10B Action 2012 0117 - Laserfiche WebLink

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THIS AFFORDABLE HOUSING LOAN AGREEMENT (this "Agreement ") is entered into effective as of January _, 2012 ( "Effective Date ") by and between the City of San Leandro, a municipal corporation ( "City ") and Eden Surf Associates, L.P., a California limited partnership ( "Borrower "). City and Borrower are hereinafter collectively referred to as the "Parties." RECITALS A. Borrower owns or has a contractual right to acquire that certain real property located in the City of San Leandro at 15320 Tropic Court, known as Alameda County Assessor's Parcel No. 412 - 0006 -007, and more particularly described in Exhibit A attached hereto (the "Property "). The Property is currently improved with forty -six units of multi - family rental housing (the "Improvements "). B. Borrower intends to acquire the Property, rehabilitate the Improvements, and operate the Improvements as an affordable multi - family residential rental project (the "Project") C. Subject to the terms and conditions set forth in this Agreement, City has agreed to provide a loan to Borrower in the amount of One Hundred Thousand Dollars ($100,000) (the "Loan ") in order to provide partial financing for the rehabilitation of the Project. D. Borrower has agreed to restrict thirty -two (32) of the residential units in the Project for occupancy by Eligible Households at Affordable Rents (defined below) in accordance with an Affordable Housing Regulatory Agreement. E. Concurrently with the execution of this Agreement, among other documents, Borrower shall execute: (a) a secured promissory note in the amount of the Loan, (b) a deed of trust which will provide City with a security interest in the Project and the Property, and (c) an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants which will require Project rents to be affordable to low -, and very low- income households. NOW, THEREFORE, in consideration of the mutual covenants contained herein and good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows. DEFINITIONS 1. Definitions. The following terms shall have the meanings set forth in the Sections referenced below whenever used in this Agreement and the Exhibits attached hereto. Additional terms are defined in the Recitals and text of this Agreement. "Affordable Rent" is defined in the Regulatory Agreement. "Area Median Income" is defined in the Regulatory Agreement. "City" means the City of San Leandro, a municipal corporation. 1755895.2