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EXHIBIT B <br /> <br /> PROMISSORY NOTE <br /> Secured by a Deed of Trust <br /> (This Note contains an acceleration clause) <br /> <br /> $258,974.00 Redwood City, Califomia December ,2002 <br /> <br /> FOR VALUE RECEIVED, MP Redwood Court Associates, a California Limited <br /> Partnership of Redwood City, ("Payor") promises to pay to the City of Redwood <br /> 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 <br /> designate from time to time in wdting, the sum of Two Hundred, Fifty Eight <br /> Thousand, Nine Hundred seventy Four and No/100 Dollars ($258,974.00), as <br /> provided in that certain "AGREEMENT WITH MP REDWOOD COURT <br /> ASSOCIATES FOR FUNDING TO REHABILITATE REDWOOD COURT <br /> APARTMENTS"("Agreement"), between the CITY OF REDWOOD CITY and MP <br /> Redwood Court Associates dated December 2002. <br /> <br /> The parties hereto acknowledge that the interest rate set forth herein is lower <br /> than prevailing market rates in order to encourage the rehabilitation of affordable <br /> rental housing, and that the loan for which this Note is written is being made for <br /> the purpose of assisting MP Redwood Court Associates with the rehabilitation of <br /> an existing affordable multifamily housing development (the "Property") at 622 <br /> Chestnut & 635 Spruce Street, Redwood City, containing 27 residential units, of <br /> which 11 units will be assisted under the Agreement - 20% or five (5) of the 27 <br /> units are designated as HOME units affordable to households earning 50% or <br /> less of Area Median Income (AMI) and the remaining 6 units shall be affordable <br /> to households earning 60% or below AMI under this agreement. The loan <br /> amount, $258,974.00, is from the City's HOME entitlement funds frOm program <br /> years 2002-2003. <br /> <br />This Note is secured by a deed of trust (the "Deed of Trust") of even date with <br />Power of Sale encumbering the Property and is for a term of Thirty (30) Years <br />from the date of recordation of the Deed of Trust. The Note and Deed of Trust <br />shall be executed prior to any disbursement of funds under the Agreement. <br /> <br />The principal amount under this Note shall bear no (0%) interest. The term of <br />this loan shall be for the earlier of (a) 30 years from the date of recordation fo the <br />Deed of Trust; (b) when the eligible use specified in the Agreement is no longer <br />provided; (c) upon sale or transfer of the Property or any part or portion thereof, <br />or interest therein. Principal shall be deferred for the full thirty year term. <br /> <br />F:Atty/Agr/Agr.083 <br />121002 18 <br /> <br /> <br />