Res18 15644 - Laserfiche WebLink

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Households (the "Very Low Affordable Units"); and twenty-one of the units shall be remain continuously affordable for Extremely Low Income Households (the "Extremely Low Affordable Units"); and WHEREAS, the City's Consolidated Plan and Housing Element goals include assisting the development of housing that meets the needs of all socio-economic segments of the community; and WHEREAS, on February 12, 2018, the City Council of the City approved a loan in the amount of One Million One Hundred Thousand Dollars and no/100 ($1,100,000.00) of Affordable Housing Funds for Contractor refinancing of the Property; NOW, THEREFORE, the Parties hereby agree as follows: 1. FINANCIAL ASSISTANCE. City will allocate to Contractor the sum of One Million One Hundred Thousand and no/100 Dollars ($1,100,000.00) for exclusive use by Contractor, solely for the purposes described in Section 3. The financial assistance from the City shall be evidenced by a promissory note in favor of the City, in the form attached hereto as Exhibit "B" and incorporated herein by reference (the "Promissory Note') and secured by a deed of trust on the Property (the "Deed of Trust"), in the form attached hereto as Exhibit "C" and incorporated herein by reference. The Promissory Note shall provide that the loan shall accrue interest at three percent (3%) simple interest per annum and shall be for a term of fifty-five (55) years, except in the case of default as hereinafter provided. The Promissory Note shall also provide that (a) annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth therein; and (b) the entire outstanding principal balance of the loan, together with accrued interest, shall be payable in full at the end of the Loan Term, except in the case of a default as AM/AGR/2018.027/MID PEN MOSIAC GARDE NTS (ATHERTON COURT) REV: 02-06-18 JS Page 2 of 41