RIDGE VIEW REFINANCING - Laserfiche WebLink

B. CHFA restricted the use and occupancy requirements of the Project pursuant to _a regulatory agreement entitled, "the California Housing Finance Agency Regulatory Agreement, CHFA Development No. 87- 007 -N" hereinafter referred to as the "CHFA Regulatory Agreement," recorded January 12, 1990 as Instrument No. 90009858. C. The Borrower entered into an agreement (the "TCAC Regulatory Agreement ") with TCAC as a condition to its receiving federal and state low - income housing tax credits. This TCAC Regulatory Agreement was recorded February 25, 1991 as Instrument No. 91050998. D. Borrower and CHFA have now entered into a Loan Modification Agreement. As an inducement to CHFA to agree to a loan modification of its financing of the Project, such modification conferring a benefit to the Borrower and TCAC, the Borrower and TCAC agree to subordinate the above - referenced TCAC Regulatory Agreement, and any other documents associated therewith, to the obligations imposed by and the lien priority of, the CHFA Regulatory Agreement, the CHFA Deed of Trust and the CHFA Loan Modification Agreement. follows: NOW THEREFORE, In consideration of the foregoing, the Borrower, TCAC and CHFA agree as 1. The TCAC Regulatory Agreement is now, and will hereafter remain, unconditionally subordinate to the obligations evidenced by the CHFA Regulatory Agreement, the CHFA Deed of Trust and the CHFA Loan Modification Agreement. This subordination is subject only to the provisions of the 3 -year extended use period as provided for in Section 42 of the Internal Revenue Code Section of 1986, Part(h)(6)(E) ( "Extended Use Provision "). In the event this section is amended or is determined by a court or by the IRS to be inapplicable, and such amendment or determination is deemed to be retroactive, this 3 -year Extended Use Provision shall not apply and this TCAC subordination shall be wholly unconditional with no provisions of the TCAC Regulatory Agreement surviving foreclosure. 2. In the event the Extended Use Provision is not amended or found to be inapplicable, and there is a judicial or nonjudicial foreclosure of the CHFA Deed of Trust, the Extended Use Provision as provided for in the above IRS Code Section and referenced in the TCAC Regulatory Agreement will remain in effect for a period of 3 years following foreclosure. However, all other remaining provisions of the TCAC Regulatory Agreement. 3. This Agreement is for the benefit of the parties hereto and is enforceable by any party against any successors in interest or assigns of any party hereto. 4. If any party shall take any legal action to enforce the terms and conditions of this Agreement, the prevailing party or parties shall be entitled to recover legal costs and reasonable attorney's fees from the other party or parties. 5. Amendments to this Agreement must be in writing and signed by all parties hereto. 6. This Agreement shall be construed in accordance with and be governed by the laws of California. CHFA 71.SUBA RIDGEVIEW COMMONS 8 /31 /99.RKO.SAON32FP.emp -2-