14-20 Cedar Glen Bond Ordinance Addendums

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"Special Funds"means, collectively, the Bond Fund, the Project Fund and the Assignment Fund, and any accounts therein, all as created in the Indenture. Amounts deposited in the Special Funds are to be invested in Eligible Investments. See"THE INDENTURE—Investment of Funds"herein. All Loan Payments will consist of Available Money and will be paid directly to the Trustee in amounts sufficient, without need for reinvestment, to pay all of the interest on the Bonds when due and to pay the principal of the Bonds on the earlier of any Mandatory Tender Date or any Redemption Date, as further described herein. Available Money will be invested in Eligible Investments under the Indenture. See"THE INDENTURE–Investment of Funds"herein. THE BORROWER The Borrower is MAH Cedar Glen, LP, an Indiana limited partnership. The managing member of the Borrower is Merchants Affordable Housing Corp., an Indiana corporation. The Borrower does not intend to acquire any substantial assets or engage in any substantial business activities other than those related to the ownership of the Project. However, the Borrower's members and affiliates may engage in the acquisition, development, ownership and management of similar types of housing projects. Neither the Borrower nor its members or affiliates will be personally liable to pay the principal of and interest on the Bonds. Furthermore,no representation is made that the Borrower will have substantial funds available for the Project. Accordingly, neither the Borrower's financial statements nor those of its affiliates or members are included in this Official Statement. THE PROJECT The Project, known as Cedar Glen Apartments Project, consists of acquiring, constructing, equipping and improving privately owned real and personal property into a multifamily housing complex, containing 179 affordable living units located in South Bend, Indiana. The Project will not be pledged as security for the Bonds. The Borrower anticipates that construction of the Project will take approximately 12 months. The unit mix of the Project is as follows: Unit Type Number Approximate Square Feet 1BR 39 2BR 140 Regulatory Restrictions The Borrower's operation of the will be subject to the terms of a Regulatory Agreement P Project and Declaration of Restrictive Covenants,dated as of April 1,2020(the"Regulatory Agreement"),among the Borrower, the Trustee and the Issuer, which contains covenants required to maintain the exclusion of interest on the Bonds from gross income for federal income tax purposes, in accordance with Section 142(d) of the Code. The Regulatory Agreement will require that for the Qualified Project Period (as defined therein), not less than 40% of the dwelling units in the Project be occupied by families or individuals of low or moderate income, defined as families or individuals whose income does not exceed 60%(adjusted for family size)of the median gross income for the area in which the Project is located. -6-