NEW HAMPSHIRE HOUSING FINANCE AUTHORITY
MANAGEMENT AGREEMENT
THIS AGREEMENT is made this _______________
day of _______________________
, 20______
between _______________________________________________________________ (the OWNER)
AND _________________________________________________________________ (the AGENT).
1. Appointment and Acceptance: The OWNER appoints the AGENT as exclusive agent for the
management of the property described in Section 2 of this AGREEMENT, and the AGENT accepts
the appointment, subject to the terms and conditions set forth in the AGREEMENT.
2. Description of Project: The property to be managed by the AGENT under this AGREEMENT (the
"PROJECT") is a housing development consisting of the land, buildings, and other improvements.
Name: ____________________________________________________________________________
Location: City or Town: _________________________________________County:
_______
State:
_______________
Number of Dwelling Units:
_________
3. Definitions: As used in this AGREEMENT:
a) "Mortgagee" means New Hampshire Housing Finance Authority (NHHFA). b)
"Principal Parties" means the OWNER and the AGENT.
c) "Consenting Party" means New Hampshire Housing Finance Authority (NHHFA).
4. NHHFA Requirements: The OWNER has or will enter into a Regulatory Agreement. In performing
its duties under this MANAGEMENT AGREEMENT, the AGENT will comply with all pertinent
requirements of the Regulatory Agreement and the directives of NHHFA. In the event of any
instructions by the OWNER which is in contravention of such requirements, the latter will prevail.
5. Management Plan: Attached hereto as Exhibit "A" and hereby incorporated herein, is a copy of the
Management Plan for the PROJECT, which provides a comprehensive and detailed description of the
policies and procedures to be followed in the management of the project. In many of its provisions,
this AGREEMENT briefly defines the nature of the
AGENT'S obligations with the intention that reference be made to the Management Plan for more
detailed policies and procedures. Accordingly, the OWNER and the AGENT will comply with all
applicable provisions of the Management Plan, regardless of whether specific reference is made
thereto in any particular provision of this AGREEMENT.
6. Basic Information: As soon as possible, the OWNER will furnish the AGENT with a complete set
of plans and specifications and copies of all guarantees and warranties pertinent to construction,
fixtures, and equipment. With the aid of this information and inspection by competent personnel, the
AGENT will thoroughly familiarize itself with the character, location, construction, layout, plan, and
operation of the PROJECT, and especially the electrical, heating, plumbing, air conditioning and
ventilating systems, the elevators, and all other mechanical equipment.
7. Liaison with Architect and General Contractor: During the planning and construction phases, the
AGENT will maintain direct liaison with the architect and general contractor, in order to coordinate
management concerns with the design and construction of the PROJECT, and to facilitate completion
of any work and the AGENT'S responsibilities for arranging facilities and services pursuant to Section
13 of this AGREEMENT. The AGENT will keep the OWNER advised of all significant matters in
this connection.
8. Marketing: The AGENT will carry out the marketing in accordance with the approved Resident
Selection Plan, Marketing Plan and Affirmative Fair Housing Marketing Plan as attached.
Subsequent to initial rent-up, advertising expenses will be paid out of the Project Operations
Account, as Project Expenses or from a marketing reserve.
9. Rentals: The AGENT will offer for rent and will rent the dwelling units in the PROJECT.
Incident hereto, the following provisions will apply:
a) The AGENT will make preparations for initial rent-ups, as described in the Management
Plan and Resident Selection Plan and Marketing Plan, the AGENT shall formulate renting
plans and policies and advertise the premises or portions thereof, prepare and secure signs,
publicity releases, brochures, layouts, circulars, and other materials necessary for the proper
discharge of its responsibilities hereunder. Such expenses shall be paid out of the allowable funds
from the Marketing Reserve, if applicable.
b) The AGENT will show the premises to prospective tenants.
c) The AGENT will follow the tenant selection policy described in the Management Plan. d) The
AGENT will take and process applications for rentals. If an application is rejected,
the applicant will be told the reason for rejection, and the rejected application, with reason for
rejection noted thereon, will be kept on file for three (3) years. A current list of prospective
tenants will be maintained.
e) The AGENT will prepare all dwelling leases, parking permits, and will execute the same in its
name, identified hereon as AGENT for the OWNER. All leases and lease terms will be in a form
prescribed by the NHHFA and will comply with the pertinent provisions of the Regulatory
Agreement, Housing Assistance Payments Contract (if applicable), and the directives of NHHFA.
f) The AGENT will anticipate needs for rental increases and alert the OWNER to this requirement.
