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Home My WebLink AboutLC20-16 Gershman MortgageAugust 26, 2020 Kathy Chandler‐Henry ECHDA Chair The Eagle County Housing and Development Authority PO Box 850 500 Broadway Eagle, CO 81631 RE: Lake Creek Village Apartments Edwards, Colorado Dear Kathy: Thank you for your interest in obtaining financing for the above‐referenced project through Gershman Mortgage. To confirm our discussions, the following is provided as an understanding of the rights and obligations of Gershman Mortgage (“Gershman”) and The Eagle County Housing and Development Authority (“Sponsor”) for the project. 1.Providing the appropriate underwriting guidelines are met, Gershman will review, prepare, process, facilitate and submit a mortgage loan application for the Project to the Departments of Housing and Urban Development (“HUD”) for mortgage loan insurance. 2.In the even HUD determines the Project is eligible for mortgage loan insurance, as evidenced by the issuance of a Firm Commitment by HUD at terms acceptable to Sponsor, Gershman will charge a loan origination fee equal to 0.30% of the loan amount, not to exceed $100,000 (One Hundred Thousand Dollars). The loan origination will be deemed earned on the date the Firm Commitment is issued by HUD and is accepted by the Sponsor or Borrower. The loan origination fee may be paid upon the initial closing of the HUD insured loan. If HUD determines the Project to be unacceptable for mortgage loan insurance, no loan origination fee will be due to Gershman. 3.Sponsor acknowledges that Gershman will retain third parties, as required by HUD and as determined appropriate by Gershman with the costs to be the responsibility of the Sponsor. These parties include, but may not be limited to, entities that prepare Appraisals, Appraisal Reviews, Environmental Reports, Surveys, Project Capital Need Assessments and Architectural & Cost Reviews. Gershman will not incur any expenses associated with third parties without Sponsor’s approval. The costs associated for the third‐party reports/documents are eligible to be paid from available mortgage proceeds upon the closing of the HUD insured loan and are considered non‐refundable if the closing of the loan does not occur. DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4 LC20-16 Third party report costs are estimated to be: 1. PCNA $5,995 2. Energy Star Score $2,500 3. Energy Star Cert. $5,450 4. Title $40,000 (Estimate. To be determined at later date) 4. At the time of Gershman’s Firm Commitment application to HUD is submitted, Sponsor will remit the HUD application fee of 0.15% of the loan amount. The cost associated with the application fee is eligible to be paid from available mortgage proceeds upon the closing of the HUD insured loan. In the event HUD determines the Project to be unacceptable from mortgage loan insurance, or Borrower withdraws their request for mortgage loan insurance at any time during the processing of the request, the HUD Application Fee will be non‐refundable and Gershman will be held harmless from any claim arising from the forfeiture of the Application Fee. 5. Sponsor and/or Borrower agrees to utilize legal counsel and a title company that are acceptable to Gershman. Sponsor and/or Borrower agree to pay Gershman’s legal representation fees for the closing to an amount not to exceed $20,000 exclusive of any legal fees incurred by Borrower for closing. Legal fees will be deemed earned upon the legal fee being incurred; however, the legal fees may be paid upon the initial closing of the HUD insured loan. Legal fees will not be incurred without prior approval of the Sponsor or Borrower. 6. In the event Gershman provides HUD insured financing for the Project that is the subject of this Agreement, the Sponsor and Borrower hereby provide consent to Gershman for the use of the Project’s name, Sponsor’s name, Borrower’s name and terms of the financing for its use in the promotion and advertising of its business. 7. Any additions, modifications, amendments or changes to this Agreement must be in writing and signed by Sponsor and Gershman. If the above terms are acceptable, please sign this letter where indicated below. Once again thank you for allowing Gershman Mortgage to assist you toward the future success of your project. DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4 ACCEPTANCE OF THESE TERMS IS HEREBY ACKNOWLEDGED: Gershman Investment Corp. d/b/a Gershman Mortgage By: _______________________________ Dated: _____________________ Chris Will Vice President The Eagle County Housing and Development Authority By: _______________________________ Dated: ________________________ Kathy Chandler‐Henry ECHDA Chair www.gershman.com 7800 Forsyth Blvd, Suite #700 Clayton, MO 63105 ph: 314-854-9567 1 (800) 437.7462 8.26.2020 DocuSign Envelope ID: 7F025FF8-6DB2-471D-BAB2-B7C1CA9729E4 10/21/2020