Agmt 2002 Citizens Housing Corporation

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LOAN AGREEMENT FOR THE USE OF HOME FUNDS FOR ACQUISITION OF THE HOUSING UNITS LOCATED AT 15320 TROPIC COURT, SAN LEANDRO This Agreement, dated as of May 6 , 2002, is entered into by and between the City of San Leandro, a municipal corporation hereinafter designated the City and Citizens Housing Corporation, a California nonprofit public benefit corporation, hereinafter designated the Developer. RECITALS WHEREAS, City is desirous of contracting with Developer for the acquisition and rehabilitation of forty-six (46) residential units as described in Exhibit A, attached hereto and incorporated herein; and WHEREAS, City is a Participating Jurisdiction in the Alameda County HOME Consortium and a recipient of funds pursuant to the HOME Investment Partnership Act, under the U.S. Department of Housing and Urban Development; and WHEREAS, Developer is willing and able to perform duties and render services which are determined by the City to be necessary or appropriate for the welfare of residents of the City; and WHEREAS, City desires that such duties and services be provided by Developer, and Developer agrees to perform such duties and render such services, as more particularly set forth below. WHEREAS, as a material inducement to the City to enter into this Agreement, Developer intends to make the project a mixed income project, with at least 49% of the residential units available for Low Income Tenants as defined by the Regulatory Agreement in Exhibit B of this Agreement, including 11 HOME assisted units available for Very Low Income Tenants. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties hereto agree as follows: ARTICLE I -LOAN SECTION 1.01 LOAN Subject to the terms and conditions of this Agreement, City hereby agrees to Loan to Developer Seven Hundred Thousand Dollars ($700,000), which shall bear interest at the rate of three percent (3%) per annum simple interest, through the Term of this Agreement, hereinafter designated as the Loan. The entire principal and accrued interest shall be deferred for the Term and shall be due and payable at the end of the Term. The Term of this Agreement is that period commencing on the date first written above and ending on the date which is fifty-five (55) years from the date of initial occupancy. The date of initial occupancy shall be the date the Project is first occupied by tenants following completion of rehabilitation. Developer or its assignee shall also enter into the following instruments or agreements (collectively known as the Loan Documents), by May 10, 2002 (this date may be modified upon written approval of the Community Development Director):