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Regular City Council Meeting Monday, June 11, 2007 Page 9 Ms. Bolton responded that there was no reason this property should be property tax exempt, as it was not being operated as such. Councilmember Ihlan requested guarantees for the City that the prop- erty would remain low-income rent eligible; and what restrictions were attached to the bond issue and specific uses of the property. Ms. Bolton advised that restrictions remained in place, pursuant to the agreement recorded in the title record and remaining in place for the longer of the bond term or fifteen years; and that agreement was that 40% of the units be set aside for families whose income didn't exceed the established area median income. Ms. Bolton noted that, in order to qualify for those units, people would have to provide income documentation; and advised that the units were not intended for stu- dent or transient housing, but for residential, multi-family housing. Ms. Bolton further noted that, if the properties were sold in the future, the new owner would also have to comply with those restrictions, as outlined in the agreements. Mr. Miller noted that the bond issue was anticipated at 30 years. Councilmember Ihlan clarified that the new owners would have to comply with those restrictions, and that the property couldn't be used for any other purpose. Ms. Bolton reiterated that new owners would be subject to the same restrictions as the current applicant. Councilmember Ihlan questioned who would enforce those restric- tions, and what provisions were in place for monitoring at the city level. Ms. Bolton advised that the City is party to receipt of annual docu- mentation; however, noted that the Bond Trustee involved in financ- ing would be responsible for collecting, reviewing and monitoring the borrower, and verifying their adherence to ongoing covenants. Ms. Bolton noted that the borrower was required to file an annual report with the Trustee and the City, but advised that the Trustee would be