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® Establishes a ground rent in the nominal amount of a dollar per year subject to the projecting providing the affordability and rent restrictions described in the agreements Regulatory Agreement ® Establishes project affordability, occupancy, and use and property management requirements for the City LIHF loan ® Sets affordable unit levels as follows o There are forty-nine (49) one-bedroom units and five (5) two-bedroom units (including a manager's unit). o Twenty-five (25) units to be rented to senior households whose incomes are at or below 60 percent of the Area Median Income (AMI), and twenty- nine (29) units to be rented to seniors with incomes no greater than 80 percent of AMI, with one (1) unit dedicated as an unrestricted manager's unit. o Rent affordability standards are established as no more than one twelfth (1/12) of thirty percent (30 percent) of the maximum annual household income adjusted for family size appropriate for the unit o There will be thirty-one (31) Project-Based Section 8 units restricted by the U S. Department of Housing & Urban Development (HUD) through the Housing Authority of the County of Alameda (HACA) ® Sets the term of the agreement for a period of 55 years ® Establishes property management and maintenance expectations for the project and allows the City the right to replace a management agent in the case of a default of those management responsibilities ® Describes ongoing monitoring, tenant recertification and reporting requirements for the project Affordable Housing Loan Agreement, Promissory Note, and Leasehold Deed of Trust ® Affordable Housing Loan Agreement describes the terms and conditions for the use of the LIHF loan in the amount of$2,575,360 and $250,000 from the Pleasanton Gardens operating reserve for a total loan of $2,825,360 The final loan amount is to be secured through the form of a Promissory Note and City Leasehold Deed of Trust ® As described in the Promissory Note, the loan will bear three percent (3 percent) simple, annual interest and will require annual payments from residual receipts for the project (i.e net cash flow after all the approved project expenses and payments to reserves) ® The term of the loan will be 55 years from the close of permanent financing at which time the entire outstanding balance of principal and interest shall be due. Staff now recommends that the City Council authorize execution of the agreements attached to the resolution, with the final forms to be subsequently approved by the City Manager and City Attorney, and authorize the City Manager to take all steps and execute all of the necessary documents necessary to carry out the transactions In accordance with the Kottinger Gardens Phase 2 development timeline, the closing of