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f "Program" shall mean this program for the financing of the Project pursuant to the Act. "Project" shall mean the residential rental housing development consisting of approximately 364 Housing Units, 97 one-bedroom and 267 two- bedroom units to be acquired and rehabilitated by the Developer. Section B. Proe:ram For Financ1ne the Project. It is proposed that the City establish this Program to provide financing for acquisition and rehabilitation of the Project at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the Developer. The City expects to issue the Bonds as soon as the terms of the Bonds have been agreed upon by the City, the Developer and the initial purchaser of the Bonds. The proceeds of the Bonds will be loaned to the Developer to finance the acquisition of the Land and the rehabilitation of the Project, to fund required reserves and to pay the costs of issuing the Bonds. It is expected that a trustee will be appointed by the City to monitor the rehabilitation of the Project and the paYment of principal and interest on the Bonds. It is anticipated that the Bonds shall have a maturity of approximately thirty (30) years and will bear interest at a rate priced to the market at the time of issuance. The City will hire no additional staff for the administration of the Program. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the paYment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Section C. Local Contributions To The Program. The Developer has not requested any local contributions to the Program with respect to the Project. Section D. Standards and Re uirements Relatin to the Financin of the Project Pursuant to the Proe:ram. T e ollowmg standards and requirements s apply with respect to the operation of the Project by the Developer pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be applied to the acquisition and rehabilitation of the Project and to the funding of appropriate reserves. The proceeds will be made available to the Developer pursuant to the terms of the Bond offering, which will include certain covenants to be made by the Developer to the City regarding the use of proceeds and the character and use of the Project. (2) The Developer, and any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) At least forty percent (40%) of the Housing Units will be held for occupancy by families or individuals with gross income not in excess of sixty percent (60%) of median family income, adjusted for family size, in order to comply with Federal tax law requirements for the use of tax-exempt financing. 8RG76010 lIE136-119 2