Common use of Additional Requirements of the Issuer Clause in Contracts

Additional Requirements of the Issuer. In addition to the requirements set forth above and to the extent not prohibited thereby, the Borrower hereby agrees with the Issuer and the Trustee to comply with each of the requirements of the Issuer set forth in this Section 7, as follows: (a) The Borrower shall pay or cause to be paid to the Issuer on the Closing Date, the “Initial City Fee” in an amount equal to $ ; and thereafter, without demand or notice, the Borrower shall pay to the Issuer (or other Administrator designated in writing by the Issuer) an annual monitoring fee (the “Annual City Fee”). The Annual City Fee shall be in an amount equal to $ , representing .125% of the aggregate principal amount of the Bonds issued on the Closing Date, payable in equal semiannual installments of $ , in advance, on each February 1 and August 1, commencing February 1, 2011. Under no circumstances shall the Annual City Fee exceed any limitation under Section 148 of the Code. The Annual City Fee shall be payable until the end of the Qualified Project Period. In the event that the principal of and the interest on the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are discharged prior to the termination of this Regulatory Agreement (other than by reason of the issuance of refunding bonds), the Borrower shall pay to the Issuer, if so requested by the Issuer, an amount equal to the remaining Annual City Fees, at a present value to the date of payment (using a discount rate equal to the aggregate true interest cost of the Bonds outstanding immediately before the Bonds are paid in full. Such payment shall be due to the Issuer at such time as the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are discharged. (b) All tenant lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Borrower and shall be maintained as required by the Issuer, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Issuer (including the Administrator). (c) The Borrower shall submit to the Issuer, within fifteen (15) days after receipt of a request therefor, any information or completed forms requested by the Issuer in order to comply with reporting requirements of the Internal Revenue Service or the State. (d) The Borrower shall not discriminate on the basis of race, creed, color, religion, sex, source of income, sexual orientation, marital status, national origin, ancestry or handicap in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the construction, operation or management of the Project, and will not discriminate on the basis of household size as long as the tenants meet the household size standards of Section 8 of the Housing Act. Further, the Borrower shall not permit occupancy in any unit in the Project by more persons than is permissible under the Section 8 household size standards. (e) The Borrower acknowledges that the Issuer may appoint an Administrator other than the Issuer to administer this Regulatory Agreement and to monitor performance by the Borrower of the terms, provisions and requirements hereof. In such event, the Borrower shall comply with any reasonable request by the Issuer to deliver to any such Administrator, in addition to or instead of the Issuer, any reports, notices or other documents required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Issuer. (f) To the extent permitted by law, the Borrower will make the units reserved pursuant to Section 6(a) available on a priority basis to households comprised of persons whom (i) the Issuer has informed the Borrower have been displaced by the Issuer or its political subdivisions from other development located within San Xxxx or (ii) are currently living or working in San Xxxx or who can demonstrate they previously resided in San Xxxx. The Borrower shall not discriminate against tenant applicants on the basis of source of income (i.e., AFDC or SSI), and the Borrower shall consider a prospective tenant’s previous rent history of at least one year as evidence of such tenant’s ability to pay the applicable rent for the unit to be occupied (ability to pay shall be demonstrated if the tenant can show that the tenant has paid on time the same percentage or more of the tenant’s income for rent as the tenant would be required to pay for the rent applicable to the unit to be occupied); provided that such tenant paid the same percentage or more of such tenant’s income for rent as such tenant will be paying under the proposed lease. The Borrower may consider such factors as it deems important when reviewing and approving a tenant’s application for occupancy and an existing tenant’s continued occupancy. (g) If a Low Income Tenant’s Adjusted Income, as of the most recent determination thereof, exceeds 140% of the of the applicable income limit for a Low Income Tenant of the same family size, the tenancy of such Low Income Tenant shall, to the extent permitted by law, be terminated as soon as legally possible and the available unit shall within a reasonable time be rented to (or held vacant and available for immediate occupancy by) a Low Income Tenant. (h) Each of the requirements of Sections 3, 4 and 6 hereof is hereby incorporated as a specific requirement of the Issuer, whether or not required by California or federal law, and shall be in force for the term of this Regulatory Agreement. (i) In addition, the Borrower shall comply with the conditions set forth in Exhibit A to CDLAC Resolution No. , adopted on , 2010 (the “CDLAC Conditions”), as they may be modified or amended from time to