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HomeMy WebLinkAboutR32-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ORIGINAL REOUEST FOR COMMISSION/COUNCIL ACTION FROM: Barbara Lindseth Admin Services Director SUBJECT: Education Revenue Augmentation Fund Low Moderate Income Housing Notes DATE: December 9, 2004 -----..----..----.....----........-...---------------------------------....------------------------------------------------......------------..----------.......- Synopsis of Previous Commission/Council/Committee Action(s): On December 9, 2004 Redevelopment Committee Members Estrada and McGinnis recommended approval of the ERAF financing plan and borrowing from the Low- and Moderate Income Housing Fund. ---------------------.....-..------------..-----..--......--......------.............--------..-........-----------....-..-----------.......-----------------...-------------- Recommended Motion(s): (Communitv Development Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. ---.....-.....------------------....---------------..-----..--------------------------------------------------------------------------..-------------- Contact Person(s): Garv Van OsdelIBarbara Lindseth Phone: 663-1044 Project Area(s): All Ward(s): All Supporting Data Attached:lBl Staff Report I! Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Ltr/Memo FUNDING REQUIREMENTS: Amount: $1.828.023 Source: LM Income Housing Fund. Note Repav Budget Authority: Fv 2004-05 Budget SIGNATURE: ACLA 0 ~k "-~)~ )~~ Barbara Lindseth Administrative Services Director -------------------..--------------------------------------------------------------------------------.....-------------------------------..---- Commission/Council Notes: w~ J-fJor; ,51 --------------------------------------------- -------------------------------------------------------------------- GVO:bl:Agenda CDC ERAF 04-05.doc COMMISSION MEETING AGENDA MEETING DATE: 12/20/2004 Agenda Item Number: ~~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Education Revenue Aue:mentation Fund Low Moderate Income Housine: Notes Backe:round: On September 1,2002, the State Assembly and the Senate passed Assembly Bill 1768, Chapter 1127, which shifted $75 million in property taxes to the schools, whereby, the Economic Development Agency ("Agency") was required to transferred the amount of$622,600 to the Education Revenue Augmentation Fund ("ERAF") by May 10,2003. However, in order to do so the Agency found it necessary to borrow 50% of this amount from the Low- and Moderate Income Housing Fund, with the remaining 50% paid from the Auto Recycle land sales proceeds ($180,000), and lease revenues from the Golf Course ($131,300). For the fiscal year 2003-04, State legislation was passed that required redevelopment agencies to shift to ERAF $135 million in property tax revenues for K-12 schools and community colleges. In accordance with this legislation, by May 10,2004, the Agency remitted $1,052,740 to the county auditor. However, since the Agency had insufficient tax increment funds to pay its ERAF obligation, the Agency found it necessary to borrow 100% ofthe ERAF obligation from the Low- and Moderate Income Housing Fund. Current Issues: For the fiscal year 2004-05, State legislation has been passed that requires redevelopment agencies to shift to ERAF $250 million in property tax revenues for K-12 schools and community colleges. Each redevelopment agency, on or before May 10, 2005, must remit to the county auditor its ERAF amount as determined by the State Director of Finance. In making the determinations required, the State Director of Finance uses the redevelopment project area property tax increment amounts as reported in the 2002-03 fiscal year Controller's State of California Community Redevelopment Agencies Annual Report ("State Controller's Report"). Ifan agency fails to transmit the full amount of funds required, if it is precluded by court order from transmitting the amount, or it is otherwise unable to meet its full obligation, the county auditor, no later than May 15,2005, shall transfer any amount necessary to meet the obligation from the local legislative body's property tax allocation, including the City's allocation. In order to make the full ERAF allocation, an agency may use any funds that are legally available and not legally obligated for other uses, including, but not limited to, reserve funds, proceeds of land sales, proceeds of bonds or other indebtedness, lease revenues, interest, and other earned income. GVO:bl:Agenda CDC ERAF 04-05.doc COMMISSION MEETING AGENDA MEETING DATE: 12120/2004 Agenda Item Number: Community Development Commission Agenda Item Education Revenue Augmentation Fund Low Moderate Housing Note Staff Report Page -2 - However, if other funds are not available, an agency may borrow up to 50% of the current fiscal year's 20% Low- and Moderate Income Housing Fund allocation, which may be sufficient to pay 100% of the ERAF obligation, unless executed contracts would be impaired if the agency reduced the amount allocated to the Low- and Moderate Income Housing Fund. Pursuant to the State Director of Finance, the ERAF obligation for each of the Agency's redevelopment project areas, based on the 2002-03 State Controller's Report, is as follows: ERAF by Redevelopment Project Area Redevelopment Proiect Area 2002-03 Tax Increment ERAF Transfer State College Central City North