FULL AGENDA_2018-12-18 (2) - Laserfiche WebLink

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EXHIBIT 1 Section 4. Low Income Tenants. Pursuant to the requirements of the Issuer and Section 142(d) of the Code and applicable provisions of the Act, the Borrower hereby represents, as of the date hereof, and warrants, covenants and agrees as follows: (a) During the Qualified Project Period: (i) Not less than 20% of the units in the Project shall be designated as Low Income Units which are occupied, or held vacant for occupancy, and shall be continuously occupied by Low Income Tenants. All of the Low Income Units shall be generally distributed in terms of location and number of bedrooms throughout the Project. The Low Income Units shall be of comparable quality and offer a range of sizes and number of bedrooms comparable to those units which are available to other tenants. Tenants in the Low Income Units shall have equal access and enjoyment to all common facilities of the Project. (ii) The monthly rent paid by the persons occupying the Low Income Units shall be Affordable Rent. (iii) Low Income Units shall remain available on a priority basis for occupancy by Low Income Tenants at an Affordable Rent. A unit occupied by a Low Income Tenant who at the commencement of the occupancy is a Low Income Tenant shall be treated as occupied by a Low Income Tenant until a recertification of such tenant's income in accordance with Section 4(d) below demonstrates that such tenant no longer qualifies as a Low Income Tenant and thereafter any residential unit in the Project is occupied by a new resident other than a Low Income Tenant. Moreover, a unit previously occupied by a Low Income Tenant and then vacated shall be considered occupied by a Low Income Tenant until reoccupied, other than for a temporary period, at which time the character of the unit shall be predetermined. In no event shall such temporary period exceed 31 days. (b) The Borrower will obtain and maintain on file an Income Computation and Certification form, in the form of Exhibit B hereto, from each Low Income Tenant occupying a Low Income Unit, dated the Bond Issuance Date or immediately prior to the initial occupancy of such Low Income Tenant in the Project, as applicable. In addition, the Borrower will provide such further information as may be required in the future by the State of California, the Issuer, the Act, Section 142(d) of the Code and the Regulations, as the same may be amended from time to time, or in such other form and manner as may be required by applicable rules, rulings, policies, procedures or other official statements now or hereafter promulgated, proposed or made by the Department of the Treasury or the Internal Revenue Service with respect to obligations issued under Section 142(d) of the Code. The Borrower shall make a good faith effort to verify that the income provided by an applicant in an income certification is accurate by taking any of the following steps as a part of the verification process: (1) obtain a pay stub for the most recent pay period, (2) obtain an income tax return for the most recent tax year, (3) obtain an income verification form from the applicant's current employer, (4) obtain an income verification form from the Social Security Administration and/or the California Department of Social Services if the applicant receives assistance from either of such agencies, or (5) if the applicant is unemployed and has no such tax return, obtain another form of independent verification. 0 4-12