RDA Agmt 2000 American Baptist Homes of the West Inc etc

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1.03 Project Financing. (a) Applications for Financing. Upon execution of this Agreement, Developer shall diligently pursue all avenues of financing fA construct the Improvements. Developer covenants that it will use its best efforts to procure financing necessary for development and construction of the senior housing development, including applying for tax credit financing and a federal Housing and Urban Development 'Section 202" loan, and any other public or private financing sources available for the development of affordable senior housing projects. Best efforts shall include, at a minimum, the following efforts: (1) Developer shall apply for a HUD Section 202 loan in 2000; and (2) If unsuccessful in the application process referenced in Section 1.03(a)(1), Developer shall apply for tax credit financing in the first iwo cycles of 2001, approximately March 2001 and June 2001; and (3) If necessary, Developer shall apply for another HUD Section 2002 loan in June 2001. Failure to make the applications set forth above shall be considered an Event of Default pursuant to Section 6.04. Developer shall submit a progress report to the Agency Redevelopment Administrator every sixty days beginning sixty days after execution of this Agreement outlining the progress in securing such financing, including the filing of any applications and the granting of any funds. When Developer has secured financing commitments to construct the Improvements, Developer shall notify Agency of the financing commitments pursuant to the procedures set forth in Section 10.01. If Developer fails to secure such commitments within 27 months ofthe date of execution of this Agreement, Agency may terminate Agreement by delivery of notice of termination pursuant to Section 10.01. (b) Construction Financing Plan and Project Budget Within six months after notification of the financing commitments, Developer shall submit to the Agency its plan for financing the construction of the Improvements (hereinafter "Construction Financing Plan"). (1) The Construction Financing Plan shall include a cost breakdown by major cost categories and a cash flow projection for the construction of the Improvements (including all soft costs for professional services such as architectural and engineering services) and the sources of necessary funds to pay, when due, the costs indicated in the cash flow projection and evidence that the funds necessary to finance those costs have been sought or committed by Developer, equity investors or lending institutions, subject to such conditions as are commercially reasonable under the circumstances. (2) Along with the Construction Financing Plan, the Developer shall provide a Project Budget The Project Budget shall include all Project Budget documents submitted to the eonstruction financing lender. Construction costs shall be based on an actual bid by a qualified contractor. The Developer shall include a summary sheet of the Project Budget 1.04 Final Development Plan.