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• Describes parameters that SAHA must meet for the project to proceed, including obtaining tax credit financing by 2019, as well as other documents that need to be submitted to the City for review before the loan and ground lease are finalized. Ground Lease • Sets forth the terms of long-term leasehold between the City (Lessor) and the Sunflower Hill Irby LLC (Lessee). • Sets the term of the lease at 75 years to extend through the term of the initial permanent loan financing for the project and, per lender requirements, provides extended time to allow for project refinancing. • Requires the same affordability and use restrictions described in the Regulatory Agreement. • Establishes a ground rent in the nominal amount of one dollar per year subject to the project providing the affordability and rent restrictions described in the agreements. Regulatory Agreement • Establishes project affordability, occupancy, use, and property management requirements for the City LIHF loan. • Sets affordable unit levels as follows: o There is one studio unit (reserved for a Sunflower Hill staff member), twenty-two (22) one -bedroom units, and 8 two-bedroom units (including a manager's unit) for a total of 31 (thirty-one) units. o Of the 31 (thirty-one) units, 29 (twenty-nine) units will be affordable, and (2) two staff units will not be subject to affordability requirements. There are 6 (six) units at 20% of Area Median Income (AMI); 3 (three) units at 40% AMI; 14 (fourteen) units at 50% AMI; and 6 (six) units at 60% AMI. o Rent affordability standards shall be no more than one twelfth (1/12) of thirty percent (30 percent) of the maximum annual household income adjusted for household size appropriate for the unit. • Sets the term of the agreement for a period of 75 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 re -certification and reporting requirements for the project Promissory Note and Leasehold Deed of Trust • The DDLA describes the terms and conditions for the use of the LIHF loan in the amount of $2,250,000. 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). Page 3of6