mail to the Resident at his or her address at the project, or by serving a copy of the notice on any adult person answering the door at the dwelling unit, or if no adult responds, by placing the Notice under or through the door. Service shall not be deemed effective until either method of notice as described herein has been accomplished. The date on which the notice shall be deemed to be received by the Resident shall be the date on which the required first class letter is mailed, or the date on which the notice provided for in this paragraph is properly given, whichever method of service is used.

4. NOTICE OF TERMINATION:

a. Upon failure by the Resident to meet the condition(s) or correct the violation(s) stated in the Notice of Violation by the date specified, if the problem is capable of being corrected, the Resident will be notified that the occupancy is terminated and that eviction is being sought through the appropriate judicial process.

b. The Notice of Termination will state the basis for the termination of the Agreement, and will include the location and regular office hours during which the Resident (or counsel) may view his/her file and copy any information it contains to aid in the Resident's defense.

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c. The Notice will be given in the same manner described for the Notice of Violation except where state law requires a different procedure, in which event, the Notice will be given as required by State law.

5. EVICTION: If Management terminates the lease, Management shall have the right to repossess the apartment and cause the Resident to vacate the apartment in the manner provided by law. If Management is forced to evict Resident, Resident shall pay Management the expense incurred in obtaining possession of the apartment and all other damages sustained by Management, including attorneys' fees and costs, to the extent permitted by law and the USDA, RD's regulations.

6. PROHIBITED COLLECTION PRACTICES: Except as may occur during a legally sanctioned eviction, Management may not:

a. take property of Resident and hold it as a pledge until Resident performs any obligation which Management has determined Resident has failed to perform.

b. demand or enforce an agreement by Resident that Management may institute suit without any notice to Resident that suit has been filed.

c. evict Resident or sell Resident's possessions without a legal proceeding.

d. charge Resident for attorney's fees or other legal costs if the court finds in favor of Resident.

7. TERMINATION BY RESIDENT: Resident may terminate the lease prior to expiration of its one year term with thirty (30) days notice to Management for good cause such as moving to another location for employment, loss of job, severe illness, death of spouse or other reasons customary or mandatory in the community, or after notification by Management of intent to prepay. If Resident decides not to renew the lease upon expiration of the one year period, Resident must give notice in writing to Management at least thirty (30) days prior to lease termination.

8. REMOVAL OF PERSONAL PROPERTY AFTER TERMINATION BY RESIDENT:

Resident's tenancy will be deemed to continue even after Resident and Resident's household have personally ceased occupancy with the intent to vacate and leave the project, until such time as all personal possessions belonging to Resident household have been removed voluntarily or by legal means.

9. CONDEMNATION BY GOVERNMENT AUTHORITY: If any part of the apartment complex is condemned by any government authority, then this lease shall terminate as of the date that possession is taken by the governmental authority.

10. ACCELERATION: If Management is forced to terminate the lease or evict the tenant before the term of the lease expires, or if Resident terminates the lease before its term expires without good cause and without proper notice, Management shall have the right to accelerate the payment of the rent reserved for the balance of the term of the lease and declare said amount due and payable to Management, unless the Resident can

06/2009 10 demonstrate that: (1) the reason for leaving was unlivable conditions amounting to constructive eviction under the laws of this state or (2) Management has re-rented. Once a unit is re-rented, there is no further obligation by the Resident to pay rent unless the landlord has had to re-rent at a lower rental. Management will make reasonable efforts to re-rent at the current rate.

11. ABANDONMENT OF PROPERTY: Upon expiration of this lease where Management has refused for lawful reasons to enter into another lease with Resident, or upon lawful termination of the Lease, the Resident shall promptly remove all personal property. If Resident fails to remove personal property upon (1) expiration of the lease where Management has refused for lawful reasons to enter into another lease, or (2) lawful termination of the Lease, then Management may consider any personal property left behind as abandoned if Management notifies Resident of its intent to treat the property as abandoned and advises Resident of the date of disposal of the property. Notice by Management will be by mailing notice to the last known address of Resident and posting notice on the apartment door. Disposal of the property will be no sooner than fifteen (15) days after the date of mailing and posting the notice. Management may move the property from the apartment to another location prior to the date of disposal in order to re-rent the apartment. It is agreed by Resident that Manager shall not be responsible for damage or loss to value of such property if Management follows the above procedure.

