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available unit of comparable or smaller size, to a Qualifying Tenant before any similar units in the Project are rented to tenants not constituting a Qualifying Tenant. (b) Certification of Tenant Eligibility. As a condition to initial and continuing occupancy, each person who is intended to be a Qualifying Tenant on and after the date of this Regulatory Agreement shall be required annually to sign and deliver to the Borrower a Certification of Tenant Eligibility in the general form attached hereto as Exhibit B (the "Certification of Tenant. Eligibility"}, in which the prospective Qualifying Tenant certifies that he or she or his or her family qualifies as being of low or moderate income. In addition, such person shall be required to provide whatever other information, documents or certifications are deemed necessary by the Trustee or City to substantiate the Eligibility Certification, on an ongoing annual basis,. anal to verify that such tenant continues to be a Qualifying Tenant within the meaning of Section 3(a) hereof. (c) Lease. The form of lease to be utilized by the Borrower in renting any units in the Project on and after the date of this Regulatory Agreement to any person who is intended to be a Qualifying Tenant shall provide for termination of the lease and consent by such person to immediate eviction in accordance with applicable law for failure to qualify as a Qualifying Tenant as a result of any material misrepresentation made by such person with respect to the Certification of Tenant Eligibility. (d) Retention. Certifications of Tenant Eligibility will be maintained on file by the Borrower with respect to each Qualifying Tenant who resides in a Project unit or resided therein during the immediately preceding calendar year, commencing with the calendar year ending December 3 I, 2007, and the Borrower will file a copy thereof with the Trustee. (e)~ Annual Certification. The Borrower covenants and agrees that during the term of this Regulatory Agreement, on or before June 30 of each calendar year (or on or before such other date as may hereafter be prescribed by the Code), the Borrower shall certify to the United States Treasury Department (on Form 8703 or such other form as may hereafter be prescribed by the Code or the Treasury Department} that the Project continues to meet the requirements of Section I42(d} of the Code, and shall provide a copy of such annual certification to the Trustee. The Borrower shall provide a similar certification to the Trustee and City more frequently than annually (but not more frequently than quarterly), upon request by the Trustee or the City. Section 4. Rental Restrictions. The Borrower represents, covenants and warrants that each unit in the Project will be rented or available for rental to members of the general public on a continuous basis until the termination of the Rental Restrictions, as provided in Section 5(b) hereof, and primarily to persons of low or moderate income. The limit on "moderate income" is the greater of one hundred ten percent (110%} of the median family income as estimated by I-IUD for the standard metropolitan statistical area including the City, or one hundred percent (100%) of the income limits established by the Minnesota Housing Finance Agency for the area in which the City is located, as provided in Minnesota Statutes, Section 46X.03. 2029975v1