4 - AMEND / RESTATE REGULATORY AMENDMENT_2018-12-18

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1 HUD RIDER TO RESTRICTIVE COVENANTS This RIDER TO RESTRICTIVE COVENANTS is made as of December 1, 2018, by LINC—Bristol Associates I, a California Limited Partnership (“Borrower”) and the Housing Authority of the City of Santa Ana, California, a public body, corporate and politic, duly organized and existing under the laws of the State of California (together with any successor to its rights, duties and obligations, “Issuer”). WHEREAS, Borrower has obtained financing from Red Mortgage Capital, LLC (“Lender”) for the benefit of the project known as City Gardens Apartments (“Project”), which loan is secured by a Multifamily Deed of Trust, Assignment of Leases and Rents and Security Agreement (“Securit y Instrument”) dated as of December 1, 2018, and recorded in the Official Records, Orange County, California (“Records”) prior hereto, and is insured by the United States Department of Housing and Urban Development (“HUD”); WHEREAS, Borrower has received tax-exempt bond financing from the Issuer, which Issuer has required certain restrictions be recorded against the Project; and WHEREAS, Borrower entered into that certain Amended and Restated Regulatory Agreement and Declaration of Restrictive Covenants to which this Rider is attached and made a part thereof (“Restrictive Covenants”) with respect to the Project, as more particularly described in Exhibit A attached hereto, dated as of December 1, 2018 and to be recorded in the Records; WHEREAS, HUD requires as a condition of its insuring Lender’s financing to the Project, that the lien and covenants of the Restrictive Covenants be subordinated to the lien, covenants, and enforcement of the Security Instrument; and WHEREAS, the Issuer has agreed to subordinate the Restrictive Covenants to the lien of the Mortgage Loan in accordance with the terms of this Rider. NOW, THEREFORE, in consideration of the foregoing and for other consideration the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: (a) In the event of any conflict between any provision contained elsewhere in the Restrictive Covenants and any provision contained in this HUD Rider, the provision contained in this Rider , the provision contained in this Rider shall govern and be controlling in all respects as set forth more fully herein. (b) The following terms shall have the following definitions: "Code" means the Internal Revenue Code of 1986, as amended. "HUD" means the United States Department of Housing and Urban Development. "HUD Regulatory Agreement" means the Regulatory Agreement between Borrower and HUD with respect to the Project, as the same may be supplemented, amended or modified from time to time. EXHIBIT 1 4-27