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ATTY/RESO.0020/CC RESO APPROVING AMENDMENTS TO HPP GUIDELINES – EXHIBIT B REV: 05-04-26 LF Page 6 of 86 LOAN AGREEMENT (Insert Name and/or Address of Project) This Loan Agreement (“Agreement”) is entered into as of _________________, 20__, by and among the CITY OF REDWOOD CITY, a California municipal corporation (“City”), __________________, a _____________________ (“Borrower”). RECITALS A. Borrower [seeks to acquire/is the owner of] certain property known as [Insert Name of Development] (“Development”), located at [Insert Address] 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 [For Acquisition/Rehab:] [is not currently subject to income restrictions for the rental units] [For Expiring Covenants:] [is subject to certain affordable housing restrictions that are scheduled to expire in not more than five (5) years]. 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 [For Acquisition/Rehab:] [to finance a portion of the costs to acquire and conduct rehabilitation of the Property] [For Expiring Covenants:] [as consideration for Borrowers agreement to consent to affordability restrictions to be impose against 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 [For Acquisition/Rehab:] [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 [For Expiring Covenants:] [preserve the Property as Affordable Housing by] 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.