993-995 Union Housing Development Fund Corporation (Hdfc)

2. Amendment 2

   This second amendment revises the HPD mortgage amounts and terms, raises the purchase price of Apartment 4, changes how the AHC grant is documented, extends the Sponsor Control Period, and updates the budget and resale flip-tax terms.

   • HPD Permanent Loan B shall be approximately $5,127,826 (not $3,097,407)
   • HPD Permanent Loan C shall be approximately $1,406,495 (not $187,420)
   • Apartment 4 changed from Insider to Outsider; Purchase Price now $163,061 (rather than $2,500)
   • HPD mortgage interest reduced from 1% to 0% and terms extended from 30 to 40 years; consolidated into one mortgage of $17,530,402
   • Each purchaser will sign the AHC Note and Security Agreement; $40,000 AHC Grant bears no interest and is repaid over 10 years
   • Sponsor Control Period runs until six (6) months after the Bridge Loan Satisfaction Date
   • Flip tax: Type 1 sale lets shareholder retain 90% of Sale Profit after 10 years; Type 2 sale 90% after the first year
   • First year of cooperative operation estimated to commence December 1, 2025, not January 1, 2025; budget replaced

1. Amendment 1 02/07/2025

   This amendment sets the plan's Effective Date as October 8, 2024, based on 8 of 14 current tenants (57%) signing purchase agreements, which HPD allowed despite falling short of the usual 80%.

   • Effective Date set as October 8, 2024
   • Effective Date based on 8 Insider purchase agreements, 57% of 14 current Insiders, below the 80% usually required, with HPD exception
   • Written notice of Effective Date to Purchasers on or about February 7, 2025
   • Tenants not current in rent have fifteen days to become current or lose the right to buy at the Insider Price (unless a signed payment agreement exists)
   • Pre-closing appointments scheduled by appointment only, most likely in four to six months
   • Complete amended Part I of the Cooperative Information Package attached, superseding the prior version
   • All amended and added Exhibits to Part II attached

Summarized from the amendments' text (scanned ones read with OCR); the filings themselves are on the Attorney General's site. 2 of 3 amendments summarized so far.