Common use of Section 8 and Similar Subsidies Clause in Contracts

Section 8 and Similar Subsidies. In addition to the above required deposits, any additional rental income received by the Project through the collection of rents subsidized by Section 8 Tenant Based Vouchers (or similar tenant based subsidy which is not required by the Code to be considered in the calculation of the Restricted Rent) at a level above the maximum LIHC rents affordable at the income levels set forth in the Regulatory Agreement must be placed into the Project’s Replacement Reserve Account, unless the owner certifies to DHCR that such additional income is necessary for the Project’s operating viability, requests written acknowledgement of the cessation of the deposit of such additional income to the replacement reserve account, and receives such acknowledgement from DHCR. The owner will be documenting the status of this requirement as part of the LIHC Owner’s Annual Certification for the duration of the Project’s regulatory term.