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��:��a�� ..��.g ��`�� <-?��°� ��°�°��„,��9�.w�'� NOW THEREFORE, in reiiance on the above staiements and in consideration of the mutual promises and covenants contained in this Agreement, the City and the Council agree as follows: Notvvithstanding the fact that Grant Nos. SGOQ7-121, S(i007-143 and SG009-079 (as amended) have been closed aut and the Council was unaware that the LCDA and TBRA grant funds were used as loans to the Project, the parties dcsire to enter into an agreement that clarifies how loan prepayments or repayments made to the City by the Project owner will be treated and to ensure loan prepayrnents or repayments are used to help fund other activities consistent �vith the requirements of the Metropolitan Livable Communities Act. 2. The Council consents ta the use of the grant funds as loans subject to the following terms and conditions, which shall apply to ail grant funding made available to the City under Grant Nos. SG007-121, SG007-i43 and SG409-097 (as amended): {a) The City covenants and represents to the Council that the Project is a rental housing project thai received or wilI receive an award of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986, as amended, and the low-income housing tax credit program administered by the Minnesota I lousing Finance Agency. (b} The Cii;y will provide to the Council a capy of the loan agreements between the City and the Project owner. (c) The City will submit annuaI written reports to the Council that cerlify: (1) the grant funcfs continue to be used for the Project for which the grant funds were awarded; and (2) the Project is a"qualified low-income housing project" under section 42 of the Internal Revenue Code of 1986, as amended. Notwithstanding the expiration of Grant Nos. SG007-12I, SG007-i43 and SG009-079, the City will submit the annual certification reports durir�g the initial "compliance period" and any "extended use period," or until such iime as the Council terminates this annual reporting requirement by written notice to the City. (d) The grant funds made available to the City and disbursed to the Project owner by the City in the form of Ioans may be uscd only for the grant-eligzble activities and Project components far which the City was awarded ttte �-ant funds. For the purposes of this Agreement, the term "Project owner" means the current owner of the Project and any Project owner successor(s). (e) The grant fitnds made available to the City and disbursed to the Project owner in the form of loans shall not be used 6y the City, the Project owner or others to sapplant or replace: (1} gra�nt or loan funds obtained for the Project from other sources; or (2) City contributions to the Praject, including financial assistance, real property or other resources of the City. (fl By executing this Agreement, the City: (1) acknowledges that the Council expects the loans will be repaid so the grant funds may be used to help fund other activities consistent with the reyuirements of the Metropolitan Livable Communities Act; (2) covenants, represents and warrants to the Council that the City's loans to the Prolect owner meet all applicable low- income housing t� credit prograzn requirements under Section 42 of the Internal Revenue Code of 1986, as amended (the "Code"), and the low-income housing 1:� credit program administered by the Minnesoia Housing Finance Agency; and (3} a�-ees to adrninister its Page 2 of 3 Pages