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the Bond Fund and Bond Debt Service Charges will otherwise be paid first from amounts on deposit in the
Interest Account or the Remarketing Proceeds Account of the Bond Fund, as applicable, second, from
amounts on deposit in the Collateral Fund, and third, from amounts on deposit in the Project Fund (such
foregoing funds, collectively, the “Special Funds”), and investment earnings thereon. Amounts on deposit
in the Special Funds will be invested in Eligible Investments. See “SECURITY AND SOURCES OF
PAYMENT FOR THE BONDS” herein.
The Bonds shall bear interest on the outstanding principal amount thereof at a rate equal to _.__%
per annum from their date, payable on each April 1 * and October 1*, commencing October 1, 2026* (each
an “Interest Payment Date”).
The Bonds are subject to mandatory tender for purchase, subject to satisfaction of the applicable
terms and conditions set forth in the Indenture, on October 1, 2028* (the “Initial Mandatory Tender Date”).
All Holders must tender their Bonds for purchase on the Initial Mandatory Tender Date. The Bonds may
be remarketed and a new interest rate for the Bonds may be determined on the Initial Mandatory Tender
Date in accordance with the terms of the Indenture. If the Bonds are remarketed on the Initial Mandatory
Tender Date, the terms of the Bonds after such date may differ materially from the description provided in
this Official Statement. Therefore, prospective purchasers of the Bonds on and after the Initial Mandatory
Tender Date cannot rely on this Official Statement, but rather must rely upon any disclosure documents
prepared in connection with such remarketing.
The Bonds are subject to optional redemption prior to the Initial Mandatory Tender Date as set
forth herein under “THE BONDS.”
The Bonds are special, limited obligations of the Issuer, and the principal of and interest thereon
will be payable solely from the revenues and other moneys assigned by the Indenture to secure such
payment. At all times the Bonds will be secured by Eligible Investments and Available Money
sufficient to pay, without need for reinvestment, all of the interest and principal on the Bonds when
due to the Initial Mandatory Tender Date, as further described herein. See “PLAN OF
FINANCING” and “SECURITY AND SOURCES OF PAYMENT FOR THE BONDS” herein.
The Borrower will be required to operate the Project in compliance with a Regulatory Agreement
and Declaration of Restrictive Covenants, dated as of July 1, 2026, but effective as of the Closing Date,
between the Issuer and the Borrower (the “Regulatory Agreement”). The Regulatory Agreement requires,
among other things, that the Project be operated as a qualified residential rental project with at least 40%
of the completed units in the Project occupied by Low Income Tenants, i.e., tenants whose income does not
exceed 60% of the area median income (“AMI”), adjusted for family size, during the Qualified Project
Period (as such term is defined in the Regulatory Agreement) in accordance with Section 142(d) of the
Internal Revenue Code of 1986, as amended (the “Code”). Failure to comply with these requirements could
result in the loss of the federal tax exemption of the Bonds retroactive to their date of issuance. See “THE
PROJECT AND THE PRIVATE PARTICIPANTS – Regulatory Restrictions” and “TAX MATTERS”
herein and “APPENDIX E – SUMMARY OF CERTAIN PROVISIONS OF THE REGULATORY
AGREEMENT” attached hereto.
In addition to the rental restrictions imposed upon the Project by the Regulatory Agreement, the
Project will be further encumbered by a tax credit restrictive covenant (the “Tax Credit Extended Use
Agreement”), to be executed by the Borrower in connection with the federal low-income housing tax credits
(the “Federal Tax Credits”) anticipated to be granted for the Project and in compliance with the
requirements of Section 42 of the Code, which will require, among other things, that the Borrower lease
* Preliminary; subject to change.
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