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(d) "Operating Expense" means all reasonable and proper expenses for operation of the Development, including real estate taxes, other taxes, insurance, including mortgage loan insurance, maintenance and repair, costs of renting and management, fuel, utilities, garbage disposal, sewer charges, audit expenses, all sums due or currently required to be paid under the terms of the Note or Deed of Trust, other approved debt service payments, required reserve deposits and other cash payments the Agency may require or approve. (e) "Operating Expense Loan" means any loan made by the Borrower to the Development for the purpose of paying Operating Expenses. Operating Expense Loans may be repaid only after payment of, or the reservation of funds for payment of, all Operating Expenses of the Development. (f) "Qualified Project Period" means a period beginning on the later of the date of this Agreement or the first day on which ten percent (10 %) of the units in the Development are occupied, and ending on the latest of: (A) the date which is fifteen (15) years after the later of the date of this Agreement or the first date thereafter on which fifty percent (50 %) of the units in the Development are first occupied, or (B) the date on which no tax - exempt "private activity bond ", within the meaning of Section 141 of the Code, issued with respect to the Development is outstanding, or (C) the date on which any assistance provided with respect to the Development under Section 8 of the United States Housing Act of 1937, as amended, terminates. (g) "Qualified Tenants" means those lower income tenants with special rights to occupy dwelling units in the Development as defined in Section 4(a) of this Agreement. (h) "Sustaining Occupancy" is deemed to have been achieved when, for at least three (3) consecutive months, (A) at least 95% of the total number of units are occupied, and (B) gross income equals or exceeds that projected on the mortgage application approved at final commitment, and (C) any operating deficit equals or is less than that projected on that mortgage application. 3. Maintenance as Residential Rental Property. The Borrower shall not take any action, or permit any action to be taken, which would result in the Development not being, or (except as expressly approved in writing by the Agency) in any proceeds of the Loan being used to provide other than, "residential rental property" within the meaning of Section 142(d) of the Code. To that end, the Borrower represents, warrants and agrees that: (a) The Development is comprised of at least two dwelling units and facilities functionally related and subordinate to the dwelling units. The portion of the Development that constitutes residential rental property shall be determined in CHFA 53SLP /RIDGEVIEW 12/2/88 V01517(DNB) -3-