Cornerstone Community Development CDBG Loan Agreement 20230701

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CDBG Loan Agreement 7/1/2023 Between City of San Leandro and Building Futures with Women and Children Page 3 of 18 prepayment of principal must be accompanied by interest accrued but unpaid to the date of receipt of prepayment. Prepayments shall be applied first to any unpaid late charges and other costs and fees then due, then to accrued but unpaid interest and then to principal. 1.4 USE OF PROCEEDS. Participant shall use the proceeds of the CDBG Loan (the “CDBG Loan Proceeds”) solely and exclusively to pay for the construction of the Improvements described in Exhibit B and in accordance with the budget and timeline specified in Exhibit B. 1.5 DISBURSEMENT OF PROCEEDS. Participant shall submit separate written requests for each disbursement of CDBG Loan funds with supporting evidence for all amounts requested (each a “Requisition”) specified in Exhibit E. Participant shall submit each Requisition to the Community Development Director, or her/his designee, stating the requisition or invoice number (e.g., Invoice #1) and purpose and amount of the requested disbursement. Participant shall attach copies of any documents supporting the Requisition, including estimates, bids, receipts, invoices, contracts, payment schedules, or evidence of Participant’s payment of preconstruction and rehabilitation expenses required to fund the Improvements. The supporting documents shall state the time period in which work was performed, and the expenses to be funded with the CDBG Loan Proceeds. 1.6 RESERVED. 1.7 CONDITIONS PRECEDENT TO DISBURSEMENT OF PROCEEDS. City’s obligation to disburse the CDBG Loan Proceeds is conditioned upon the satisfaction of all of the following conditions: (a) Participant’s delivery to City of fully executed Loan Documents; (b) Participant’s delivery to City of evidence reasonably satisfactory to City that Participant obtained all necessary permits (including without limitation, building permits), licenses, and approvals including the approval of the owner of the Property, required to undertake the Improvements, or that the receipt of such permits is subject only to such conditions as City shall reasonably approve; (c) City shall have received and approved the final plans and specifications for the Improvements; (d) City shall have received copies of labor and materials bonds and performance bonds for the construction of the Improvements in an amount equal to one hundred percent (100%) of the scheduled cost of the Improvements. (e) Participant’s delivery to the City of evidence of insurance coverage in accordance with the requirements set forth in this Agreement; (f) Participant’s delivery to City of such documentation as City shall reasonably require regarding Participant’s organizational status and authority to execute and perform Participant’s obligations under the Loan Documents; (g) Participant’s delivery to City of all of the following: (i) Improvements budget; (ii) construction contract; (iii) other assurance of completion reasonably acceptable to City; and (iv) copies of such other DocuSign Envelope ID: 057135D4-E785-4F2C-BAEE-D4B277B0C49C