Agmt17 HIP Housing Development Corporation Promissory Note

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exceed fees and reimbursements which are standard in the industry and pursuant to a management contract approved by the City (which such approval will not be unreasonable withheld); resident services; reserve fund that will be paid out of cash flow for the Project to allow the Owner to deposit into its reserve fund until it has reached the amount of $80,000 for project improvements; once the reserve fund threshold has reached an amount of $80,000, Owner shall notify City in writing and Owner's annual cash is to be deposited into a reserve for capital replacements of Project improvements in an amount of $400 per unit per year, provided any changes to the amount deposited into this replacement reserve will require City approval; any unpaid operating advances or loans made by Owner or affiliate thereof to fund operating expenses; cash deposited into an operating reserve for the Project and such other reserves as may be required by the Owner's senior lender; payments of any deferred developer fee; current and agreed partnership management fee and asset management fee, and debt service payments of loans in senior position to this loan. c. 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 failure to cure such breach within the time setforth 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 the date of this Note until the date of repayment. 4. Term The Term of this Note shall be fifty-five (55) years from the date of this Note, unless earlier terminated due to default by the Owner. 5. Breach of Agreements A failure to (i) strictly observe the Affordability Covenants, (ii) pay any sum provided for in this Note when due, or (iii) any other material default of this Note, the Deed of Trust which secures this Note, or the Agreement, which failure has not been timely cured within the period provided for herein or in the Agreement, shall constitute a breach of the Agreement and this Note, and any other agreements between the City and the undersigned, and shall entitle the City to declare all sums due hereunder immediately due and payable. AM/AGR/2017.145.2/ STAFFORD FUNDING AGREEMENT— PROMISSORY NOTE REV: 06-21-1715 Page 3 of 5