Agmt15 HIP Housing Development Corporation (HHDC) (Oxford Apts. Rehab)

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Exhibit C (Promissory Notej PROMISSORY NOTE $103,600.00 DATE: For value received, HIP Housing Development Corporation, a California Non-Profit Corporation (the "Owner"), hereby promises to pay to the City of Redwood City (the "City"), in United States currency, the principal sum of One Hundred Three Thousand Six Hundred Dollars and zero cents ($103,600.00), together with interest thereon, if applicable, as provided below. 1. HOME Investment Partnership Act (HOME) Funding Aqreement This Promissory Note ("Note") is entered into pursuant to that certain HOME Funding Agreement (the "Agreement") by and between the City and the Owner, dated , 2015. In the event of a conflict befinreen the provisions of this Note and the Agreement, the provisions of the Agreement will govern. Capitalized terms used in this Note will have meanings set forth in the Agreement unless otherwise defined herein. This Note is the "Promissory Note" as defined in the Agreement. 2. Securitv As security for payment of this Note, the Owner has granted to the City a deed of trust ("Deed of TrusY') on certain property located in the City of Redwood City and the improvements thereon as more fully described in the Agreement (the "Property"), which Deed of Trust will be subordinate only to such security instruments as are approved by the City in its sole discretion. 3. Repavment Provisions a. Except as set forth below, this Note shall be deferred of payments for a term of 30 years at zeropercent (0%) interest. b. Notwithstanding the foregoing, the full amount of the cumulative principal advanced under this Note, plus interest thereupon, shall become immediately due and payable upon a breach of the Agreement, this Note or the Deed of Trust, or the failure of the Owner to strictly abide by the provision of the Affordability Covenants (as defined in the Agreement) recorded against the Property and a faiture to cure such breach within the time set forth in the Agreement. In such event, the Owner shall repay the full amount of the principal under this Note together with three percent (3%) interest per annum on said principal from either the date of its advance or the date of Project Completion described in the Agreement, at the sole option of the City, until the date of repayment. ATTY/AGR/2015.165/HHDC Oxford Apts Rehabilitation REV:08-13-15 RL Page 26 of 35