H. USE AND MAINTENANCE OF UNIT:

1. USE OF APARTMENT:

a. Resident shall use and occupy the apartment in a clean and wholesome manner and in compliance with all applicable governmental requirements including all public health and police regulations relating to such use and occupancy to the full extent prescribed by law.

b. Resident shall not engage in any unlawful activities in the apartment or on the premises of the apartment complex, nor shall Resident permit unlawful activities on the premises.

c. Resident shall not use or operate any equipment or machinery that is harmful to the apartment or to the apartment community or that is disturbing to other tenants of the apartment community.

d. Resident may not install a washing machine, dryer or air conditioning unit without the prior written approval of Management.

e. Resident shall not employ any person or persons in or about the premises whose employment may by law, constitute or create a liability on the part of Management.

Resident shall not hire, as Resident's employee, any of Management's employees to perform any services at the apartment community.

f. Resident will advise Management of any planned absence of two weeks or more.

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2. DRUG AND ILLEGAL ACTIVITY: Resident, by executing this lease, agrees with and subscribes to the following statement:

It is understood that the use, attempted use, or possession, manufacture, sale, or distribution of an illegal controlled substance (as defined by local, State, or federal law) while in or on any part of this apartment complex or cooperative is an illegal act. It is further understood that such action is a material lease violation. Such violations (hereinafter called a drug violation) may be evidenced upon the admission to or conviction of the use, possession, manufacture, sale, or distribution of a controlled substance (as defined by local, state, or Federal law) in any local, state, or Federal court.

Management may require any Resident or other adult member of the household occupying the unit (or other adult or nonadult person outside the household who is using the unit) who commits a drug violation to vacate the leased unit permanently, within time frames set by Management and not thereafter enter upon Management's premises or the Resident's unit without the Management's prior consent as a condition for continued occupancy by members of the tenant household. Management may deny consent for entry unless the person agrees to not commit a drug violation in the future and either is actively participating in a counseling or recovery program, is complying with court orders related to a drug violation, or has completed a counseling or recovery program.

Management may require any Resident to show evidence that any nonadult member of the household occupying the unit, who committed a drug violation, agrees to not commit the drug violation in the future, and to show evidence that the person either is actively seeking or receiving assistance through a counseling or recovery program, is complying with court orders related to a drug violation, or has completed a counseling or recovery program within timeframes specified by Management as a condition for continued occupancy in the unit.

Should a further drug violation be committed by any nonadult person occupying the unit, Management may require the person to be severed from tenancy as a condition for continued occupancy by the Resident.

If a person vacating the unit, as a result of the above policies, is one of the signatories to this lease, the person shall be severed from the tenancy and the lease shall continue among any other remaining signatories and Management. Management may also, at its option, permit another adult member of the household to become a signatory to the lease.

Should any of the above provisions governing a drug violation be found to violate any of the laws of the land, the remaining enforceable provisions shall remain in effect. The provisions set out above do not supplant any rights of Residents afforded by law.

3. PRIVATE DWELLING: Resident shall occupy the apartment for private dwelling purposes only. Only those occupants listed on this lease may reside with Resident without prior approval by Management. Resident shall not give accommodation to any roomers or lodgers.

4. GUESTS: Resident may be permitted to have guests visit his or her household. However, Management reserves the right to request a recorded declaration of domicile or proof of domicile if it is suspected that the guest is an unauthorized household occupant. Such

06/2009 12 suspicion may arise whenever an adult person is making reoccurring visits or one continuous visit of 14 days and/or nights in a 45-day period without prior notification of the Management. Should the Resident or person in question not provide the requested information needed to confirm other domicile, or should the facts be sufficient to evidence domicile in the project, then Management may consider such person(s) a member of the Resident's household and may enforce any lease covenants shown to be broken and/or require recertification.

5. RULES AND REGULATIONS: Resident shall comply with all of the attached rules and regulations governing the apartment and the apartment community and shall also comply with all the Management's changes and additions to the rules and regulations that are permitted under the law of this state.

