RecDoc 2019-047032 Assignment, assumption and loan mod

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4. Original Loan Proceeds. The parties each acknowledge and agree that: (i) prior to the date of this Agreement, all proceeds of the Original HOME Loan have been disbursed, and (ii) City has no obligation to disburse additional funds to any party pursuant to the Original HOME Loan Documents. 5. Modification of Loan Terms. The parties agree that as of the Effective Date, the terms of the Original HOME Loan shall be modified as follows: (i) the interest rate for the Original HOME Loan shall be the long-term Applicable Federal Rate (AFR) compounding annually, as published by the Internal Revenue Service for the month of June, 2019; (ii) the maturity date of the Original HOME Loan shall be extended to the date that is the earlier of (a) the fifty-fifth (55`h) anniversary of the date upon which the Project construction loan converts to permanent financing, and (b) the fifty-seventh (57`h) anniversary of the date hereof; and (iii) interest accrued under the Original Note through the date of this Agreement shall be added to the principal balance of the Original HOME Loan. 6. Limited Partner's Right to Cure. Assignee's limited partner shall have the right to cure any default of Assignee under the Original HOME Loan Documents as modified by this Agreement upon the same terms and conditions afforded to Assignee. City shall deliver notice of any default under the Original HOME Loan Documents to Assignee's limited partner at the address specified in Section 13.1 below concurrently with City's delivery of such notice to Assignee. Any cure tendered by a limited partner of Assignee shall be deemed to be a cure by Assignee and shall be accepted or rejected on the same basis as if tendered by Assignee. 7. Loan Documents. Assignee's obligation to repay the Original HOME Loan as modified pursuant to this Agreement shall be evidenced by an Amended and Restated Promissory Note ("Amended Note") that Assignee shall execute as of close of escrow for Assignor's acquisition of the Property ("Close of Escrow") and which shall replace and supersede the Original Note. Performance of Assignee's obligations under the Original HOME Loan Agreement as amended by this Agreement, and repayment of the Amended Note shall be secured by an Amended and Restated Deed of Trust ("Amended Deed of Trust") that Assignee shall execute as of Close of Escrow, which shall replace and supersede the Original Deed of Trust, and which shall be recorded against the Property at the Close of Escrow. 8. Affordability Restrictions. The parties agree that effective as of the Effective Date, the affordability restrictions pertaining to the Property shall be the restrictions set forth in the Year 2000 HOME Loan Agreement; provided however, as of the Close of Escrow, such affordability restrictions will be superseded and replaced by an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants ("Regulatory Agreement') that City and Assignee shall execute and record against the Property at the Close of Escrow. Assignee acknowledges that the Regulatory Agreement will require the Project to be restricted for occupancy by lower income households at affordable rents for a period of fifty-five (55) years. 9. Loan Agreement Remains Effective. Except as modified by this Agreement, the Original HOME Loan Agreement shall remain unchanged and in full force and effect. 10. Assignor Representations. Assignor represents and warrants to City and Assignee that: (i) Page 3 of 12 ` ATTY/AGR/2019.152 REDWOOD OAKS ASSOCIATES II LP — ASSIGNMENT AND LOAN MODIFICATION AGREEMENT REV: 05-30-19 VR