Agmt17 HIP Housing Funds to Acquie 1512 Stafford

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WHEREAS, on April 24, 2017 the City Council of the City approved Two Hundred Eighty -Nine Thousand Seven Hundred Fifty Dollars and no/100 ($289,750.00) in CDBG funds for Contractor acquisition of the Property; and WHEREAS, on April 24, 2017 the City Council of the City approved One Hundred Eighty -Nine Thousand Dollars and no/100 ($189,000.00) in HOME funds for Contractor acquisition of the Property; and WHEREAS, on A.fP V 2t , 2017, the City Council of the City approved a loan in the amount of One Million Ninety Nine Thousand Dollars and no/100 ($1,099,000.00) of Affordable Housing Funds for Contractor acquisition of the Property; NOW, THEREFORE, the Parties hereby agree as follows: 1. FINANCIAL ASSISTANCE. City will allocate to Contractor the sum of One Million Five Hundred Seventy -Seven Thousand, Seven Hundred Fifty and no/100 Dollars ($1,577,750.00) for exclusive use by Contractor, solely for the purposes described in Paragraph 3. The financial assistance from the City shall be evidenced by a promissory note in favor of the City, in the form attached hereto as Exhibit "C" and by this reference incorporated herein (the "Promissory Note") and secured by a deed of trust on the Property (the "Deed of Trust'), in the form attached hereto as Exhibit "D" and by this reference incorporated herein. The Promissory Note shall provide that the loan shall accrue interest at three percent (3%) simple interest per annum and shall be for a term of fifty-five (55) years, except in the case of default as hereinafter provided. The Promissory Note shall also provide that (a) annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth therein; and (b) the entire outstanding principal balance of the loan, together with accrued interest, shall be payable ATTY/AGR/2017.145/ STAFFORD FUNDING AGREEMENT REV: 06-21-17 JS Page 3 of 41