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200109053 determination of income, but prior to the next determination, any residential unit of comparable or smaller size is rented to a tenant who is not a Qualified LIHTC Tenant. "Qualified LIHTC Unit" means a residential unit in the Project designated for occupancy by Qualified LIHTC Tenants. "Qualified Project Costs" means the Project Costs incurred not earlier than the date 60 days prior to the Inducement Date which constitute costs of a residential rental project within the meaning of Section 1.103 -8 of the Regulations and which are chargeable to a capital account with respect to the Project for federal income tax and financial accounting purposes, or would be so chargeable either with a proper election by the Borrower or but for the proper election by the Borrower to deduct those amounts; provided, however, that only such portion of the interest accrued on the Bonds during the construction of the Project shall constitute Qualified Project Costs as bear the same ratio to all such interest or fees, as applicable, as the Qualified Project Costs bear to all Project Costs; provided further that such interest shall cease to be a Qualified Project Cost on the Completion Date; and provided further that if any portion of the Project is being constructed by the Borrower or an Affiliated Party (whether as a general contractor or a subcontractor), "Qualified Project Costs" shall include only (a) the actual out -of- pocket costs incurred by the Borrower or such Affiliated Party in constructing the Project (or any portion thereof), (b) any reasonable fees for supervisory services actually rendered by the Borrower or such Affiliated Party (but excluding any profit component) and (c) any overhead expenses incurred by the Borrower or such Affiliated Party which are directly attributable to the work performed on the Project, and shall not include, for example, intercompany profits resulting from members of an affiliated group (within the meaning of Section 1504 of the Code) participating in the construction of the Project or payments received by such Affiliated Party due to early completion of the Project (or any portion thereof). Qualified Project Costs do not include Costs of Issuance, letter of credit fees and municipal bond insurance premiums (including related collateral fees, counsel fees and other expenses), leasing commissions, costs of advertising for the Project or other costs related to the rental of units in the Project, or management fees for the management and operation of the Project and do not include any amount to be reimbursed unless the reimbursement is made not later than 18 months after the later of (1) the date the original expenditure was paid or (ii) the date the Project is placed in service, but in no event more than three years after the original expenditure was paid. "Qualified Project Period" means the longer of the Qualified Project Period (Bonds) and the Qualified Project Period ( LIHTC). "Qualified Project Period (Bonds)" means the period beginning on the first day on which 10% of the Dwelling Units are occupied and ending on the latest of (a) the date which is 15 years after the date on which 50% of the Dwelling Units are occupied, (b) the first date on which no tax - exempt private activity bond (as that phrase is used in Section 142(d)(2) of the Code) issued with respect to the Project is outstanding or (c) the date on which any assistance provided with respect to the Project under Section 8 of the Housing Act terminates. "Qualified Project Period ( LIHTC)" means the period beginning on the first day on which the Project is placed in service and ending on the date 30 years after the Occupancy Date. "Regulations" means the Income Tax Regulations promulgated or proposed (if deemed appropriate in the opinion of Bond Counsel) by the Department of the Treasury pursuant to the Code from time to time. W