Item 21 - Affordable Housing Project at 1108 N. Harbor Blvd

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CITY CDBG LOAN NOTE SECURED BY SUBORDINATED DEED OF TRUST TO THE CITY OF SANTA ANA, CALIFORNIA (1108 N Harbor Blvd, Santa Ana, California) $1,687,047 April 20, 2021 Santa Ana, California 1. Principal Amount of Loan For value received, NORTH HARBOR HOUSING PARTNERS LP, a California limited partnership (“Borrower”) promises to pay to the order of THE CITY OF SANTA ANA (“City"), at 20 Civic Center Plaza, 6th Floor, Santa Ana, California 92701, or at such other place as the City may from time to time designate in writing, or to the assignee of the City, the principal sum of ONE MILLION, SIX HUNDRED EIGHTY-SEVEN THOUSAND, AND FORTY-SEVEN DOLLARS ($1,687,047) or so much thereof as shall be disbursed hereunder, with three percent simple interest (3%) commencing upon filing of Notice of Completion. City and Borrower have heretofore entered into that certain Loan Agreement dated concurrently herewith (the "Loan Agreement"), pertaining to the acquisition and rehabilitation of certain real property described in the Loan Agreement as the "Property," commonly known as 1108 N Harbor Blvd, Santa Ana, California, and the operation of the Property as affordable housing for Extremely-Low, Very-Low and Low Income households. This City CDBG Loan Note (the “Note”) is made pursuant to, entitled to the benefits of and referred to as the City Loan Note in the Loan Agreement; that certain “Affordability Restrictions on Transfer of Property” between Borrower and City, dated on or about the date hereof; and that certain Subordinated City Deed of Trust and Assignment of Rents between Borrower and City, dated on or about the date hereof (the "City Deed of Trust"). This Note, the Loan Agreement, the Affordability Restrictions on Transfer of Title, and the Deed of Trust are sometimes collectively referred to herein as the "Loan Documents." The Loan Documents and the rights and responsibilities inure to the benefit of the City of Santa Ana. Any capitalized term which is not otherwise defined herein shall have the meaning ascribed to such term in the Loan Agreement. 2. Definitions. For the purpose of calculating the payments to be made by Borrower to City pursuant to this Note, the following terms shall have the following respective meanings: "Acquisition Costs" shall mean the costs and expenses of Borrower to acquire the Property, as set forth in the Project Budget attached to the Loan Agreement. “Borrower” means North Harbor Housing Partners LP, a California limited partnership. EXHIBIT 3