Loss of Subsidy. (a) It is anticipated that certain Units in the Development (the "Subsidy Units") will receive Project-Based Section 8 or other rental subsidy payments (the "Rental Subsidy") throughout the Term, as reflected in the Approved Development Budget. Notwithstanding Section 2.3(b), if any change in federal law occurs, or any action (or inaction) by Congress or any federal or State agency occurs, which results in a reduction, termination or nonrenewal of the Rental Subsidy through no fault of the Borrower, such that the Rental Subsidy shown on the Approved Development Budget is no longer available, Borrower may increase the Rent on one or more of the HOME-Assisted Units that overlap with a Subsidy Unit, to the Low HOME Rent and/or High HOME Rent as applicable, subject to the following requirements:
Loss of Subsidy. It is anticipated that the Development will receive Project-Based Section 8 or other rental subsidy payments (the "Rental Subsidy") throughout the Term, as reflected in the Approved Development Budget. If, after the expiration of the HOPWA Term, any change in federal law occurs, or any action (or inaction) by Congress or any federal or State agency occurs, which results in a reduction, termination or nonrenewal of the Rental Subsidy through no fault of the Borrower, such that the Rental Subsidy shown on the Approved Development Budget is no longer available, Borrower may increase the Rent on one or more of the County-Assisted Units to the Low Income Rent subject to the following requirements. At the time Borrower requests an increase in the Rent, Borrower shall provide the County with an operating budget for the Development for the County's approval pursuant to Section 4.3 of the Loan Agreement, showing the impact of the loss or reduction of the Rental Subsidy (the "Operating Budget"). The number of County-Assisted Units subject to the Rent increase may not be greater than the number required to ensure that the Development generates sufficient income to cover its operating costs and debt service as shown on the Operating Budget, and as is necessary to maintain the financial stability of the Development. Any such Rent increase must be pursuant to a transition plan approved by the County, consistent with remedial measures set forth in California Code of Regulations Title 4, Division 17, Chapter 1, Section 10337(a)(3) or successor regulation applicable to California's Federal and State Low Income Housing Tax Credit Program. Borrower shall use good faith efforts to obtain alternative sources of rental subsidies and shall provide the County with annual progress reports on efforts to obtain alternative sources of rental subsidies that would allow the rents on the County-Assisted Units to be reduced back to the Very Low Income Rent. Upon receipt of any alternative rental subsidies Borrower shall reduce the rents on the County-Assisted Units back to the Very Low Income Rents, to the extent that the alternative rental subsidies provide sufficient income to cover the operating costs and debt service of the Development as shown on the Operating Budget.
Loss of Subsidy. In the event that a Change in Law occurs that results in a Material Reduction of the “Expected Cash Subsidy Payment Determined At Commencement Date”, then on the Rental Payment Date specified in the Lessee’s notice to the Lessor of its exercise of the prepayment option provided under this subsection (d), the Lessee shall have the option to prepay all, but not less than all, of the outstanding Rental Payments (which prepayment must occur on a Rental Payment Date no later than one (1) year following the occurrence of the Change in Law) by paying in full to the Lessor the sum of (i) all Rental Payments then due plus (ii) an amount equal to the then remaining Outstanding Balance of Rental Payments plus accrued interest to such prepayment date plus (iii) all other amounts then owing under this Agreement. In order to exercise the prepayment option described in this Section 10.01(d), the Lessee shall deliver to the Lessor at least 60 days prior to the prepayment date (1) a copy of the legislation hereafter enacted by the Congress of the United States of America resulting in the Material Reduction (along with an opinion of Bond Counsel to the effect that such legislation results in a Material Reduction) or a copy of the ruling, regulation or statement hereafter issued by the Treasury Department or the Internal Revenue Service resulting in the Material Reduction (along with an opinion of Bond Counsel to the effect that such ruling, regulation or statement results in a Material Reduction) and (2) a calculation of the reduction in the net subsidy based on a spreadsheet substantially similar to Exhibit G setting forth, in reasonable detail, the basis for calculation and the amount of such calculation. In determining the impact of a Change in Law, a Material Reduction and any such amounts, the Lessee will act reasonably and in good faith. In the event there is a partial prepayment of Rental Payments at any time under this Agreement, the Lessor shall recalculate the “Expected Cash Subsidy Payment Determined At Commencement Date” and “Materially Reduced Applicable Cash Subsidy Payment Determined At Commencement Date” on Exhibit G for the remaining interest payment dates taking into account the reduction in principal component resulting from such partial prepayment. The Lessor shall provide the Lessee with a copy of such revised spreadsheet which shall replace the original or preceding Exhibit G. After payment of the applicable Prepayment Price and all other amounts owing...
