Cocoon House 4/19/2018 - Laserfiche WebLink

Covenant Agreement, including but not limited to any deed of trust to which the City may subsequently agree to subordinate the mortgage it holds. Except as otherwise provided herein, the Agency shall cause any subsequent mortgagee or lienholder on the Project to be approved in writing by the City and shall require such mortgagee or lienholder to agree to subordinate the lien of its security instruments, if any, to the Covenant Agreement. Notwithstanding the foregoing, the City acknowledges and agrees that the lien of its Deed of Trust shall initially be subordinate to deeds of trust in favor of Peoples Bank and the State Department of Commerce at Financing Closing. The City agrees to execute such Priority Agreements as reasonably necessary to establish the foregoing. F. Release of Funds/Notice to Proceed The City shall furnish the Agency with written notice to proceed upon release of funds from HUD related to the environmental review of the Project pursuant to 24 CFR Part 58. No construction work on the Project prior to the environmental review release of funds notice to proceed shall occur without prior written approval from the County. G. Term of Agreement The Effective Date ("Effective Date") of this Agreement shall be April14 2018. The term of this Agreement begins on the Effective Date of the Agreement and expires forty (40) years from the date of project completion, which shall be June 1, 2059, the End Date. ("End Date"). 1. For HOME-Assisted Units as defined in Section III A and Exhibit A of this Loan Agreement, ("HOME-Assisted Units"), the HOME Program Compliance Period ("HOME Compliance Period") to serve the target population will commence on the Effective Date of this Agreement and expires on the latter of June 1, 2039 or twenty (20) years from the date of the Project Completion in IDIS ("Completion Date"). Throughout the HOME Compliance Period, as specified in the Use Restriction Covenant Agreement, the HOME-Assisted Units shall remain affordable and in compliance with the HOME requirements during the HOME Program Compliance Period. Minimum HOME Program Compliance Period — The minimum period of affordability for HOME-assisted units shall be not less than the applicable period specified in 92.252(e) as follows: Rental Housing Activity Average Per-Unit HOME $ Minimum Affordability Period Rehabilitation or acquisition of <$15,000/unit 5 years existing housing $15,000 -$40,000/unit 10 years >$40,000/unit 15 years Refinance of rehabilitation Any$ amount 15 years project New construction or Any$ amount 20 years acquisition of new housing Loan Agreement Cocoon House Page 4 of 51