815 N. HARBOR, L.P. (HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS) 2-2015

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CITY HOME LOAN PROMISSORY NOTE SECURED BY SUBORDINATED DEED OF TRUST TO THE CITY OF SANTA ANA, CALIFORNIA (815 N. Harbor Boulevard) $380,000,00 1. Principal Amount of Loan June 26, 2015 Santa Ana, California FOR VALUE RECEIVED, 815 N. Harbor, LP, a limited partnership comprised of OHDC 815 N Harbor, LLC, ( "OHDC "), a California Limited Liability Company, and C &C 815 N Harbor, LLC, a California Limited Liability Company (`Borrower "), hereby promises to pay to the CITY OF SANTA ANA, a charter city and municipal corporation ( "City "), or order, a principal amount not to exceed THREE HUNDRED EIGHTY DOLLARS ($380,000.00) or so much thereof as may be advanced by the City to the Borrower, due and payable with 3% interest by residual receipts over the fifty -five (55) year term, pursuant to the Loan Agreement between Borrower and the City dated concurrently herewith. The obligation of Borrower to City hereunder is subject to the terms of said the Loan Agreement, Affordability Restrictions on Transfer of Property, Deed of Trust and this Note. Said documents are public records on file in the offices of the City, and the provisions of said documents are incorporated herein by this reference. This Note, the Loan Agreement and Affordability Restrictions on Transfer of Property, and the Deed of Trust are sometimes collectively referred to herein as the "HOME Loan Documents." The HOME Loan Documents and the rights and responsibilities inure to the benefit of the City of Santa Ana. Any capitalized term which is not otherwise defined herein shall have the meaning ascribed to such term in the Agreement. 2. Definitions. For the purpose of calculating the payments to be made by Borrower to City pursuant to this Note, the following terms shall have the following respective meanings: "Agreement" means the HOME Loan Agreement between the City and the Developer dated concurrently herewith, and any attachments or amendments thereto. "Applicable Law" shall mean those federal, state and local laws, ordinances, regulations, policies and procedures applicable to the HOME Funds (the "HOME Regulations ") (24 CFR Part 92). "Area Median Income" means the median income figures for Orange County as published by the U.S. Department of Housing and Urban Development (HUD). Also may be referred to as "AMI" herein. "Borrower" means 815 N. Harbor, LP, a California limited partnership comprised of OHDC 815 N Harbor, LLC, a California limited liability company as managing general partner and C &C 815 N Harbor, LLC, a California limited liability company as developer general partner. "Calendar Year" means each consecutive twelve (12) month period from January 1 to December 31. 1076A53V1389384.1