RecDoc 2020-115102 Addendum to Loan Agmt

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Affordability Restriction Period"). In addition, for the first ten (10) years of the General Affordability Restriction Period (the "HOME Affordability Restriction Period"), one (1) two- bedroom unit in the Project (the "HOME Unit") is required to be occupied, or available for occupancy, by Very Low -Income Households at Affordable Rent. Following the HOME Affordability Restriction Period, the HOME Unit is required to be occupied, or available for occupancy by Low -Income Households at Affordable Rent for the remaining 45 years of the General Affordability Restriction Period. The foregoing restrictions are documented in the Loan Agreement and in that, certain Declaration of Affordability Covenants dated as of June 27, 2017, executed by Owner, and recorded in the Official Records on June 29, 2017 as Instrument No. 2017-055494 (the "Declaration"). E. The Parties desire to enter into this Agreement to clarify the requirements applicable to the Project and the Property in accordance with the HOME Program, and to satisfy the requirements set forth in 24 CFR 92.404(c)3). NOW THEREFORE, in consideration of the foregoing, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows. I - Incorporation of Recitals; Definitions; Community Housing Development Organization Funds. 1.1 Incorporation of Recitals. The Parties acknowledge the truth of the foregoing recitals, which are hereby incorporated into this Agreement by this reference. 1.2 Definitions. The following terms shall have the meanings set forth below whenever used in this Agreement and the Exhibits attached hereto. Additional terms are defined in the Recitals and text of this Agreement. "Actual Household Size" means the actual number of persons in the applicable household. "Adjusted for Family Size Appropriate for the Unit" shall be determined consistent with Section 50052.5(h) of the California Health and Safety Code, subject to the application of federal rules and regulations applicable to Project financing sources, if applicable. "Affordable Rent" for the HOME Unit means the Low HOME Rent during the HOME Affordability Restriction Period. For the HOME Unit after the end of the HOME Restriction, and for all other residential units throughout the General Affordability Restriction Period, "Affordable Rent" means a monthly rent that does not exceed one -twelfth of thirty percent (30%) of sixty percent (60%) of Area Median Income, Adjusted for Family Size Appropriate for the Unit, less a utility allowance and other fees and charges that tenants of the Project are required to pay on a non -optional basis. "Annual Report" is defined in Section 8.3. REV: 08-26-2020 PR ATTY/AGR 2020.168/HIP Housing Development Corporation (Page 2 of 31)