RDA Agmt 2011 Las Palmas Development Partners

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AFFORDABLE HOUSING LOAN AGREEMENT This Affordable Housing Loan Agreement (this "Agreement ") is entered into effective as of February 7, 2011( "Effective Date ") by and between the Redevelopment Agency of the City of San Leandro, a public body corporate and politic ( "Agency ") and Las Palmas Development Partners, a California limited partnership (the "Borrower "). Agency and Borrower are hereinafter collectively referred to as the "Parties." A. Borrower is the owner of that certain multi - family residential project (the "Project ") located at 15370 -15375 Tropic Court in the City of San Leandro and more particularly described in the attached Exhibit A (the "Property "). The City of San Leandro, a municipal corporation ( "City ") provided financing to Borrower for the acquisition of the Project pursuant to that certain Loan Agreement for the Use of HOME Funds dated as of December 6, 1999 and executed by and between City and Borrower and subsequently amended by that certain Amendment No. 1 to Loan Agreement dated as of November 17, 2003, executed by Borrower and City. B. Borrower has requested, and Agency has agreed to provide a loan to Borrower in the amount of Fifty Thousand Dollars ($50,000) (the "Loan ") to assist in financing certain expenses incurred in connection with the management and operation of the Project. In consideration for the Loan, Borrower has agreed to execute and record an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants substantially in the form attached hereto as Exhibit C (the "Regulatory Agreement ") pursuant to which five (5) units in the Project will be restricted for occupancy at affordable rents to very low- income households for a term of fifty -five (55) years. C. As more particularly described herein, in connection with the Loan, Borrower will execute and deliver to Agency a promissory note evidencing Borrower's obligation to repay the Loan and a deed of trust which will be recorded against the Property to secure such obligation. D. The Agency has determined that the Loan is necessary to make the restricted units in the Project affordable to Very Low- Income households, and has • further determined that provision of financing by Agency to Borrower for the purposes described herein is a qualified use of the Agency's low and moderate - income housing fund pursuant to Health and Safety Code Section 33334.3. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. 1. THE LOAN AND DISBURSEMENT OF THE LOAN PROCEEDS. 1.1 Loan and Note. Upon the terms and conditions and for the purposes set forth herein, Agency agrees to loan to Borrower, and Borrower agrees to borrow from 1582106.2 1