Physical Improvements Clause Samples
The Physical Improvements clause defines the responsibilities and standards related to any construction, alteration, or enhancement of tangible structures or facilities on a property. It typically outlines what types of improvements are permitted or required, who is responsible for making them, and any necessary approvals or compliance with laws and regulations. This clause ensures that all parties are clear about their obligations regarding physical changes to the property, helping to prevent disputes and maintain the property's value and condition.
Physical Improvements. The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 C.F.R. Part 84, 24 C.F.R. 570.502-504, as applicable, which include but are not limited to the following:
9.1 Any physical improvements over $5,000 must be secured by a promissory note, lien document, special warranty deed and deed of trust as specified in the Loan Documents. In addition, a fixed assets listing must be maintained in accordance with federal regulations for the full compliance period as described in Section 9.2. Annual physical inventory must be conducted to ensure the property is still in condition and use as required by the CDBG program.
9.2 Real property under the Subrecipient’s control that was acquired or improved in whole or in part with CDBG funds must be used in accordance with the terms of this Agreement and the HUD regulations for a period of ten years, or for such longer period of time as determined to be appropriate by the City.
9.3 After expiration of the required use period, Subrecipient is free to use the real property for another use without obligation to the City.
Physical Improvements. Subtenant acknowledges that it has inspected the Sub-Premises and agrees to accept possession of the Sub-Premises in their "as is" condition, it being understood and agreed that Landlord shall have no obligation to construct tenant improvements in the Sub-Premises or alter or improve in any way the present condition of the Sub-Premises. Subtenant further acknowledges that no representations as to the repair of the Sub-Premises, nor promises to alter, remodel, or improve the Sub-Premises, have been made by Sublandlord. Notwithstanding the forgoing, the Subtenant acknowledges that the Sublandlord has expended not in excess of THIRTY-SIX THOUSAND AND NO/100 ($36,000.00) DOLLARS of the Improvement Allowance as defined in the Primary Lease and that all amounts of the Improvement Allowance in excess of THIRTY-SIX THOUSAND AND NO/100 ($36,000.00) DOLLARS may be expended by Subtenant to improve the Sub-Premises in accordance with the provisions of the Primary Lease.
Physical Improvements. 8.1 Any physical improvements made to real property as part of the Activity performed and funded with CDBG Funds pursuant to this Agreement must be secured by a promissory note, lien document, special warranty deed or deed of trust, depending on the type of property and improvement, and as specified in the Loan Documents, if the fair market value of the physical improvement(s) is greater than $5,000. In addition, a fixed assets listing must be maintained in accordance with federal regulations for the full term of the security. Annual physical inventory must be conducted to ensure the property is still in condition suitable to secure the value of improvement required by the CDBG program.
8.2 Real property under the Subrecipient’s control that was acquired or improved in whole or in part with CDBG funds must be used in accordance with the terms of this Agreement and the HUD regulations for a period of ten years, or for such longer period of time as determined to be appropriate by the City.
8.3 After expiration of the term of the security instrument, Subrecipient is free to use the real property for any purpose, without obligation to the City.
8.4 Any personal property and equipment acquired with funding provided under this Agreement shall be used and disposed of in compliance with the requirements of 24 C.F.R. Part 84, 24 C.F.R. 570.502-504, as applicable.
Physical Improvements. As used herein, “Physical Improvements” means and includes interior and exterior improvements to buildings, site, fixtures and attachments, as well related infrastructure improvements that directly improve the subject Property itself, the actual value of which shall be a minimum of $300,000.00 (inclusive of Washington State Sales Tax). “Physical Improvements” does not include the cost of permitting, consulting services, drafting of plans or construction documents, or any similar type of cost that is related to improvement of the Property but does not add direct value to the Property. It is the understanding of the parties hereto that Buyer will incur such improvement-related costs, but that these shall not count towards the $300,000.00 of actual physical improvements that must be made to the subject Property before the Construction Completion Date. In the event of a Fundamental Breach, if Seller exercises its option to re-purchase the Property, Seller shall add to the Repurchase Price the estimated value of those Physical Improvements, if any, actually constructed on the Property, as determined by a disinterested, third- party appraiser. Buyer and Seller agree that in such event, however, any increase to the Repurchase Price shall not exceed $299,999.99.
Physical Improvements. The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR 570.502-505, as applicable, which include but are not limited to the following:
8.1 Any physical improvements expenditure must be secured by a promissory note, lien document, special warranty deed and deed of trust as specified in the Loan Documents. In addition, a fixed assets listing must be maintained in accordance with federal regulations for the full compliance period. Annual physical inventory must be conducted to ensure the property is still in condition and use as required by the CDBG program.
8.2 Real property under the Subrecipient's control that was acquired or improved in whole or in part with CDBG funds must be used in accordance with the terms of this Agreement and the HUD regulations for a period of ten years, or for such longer period of time as determined to be appropriate by the City.
8.3 After expiration of the required use period, Subrecipient is free to use the real property for another use without obligation to the City.
8.4 If the real property that was acquired or improved is not used in accordance with CDBG guidelines, the Subrecipient shall pay the City an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of or improvement to the property in accordance with 24 CFR Part 570.
Physical Improvements. It is understood and agreed that all permanently installed physical improvements to the licensed premises existing at the expiration of this agreement shall be considered part of the premises and become the property of Licensor. Any movable or transportable improvements made by Licensee shall remain the property of Licensee (ie. stands, booths, P.A. system, tents).