Agmt25 SEC-Lenders Documents 1 Promissory Note

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PROMISSORY NOTE 417 Stambaugh Street Principal Sum Not to Exceed $1,199,999 June 6 , 2025 Redwood City, California FOR VALUE RECEIVED, HEART -SV, a California Joint Powers Authority (the "Maker" or "Borrower"), having an address at 2905 S. El Camino Real, San Mateo, CA 94403, promises to pay the CITY OF REDWOOD CITY, a California municipal corporation ("Payee" or "City"), the principal sum not to exceed ONE MILLION ONE HUNDRED NINETY NINE HOUSAND NINE HUNDRED NINETY NINE DOLLARS ($1,199,999), or so much of such principal as may be advanced, together with interest thereon accruing from the date of this Note at a rate of 3% simple interest. 1. Purpose. This Note is made and delivered pursuant to and in implementation of the Loan Agreement entered into by and between City and Borrower, of even date herewith, which provides for the acquisition by the Maker of the Development described in Section 3 below. The term "Property" means that real property described in the Deed of Trust securing this Note. Capitalized terms used in this Note that are not defined herein have the meaning set forth in the Loan Agreement. 2. Securijy. Payment of this Note is secured by a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing of even date herewith (the "Deed of Trust") from Maker to Payee recorded upon the Property in the official records of San Mateo County. 3. Project. Maker will operate an affordable housing development on the Property located at 417 Stambaugh Street in the City of Redwood City, all as more fully described in the Loan Agreement (collectively, the "Development"). The Development includes eight (8) apartments units that have been constructed and are in operation on the Property. The Development includes (i) one (1) two-bedroom unit that will be available and rented to households whose income does not exceed the maximum income for Extremely Low Income Households (the "Extremely Low Income Unit"), (ii) Two (2) One -Bedroom units that will be available and rented to households whose income does not exceed the maximum income for Sixty Percent (60%) AMI Households (the "Sixty Percent AMI Units"), and (iii) One (1) One -Bedroom unit that will be available and rented to households whose income does not exceed the maximum income for Low Income Households (the "Low Income Unit "), as a condition of the making of this Loan by City. Additionally, the Development will include four (4) apartment units that will be available and rented to households whose annual incomes do not exceed the maximum income for Moderate Income Households. 4. Maturity Date. This Note shall be due and payable in full at the earlier of (i) sale of the Development by Borrower to a Person other than an Affiliate; (ii) an uncured Default under the Loan Agreement or (iii) fifty-five (55) years after the date hereof (the "Maturity Date"). REV: 05-07-25 LF ATTY/AGR.2025.100.1/HEART-SV (417 Stambauah - Promissory Note) (Pane 1 of 5)