FOR USE BY FILING OFFICER ONLY

Section 1602 (Tax Credit Exchange) Program

DECLARATION OF LAND USE RESTRICTIVE COVENANTS
2010 Award Year

	THIS DECLARATION OF LAND USE RESTRICTIVE COVENANTS (this “AGREEMENT”), dated as of      , by      , a      , and its successors and assigns (the “Owner”), is given as a requirement of an award of Section 1602 program funds by the Minnesota Housing Finance Agency, a public body corporate and politic of the State of Minnesota, 400 Sibley Street, Suite 300, St. Paul, MN  55101 (“Minnesota Housing”), together with any successor to its rights, duties and obligations.

RECITALS

	A.	The Owner is or shall be the owner of a      -unit rental housing project located on real property located in the City of      , County of      , State of Minnesota, legally described in Exhibit A attached hereto (the “Project Land”), known as or to be known as       (the “Project”).

	B.	Minnesota Housing has been awarded a grant by the United States Department of Treasury (“Treasury”) under Section 1602 (“Section 1602”) of the American Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 115 (“ARRA”), and Minnesota Housing has implemented a Section 1602 program to use these grant proceeds to provide funds (“Section 1602 Funds”) for capital investment in certain projects.
	
	C.	The Owner has applied to Minnesota Housing, and Minnesota Housing has approved a loan to the Project of $      of Section 1602 Funds (the “Section 1602 Loan”).

	D.	The Owner and Minnesota Housing have entered into loan documents, which, together with this Agreement, constitute the terms by which Minnesota Housing is awarding Section 1602 Funds to the Owner for the Project.

	E.	As a condition of a loan of Section 1602 Funds, Treasury requires that the Owner execute, deliver, and record this Agreement in the official land deed records of the county in which the Project is located in order to create certain covenants running with the land for the purpose of enforcing the requirements of Section 1602, Section 42 of the Internal Revenue Code of 1986, as amended (“Section 42” and the “Code”, respectively), and the Additional Restrictions found in Section 5 hereof and Exhibit C attached hereto by regulating and restricting the use, occupancy, and transfer of the Project as set forth herein.

	F.	The Owner, under this Agreement, intends, declares, and covenants that the regulatory and restrictive covenants set forth herein governing the use, occupancy, and transfer of the Project shall be and are covenants running with the Project Land for the term stated herein and shall be binding upon all subsequent owners of the Project Land for such term, and are not merely personal covenants of the Owner.

	NOW, THEREFORE, in consideration of the promises and covenants set forth herein and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Owner agrees as follows.

SECTION 1 - DEFINITIONS

All words and phrases not otherwise defined in this Agreement that are defined in ARRA or Section 42, or by Treasury or the Internal Revenue Service (the “IRS”) in rules, regulations or supplemental guidance pertaining thereto, shall have the same meanings in this Agreement.

SECTION 2 - RECORDING AND FILING; COVENANTS TO RUN WITH THE LAND

(a)	Upon execution and delivery by the Owner, the Owner shall cause this Agreement and all amendments thereto to be recorded in the office of the County Recorder or Registrar of Titles of the county in which the Project Land is located and shall pay all fees and charges incurred in connection therewith.  Upon recording, the Owner shall immediately transmit to Minnesota Housing an executed original of the recorded Agreement, or a duly certified copy of the executed original, showing the date and document numbers of record.  The Owner agrees that Minnesota Housing will not issue a Section 1602 Form 8609 for the Project unless Minnesota Housing has received the recorded executed original, or a duly certified copy, of this Agreement as recorded.

(b)	The Owner intends, declares, and covenants, on behalf of itself and all future owners and operators of the Project Land and the Project during the term of this Agreement, that this Agreement and the covenants and restrictions set forth herein and in the exhibits hereto regulating and restricting the use, occupancy, and transfer of the Project Land and the Project (i) shall be and are covenants running with the Project Land, encumbering the Project Land for the term of this Agreement, binding upon the Owner’s successors in title and all subsequent owners and operators of the Project Land, (ii) are not merely personal covenants of the Owner, and (iii) shall bind the Owner (and the benefits shall inure to Minnesota Housing and any past, present or prospective tenant of the Project) and its respective successors and assigns during the term of this Agreement.  The Owner hereby agrees that all requirements of the laws of the State of Minnesota to be satisfied in order for the provisions of this Agreement to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full, and that any requirements of privileges of estate are intended to be satisfied, or in the alternate, that an equitable servitude has been created to insure that these restrictions run with the land.  For the term of this Agreement, every contract, deed, or other instrument hereafter executed conveying the Project Land or portion thereof shall expressly provide that such conveyance is subject to this Agreement; provided, however, that the covenants contained herein shall survive and be effective regardless of whether such contract, deed, or other instrument hereafter executed conveying the Project Land or portion thereof provides that such conveyance is subject to this Agreement.

