Loading...
HomeMy WebLinkAbout5-7 Instrument #2206102 CtLei At((<c `Z�� Z/f`.(ri DECLARATION OF RESTRICTIVE COVENANTS FOR LOW-INCOME HOUSING CREDITS THIS DECLARATION OF RESTRICTIVE COVENANTS(this"AGREEMENT"),dated as of JC ✓vl ��l by Farmhouse Partners—Baxter Limited Partnership and their successors and assigns(the"Owner)is given as a to`o a condition precedent to the allocation of low-income housing credits by the Montana Board of Housing,an agency of the State 49—1 of Montana(together with any successor to its rights,duties and obligations,the"Board"). Na+o WITNESSETH: 0 o WHEREAS,the Owner is or shall be the owner of a rental housing development located on lands in the City of Bozeman. iiii� County of Gallatin,StateofMontana,moreparticularlydescribedinExhibitA-thereto(the"Project Land"),known as or to be known as Baxter Apartments;and WHEREAS,the Board has been designated bythe Govemorofthe StateofMontana asthe housing creditagency £ for the State of Montana for the allocation of low-income housing credit dollars(the"Credit");and r WHEREAS,the Owner has applied to the Board for an allocation of Credit to the Project in an amount not to exceed five hundred seven thousand twenty six low-income housing credit dollars($507.026.00 );and � c WHEREAS,the Owner has represented to the Board in the Owner's Low-Income Housing Tax Credit Application (the"Application")that the Owner shall lease 100%of the units in the Project(the"Low-Income Units")to individuals or �? families whose income is§Q%or less of the area median gross income(including adjustments for family size)("Low-Income eo Tenants")as determined in accordance with Section 42 of the Internal Revenue Code of 1986,as amended(the"Code"). In + addition,the Owner has represented that 62%of those units will be targeted to tenants whose income is_Q%of median > income or less for the duration of this agreement. Such set-a-side of units may be changed upon approval of the Board if maintaining the set-a-side would cause undue hardship for the project;and WHEREAS,the Board has determined the Project would support aCreditallocationin the amount of$507.206.00; and WHEREAS,the Code has required as a condition precedent to the allocation of the Credit that the Owner execute,deliverand record in the official land deed records of the county in which the Project is located this Agreement in order to create certain covenants running with the land for the purpose of enforcing the requirements of Section 42 of the Code by regulating and restricting the use and occupancy and transfer of the Project as set forth herein;and WHEREAS,the Owner,underthis Agreement,intends,declares and covenants thatthe regulatoryand restrictive covenants set forth herein governing the use,occupaneyand transferof the Project shall be and are covenants runningwith the Project Land for the term stated herein and binding upon all subsequent owners of the Project Land for such term and are not merely personal covenants of the Owner; NOW,THEREFORE,in consideration of the promises and covenants hereinafter setforth,and of other valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the Owner agrees as follows: Section 1. Definitions.All words and phrases defined in Section 42 of the Code and by regulations promulgated bythe Department of Treasuryor regulations promulgated bythe Department of Housing and Urban Development pertaining thereto shall have the same meanings in this Agreement. Section2. Recording and Filing;Covenants To Run With the Land.(a)Upon execution and delivery bythe Owner, the Owner shall cause this Agreement and all amendments hereto to be recorded and filed in the official public land deed records of the county in which the Project is located and shall pay all fees and charges incurred in connection therewith. Upon recording,the Owner shall immediately transmit to the Board an executed original of the recorded Agreement showing the date,deed book and page numbers of record. The Owner agrees that the Board will not issue the Internal Revenue Service Form 8609 constituting final allocation of the Credit unless and until the Board has received the recorded executed original of the Agreement. (b) The Owner intends,declares and covenants,on behalf of itself and all future owners and operators of the Project Land during the term of this Agreement,that this Agreement and the covenants and restrictions set forth in this Agreement regulating and restricting the use,occupancy and transfer of the Project Land and the Project(1)shall be and are covenants running with the Project Land,encumbering the Project Land for the term of this Agreement,binding upon the Owner's successors in title and all subsequent owners and operators of the Project Land,(ii)are not merely personal covenants of the Owner and(iii)shall bind the Owner(and the benefits shall inure to the Board and any past,present or prospective tenant of the Project)and its respective successors and assigns during the term of this Agreement.The Owner hereby agrees that any and all requirements of the laws of the State of Montana to be satisfied in order for the provisions of this Agreement to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full,and that any requirements of privileges of estate are intended to be satisfied,or,in the alternate,that an equitable servitude has been created to insure that these restrictions run with the land. For the longer of the period this Credit is claimed or the term of this Agreement,each and every contract,deed or other instrument hereafter executed conveying the Project or portion thereof shall expressly provide that such conveyance is subject to this Agreement;provided,however,the covenants contained herein shall survive and be effective regardless of whether such contract,deed or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance is subject to this Agreement. (c) The Owner covenants to obtain the consent of any prior recorded lienholder on the Project to this Agreement and such consent shall be a condition precedent to the issuance of Internal Revenue Service Form 8609 constituting final allocation of the Credit. Section 3. Representations Covenants and Warranties of the Owner.The Owner hereby represents,covenants and warrants as follows: a(a) The Owner isa Limited Partnership dulyorganizedunderthe laws ofthe State of Montana and is qualified to transact business underthe laws of the State of Montana,(11)has the power and authority to own its properties and assets and to carry on its business as now being conducted and(iii)has the full legal right,power and authority to execute and deliver this Agreement. (b) The execution and performance of this Agreement by the Owner(1)will not violate or,as applicable,have not violated any provision of law,rule or regulation or any order of any court Or other agency or governmental body, (ii)will not violate or, as applicable, have not violated any provision of any indenture, I Illlil IIIII III�I Illlll lilll III�II�II�I 11I III�I IIII III 220 of 1 61002P ShelleY Vanes-Gallatin Cc MT MISC IM00 agreement,mortgage,mortgage note or other instrument to which the Owner is a party or by which it or the Project is bound and(iii)will not result in the creation or imposition of any prohibited encumbrance of any nature. (c) The Owner will,at the time of execution and delivery of this Agreement,have good and marketable title to the premises constituting the Project free and dear of any lien or encumbrance(subject to encumbrances created pursuant to this Agreement or other permitted encumbrances). (d) There is no action,suit or proceeding at law or in equity or by or before any governmental instrumentality or other agency now pending or,to the knowledge of the Owner,threatened against or affecting it or any of its properties or rights which,if adversely determined,would materially impair its right to carry on business substantially as now conducted(and as now contemplated by this Agreement)or would materially adversely affect its financial condition. (a) The Project constitutes orwill constitutea qualified low-income building orqualified low-income project,as applicable,as defined in Section 42 of the Code and applicable Regulations. (f) Each unit in the Project contains complete facilities for living,sleeping,eating,cooking and sanitation (unless the Project qualifies as a single-room occupancy project or transitional housing for the homeless)which are to be used on other than a transient basis. (9) During the term of this Agreement,all units subject to the Credit shall be leased and rented or made available to members of the general public who qualify as Low-Income Tenants(or otherwise qualify for occupancy of the low-income units)under the applicable election specified in Section 42(g)of the Code. (h) The Owner agrees to comply fullywith the requirements ofthe Fair Housing Actas it mayfrom time to time be amended. (1) During the term of this Agreement,the Owner covenants,agrees and warrants that each low-income unit is and will remain suitable for occupancy in accordance with Section 42(I)(3)(13)(ii)of the Code and applicable local health,safety and building codes. 0) The Owner may not refuse to lease any unit subject to the credit to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder. (k) Subjectto the requirements ofSection42oftheCodeandthisAgreement,the Ownermaysell, transferor exchange the entire Project at anytime,but the Ownershall notify in writing and obtain the agreement of any buyer or successor or other person acquiring the Project or any interest therein that such acquisition is subject to the requirements of this Agreement and to the requirements of Section 42 of the Code and applicable Regulations.This provision shall not act to waive any other restriction on sale,transfer or exchange of the Project or any low-income portion of the Project. The Owner agrees that the Board may void any sale,transfer or exchange of the Project if the buyer or successor or other person fails to assume in writing the requirements of this Agreement and the requirements of Section 42 of the Code.Notwithstanding the provisions of this subsection,no portion of a building to which this Agreement applies may be sold to any person unless all of such building is sold to such person. (1) The Owner agrees to notify the Board in writing of any sale,transferor exchange of the entire Project. (m) The Owner shall not demolish any part of the Project orsubstantiallysubtract from any real or personal property of the Project or permit the use of any residential rental unit for any purpose other than rental housing during the tens of this