Central City West Southeast Industrial Park Northwest Tri City Uptown South Valle Central City Projects Mt Vernon 40th Street Totals 5,958,162 1,195,798 18,401 3,669,343 1,541,135 1,495,893 438,576 768,357 2,435,537 760,213 180.1 06 18.461.521 590,192 118,384 1,822 363,265 152,572 148,093 43,419 76,067 241,118 75,261 17.830 1.828.023 The total ERAF obligation for the fiscal year 2004-05 is $1,828,023. Based upon the legislation, the Agency is allowed to use Low- and Moderate Income Housing Funds, in the form of a ten (10) year note receivable from each ofthe redevelopment project areas, for lOO% of the ERAF obligation if the Agency has no other funds available. In accordance with the condition of borrowing from the Low- and Moderate Income Housing Fund, the Agency may only borrow up to 50% of the current allocation into the Low- and Moderate Income Housing Fund, and the Agency must make a finding that there are insufficient other moneys to meet the ERAF obligation. The following chart makes such a finding and demonstrates the negative impact upon each of the redevelopment project areas if lOO% of the ERAF obligation is imposed, without the benefit of borrowing from the Low- and Moderate Income Housing Fund. GVO:bl:Agenda CDC ERAF 04-05.doc COMMISSION MEETING AGENDA MEETING DATE: 12/20/2004 Agenda Item Number: Community Development Commission Agenda Item Education Revenue Augmentation Fund Low Moderate Income Housing Note Staff Report Page - 3 - ctua - ayment A B C D E F G H I Project Area 2004-05 100% Deposit 20% All Pass Thru Non-Housing Admin Costs & Net Net Remaining Estimated ERAF to Low Mod Payments Debt Svc & Operation Remaining Including Tax Obligation Housing Contractual Expenses & Fiscal Year Other Revenue Increment Fund Obligations Other Mise Tax Sources Receipts Expenses Increment Onlv State College 6,010,000 590,192 1,202,000 67,470 4,505,376 476,547 -83 I ,585 -103,765 CCNortb 897,000 118,384 179,400 13,303 2,047,820 0 -1,461,907 -279,927 CCWest 18,000 1,822 3,600 266 \I ,200 0 1,112 19,612 Southeast Ind 3,600,000 363,265 720,000 41,285 2,708,687 23,135 -256,372 -26,372 Nortbwest 1,610,000 152,572 322,000 317,891 1,090,499 14,605 -287,567 -57,567 TriCity 1,750,000 148,093 350,000 54,426 1,588,839 3,755 -395,113 -350,113 Uptown 480,000 43,419 96,000 3,525 320,212 99,091 -82,247 -42,247 South Valle 790,000 76,067 158,000 25,629 552,993 44,907 -67,596 62,404 CCProjects 2,485,000 241,118 497,000 30,868 3,672,400 1,110 -1,957,496 - I ,093,244 MtVernon 690,000 75,261 138,000 105,228 407,625 13,649 -49,763 46,437 40th Street 170,000 17,830 34,000 30,250 7,350 6,826 73,744 75,744 A I 2004 05 ERAF P 18,500,000 1,828,023 3,700,000 690,141 16,913,001 683,625 -5,314,790 -1,749,038 The Agency's projected gross tax increment for the fiscal year 2004-05 is shown in column "B", with the total ERAF obligation shown in column "C". The 20% low and moderate set-aside (from which the Agency may borrow 50% for the ERAF obligation) is shown in column "D". Other obligations of the Agency, including administration and operating costs, are shown in columns "E", "F" and "G". After subtraction of the ERAF, 20% low- and moderate set-aside, and other obligations, the Agency is in a negative position (-$5,314,790) when only current fiscal year 2004-05 tax increment is considered as available (column "H"). When all other project area revenue sources (land sales, bond reserves, interest earnings, notes receivable, leases, etc) that may be available to the redevelopment project area are included, the negative impact of the ERAF obligation (-$1,749,038) is shown in column "I". To avoid the negative ERAF impact on the project areas it is recommended that 100% of the ERAF obligation ($1 ,828,023) should be borrowed from the 2004-05 Low- and Moderate Income Housing Fund. After borrowing from the Low- and Moderate Income Housing Fund, total tax increment for all project areas is then in a positive position ($78,985). Also, in anticipation of an estimated $2,000,000 ERAF payment, funds were set-aside from the Low- and Moderate Income Housing Fund in the Agency's fiscal year 2004-05 budget. GVO:bl:Agenda CDC ERAF 04-05.doc COMMISSION MEETING AGENDA MEETING DATE: 12/20/2004 Agenda Item Number: Community Development Commission Agenda Item Education Revenue Augmentation Fund Low Moderate Income Housing Note Staff Report Page - 4 - The following represents how the $1,828,023 ERAF payment will be paid by May 10, 2005: 1. Low and Moderate Income Housing Notes: State College Central City North Central City West Southeast Ind Park Northwest Tri City Uptown South Valle Central City Projects Mt Vemon 40th Street Total $590,192 118,384 1,822 363,265 152,572 148,093 43,419 76,067 241,118 75,261 17.830 $1.828.023 Environmental Impact: None. Fiscal Impact: As required by State legislation, the amount of $1,828,023 will be paid by May 10, 2005 to the County Auditor for deposit into the Education Revenue Augmentation Fund. The ERAF obligation will be paid from the Low- and Moderate Income Housing Fund. Notes payable will be executed in each of the redevelopment project areas as required. Recommendations: That the Community Development Commission approve notes payable from each of the redevelopment project areas, as outlined above, for payment of the fiscal year 2004-05 ERAF, and adopt the Resolution. /J I / .