80A - SETTLEMENT AGMT FINAL VERSION

Home Browse Search

amount of Ten Million, Eight Hundred Thousand Dollars ($10,800,000) for Phase R-1 (the "Phase R-1 Agency Loan") and Four Million, Seven Hundred Seventy Thousand Dollars ($4,770, 000) for Phase R-2 (the "Phase R-2 Agency Loan") and One Million, Five Hundred Thousand Dollars ($1,500,000) for Phase FS (the "Phase FS Agency Loan"). The Phase R-1 Agency Loan, the Phase R-2 Agency Loan, and the Phase FS Agency Loan shall be adjusted upward and/or downward if and to the extent the Total Development Costs set forth in the Revised Budget varies from the Total Development Cost set forth in the Budget. The Phase R-1 Loan, Phase R-2 Loan and the Phase FS Agency Loan are sometimes collectively referred to herein as the "Agency Loans." 314.2 Repayment of the Agency Loans. The Phase R-1 Agency Loan, the Phase R-2 Agency Loan and the FS Agency Loan shall each be evidenced by a separate Promissory Note, and the Developer's obligation to repay each such Agency Loan shall be set forth in such Promissory Notes (the "Phase R-1 Promissory Note," "Phase R-2 Promissory Note" and the Phase FS Promissory Note or, collectively the "Promissory Notes"). The Agency Loans shall be funded solely from moneys from a Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the California Health and Safety Code, all within the meaning of Section 1720(c)(4) of the California Labor Code. Capitalized terms in this Section 314.2 not defined herein are defined in the Promissory Note. (a) Phase R-1 Promissory Note and Phase R-2 Promissory Note Payable From Residual Receipts. The Phase R-1 Promissory Note and Phase R-2 Promissory Note shall be payable from fifty percent (50%) of the "Residual Receipts" of the Phase of the Rental Portion of the Project to which such Promissory Note relates, after payment of (i) Operating Expenses, and (ii) Debt Service allocable to such Phase of the Rental Portion, until such Promissory Note has been paid in full; provided, however, that if such calculation results in a negative number for any given year, Residual Receipts shall be zero for that year. In the event that the Developer obtains other approved financing that also requires payment from Residual Receipts, the Residual Receipts shall be allocated to repayment of both (or all) loans in an amount proportionate to the relative amount of such loans, so that each soft loan receives a proportional share of a total of no more than fifty percent (50%) of the Residual Receipts for such Phase of the Rental Portion of the Project in each year. (b) Phase FS Promissory Note. The Phase FS Promissory Note is payable after close of escrow of all of the For-Sale Units from twenty-five percent (25%) of the net proceeds of such sales after Developer has received a return of twelve percent (12%) on costs, as more particularly set forth in the Phase FS Promissory Note. In the event that such amount is not sufficient to pay the full amount of the Phase FS Promissory Note, the remaining balance of the Phase FS Promissory Note shall be reduced to zero upon the Developer's payment of the foregoing amount to the Agency. 314.3 Reporting Requirements for the Rental Portion of the Project. With respect to each Phase of the Rental Portion, the Developer shall annually, on or before April 30th of each year, commencing in the year after the issuance of the first certificate of occupancy for such Phase, submit to the Agency an audited financial statement and a Residual Receipts Report, in the form attached hereto as Attachment No. 10 and incorporated herein, which shall provide the basis for the Developer's payment of Residual Receipts to the Agency with respect to such DOCSOGI 400673v14/200272-0001 41