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CDBG Loan Agreement 7/1/2023 Between City of San Leandro and Building Futures with Women and Children Page 2 of 18 Improvements are exempt from CEQA requirements under the categorical exemption set forth in 14 California Code of Regulations Section 15303(b). J. In accordance with the National Environmental Policy Act of 1969, as amended (42 USC 4321-4347) (“NEPA”), the City has completed and approved all applicable environmental review for the activities proposed to be undertaken under this Agreement. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows: ARTICLE I LOAN TERMS; USE AND DISBURSEMENT OF PROCEEDS 1.1 LOAN. City agrees to loan to Participant, and Participant agrees to borrow from City a sum of up to Sixty Fifty Thousand Two Hundred Twenty Nine Dollars ($65,229.00) (the “CDBG Loan”) upon the terms and conditions and for the purposes set forth in this Agreement for construction of Improvements approved by the City. The ARPA and CDBG Loan is funded with the City’s allocation of CDBG Funds. The ARPA and CDBG Loan shall be evidenced by a ARPA and CDBG Note, which shall be dated as of the Effective Date. 1.1.1. FEDERAL AWARD IDENTIFICATION. Federal award identification information regarding the funding provided to Participant by this Agreement, as required by 24 CFR 200.331, is included in Exhibit C, attached hereto and incorporated herein. 1.2 REPAYMENT; INTEREST RATE; FORGIVENESS. 1.2.1 LOAN TERM AND REPAYMENT. The Term of this Agreement shall be ten (10) years. Provided that Participant is not in default under the Loan Documents, the City shall forgive one tenth (1/10th) of the principal of the ARPA and CDBG Loan, which is equal to Fourteen Thousand Three Hundred Seventy Two Dollars and Fifty Cents ($15,022.90), annually on the anniversary of the Effective Date. On the tenth (10th) anniversary of the Effective Date, provided that no default or breach by Participant has occurred pursuant to Article IV, the entire outstanding principal and interest accrued on the ARPA and CDBG Loan shall be forgiven. If Participant sells or transfers the Property or changes the use of the Property without written approval from the City, the ARPA and CDBG Loan shall become due and payable upon sale. 1.2.2 TIMELINE TO SPEND THE LOAN. Participant shall expend the entire ARPA and CDBG Loan within twenty-four (24) months of the effective date of this Agreement. 1.2.3 INTEREST. Interest shall accrue on the principal balance of the ARPA and CDBG Loan at a rate of three percent (3%) simple interest per annum. 1.3 PREPAYMENT. Participant may, without premium or penalty, at any time and from time to time, prepay all or any portion of the outstanding principal balance due under the ARPA and CDBG Note. Any prepayment of principal must be accompanied by interest accrued but unpaid to the date of receipt of