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I • CITY OF ORONO AMENDED PROGRAM FOR THE FINANCING OF A MULTIFAMILY RENTAL HOUSING DEVELOPMENT FOR SENIORS Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Orono (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has created a program of financing to encourage and facilitate the development of multifamily rental housing for seniors in the City (the "Program") owned by Orono Senior Housing, LLC (the "Owner"). The sole member of the Owner will be Volunteers of America in Minnesota, a Minnesota nonprofit corporation. Pursuant to the Act, the Program is hereby amended to permit the Project to be occupied by persons age 55 and older. In addition, the Project financing is to be refunded through the issuance of up to $9,000,000 in refunding revenue bonds issued by the City (the "Bonds") pursuant to the Act. At least twenty percent (20%) of the units financed are specifically reserved for tenants whose incomes are not greater than fifty percent (50%) of the area median income. It is estimated that approximate rents for the Project, depending on unit size and amenities,are: 1 Bedroom $ 1 Bedroom+Den $ 2 Bedroom $ 2 Bedroom+Den $ 50% of Median Income 1 Bedroom $ 1 Bedroom+Den $ The City, in establishing this Program, considered, among other things (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private marketing financing for the construction of multifamily housing units; (iii) an analysis of population, employment trends and projections of future population trends and future employment needs; (iv) housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City, in adopting the original Program, further considered (i) the amount, timing and sale of it revenue bonds to finance the estimated costs of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervisingthe Program; (iv) the costs of the City, including future • administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. HOUSING PROGRAM