KOTTINGER GARDENS PHASE 1 - AFFORDABLE HOUSING LOAN AGMT

resolution thereof. The City may use such deposit to satisfy any claim or lien that is adversely determined against Developer. Developer shall file a valid notice of cessation or notice of completion upon cessation of construction work on the Property for a continuous period of thirty (30)days or more, and shall take all other reasonable steps to forestall the assertion of claims or liens against the Property. The City may(but has no obligation to)record any notices of completion or cessation of labor, or any other notice that the City deems necessary or desirable to protect its interest in the Property. 5.18 Performance and Payment Bonds. Prior to commencement of construction work on the Project, Developer shall cause its general contractor to deliver to the City copies of payment bond(s)and performance bond(s) issued by a reputable insurance company licensed to do business in California, each in a penal sum of not less than one hundred percent(100%)of the scheduled cost of construction of the Project. The bonds shall name the City as co-obligee. 5.19 Insurance Requirements. Developer shall maintain and shall cause its contractors to maintain all applicable insurance coverage specified in Article XI. 5.20 Quarterly Performance Reporting. During construction of the Project, Developer shall submit to City a Quarterly Performance Report within 30 days of the end of each quarter. The report shall be in the form of a narrative description of all activities performed in relation to the Project including all development activities. The report shall include a Project time-line, including a schedule for completing milestones and/or tasks, and indicate the status of the Project in relation to this time-line. Developer shall provide the quarterly reports described in this Section until construction of the Project is complete, even if all of the Loan Proceeds have been disbursed. The requirements set forth in this Section are in addition to the requirement for submittal of requisitions pursuant to Section 4.6(o). 5.21 Project Completion Reporting. Upon completion of construction of the Project, Developer shall provide to City a Project Financial Completion audit or similar audit required under tax credit requirements, performed by an independent certified public accountant,that identifies all sources and uses of all Project funds. Developer shall provide to City a copy of any Project Cost Audit concurrently with Developer's provision of such audits to other regulatory or financing agencies. ARTICLE VI USE OF THE PROPERTY 6.1 Affordable Housing. Developer covenants and agrees for itself, its successors and assigns that the Property and the Improvements will be subject to recorded covenants that will restrict use of the Property to development of an affordable multi-family senior housing project that will be rented to Eligible Households at Affordable Rents in accordance with the terms set forth in the Ground Lease and the Regulatory Agreement. 6.2 Preference for City of Pleasanton Residents and Employees. Developer shall comply with the provisions of Section 9.9 of the Ground Lease pertaining to preferences in the rental of residential units in the Project for Eligible Households who live or work in the City of Pleasanton. OAK#4822-6539-6013 v6 19