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

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required, naming Agency as the insured, in a policy amount of not less than the total Agency Loan Amount, showing Developer as the fee owner of the Property and insuring the Agency Deed of Trust to be a valid priority lien on the Property. Notwithstanding the foregoing, this Agreement, the Agency Promissory Note, and the Agency Deed of Trust shall all be subordinate to the Senior Loan Documents. (g) Affordability Restrictions on Transfer of Property. Developer shall have delivered to the Escrow Holder, in the form attached hereto as Exhibit B, the Affordability Restrictions on Transfer of Property pursuant to which, among other things, Developer agrees that the Property shall be used only for decent, safe, sanitary and Affordable Housing pursuant to the affordability requirements of California Health and Safety Code (“H&S”) sections 50052.5 and 33334.3, as applicable. The Agency’s Affordability Restrictions on Transfer of Property shall remain in superior position to the Senior Loan Documents and shall not be subordinated. (h) Documents Recorded. The Agency Deed of Trust and the Affordability Restrictions on Transfer of Property shall have been recorded in the Official Records of the County. (i) Request for Notice. For the benefit of Agency, Escrow Holder shall have recorded a request for notice of default of the Senior Construction Loan Lender (the "Request for Notice of Default"). (j) Insurance. Agency shall have received evidence satisfactory to the City Attorney that all of the policies of insurance required by the Ground Lease are in full force and effect. (k) Representations and Warranties. The representations and warranties of Developer contained in this Agreement and the other Loan Documents shall be correct in all material respects as of the Close of Escrow as though made on and as of that date, and if requested by the City Project Manager, Agency shall have received a certificate to that effect signed by Developer's Representative. (l) No Default. No Event of Default by Developer shall have occurred, and no event shall have occurred which, with the giving of notice or the passage of time or both, would constitute an Event of Default by Developer under this Agreement, and if requested by the City Project Manager, Agency shall have received a certificate to that effect signed by Developer's Representative. (m) The Agency’s obligation to provide the Agency Loan is and shall remain subject to all covenants, conditions, and restrictions set forth in this Loan Agreement, and in particular Agency’s analysis of the available funding sources and development and operating costs of the Project and the overall economic feasibility of the Project. 4.2 Disbursement Procedures for Loan. The Agency Loan proceeds shall be disbursed through Escrow to finance the lease, development, construction, operation and management of the Project (as evidenced in the Project Budget, attached as Exhibit E). The EXHIBIT 4