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HomeMy WebLinkAbout26279AGREEMENT INFORMATION AGREEMENT NUMBER 26279 NAME/TYPE OF AGREEMENT U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION DESCRIPTION SUBORDINATION AGREEMENT/LOAN TO FINANCE PORTION OF COSTS OF CONSTRUCTION/MATTER ID: 24-2614 #15 EFFECTIVE DATE ATTESTED BY TODD B. HANNON ATTESTED DATE 8/31/2026 DATE RECEIVED FROM ISSUING DEPT. 9/1/2026 NOTE Prepared by, and after recording return to: Sean C. Rucker, Esq. Barnes & Thornburg LLP 555 12th Street, NW, Suite 1200 Washington, DC 20004-1275 SUBORDINATION AGREEMENT (City of Miami) GOVERNMENTAL ENTITY — TEL (Forward) (Revised 2-25-2025) Freddie Mac Loan Number: 512338426 Property Name: Gallery at Lummus Parc SUBORDINATION AGREEMENT GOVERNMENTAL ENTITY — TEL (Forward) (Revised 2-25-2025) THIS SUBORDINATION AGREEMENT ("Agreement") is entered into this 4th day of September, 2026, by and between U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association ("Senior Lender"), and CITY OF MIAMI, a municipal corporation of the State of Florida ("Subordinate Lender"). RECITALS A. Gallery at Lummus Parc, LLC, a limited liability company organized under the laws of the State of Florida ("Borrower") is the owner of a leasehold interest in certain land located in Miami -Dade County, Florida, described in Exhibit A ("Land"). The Land is improved with a multifamily rental housing project owned by the Borrower ("Improvements"). B. Florida Housing Finance Corporation, a public corporation and a public body corporate and politic duly created and existing under the laws of the State of Florida ("Governmental Lender"), the original holder of the Senior Note, has made a loan to Borrower in the original principal amount of $73,500,000 ("Senior Loan") upon the terms and conditions of a Project Loan Agreement dated as of September 1, 2026 ("Project Loan Agreement") among Governmental Lender, Senior Lender (in its capacity as Fiscal Agent under the Funding Loan Agreement (defined below)) and Borrower in connection with the Mortgaged Property. The Senior Loan is secured by a Leasehold Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing dated as of September 1, 2026 ("Senior Mortgage") encumbering the Land, the Improvements and related personal and other property described and defined in the Senior Mortgage as the "Mortgaged Property." C. Pursuant to an American Rescue Plan Act of 2021 Loan Agreement dated May 26, 2026 between Subordinate Lender and Borrower ("Subordinate Loan Agreement"), Subordinate Lender has made or is making a loan to Borrower in the original principal amount of $3,000,000.00 ("Subordinate Loan"). The Subordinate Loan is or will be •" secured by a Mortgage dated May 26, 2026 ("Subordinate Mortgage") encumbering all r*' � y or a -portion of the Mortgaged Property. -- The Senior Mortgage will be recorded in the land records of Miami -Dade County, Florida ("Recording Office"). The Subordinate Mortgage is being recorded in the Recording Office following the recording of the Senior Mortgage. Subordination Agreement Governmental Entity — TEL (Forward) Page 2 E. The Senior Note and Senior Mortgage were assigned by Governmental Lender to Senior Lender as security for the loan made by Initial Funding Lender (as defined below) to Governmental Lender pursuant to the Funding Loan Agreement (the "Funding Loan"), pursuant to an Assignment of Mortgage and Security Documents dated as of September 1, 2026 to be recorded in the Recording Office contemporaneously herewith. F. Subject to the terms and conditions of that certain Construction Phase Financing Agreement (the "Construction Phase Financing Agreement") dated as of September 1, 2026 between Borrower, Greystone Housing Impact Investors, LP ("Initial Funding Lender"), Federal Home Loan Mortgage Corporation and Greystone Servicing Company LLC ("Permanent Funding Lender"), Initial Funding Lender will subsequently assign and deliver the documents comprising the Funding Loan to the Permanent Funding Lender and, in connection therewith, the Senior Note (as defined herein) and the Senior Mortgage will be amended and restated, and thereafter assigned to the Fiscal Agent ("Conversion"). G. Upon Conversion, the Funding Lender (defined below) will have the right to amend and restate the Senior Note and the Senior Mortgage, and the right to amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provision of any of the Senior Loan Documents (as