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2890662.3 3 <br />THIS LOAN AGREEMENT (this “Agreement”) is entered into effective as of <br />_________________, 2018 (“Effective Date”) by and between the City of San Leandro, a <br />California charter city (“City”) and Eden Housing, a California non-profit public benefit <br />corporation (“Developer”). City and Developer are hereinafter collectively referred to as the <br />“Parties.” <br />RECITALS <br />A. Developer owns, or has the contractual right to purchase, that certain real property <br />located at 1604 and 1642 San Leandro Boulevard (the "Property"), known as Assessor’s Parcel <br />Numbers 075-0028-001-02 and 075-0028-011-02, as more particularly described on Exhibit A <br />attached hereto and incorporated herein by this reference. <br />B. Developer has proposed to develop a 62-unit multifamily residential apartment <br />building consisting of 22 studio apartments, 22 one-bedroom apartments and 18 two-bedroom <br />apartments, of which 57 units will be rented at an affordable housing cost to low and very-low <br />income households (the “Project”). <br />C. Developer has requested, and City has agreed, to provide a loan to Developer in <br />the amount of One Million Dollars ($1,000,000) (the “Loan”) to assist in the development of the <br />Project pursuant to the terms and conditions set forth herein. <br />D. The purpose of this Agreement is to effectuate the Redevelopment Plan by <br />providing for the development of the Property as more particularly set forth herein. The City has <br />determined that (i) development of the Property pursuant to this Agreement will be of benefit to <br />the City by providing affordable housing in the City, and (ii) the loan is necessary to make the <br />Project economically feasible and affordable to low and very low-income households. <br />E. A material inducement to City to enter into this Agreement is the agreement by <br />Developer to develop the Property within the time periods specified herein and in accordance <br />with the provisions hereof, and the City would be unwilling to enter into this Agreement in the <br />absence of an enforceable commitment by Developer to complete the Project in accordance with <br />such provisions and within such time periods. <br />F. Concurrently herewith: (i) Developer shall execute a secured promissory note <br />(the “Note”) in the amount of the Loan and a Deed of Trust, Assignment of Rents, Security <br />Agreement and Fixture Filing (“Deed of Trust”), which shall provide City with a security <br />interest in the Property and the Project, and (ii) Developer and City shall execute a an Affordable <br />Housing Regulatory Agreement and Declaration of Restrictive Covenants (the “Regulatory <br />Agreement”), which shall be recorded against the Property and which shall require Project rents <br />to be affordable to low and very low-income households for a term of not less than 55 years. <br />The Note, the Regulatory Agreement and Deed of Trust are collectively hereinafter referred to as <br />the “City Documents.” <br />25