AgdaPkt 2003-03-24 - Laserfiche WebLink

Browse Search

ow i terms and/or conditions of their agreement with the Agency, Contractor shall pay to the Agency the sum of Five Hundred Thousand and 00/100 Dollars ($500,000.00). C. USE Contractor shall use 4 units in the Property exclusively for affordable rental housing. These 4 units shall be designated as Agency units and shall remain affordable for a period of not less than 30 years from the date of recordation of the Deed of Trust held by the Agency (the "Deed of Trust "). Location of said units shall be determined by Agency and Contractor in good faith prior to the funding of the Agency loan to the Contractor. If Contractor discontinues the above - stated use at the subject Property, or uses the Property or any portion thereof, for purposes other than what has been described in this Paragraph without first obtaining the prior written consent of the Agency, Contractor shall be in default of this Agreement and agrees to pay the Agency, upon demand, the full amount of the Agency Loan provided to assist in the rehabilitation of this property, provided however, that Contractor shall have Thirty (30) Days to cure the default after receipt of a Notice of default is provided in writing by Agency. The restrictions imposed upon the Property shall remain in full force and effect for the term of 30 years from the date of recordation of the Deed of Trust regardless of whether the Contractor's mortgage is paid off before its maturity date. D. STANDARD OF SERVICE Contractor warrants to City that it will use and account for all funds provided hereunder strictly in accordance with standards governing the use of, and accountability for, funds held and disbursed in trust. Contractor's program funded hereunder shall conform to the highest standards providing for programs of similar or like nature in the San Francisco Bay Area, and in conformance with Building Codes and Regulations. Contractor shall be responsible for, and hold City and Agency harmless from, any failure to adhere to such standards. Contractor shall verify that all activities funded hereunder benefit only residents within City's corporate limits. E. NONPROFIT STATUS OF CONTRACTOR Contractor agrees that the general partner of Contractor will maintain its status as a nonprofit corporation and that its failure to do so shall be grounds for termination of this Agreement, and acceleration of the Note. F. FORM OF SUBSIDY Financial assistance provided hereunder shall be in the form of a loan evidenced by a Promissory Note and secured by Deed of Trust. The principal amount of the loan shall be $500,000.00 with 0% interest, deferred over the 30 year affordability term. This loan shall be due and payable when the eligible use is no longer provided, upon sale or transfer of the Property or any part or portion thereof, or interest therein, or 30 years after the date of recordation of the Deed of Trust, whichever comes first. Nothing contained herein shall be construed to allow Contractor to discontinue the affordability requirements set forth in the Agreement for Funding and Exhibits thereto.. 3/3/2003 4