time, which conditions are incorporated herein by reference and made a part hereof. The Borrower will prepare and submit to CDLAC, not later than each anniversary of the Closing Date until the end of the Qualified Project Period, a Certification of Compliance, in substantially the form attached to the CDLAC Conditions, executed by an authorized representative of the Borrower. The Issuer and the Administrator shall have no obligation to monitor the Borrower’s compliance with the CDLAC Conditions. (j) In addition, the Borrower shall comply with the Affordability Restriction. (k) The Borrower agrees to maintain the Project, or cause the Project to be maintained, during the term of this Regulatory Agreement (i) in a reasonably safe condition and (ii) in good repair and in good operating condition, ordinary wear and tear excepted, making from time to time all necessary repairs thereto and renewals and replacements thereof such that the Project shall be substantially the same condition at all times as the condition it is in at the time of the completion of the construction of the Project with the proceeds of the Bonds. (l) The requirements of this Section 7 shall be in effect for the term of this Regulatory Agreement; provided that any of the foregoing requirements of the Issuer may be expressly waived by the Issuer, in its sole discretion (except (i) above, which may be expressly waived only by CDLAC), in writing, but (i) no waiver by the Issuer of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the extent the Issuer and the Borrower have received an opinion of Bond Counsel (a copy of which shall be filed by the Borrower with the Trustee) that any such other provision is not required by the Act and may be waived without adversely affecting the exclusion from gross income of interest on the Bonds for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Issuer and the Borrower receive a written opinion of Bond Counsel (a copy of which shall be filed by the Borrower with the Trustee and the Bondowner Representative) to the effect that compliance with any such requirement would cause interest on the Bonds to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Act or any other state or federal law.

Additional Requirements of the Issuer. In addition to the requirements set forth above and to the extent not prohibited thereby, the Borrower Owner hereby agrees with the Issuer and the Trustee to comply with each of the requirements of the Issuer set forth in this Section 7, as follows: (a) The Borrower Owner shall pay or cause to be paid to the Issuer on the Closing Delivery Date, the “Initial City Fee” in an amount equal to $ ; and thereafter, without demand or notice, the Borrower Owner shall pay or cause to be paid to the Issuer (or other Administrator designated in writing by the Issuer) an annual monitoring fee (the “Annual City Fee”). The Annual City Fee shall shall, to and including the Conversion Date, be in an amount equal to $ , representing .1250.125% of the aggregate maximum principal amount of the Bonds issued and shall, from and after the Conversion Date, be in an amount equal to 0.125% of the amount of Bonds outstanding immediately after the Conversion Date, subject to a minimum Annual City Fee of $7,500. The Annual City Fee shall be payable by the Owner in the following order of priority: first, $7,500 will be paid on par and concurrently with debt service on the Closing DateBonds and, second, $20,000 will be paid on a subordinate basis to the payment of debt service on the Bonds. The Annual City Fee shall be payable in equal semiannual installments of $ installments, in advance, on each February 1 and August 1, commencing February on 1, 20112012. Under no circumstances shall the Annual City Fee exceed any limitation under Section 148 of the Code. The Annual City Fee shall be payable until the end of the Qualified Project Period. In the event that the principal of and the interest on the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are is discharged prior to the termination of this Regulatory Agreement (other than by reason of the issuance of refunding bondsbond), the Borrower Owner shall pay to the Issuer, if so requested by the Issuer, an amount equal to the remaining Annual City Fees, at a present value to the date of payment (using a discount rate equal to the aggregate true interest cost of the Bonds outstanding immediately before the Bonds are paid in fullBond). Such payment shall be due to the Issuer at such time as the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are is discharged. (b) All tenant lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Borrower Owner and shall be maintained as required by the Issuer, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Issuer (including the Administrator). (c) The Borrower Owner shall submit to the Issuer, within fifteen (15) days after receipt of a request therefor, any information information, records or completed forms requested by the Issuer in order to comply with reporting requirements of the Internal Revenue Service or the State. (d) The Borrower Owner shall not discriminate on the basis of race, creed, color, religion, sex, source of income, sexual orientation, marital status, national origin, ancestry or handicap in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the construction, operation or management of the Project, and will not discriminate on the basis of household size as long as the tenants meet the household size standards of Section 8 of the Housing Act. Further, the Borrower Owner shall not