Laserfiche WebLink
H. Borrower intends to finance the remaining Project with Neighborhood Stabilization <br />Program ("NSP V) funds ("NSP 1 Funds") from HUD pursuant to Title III of Division B of the <br />Housing and Economic Recovery Act of 2008, and funded under the American Reinvestment and <br />Recovery Act of 2009 ("ARRA"). <br />I. The Borrower intends to rehabilitate the Property, and following such <br />rehabilitation, the Borrower intends to transfer its fee interest in the Property to Housing <br />Consortium of the East Bay, a California nonprofit public benefit corporation, or any other entity <br />under the direct control of Housing Consortium of the East Bay ("HCEB"), and assign its rights, <br />duties and obligations under the Loan Documents to HCEB. Upon such transfer, HCEB intends <br />to assume the rights, duties, and obligations under the Loan Documents from the Borrower, and, <br />thereafter, to lease the residential units within the Improvements to income -eligible households <br />in accordance with the Loan Documents. "Loan Documents" means this Agreement, the Note, <br />the Regulatory Agreement, and the Deed of Trust. <br />NOW THEREFORE, IN CONSIDERATION of the mutual agreements, obligations, and <br />representations, and in further consideration for the making of the Loan, the Borrower and City <br />hereby agree as follows: <br />ARTICLE I <br />LOAN TERMS <br />1.0 Loan. The City agrees to loan to Borrower, and the Borrower agrees to borrow from <br />and repay to City, an amount not to exceed One Hundred Thousand Dollars ($100,000), subject to <br />the terms and conditions of this Agreement. The Loan shall be evidenced by a promissory note <br />executed by Borrower substantially in the form attached hereto as Exhibit C (the "Note") bearing <br />simple interest at the rate of three percent (3%) per annum with a term of fifty-five (55) years, and <br />will be secured by a deed of trust substantially in the form attached hereto as Exhibit D (the "Deed <br />of Trust") which will be recorded in the official records of Alameda County against the Property <br />prior to any disbursements hereunder. This Agreement, the Regulatory Agreement, the Note and the <br />Deed of Trust are collectively referred to in this Agreement as the "Loan Documents." <br />1.1 Payment Dates; Maturity Date. Annual payments on the outstanding principal <br />balance of the Note shall be payable on a residual receipts basis with fifty percent (50%) of all <br />Surplus Cash (defined below) payable to City toward principal and accrued interest, subject however <br />to Section 1.2 below. Payments shall be credited first to any unpaid late charges and other costs and <br />fees then due, then to accrued interest, and then to principal. In no event shall any amount due under <br />the Note become subject to any rights, offset, deduction or counterclaim on the part of Borrower. <br />The entire outstanding principal balance of the Note, together with interest accrued thereon and any <br />other sums accrued hereunder shall be payable in full on the date (the "Maturity Date") which is the <br />earlier of: (i) the fifty-fifth (55th) anniversary of the date upon which the City issues a final <br />certificate of occupancy for the Project, or (ii) the fifty-ninth (59th) anniversary of the date hereof. <br />1.2 Annual Payments From Surplus Cash. By no later than June 1 of each year following <br />the issuance of a final certificate of occupancy or equivalent for the Project, Borrower shall pay to <br />City fifty percent (50%) of all Surplus Cash generated by the Project during the previous calendar <br />2220130.1 Page 2 <br />