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4/4Ei.V4/, LUV�S 1V11T1I1�S�Ta 5T&LUi�S 2008 Mimnesota Statutes 474A.047 ItESIDENTIAL 17ENTAL B�NDS; LIMITATIONS. Yage 1 Ot Z Attachment A Sut�division 1. �ligibilit�l. (a) An. i.ssuer may only use the proceeds from reside��tia] rental bands if the proposed project meets tl�e foliowing requirements: (1} t�le proposed residential rerltal prajecC nleets the rec�uirements ofsection 142(d} of lhe Intenlal �even��e Code regarding the incomes of �l�e occupants o£the fTOUSing; and (2) the ma.ximtE��1 rent for at least 20 percent of the units in the propasec3 residentiai. rent�l projcct do not exceed the area fair market renf or exception fair �narket rents for existing housiilg, if applicable, as established by tlle federal Departrnent of Housing and Urban Develapment. The rental rates of units in a residential rental project for ��hich project-based federal assistance payinents are made are deemed to be �vithin the rent lim.i�ations of this clause. (U} Tl�e proceeds irom residential rental b�nds inay �e �fset� for a prajeet for which project-based federal rental assistance payme��ts are ma.de aniy �f: (1) il�e owner of tl�e project enters rnto a binding agreement with ihe Iirtl�lesota Housing �'ina.nce Agency ulider which the owner is obligated to extcnd any existing ]o�v- incame affordability cestrict.ions and any contraet or agreement for rental assistance �aayme��ts for tl�e �naxiintun ter7il permittec�, includi.i�g any rene��als thereof; and (2} t��e Mulnes�ta Housing Finance Agency certifes that project reserves will be maiiltained at closin� of fihe bond issue and budgeted in futut•e years at the lesscr of: (i) t�ie levei. dESCribed i1� Mirulesata Rti��es, part 4900.0010; sub��art 7, item A, subitem (2}, effective IVjay 1, 1997; ar {ii) the level of project reserves available priar ia the bond issue, provided that addit�i�onal moi�ey is avail.able to acco�nplish repairs and re�lacernen.ts nEed�c� at the tiine af bond� issue. SuUd. 2. 15-}�ear agreennent. Prior to the issuance of resi�dentia..l r�ntal bonds, the developer of �he project %r which the bond proceeds will be uscd ii�us�t enl�er i��ro a 15- year ag�-ec�n�nt wil1� the issuer that specifies the it�aximum rental rat�s of the rent- restricted �i�l�ts ii1 tl�e project aild t31e income le�vels of the reside��Cs of�h� project occttpying i�7con�.�-rest�-icted t��lits. Such renta-1 r�tes and incorr�e leveIs �nt�st be 4vithin tl�e limiCatio�ls �stablis]Zed Lu�der subdivi.sion �. The de�eloper nl�is�t annually certify to the issuer over the te�-m of the a.greement that the ren.tal rates for the rent-restric€ed tin.its are �vithin the li�r�ita�tions urlder s�[bdivisioi� 7, The issuer rn.ay request individtiial certification of th.e income of resideclts o£the incoiT�e-restricted units. T11e com��zissioner nlay �,equest Ii�m the iss�ier a copy �f the a»i�ual certificatioii prepared by tlie develo�er. The commissio�ler n�a� rec��iire tl�e issue�- to request individuai certificatior� of all residents of tlle income-restricted tinits. Stibt3. 3. Pen�ity. Th.e issuer shal.l monitor project camp�iance �vitll. tl�e rer�ta.l i-atc a�7c� i.ncome level requircmeiits un.der subdivision 1, The issrier may issue an order of l�ttps://wr��va•evisor.leg.state.mn.iislsiatutes/?id=474A.Q47 2/2/2009