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2oioo��5 ARTICLE Il SUBAWARD OF SECTION 1602 PROG M FUNDS Sectinn 2.1. Sabaward (a) The Authority shall rnake th� Subaward to the Owner pursuant to the terms and conditions of this Agreement. �n. no event shall the aggregate amount of the Subaward advanced pursuant to this Agreement and the Program Requirernents exceed the lesser af (i) $935,295 or (ii) the amount determined by the Authority to be necessary for the finar►cial feasibility of the Project and its viability as a qualified low-income housing project tl�roughout the Compliance Period, which shall be determined in a manner consistent with determinatrans made by th:e Authority with respect to Tax Credits pursuant ta Section 42(rrs)(2) of the Code. (b) The Qwner shall receive the Subaward and use the proceeds thereof to pay the casts incurxed by the Owner in connection with the construction/rehabilitation of the 1'rojecC. The funding of tk�e Subaward (and any portion thereo� is expressly conditioned upan the Owner complying with all of the Pragram Requirements and the terms of this Agreement. (c) If, at the time of the Cost Certi�catian, the Authority shall determine that (i) the amaunt of the Subaward is rnore than the amaunt necessary for the �nancial feasibility of the Praject and its viability as a yua]ified low-income housing project throughout the Compliance Period, (ii) a portion of the Subawa�t�d has been expcnded on costs not eligible under the Program Requirernents, or (iii) the tc�tal amount of the Subaward exceeds 85% of the Eligible Basis of the Project as detemnined by the Authority (in each such case, the amount determin�d by the Authority to have been excessive or not permissible is the "Excess Arn.ounC"), the Author�ty shall pravide the Owner with notice thereoF and the Ownex shall pay, in imrnediately available funds within ten (10) Business Days from the date of such notic�, an aranount equal to the Excess Ainount ta th.e Authority. In addition to the foregoing, the Authority may talce any other remedial action it deems necessary or advisable to fulfill its Pragram Requirernent to Treasury or otherwise cazxyout the principal purposes of th� Section 1602 Program. (d) The Subaward and each disbursement of the proceeds thereof are contingettt upon the appropriatian and disbursement of sufficient Section 16q2 Program Funds by Treasury to the Authority for reirnburseznent of the costs incurred by the Owner with respect to the Project. If the Autharity fails to receive adequate S�ction 1602 �'rograrn Funds froin Treasury, the Authority shall so notify tl�e Owner in writing within a reaaonable periad of time and shall not be liable far failure to rnake any disbursernents undex this Agreement. Sectxon 2.2. Term This Agreement shall b� effective upon its executron and delivery and shall remain in full force and effect until the expiration of the Compliance Period unless earlier terminated in accordance with the terms hereof (the "Term"). -7- 4841-2135-3478.2