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"Trustee" means U.S. Bank Trust Company, National Association, the trustee designated as such
under the Indenture or any successor trustee under the Indenture, together with their respective successors
and assigns.
Other capitalized terms used herein and not otherwise defined shall have the respective meanings
accorded such terms in the Indenture and the Loan Agreement.
2. Completion of the Project. The Borrower covenants to complete the rehabilitation,
renovation, improvements and equipping of the Project with due diligence substantially in accordance with
the Loan Agreement. Promptly upon such completion, the Borrower shall furnish to the Trustee and the
Issuer a Completion Date Certificate. In the event the proceeds of the Loan are insufficient to complete the
Project, the Borrower shall pay from other sources additional moneys as are necessary to complete the
Project. No proceeds of the Bonds will be used to finance any Commercial Facilities.
3. Qualified Residential Rental Project. The Issuer and the Borrower hereby declare their
understanding and intent that the Project is to be owned, managed and operated, as a Qualified Residential
Rental Project. The Issuer hereby elects the "40-60" test as set forth in Section 142(d)(1)(B) of the Code.
To that end, and in compliance with the Act, the Borrower hereby represents, covenants and agrees as
follows:
(a) that the Project is being rehabilitated, renovated improved and equipped for the purpose of
providing multifamily residential rental property, and the Project shall be owned, managed and operated as
multifamily Rental Housing, all in accordance with Section 142(d)(1) of the Code and Section 1.103-8(b)
of the Income Tax Regulations, as the same may be amended from time to time and applicable to the
Project;
(b) that all of the dwelling units in the Project will be similarly constructed and each such
Dwelling Unit shall contain complete facilities for living, sleeping, eating, cooking and sanitation for a
single person or a family;
(c) that during the Qualified Project Period:
(i) none of the Dwelling Units in the Project shall ever be leased or rented for a period
of less than thirty (30) days; and
(ii) neither the Project nor any portion thereof shall ever be used as a hotel, motel,
dormitory, fraternity house, sorority house, rooming house, hospital, sanitarium, nursing home, rest
home, or trailer court or park;
(d) that during the Qualified Project Period (i) the dwelling units in the Project shall be leased
and rented or made available for rental on a continuous basis to members of the general public, (ii) at least
40% of the Available Units in the Project shall be leased and rented or made available for rental on a
continuous basis to Low Income Tenants; and (iii) the Borrower shall not give preference in renting
Dwelling Units in the Project to any particular class or group of persons, other than Low Income Tenants
as provided herein; provided, however, that an insubstantial number of dwelling units in the Project, may
be occupied by maintenance, security or managerial employees of the Borrower or its property manager,
which employees must be reasonably necessary for operation of the Project;
(e) that during the Qualified Project Period no part of the Project will at any time be owned or
used by a cooperative housing corporation;
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