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EXHIBIT 2 <br />Page 12 <br />City Loan: <br />The amount of the proposed City Loan has been determined based upon the City's review <br />of the Developer's request for the receipt of the City Assistance and the development <br />proforma and projected cash flows for the Project submitted by the Developer to the City <br />("Proforma"). The City Manager and Housing Authority Executive Director has authority to <br />approve revised development proformas and projected cash flows for the Project; provided, <br />however, that the City Assistance is not increased or extended. <br />The City Loan shall include the following terms: <br />$1,687,047 maximum principal amount, <br />acquisition costs to construct the Project, <br />the City of Santa Ana. <br />• 3% simple interest per annum. <br />or as much thereof as is disbursed for <br />funded from the HUD CDBG funds held by <br />Repayment from 50% of Residual Receipts (pro -rata with payments due in <br />connection with other financing provided by other public agencies) (after payment of <br />operating expenses, debt service, any deferred developer fee, and partnership fees <br />to be described in the Agreement) with the remaining 50% to be disbursed to the <br />Developer. <br />Remaining principal and accrued interest due upon the 55th anniversary of the <br />issuance of Certificate of Occupancy and/orfinal building permits or earlier upon sale, <br />refinancing or default. On that date, the City agrees to review the performance of the <br />property and consider in good faith any reasonable request by Developer to modify <br />the terms or extend the term of the City Promissory Notes. Additionally, the City will <br />receive a pro rata share of 50% of the net proceeds received from any sale or <br />refinancing of the Project, after payment of outstanding debt and payment in full of <br />any deferred developer fee and establishment of any reserves and transaction costs. <br />Cost savings from the Project, if any, will be applied first to pay down the City Loan, <br />subject to compliance with the Tax Credit Allocation Committee ("ICAC") <br />Regulations. <br />HUD-VASH PBV's: <br />The Project consists of eighty-nine (89) permanent supportive housing units to be made <br />available at affordable rents to HUD-VASH eligible homeless veterans for a term of fifty- <br />five (55) years. All homeless veterans shall be referred from the Veterans Affairs Medical <br />Center of Long Beach through the Orange County Coordinated Entry System, and are <br />residing or working in the City of Santa Ana as defined under the City's criteria. <br />FOODIMEA <br />