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<br /> 3. The loan proceeds may be used only for actual costs for labor and materials,
<br /> which shall be spent or obligated by Owners to bring the developments into
<br /> compliance with the Housing Quality Standards as established by the
<br /> Department of Housing and Urban Development, the International Property
<br /> Maintenance Code, and applicable City building and housing codes. The loan
<br /> proceeds shall be used as described in Owners' proposal dated November
<br /> 2008; specifically, for eligible development costs for the residential rental
<br /> properties located at 4005 Camelot Drive and 3597 North Charles Street, ',
<br /> Decatur, Illinois. ',
<br /> 4. Owners agree to commit additional sources of funding for the project, and shall '
<br /> submit sufficient descriptions of same to allow City to confirm the availability
<br /> of said additional sources of funding, prior to City authorizing release of the ��
<br /> loan proceeds. Owners' Project Budget shall include at a minimum: $40,000 in i
<br /> Acquisition Costs; $2,554,742 in Construction Costs; $20,000 in Performance �,
<br /> Bond; $127,737 for contingency; $251,730 for professional fees (architectural I
<br /> design, architectural supervision, legal fees, engineering fees, survey, appraisal,
<br /> environmental report, soil testing, and land disturbance permit); $10,000 for
<br /> title insurance, construction escrow, and recording fees; $214,079 for soft
<br /> costs (IHDA fees, taxes, real estate and insurance escrow, rent reserve,
<br /> operating reserve, and soft cost contingency); $257,463 for developer's fee;
<br /> $64,366 for consulting fee; and $80,000 for appliance and furnishings.
<br /> 5. Owners shall neither expend nor obligate funds under this agreement until a
<br /> written Notice to Proceed is issued by the Economic and Urban Development
<br /> Department of the City of Decatur. The Economic and Urban Development
<br /> Department shall issue a Notice to Proceed upon sufficient demonstration by
<br /> Owner of all of the following conditions: 1) completion of environmental
<br /> review requirements as required by HUD, 2) confirmation of additional
<br /> funding sources and layering subsidy approval, and 3) receipt by City of an
<br /> updated title insurance policy naming the City of Decatur as additional insured.
<br /> 6. City shall have no obligation to reimburse Owners for expenditures made
<br /> pursuant to this Agreement, unless said expenditures shall have been incurred
<br /> within one year from the date of the Notice to Proceed. During the
<br /> construction, and initial occupancy phases, Owners shall provide City written
<br /> monthly reports, detailing construction progress, amounts expended, and any
<br /> other matters as may from time to time be reasonably required by City.
<br /> 7. Owners have identified the following schedule for the Supportive Housing
<br /> project:
<br /> March 1. 2009-lnitial Closing
<br /> March 1, 2009-Potential Construction Start Date
<br /> September 1, 2009-Construction Finish Date
<br /> September 1, 2009-Rent Start
<br /> November 1, 2009-Full Occupancy
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