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Amendment
Subject to the provisions of the second paragraph of this section, the Regulatory Agreement
may not be amended except (i) by a writing duly executed by each of the parties to the Regulatory
Agreement, (ii) with an opinion of Bond Counsel selected by the Issuer to the effect that such
amendment does not adversely affect the exclusion of the interest on the Bonds of the holders thereof
from gross income for federal income tax purposes, and (iii) if the closing of the FHA Insured Mortgage
Loan has occurred, with the consent of the FHA Lender.
To the extent the Code and the regulations promulgated thereunder, or any amendments thereto,
shall impose requirements upon the ownership or operation of the Project, which requirements shall be
applicable by their terms to the Project and which are more restrictive than those imposed by the
Regulatory Agreement, the Borrower and the Issuer agree to give notice thereof to the Trustee and that
the Regulatory Agreement shall be deemed to be automatically amended to impose such additional or
more restrictive requirements; and the Borrower, the Trustee and the Issuer shall execute, deliver and,
if applicable, file of record any and all documents and instruments necessary in the opinion of Bond
Counsel to maintain the exclusion from gross income of the interest on the Bonds, and if the Borrower,
the Trustee or the Issuer defaults in the performance of their obligation to execute such an amendment
under this section, the Borrower and the Issuer appoint by the Regulatory Agreement the Trustee as
their true and lawful attorney-in-fact to execute, deliver and, if applicable, file of record on behalf of the
Borrower, or the Issuer, as is applicable, any such document or instrument.
Covenants Run With the Land and the Real Property; Term
The Issuer and the Borrower declare by the Regulatory Agreement their express intent that the
covenants, reservations and restrictions set forth in the heading “Qualified Residential Rental Project”
above (exclusive of the last paragraph thereof) and under the heading “Low Income Tenants” shall be
deemed covenants running with the land, shall run with the Real Property, and shall pass to and be
binding upon the Borrower’s successors in title and the Borrower’s successors and assigns. Each and
every contract, deed or other instrument executed after the Regulatory Agreement covering or
conveying the Real Property or any portion thereof shall conclusively be held to have been executed,
delivered and accepted subject to such covenants, regardless of whether or not such covenants are set
forth in such contract, deed or other instrument. Unless sooner terminated in accordance with the
Regulatory Agreement, such covenants shall continue in full force and effect for the Qualified Project
Period, it being expressly agreed and understood that the provisions of the Regulatory Agreement are
intended to survive the expiration of the Indenture and the retirement of the Bonds, if such expiration
and retirement occur prior to the end of the Qualified Project Period. Upon the expiration of the Qualified
Project Period, or if the provisions of the Regulatory Agreement of are terminated (in the opinion of
Bond Counsel), the Issuer and the Trustee covenant by the Regulatory Agreement to execute a release
of the covenants of the Borrower in the Regulatory Agreement and provide such release to the Borrower
for recordation in the real property records of the City.
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