of the Code requires the Authority to allocate the Tax Credits necessary to

make a project economically viable. Thus, no project may receive, regardless of its absolute or relative score in the Point Ranking System, more Tax Credits than the Authority's underwriting process identifies as required for financial viability. Specifically, the amount of Tax Credits will be the lesser of the: 5.3.1.1. Maximum allowable under the Code according to the project's eligible basis and affordability level (eligible basis analysis); 5.3.1.2. Project's current necessity as the Authority's underwriting determines (sources and uses or equity gap analysis); and 5.3.1.3. Amount of tax credits requested. 5.3.2. Pro Forma Statements Pro forma statements will be prepared by the Authority based on the analysis described above, which will include recommended sources and uses of funds, as well as projected operating income for the term of affordability. These will include the amount of Tax Credits that a project would be eligible to receive, subject to the Point Ranking System, as well as the amount of permanent financing based on the established parameters, governmental subsidies, capital contributions, and funds from Authority's programs or other programs. The Authority reserves the right, in its sole discretion, to vary the above-described methodology and all Tax Credit allocation methodology and criteria in order to comply with Section 42 requirements or any state law requirements, or to further the public policy set forth in this 2025-QAP. 5.4. Project Evaluation and Selection (Point Ranking System) 5.4.1. Description The Authority will consider qualified applications for Tax Credits, after a project satisfies all basic factors, using the Point Ranking System established hereinafter. A project can accumulate a total of 100 points in the Point Ranking System. All projects seeking an allocation of 4% LIHTC or 9% LIHTC must accumulate a minimum of 30 points to be entitled to a reservation or an allocation of Tax Credits. The Authority anticipates reserving Tax Credits for projects scoring highest under the project selection criteria, up to the amount permitted by law and the 2025-QAP. NOTWITHSTANDING THE PROVISIONS IN SECTION 5.2.5 ABOVE, ONCE SUBMITTED, AN APPLICATION FOR TAX CREDITS UNDER THE 2025-QAP IS FINAL, AND INFORMATION AFFECTING THE APPLICATION'S RANKING CANNOT BE AMENDED. The Authority reserves the right not to reserve or allocate Tax Credits to any Applicant, regardless of that applicant's point ranking, if the Authority determines, in its sole and absolute discretion, that: a reservation or allocation for such Applicant or project does not further the purpose and goals of the public policy of Puerto Rico, the Action Plan, or this 2025-QAP; the Applicant's proposed project is not financially viable; or there is not a substantial likelihood that the project will be able to meet the requirements for carryover or final allocation in a timely manner. The information that might be weighed to make such determination includes, but is not limited to, comments of officials of local governmental jurisdictions, the market appropriateness of the project and market information from sources other than the submitted market study, and the prior experience of the Sponsor or its representatives with projects. Pursuant to Section 42(m)(1)(A)(iv) of the Internal Revenue Code, the Authority will make available to the general public a written explanation for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency. Every Sponsor, developer, owner, or consultant must attest to the correctness of the information provided as a condition to rank the project's application according to the Point Ranking System. Failure to uphold the information submitted or the representation made to support the application's evaluation and ranking throughout the allocation process will result in a finding of noncompliance and limited participation in further rounds for every person, developer, owner, or consultant that participates in the project's application. The Authority might pursue any other available or enforceable remedies under federal or state laws, regulations, or any applicable professional code of ethics. 5.4.1.1. Section 42 Mandatory Legislative Criteria Federal legislation requires the Authority to give preference in allocating Tax Credits to those projects serving the lowest income tenants and to those projects committed to serve qualified tenants for the longest period. 5.4.1.2. Other Criteria Applications will be evaluated according to the following additional criteria: Preferred Project Location Urban area defined as Central Urban Area by the Planning Board's Reglamento de la Infraestructura en el Espacio Público (Annex Q); or Urban Center designated by the Department of Transportation and Public Works or adopted under an Urban Center Area Plan (Annex Q); or a state-designated Historical Zone or federally designated Historical District The portion of a census tract outside an urban area, as defined above, that has a designated below poverty line rate, as specified in Section 5.4.2 The zone of influence around an Urban Train Station, as defined under