80A - HOUSING AND SUBORDINATION LOANS

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EXHIBIT 3 G. In connection with the Assignment, the parties desire to amend and restate said HOME Loan Agreements in order to: restate the terms of the HOME Loan Agreements; extend the Term of the HOME Loan Agreements, and to set all affordable rents at the Project based on Tax Credit Allocation Committee ("TCAC") rents, instead of the existing State of California Health and Safety Code rents, upon the termination of the HOME Compliance Period. H. On November 20, 2018, the City Council authorized the City Manager to execute a commitment letter to resubordinate the HOME Loan Agreements for the Cornerstone Apartments to tax-exempt multifamily bonds in an amount not to exceed $8,700,000. The City Council also authorized the City Manager to level all rents onsite at the 50% TCAC rents instead of the existing Health and Safety Code rents. No new HOME Program funds are being provided to the Project. I. On September 17, 2019, the City Council authorized the resubordination of the HOME Loan Agreements for the Cornerstone Apartments to a $17,250,000 construction loan, which will be reduced to $11,100,000 in connection with the conversion of the construction loan to a permanent loan. J. The Developer has received a new allocation of 4% low-income housing tax credits in order to resyndicate and recapitalize the Project and rehabilitate the 126 affordable rental units, as is typical after the 15 year TCAC compliance period. K. This Agreement and all of its attachments shall be enforceable by City in accordance with the terms thereof. Each of this Agreement, the Affordability Restrictions on Transfer of Property, the City/HOME Loan Note and the City/HOME Deed of Trust provide a means of enforcement by the City if Developer is in breach of its obligations hereunder and thereunder, including liens on the Property, use and deed restrictions and covenants running with the land [24 CFR 92.504 (c) (13)]. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, City and Developer agree as follows: DEFINITIONS AND INTERPRETATION 1.1 Defined Terms. All capitalized terms used herein, including, without limitation, in the Recitals above and in all other Project Documents, unless otherwise expressly defined, are defined where first used in this Agreement and/or as set forth in this Article 1. "Affordable Housing" means housing operated in accordance with the requirements of 24 CFR 92.252 and the rents governed by HUD. "Affordability Restrictions on Transfer of Property" means that certain document affecting real property benefiting the City, attached hereto as Exhibit F. "Affordable Rent" means the monthly rents that are set forth in more detail in Section 7 of this Agreement.