AgdaPkt 2015-07-27 Joint SA and PFA

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7.3.A. - Page 19 Francisco - Oakland -San Jose, CA, (Series Id. CUURA422SA0) as regularly published by the United States Department of Labor, Bureau of Labor Statistics for the applicable period of time and as verified by the Program Manager, or five percent (5 %), whichever is lower. The Program Manager may allow for greater increases in rent charges during any twelve (12) months reasonably justified by capital improvements or upgrades made to the subject rental units other than the installation of the Automatic Sprinkler System. 2.4 Borrower must submit a written statement to the Program Manager annually verifying that rents in the Eligible Building have not increased in violation of the Loan Agreement. The written statement shall be on a form provided by the Program Manager. 2.5 If the Program Manager determines that Borrower has breached the terms of this Loan Agreement, Borrower is entitled to an informal hearing before the City Manager or the City Manager's designee to provide evidence why a breach of this Loan Agreement has not occurred. Borrower must provide a request in writing to the City Clerk no later than fifteen (15) calendar days after the Program Manager's written determination. The determination of the City Manager (or the City Manager's designee) shall be final. 2.6 If Borrower breaches the terms of this Loan Agreement, the entire Loan with accrued interest shall be due in full within ninety (90) days of the City Manager's or his designee's final determination or within 90 days of the Program Manager's determination if no hearing is requested by Borrower pursuant to Section 2.5. 2.7 If Borrower performs and complies with all of the terms of this Loan Agreement, then at the end of the Loan Term, the City shall forgive the deferred balance of interest and principal, the City shall cancel the Promissory Note, and the City shall reconvey the Deed of Trust. 3. No Refinancing; No Junior Loans; Subordination. 3.1 No Refinancing. The City will not refinance the Loan. The Loan is a one -time assistance product to support Borrower in accomplishing the Project. 3.2 No Junior Loans. Mortgage loans or equity lines of credit junior in priority to the Deed of Trust are not permitted, unless expressly approved by the City in writing. 3.3 Subordinations: 3.3.1 All requests for the subordination of the Loan must be made in writing. The request for subordination must clearly state the reason for the request. The City will only consider requests for subordination under the following conditions: (a) The lien position of the City Loan will remain the same or be advanced. ATTY /RESO.3085 /CC RESO RWC FIRE SAFETY FIRST PILOT PROGRAM ATTACHMENT B- LOAN AGREEMENT REV: 07 -22 -15 VR Page 4 of 12 OAK #4815- 4791 -7093 v1