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DMF/fm 6/17/81 AGREEMENT FOR RESIDENTIAL REHABILITATION SUBSIDIZED INTEREST LOAN PROGRAM This agreement, made and entered into this (,VVN day of Tol,r 1981, by and between the City of Santa Ana, a municipal corporation of the State of California ("CITY"), and First Interstate Bank of California, a California corporation ("BANK"), W I T N E S S E T H 1. CITY has adopted a Community Development Block Grant ("CDBG") Housing Rehabilitation Loan Program in accordance with the Housing and Community Development Act of 1974, as amended ("HCDA"), to assist in the rehabilitation of dwellings located in certain qualified BCDA target areas within the jurisdiction of CITY'S authority, hereinafter referred to as the "Program." 2. CITY desires BANK to make loans for property improvement ("Rehab Loans") to qualified borrowers ("Borrowers") owning properties in areas covered by the Program at below market interest rates. 3. CITY is willing to pay to BANK an interest reduction payment on behalf of Borrowers which will enable BANK to make Rehab Loans at subsidized rates desired by CITY. 4. The parties hereto desire to set forth the procedures which will apply to the processing of Rehab Loans and the terms and conditions which will apply to any Rehab Loan which may be approved by BANK subsequent to the date hereof. 5. CITY estimates the aggregate amount of all Rehab Loans requested under this agreement will not exceed Eight Hundred Thousand Dollars ($_800_,0Q0. 00 during the period commencing with the date of July 1, 1981, and ending July 1, 1982. CITY will furnish BANK with any modifi- cations to this estimate. WHEREFORE, in consideration of the respective and mutual covenants and promises hereinafter contained and made, and subject to all the terms and conditions hereof, the parties hereto agree as follows: