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Income Limit on the date of occupancy shall continue to be treated as if occupied by such a tenant
so long as such tenant's annual income does not exceed 140% of the Income Limit. If a tenant's
income increases beyond 140% of the Income Limit, with the consequence that less than 40% of
the apartment units in each portion of the Project are rented to tenants who qualify within the
Income Limit, the Borrower will rent the next available residential unit in the Project that is of
comparable or smaller size to a tenant who qualifies within the Income Limit.
(c) At all times during the Qualified Project Period, the income of the residents
of the Low Income Units will be determined, at least annually, on the basis of the current income
of the residents, in a manner consistent with HUD Guidelines for determinations under Section 8
of the United States Housing Act of 1937 (including adjustments for family size).
(d) The Borrower hereby covenants to determine, at least annually and on the
basis of the current income of residents, whether the income of residents of the Low Income Units
exceeds the Income Limit and to comply with the income certification requirements set forth in
the Regulatory Agreement among the Issuer, the Borrower and the Trustee with respect to the
Project. The Borrower also covenants during the Qualified Project Period to file with the Issuer
and the Internal Revenue Service copies of Form 8703 - "Annual Certification of Residential
Rental Project" for each calendar year within 30 days of each anniversary of the Issue Date of the
Bonds following the planned completion of the rehabilitation, renovation, construction,
improvement and equipping of the Project and the occupancy of the affordable housing units in
the Project by qualified residents.
PART III PRIVATE ACTIVITY BOND REQUIREMENTS
Section 3.1 Limitation on Acquisition of Land. Sale Proceeds in the amount of $0 will
be allocated to the acquisition of land. Therefore, no more than twenty-five percent (25%) of the
Net Proceeds of the Bonds will be used directly or indirectly for the acquisition of land or any
interest therein.
Section 3.2 Limitation on Acquisition of Existing Property. No Sale Proceeds were
allocated to the acquisition or purchase price of any existing building located within the Project at
the time the facility was purchased by the Borrower and its affiliates in December, 2022. The
Borrower hereby covenants that all rehabilitation expenditures (as defined in Section 147(d)(3) of
the Code) financed with Sale Proceeds from the Bonds with respect to any buildings, if any, in the
Project may not equal or exceed fifteen percent (15%) of the portion of the cost of renovating such
building (and/or related equipment) to be financed with the Bond proceeds. A structure other than
a building (and equipment therefor) may be utilized for rehabilitation expenditures (as defined in
Section 147(d)(3) of the Code) with respect to such property and will not equal or exceed one
hundred percent (100%) of the portion of the cost of rehabilitating and renovating such property
to be financed with the Bond proceeds.
Section 3.3 Limitation on Weighted Average Maturity of Bonds. The weighted average
maturity of the Bonds (__ years) does not exceed 120% of the average reasonably expected
economic life of the facilities being financed (average economic life of 40 years x 120% = 48
years). In Exhibit C, the Borrower has set forth the reasonably expected economic life of the
Project and the reasonably expected weighted average economic life of the Project as a whole.
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