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

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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. F. 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. G. 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. H. 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. I. 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. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, Agency and Developer agree as follows: 1. DEFINITIONS AND INTERPRETATION 1.1 Defined Terms. All capitalized terms used herein, including, without limitation, in the Recitals above and in all other Project Documents, unless otherwise expressly defined, are defined where first used in this Agreement and/or as set forth in this Article 1. “Adjusted for family size appropriate to the unit" shall have the meaning set forth by Health and Safety Code Section 50052.5(h). "Affordability Restrictions on Transfer of Property" means that certain document affecting real property benefiting the Agency, attached hereto and incorporated herein as Exhibit B. "Affordable Housing" means the total housing costs paid by a qualifying household, which shall not exceed the fraction of gross income specified, as follows, in accordance with Sections 50052.5 and 50053 of the Health & Safety Code and the U.S. Department of Housing and Urban Development (HUD): EXHIBIT 4