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9.A. - Page 33 <br /> 2.4 Repayment. Upon the earlier of (i) five (5) years from the Effective Date, (ii) the <br /> sale of the Property, (iii) the prepayment of the loan, or (iv) the occurrence of any <br /> Event of Default (each, a "Maturity Date"), the principal amount of the Loan <br /> together with any outstanding accrued interest shall become due and payable <br /> pursuant to the terms of the Deed of Trust and Promissory Note. Any portion of <br /> the outstanding principal balance due under the Loan may be prepaid at any <br /> time, and from time to time, without penalty or premium. Prepayments will be <br /> applied first to accrued interest and then to principal. However, if the Loan is a <br /> Rent Stabilization Program Loan, then Borrower's Loan repayment obligations <br /> shall be governed by the Rent Stabilization Program Loan Provisions of Section <br /> 3 below. <br /> 2.5 Upon full repayment of the Loan, the City shall acknowledge satisfaction of the <br /> Promissory Note and return it to Borrower, and shall reconvey the Deed of Trust. <br /> 3. Rent Stabilization Program Loan Provisions. 'State "Intentionally Omitted." if not <br /> applicable, and delete all subsectionsl. <br /> 3.1 Borrower has duly qualified for this Loan to be a Rent Stabilization Program Loan <br /> and Borrower elects and agrees to fulfill all of the provisions of this section. <br /> 3.2 From and after the Effective Date, Borrower shall neither: <br /> 3.2.1 Increase rental rates without first providing at least ninety (90) days <br /> written notice to tenants; nor <br /> 3.2.2 Increase rental rates during any twelve (12) month period by more than <br /> the annual Consumer Price Index—All Urban Consumers for San <br /> Francisco-Oakland-San Jose, CA, (Series Id. CUURA422SA0) as <br /> regularly published by the United States Department of Labor, Bureau of <br /> Labor Statistics for the applicable period of time and as verified by the <br /> Program Manager, or five percent (5%), whichever is lower. The <br /> Program Manager may allow for greater increases in rent charges during <br /> any twelve (12) months reasonably justified by capital improvements or <br /> upgrades made to the subject rental units other than the installation of the <br /> Automatic Sprinkler System. <br /> 3.3 Borrower must submit a written statement to the Program Manager annually <br /> verifying that rents in the Eligible Building have not increased in violation of the <br /> Loan Agreement. The written statement shall be on a form provided by the <br /> Program Manager. <br /> 3.4 If the Program Manager determines that Borrower has breached the Rent <br /> Stabilization Program Loan Provisions of this section, Borrower is entitled to an <br /> informal hearing before the City Manager or the City Manager's designee to <br /> provide evidence why a breach of the Rent Stabilization Program Loan <br /> Provisions of this section has not occurred. Borrower must provide a request in <br /> writing to the City Clerk no later than fifteen (15) calendar days after the Program <br /> Manager's written determination. The determination of the City Manager (or the <br /> City Manager's designee) shall be final. <br /> ATTY/RES0.3085/CC RESO RWC FIRE SAFETY FIRST PILOT PROGRAM ATTACHMENT B-LOAN AGREEMENT <br /> REV:05-11-15 VR <br /> Page 4 of 12 <br />