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home; and (iv) all of the units will be available to the public generally without preference or
priority except as necessary to comply with low and moderate income limits.
(b) The residential units in the Project will be similarly rehabilitated, renovated,
constructed, improved and equipped and all will contain separate facilities for living, sleeping,
eating, cooking and sanitation and each unit will contain a living area, a sleeping area, bathing and
sanitation facilities and cooking facilities equipped with a cooking range, refrigerator, and sink, all
of which are separate and distinct from similar areas of other apartment units in the Project.
(c) At all times during the "qualified project period" (defined as the period
beginning on the latest of the first day on which 10% of the residential units in the Project are
occupied or the Issue Date, and ending on the latest of (i) the date which is 15 years after the date
on which 50% of the residential apartment units in the Project are occupied, (ii) the first day on
which no tax-exempt bonds issued for the Project are outstanding or (iii) the date on which
assistance, if any, provided for the Project under Section 8 of the United States Housing Act of
1937 terminates) each residential unit in the Project will be rented or available for rental on a
continuous basis.
(d) Any office space financed as part of the Project will be located on the
premises of the Project and not more than a de minimis amount of the functions to be performed
at such office will not be directly related to the daily operations of the Project.
Section 2.2 Use of Net Proceeds. The Sale Proceeds and other sources of funds will
initially be allocated to the Project and other costs as set forth in Exhibit B. No less than ninety-
five percent of the Net Proceeds of the Bonds will be spent for amounts chargeable to the Project's
capital account or would be so chargeable with a proper election (the "Qualifying Costs"). As
such, the Issuer will not use more than $1,150,000 of the Net Proceeds of the Bonds to pay any
cost that is not a Qualifying Cost. If such funds are needed for such purpose, that amount will be
equal to 5% of the Sale Proceeds of the Bonds or $1,150,000 as reduced by Sale Proceeds used to
pay Issuance Costs (as defined in Section 3.4 hereof) which would equal $0, since the Borrower
represents that such expenses will be funded from sources of funds other than the Sales Proceeds.
The Borrower and Issuer reserve the right to reallocate Sale Proceeds and other sources of
funds as permissible under Treasury Regulation Section 1.148-6.
Section 2.3 Income Restrictions
(a) The Issuer and the Borrower have elected that the Project will be subject to
the requirement that not less than 40% of the units will be occupied by individuals whose income
is 60% or less of area median gross income (“AMI”). Pursuant to the tax credit Land Use
Restriction Agreement (the “LURA”) as required by Virginia Housing, a state housing agency of
the Commonwealth of Virginia (“Virginia Housing”), 26 of the housing units will be at 40%
AMI, 124 of the housing units will be at 50% AMI and 100 housing units will be at 60% AMI.
(b) At all times during the Qualified Project Period, not less than 40% of the
units of the Project (the "Low Income Units") will be occupied by individuals whose income is
60% or less of area median gross income on the date of initial occupancy (the "Income Limit")
adjusted for family size. Any Low Income Unit that is occupied by a tenant complying with the
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