A.2.3.1 Instructions for Representations when the Lender and Syndicator are Affiliated

• A. The MAP Lender’s Representation and Warranty must state:

1. With respect to any tax credit project loan that it will process under MAP:

No officer or employee of _____________________ (insert the name of the affiliated tax credit equity syndicator or investor) or any director or parent thereof will have any loan-specific or decision making control or influence in ________________’s (insert the name of MAP Lender) underwriting of the MAP loan except by providing factual information to __________________ (insert the name of MAP Lender) in the same manner as would be provided by an unaffiliated syndicator).

_______________________ (insert name of MAP Lender) will not condition its agreement to provide such financing on ______________ (insert the name of affiliated tax credit equity syndicator or investor) being selected as the tax credit equity syndicator or investor for the project to be financed by the MAP loan.

2. ___________________ (insert the name of MAP Lender) will notify HUD promptly, in writing, during application processing of any change or event which causes the foregoing Representation or Warranty to be materially untrue or inaccurate.

“WARNING: Federal law provides that anyone who submits (or causes to submit) a document containing any false, fictitious, misleading, or fraudulent statement/certification or entry may be criminally prosecuted and may incur civil administrative liability. Penalties upon conviction can include a fine and imprisonment, as provided pursuant to applicable law, which includes, but is not limited to, 18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802, 24 C.F.R. Parts 25, 28 and 30, and 2 C.F.R. Parts 180 and 2424. The signatory certifies that the information provided herein is true and accurate.”

B. The MAP Lender’s affiliated tax credit equity syndicator’s or investor’s Representation and Warranty must state:

1. In the regular course of its business it syndicates or invests in tax credit equity investments in multifamily affordable housing projects.

2. With respect to any project loan that is to be underwritten by _______________ (insert name of MAP Lender) and in which _______________ (insert name of affiliated tax credit equity syndicator or investor) intends to make an equity investment or sell equity to other investors:

   • No officer or employee _____________ (insert name of MAP Lender) will have any loan-specific control or influence in _______________’s (insert name of affiliated tax credit equity syndicator or investor) processing of the Sponsor’s application for tax credit equity syndication or investment except by providing factual information to ________________ (insert the name of affiliated tax credit equity syndicator or investor) in the same manner as would be provided to an unaffiliated MAP Lender.

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Appendix 2 Quality Control Plans and Identity of Interest A.2.3 MAP Lender Representation and Warranty

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• ___________________ (insert the name of affiliated tax credit equity syndicator or investor) will not condition its commitment to syndicate or invest in the project equity on debt financing for such a project being provided by _________________ (insert name of MAP Lender).

Except during the interim period prior to the placed in service date during which _______________ (insert name of affiliated tax credit equity syndicator or investor) may make an equity bridge loan to the project, neither ________________ (insert the name of affiliated tax credit equity syndicator or investor) nor any affiliate or subsidiary thereof will hold greater than a 25 percent interest in the 99 percent investor limited partnership entity (or an equivalent percentage if owned as an LLC) of the Borrower.

“WARNING: Federal law provides that anyone who submits (or causes to submit) a document containing any false, fictitious, misleading, or fraudulent statement/certification or entry may be criminally prosecuted and may incur civil administrative liability. Penalties upon conviction can include a fine and imprisonment, as provided pursuant to applicable law, which includes, but is not limited to, 18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802, 24 C.F.R. Parts 25, 28 and 30, and 2 C.F.R. Parts 180 and 2424. The signatory certifies that the information provided herein is true and accurate.”

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Appendix 3 Program Specifications and Limitations A.3.1 Specifications and Limitations by Program

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