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LOAN AGREEMENT <br />This LOAN AGREEMENT ("Agreement") is entered into on this 7th day of March, 2011 <br />by and among the CITY OF SANTA ANA, a California municipal corporation and charter city duly <br />organized and existing under the Constitution and Laws of the State of California ("City"), the <br />COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public <br />body, corporate and politic ("Agency"), and SANTA ANA WBBB, LP., a California limited <br />partnership (collectively, "Developer"). <br />RECITALS <br />The following recitals are a substantive part of this Agreement: <br />A. In furtherance of the objectives of the California Community Redevelopment Law, <br />Health and Safety Code Section 33000, et seq. ("Redevelopment Law"), the Agency desires to assist <br />in the redevelopment of certain real property located at 605-611 East Washington (APN# 398-151-11 <br />and 398-151-12), within the boundaries of the City, as more particularly described on Exhibit A and <br />incorporated herein ("Property"). The Property consists of undeveloped vacant property. A map of <br />the Property ("Site Map") is attached hereto and incorporated herein as Exhibit B. A Site Plan is <br />attached hereto and incorporated herein as Exhibit C. <br />B. The Property is currently owned by the Developer. The Developer acquired the <br />Property using funds loaned to the Developer by the City ("NSP Loan") pursuant to that certain <br />Neighborhood Stabilization Program Rental Housing Development Loan Agreement, dated as of <br />June 1, 2010 ("NSY Loan Agreement"). The NSY Loan is evidenced by that certain City Promissory <br />Note Secured by Subordinated Dccd of Trust to the City of Santa Ana, California (605-611 E. <br />Washington Street), dated as of June 1, 2010 ("NSP Promissory Note"), in the original principal <br />amount of $655,000, and is secured by that certain City Deed of Trust and Assignment of Rents in <br />favor of the City, recorded against the Property in the official records of Orange County, California, <br />on .Tune 2, 209 0 ("NSP Deed of Trust"). Pursuant to the NSP Loan Agreement, Developer shall <br />comply with those certain Affordability Covenants and Restrictions by and between Developer and <br />City, recorded against the Property in the official records of Orange County, California on June 2, <br />2010 as Instrument No. 2010000258490 ("NSP Covenants"). The NSP Loan Agreement, NSP <br />Promissory Note, NSP Deed of'1'rust, and NSY Covenants are referred to collectively herein as the <br />"NSP Documents: ' <br />C. Tn furtherance of the HOMO Program, the Redevelopment Law, and the Agency's <br />Redevelopment Plan, Developer has applied to City and Agency for Loans with which to: <br />construct the Improvements at the Property, <br />2. provide deeper levels of affordability for the Affordable Units at the Property, <br />and <br />thereafter to maintain, operate and professionally manage the Property as <br />decent, safe, sanitary and affordable rental housing. <br />D. The City, Agency and Developer desire by this Agreement for City and Agency to <br />provide financial assistance to Developer in the form of loans and for the Developer to agree to <br />EXHIBIT 2-1 <br />