Housing Hope HCS-15-42-1213-198(1) 7/25/2016

notice the noncompliance remains uncured, the loan amount and any accrued interest, shall be due and payable to the City within thirty (30) days of such event. The Loan is provided to the Agency for the undertaking and performance of the Project. The Loan may be amended from time to time in the manner described elsewhere in this Loan Agreement, so long as the same remains consistent with the object of Exhibit A, as now or hereafter amended. The sum of any amendments to the Loan and this Agreement may only be expended in accordance with the budget contained in Exhibit B attached hereto, which is incorporated herein by reference, as may hereafter be amended (the "Project Budget"). The Agency shall manage the Project so that Project activity costs do not exceed the Project Budget. Further, the Agency shall absorb all costs in excess of the authorized Loan amount. 2. Rental Subsidy. If the Project receives or is expected to receive, Federal Section 8 assistance or any other similar rental assistance; should Agency's Section 8 or other rental assistance eligibility or participation be reduced or terminated, Agency will continue to serve the target population, as described in Exhibit A of this Agreement. If applicable, Agency must continue to apply for Federal Section 8 subsidies or other rental assistance as long as they are available. It is the responsibility of the Agency to notify the City or its designee in a timely manner of any termination or reduction in Section 8 or other rental assistance and whether such termination or reduction results in the Project failing to meet any applicable debt service coverage or expense coverage requirements. C. Promissory Note; Deed of Trust The Loan shall be evidenced by a non-recourse Promissory Note in the form of Exhibit C, attached hereto and incorporated herein by this reference (the "Promissory Note"). The Agency shall cause the Promissory Note to be secured by a Deed of Trust in the form of Exhibit D, attached hereto and incorporated herein by this reference. The Deed of Trust shall secure repayment of all funds provided under this Loan Agreement for rehabilitation of real property pursuant to the terms of this Loan Agreement. Prior to execution of the Deed of Trust for rehabilitation of real property under this Loan Agreement, the Agency shall submit to the City verification of its ownership interest in the property and of mortgage balances and recorded liens against the real property to be rehabilitated. Amended HOME Loan Agreement Housing Hope's Kennedy Court Improvement Project Page 4 of 53