(1(<< l{ cGl u "'--~j~ 'I~I 'Yc j-~ Barbara Lindseth Administrative Services Director GVO:bl:Agenda CDC ERAF 04-05.doc COMMISSION MEETING AGENDA MEETING DATE: 1212012004 Agenda Item Number: ~",T 0" .... . "" t- .."''to ~ 1iiim' ~ hi III" o . '" .. DEPARTMENT OF <>"~/FC",,'''F I NAN c: E CF"F'"ICE OF' THE DIRECTOR ARNOLD SC:HWARZENEGGER, GOVERNOR STATE CAPITOL. ROOM 1 1 4S . SACRAMENTO CA. 95a 14~499B . WWW.DDf--.CA.GDV November 8, 2004 TO ALL COUNTY AUDITORS, REDEVELOPMENT AGENCIES, AND THEIR LEGISLATIVE BODIES: Chapter 610, Statutes of 2004, requires redevelopment agencies to shift $250 million in property tax revenues to K-12 schools and community colleges during the 2004,05 and 2005-06 fiscal years. The Director of Finance is required to determine an amount each redevelopment agency shall transfer to the Education Revenue Augmentation Fund (ERAF). It further requires the Director of Finance to notify each redevelopment agency and legislative body of the amount determined. In accordance with the above requirements, the attached document provides the amount determined for your redevelopment a.gency. Each agency must allocate the specified amount to the county auditor for deposit into the ERAF on or before May 10, 2005. By March 1, the legislative body shall report to the county auditor how the agency intends to remit the amount required, or that the legislative body intends to remit the amount in lieu of the agency pursuant to Section 33681.14 of the Health and Safety Code. If the legislative body, pursuant to Section 33681.12 of the Health and Safety Code, reported to the county auditor that it intended to remit the amount in lieu of the agency and the legislative body fails to transmit the full amount as authorized by May 10 of the applicable fiscal year, the county auditor, no later than May 15 of the applicable fiscal year, shall transfer an amount necessary to meet the obligation from the legislative body's allocations pursuant to Chapter 6 (commencing with Section 95) of Part 0.5 of Division 1 of the Revenue and Taxation Code. If the amount of the legislative body's allocations are not sufficient to meet this obligation, the county auditor shall transfer an additional amount necessary to meet this obligation from the property tax increment revenue apportioned to the agency pursuant to Section 33670, provided that no moneys allocated to the agency's Low and Moderate Income Housing Fund shall be used for this purpose. If you have any questions regarding this matter, please contact Pat Landingham, Assistant Program Budget Manager, at (916) 322-2263. MICHAEL C. GENEST Interim Director By: STEPHEN W. KESSLER Deputy Director h'~ ,'" IIU :,.:. Attachment _,J _ 'I'~.'I~.'.MI~'MI~ ol'~io'~'~I'~ MI~IMI'~I~IO OIOI~I!NININ!CIOI~ , l:: ~ ~:~I'~'ICIO CIO ~ CIOI~I~I~ ..... CIO O'I~ M .....,~ 0 ~ ~ ~ O:~I'~ ~ , Gl ''''':'llOlai c:i llOlN ai M u:i llOl'ai ~ c:i u:i llO llO!o:tjai ,...: ,...: an c:i llOfai llO,ai I.' 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() C Gl OJ < - C Gl E 0. o Gi > Gl "tl Gl ,0:: <fJ ~ E 'f) c0 l} 2 rn u E c;; u. ~ cr w ~ o cr " 9 C"} o o N "" C Q) E 0. o ID > Q) u Q) cr 1:' Q) E E Q) > o (!) c;; u o -' iJj ~ 1 2, 3 4 8 9 10 I 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (CO)[Py RESOLUTION NO. RESOLUTION OF THE COMMUNITY ~~VELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN EDUCA TIONAL REVENUE AUGMENT A TION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. WHEREAS, the legislature of the State of California enacted urgency 7 legislation adding Health and Safety Code Sections 33681.9 and 33681.10 and requiring the Agency to remit certain community redevelopment funds of the Agency to the San Bernardino County Auditor for deposit into the Educational Revenue Augmentation Fund created pursuant to the Revenue and Taxation Code (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.9(a)(2) the Director of Finance of the State of California has calculated the amount of money that the Agency is required to remit to the San Bernardino County Auditor for deposit into the ERAF on or before May 10,2005; WHEREAS, the Agency received a letter, dated November 8, 2004, from the Department of Finance of the State of California stating that the Agency is required to remit the total sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) (the "Agency FY 2004-05 ERAF Obligation") to the County of San Bernardino Auditor for deposit into the ERAF; WHEREAS, the Agency has found and determined that there are insufficient funds of the Agency to meet the Agency FY 2004-05 ERAF Obligation, without borrowing funds from the Low and Moderate Income Housing 1 6 7 8 9 101 11 12 13 14 15 16 17 18 19 20 21 22 231 241 I , 251 i I 26 27 28 I 2 3 4 Funds of the Agency for each of the redevelopment project areas of the Agency (collectively, the "Low-Mod Funds"); WHEREAS, Health and Safety Code Section 33681.9(b)(l) authorizes the Agency to borrow up to fifty percent (50%) of the Agency's FY 2004-05 Low-Mod 5 Fund allocation in order to make the State-mandated payment as required by Chapter 260, Statutes of 2003; Health and Safety Code Section 33681.9; WHEREAS, the Agency has further found and determined that although borrowing funds from the Low-Mod Funds will not expand or preserve the community's supply of affordable housing or otherwise promote the goal of providing affordable housing in the community, the loan of Low-Mod Funds to pay the Agency FY 2004-05 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, AS FOLLOWS: Section 1. The Commission hereby approves the ERAF Loan Plan. The purpose of this ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) as incurred by each of the redevelopment project areas ofthe Agency to the Low-Mod Funds, as evidenced by the eleven (11) promissory notes identified below. Such indebtedness is incurred by the Agency to satisfY the State-mandated redevelopment indebtedness of the Agency to transfer certain tax increment, or other available funds of the Agency, to the County of San Bernardino Auditor for deposit into the ERAF for Fiscal Year 2 8 9 10 11 12 13 14 15 16 171 i II 18!1 19 20 21 22 2311 24 25 26 .,"7 .