6. ASSIGNMENT OR SUBLEASE: Resident shall not assign this lease nor sublet the apartment.

7. PARKING: If an assigned parking space is provided in conjunction with the lease of the apartment, Resident may only park one operational and licensed personal passenger automobile in each place specifically designated. Parking shall be subject to all applicable provisions of the lease.

8. STORAGE OF PROPERTY: If Management should provide storage space, Resident's property shall only be stored in the space designated by Management. This storage space shall be subject to all applicable provisions of this lease.

9. HABITABILITY: It is the responsibility of Management to maintain the buildings and any common areas in a decent, safe, and sanitary condition in accordance with state and local laws and codes and USDA, RD's regulations. Management will also provide snow removal, trash removal, grounds maintenance, cleaning and upkeep of common areas and hallways at no cost to Residents.

10. QUIET ENJOYMENT: Upon Resident paying the rent and performing all of the other provisions of this lease, Management agrees that Resident shall peacefully, quietly and exclusively have, hold and enjoy the apartment during the term of this lease. Resident shall have all remedies as provided by law for Management's failure to assure the Resident's peaceful, quiet and exclusive possession of the apartment.

11. NOTICE OF INJURIES: In the event of any injuries to Resident or Resident's family, guests, or invitees or in the event of any damage to any of their property that is allegedly causes by the negligence of Management or its agents or employees, Resident shall give Management a written notice of the occurrence of the injury or damage within five (5) days of the happening thereof. The written notice shall be delivered to Management at Management's office set forth in paragraph I.1. b., or at such an address which Management shall hereafter furnish in writing to the Resident.

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12. CONDITION OF APARTMENT AND REPAIR BY RESIDENT:

a. INSPECTION: Management will provide Resident with an apartment inventory checklist and the results of an inspection completed by Management just prior to move-in by Resident. When Resident vacates the unit, Management will complete another inspection and provide Resident with a copy of the report. Resident may participate in both inspections.

b. MAINTENANCE OF APARTMENT: Resident shall not cause, allow or permit any waste, misuse or neglect of the apartment and surrounding premises and shall pay for any damages so caused. During the term of this lease, the Resident shall keep the premises in good repair to the full extent prescribed by law and at the expiration of the lease, the Resident shall return the apartment to Management in as good condition as when taken, except for reasonable use and wear. In the event repairs to the unit are necessary during the term of the lease, Resident will promptly notify Management, and Management will undertake the repairs at no cost to Resident, unless the damage is the result of negligent or willful acts of Resident or Resident's household or guests.

c. RESPONSIBILITY FOR DAMAGE CAUSED BY RESIDENT: If the Resident should fail to make required repairs and replacements, the Management or its agents shall be notified and have the right to enter the apartment, without causing or constituting a termination of this lease, and make the repairs and replacements. The Resident shall pay the lawful expenses so incurred on the next existing monthly rental installment due date.

13. ACCESS TO APARTMENT: Management may enter the apartment during Resident's possession thereof, in a manner prescribed by law, including a periodic inspection of the dwelling unit as a part of preventative maintenance programs relating to the operation of equipment, appliances, etc., and the continuing maintenance of the premises in a decent, safe and sanitary manner. Management shall have the right to enter the apartment without causing or constituting a termination of this lease in order to install a separate meter to measure the consumption of heating fuel or other utilities at the apartment in the event that Management should decide to do so. Management's entries into the premises shall be at reasonable times and in the manner prescribed by law.

14. ALTERATIONS: Resident shall make no alterations, decoration, additions or improvements in or to the apartment or to Management's equipment or fixtures in the apartment or surrounding premises. Resident shall not install any fixture or equipment without Management's prior written consent. Any such installation by Resident without Management's prior written consent may be removed by Management and Resident shall pay Management's cost thereon on the next monthly rental installment due date. In the event that Management's written consent is received, Resident shall cause such work to be done at such times and in such manner as Management shall designate in writing and Resident shall pay for same in a prompt manner. Any liens filed against the premises or the apartment community for work claimed to have been done or for materials claimed to have been furnished to Resident must be discharged by the Resident within ten (10) days thereafter. Management shall have the right, but not the obligation to pay or discharge any such lien. If Management should elect to exercise this right, Resident shall promptly pay

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Management the amount so expended. Any alterations, additions or improvements made, including all paneling, decorations, partitions, shelves, affixed carpeting and plantings shall, if Management so elects, become property of Management and remain part of the unit without payment to Resident therefore.

