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5055770.1 2 THIS LOAN AGREEMENT (this “Agreement”) is entered into effective as of DATE (“Effective Date”) by and between the City of San Leandro, a California charter city (“City”) and Washington Avenue, L.P., a California limited partnership (“Developer”). City and Developer are hereinafter collectively referred to as the “Parties.” RECITALS A. Developer owns, or intends to acquire, that certain real property located at 15101 Washington Avenue, San Leandro, California, also known as Alameda County Assessor Parcel Number _____ (the "Property"), as more particularly described on Exhibit A attached hereto and incorporated herein by this reference. B. Developer has proposed to develop a seventy-two (72) unit multifamily residential apartment building consisting of three (3) studio units, thirty-three (33) one-bedroom units, eighteen (18) two-bedroom units, and eighteen (18) three-bedroom units, of which seventy one (71) units will be rented at an affordable housing cost to low, very-low, and extremely-low income households (the “Project”). C. Developer has requested, and City has agreed, to provide a loan to Developer in the amount of One Million Six Hundred Thirty Five Thousand Forty Dollars ($1,635,040) from the City’s Affordable Housing Asset Fund (the “Loan”) to assist in the development of the Project pursuant to the terms and conditions set forth herein. D. The City has determined that (i) development of the Property pursuant to this Agreement will be of benefit to the City by providing affordable housing in the City, and (ii) the loan is necessary to make the Project economically feasible and affordable to low, very low-, and extremely-low income households. E. A material inducement to City to enter into this Agreement is the agreement by Developer to develop the Property within the time periods specified herein and in accordance with the provisions hereof, and the City would be unwilling to enter into this Agreement in the absence of an enforceable commitment by Developer to complete the Project in accordance with such provisions and within such time periods. F. Prior to the distribution of the Loan by the City: (i) Developer shall execute a secured promissory note (the “Note”) in the amount of the Loan and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (“Deed of Trust”), which shall provide City with a security interest in the Property and the Project, and (ii) Developer and City shall execute an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (the “Regulatory Agreement”), which shall be recorded against the Property and which shall require Project rents to be affordable to low, very low, and extremely-low income households for a term of not less than 55 years. The Note, the Regulatory Agreement and Deed of Trust are collectively hereinafter referred to as the “City Documents.”