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HomeMy WebLinkAbout2022 CON D Avenue Housing Associates - Kimball Highlands Promissory Note - CDC HA LoanPROMISSORY NOTE [Kiinball Highlands - CDC -HA Loan] $1O,482,000hOO As of .11'' , 2022 National City, California RECITALS A. WHEREAS, COMMUNITY DE ELOP E T COMMISSION-HOUSIN AUTHORITY OF THE CITY OF NATIONAL CITY, a public body, corporate and politic ("Lender"), Centro De Salud De La Comunidad De San Ysidro, Inc., dba n Ysidro Health, and Community HousingWorks, a California nonprofit public benefit corporation entered into that certain Disposition and Development Agreement (Kimball Highlands Master Plan) dated as of October 20, 2020 ("DDA"); B. WHEREAS, I. AVENUE HOUSING ASSOCIATES, L.P., a California is limited partnership ("Borrower") is the affiliate of Community H usingWor s, California nonprofit public benefit corporation, and Developer is the "Site 1 Owner" and the "Site 2 Owner" as defined in the DDA, and the C. WHEREAS, pursuant to the DDA, Lender is making a loan to Borrower in the arriount. of 10, 2,000.00. NOW, THEREFORE, FOR VALUE RECEIVED, Borrower promises to pay to the order of Lender, at 1243 National City Blvd., National City, California 91950, or at such other place as Lender may from time to time designate in writing, (a) the principal sum of 10,4 2,000 00, with interest from the dates of disbursement of the loan until paid at the rate of 3.0% simple interest, and (b) all fees, costs and expenses payable hereunder. 1. Definitions; Interpretation; Accounting. 1.1 Definitions. Initially capitalized words and terms used in this Note without definition shall have the meanings ascribed thereto in the DDA or the following definitions, unless. the context or use clearly requires otherwise: "Base Rate" means a fluctuating interest rate per annu m as shall be in effect from tune to time, which rate at all times shall be equal to the rate of interest announced publicly by Bank of America, I. -1.., from time to time as its base rate. Page 1 "Capital Improvements" means all work and improvements with respect to the Property for which costs and expenses may be capitalized in accordance with GAAP. "Cash Flow" means, for the applicable period of time, the remainder of Net Operating Income less Debt Service, "Commencement Date" shall mean the earlier of when the Construction has been as certified by the project architect, or (b) when the Improvements have been placed in service. "Commission Deed of Trust" means the Deed of Trust of even date herewith by which this Note is secured. "Construction" miens the construction to be performed by Borrower pursuant to the DDA. "Debt Service" means scheduled debt service on the Senior Loan and any other loans approved by Lender whioh are senior to the Commission Deed of Trust. "Effective Gross Income" means Operating Income after allowance for vacancy and collection losses "Executive rector" means the Executive Director of Lender or their designee. "Fair Market Value" shall have the meaning provided in Section 1263.320. of the California Code of Civil Procedure or any successor statute thereto. "Fiscal Year" means the fiscal year of Bonower, which is the calendar year. "GAAP" has the meaning set forth in Section 1,3 of this Note. "Improvements"means the improvements to be made to the Property by rro rer4 in accordance with the DDA. "Net operating Income" means, for the applicable period of tine,. the amount, if any, by which Operating Income for such period exceeds Operating Expenses paid by or'ro er during such period. The calculation of Net Operating Income for each Fiscal Year shall be computed based on GAAP(whether or not Operating Expenses are properly deductible or must be characterized as a capital expenditure under the Internal Revenue enue Code). "Net Re nancin Proceeds" means, from time to time, the proceeds of any Refinancing (less any reserves required by any lender, investor or CAC) in excess of (a) the amount of any senior obligation or debt secured by the Property and satisfied out of such proceeds, and (b) the reasonable and customary costs and expenses incurred in connection with such Refinancing. "Net Sale Proceeds" means, from time to time, the gross proceeds of a Sale, irrespective ofthe form of said proceeds, less (a) payment in full ofthe Senior Loan and any other Page 2 loans approved by Lender which are senior to the Commission Deed of Trust, i. t °n of the cash equity invested in the project by the partners in Borrower, (c) any reserve reasonably contemplated by Borrower's er's partnership agreement at the time this Note was executed by Borrower or rewired by TCAC, and (d) reasonable and customary costs and expenses incurred by Borrower in connection with the subject Sale. If Lender reasonably determines that any Sale is not made in an arm's length transaction, other than to a generalpartner in orro ver pursuant to an option or right of first refusal granted to such general partner or its affiliate on or before the date this Note was executed by Borrower, then instead of the Net Sale Proceeds being the result of the aforementioned tioned deductions from