Item 16 - Affordable Housing Project at 801, 807, 809 and 809 ½ E. Santa Ana Blvd

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community room and a lounge area. Mercy House Living Centers (“Mercy House”) will manage the onsite manager. C. The City of Santa Ana (“City”) and the Housing Authority of the City of Santa Ana (“Housing Authority”) reviewed Developer’s request for assistance and at the City Council/Housing Authority meeting on January 15, 2019, the Housing Authority Board authorized and approved issuance of a conditional, pre-commitment letter evidencing the preliminary award of $1,069,947 of funds to the Project (“Agency Loan”), , to be funded exclusively from the Low and Moderate Income Housing Asset Fund (the “LMIHAF”) held by the Agency. D. The amount of the Agency Loan was determined based upon the City and Agency’s review of the Developer’s request for the receipt of the Agency Loan and the development proforma and projected cash flows for the Project submitted by the Developer to the City/Agency as of January, 2019 (“Proforma”). The Housing Authority’s Executive Director has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the Agency Loan is not materially increased or extended. E. Developer requested an additional $587,000 from the Agency in order to offset a portion of the additional construction costs associated with the Project due to the increased costs of labor and materials since January 15, 2019. The Agency desires to increase the pre- commitment letter to Developer in order to make possible the development and construction of the Project, thereby expanding the supply of decent, safe, sanitary and affordable housing within the City. F. In furtherance of the CRL and the Redevelopment Plan, Developer has applied to the Agency for a loan with which to: (1) Lease, develop and construct the Project, and (2) thereafter to maintain, operate and professionally manage the Project as decent, safe, sanitary and affordable rental housing. G. The Agency, on certain terms and conditions, desires to make such Agency Loan to Developer in order to make possible the lease, development, construction, ownership, maintenance and operation of the Project, thereby expanding the supply of decent, safe, sanitary and affordable housing within the City. H. If there is any inconsistency between State, and local guidelines with regard to any of the terms and conditions contained herein, the more stringent shall apply. I. The Agency Loan Agreement, Agency Deed of Trust, Agency Promissory Note and these Restrictions, dated concurrently herewith (collectively the "Agency Loan Documents") are entered into for the purpose of providing for affordable residential rental units in the City of Santa Ana pursuant to the Agency funds regulations and guidance. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, Agency and Developer agree as follows: EXHIBIT 4