06-08-2022 Council Packet - Laserfiche WebLink

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73515263v2 local building codes. The Project, as proposed, is not inconsistent with any Housing Plan adopted by the City under Minnesota Statutes, Chapter 462C. The Project will be available for rental to the general public. The Borrower will be required to operate the Project in accordance with state and local anti-discrimination laws and ordinances. Bonds. The Borrower has indicated that the original principal amount of the Bonds, expected to be issued by the City no later than July of 2022, to finance the Project, and, if needed, to fund appropriate reserves and to pay the costs of issuing the Bonds, will not exceed $11,000,000. The Bonds may be structured so as to take advantage of whatever means are available or necessary and are permitted by law to enhance the security for and marketability of the Bonds. Substantially all of the net proceeds of the Bonds (the initial principal amount thereof, less amounts deposited in a reasonably required reserve or paid out as costs of issuance of the Bonds) will be used to pay the costs of the Project, including any functionally related and subordinate facilities. The Bonds will be issued pursuant to Section 462C.07, subdivision 1, of the Act and are and will be payable primarily from revenues of the Project. Allocation of Issuance Authority. An allocation of authority to issue tax-exempt bonds is required pursuant to Minnesota Statutes, Chapter 474A, and the Borrower has received such allocation from the State, pursuant to that certain Certificate of Allocation for Residential Rental Projects, Number 423, dated January 11, 2022. Monitoring. The Borrower expects to enter into suitable agreements with necessary parties to ensure consistent compliance with the objectives of this Program, as well as with the requirements of applicable law. Affordability. The Project has been designed to be affordable, and all or a portion of the units thereof shall be leased to persons or households of low to moderate income, all in accordance with the Act and other applicable state and federal laws. Furthermore, in connection with the loan to be made from the proceeds of the issuance of the Bonds, the Borrower expects to enter into certain agreements covenanting the Borrower to maintain the affordability of the Project and to ensure that a certain percentage of the units thereof are leased to persons or households of low to moderate income, all for so long as the Bonds are outstanding. Use of Bond Proceeds. The proceeds of the Bonds will be loaned to the Borrower pursuant to a loan agreement (the "Loan Agreement") by and between the City and the Borrower. The