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1. The $15.57 million in Agency Loans — Rental Component will accrue 3% simple interest <br />annually. The Developer must make annual debt service payments ents on this obligation <br />using the Residual Receipts generated by the Project. At the end of the lean term, the <br />Developer must repay any outstanding principal and interest balance on the loan. <br />2. The $1.5 million Agency Loan — Phase FS must be repaid by the Developer with 25% of <br />any sales proceeds generated by Phase FS above the amount required to provide a <br />2% development profit. <br />3. The Agreement requires the Agency to provide $180,000 in Homebu rer Assistance <br />Leans to moderate income households. The principal balance of these loans, plus a <br />share of the equity appreciation, will be paid to the Agency when the units are resold at <br />unrestricted market rate prices. <br />The repayment proceeds received by the Agency will be greater than the established fair reuse <br />value of negative $17.25 million. Thus, it can be concluded that the Agency is receiving fair <br />consideration for the interests being conveyed to the Developer. <br />I. BLIGHT ELIMINATION <br />The Project includes 116 units that will be subject to long - terra income and affordability <br />covenants. In accordance with California Redevelopment Law, as portrayed in the California <br />Hearth and Safety Code Section 33433, the sale of property that results in the provision of <br />housing for lour or moderate income persons satisfies the blight elimination criteria imposed by <br />Section 33433. Thus, the Project fulfills the blight elimination requirement. <br />V11. CONFOR 1ANCE WITH THE AB's 290 1MPLEME NTATION PLAN <br />The proposed Project is included in the Project Area's Implementation Plan for 2005 -2010. In <br />addition, the Project fulfills the Agency's general goal of increasing the affordable housing stock <br />within the Project Area. Thus, it can be concluded that the Project is in conformance with the <br />AB1290 Implementation Plan. <br />19M.001.067 <br />