New Markets Tax Credits. Lender shall have received such opinions or other assurances from Novogradac or otherwise as it deems necessary that the Loan will constitute a “Qualified Low Income Community Investment” as defined in Section 45 of the Internal Revenue Code of 1986, as amended. Funding of the Term Loan shall constitute Lender’s satisfaction of the aforementioned closing requirements which are not controllable by Debtor.
New Markets Tax Credits. As of the date hereof, Borrower hereby represents and warrants to Lender, as follows:
(a) Borrower is engaged solely in the ownership, development, operation and management of the Property and does not hold any material assets unrelated to the Project.
(b) With respect to any draw pursuant to this Agreement, the Borrower reasonably expects to (a) expend such draw on the construction of the Project within one (1) year of such draw, or (b) reimburse itself for expenditures that will have been previously made or will be made within one (1) year of such draw;
(c) With respect to the current taxable year of Borrower, at least fifty percent (50%) of the total gross income of Borrower is derived from the active conduct of its trade or business within the Census Tract.
(d) With respect to the current taxable year of Borrower, at least forty percent (40%) of the use of the tangible property of Borrower (whether owned or leased) is within the Census Tract (for purposes of this representation, the percentage of tangible property owned or leased by Borrower during the taxable year in the Census Tract shall be determined based on a fraction (i) the numerator of which is the Average Value of the tangible property used by Borrower within the Census Tract, and (ii) the denominator of which is the Average Value of all of the tangible property owned or leased by Borrower and used by Borrower during the taxable year); provided, however, that if for the current taxable year Borrower has no employees, at least eighty-five percent (85%) of the use of the tangible property of Borrower (whether owned or leased) is within the
New Markets Tax Credits. Without prior written approval by HUD, the Borrower shall not use Guaranteed Loan Funds for an activity that is part of a project in which New Markets Tax Credits are part of the financing structure or in which Guaranteed Loan Funds will be used to leverage or generate New Markets Tax Credits pursuant to Section 45(D) of the Internal Revenue Code. At the discretion of the Secretary, XXX’s approval and any related conditions may be provided in Attachment 4, as discussed below.
New Markets Tax Credits. Tenant acknowledges that Landlord will likely pursue financing for the Project under the New Markets Tax Credit program (such financing, “NMTC”). If Landlord, in Xxxxxxxx’s sole discretion, elects to pursue and is successful in procuring NMTC, the parties hereto agree to use best efforts to cooperate in amending this Lease and the terms thereof, including, without limitation, the Term and purchase option formula in order to accommodate any regulations, requirements or requests given the NMTC structure given the mutual understanding that receipt of NMTC is beneficial for the project.
New Markets Tax Credits. (a) The Guarantors shall pay the NMTC Guaranteed Amount in accordance with Section 3(b) of this Guaranty plus interest determined in accordance with Section 2(b) of this Guaranty on any amounts unpaid in accordance with such section, until paid in full directly to USBCDC, but only if and to the extent that the applicable NMTC Recapture Amount is the direct or indirect result of a NMTC Recapture Event.
(b) The NMTC Guaranteed Amount shall be due and payable by Guarantors not later than the date which is ten (10) calendar days after the earliest to occur, if known, of the following dates (the “Guaranty Payment Date”):
(i) the date on which the Investment Fund and/or USBCDC provides written notice to Guarantors of the NMTC Recapture Amount calculated based upon issuance of a Schedule K-1 to the Investment Fund and/or USBCDC for any taxable year that reflects Recaptured New Markets Tax Credits or Disallowed New Markets Tax Credits;
(ii) The date on which a determination is made by USBCDC in good faith based upon advice from tax counsel or its accountants that a NMTC Recapture Event has occurred; or
(iii) the date on which the Investment Fund and/or USBCDC provides written notice to Guarantors of its receipt of written notice of a Final Determination that a NMTC Recapture Event has occurred and that USBCDC is being assessed additional tax liability (with any applicable interest or penalties) on account of such NMTC Recapture Event; provided, however, that in the event that, prior to the receipt of written notice of a Final Determination, USBCDC is (A) actually required to pay such additional tax liability on account of such NMTC Recapture Event or (B) not permitted to claim the New Markets Tax Credits on its tax return at the time of filing, then the NMTC Guaranteed Amount shall be due and payable within ten (10) calendar days of the date on which the Investment Fund and/or USBCDC provides written notice to Guarantors of the occurrence of such event; provided, further, however, that if there is subsequently a Final Determination that a NMTC Recapture Event has not occurred, then USBCDC shall, within ten (10) calendar days after receipt of such Final Determination, pay to Guarantors any amounts previously paid to USBCDC pursuant to this subparagraph (ii) except to the extent of any amount necessary to pay any reasonable costs and expenses (including reasonable attorney fees) relating to taking necessary steps to address the preliminary determination of a NMTC Re...
New Markets Tax Credits. The parties acknowledge that pursuant to existing requirements, applicants seeking a New Markets Tax Credit allocation for projects that devote 15,000 to 60,000 square feet of floor area to the sale of goods and merchandise primarily for personal or household use, and devote 10% or more of sales floor area to the sale of goods not subject to California State sales tax must include compliance with the City's Living Wage Ordinance (SDMC §§ 22.4201-4245) in the required Community Benefits Agreement.
