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low or moderate income status from the Borrower or Trustee; and that his or her failure or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of his or her tenancy; and (3) agrees that his or her lease may be terminated on thirty (30) days notice after any noncompliance by such tenant if such noncompliance would adversely affect the federal tax-exempt status of interest on the Bonds. (k) The proceeds ofthe Bonds will be used in accordance with the representations, warranties and covenants of Section 7.7 of the Loan Agreement and Section 7.7 of the Series C Loan Agreement. Section 2. State Law Covenants of Borrower Relating to the Project; Maximum Rent, As required by State Law, twenty percent (20%) of the units in the Project shall be occupied by tenants who are families or individuals with adjusted gross income not in excess of eighty percent (80%) of the median family income as estimated by the United States Department of Housing and Urban Development for the standard metropolitan area including the City. A tenant will continue to qualify as such as long as he or she continues to reside in such unit notwithstanding the fact that another occupant no Ionger resides in the unit because of death, divorce or disability. When a tenant leaves a unit, such unit will be considered occupied by a qualifying tenant for purposes of this section if it is held vacant and available for such occupancy until it is reoccupied by another tenant, other than for a temporary period which in no event shall exceed thirty-one (31) days, at which time the status of the new tenant is to be determined. The Borrower recognizes that the Issuer is authorized to issue the Bonds to finance the Project only if the Project complies with the restrictions set forth in Minnesota Statutes, Section 474A.047. The Borrower represents, warrants and covenants that the Project is a "project" as described in Subdivision 1(a) of said Section 474A.047. The Borrower covenants, consistent with the requirements of Minnesota Statutes, Section 474A.047, Subdivision 2, that for fifteen. (15) years: (1) the maximum rental rates of twenty percent (20%) of the units in. the Project shall not exceed the area fair market rent or exception fair market rents for existing housing, if applicable, as established by the federal Department of Housing and Urban Development; and (2) the maximum income of residents for twenty percent (20%) of the units (the same 20% noted in (1) above) in the Project shall be fifty percent {50%) of Median Income, adjusted for family size. The Borrower must annually certify for said fifteen (1 S) years that the rental rates are within these limitations, and on request the Issuers, Trustee or Borrower shall provide a copy of the annual certification to the lvlinnesota Commissioner of Finance. The Borrower acknowledges that Minnesota Statutes, Section 474A.047, Subdivision 3, requires that compliance with the rental rate and. income requirements of this Section be monitored. The City, Trustee or one or more agents acting on its or their behalf {the "Monitor") may issue an order of noncompliance if the Project is found by the Monitor to be out of 2029975vE