Item 13 - Affordable Housing Project at 1411 N Broadway

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EXHIBIT 3 6.10. Other Terms and Conditions of Loan. (a)The City/HOME-ARP Loan Note shall become immediately due and payable, in the event of any of the following: (i)failure to complete the Project within four (4) years of the Close of Escrow; (ii)the HOME-ARP Units fail to achieve initial occupancy within 12 months of the issuance of the Certificate of Completion; (iii) violation of any of the use covenants and restrictions contained in this Agreement after the expiration of any applicable notice and cure period; (iv) an Event of Default by Developer which is not timely cured after expiration of any applicable notice and cure period pursuant to the terms of this Agreement. 6.11. Closing Costs and Fees. Developer shall pay (a) all escrow fees and charges, (b) all recording fees and charges on any document recorded pursuant to this Agreement, and (c) the premium for the title insurance required hereunder. 6.12. Approval of Additional Financing. Except as to the Senior Loan, the loans secured by permitted encumbrances for the City Loan Deed of Trust and as otherwise described herein or in the policy of title insurance issued to the City at loan closing, the Developer shall not place or permit (either voluntarily or involuntarily) to be placed any encumbrances, including, but not limited to any additional liens or financing of any kind on the Project without the prior written discretionary consent of the City. 6.13. Cost Savings Obligation. (a)Subject to compliance with the Tax Credit Rules and the approval of the California Tax Credit Allocation Committee (“TCAC”), and further subject to any requirements of the HOME-ARP Program, Developer hereby agrees to provide and pay to the City the payment described in this Section 6.13 in connection with Cost Savings, if any, from the Project in an amount to be determined based on the “Audit” (as defined in Section 6.13(b) below and in accordance with 6.13) to be conducted upon completion of construction for the Project. Payment of the City Share of Cost Savings (defined below) shall be made at the time set forth therefore in Section 6.13(d) below. Provided that the payment is timely and fully made in accordance with Section 6.13(d), the amount paid for the City Share of Cost Savings shall be credited against the amount then outstanding on the City/HOME-ARP Loan Note. (b)Audit to Determine Cost Savings and City Share of Cost Savings. The actual amount of “Cost Savings” (as defined below) to be paid to the City and retained by the Developer shall be determined after the Audit, as hereafter defined and described, and the amount of such Cost Savings shall be equal to the amount by which the total sources of permanent financing for the Project exceed the costs of development incurred for the Project including without limitation payment of the Developer Fee (resulting amount constituting “Cost Savings”). From the total amount of Cost Savings, the Developer shall retain fifty percent (50%) and pay to City fifty percent (50%) (“City Share of Cost 14 WISEPlace Permanent Supportive Housing City HOME-ARP Loan Agreement