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Appropriation Adjustment, Density Bonus and Development Impact Fee Deferral <br />Agreement for FX Residences <br />December 7, 2021 <br />Page 4 <br />2 <br />2 <br />6 <br />3 <br />Term: fifty-five (55) years from the date of issuance of the Certificate of Occupancy <br />for the Project. <br />Terms of Repayment: Repaid from fifty percent (50%) of residual receipts (pro- <br />rata with payments due in connection with other financing provided) calculated by <br />taking the Annual Project Revenues from the Property for each year, less <br />deductions for Annual Operating Expenses. <br />Disbursement Schedule: 90 percent of the funds will be disbursed upfront for the <br />construction, with a 10 percent contingency. <br />Selection of Tenants: HomeAid shall give preference in leasing units to <br />chronically homeless individuals that live and/or work in the City of Santa Ana. <br />Staff in the Community Development Agency will monitor implementation of the <br />preference. <br />The Loan Agreement has been signed by HomeAid to acknowledge their acceptance of <br />the terms. <br />99-Year Ground Lease <br />The 99-year Ground Lease is attached as Exhibit 5. The 99-year Ground Lease is <br />between the Housing Authority (“Agency” and “Lessor”) and HomeAid as the “Tenant”. <br />In its simplest form, the Ground Lease binds the Housing Authority into a 99-year Ground <br />Lease with HomeAid to develop, manage and maintain the FX Residences Project on the <br />Housing Authority’s land at 801, 807, 809 and 809 ½ E. Santa Ana Blvd. The purpose of <br />the Ground Lease is to lease the parcels owned by the Housing Authority to HomeAid for <br />no more than 99 years from the date they receive their Certificate of Occupancy. <br />The following terms are incorporated into the 99-year Ground Lease: <br />Term: ninety-nine (99) years, commencing on the Effective Date of the lease, and <br />shall expire at 12:00 midnight Pacific Standard Time on the 99th anniversary of the <br />Commencement Date. The Effective Date is the date when the Tenant takes <br />possession of the property and is entitled to start construction. The <br />Commencement Date is the date when the Tenant receives their Certificate of <br />Occupancy. <br />Tenant accepts the parcel “as-is”. <br />Tenant shall pay to Housing Authority a base rent in the amount of one dollar <br />($1.00) per year. <br />Tenant shall pay directly to the taxing authorities all taxes required and utility costs. <br />Tenant shall construct and during the entire Term operate, maintain, replace and <br />repair the improvements upon the property for only the following required uses: