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period beginning on the date of issue of the Bonds and ending on the later of the date: <br />(a) which is fifteen years after the date on which at least fifty percent of the units of <br />the Project are first occupied; <br />(b) on which no tax-exempt private activity bond issued with respect to the Project is <br />outstanding; or <br />(c) on which any assistance provided with respect to the Project under Section 8 of <br />the United States Housing Act of 1937, as amended, terminates. <br />Bond Allocation. <br />The City will apply an allocation for issuance of the Bonds under Minnesota Statutes, <br />Chapter 474A. <br />Monitoring Methods <br />It is believed the oversight exercised by the trustee bank and certain other parties will be <br />adequate to insure the Project as presented is in fact carried out. The Project must be operated by <br />the Borrower in accordance with various operating covenants (relating to such things as <br />maintenance, insurance, etc.) to be contained in the financing agreement(s) and related mortgage <br />loan documents to be entered into by the City, the Borrower and certain other parties, which <br />financing agreement(s) and mortgage loan documents will be assigned by the City, to the extent <br />of the City's interests, to the trustee bank as security for the Bondholders. <br />The City will be required to monitor compliance with the income and rent restrictions set <br />forth in the Regulatory Agreement and will require regular reporting from the Borrower as to the <br />incomes of tenants occupying the lower-income units and the rental rates for such units. The <br />City, its staff and the City's existing community development staff can satisfactorily monitor <br />such compliance. <br />All costs incurred by the City in connection with the Project and the issuance of the <br />Bonds will be paid by the Borrower. The Borrower will pay an up -front issuance fee of 1% of <br />the total principal amount of the Bonds to defray ongoing administrative costs to be incurred by <br />the City. <br />Housing Program Dated May 28, 2013 <br />Public Hearing Held May 28, 2013 <br />-3- <br />23 <br />