The AGENT will furnish the necessary documentation and information and upon approval by the
OWNER will submit a formal request to NHHFA for necessary rent increase. Failure to promptly
meet this requirement will be considered a breach of this AGREEMENT.
g) The OWNER will furnish the AGENT with rent and income schedules, as from time to time
approved by NHHFA, showing contract rents as appropriate for dwelling units, and other charges
for facilities and services, and income data pertinent to determination of tenant's eligibility and
tenant rents. In no event shall such rents and charges be exceeded.
h) The AGENT will counsel all prospective tenants regarding eligibility and will prepare and verify
eligibility certifications and recertification in accordance with the Regulatory Agreement and the
directives of NHHFA. The AGENT shall obtain evidence sustaining the information given on the
tenant's certifications and recertifications of income and
retain the evidence in its files for a period of three (3) years. If recertification reveals a change in
income whereby a tenant becomes eligible for a lower rent, or is required to pay a higher rent, the
AGENT shall make such adjustment; provided however, that no dwelling rent shall be more than
contract rent.
i) The AGENT will collect, deposit, and disburse security deposits, in accordance with the terms of
each tenant's lease. The amount of the security deposit for residential units will be in accordance
with State Law. Security deposits will be deposited by the AGENT in an interest bearing
account, segregated form all other accounts and funds, with a bank or savings and loan
association or credit union organized under the laws of the State of New
Hampshire and approved by the OWNER, whose deposits are insured by an agency of the United
States Government. This account will be carried in the AGENT'S name and designated of record
as ___________________________________________________________________________
SECURITY DEPOSIT ACCOUNT. The AGENT shall cause the amount in the security deposit
account to equal or exceed at all times the aggregate of all outstanding obligations of the OWNER
with respect to security deposits. All actions taken by the AGENT related to the collection,
maintenance, payment of interest and forfeiture of security deposits shall be in accordance with
New Hampshire law and the directives of NHHFA.
10. Collection of Rents and Other Receipts: The AGENT will collect when due, all rents, charges
and other amounts receivable on the OWNER'S account in connection with the management and
operation of the PROJECT. Such receipts (except for tenant's security
deposits, which will be handled as specified in Subsection 9 (i) above), will be deposited in an account,
separate from all other accounts, and funds, with a bank approved by the OWNER, whose deposits are
insured by an AGENCY of the United States Government. This account will be carried in the
AGENT'S name and designated of record as _____________________________________________
___________________________________________________
OPERATIONS BANK ACCOUNT.
11. Enforcement of Leases: The AGENT will use its best efforts to secure full compliance by each
tenant with the terms of his or her lease. Voluntary compliance will be emphasized, and the AGENT,
utilizing the services of local social service agencies when available, will counsel tenants and make
referrals to community agencies in cases of financial hardship or under circumstances deemed
appropriate by the AGENT, to the end that involuntary termination of tenancies may be avoided to the
maximum extent consisted with sound management of the PROJECT. Nevertheless, and subject to
pertinent procedures prescribed in the Management Plan, the AGENT may lawfully terminate any
tenancy when, in the AGENT'S judgment, sufficient cause (including, but no limited to, non-payment
of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the
AGENT is authorized to consult with legal counsel to be approved by the OWNER, to bring actions
for eviction and to execute notices to vacate and judicial pleadings incident to such actions;
provided, however, that the AGENT will keep the OWNER informed of such actions and will follow
such instructions as the OWNER'S may prescribe for the conduct of any action.
Subject to the Owner's approval, attorney's fees and other necessary costs incurred will be paid out
of the Project Operations Account as Project Expenses.