15. DAMAGE BY FIRE OR OTHER CASUALTY: If the premises are partially damaged by fire or other casualty but can be restored to livable condition, Management shall repair the premises with reasonable speed unless Management elects to terminate this lease by written notice to Resident. The Resident's obligation to pay rent shall be suspended during the time that the premises remain unlivable and shall recommence once repairs are substantially completed. If the premises are destroyed by fire or other casualty or if the premises cannot be restored to livable condition within a reasonable time, Management shall have the right to terminate this lease by written notice to Resident. Unless Management exercises its right to terminate, this lease shall remain in full force and effect and Resident shall remain liable for rent. Resident hereby waives the provisions of New York Real Property Law § 227 and agrees that the provisions of this section shall control in lieu thereof.

16. INSURANCE: Management agrees, at its sole expense, to obtain fire and extended coverage insurance covering the buildings in the apartment community. This fire and extended coverage insurance will not cover Resident's personal property in the apartment or on the grounds of the apartment complex. Resident SHOULD, AT RESIDENT'S SOLE

EXPENSE, OBTAIN FIRE AND EXTENDED COVERAGE INSURANCE COVERING

RESIDENT'S PERSONAL PROPERTY IN THE APARTMENT AND ON THE GROUNDS

OF THE APARTMENT COMPLEX.

17. MANAGEMENT AND OWNER LIABILITY: Neither Management nor Owner shall be responsible for damage to property of Resident entrusted to employees of Management or Owner, nor for the loss of property by fire, theft or otherwise, unless caused by intentional or negligent acts or omissions. Neither Management nor Owner shall be liable for any loss, injury, or damage to persons or property resulting from steam, gas, or electricity malfunctions, or caused by water, rain or snow, unless such damage is the result of negligent or intentional acts or omissions on the part of Management or Owner.

Management and Owner shall not be liable for damage to persons or property caused by other Residents or persons or arising from any latent defect in the building or from the presence of bugs, vermin, or insects. The use of the parking space, common areas, and other facilities or areas of the apartment complex shall be at Residents' own risk and, except to the extent of liability arising under law, neither Management nor Owner shall be liable for any loss or injury or damage to persons or property arising out of their use, unless caused by negligent or intentional acts or omissions of Management or Owner.

I. MISCELLANEOUS PROVISIONS:

1. NOTICE: Notice shall be given when called for in this lease in writing by sending first-class mail, or delivering in person, to the following addresses:

a. NOTICE TO RESIDENT:

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b. NOTICE TO MANAGEMENT:

Notice shall be deemed to be received by the Resident or by Management on the date on which first-class mail is mailed, on the date on which a copy of the notice is delivered to Resident or Management at the above addresses.

2. GRIEVANCE AND APPEAL: Resident grievances or appeals from Management's decisions shall be resolved in accordance with procedures consistent with the USDA, RD regulations covering such procedures, which are available from the Manager of the apartments and posted in the rental office.

3. MODIFICATION AND ADJUSTMENTS TO LEASE AND TO PROJECT RULES AND

REGULATIONS: Management shall have the right to modify the terms and conditions of this lease effective at the end of the initial term or subsequent lease term, by serving an appropriate notice on the Resident, together with a revised lease or addendum revising the existing lease. Notice shall be delivered to Resident either by first class mail, properly stamped and addressed or hand delivered to the premises to an adult member of the household. The date on which the notice shall be deemed to be received by the Resident shall be the date on which the first class letter is mailed or the date on which the copy of the notice is delivered to the premises. The notice must be received at least 30 days prior to the last date on which Resident has the right to terminate the occupancy without executing the revised lease. The notice must advise Resident of his or her right to appeal modifications to the lease in accordance with USDA, RD grievance and appeals procedure if the modification will result in a denial, substantial reduction, or termination of benefits being received. Modifications to rules and regulations must be noticed to Residents in the same manner.

