04-28-2004 Council Agenda - Laserfiche WebLink

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within 15 days of the request of the City, pay or reimburse for the payment of all Legal and Administrative Expenses. Section 3.4. Compliance With Low and Moderate Income Requirements. The Developer covenants that in excess of eighty percent (80 %) of the "fair market value" (as defined in Section 469.174, Subdivision 11, of the Act) of the Project will at all times be occupied by persons of "low and moderate income" (as defined in the Tax Increment Financing Plan) and that it will establish such monitoring procedures with respect to applicants for and occupants of dwelling units in the Project as the City may reasonably require to assure compliance with this requirement. Section 3.5 Compliance with Community Development Block Grant Requirements. To the end of satisfying the requirements for the Community Development Block Grant, during the five year period commencing on the date the construction of the Project is substantially complete and extending through the fifth anniversary date thereof (unless such period is extended by HUD) (the "CDBG Period "), the Developer represents, covenants and agrees as follow: (a) at least 51% of the completed residential units in the Project shall be occupied by CDBG Tenants; (b) at least 51% of the completed residential units in the Project shall be rented at affordable rents in accordance with guidelines promulgated from time to time by HUD. For purposes of satisfying the requirements of (a) and (b) above, the following rules apply: (i) an individual qualifies as a CDBG Tenant and will continue to qualify as such as long as he or she continues to reside in such unit even though the occupant subsequently ceases to meet the income requirements of a CDBG Tenant, and (ii) when a CDBG Tenant leaves a unit, such unit will be considered occupied by a CDBG Tenant if it is held vacant and available for such occupancy until it is reoccupied by another tenant, other than on a temporary period which in no event shall exceed 31 days, at which time the status of the new tenant as a CDBG Tenant is to be determined. (c) the Developer agrees that in order to avoid violating the requirements of subsection (b) above, the following rules apply: 226247 9 - 2 6 -