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22 Moderate Income Persons." The Project will be a development described in Minnesota Statutes, Section 462C.05, Subdivision 4 and is therefore exempt from the requirements of Section 462C.05, Subdivision 2 described above. The Project is consistent with the City's Comprehensive Plan. The owner of the Project will be required to operate the Project in accordance with state and local anti -discrimination laws and ordinances. Revenue Bond Financine The Bonds are proposed to be issued pursuant to the authority of Minnesota Statutes, Section 462C.07, subdivision 1. The Bonds will be issued in one or more series. The underwriter of the Bonds is expected to be Dougherty & Company LLC. The Bond sale is expected to be completed by the end of October 2013. Attached as Exhibit A is a Sources and Uses Summary showing, on a preliminary basis, the Bonds to be issued and the costs to be paid. It is likely that the final sources and uses will vary from this Exhibit — but the aggregate principal amount of Bonds to be issued will not exceed the figure above. It is anticipated that most of the Bonds will be issued on a tax-exempt basis as "exempt facility bonds" pursuant to Section 142(d) of the Code. The Bonds will not be general obligations of the City, but will be secured only by the revenues and property specifically pledged to the payment thereof pursuant to the financing agreement(s) and the trust indenture(s) pursuant to which the Bonds will be issued. Substantially all of the net proceeds of the Bonds (the initial principal amount thereof, less amounts deposited in a reasonably required reserve, if any, or paid out as costs of issuance of the Bonds) will be used to pay the costs of the Project. Meeting Needs of Low and Moderate Income Persons As a condition for providing financing for the Project, the City is requiring that the Borrower enter into a Regulatory Agreement with the City wherein the City will require that the Project be operated as a residential rental project with at least 40% of the residential units in the Project occupied (within the meaning of the regulations under Section 142(d) of the Code), by Low Income Tenants during the Qualified Project Period. "Low Income Tenants" means tenants whose adjusted gross income at the time of their initial occupancy is sixty percent (60%) or less of the median income for the Standard Metropolitan Statistical Area that includes Minneapolis/St. Paul, Minnesota, as determined by the United States Department of Housing and Urban Development. Each tenant's adjusted household income is determined in a manner consistent with income determinations under Section 8 of the United States I lousing Act of 1937, as amended without adjustment for family size. "Qualified Project Period" means the -2-