Agreement unless required by law- (n) The Owner represents,warrants and agrees that,if the Project,or any part thereof,shall be damaged or destroyed or shall be condemned or acquired for public use,the Owner will use its best efforts to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction,or to relieve the condemnation,and thereafterto operate the Project in accordance with the terms of this Agreement. (o) The Owner warrants that it has not and will not execute any other agreement with provisions contradictory to,or in opposition to,the provisions hereof,and that,in any event,the requirements of this Agreement are paramount and controlling as to the rights and obligations herein setforth 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(the"Section 42 Occupancy Restrictions")that: WO) _ 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. (2) XX 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 Owner shall prepare and submit to the Board by January 25th of each year an annual certification of program compliance in substantially the form attached as Exhibit B hereto. (c) The Ownershall,unless waived bythe Department ofTreasury pursuantto Section 42(gX8)of the Code,annually obtain and maintain on file from each Low-Income Tenant residing in the Project an updated copy of each tenant's executed Certification of Tenant Eligibility and Income Verification in substantially the form attached as Exhibit C hereto. The Owner must submit a copy of each tenants annual certification to the Board.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. 2 a m Section 5.Term of Agreement.(a)Except as hereinafter provided,this Agreement and the Section 42 Occupancy Restrictions specified herein shall commence with the first day in the Project period on which any building which is part of the (o o o Project is placed in service and shall and on the date which is 15 years after the close of the initial 15-year compliance period. The Owner has committed to a minimum of 16 years beyond the initial 15-year compliance period. Nam (b) Notwithstanding subsection(a)above,the Owner shall comply with the requirements of Section 42 o relating to the extended use period for an additional 15 years;provided,however,the extended use period forany building which is part of this Project shall terminate: (1) On the date the building is acquired by foreclosure or instrument in lieu of foreclosure(unless the Secretary of the Treasury determines that such acquisition is part of an arrangement to terminate the Occupancy Restrictions);or r (2) On the last day of the compliance period or the last day of the commitment period noted in c subsection(a),if the Owner has property requested that the Board assist in procuring a qualified contract forthe acquisition of the low-income portion of any building which is a part of the Project and the Board is unable to � y present a qualified contract. (c) Notwithstanding subsection(a)and(b)above,the Section 42 rent requirements shall continue for a period of three years following the termination or expiration of the extended use requirement as set forth above.The owner shall not evict or terminate the tena ncy of an existing tenant of any low-income unit other than for good cause du ring the 15- year compliance period,during the extended use period,or fora three-year period following termination or expiration of this agreement. Secfion6.Enforcement of Section 42 Occupancy Restrictions.(a)The Owner covenants that itwill not knowingly take or permit any action that would result in a violation of the requirements of Section 42 of the Code and applicable Regulations or of this Agreement. Moreover,the Owner covenants to take any lawful action(including amendment of this Agreement as may be necessary,in the opinion of the Board)to comply fully with the Code and with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the United States Department of the Treasury,the Internal Revenue Service or the Department of Housing and Urban Development from time to time pertaining to the Owner's obligations under Section 42 of the Code and affecting the Project. (b) The Owner acknowledges that the primary purpose for requiring compliance by the Owner with the restrictions provided in this Agreement is to assure compliance of the Project and the Ownerwith Section 42 of the Code and the applicable regulations,and,by Reason thereof,the Owner in consideration for receiving low-income housing credits for the Project hereby agrees and consents that the Board and any individual who meets the income limitation applicable under Section 42(whether prospective,present orforcner occupant)shall be entitled,forany breach of the provisions hereof,and in addition to all other remedies provided by law or in equity,to enforce specific performance by the Owner of its obligations under this Agreement in a state court of oompetentjurisdiction.The Owner hereby further specifically acknowledges that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. (c) The Owner hereby agrees that the representations and covenants set forth herein may be relied upon by the Board and all persons interested in Project compliance under Section 42 of the Code and the applicable Regulations. (d) The Owner of a low-income housing project is required to retain the following information for