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HomeMy WebLinkAbout2008-004 BEFORE THE HOUSING FINANCE AUTHORITY ST. LUCIE COUNTY, FLORIDA RESOLUTION NO. 08-004 A RESOLUTION ADOPTING REVISED GUIDELINES AND PROCEDURES FOR THE ISSUANCE OF MUL TI- FAMILY REVENUE BONDS IN ST. LUCIE COUNTY WHEREAS, the Housing Finance Authority has made the following determinations: 1. Part IV, Chapter 159, Florida Statutes authorizes this Authority to issue multi- family revenue bonds for qualified multi-family housing rental projects. 2. Part IV, Chapter 159, Florida Statutes finds there is a shortage available at prices or rentals which persons or families can afford and a shortage of capital for investment in such house. 3. Various federal statutes, including the Federal Tax Reform Act of 1984, impose further restrictions on the issuance of multi-family revenue bonds that this Authority may issue. 4. On March 6, 2008, this Authority held a public hearing on the proposal to revise the guidelines and procedures for the issuance of multi-family tax exempt bonds in St. Lucie County, after posting notice. NOW, THEREFORE, BE IT RESOLVED, by the Sf. Lucie County Housing Finance Authority: A. The Sf. Lucie County Housing Finance Authority Revised Guidelines and Procedures for the Issuance of Multi-Family Tax Exempt Bonds attached to this resolution be, and they are hereby adopted. B. This resolution shall be effective on the date of adoption. After motion and second the vote on this resolution was as follows: Chairman Robert Davis Vice Chair Tricia Swift-Pollard Jill Olen, Secretary Pieter Stryker Kimberly Williams AYE AYE AYE ABSENT ABSENT PASSED AND DULY ADOPTED this 6th day of March, 2008. J/ ST. LUCIE COUNTY ." HOUSING FINANCE AUTHORITY ~ /. c I ~'... CHAIRMA ... .. .. · WITNESS: APPROVED AS TO LEGAL FORM AND CORRECTNESS: lid- ASSISTANT COUNTY ATTORNEY Multi-Family Tax Exempt Financing The St. Lucie County Housing Finance Authority (SLCHF A) will accept applications to issue multifamily mortgage revenue bonds to provide for the construction, rehab or permanent financing of rental housing units that meet certain requirements under an open cycle. Such transactions may include private activity bonds, refinancings of previously issued bonds or 501 (c)(3) bonds. Developers interested in submitting an application should send the 10 applications to the Authority's staff shown below: St. Lucie County BOCC County Attorney's Office 2300 Virginia Avenue Fort Pierce, FL 34982 Tel. 772-462-1441 Fax. 772-462-1440 The SLCHFA will consider for award only those developments that adhere strictly to the following requirements. Development Requirements 1. The development must, at a minimum, meet one of the Federally mandated set aside requirements below: a. Forty percent (40%) or more of the development units must be occupied by person(s) having an income of sixty percent (60%) or less of the area median gross income, whose income must be adjusted according to family size; or b. Twenty percent (20%) or more of the development units must be occupied by person(s) having an incomeoffifty percent (50%) or less of the area median gross income, whose income must be adjusted according to family size. c. The remainder of the units must be subject to income requirements that satisfy State law. State law requires: at least 60% be "Eligible Tenants" which are persons 65 and older or whose income does not exceed 150% of median income. The area median income will be determined by the U.S. Treasury Department. The set-aside requirements must be met at all times during the "qualified project period" (the period in which restrictions must G:\ATTY\Forms\HFA Procedures.wpd Page 1 of 19 remain). This would require that tenants be re-certified on an annual basis in accordance with applicable State and Federal law. A Land Use Restriction or other covenant encumbering the development will be recorded in the public records a first position to guaranty such requirement is in effect for the development. 2. The development must remain a qualified rental project for at least the minimum amount of time necessary to satisfy Federal law. . 3. The project must comply with all Federal, State and local fair housing laws and ordinances. 4. Children of all ages must be allowed to live in the project. A development that is entirely for the elderly and/or handicapped is exempt from this requirement. " Applicants should carefully study the IRS rules that govern rental developments financed with tax-exempt bonds. The IRS performs compliance audits, and the SLCHFA requires compliance monitoring on a monthly basis, at developer's expense. Financing Mechanisms The SLCHFA may allow a variety of bond structures, including but not limited to Letters of Credit, Bond Insurance, Surety Bonds, Mortgage Insurance, and Guarantees. All financing structures are subject to review and approval by the Authority, its Counsel, Bond Counsel and Financial Advisor. Processing Initial Application - The Application is attached as Attachment A hereto and includes a cover application form, Certificate of Understanding, Exhibits