3 - LOAN AGREEMENT FOR AMCAL_2018-01-16

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9 4. [RESERVED] 5. AGENCY LOAN: A. Amount and Purpose. Subject to the terms and conditions of this Agreement, Agency agrees to make a loan to the Developer from the Low and Moderate Income Housing Asset Fund (“LMIHAF”) in the principal amount of up to $8,522,740.00 for the acquisition costs and hard and soft costs in constructing the Project. B. Agency Promissory Note and Deed of Trust. The Agency Loan shall be evidenced by the Agency Promissory Note in the form attached hereto as Exhibit D. The Agency Loan shall be secured by the Agency Deed of Trust in the form attached hereto as Exhibit C. C. Agency Loan Terms. The terms and conditions of the Agency Loan are as set forth in the Agency Promissory Note, which is a residual receipts 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 Agency Loan, whichever is longer. 6. CONDITIONS TO DISBURSEMENT OF LOAN PROCEEDS 6.1 Conditions Precedent. Agency's obligation to disburse the Agency Loan is subject to the satisfaction of the following conditions precedent: (a) Housing Authority. Review and approval of the documents evidencing the Agency Loan by the Housing Authority of the City of Santa Ana acting as the Housing Successor Agency. (b) Code Compliance. Compliance with California Health and Safety Code and applicable regulations set forth in Section 34176. (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. The funding of $8,522,740 is from the Low and Moderate Income Housing Asset Fund, which requires legal restrictions that the Agency cannot amend or repeal. 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, twenty-one (21) of the sixty-eight (68) Housing Units at the Project shall and will be restricted to households earning 50% or less of the AMI, and thirteen (13) of the sixty-eight (68) Housing Units at the Project EXHIBIT 3 3-19