each yearfor each building in the project for at least six years beyond the end of the compliance period forthe building:(1)the total number of residential rental units in a building;(ii)the percentage of residential rental units in the building that are Low-Income Units; (iii)the rent charged on each residential rental unit in the building(including utility allowances);(iv)the Low-Income Unit vacancies in the building and the rentals of the next available units;(v)the annual income certification of each Low-Income Tenant;(vi)documentation to support each Low-Income Tenant's income certification;and(vii)the character and use of any nonresidential portion of the building included in the eligible basis of the building. (e) The Owner agrees that if,at any point following execution of this Agreement,Section 42 of the Code or regulations implementing said Section require the Board to undertake additional monitoring of the Section 42 Occupancy Restrictions or, alternatively, the Board chooses to undertake additional monitoring of the Section 42 Occupancy Restrictions,the Owner will take any and all actions reasonably necessary and required by the Board to substantiate the Owner's compliance with the Section 42 Occupancy Restrictions and will pay a reasonable fee to the Board for such monitoring activities performed by the Board. (f) At least once every three years,the Owner shall permit,during normal business hours and upon reasonable notice,any duly authorized representative of the Board to inspect any building in the project and to inspect any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants and rents charged to low income tenants(including utility allowances)which pertain to compliance with the Occupancy Restrictions specified in this Agreement. (9) The Ownershall submit anyother information,documents or certifications requested bythe Board which the Board shall deem reasonably necessary to substantiate the Owner's continuing compliance with the provisions of the Occupancy Restrictions specified in this Agreement. Section 7. Miscellaneous. (a) Severabilitv.The invalidity of any clause,part or provision ofthis Agreement Shall not affect the validity of the remaining portions thereof. (b) Notices. All notices to be given pursuant to this Agreement shall be in writing and shall be deemed given when mailed by certified or registered mail,return receipt requested,to the parties hereto at the addresses set forth below,or to such other place as a parry may from time to time designate in writing. To the Board: Montana Board of Housing P.O.Box 200528 Helena,MT 59620-0528 Attn: LIHTC Program 3 N eYS-�Q Gi"lur � Nerf� r To the Owner. ��"" �"'^ ' " (��//`` CIO -F&4 G. U e.R�rf�tef�G/ur Pa�the� �p a �SSS W, Colle e,51u4 8 uut m'm 91OZZA / Z+.r. SFW JF Nam The Board and the Owner may,by notice given hereunder,designate any further or different addresses to which ^� o subsequent notices,certificates or other communications shall be sent. .� (c) Amendment. The Owner agrees that it will take all actions necessary to effect amendment of this Agreement as may be necessary to comply with the Code and any and all applicable rules,regulations, policies,procedures,rulings or other official statements pertaining to the Credit. U a = (d) Release and Indemnification. The Owner hereby agrees to pay,indemnify and hold the Board r harmless from any and all costs,expenses and fees,including all reasonable attorneys'fees which may be uIncurred bythe Board in enforcing or attempting to enforce this Agreement whether the same shall be enforced by suit or otherwise:together with all costs,fees and expenses which may be incurred in connection with any amendment to this Agreement or otherwisebytheBoardattherequestoftheOwner(including,butnotlimitedto, the reasonable fees and expenses of the Board's Counsel in connection with any opinion to be rendered hereunder). The Owner agrees to release the Board from any claim,loss,demand orjudgment as a result of the allocation of tax credit dollars to the Project or the recapture of same by the Internal Revenue Service,and to 'o indemnify the Board for any claim,loss,demand orjudgment against the Board as the result of an allocation of tax credit dollars to the Project or the recapture of same by the Internal Revenue Service. (e) Subordination of Agreement.This Agreement and the restrictions hereunder are subordinate L to the loan and loan documents,if any,on the Project except insofar as Section 42 requires otherwise(relating to 'O the three-year vacancy and rent control in accordance with Code Section 42(h)(6)(E)). (f) Governing Law.This Agreement shall be governed by the laws of the State of Montana and, where applicable,the laws of the United States of America. (g) Survival of Obligations.The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall not be deemed to terminate or merge with the awarding of the allocation. (h) Conditions of Tax Credit Allocation.The Owner shall comply with the Conditions of the Tax Credit Allocation as listed in Exhibit A-2. IN WITNESS WHEREOF, the Owner has caused this Agreement t e Aign@d by/i� duly authorized representatives,as of the day and year first written above. Ci [SEAL) OWNER g5RV&AokSe �� �5-giPkf�r �I Gvq hfL by.' G oa.se � e�s Gi /1GA°�arr� By Name /Ib'f-rg. Title /fv,•��aLtf.J�/. �GN�I/�tc-r /'r'eJ�p? Notarization of Owner's Signature: / STATE OFrr 1Mon-ta oa ) )as, COUNTY OF C'74 Ila/,/I, ) On this��day of�in the year l�§before me, 7rQ public in and for said state,personally appeared ,known tome to be the person whose name is subscribed to the within instrument and acknowledged to me that(s)he xecuted the same. / My commission expires: U' o�UO 01 - Notary Public in and for the State off'11h�QI7 `''•�`• ,;t;�b. �6✓i��/G n7 C. J��i)G lam. /r— 4 EXHIBIT A-1 (Legal Description of Project Land) a TRACT 1 OF CERTIFICATE OF SURVEY 1256,LOCATED IN THE NORTHEAST OF SECTION 2 SOUTH,RANGE 5 N EAST,PRINCIPAL MERIDIAN,GALLATIN COUNTY,MONTANA IO°a CA 111 N m 1 N'm a� a U � E E ° U � C �A y V � 1 i O C r � a EXHIBIT A-2 L (Conditions of Tax Credit Allocation) 3 of the units will be Income targeted to 40%of Area Median Income Tenants 26 of the units will be income targeted to 50%of Area Median Income Tenants 18 of the units will be Income targeted to 60%of Area Median Income Tenants 1 of the units will be Manager's units 3 of the units will have rents based on 40%of Area Median Income 26 of the units will have rents based on 50%of Area Median Income 18 of the units will have rents based on 60%of Area Median Income 1 of the units will be Manager's units 31 years extended use requirement 0 of units will target mentally and physically handicapped or be handicapped units exceeding fair housing req. Any major changes to the original application must be approved by the Board Greater than 30%soft costs to hard costs and below maximum on developer fees 5 III IIII IIIIdil11111111111111��l1111111111 Pass: 13 Zp Shal ley Vano*-Gallatin Co MT MISC 111.00 OWNER'S CERTIFICATE OF CONTINUING PROGRAM COMPLIANCE To: MONTANA BOARD OF HOUSING Certification From: To: Dates: January 1,20 December 31,20 Project Name: Project No: ❑ No buildings have been Placed in Service ❑ At least one building has been placed in Service but owner elects to begin credit period in the following year. If either of the above applies,please check the appropriate box,and proceed to page 2 to sign and date this form. Project Address: City: Z'p` Tax ID#of Ownership Entity: The undersigned on behalf of (the"Owner"),hereby certifies that: 1. The project meets the minimum requirements of: (check one) ❑ 20-50 test under Section 42(g)(1)(A)of the Code ❑ 40-60 test under Section 42(g)(1)(B)of the Code ❑ 15-40 test for"deep rent-skewed"projects under Section 42(g)(4)and 142(d)(4)(B)of the Code 2. There has been no change in the applicable fraction(as defined in Section 42(c)(1)(B)of the Code)for any building in the project: ❑NO CHANGE ❑CHANGE If"Change",list the applicable fraction to be reported to the IRS for each building in the project for the certification year on page 3: 3. The owner has received an annual Tenant Income Certification from each low-income resident and documentation to support that certification,or the owner has a re-certification waiver letter from the IRS in good standing,has received an annual Tenant Income Certification from each low-income resident,and documentation to support the certification at their initial occupancy. ❑YES ❑NO 4. Each low-income unit in the project has been rent-restricted under Section 42(g)(2)of the Code: [3 YES ❑NO 5. All low-income units in the project are and have been for use by the general public and used on a non-transient basis(except for transitional housing for the homeless provided under Section 42(i)(3)(B)(iii)of the Code): ❑YES ❑ NO ❑HOMELESS 6. No finding of discrimination underthe Fair Housing Act,42 U.S.0 3601-3619,has occurred forthis project.Afinding ofi iscrimination includes an adverse final decision by the Secretary of Housing and Urban Development(HUD),24 CFR 180.680,an adverse final decision by a substantially equivalent state or local fair housing agency,42 U.S.0 3616a(a)(1),or an adverse judgment from a federal court: ❑NO FINDING ❑FINDING 7. Each building in the project is and has been suitable for occupancy,taking into account local health,safety,and building codes(or other habitability standards),and the state or local government unit responsible for making building code inspections did not issue a report of a violation for any building or low income unit in the project: ❑YES ❑NO If"No",state nature of violation on page 3 and attach a copy of the violation report as required by 26 CFR 1.42-5 and any documentation of correction. B. There has been no change in the eligible basis(as defined in Section 42(d)of the Code)of any building in the project since last certification submission: Fi �llllll lllll 11111 1111111 lull IN III 11111111111111111 2206102 v5041177P Sh�llay Vanoa-Gallatin Cc MT MISC 111.00 ❑NO CHANGE ❑CHANGE If"Change",state nature of change(e.g.,a common area has become commercial space,a fee is now charged for a tenant facility formerly provided without charge,or the project owner has received federal subsidies with respect to the project which had not been disclosed to the allocating authority in writing)on page 3: 9. All tenant facilities included in the eligible basis under Section 42(d)of the Code of any building in the project,such as swimming pools, other recreational facilities,parking areas,washer/dryer hookups,and appliances were provided on a comparable basis without chargetoall