Item 03 - Affordable Housing Project at 801, 807, 809 and 809 ½ E. Santa Ana Blvd.

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Loan Agreement and Ground Lease Agreement for FX Residences December 7, 2021 Page 4 2 2 6 4 Term: fifty-five (55) years from the date of issuance of the Certificate of Occupancy for the Project. Terms of Repayment: Repaid from fifty percent (50%) of residual receipts (pro- rata with payments due in connection with other financing provided) calculated by taking the Annual Project Revenues from the Property for each year, less deductions for Annual Operating Expenses. Disbursement Schedule: 90 percent of the funds will be disbursed upfront for the construction, with a 10 percent contingency. Selection of Tenants: HomeAid shall give preference in leasing units to chronically homeless individuals that live and/or work in the City of Santa Ana. Staff in the Community Development Agency will monitor implementation of the preference. The Loan Agreement has been signed by HomeAid to acknowledge their acceptance of the terms. 99-Year Ground Lease The 99-year Ground Lease is attached as Exhibit 5. The 99-year Ground Lease is between the Housing Authority (“Agency” and “Lessor”) and HomeAid as the “Tenant”. In its simplest form, the Ground Lease binds the Housing Authority into a 99-year Ground Lease with HomeAid to develop, manage and maintain the FX Residences Project on the Housing Authority’s land at 801, 807, 809 and 809 ½ E. Santa Ana Blvd. The purpose of the Ground Lease is to lease the parcels owned by the Housing Authority to HomeAid for no more than 99 years from the date they receive their Certificate of Occupancy. The following terms are incorporated into the 99-year Ground Lease: Term: ninety-nine (99) years, commencing on the Effective Date of the lease, and shall expire at 12:00 midnight Pacific Standard Time on the 99th anniversary of the Commencement Date. The Effective Date is the date when the Tenant takes possession of the property and is entitled to start construction. The Commencement Date is the date when the Tenant receives their Certificate of Occupancy. Tenant accepts the parcel “as-is”. Tenant shall pay to Housing Authority a base rent in the amount of one dollar ($1.00) per year. Tenant shall pay directly to the taxing authorities all taxes required and utility costs. Tenant shall construct and during the entire Term operate, maintain, replace and repair the improvements upon the property for only the following required uses: o multifamily affordable housing, and appurtenant improvements, including, without limitation, parking; o permanent supportive housing units and related services; and o related commercial and community-serving uses, as approved by the Lessor.