permit occupancy in any unit in the Project by more persons than is permissible under the Section 8 household size standards. (e) The Borrower Owner acknowledges that the Issuer may appoint an Administrator other than the Issuer to administer this Regulatory Agreement and to monitor performance by the Borrower Owner of the terms, provisions and requirements hereof. In such event, the Borrower Owner shall comply with any reasonable request by the Issuer to deliver to any such Administrator, in addition to or instead of the Issuer, any reports, notices or other documents required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Issuer. (f) To the extent permitted by law, the Borrower Owner will make the units reserved pursuant to Section 4(a) and Section 6(a) available on a priority basis to households comprised of persons whom (i) the Issuer has informed the Borrower Owner have been displaced by the Issuer or its political subdivisions from other development developments located within the City of San Xxxx or (ii) are currently living or working in the City of San Xxxx or who can demonstrate they previously resided in the City of San Xxxx. The Borrower Owner shall not discriminate against tenant applicants on the basis of source of income (i.e., AFDC TANF or SSI), and the Borrower Owner shall consider a prospective tenant’s previous rent history of at least one year as evidence of such tenant’s ability to pay the applicable rent for the unit to be occupied (ability to pay shall be demonstrated if the tenant can show that the tenant has paid on time the same percentage or more of the tenant’s income for rent as the tenant would be required to pay for the rent applicable to the unit to be occupied); provided that such tenant paid the same percentage or more of such tenant’s income for rent as such tenant will be paying under the proposed lease. The Borrower Owner may consider such factors as it deems important when reviewing and approving a tenant’s application for occupancy and an existing tenant’s continued occupancy. (g) If a Very Low Income Tenant’s Adjusted Income, as of the most recent determination thereof, exceeds 140% of the of the applicable income limit for a Very Low Income Tenant of the same family size, the tenancy of such Very Low Income Tenant shall, to the extent permitted by law, be terminated as soon as legally possible and the available unit shall within a reasonable time be rented to (or held vacant and available for immediate occupancy by) a Very Low Income Tenant. (h) Each of the requirements of Sections 3, 4 and 6 hereof is hereby incorporated as a specific requirement of the Issuer, whether or not required by California or federal law, and shall be in force for the term of this Regulatory Agreement. (i) In addition, the Borrower Owner shall comply with the conditions set forth in Exhibit A to CDLAC Resolution No. 12-005, adopted on January 18, 2010 2012 (the “CDLAC Conditions”), as they such conditions may be modified or amended from time to time, which conditions are incorporated herein by reference and made a part hereof. The Borrower Owner will prepare and submit to CDLAC, not later than each anniversary of the Closing Delivery Date until the end of the Qualified Project Period, a Certification of Compliance, in substantially the form attached to the CDLAC Conditions, executed by an authorized representative of the BorrowerOwner. The Issuer and the Administrator shall have no obligation to monitor the BorrowerOwner’s compliance with the CDLAC Conditions. (j) In addition, the Borrower shall comply with The restrictions set forth the Affordability RestrictionRestriction between the Owner and the Issuer. (k) The Borrower agrees to maintain Owner will pay the Project, or cause the Project to be maintained, during the term of this Regulatory Agreement (i) in a reasonably safe condition and (ii) in good repair and in good operating condition, ordinary wear and tear excepted, making from time to time Issuer all necessary repairs thereto and renewals and replacements thereof such that the Project shall be substantially the same condition at all times as the condition it is in at the time of the completion of amounts required by the construction of Loan Agreement, and will indemnify the Project with Issuer and the proceeds of Trustee as provided in the BondsLoan Agreement. (l) The requirements of this Section 7 of this Regulatory Agreement shall be in effect for the term of this Regulatory Agreement; provided that any of the foregoing requirements of the Issuer Section 7 of this Regulatory Agreement may be expressly waived by the Issuer, in at its sole discretion (except (iSection 7(i) above, which may be expressly waived only by CDLAC), in writing, but (i) no waiver by the Issuer of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the extent the Issuer and the Borrower have has received an opinion of Bond Counsel (a copy of which shall be filed by to the Borrower with the Trustee) effect that any such other provision is not required by the Act and may be waived without adversely affecting the exclusion from gross income of interest on the Bonds for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Issuer and the Borrower Owner receive a written opinion of Bond Counsel (a copy of which shall be filed by the Borrower with the Trustee and the Bondowner Representative) to the effect that compliance with any such requirement would cause interest on the Bonds to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Act or any other state applicable State or federal law.

