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<br /> <br />- 5 - <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />not less than those prevailing for similar projects in the area, as determined by the <br />U.S. Department of Labor. <br /> <br /> Developer will comply with the Build America, Buy America Act, ensuring that all <br />iron, steel, manufactured products, and construction materials used in the Project <br />are produced in the United States, subject to HOME Program and federal <br />requirements. <br /> <br /> Developer will comply with the environmental review requirements of the National <br />Environmental Policy Act, as mandated for projects utilizing HOME federal funds, <br />ensuring that the Project is evaluated and mitigated for potential environmental <br />impacts in accordance with federal regulations. <br /> <br /> At the close of escrow for the purchase of each affordable unit, the City will require <br />each Low- and Moderate-Income Households purchasing such unit to execute the <br />following documents: <br /> <br />o Affordable Housing Resale Restrictions – The Affordable Housing Resale <br />Restrictions shall permit sales of a unit affordable to Low- and Moderate- <br />Income Households to be sold only to a qualified Low- or Moderate-Income <br />Household, according to the income restrictions for the particular unit, with <br />a local preference for families who live or work in the City of Santa Ana , in <br />each case, at an Affordable Housing Cost, subject to an alternative resales <br />model agreed upon by City and Developer; provided, however, that the <br />resale restrictions must comply with the HOME Program requirements; <br />o Notice of Affordability Restrictions on Transfer of Property – The Notice of <br />Affordability Restrictions on Transfer of Property shall be for a term of at <br />least forty-five (45) years; <br />o Promissory Note – The Homebuyer shall sign a promissory note ("City <br />Promissory Note") for a principal amount equal to the difference between <br />the affordable sales price of the affordable unit and the fair market value of <br />such unit as if no restriction were placed thereon, as de termined by an <br />appraisal, or other amount required by the HOME Program, which is <br />reasonably acceptable to the City, and repayable upon the affordability term <br />or earlier sale of the affordable unit for fair market value, subject to City's <br />approval; <br />o Deed of Trust – The Homebuyer shall sign a deed of trust ("City Deed of <br />Trust") that secures the City Promissory Note; and, <br />o Homebuyer Loan Agreement – The loan agreement shall reflect the <br />obligations for the City Promissory Note and the City Deed of Trust . <br />o Pending further negotiation and due diligence with the Developer, these <br />documents may include an alternative resales model to accommodate <br />generation of additional equity for each household or equity sharing <br />agreements with Developer as required by state or local law. <br /> <br /> <br />EXHIBIT 2