-, 28 1 2 3 4 2004-05 pursuant to Chapter 260, Statutes of2003 (Health and Safety Code Section 33681.9). Section 2. The Agency hereby declares its intention to borrow the sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ;) 6 ($1,828,023) from the Low-Mod Funds (the "ERAF Loan Plan Amount") to remit to the County of San Bernardino Auditor for deposit into the ERAF as satisfaction of the Agency's FY 2004-05 ERAF Obligation under Health and Safety Code Section 33681.9 for fiscal year 2004-2005, as authorized by Health and Safety Code Section 33681.9(b). Section 3. The ERAF Loan Plan Amount shall be allocated among the Low-Mod Housing Funds of each redevelopment project area of the Agency as follows: State College Redevelopment Project $590,192 Central City North Redevelopment Project 118,384 Central City West Redevelopment Project 1,822 Southeast Industrial Park Redevelopment Project 363,265 Northwest Redevelopment Project 152,572 Tri City Redevelopment Project 148,093 Uptown Redevelopment Project 43,419 South Vaile Redevelopment Project 76,067 Central City Redevelopment Projects (Merged Projects) 241,118 Mt Veroon Corridor Redevelopment Project 75,261 40th Street Redevelopment Project 17,830 Total ERAF Loan Plan Amount for FY 2004-05: $1,828,023 3 1 2 3 4 ;:> 6 - j 8 9 10 11 12 13 14 15 16 17 181 I 19 20 21 22 Ii 23 24 25 26 Ii 27 28 Section 4. The ERAF Loan Plan Amount shall be evidenced by the eleven (11) promissory notes attached to the ERAF Loan Plan as Exhibits "A" through "K", inclusive. The Chairperson of the Community Development Commission of the City of San Bernardino is hereby authorized and directed to execute the ERAF loan Plan and each of the eleven (11) promissory notes, as attached in the original principal amounts as set forth for each such redevelopment project area in Section 3 of the ERAF Loan Plan. The date of each such promissory note shall be May 10,2005. The principal amount and interest under each such promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each promissory note. Section 5. Repayments of the ERAF Loan Plan Amount, plus interest thereon. shall be made under each promissory note to the applicable Low-Mod Fund by each redevelopment project area in each fiscal year commencing on May 10, 2006 and on each following May 10, thereafter to and including tenth (10th) anniversary of each promissory note from "Excess Revenues", as this term is defined in the next sentence. "Excess Revenues" means those excess tax increment revenues (as defined in the redevelopment plan for the applicable redevelopment project area) available and paid to the Agency, if any, in an applicable fiscal year between July 1, 2005 and May 10, 2015, after the Agency has made provision from such fiscal year tax increment revenues to pay all of the following for each such redevelopment project area: (i) all debt service on any outstanding bonds, notes, loans, money advanced to, other contractual obligations or other forms of indebtedness of the Agency as evidenced by each of the promissory notes for each particular redevelopment project area; (ii) the administrative and operational costs 4 8 9 10 II 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 I 2 I 3: of the Agency incurred in the implementation of the redevelopment plan and the undertaking of Agency redevelopment activities within the particular redevelopment project area; and (iii) the amount to be deposited into the Low-Mod 4 Fund for the particular redevelopment project area for such then current fiscal year. 5 6! No other source of funds of the Agency is pledged or made available thereafter for 7 the repayment of any amount of the ERAF Loan Plan Amount when due under any of the promissory notes. Section 6. All sums applied towards repayment of the Low-Mod Fund Loan Amount together with interest thereon. as evidenced by each of the promissory notes, are an indebtedness of the redevelopment project area to which such promissory note relates, payable from Excess Revenues and shall constitute an indebtedness of the Agency with respect to each of the applicable redevelopment projects, until paid in full, pursuant to Health and Safety Code Section 33681.9. Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this ERAF Loan Plan to the San Bernardino County Auditor for deposit to the ERAF on or before May 10, 2005. Section 8. The Executive Director of the Agency is further authorized and directed to identify the indebtedness as hereby created, in the Statements of Indebtedness for each of the redevelopment project areas of the Agency in the original principal amounts as set forth in Section 3. 5 I Section 9. 2 adoption. 