80A - AGMT WITH HABITAT FOR HUMANITY

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Conditional Grant Agreement, Affordability Restrictions, and Ground Leases November 17, 2020 Page 3 obligations after they sell the homes and begin acting as the Lessor's agent for enforcing the Ground Lease and Affordability and Maintenance restrictions. In its simplest form, the Ground Lease binds the Agency into a 99-year Ground Lease with Habitat for Humanity to develop, maintain and operate the Lacy Street affordable housing project. There is one Ground Lease agreement for the 416 Vance Street parcel and a second agreement for the 826 N Lacy Street parcel (Exhibit 5 and 6). The following is a list of key terms agreed upon in the 99-year Ground Leases: • Term: The Term of the Lease is for ninety-nine (99) years beginning on the date of the Agreement. The Tenant accepts the premises "as -is". • Rent: The base rent for the lease of the properties is one dollar per year. Tenant shall pay directly to the taxing authorities all taxes required and utility costs. • Use of Premises: Tenant shall construct, operate, maintain, replace, and repair the improvements on the properties only for the following uses: o Single-family affordable housing restricted to and affordable to qualifying moderate income families (up to 120% of Area Median Income) or below; and o Related community -serving uses as needed for the siting of the affordable housing units. • The Agency and their authorized representatives may enter the premises upon two (2) business days' prior written notice to Tenant in order to determine whether Tenant is complying with Tenant's obligations or to enforce any rights given to Agency under the Lease. • Throughout the Term of the Lease, Tenant shall, at Tenant's sole cost and expense, keep and maintain the premises and any and all Improvements now or hereafter constructed and installed on the premises in good order, condition and repair. • In the event the whole or any part of the Improvements shall be damaged or destroyed by fire or other casualty, damage or action of the elements which is fully covered by insurance required to be carried by Tenant pursuant to this Lease or in fact caused by Tenant, at any time during the Term, Tenant shall with all due diligence, at Tenant's sole cost and expense, repair, restore and rebuild the Improvements on substantially the same plan and design as existed immediately prior to such damage or destruction and to substantially the same condition that existed immediately prior to such damage. • Tenant will purchase all required insurance at Tenant's expense and provide active certificates of insurance, including all endorsements required by the Agency. Project Description Habitat for Humanity is a non-profit organization specializing in the construction of affordable homes for purchase by qualifying families. Since 1988, the Orange County affiliate has completed and sold 219 new homes in its service area. Thirty of those homes have been built in the City of Santa Ana. The project location is at the SW corner of Lacy and Vance Streets and is composed of two single-family lots within the "Historic French Park" community. Construction will consist of two (2) single-family detached homes. The design and construction of the homes will reflect the architectural elements and finishes that are present in the French Park community. Habitat for Humanity will construct two distinct floor plans for this project whose sizes are proportionate to the approximately 7,500 sq. ft. lots on which they will be built. With these requirements in mind, Habitat will construct the following: • I .