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

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EXHIBIT 1 residential rental projects in the State of California similar to the Project; provided, however, such independent consultant may be a representative of the Lender or an independent consultant chosen by the Lender. The Borrower shall provide notice to the Issuer and the Lender 30 days prior to such inspection and permit representatives of the Issuer and the Lender to accompany the consultant on its inspection of the Project. Within 30 days after the inspection, the consultant shall prepare a written report evaluating the management and maintenance of the Project by the Borrower within the previous 12 -month period. The Borrower shall implement within 90 days of its receipt of such report, or any longer period approved by the Issuer at the request of the Borrower, any reasonable recommendations set forth in such report that provide for the maintenance of the Project in a condition that is substantially similar to the condition of the Project on the Completion Date giving consideration to normal wear and tear of the Project; provided, however, any consideration of normal wear and tear of the Project shall not allow any significant deferred maintenance of the Project. At the request of the Borrower or the Lender, the Issuer shall meet with such party or parties to consider the manner in which the consultant's recommendations will be implemented by the Borrower; provided, however, that the Issuer shall be under no obligation to waive or modify any of such recommendations. Any failure by the Borrower to implement any recommendation as set forth in the preceding sentence shall constitute an Event of Default hereunder and shall be enforced as set forth in Section 15 hereof. (c) Notwithstanding the provisions of Section 4, above, not less than 20% of the units in the Project shall, for a period of 55 years from the Closing Date, be designated as Low Income Units which are occupied, or held vacant for occupancy, by Low Income Tenants and the monthly rent paid by the persons occupying the Low Income Units shall be Affordable Rent. The requirements of Section 4 shall apply to the rental of Low Income Units for the duration of said 55 - year period. Section 5. Tax Status of the Bonds. The Borrower and the Issuer each hereby represents, as of the date hereof, and warrants, covenants and agrees that: (a) It will not knowingly take or permit, or omit to take or cause to be taken, as is appropriate, any action that would adversely affect the exclusion from gross income for federal income tax purposes or the exemption from California personal income taxation of the interest on the Bonds and, if it should take or permit, or omit to take or cause to be taken, any such action, it will take all lawful actions necessary to rescind or correct such actions or omissions promptly upon obtaining knowledge thereof; (b) It will take such action or actions as may be necessary, in the written opinion of Bond Counsel filed with the Issuer, the Trustee, the Lender and the Borrower, to comply fully with the Act and all applicable rules, rulings, policies, procedures, Regulations or other official statements promulgated, proposed or made by the Department of the Treasury or the Internal Revenue Service pertaining to obligations issued under Section 142(d) of the Code to the extent necessary to maintain the exclusion from gross income for federal income tax purposes of interest on the Bonds; and (c) It will file of record such documents and take such other steps as are necessary, in the written opinion of Bond Counsel filed with the Issuer, the Trustee, the Lender and the Borrower, in order to insure that the requirements and restrictions of this Regulatory Agreement 11 4-15