12. Maintenance and Repair: The AGENT will cause the PROJECT to be maintained and repaired in
accordance with the Management Plan and local codes, and in a condition at all times acceptable to the
OWNER and NHHFA, including but not limited to cleaning, painting, decorating, plumbing, heating,
roofing, carpentry, grounds care, and such other maintenance and repair work as may be necessary,
subject to any limitations imposed by the OWNER in addition to those contained herein. Incident,
hereto, the following provisions will apply:
a) Special attention will be given to preventive maintenance and to the greatest extent
feasible, the services of regular maintenance employees will be used.
b) Subject to the OWNER'S prior approval the AGENT will contract with qualified independent
contractors for the maintenance and repair of air-conditioning systems and elevators and for
extraordinary repairs beyond the capability of regular maintenance employees.
c) The AGENT will systematically and promptly receive and investigate all service requests from
tenants, take such action thereon as may be justified, and will keep records of the same.
Emergency requests will be received and serviced on a twenty-four (24) hour basis. Complaints of
a serious nature will be reported to the OWNER after investigation.
d) The AGENT is authorized to purchase all materials, equipment, tools, appliances, supplies and
services necessary to the proper maintenance and repair at ______________________________”
as an expense of the PROJECT.
e) Notwithstanding any of the foregoing provisions, the prior approval of the OWNER will be
required for any expenditure which exceeds $_________________________________ in any
one instance for labor, materials, or otherwise in connection with the maintenance and repair of
the PROJECT, except for recurring repairs involving manifest danger to persons or property, or
required to avoid suspension of any necessary service. In latter event, the AGENT will notify the
OWNER of the fact as promptly as possible.
f) The AGENT shall take such action as may be necessary to comply promptly with any and all
statutes, ordinances, regulations, orders or other requirements affecting the PROJECT, whether
imposed by Federal, State, or local authority; provided, however, that the
AGENT shall not take such action so long as the OWNER is consenting, or has affirmed its
intention to contest, the same. Each party shall promptly notify the other in writing of all notices
of government requirements received by that party.
13. Utilities and Services: In accordance with the Management Plan, the AGENT will make
arrangements for water, electricity, gas, fuel oil, sewage and trash disposal, vermin extermination,
decorating, laundry facilities, and telephone service. Subject to the OWNER'S prior approval, the
AGENT will make such contracts as may be necessary to secure such utilities and services.
14. Employees: Exhibit "B" of the AGREEMENT prescribes the number, qualifications and duties of the
personnel to be regularly employed in the management of the PROJECT, including a Resident
Manager (if applicable), Social Services Director (if applicable), and maintenance, bookkeeping,
clerical, and other managerial personnel. All such personnel shall be the employees of the AGENT
and not the OWNER, and will be hired, paid, supervised,
and discharged by the AGENT.
a) The OWNER will reimburse the AGENT for compensation including fringe benefits payable to
the maintenance employees and managerial personnel (except supervisory staff, i.e., occupancy
maintenance and regional supervisors) who perform front line management tasks, as prescribed
in the Management Plan, and for all Federal, State, and local taxes and assessments (including
workmen's compensation, etc.) incident to the employment of such personnel. Such
reimbursements, subject to the OWNER'S approval, will be paid out of the Project Operations
Account and will be treated as project expenses. The rental value of any dwelling unit furnished
rent-free to the Resident Manager or Superintendent will not be considered a part of his/her
compensation, but will instead be treated as a cost borne by the OWNER. For the purpose of
this section, costs associated with front line management tasks are chargeable to the Project
Operations Account regardless of whether the staff works out of the AGENT'S office or at the
PROJECT site. Front line tasks include, but are not limited to, taking applications, screening
applicants, certifying and recertifying tenants, maintaining the project and positive control over
project income and expenses.
b) The AGENT will establish and follow an employment policy which affords residents of the
PROJECT opportunities for employment in the management and operation of the PROJECT.
c) To the greatest extent feasible, the services of regular maintenance and repair employees shall be
used in the PROJECT. However, the AGENT shall engage qualified independent contractors for
exterminating services, maintenance and repair of air-conditioning systems and extraordinary
repairs beyond the capability of regular maintenance employees.
