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.0pt'><o:p></o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><!--[if sup=
portFields]><b><span
style=3D'font-size:12.0pt'><span style=3D'mso-element:field-begin'></span>A=
DVANCE
\d3</span></b><![endif]--><!--[if supportFields]><b><span style=3D'font-siz=
e:
12.0pt'><span style=3D'mso-element:field-end'></span></span></b><![endif]--=
><b><span
style=3D'font-size:12.0pt'>STATE OF MISSISSIPPI<o:p></o:p></span></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:8.0pt'>HALEY BARBOUR, GOVERNOR<o:p></o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b><span
style=3D'font-size:12.0pt'>MISSISSIPPI DEVELOPMENT AUTHORITY<o:p></o:p></sp=
an></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b>Gray Swo=
ope<o:p></o:p></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:8.0pt'>EXECUTIVE DIRECTOR<o:p></o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:8.0pt'><o:p>&nbsp;</o:p></span></p>

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bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&n=
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp=
;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><o:p></o:p></span></u></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b style=3D=
'mso-bidi-font-weight:
normal'><span style=3D'font-size:12.0pt'>Long Term Workforce Housing
Clarification Memorandum<o:p></o:p></span></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b style=3D=
'mso-bidi-font-weight:
normal'><span style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b style=3D=
'mso-bidi-font-weight:
normal'><span style=3D'font-size:12.0pt'>DATE:<span
style=3D'mso-spacerun:yes'>&nbsp; </span>January 7, 2009<o:p></o:p></span><=
/b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b style=3D=
'mso-bidi-font-weight:
normal'><span style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></b></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><b style=3D=
'mso-bidi-font-weight:
normal'><span style=3D'font-size:12.0pt'>SUBJECT:<span
style=3D'mso-spacerun:yes'>&nbsp; </span>Cost of Borrowing <o:p></o:p></spa=
n></b></p>

<p class=3DMsoNormal><u><span style=3D'font-size:12.0pt'><span style=3D'mso=
-tab-count:
1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </spa=
n><span
style=3D'mso-tab-count:11'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb=
sp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><o:p=
></o:p></span></u></p>

<p class=3DMsoNormal><u><span style=3D'font-size:12.0pt'><o:p><span
 style=3D'text-decoration:none'>&nbsp;</span></o:p></span></u></p>

<p class=3DMsoNormal><u><span style=3D'font-size:12.0pt'><o:p><span
 style=3D'text-decoration:none'>&nbsp;</span></o:p></span></u></p>

<p class=3DMsoNormal><u><span style=3D'font-size:12.0pt'><o:p><span
 style=3D'text-decoration:none'>&nbsp;</span></o:p></span></u></p>

<p class=3DMsoNormal style=3D'margin-top:0in;margin-right:0in;margin-bottom=
:10.0pt;
margin-left:0in;text-align:justify;text-indent:0in;line-height:115%;mso-pag=
ination:
widow-orphan;mso-list:l1 level1 lfo20;mso-layout-grid-align:auto;text-autos=
pace:
ideograph-numeric ideograph-other'><![if !supportLists]><b style=3D'mso-bid=
i-font-weight:
normal'><span style=3D'font-size:12.0pt;line-height:115%'><span style=3D'ms=
o-list:
Ignore'>I.<span style=3D'font:7.0pt "Times New Roman"'>&nbsp;&nbsp;&nbsp;&n=
bsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</span></span></span></b><![endif]><b style=3D'mso-bidi-font-weight:normal'=
><span
style=3D'font-size:12.0pt;line-height:115%'>BACKGROUND:</span></b><span
style=3D'font-size:12.0pt;line-height:115%'><span style=3D'mso-tab-count:1'=
>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span><span
style=3D'mso-spacerun:yes'>&nbsp;&nbsp; </span>Under OMB Circulars A-87 (2 =
C.F.R.
Part 225) and A-122 (2 C.F.R. Part 30) and 48 C.F.R. Part 31, costs incurred
for interest on borrowings (however represented) generally are not allowable
costs.<span style=3D'mso-spacerun:yes'>&nbsp; </span><o:p></o:p></span></p>

