RES 231425 - Laserfiche WebLink

amount not to exceed Three Hundred Thousand Dollars ($300,000) of HOME and City Affordable Housing Fee funds ("Loan") subject to the conditions of this Agreement. The Loan shall be evidenced by a promissory note bearing three percent (3%) simply interest, with a term of fifty (50) years ("Note") executed by Borrower, with payments of principal and interest deferred for the Term and payable thereafter as set forth in the Note, and secured by a deed of trust ("Deed of Trust") and Regulatory Agreement recorded against the Property. This Agreement, the Note, the Deed of Trust and the Regulatory Agreement shall collectively be referred to as the "Loan Documents". 2. Conditions of Funding. The obligation of Lender to disburse Loan proceeds under this Agreement is subject to the following conditions: 2.1.There exists no Default nor any act, failure, omission or condition that would constitute a default under this Agreement; 2.2.The Borrower holds title to the Property; 2.3.A title insurer reasonably acceptable to Lender is committed to issuing a Lender's Policy of title insurance insuring the Deed of Trusts in the amount of the Loan, subject only to such exceptions and exclusions as may be reasonably acceptable to Lender, and containing such endorsements as Lender may reasonably require. 3. Term of Agreement. The term of this Agreement ("Term") shall commence upon execution of this Agreement and shall end one (1) year after the Loan is repaid in full. The Loan balance shall be due and payable in full upon the earliest of: (a) the end of the Term; or (b) the sale or transfer of the Property. 4. Use of Funds. Borrower shall use Loan Funds for eligible costs incurred by the Project as approved by the City's Housing Program Manager. 5. Regulatory Agreement. Borrow shall execute and record an Amendment to the Regulatory Agreement for the Property, which amends the Regulatory Agreement entered into between the City and Borrower's predecessor House, Inc. dated January 13, 1997, and recorded on January 17, 1997, in Alameda County Records as Series No. 97016086, applicable to the Property (collectively the "Regulatory Agreement"). The Amendment to the Regulatory Agreement shall regulate the new ADU to ensure that the two bedrooms in the ADU are occupied and affordable to Very Low-Income adults with developmental disabilities for the Term (not less than fifty (50) years from the date of recordation of the Loan Documents). These affordability requirements shall apply without regard to repayment of the Loan, or any full or partial transfer of ownership of the Property, and shall run with the land. 6. Subordinate Loan. The Deed of Trust and Regulatory Agreement shall be subordinate to the existing deeds of trust securing debt and the Alameda County 2