Agmt 2007 Estabrook Senior Housing LP etc

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evidence must be submitted in approvable form in sufficient time to allow the Agency and City to review and approve the information within prior to the scheduled construction start date. ARTICLE IV CITY FINANCIAL ASSISTANCE 4.1 Cit~Loan. Using funds from the Alameda County HOME Consortium pursuant to the HOME Investment Partnership Act as established by the National Affordable Housing Act of 1990 (42 USCA § 12471, et seq.), in the amount of One Million Three Hundred Eighty-Five Thousand Dollars ($1,385,000) and funds from the City's Affordable Housing Trust Fund in the amount of Six Hundred Thirty-Seven Thousand Dollars ($637,000), the City shall provide a loan ("City Loan") to Developer upon the terms and conditions and for the purposes set forth in this Agreement. The City Loan shall be evidenced by a promissory note (the "City Note") in the principal amount of Two Million Twenty-Two Thousand Dollars ($2,022,000) executed by Developer as Borrower substantially in the form attached hereto as Exhibit H, and shall be secured by a deed of trust (the "City Deed of Trust") executed by Developer as Trustor substantially in the form attached hereto as Exhibit I and recorded against the Property subordinate only to such liens as City shall approve in writing. The outstanding principal balance of the City Note will accrue three percent (3%) simple annual interest commencing upon the date of disbursement. Provided that Developer has complied with all conditions precedent to disbursement of the City Loan set forth in Section 4.5, the proceeds of the City Loan ("City Loan Proceeds") shall be disbursed in accordance with Section 4.4 hereof. The Parties agree that City shall disburse City Loan Proceeds only for the purposes set forth in Section 4.4. 4.2 Payment Dates; Maturity Date_ Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the City Note. The entire outstanding principal balance of the City Loan together with accrued interest and all other sums due under the City Documents shall be payable in full on the fifty-fifth (55`h) anniversary of the date that City issues the final certificate of occupancy for the Project. 4.3 Securit As security for repayment of the City Note, Developer shall execute the City Deed of Trust pursuant to which City shall be provided a lien against the Property and the Improvements. The City Deed of Trust shall be recorded in the Official Records on the date that Developer acquires the Property. The City Deed of Trust maybe subordinated only to such liens and subject only to such title exceptions as City may approve in writing. The City acknowledges that Developer's construction and permanent lender(s) may require the subordination of the City Deed of Trust. Developer acknowledges that the City Deed of Trust secures performance of Developer's obligations pursuant to this Agreement and the Regulatory Agreement which may survive repayment of the City Note, and that the City Deed of Trust shall not be reconveyed prior to Developer's satisfaction of such obligations. 4.4 Use and Disbursement of Proceeds. The City Loan Proceeds shall be used solely to fund acquisition of the Property and closing, escrow and other costs approved by the City. ~s~o~o-a 13