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06-10-2026 Council Packet
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06-10-2026 Council Packet
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<br />16 <br />Error! Unknown document property name. <br />actions and provide all documents and information to the Lender, in each case, necessary for Lender to <br />comply with the LCDA Grant Agreements, including, without limitation: <br />(a) The Borrower shall comply with and satisfy the affordability and affirmative fair <br />housing marketing plan requirements of Sections 3.01 and 3.02 of the LCDA Grant Agreements. <br />(b) The Borrower shall complete and submit to the Lender reports per Section 2.05(c), <br />2.06, and Section 4.03 of the LCDA Grant Agreements. <br />Notwithstanding anything herein to the contrary, the Lender acknowledges that the housing units in the <br />Project reserved for households who have a combined gross annual income which does not exceed 30% of <br />Area Median Income and leased at rental rate limits for such households (adjusted for bedroom count, and <br />including utilities and mandatory fees) as determined and announced from time to time by HUD and as <br />published annually by the Minnesota Housing Finance Agency (or any successor agency(ies) administrating <br />government affordable housing programs)) (the “30% Units”) are currently subsidized by Housing Support <br />funding from the Minnesota Department of Human Services. The Lender agrees that if such support (or an <br />alternative or replacement housing subsidy) is withdrawn or otherwise not available for any reason outside <br />of the Borrower’s reasonable control, then the Borrower may, following prior written notice to the Lender <br />and without being in default hereunder, increase rents for the 30% Units up to such applicable HUD rental <br />limits for households who have a combined gross annual income which does not exceed 60% of Area <br />Median Income (“60% Units”) to account for any reduction of operating income due to the loss of such <br />subsidy so long as the Borrower diligently endeavors to obtain reinstatement of such subsidy or an <br />alternative subsidy in order to provide the 30% Units at the rental limits hereunder for 30% Units in <br />accordance with the original financial assumptions for the Project reflected in the LCDA Grant applications, <br />and upon the Borrower’s receipt of any such subsidy the Borrower’s shall thereafter return to renting the <br />30% Units at the rental limits hereunder for 30% Units. Further, the Borrower shall at all times ensure that <br />the average rental rate for all units in the Project does not exceed the rental limits hereunder for 60% Units. <br />(Signature pages follow.)
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