defined herein), without notice to or the consent or joinder of the Subordinate Lender, subject to the provisions of this Agreement. H. The execution and delivery of this Agreement is a condition of Funding Lender's consenting to Subordinate Lender's making of the Subordinate Loan and Borrower's granting of the Subordinate Mortgage. AGREEMENT NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Definitions. The following terms, when used in this Agreement (including, as appropriate, when used in the above recitals), will have the following meanings. The terms "Condemnation," "Imposition Reserve Deposits," "Impositions," "Leases," "Rents" and "Restoration," as well as any term used in this Agreement and not otherwise defined in this Agreement, will have the meanings given to those terms in the Senior Loan Agreement. "Bankruptcy Proceeding" means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Senior Indebtedness, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders. Subordination Agreement Governmental Entity — TEL (Forward) Page 3 "Borrower" means all persons or entities identified as "Borrower" in the first Recital of this Agreement, together with their successors and assigns, and any other person or entity who acquires title to the Mortgaged Property after the date of this Agreement; provided that the term "Borrower" will not include Senior Lender or Funding Lender if Senior Lender or Funding Lender acquires title to the Mortgaged Property. "Casualty" means the occurrence of damage to or loss of all or any portion of the Mortgaged Property by fire or other casualty. "Construction Loan Agreement" means that certain Construction Loan Agreement dated as of September 1, 2026 between the Borrower and the Initial Funding Lender. "Continuing Covenant Agreement" means the Continuing Covenant Agreement to be executed by Borrower and Permanent Funding Lender at Conversion. "Enforcement Action" means any of the following actions taken by or at the direction of Subordinate Lender: the acceleration of all or any part of the Subordinate Indebtedness, the advertising of or commencement of any foreclosure or trustee's sale proceedings, the exercise of any power of sale, the acceptance of a deed or assignment in lieu of foreclosure or sale, the collecting of Rents, the obtaining of or seeking of the appointment of a receiver, the seeking of default interest, the taking of possession or control of any of the Mortgaged Property, the commencement of any suit or other legal, administrative, or arbitration proceeding based upon the Subordinate Note or any other of the Subordinate Loan Documents, the exercising of any banker's lien or rights of set-off or recoupment, or the exercise of any other remedial action against Borrower, any other party liable for any of the Subordinate Indebtedness or obligated under any of the Subordinate Loan Documents, or the Mortgaged Property. "Enforcement Action Notice" means a Notice given from Subordinate Lender to Senior Lender and Funding Lender, following one or more Subordinate Mortgage Default(s) and the expiration of any applicable notice or cure periods, setting forth in reasonable detail the Subordinate Mortgage Default(s) and the Enforcement Actions proposed to be taken by Subordinate Lender. "Funding Lender" means Initial Funding Lender prior to Conversion and Permanent Funding Lender from and after Conversion, and any successor holder of the Governmental Note. "Funding Loan Agreement" means the Funding Loan Agreement dated as of September 1, 2026 among Funding Lender, Governmental Lender and Senior Lender. "Governmental Note" means the Multifamily Housing Mortgage Revenue Note, 2026 Series S-1 (Gallery at Lummus Parc) delivered by the Governmental Lender evidencing the Funding Loan. Subordination Agreement Governmental Entity — TEL (Forward) Page 4 "Lien" means any lien, encumbrance, estate or other interest, recorded against or secured by the Mortgaged Property. "Loss Proceeds" means all monies received or to be received under any insurance policy, from any condemning authority, or from any other source, as a result of any Condemnation or Casualty. "Notice" means all notices, requests, demands, consents, approvals or other communication pursuant to this Agreement provided in accordance with the provisions of Section 10. "Regulatory Agreement" means individually and together, (i) the Declaration of Restrictive Covenants for the Gallery at Lummus Parc between Borrower and