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� p.. ��.��:�� :��- C,"��xt��1,'��"� ��'��;�°�� loans #o the Project owner consistent with fedcral and state low-income housing tax credit program requirements. (g} The City wiil, at its own expense, use diIigent efforts to recover loan proceeds: (1} when the Praject owner becomes obligated to repay Ehe City's loans or defaults on the City's laans; (2) when the initial thirty-year "compEiance period" expires, nnless the Cauncil abrees in writing that the City may make the grant funds available as a loan to the Project owner for an "extended use period"; or (3) if noncompliance with low-incorne hausing tax credit pro�;ratrt requirements or some other event triggers the Project owner's repayment ob(igations under its loan agreements with the City. The City must repay to the Council all loan prepayments or repayment amounts the City receivcs from the Project owner. The City shall not be obligated to repay the grant funds to the Councii except to the extent the Project owner repays its loans to the City, provided the City has exercised the reasona6le degree of diligence and used administrative and legal remedies a reasonable and prudent public housing agency would use to obtain payment on a Ioan, taking into consideration (if applicabie) the subordinated nature of the loans. At its discretion, the Council may: (1) permit the City to use the loan repayments from the Project owner to continue supporting affordable housing components of the Project; or {2) require tYte City to remit the grant funds to the Council. (h) If the City eatns any interest or other income from its loan agreements with the Froject owner, the City will: (1) use the interest earnings or income only for the purpases of implementing the Project activities for which the grants were awarded; or (2) remit the interest earnings or income to the Council. The City is not ob[igated to earn any interest or other income from its loan agreements with the Project owner, except ta the extent rcquired by any applicable law. 3. The individuaIs signing this Agreement on behalf of the City and on behalf of the Council represent and warrant on the City's and the Council's behalf respectively that the individuals are duly authorized to execute this Agreement on the City's and the Council's 6ehalf respectively and that this Agreement constiiutes the City's and the Council's valid, binding and enforceable agreements. IN WITNESS WHEREOF, the City and the Council have caused this Agreement to be execuled by their duly authorized representatives. This A�reement is effective on the date of final execution by the Council. CYTY OF ROSEVILLE By: . Date: By: _ Date: Dan Roe, Mayor City Manager ��.�s�y�Gt.�� cFi_oh�s Page 3 of 3 Pages METROPOLITAN COUNCIL By: Date: Guy Peterson, Director Community Development �