(c)	The Owner covenants to obtain the consent of any prior recorded lien holder for the Project to this Agreement, and such consent shall be a condition precedent to Minnesota Housing’s issuance of the Section 1602 Form 8609 for the Project.

SECTION 3 - REPRESENTATIONS, COVENANTS, AND WARRANTIES OF THE OWNER

The Owner hereby represents, covenants, and warrants as follows:

(a)	The Owner (i) is a       duly organized under the laws of       and is qualified to transact business under the laws of the State of Minnesota, (ii) has the power and authority to own its properties and assets and to carry on its business as now being conducted, and (iii) has the full legal right, power, and authority to execute and deliver this Agreement.

(b)	The execution and performance of this Agreement by the Owner (i) will not violate or, as applicable, have not violated any provision of law, rule or regulation, or any order of any court or other agency or governmental body, and (ii) will not violate or, as applicable, have not violated any provision of any indenture, agreement, mortgage, mortgage note, or other instrument to which the Owner is a party or by which it or the Project is bound, and (iii) will not result in the creation or imposition of any prohibited encumbrance of any nature.

(c)	At the time of execution and delivery of this Agreement, the Owner has good and marketable title to the premises constituting the Project free and clear of any lien or encumbrance (subject to encumbrances created pursuant to this Agreement, any loan documents relating to the Project or other permitted encumbrances).

(d)	There is no action, suit, or proceeding at law or in equity or by or before any governmental instrumentality or other agency now pending or, to the knowledge of the Owner, threatened against or affecting it or any of its properties or rights that, if adversely determined, would materially impair its right to carry on business substantially as now conducted (and as now contemplated by this Agreement) or would materially adversely affect its financial condition.

(e)	The Project constitutes or will constitute a qualified low-income building or qualified low-income project, as applicable, as defined in Section 1602, Section 42, or any applicable regulations.

(f)	Each unit in the Project contains complete facilities for living, sleeping, eating, cooking, and sanitation (unless the Project qualifies as a single-room occupancy project or transitional housing for the homeless), which are to be used on other than a transient basis.

(g)	All units subject to Section 1602 and Section 42 shall be leased and rented or made available to members of the general public who qualify for occupancy thereof under the applicable election specified in Section 42(g)(1) of the Code (“Low-Income Tenants”).

(h)	The Owner shall comply fully with the requirements of the Fair Housing Act as it may from time to time be amended.

(i)	The Owner shall not refuse to lease a unit to the holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder.

(j)	Each low-income unit is and will remain suitable for occupancy.

(k)	Subject to the requirements of Section 42, Section 1602, and this Agreement, the Owner may sell, transfer, or exchange the entire Project, at any time, but the Owner shall notify in writing and obtain the agreement of any buyer or successor or other person acquiring the Project or any interest therein that such acquisition is subject to the requirements of this Agreement and to the requirements of Section 1602, Section 42, and any applicable regulations.  This provision shall not act to waive any other restriction on sale, transfer, or exchange of the Project or any low-income portion of the Project.  The Owner agrees that Minnesota Housing may void any sale, transfer, or exchange of the Project if the buyer or successor or other person fails to assume in writing the requirements of this Agreement and the requirements of Section 1602 and Section 42.

(l)	The Owner shall notify Minnesota Housing in writing of any sale, transfer, or exchange of the entire Project or any low-income portion of the Project.  The Owner shall obtain all required Minnesota Housing approvals of the sale, transfer, or exchange as described in the Minnesota Housing Finance Agency Housing Tax Credit Program Procedural Manual (the “Procedural Manual”).  The notification to Minnesota Housing shall be made in the manner described in the Procedural Manual.

(m)	The Owner shall not demolish any part of the Project or substantially subtract from any real or personal property of the Project or permit the use of any residential rental unit for any purpose other than rental housing during the term of this Agreement unless required by law.

