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event, the requirements of this Agreement are paramount and controlling as to the rights and obligations herein set forth and supersede any other requirements in conflict herewith. SECTION 4 - INCOME RESTRICTIONS; RENTAL RESTRICTIONS The Owner represents, warrants and covenants throughout the term of this Agreement and in order to satisfy the requirements of Section 42 of the Code ( "Section 42 Occupancy Restrictions ") that: (a) (1) (2) X At least 20% or more of the-residential units in the Project are both rent - restricted and occupied by individuals whose income is 50% or less of area median income. At least 40% or more of the residential units in the Project are both rent - restricted and occupied by individuals whose income is 60% or less of area median income. (Check applicable percentage election) (b) The determination of whether a tenant meets the low - income requirement shall be made by the Owner at least annually on the basis of the current income of such Low- Income Tenant. SECTION 5 - MHFA OCCUPANCY RESTRICTIONS (OPTIONAL) This Section is intended to make enforceable those extended use or deeper targeting covenants which the Owner represented to the MHFA in its Application. The Owner represents, warrants and covenants throughout the term of this Agreement that: (check if applicable) (a) Applicable Not Applicable X For a period of five years following the placed in service date for each building, % of the units shall have gross rents established at a level not greater than 30% of area median income. (b) X Throughout the term of this Agreement, 100% of the units shall be rented to tenants with 60% or less of area median income, adjusted by family size, with gross rents not to exceed 30% of income. (c) X The Owner will extend the Section 42 income and rental restrictions over 30 years after the close of the compliance period. 091196 F:'DATAwt I00 JxM 00910CJM 5