15. Budgets: Annual operating budgets for the AGENT will be approved by the OWNER.
Except as permitted under Subsection 12 (c) above, annual disbursements for each type of operating
expenses itemized in the budget will not exceed the amount authorized by the approved budget.
Subsequent to the initial year of occupancy, the AGENT will prepare a recommended operating
budget for each fiscal year beginning during the term of this AGREEMENT, and will submit the
same to the OWNER at least forty-five to sixty days before the beginning of the fiscal year. The
OWNER will promptly inform the AGENT of changes, if any, to be incorporated in the approved
budget and the AGENT will keep the OWNER informed of any anticipated deviation from the
receipts of disbursements stated in the approved budget. Thirty (30) days prior to the start of the
propertys fiscal year, the budget on a NHHFA budget form, will be sent to NHHFA for NHHFA
approval.
16. Records and Reports: In addition to any other requirements, specified in the Management Plan or
other provisions of the AGREEMENT, the AGENT will have the following responsibilities with
respect to records and reports.
a) The AGENT will establish and maintain a comprehensive system of records, books and accounts
in a manner conforming to the directives of NHHFA and otherwise satisfactory to the OWNER.
All records, books and accounts will be subject to the examination at reasonable hours by an
authorized representative of the OWNER or NHHFA.
b) With respect to each fiscal year ending during the term of this AGREEMENT, the AGENT will
cause an annual financial report to be prepared by a Certified Public Accountant or other person
acceptable to the OWNER or NHHFA, based upon the preparers examination of the books and
records of the OWNER and the AGENT. The report will be prepared in accordance with the
directives of NHHFA, will be certified by the preparer and AGENT, and will be submitted to the
OWNER within sixty (60) days after the end of the fiscal year, for the OWNER'S further
certification and submission to NHHFA. Compensation for the preparer's services will be paid
out of the Project Operations Account as an expense of the PROJECT.
c) The AGENT will prepare quarterly (if applicable), as required in the Regulatory Agreement,
reports comparing actual and budgeted figures for receipts and disbursements, and will submit each
such report to the OWNER and NHHFA within thirty (30) days after the end of the quarter
covered.
d) The AGENT will furnish such information (including operating occupancy reports) as may be
requested by the OWNER or NHHFA from time to time with respect to the financial, physical or
operational condition of the PROJECT. If a management firm utilizes a central office accounting
system and/or computer system, subject to the OWNER'S approval, a portion of these costs may
be charged to the Project Operations Account as an operating expense. The costs, however,
should equate to no more than the actual costs of having a bookkeeper present on-site. If a
management firm has an in- house computer operation, the costs chargeable to the project may
not exceed the costs incurred if an on-line service company were utilized.
e) Monthly, the AGENT will furnish the OWNER with an itemized list of all delinquent rental
accounts.
f) The AGENT will prepare, during the PROJECT'S initial twelve (12) months of occupancy, a
monthly report showing the total actual figures for receipts and disbursements (Monthly Operating
Summary), and will submit each such report to the OWNER and NHHFA within fifteen (15) days
after the end of each month covered. Such reports shall include the gross potential rental income
and month end balance of the accounts receivable and accounts payable account.
If, after the PROJECT reaches sustaining occupancy (95%), and the rental collections fall below
operating expenses for a sustained period of sixty (60) days, the AGENT will immediately send
written notification of the same to NHHFA.
g) The said books, records and accounts shall be kept at the principal office of the AGENT.
The OWNER and its duly authorized representatives shall have the right to examine and make
copies of the same at all reasonable times.
h) Except as otherwise provided in this AGREEMENT, all management overhead expenses will be
borne by the AGENT out of his/her own funds and will not be treated as PROJECT expenses.
17. Fidelity Bond: The AGENT will furnish, at its own expense, a fidelity bond in the principal sum of
$ ______________________________, which is at least equal to the gross potential income for two
(2) months and is conditioned to protect the OWNER and NHHFA against misapplication of
PROJECT 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 OWNER.
