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97174497 CITY OF SAN LEANDRO AMENDMENT TO AGREEMENT FOR USE OF HOME FUNDS THIS AMENDMENT, dated January 21, 1997, is entered into by and between the City of San Leandro, a municipal corporation hereinafter designated as the Lender, and Fenway Partners, a California Limited Partnership, hereinafter designated as the Borrower. WHEREAS, the Lender and the Borrower have entered into an AGREEMENT FOR THE USE OF HOME FUNDS dated September 29, 1993 (Agreement), which is incorporated by reference herein and attached as Exhibit A hereto; and WHEREAS, the Lender remains desirous of assisting the Borrower in providing eleven (11) units of affordable housing in the Greenhouse Townhomes Apartment Complex, to serve low and very low income persons within the City of San Leandro; and WHEREAS, the Borrower is economically unable to provide such affordable housing under the provisions of the Agreement. NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the parties hereby mutually agree to amend the Agreement as follows: 1. Paragraph 2(d) is hereby deleted and the following paragraph is hereby substituted: "SECTION 8 RENTALS: Borrower and Lender agree that Section 8 renters shall be eligible to qualify for the eleven (11) units of affordable housing so long as the rents remain at HOME levels, and Section 8 applicants shall receive equal consideration." 2. Paragraph 5(b) is hereby amended to read: "REMEDIES IF ASSISTED UNITS FAIL TO REMAIN AFFORDABLE AND/OR BORROWER DISCRIMINATES AGAINST SECTION 8 RENTERS: If the HOME assisted units fail to remain affordable, as defined in 24 CFR Part 92.252, for the entire term of this agreement, or Borrower refuses to allow Section 8 renters to qualify for the HOME program the Lender may take the following action:" 3. Paragraph 5(b)(1) is hereby deleted and the following paragraph is hereby substituted: "The entire unforgiven balance of the loan shall be paid by the Borrower to the Lender upon written notice of the Lender to the Borrower without further demand. In addition, liquidated damages shall be due as set forth more particularly in the Amendment to Promissory Note Section 6, of even date herewith. The exercising of this option shall not prejudice the Lender from pursuing all rights and remedies available under this Promissory Note or as may be otherwise available to Lender." Fenway Homes Loan Agreement Amendment No. 1 Page 1 of 2