the gross proceeds of the subject Sale, the Net Sale Proceeds shall be the result of the aforementioned deductions from the Fair Market et Value of the Property, "Official Records" means the Official Records of the County of San Diego, California, , "Operating Expenses" means, for the applicable period of time, all costs and expenses inclined by Borrower in the ordinary course o.f the management, ownership, andfor operation of the Property by Borrower, including, without limitation, (a) tax creditsyndication, partnership management, guaranty, monitoring, asset management and other fees payable to the partners of Borrower each in the amounts is set forth in the Partnership Agreement as in effect as of the date of this Note, (b) any credit deficiency payments or tax equivalency payments owed to the limited partner pursuant to the Partnership Agreement as in effect as of the date of this Note, (c) all amounts deposited in the reserve fund of the Project for replacements, provided, however, such amounts shall not, without the prior approval of the Executive Director, which approval shall not be unreasonably withheld, exceed those amounts deposited as reserves for similar projects in California, all amounts deposited in the operating reserve fund of the Project, provided, however, such amounts shall not, without the prior approval of the Executive Director, which approval shall not be unreasonably withheld, exceed those amounts deposited as operating reserves for similar projects in California, and a any development fee payable to Developer and approved . by the Executive Director, the payment of which has been deferred. With reference to the reserve fundsreferred to in subdivisions c and (d), above, Lender agrees that any such reserve funds required by the Senior Lender and/or the Tax Credit Partner shall be deemed reasonable. Debt Service is not an OperatingExpense. Operating Expenses shall not include any expenses for Capital Improvements, except for Capital Improvements which are not paid from reserves. Operating Expenses shall be calculated on a cash basis, The first adjustment ofthe Social Services Fees shall be made on January I following the date onwhich the Certificate of Completion issues. "Operating Income" means, for the applicable period of time, all proceeds received by Bonower from the operation of the Property and from any and all sources resulting from or attributable to the operation of the Property, including, without limitation, all rentals, parking receipts, laundry receipts, forfeited Security Deposits, and all expense reimbursements paid to Borrower by tenants ofthe Property. Operating Income shall be calculated on a cash basis. Operating Income shall not include any Senior Loan funds, payments for tax credits or the sale of partnership interests in .orr+over, or proceeds of a casualty loss or condemnation. Operating Income for the last year of the term of the Ground Lease shall include all amounts, if any, remaining in the reserve fund of the Project. Operating Income shall also include any funds on deposit in a reserve fund for the Project in excess of such amounts as are permitted to be included Page as Operating Expenses under this Note, unless such excess amount is required by any lender or investor. "Partnership Agreement" means that pertain Amended . and Restated Agreement of Limited Partnership of the Developer dated substantially concurrently herewith. DDA. "Project" means the improvements to be made to the Property pursuant to the "Property" has the meaning ascribed thereto in the Commission Deed of Trust. "Recordation Date" means the date on which the Commission Deed of Trust records in the Official Records. "Refinancing" means changing the existing financing on the Property, or relating to the Property, by increasing the amount of the existing mortgage(s), adding one or more mortgages to the existing mortgage(s), or paying off an existing mortgage or mortgages and obtaining a new, larger .mortgage or mortgages, A Refinancing maybe in any form, including, without limitation, debt or a sale and leaseback. of Trust. Property. "Sale" has the meaning set forth in subparagraph 29(d) of the Coi r. fission Deed "Security Deposits" years all security deposits collected from tenants of the "Senior Lender" means the holder of the Senior Loan, "Senior Loan" means that certain construction/permanent loan made to orrower by Senior Lender, for the Construction and for permanent financing. "Senior Loan Documents" means the documents evidencing and securing the Senior Loan. "Tax Credit Partner" means Bank ofmerrica, N.A. and Banc oAmerica CDC Special Holding Company, Inc., and their successors and assigns. 