text: encountered withloanrepayments ~ndstatedthatthestandard loanagreement text hasbeenreviewed andamended bytheUnitedNations OfficeofLegalAffairs witha viewtoavoiding apossible repetition ofsuchmisinterpretations. Insufficiency ofrentalyieldtocoverinstalment amounts 58.According totheagreement signed byUNDPandanother Government foralo~ul housing complex inMay1975,aUNDPloanforanamountequivalent, to$170,000 will berepaidbytheGovernment in30half-yearly instalments and,tothisend,the rentalyieldofthecomplex, lessadeduction of25percentformaintenance costs, willbetransferred toaseparate account tobeopened bytheGovernment forthis purpose. 59.Wenotedinthisregardthat,sincetheint~gration ofthehousing activity operations intheUNDPaccounts attheendofJune1982,theorganization is suffering afinancial lossbecause theeffective rentalyieldofthecomplex (after agreeddeduction of25percentformaintenance costs)collected byUNDPisnot sufficient tocovertheinstalment amounts credited byUNDPtotheGovernment at theexpirydatesfixedintheloanrepayment schedule. Ourexamination indeed revealed ~hat,disregarding theactualcostofsubstantial repairs intheamountof $13,092, thelossesincurred byUNDPamounted toanequivalent ofsome$2,595for theperiod fromJune1983toJune1984. 60.Werecommended thattheorganization shouldnegotiate payment bythe Government ofalllossessuffered byUNDPonthebasisofarticle 3.02ofthe agreelJlen..t. 61.TheAdministration explained thatlossesareduetothefactthatall apartments arenotcontinuously occupied. Theoccupancy ratedepends onthenumber ofjuniorprogramme officers, unitedNations volunteers, experts andotherslocally employed atanygiventime.Whenever theapartments arefullyoccupied, the 75percentportion ofrentsissufficient tocovertheloanrepayments. 62.Westressed; nevertheless, thatiftherentalyieldofthecomplex is insufficient tocoverdueinstalments, UNDPshouldclaimadditional payment bythe Government. Wealsoadvised thattheoccupancy ratebeincreased byrenting some oftheapartments outside theUnitedNations family. TheAdministration replied thatpayment bytheGovernment forthelossessustained byUNDPwillbenegotiated.I 1-25-Responsibility forfixingthelevelofrents 63.Wenotedthat,according toUNDP'scalculations in1983,therentsforthe complex inaparticular country shouldbeincreased byonethirdtobringtheminto linewithcommonrentsintheareaandtoreachalevelofavailable funds sufficient tocoverordinary maintenance costs. Ourreviewofthismatterrevealed hatnodecision hadbeentakeninthisrespectatthetimeofourauditin September 1984. 64.TheAdministration explained thatsincethecomplexisadministered byUNDp· andtheGovernment jointlyitcouldnottakeanyunilateral actioninthisregard. Moreover, official housing management hasbeentransferred totheMinistry of publicWorksinthemeantime andfurther discussions withthisMinistry are therefore neededtoreachadecision onthelevelofrents. 65.We,however, pointed outthatbyvirtueofarticle 3.02coftherelevant agreement, UNDPisresponsible, inconsultation withtheGovernment, forfixingthe levelofrents. Wetherefore insisted thatadecision onaneconomically justified levelofrentshouldbetakenassoonaspossible. TheAdministration statedthat itwill,asanalternative, negotiate withtheGovernment achangeinthe percentage ofrentalyieldreserved tocoverrealmaintenance costs. Termsofreimbursement 66.Ourexamination revealed thattherecentloanagreements nolongerexplicitly stipUlate thatthefirstinstalment shallincludeallinterests payable on~heloan fromthedateitwasclaimed untilthetimeofthefirstrepayment. Inthis respect, wenotedalsothattheinterests relating toreimbursements inarrears are notalwaysrecorded onthefieldoffices' rental ARLaccounts. 67.Werecommended thattheseissuesshouldbesettled adequatley without delayin ordertoavoid.possible disputes inthefuture.Lat 71. in con day new no Se im des tot in 73. rea tha sin alm fro dam, Fori 74. SUI spa hou 68.TheAdministration agreedthatallhousing loanagreements shouldspecify clearly wh~~interest startsaccruing andthatsuchinterests shouldalsobe included intheyear-end accounts. General observation 69.Ingeneral, wesuggested thatincasethevarious practical problems referred toabovecannotbesolvedsattsfactorily anin-depth revision oftheUNDPhousing loansystembeconducted andsuchalternative solutions asdirectpurchase or construction onitsownaccount dulyconsidered byUNDP.75. pro int pre as int par
analysis: The text appears to be a report or audit of a housing loan agreement between the United Nations Development Programme (UNDP) and a government, discussing issues related to loan repayment, rental yields, and maintenance costs. The text highlights the financial losses incurred by UNDP due to insufficient rental yields and recommends that the government should negotiate to cover these losses. The text also discusses the need to increase occupancy rates and rents to cover loan repayments.