3 - LOAN AGREEMENT FOR AMCAL_2018-01-16 (2)

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EXHIBIT 3 shall and will be restricted to households earning 60% or less of the AMI. One (1) Housing Unit will be rented to an on-site property manager; the manager's unit will not be rent restricted. (e) Loan Documents. Developer shall have delivered to the Escrow Holder, signed by the authorized officer or officers of Developer, with such signature(s) acknowledged where necessary, each of the following documents: (i) this Agency Loan Agreement; (ii) the Agency Promissory Note ($8,522,740); (iii) the Agency Deed of Trust; and (iv) the Affordability Restrictions on Transfer of Property. (f) Title Insurance. Agency shall have received an American Land Title Association (ALTA) Extended (LP -10) Loan Policy (6-17-06), or evidence of a commitment therefore satisfactory to Agency, issued by Commonwealth Land Title Insurance Company and in form and substance satisfactory to the Agency, together with all endorsements and binders required, naming Agency as the insured, in a policy amount of not less than the total Agency Loan Amount, showing Developer as the fee owner of the Property and insuring the Agency Deed of Trust to be a valid priority lien on the Property. This Agreement, the Agency Promissory Note, and the Agency Deed of Trust shall all be subordinate to the Senior Loan Note and Senior Loan Deed of Trust. (g) Affordability Restrictions on Transfer of PropertX. Developer shall have delivered to the Escrow Holder, in the form attached hereto as Exhibit B, the Affordability Restrictions on Transfer of Property pursuant to which, among other things, Developer agrees that the Property shall be used only for decent, safe, sanitary and affordable rental housing pursuant to the affordability requirements of California Health and Safety Code ("H&S") sections 50052.5 and 33334.3, as applicable. The Agency's Affordability Restrictions on Transfer of Property shall remain in first position on title and shall not be subordinated. (h) Documents Recorded. This Loan Agreement, the Agency Deed of Trust, and the Affordability Restrictions on Transfer of Property shall have been recorded in the Official Records of the County. (i) Request for Notice. For the benefit of the Agency, Escrow Holder shall have recorded a Request for Notice of Default of the Senior Loan (the "Request for Notice of Default"). 0) Insurance. Agency shall have received evidence satisfactory to the City Attorney that all of the policies of insurance required by Section 19 of this Agreement are in full force and effect. 10 3-20