GUEST HOUSE LP (2)-2016 - Laserfiche WebLink

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LOAN AGREEMENT HOME PROGRAM THIS LOAN AGREEMENT (the "Agreement") dated, for identification purposes only, as of July _ 2016, 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 Guest House 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 goverrunent, 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 is the owner of that certain property commonly known 2151 E. First 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. b -i furtherance of the HOME Program, Developer has applied to City for a loan with which to: 1. provide deeper affordability for a longer term, 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 terms 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