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PROMISSORY NOTE <br />CITY OF SAN LEANDRO <br />HOMEeINVESTMENTePARTNERSHIPS�"HOME" )cPROGRAM <br />$100,000 , 2014 <br />San Leandro, California <br />FOR VALUE RECEIVED, Hello Housing, a California nonprofit public benefit Corporation <br />("Borrower"),epromisesetogpayetoctheeCitywfcSaneLeandro,eaeCaliforniaecharter city ("City")Cthee <br />principal sum of One Hundred Thousand Dollars ($100,000), or so much thereof as may be <br />advanced by City, together with interest as provided herein. The outstanding principal balance of <br />thisepromissoryenotee(thisd`Note")eshallebearesimpleeinteresteatetheerateeDfethreeepercente(3 %)epere <br />annum commencing upon the date of disbursement. <br />1. Loan. This Note is executed pursuant to that certain HOME Loan Agreement dated as of <br />eandeexecutedebyeandebetweeneBorrowereandeCitye(thee"Loan Agreement" ).W <br />Capitalized terms used without definition herein shall have the meanings ascribed to such terms in <br />the Loan Agreement. Borrower will use the proceeds of the Loan for the construction of the project <br />describedandheeLoaneAgreemente(thed`Proj ect"). <br />2. Security. Payment of this Note is secured by a Deed of Trust, Assignment of Rents, Security <br />AgreementmndTixtureTilinga thed`Deed of Trust")aiatedcsa)fe , executed by Borrower <br />aseTrustoreforetheebenefiteofeCityeaseBeneficiary,candeaeRegulatoryeAgreemente(thed`Regulatory <br />Agreement")edatedeaseofe e,executed by and between Borrower and City that set forth <br />certain limitations on household incomes and rent for the HOME assisted unit. The Deed of Trust <br />and the Regulatory Agreement shall be recorded against the Property and the Project. <br />3. Maturity Date; Payments. The entire outstanding principal balance of this Note, together <br />with interest accrued thereon and any other sums accrued hereunder shall be payable in full on the <br />datee(thed`Maturity Date")ovhichascthewarliereof:a(i)ctheefifty-fifth (55th) anniversary of the date <br />upon which the City issues a final certificate of occupancy for the Project, or (ii) the fifty-ninth <br />(59th) anniversary of the date of the Loan Agreement. By no later than June 1 of each year <br />following the issuance of a final certificate of occupancy or equivalent for the Project, Borrower <br />shall pay to City fifty percent (50%) of all Surplus Cash (as defined in and subject to the provisions <br />of Section 1.2 (and subsections thereof) of the Loan Agreement) to reduce the indebtedness owed <br />under this Note. Notwithstanding the foregoing, if other public agency lenders provide Project <br />financing that requires repayment from residual receipts or surplus cash, then City shall share fifty <br />percent (50%) of the Surplus Cash with such other public agencies in accordance with the program <br />rules and regulations applicable to such public agency loan or in a proportion to be determined by <br />agreement with such agencies. Payments shall be made in lawful money of the United States to City <br />at 835 East 14th Street, San Leandro, California 94577, Attention: Finance Department. The place <br />of payment may be changed from time to time as the City may from time to time designate in <br />writing. <br />