Subordinate Lender dated May 26, 2026 and recorded at Book 35329, Page 334 in the Recording Office and (ii) the Rent Regulatory Agreement dated December 14, 2022 and recorded at Book 35329, Page 341 in the Recording Office. "Senior Indebtedness" means the "Indebtedness" of Borrower as evidenced by the Senior Loan Documents. "Senior Lender" is defined above. When any other person or entity becomes the legal holder of the Senior Note, such other person or entity will automatically become Senior Lender. "Senior Loan Agreement" collectively means, prior to Conversion, the Project Loan Agreement and the Construction Loan Agreement; and from and after Conversion, the Project Loan Agreement and/or the Continuing Covenant Agreement. "Senior Loan Documents" collectively means prior to Conversion, the "Project Loan Documents" as defined in the Construction Phase Financing Agreement together with the "Loan Documents" as defined in the Construction Loan Agreement. From and after Conversion, "Senior Loan Documents" shall mean the "Financing Documents" as defined in the Continuing Covenant Agreement, as such documents may be amended. "Senior Mortgage Default" means any act, failure to act, event, condition, or occurrence which constitutes, or which with the giving of Notice or the passage of time, or both, would constitute, an "Event of Default" as defined in the Senior Loan Documents. "Senior Note" means, prior to Conversion, the Project Note. From and after Conversion, "Senior Note" means the Project Note as defined in the Continuing Covenant Agreement. "Subordinate Indebtedness" means all sums evidenced or secured or guaranteed by, or otherwise due and payable to Subordinate Lender pursuant to, the Subordinate Loan Documents. Subordination Agreement Governmental Entity — TEL (Forward) Page 5 "Subordinate Lender" means the person or entity named as such in the first paragraph of this Agreement and any other person or entity who becomes the legal holder of the Subordinate Note after the date of this Agreement. "Subordinate Loan Documents" means the Subordinate Mortgage, the Subordinate Note, the Subordinate Loan Agreement, the Regulatory Agreement and all other documents at any time evidencing, securing, guaranteeing, or otherwise delivered in connection with the Subordinate Indebtedness, as such documents may be amended. "Subordinate Mortgage Default" means any act, failure to act, event, condition, or occurrence which allows (but for any contrary provision of this Agreement) Subordinate Lender to take an Enforcement Action. "Subordinate Note" means the promissory note or other evidence of the Subordinate Indebtedness and any replacement of the Subordinate Note. "Surplus Cash" means, with respect to any period, any revenues of Borrower remaining after paying, or setting aside funds for paying, all the following: (a) All sums due or currently required to be paid under the Senior Loan Documents, including any reserves and Imposition Reserve Deposits. (b) All reasonable operating expenses of the Mortgaged Property, including real estate taxes, insurance premiums, utilities, building maintenance, painting and repairs, management fees, payroll, administrative expenses, legal expenses and audit expenses (excluding any developer fees payable with respect to the Mortgaged Property). 2. Subordinate Lender's Representations and Warranties. (a) Subordinate Lender represents and warrants that each of the following is true as of the date of this Agreement: (i) Subordinate Lender is now the owner and holder of the Subordinate Loan Documents. (ii) No Subordinate Mortgage Default has occurred and is continuing. (iii) The current unpaid principal balance of the Subordinate Indebtedness is $3,000,000.00. (iv) No scheduled payments under the Subordinate Note have been prepaid. (b) Without the prior written consent of Senior Lender, Subordinate Lender will not do any of the following: Subordination Agreement Governmental Entity — TEL (Forward) Page 6 (i) Pledge, assign, transfer, convey, or sell any interest in the Subordinate Indebtedness or any of the Subordinate Loan Documents. (ii) Take any action which has the effect of increasing the Subordinate Indebtedness, except to cure a Senior Mortgage Default as contemplated under Section 5(a) of this Agreement. (iii) Accept any prepayment of the Subordinate Indebtedness. 