3 1/ 4 1/ ;) / / 6 - II j 8 II 9' II 10 I I II II 12 II 13 14 II 1- I II ;)' I 16 II 17 II 18 II 19 II 20 II 21 22 II 23 II 24 II 25 II 26 II 27 28 This Resolution shall take effect upon the date of its 6 6 7 8 9 10 11 12 13 14 . 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2, 3 4 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING AN EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS AND PROMISSORY NOTES FROM REDEVELOPMENT PROJECT AREAS, AND AUTHORIZING EXECUTION THEREOF. ;) I HEREBY CERTIFY that the forgoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a meeting thereof, held on the _day of , 2004, by the following vote, to wit: Commission Members Nays Abstain Absent Ayes ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MCCAMMACK Secretary The foregoing Resolution is hereby approved this _day of ,2004. Chairperson, Community Development Commission of the City of San Bernardino Approved as to form and legal content: BY:~ Agency Counsel 7 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS (Fiscal Year 2004-2005) THIS EDUCATIONAL REVENUE AUGMENTATION FUND LOAN FROM COMMUNITY LOW AND MODERATE INCOME HOUSING FUNDS ("ERAF Loan Plan") is dated as of December 20, 2004 and evidences the obligation of the Agency to repay funds borrowed by the Agency from the Low and Moderate Income Housing Funds of the Agency to pay a portion of the Agency's fiscal year 2004-2005 deposit into the County of San Bernardino Educational Revenue Augmentation Fund, as mandated by Health and Safety Code Section 33681.9, Chapter 610, Statutes of 2004. This ERAF Loan Plan has been approved by the Agency in view offacts set forth in the following recital paragraphs: RECITALS WHEREAS, the legislature of the State of California enacted urgency legislation adding Heahh and Safety Code Sections 33681.9 and 33681.10 and requiring the Agency to remit certain community redevelopment funds of the Agency to the San Bernardino County Auditor for deposit into the Educational Revenue Augmentation Fund created pursuant to Revenue and Taxation Code (the "ERAF"); WHEREAS, under Health and Safety Code Section 33681.9(a) the Director of Finance of the State of California has calculated the amount of money that the Agency is required to remit to the San Bernardino County Auditor for deposit into the ERAF on or before May 10, 2005; WHEREAS, the Agency received a letter, dated November 8, 2004, from the Department of Finance of the State of California stating that the Agency is required to remit the total sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) (the "Agency FY 2004-05 ERAF Obligation") to the County of San Bernardino Auditor for deposit into the ERAF; WHEREAS, the Agency has found and determined that there are insufficient funds of the Agency to meet the Agency FY 2004-05 ERAF Obligation, without borrowing funds from the Low and Moderate Income Housing Funds of the Agency for each of the redevelopment project areas of the Agency (collectively, the "Low-Mod Funds"); WHEREAS, Health and Safety Code Section 33681.9(b) authorizes the Agency to borrow up to fifty percent (50%) of the Agency's FY 2004-05 set-aside obligation from the Low- Mod Funds in order to make the State-mandated payment as required by Chapter 610, Statutes of 2004; Health and Safety Code Section 33681.9; WHEREAS, the Agency has further found and determined that although borrowing funds from the Low-Mod Funds will not expand or preserve the community's supply of affordable I housing or otherwise promote the goal of providing affordable housing in the community, the loan of Low-Mod Funds to pay a..portion of the Agency FY 2004-05 ERAF Obligation will not impair any executed existing contracts of the Low-Mod Funds; NOW, THEREFORE, THE AGENCY HEREBY APPROVES THE ERAF LOAN PLAN FOR FUNDS BORROWED FROM THE AGENCY'S LOW AND MODERATE INCOME HOUSING FUNDS AS SET FORTH HEREIN AND DIRECTS THE EXECUTIVE DIRECTOR OF THE AGENCY TO REMIT TO THE AUDITOR OF THE COUNTY OF SAN BERNARDINO THE SUM OF $1,828,023 FROM THE AGENCY'S LOW-MOD FUNDS FOR DEPOSIT INTO THE EDUCATIONAL REVENUE AUGMENTATION FUND FOR FISCAL YEAR 2004-2005: Section I. The purpose of this ERAF Loan Plan is to evidence an indebtedness of the Agency in the original principal amount of One Million Eight Hundred Twenty-Eight Thousand Twenty- Three Dollars ($1,828,023) as incurred by each of the redevelopment project areas of the Agency to the Low-Mod Funds, as evidenced by the eleven (11) promissory notes identified below. Such indebtedness is incurred by the Agency to satisfy the State-mandated redevelopment indebtedness of the Agency to transfer certain tax increment, or other available funds of the Agency, to the County of San Bernardino Auditor for deposit into the ERAF for Fiscal Year 2004-05 pursuant to Chapter 610, Statutes of 2004 (Health and Safety Code Section 33681.9). Section 2. The Agency hereby declares its intention to borrow the sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) from the Low-Mod Funds (the "ERAF Loan Plan Amount") to remit to the County of San Bernardino Auditor for deposit into the ERAF in satisfaction of the Agency FY 2004-05 ERAF Obligation under Health and Safety Code Section 33681.9 for fiscal year 2004-2005, as authorized by Health and Safety Code Section 33681.9(b). Section 3. The ERAF Loan Plan Amount shall be allocated among the Low-Mod Housing Funds of each redevelopment project area of the Agency as follows: State College Redevelopment Project Central City North Redevelopment Project