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Ron Mootse- Housing Program-Orono.doc Page 3 <br /> administer the Bonds. <br /> Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the <br /> trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated <br /> by the Program, no administrative costs will be paid from the City's budget with respect to this <br /> Program except as otherwise provided by resolution of the City. The Bonds will not be general <br /> obligation bonds of the City, but are to be paid only from properties pledged to the payment <br /> thereof, which may include additional security such as additional collateral, insurance or a letter <br /> of credit. <br /> Subsection C. Local Contributions To The Program. It is presently contemplated that <br /> there will be a local contribution of funds to the Project consisting of tax increment financing by <br /> the Authority or the City for Land acquisition and certain public costs, together with an <br /> appropriation of funds for a local contribution. <br /> Subsection D. Standards and Requirements Relating to the Financing of the Projects <br /> Pursuant to the Program. The following standards and requirements shall apply with respect to <br /> the operation of the Project by the Owner pursuant to this Program: <br /> (1) Substantially all of the proceeds of the sale of the Bonds will be used to <br /> provide funds for the acquisition and construction of the Project. The funds will be made <br /> available to the Owner pursuant to the terms of the Bond offering, which may include <br /> certain covenants to be entered into between the City and the Owner. <br /> (2) The Owner will not arbitrarily reject an application from a proposed tenant <br /> because of race, color, creed, religion, national origin, sex, marital status, or status with <br /> regard to public assistance or disability. <br /> (3) No Housing Unit may be in violation of applicable zoning ordinances or <br /> other applicable land use regulations, including any urban renewal plan or development <br /> district plan, and including the state building code as set forth under Minnesota Statutes, <br /> Section 16.83,et seq. <br /> Subsection E. Evidence of Compliance. The City may require from the Owner or such <br /> other person deemed necessary at or before the issuance of the Bonds, evidence satisfactory to <br /> the City of the ability and intention of the Owner to complete the Project, and evidence <br /> satisfactory to the City of compliance with the standards and requirements for the making of the <br /> financing established by the City, as set forth herein; and in connection therewith, the City or its <br /> representatives may inspect the relevant books and records of the Owner in order to confirm such <br /> ability, intention and compliance. In addition, the City may periodically require certification <br /> from either the Owner or such other person deemed necessary concerning compliance with <br /> various aspects of the Program. <br /> Subsection F. Issuance of Bonds. To finance the Program authorized by this Section,the <br /> City may by resolution authorize, issue and sell its Revenue Bonds in one or more series, and <br /> using any additional credit enhancement devices determined by the City to be necessary or <br /> desirable for each such series, in an aggregate principal amount estimated to be up to$9,000,000. <br /> The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be <br /> HOUSING PROGRAM <br /> 3 <br />