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3. thereafter to maintain, operate and professionally manage the Property as decent, safe, sanitary and affordable rental housing. D. The City, Agency and Developer desire by this Agreement for City and Agency to provide financial assistance to Developer in the form of loans and for the Developer to agree to construct and maintain affordable multi-family residential housing on the Property which shall remain affordable for a period of not fewer than 55 years. City shall provide a "City Loan" and the Agency shall provide an "Agency Loan" (together, the "Loans") to the Developer for development of the Property, all in accordance with the terms of this Agreement. E. Separate Promissory Notes shall be executed by Developer in the amount of the Loans to be made by City and Agency to Developer pursuant to this Agreement. The Agency Promissory Note will be in the original principal amount of $3,888,497 (see the Agency Promissory Note attached hereto and incorporated herein as Exhibit F) and the City Promissory Note will be in the original principal amount of $2,500,000 (see the City Promissory Note attached hereto and incorporated herein as Exhibit G). Separate Deeds of Trust will be executed for each promissory note and recorded against the Property in the Official Records (see the Agency Deed of Trust and City Deed of Trust attached hereto and incorporated herein as Exhibits H-1 and H-2, respectively). F. The City's and Agency's respective Loans to the Developer, and the Developer's construction of the Improvements on the Property pursuant to the terms of this Agreement, are in the vital and best interest of the City and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state, and local laws and requirements under which the redevelopment of the Project has been undertaken. G. Prior to and as a Condition Precedent to disbursement of any portion of the Loans, Developer shall apply for an obtain (and submit evidence documenting the same to the Executive Director) (1) an allocation of tax exempt bond financing from the California Debt Limit Allocation Committee (CDLAC), (2) an allocation of federal 4% low income housing tax credits ("Tax Credits") from the California Tax Credit Allocation Committee (TCAC), and (3) a firm commitment for a Senior Loan from a Senior Lender, all as reasonably approved by the Executive Director pursuant to Section 311.1 below. H. It is agreed by and between the Parties that the foregoing Recitals are a substantive part of this Agreement and the following terms and conditions are approved and together with the Recitals and all exhibits and attachments hereto, all of which are incorporated herein by this reference, shall constitute the entire Agreement between the Agency and Developer. 1. If there is any discrepancy between federal and state guidelines with regard to any of the terms and conditions contained herein, the more stringent (most restrictive) requirements shall apply. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, City, Agency and Developer agree as follows: 2 DOC SOC/ l 469583v5/200272-0003