Item 13 - Affordable Housing Project at 1411 N Broadway

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Subordination Agreement (City of Santa Ana) Form 6456 Page 2 Fannie Mae 08-13 © 2013 Fannie Mae WISEPlace 4893-9038-0110v.4 4900000-002383 NOTE: NO CREDIT APPROVAL HAS BEEN RECEIVED. THIS IS NOT A COMMITMENT. C. The Senior Loan Agreement, the Senior Note, the Senior Security Instrument and all of the other “Loan Documents” (as defined in the Senior Loan Agreement) are collectively referred to herein as the “Senior Loan Documents”. D. Borrower has requested Senior Lender to permit that certain subordinate loan in the amount of ///[$5,256,327]/// (the “Subordinate Loan”) from Subordinate Lender to Borrower and to allow the Subordinate Loan to be secured by mortgage liens against the Mortgaged Property. The Subordinate Loan is being made pursuant to that certain HOME-American Rescue Plan (HOME-ARP) Loan Agreement dated as of March ___, 2023 (the “Subordinate Loan Agreement”), by and between Borrower and Subordinate Lender. The Subordinate Loan is evidenced by that certain City HOME-ARP Loan Note Secured By Subordinated Deed of Trust to the City of Santa Ana, California dated as of March ___, 2023 (the “Subordinate Note”), executed by Borrower to the order of Subordinate Lender in the face principal amount of ///[$5,256,327]/// and secured by that certain City HOME-ARP Deed of Trust and Assignment of Rents dated as of March ___, 2023 (the “Subordinate Mortgage”), executed by Borrower for the benefit of Subordinate Lender and recorded in the Official Records substantially concurrently herewith. In connection with the Subordinate Loan, Borrower and Subordinate Lender will also enter into that certain Affordability Restrictions on Transfer of Property dated as of March ___, 2023 (the “Unsubordinated City Regulatory Agreement”) and recorded in the Official Records substantially concurrently herewith. Borrower and Subordinate Lender also entered into that certain Density Bonus Agreement dated as of June 21, 2022 (the “Density Bonus Agreement”), by and between Borrower and Subordinate Lender and recorded in the Official Records on June 29, 2022 under Instrument No. 2022000231667. E. Senior Lender has agreed to permit the Subordinate Loan and to allow the subordinate mortgage liens against the Mortgaged Property subject to all of the conditions contained in this Agreement. AGREEMENTS: NOW, THEREFORE, in order to induce the Senior Lender to permit the Subordinate Lender to make the Subordinate Loan to Borrower and to place a subordinate mortgage lien against the Mortgaged Property, and in consideration thereof, Senior Lender, Subordinate Lender and Trustor agree as follows: 1. Recitals. The recitals set forth above are incorporated herein by reference. 2. Definitions. In addition to the terms defined in the Recitals to this Agreement, for purposes of this Agreement the following terms have the respective meanings set forth below: “Affiliate” means, when used with respect to a Person, any corporation, partnership, joint venture, limited liability company, limited liability partnership, trust or individual Controlled by, under EXHIBIT 4