06-23-2004 Council Agenda - Laserfiche WebLink

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COVENANTS NOW THEREFORE, in consideration of the premises set forth above, the part ies agree as follows: (1) Restrictions on Low Income. The Partnership will enter into and record a Declaration of Land Use Restrictive Covenants for Low - Income Housing Credits pursuant to Section 42(h)(6) of the Code and such Declaration shall provide that 65% or 77 of the Project units in total between the two (2) buildings comprising the Project shall be leased to individuals or families whose income is 60% or less of the area median gross income (including adjustments for family size) as determined in accordance with Section 42 of the Code. In addition, the Partnership further agrees that it shall not claim an "applicable fraction" greater than sixty -five (65 %) of the total number of units of the Project or the "floor space fraction ", whichever is applicable, pursuant to Section 42(c)(1)(B),(C) and (D) of the Code, in connection with its application for the Issuance of the Internal Revenue Service Forms 3609's and in computing the annual low- income housing tax credits allowed to the Partnership during the tax credit period. It is understood, however, that the 65% limit applies on an aggregate basis between both buildings comprising the Project and one building may be higher or lower than 65% as long as the combined average is 65% or less. The Partnership shall provide the City with copies of all Internal Revenue Service Forms 8609 issued by the Minnesota Housing Finance Agency as evidence that it has complied with these provisions within five (5) business days of the issuance. On or before April 15 of each year, the Partnership shall certify to the City that it is in compliance with these provisions and shall produce at the same time copies of all Internal Revenue Service Forma 3586 to be filed with the Partnership's tax return for the taxable year in question. The Partnership shall grant the City, or its professional advisors, reasonable access to its books and records for the limited purpose of confirming compliance with this provision. (2) Operation. a. The Partnership will undertake thorough tenant screening including, but not Limited to, credit and criminal checks of each prospective resident. The purpose of this screening will be to prevent undesirable or problematic individuals from gaining occupancy in the Project. b. The Partnership will require the execution of the document entitled "House Rules and Regulations" by each new tenant. It is acknowledged that the Partnership will update these rules and regulations from time to time, but they shall be in essentially the same form as those presented to the City and dated February 1997. c. The Partnership pledges it best efforts to maintain the physical appearance of the Project in an appropriate condition so as not to detract from the Project's value. d. The Partnership pledges to work with the City's taw enforcement agency on crime prevention activities with the goat of providing a safe and secure property for the - 1 0 -