4. SEVERABILITY: If any provision of this lease should be or become invalid, such invalidity shall not in any way affect any of the other provisions of this lease which shall continue to remain in full force and effect.

5. WAIVER: If Management should waive any provisions of the lease, it shall not be construed as a waiver of a future violation of such provision.

6. RIGHT TO MORTGAGE: Management shall have the right to subordinate this lease to any mortgage now or hereafter placed on the premises or on the apartment community.

Resident and Management agree that should the apartment community be sold to a buyer approved by USDA, RD, the lease will be transferred to the new owner. At Management's

06/2009 16 request, Resident shall execute and deliver such documents as may be required in order to accomplish the purposes of this paragraph.

7. PREPAYMENT: No tenant contribution to rent may be increased by reason of Owner's prepayment of the mortgage owing to the USDA, RD during the term of this lease.

Management may continue to increase basic and monthly rents with the prior approval of the USDA, RD.

8. LIABILITY: In the event that this lease is signed as Resident by more than one person, then liability of all persons signing shall be joint and several. In other words, all persons signing shall each be responsible for the whole amount of rent or other charges due and owing Management by reason of the provisions of this lease.

9. PROVISIONS OF STATE LAW: Management and Resident specifically agree that this lease shall not and is not intended to violate or waive any of the provisions of state law relating to fitness and habitability, security deposits, civil rights, civil rights of handicapped persons and consumer protection. If, however, any provision of this lease does, in fact, violate or waive any of the above statutes, then such provision shall be null and void. The other provisions of this lease shall continue to remain in full force and effect.

10. REMEDIES NOT EXCLUSIVE: Each and every of the rights, remedies and benefits provided by this lease shall be cumulative and shall not be exclusive of any other of said rights, remedies and benefits or of any other rights, remedies and benefits allowed by law.

11. CAPTIONS: The captions are inserted only as a matter of convenience.

12. LEASE BINDING: The provisions of this lease shall be binding upon and shall be for the benefit of Management and Resident and their respective successors in interest.

13. ADDENDA AND ATTACHMENTS TO LEASE: All addenda and attachments to this lease agreement are considered to be a part of said lease and are herein incorporated by reference.

14. LANDLORD IDENTITY: The Owner of record of this apartment complex is:

Colony Park Partnership

The person who is authorized to accept service of process in a court action and who serves as the Managing Agent, maintenance and emergency contact person is:

I ACKNOWLEDGE receipt of and, where applicable, execution of the following lease attachments:

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first written above.

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Management (Lessor) By:

______________________________ By:_________________________________ Witness Its authorized agent

Witness Resident

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DESIGNATED HANDICAPPED ACCESSIBLE UNITS ADDENDUM

The following addendum to the lease will be executed and attached to the lease where an able-bodied Resident who does not qualify for a handicapped unit is placed in a currently unused handicapped unit:

I acknowledge that I am occupying a designated handicap accessible unit. I acknowledge that priority for such units is given to those needing special physical design features. I acknowledge that I am permitted to occupy the unit until Management issues a notice that a priority application is on the waiting list and that I must move to another suitably sized vacant unit in the project. Upon receiving this notice, I agree to move at (my own or shared or project) expense within 30 calendar days to the suitably sized vacant unit within the project, if one is available. I further understand that my rental rate will change, when appropriate, to the rental rate for the unit I move to and this lease will be modified accordingly.

Resident

Management

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RESIDENT'S STATEMENT CONCERNING ELIGIBILITY ADDENDUM

Because you as Resident will reside in an apartment complex financed by the RD through its Rural Rental Housing program, you must subscribe to the following statement and your signature on this addendum to the lease indicates that you have read the statement and agree to the terms of the statement:

a. I understand that I will no longer be eligible for occupancy in this project if my income exceeds the maximum allowable adjusted income as defined periodically by the Rural Development for the State of New York.

b. I agree I must immediately notify Management when there is a change in my gross income or adjustment to income, or when there is a change in the number persons living in the household.

I understand my rent or benefits may be affected as a result of this information. I also understand that failure to report such changes may result in my losing benefits to which I may be entitled or may result in Management taking corrective action if benefits were mistakenly received.