25B - AGMT - CDBG HOUSING LOAN - Laserfiche WebLink

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E. In order to utilize money in the Inclusionary Housing Fund, the City issued a Request for Proposals on June 1, 2015, seeking affordable housing projects. After reviewing all applications, the Developer's project was selected and approved for funding by the Santa Ana City Council on November 3, 2015. F. Developer is entering into this agreement to acquire and, subject to entitlement approvals, develop an adaptive reuse project consisting of a sixty -four (64) unit multi - family residential housing development, with live /work units and a possible commercial are studio, as well as a community room (the "Project") located at 1666 N. Main Street, within the City of Santa Ana, California, and legally described in Exhibit A attached hereto (the "Property "). The CDBG funds referenced herein shall assist in the rehabilitation only and the Inclusionary Housing funds will assist in the construction and soft costs of said Project. G. In furtherance of the Inclusionary Housing Program and CDBG guidelines, Developer has applied to the City for a loan with which to: 1. provide deeper affordability and construct the improvements to the Property, and 2. thereafter to maintain, operate and professionally manage the Project as decent, safe, sanitary and affordable rental housing. H. The City, on certain terms and conditions, desires to make such loan ( "City Loan ") to Developer in order to make possible the rehabilitation and construction of the Project, thereby expanding the supply of decent, safe, sanitary and affordable housing. L Owner and the City are concurrently entering into that certain CDBG and Inclusionary Housing Loan Agreement. The Loan Agreement, CDBG Deed of Trust , CDBG Promissory Note, Inclusionary Deed of Trust, and Inclusionary Promissory Note, dated concurrently herewith (collectively the "Loan Agreements ") are entered into for the purpose of providing for affordable very low income residential rental units in the City of Santa Ana pursuant to the CDBG and Inclusionary Funds regulations and guidance. NOW, THEREFORE, CITY AND OWNER COVENANT AND AGREE AS FOLLOWS: 1. Definitions "Affordable Housing" means housing operated in accordance with the requirements of 24 CFR 92.252 and 24 CFR 570. "Affordability Period" also referred to as "Term of Affordability ", shall be fifty -five (55) years from date of issuance of Certificate of Completion. "Affordable Rent" means the monthly rents which do not exceed the maximum amount applicable to Extremely Low, Very Low and Low Income households, as promulgated by the U.S. Department of Housing and Urban Development (HUD). 25B -53