MIDPEN HOUSING CORP (2) - Laserfiche WebLink

17. Tenant Protections. Contractor shall provide a lease for rental housing and such lease will be for not less than one year, unless by mutual agreement between the tenant and the owner. Leases for HOME -assisted units will comply with provisions enumerated at HOME regulation 24 CFR 92.254, Tenant and Participant Protections. 18. Security/Term. Should the funding provided in this Agreement be from more than one source, separate Amended and Restated Promissory Notes ("Note") and, upon execution of ground leases to Contractor, also the Deeds of Trust will be executed for each funding source. For each funding source prior to any disbursement of funds, Contractor shall execute and deliver a Note in the amount indicated below and, upon execution of a ground lease to Contractor, also a Deed of Trust in favor of the City to secure the performance of all terms and conditions of the Note and this Agreement. Funding Source Note Amount Deed of Trust Amount -i HOME $450,000 Same as HOME Note Amount The Note will be non -recourse. Upon execution of a ground lease to Contractor, the Deed of Trust will be recorded in the Office of the Recorder of the County of Alameda against Contractor's leasehold interest in the land and fee interest in the improvements. The Deed of Trust may be subordinated to any liens of Contractor's construction and permanent financing. City agrees to execute subordination agreements reasonably requested by Contractor's construction and permanent lenders. 19. Repayment. The provisions and requirements in this and foregoing sections will refer to each Note unless stated otherwise. Repayment of the principal amount of the Loan shall be deferred for the Term of the Note. except that the total amount of the principal of the Loan and Interest shall immediately become due and payable in the event of a default by the Borrower. For each Note, no interest will accrue on the Note until Project Completion. Interest at the rate of three percent (3%) simple will be charged annually, calculated based on a 365-day year, commencing on the first day of the first month following the issuance of the Certificate of Occupancy, Notice of Completion, or some other document evidencing completion acceptable to City. Payment in full on the Note, including any accrued interest, will be due and payable no later than fifty-five (55) Years after conversion to permanent financing of the Project but in no event later than sixty (60) years after the date of the Note ("Note Maturity"). The Note and Deed of Trust will be executed prior to any disbursement of funds under this Agreement. Should there be a conflict in the language between the Note and this Agreement, the Note will prevail. In the event Contractor breaches any of the terms and conditions, Contractor may be subject to acceleration of the Note as set forth in Section 22 below. 20. Prepayment. Prepayments may be made at any time without penalty. A-8 191\52\1543377.4