940 S. MINNIE, LP - 2014 - Laserfiche WebLink

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LOAN AGREEMENT HOME PROGRAM THIS LOAN AGREEMENT (the "Agreement ") dated, for identification purposes only, as of May 19, 2014, is made and entered into by and between the City of Santa Ana, a charter city and municipal corporation (referred to herein as "City") and 940 Minnie, LP, a California limited partnership with reference to the following: RECITALS: A. City has received an allocation of funds from the United States Department of Housing and Urban Development ( "HUD ") under the HOME Investment Partnership Program (the "HOME Program ") (42 U.S.C. §12701, et seq.,) to be used in accordance with applicable statutory requirements and regulations (the "HOME Regulations ") (24 CFR Part 92); B. Among the purposes of the HOME Program are (1) to expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low- income and low- income Americans; and (2) to provide participating jurisdictions, on a coordinated basis, with the various forms of federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other federal assistance, needed (a) to promote the development of partnerships among the federal government, states and units of general local government, private industry, and nonprofit organizations able to utilize all available resources to provide more of such housing, and (b) to expand the capacity of nonprofit community housing development organizations to develop and manage decent, safe, sanitary and affordable housing; C. Developer (as 'Buyer ") has entered into an agreement (the "Purchase Contract ") to purchase certain property commonly known 940 S. Minnie Street, within the City of Santa Ana, California, and legally described in Exhibit A attached hereto (the "Property "). The loans referenced herein shall assist in the acquisition and rehabilitation of said Property that is improved with a multifamily residential housing development. D. In furtherance of the HOME Program, Developer has applied to City for a loan with which to: 1. provide deeper affordability for a longer tern, as well as acquire and rehabilitate the Property, and 2. thereafter to maintain, operate and professionally manage the Property as decent, safe, sanitary and affordable rental housing. E. City, on certain terns and conditions, desire to make such loan to Developer in order to make possible the acquisition and rehabilitation of the Property, thereby eliminating blight while expanding the supply of decent, safe, sanitary and affordable housing. 2