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AFFORDABLE HOUSING COOPERATION LOAN AGREEMENT <br />(Colton Senior Complex) <br />THIS AFFORDABLE HOUSING COOPERATION LOAN AGREEMENT (Colton <br />Senior Complex) (this "Agreement') is entered into as of March 12, 2013 ("Effective Date"), <br />by and between the COLTON HOUSING AUTHORITY, a California public corporation <br />("Authority"), and the CITY OF COLTON, a California municipal corporation ("City"). <br />Authority and City are sometimes referred to in this Agreement, individually, as a "Party" or, <br />collectively, as the "Parties." The Parties enter into this Agreement, with reference to the <br />following recited facts: <br />RECITALS <br />A. Authority has entered into that certain Disposition and Development Agreement <br />(Colton Senior Complex) ("DDA") with Eagle Colton 55, L.P., a California limited partnership <br />("Developer"), pursuant to which Developer is to purchase from Authority that certain real <br />property owned by Authority and generally located in the block bordered on the north by East E <br />Street, on the east by North 9th Street, on the south by East F Street and on the west by North La <br />Cadena Drive, in City of Colton, California ("Property"), and construct a 120 unit multi -family <br />affordable senior citizen rental housing project ("Project') on the Property; <br />B. Developer is also required by the terms of the DDA to provide 51 one bedroom <br />units affordable to households earning no more than 50% of area median income, 29 one <br />bedroom units affordable to households earning no more than 80% of area median income and <br />21 two bedroom units affordable to households earning no more than 80% of area median <br />income; <br />C. Pursuant to the DDA, Authority agreed to loan Developer up to $4,924,000 to be <br />used to purchase the Property from Authority and construct the Project on the Property <br />("Authority Loan"); <br />D. Authority desires to borrow up to $4,450,000 from City to fund a portion of the <br />Authority Loan to Developer; <br />E. City desires to loan Authority up to $4,450,000 to fund a portion of the Authority <br />Loan in furtherance of the affordable housing goals of City; <br />NOW, THEREFORE, IN CONSIDERATION OF THE FACTS RECITED ABOVE, <br />THE PROMISES SET FORTH IN THIS AGREEMENT AND OTHER GOOD AND <br />VALUABLE CONSIDERATION, AUTHORITY AND CITY AGREE, AS FOLLOWS: <br />1. LOAN AGREEMENT <br />1.1 City Loan to Authority for Affordable Housing. City agrees to loan to <br />Authority, on a non -revolving credit basis, an amount not to exceed $4,450,000 ("Maximum <br />Loan Amount'), to partially fund the Authority Loan for construction of affordable housing in <br />46326.00002\7803737.4 -1- <br />