05 - JOINT PH - Vista Del Rio DDA

Home Browse Search

(b) violation of any of the use covenants and restrictions contained in this Agreement, the Affordability Restrictions on Transfer of Property, or any other Project Document after the expiration of any applicable notice and cure periods; or (c) an Event of Default by Vista Del Rio under this Agreement or any other Project Document which is not timely cured after expiration of any applicable notice and cure periods pursuant to the terms of this Agreement or the applicable Project Document. 6. CONDITIONS TO DISBURSEMENT OF LOAN PROCEEDS 6.1 Conditions Precedent. City's and Agency's respective obligations to disburse any amount of the Loans and Authority's obligation to provide Project Based Section 8 assistance to the Project is subject to the satisfaction, or waiver by the Executive Directors, of the following conditions precedent: (a) Loan Documents. Vista Del Rio shall have delivered to the Escrow Holder, signed by the authorized officer or officers of Vista Del Rio, with such signature(s) acknowledged where necessary, each of the following documents: (i) the DDA; (ii) the Grant Deed; (iii)the City/HOME Loan Note; (iv) the City/HOME Loan Deed of Trust; (v) the Agency Loan Note; (vi) the Agency Loan Deed of Trust; and (vii) The Affordability Restrictions on Transfer of Property. (b) Title Insurance. Agency and City shall each have received a 2006 ALTA Lender's loan policy of title insurance, or evidence of a commitment therefore satisfactory to City, issued by First American Title Insurance Company and in form and substance satisfactory to City, together with all endorsements and binders required, naming City and Agency as the insured, in a policy amount of not less than the amount of the Loans, showing Vista Del Rio as the fee owner of the Property and insuring the Deeds of Trust to be valid priority liens on the Property. The Notes and Deeds of Trust shall be subordinate to the Senior Loan Note and Senior Loan Deed of Trust. The Affordability Restrictions on Transfer of Property shall take priority over the Loan Documents pursuant to City/Agency's request. (c) Affordability Restrictions on Transfer of Property. Vista Del Rio shall have delivered to the Escrow Holder, in the form attached hereto as Exhibit B, the Affordability Restrictions on Transfer of Property pursuant to which, among other things, Vista Del Rio agrees that the Property shall be used only for decent, safe, sanitary and affordable rental housing pursuant to the affordability requirements of Code of Federal Regulations ("CFR") section 92.252 or 92.254 and California Health and Safety Code sections 50052.5 and 33334.3, as applicable, and all other applicable provisions of the HOME Program, the CRL, and the Section 8 Requirements. 12 DOCSOC/1475221 v5/200272-0004