(2) If the Department fails to present a QC before
the end of the 1YP, the Department will file a release of the LURA
and the Development will no longer be restricted to low-income requirements
and compliance. However, in accordance with §42(h)(6)(E)(ii)
of the Code, for a three-year period commencing on the termination
of the Extended Use Period, the Development Owner may not evict or
displace tenants of Low-Income Units for reasons other than good cause
and will not be permitted to increase rents beyond the maximum tax
credit rents. Additionally, the Development Owner should submit to
the Department a request to terminate the LURA and evidence, in the
form of a signed certification and a copy of the letter, to be approved
by the Department, that the tenants in the Development have been notified
in writing that the LURA will be terminated and have been informed
of their protections during the three-year time frame.
(3) Prior to the Department filing a release of the
LURA, the Development Owner must correct all instances of noncompliance
at the Development.
(i) Compliance Monitoring during Extended Use Period.
For Developments that continue to be bound by the LURA and remain
affordable after the end of the Compliance Period, the Department
will monitor in accordance with the applicable requirements in Subchapters
F and G of this chapter (relating to Uniform Multifamily Rules).
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