Agmt 2006 Allied Housing Program (2)

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LOAN AGREEMENT This Loan Agreement ("Agreement") is entered into effective as of May 3, 2006 ("Effective Date") by and between Alameda County Allied Housing Program, a California nonprofit public benefit corporation ("Borrower") and the City of San Leandro, a public body corporate and politic ("City"). Borrower and City are hereinafter collectively referred to as the "Parties." RECITALS A. Borrower and the Redevelopment Agency of the City of San Leandro ("Agency") entered into an Owner Participation Agreement dated as of May 3, 2006 (the "OPA") pursuant to which Borrower agreed to purchase the real property known as Alameda County Assessor's Parcel No. 075-0195-004-01 at 112 Garcia Avenue in the City of San Leandro, California ("Property") together with the mixed residential and commercial structure located thereon ("Improvements") known as the Mission Bell Apartments and Stores (all of the foregoing collectively, the "Project") and to operate the Project as an affordable housing project for very low- and extremely low-income households. The Property is located within the Alameda County-City of San Leandro (Joint) Redevelopment Project Area ("Project Area"), and is more particularly described in Exhibit A attached hereto and incorporated herein by reference. B. Pursuant to the OP A, Borrower has agreed to increase the housing affordability level of the Project over Four-year Transition Period as more particularly described in the OPA and the Regulatory Agreement. C. Borrower has requested, and City has agreed to provide a loan ("Loan") pursuant to the terms and conditions hereof for the purpose of providing partial financing for the acquisition of the Project. D. Borrower intends to finance the remaining Project acquisition, closing and refurbishment costs with a combination ofloans from the Agency, the Alameda County Corporation for Supportive Housing, the Local Initiatives Support Corporation, Fremont Bank, and loan and grant funds provided by other sources. E. The City has determined that (i) provision of a loan for the Project pursuant to the terms of this Agreement is in the interests of the health, safety and welfare of the residents of the Project Area and the City, and (ii) the Loan is necessary to make the Project economically feasible and affordable to very low- and extremely low-income households. F. Concurrently herewith: (i) Borrower shall execute a promissory note ("City Note") in the amount of the Loan and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing ("City Deed of Trust") which shall provide City with a security interest in the Property and the Project, and (ii) Borrower, Agency and City shall execute an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants ("Regulatory Agreement") which shall restrict occupancy of the Project to very low- and extremely low-income households and require Project rents to be affordable to very low- and 818012-3