Additional Requirements of the Issuer. ﷒ In addition to the requirements set forth above and to the extent not prohibited thereby, the Borrower Owner hereby agrees with the Issuer and the Trustee to comply with each of the requirements of the Issuer set forth in this Section 7, as follows: (a) The Borrower Owner shall pay or cause to be paid to the Issuer on the Closing Delivery Date, the “Initial City Issuer’s Issuance Fee” in an amount equal to $ ; (which represents an amount equal to one- half of one percent (0.5%) of the first $10,000,000 of aggregate principal amount of the Bonds and thereafterone- quarter of one percent (0.25%) of the portion of the principal of the Bonds in excess of $10,000,000). In addition, without demand or notice, the Borrower Owner shall pay or cause to be paid to the Issuer (or other Administrator designated in writing by the Issuer) an annual monitoring fee (the “Issuer’s Annual City Fee”). The Issuer’s Annual City Fee shall be in an annual amount equal to $ , representing .125% of the aggregate principal amount of the Bonds issued on the Closing Date, payable in equal semiannual installments of $ and shall be payable, in advance, on each February 1 the Delivery Date and August on December 1, commencing February 12016, 2011. Under no circumstances shall for the Annual City Fee exceed any limitation under Section 148 period from the Delivery Date to the maturity date of the Code. The Annual City Fee shall be payable until the end of the Qualified Project PeriodBonds. In the event that the principal of and the interest on the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are discharged prior to the termination of this Regulatory Agreement (other than by reason of the issuance of refunding bonds)addition, the Borrower Owner shall pay to the Issuer, if so requested by Issuer on the Issuer, an amount equal to the remaining Annual City Fees, at a present value to earlier of the date of payment (using a discount rate equal to the aggregate true interest cost redemption in full, or maturity date, of the Bonds outstanding immediately before a final Issuer Fee (the Bonds are paid “Issuer’s Final Fee”) in full. Such payment shall be due to the amount of $ , representing the present value of the remaining Issuer at such time Annual Fee for the term of the Regulatory Agreement, as restricted by the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are dischargedCode. (b) All tenant lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Borrower Owner and shall be maintained as required by the Issuer, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Issuer (including the Administrator). (c) The Borrower Owner shall submit to the Issuer, within fifteen (15) days after receipt of a request therefor, any information information, records or completed forms requested by the Issuer in order to comply with reporting requirements of the Internal Revenue Service or the State. (d) The Borrower Owner shall not discriminate on the basis of race, creed, color, religion, sex, source of income, sexual orientation, marital status, national origin, ancestry or handicap in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the construction, operation or management of the Project, and will not discriminate on the basis of household size as long as the tenants meet the household size standards of Section 8 of the Housing Act. Further, the Borrower Owner shall not permit occupancy in any unit in the Project by more persons than is permissible under the Section 8 household size standards. (e) The Borrower Owner acknowledges that the Issuer may appoint an Administrator other than the Issuer to administer this Regulatory Agreement and to monitor performance by the Borrower Owner of the terms, provisions and requirements hereof. In such event, the Borrower Owner shall comply with any reasonable request by the Issuer to deliver to any such Administrator, in addition to or instead of the Issuer, any reports, notices or other documents required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Issuer.. OHSUSA:763122734.5 (f) To the extent permitted by law, the Borrower Owner will make the units reserved pursuant to Section 4(a) and Section 6(a) available on a priority basis to households comprised of persons whom (i) the Issuer has informed the Borrower Owner have been displaced by the Issuer or its political subdivisions from other development developments located within the City of San Xxxx or (ii) are currently living or working in the City of San Xxxx or who can demonstrate they previously resided in the City of San Xxxx. The Borrower Xxxx.﷒The Owner shall not discriminate against tenant applicants on the basis of source of income (i.e., AFDC TANF or SSI), and the Borrower Owner shall consider a prospective tenant’s previous rent history of at least one year as evidence of such tenant’s ability to pay the applicable rent for the unit to be occupied (ability to pay shall be demonstrated if the tenant can show that the tenant has paid on time the same percentage or more of the tenant’s income for rent as the tenant would be required to pay for the rent applicable to the unit to be occupied); provided that such tenant paid the same percentage or more of such tenant’s income for rent as such tenant will be paying under the proposed lease. The Borrower Owner may consider such factors as it deems important when reviewing and approving a tenant’s application for occupancy and an existing tenant’s continued occupancy. (g) If a Low Income Tenant’s Adjusted Income, as of the most recent determination thereof, exceeds 140% of the of the applicable income limit for a Low Income Tenant of the same family size, the tenancy of such Low Income Tenant shall, to the extent permitted by law, be terminated as soon as legally possible and the available unit shall within a reasonable time be rented to (or held vacant and available for immediate occupancy by) a Low Income Tenant.Tenant.