Agmt25 SEC-Lenders Documents 2 - Loan Agreement

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LOAN AGREEMENT 417 Stambaugh Street, Redwood City, CA 94063 This Loan Agreement ("Agreement") is entered into as of June 06 , 2025, by and among the CITY OF REDWOOD CITY, a California municipal corporation ("City"), and - HEART -SV, a California Joint Powers Authority ("Borrower"). RECITALS A. Borrower is the owner of certain property known as 417 Stambaugh Street ("Development"), located at 417 Stambaugh Street in Redwood City, California, as more particularly described in Attachment No. 1 and depicted in Attachment No. 2, both incorporated herein by this reference. (the "Property") B. The Property is not currently subject to income restrictions for the rental units. Without the imposition of new affordability restrictions, it is likely that rents for the rental units in the Development will increase, resulting in the loss of affordable housing units. C. Borrower has requested a loan pursuant to the City's Affordable Housing Preservation Program, adopted by the Council on July 24, 2023 by Council Resolution No. 16165 as amended on August 26, 2024 by Council Resolution No. 16238 to finance a portion of the costs to acquire and conduct rehabilitation of the Property. In exchange for the City agreeing to make the requested loan, Borrower will record covenants against the Property that impose affordability restrictions on the rental of certain units within the Development as more specifically set forth herein. D. The City desires to make a loan pursuant to the Affordable Housing Preservation Program to support the acquisition and rehabilitation of affordable housing, a portion of which will serve low and extremely low income households, by financing a portion of Borrower's acquisition costs for the Property and requiring that a regulatory agreement be recorded against the Property that will ensure the designated affordable units are preserved as safe, quality, affordable housing in the City. E. The California Environmental Quality Act (Public Resources Code Sections 21000 et seq.) ("CEQA"), imposes no conditions on the City's consideration and approval of this Agreement, because funding of a proposal is not subject to environmental review under CEQA, as it does not constitute a "project," does not commit the City to a definite course of action, does not constitute discretionary approval of a specific project, and will not result in a direct or reasonably foreseeable indirect physical change in the environment, and in the alternative is exempt from CEQA. NOW, THEREFORE, City and Borrower hereby agree as follows: REV: 05-21-25 LF ATTY/AGR.2025.100/HEART-SV (417 Stambaugh St.) (Page 6 of 85)