Common use of Recapture Event Clause in Contracts

Recapture Event. BORROWER ACKNOWLEDGES THAT FAILURE TO COMPLY WITH ALL TCAP REQUIREMENTS MAY TRIGGER RECAPTURE, AND ANY DEBT DETERMINED TO BE SUBJECT TO SUCH RECAPTURE SHALL BE DUE AND PAYABLE IMMEDIATELY TO FLORIDA HOUSING AND ENFORCEABLE BY ALL AVAILABLE MEANS AGAINST ANY ASSETS OF THE BORROWER, INCLUDING FORECLOSURE OR OTHER REMEDIES UNDER THIS AGREEMENT, THE TCAP MORTGAGE AND THE LOAN DOCUMENTS. (i) there has been an Event of Default hereunder, and as a consequence thereof, Florida Housing has determined that the Development cannot be completed by the RequiredPlaced In-Service Date or is not likely to become a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code) by the date required by Section 6.1A(iv); (ii) the Borrower has not expended on Eligible Uses an amount equal to seventy-five percent (75%) of the Loan by the Seventy-Five Percent Funding Date (unless such date is extended in accordance with Section 4.2B herein); (iii) the Tax Credit Award of Tax Credit Allocation is terminated or cancelled; (iv) the Development is not completed by the RequiredPlaced In-Service Date; (v) the Development does not become a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code) by the end of the year following the year in which the first building in the Development, which is required to contain Low-Income Units, is placed in service, or the Development otherwise fails to qualify for Tax Credits; (vi) the Development ceases to be a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code); (vii) TCAP Funds have been determined by Florida Housing or HUD to have been expended for Ineligible Costs and have not been repaid to the extent of such Ineligible Use; (viii) no Tax Credit Investor makes an equity investment in the Borrower in exchange for Tax Credits; (ix) the Borrower or the Development fails to comply with any other requirements of this Agreement, Section 42 of the Code, or Chapters 67- 48 and 67-53, Fla. Admin. Code, as applicable to Housing Tax Credits, after any applicable cure period; or (x) a default under any of the Loan Documents, after any applicable cure period.

Recapture Event. BORROWER ACKNOWLEDGES THAT FAILURE TO COMPLY WITH ALL TCAP EXCHANGE PROGRAM REQUIREMENTS MAY TRIGGER RECAPTURE, AND ANY DEBT DETERMINED TO BE SUBJECT TO SUCH RECAPTURE SHALL WILL BE DUE AND A DEBT OWED TO THE UNITED STATES PAYABLE IMMEDIATELY TO FLORIDA HOUSING THE GENERAL FUND OF THE TREASURY AND ENFORCEABLE BY ALL AVAILABLE MEANS AGAINST ANY ASSETS OF THE BORROWER, INCLUDING FORECLOSURE OR OTHER REMEDIES UNDER THIS AGREEMENT, THE TCAP RECAPTURE MORTGAGE AND THE LOAN DOCUMENTS. A. A “Recapture Event” shall be deemed to occur if, at any time during the first fifteen (15) years of the Compliance Period, any one or more of the following events shall occur: (i) there has been an Event of Default hereunder, and as a consequence thereof, Florida Housing has determined that the Development cannot be completed by the RequiredPlaced In-Service Date or is not likely to become a “qualified low-income housing project” (as defined in Section 42(g)(1) of the Code) by the date required by Section 6.1A(iv); (ii) the Borrower has not expended on Eligible Uses the Development an amount equal to seventy-five at least ten percent (7510%) of its “reasonably expected basis in such Development” for purposes of Section 42(h)(1)(E)(ii) of the Loan Code by the Seventy-Five Percent Funding Date (unless such first anniversary of the date is extended in accordance with Section 4.2B herein)of this Agreement; (iiiii) the Tax Credit Award of Tax Credit Allocation is terminated or cancelled; (iv) any building in the Development which is required to contain Low-Income Units is not completed placed in service by the RequiredPlaced Required In-Service Date; (viii) the Development does not become a “qualified low-income housing projectdevelopment” (as defined in Section 42(g)(1) of the Code) by the end of the year following the year in which the first building in the Development, which is required to contain Low-Income Units, is placed in service, or the Development otherwise fails to qualify for Tax Credits; (viiv) the percentage of Low-Income Units in the Development falls below the Required Percentage; (v) the Development ceases to be a “qualified low-income housing projectdevelopment” (as defined in Section 42(g)(1) of the Code); (viivi) TCAP Exchange Program Funds have been determined by Florida Housing or HUD the Treasury to have been expended for Ineligible costs that are not Eligible Costs in violation of Program Requirements and have not been repaid to the extent of such Ineligible Userepaid; (viiivii) no Tax Credit Investor makes an equity investment in 100% of Exchange Program Funds advanced to the Borrower in exchange for Tax Credits;have not been expended by the Expiration Date; or (ixviii) the Borrower or the Development fails to comply with any other requirements of this Agreement, Section 42 of the Code, or Chapters 67- 48 and Chapter 67-5348, Fla. Admin. Code, as applicable to Housing Tax Credits. B. If a Recapture Event shall occur, the applicable portion of Exchange Program Funds disbursed to the Borrower shall be subject to “recapture” in the amounts set forth below (the “Recapture Amount”). (i) If the Recapture Event arises under Section 6.1A(iv) or (v) above, after allowing any applicable permitted period for correction, the Recapture Amount shall be equal to the full amount of the Subaward, less 6.67% for each year (full 12-month period) of the first fifteen (15) years of the Compliance Period in which a Recapture Event has not occurred; provided, however, that if the Borrower (a) restores the percentage of Low-Income Units to the Required Percentage and/or (b) restores the Development as a “qualified low- income housing development,” as applicable, and/or (c) otherwise cures such Recapture Event within thirty (30) days of written notification of the Recapture Event by Florida Housing or the Servicer (which time for cure period; ormay be extended by Florida Housing in its sole, reasonable discretion), the Recapture Event may be waived by Florida Housing. (xii) If the Recapture Event arises under Section 6.1A(i), (ii) or (iii) above, the Recapture Amount shall be an amount equal to the entire amount of Exchange Program Funds actually disbursed to the Borrower under the terms of this Agreement. (iii) If the Recapture Event arises under Section 6.1A(vi) above, the Recapture Amount shall be an amount equal to the amount of Exchange Program Funds determined to have been expended for costs that are not Eligible Costs in violation of Program Requirements. (iv) In the event of any Recapture Event set forth above, the Recapture Amount shall include any interest or penalties that may accrue in accordance with the Program Requirements. C. If a default under any of Recapture Event occurs, in addition to the Loan DocumentsRecapture Amount, after any applicable cure periodthe Borrower shall pay to Florida Housing upon demand an amount equal to the costs and fees, including attorneys’ fees and costs, incurred by Florida Housing in connection with the Recapture Event.