Agmt13 Mental Health Association of San Mateo Co. (MHA)

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5. Amendment to Paraoraah 5. Standard of Service. The final sentence of Paragraph 5 of the Original Agreement, which states "Contractor will verify that all activities funded hereunder benefit only residents within City's corporate limits," is hereby deleted. 6. Amendments to Exhibit A (Program and Proiect Descriotion). (a) The second sentence of the third paragraph of Section 1 is hereby amended and restated in full as follows: "The developer anticipates the development will include approximately 16 rental units and estimates the initial occupancy will be in July 2018." (b) Section 3 is hereby amended and restated in full as follows: "Form of CDBG Subsidv - The CDBG financial assistance from the City as provided under this Agreement shall be evidenced by a Promissory Note(s) in favor of the City, in substantially the form attached hereto as Exhibit "C" (the "Promissory Note(s)") and secured by a deed of trust on the Property (the "Deed of Trust"), in the form attached hereto as Exhibit "D". The Promissory Note(s) shall provide that the loan will be at zero percent (0%) interest for fifty-five (55) years with principal and interest payments deferred for the Loan Term, except in the case of default, and shall be repaid in full at the end of the Loan Term, except in the case of a default, in which case repayment may be accelerated. The "Loan Term" shall be the date which is fifty-five (55) years from the date of Project Completion. Contractor shall not further encumber, subordinate, sell nor transfer title, nor take any other actions which would jeopardize the economic sustainability and affordability of the property being acquired, without the prior written consent of the City." (c) The first paragraph of Section 4 is hereby amended and restated in full as follows: "CDBG Affordabilitv Covenant Projects receiving CDBG funds must record on title a CDBG affordability covenant ("Covenant") or deed restriction ("Deed Restriction") that runs with the land and restricts household incomes and rents of CDBG assisted units such that the units remain continuously affordable to low income persons for a specified period of time. The term of said CDBG affordability restriction for this Project shall be fiftv-five (55) vears. The period of affordability becomes effective upon initial occupancy of CDBG assisted units notwithstanding that HUD defines Project Completion as the date when the final CDBG funds are drawn down and the City has entered project completion information into HUD's disbursement and information system." 7. No Other Modifications. Except as specifically modified herein, the Original Agreement shall be full force and effect and bind the parties hereto. To the extent that any provision of this Agreement conflicts with any provisions of the Original Agreement, this Agreement shall control. B. Miscellaneous. The individuals executing this Agreement and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Agreement. Paragraph headings and subparagraph headings as used herein are for convenience only and will not be deemed to alter or modify the provisions of the Paragraphs or subparagraphs headed thereby. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment the day and year first hereinabove written. REV: 04-07-17 JS Page 3 of 5 ATTY/AGR.Amend No. 2 /MHA Waverly Place Agrmt