Required for Underwriting Applications (including Appendix A and Appendix B regarding budget criteria). When an application cycle is needed, applications are often due in August-October time period, so a ranking can be made, TEFRA hearings conducted and ready to apply for allocation on January 1 of each year. Preliminary Development Selection - Applications will be reviewed by the SLCHFA professional team and recommendations, if any, ,will be submitted to the SLCHFA Board members at its scheduled meeting on , The SLCHFA may chose to finance one or more developments, or may decide not to request any private activity bond allocation for multi-family developments. In the event that the SLCHFA decides to sel~ct from among two or more developments, ability to proceed will be a threshold factor. The SLCHF A's determination of ability to proceed generally consists two elements: (a) G:\ATTY\Forms\HFA Procedures.wpd Page 2 of 19 project development readiness, i.e. land use, zoning, permitting, concurrency, availability of utilities, platting and site plan approval, and (2) financing feasibility (as determined by the SLCHFA professional team). Submission for Private Activity Cap -In the event that the SLCHFA agrees to submit for private activity bond allocation for a specific development, the project owner/developer must submit a signed agreement evidencing their consent to pay all transaction costs, Inducement - Only project development costs incurred 60 days prior to the date of an Inducement Resolution passed by the SLCHFA may be financed, with minor exceptions under Federal tax regulations. Inducement Resolutions will be scheduled for consideration by the SLCHFA at its meeting. The Inducement shall not be deemed to be a commitment by the SLCHFA to fund the development. TEFRA Hearing A TEFRA Public Hearing must be scheduled in accordance with Federal Law. The hearing must be advertised at least two (2) weeks (14 days) in advance. Prior to such hearing, the SLCHFA must receive the following (which information is also required in this Application process): 1. Development Name and Address 2. Site Plan 3. Market/Feasibility Study 4. Information on the Developer 5. Evidence of Ownership or Site Control 6. Renderings of the Project Development 7. Ability to Proceed 8. Evidence of Zoning, Permitting, Utilities and Concurrency This hearing will be held by the SLCHFA and after the hearing, the bonds must be approved by the Board of County Commissioners, St. Lucie County, Florida. Fees The following are non-negotiable fees of the SLCHFA(there being no discounts for large or small transactions): Inducement Fee Authority Fee Annual SLCHFA Fee: $ 1,500 Greater of .25% or $5,000 0.125% of outstanding bonds, plus professional fees and expenses related to the Issue and compliance monitoring fees. This fee is paid annually in arrears. G:\ATTY\Forms\HFA Procedures.wpd Page 3 of 19 Prior to submission to the State Division of Bond Finance, the owner/developer shall have delivered to SLCHFA its written agreement to pay the deposits and fees and costs of the SLCHFA professional team for the subject transaction. Further, a document processing deposit of $40,000 is due upon reservation of private activity bond allocation. This deposit will be a credit against the SLCHFA Fee at closing and shall be used to cover SLCHFA out- of-pocket expenses prior to closing the bonds including the time and expense ofSLCHFA's bond team (including Bond Counsel, Issuer Counsel, Underwriters and Underwriter's Counsel). If the transaction does not take place, the deposit will be returned less fees and costs actually incurred by the Issuer's bond team. G:\ATTY\Forms\HFA Procedures.wpd Page 4 of 19 ATTACHMENT A THE APPLICATION HOUSING FINANCE AUTHORITY OF ST. LUCIE COUNTY Multi-Family Rental Apartments Bond Program Application A. DEVELOPER INFORMATION 1. Development Owner's Name and Development Name: (as it should appear on Resolution) Address: Developer General Company Name: Contact Person: Phone Number: Development Name: Development Add ress: Fax No. B. PROJECT INFORMATION 1. Project Name 2. Location & Approximate Acreage: (name incorporated area if applicable); Strap # of the actual parcel of real property that the proposed Project is to be constructed on and if the real property is part of a larger parcel of property, please clearly note that such is the case: 3. Describe Neighborhood Characteristics (residential, commercial, etc.) and land usage of all property bordering project site: G:\ATTY\Forms\HFA Procedures.wpd Page 5 of 19 4. Evidence of Approval of Site Plan and/or Plat, Land Use, Zoning, Permitting, Concurrency, and Availability of Utilities: 5. Evidence ofTen (10) Set Plan Review Approval: 6. Evidence of Site Acquisition, Ownership or Legal Control of Site: 7. Developer Construction Timetable and Evidence Construction will commence prior to ,200_: 8. Is this project designated to serve a specific target group (i.e. elderly, handicapped)? 