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HomeMy WebLinkAbout80A - JOINT LOAN AMENDMENTSREQUEST FOR COUNCIL/ HOUSING AUTHORITY ACTION CITY COUNCIL MEETING DATE: MARCH 6, 2018 TITLE: APPROVE AMENDMENTS TO PROMISSORY NOTES WITH C&C DEVELOPMENT COMPANY AND ORANGE HOUSING DEVELOPMENT CORPORATION FOR ROSS & DURANT, WILSHIRE & MINNIE, TOWNSEND & RAITT, 1410 N. DURANT, LACY & RAITT, AND 326 S. GARNSEY AFFORDABLE HOUSING DEVELOPMENTS (STRATEGIC PLAN NO. 5,3) r _ CITY MAN ER EXECUTIVE D CTOR RECOMMENDED ACTION CITY COUNCIL ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1 � Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Authorize the City Manager and the Clerk of the Council to execute Amendments to Promisorry Notes (Loan Notes) with C&C Development Company and Orange Housing Development Corporation for the following affordable housing developments, to increase the property management fee to 8% of gross rents, subject to non -substantive changes approved by the City Manaqer and Citv Attornev: 80A-1 Current Proposed Entity Project Address Management Management Fee Fee ROSS AND DURANT, L.P. 1411 N. DURANT 6.25% 8% ROSS AND DURANT, L.P. 1501 N. ROSS STREET 6.25% 8% 1201, 1209, 1213, 1221, 1225, 1229, AND 1233 EAST WILSHIRE, AND WILSHIRE & MINNIE, L.P. 1401, 1403, 1409, 1413, 6.50% 8% 1421, 1425, 1429, 1433, 1437 AND 1439 SOUTH MINNIE STREET TOWNSEND & RAITT, L.P. 701 SOUTH TOWNSEND 6.50% 8% 80A-1 Amendments to Promissory Notes with C&C Development Company and Orange Housing Development Corporation March 6, 2018 Page 2 TOWNSEND & RAITT, L.P. 709 S. TOWNSEND STREET 6.50% 8% TOWNSEND & RAITT, L.P. 817 SOUTH TOWNSEND 6.50% 8% TOWNSEND & RAITT, L.P. 821 SOUTH TOWNSEND 6.50% 8% TOWNSEND & RAITT, L.P. 834 SOUTH RAITT 6.50% 8% DURANT-1410, L.P. 1410-1412 DURANT STREET 6.50% 8% LACY & RAITT, L.P. 703 N. LACY STREET 7% 8% LACY & RAITT, L.P. 702 SOUTH RAITT 7% 8% GARNSEY, L.P. 326 SOUTH GARNSEY STREET 7% 8% HOUSING AUTHORITY ACTION Authorize the Executive Director of the Housing Authority of the City of Santa Ana and the Clerk of the Council to execute Amendments to Promissory Notes (Loan Notes) with C&C Development Company and Orange Housing Development Corporation for the following affordable housing developments, to increase the property management fee to 8% of gross rents, subject to non - substantive chances armroved by the Executive Director and Authority General Counsel: 80A-2 Current Proposed Entity Project Address Management Management Fee Fee ROSS AND DURANT, L.P. 1411 N. DURANT 6.25% 8% ROSS AND DURANT, L.P. 1501 N. ROSS STREET 6.25% 8% 1201, 1209, 1213, 1221, 1225, 1229, AND 1233 EAST WILSHIRE, AND WILSHIRE & MINNIE, L.P. 1401, 1403, 1409, 1413, 6.50% 8% 1421, 1425, 1429, 1433, 1437 AND 1439 SOUTH MINNIE STREET TOWNSEND & RAITT, L.P. 701 SOUTH TOWNSEND 6.50% 8% TOWNSEND & RAITT, L.P. 817 SOUTH TOWNSEND 6.50% 8% TOWNSEND & RAITT, L.P. 821 SOUTH TOWNSEND 6.50% 8% TOWNSEND & RAITT, L.P. 834 SOUTH RAITT 6.50% 8% TOWNSEND & RAITT, L.P. 709 SOUTH TOWNSEND 6.50% 8% LACY & RAITT, L.P. 703 N. LACY STREET 7% 8% LACY & RAITT, L.P. 702 SOUTH RAITT 7% 8% 80A-2 Amendments to Promissory Notes with C&C Development Company and Orange Housing Development Corporation March 6, 2018 Page 3 COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION At its regular meeting on January 24, 2018, the Community Redevelopment and Housing Commission (CRHC) approved the recommended actions by a vote of 7:0 (Frazier absent). DISCUSSION On October 30, 2017, C&C Development Company and Orange Housing Development Corporation submitted a request to increase the property management fee to 8% of gross rents for six (6) of their affordable housing developments (Exhibit 1). The costs to provide management services have increased at each project while the gross rents have minimally increased. Specifically, the very -low rents provided by the California Department of Housing and Community Development have only increased an estimated two (2) percent since 2009. The proposed increase would raise property management fees for the six properties and decrease the amount of residual receipts payable to the City and/or Housing Authority as the Successor Housing Agency under the City's / Agency's Loan Agreements for each property. As a result, the rents for the occupants of the units will not increase. The property names and current management fees are outlined below: Property Name Current Management Fee Proposed Management Fee Ross & Durant 6.25% 8.00% Wilshire & Minnie 6.50% 8.00% Townsend & Raitt 6.50% 8.00% 1410 N. Durant 6.50% 8.00% Lacy & Raitt 7.00% 8.00% 326 S. Gamsey 7.00% 8.00% The request was submitted to Keyser Marston Associates (KMA). KMA verified that an 8% management fee is reasonable and comparable to other