Rd3456-34a

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UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT
RURAL HOUSING SERVICE

Form RD 3560-34A
( 02-05)

FORM APPROVED
OMB NO. 0575-0189

CONSOLIDATED RRH LOAN AGREEMENT
To a Partnership Operating on a Profit Basis
To a Limited Partnership Operating on a Profit Basis
To a Partnership Operating on a Limited Profit Basis
To a Limited Partnership Operating on a Limited Profit Basis
To a Limited Liability Company

1. Parties and Terms Defined. This Consolidated Loan Agreement dated

between
, a Partnership, duly organized and operating

under the laws of the state of
, (''Partnership''), whose address
is
, and the United States of America acting through
the Rural Housing Service, or a successor agency, United States Department of Agriculture, (''Government")
is made in consideration of loans, ("Loans')', to Partnership in the amount of $
made or insured, or to be made or insured, by the Government pursuant to section 515(b) of the Housing Act of 1949 to build
projects.
The loans may be sold and insured by the Government. The loans shall be used solely for the specific eligible purposes for
which it is approved by the Government in order to provide rental housing and related facilities for eligible occupants, as
defined by the Government in rural areas. Such housing, facilities, and the land constituting the site are called ''Housing''.
The indebtedness and other obligations of the Partnership under the notes evidencing the loans, the related security
instrument and related agreement are herein called ''Loan Obligation''.
2.

The following projects are consolidated which involve

3.

Execution of Loan Instruments.

loans:

To evidence the loan the Partnership has issued promissory notes ("Notes"),

signed by

for the amount of the loans, payable in installments

over a period of
, bearing interest at a rate, and
containing other terms and conditions, prescribed by the Government. To secure the Notes or any indemnity or other
agreement required by the Government,
are to execute a real estate
estate security instrument giving a lien upon the Housing and upon such other real property of the Partnership as the
Government shall require, including an assignment of rents, subsidies, revenues and profits as collateral security to be
enforced in the event of any default by the Partnership, and containing other terms and conditions prescribed by the
are to execute any other security instruments and other
Government
instruments and documents required by the Government in connection with the making or insuring of the loans.

According to the Paper-work Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid
OMB control number for this information collection is 0575-0189. The time required to complete this information collection is estimated to average 15 minutes per response,
including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of
information.

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4. Equal Opportunity and Nondiscrimination Provisions. The General Partners are hereby authorized and directed to
execute on behalf of the Partnership: (a) any undertakings and agreements required by the Government pursuant to Title VIII of
the Civil Rights Act of 1968 as amended by the Fair Housing Amendments Act of 1988 related to Fair Housing regarding
nondiscrimination in the use and occupancy of housing, (b) Form RD 400-1 entitled ''Equal Opportunity Agreement'',
including an ''Equal Opportunity Clause'' to be incorporated in or attached as a rider to each construction contract the amount
of which exceeds $10,000 and any part of which is paid for with funds from the loan, and (c) Form RD 400-4, entitled
''Assurance Agreement (under Title VI, Civil Rights Act of 1964)'', a copy of which is attached hereto and made a part hereof,
and any other undertakings and agreements required by the Government pursuant to lawful authority.
5. Borrower Contribution. The amount of $
from its own funds for the land purchase or development.

was contributed by the Partnership

6. Accounts for Housing Operations and Loan Servicing. The Partnership shall establish on its books the following
accounts, which shall be maintained so long as the Loan Obligations remain unsatisfied: a General Operating Account, a Tenant
Security Deposit Account and a Reserve Account.
a. General Operating Account. By the time the Government loan is closed or interim funds are obtained, whichever
occurs first, the Partnership shall deposit cash from the Borrower's own funds in an amount totaling
$
. Use of deposited cash will be in accordance with 7 CFR part 3560 or
any successor regulation.
b. Reserve Account. Transfers at a rate not less than $
annually which is the
total of amounts listed in the Loan Agreements being consolidated shall be made to the Reserve Account until the
amount in the Reserve Account reaches the minimum sum of $
or such
higher amount agreed to by the Government and shall be resumed at any time when necessary, because of
disbursements authorized by the Government from the Reserve Account to restore it to minimum sum. Withdrawal
and use of funds deposited to this account will be in accordance with 7 CFR part 3560 or any successor regulation.
1) To pay dividends to the partners of up to 8 percent per annum of the borrower's initial investment of
$
provided the Partnership determines that after such disbursement (a) the
amount in the Reserve Account will not be less than that required by this section to be accumulated by that time
(less any disbursements authorized by the Government), and (b) the amount in the Reserve Account will likely
not fall below that required to be accumulated during the next 12 months.
2) To pay dividends to the partners or for any other purpose desired by the Partnership, provided the
Partnership determines that after such disbursement (a) the amount in the Reserve Account will not be less than
that required by this section to be accumulated by that time (less any disbursements authorized by the
Government), and (b) the amount in the reserve account will likely not fall below that required to be
accumulated during the next 12 months.
7. Regulatory Covenants. So long as the loan obligations remain unsatisfied, the Partnership shall comply with all
appropriate regulations of the Government and shall:
a. Impose and collect such fees, assessments, rents, and charges that the income of the Housing will be sufficient at
all times for operation and maintenance of the Housing, payments on the Loan Obligations, and maintenance of the
accounts.
b. Establish and maintain complete books and records relating to the Housing's financial affairs, cause such books
and records to be audited at the end of each fiscal year, promptly furnish the Government without request a copy of
each audit report, and permit the Government or its representative to inspect such books and records at all reasonable
times.
c. If required or permitted by the Government, revise the accounts, or establish new accounts, to cover handling
and disposition of income from and payment of expenses attributable to the Housing or to any other property
securing the Loan Obligations, and submit regular and special reports concerning the Housing or financial affairs.

