Minimum Leasing Guidelines. Minimum Leasing Guidelines established jointly by Owner and Manager, setting forth target rental rates and premiums for each unit type and amenity package, together with maximum leasing incentive allowances for promotional purposes. Such guidelines shall incorporate the terms of the Regulatory Agreement, the Project Loan documents and the Tax Credit documents, as well as the requirements of Section 42 ("Section 42") of the Internal Revenue Code of 1986, as amended ("Code"). Manager acknowledges that a certain amount of federal low-income housing tax credits have been allocated to the Property pursuant to Section 42 (the "Project Tax Credits") and that Owner is required to lease at least 65% of the housing units in the Project to tenants whose income and rent levels qualify such apartments for inclusion in determining the amount of Tax Credits actually available to Owner each year. This means that at least 422 of the total 648 housing units must be occupied by individuals with income less than or equal to sixty percent (60%) of area median gross income, as adjusted for family size. In no event will Manager execute any lease (or any renewal or extension thereof) on terms which (i) vary from the minimum leasing guidelines, or (ii) cause the Owner to violate the Minimum Set- Aside Test, the Rent Restriction Test or any other document executed in connection with the Tax Credits or the Project Loans.
Minimum Leasing Guidelines established jointly by Owner and Manager, setting forth target rental rates and premiums for each unit type and amenity package, together with maximum leasing incentive allowances for promotional purposes. Manager shall not execute any lease (or any renewal or extension thereof) on terms which materially vary from the minimum leasing guidelines without Owner’s prior written approval.
