Housing Consortium of the East Bay Ground Lease 20231030

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iii amendments to this Agreement and/or the attachments hereto which are mutually acceptable to the Parties. ................................................................19 Section 5.2 Use and Disbursement of City Rehabilitation Grant Proceeds. The City Rehabilitation Grant Proceeds shall be used as follows: (a) a portion of the City Rehabilitation Grant Proceeds shall be used to pay for predevelopment costs of the Project incurred after the date of the Predevelopment Grant Agreement and prior to the date of this Ground Lease, to be funded at the commencement of construction and rehabilitation of the Improvements, and (b) a portion of the City Rehabilitation Grant Proceeds shall be used to pay for the cost of predevelopment expenses, and the construction and rehabilitation of the Improvements, to be funded through monthly draws. All disbursements shall be in accordance with a Project Budget which is submitted by Lessee to Lessor and approved by Lessor. The Project Budget may be revised from time to time with the mutual approval of the Parties. ..20 Section 5.3 Conditions to Disbursement of City Rehabilitation Grant Proceeds. City’s obligation to fund the City Rehabilitation Grant and disburse the City Rehabilitation Grant Proceeds for the purposes of Section 5.2 above is conditioned upon the satisfaction of all of the following conditions .............20 Section 5.4 Operating Subsidy Agreement. Lessor and Lessee shall enter into the Operating Subsidy Agreement, substantially in the form attached hereto as Exhibit G and incorporated herein, concurrently with the execution of this Ground Lease. ................................................................................................21 Section 5.5 Project Homekey Grant. Lessor shall be entitled to the disbursement of such portion of the Project Homekey Grant as Lessor determines is necessary for payment of the full amount of the costs of Lessor’s acquisition of the Leased Premises. Lessee shall be entitled to receive the remaining amount of the Project Homekey Grant from the Project Homekey Agreement as necessary for payment of costs of the construction and rehabilitation of the Improvements. If necessary, Lessee shall apply to the State for disbursements of the remaining funds, and Lessor shall cooperate with and assist Lessee and deliver approvals to the State, to the extent required in order to obtain the remaining portion of the Project Homekey Grant from the State for the foregoing expenses. ...........................................21 ARTICLE 6. Operation of project .............................................................................................21 Section 6.1 Use. For the entire Term of this Ground Lease, the Leased Premises shall be used for the development and operation of the Project in accordance with the terms and conditions of this Ground Lease, the Project Homekey Agreement and the Regulatory Agreement. ...................................................21 Section 6.2 Execution and Compliance with Project Homekey Agreement. In the event that the Project Homekey Grant is awarded by the State of California, Lessor and Lessee agree to enter into the Project Homekey Agreement. Lessor and Lessee shall further enter into and record a Regulatory Agreement as required by the Project Homekey Agreement. The form of DocuSign Envelope ID: 6E2EA799-6D74-41E3-B3EE-3CD67DC0ACD0