1 2 . Interpreta tion. In. this Note, (a) the singular includes the plural andthe plural the singular; (b) vordsand terns which include a number of constituent parts, things on elements, unless otherwise specified, shall be construed as referring separately to each constituent part, thing or element thereof, as well as to all of such constituent parts, things or elements as a whore; (c) words importing any gender include the other* genders; (d) references to statutes are to be construed as including all rules and regulations adopted pursuant to the statute referred to and all statutory provisions consolidating, amending or replacing the statute referred to; e references to agreements and other contractual instruments shall be deemed to include all subsequent amendments thereto or changes therein entered into in accordance with their respective terms; s; (f) the words "hereto" or "herein" or "hereof' or "hereunder" or words of similar import refer to this Note in its entirety; ety; (g) the words "include" or including" or words of similar import, unless Page otherwise specified herein, shall be deemed ed to be followed by the words "without limitation"; (h) all references to Articles and Sections, unless otherwise specified, are to the Articles and Sections of this Note; and (0 headings of Articles and numberings s and headings of Sections and paragraphs are inserted as a matter of convenienceand shall not affect the construction of this Noted 1.3 Acco ntin a 'r s and Deterni at on.. Unless otherwise specified herein, (a) all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be .made, and (c) all books, records and financial statements required to be delivered hereunder shall be prepared in accordance with generally accounting prineiples as in effect from time to time, consistently applied "-AA", except for changes approved by Lender. 24 pisposition and Development Agreement. Notwithstanding any provision to the contrary set forth in the DDA, an Event of Default by Developer under the DDA shall not be a default hereunder, and a default hereunder shall not be an Event of Default by Developer under the DDA. 3. Ground Lease. The principal sums hereunder are being loaned by Lender to Borrower to finance development of the Property for use as affordable housing pursuant to the Ground Lease. Notwithstanding any provision to the contrary set forth in the Ground Lease, an Event of Default by Tenant under the Ground Lease shall not be a defau It hereunder, and a default hereunder shall not be an Event of Default under the Ground Lease. 4.' z a a - Re and Co e a ts. Borrower will permit the representatives of Lender at any time or from time to time, upon two 2 business days' notice and during normal business hours, to inspect, audit and copy all ofBorrower's books, records, and accounts relating to the Property. Borrower shall furnish or cause to be furnished to Lender the following: 4.1 Quarterly Statements. As soon as available, and in no event later than forty-five (45) days after the close of each of the first three calendar quarters of each Fiscal Year, commencing with the calendar quarter ending, June 30, 2024, financial statements of Borrower, including a balance sheet and profit -and -loss statement, as at the close of and for such quarter, all in reasonable detail and prepared in accordance with GA.A ; suchstatements to be accompanied i.ed by a certificate signedby a general partner of Borrower to the effect that such statements s fairly present the financial condition of Borrower as at the date indicated and the results of operations for the period indicated, subject, however, to year-end audit adjustments; 4.2 Annual Statements. As soon as available, but in no event later than one hundred twenty 20 days after the close of each Fiscal Year, .financial statements of Borrower, including a profit -and -loss statement, reconciliation of capital accounts and a consolidated statement of changes in financial position of Borrower as at the close of and for such Fiscal Year, all in reasonable detail, certified as provided in clause (a) above by a general partner of Borrower; 4.3 Annual Operating Statements. As soon as available but in no event later than onehundred twenty (120) days after the close of each Fiscal Year, an "Annual Operating Statement" showing all Operating Income, Operating Expenses, Debt Service and any other Page amounts taken into consideration in computing Net Operating Income and Cash Flow, if any, for the subject Fiscal Year, in a form reasonably satisfactory to h Executive Director; 4.4 Tax Returns. As soon as available, but in o event later than at the time oiling with the Internal Revenue Service, the federal tax returns (and supporting schedules, if any) of ,B o 'rower; . ►u R „ -rt . Promptly upon receipt thereof, copies of all reports submitted to Borrower by independent public accountants in connection with each annual, interim or special audit of the financial statements of or}rower, made by such accountants, including the comment letter submitted by such accountants to management in connection with their annual audit; 4.6 Noti -& -Certificates or Communications. Immediately upon giving or receipt thereof, copies of any material ,notices, certificates or other communications given by or on behalf of orrower or received by or on behalf of orrtrow r from Senior Lender pursuant to or in connection with any of the Senior Loan Documents, as well as any material notices and other communications delivered to the Property or to Bonower naming end r+ or the "Construction Lender." as addressee, or which could reasonably be deemed to affect the construction of the Improvements or the ability of orrow r to perform its obligations to Lender. 