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connection with such audit. The Borrower shall keep information as set forth in this Section 4(c) for a
period of three years following the end of the Qualified Project Period;
(d) during the Qualified Project Period, (i) the Borrower shall immediately notify the Trustee
and the Issuer if at any time the Dwelling Units in the Project are not occupied or available for occupancy
as provided in Section 4(a) above, (ii) the Borrower shall prepare and submit to the Issuer, and following
the closing of the Mortgage Loan, to the Mortgage Lender, not later than the fifteenth (15th) day of the
month following the initial occupancy of any of the units in the Project and not later than the fifteenth (15th)
day following the end of each six months thereafter, a Compliance Certificate substantially in the form
attached hereto as Exhibit "B" executed by the Borrower stating, among other matters, the number of
dwelling units of the Project which were occupied or were deemed to be occupied by Low Income Tenants
during such period, and (iii) so long as any Bonds remain Outstanding, the Borrower shall maintain a copy
of each Compliance Certificate required under clause (ii) of this subsection and submit copies thereof to
the Trustee upon request;
(e) during the Qualified Project Period, the Borrower shall make the determination of whether
the income of a tenant of a unit in the Project exceeds the applicable limit at least annually on the basis of
the current income of the tenant by causing each tenant to execute a recertification of their annual income.
The Borrower shall require in the lease of each Low Income Tenant that the tenant fill out an annual income
recertification to help the Borrower determine whether the tenant still qualifies as a Low Income Tenant.
The Borrower shall provide in each tenant's lease that completion and execution of such certificates by the
tenant is a substantial obligation, noncompliance with which can result in termination of tenancy. Copies
of the recertification of a tenant shall be provided to the Trustee as provided in Section 4(b) above; and
(f) the Borrower shall prepare and file with the Issuer, and following the closing of the
Mortgage Loan, the Mortgage Lender true copies of each IRS Form 8703 - "Annual Certification of a
Residential Rental Project" (or any successor form thereto) as completed and filed with the Internal Revenue
Service for each calendar year during the Qualified Project Period, which certification shall be filed within
thirty (30) days after each anniversary of the Completion Date (as defined in the Loan Agreement) or at
such other times as may be prescribed in the Income Tax Regulations promulgated under Section 142(d)(7)
of the Code.
The benefits of Sections 3 and 4 shall inure to, and may be enforced by, the Trustee and the Issuer and their
successors and assigns for the Qualified Project Period.
5. Compliance with Act, Code and Rules.
(a) The Borrower covenants and agrees that (i) it will comply with all requirements of the Act,
and the rules applicable to it or to the Project; (ii) at no time will it take any action, or fail to take any action,
which action or failure to act would adversely affect the exclusion from gross income of the interest on the
Bonds for federal income tax purposes; (iii) at least 95% of the net proceeds of the Bonds will be applied
to finance a Qualified Residential Rental Project; and (iv) it will maintain the Project at all times during the
Qualified Project Period in such a manner that the Project qualifies as a Qualified Residential Rental Project
and pursuant thereto, forty percent (40%) or more of the residential units in such Project will be occupied
by Low Income Persons or Families, with adjustments for smaller and larger families within the respective
meanings ascribed to such quoted terms in Section 142(d) of the Code. In connection with the foregoing
and with Section 17(b) hereof, the Borrower agrees to execute and deliver such amendments and
supplements to this Regulatory Agreement as the Issuer (with a copy to Bond Counsel and the Trustee) or
Bond Counsel (with a copy to the Issuer and the Trustee) reasonably shall determine to be necessary to
preserve the exclusion of the interest on the Bonds of the holders thereof from gross income for federal
income tax purposes.
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