Common use of TAX CREDIT SYNDICATION Clause in Contracts

TAX CREDIT SYNDICATION. Section 38.01 Agreement of the FCRHA to Cooperate with Syndication of Tax Credits. The FCRHA hereby acknowledges that the right to syndicate the low-income housing tax credits (the “Tax Credits”) allocated to the Project is a material benefit bargained for by Tenant. Therefore, the FCRHA agrees that notwithstanding anything else in this Lease to the contrary, Tenant shall have the right to syndicate the Tax Credits allocated to the Project and the FCRHA shall cooperate with Tenant in connection with any syndication of the Tax Credits. To effectuate any such syndication, Tenant may elect to: (a) form a condominium on the Project such that one or more condominium units contain all of the low-income units which can be conveyed to a syndication company; or (b) enter into a master sublease whereby all of the low-income rental units are subleased to a syndication company. Furthermore, Tenant shall not be charged any fee by the FCRHA in connection with a syndication of the Tax Credits allocated to the Project or require the reimbursement of any costs incurred in connection with the admission of a Person who will claim the Tax Credits with respect to the Project (the “Tax Equity Investor”) as a partner or member of Tenant under its organizational documents. The FCRHA acknowledges and agrees that the Project may be operated and maintained in accordance with all requirements related to the Tax Credits while such requirements remain effective against the Project (the “Tax Credit Period”), notwithstanding any provision of this Lease to the contrary.