0 Yes 0 No If yes, please specify: .9. Describe project amenitites: 10. Will any units be accessible to the handicapped? o Yes 0 No If yes, please specify: 11. Type of Building: 0 Elevator 0 Walkup 0 Townhouse o Detached 0 Semi-detached 12. Number of stories: Units per building: 13. Type of projects: 0 New construction o Rehabilitation 14. Does the current land use and zoning permit the proposed development at the proposed density? 0 Yes 0 No If no, explain: 15. Scope of Work: G:\ATTY\Forms\HFA Procedures.wpd Page 6 of 19 C. FINANCING INFORMATION 1. Please Describe the Proposed Credit Enhancer (or Bond Purchaser). Please Provide the Name of the Lender, Address, Phone Number and Contact Person: Name of Credit Enhancer or Bond Purchaser: Address: Phone Number: Contact Name: Fax Number Fax Number: 2. Percentage of Low Income Set Aside: %at % of Median Income 3. Amount of Requested Financing: $ applicable) . (include breakdown of funds, if 4. Sources Bond Issues Developer Contribution Others* Amount $ Status of Financing Sources Total Funding Sources $ *Specify 5. Bonds Financing Information: Please describe the proposed bond structure: Requested issue size: Final Maturity: Credit enhancement, if applicable: Has it been finalized? Contact person from credit enhancement institution: Variable Rate: DYes D No Describe: G:\ATTY\Forms\HFA Procedures.wpd Page 7 of 19 Fixed Rate: 0 Yes 0 No 11. See Attached "Exhibits Required for Underwriting Applications" and attach information to complete the same. D. OTHER INFORMATION 1. Do you presently have an application for this project submitted elsewhere or has this project been denied financing elsewhere? 2. How many and what type of projects have you completed in the St. Lucie County, Florida area? 3. Proposed Architect: Firm: Contact Person: Phone 4. Proposed Managing Agent: Firm: Contact Person: Phone 5. Proposed Contractor: Firm: Contact Person: Phone 6. Proposed Developer's Attorney: Firm: Contact Person: Phone~ 7. Proposed Underwriter: Firm: Contact Person: Phone G:\ATlY\Forms\HFA Procedures.wpd Page 8 of 19 EXHIBITS REQUIRED FOR UNDERWRITING APPLICATIONS UNDER FINANCE AUTHORITY OF ST. LUCIE COUNTY MULTI-FAMILY PROGRAM Initial Application 1. Location map and aerial photo identifying site. 2. Evidence of site legal control and/or ownership. 3. Information on Developer and principals including list of: a. Existing rental developments managed or owned by borrowers and b, A chart of developments in the Pipeline, Showing, Units, Location, Status (Applied For, Funded, Under Construction, Leasing Up) and Projected Completion Date 4. Resumes and experience of borrower and general contractor. 5. Preliminary plans and specifications, and attach project renderings. 6. Evidence of Site Plan, Plat and Zoning, and Ten (10) Set Plan Review Approval. 7. Identification of and resume of managing agent (include name, address, telephone, number and qualification of the management entity, and include developments and dates of other property managed by managing agent, and indicate whether tax- credit and/or affordable housing developments). Indicate whether the development will be managed on-site or off-site (and if off-site, indicate the location) 8. Provide complete list of social services to be provided at the development. 9. Outline of terms of financing requested and Commitment from Credit Enhancer. 10. Marketing/Feasibility Study: Market data supporting demand for the proposed development including information or competing tax-credit and market rate developments. 11. Evidence of Ability to Commence Construction of Development on or before 12. Attach a Proforma Operating Budget. The operating pro forma should represent the income and expenses after rent stabilization has been achieved, Operating pro forma should be projected out for at least ten years. G:\ATTY\Forms\HFA Procedures.wpd Page 9 of 19 13. Attach a Proforma Project Development Budget. The project development budget should include all development costs associated with the development of the project, regardless of the funding source. 14. Describe whether development will provide any special needs, military, senior or other types of housing. 15. Include a schedule of sources and uses of funds during construction and the permanent phase. G:\ATTY\Forms\HFA Procedures.wpd Page 10 of 19 Certificate of Understanding I, the undersigned, representing, have read and understand the Federal requirements and the SLCHFAprogram policies and requirements set forth in this Application, both as applied to Multi-Family Mortgage Revenue Bonds, and the undersigned hereby certifies its Application adheres to said requirements. I understand the application fee is non-refundable regardless of whether or not the development is selected for financing by the SLCHFA, or actually financed and further have read and understand all other fees and charges of the SLCHFA. I also understand that Inducement of the Development or the holding of a TEFRA hearing is not a commitment to the finance of the development. I understand that more developments may be submitted for financing than funds available and that the SLCHFA reserves the right to select and/or rank developments in whatever manner it sees fit. I understand