Agmt 2009 Alameda County Allied Housing Program

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low-, very low-, and extremely low-income households for a term of not less than 55 years from the Effcctive Date of this First Amendment. F. The City has determined that {i) provision of the Additional Loan pursuant to the terms of this First Amendment is in the interests of the health, safety and welfare of the residents of the Project Area and the City, (ii) the Additional Loan is necessary to make the Project economically feasible and affordable to low-, very low- and extremely low-income households; and (iii} the Additional Loan will assist in the rehabilitation of the Project and its preservation as affordable housing. G. The Parties desire to amend the Laan Agreement in order to provide for the Additional Loan. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows. 1. Article I, Section 1.1 of the Loan Agreement is amended to add the following: City agrees to make an additional loan to Harrower, and Borrower agrees to barrow from and repay to City an additional sum in the amount of Four Hundred Thousand Dollars ($400,000.00} subject to this Section 1.1, upan the terms and conditions and for the purposes set forth in this Agreement. Provided that Borrower has complied with all conditions precedent to disbursement of the Loan and the Additional Laan set forth in Section 2.3, the proceeds of the Additional Loan ("Additional Loan Proceeds") shall be disbursed into escrow for distribution in accordance with this Agreement. Without limiting the generality of the foregoing, it is expressly understood by the Parties that City's obligation to fund the Additional Loan is contingent upon City's approval of a budget for use of the Additional Loan Proceeds, Borrower's provision to the City of evidence reasonably satisfactory to the City that all sources of funds necessary for the rehabilitation and refinancing of the Project are available, and Borrower's execution and delivery of the Additional Promissory Note (defined below) and an Amended and Restated Affordable Housing Regulatory Agreement. The Additional Loan shall be evidenced by a secured promissory note dated as of June 1 b, 2009 (the "Additional Promissory Note") and shall be secured by the City Deed of Trust. 2. Article II, Section 2.1 of the Loan Agreement is amended to add the following: Harrower shall use the Additional Loan Proceeds solely and exclusively to pay for costs related to refurbishment, rehabilitation and refinancing of the Project as the City may approve in writing. 1228487-5 2 FIRST AMENDMENT TO LOAN AGREEMENT MISSION BELL APARTMENTS