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ATTY/AGR/2017.145/ STAFFORD FUNDING AGREEMENT <br />REV: 06-21-17 JS <br />Page 20 of 41 <br />Total Acquisition Cost: $3,424,292 <br />Sources: <br />Boston Private Bank $1,000,000 <br />Redwood City – Affordable Housing <br />Fund <br />$1,099,000 <br />Redwood City - CDBG $289,750 <br />Redwood City - HOME-CHDO $189,000 <br />County of San Mateo - AHF $600,000 <br />Contractor $246,542 <br /> <br /> <br />3. Use: Contractor shall use the Property exclusively for providing affordable rental <br />housing for Very Low Income Households and Low Income Households and commercial <br />use of the commercial space subject to the terms of the Affordability Covenants. If <br />Contractor discontinues these stated uses at the subject Property, or uses the Property <br />or any portion thereof, for purposes other than what has been described in this paragraph <br />without first obtaining the prior written consent of the City, Contractor shall be in default <br />of this Agreement and agrees to pay the City, upon demand, the full amount of the <br />Redwood City financial assistance provided to assist in the acquisition of the Property, <br />provided however Contractor shall have sixty (60) days to cure the default after receipt of <br />a notice of default is provided in writing by the City. The restrictions imposed upon the <br />Property as set forth in this paragraph shall remain in full force and effect for the term of <br />the Loan regardless of whether the loan is paid off before its maturity date. <br /> <br />4. Form of City Financial Subsidy: The loan of the Funds provided under this <br />Agreement shall be evidenced by the Promissory Note in favor of the City and secured <br />by the Deed of Trust. During the Loan Term, Contractor shall not further encumber, <br />subordinate, sell, nor transfer title in the Property, nor take any action that would <br />jeopardize the economic sustainability and affordability of the Property being acquired, <br />without the prior written consent of the City. <br /> <br />5. Environmental Review: City and Contractor shall conduct the necessary <br />environmental review consistent with NEPA and CEQA regulations to commit and <br />disburse funds under this Agreement. <br /> <br />6. Affirmative Marketing: The Project must comply with affirmative marketing <br />responsibilities that meet federal and state requirements. Contractor shall submit an <br />affirmative marketing plan to the City prior to disbursement of funds under this Agreement. <br /> <br />7. Leases, Tenant Protection and Selection: Contractor must adhere to a fair lease, <br />tenant selection and grievance procedure and must provide a plan for and follow a <br />program of tenant participation in management decisions. Said plan shall be submitted <br />to the City prior to or at the time Contractor signs this Agreement. Contractor shall adopt <br />written tenant selection policies and criteria that are consistent with the purpose of <br />providing housing for Very Low Income Households and Low Income Households; are <br />reasonably related to program eligibility and the applicants’ ability to perform the <br />obligations of the lease; provide for the selection of tenants from a written waiting list in <br />6.3.E. - Page 32