4561.1

Appendix 66

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FHA NO. 2070 U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

FEDERAL HOUSING ADMINISTRATION

INSTRUCTIONS FOR LEASEHOLD 207 PROJECTS

The lease must be on the fee. It must have 75 years to run from the date

of the endorsement of the mortgage for insurance or it must be a lease
for

99 years which is renewable. Such a renewable lease for 99 years would

not need to have 75 years to run to the renewal date. The annual ground

rent and the amount for which the Commissioner may acquire the fee in
the

case of acquisition of the leasehold by him must be approved by the

Commissioner. The lease must contain nothing in conflict with FHA

requirements and otherwise be satisfactory to the Commissioner and must

include the following provisions:

207 LEASE ADDENDUM

Notwithstanding any other provisions of this lease, if and so long as
this

leasehold is subject to a mortgage insured, reinsured, or held by the

Federal Housing Commissioner or given to the Commissioner in connection

with a resale, or the demised premises are acquired and held by him

because of a default under said mortgage:

1\. The tenant is authorized to obtain a loan, the repayment of which is

to be insured by the Federal Housing Commissioner and secured by a

mortgage on this leasehold estate. Tenant is further authorized to

execute a mortgage on this leasehold and otherwise to comply with the

requirements of the Federal Housing Commissioner for obtaining such an

insured mortgage loan.

2\. The Federal Housing Commissioner, or his successors in office,,
shall

have the option, in the event that he or his successor in office,

through the operation of his contract of mortgage insurance, shall

acquire title to the leasehold interest, to purchase good and

marketable fee title to the demised premises, free of all liens and

encumbrances except such as may be waived or accepted by him or his

successor in office, within twelve (12) months after so acquiring the

leasehold interest, for the sum of

payable in cash, or by Treasury checks provided all rents are paid to

date of transfer of title, upon first giving sixty (60) days\' written

notice to the Landlord or other person or corporation who may then be

the owner of the fee, and the owner of the fee shall thereupon execute

and deliver to the Federal Housing Commissioner, or his successor in

office, a deed of conveyance to the said demised premises, containing

a covenant against the grantor\'s acts, but excepting therefrom such

acts of the Tenant and those claiming by, through or under the Tenant

of the leasehold interest. Nothing in this option shall require the

Landlord to pay any taxes or assessments which were due and payable by

the Tenant.

3\. If approved by the Federal Housing Commissioner, tenant may assign,

transfer or sell his interest in the demised premises.

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4561.1

Appendix 66

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4.(a) Insurance policies shall be in an amounts, and in ouch company or

companies and in such form, and against such risks and hazards, as

shall be approved by such mortgagee and/or the Federal Housing

Commissioner.

\(b\) The Landlord shall not take out separate insurance concurrent in

form or contributing in the event of loss with that specifically

required to be furnished by the Tenant to the mortgagee. The

Landlord may at its own expense, however, take out separate

insurance which is not concurrent in form or not contributing in

the event of loss with that specifically required to be furnished

by the Tenant.

5.(a) If all or any part of the demised premises shall be taken by

condemnation that portion of any award attributable to the

improvements or damage to the improvements shall be paid to the

mortgagee or otherwise disposed of as may be provided in the insured

mortgage. Any portion of the award attributable solely to the

taking of land shall be paid to the Landlord. After the date of

taking the annual ground rent shall be reduced ratably by the

proportion which the award paid to the Landlord bears to the total

value of the land as established by the amount the Federal Housing

Commissioner would be required to pay upon acquisition of the fee as

set out in paragraph 2 of this addendum.

\(b\) In the event of a negotiated sale of all or a portion of demised

premises in lieu of condemnation, the proceeds shall be distributed

and ground rents reduced as provided in cases of condemnation, but

the approval of the Commissioner and the mortgagee shall be required

as to the amount and division of the payment to be received.

6\. The Landlord agrees that, within ten (10) days after receipt of

written request from Tenants it will join in any and all

applications for permits, licenses or other authorizations required

by any governmental or other body claiming jurisdiction in

connection with any work which the Tenant may do hereunder, and will

also join in any grants for easements for electric, telephone, gas,

water, sewer and such other public utilities and facilities as may

be reasonably necessary in the operation of the demised premises or

of any improvements that may be erected thereon; and if, at the

expiration of such ten (10) days\' period, the Landlord shall not

have joined in any such application, or grants for easements, the

Tenant shall have the right to execute such application and grants

in the name of the Landlord, and, for that purpose, the Landlord

hereby irrevocably appoints the Tenant as its Attorney-in-fact to

execute such papers on behalf of the Landlord.

7\. Nothing in this lease contained shall require the Tenant to pay any

franchises estate, inheritance, succession, capital levy or transfer

tax of the Landlord, or any income, excess profits or revenue tax,

or any other tax, assessment, charge or levy upon the rent payable

by the Tenant under this lease.

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4561.1

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Upon any default under this lease which authorizes the cancellation

thereof by the Landlord, Landlord shall give notice to the mortgagee

and the Federal Housing Commissioner, and the mortgagee and the

Federal. Housing Commissioners their successors and assigns, shall

have the right within any time within six (6) months from the date of

such notice to correct the default and reinstate the lease unless

Landlord has first terminated the lease as provided herein.

At any time after two (2) months from the date a notice of default is

given to the mortgagee and the Commissioner, the Landlord may elect

to terminate the lease and acquire possession of the demised premises.

Upon acquiring possession of the demised premises Landlord shall

notify Commissioner and mortgagee. Mortgagee and Commissioner shall

have six (6) months from the date of such notice of acquisition to

elect to take a new lease on the demised premises. Such new lease

shall have a term equal to the unexpired portion of the term of this

lease and shall be on the same terms and conditions as contained in

this lease, except that the mortgagee\'s and Commissioner\'s liability

for ground rent shall not extend beyond their occupancy under such

lease. The Landlord shall tender such new lease to the mortgagee or

Commissioner within thirty (30) days after a request for such lease

and shall deliver possession of the demised premises immediately upon

execution of the new lease. Upon executing a new lease the mortgagee

or Commissioner shall pay to Landlord any unpaid ground rentals due or

that would have become due under this lease to the date of the

execution of the new lease, including any taxes which were liens on

demised premises and which were paid by Landlord, less any net rentals

or other income which Landlord may have received on account of this

property since the date of default under this lease.

All notices, demands and requests which are required to be given by

the Landlord, the tenant, the mortgagee or the Commissioner shall be

in writing and shall be sent by registered or certified mail, postage

prepaid, and addressed to the address of the party as given in this

instrument unless a request for a change in this address has been sent

to the party giving the notice by registered or certified mail prior

to the time when such notice is given.

10\. This lease shall not be modified without the consent of the Federal

Housing Commissioner.

182096-P HUD-Wash., D. C.

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