5. Payment* Borrower shall make payment on this Note in accordance with thefollowing: 5.1 Annual Payment. Concurrently with Borrower's delivery of each Annual Operating Statement to Lender, Borrower shall make payments in the amount of $30,000OO on this Note to Lender annually, In addition, if, when Borrower delivers each Annual Operating Statement to Lender pursuant to Subdivision 4.3, above, said Annual Operating Statement shows that there was Cash Flow for the subject Fiscat Year, or part thereof, Borrower shall make payment to Lender on account of this Note in the amount of , % of such Cash Flow. NOTWITHSTANDING THE FOREGOING OR ANYTHING TO THE CONTRARY SET FORTH HEREIN, NO 'M NTS SHALL BE. DUE UNDER THIS SECTION 5.1 UNTIL REPAYMENT IN FULL OF ALL PRINCIPAL AND INTEREST ON THAT CERTAIN PROMISSORY NOTE KIMBALL HIGHLANDS -CAPITALIZED GROUND RENT MADE BY THE MAKER CONCURRENTLY HEREWITH IN FAVOR THE LENDER IN THE ORIGINAL PRINCIPAL AMOUNT OF $3,000,000.00. 5.2 Refinancing. As and when there is any e nar cin of the Property, Borrower shall pay the Net Refinancing Proceeds to Lender on account of this Note to the extent of the outstanding balance of principal and accrued interest. ,3 Mandatory Prepayments. mn if, upon completion n of Construction and when an independent audit of the total cost of the development ha.s been prepared as required by the Tax Credit Allocation Committee, Forms 8609 have been issued by the Tax Credit Allocation Committee and all final tax credit adjusters have been agreed upon, the remainder of said total cost of the development and funding of all required reserves less the sum of (a) the actual syndication proeeeds.of the Federal Low -Income Housing Tax Credits, and (b) the permanent loan proceeds (whether the product of a take-out or sale of the Senior Loan.) for the Project is less than 2 , 7 ,000.00, then Borrower shall, in connection with the closing of the Page6 permanent loan, rate a prepayment to Lender in the amount of such difference, That notwithstanding, Borrower shall not be obligated under this Section to make all or any part this payment if to do so would violate any rule or regulation of the Tax Credit Allocation Committee applicable to the Project, or (b) would jeopardize the Tax Credits for the Project. 5.4 Sale. As and when there is any Sale, Borrower shall pay the Net Sale Proceeds to Lender on account of this Note to the extent of the outstanding balance of principal and accrued interest. . , J ,S l,.ier F ap n . In the event that the Net Sale Proceeds include financing to be provided by Borivever as a purchase money lender, Lender shall not be obligated to accept any part of said financing. All or any part of the payment to Lender shalt be made in cash. 5.4.2 In Kind Consideration. In the event that the Net Sale Proceeds include in kind consideration, Lender shall not be obligated to acceptany part of such in kind consideration, but .Borrower shall be entitled to substitute cash for the cash equivalent value of th.e in kind consideration, The cash equivalent value of the in kind consideration shall be its Fair Market Value as determined by the Appraisal Process, 6. Distribution of Profits. From and after the Commencement Date, Borrower covenants and agrees that, except for fees payable as Operating Expenses pursuant to this Note, Borrower shall not withdraw or distribute to to the partners in Borrower any of the rents, issues and or profits of the Project for any Fiscal Year unless payment is oncurrentlr made to Lender of the percentage of such rents, issues and profits payable to Lender pursuant to Section 5.1. 7, Iaturit . This Note shall be all due and payable on the "Maturity Date," which Maturing Date shall be fifty-five (55) years after issuance of the certificate of occupancy for the Improvements. , lictlon. of a meats* Any payments received by elr pursuant to the terms hereof shall be appliedfirst to sums, other than principal and interest, due Lender pursuant to this Note; next to the payment ent of all interest accrued to the date of such payment; and the balance, if any, to th.e payment of principal. 9. Form P rrrerrt. Alt amounts due hereunder are payable in immediately available funds and lawful monies of the United States of America. 0, Ms to R tv irr Anunal 0 Statement. If Lender disputes any Annual Operating Statement, Lender shall notify Borrower of such dispute and the parties shall cause their representatives to meet and confer concerning the dispute and to use all reasonable efforts to reach a mutually ll acceptable resolution of the matter in question within thirty days after Lender's notice of such dispute. If the parties are unable to achieve a mutually acceptable resolution within such 30-day period, then, within twenty 2 days after the expiration of such period, Borrower and Lender shall appoint a national firm of certified public accountants to review the dispute and to make a determination as to the matter in question within thiriy days after such appointment. Ifthe parties cannot, within