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Item 9b. Sunflower Hill—Financing Page 2 • Change the term of the ground lease from a 75-year term to a 99-year term. The regulatory agreement would also be changed from a 75-year term to a 55-year term.2 The proposed change will make the project more competitive for tax credits. Even with this change, staff is comfortable that the ground lease includes provisions that require "that the Leased Premises shall be used solely for the operation of a multifamily rental supportive housing development in compliance with the requirements set forth herein and in the Regulatory Agreement.... [and lists specific affordability levels for the units]". (See Ground Lease Section 9.8 Affordability and Use Restrictions.) Therefore, at the end of the 55-year term of the regulatory agreement,the 99-year ground lease and the planned unit development (PUD) zoning still require operation of the project as approved and envisioned for affordable housing.3 z Amendments to the term of the ground lease and regulatory agreement would be made throughout those documents, and the other loan documents. In the proposed resolution,the City Council is asked to authorize the City Manager to execute the loan documents, "in substantially in the forms attached and subject to the final form approval of the City Attorney and City Manager." for such edits. 'In all practicality, the buildings and improvements will need rehabilitation long before the end of the 55-year regulatory agreement term, let alone the 99-year ground lease term. At that time, or earlier when tax credit partners change,the Council may be asked to consider additional rehabilitation funding and regulatory extensions.