Mercy House Community Housing Development Organization

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Page 13 • Repayment from 50% of Residual Receipts (pro-rata with payments due in connection with other financing provided by other public agencies) (after payment of operating expenses, including social services expenses and monitoring fees, debt service, any deferred developer fee, and partnership fees to be described in the Agreement), with the remaining 50% to be disbursed to the Developer. o Any repayments to the soft loans must be based on the pro rata share of all the soft loan balances (the same as the residual receipts splits). The Developer will request a different term for their Rising Tide Loan to match the other terms of their soft debt. • Remaining principal and accrued interest due upon the 55th anniversary of the issuance of Certificate of Occupancy or earlier upon sale, refinancing or default. On that date, the City agrees to review the performance of the Property and consider in good faith any reasonable request by Developer to modify the terms or extend the term of the City Promissory Notes. Additionally, the City will receive 50% of the net proceeds received from any sale or refinancing of the Project in order to repay any outstanding principal or interest due on the City Promissory Notes, after payment of outstanding conventional debt and payment in full of any deferred developer fee and establishment of any reserves and transaction costs. • Cost savings from the Project, if any, will be applied first to pay down the City Assistance, subject to compliance with the Tax Credit Allocation Committee ("TCAC") Regulations and California Health and Safety Code, as applicable. • After all other funding sources have been secured through enforceable funding commitments, a HOME Subsidy Layering Review is required in order to confirm the amount of HOME funds committed to the Project. • An environmental review in compliance with the National Environmental Policy Act is required prior to entering into a Loan Agreement for the HOME funds committed to the Project. The HOME Loan shall also require specific HOME designated units in the Project. Based on a preliminary HOME Cost Allocation Analysis, the City must designate at least nine (9) units in the Project as HOME assisted -units per the following preliminary unit mix: • Three (3) one -bedroom units; • One (1) two -bedroom unit; • Three (3) three -bedroom units; and, • Two (2) four -bedroom units. As least 20% of the HOME designated units must be designated as Low HOME units, This equates to two (2) Low HOME units based on a nine (9) unit HOME requirement. One (1) of the one -bedroom units and one (1) of the four -bedroom units will be designated as the Low HOME units. The remainder of the HOME designated units can be restricted