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on the part of Allied, no other reasonable means of private or commercial financing is reasonably available to finance the Project at such affordability and income levels; WHEREAS, Allied and Agency staff have negotiated a Loan Agreement (the "Agency Loan Agreement") addressing terms and conditions of a loan in the amount of Five Hundred Thirty-Eight Thousand Sixty-Seven Dollars ($538,067) (the "Agency Loan"), a Secured Promissory Note (the "Agency Note") to be executed by Allied, an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants by and among the Agency, the City and Allied ("Regulatory Agreement") which will restrict rents for all of the units in the Project at levels affordable to very low- and extremely low-income households for a period of 55 years, and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the "Agency Deed of Trust") pursuant to which the Agency will be provided a security interest in the Project to secure repayment of the Agency Loan and compliance with the Regulatory Agreement; WHEREAS, the Agency Loan would be funded from the Agency's Low and Moderate- Income Housing Fund established pursuant to Health and Safety Code Section 33334.2; WHEREAS, in addition to the Agency Loan, the Project will be financed by a combination of funds from Fremont Bank, the County of Alameda, and the Local Initiative Support Corporation (collectively, the "Senior Lenders"); WHEREAS, the Senior Lenders have required that the Agency and the City subordinate the Regulatory Agreement to the Senior Lenders' loan documents ("Senior Loan Documents"), and Allied and Agency staff have determined that there is no economically feasible alternative method of financing the Project without such subordination; and WHEREAS, the Senior Loan Documents include provisions that will protect the Agency's investment in the Project, including certain notice and cure rights. NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of San Leandro hereby: 1. Finds that the financing of the Project in accordance with the OP A and the Agency Loan Agreement will increase the availability of affordable housing in the Project Area and facilitate the preservation of housing for very low- and extremely low- income households, will further the goals of the Redevelopment Plan, and will be consistent with the implementation plan adopted in connection therewith. 2. Finds that (i) the provision of financial assistance in the amount of the Agency Loan is necessary to make the Project financially feasible and affordable to low- and very low-income households, (ii) it would not be economically feasible to operate the Project at the proposed level of income-targeting and affordability without such financial assistance, and (iii) despite good faith efforts on the part of Allied, no other reasonable 818865-1 RESOLUTION NO. 2006-001 RDA 2