(n)	If the Project, or any part thereof, shall be damaged or destroyed or shall be condemned or acquired for public use, the Owner will use its best efforts to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction, or to relieve the condemnation, and thereafter to operate the Project in accordance with the terms of this Agreement.

(o)	The Owner has not executed and shall not execute any other agreement with provisions contradictory to, or in opposition to, the provisions hereof, and the requirements of this Agreement are paramount and controlling as to the rights and obligations set forth herein and supersede any other requirements in conflict herewith.

(p)	Upon request by Minnesota Housing, and as required by the Procedural Manual, the Owner shall provide Minnesota Housing with a completed Characteristic of Tenant Household Form detailing the Project’s demographic characteristics.

(q)	The Owner shall fully comply with the requirements of Section 42, Section 1602, and any applicable regulations, as they may from time to time be amended during the term of this Agreement.

SECTION 4 - INCOME RESTRICTIONS; RENTAL RESTRICTIONS

The Owner represents, warrants, and covenants that throughout the term of this Agreement and in order to satisfy the income and rental restrictions required by Section 1602 and Section 42 (the “Occupancy Restrictions”):

(a)	The determination of whether a tenant meets the low-income requirement shall be made by the Owner at least annually on the basis of the current income of the tenant.

(b)	In accordance with Section 42(g)(1) of the Code, the Owner has elected that       percent or more of the residential units in the Project shall be occupied by individuals whose income is       percent or less of area median gross income.

(c)	All units subject to Section 1602 and Section 42 shall be rent-restricted in accordance with Section 42(g)(2) of the Code.

(d)	The applicable fraction (as defined in Section 42(c)(1) of the Code) for each building for each taxable year in the Extended Use Period (as defined herein) will not be less than the Applicable Fraction for each building specified in Exhibit B attached hereto.  

(e)	The applicable fraction (as defined in Section 42(c)(1) of the Code) for the Project for each taxable year in the Extended Use Period will not be less than the Applicable Fraction for the Project specified in Exhibit C attached hereto.  

SECTION 5 - ADDITIONAL RESTRICTIONS

Exhibit C attached hereto sets forth certain additional obligations of the Owner with respect to the Project upon which the award of the Section 1602 Loan has been based and with which the Owner covenants to comply throughout the Extended Use Period.  The obligations listed in Exhibit C must be consistent with the Project’s original reservation and binding agreement and, if applicable, carryover agreement, with the exception of approved amendments.

SECTION 6 - TERM OF AGREEMENT

(a)	The following definitions shall apply to this Section 6.

(1)	“Compliance Period” means, with respect to any building that is part of the Project, the period of 15 taxable years beginning with the first taxable year of the credit period with respect thereto.

(2)	“Extended Use Period” means, with respect to any building that is part of the Project, the period beginning on the first day in the Compliance Period on which such building is part of a qualified low-income housing project and ending on the date that is 15 years after the close of the Compliance Period.

(b)	This Agreement and the Owner’s obligation to comply with Section 1602, Section 42, and the Occupancy Restrictions shall commence on the first day of the Compliance Period and shall end at the close of the Extended Use Period.

(c)	Notwithstanding Section 6(b) hereof, the Extended Use Period for any building that is part of the Project may terminate on the date the building is acquired by foreclosure (or instrument in lieu of foreclosure) unless the Secretary of the Treasury determines that such acquisition is part of an arrangement with the taxpayer, a purpose of which is to terminate the Extended Use Period.

(d)	The Section 42 rent requirements shall continue for a period of three years following the termination of the Extended Use Period pursuant to Section 6(c) hereof.  Throughout the term of this Agreement and during such three-year period, the Owner shall not evict or terminate the tenancy of an existing tenant of any low-income unit other than for good cause and shall not increase the gross rent above the maximum allowed under Section 42 with respect to such low-income unit.

SECTION 7 - ENFORCEMENT OF ADDITIONAL RESTRICTIONS

(a)	The Owner shall permit, during normal business hours and upon reasonable notice, any duly authorized representative of Minnesota Housing to inspect any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants that pertain to compliance with the terms of this Agreement.

(b)	The Owner shall submit any other information, documents or certifications requested by Minnesota Housing that Minnesota Housing shall deem reasonably necessary to substantiate the Owner’s continuing compliance with the provisions of this Agreement and the requirements of Section 1602 and Section 42.