﷒ (h) Each of the requirements of Sections 3, 4 and 6 hereof is hereby incorporated as a specific requirement of the Issuer, whether or not required by California or federal law, and shall be in force for the term of this Regulatory Agreement. (i) In addition, the Borrower Owner shall comply with the conditions set forth in Exhibit A to CDLAC Resolution No. 15-114, adopted on September 16, 2010 2015, (the “CDLAC Conditions”), as they such conditions may be modified or amended from time to time, which conditions are incorporated herein by reference and made a part hereof. The Borrower Owner will prepare and submit to CDLAC, not later than the Issuer on or before each anniversary of the Closing Date February 1 until the end of the Qualified Project Period, or at such other times as required by the Issuer, a Certification of Compliance, Compliance in substantially the form attached to the CDLAC Conditions, executed by an authorized representative of the BorrowerOwner and the Issuer shall submit such report to CDLAC annually on or before March 1, or at such other times as required by CDLAC. The Issuer and the Administrator shall have no obligation to monitor the BorrowerOwner’s compliance with the CDLAC Conditions. (j) In addition, the Borrower shall comply with the Affordability Restriction. (k) The Borrower Owner agrees to maintain the Project, or cause the Project to be maintained, during the term of this Regulatory Agreement (i) in a reasonably safe condition and (ii) in good repair and in good operating condition, ordinary wear and tear excepted, making from time to time all necessary repairs thereto and renewals and replacements thereof such that the Project shall be in substantially the same condition at all times as it was on completion its rehabilitation using Loan proceeds. (k) The Owner will pay the condition it is in at the time Issuer all of the completion of amounts required by the construction of Loan Agreement, and will indemnify the Project with Issuer and the proceeds of Trustee as provided in the Bonds.Loan Agreement.﷒ (l) The requirements of this Section 7 of this Regulatory Agreement shall be in effect for the term of this Regulatory Agreement; provided that any of the foregoing requirements of the Issuer Section 7 of this Regulatory Agreement may be expressly waived by the Issuer, in at its sole discretion (except (iSection 7(i) above, which may be expressly waived only by CDLAC), in writing, but (i) no waiver by the Issuer of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the extent the Issuer and the Borrower have has received an opinion of Bond Counsel (a copy of which shall be filed by to the Borrower with the Trustee) effect that any such other provision is not required by the Act and may be waived without adversely affecting the OHSUSA:763122734.5 exclusion from gross income of interest on the Bonds for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Issuer and the Borrower Owner receive a written opinion of Bond Counsel (a copy of which shall be filed by the Borrower with the Trustee and the Bondowner Representative) to the effect that compliance with any such requirement would cause interest on the Bonds to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Act or any other state applicable State or federal law.

Additional Requirements of the Issuer. In addition to the requirements set forth above and to the extent not prohibited thereby, the Borrower Owner hereby agrees with the Issuer and the Trustee to comply with each of the requirements of the Issuer set forth in this Section 7, as follows: (a) The Borrower Owner shall pay or cause to be paid to the Issuer on the Closing Delivery Date, the “Initial City Fee” in an amount equal to $ ; and thereafter, without demand or notice, the Borrower Owner shall pay or cause to be paid to the Issuer (or other Administrator designated in writing by the Issuer) an annual monitoring fee (the “Annual City Fee”). The Annual City Fee shall shall, to and including , be in an amount equal to $ , representing .1250.125% of the aggregate principal amount of the Bonds issued on the Closing Delivery Date, payable and shall, from and after the Conversion Date, be in equal semiannual installments of $ , in advance, on each February 1 and August 1, commencing February 1, 2011. Under no circumstances shall the Annual City Fee exceed any limitation under Section 148 of the Code. The Annual City Fee shall be payable until the end of the Qualified Project Period. In the event that the principal of and the interest on the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are discharged prior to the termination of this Regulatory Agreement (other than by reason of the issuance of refunding bonds), the Borrower shall pay to the Issuer, if so requested by the Issuer, an amount equal to the remaining Annual City Fees, at a present value to the date amount of payment (using a discount rate equal to the aggregate true interest cost of the Bonds outstanding immediately before on 653546.doc 4/29/2010 the Bonds are paid in fullBonds). Such payment shall be due to the Issuer at such time as the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are is discharged. (b) All tenant lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Borrower Owner and shall be maintained as required by the Issuer, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Issuer (including the Administrator). (c) The Borrower Owner shall submit to the Issuer, within fifteen (15) days after receipt of a request therefor, any information information, records or completed forms requested by the Issuer in order to comply with reporting requirements of the Internal Revenue Service or the State. (d) The Borrower Owner shall not discriminate on the basis of race, creed, color, religion, sex, source of income, sexual orientation, marital status, national origin, ancestry