Common use of Agreement of Landlord to Cooperate with Syndication of Tax Credits Clause in Contracts

Agreement of Landlord to Cooperate with Syndication of Tax Credits. (a) Landlord hereby acknowledges that the right to syndicate the low-income housing tax credits (the “Tax Credits”) allocated to the Project is a material benefit bargained for by Tenant. Therefore, Xxxxxxxx agrees that Xxxxxx will have the right to syndicate the Tax Credits allocated to the Project and Landlord will reasonably cooperate with Tenant in connection with any syndication of the Tax Credits. (b) Tenant will not be charged any fee by Landlord in connection with a syndication of the Tax Credits allocated to the Project or require the reimbursement of any costs incurred in connection with the admission of a Person who will claim the Tax Credits with respect to the Project (the “Tax Equity Investor”) as a partner or member of Tenant under its organizational documents. (c) Landlord acknowledges and agrees that the Project may be operated and maintained in accordance with the [LIHTC EUA] so long as the [LIHTC EUA] remains in effect (the “Tax Credit Period”); provided, however, that the affordability requirements of this Lease (including, without limitation, those set forth in Exhibit G) shall continue to apply to the Project regardless of any reduction or expiration of any affordability requirements in the [LIHTC EUA]. (d) During any Tax Credit Period where a Tax Equity Investor is a partner, member or shareholder of Tenant, a Tax Equity Investor will be afforded the notice and cure rights of a Mortgagee under Section 10.04(c) above (the parties agreeing that any notice given to a Tax Equity Investor under Section 25.01 will also be deemed to satisfy the notice requirement of Section 10.04(c)), provided however, that: (i) if upon a Tenant default there are both a Mortgagee and Tax Equity Investor entitled to notice and cure rights under this Lease (each a “Potential Curing Party”), then Landlord may accept the cure efforts of the first Potential Curing Party to notify Landlord of its intent to pursue such cure, at which point the other Potential Curing Party will have no further rights to cure such Tenant default; (ii) the Tax Equity Investor will only be afforded the additional cure periods set forth in Section 10.04(c) if Tenant has terminated (or terminates prior to the end of the notice and cure period for such Event of Default) Tenant’s property manager and replaces such property manager with an Approved Property Manager (that is not an Affiliate of the terminated property manager) under the Lease.

Agreement of Landlord to Cooperate with Syndication of Tax Credits. (a) Landlord hereby acknowledges that the right to syndicate the low-income housing tax credits (“LIHTCs”) and historic rehabilitation credits (“HTCs,” and collectively with LIHTCs, the “Tax Credits”) allocated to the Project is a material benefit bargained for by Tenant. Therefore, Xxxxxxxx Landlord agrees that Xxxxxx will notwithstanding anything else in this Lease to the contrary, Tenant shall have the right to syndicate the Tax Credits allocated to the Project and Landlord will reasonably shall cooperate with Tenant in connection with any syndication of the Tax Credits. . To effectuate any such syndication, Tenant may elect to: (a) form a condominium on the Project such that one or more condominium units contain all of the low-income units which can be conveyed to a syndication company; or (b) enter into a master sublease whereby all of the low-income rental units are subleased to a syndication company. Furthermore, Tenant will shall not be charged any fee by Landlord in connection with a syndication of the Tax Credits allocated to the Project or require the reimbursement of any costs incurred in connection with the admission of a Person who will claim the Tax Credits with respect to the Project (the “Tax Equity Investor”) as a partner or member of Tenant under its organizational documents. (c) . Landlord acknowledges and agrees that the Project may be operated and maintained in accordance with all requirements related to the [LIHTC EUA] so long as Tax Credits (while such requirements remain effective against the [LIHTC EUA] remains in effect Tax Credits (the “Tax Credit Period”); provided, however, that the affordability requirements ) notwithstanding any provision of this Lease (including, without limitation, those set forth in Exhibit G) shall continue to apply to the Project regardless of any reduction or expiration of any affordability requirements contrary. In addition, notwithstanding anything in Article 24 to the [LIHTC EUA]. (d) During contrary, during any Tax Credit Period where a Tax Equity Investor is a partner, member or shareholder of Tenant, a Tax Equity Investor will shall be afforded the notice and cure rights of a Mortgagee under Section 10.04(c) above (the parties agreeing that any notice given to a Tax Equity Investor under Section 25.01 will also be deemed to satisfy the notice requirement of Section 10.04(c)), provided however, that: (i) if upon a that Landlord and Tenant default there are both a Mortgagee and Tax Equity Investor entitled to notice and cure rights under this Lease (each a “Potential Curing Party”), then Landlord may accept the cure efforts of the first Potential Curing Party to notify Landlord of its intent to pursue such cure, at which point the other Potential Curing Party will have no further rights to cure such Tenant default; (ii) agree that the Tax Equity Investor will shall only be afforded the additional cure periods set forth in Section 10.04(c) if Tenant has terminated (or terminates prior to the end of the notice and cure period for such Event of Default) Tenant’s property manager and replaces such property manager with an Approved Property Manager (that is not an Affiliate of the terminated property manager) under the Lease.

