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"Property" means the real property described in Exhibit A attached hereto. <br />ARTICLE 2 <br />Financing <br />Section 2.1. Local Affordable Housing Aid Funds. Money from the City's Local Affordable <br />Housing Aid Funds will be used by the Lender to make a Forgivable Loan to the Borrower of not <br />more than $250,000 to provide cost assistance for project costs related to the purchase of the <br />Property and the construction of up to three (3) units of affordable housing. <br />ARTICLE 3 <br />Forgivable Loan Terms and Conditions <br />Section 3.1. Basic Forgivable Loan Terms. The principal amount of the Forgivable Loan shall not <br />exceed $250,000, comprised of (a) $55,000 contribution to the Property price and (b) $195,000 to <br />be applied to the construction of the housing units. The term of the Forgivable Loan is set forth in <br />Section 8.1 of this Agreement. <br />Section 3.2. Conditions Subsequent to Forgivable Loan. <br />(a) All housing units constructed by the Borrower on the Property shall meet the Local <br />Affordable Housing Aid requirements for a minimum of five years, including but not <br />limited to 80% AMI income maximum for all renters. <br />(b) Borrower shall provide City with itemized receipts for the construction of the apailuients, <br />acquisition of Property, and related site work totaling $250,000 or more upon completion. <br />Section 3.3. Assignment. If the Borrower sells, conveys, transfers, further mortgages or <br />encumbers, or disposes of the Property, or any part thereof or interest therein, or enters into an <br />agreement to do any of the foregoing, the Lender must approve in writing if the Borrower is not <br />the beneficiary of the action. <br />Section 3.4. Termination. This Agreement shall automatically terminate without any notice to <br />Borrower if Borrower fails to satisfy the conditions subsequent pursuant to Section 3.2. <br />ARTICLE 4 <br />Default and Collateral <br />Section 4.1. Default. The Borrower shall be in default under this Agreement upon the happening <br />of any one or more of the following events. <br />(a) The Borrower is in breach in any material respect, of any obligation or agreement under <br />this Agreement (other than nonpayment of any amount payable on the Forgivable Loan) <br />and remains in breach in any material respect for thirty (30) business days after written <br />notice thereof to the Borrower by the Lender; provided, however, that if such breach shall <br />reasonably be incapable of being cured within such thirty (30) business days after notice, <br />2 <br />