affordable housing projects across the State of California. Staff also reviewed the management fees for the last five affordable housing development projects that were approved by City Council/Housing Authority including the Depot at Santiago, Andalucia, the Orchard, Santa Ana Arts Collective, and First Street Apartments. All five projects have a management fee of 8% of gross rents. As a property gets older, it gets more expensive to manage due to the limited lifespan of various assets on the property and staff agrees with the developer's request to adjust their management fees to the current standard. In return for an increase in their property management fees, C&C Development Company and Orange Housing Development Corporation are proposing to hire additional staff to maintain the high level of service and maintenance at these properties. The requested increase in property management fees will not result in an increase to any tenants rents. Rent limits are based on limits set by the California Tax Credit Allocation Committee (TCAC) and/or the California Department of Housing and Community Development (HCD), depending on how the property was financed. Based on 2017 rents for the six properties the total increase between the 8% • I . Amendments to Promissory Notes with C&C Development Company and Orange Housing Development Corporation March 6, 2018 Page 4 management fee of gross rents and the current management fees would result in an annual increase of approximately $48,800 for the six properties as a whole (Exhibt 2). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal # 5 - Community Health, Livability, Engagement & Sustainability, Objective # 3 (Facilitate diverse housing opportunities and support efforts to preserve and improve the livability of Santa Ana neighborhoods). FISCAL IMPACT The proposed increase would raise property management fees for the six properties and decrease the amount of residual receipts payable to the City and/or Housing Authority as the Successor Housing Agency under the City's / Agency's Loan Agreements for each property. The financial impact on the amount of residual receipts fluctuates from year to year based on various factors which impact exactly how much the residual receipts would decrease for these six loans. However, it is anticipated that the HOME Investment Partnership Program, Neighborhood Stabilization Program, and Successor Housing Agency principal and interest repayment revenue accounts (no. 13018002-56900, 13018002-56901, 14218002-56900, 14218002-56901, 60718002-56900, and 60718002-56901 respectively) will be reduced starting in FY 18/19. Robert M. Zur h ied Interim Executive erector Community Development Agency APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez 11-� Executive Director Finance and Management Services Agency Exhibits: 1. C&C Development Company and Orange Housing Development Corporation Request Letter 2. Management Fee Increase Comparison 3. City of Santa Ana Amendments to Promissory Notes with C&C Development Company and Orange Housing Development Corporation 4. Housing Authority Amendments to Promissory Notes with C&C Development Company and Orange Housing Development Corporation EXHIBIT 1 C & C Development Co., LLC Orange Housing Development Corporation October 30, 2017 City of Santa Ana Mr. Judson Brown Community Development Agency 20 Civic Center Plaza (M-26) Santa Ana, CA 92701 RE: Increase to Permitted Property Management Fees for Affordable Communities Mr. Brown: Historically, the property management fees associated with the affordable developments that we have completed in the City of Santa Ana has ranged from 6.00% to 8.00% of gross rents. The specific property management fee for each property is identified within the Operating Expense definition with the City and/or Agency Loan Note for each development. Over the past few years we have witnessed little to no year over year increase in the gross rents that are collected for each development. During this same period the cost to provide management services has increased. We have also witnessed increased frequency of audits and higher level of compliance associated with the management of properties over the past few years. We have attached a schedule outlining the year over year Increase (or decreases) in the TCAC and HCD rents for Orange County. As an example, between 2009 and 2017 HCD rents for 3 -bedroom units have increased 2.2% for a total rent increase during that period of only $24. Realizing that this was occurring, we started setting management fees at 8.00% of gross rents for projects that we're completed during the past few years. Following is a list of properties owned and managed in Santa Ana and current management fee as a percentage of gross