3. Terms of Subordination. (a) Agreement to Subordinate. The Subordinate Indebtedness is and will at all times continue to be subject and subordinate in right of payment to the prior payment in full of the Senior Indebtedness. Each of the Subordinate Loan Documents is, and will at all times remain, subject and subordinate in all respects to the liens, terms, covenants, conditions, operations, and effects of each of the Senior Loan Documents. (b) Subordination of Subrogation Rights. If Subordinate Lender, by indemnification, subrogation or otherwise, acquires any Lien on any of the Mortgaged Property,' then that Lien will be fully subject and subordinate to the receipt by Senior Lender of payment in full of the Senior Indebtedness, and to the Senior Loan Documents, to the same extent as the Subordinate Indebtedness and the Subordinate Loan Documents are subordinate pursuant to this Agreement. (c) Payments Before Senior Mortgage Default; Soft Subordinate Debt. Until the occurrence of a Senior Mortgage Default, Subordinate Lender will be entitled to retain for its own account all payments of the principal of and interest on the Subordinate Indebtedness pursuant to the Subordinate Loan Documents; provided that Subordinate Lender expressly agrees that it will not accept any such payment that is made more than 10 days in advance of its due date and provided further that Subordinate Lender will not accept any payment in an amount that exceeds 75% of then available Surplus Cash. (d) Payments After Senior Mortgage Default or Bankruptcy. (i) Immediately upon Subordinate Lender's receipt of Notice or actual knowledge of a Senior Mortgage Default, Subordinate Lender will not accept any payments of the Subordinate Indebtedness, and the provisions of this Section 3(d) will apply. (ii) If Subordinate Lender receives any of the following, whether voluntarily or by action of law, after a Senior Mortgage Default of which Subordinate Lender has actual knowledge (or is deemed to have actual knowledge as provided in Section 4(c)) or has been given Notice, such will be received and held in trust for Senior Lender: Subordination Agreement Governmental Entity — TEL (Forward) Page 7 (A) Any payment, property, or asset of any kind or in any form in connection with the Subordinate Indebtedness. (B) Any proceeds from any Enforcement Action. (C) Any payment, property, or asset in or in connection with any Bankruptcy Proceeding. (iii) Subordinate Lender will promptly remit, in kind and properly endorsed as necessary, all such payments, properties, and assets described in Section 3(d)(ii) to Senior Lender. Senior Lender will apply any payment, asset, or property so received from Subordinate Lender to the Senior Indebtedness in such order, amount (with respect to any asset or property other than immediately available funds), and manner as Senior Lender determines in its sole and absolute discretion. (e) Bankruptcy. Without the prior written consent of Senior Lender, Subordinate Lender will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate Lender will not vote affirmatively in favor of any plan of reorganization or liquidation unless Senior Lender has also voted affirmatively in favor of such plan. 4. Default Under Subordinate Loan Documents. (a) Notice of Subordinate Mortgage Default and Cure Rights. (i) Subordinate Lender will deliver to Senior Lender and Funding Lender a copy of each Notice delivered by Subordinate Lender pursuant to the Subordinate Loan Documents within 5 Business Days of sending such Notice to Borrower. Neither giving nor failing to give a Notice to Senior Lender or Funding Lender pursuant to this Section 4(a) will affect the validity of any Notice given by Subordinate Lender to Borrower. (ii) For a period of 90 days following delivery to Senior Lender of an Enforcement Action Notice, Senior Lender will have the right, but not the obligation, to cure any Subordinate Mortgage Default. However, if such Subordinate Mortgage Default is a non -monetary default and is not capable of being cured within such 90-day period and Senior Lender has commenced and is diligently pursuing such cure to completion, Senior Lender will have such additional period of time as may be required to cure such Subordinate Mortgage Default or until such time, if ever, as Senior Lender takes either of the following actions: (A) Discontinues its pursuit of any cure. Subordination Agreement Governmental Entity — TEL (Forward) Page 8 (B) Delivers to Subordinate Lender Senior Lender's written consent to the Enforcement Action described in the