that the SLCHFA reserves the right to accept or reject any or all proposals in its sole discretion, and may allocate some or all of its private activity cap allocation to Single Family Programs..! understand that the SLCHFA mayor may not receive private activity cap allocations. Signature Name (Print) Name Applicant G:\ATlY\Forms\HFA Procedures.wpd Page 11 of 19 ST. LUCIE COUNTY HOUSING FINANCE AUTHORITY GUIDELINES FOR BOND ISSUES FOR MULTI-FAMILY PROJECTS The general purpose of these guidelines is to assist the St. Lucie County Housing Finance Authority (herein SLCHFA) and the Applicant for proposed financing of a bond issue for a multi-family project. These guidelines assist the SLCHFA in (1) having a reasonably clear, concise and consistent approach to all requests for financing, refinancing and restructuring of outstanding bond issues and (2) exercising due diligence in securing, reviewing and disseminating information (sometimes through disclosure. in a public marketing offering document). These guidelines assist the Applicant by letting the Applicant know what is required for consideration of its proposed financing or refinancing and, assuming that the information provided by the Applicant is acceptable to the SLCHFA, and conditions imposed by the SLCHFA are met by the Applicant, giving the Applicant an expeditious response from the SLCHFA as to the proposed financing, refinancing or restructuring. The SLHFA reserves the right to impose such additional requirements as it deems appropriate and to waive such requirements as it deems unnecessary or inapplicable. These guidelines shall in no way restrict the SLCHFA in the performance of its duties. Any request to waive a requirement by the Applicant must be made to the Authority at the time of Application. Additionally, all bonds, when required by federal tax law, may be subject to review by the Board of County Commissioners (the BCC), Bond Counsel to the BCC, the Financial Advisor to the BCC ,and the BCC Finance Committee and must be approved by the BCC. Approval by the SLCHFA in no way assures approval by the BCC. TheSLCHFA advises the Applicant that the BCC may impose additional fees and/or requirements. The SLCHFA advises the Applicant to expect the process of approval by the SLCHFA and the BCC to take up to six months. The Applicant will be required to appear at the SLCHFA meeting when the Inducement Resolution is considered, at the BCC Finance Committee meeting and the BCC meeting at which the request for approval is heard. The SLCHFA financing team which includes Bond Counsel, Underwriters, Financial Advisor and Trustee (all of whom have been selected through an RFP process) will be used on all bond issues, either publicly or privately placed, and all amendments to or restructures of outstanding bond issues, and their reasonable fees and expenses shall be assumed and paid by the Applicant. The documents will provide that other parties and their successors, such as remarketing agent, trustee and paying agency will be appointed y the Authority. G:\ATTY\Forms\HFA Procedures.wpd Page 12 of 19 The Authority will require that, through a Land Use Restriction Agreement all applicable federal project restrictions be in force for the periods required by federal tax law, and that the Authority's restrictions (local government) be in force throughout the life of the bond issue. Whenever a bond issue is refunded or restructured or bond maturities are extended, the Authority will require an appropriate extension of the federal "qualified project period", generally for at least 5 years from the date of restructuring or refunding. The Authority shall require as part of the financing and any refinancing suitable independent compliance monitoring and monthly compliance reporting to the Authority during the entire remaining term of the Land Use Restriction Agreement or Regulatory Agreement. The selection of the Compliance Monitor will be approved by the Authority and the cost of compliance monitoring and reporting shall be borne by the Developer. 1. The Application for Inducement A. Project Information I. Name and address of Project. 2. Date of completion. 3. Number of units by bedroom type and total. 4. Current rents (for existing projects) or estimated rent (for new projects). 5. Current occupancy (monthly for last 12 months) (for existing projects). 6. Current physical condition including deferred maintenance (for existing projects). B. Current or Projected Financial Status I. Original principal amount of the issue; outstanding unpaid principal amount currently remaining (for refinancings or restructurings) . 2. Current, or estimated for refinancings, interest rate of the bonds and interest payment dates. C. For Refinancings I. List any defaults on the Mortgage Documents. 2. List any defaults on the Bonds and any restructuring of previously defaulted principal and interest payments. 3. List any draws on reserve funds, the balance of reserve funds and amount of any unpaid and required replenishment. 4. List any restructuring of a reserve account or substitution of a credit enhancement or security device. 