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deficit equals or is less than that projected on that mortgage application. 3. Maintenance as Residential Rental Property. Neither the Borrower nor the City, as applicable, shall 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 and the City represent, warrant and agree 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 accordance with proposed Treasury Regulation Section 1.103 - 8(b)(4)(v) and shall consist of the residential units in the Development, all other property of the Development benefiting only such units and the allocable portion of the property of the Development benefiting both such units and other portions of the Development, as provided by said proposed regulations. (b) Each of the dwelling be similarly constructed, and shall distinct facilities for living, sanitation for a single person or a CHFA 53SLP.RIDGE.VIEW 12/14/89 Q02189 -4- units in the Development shall contain complete, separate and sleeping, eating, cooking and family. (c) Each of the dwelling units in the Development shall be available for rental to members of the general public. None of the dwelling units in the Development shall at any time be utilized on a transient basis, shall ever be leased or rented for a period of less than thirty (30) days, or shall ever be used other than for housing purposes. The Development shall not be used as a hotel, motel, dormitory, fraternity or sorority house, rooming house, hospital, nursing home, sanitarium, rest home, or trailer park or court for use on a transient basis. (d) The Development consists of a parcel or parcels that are contiguous except for the interposition of a road, street or stream, and all of the Development's facilities comprise a single geographically and functionally integrated project for residential rental property, as evidenced by the common ownership, management, accounting and operation of the Development. (e) Neither the Borrower nor the City, as applicable, shall convert the Development to condominium or other individual unit ownership during the term of this Agreement. No part of the Development shall at any time be owned or used by a cooperative housing corporation except in compliance with the provisions of Section 143(k)(9) of the Code.