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Agreements for the Development of the Crossroads at Washington <br />June 21, 2022 <br />Page 4 <br />2 <br />7 <br />6 <br />6 <br />development costs. The Staff Report from August 17, 2021 is attached as Exhibit 3 and <br />the first amended and restated pre-commitment letter is attached as Exhibit 4. <br />After the City Council approves a pre-commitment of funding for an affordable housing <br />project, it takes a substantial amount of time for a developer to address all development <br />issues and secure their remaining sources of financing in their capital stack. After three <br />years since Related and ACOF received a pre-commitment of funding from the City, <br />Related and ACOF are prepared to close on their financing and begin construction of the <br />Project. <br />In order for Related and ACOF (the “Developer”) to develop the Crossroads at <br />Washington Project and in accordance with the first amended and restated pre- <br />commitment letter approved by the City Council on August 17, 2021, staff is <br />recommending approval of a Loan Agreement for $3,007,489 in HOME Investment <br />Partnerships Program funds, a Loan Agreement for $1,637,420 in Neighborhood <br />Stabilization Program (“NSP”) funds (which includes an additional award of $339,727 in <br />NSP funds), a Development Impact Fee Deferral Agreement, and two Subordination <br />Agreements with U.S. Bank, National Association and the County of Orange as senior <br />lenders. In addition, the following items are also required for this Project to move forward: <br />1) an award of eight additional project-based vouchers; 2) a revised joint sixty-five (65) <br />year Ground Lease; 3) a Land Use Covenant; and 4) an Equitable Community <br />Revitalization Grant Agreement. These various actions and Agreements are summarized <br />in detail below, followed by a description of the Project. <br />Loan Agreement – HOME Investment Partnerships Program Funds <br />The HOME Investment Partnerships Program Loan Agreement is attached as Exhibit 5. <br />The following loan terms are incorporated into the Loan Agreement: <br />Borrower: Washington Santa Ana Housing Partners, L.P., which is a California <br />limited partnership formed by Related and ACOF. <br />Loan Amount: $3,007,489 principal amount from the HOME Investment <br />Partnerships Program (the "HOME Program”) <br />Interest Rate: 3% simple interest per year <br />Term: Sixty-two (62) years from the date of issuance of the Certificate of <br />Completion for the Project. <br />Terms of Repayment: Repaid from twenty-four (24%) of residual receipts (pro- <br />rata with payments due in connection with other financing provided) calculated by <br />taking the Gross Revenues from the Property for each year, less deductions for <br />annual Operating Expenses.