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Home My WebLink AboutRAP20-10 Gershman Mortgage(314) 889-0600 | 7800 Forsyth Blvd., Suite 700, St. Louis, MO 63105 December 2, 2020 Ms. Kathy Chandler-Henry ECHDA Chair The Eagle County Housing and Development Authority PO Box 850 500 Broadway Eagle, CO 81631 RE: Riverview Apartments Project No.: 101-11297 Dear Ms. Chandler-Henry: This confirms the commitment, made on November 6, 2020 in which Gershman Investment Corp. ("Lender") has agreed to lend, and Riverview Apartments Preservation LP, ("Borrower") has agreed to borrow, on the terms and conditions set forth herein for refinance of the above-identified FHA project. The terms and conditions of this agreement are as follows: 1. General Terms. The Mortgage Loan shall be insured by the U.S. Department of Housing and Urban Development ("HUD" or "FHA"), and shall have the features described below. (a) The Mortgage Loan shall be insured under Section 207/223(f) of the National Housing Act. (b) Lender shall be the mortgagee of record. (c) There will be a closing of the Mortgage Loan (“Closing”) as described in paragraph 3 below. 2. Terms of Commitment. The terms of this agreement are described in this Paragraph 2. (a) The dollar amount of the loan is anticipated to be $8,495,200.00 (the "Loan Amount"); subject to the condition that Lender will fund the maximum amount allowable by HUD. A variance of up to 5% of this amount is permitted subject to HUD approval. (b) The Mortgage Loan shall bear interest a per annum interest rate not to exceed 3%, if this rate is not attainable the good faith deposit referenced in paragraph 2(d) below will be refunded. (c) The term of the Mortgage Loan shall be 420 months. (d) Borrower will pay Lender a Good Faith Deposit equal to $42,476 on the date it determines to lock its Mortgage Loan interest rate, which will be reimbursed to Borrower at Closing. In the event Closing does not occur in accordance with all of the terms and conditions of this commitment, this amount shall be deemed immediately due and payable to the Lender as liquidated damages, unless the Closing does not occur due to the sole acts or omissions of the Lender. (e) Borrower has been charged and Lender has earned a loan origination fee and placement fee of 1.00% of the final loan amount. In addition, Borrower agrees that they are responsible to Lender for lender legal fees of $25,000.00 and the issuance cost for the Ginnie Mae security. These fees may be paid from the Mortgage Loan proceeds at Closing. (f) Any prepayment shall be permitted with a prepayment penalty of 10% for the first 3 years, charged against such prepayment; provided, however, after 3 years such penalty shall decline to 7%, then by 1% each year afterwards DocuSign Envelope ID: F2EC1031-1B8D-4E7C-BFD6-0F2159E49F1A RAP20-10 (314) 889-0600 | 7800 Forsyth Blvd., Suite 700, St. Louis, MO 63105 until reaching 0% after 10 years. The foregoing prepayment restriction shall be subject to all applicable HUD requirements and shall be governed pursuant to the terms and conditions as stated in the Mortgage Loan document. 3. Closing Date. The Closing shall take place as described below at the offices of the U.S. Department of Housing and Urban Development. No mortgage proceeds will be disbursed until Closing is completed as evidenced by the endorsement of the Note by FHA/HUD. The Closing shall be no later than February 21, 2021; provided, however, Lender shall accept a later closing date as follows: (i) upon the payment of a fee by Borrower in an amount equal to .25% times the Loan Amount Lender shall accept a closing date no later than March 18, 2021 and (ii) upon the payment of a fee by Borrower in an amount equal to .25% times the Loan Amount and the payment of the extension fee as specified in (i) herein, Lender shall accept a closing date no later than April 22, 2021, provided, further, if Closing does not occur on or before April 22, 2021, Lender shall have no obligation to fund the loan under the terms and conditions set forth in this letter. The extension fees described herein shall be paid by Borrower to Lender at the commencement of the related extension period. Notwithstanding the foregoing, payment of the extension fees will be waived if said extension fees were incurred as the sole result of the acts or omissions of Lender. 4. Miscellaneous. If any one or more of the terms or conditions herein shall be determined by a court of competent jurisdiction to be invalid, such invalidity shall in no way affect the validity or effectiveness of the remaining terms and conditions herein. This commitment may not be assigned by Borrower, without the prior written consent of Lender. This commitment shall be construed in accordance with the laws of the State of Colorado without reference to the choice of law provisions of such State. Any suit, action or proceeding arising out of or relating to this trade shall be instituted in a court of competent jurisdiction in the State of Colorado. Please acknowledge your acceptance of these terms by countersigning at the place provided below and returning this letter to the undersigned by December 9, 2020. Thanks again for the opportunity to finance this project. Sincerely, GERSHMAN INVESTMENT CORP. ______________________________ Chris Will Vice President DocuSign Envelope ID: F2EC1031-1B8D-4E7C-BFD6-0F2159E49F1A (314) 889-0600 | 7800 Forsyth Blvd., Suite 700, St. Louis, MO 63105 ACCEPTANCE OF THESE TERMS IS HEREBY ACKNOWLEDGED: Riverview Apartments Preservation LP By: _________________________ Authorized Representative DocuSign Envelope ID: F2EC1031-1B8D-4E7C-BFD6-0F2159E49F1A