5. List any unpaid taxes and insurance. 6. Detail any expected payment deficiencies. G:\ATIY\Forms\HFA Procedures.wpd Page 13 of 19 7. Provide last three years operating history (audits if available). 8. Certificate of Compliance with Land Use Restriction Agreement. 9. Certificate of No-Litigation. D. Proposed Restructuring or Refunding 1. Provide a short summary outline of the proposed refunding/restructuring stating the purpose and or reason, giving the credit enhancement, and if any, change in ownership or management, term of the bonds if extended, proposed increase in deed restrictions, amount of refunding bonds and any write down of debt. 2. A description and discussion of any requirements contained In these Guidelines which the Applicant wishes to have waived. E. Proposed New Issue 1. Provide feasibility analysis and pro forma. 2. Financial statements. 3. All information as required by A. and B. above, as applicable. 4. Proposed source and use of funds. II. Post Inducement Comprehensive Application Provide a more detailed description of the refunding or restructuring including the following: 1. Any reduction in future principal and interest payments; 2. Debt service schedules for both existing debt service and restructured debt service; 3. A statement ofthe estimated costs of the restructuring and the source of payment therefore; 4. Any net proceeds arising from or in connection with the restructuring for such purposes as improvements, reparations or repairs to the Project, or as a cash contingency fund, or as a cash payment to the Applicant or related persons or entities; and 5. The Applicant must identify the amount of the estimated annual gross revenues from the Project which are necessary in order to be able to pay the restructured debt service, along with a brief discussion of how the proposed restructuring would assist in achieving those revenues, particularly in comparison to existing debt service. 6. The Applicant must submit a three-year pro forma which shows projected income and expenses and net operating income or loss for the Project for the first three complete years after the proposed restructuring. G:\ATTY\Forl1ls\HFA Procedures.wpd Page 14 of 19 7. The Applicant must identify the expected rating on the. bonds and provide evidence of, including the terms of, any credit enhancement that will be a part of the refinancing, whether such credit enhancement is in the form of a letter of credit, mortgage insurance, bond insurance, personal guarantee, or otherwise. Bonds not rated in one of the three highest categories by Standard & Poor's or Moody's Investors Service must meet the Authority's criteria for unrated bonds. 8. The Applicant must state the current length of the Land Use Restriction Agreement, the income set-aside requirements and the total number of set-aside units. 9. The Applicantmust submit an MAl appraisal, a structural engineer's report and an environmental audit (Phase I minimum), all of which must be current within six months. 10. The Applicant must submit additional supporting information including without limitation (1) monthly occupancy rates for the last 12 months (2) a current rent roll, (3) evidence that ad valorem taxes are current, (4) recent or proposed events occurring in and about the Project (i.e. military base expansions orconstrictions, major new roads, new office complexes or shopping centers or schools, etc.), which are material to. the financial operation of the project and (5) any additional information requested by the Authority. 11. If a change of ownership in the project is contemplated prior to completion of the refunding, Applicant must submit a valid binding Purchase and Sale. Agreement without conditions (unless such conditions are approved by the Authority) with the exception that the Agreement may be conditioned on obtaining bond financing. III. Criteria for Bonds Without Credit Enhancement Generally bonds sold by the SLCHFA must have a rating in one ofthe three highest categories of a nationally recognized rating agency, based either on credit enhancement or a structured rating. The following guidelines of the SLCHFA apply for the sale or placement of bonds which have no credit enhancement producing such rating; the guidelines do not necessarily represent all items that the SLCHFA will consider and as guidelines, they do not represent binding rules or standards of the SLCHFA; that is, the SLCHFA may require stricter or more lenient standards on a case by case basis, all in accordance with the SLCHFA's purpose to promote affordable housing. G:\ATTY\Forms\HFA Procedures.wpd Page 15 of 19 The Applicant will be responsible for payment of all fees and expenses of the Issue including, but not limited to, the following fees to the SLCHFA on the following schedule: G:\AT1Y\Forms\HFA Procedures.wpd Page 16 of 19 A. Preclosing Fees: 1. Inducement Fee: $1,500 paid prior to the TEFRA Hearing Covers: advertising and legal fees and expenses forTEFRA Hearing. If no TEFRA hearing is required there is no Inducement Fee. 2. Comprehensive Application Fees: The following