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The Inclusionary Loan shall be evidenced by the Inclusionary Promissory Note in the form attached hereto as Exhibit D. The Inclusionary Loan shall be secured by the Inclusionary Deed of Trust in the form attached hereto as Exhibit C. The terms and conditions of the Inclusionary Loan are as set forth in the Inclusionary Promissory Note. The term of affordability for the Project is fifty -five (55) years from the receipt of Certificate of Occupancy for the Project, or repayment of the Inclusionary Loan, whichever is longer. 5.1. Inclusionary Housing Funds: A. Amount and Purpose. Subject to the terms and conditions of this Agreement, City agrees to make a loan to Developer from Inclusionary Housing funds in the principal amount of up to $2,600,000.00 for the construction and other costs of the Project. The City shall notify the Developer within ten (10) days of the receipt of the In -Lieu Fee. 6. CONDITIONS TO DISBURSEMENT OF LOAN PROCEEDS 6.1 Conditions Precedent. City's obligation to disburse the loan is subject to the satisfaction of the following conditions precedent: (a) Receipt by the City of the In -Lieu Fee. On October 6, 2015, the City received a letter indicating a market rate developer's preference that their In -Lieu Fees be applied towards the Project. The Developer agrees and acknowledges that while a preference has been stated and the City has agreed to honor the preference, the City shall have no obligation to fund the Inclusionary Loan unless the In -Lieu Fee has been received by the City. (b) City Council. Review and approval of the Inclusionary Loan Documents by the City Council. (c) Environmental Review. Compliance with and completion of environmental review of the Project pursuant to the California Environmental Quality Act ( "CEQA ") and approval thereof. (d) Affordability Restrictions. Sixty -eight (68) of the sixty -nine (69) "Housing Units" at the Project shall and will be restricted to "Affordable Rent" as defined by the California Tax Credit Allocation Committee (TCAC) Regulations for a period not less than fifty - five (55) years pursuant to conditions, covenants and restrictions recorded against the Project in the Official Records, County of Orange, California. Thirty -four (34) of the sixty -eight (68) Housing Units at the Project shall and will be restricted to households earning 30% or less of the AMI, unless the City and the Developer reasonably determine that it is necessary for a lesser number of Housing Units at the Project to be restricted to households earning 30% or less of AMI to cause the Project to be competitive for tax credit financing and/or to be financially viable. One (1) Housing Unit will be rented to an on -site property manager; the manager's unit will not be rent restricted.