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d. Agree that if any provisions of its organizational documents or any verbal understandings conflict with the terms
of this loan agreement, the terms of the loan agreement shall prevail and govern.
e.

Unless the Government gives prior consent:

1) Not use the Housing for any purpose other than as rental housing and related facilities for eligible
occupants.
2) Not enter into any contract or agreement for improvements or extensions to the housing or other property
securing the Loan Obligations.
3) Not change the membership by either the admission or withdrawal of any general partners nor permit general
partners to maintain less than an aggregate of 5 percent financial interest in the organization nor cause or permit
voluntary dissolution of the Partnership nor cause or permit any transfer or encumbrance of title to the Housing or any
part thereof or interest therein, by sale, mortgage, lease, or otherwise.
4) Not borrow any money, nor incur any liability which would have a detrimental effect on the Housing.
f.

Submit the required reports as per 7 CFR part 3560 or any successor regulation to the Government for prior review.

g. Comply with all its agreements and obligations in or under the Notes, security instrument, and any related
agreement executed by the Partnership in connection with the Loan.
h. Not alter, amend, or repeal without the Government's consent this agreement or the Partnership Agreement,
which shall constitute parts of the total contract between the Partnership and the Government relating to the Loan
Obligations.
i. Take other actions as may be required by the Government in connection with the operation of the Housing; or
with any of the Partnership's operations or affairs which may affect the Housing, the Loan Obligation, or the security.
j.

If return on investment for any year exceeds 8 percent per annum of borrower's initial investment of
, the Government may require that the borrower reduce rents the following year,
$
refund the excess return on investment to the tenants, or use said excess in a manner that will best benefit the
tenants.
8.

General Provisions.
a. It is understood and agreed by the Partnership that any loan made or insured will be administered subject to the
limitations of the authorizing act of Congress and related regulations, and that any rights granted to the Government
in this agreement or elsewhere may be exercised in its sole discretion.
b. The provisions of this agreement are representations to the Government, to induce the Government, to
consolidate the loan agreements of the Partnership. If the Partnership should fail to comply with or perform any
provision of this agreement or any requirement made by the Government pursuant to this agreement, such failure
shall constitute default as fully as default in payment of amounts due on the Loan Obligation. In the event of such
failure, the Government at its option may require specific performance, declare the entire amount of the Loan
Obligation immediately due and payable and, if such entire amount is not paid forthwith, may take possession of and
operate the Housing and proceed to foreclose its security and enforce all other available remedies or take such other
action as it deems necessary to enforce the provisions of this agreement.
c. To the extent legally permitted, any provisions of this agreement may be waived by the Government in its sole
discretion, or changed by agreement between the Government and the Partnership.
d.

Any notice, consent, approval, waiver, amendment or agreement must be in writing.

Position 2

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e. The Partnership agrees that no person with a disability will be subjected to discrimination in employment or
denied the benefits of the Housing because of such disability. The Partnership will comply with the requirements of
the Fair Housing Act, 42 U.S.C. 3601 et seq., the Fair Housing Amendments Act of 1988, the Rehabilitation Act of
1973, 29 U.S.C. 794, the American with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., and the implementing
regulations of the Department of Agriculture, 7 CFR part 15(b).
f. This Consolidated Loan Agreement shall be subject to the present and future laws and regulations of the
Government.
g.

This agreement maybe cited in the security instrument and any other instruments as the ''Consolidated Loan

Agreement of
h.

."

,

Borrower previously entered into Loan Agreements with the Government having the following dates

All such previous loan agreements are consolidated into this Consolidated Loan Agreement and the multifamily
housing units covered by such previous loan agreements shall be operated as a single project under the terms and
conditions of this Consolidated Loan Agreement. Violation of this Consolidated Loan Agreement shall constitute an
event of default under the security instruments which may be described in such previous loan agreements.
Borrower has delivered to Government several evidences of debt which provided for payments on various days of
each month. To provide for orderly administration of the indebtedness, Borrower agrees to change the scheduled
payment date on the following promissory notes, assumption agreements, or reamortization agreements to the first
day of each following month until the debt evidenced by each instrument described is paid in full:
Date

i.

Amount

Date

Amount

This Consolidated Loan Agreement shall be effective on the date it is approved by Government.

PARTNERSHIP NAME
By:

Approval Date

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Witness

Borrower Representative

Witness

Borrower Representative

Witness

Borrower Representative

Approval Official