STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT "HCD" - (SANTA ANA ARTS COLLECTIVE, L.P. & META HOUSING PROJECT)

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Meta Housing Corporation, City of Santa Ana, and Santa Ana Arts Collective L.P, 16-AHSC-11199 Page 5 of 17 EXHIBIT D Agreement. The contract and any amendments thereto shall be subject to the prior approval of the Department. 12. Affordable Housing Development Budget Unless otherwise approved in writing by the Department, prior to the close of any construction financing, the Sponsor shall provide to the Department for its review and approval, a copy of the construction lender(s)' approved development budget. 13. Reasonable Affordable Housing Development Costs Sponsor shall provide to the Department evidence that total development costs are reasonable and necessary for the proposed improvements. To verify cost reasonableness, the Department may require qualified third party verification of costs, evidence of the competitive bidding of major trades and real estate appraisals. Where the Affordable Housing Development is a component of a larger development, the Sponsor shall submit to the Department for its approval, a development cost sharing breakdown for the entire development which covers all development costs for each of the individual components of the entire development and includes a discrete development budget for the Affordable Housing Development consistent with the budget in the Application. Eligible costs for Affordable Housing Developments are limited to costs as specified in 25 CCR Section 7304 (a) & (b). 14. Sponsor Control of Affordable Housing Development Sponsor shall provide evidence satisfactory to the Department that the Sponsor identified in the Application and who demonstrated the requisite experience, pursuant to Section 106(a)(8) of the AHSC Guidelines, in the application process, has and will retain full control over the development, construction, ownership and management of the Affordable Housing Development through control of the Sponsor entityby the Sponsor either directly as Borrower, or as a managing general partner of Borrower, or as the mernber/manager of the general partner of the Borrower, if Borrower is a partnership) The same control requirement applies to any Borrower organized as a limited liability company. The failure to demonstrate the requisite control of the Sponsor entity by the Sponsor may result in significant delay in the processing, or potentially the cancellation, of the AHSC Loan, The Sponsor which demonstrated the requisite experience of owning and developing affordable rental housing, shall execute the Department's Sponsor Operating Guaranty to ensure that the Sponsor has the resources and experience to develop, own and manage the Affordable Housing Development. The organizational structure of the Borrower, including the control and ownership by the Sponsor or Sponsors, and any changes thereto, must be reviewed and approved by the Department and must comply with all Program requirements. 15. Relocation Plan If there is or will be any residential or commercial displacement directly or indirectly caused by the Affordable Housing Development, the Sponsor shall provide a relocation plan conforming to the requirements of state law and regulations issued by the Department in California Code of AHSC Loan - Rental Affordable Housing Development NOFA Date: 01/29/16 Approved Date: 03/09/17 Prep Date: 07/20/17