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<br />Assistance Act (42 USCA ~ 11301 et seq.) that are subject to certain restrictions established by
<br />42 USCA ~ 12705, the City shall provide a loan ("City Loan") to Owner in the amount of One
<br />Million One Hundred Thousand Dollars and Sixty-seven Cents ($1,100,000.67) pursuant to a
<br />loan agreement substantially in the form attached hereto as Exhibit D (the "City Loan
<br />Agreement"). The City Loan shall be evidenced by a promissory note (the "City Note")
<br />executed by Owner as Borrower, and shall be secured by a deed of trust (the "City Deed of
<br />Trust") executed by Owner as Trustor and recorded against the Property subordinate only to
<br />such liens as City shall approve in writing. The City shall provide no other financing or other
<br />assistance to the Owner or the Project. Owner acknowledges and agrees that (i) the Project shall
<br />be Rent-Restricted to eligible households of very low- and extremely low-income pursuant to the
<br />terms and conditions of the Regulatory Agreement, and (ii) City is under no obligation to provide
<br />assistance to Owner or to provide assistance to the occupants ofthe Rent-Restricted Units in
<br />greater than the amount set forth in this Section.
<br />
<br />ARTICLE V
<br />
<br />USE OF THE PROPERTY
<br />
<br />5.1 Maintenance. Owner shall maintain the Property, the Improvements and related
<br />landscaping and common areas in accordance with the San Leandro Municipal Code in a manner
<br />consistent with community standards, and shall comply with all applicable federal, state and
<br />local laws and regulations pertaining to the Property and the Project. Owner covenants that the
<br />portions of the Property undergoing construction shall be maintained in a neat and orderly
<br />condition to the extent practicable and in accordance with industry health and safety standards.
<br />Owner shall maintain the Project, including the walkways, driveways, and landscaping, in good
<br />repair and working order, and in a neat, clean and orderly condition, and from time to time shall
<br />make all necessary and proper repairs, renewals and replacements.
<br />
<br />5.2 Taxes and Assessments. Owner shall pay all real and personal property taxes,
<br />assessments and charges and all franchise, income, payroll, withholding, sales, and other taxes
<br />assessed against the Property or payable by Owner, at such times and in such manner as to
<br />prevent any penalty from accruing, or any lien or charge from attaching to the Property;
<br />provided, however, that Owner shall have the right to contest in good faith, any such taxes,
<br />assessments, or charges. ill the event the Owner exercises its right to contest any tax,
<br />assessment, or charge, the Owner, on final determination of the proceeding or contest, shall
<br />immediately payor discharge any decision or judgment rendered against it, together with all
<br />costs, charges and interest.
<br />
<br />5.3 Obligation to Refrain from Discrimination. Owner shall not restrict the rental,
<br />sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, or any
<br />portion thereof, on the basis ofrace, color, religion, creed, sex, sexual orientation, marital status,
<br />ancestry, or national original of any person. Owner covenants for itself and all persons claiming
<br />under or through it, and this Agreement is made and accepted upon and subject to the condition
<br />that there shall be no discrimination against or segregation of any person or of a group of persons
<br />on account ofrace, color, religion, creed, sex, sexual orientation, marital status, ancestry, or
<br />
<br />818642.2
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