SECTION 8 - ENFORCEMENT OF OCCUPANCY RESTRICTIONS

(a)	The Owner covenants that it will not knowingly take or permit any action that would result in a violation of the requirements of Section 1602, Section 42, any applicable regulations, or this Agreement.  The Owner covenants to take any lawful action (including amendment of this Agreement as may be necessary, in the opinion of Minnesota Housing) to comply fully with Section 42 and with all applicable rules, rulings, policies, procedures, regulations, or other official statements promulgated or proposed by Treasury or the IRS from time to time pertaining to the Owner’s obligations under Section 42 or Section 1602 and affecting the Project.

(b)	The Owner acknowledges that the primary purpose for requiring compliance by the Owner with the requirements of this Agreement is to assure compliance of the Project and the Owner with Section 42, Section 1602, and any applicable regulations, AND BY REASON THEREOF, THE OWNER IN CONSIDERATION FOR RECEIVING THE SECTION 1602 FUNDS FOR THIS PROJECT HEREBY AGREES THAT MINNESOTA HOUSING, TREASURY, AND ANY INDIVIDUAL WHO MEETS THE INCOME LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER PROSPECTIVE, PRESENT OR FORMER OCCUPANT) SHALL BE ENTITLED, FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS AGREEMENT IN A STATE COURT OF COMPETENT JURISDICTION.  The Owner further acknowledges that the beneficiaries of the Owner’s obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder.

(c)	The Owner hereby agrees that the representations and covenants set forth herein may be relied upon by Minnesota Housing and all persons interested in Project compliance under Section 42, Section 1602, and any applicable regulations.

(d)	The Owner acknowledges that Minnesota Housing is required, pursuant to Section 42(m)(1)(B)(iii) of the Code and Section 1.42-5 of the Treasury regulations with respect to Section 42 and pursuant to ARRA with respect to Section 1602, to establish a procedure to monitor the Owner’s and the Project’s compliance with the requirements of Section 42 and Section 1602, which procedure includes the monitoring of the Owner’s compliance with the Additional Restrictions, if any, set forth in Exhibit C attached hereto.  In addition, Minnesota Housing may be required to notify the IRS or Treasury of any noncompliance.  

SECTION 9 - MISCELLANEOUS

(a)	Severability.  The invalidity of any clause, part, or provision of this Agreement shall not affect the validity of the remaining portions thereof.

(b)	Notices.  All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by certified or registered mail, return receipt requested, to the parties hereto at the addresses set forth below, or to such other place as a party may from time to time designate in writing.

	To Minnesota Housing:	ATTENTION:  SECTION 1602
		Minnesota Housing Finance Agency
		400 Sibley Street, Suite 300
		St. Paul, MN  55101
	
	To the Owner:	ATTENTION:     
		     
		     
		     

Minnesota Housing and the Owner may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent.

(c)	Amendment.  Notwithstanding anything to the contrary contained herein, this Agreement may be amended by a written agreement between Minnesota Housing and the Owner, which agreement shall be effective upon execution thereof by Minnesota Housing and the Owner and the recording of the amendment with the County Recorder or Registrar of Titles of the County in which the Project is located.  The Owner agrees that it will take all actions necessary to effect amendment of this Agreement as may be necessary to comply with Section 42, ARRA, and any applicable rules, regulations, policies, procedures, rulings, or other official statements pertaining to the Section 1602 Funds.

(d)	Subordination of Agreement.  This Agreement and the restrictions hereunder are subordinate to the loans and loan documents, if any, on the Project except insofar as Section 42(h)(6)(E)(ii) of the Code requires otherwise (relating to the three-year period of eviction and rent restrictions following the early termination of the Extended Use Period in accordance with Section 6(c) hereof).

(e)	Governing Law.  This Agreement shall be governed by the laws of the State of Minnesota and, where applicable, the laws of the United States of America.

(THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK)

	IN WITNESS WHEREOF, the Owner has caused this Agreement to be signed by its duly authorized representatives, as of the day and year first written above.

OWNER:

	     

	By:     

	Name:     

	Title:     

	
STATE OF MINNESOTA	)
	)  ss
COUNTY OF      	)

	The foregoing instrument was acknowledged before me this       day of      ,       by      ,       of      , a      , on behalf of the      .

