10.7.4 Management Fee

A. The Agreement must include all specifics of the Management Agent compensation and how the management fee will be calculated, including any incentive management fees to be paid from surplus cash. HUD will review the fee for adequacy and reasonableness for a project of the size and complexity as what is proposed. The management fee must be equivalent to, and be no less than, a market rate fee that would be charged by a replacement, third party Management Agent, if the replacement agent were to assume responsibility for management of the property.