JAMBOREE HOUSING CORPORATION AND WISEPLACE

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Page 12 City Council / Special Housing Authority meeting on June 21, 2022, the City Council and Housing Authority Board authorized and approved issuance of this pre -commitment letter evidencing the preliminary award of (collectively, the "City Assistance"): - A loan in the maximum amount of $5,256,327 funded from the HOME Investment Partnerships Program — American Rescue Plan ("HOME —ARP") funds held by the City of Santa Ana for the Project ("HOME -ARP Loan"); - A loan in the maximum amount of $484,000 from the Inclusionary Housing Fund held by the City for the Project ("Inclusionary Loan") to be used for relocation purposes only if necessary; - Twenty -Five (25) U.S. Department of Housing and Urban Development Project -Based Vouchers ("PBV") from the Housing Authority of the City of Santa Ana. This letter shall evidence the City's pre -commitment of the City Assistance to the Developer for the Project subject to the conditions described below. City Assistance: The amount of the proposed City Assistance has been determined based upon the City's review of the Developer's request for the receipt of the City Assistance and the development proforma and projected cash flows for the Project submitted by the Developer to the City ("Proforma"). The City Manager has authority to approve revised development proformas and projected cash flows for the Project; provided, however, that the City Assistance is not increased or extended. The City Assistance shall include the following loan terms: • The HOME -ARP Loan shall be for a maximum principal amount of $5,256,327, or as much thereof as is disbursed for hard and soft costs in constructing the Project, provided from the HOME Investment Partnerships Program — American Rescue Plan fund: A portion of the $5,256,327 will be in the form of capital funds, repayable from residual receipts. The remaining portion of the $5,256,327 will be in the form of capitalized operating subsidy reserve. The exact amounts may be determined at construction closing. 3% simple interest per annum. Repayment from 50% of Residual Receipts (pro-rata with payments due in connection with other financing provided by other public agencies) (after payment of operating expenses, including social services expenses and monitoring fees, debt service, any deferred developer fee, and partnership fees to be described in the Agreement), with the remaining 50% to be disbursed to the Developer.