05-27-2026 Council Packet - Laserfiche WebLink

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21 Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM Borrower agrees that it will cause a qualified rebate analyst reasonably acceptable to the Controlling Person (the “Rebate Analyst”) to calculate the Rebate Amount not later than forty-five (45) days after the fifth (5th) anniversary of the Closing Date and each five (5) years thereafter and agrees that the Borrower will pay all costs associated therewith. Within fifteen (15) days of the date of each such calculation, the Borrower shall promptly (i) deliver a report or letter from the Rebate Analyst setting forth the Rebate Amount, if any, then due and the methods used to calculate such amount (each, a “Rebate Report”) to the Governmental Lender, the Controlling Person and the Funding Lender, (ii) deliver evidence of payment of the Rebate Amount to the Funding Lender, and (iii) deliver to the Funding Lender any forms required by the Internal Revenue Service to be submitted with the Rebate Amount, if any, and the addresses to which such forms must be sent. (d) Neither the Borrower nor any related person shall, pursuant to any arrangement, formal or informal, purchase any of the Governmental Note, unless the Borrower or such related person delivers a Favorable Opinion of Bond Counsel to the Funding Lender, the Controlling Person and the Governmental Lender. (e) No changes will be made to the Project Facilities, no actions will be taken by the Borrower and the Borrower will not omit to take any actions, which will in any way adversely affect the exclusion from gross income of interest on the Governmental Note for purposes of federal income taxation. (f) The Borrower will not make any changes in the Project Facilities that would, at the time made, cause the average reasonably expected economic life of the Project Facilities, determined pursuant to Section 147(b) of the Code, to be less than the average reasonably expected economic life of the Project Facilities set forth in such certificates or letters of representation of the Borrower, unless the Borrower files with the Funding Lender and the Controlling Person a Favorable Opinion of Bond Counsel. (g) The Project Facilities will be owned, managed and operated as a “qualified residential rental property” as such phrase is utilized in Section 142(d) of the Code. To that end, the Borrower hereby represents and covenants and agrees that it will comply with the terms, conditions and provisions of the Regulatory Agreement.. (h) The Borrower will permit any duly authorized representative of the Funding Lender, the Department of the Treasury or the Internal Revenue Service and the Controlling Person to inspect the books and records of the Borrower pertaining to the incomes of qualifying tenants residing in the Project Facilities upon reasonable notice (given at least 5 days in advance) and at reasonable times during business hours on business days. (i) The Borrower will promptly notify the Funding Lender and the Controlling Person if at any time the dwelling units in the Project Facilities are not available for occupancy as required by the Regulatory Agreement and, upon request, the Borrower will provide the Funding Lender and the Controlling Person a copy of the compliance certificates required to be filed by the Borrower under and at the times provided by the Regulatory Agreement. Section 6.11 Single Purpose Entities. (a) The Borrower and the General Partner shall (i) not engage in any business or activity, other than the ownership, renovation, operation and maintenance of the Project Facilities and activities incidental thereto; and (ii) not acquire, own, hold, lease, operate, manage, maintain, develop or improve any assets other than the Project Facilities and such personal property as may be necessary for the operation of the Project Facilities and shall conduct and operate its business as presently conducted and operated.