fees must be received at the time of submission of the Post Inducement Comprehensive Application and prior to any review by the Authority's financing team and drafting of documents by Bond Counsel: a. Authority Fee, non-refundable - Greater of .25% or $5,000 b. $40,000 Professional fee deposit payable to the Authority to be credited to the Applicant at bond closing for the partial payment of fees and expenses of Bond Counsel, Issuer's Counsel and Issuer's Financial Advisor and any professional fees related to County approval. In the event the Issue does not close, the fee~ and expenses of the above-listed professionals will be charged against this amount and the balance, if any, will be refunded to the Applicant. The balance of the fees andexpt3nses of the above professionals will be paid by the Applicant at closing to the Authority or a Cost of Issuance Accountheld by a Trustee for disbursement by the Authority to the applicable professionals. c. The underwriters may collect a deposit for out of pocket expenses (conferenCe calls, travel, etc.) which shall not exceed $3,000 and a deposit of $5,000 for underwriters' counsel. All other fees and expenses of the underwriters shall only be paid upon closing.. d. Fee of independent credit underwriters, if required. Amount to be negotiated. 3. All other closing costs including, but not limited to, printing of bonds, printing of Official Statement, rating agency fees, cash flow verification, mortgage title insurance premium and the fees and expenses of Bond Counsel, Issuer's Counsel, Financial Advisor, and the County or its professionals must be transferred to the Trustee for deposit into the Cost of Issuance Account prior to closing. G:\ATTY\forms\HfA Procedures.wpd Page 17 of 19 B. Post Closing Fees: 1. Annual Authority Fee: 0.125% of outstanding bonds, payable annually. 2. Annual Trustee fee: Amount to be negotiated, paid annually 3. Compliance Monitoring Fee: Amount to be negotiated, paid annually. 4. Professional fees and expenses related to the Issue. V. Timing 1. The Applicant should plan on 120 days of processing time from the date upon which a final commitment is received from a credit enhancer. While the SLCHFA will attempt to expedite the processing of documents, it must be noted that the transaction is subject to review by both the SLCHFA and the BCC. BCC review will include review by the BCC Financial Advisor and Finance Committee. As it often takes at least 60 days to obtain a commitment from a credit enhancer, a developer should approach the SLCHFA at least six months before the anticipated closing date. 2. No review by the BCC or its Finance Committee will be scheduled and no Preliminary Official Statement will be mailed until all parties have agreed that all deal points are final and that there are no outstanding transaction issues to be negotiated among any of the parties. 3. The Preliminary Official Statement must be mailed at least 10 days before pricing for fixed rate debt and 5 days for variable rate debt. 4. The schedule must allow for 2 weeks between pricing the bonds and closing for a fixed rate transaction and 1 day for a variable rate transaction. VI. Indemnification and Other Requirements As a part of the refunding, the Applicant will be required to provide indemnification satisfactory to the Authority, covering the Authority, and its professional services team (and other persons, firms or corporations acting on behalf of the Authority) and St. Lucie County. The Authority and the County will require a standard Section 10b-5 opinion from Underwriter's Counsel and a statement in the Official Statement or other offering G:\ATTY\Forms\HFA Procedures.wpd Page 18 of 19 document that neither the Authority nor the County has reviewed the offering documents for completeness, truthfulness, fairness or accuracy, including but not limited to representations regarding the financial feasibility of the project or the Applicant. VII. Guarantee of Administrative Expenses The SLCHFA will require that the payment of its annual fee, the annual Trustee Fee and the Compliance Monitor Fee will be covered by the credit enhancement device used in connection with the guaranty. of principal and interest on the bonds or through a reserve account. In the event of a FHA Insured issue, these fees should be included within the mortgage payment calculations and covered by the FHA Policy. For privately placed issues, these fees must be covered by the mortgage. The SLCHFA will require that the payment of the Annual SLCHFA fee, the annual Trustee fee and the Compliance Monitor fee be guaranteed by the Developer. These guidelines have been adopted by the Authority at its meeting of March 6, 200S and shall become effective immediately as to any financings, refinancings or restructurings in process and for applications hereafter received. ACKNOWLEDGMENT OF RECEIPT BY APPLICANT The Applicant acknowledges receipt of the foregoing Guidelines and agrees to comply with them. Name of Company By: Signature Printed name: Title: Address: Telephone #: ( ) Date: G:\ATTY\Forms\HFA Procedures.wpd Page 19 of 19