	______________________________
	Notary Public

This document drafted by:
Minnesota Housing Finance Agency
400 Sibley Street, Suite 300
St. Paul, MN  55101

EXHIBIT A
Declaration of Land Use Restrictive Covenants

Legal Description

EXHIBIT B
Declaration of Land Use Restrictive Covenants

Applicable Fraction

BIN #			BUILDING ADDRESS			APPLICABLE FRACTION*

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*	THE BUILDING APPLICABLE FRACTION STATED ON THIS FORM MUST MATCH THE BUILDING APPLICABLE FRACTION STATED ON MINNESOTA HOUSING FORM HTC 28, BUILDING MAP.  

EXHIBIT C
Declaration of Land Use Restrictive Covenants

Minnesota Housing Project Summary and Additional Restrictions

The award of the Section 1602 Loan is based upon the following:

1.	Project Name:       

2.	Project Number:       	Supplemental Number:       

3.	Project Location:       

4.	Total Units:       		Section 1602 Units:       

5.	Partnership Name:       

6.	Partnership Address:       

7.	Name(s) of General Partner(s):	     

						     

8.	Name(s) of Non-Profit General Partner(s):	     

		     

9.	Owner Taxpayer I.D. No.:       

10.	Non-Profit Tax I.D. No.:       

11.	 Total Eligible Basis:       

12.	Section 1602 Loan Amount:       

The Owner represents, warrants, and covenants that throughout the term of this Agreement:

Applies 	Does Not
to Project	Apply to Project

(Check appropriate line for each item)

(a)					Check Minimum Set-Aside election

				(1)  At least 20 percent or more of the total residential units in the Project are both rent-restricted and occupied by individuals whose income is 50 percent or less of area median income; or

				(2) At least 40 percent or more of the total residential units in the Project are both rent-restricted and occupied by individuals whose income is 60 percent or less of area median income.

(b)				The Project must conform to IRS and HUD guidelines governing combining low-income housing credits (“Credits”) with the HOME Investment Partnership Program under 24 CFR Part 92.  

(c)				A Qualified Nonprofit Organization (as defined in Section 42(h)(5)(C) of the Code) will own an interest in the Project and materially participate in the operation of the Project throughout the compliance period as required by Section 42(h)(5) of the Code.

(d)				The Owner agrees to lease       percent (Project Fraction) of the total units in the Project to individuals and families whose income is       percent or less of the area median gross income (including adjustments for family size) as determined in accordance with Section 42 (“Low-Income Tenants”) and shall lease units in each building in the Project to Low-Income Tenants according to the applicable fraction set forth in Exhibit B attached hereto.

(e)				The Project shall provide family housing that is not restricted to persons 55 years or older in which at least 75 percent of the Section 1602 units contain two or more bedrooms and at least       of the 75 percent shall contain units with three or more bedrooms.  The tenant selection plan must give priority to families with minor children.

(f)				The Project shall provide at least  50 percent or 75 percent of the Section 1602 units for single room occupancy housing with one bedroom or less with rents affordable at 30 percent of median income.

(g)				The Project shall rent at least  25 percent or  50 percent of the total units to persons with mental illness, brain injury, drug dependency, developmental disabilities, or physical disabilities in a manner consistent with Minnesota Statutes, Section 462A.222, Subdivision 3, subparagraph (d)(3), and shall obtain a commitment from a public or private social services agency to provide services consistent with applicable state licensing requirements for the services. 

Applies 		Does Not
to Project	Apply to Project
 
(Check appropriate line for each item)

(h) 				Rental Assistance requirements apply to the Project as indicated below:

(1)       at least 51 percent of the total units shall be set aside for project-based rental assistance; or

(2)       at least 20 percent but less than 51 percent of the total units shall be set aside for project-based rental assistance; or

(3)       at least 10 percent but less than 20 percent of the total units shall be set aside for project-based rental assistance

(4) The Owner shall comply with the requirements of a cooperatively developed housing plan to provide other rental assistance (e.g., Section 8, portable tenant-based, McKinney Vento Shelter Plus Care rent assistance or other similar programs approved by Minnesota Housing) to meet the existing need as outlined in the Cooperative Agreement dated       between the Owner and       (the local housing authority or other similar entity).

In addition to (1), (2), (3) or (4) as checked above, the Owner agrees to comply with all performance commitments and program requirements for the specific rental assistance type as contained in the rental assistance program guidelines and the requirements contained in the Procedural Manual.

