Frank

clarity

"Points of Claritication Pessy-please revise to from sall proced yes 1) is he to put in & for repaus

only ague to do them over 3 years

withs

security? Specifically, will repair program be included in rents?

3 under the

no

budgeted rent in rease the 8% and

will be included in 58rents
That what you

"had in mund? No, to
for

3) could we/should we raise intrate on Hex/cam:

Frank

Sullivan don't know

For the purpose of completing preliminary TPA approval on the Amy Jo Manor Apartment project, we propose the following based on our discussions:

1.

2.

3.

Flexible Subsidy Loan As required, $125,000 of the existing
outstanding balance of $375,000 will be paid at closing of
the transfer of ownership reducing the outstanding flexible
subsidy loan balance to $250,000. The new ownership will
assume the flexible subsidy loan agreement
dated
A modification to that agreement
will be made reflecting the new loan balance as $250,000.
Development Repairs - We have agreed to provide $320,000 for
the purpose of making repairs to the property. It is our
understanding that the HUD-Detroit inspection report will
reflect an amount of approximately the same amount of
$320,000. It is our proposal that the $320,000 of repairs
be spread over three years, commencing with the transfer of
ownership. As security for completion of these repairs, we
will provide HUD with a letter of credit in the amount of
$125,000.

Deferred Principle Workout Agreement Dated

We would propose that the Workout Agreement be assigned to the new ownership entity and extended for fifteen years from the date of transfer of ownership. We will agree to enter

Real Property Services Corp.

1935 Camino Vida Roble

Carlsbad, CA 92008

619/431-9100 Telefax 619/431-9156

Mr. Albert Sullivan
February 9, 1989

Page 2

RPS

into a use agreement maintaining the property as low income housing for the fifteen year period. Additionally we would agree to pay interest currently on the outstanding principal amount.

We anticipate that these items will meet with your approval and that we can move expeditiously to a transfer of ownership which will insure the maintenance of Amy Jo Manor Apartments as safe, sanitary, and decent for low to moderate individuals.

Sincerely.

Alms Bid

Allan S. Bird

ASB: SI

cc: John Hays

0744A