Loss of Subsidy. In the event that a Change in Law (as hereafter defined) occurs, on the day specified in the City’s notice to the Authority of its exercise of the prepayment option provided under this subsection (b), the City shall have the option to prepay all, or less than all, of the aggregate principal components of Lease Payments then unpaid from and after any Change in Law upon payment in full to the Authority of the sum of 100% of the aggregate principal components of the Lease Payment to be prepaid, plus accrued interest on such prepaid principal components to the prepayment date. “Change in Law” means legislation enacted by the Congress of the United States of America or a ruling, regulation or statement issued by the United States Department of the Treasury or the Internal Revenue Service, the effect of which (I) repeals, revokes or reduces the City’s applicable cash subsidy payments from the United States Department of the Treasury under Section 54A or 6431 of the Tax Code (as currently in effect) with respect to the Lease Agreement or (II) imposes one or more new substantive conditions on the receipt by the City of such applicable cash subsidy payments under such Sections (as currently in effect) and such conditions are unacceptable to the City; provided, however, that a Change in Law shall not occur as a result of (I) reductions in subsidy payments due to automatic budgetary reductions imposed by the Congress of the United States of America related to deficit reduction measures, (II) the City’s failure or inability for reasons within its control to receive or delay to receive all or any portion of any subsidy payment from the United States Department of the Treasury, or (III) the City’s failure to comply with applicable laws and regulations to obtain payment of any subsidy payment from the United States Department of the Treasury, including without limitation any offset against any subsidy payment as a result of other liabilities of the City to the United State Department of the Treasury.
Loss of Subsidy. It is anticipated that certain Units in the Development (the "Subsidy Units") will receive Project-Based Section 8 or other rental subsidies (the "Rental Subsidy") throughout the Term, as reflected in the Financing Plan for the Project. If any change in federal law occurs, or any action (or inaction) by Congress or any federal or state agency occurs, which results in a material reduction, termination or nonrenewal of the Rental Subsidy through no fault of the Owner, such that the Rental Subsidy shown on the Finance Plan for the Development approved by the City is no longer available, Owner shall, in anticipation of such loss in Rental Subsidy, use good faith efforts for a period of ninety (90) days, to identify and obtain alternative sources of rental subsidies and shall provide the City progress reports on Owner's efforts to identify and obtain alternative sources of rental subsidies. If at the end of such ninety (90) day period Owner is unable to secure an alternate source of rental subsidy, notwithstanding Section 2.4, Owner may increase the rent on one or more of the City Restricted Units that overlap with a Subsidy Unit, up to sixty percent (60%) of AMI (“TCAC Maximum Rent Limit”), subject to the following requirements:
Loss of Subsidy. It is anticipated that certain Affordable Units (the "Subsidy Units") may receive Project-Based Section 8, Section 811 or other rental or operating subsidies (the "Rental Subsidy") throughout the Term. If any change in law occurs, or any action (or inaction) by Congress or any federal or state agency occurs, which results in a material reduction, termination or nonrenewal of the Rental Subsidy through no fault of Developer, such that the Rental Subsidy shown on the budget for the Project approved by CMHA and OCHA is no longer available, Developer shall, in anticipation of such loss in Rental Subsidy, use good faith efforts for a period of one hundred twenty (120) days, to obtain alternative sources of rental subsidies and shall provide CMHA and OCHA weekly progress reports on Developer's efforts to obtain alternative sources of rental subsidies. If at the end of such one hundred twenty (120) day period Developer is unable to secure an alternate source of rental subsidy, notwithstanding this Section
