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 8 of 17 change orders be submitted to the Department for its approval, they shall be deemed accepted if not rejected in writing within 10 business days of receipt by the Department. Sponsor shall not authorize or approve any change orders rejected by the Department. 25. Inspection The Department and any authorized representative of the Department shall have the right, during construction and thereafter, to enter upon and inspect the construction of the Affordable Housing Development. Such right to inspect shall include, but shall not be limited to, the right to inspect all work done, all materials and equipment used or to be used, and all books and records, including payroll records, maintained in connection with the construction work. Such right of inspection shall be exercised in a reasonable manner. The Department shall have no affirmative duty to inspect the Affordable Housing Development and shall incur no liability for failing to do so. Once having undertaken any inspection, neither the Department, nor any representative of the Department shall incur any liability for failing to make any such inspection properly, or for failing to complete any such inspection. The fact that such inspection may or may not have occurred shall not relieve the Sponsor, the contractor, the construction lender, the architect, the structural engineer, the locality or anyone else of any obligation to inspect the Affordable Housing Development. 26. Updated Information Sponsor shall provide the Department updated documentation for any change in the information previously provided relating to the AHSC Loan, including updated sources and uses and income information. All changes shall be subject to Department approval. However, if the Affordable Housing Development is changed in any way as to make it ineligible under Section 103(a)(1) of the AHSC Guidelines, then the AHSC Loan commitment will be cancelled and all AHSC Loan funds awarded to the Sponsor shall be disencumbered. 27. Evidence of Existence of Application Selection Criteria Upon request, Sponsor shall provide to the Department evidence of the existence of the amenities, services, improvements, features and characteristics of the Affordable Housing Development which were included in the Application and awarded points under Section 107 of the AHSC Guidelines in the Department's rating of the Application. Failure to provide such evidence to the reasonable satisfaction of the Department may result in a reevaluation of the Application and the reduction or cancellation of the amount of the Award and the disencumbrance of Program funds awarded to the Sponsor. 28. Signave Sponsor shall place signs on the construction site for the Work stating that the Department is providing financing through the AHSC Program in an appropriate location(s), typeface and size containing the following message: AHSC Loan - Rental Affordable Housing Development NOFA Date: 01/29/16 Approved Date: 03/09/17 Prep Date: 07/20/17