1 SECOND AMENDMENT TO PERMANENT LOCAL HOUSING ALLOCATION PROGRAM LOAN AGREEMENT (The Aspire Project) THIS SECOND AMENDMENT TO PERMANENT LOCAL HOUSING ALLOCATION PROGRAM Second day of ____________________, 2025, by and between the CITY OF RIVERSIDE, a California , a California limited RECITALS A. The City has received Permanent Local Housing Allocation program funds from the State of California (PLHA Funds), pursuant to Chapter 364, Statutes of 2017 9SB2, Atkins), as authorized by Health and Safety Code Section 50470, which created the Building Homes and Jobs Trust Fund and the PLHA Program. The PLHA Funds must be used in accordance with the guidelines issued by the California Housing and Community Development Department and must support the increase of housing for low income households. B. On January 12, 2021, City and Developer entered into that certain Permanent Local Housing Allocation Program Loan the City agreed, subject to the satisfaction of certain conditions precedent, to provide financial assistance to Developer for the construction of a multi-family, affordable housing project for termed-out foster youth and homeless youth, consisting of approximately thirty- C. On September 16, 2021, City and Developer entered into that certain First with Attachment No. 4-A. B. The City and Developer desire to amend the Agreement to increase the loan from the City to Developer from PLHA Funds (the in the additional amount of Five Hundred One Thousand Eight Hundred Eighty-Seven Dollars and Seventy-Five Cents ($501,887.75), for a total revised amount of One Million Forty-Two Thousand Nine Hundred Six Dollars and Seventy-Five Cents ($1,042,906.75). NOW, THEREFORE, incorporating the recitals set out above, the Parties hereto mutually agree to the following amendment to the Agreement. 1. additional amount of Five Hundred One Thousand Eight Hundred Eighty-Seven Dollars and Seventy-Five Cents ($501,887.75), for a total revised amount not to exceed One Million Forty-Two Thousand Nine Hundred Six Dollars and Seventy-Five Cents ($1,042,906.75). 2 2. Attachment No. 5, Budget, is hereby amended to include Attachment No. 5-A, attached hereto and incorporated herein. 3. All other terms and conditions of the Agreement between the Parties which are not inconsistent with the terms of this First Amendment shall remain in full force and effect as if fully set forth herein. [SIGNATURES ON FOLLOWING PAGE] 3 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Permanent Local Housing Allocation Program Agreement to be duly executed the day and year first above written.CITY OF RIVERSIDE, a California charter city and municipal corporation By:___________________________Mike FutrellCity ManagerAttest:_________________________Donesia GauseCity ClerkApproved as to Form: By:___________________________Sean B. MurphyDeputy City Attorney THE ASPIRE, LP, a California limitedpartnershipBy: Kingdom Riverside LLC, a California limited liability company, its managing general partnerBy: Kingdom Development, Inc., a California nonprofit public benefit corporation, its sole member and managerBy:________________________William LeachPresidentBy: IHO-The Aspire LLC, a California limited liability company, its administrative general partnerBy: Innovative Housing Opportunities, Inc., a California nonprofit public benefit corporation, its sole member andmanagerBy: ______________________Rochelle MillsPresident and CEO20-0470.1C SBM\\rc-citylaw\CYCOM\WPDOCS\D010\P043\00906230.docxApproved as to Form: By:___________________________
4 ATTACHMENT NO. 5-A Budget (Attached)
Description Scheduled ValueADDITIONAL COSTSTOTAL WITH COST DIFFERENCE COMMENTSSOURCE OF FUNDS:Loan Funds XXXX4094 11,312,725.00Interest Reserve 0.00Loan Funds XXXX4095 7,241,960.00Interest Reserve 0.00Tax Credit Equity 9,860,419.00City of Riverside - HOME 459,981.00City of Riverside -2019 PLHA541,019.00City of Riverside -2020 PLHA501,877.75State HCD-MHP7,678,832.00Deferred Developer Fee1,572,743.02(14,439.28)1,558,303.74 Reduced to cover funding gapGP Equity- State Tax Credits4,899,147.30Construction Ln Pay Down Conversion(18,554,685.00)Deferred Equity 0.00TOTAL 25,514,019.07(14,439.28)1,558,303.74 0.00USE OF FUNDS:LAND7,946.57HARD COSTS Construction Contract 14,116,548.00Construction Contract 0.00SUB-TOTAL HARD COSTS - Contract 14,116,548.00LESS RETAINAGE @ 10% 0.00SUB TOTAL HARD COST LESS RETAINAGE 14,116,548.00WSST @ 9.6% 0.00TOTAL CONTRACT HARD COSTS + WSST 14,116,548.00OWNER HARD COSTS Other 0.00TOTAL OWNER HARD COSTS 0.00SUB TOTAL HARD COSTS 14,116,548.00HARD COST CONTINGENCY705,827.40 190,495.42 896,322.82Increased costs are the result of material price increases and misc additional work. See attached change order tracker.TOTAL HARD COSTS 14,822,375.40 190,495.42SOFT COSTSAppraisals 12,800.00$ Building Fees & Permits 368,787.32$ Impact Fees 251,212.68$ Architectural & Engineering 1,262,210.00$ Environmental Reports 32,683.98$ Environmental Testing / Inspections 126,000.00$ CASp Consultant 18,850.00$ survey 3,200.00$ Energy Reports 67,500.00$ Building Mural 50,000.00$ Advisory Fees 260,000.00$ Construction Manager 154,000.00$ Builders Risk Insurance 235,469.00$ 6,055.61 241,524.61Project experienced delays in gettting power resulting in additional covered months needed.Accounting 78,000.00$ Legal Fees 154,775.27$ Plan and Cost Review 9,250.00$ Construction Reports 32,300.00$ Market Study 18,485.73$ Admin Misc. 17,223.00$ Prevailing Wage Monitoring 96,938.00$ Marketing & Advertising 39,881.00$ Lease-up 50,055.26$ Transition Reserve 774,219.98$ Services Reserve 750,000.00$ Capitalized Operating Reserve 118,214.74$ Residential Unit Furnishings 175,000.00$ Common Area Furnishings 134,000.00$ ATTACHMENT NO. 5-AThe Aspire Project Budget
TCAC Fees 56,216.00$ CDLAC Fees 4,199.50$ Bond Issuance Costs 75,487.15$ Developer Fees 2,876,919.45Legal Fees - Redstone60,000.00LATE DELIVERY OF CREDITS0.00319,766.00 319,766.00As a result of delay in getting TCO, late credit delievery adjuster will be issued.Soft Cost Contingency122,792.28CLOSING COSTS/FINANCING FEESConstruction Review & Inspections0.00Title / Escrow / Recording70,000.00Appraisal & Misc Financing Costs25,000.00Lender Legal75,000.00Construction Loan Fees120,605.45INTEREST RESERVEConstruction Period Interest XXXX4094968,736.78Construction Period Interest XXXX4095435,806.78SUB TOTAL INTEREST RESERVE 1,404,543.56SUB TOTAL SOFT COSTS 10,181,819.35 311,382.33 10,493,201.68SUB TOTAL HARD COSTS 14,822,375.40 190,495.42 15,012,870.82TOTAL COST OVERRUNS 501,877.75TOTAL PROJECT COSTS 25,012,141.32 501,877.75 25,514,019.07