05.02 - HRA West Grove Townhome Refunding

Home Browse Search

(c) The City HRA will: (i) not take or permit any action to be taken on its behalf `.. which would cause the Bonds to be "arbitrage bonds" within the meaning of Section .148 of the Code (ii) continue to own the Project for the entire term of the Bonds, (iii) ensure that the Project is both a"housing development project" and a"qualified housing development project" pursuant to Sections 469.017 and 469.034, Subd. 2 of the Act, including ensuring that rents are set and tenants selected pursuant to Section 3.10 herein and Section 4.9 of the Indenture (iv) not allow the Project to be used for a private business use as defined in Section 141 of the Code, and (v) not take or permit any action to be taken on its behalf which would cause interest on the Bonds to become includable in gross income for purposes of federal income taxation under the Code; (d) The City HRA will cause the construction, equipping, and payment of all costs of the Project to occur, regardless of the sufficiency of Bond proceeds and other amounts in the Construction Fund; (e) The City HRA will prepare or cause to be prepared, on behalf of the County HRA, all annual audits, budgets and cash flow projections of its funds and accounts created hereby or pursuant to the Financing Documents, specifically those required to be provided under Sections 4.13 and 4.14 of the Indenture, and to make these open to inspection as may be required by the County HRA or the Trustee. ( fl The City HRA will perform all obligation specified in Sections 4.3, 4.4, 4.5, and 5.3 of the Indenture. (g) The City HR.A assumes and makes, for the benefit of tlie County HRA, all `% warranties, representations, agreements, and covenants set forth in Section 12.9 of the Indenture. ��. ....: (h) The City HRA will proyide title insurance for the Project Site and pledges the proceeds thereof, if any, to the County. (i) to collect monthly rents when due, but in any event not later than the 15`h day of each month, and to ensure payment of these rents into the receipts account, for payment to the Trustee, pursuant to Section 3.3 of this Agreement. Section 3.5. Citv HR-A Snecial Benefits Tax. In Resolution No. 03125 dated September 16, 2003, the City Council of the City consented to and approved the annual levy by the City HRA of its Special Benefits Tax of up to .0144 percent of taxable market value and to the extent it is needed to pay debt service on the Bonds. The City HRA pledges to the County HRA, for the benefit of holders of the Bonds, the proceeds of the Special Benefits Tax in the amount that, together with Project Revenues, is sufficient to pay 110 percent of principal and interest when due on the Bonds. In the event the annual cash flow projection prepared by the City HRA for any Fiscal Year pursuant to the Indenture indicates that Project Revenues available in such Fiscal Year will not be sufficient to pay 110 percent of principal and interest on the Bonds when due in such Fiscal Year, the City HR.A will promptly take steps to levy the Special Benefits Levy in accordance with Minnesota Statutes Section 469.033, subd. 6(the "Levy Act"). The City HR.A shall timely submit is annual budget to the City each year while the Bonds are Outstanding in accordance with the Levy Act, and shall include in each budget an amount at least equal to the � lesser of (i) the deficiency calculated as described in this Section, or (ii) the ma�cimum levy EMT-238666v5 CR195