Payment Procedure – Escrow Owner shall establish in a New York banking institution a banking account entitled “(Project Name)” Managing Agent Fee Account. All withdrawals from such account shall require (2) signatures: the Owner’s and that of an authorized representative of DHCR.
Agent shall deposit monthly into such account the amount set forth in Section 5.1 (a) of the Owner-Agent Agreement. The amounts earned or reimbursed pursuant to Section 5.1 (b), (c), and (e) of the Owner-Agent Agreement shall be paid in accordance with Section 8.5 above.
Agent shall be paid monthly the amount set forth in Section 5.1 (a) of the Owner-Agent Agreement minus ten percent (10%) (hereinafter “The Retention”).
Agent may request from the Owner and DHCR quarterly for a release of The Retention. The Retention will not be released unless both the Owner and DHCR approve such release.
Disapproval for release of the Retention may be based on non-compliance with or unsatisfactory performance of the terms of the Contract Documents or the rules, regulations, orders or directives of DHCR.
Owner or DHCR, as the case may be, will be required to provide written notice evidencing either non-compliance or unsatisfactory performance. Such notice shall be sent certified mail return receipt to the addresses set forth in the Owner-Agent Agreement. The evidence may be elicited from, but not limited to, Housing Operation’s Audits, DHCR field reports and DHCR financial audits, reports of the mortgagee(s) and evidence supplied by tenants of the Project.
Subject to the disapproval of release of The Retention, the Agent may appeal such disapproval to DHCR within 30 calendar days of receipt of the notice provided for in subsection (f) hereof.
During the term of the Contract, The Retention may be released retroactively or prospectively, in whole or in part, when DHCR, in its sole discretion, determines that the Agent has satisfactorily cured the reasons upon which the disapproval was based and no new evidence of non-compliance or unsatisfactory performance has been discovered.
The Retention, including interest, remaining in the account on termination of the Agent shall be utilized for project purposes at the direction of DHCR.