Common use of Proceeds of Mortgage Loan Clause in Contracts

Proceeds of Mortgage Loan. The Mortgagor covenants and agrees that: a. It will use not less than 95% of the proceeds of the Mortgage Loan to provide a residential rental project and in connection with the Development will use this 95% of the proceeds of the Mortgage Loan to pay costs of the Development (regardless of the Mortgagor's status as an organization described in Section 501(c)(3) of the Code or as any other entity exempt from Federal income taxation) which are chargeable by the Mortgagor to the capital accounts of the partners of the Mortgagor for Federal income tax and financial accounting purposes or would be so chargeable either with a proper election by a taxpayer (for example, under Section 266 of the Code) or, but for a proper election of a Mortgagor to deduct this amount, all in accordance with and to the extent required by Treasury Regulations Section 1.1038(a). This amount will be expended solely for costs paid or incurred subsequent to the date of the Authority's Resolution Determining Feasibility. Although the components of the Development include certain items of property that may not directly qualify as "qualified residential rental projects" under Code Section 142(a)(7), these items are functionally related and subordinate items but of a character and size commensurate with the character and size of the items to which they relate. The Mortgagor shall, at the request of the Authority, furnish the Authority with copies of the Federal income tax returns of the Mortgagor. b. The Development will be a residential rental project as it will consist of a building or structure or several proximate buildings or structures and facilities functionally related and subordinate thereto: i. each containing one or more similarly constructed units (as defined in the Treasury Regulations) and facilities which are functionally related and subordinate to such units; and ii. all of the units of which will, on a continuous basis, be rented or available on a nontransient basis for rental to members of the general public. c. The Mortgagor has incurred or will incur within six months of the date hereof a substantial binding obligation to commence the acquisition and construction of the Development, pursuant to which the Mortgagor is obligated to expend at least the lesser of (i) 2 1/2% of the principal amount of the Mortgage Loan or (ii) $100,000. The Mortgagor will proceed with due diligence to complete the Development. d. No portion of the proceeds of the Mortgage Loan will be used to provide any airplane, skybox or other private luxury box, any health club facility, any facility primarily used for gambling or any store, the principal business of which is the sale of alcoholic beverages for consumption off the premises. e. Less than 25% of the proceeds of the Mortgage Loan are to be used directly or indirectly for the acquisition of land used for other than farming purposes. None of the proceeds of the Mortgage Loan are being used for the purchase of land to be used for farming purposes. f. No portion of the proceeds of the Mortgage Loan are to be used for the acquisition of any property (or an interest therein), the first use of which property is not pursuant to such acquisition, unless the rehabilitation requirements of Section 147(d) of the Code, as amended, are met. It is acknowledged that the provisions of this Section and those of Sections 2, 3, 4, 5 and 32 are necessary in order to insure compliance with the Code.

Proceeds of Mortgage Loan. The Mortgagor covenants and agrees that: a. It will use not less than 95% of the proceeds of the Mortgage Loan to provide a residential rental project and in connection with the Development will use this 95% of the proceeds of the Mortgage Loan to pay costs of the Development (regardless of the Mortgagor's status as an organization described in Section 501(c)(3) of the Code or as any other entity exempt from Federal income taxation) which are chargeable by the Mortgagor to the capital accounts of the partners of the Mortgagor for Federal income tax and financial accounting purposes or would be so chargeable either with a proper election by a taxpayer (for example, under Section 266 of the Code) or, but for a proper election of a Mortgagor to deduct this amount, all in accordance with and to the extent required by Treasury Regulations Section 1.1038(a). This amount will be expended solely for costs paid or incurred subsequent to the date of the Authority's Resolution Determining Feasibility. Although the components of the Development include certain items of property that may not directly qualify as "qualified residential rental projects" under Code Section 142(a)(7), these items are functionally related and subordinate items but of a character and size commensurate with the character and size of the items to which they relate. The Mortgagor shall, at the request of the Authority, furnish the Authority with copies of the Federal income tax returns of the Mortgagor. b. The Development will be a residential rental project as it will consist of a building or structure or several proximate buildings or structures and facilities functionally related and subordinate thereto: i. each containing one or more similarly constructed units (as defined in the Treasury Regulations) and facilities which are functionally related and subordinate to such units; and ii. all of the units of which will, on a continuous basis, be rented or available on a nontransient basis for rental to members of the general public. c. The Mortgagor has incurred or will incur within six months of the date hereof a substantial binding obligation to commence the acquisition and construction of the Development, pursuant to which the Mortgagor is obligated to expend at least the lesser of (i) 2 1/2% of the principal amount of the Mortgage Loan or (ii) $100,000. The Mortgagor will proceed with due diligence to complete the Development. d. No portion of the proceeds of the Mortgage Loan will be used to provide any airplane, skybox or other private luxury box, any health club facility, any facility primarily used for gambling or any store, the principal business of which is the sale of alcoholic beverages for consumption off the premises. e. Less than 25% of the proceeds of the Mortgage Loan are to be used directly or indirectly for the acquisition of land used for other than farming purposes. None of the proceeds of the Mortgage Loan are being used for the purchase of land to be used for farming purposes. f. No portion of the proceeds of the Mortgage Loan are to be used for the acquisition of any property (or an interest therein), the first use of which property is not pursuant to such acquisition, unless the rehabilitation requirements of Section 147(d) of the Code, as amended, are met. It is acknowledged that the provisions of this Section and those of Sections 2, 3, 4, 5 and 32 33 are necessary in order to insure compliance with the Code.