Agreement of Landlord to Cooperate with Syndication of Tax Credits. (a) Landlord hereby acknowledges that the right to syndicate the low-income housing tax credits (the “Tax Credits”) allocated to the Project is a material benefit bargained for by Tenant. Therefore, Xxxxxxxx agrees that Xxxxxx will notwithstanding anything else in this Lease to the contrary, Tenant shall have the right to syndicate the Tax Credits allocated to the Project and Landlord will reasonably shall cooperate with Tenant in connection with any syndication of the Tax Credits. . To effectuate any such syndication, Tenant may elect to: (a) form a condominium on the Project such that one or more condominium units contain all of the low-income units which can be conveyed to a syndication company; or (b) enter into a master sublease, or bifurcate this lease into two or more leases to separate the leasehold interest, whereby all of the low-income rental units are subleased to a syndication company. Furthermore, Tenant will shall not be charged any fee by Landlord in connection with a syndication of the Tax Credits allocated to the Project or require the reimbursement of any costs incurred in connection with the admission of a Person who will claim the Tax Credits with respect to the Project (the “Tax Equity Investor”) as a partner or member of Tenant under its organizational documents. (c) . Landlord acknowledges and agrees that the Project may be operated and maintained in accordance with all requirements related to the [LIHTC EUA] so long as Tax Credits (while such requirements remain effective against the [LIHTC EUA] remains in effect Tax Credits (the “Tax Credit Period”); provided, however, that the affordability requirements ) notwithstanding any provision of this Lease (including, without limitation, those set forth in Exhibit G) shall continue to apply to the Project regardless of any reduction or expiration of any affordability requirements contrary. In addition, notwithstanding anything in Article 24 to the [LIHTC EUA]. (d) During contrary, during any Tax Credit Period where a Tax Equity Investor is a partner, member or shareholder of Tenant, a Tax Equity Investor will shall be afforded the notice and cure rights of a Mortgagee under Section 10.04(c) above (the parties agreeing that any notice given to a Tax Equity Investor under Section 25.01 will also be deemed to satisfy the notice requirement of Section 10.04(c)), provided however, that: (i) if upon a that Landlord and Tenant default there are both a Mortgagee and Tax Equity Investor entitled to notice and cure rights under this Lease (each a “Potential Curing Party”), then Landlord may accept the cure efforts of the first Potential Curing Party to notify Landlord of its intent to pursue such cure, at which point the other Potential Curing Party will have no further rights to cure such Tenant default; (ii) agree that the Tax Equity Investor will shall only be afforded the additional cure periods set forth in Section 10.04(c) if Tenant has terminated (or terminates prior to the end of the notice and cure period for such Event of Default) Tenant’s property manager and replaces such property manager with an Approved Property Manager (that is not an Affiliate of the terminated property manager) under the Lease.