Exhibit H to Subpart E of Part 1944 - Limited Equity Agreement

Limited Equity Agreement

This Agreement, dated ______, by and between ______ (hereinafter “referred to as the “Cooperative”), a corporation having its principal office and place of business at ______ and Farmers Home Administration or its successor agency under Public Law 103-354, United States Department of Agriculture (hereinafter referred to as FmHA).

Witnesseth Whereas

The purpose of the cooperative is to own and operate cooperative housing on behalf of its members, and the cooperative has applied to FmHA or its successor agency under Public Law 103-354 for mortgage financing as authorized under Section 515 of the Housing Act of 1949, as amended.

The purpose of FmHA or its successor agency under Public Law 103-354 is to provide long term housing financing for very-low, low-, and moderate-income persons and households, although initially eligible cooperative members may remain in occupancy after exceeding the income limit established for moderate income.

The additional purpose of FmHA or its successor agency under Public Law 103-354 is to maintain the availability of units financed by FmHA or its successor agency under Public Law 103-354 for very-low, low-, and moderate-income persons for as long as possible up to the 30-year maximum life of the loan.

As a means for implementing and carrying out these purposes, the cooperative pledges to FmHA or its successor agency under Public Law 103-354 that:

(a) Equity accumulated by the cooperative, other than through the appreciation in value of real estate, furnishings, and equipment of the cooperative, will be assigned on the cooperative's books equally to members at the end of its fiscal year and in accordance with the IRS ruling concerning patronage capital.

(b) The members will be notified, in writing, of the amount assigned to his or her patronage account each year after the assignment has been made.

(c) The officers, board of directors, and members of the cooperative may not act to dissolve the cooperative for the purpose of distributing equity, or for other reasons, except as necessary due to default or other circumstances beyond the cooperative's control, and

(d) Should it become necessary to dissolve the cooperative, all property and assets of the cooperative will be transferred to another nonprofit or such other municipal organization and be maintained for the same purposes for which it was started.

(e) Only membership fees and money accrued in the member's patronage capital accounts will be distributed to the members and represents the entire equity payment to which the members are entitled. The cooperative reserves the right to withdraw from the equity payment or membership fee any amount due the cooperative through member's delinquency in payment of occupancy charge or through damage to the premises.

In witness thereof, the parties hereto have caused this agreement to be signed and sealed the day and year first above written.

(Cooperative) (Witness) By:______ (Seal) (Member)

This agreement will be filed with the member's record.