Homes and Hope Community Land Trust 8/25/2020

This City of Everett Local Improvement District Assessment Release Agreement ("Release Agreement") is between the City of Everett, a Washington Municipal Corporation ("City") and the Housing Authority of the City of Everett, a body corporate and politic of the State of Washington ("EHA"). The City and EHA are each a Party and collectively the Parties to this agreement. The parties agree as follows: I. RECITALS A. EHA is the owner of real property identified under Snohomish County Tax Parcel #28051900200100 ("Property") and legally described in Exhibit A attached hereto. The Property is subject to a Quit Claim Deed, recorded under Snohomish County Recording Number 9502240123, recorded February 24, 1995 and attached hereto as Exhibit B (the "Deed"). The Deed secures an obligation in the amount of Ninety Thousand Two Hundred Seventy Two Dollars and Fifty Cents ($90,272.50)pursuant to the following provision: In the event the Housing authority sells the property to a person or organization which is not exempt from payment of LID assessments, proceeds from the sale of the property will be used, as a first priority, to reimburse the City of Everett for all funds expended for the assessment on said property, under LID 716A. The amount of the City's payments total Ninety Thousand Two Hundred Seventy-two Dollars and Fifty Cents ($90,272.50) In the event the Housing Authority improves the property, the Housing Authority will recognize the LID 716A improvements and the costs thereof as a cost of acquisition of said property and improvement and will pursue all reasonable avenues of funding sources to reimburse the City for all City funds expended for said assessment which amounts to Ninety thousand Two Hundred Seventy-two Dollars and Fifty Cents ($90,272.50). It is recognize that funding sources for Everett Housing Authority improvement of the property may not recognize property acquisition and improvement costs and that if this is the case, such funds may never become available. (collectively,the "LID Provision"). B. On or about the day hereof, EHA has sold the Property to Homes and Hope Community Land Trust("Trust") for development of affordable housing pursuant to that certain Commercial & Investment Real Estate Purchase and Sale Agreement with a reference date of July 18, 2019, as amended. The Trust and the City have executed the Repayment Agreement dated August_ , 2020 secured by the Promissory Note executed by the Trust dated August_ , 2020 and the Deed of Trust executed by the Trust dated August_ , 2020 and recorded against the Property under auditor's number . The Trust and the City have also executed the Restrictive Covenant dated August , 2020, recorded against the Property under auditor's number . This Repayment Agreement, Promissory Note, Deed of Trust, and Restrictive Covenant are collectively referred to in this Release Agreement as the "Trust-City Documents." FG:53759634.5