Reso25-02 0024 PC Reso 901 El Camino Real

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Page 12 of 39 funding partners and regulatory agencies, and as approved by the City in the manner set forth below. In addition, upon the City’s consent, which consent shall not be unreasonably withheld condition or delayed, if required to preserve the feasibility of the Affordable Development, certain provisions of the Affordable Housing Restrictive Covenant may be subject to suspension or a “standstill agreement” with the Qualified Designee’s lenders providing construction and permanent financing for the Project, as well as any refinancing of such loans; provided under no circumstances shall the affordability restrictions set forth in Article 2 of the Affordable Housing Restrictive Covenant are not suspended or otherwise limited. (b) If the Qualified Designee seeks to modify the affordability restrictions set forth in the Affordable Housing Restrictive Covenant, the City shall consider the Qualified Designee’s request as follows: (1) The Qualified Designee shall first submit a written request to the City that includes evidence that the feasibility, financing or funding requirements and conditions require a change in the affordability levels, such as by providing the City with an updated financing proposal or plan, in the same manner as set forth in Section 3.2 below. If the updated financing proposal or plan is approved by the City, the CityManager or designee shall provide a pre-approval letter to the Qualified Designee that authorizes lenders to consider the modified affordability restrictions; (2) Thereafter, the Qualified Designee shall submit its request for modified affordability restrictions that includes any funding commitment letters obtained by the Qualified Designee to the City, together with the updated financing proposal or plan. After receipt of the written request, financing documentation, and any other reasonable additional materials that the City deems necessary to consider the request, provided that the project includes no fewer than six (6) Very Low-Income Units and the remaining ninety-three (93) units do not exceed the affordability of a Low Income Unit, the City Manager shall have the authority to approve and execute an amendment to the Affordable Housing Restrictive Covenant, which approval shall not be unreasonably withheld, conditioned, or delayed. Once the City has received the written request and all requested materials, the City shall reasonably approve or disapprove the request in writing within forty-five (45) days of the City’s receipt of the request and records. ARTICLE 3. PRE-CLOSING REQUIREMENTS; CLOSE OF ESCROW Section 3.1 Pre-Closing Obligations. All obligations set forth in this Article are conditions precedent to the City’s approval of the Developer’s obligation to convey the Affordable Site to the Qualified Designee. The Qualified Designee shall have no obligation to accept the Land Donation unless the Developer has satisfied the conditions precedent set forth in this Article 3 in the manner set forth below and within the agreed upon timeframes. Section 3.2 Financing Proposal and Financing Plan. ATTY/RESO.0024/PC RESO 901 EL CAMINO REV: 04-11-25 VR