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This Affordable Housing Regulatory Agreement and Declaration of Restrictive <br />Covenants (this "Agreement") is entered into effective as of May 1, 2019 ("Effective Date") by <br />and between the City of Redwood City, a charter city and municipal corporation ("City") and <br />Redwood Oaks Associates II LP, a California limited partnership ("Owner"). The City and the <br />Owner are collectively referred to herein as the "Parties." <br />RECITALS <br />A. Owner is the owner of, or has the right to acquire, the real property located in the <br />City of Redwood City, San Mateo County, California, at 330-340 Redwood Avenue, and more <br />particularly described in Exhibit A attached hereto (the "Property"). <br />B. Developer intends to rehabilitate the existing 36 -unit multifamily residential <br />development located on the Property and construct certain new improvements including a <br />community center (collectively, the "Project") in accordance with that certain Affordable <br />Housing Loan Agreement (the "Loan Agreement') dated as of the date hereof and executed by <br />and between City and Owner. Capitalized terms used without definition herein shall have the <br />meaning ascribed to such terms in the Loan Agreement. <br />C. The Loan Agreement provides that the Restricted Units to be developed on the <br />Property will be required to be available to Eligible Households at Affordable Rents in <br />accordance with this Agreement for a period of not less than fifty-five (55) years. <br />D. Subject to the terms and conditions set forth in the Loan Agreement, to assist in <br />financing the development of the Project, City has agreed to provide a construction/permanent <br />loan to Owner in the original principal amount of Five Hundred Thousand Dollars ($500,000) to <br />be funded with HOME Funds and CDBG Funds. As a condition precedent to the funding of the <br />Loan, City requires the Project and the Property to be subject to the terms, conditions and <br />restrictions set forth herein. <br />E. Pursuant to the Loan Agreement, Owner shall execute and deliver to City a <br />Secured Promissory Note (the "Note") to evidence Owner's obligation to repay the Loan. The <br />Note shall be secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture <br />Filing that shall be executed by Owner for the benefit of City (the "Deed of Trust") and recorded <br />against the Property substantially concurrently herewith. In addition, Owner shall execute and <br />deliver to City an Amended and Restated Secured Promissory Note (the "Amended Note") to <br />evidence Owner's obligation to repay the loan previously provided by City in connection with the <br />development of the Property, and an Amended and Restated Deed of Trust (the "Amended Deed <br />of Trust") that will be recorded substantially concurrently herewith to secure repayment of the <br />Amended Note. <br />F. The purpose of this Agreement is to satisfy the affordable housing requirements of <br />the CDBG Program and the HOME Program, and to regulate and restrict the occupancy and rents <br />of the Project's Restricted Units for the benefit of the Project occupants. The Parties intend the <br />covenants set forth in this Agreement to run with the land and to be binding upon Owner and <br />Owner's successors and assigns for the full term of this Agreement. <br />2 <br />OAR #4820-8711-2085 v4 <br />ATTY/AGR.2019.148/Redwood Oaks Associates 11 LP - Regulatory Agreement <br />