rents. Property Management Fee Garden Court Apartments 8.00% Minnie 1, II, II 8.00% 901 E. 61s Street 8.00% Ross & Durant 6.25% Wilshire & Minnie 6.50% Townsend & Raitt 6.50% 1410 N. Durant 6.50% Lacy & Raitt 7.00% 326 S Garnsey 7.00% Terraces, BBB's 8.00% Depot @ Santiago 8.00% 940 Minnie 8.00% 815 N. Harbor 8.00% 14211 YORBA ST, STH 200, TUSTIN, CA 92780 PHONE: (114) 288-7600 • FAX: (866) 570-0728 • 11 EXHIBIT 1 C & C Development Co., LLC Orange Housing Development Corporation In order to effectively manage the properties and maintain the current level of service associated with management, maintenance, and compliance we would like to request that the property management fees for all properties be allowed to increase from their current levels to 8.00% of gross rents. This will create consistency among the properties and will provide for continued management services at the current level. Please do not hesitate to contact us with any questions. Sincerely, Eunice Bobert, CEO Orange Housing Development Corporation Attachment: 2009 — 2017 Rent Schedule Barry Cottle, Member C&C Development Co., LLC Promissory Notes for Properties with Management Fees below 8%; Ross & Durant, Wilshire & Minnie, Townsend & Raitt, 1410 N. Durant, Lacy & Raitt, 326 S Garnsey 14211 YORBA ST., STE. 200, TUMN, CA 92780 PHONE: (714) 288-7600 - FAX: (866) 570.0728 EXHIBIT 1 2009 -2017 Rent History for Orange County Historically the Utility Allowances have Increased creating a situation where the net rents charged to the tenants decreased in years where there is not increase in the published gross rents 80A-7 Increase 1.30% -3.49% 1.33% 2.25% 0.00% 0.00% 0.00% 0.92% 50% AMI TCAC Rents Very Low HCD rents 2bed Increase 3bed Increase 2bed Increase 3 bed 2009 $ 1,046 $ 1,208 $ 969 $ 1,076 2010 $ 1,046 0% $ 1,208 0% $ 981 1.24% $ 1,090 2011 $ 1,046 0% $ 1,208 0% $ 947 -3.47% $ 1,052 2012 $ 1,083 3.54% $ 1,252 3.64% $ 959 1.27% $ 1,066 2013 $ 1,083 0% $ 1,252 091 $ 981 2.29% $ 1,090 2014 $ 1,083 0% $ 1,252 0% $ 981 0.00% $ 1,090 2015 $ 1,083 0% $ 1,252 0% $ 981 0.00% $ 1,090 2016 $ 1,097 1.29% $ 1,267 1.20% $ 981 0.00% $ 1,090 2017 $ 1,173 6.93% $ 1,356 7.02% $ 990 0.92% $ 1,100 Historically the Utility Allowances have Increased creating a situation where the net rents charged to the tenants decreased in years where there is not increase in the published gross rents 80A-7 Increase 1.30% -3.49% 1.33% 2.25% 0.00% 0.00% 0.00% 0.92% coo v 0 a b Lnoi OR n^^1oamiumi'"+0 4A.i~?NN N d d cn a 00 Ln rn w E ONE cc N ti m in �q in w W, E a 'i n N 19 Of r4 -T N CO. 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N N . pJ L y, C p) C Q C Mca Y m Y CG •� E F o O a1 C p, C p1 p[ m E N z 0 u 0 N c 3 o°�in .o a, 10 u � 3 3 M EXHIBIT 2 Foorlymul EXHIBIT 3 FIRST AMENDMENT TO CITWHOME LOAN NOTE THIS FIRST AMENDMENT TO C1TY/HOME LOAN NOTE is made and entered into this 6th day of March, 2018, by and between ROSS AND DURANT, L.P., a California limited partnership ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City'). RECITALS A. Borrower executed a City/HOME Loan Note, dated May 10, 2006, to secure loan funding for Borrower to develop an affordable housing project on the property located at 1411 N. Durant ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Pagel of 3 80A-11 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City/HOME Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City AttoWey —. RY Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency {Additional signatures on following page} Page 2 of 3 80A-12 EXHIBIT 3 "BORROWER" ROSS & DURANT, L.P., A California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation 0 EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, its Member in BARRY COTTLE Trustee Page 3 of 80A-13 EXHIBIT 3 FIRST AMENDMENT TO CITY/HOME LOAN NOTE THIS FIRST AMENDMENT TO CITY/HOME LOAN NOTE is made and entered into this 6a' day of March, 2018, by and between ROSS AND DURANT, L.P., a California limited partnership (`Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City/HOME Loan Note, dated May 10, 2006, to secure loan funding for Borrower to develop an affordable housing project on the property located at 1501 N. Ross St. ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 1 1. Section 2, Definitions,'shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. /!J /// 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-14 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City/HOME Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City M RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-15 EXHIBIT 3 "BORROWER" ROSS & DURANT, L.P., A California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation 0 EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, its Member By: BARRY COTTLE Trustee Page 3 of 3 80A-16 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between WILSHIRE & MINNIE, L.P., a California limited partnership ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated May 30, 2007 to secure loan funding for Borrower to develop an affordable housing project on the property located at 1201, 1209, 1213, 1221, 1225, 1229, AND 1233 East Wilshire, and 1401, 1403, 1409, 1413, 1421, 1425, 1429, 1433, 1437, and 1439 South Minnie Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: N N Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-17 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: FY7►1 t1��T:\ tom%\/ICU] City 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-18 EXHIBIT 3 WILSHIRE & MINNIE, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation By: EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee By: TODD R. COTTLE Member Page 3 of 3 80A-19 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated February 14, 2008 to secure loan funding for Borrower to develop an affordable housing project on the property located at 701 S. Townsend Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: /I/ Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Pagel of 3 80A-20 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR PAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO Cit} 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency {Additional signateo-es on following page} Page 2 of 3 80A-21 EXHIBIT 3 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation By: EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-22 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership (`Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated February 14, 2008 to secure loan funding for Borrower to develop an affordable housing project on the property located at 709 S. Townsend Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: /// /// 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-23 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City AttRQy n 0 Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency PAUL GODINEZ II City Manager {Additional signatures on following page} Page 2 of 3 80A-24 EXHIBIT 3 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 3-1 BARRY COTTLE Trustee Page 3 of 3 80A-25 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RATTT, L.P., a California limited partnership ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated May 15, 2008 to secure loan funding for Borrower to develop an affordable housing project on the property located at 817 S. Townsend Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: !/! Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-26 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-27 EXHIBIT 3 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By; Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-28 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAM, L.P., a California limited partnership (`Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated May 15, 2008 to secure loan funding for Borrower to develop an affordable housing project on the property located at 821 S. Townsend Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-29 *:1:11:1k1V. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Atto y By: (v 4RYO.E torney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency RAUL GODINEZ II City Manager (Additional signatures on following page) Page 2 of 3 80A-30 EXHIBIT 3 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation M EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member LN BARRY COTTLE Trustee Page 3 of 3 80A-31 EXHIBIT 3 FIRST AMENDMENT TO CITY LOAN NOTE THIS FIRST AMENDMENT TO CITY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership (`Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Loan Note, dated May 15, 2008 to secure loan funding for Borrower to develop an affordable housing project on the property located at 834 S. Raitt Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-32 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO Cit) am RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-33 x:1:11-3Y�1 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership 1604Ta lilT �[Klf Ql�l',7;\ i)r7\ a V6►i�7 ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation I� EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-34 EXHIBIT 3 FIRST AMENDMENT TO CITY PROMISSORY NOTE THIS FIRST AMENDMENT TO CITY PROMISSORY NOTE is made and entered into this 6th day of March, 2018, by and between DURANT - 1410, LP, a limited partnership comprised of OHDC Properties 1, LLC ("OHDC"), a Limited Liability Company, and C&C Properties Group I, LLC, a California limited liability company ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Promissory Note, dated September 28, 2009 to secure loan funding for Borrower to develop an affordable housing project on the property located at 1410-1412 Durant Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-35 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Promissory Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Atto.Foy RY Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-36 EXHIBIT 3 "BORROWER" DURANT -1410, L.P., a California limited partnership OHDC Properties I, LLC, A California limited liability company, ITS MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION A California nonprofit public benefit corporation, its sole member in EUNICE BOBERT Chief Executive Officer C&C Properties Group I, LLC A California limited liability company ITS MANAGING GENERAL PARTNER LN TODD R. COTTLE Member By: Cottle Family Trust Dated 3/8/87, Its Member LE BARRY COTTLE Trustee Page 3 of 3 80A-37 1*11:11-3W FIRST AMENDMENT TO CITY HOME LOAN NOTE THIS FIRST AMENDMENT TO CITY HOME LOAN NOTE is made and entered into this 61" day of March, 2018, by and between LACY & RAITT, L.P., a California limited partnership ("Borrower"), and the City of Santa Ana, a charter city and mtwicipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City HOME Loan Note, dated June 1, 2009, to secure loan funding for Borrower to develop an affordable housing project on the property located at 703 N. Lacy Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: /// Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-38 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City HOME Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City go RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatiffes on following page) Page 2 of 3 80A-39 EXHIBIT 3 "BORROWER" LACY & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER OHDC L&R, LLC a California limited liability company ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit public benefit corporation 0 EUNICE BOBERT Chief Executive Officer DEVELOPER GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: TODD R, COTTLE Its Member By: Cottle Family Trust Dated 3/8/87, Its Member 0 BARRY A. COTTLE Its Trustee Page 3 of 3 80A-40 EXHIBIT 3 FIRST AMENDMENT TO CITY HOME LOAN NOTE THIS FIRST AMENDMENT TO CITY HOME LOAN NOTE is made and entered into this 6th day of March, 2018, by and between LACY & RAITT, L.P., a California limited partnership ('Borrower'), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City HOME Loan Note, dated June 1, 2009, to secure loan funding for Borrower to develop an affordable housing project on the property located at 702 S. Raitt Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: N /// Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect, Page 1 of 3 80A-41 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City HOME Loan Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO city C5 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additionalsignatures on following page) Page 2 of 3 80A-42 EXHIBIT 3 f°BORROWER" LACY & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER OHDC L&R, LLC a California limited liability company ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit public benefit corporation 0 EUNICE BOBERT Chief Executive Officer DEVELOPER GENERAL PARTNER C&C T&R, LLC, a California limited liability company 0 TODD R. COTTLE Its Member By: Cottle Family Trust Dated 3/8/87, Its Member By: BARRY A. COTTLE Its Trustee Page 3 of 3 80A-43 EXHIBIT 3 FIRST AMENDMENT TO CITY PROMISSORY NOTE THIS FIRST AMENDMENT TO CITY PROMISSORY NOTE is made and entered into this 6th day of March, 2018, by and between Garnsey, LP, a limited partnership comprised of OHDC Properties I, LLC ("OHDC"), a Limited Liability Company, and C&C Properties Group I, LLC, a Limited Liability Company ("Borrower"), and the City of Santa Ana, a charter city and municipal corporation, organized and existing under the Constitution and laws of the State of California ("City"). RECITALS A. Borrower executed a City Promissory Note, dated April 7, 2011, to secure loan funding for Borrower to develop an affordable housing project on the property located at 326 South Gamsey Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 101 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 80A-44 EXHIBIT 3 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to City Promissory Note the date and year first above written. CITY OF SANTA ANA ATTEST: MARIA D. HUIZAR RAUL GODINEZ II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-45 EXHIBIT 3 "BORROWER" GARNSEY, L.P., a California Limited partnership MANAGING GENERAL PARTNER OHDC Properties I, LLC a California limited partnership ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit corporation, its sole member M EUNICE BOBERT Chief Executive Officer DEVELOPER GENERAL PARTNER C&C Properties Group I, LLC a California limited liability company M TODD R. COTTLE Member By: Cottle Family Trust Dated 3/8/87 0 BARRY COTTLE Trustee Page 3 of 3 80A-46 WIC Mbir-! FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between ROSS AND DURANT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated May 10, 2006, to secure loan funding for Borrower to develop an affordable housing project on the property located at 1411 N. Durant ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: !