FULL AGENDA_2018-12-18 (2) - Laserfiche WebLink

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EXHIBIT 1 WHEREAS, upon retirement of the Bonds and discharge of the Indenture as described above, the Trustee ceased to act in the capacity of trustee and, in accordance with the terms of the Indenture and the Original Regulatory Agreement, the Trustee shall no longer have any duties or responsibilities under this Regulatory Agreement and all references to the Trustee in this Regulatory Agreement shall be deemed references to the Issuer, with the result that the Trustee's written consent is not required in connection with the amendment of the Original Regulatory Agreement by this Regulatory Agreement and that this Regulatory Agreement shall become effective upon execution by the Borrower and the Issuer, and shall thereafter be duly recorded in the real property records of the County (as hereinafter defined); and WHEREAS, the Borrower has arranged for a loan to be made by Red Mortgage Capital, LLC, a Delaware limited liability company, and to be insured by the United States Department of Housing and Urban Development, to the Borrower (the "Red Capital Loan") to refinance the Project, including by retiring the Fannie Mae Loan; and WHEREAS it is a condition to funding of the Red Capital Loan that the Issuer and the Borrower enter into this Regulatory Agreement, including the HUD Rider attached hereto and made a part hereof; and WHEREAS, to satisfy the public purposes for which the Bonds were issued, and to satisfy the purposes of the Issuer in determining to issue the Bonds, certain limits on the occupancy of units in the Project need to be established and certain other requirements need to be met; NOW, THEREFORE, in consideration of the issuance of the Bonds by the Issuer and the mutual covenants and undertakings set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Issuer, the Trustee and the Borrower hereby agree as follows: Section 1. Definitions and Interpretation. Capitalized terms used herein shall have the respective meanings assigned to them in this Section 1 unless the context in which they are used clearly requires otherwise: "Act" means Chapter 1 of Part 2 of Division 24 of the Health and Safety Code of the State of California as now in effect and as it may from time to time hereafter be amended or supplemented. "Adjusted Income" means the adjusted income of a person (together with the adjusted income of all persons of the age of 18 years or older who intend to reside with such person in one residential unit) as calculated in the manner prescribed pursuant to Section 8 of the United States Housing Act of 1937, or, if said Section 8 is terminated, as prescribed pursuant to said Section 8 immediately prior to its termination or as otherwise required under Section 142 of the Code and the Act. "Affordable Rent" or "Rents" means monthly rent not in excess of 30% of one -twelfth of 40% of the annual Median Income for the Area, less a utility allowance for electricity only as approved by the Issuer, based upon the following assumed household sizes for the following sizes of dwelling units in the Project: Assumed Number of Persons in Size of Units Household for Low Income Units 2 M Affordable Rent Less Approved Utility Allowance (monthly as of 11/1/06)