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6. All housing units at the Project must pass Housing Quality Standard and the City's HOME <br />Property Standards (or other standards as applicable) inspections at the completion of <br />construction, as required by applicable HUD federal regulations at 24 CFR Part 92. <br />7. The HOME Loan Agreement will require that the Developer will not charge more than an <br />Affordable Rent (at the levels prescribed in the HOME Loan Agreement) for any housing <br />units at the Project. <br />8. The City's obligation to provide the HOME Loan to the Project is and shall remain subject <br />to all covenants, conditions, and restrictions set forth in the HOME Loan Agreement, and <br />in particular City's analysis of the available funding sources and development and <br />operating costs of the Project and the overall economic feasibility of the Project. <br />9. The Developer must remain a certified CHDO and the City must receive CHDO credit <br />from HUD for use of the funds. <br />In addition to the foregoing, notwithstanding any statement set forth in this letter or provisions of <br />the HOME Loan Agreement, the Developer and the City agree and acknowledge that the HOME <br />Loan Agreement will not constitute a commitment of federal funds, and that such commitment of <br />funds may occur only upon satisfactory completion of environmental review and receipt by City, <br />as applicable, for a release of funds from the U.S. Department of Housing and Urban Development <br />under 24 CFR Part 58. The Developer and the City will further agree in the HOME Loan <br />Agreement that the provision of any federal funds to the Project is and shall be conditioned on the <br />City's determination to proceed with, modify or cancel the loan based on the results of a <br />subsequent NEPA environmental review and the outcome of a Subsidy Layering Review. <br />The Developer and the City are further prohibited from undertaking or committing any federal <br />funds to physical or choice -limiting actions, including property acquisition, demolition, <br />movement, rehabilitation, conversion, repair or construction prior to the environmental clearance. <br />The Developer and the City understand that the violation of this provision may result in the denial <br />of any federal funds under the HOME Loan Agreement. <br />If you have any questions or require any additional information regarding this pre -commitment <br />letter, please contact Judson Brown, Housing Division Manager, by telephone at (714) 667-2241 <br />or by e-mail at ibrown n,santa-ana.ora. <br />Sincerely,/ <br />Cynthia Kurtz <br />Interim City Manager <br />City of Santa Ana <br />25L-7 <br />