// 1. Section 2, Definition, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Pagel of 3 80A-47 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attqmey By: c/I RY I O. DGE Assi t nt Ci y Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Raul Godinez II City Manager (Additional signatures on following page) Page 2 of 3 80A-48 EXHIBIT 4 "BORROWER" ROSS & DURANT, L.P., A California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation 0 EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, its Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-49 EXHIBIT 4 FIRST ADI+ NDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6a' day of March, 2018, by and between ROSS AND DURANT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated May 10, 2006, to secure loan funding for Borrower to develop an affordable housing project on the property located at 1501 N. Ross Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise thb definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-50 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Raul Godinez II City Manager (Additional signatures on following page) Page 2 of 3 80A-51 EXHIBIT 4 "BORROWER" ROSS & DURANT, L.P., A California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation 0 EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8787, its Member In BARRY COTTLE Trustee Page 3 of 3 80A-52 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6`s day of March, 2018, by and between WILSHIRE & MINNIE, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated May 30, 2007, to secure loan funding for Borrower to develop an affordable housing project on the property located at 1201, 1209, 1213, 1221, 1225, 1229, AND 1233 East Wilshire, and 1401, 1403, 1409, 1413, 1421, 1425, 1429, 1433, 1437, and 1439 South Minnie Street ("said Note'). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-53 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-54 EXHIBIT 4 "BORROWER" WILSHIRE & MINNIE, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation Un EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C R&D I, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 0 BARRY COTTLE Trustee TODD R. COTTLE Member Page 3 of 3 80A-55 EXHIBIT 4 FIRST AiyIENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic (Agency). RECITALS A. Borrower executed an Agency Loan Note, dated February 14, 2008, to secure loan funding for Borrower to develop an affordable housing project on the property located at 701 South Townsend ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-56 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-57 EXHIBIT 4 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member BARRY COTTLE Trustee Page 3 of 3 80A-58 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership (`Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECTPALS A. Borrower executed an Agency Loan Note, dated May 15, 2008, to secure loan funding for Borrower to develop an affordable housing project on the property located at 817 South Townsend ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: /I/ Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-59 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager SONIA R. CARVALHO City M RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-60 EXHIBIT 4 "BORROWER" TOWNSEND & RA1TT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation LE EUNICE BOBERT Chief Executive Officer Ce3=a1►1w 7.VW' 3WNIW C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member BARRY COTTLE Trustee Page 3 of 3 80A-61 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6t" day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated May 15, 2008, to secure loan funding for Borrower to develop an affordable housing project on the property located at 821 South Townsend ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" defmition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-62 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attoym3 Fka Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-63 EXHIBIT 4 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation LN EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-64 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency's. RECITALS A. Borrower executed an Agency Loan Note, dated May 15, 2008, to secure loan funding for Borrower to develop an affordable housing project on the property located at 834 South Raitt ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 80A-65 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attoyugy RY. Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on followingpage) Page 2 of 3 80A-66 EXHIBIT 4 "BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member M BARRY COTTLE Trustee Page of 80A-67 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between TOWNSEND & RAITI', L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated February 14, 2008, to secure loan funding for Borrower to develop an affordable housing project on the property located at 709 South Townsend ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. /// %/I Q Page 1 of 3 80A-68 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attgrupy n M RY Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency Raul Godinez II City Manager (Additional signatures on following page) Page 2 of 3 80A-69 EXHIBIT 4 °BORROWER" TOWNSEND & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit, public benefit corporation M EUNICE BOBERT Chief Executive Officer GENERAL PARTNER C&C T&R, LLC, a California limited liability company By: Cottle Family Trust Dated 3/8/87, Member 0 BARRY COTTLE Trustee Page 3 of 3 80A-70 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between LACY & RAITT, L.P., a California limited partnership (`Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated June 1, 2009, to secure loan funding for Borrower to develop an affordable housing project on the property located at 703 N. Lacy Street ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: /// 1. Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-71 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City 0 RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-72 EXHIBIT 4 "BORROWER" LACY & RAT1T, L.P., a California limited partnership MANAGING GENERAL PARTNER OHDC L&R, LLC a California limited liability company ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit public benefit corporation M EUNICE BOBERT Chief executive Officer DEVELOPER GENERAL PARTNER C&&C'T&R, LLC, a California limited liability company Lo TODD R. COTTLE Its Member By: Cottle Family Trust Dated 3/8/87, Its Member 0 BARRY A. COTTLE Its Trustee Page 3 of 3 80A-73 EXHIBIT 4 FIRST AMENDMENT TO AGENCY LOAN NOTE THIS FIRST AMENDMENT TO AGENCY LOAN NOTE is made and entered into this 6th day of March, 2018, by and between LACY & RAITT, L.P., a California limited partnership ("Borrower"), and the Housing Authority of the City of Santa Ana, acting as the Housing Successor Agency, a public body, corporate and politic ("Agency"). RECITALS A. Borrower executed an Agency Loan Note, dated June 1, 2009, to secure loan funding for Borrower to develop an affordable housing project on the property located at 702 South Raitt ("said Note"). B. In accordance with the terms and conditions of said Note, the parties desire to amend the "Operating Expenses" definition to increase the allowed property management fee to 8% of gross rents under said Note. NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms and conditions of said Note, except as herein modified, the parties agree as follows: !// Section 2, Definitions, shall be amended to revise the definition of "Operating Expenses" to increase the property management fee equal to 8% of gross rents for the subject affordable housing project. 2. Except as hereinabove modified, all terms and conditions of said Note shall remain in full force and effect. Page 1 of 3 80A-74 EXHIBIT 4 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Agency Loan Note the date and year first above written. ATTEST: HOUSING AUTHORITY OF THE CITY OF SANTA ANA ACTING AS THE HOUSING SUCCESSOR AGENCY Maria D. Huizar Raul Godinez II Clerk of the Council City Manager APPROVED AS TO FORM: SONIA R. CARVALHO City Attgrgey n M M, Attorney RECOMMENDED FOR APPROVAL: ROBERT M. ZUR SCHMIEDE Interim Executive Director Community Development Agency (Additional signatures on following page) Page 2 of 3 80A-75 EXHIBIT 4 "BORROWER" LACY & RAITT, L.P., a California limited partnership MANAGING GENERAL PARTNER OHDC L&R, LLC a California limited liability company ORANGE HOUSING DEVELOPMENT CORPORATION a California nonprofit public benefit corporation EUNICE BOBERT Chief Executive Officer DEVELOPER GENERAL PARTNER C&C T&R,'LLC, a California limited liability company L-fi TODD R. COTTLE Its Member By; Cottle Family Trust Dated 3/8/87, Its Member M BARRY A. COTTLE Its Trustee Page 3 of 3 80A-76