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Resolution through February I 1, 1998; and WHEREAS, the Housing Project has received an award of 1998 Private Activity Bond Allocation from the Virginia Small Business Financing Authority ("VSBFA") that is effective through May 20, 1998, and the Developer has applied to the Authority requesting that the Authority conduct a new public hearing on the Housing Project and that the Inducement Resolution be extended through midnight on March 2, 1999, and, except as so extended and amended, otherwise ratified and confirmed by the Authority; and WHEREAS, a public hearing was held before the Commissioners of the Authority on March 2, 1998, at I2:00 p.m., to consider the issuance by the Authority of the Bonds, as hereinafter defined, in an aggregate amount not to exceed $6,050,000 to provide funds for a loan from the Authority to the Developer (the "Loan") to provide financing for the Housing Project; notice of said hearing having been published on Tuesday, February 17, 1998 and Tuesday, February 24, 1998, in The Virginian-Pilot, a newspaper having a general circulation in the City of Portsmouth, Virginia, in order to comply with the public approval provisions of Section 147(f) of the United States Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"), and Section 15.1-1378.1 of the Code of Virginia, as amended (the "Virginia Code"), with respect to the proposed issuance by the Authority of its Bonds to provide funds for the Loan; and WHEREAS, and the Authority believes that the Developer's request should be granted: NOW, THEREFORE, IT IS HEREBY RESOLVED THAT: The acquisition and rehabilitation of the Housing Project will provide housing for persons of low or moderate income as defined by Section 8 of the U.S Housing Act of 1937. as amended, and thereby promote public purposes for which the Authority was established. In order to induce the Developer to acquire and develop the Housing Project, the Authority hereby agrees to use its best efforts to assist the Developer in obtainirig the Loan in an amount not to exceed $6,050,000 to assist in financing the acquisition and rehabilitation of the Housing Project, subject to approval by Portsmouth City Council of (a) the Authority's making the Loan, as the Housing Project will be located outside any of the areas covered by the Authority's redevelopment and conservation plans, and (b) the issuance by the Authority of its Bonds in an aggregate amount not to exceed $6,050,000 (the "Bonds"), in order to provide funds for the Loan. The Authority has found that the issuance of the Bonds to provide funds for the Loan will assist in alleviating the existing shortage of sanitary and safe residential housing affordable by those with low and moderate income. The Authority finds that in order to preserve a desirable economic mix and to stabilize the Housing Project, at least 40% of the units in the Housing Project must be rented to or held