10B Action 2009 0406 - Laserfiche WebLink

Home

must be submitted to Agency in approvable form in sufficient time to allow for Agency's review and approval prior to the scheduled construction start date. 3.22 Insurance Requirements. Developer shall maintain and shall cause its contractors to maintain all applicable insurance coverage specified in Article X. ARTICLE N AGENCY FINANCIAL ASSISTANCE 4.1 A ency Loan. In order to increase the affordability of the Project, Agency agrees to provide a loan to Developer in the maximum aggregate amount of Nine Million One Hundred Thousand Dollars ($9,100,000) {~~Agency Funds") upon the terms and conditions and for the purposes set forth in this Agreement. 4.1.1 Predevelopment Funds. Subject to the conditions set forth in this Section, Developer shall be permitted to use Agency Funds in an amount up to Two Million Two Hundred Thousand Dollars ($2,200,000) (the "Predevelopment Funds") for approved predevelopment activities prior to Developer's acquisition of a leasehold interest in the Property. Upon satisfaction of the conditions set forth in Section 4.5.1, Predevelopment Funds shall be disbursed for the purposes and in the amounts set forth in the budget attached hereto as Exhibit EE=4 or as otherwise approved in writing by Agency. The last One Million Dollars ($1,000,000) of the Predevelopment Funds will be available only following: (i) Developer's delivery to Agency of confirmation that Developer has been awarded MHP funds, or has received an allocation of 9% federal low-income housing tax credits for the Project, (ii) Agency's determination that Agency has cash on hand in such amount, and (iii) Developer's provision of evidence satisfactory to Agency that it is necessary to expend such funds prior to Developer's acquisition of a leasehold interest in the Property. 4.1.2 Predevelopment Note; Termination for Infeasibility. (a) Predevelopment Note. Developer's obligation to repay the Predevelopment Funds shall be evidenced by a promissory note in the amount of the Predevelopment Funds substantially in the form attached hereto as Exhibit E-1 (the "Predevelopment Note"). The outstanding principal balance of the Predevelopment Note shall bear simple interest at the rate of three percent (3%) per annum commencing upon the date of disbursement. Payments of principal and interest under the Predevelopment Note shall be deferred. Upon closing for the Agency construction/permanent loan for the Project, the Predevelopment Note shall be cancelled, and Developer shall execute a new note which shall evidence Developer's obligation to repay both the balance payable under the Predevelopment Note and the amount of the additional funds to be advanced by the Agency. Concurrently with the execution and delivery of the Predevelopment Note, Developer shall execute and deliver to Agency the Assignment Agreement substantially in the form attached hereto as Exhibit E-3. (b) Termination for Infeasibility. Provided that Developer is not in default under this Agreement, Developer may terminate this Agreement under the circumstances set forth below by l 178986-5 15