ten I days, agree on the firm to be appointed, then, upon the application of either party, such firm m shall be appointed by the Presiding Judge of the Superior Page Court for the County of San Diego, California, Such fi •m's determination shall be final and binding upon the parties.. Such firm shall_ have full access to the books, records and accounts of the Borrower rer and the Project. If any audit by Lender reports an underpayment by Borrower on this Note, Borrower shall pay the amount of any such underpayment, together with the late charge specified in Section 13 of this Note, to Lender within five 5 days after notice thereof to Borrower or, in the event of a dispute, after notice to Borrower of the resolution such dispute by the independent firm of certified public accountants, as the case may be, and, if such underpayment amounts to more than three percent (3%) of the disputed payment for the period audited, then, notwithstanding anything to the contrary in this Section, Borrower shall pay to Lender, within five days after demand, Lender's reasonable costs and expenses .in conducting such audit and exercising itsrights under Section 10 of this Note(including a reasonable charge for the services of any employees of Lender conducting such audit and exercising its rights under this Section). 1. Prepayment. At any time, Borrower may prepay in whole or in part, without penalty, the outstanding principal balance under this Note, together with all accrued and unpaid interest, fees, costs and expenses payable hereunder. 12. Security. This Note and all amounts payable hereunder are secured by the Commission Deed of Trust. The terms of the Commission Deed of Trust are incorporated .er in and made a part hereof to the same extent and with the same force and effect as if fully set forth herein. A default under any of the provisions of the Commission Deed of Trust shall be a default hereunder, and a default hereunder shall be a default under the Commission Deed of Trust. 13. Late Payment. If any annual payment of accrued interest and principal is not received by the Lender within ten (10) calendar days after the installment is due, Borrower shall pay to the Lender a late charge of five percent (5%) of such payment, such late charge to be immediately due and payable without demand by Lender. 14. Acceleration and Other Remedies. If: (a) any payment under this Note is not made when due and Borrower falls to cure said,default within fifteen days after notice from Lender; (b) Borrower defaults under any other provision of this Note and Borrower shall have failed to cure said default within thirty days after notice from Lender, provided, however, if cure of such default reasonably requires more than thirty 3 days, then, provided that Borrower commences to cure within such thirty 3 -day period and thereafter diligently and continuously prosecutes the cure to completion, Borrower shall not be in default during the cure period; (c) subject to force majeure, fails to complete the Construction; (d) there is an event or occurrence which, pursuant to the Commission Deed of Trust, gives rise to acceleration of the indebtedness evidenced by this Note, the entire principal amount outstanding hereunder and accrued interest thereon shall atonce become due and payable, at the option of Lender. Page 15. remedies. Upon the occurrence of an event of default and the expiration of any cure period therefor as provided in this Note without such event of default having been cured, then, at the option of Lender, the entire balance of principal together with all accrued interest thereon shall, without demand or notice, but subject to the non -recourse provisions of Section 22 of this Note, immediately become due and payable. Upon the occurrence of an event of default (and so long as such event of default shall continue), the entire balance of principal together with all accrued interest shall thereafter bear interest at the lesser of (a) the .maximum rate permitted law, and (b) the Base Rate plus three percent (3%) per annum. No delay or omission on the part of Lender in exercising any tight -under this Note or under the Commission Deed of Trust shall operate as a waiver of such right, 16. Third Party Cure Ri2hts. Notwithstanding anything to the contrary contained in this Note, Lender, prior to any action to enforce this Note, shall give the Tax Credit Partner notice a.nd opportunity to cure for a period of not less than (a) (45) days if a monetary default, and (b) ninety days if a nonr o etar default; provided, however, if in order to cure such a default Tax Credit Partner reasonably determines that it must remove the general partner ofBorrower, Tax . Credit Partner shall so notify Lender and so long as Tax Credit Partner is diligently and continuously attempting to so remove such general partner, Tax Credit Partner.