Central City West Redevelopment Project Southeast Industrial Park Redevelopment Project Northwest Redevelopment Project Tri City Redevelopment Project Uptown Redevelopment Project South Valle Redevelopment Project Central City Redevelopment Projects (Merged Projects) Mt Vernon Corridor Redevelopment Project 40th Street Redevelopment Project Total ERAF Loan Plan Amount for FY 2004-05: 2 $590,192 118,384 1,822 363,265 152,572 148,093 43,419 76,067 241 , 118 75,261 17,830 $1.828,023 Section 4. The ERAF Loan Plan Amount shall be evidenced by the eleven (11) promissory notes attached to-thisERAF Loan Plan as Exhibits "A" through "K", inclusive. The Chairperson of the Community Development Commission of the City of San Bernardino is hereby authorized and directed to execute each of the eleven (11) promissory notes, as attached in the original principal amounts as set forth for each such redevelopment project area in Section 3 of this ERAF Loan Plan. The date of each such promissory note shall be May 10,2005. The principal amount and interest under each such promissory note shall be payable by each redevelopment project area in accordance with the terms set forth in each promissory note. Section 5. Repayments of the ERAF Loan Plan Amount, plus interest thereon, shall be made under each promissory note to the applicable Low-Mod Fund by each redevelopment project area in each fiscal year commencing on May 10,2006 and on each following May 10, thereafter to and including tenth (1oth) anniversary of each promissory note from "Excess Revenues", as this term is defmed in the next sentence. "Excess Revenues" means those excess tax increment revenues (as defmed in the redevelopment plan for the applicable redevelopment project area) available and paid to the Agency, if any, in an applicable fiscal year between July I, 2005 and May 10, 2015, after the Agency has made provision from such fiscal year tax increment revenues to pay all of the following for each such redevelopment project area: (i) all debt service on any outstanding bonds, notes, loans, money advanced to, other contractual obligations or other forms of indebtedness of the Agency as evidenced by each of the promissory notes for each particular redevelopment project area; (ii) the administrative and operational costs of the Agency incurred in the implementation of the redevelopment plan and the undertaking of Agency redevelopment activities within the particular redevelopment project area; and (iii) the amount to be deposited into the Low-Mod Fund for the particular redevelopment project area for such then current fiscal year. No other source of funds of the Agency is pledged or made available thereafter for the repayment of any amount of the ERAF Loan Plan Amount when due under any of the promissory notes. Section 6. All sums applied towards repayment of the Low-Mod Fund Loan Amount together with interest thereon, as evidenced by each of the promissory notes, are an indebtedness of the redevelopment project area to which such promissory note relates, payable from Excess Revenues and shall constitute an indebtedness of the Agency with respect to each of the applicable redevelopment projects, until paid in full, pursuant to Health and Safety Code Section 33681.9. Section 7. The Executive Director of the Agency is hereby authorized and directed to cause the sum of One Million Eight Hundred Twenty-Eight Thousand Twenty-Three Dollars ($1,828,023) to be transferred from the Low-Mod Funds of the Agency in the amounts specified in Section 3 of this ERAF Loan Plan to the San Bernardino County Auditor for deposit to the ERAF on or before May 10,2005. Section 8. The Executive Director of the Agency is further authorized and directed to identify the indebtedness as hereby created, in the Statements of Indebtedness for each of the redevelopment project areas of the Agency in the original principal amounts as set forth in Section 3. 3 IN WITNESS WHEREOF, the Agency executes this ERAF Loan Plan, as follows: AGENCY Redevelopment Agency of the City of San Bernardino By: Judith Valles Chairperson of the Community Development Commission, its governing board (SEAL ) ATTEST: Agency Secretary APPROVED AS TO FORM: ~~ Agency SpecI Counsel 4 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) TillS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $590,192 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate of Interest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the State College Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From. Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TillS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 1 0, 2005 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defIned in the ERAF Loan Plan, of the Agency from the State College Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the fIling of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has fIrst granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $118,384 Date of this Note: May 10,2005 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City North Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20,2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. . Interest ,on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Central City North Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source offunds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued. interest hereunder. SECTION 