20A - AA - LOAN AGMT 601 E 20TH ST

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B. CalHome Loan. City agrees to lend to Borrower, and Borrower agrees to borrow from City, $60,000.00 (the "CalHome Loan"), with interest as provided in the Promissory Note, subject to the conditions and restrictions set forth in this Agreement, in the Promissory Note and in the Deed of Trust. Borrower shall execute, acknowledge and deliver to the Escrow Agent the Promissory Note, and the Deed of Trust, as a condition of the City's origination of the CalHome Loan. 3. Development of the PropgrtX. (a) Borrower agrees to complete the Project in accordance with Exhibit "B" and with plans approved by City consistent with said Exhibit "B". (b) Borrower has submitted for City approval preliminary construction drawings, elevations, and an estimate of construction costs for the Project. City hereby approves the concept of the Project as disclosed thereby, subject to approval of final construction plans consistent therewith by City's Planning and Building Safety Agency. (c) The budget for the rehabilitation of the Property is attached hereto as Exhibit "C". The cost of rehabilitating the Property shall be the sole responsibility of Borrower. City shall not be obligated to make loans or otherwise fund the cost of rehabilitation of the Property except as set forth in this Agreement. (d) Borrower shall begin and complete the Project within one hundred and eighty (180) days from the date of this Agreement subject to revision from time to time as mutually agreed upon in writing between Borrower and the Deputy City Manager. The Deputy City Manager will not withhold a reasonable extension of time for completion of the Project if the Borrower has shown continuous and substantial progress toward completion. (e) Before commencement of any work upon the Property, Borrower shall, at his own expense, obtain any and all permits which may be required by the City or other governmental agency affected by such work. (f) Representatives of the City shall have a reasonable right of access to the Property without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including but not limited to the inspection of the work being performed. (g) After completion of all rehabilitation specified in Exhibit "B" of this Agreement, and upon written request of Borrower, City shall inspect the Property. If all work specified in Exhibit "B" has been performed to the City's satisfaction, the City will issue, in recordable form, a Certificate of Completion. Such Certificate of Completion shall be, and shall so state conclusive determination of satisfactory completion of the Project. If the City refuses or fails to furnish a Certificate of Completion for the Project after written request from the Borrower, the City shall, within 30 days of written request, provide the Borrower with a written statement of the reasons the City refused or failed to furnish a Certificate of Completion. The statement shall also contain the City's opinion of the action the Borrower must take to obtain a Certificate of Completion. If the Page 4 of 15 20A-8