18. Bids, Discounts, Rebates, etc.: The AGENT will obtain contracts, materials, supplies, utilities and
services on the most advantageous terms of the PROJECT, and is authorized to solicit bids, either
formal or informal, for those items which can be obtained from more than one source. The AGENT
will secure and credit to the OWNER all discounts, rebates or commissions obtainable with respect to
purchases, service contracts and all of the transactions on the OWNER'S behalf.
19. Social Service Program: The AGENT will be responsible to the OWNER for coordinating, scheduling
and supervising the social services program described in the Management Plan (if applicable).
20. Tenant-Management Relations: The AGENT will encourage and assist residents of the PROJECT
in forming and maintaining representative organizations to promote their common interests, and will
maintain good-faith communication with such organizations to the end that problems affecting the
PROJECT and its residents may be avoided or solved on the basis of mutual self-interest. The extent
of such services by the AGENT shall be mutually determined by the OWNER and the AGENT.
21. Insurance: The OWNER will inform the AGENT of insurance to be carried with respect to the
PROJECT and its operations, and the AGENT will cause such insurance to be place and kept in effect
at all times. The AGENT will forward all bills for premiums to NHHFA to be paid out of the
PROJECT'S Insurance Escrow Account, and treated as an expense of the PROJECT. All insurance
will be placed with such companies, on such conditions, in such amounts, and with such beneficial
interests appearing thereon as shall be acceptable to the OWNER and the NHHFA, and shall be
otherwise in conformity with the mortgage; provided that the same will include public liability
coverage, with the AGENT designated as one of the insured, in amounts acceptable to the AGENT as
well as the OWNER and NHHFA. The AGENT will investigate and furnish the OWNER with full
reports of all accidents, claims and potential claims for damage relating to the PROJECT, and will
cooperate with the OWNER'S insurers in connection therewith.
22. Compliance with Governmental Orders: The AGENT will take such action as may be necessary
to comply promptly with any and all governmental orders or of the requirements affecting the
PROJECT, whether imposed by the Federal, State, County or Municipal authority, subject however,
to the limitation stated in Subsection 12 (f) above with respect to repairs. Nevertheless, the AGENT
shall take no such action so long as the OWNER is contesting, or has affirmed its intention to contest
any such order or requirement. The AGENT will notify the OWNER in writing of all notices of such
orders or other requirements, within seventy-two (72) hours of the time of their receipt.
23. Non-Discrimination: In the performance of its obligations under this AGREEMENT, the AGENT
will comply with the provisions of any Federal, State, or local law prohibiting discrimination in
housing on the grounds of race, color, religion, national origin, sex, age, disability, sexual orientation,
marital status, familial status, or gender identity, including Title VI of the Civil Rights Act of 1964
(Public Law 88-352.78 Stat. 241), all requirements imposed by or pursuant to the Regulations of the
Secretary (24 CFR, Subtitle a, Part 1) issued pursuant to the Title; regulations issued pursuant to
Executive Order 11063, and Title VIII of the Civil Rights Act of 1968, Fair Housing Amendments Act
and 504 of the Rehabilitation Act of 1973. In addition, the AGENT shall comply with all state and
local laws prohibiting discrimination in housing. Failure or refusal to comply with any such provisions
shall be considered a breach of this AGREEMENT and proper basis for NHHFA to take any corrective
action it may deem necessary including, but not limited to, the refusal to consent to future contracts of
any kind with which the AGENT or its shareholders, trustees or beneficiaries are identified.
24. Agent's Compensation: The AGENT will be compensated for its services under this AGREEMENT by
monthly fees, to be paid out of the Project Operations Account and treated as PROJECT expenses. Such
fees will be payable on the day of each month. Each
such monthly fee will be an amount equal to _____________________________% of the rental
collections or $ ____________________
sources from other than rent, with the exception of restricted
interest income, collected during the month.
