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and repayment of the Evans Park Loan shall be provided for by Evans Park entering into a loan agreement with respect to the Facilities (the "Evans Park Loan Agreement"). Under the Evans Park Loan Agreement, Evans Park will agree to make or cause to be made payments sufficient to provide for payment in full of all principal of, premium, if any, and interest on the Evans Park Loan when due. Additional security may be provided for the Bonds as determined by the original purchasers of the Bonds, including loan agreements and security agreements from the other Borrowers. Of the $15,000,000 aggregate principal amount of Bonds to be issued under the Joint Powers Agreement, the amount of the Evans Park Loan is to be not in excess of $9,000,000. This Housing Program consists, in part, of the refinancing of taxable mortgage indebtedness currently outstanding with respect to a portion of the Facilities and the rehabilitation, renovation, improvement and equipping of such Facilities. With respect to each aspect of this Program involving the refinancing of taxable indebtedness of Evans Park, Evans Park will undertake at least the minimum amount of rehabilitation with respect to such aspect of the Program as is required under Section 462C.05, subd. 1. It is anticipated that the timetable for the financing will be carried out on an expedited basis and be concluded by not later than the end of the current calendar year. This Program is contemplated to be undertaken pursuant to Section 462C.05, subds. 4 and 7, of the Act and, therefore, it is contemplated that there shall be no specific limitation on the gross income of the occupants. Program requirements as to the Facilities are to be monitored by the City or private parties, as will be provided in the applicable agreements to be entered into in connection with the issuance of the Bonds. 3.-: -Need for the Program. This Program-is'needed as a means of implementing the City's stated housing goals, as provided in the Act and the City's Comprehensive Plan. The Comprehensive Plan recognizes and is consistent with a goal of maintaining and improving the number of units of affordable housing for elderly persons and families in the City. Finally, the City believes that accomplishment of its housing goals should occur through private development, supported by government financing programs. By virtue of issuing the Bonds and providing financing and refinancing for the Facilities, the City will be assisting in the improvement of and the reduction of the overall costs of operating the Facilities. 4. Description Of Facilities. The Facilities which are to be the subject of the proposed financing consist of the existing 36-unit rental housing facility for the elderly located at 300 Evans Avenue in the City (commonly known as "Evans Park"), together with an approximately 60-unit assisted living facility to be developed and to be located at Joplin Street and U.S. Highway 10, in the City (all of such facilities being referred to in the aggregate as the "Facilities"). The existing Facilities are currently owned by, and the new Facilities will be owned by, Evans Park, Inc., a Minnesota nonprofit corporation (referred to herein as the "Borrower"). It is anticipated that the proceeds of the Bonds may also be used, in part, to pay for certain costs of issuance of the Bonds, to the extent such costs are reasonable and are within an amount equal to 2.00% of the proceeds of the Bonds, and to fund necessary reserves, including a debt service reserve fund. Issuance costs in excess of E-2