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. such Facilities. Additional security may be provided for the bonds as determined by the original purchaser of the bonds, including a mortgage on the Facilities, and such other security as may be determined to be necessary or desirable. The aggregate principal amount of the issue is expected to be not in excess of $700,000. It is anticipated that the timetable for the financing will be carried out on an expedited basis and be concluded by not later than the end of the current calendar year. This Program is contemplated to be undertaken pursuant to Section 462C.05, Subd. 4, of the Act and, therefore, it is contemplated that there shall be no specific limitation on the gross income of the occupants. It is nevertheless the anticipation of the Corporation that residents of the financed facilities will consist primarily of low and moderate income persons. Program requirements as to the Facilities are to be monitored by the City or private parties, as will be provided in the applicable agreements to be entered into in connection with the issuance of the Bonds. . 3. Need for the Proqram. The Act and the City's Housing Plan, as amended hereby, establish the need and necessity for the financing and refinancing of the Facilities included in this Program. The Housing Plan, as amended hereby, recognizes and is consistent with a goal of maintaining and increasing the number of units of affordable housing for elderly as well as low and moderate income persons and families in the City. The Housing Plan, as amended hereby, also emphasizes the promotion of middle income housing developments and multi-family developments. Finally, the Housing Plan, as amended hereby, affirms that achievement of the City's housing goals should occur through private development, supported by government financing programs, By virtue of issuing the Bonds and providing financing and refinancing for the Facilities, the City will be assisting in the reduction of the overall costs of operating the Facilities and the attendant reduction in charges otherwise necessary to be made to the residents thereof. 4. Descriotion of Facilities. The Facilities which are to be the subject of the proposed financing consist of the Corporation's existing senior housing facilities located at 3120 Lake Johanna Boulevard in the City, and which contain 19 rentable units (and one caretaker unit), comprising approximately 21,000 square feet in the aggregate. The Facilities are currently owned by The PreSbyterian Homes of Minnesota, Inc., a Minnesota nonprofit corporation (the "Corporation"). It is anticipated that the proceeds of the Bonds may also be used, in part, to pay for certain costs of issuance of the Bonds, to the extent such costs are reasonable . -2-