RecD05 2005-141296 - Laserfiche WebLink

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Fee Subsidy shall not exceed Five Hundred Thirty-Three Thousand Dollars ($533,OOO)without additional Agency approval for the additional amount. Repayment of the Development Loan and the Fee Subsidy shall be evidenced by a Promissory Note (the "Note")and secured by a deed of trust on the Property and the Project (the "Deed of Trust"). The Note and the Deed of Trust shall be substantially in the same form attached hereto as Exhibit "C" and "D", respectively. The Note shall provide that the Development Loan and Fee Subsidy will accrue at three percent (3%) simple interest and have a term of forty (40) years, except in the case of default as hereinafter provided. Further, the Note shall provide that the Development Loan and the Fee Subsidy shall be repaid on an annual basis, from seventy percent (70%) of the Project's Net Cash Flow, defined herein as gross receipts, less 1) actual operating costs; 2) actual property taxes; 3) actual debt service costs; 4) an annual reserve deposit of $35,000 per year (2005 $), escalated at 3% per year; 5) a $15,000 annual tax credit partnership management fee, escalated at 3% per year, until dissolution of the partnership; 6) a $5,000 annual asset management fee, escalated at 3% per year; 7) annual repayment of any deferred developer fee, i.e, any amount of the developer fee not paid for by the project's final permanent funding sources. The total amount of the developer fee shall be $1,474,751, or the maximum amount allowed by the California Tax Credit Allocation Committee, whichever is higher. In the event of a breach of this Agreement, the Affordability Covenants or the Redevelopment Covenants, as defined below, and after notice of such breach as set forth herein, and a failure to cure or commence curative or mitigating actions (if such cure reasonably requires in excess of the applicable cure period), the Development Loan and Fee Subsidy shall be deemed to have accrued interest at a rate of five percent (5%) per annum from the date that they were disbursed and shall be accelerated so as to be payable in full upon demand. If the Development Loan is disbursed in increments, each portion of the Development Loan advanced shall bear interest from the date of such advance. c. The Agency's duty to provide the Agency Assistance to the Developer, and to disburse the proceeds of the Development Loan as more fully set forth in Section 2.02(e) hereof, shall be expressly subject to the following conditions precedent: (1) The Developer shall have submitted to the Agency evidence reasonably satisfactory to the Agency that the Developer has obtained (i) firm commitments for the receipt of Multifamily Housing Program ("MHP") funds and of other adequate funding in amounts sufficient to fund the Project's development costs in excess of the amount of the Development Loan (collectively, the "Public Assistance"), and/or (ii) firm and fully 5 REDW\OO06\DOC\001-7 3/29/05 3:15 /rove