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• • 3. The Tax Credit Allocation Team will assign an Underwriter to work with the Owner to discuss issues pertinent to the development and possible alternatives to the qualified contract process. Owners should be prepared to present a thorough analysis of all current financing and related restrictions. 4. If a property is not eligible to request a Qualified Contract MHFA will issue the owner a letter of denial. B. QUALIFIED CONTRACT NOTIFICATION LETTER The next step in the process for requesting a Qualified Contract is to submit the Qualified Contract Notification Letter, along with all required Application Materials. This request may be submitted any time after the fourteenth year of the compliance period. The Notification Letter contains statements from the owner that the owner will reasonably cooperate with MHFA and its agents with respect to the marketing of the property, and acknowledges that the Application Materials may be shared with prospective purchasers, real estate brokers and other interested parties and that summary data may be posted on MHFA's website. The owner will be asked to acknowledge in the notification letter that they have reviewed the due diligence materials used in the calculation of the qualified contract worksheets and that they are solely responsible for documents and information used in the calculation of the Qualified Contract Price, using the procedure set forth in Section 42(h)(6)(F) of the Internal Revenue Code. The owner will be asked in the notification letter to sign a statement verifying the accuracy of the assumptions used in the computation of the Qualified Contract Price and to hold MHFA harmless with respect to the use of the development information. Additional information may be requested by MHFA, including but not limited to, additional rent rolls, income certifications and other Section 42 compliance records, records with respect to repair and maintenance of the development, operating expenses and debt service. Before information is shared with a prospective purchaser, the owner may require that the Agency and /or the prospective purchaser enter into a commercially reasonable form of nondisclosure agreement. The owner may also be asked by MHFA to share, upon request, the documents and other information that were used to prepare the Calculation of Qualified Contract Price (QC -1). The owner will be asked to allow MHFA, its agents, or prospective purchasers, upon reasonable prior written notice, to visit and inspect the development, including representative apartments units. Housing Tax Credit Program 4 Qualified Contract Process Guide (rev.12 /05)