tenants in the buildings: ❑YES ❑NO 10. If a low-income unit in the project has been vacant during the year,reasonable attempts were or are being made to rent that unit or the next available unit of oompara ble or smaller size to tenants having a qualifying income before any u nits were or will be rented to tenants not having a qualifying income: ❑YES ❑NO 11. If the income of tenants of a low-income unit in any building increased above the limit allowed in Section 42(g)(2)(D)(ii)of the Code,the next available unit of comparable or smaller size in that building was or will be rented to residents having a qualifying income: ❑YES ❑NO 12. An extended low-income housing commitment as described in section 42(h)(6)was in effect,including the requirement under section 42(h)(6)(B)(iv)that an owner cannot refuse to lease a unit in the project to an applicant because the applicant holds a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937,42 U.S.C.1437s. Owner has not refused to lease a unit to an applicant based solely on their status as a holder of a Section 8 voucher and the project otherwise meets the provisions,including any special provisions, as outlined in the extended low-income housing commitment(not applicable to buildings with tax credits from years 1987-1989): ❑YES ❑NO ❑NIA 13. The owner received its credit allocation from the portion of the state ceiling set-aside for a project involving"qualified non-profit organizations" under Section 42(h)(5)of the code and its non-profit entity materially participated in the operation of the development within the meaning of Section 469(h)of the Code. ❑YES ❑NO ❑ N/A 14. There has been no change in the ownership or management of the project: ❑NO CHANGE ❑CHANGE If"Change",complete page 3 detailing the changes in ownership or management of the project. Note: Failure to complete this form in its entirety will result in noncompliance with program requirements. In addition,any individual other than an owner or general partner of the project is not permitted to sign this form,unless permitted by the state agency. . The project is otherwise in compliance with the Code,including any Treasury Regulations,the applicable State Allocation Plan,and all other applicable laws,rules and regulations. This Certification and any attachments are made UNDER PENALTY OF PERJURY. (Ownership Entity) By: Title: Date: 7 Il�lil II�II II1�I IIIIII 1IIII�IIIII 1l�ll Ill��lil INI IIII 2206102P ShelleY Vance-Gallatin Cc MT MISC 111.00 question 14 above) PLEASE EXPLAIN ANY ITEMS THAT WERE ANSWERED"NO"."CHANGE"OR"FINDING" TRANSFER OF OWNERSHIP ON QUESTIONS 1-14. Date of Change; Question Explanation Taxpayer ID # Number: Legal Owner Name: General Partnership: Status of Partnership LLC,etc CHANGE IN OWNER CONTACT Date of Change: Owner Contact: Owner Contact Phone: Owner Contact Fax: Owner Contact Email: CHANGE IN MANAGEMENT CONTACT Date of Change: Management Co. Name: Management Address: Mgmt city,state, zip: Management Contact: MgmtContact Phone: Management Contact Fax: Management Contact Email: CHANGES IN OWNERSHIP OR MANAGEMENT (to be completed ONLY if"CHANGE"marked for R IIII I IIIII IIIII IIII 1111111111111111111111111 220 of 13 61002P Shall�y Vanea-Gal lath Cc MT MISC 111.00 TENANT INCOME CERTIFICATION Effective Date: ❑Initial Certification ❑Recertification ❑Other Move-in Date: MM/DD/YYYY PART I—DEVELOPMENT DATA Property Name: County: BIN#: Address: Unit Number: #Bedrooms: PART II.HOUSEHOLD COMPOSITION HH First Name&Middle Relationship to Head Date of Birth F/T Student Social Security Mbr Last Name Initial of Household (MM/DD/YYYY) (Y or N) or Alien Reg.No. # --- j HEAD 2 3 r — -- 4 6 PART III.GROSS ANNUAL INCOME USE ANNUAL AMOUNTS HH (A) (B) (C) (D) Mbr# Employment or Wages Soc.Security/Pensions Public Assistance Other Income i TOTAL $ $ j $ $ S Add totals from(A)through(D),above TOTAL INCOME $ E: PART IV.INCOME FROM ASSETS Hshld (F) (G) (H) (I) Mbr# Type of Asset C/I Cash Value of Asset Annual Income from Asset TOTALS: $ $ Enter Column(H)Total Passbook Rate If over$5000 $ X 2.00% _ (1) Imputed Income S Enter the greater of the total of column I,or J:imputed income TOTAL INCOME FROM ASSETS $ K (L)Total Annual Household Income from all Sources[Add(E)+(K)l $ HOUSEHOLD CERTIFICATION&SIGNATURES The information on this form will be used to determine maximum income eligibility. Uwe have provided for each person(s)set forth in Part II acceptable verification of current anticipated annual income. Uwe agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member moving in. Uwe agree to notify the landlord immediately upon any member becoming a full time student. Under penalties of perjury,Uwe certify that the information presented in this Certification is true and accurate to the best of my/our knowledge and belief The undersigned further understands that providing false representations herein constitutes an act offraud.False,misleading or incomplete information may result in the termination ofthe lease agreement. Signature (Date) Signature (Date) Signature (Date) Signature (Date) 9 Illill1111111111 IIIIII IIIII HE 11111111111111111111I Page Shelley Vance—Gallatin Cc MT MISC 111.00 PART V. DETERMINATION OF INCOME ELIGIBILITY RECERTIFICATION ONLY: TOTAL ANNUAL HOUSEHOLD INCOME Household Meets Current Income Limit x 140%: FROM ALL