HopeWorks Station Residential 5/1/2018

agrees that the lien of its Deed of Trust shall initially be in lien position set forth in the Priority Agreement. 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 City. G. Term of Agreement The Effective Date ("Effective Date") of this Agreement shall be May , 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 December 31, 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 December 31, 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 Notwithstanding the minimum periods of affordability required by the HOME regulations, the term of this loan is determined by this Section I, Subsection G. Upon completion of the HOME Compliance Period, the HOME-Assisted Units shall thereafter be City-Assisted Units, and shall comply with the requirements of City- Assisted Units ("City-Assisted Units"), for the remaining term of the loan, the End Date of the Agreement, as specified in the Use Restriction Covenant Agreement. 2. City Compliance Period: For City-Assisted Units, as defined herein and in Exhibit A, Loan Agreement Housing Hope Properties Page 4 of 51