Proceeds of Mortgage Loan. The Mortgagor covenants and agrees that: a. It will use not less than 95% of the proceeds of the Mortgage Loan to provide a residential rental project and in connection with the Development will use this 95% of the proceeds of the Mortgage Loan to pay costs of the Development (regardless of the Mortgagor's status as an organization described in Section 501(c)(3) of the Code or as any other entity exempt from Federal income taxation) which are chargeable by the Mortgagor to the capital accounts of the partners members of the Mortgagor for Federal income tax and financial accounting purposes or would be so chargeable either with a proper election by a taxpayer (for example, under Section 266 of the Code) or, but for a proper election of a Mortgagor to deduct this amount, all in accordance with and to the extent required by Treasury Regulations Section 1.1038(a1.103-8(a). This amount will be expended solely for costs paid or incurred subsequent to the date of the Authority's Resolution Determining Feasibility. Although the components of the Development include certain items of property that may not directly qualify as "qualified residential rental projects" under Code Section 142(a)(7), these items are functionally related and subordinate items but of a character and size commensurate with the character and size of the items to which they relate. The Mortgagor shall, at the request of the Authority, furnish the Authority with copies of the Federal income tax returns of the Mortgagor. b. The Development will be a residential rental project as it will consist of a building or structure or several proximate buildings or structures and facilities functionally related and subordinate thereto: i. (i) each containing one or more similarly constructed units (as defined in the Treasury Regulations) and facilities which are functionally related and subordinate to such units; and (ii. ) all of the units of which will, on a continuous basis, be rented or available on a nontransient non-transient basis for rental to members of the general public. c. The Mortgagor has incurred or will incur within six months of the date hereof a substantial binding obligation to commence the acquisition and construction rehabilitation of the Development, pursuant to which the Mortgagor is obligated to expend at least the lesser of (i) 2 1/2% of the principal amount of the Mortgage Loan or (ii) $100,000. The Mortgagor will proceed with due diligence to complete the Development. d. No portion of the proceeds of the Mortgage Loan will be used to provide any airplane, skybox or other private luxury box, any health club facility, any facility primarily used for gambling or any store, the principal business of which is the sale of alcoholic beverages for consumption off the premises. e. Less than 25% of the proceeds of the Mortgage Loan are to be used directly or indirectly for the acquisition of land used for other than farming purposes. None of the proceeds of the Mortgage Loan are being used for the purchase of land to be used for farming purposes. f. No portion of the proceeds of the Mortgage Loan are to be used for the acquisition of any property (or an interest therein), the first use of which property is not pursuant to such acquisition, unless the rehabilitation requirements of Section 147(d) of the Code, as amended, are met. . g. It is acknowledged that the provisions of this Section and those of Sections 2, 3, 4, 4 5 and 32 33 are necessary in order to insure compliance with the Code.

Proceeds of Mortgage Loan. The Mortgagor covenants and agrees that: a. It will use not less than 95% of the proceeds of the Mortgage Loan to provide a residential rental project and in connection with the Development will use this 95% of the proceeds of the Mortgage Loan to pay costs of the Development (regardless of the Mortgagor's status as an organization described in Section 501(c)(3) of the Code or as any other entity exempt from Federal income taxation) which are chargeable by the Mortgagor to the capital accounts of the partners members of the Mortgagor for Federal income tax and financial accounting purposes or would be so chargeable either with a proper election by a taxpayer (for example, under Section 266 of the Code) or, but for a proper election of a Mortgagor to deduct this amount, all in accordance with and to the extent required by Treasury Regulations Section 1.1038(a1.103-8(a). This amount will be expended solely for costs paid or incurred subsequent to the date of the Authority's Resolution Determining Feasibility. Although the components of the Development include certain items of property that may not directly qualify as "qualified residential rental projects" under Code Section 142(a)(7), these items are functionally related and subordinate items but of a character and size commensurate with the character and size of the items to which they relate. The Mortgagor shall, at the request of the Authority, furnish the Authority with copies of the Federal income tax returns of the Mortgagor. b. The Development will be a residential rental project as it will consist of a building or structure or several proximate buildings or structures and facilities functionally related and subordinate thereto: i. (i) each containing one or more similarly constructed units (as defined in the Treasury Regulations) and facilities which are functionally related and subordinate to such units; and (ii. ) all of the units of which will, on a continuous basis, be rented or available on a nontransient non-transient basis for rental to members of the general public. c. The Mortgagor has incurred or will incur within six months of the date hereof a substantial binding obligation to commence the acquisition and construction rehabilitation of the Development, pursuant to which the Mortgagor is obligated to expend at least the lesser of (i) 2 1/2% of the principal amount of the Mortgage Loan or (ii) $100,000. The Mortgagor will proceed with due diligence to complete the Development. d. No portion of the proceeds of the Mortgage Loan will be used to provide any airplane, skybox or other private luxury box, any health club facility, any facility primarily used for gambling or any store, the principal business of which is the sale of alcoholic beverages for consumption off the premises. e. Less than 25% of the proceeds of the Mortgage Loan are to be used directly or indirectly for the acquisition of land used for other than farming purposes. None of the proceeds of the Mortgage Loan are being used for the purchase of land to be used for farming purposes. f. No portion of the proceeds of the Mortgage Loan are to be used for the acquisition of any property (or an interest therein), the first use of which property is not pursuant to such acquisition, unless the rehabilitation requirements of Section 147(d) of the Code, as amended, are met. . g. The Development will be a residential rental project consisting of a building or buildings that are qualified low-income building(s) under Section 42 of the Code. h. Each building in the Development will remain a qualified low-income building as defined in Section 42 of the Code for the longer of the fifteen year "Compliance Period", as defined in Section 42(i)(1) of the Code or, the end of the Extended Use Period. i. It is acknowledged that the provisions of this Section and those of Sections 2, 3, 4, 5 and 32 are necessary in order to insure compliance with the Code.