ORANGE HOUSING DEVELOPMENT CORPORATION/C&C DEVELOPMENT

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c CITY PROMISSORY NOTE SECURED BY SUBORDINATED DEED OF TRUST TO THE CITY OF SANTA ANA, CALIFORNIA (1410-1412 Durant Street) $1,429,261.69 September 28, 2009 Santa Ana, California Principal Amount of Loan FOR VALUE RECEIVED, Townsend & Raitt, LP, a limited partnership comprised of Orange Housing Development Corporation, ("OHDC"), a non-profit 501 (c) (3) organization, and C&C T&R, LLC, a Limited Liability Company ("Borrower"), hereby promises to pay to the CITY OF SANTA ANA, a charter city and municipal corporation ("City"), or order, a principal amount not to exceed ONE MILLION FOUR HUNDRED TWENTY NINE THOUSAND TWO HUNDRED SIXTY ONE DOLLARS AND SIXTY NINE CENTS ($1,429,261.69) or so much thereof as may be advanced by the City to the Borrower, due and payable at 0% interest upon completion of rehabilitation, pursuant to the Neighborhood Stabilization Program Rental Housing Development Agreement dated concurrently herewith, between Borrower and the City (the "Agreement"), which is incorporated herein by this reference. Title III of Division B of the Housing and Economic Recovery Act of 2008 (Pub. L 110-289, 122 Stat. 2654 enacted July 30, 2009) makes available to certain qualified municipalities for certain qualified grant funds termed Neighborhood Stabilization Program ("NSP Funds") under a program termed the Neighborhood Stabilization Program (the "NSP"). Any capitalized term not otherwise defined in this Note shall have the meaning ascribed to such term in the Agreement. The obligation of Borrower to City hereunder is subject to the terms of the Agreement, the Affordability Covenants and Restrictions, Deed of Trust and this Note. Said documents are public records on file in the offices of the City, and the provisions of said documents are incorporated herein by this reference. City and Borrower have heretofore entered into the Agreement dated concurrently herewith pertaining to the acquisition of certain real property described in the Agreement as the "Property," commonly known as 1410-1412 Durant Street, and the operation of the Property as affordable rental housing for Very Low Income households. This Note, the Loan Agreement, the Affordability Restrictions on Transfer of Title, and the Deed(s) 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 Agreement.