(i)					After the end of the initial 15-year Compliance Period, the Owner shall transfer ownership of 100 percent of the Section 1602 units in the Project to tenant ownership.  The transfer shall be in accordance with the Owner’s transfer plan as initially submitted and amended, and accepted by Minnesota Housing.  The plan shall incorporate a limited partnership ownership exit strategy and provide for services including homeownership education and training.  The purchase price for each unit at time of sale shall be affordable to households with incomes meeting Section 1602 eligibility requirements.  To be eligible, the buyer must have had a Section 1602-qualifying income at the time of initial occupancy or time of purchase.  Until the time the Section 1602 units are purchased by a qualified tenant or if the Section 1602 units are not acquired by a qualified tenant, the Owner will extend the duration of low-income use for the longest period (30 years), and the Owner agrees that Section 42(h)(6)(E)(i)(II) and 42(h)(6)(F) of the Code shall not apply to the Project.

Applies 	Does Not
to Project	Apply to Project

(Check appropriate line for each item)

(j)				The Owner agrees that the Project will serve members of an underserved population defined as Single Head of Household with Minor Children, Individuals and Households of Color.  The Owner further agrees to use marketing efforts that will attract the above-defined underserved population, including collaborations and partnerships with members or organizations addressing the needs of the underserved population.

(k)				The Owner agrees to preserve existing Credit units in a Project that received a previous Minnesota Housing allocation of Credits; and 

					The Owner agrees to maintain the Credit units in the Project for at least 30 years, and Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) of the Code shall not apply to the Project.  

(l)				The Owner agrees that      % (       units) of the total units of the Project will be rented to households experiencing long-term homelessness as defined in Minnesota Rule 4900.3705, Subpart 10a.  

				If the necessary rental assistance, operating support, or tenant service funding for the Project is withdrawn or terminated due to reasons not attributable to the actions or inactions of the Owner, and alternative funding is unavailable, and the Project is otherwise in full compliance with all the terms of the funding for the Project, the Owner may petition Minnesota Housing to modify its requirements.  Minnesota Housing may (i) relax or eliminate the requirement for supportive services or (ii) relax or eliminate the requirement that the assisted units be occupied by households experiencing long-term homelessness.  If Minnesota Housing eliminates the requirement that the assisted units be occupied by households experiencing long-term homelessness, Minnesota Housing will permit the Owner to phase out the targeting of units to households experiencing long-term homelessness and convert the rents of those units to the 50% Section 1602 rent limit without requiring repayment of the Section 1602 Loan, provided that more restrictive threshold, selection priority, or funding requirements do not apply.  If such conversion occurs, the above-described 50% Section 1602 rent limit and the Section 42 minimum set-aside elected for the Project by the Owner must be maintained for the remainder of the Extended Use Period.

				The Owner agrees to comply with the reporting requirements contained in the Long-Term Homelessness Rider to Declaration of Land Use Restrictive Covenants and shall attach a copy of such Rider to this Declaration.

Applies 	Does Not
to Project	Apply to Project
 
(Check appropriate line for each item)

(m)				The Owner agrees to provide high speed internet access via installation of all appropriate infrastructure and connections for cable, DSL, or wireless internet service to every unit in the Project.

(n)	X			The Owner agrees that the Occupancy Restrictions shall apply for a period of 30 years beginning with the first day of the Compliance Period, and Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) of the Code shall not apply to the Project.

(o)				For a period of five years following the placed in service date for each building, (i)       percent of the Section 1602 units shall have gross rents established at a level not greater than 30 percent of 30 percent of area median income, and (ii)       percent of the Section 1602 units shall have gross rents established at a level not greater than 30 percent of 50 percent of area median income, and (iii)       percent of the Section 1602 units shall have gross rents established at a level not greater than 30 percent of 60 percent of area median income.

					Provided that more restrictive threshold, selection priority, or funding requirements do not apply, rents may, following the five-year restricted period, be increased for the applicable restricted units on a pro-rata basis over a three-year period beginning on the last day of the five-year restriction period according to the following chart:

Year	30% of 50%
Rent Levels	30% of 30%
Rent Levels	
			
Years 1-5	30% of 50%	30% of 30%	
Year 6	30% of 53%	30% of 33%	
Year 7	30% of 57%	30% of 37%	
Year 8	30% of 60%	30% of 40%	

(p)				The Owner agrees to preserve federally assisted low-income housing; the Owner shall continue renewals of existing project-based housing subsidy payment contract(s) for as long as the assistance is available; and

The Owner shall maintain the Section 1602 units in the Project for at least 30 years, and Sections 42(h)(6)(E)(i)(II) and 42(h)(6)(F) of the Code shall not apply to the Project.