BETHANY VILLAGE APARTMENTS INC

BETHANY VILLAGE APARTMENTS INC BETHANY VILLAGE APARTMENTS, INC. (THE PROJECT) WAS ORGANIZED TO CONSTRUCT, OWN AND OPERATE A 100-UNIT APARTMENT COMMUNITY IN INDIANAPOLIS, INDIANA, KNOWN AS BETHANY VILLAGE APARTMENTS, PURSUANT TO SECTION 202 OF THE NATIONAL AFFORDABLE HOUSING ACT AS AMENDED. THE PROJECT HAS EXECUTED A REGULATORY AGREEMENT WITH HUD, WHICH GOVERNS THE OPERATION OF THE PROJECT WITH THE FEDERAL HOUSING ADMINISTRATION (FHA) SECTION OF HUD. THE PROJECT HAS ALSO ENTERED INTO A HOUSING ASSISTANCE PAYMENT CONTRACT (HAP CONTRACT) WITH HUD. THE HAP CONTRACT IS A RENT ASSISTANCE PROGRAM FOR LOW-INCOME FAMILIES (OR PERSONS) AS PROVIDED BY THE SECTION 8 PROGRAM OF THE NATIONAL HOUSING ACT. ELIGIBLE LOW-INCOME TENANTS PAY 30% OF THEIR INCOME AS RENT WHILE HUD PAYS THE DIFFERENCE BETWEEN THIS RENTAL AMOUNT AND CONTRACT RENT (AS DEFINED). THE PROJECT CAN REQUEST FROM HUD AN ADDITIONAL AMOUNT EQUAL TO 80% OF CONTRACT RENT DURING PERIODS THAT THE UNIT IS VACANT IF CERTAIN CONDITIONS ARE MET, BUT NOT TO EXCEED 60 DAYS. I