This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
Low Income Tenants
In order to satisfy the requirements of the Act and Section 142(d) of the Code, the Borrower
represents, covenants and agrees that by the Regulatory Agreement, as follows:
(a) (i) commencing on the later of the first date on which 10% of the units in
the Project are occupied or the issue date of the Bonds, (1) at least 40% of the Available
Units in the Project shall be occupied by Low Income Tenants before any Available
Units are rented or leased to any other tenants and (2) after initial rental occupancy of
such dwelling units by Low Income Tenants, at least 40% of the Available Units in the
Project at all times shall be rented to and occupied (or held available for rent if
previously rented to and occupied by a Low Income Tenant) by Low Income Tenants
as required by Section 142(d) of the Code. For the purpose of the requirement that not
less than 40% of the Available Units be occupied by Low Income Tenants, if a tenant
qualified as a Low Income Tenant upon occupancy, the income of that tenant shall
be treated as continuing to not exceed the applicable income limit, notwithstanding
that such tenant’s income may subsequently exceed the applicable income limit;
provided, however, that such person shall no longer be qualified as a Low Income
Tenant as of the most recent determination (as provided in paragraph (e) below) if the
tenant’s Adjusted Family Income exceeds 140% of the then applicable income limit.
If it is determined that a tenant’s Adjusted Family Income exceeds 140% of the
applicable income limit, the Borrower may avoid non-compliance with the rules set
forth in the Regulatory Agreement if the next available unit of comparable or smaller
size not counted as occupied by a Low Income Tenant is rented to a qualifying Low
Income Tenant;
(ii) notwithstanding paragraph (a)(i) above, if the proceeds of the Bonds
are financing the acquisition and rehabilitation of an existing residential rental project
(other than Substantial Rehabilitation, to which paragraph (a)(i) above will apply), the
Borrower shall have twelve (12) months beginning on the date of issuance of the Bonds
(the “Transition Period”) to satisfy the requirement that at least 40% of the Available
Units are occupied by Low Income Tenants. The failure to satisfy the set-aside
requirement of this paragraph by the last day of the Transition Period will cause the
Project not to be a Qualified Residential Rental Project as of the issue date of the Bonds
issued to finance the Project unless the Bonds issued to finance the Project are
redeemed as soon as possible, but in no event later than eighteen (18) months after the
issue date of the Bonds;
(b) the income of all tenants who occupy or will occupy the units in the Project will
be verified by the Borrower by obtaining an Income Certification and with respect to Low
Income Tenants, (i) if the occupant is employed, an employer’s written verification of current
anticipated annual income or (ii) if the occupant is self-employed, the occupant shall provide
an annualized profit and loss statement or (iii) if the occupant is not employed, the occupant
shall provide evidence of governmental income or rental assistance and of any other income.
Each such certification shall be dated (i) not later than the date of execution of the lease, but in
no event more than five days prior to the initial occupancy of such tenant in the Project (and the
Borrower shall require such tenant to notify the Borrower of any material change of information
in the Income Certification between execution thereof and initial occupancy of such tenant in
the Project), and (ii) at least annually thereafter, in each case in the form and containing such
information as may be required by Section 142(d) of the Code (initially in the form attached as
an exhibit to the Regulatory Agreement, as the same may be from time to time amended by the
E-3Jump to an indexed page (744 of 744)