or handicap in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the construction, operation or management of the Project, and will not discriminate on the basis of household size as long as the tenants meet the household size standards of Section 8 of the Housing Act. Further, the Borrower Owner shall not permit occupancy in any unit in the Project by more persons than is permissible under the Section 8 household size standards. (e) The Borrower Owner acknowledges that the Issuer may appoint an Administrator other than the Issuer to administer this Regulatory Agreement and to monitor performance by the Borrower Owner of the terms, provisions and requirements hereof. In such event, the Borrower Owner shall comply with any reasonable request by the Issuer to deliver to any such Administrator, in addition to or instead of the Issuer, any reports, notices or other documents required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Issuer. (f) To the extent permitted by law, the Borrower Owner will make the units reserved pursuant to Section 4(a) and Section 6(a) available on a priority basis to households comprised of persons whom (i) the Issuer has informed the Borrower Owner have been displaced by the Issuer or its political subdivisions from other development developments located within the City of San Xxxx or (ii) are currently living or working in the City of San Xxxx or who can demonstrate they previously resided in the City of San Xxxx. The Borrower Owner shall not discriminate against tenant applicants on the basis of source of income (i.e., AFDC TANF or SSI), and the Borrower Owner shall consider a prospective tenant’s previous rent history of at least one year as evidence of such tenant’s ability to pay the applicable rent for the unit to be occupied (ability to pay shall be demonstrated if the tenant can show that the tenant has paid on time the same percentage or more of the tenant’s income for rent as the tenant would be required to pay for the rent applicable to the unit to be occupied); provided that such tenant paid the same percentage or more of such tenant’s income for rent as such tenant will be paying under the proposed lease. The Borrower Owner may consider such factors as it deems important when reviewing and approving a tenant’s application for occupancy and an existing tenant’s continued occupancy. (g) If a Very Low Income Tenant’s Adjusted Income, as of the most recent determination thereof, exceeds 140% of the of the applicable income limit for a Very Low Income Tenant of the same family size, the tenancy of such Very Low Income Tenant shall, to the extent permitted by law, be terminated as soon as legally possible and the available unit shall within a reasonable time be rented to (or held vacant and available for immediate occupancy by) a Very Low Income Tenant.. 653546.doc 4/29/2010 (h) Each of the requirements of Sections 3, 4 and 6 hereof is hereby incorporated as a specific requirement of the Issuer, whether or not required by California or federal law, and shall be in force for the term of this Regulatory Agreement. (i) In addition, the Borrower Owner shall comply with the conditions set forth in Exhibit A to CDLAC Resolution No. 09-77, adopted on September 23, 2010 2009 (the “CDLAC Conditions”), as they such conditions may be modified or amended from time to time, which conditions are incorporated herein by reference and made a part hereof. The Borrower Owner will prepare and submit to CDLAC, not later than each anniversary of the Closing Delivery Date until the end of the Qualified Project Period, a Certification of Compliance, in substantially the form attached to the CDLAC Conditions, executed by an authorized representative of the BorrowerOwner. The Issuer and the Administrator shall have no obligation to monitor the BorrowerOwner’s compliance with the CDLAC Conditions. (j) In addition, the Borrower shall comply with The restrictions set forth the Affordability RestrictionRestriction between the Owner and the Issuer. (k) The Borrower agrees to maintain Owner will pay the Project, or cause the Project to be maintained, during the term of this Regulatory Agreement (i) in a reasonably safe condition and (ii) in good repair and in good operating condition, ordinary wear and tear excepted, making from time to time Issuer all necessary repairs thereto and renewals and replacements thereof such that the Project shall be substantially the same condition at all times as the condition it is in at the time of the completion amounts required by Section 10.1 of the construction of Loan Agreement, and will indemnify the Project with Issuer and the proceeds of Trustee as provided in the BondsLoan Agreement. (l) The requirements of this Section 7 of this Regulatory Agreement shall be in effect for the term of this Regulatory Agreement; provided that any of the foregoing requirements of the Issuer Section 7 of this Regulatory Agreement may be expressly waived by the Issuer, in at its sole discretion (except (iSection 7(i) above, which may be expressly waived only by CDLAC), in writing, but (i) no waiver by the Issuer of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the extent the Issuer and the Borrower have has received an opinion of Bond Counsel (a copy of which shall be filed by to the Borrower with the Trustee) effect that any such other provision is not required by the Act and may be waived without adversely affecting the exclusion from gross income of interest on the Bonds for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Issuer and the Borrower Owner receive a written opinion of Bond Counsel (a copy of which shall be filed by the Borrower with the Trustee and the Bondowner Representative) to the effect that compliance with any such requirement would cause interest on the Bonds to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Act or any other state applicable State or federal law.

