RecDoc2023-000975 Harbor View Property LLC.

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herein as the ("Affordable Housing Properties"). The Affordable Housing Properties are depicted on the Affordable Housing Properties Map attached hereto as Exhibit C. Prior to the earlier to occur of. (1) the date which is 90 days from the Effective Date; or (2) issuance of the first grading permit for the Project, Developer shall convey fee simple title to the Affordable Housing Properties to the Non -Profit Affordable Housing Operator for a sales price not to exceed One Hundred and No/100 Dollars ($100.00). As a condition of the transfer of the Affordable Housing Properties, Developer shall require the Non -Profit Affordable Housing Operator to enter into an Affordable Housing Covenant with City for each of the Affordable Housing Properties, in a form substantially similar to that attached hereto as Exhibit F, to, among other things, ensure the permanent affordability of the 64 units for rental to ELI Households at an Affordable Rent and the provision of resident services. One of the 51 units located at the 36, 44 and 70 Renato Court Property shall remain market rate for use by the Affordable Housing Operator for its onsite manager. Developer shall ensure that title to the Affordable Housing Properties shall be free and clear of all title defects, liens, encumbrances, conditions, covenants, restrictions, or other such exceptions of record or known to Developer, except for incidental easements and liens for current, non -delinquent taxes and assessments and such other incidental exceptions, if any, as City may approve in its reasonable discretion, and Developer shall obtain any subordination agreements, deed of trust reconveyances or other documentation as necessary to remove any exceptions reasonably disapproved by City. Until such time as the Affordable Housing Properties have been conveyed to the Non -Profit Affordable Housing Operator, Developer shall maintain the Affordable Housing Properties in the condition existing as of the Effective Date, reasonable wear and tear excepted, and shall obtain and maintain fire casualty coverage in an amount equal to the full replacement cost of the building(s) and improvements located thereon. If a casualty occurs prior to the date of such conveyance, Developer, concurrently with the conveyance, shall pay to City (or, at City's option, the Non -Profit Affordable Housing Operator), all proceeds payable under the fire casualty policy, together with any deductible amounts thereunder, to facilitate reconstruction and/or repair of the damaged building(s) and improvements. In addition, at the time of transfer of the Affordable Housing Properties to the Non -Profit Affordable Housing Operator, Developer shall provide an amount equal to One Hundred Thousand Dollars ($100,000) to assist the Non -Profit Affordable Housing Operator with the payment of monitoring fees required by the Affordable Housing Covenant. B. First Time Homebuyers Loan Program. Developer shall pay to City (or City's affordable housing -related designee) Five Hundred and Fifty Thousand Dollars ($550,000), plus the product of $550,000 times the percentage increase in CPI between the Effective Date and the date on which such payment is made, which funds City shall use or transfer to a third -party for a First Time Homebuyer's Loan Program ("First Time Homebuyer Loan Contribution"). Developer shall make the First Time Homebuyer Loan Contribution to City prior to the issuance of the first office building permit for the Project. C. Affordable Housing Contribution. In addition to paying the Housing Impact Fee payable with respect to the Project, as set forth in Section 6.1A below, Developer shall pay to City Two Million Five Hundred Thousand Dollars ($2,500,000) plus the product of $2,500,000 times the percentage increase in the CPI between the Effective Date and the date on which such payment is made ("Affordable Housing Contribution"), which funds City shall use for the creation of affordable housing in the City. Developer shall make the Affordable Housing ATTY/AGR/2022.389/HARBOR VIEW PROJECT DEVELOPMENT AGREEMENT REV: 10-28-2022 VR 9