SOURCES: Income Restriction From item(L)on page 1 $ at: $ ❑ 60% ❑ 50% Household Income exceeds 140%at ❑40% ❑30% recertification: ❑ ado [I Yes ❑NO Current Income Limit per Family Size: $ Household Income at Move- $ Household Size at Move-in: in: PART VI. RENT $ Tenant Paid Rent Rent Assistance: $ Utility Allowance $ Other non-optional charges: $ GROSS RENT FOR UNIT: Unit Meets Rent Restriction at (Tenant paid rent plus Utility Allowance& other non-optional charges) $ 0 60% Q 50% 0 40% Q 30%0 % Maximum Rent Limit for this unit: S PART VII. STUDENT STATUS *Student Explanation: ARE ALL OCCUPANTS FULL TIME STUDENTS? If yes,Enter student explanation* I TANF assistance (also attach documentation) 2 Job Training Program ❑yes ❑no 3 Single parent/dependent child 4 Married/joint return Enter i 1-4 PART VIII. PROGRAM TYPE Mark the program(s)listed below(a.through e.)for which this household's unit will be counted toward the property's occupancy requirements. Under each program marked,indicate the household's income status as established by this certification/recertification. a. Tax Credit ❑ b. HOME ❑ c. Tax Exempt ❑ d. AHDP ❑ e. ❑ (Name of Program) See Part V above. Income Status Income Status Income Status ❑ 5 50%AMGI ❑ 50%AMGI ❑ 50%AMGI Income Status ❑ 5 60%AMGI ❑ 60%AMGI ❑ 80%AMGI ❑ ❑ <_80%AMGI ❑ 80%AMGI ❑ OI** ❑ ❑ OI** ❑ OI** ❑ OI** •* Upon recertification,household was determined over-income OI according to eligibility requirements of theprogram(s)marked above. SIGNATURE OF OWNER/REPRESENTATIVE Based on the representations herein and upon the proofs and documentation required to be submitted,the individual(s)named in Part 11 of this Tenant income Certification is/are eligible under the provisions of Section 42 of the Internal Revenue Code,as amended,and the Land Use Restriction Agreement(if applicable),to live in a unit in this Project. SIGNATURE OF OWNER/REPRESENTATIVE DATE 1(1 1111 11111 1111111111111111111111111111111111111111111 22610 0 02P Shelley Vane-061WIn Co MT MISC 111.00 INSTRUCTIONS FOR COMPLETING TENANT INCOME CERTIFICATION This form is to be completed by the owner or an authorized representative. Part I-Development Data Check the appropriate box for Initial Certification(move-in),Recertification(annual recertification),or Other. If Other,designate the purpose of the recertification(i.e.,a unit transfer,a change in household composition,or other state-required recertification). Move-in Date Enter the date the tenant has or will take occupancy of the unit. Effective Date Enter the effective date of the certification. For move-in,this should be the move-in date. For annual recertification,this effective date should be no later than one year from the effective date of the previous(re)certification. Property Name Enter the name of the development. County Enter the county(or equivalent)in which the building is located. BIN# Enter the Building Identification Number(BIN)assigned to the building(from IRS Form 8609). Address Enter the address of the building. Unit Number Enter the unit number. #Bedrooms Enter the number of bedrooms in the unit. Part II-Household Composition List all occupants of the unit. State each household member's relationship to the head of household by using one of the following coded definitions: H - Head of Household S Spouse A Adult co-tenant O Other family member C Child F Foster children)/adult(s) L Live-in caretaker N None of the above Enter the date of birth,student status,and social security number or alien registration number for each occupant. If there are more than 7 occupants,use an additional sheet of paper to list the remaining household members and attach it to the certification. Part III-Annual Income See HUD Handbook 4350.3 for complete instructions on verifying and calculating income,including acceptable forms of verification. From the third party verification forms obtained from each income source,enter the gross amount anticipated to be received for the twelve months from the effective date of the(re)ccrtifrcation.Complete a separate line for each income-earning member. List the respective household member number from Part II. Column(A) Enter the annual amount of wages,salaries,tips,commissions,bonuses,and other income from employment;distributed profits and/or net income from a business. Column(B) Enter the annual amount of Social Security,Supplemental Security Income,pensions,military retirement,etc. Column(C) Enter the annual amount of income received from public assistance(i.e.,TANF,general assistance, disability,etc.). Column(D) Enter the annual amount of alimony,child support,unemployment benefits,or any other income regularly received by the household. Row(E) Add the totals from columns(A)through(D),above. Enter this amount. Part IV-Income from Assets See HUD Handbook 43.50.3 for complete instructions on verifying and calculating income from assets,including acceptable 11 IIIIII full III�I�Illil I�III Il�lll II�II III I�1I11 IIV Ilfl 220 ©6102P Shelley Vane-Gallatin Cc MT MISC 111.00 forms of verification. From the third party verification forms obtained from each asset source,list the gross amount anticipated to be received during the twelve months from the effective date of the certification. List the respective household member number from Part II and complete a separate line for each