Additional Requirements of the Issuer. ﷒ In addition to the requirements set forth above and to the extent not prohibited thereby, the Borrower Owner hereby agrees with the Issuer and the Trustee to comply with each of the requirements of the Issuer set forth in this Section 7, as follows: (a) The Borrower Owner shall pay or cause to be paid to the Issuer on the Closing Delivery Date, the “Initial City Governmental Lender’s Closing Fee” in an amount equal to $ ; (which represents an amount equal to one-half of one percent (0.5%) of the first $10,000,000 of aggregate principal amount of the Senior Issuer Notes and thereafterJunior Bonds (the “Obligations”) and one-quarter of one percent (0.25%) of the portion of the principal of the Obligations in excess of $10,000,000). In addition, without demand or notice, the Borrower Owner shall pay or cause to be paid to the Issuer (or other Administrator designated in writing by the Issuer) an annual monitoring fee (the “Annual City Ongoing Governmental Lender Fee”). The Annual City Ongoing Governmental Lender Fee shall be in an annual amount equal to $ , representing .125[Note: this will be 1/8 of 1 % of the aggregate initial principal amount of the Bonds issued on the Closing Datetax-exempt borrowing, payable in equal semiannual installments of $ without reduction] and shall be payable, in advance, on the Delivery Date and on each February 1 and August [April 1, commencing February 1, 2011. ] thereafter. (b) Under no circumstances shall the Annual City Ongoing Governmental Lender Fee exceed any limitation under Section 148 of the Code. In the event that the Obligations are redeemed in full prior to the termination of this Regulatory Agreement, the Issuer may, at its option, require the prepayment of the Ongoing Governmental Lender Fee (a “Fee Prepayment”) at such time as the Obligations are redeemed in full. The Annual City amount due upon a Fee shall Prepayment will be payable until a lump sum amount calculated by the Issuer as the present value of the Ongoing Governmental Lender Fee due from the date of the Fee Prepayment through the end of the Qualified Project Period. In the event that the principal of and the interest on the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are discharged prior to the termination of this Regulatory Agreement (other than by reason of the issuance of refunding bonds), the Borrower shall pay to the Issuer, if so requested by the Issuer, an amount equal to the remaining Annual City Fees, at a present value to the date of payment (using a discount rate equal to the aggregate true interest cost then current rate on U.S. Treasuries with a maturity that most closely approximates the remaining term of the Bonds outstanding immediately before the Bonds are paid in full. Such payment shall be due to the Issuer at such time as the Bonds are paid in full and the Senior Indenture and the Subordinate Indenture are dischargedQualified Project Period. (bc) All tenant lists, applications and waiting lists relating to the Project shall at all times be kept separate and identifiable from any other business of the Borrower Owner and shall be maintained as required by the Issuer, in a reasonable condition for proper audit and subject to examination during business hours by representatives of the Issuer (including the Administrator). (cd) The Borrower Owner shall submit to the Issuer, within fifteen (15) days after receipt of a request therefor, any information information, records or completed forms requested by the Issuer in order to comply with reporting requirements of the Internal Revenue Service or the State. (de) The Borrower Owner shall not discriminate on the basis of race, creed, color, religion, sex, source of income, sexual orientation, marital status, national origin, ancestry or handicap in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the construction, operation or management of the Project, and will not discriminate on the basis of household size as long as the tenants meet the household size standards of Section 8 of the Housing Act. Further, the Borrower Owner shall not permit occupancy in any unit in the Project by more persons than is permissible under the Section 8 household size standards. (ef) The Borrower Owner acknowledges that the Issuer may appoint an Administrator other than the Issuer to administer this Regulatory Agreement and to monitor performance by the Borrower Owner of the terms, provisions and requirements hereof. hereof.﷒ In such event, the Borrower Owner shall comply with any reasonable request by the Issuer to deliver to any such Administrator, in addition to or instead of the Issuer, any reports, notices or other documents required to be delivered pursuant hereto, and to make the Project and the books and records with respect thereto available for inspection by the Administrator as an agent of the Issuer. (fg) To the extent permitted by law, the Borrower Owner will make the units reserved pursuant to Section 4(a) and Section 6(a) available on a priority basis to households comprised of persons whom (i) the Issuer has informed the Borrower Owner have been displaced by the Issuer or its political subdivisions from other development developments located within the City of San Xxxx or (ii) are currently living or working in the City of San Xxxx or who can demonstrate they previously resided in the City of San Xxxx. The Borrower Xxxx.