5. This Note shall mature as of May 10,2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has fIrst granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this day of - at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $1,822 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City West Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. . Interest,onthe outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defined in the ERAF Loan Plan, of the Agency from the Central City West Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source offunds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $363,265 Date of this Note: May 10, 2005 Variable Rate of Interest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Southeast Industrial Park Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20,2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. . Interest-on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Southeast Industrial Park Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source offunds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued ' interest hereunder. SECTION 5. This Note shall mature as of May 10,2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $152,572 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Northwest Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. . Interest.on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2005 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Northwest Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 Executed this . day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $148,093 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate of Interest on Funds Invested for One (1 ) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Tri-City Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2.' Intcrest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date ofthis Note, and thereafter such interest rate shall be adjusted on each May 10, commencing on May 10, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Tri-City Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source offunds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE F AlTH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $43,419 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAlF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10,2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Uptown Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. .1 1 SECTION 2. . Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May ] 0, commencing on May ] 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May ]0) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May ] 0, commencing on May ] 0, 2006, solely from "Excess Revenues", if any, as this term is defined in the ERAF Loan Plan, of the Agency from the Uptown Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,20]5. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May ] 0, 20]5, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,20]5. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF TIIE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF TIIE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $76,067 Date of this Note: May 10, 2005 Variable Rate of Interest: LAIF Rate of Interest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the South Valle Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: TIIE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2.. Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the South Valle Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10, 2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation ofthe Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued. interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $241,118 Date of this Note: May 10, 2005 Variable Rate of Interest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Central City Redevelopment Projects - Merged Projects - (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20, 2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. .Inte:est on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (I) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the Central City Redevelopment Projects - Merged Projects, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10,2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first pfu,ted wTitten approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) THIS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $75,261 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note THIS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the "Note") and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the Mt. Vernon Corridor Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20,2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 15,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY THIS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. . Interest on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAlF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May 1 0, commencing on May 10, 2005 to be equal to the LAlF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defined in the ERAF Loan Plan, of the Agency from the Mt. Vernon Corridor Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued. interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 Executed this day of at San Bernardino, California. REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3 REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AGENCY PROMISSORY NOTE (Agency FY 2004-05 ERAF Obligation) TillS PROMISSORY NOTE IS A SPECIAL LIMITED OBLIGATION OF THE AGENCY PAYABLE SOLELY FROM THE SOURCE OF AGENCY FUNDS DESCRIBED HEREIN AND NEITHER THE FAITH NOR CREDIT NOR TAXING POWER OF ANY OTHER LOCAL AGENCY, INCLUDING THE CITY OF SAN BERNARDINO, IS PLEDGED HEREUNDER Initial Principal Amount $17,830 Date of this Note: May 10, 2005 Variable Rate ofInterest: LAIF Rate ofInterest on Funds Invested for One (1) Year on Date of Note, and Thereafter Such Interest Rate In Effect on Each Succeeding May 10 During Term of this Note TillS AGENCY PROMISSORY NOTE is dated May 10, 2005 (the ''Note'') and evidences an indebtedness of the Redevelopment Agency of the City of San Bernardino (the "Agency") to the Low- and Moderate-Income Housing Fund of the 40th Street Redevelopment Project (the "Low-Mod Housing Fund"). For value received, the Agency hereby promises to pay to the order of the Low-Mod Housing Fund at such address as the Agency shall designate, the principal amount of the Note at the times specified herein, together with interest thereon in accordance with the terms hereof. The Note is hereby tendered in accordance with Section 4 of that certain Educational Revenue Augmentation Fund Loan From Community Low and Moderate Income Housing Funds, dated as of December 20, 2004 (the "ERAF Loan Plan"), as approved by Agency Resolution No. R- _, dated December 20,2004 with respect to the facts set forth in such ERAF Loan Plan: THE AGENCY HEREBY AGREES TO PAY TIllS NOTE IN ACCORDANCE WITH THE FOLLOWING TERMS: SECTION 1. The Note is tendered by the Agency to the Low-Mod Housing Fund as evidence of the indebtedness of the Agency to the Low-Mod Housing Fund incurred in connection with an advance (the "Advance") made by the Low-Mod Housing Fund to the Agency under the ERAF Loan Plan. The terms and provisions of the ERAF Loan Plan are hereby incorporated into this Note by this reference. Capitalized terms used herein and not otherwise defmed shall have the meaning assigned to them in the ERAF Loan Plan. 1 SECTION 2. .Inte:est on the outstanding principal balance of this Note, together with any accrued and unpaid interest thereon, shall accrue from its date, at a variable rate of interest until paid in full. The variable rate of interest shall be initially established at a rate per annum equal to the rate of interest offered by the Local Agency Investment Fund of the State Treasurer of California on local agency funds invested for one (1) year (the "LAIF Rate of Interest") in effect on the date of this Note, and thereafter such interest rate shall be adjusted on each May I 0, commencing on May 1 0, 2005 to be equal to the LAIF Rate of Interest on each such interest rate adjustment date (e.g.: May 10) for so long as any sum is payable under this Note. SECTION 3. Payments of principal and interest under the Note shall be made by the Agency to the Low-Mod Housing Fund on each May 10, commencing on May 10, 2006, solely from "Excess Revenues", if any, as this term is defmed in the ERAF Loan Plan, of the Agency from the 40th Street Redevelopment Project, or other legally available funds of the Agency. It is anticipated that the Advance will be repaid to the Low-Mod Housing Fund by the Agency on or before May 10,2015. SECTION 4. The Agency hereby pledges to make payments hereunder from Excess Revenues of the Agency. The pledge of the Agency under this Section 4 of the Note shall at all times be subordinate to any and all other outstanding, or as hereafter may be outstanding, bonds, notes or other forms of indebtedness of the Agency payable by the Agency in whole or in part from tax increment revenue or other legally available funds of the Agency and shall not constitute a prior lien on such revenues or other legally available funds of the Agency. The Agency hereby acknowledges and agrees that the Note shall be considered as an indebtedness of the Agency as the same is intended for purposes of the filing of a statement of indebtedness with the County of San Bernardino pursuant to Health and Safety Code Section 33675. This Note is a special and limited obligation of the Agency and the sole source of funds as pledged for the repayment thereof is as provided in Section 3 and in this Section 4. Neither the taxing power of the Agency or any other agency is pledged to repay the principal or accrued interest hereunder. SECTION 5. This Note shall mature as of May 10, 2015, unless prepaid in full before such date. The outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be immediately due and payable upon the Maturity Date May 10, 2015, and the Agency shall tender to the Low-Mod Housing Fund such amount on or before May 10,2015. SECTION 6. The Agency may prepay the principal amount of the Note and accrued interest thereon, at any time without penalty upon thirty (30) days prior written notice to the Agency. SECTION 7. The Low-Mod Housing Fund shall have no power to transfer or assign its right to receive the payment of principal and payments of accrued interest under the Note unless the Agency has first granted written approval to the Low-Mod Housing Fund for such a proposed assignment in its sole and absolute discretion. 2 California. Executed this _day of at San Bernardino, REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: 3