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rented to seniors with incomes no greater than 80% of AMI, with one (1) unit dedicated as an unrestricted manager's unit. Rent affordability standards are established as no more than one-twelfth of thirty percent of the maximum annual household income adjusted for family size appropriate for the unit. • Sets the term of the agreement for a period of 55 years and, within that, the HOME Program affordability requirements for a period of 20 years. • Establishes the City's preference criteria in leasing of the project. • Establishes property management and maintenance expectations for the project and allows the City the right to replace a management agent in the case of a default of those management responsibilities. • Describes ongoing monitoring, tenant recertification and reporting requirements for the project, including the HOME Program requirements. Ground Lease: • Sets forth the terms of long term leasehold between the City (Lessor) and the Partnership project owners (Lessee) as described in the DDLA. • The term of the lease is extended for a period of 75 years to extend through the term of the initial permanent loan financing for the project and, per lender requirements, provides extended time to allow for project refinancing. • Requires the same affordability and use restrictions described in the Regulatory Agreement. • Establishes a ground rent in the nominal amount of $1 per year subject to the project providing the affordability and rent restrictions described in the agreement. Staff now recommends that City Council authorize execution of the agreements attached to the Resolution, with the final forms to be subsequently approved by the City Manager and City Attorney, and authorize the City Manager to take all steps and execute all of the necessary documents necessary to carry out the transactions. Once executed, the portion of the DDLA relating to Phase 1 will terminate. In accordance with the Kottinger Gardens development timeline, the closing of construction financing is targeted to occur on March 10. Submitted by: FisReview: Approve by: ,n_:/)A---- 4w Brian Dolan Tina Olson Nelson Fialho Assistant City Manager Director of Finance City Manager Attachments: 1. Resolution authorizing City Manager to execute Loan Documents for Kottinger Gardens, Phase 1 Page 4 of 4