member. Column(F) List the type of asset(i.e.,checking account,savings account,etc.) Column(G) Enter C(for current,if the family currently owns or holds the asset),or I(for imputed,if the family has disposed of the asset for less than fair market value within two years of the effective date of (re)certification). Column(H) Enter the cash value of the respective asset. Column(I) Enter the anticipated annual income from the asset(i.e.,savings account balance multiplied by the annual interest rate). TOTALS Add the total of Column(H)and Column(I),respectively. If the total in Column(H)is greater than$5,000,you must do an imputed calculation of asset income. Enter the Total Cash Value, multiply by 2%and enter the amount in(J),Imputed Income. Row(K) Enter the greater of the total in Column(1)or(J) Row(L) Total Annual Household Income From all Sources Add(E)and(K)and enter the total HOUSEHOLD CERTIFICATION AND SIGNATURES After all verifications of income and/or assets have been received and calculated,each household member age 18 or older must sign and date the Tenant Income Certification. For move-in,it is recommended that the Tenant Income Certification be signed no earlier than 5 days prior to the effective date of the certification. Part V—Determination of Income Eligibility Total Annual Household Income Enter the number from item(L). from all Sources Current Income Limit per Family Enter the Current Move-in Income Limit for the household size. Size Household income at move-in For recertifications,only. Enter the household income from the move-in Household size at move-in certification. On the adjacent line,enter the number of household members from the move-in certification. Household Meets Income Check the appropriate box for the income restriction that the household meets Restriction according to what is required by the set-aside(s)for the project. Current Income Limit x 140% For recertifications only. Multiply the Current Maximum Move-in Income Limit by 140%and enter the total. Below,indicate whether the household income exceeds that total. If the Gross Annual Income at recertification is greater than 140%of the current income limit,then the available unit rule must be followed. Part VI-Rent Tenant Paid Rent Enter the amount the tenant pays toward rent(not including rent assistance payments such as Section 8). Rent Assistance Enter the amount of rent assistance,if any. Utility Allowance Enter the utility allowance. If the owner pays all utilities,enter zero. Other non-optional charges Enter the amount of non-optional charges,such as mandatory garage rent,storage lockers,charges for services provided by the development,etc. Gross Rent for Unit Enter the total of Tenant Paid Rent plus Utility Allowance and other non-optional charges. Maximum Rent Limit for this unit Enter the maximum allowable gross rent for the unit. Unit Meets Rent Restriction at Check the appropriate rent restriction that the unit meets according to what is I? 1 illl�l I�III IIII�I�IIIIIIIII IIIIII I�III I�I IIIIII II1 IIII 22061002P Sheller Vance-Callatln Co MT MISC 111.00 required by the set-asides)for the project. Part VII-Student Status If all household members are full time*students,check"yes". If at least one household member is not a full time student,check"no". If"yes"is checked,the appropriate exemption must be listed in the box to the right. If none of the exemptions apply,the household is ineligible to rent the unit. *Full time is determined by the school the student attends. Part VIII—Program Type Mark the program(s)for which this household's unit will be counted toward the property's occupancy requirements. Under each program marked,indicate the household's income status as established by this certification/recertification. If the property does not participate in the HOME,Tax-Exempt Bond,Affordable Housing Disposition,or other housing program,leave those sections blank. Tax Credit See Part V above. HOME If the property participates in the HOME program and the unit this household will occupy will count towards the HOME program set-asides,mark the appropriate box indicting the household's designation. Tax Exempt If the property participates in the Tax Exempt Bond program,mark the appropriate box indicating the household's designation. AHDP If the property participates in the Affordable Housing Disposition Program(AHDP),and this household's unit will count towards the set-aside requirements,mark the appropriate box indicting the household's designation. Other If the property participates in any other affordable housing program,complete the information as appropriate. SIGNATURE OF OWNER/REPRESENTATIVE It is the responsibility of the owner or the owner's representative to sign and date this document immediately following execution by the resident(s). The responsibility of documenting and deternuning eligibility(including completing and signing the Tenant Income Certification form) and ensuring such documentation is kept in the tenant file is extremely important and should be conducted by someone well trained in tax credit compliance. These instructions should not be considered a complete guide on tax credit compliance. The responsibiltry for compliance with federal program regulations lies with the owner of the building(s)for which the credit is allowable. 1'i