Agmt25 CDBG Loan Agreement - Moreno

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NOW THEREFORE, for good and valuable consideration, the Parties agree as follows: Section 1. Incorporation of Recitals. The Parties acknowledge the truth of the foregoing Recitals, which by this reference are incorporated into this Agreement. Section 2. Loan, The Lender will provide a loan to Borrower in an amount not to exceed Fifty -Eight Thousand Forty -Seven Dollars ($ 58,047) (the "Loan") to finance the repair and rehabilitation of the Property in accordance with the Scope of Work attached hereto as Exhibit B and incorporated herein by this reference (the "Scope of Work"), which Scope of Work has been approved by Borrower, Habitat, and Lender. As more particularly described in the Promissory Note (defined below), the Loan will be forgiven over a five (5) year term, and will not accrue interest, so long as Borrower is not in default under the terms of the Loan Documents as defined below. Borrower will execute and deliver to the Lender a Promissory Note in the amount of the Loan, in a form provided by the Lender (the "Promissory Note"), and will execute a Deed of Trust and Security Agreement with Assignment of Rents, in a form provided by the Lender (the "Deed of Trust"), to secure Borrower's obligations, This Agreement, the Promissory Note, and the Deed of Trust are collectively referred to herein as the "Loan Documents." The Deed of Trust will be recorded against the Property concurrently with the closing of the Loan, to secure compliance with the Loan Documents, and repayment of the Loan upon the occurrence of a Default or Transfer of the Property (as defined below in Section 12). The Promissory Note and Deed of Trust are incorporated into this Agreement by reference. Section 3. Transfer. For purposes of this Agreement, "Transfer" shall mean any sale, assignment or transfer, voluntary or involuntary of any interest in the Property, including but not limited to a fee simple interest, a jointtenancy interest, a life estate, a leasehold interest, an interest evidenced by a land contract by which possession of the Property is transferred and Borrower retains title or a deed of trust. The following shall not constitute a Transfer provided the Borrower obtains the Lender's written approval prior to any such Transfer: (a) Transfer to a surviving joint tenant, who occupies or will occupy the Property, by devise, descent, or operation of law upon the death of a joint tenant (b) Transfer, in which the transferee is a person who occupies or will occupy the Property, and is a: (i) transfer to a spouse or domestic partner; or (ii) the addition of spouse or domestic partner to title where the spouse or domestic partner becomes the co-owner of the Property; or (iii) transfer between spouses as part of a marriage dissolution proceeding; or (iv) transfer to spouse or domestic partner or income -eligible heir apparent following death of the Borrower; or (v) transfer via an inter vivos trust in which the Borrower is the beneficiary. REV: 10-02-25 LF ATTY/AGR.2025.255/Habitat for Humanity (142 Center (Moreno) CDE{G Loan Agreement) (Page 2 of 21)