Reso 2022-063 Loan to Abode Communites for 72 Unit affordable housing dev

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(ii) No Conflict. City's execution, delivery and performance of their respective obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which City is a party or by which either is bound. (iii) No Litigation or Other Proceeding. No litigation or other proceeding (whether administrative or otherwise) is outstanding or has been threatened which would prevent, hinder or delay the ability of City to perform their obligations under this Agreement. (iv) No Bankruptcy. City is not the subject of a bankruptcy or insolvency proceeding. 2.3 Effective Date. The obligations of Developer and City hereunder shall be effective as of the Effective Date. ARTICLE III DEVELOPMENT OF THE PROJECT 3.1 The Property. Developer represents and warrants that as of the Effective Date: (i) Developer possesses, or intends to acquire, fee simple title to the Property, and (ii) to the best knowledge of Developer after reasonable inquiry, the Property is subject to no covenant, condition, restriction or agreement that would hinder or prevent Developer's performance of its obligations under this Agreement, the Regulatory Agreement, and the City Documents. If at any time the foregoing statements become untrue, the City shall have the right to terminate this Agreement upon written notice to Developer. 3.2 Scope of Development. Developer shall develop the Project on the Property in accordance with the terms and conditions of this Agreement, the Regulatory Agreement, the City Documents and in compliance with the terms and conditions of all approvals, entitlements and permits that the City or any other governmental body or agency with jurisdiction over the Project or the Property has granted or issued as of the date hereof or may hereafter grant or issue in connection with development of the Project, including without limitation, all mitigation measures imposed in connection with environmental review of the Property and the Project and all conditions of approval imposed in connection with any entitlements, approvals or permits (all of the foregoing approvals, entitlements, permits, mitigation measures and conditions of approval are hereafter collectively referred to as the "Conditions of Approval"). The Project consists of the design, development and construction on the Property of a 72- unit multifamily residential project, consisting of three (3) studio units, thirty-three (33) one - bedroom units, eighteen (18) two -bedroom units, and eighteen (18) three -bedroom units. Developer agrees that thirty-five (35) of the units will be rented at an affordable housing cost to low, very -low, and extremely -low income households. The Project will include one (1) manager's unit. 5055770.1 5