2, or any applicable exception to this rule.

5.1.2. Applicant The owner, managing member, sponsors and their members must demonstrate their qualifications by submission of: 5.1.2.1. An organizational chart of the ownership structure of the development identifying the Owner, Developer, General Partner/Manager, and/or Sponsor, along with any other related entity. The chart must show the percentage of participation of each entity. 5.1.2.2. Names, addresses, telephone numbers, and email address of officers, members, directors, principal stockholders, or managing partner(s) of the following entities: Owner, Developer, General Partner/Manager, and Sponsor (entities identified on page 1 of the Application). 5.1.2.3. Organizational documents of the Owner, Developer, General Partner/Manager, and/or Sponsor, along with any other related entity, including: Articles of incorporation, by-laws, and Internal rules; Partnership/Operating Agreements; Certificates of incorporation (from U.S. states and Puerto Rico, as applicable); Certificates of Authorization to do Business in Puerto Rico for each foreign company; Good Standing Certificates (from U.S. states and Puerto Rico, as applicable); IRS Form SS-4 (application for Employer Identification Number) or other evidence of the taxpayer identification number. 5.1.2.4. Audited Financial Statements (applicable to all legal entities) of the Developer, General Partners, Managing Members, Owners, and Sponsors of each entity. Submit a copy of the most recent audited financial statements. If these were issued more than one year ago from the date of filing the application, you must also submit interim financial statements for the six-month period preceding submittal of the application. If an entity was created within twelve (12) months of the application, submit a CPA certification of a new entity and most recent interim statements. 5.1.2.5. Compiled or Revised Financial Statements (only applicable to natural persons) of the shareholders, directors, principals, officers, members, and partners of the owner, developer, managing member, and general partner. Submit a copy of the most recent compiled financial statements. If these were issued more than one year ago from the date of filing the application, you must also submit interim financial statements for the six-month period preceding submittal of the application. This requirement does not apply to applicants requesting Tax Credits under the nonprofit set-aside. 5.1.2.6. As a minimum, the combined net worth of all legal entities and natural persons involved in the ownership structure of the project (excluding actual or future limited partners and/or Tax Credit equity providers) must be equal to or greater than one million dollars ($1,000,000.00). 5.1.2.7. No minimum net worth amount will be required for nonprofit owner/developer proponents if compliance with nonprofit status requirements is met according to this 2025-QAP. 5.1.2.8. Sworn statement (affidavit) by owner, developer, and their shareholders, directors, officers, and partners, as applicable, attesting that they are not and have not been involved in any conflict of interest (in fact or appearance) in any way (either personally or in any other juridical capacity) with the Authority or any of its affiliates or their employees, officers, or agents participating in any capacity in the procurement, selection, award, or administration of a contract or agreement supported under the QAP or the NOFA; nor with any contractors that have developed or participated in drafting specifications, requirements, statements of work, and invitations for bids or requests for proposals. 5.1.2.9. All previous participants must also have evidence via sworn statement that they are not and have not been involved in any conflict of interest (in fact or appearance) in any way (either personally or in any other juridical capacity) with the Authority, employees, officers, or agents participating in any capacity in the procurement, selection, award, or administration of a contract or agreement supported under the 2025-QAP or the NOFA. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents of the Authority must neither solicit nor accept gratuities, favors, or anything of monetary value from proponents, awardees, contractors, or parties to subcontracts. To ensure objective consultant performance and eliminate unfair competitive advantage, contractors that develop or participate in drafting specifications, requirements, statements of work, and invitations for bids or requests for proposals must be excluded from competing in any capacity for such procurements. Any conflict of interest will immediately disqualify the applicant from any participation in the Authority programs. 5.1.2.10. The Applicants (owner, developer and their shareholders, directors, officers, partners, and members, as applicable), must demonstrate via sworn statement (affidavit) that they have not been involved in any way (either personally or as shareholders, directors, officers, members or partners of a corporation, partnership, limited liability company, or other form of business organization or joint venture) in any other project for which the Authority has provided any financing and/or grant (as lender, conduit, custodian of funds, or otherwise) in which a default notice under the terms and conditions of the applicable financing documents has been issued and not cured. 5.1.2.11. The Applicant will be required to disclose to PRHFA whether an identity-ofinterest exists between or among the parties participating in the development and operation of the project. This disclosure shall be made when the Application is filed and at certain other times during the development and operation of the project. The identity-of-interest definition that PRHFA will follow is the one provided by HUD's Management Agent Handbook 4381.5): "An identity-of-interest relationship exists if any officer, director, board member, or authorized agent of any development of any development team member (consultant, general contractor, attorney, management agent, seller of the land, etc.): (a) Is also an officer, director, board member or authorized agent of any other development team member; (b) Has any financial interest in any other development team member's firm or corporation; (c) Is a business partner⁵ of an officer, director, board member or authorized agent of any other development team member; (d) Has a family relationship through blood, marriage or adoption with an officer, director, board member, or authorized agent of any other development team member; or 5 In general terms, a business partner is a commercial entity with which another commercial entity has some form of alliance. This relationship may be a contractual, exclusive bond and, alternatively, it may be a very loose arrangement. Contractual relationships include general partnerships, limited partnerships, and limited liability partnerships (LLP), among others. Another type of business partner can be: (1) a supplier; (2) a customer; (3) a channel intermediary (such as an agent or reseller); or (4) a vendor of complementary offerings. (e) Advances any funds or items of value to the sponsor/borrower." 5.1.2.12. The owner and developer-and their shareholders, directors, officers, partners, and members, as applicable-with previous participation in the program, or any other low-income housing program, must submit a Compliance Disclosure Form (Exhibit HH) identifying compliance findings which are pending (i.e., open and/or unresolved) in the prior three (3) calendar years. This includes but is not limited to findings, monitoring concerns, and/or corrective actions of the following types: Issuances of Form 8823 from the IRS; Any REAC inspections resulting in a score of less than 60; Related to receipt of capital, operating, or rent subsidies from programs including but not limited to LIHTC, HOME, HTF, HOME-ARP, CDBG, TCAP, Section 1602, PR Law 173, PR Law 77, any form of commonwealth, state, or federally funded project-based rental assistance (including but not limited to Project Based Section 8, Project- Based Vouchers, USDA Rent Assistance, project-based VASH vouchers,