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<br />EXHIBIT B <br /> <br />PROMISSORY NOTE <br />Secured by a Deed of Trust <br /> <br />(This Note contains an acceleration clause) <br /> <br />$241,400.22 <br /> <br />Redwood City, California <br /> <br />Januar¡1~o02 <br /> <br />FOR VALUE RECEIVED, Housing Association for the Needy and Dispossessed, Inc., <br />("HAND"), of San Mateo, a California nonprofit benefit corporation and Community <br />Housing Development Organization (CHDO) ("Payor") promises to pay to the City of <br />Redwood City ("Payee"), a Municipal Corporation of the State of California, or order, at <br />1017 Middlefield Road, Redwood City, California, or any place Payee may designate, <br />the sum of TWO HUNDRED FORTY ONE THOUSAND, FOUR HUNDRED AND <br />221100 DOLLARS ($241,400.22), as provided in that certain "AMENDED <br />AGREEMENT WITH HOUSING ASSOCIATION FOR THE NEEDY AND <br />DISPOSSESSED, INe. (HAND) TO REHABILITATE REDWOOD OAKS <br />APARTMENTS AT 330-340 REDWOOD AVENUE" ("Agreement"), between the <br />CITY OF REDWOOD CITY and HAND. <br /> <br />The parties hereto acknowledge that the interest rate set forth herein is lower than <br />prevailing market rates in order to encourage the rehabilitation of affordable rental <br />housing, and that the loan for which this note is written is being made for the purpose of <br />assisting HAND of San Mateo with the rehabilitation of an existing multifamily <br />apartment building (the "Property") at 330-340 Redwood Avenue, Redwood City, <br />containing 36 residential units, of which 11 units are designated as HOME units under <br />this agreement. The loan amount, $241,400.22, is from the City's HOME CHDO <br />Setaside funds from program years 1996, 1998, 1999 and 2000. <br /> <br />This Note is for a term of Thirty (30) Years from January 4, 2002 (the "Effective <br />Date"). This Note is secured by a Deed of Trust of even date. The Note and Deed of <br />Trust shall be executed prior to any disbursement of funds under the Agreement. <br /> <br />Interest: The principal amount under this Note shall bear simple interest at the rate of <br />3% per annum. Principal and interest shall be due and payable when the eligible use <br />specified in this agreement is no longer provided, upon sale, transfer or further <br />encumbrance of the Property, or 30 years from the Effective Date, whichever comes <br />first. <br /> <br />- 1 - <br />