25. Term of Agreement: This AGREEMENT shall be in effect for a period of ___________ year(s),
beginning on the _________ day of __________________________________________, 20 ,
subject however to the following conditions:
a) This AGREEMENT shall not be binding until endorsed by NHHFA.
b) This AGREEMENT may be terminated by either Principal Party as of the end of any calendar
month; provided that at least thirty (30) days advance written notice thereof is given to the
Consenting Party.
c) In the event that a petition in bankruptcy is filed by or against either of the Principal Parties, or
in the event that either makes the assignment for the benefit of creditors or takes advantage of
an insolvency act, the other party may terminate this AGREEMENT
without notice to the other, provided that prompt notice of such termination is given to the
Consenting Party.
d) It is expressly understood and agreed by and between the Principal Parties that NHHFA shall have
the right to terminate this AGREEMENT at the end of any calendar month, or thirty (30) days
advance written notice to each of the Principal Parties, except that in the event of default by the
OWNER, NHHFA may terminate this AGREEMENT immediately upon the issuance of a notice
of cancellation to each of the Principal Parties. It is further understood and agreed by the Principal
Parties that NHHFA shall not be liable for any losses or other damages incurred by the Principal
Parties as a result of any action taken pursuant to this paragraph.
e) Upon termination of this AGREEMENT for any reason, the AGENT shall:
1. Remit to the OWNER, within five (5) working days after such termination, all monies, in the
Project Operations Account and Security Deposit Account;
2. Deliver to the OWNER all unpaid bills, outstanding leases, contracts and other
documents pertaining to the PROJECT;
3. Notify each tenant to make rent payments to the OWNER or the OWNER'S designee;
and
4. Submit to the OWNER any financial statements required by NHHFA. After the parties have
accounted to each other with respect to all matters outstanding as of the date of termination,
the OWNER shall furnish the AGENT with security, in form and principal amount
reasonably satisfactory to the AGENT, against any obligations or liabilities which the
AGENT may have incurred on behalf of the OWNER hereunder.
f) This AGREEMENT shall automatically renew from year to year if no action is taken by the
OWNER or the AGENT.
26. Interpretative Provisions:
a) At all times, this AGREEMENT will be subject and subordinate to all rights of the NHHFA and
will inure to the benefit of and constitute a binding obligation upon the Principal Parties and their
respective successors and assignees. To the extent that this AGREEMENT confers rights upon
NHHFA, it will be deemed to inure to its benefit, but without liability to NHHFA, in the same
manner and with the same effect as though NHHFA were a primary party to the AGREEMENT.
b) The AGREEMENT constitutes the entire agreement between the OWNER and the AGENT with
respect to the management and operation of the PROJECT, and no change will be valid, unless
made by supplemental written agreement, executed and approved by NHHFA as well as the
Principal Parties.
c) This AGREEMENT has been executed in several counterparts, each of which shall constitute a
complete original AGREEMENT, which may be introduced in evidence or used for any other
purpose without production of any of the other counterparts.
27. Indemnification: The OWNER agrees to indemnify and hold harmless the AGENT in any
situation arising out of or from this AGREEMENT, where the AGENT has notified the OWNER, by
certified mail, return receipt requested, of any event, occurrence or happening which places the
OWNER or AGENT in non-compliance with any local, State or Federal notice, where the OWNER
instructs the AGENT not to take any action.
IN WITNESS WHEREOF, the Principal Parties (by their duly authorized officers) have executed this
AGREEMENT on the date first above written.
OWNER SIGNATURE ____________________________________
OWNER NAME __________________________________________
TITLE
_
________________________________________________
WITNESS_______________________________________________
AGENT SIGNATURE
_
___________________________________
AGENT NAME __________________________________________
TITLE __________________________________________________
WITNESS _______________________________________________
The New Hampshire Housing Finance Authority hereby consents to the foregoing Management
Agreement, dated
by__________________________________________________________________ and
between ____________________________________________________________________.
New Hampshire Housing Finance Authority
By
Title Director,
Asset
Management
Date
Revised 1/2020
EXHIBIT "B"
A) The following employees, whose salaries and fringe benefits shall be charged as an expense
of the PROJECT, will be hired or are currently employed by the MANAGEMENT AGENT
for the management of the PROJECT:
B) The following is a description of the duties of the above named personnel:
C) Include a copy of the Fidelity Bond.
Title
Projected Annual Salary
% Charged to Project