﷒The Owner shall not discriminate against tenant applicants on the basis of source of income (i.e., AFDC TANF or SSI), and the Borrower Owner shall consider a prospective tenant’s previous rent history of at least one year as evidence of such tenant’s ability to pay the applicable rent for the unit to be occupied (ability to pay shall be demonstrated if the tenant can show that the tenant has paid on time the same percentage or more of the tenant’s income for rent as the tenant would be required to pay for the rent applicable to the unit to be occupied); provided that such tenant paid the same percentage or more of such tenant’s income for rent as such tenant will be paying under the proposed lease. The Borrower Owner may consider such factors as it deems important when reviewing and approving a tenant’s application for occupancy and an existing tenant’s continued occupancy. (gh) If a Low Income Tenant’s Adjusted Income, as of the most recent determination thereof, exceeds 140% of the of the applicable income limit for a Low Income Tenant of the same family size, the tenancy of such Low Income Tenant shall, to the extent permitted by law, be terminated as soon as legally possible and the available unit shall within a reasonable time be rented to (or held vacant and available for immediate occupancy by) a Low Income Tenant. (hi) Each of the requirements of Sections 3, 4 and 6 hereof is hereby incorporated as a specific requirement of the Issuer, whether or not required by California or federal law, and shall be in force for the term of this Regulatory Agreement. (ij) In addition, the Borrower Owner shall comply with the conditions set forth in Exhibit A to CDLAC Resolution No. 01-174, adopted on August 22, 2010 2001 and Exhibit A to CDLAC Resolution No. 16-184, adopted on December 14, 2016, (the “CDLAC Conditions”), as they such conditions may be modified or amended from time to time, which conditions are incorporated herein by reference and made a part hereof. The Borrower hereof.﷒The Owner will prepare and submit to CDLAC, not later than the Issuer on or before each anniversary of the Closing Date February 1 until the end of the Qualified Project Period, or at such other times as required by the Issuer, a Certification of Compliance, Compliance in substantially the form attached to the CDLAC Conditions, executed by an authorized representative of the BorrowerOwner and the Issuer shall submit such report to CDLAC annually on or before March 1, or at such other times as required by CDLAC. The Issuer and the Administrator shall have no obligation to monitor the BorrowerOwner’s compliance with the CDLAC Conditions. (jk) In additionNo later than January 31 of each calendar year (commencing January 31, 20 ), the Borrower Owner, on behalf of the Issuer, agrees to provide to the California Debt and Investment Advisory Commission, by any method approved by the California Debt and Investment Advisory Commission, with a copy to the Issuer, the annual report information required by Section 8855(k)(1) of the California Government Code﷒. This covenant shall comply with remain in effect until the Affordability Restrictionlater of the date (i) the Bonds are no longer Outstanding or (ii) the proceeds of the Bonds have been fully spent. (kl) The Borrower Owner agrees to maintain the Project, or cause the Project to be maintained, during the term of this Regulatory Agreement (i) in a reasonably safe condition and (ii) in good repair and in good operating condition, ordinary wear and tear excepted, making from time to time all necessary repairs thereto and renewals and replacements thereof such that the Project shall be in substantially the same condition at all times as the condition it is in at the time of the was on completion of the construction of the Project with the proceeds of the Bondsits rehabilitation using Loan proceeds. (lm) The Owner will pay the Issuer all of the amounts required by the Loan Agreement, and will indemnify the Issuer and the Fiscal Agent/Trustee as provided in the Loan Agreement. (n) The requirements of this Section 7 of this Regulatory Agreement shall be in effect for the term of this Regulatory Agreement; provided that any of the foregoing requirements of the Issuer Section 7 of this Regulatory Agreement may be expressly waived by the Issuer, in at its sole discretion (except (iSection 7(i) above, which may be expressly waived only by CDLAC), in writing, but (i) no waiver by the Issuer of any requirement of this Section 7 shall, or shall be deemed to, extend to or affect any other provision of this Regulatory Agreement except to the extent the Issuer and the Borrower have has received an opinion of Bond Tax Counsel (a copy of which shall be filed by to the Borrower with the Trustee) effect that any such other provision is not required by the Act and may be waived without adversely affecting the exclusion from gross income of interest on the Governmental Lender Tax-Exempt Note and the Junior Bonds for federal income tax purposes; and (ii) any requirement of this Section 7 shall be void and of no force and effect if the Issuer and the Borrower Owner receive a written opinion of Bond Tax Counsel (a copy of which shall be filed by the Borrower with the Trustee and the Bondowner Representative) to the effect that compliance with any such requirement would cause interest on the Governmental Lender Tax-Exempt Note and the Junior Bonds to cease to be Tax-Exempt or to the effect that compliance with such requirement would be in conflict with the Act or any other state applicable State or federal law.