FULL AGENDA PACKET_2021-03-02 - Laserfiche WebLink

Home Browse Search

EXHIBIT 3 At the City Council / Housing Authority meeting on March 2, 2021, the City Council and Housing Authority Board authorized and approved issuance of an extension of thispre- commitment letterto March 2, 2023. This letter shall evidence the City-commitment of the CityAssistance to the Developer for the Project subject to the conditions described below. CityLoan: The amount of the proposed CityLoan has been determined based upon the City of the Developer's request for the receipt of the CityAssistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City City Manager and Housing Authority Executive Director hasauthority to approve revised development proformas and projected cash flows for the Project; provided, however, that the CityAssistance is not increased or extended. The CityLoanshall includethe following terms: $1,687,047 maximum principal amount, or as much thereof as is disbursed for acquisition costs to construct the Project,funded from the HUDCDBG fundsheld by the City of Santa Ana. 3% simple interest per annum. 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, 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. Remaining principal and accrued interest due upon the 55th anniversary of the issuance of Certificate of Occupancy and/or final building permits 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 Developerto modify the terms or extend the term of the CityPromissory Notes. Additionally, the Citywill receivea pro rata share of50% of the net proceeds received from any sale or refinancing of the Project, after payment of outstanding 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 Loan, Regulations. lien and regulatory agreement pursuant to the City Loan will be subordinated pursuant to an approved subordination agreement, in conformance Affordable Housing Funds Policies and Procedures. In the event title to the Property is transferred as a result of a foreclosure, or in the event the HAP contract is terminated, reduced or not renewed for a reason other than