* shall have until the date thirty days after the effective date of the removal al of the general partner or general partners to cure such default but in no event more than one 1 year. 17. Waiver. Except as otherwise expressly provided herein, Borrower hereby waives diligence, presentment, protest and dennand, notice of protest, dishonor and nonpayment of this Note, and expressly agrees that, without in any way affecting the liability of Borrower hereunder, Lender may extend any maturity date or the time for payment of any installment due hereunder, accept additional security, release any party liable hereunder and release any security now or hereafter securing this Note. Borrower further waives, to the full extent permitted l by law, the right to plead any and all statutes of limitations as a defense to any demand on this Note, or on any deed of trust, security agreement, lease assignment, guaranty or other agreement now or hereafter securing this Note. 18,Attorneys' Fees. If this Note is not paid when due or, if any event of default occurs, Borrower promises to pay all costs of enforcement and colleetion, including but not limited to, reasonable attorney's fees, whether or not any action or proceeding is brought to enforce the provisions hereof. 19, Severabilitv. Every provision of this Note is intended to be severable. In the event any term or provision hereof is declared by a court of competent nt jurisdiction to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the balance of the terms and provisions hereof, which terms and provisions shall regain binding and enforceable. 20. Interest Rate Limitation. Lender and Borrower stipulate and agree that none of the terms and provisions contained herein or in any of the loan instruments shall ever be construed to create a contract for the use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest rate permitted to be charged by the laws of the State of California. In such event, if any holder of this Note shall collect monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of th.e Page 9 maximum imum rate permitted to be charged by the laws of the State of California, all such sums deemed to constitute interest in excess of such Maximum rate shall, at the option of such holder, be credited to the payment of the sums due hereunder or returned to Borrower. 21.. Non -Recourse. Notwithstanding anything to the contrary contained in this Note or in the Commission Deed of 'r*u t rfenh to in this Note, butwithout in any ann r affecting the validity of this Note or the lien or charge of the Commission Deed of Trust, in the event of any default under the terms ofthis Note or the Commission Deed of Trust, the sole recourse the Lender for any and all such defaults shall be by judicial foreclosure or by the exercise of the trustee's power of sale, or such other appropriate means of enforcing the Commission Deed of Trust, and the undersigned, and the partners of the undersigned, shall not be peg+s nall r liable for the payment of this Note or for any other default under the Commission Deed of Trust or for the payment a met of any deficiency established after judicial foreclosure or trustee's sale under the Commission Deed of Trust. Notwithstanding the limitations of liability set forth above, Borrower shall be fully liable for: (a) Cash Flow payable to Lender pursuant to Section 5.1 but not applied to this Note.; and (b) all legal costs and expenses reasonably incurred by Lender in the enforcement of this Note4 22. a � . Headings at the beginning of each mb red Section of this Note are intended solely for convenience and are not to be deemed or construed to be a part of this Note. 23. GivingNotice. Unless applicable law requires a different method, any notice that must be given to Borrower under this Note will be given by mailing it by first class mail to Borrower at the following address: Borrower:. With a copy to: With a copy to: D Avenue Housing Associates, L.P. e o Community o rsingWor s 3111 Camino Del Rio North, Suite 800 San Diego, CA 210 Attention: President and CEO Downs Pham & Kuei LLP 235 Montgomery Street, 30th Floor San Francisco, CA 94010 Attention: Irene C. Kuei Bank of America, N.A. MA 1-22 -02 -02 225 Franklin Street Boston, MA 02110 Attention: Asset Management With a copy to: Banc of America CDC Special Holding Company, Inc. Page 10 With a copy to: -225-02-02 -o 225 Franklin Street Boston, MA 02110 Attention: Asset Manag ;rent Buchalter, a Professional Corporation 1000 Wilshire Boulevard, Suite 1500 Los Angeles, CA 90017 Attn: Michael A. Williamson, Esq. Matter No: B0965-0654 or at a different address if Borrower gives Lender a notice of that different address. Any notice that must be given to Lender under this Note will be given by mailing it by first class nail to Lender at the following address: 1243 National City Blvd. National City, California 91950 Attention: Executive Director or at a different address ifLender gives Borrower a notice of that different address. 24. Choice of Law. This Note shall be governed by and construed and enforced in accordance with the laws of the State of California. Borrower: AVENUE HOUSING ASSOCIATES, L.P., a California limited partnership By: CHW D Avenue, LLC, a California.limited liability company Its: Managing irng eneral Partner y: Community HousingWorks, a California nonprofit public benefit corporation its: sole member and manager By: Mary J a n ki Senior V nt ./AL Page 1 l