<p class=3DMsoNormal><b style=3D'mso-bidi-font-weight:normal'><span
style=3D'font-size:12.0pt'>II.<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;&=
nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>GUIDANCE</span></b><span
style=3D'font-size:12.0pt'>:<span style=3D'mso-tab-count:1'>&nbsp; </span> =
The
costs incurred for borrowing, such as interest expense, finance charges,
finance fees, or other similarly labeled costs are not recoverable from KCD=
BG
funds.<span style=3D'mso-spacerun:yes'>&nbsp; </span>They are recoverable o=
nly
from leveraged funds (non-KCDBG).<o:p></o:p></span></p>

<p class=3DMsoNormal><span style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></sp=
an></p>

<p class=3DMsoNormal><b style=3D'mso-bidi-font-weight:normal'><span
style=3D'font-size:12.0pt'>III.<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;=
&nbsp;&nbsp;&nbsp;&nbsp; </span>APPLICATION
OF PROHIBITION:<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;&nbsp;&nbsp;&nbs=
p;&nbsp;&nbsp;&nbsp; </span></span></b><span
style=3D'font-size:12.0pt'><span style=3D'mso-tab-count:1'>&nbsp;&nbsp;&nbs=
p;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>No
part of costs incurred for borrowing may be allocated to KCDBG/LTWH funds w=
hen
seeking payment in a request for cash.<span style=3D'mso-spacerun:yes'>&nbs=
p;
</span>Such costs may only be allocated to leveraged funding source(s).<o:p=
></o:p></span></p>

<p class=3DMsoNormal><span style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></sp=
an></p>

<p class=3DMsoNormal><b style=3D'mso-bidi-font-weight:normal'><span
style=3D'font-size:12.0pt'>IV.<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;&=
nbsp;&nbsp;&nbsp;&nbsp; </span>REQUIRED
ACTIONS</span></b><span style=3D'font-size:12.0pt'>:<span
style=3D'mso-spacerun:yes'>&nbsp; </span><span style=3D'mso-tab-count:1'>&n=
bsp;&nbsp;&nbsp;&nbsp; </span>All
sub-recipients must adhere to this clarification memorandum and maintain it=
 on
file for future reference.<span style=3D'mso-spacerun:yes'>&nbsp;
</span>Sub-recipients who have included prohibited interest, financing fees=
, or
other costs of borrowing in the KCDBG/LTWH column of their budgets should
contact their HORNE Project Coordinators regarding modifying their budgets =
in
conformity with this Clarification Memorandum.<span
style=3D'mso-spacerun:yes'>&nbsp;&nbsp; </span><o:p></o:p></span></p>

<p class=3DMsoNormal><span style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></sp=
an></p>

<p class=3DMsoNormal><b style=3D'mso-bidi-font-weight:normal'><span
style=3D'font-size:12.0pt'>V.<span style=3D'mso-tab-count:1'>&nbsp;&nbsp;&n=
bsp;&nbsp;&nbsp;&nbsp;&nbsp; </span>CONTACT:</span></b><span
style=3D'font-size:12.0pt'><span style=3D'mso-tab-count:1'>&nbsp;&nbsp; </s=
pan>Questions
concerning this memorandum or should be addressed to the appropriate HORNE
Project Coordinator.<o:p></o:p></span></p>

<p class=3DMsoNormal align=3Dcenter style=3D'text-align:center'><span
style=3D'font-size:12.0pt'><o:p>&nbsp;</o:p></span></p>

</div>

</body>

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<p class=3DMsoHeader>LTWH # 08-083</p>

<p class=3DMsoHeader>Letter of Credit</p>

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style=3D'mso-spacerun:yes'>&nbsp;</span>NUMPAGES<span
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eparator'></span><![endif]--><span
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randum</p>

<p class=3DMsoNormal style=3D'tab-stops:center 3.0in right 6.0in'>Cost of B=
orrowing</p>

<p class=3DMsoNormal style=3D'margin-bottom:10.0pt;line-height:115%;mso-pag=
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style=3D'mso-spacerun:yes'>&nbsp;</span>NUMPAGES<span
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