Enforcement Action Notice. (iii) Senior Lender will not be subrogated to the rights of Subordinate Lender under the Subordinate Loan Documents as a result of Senior Lender having cured any Subordinate Mortgage Default. (iv) Subordinate Lender acknowledges that all amounts advanced or expended by Senior Lender in accordance with the Senior Loan Documents or to cure a Subordinate Mortgage Default will be added to and become a part of the Senior Indebtedness and will be secured by the lien of the Senior Mortgage. (b) Subordinate Lender's Exercise of Remedies After Notice to Senior Lender. (i) In the event of a Subordinate Mortgage Default, Subordinate Lender will not commence any Enforcement Action until 90 days after Subordinate Lender has delivered to Senior Lender and Funding Lender an Enforcement Action Notice. During such 90-day period or such longer period as provided in Section 4(a), Subordinate Lender will be entitled to seek specific performance to enforce covenants and agreements of Borrower relating to income, rent, or affordability restrictions contained in the Regulatory Agreement, subject to Senior Lender's right to cure a Subordinate Mortgage Default set forth in Section 4(a). (ii) Subordinate Lender may not commence any other Enforcement Action, including any foreclosure action under the Subordinate Loan Documents, until the earlier of: (A) The expiration of such 90-day period or such longer period as provided in Section 4(a). (B) The delivery by Senior Lender to Subordinate Lender of Senior Lender's written consent to such Enforcement Action by Subordinate Lender. (iii) Subordinate Lender acknowledges that Senior Lender may grant or refuse consent to Subordinate Lender's Enforcement Action in Senior Lender's sole and absolute discretion. At the expiration of such 90-day period or such longer period as provided in Section 4(a) and, subject to Senior Lender's right to cure set forth in Section 4(a), Subordinate Lender may commence any Enforcement Action. (iv) Senior Lender may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Subordination Agreement Governmental Entity — TEL (Forward) Page 9 Enforcement Action Notice or Enforcement Action by Subordinate Lender. No action or failure to act on the part of Senior Lender in the event of a Subordinate Mortgage Default or commencement of an _Enforcement Action will constitute a waiver on the part of Senior Lender of any provision of the Senior Loan Documents or this Agreement. (c) Cross Default. Subordinate Lender acknowledges that a Subordinate Mortgage Default constitutes a Senior Mortgage Default. Accordingly, upon the occurrence of a Subordinate Mortgage Default, Subordinate Lender will be deemed to have actual knowledge of a Senior Mortgage Default. If Subordinate Lender notifies Senior Lender and Funding Lender in writing that any Subordinate Mortgage Default of which Senior Lender has received Notice has been cured or waived, as determined by Subordinate Lender in its sole discretion, then provided that Senior Lender has not conducted a sale of the Mortgaged Property pursuant to its rights under the Senior Loan Documents, any Senior Mortgage Default under the Senior Loan Documents arising solely from such Subordinate Mortgage Default will be deemed cured, and the Senior Loan will be reinstated. 5. Default Under Senior Loan Documents. (a) Notice of Senior Mortgage Default and Cure Rights. (i) Senior Lender or Funding Lender will deliver to Subordinate Lender a copy of any Notice sent by Senior Lender or Funding Lender to Borrower of a Senior Mortgage Default within 5 Business Days of sending such Notice to Borrower. Failure of Senior Lender or Funding Lender to send Notice to Subordinate Lender will not prevent the exercise of Senior Lender's rights and remedies under the Senior Loan Documents. (ii) Subordinate Lender will have the right, but not the obligation, to cure any monetary Senior Mortgage Default within 30 days following the date of such Notice. During such 30-day period Senior Lender will be entitled to continue to pursue its remedies under the Senior Loan Documents. (iii) Subordinate Lender may, within 90 days after the date of the Notice, cure a non -monetary Senior Mortgage Default if during such 90-day period, Subordinate Lender keeps current all payments required under the Senior Loan Documents. If such a non -monetary Senior Mortgage Default creates an unacceptable level of risk relative to the Mortgaged Property, or Senior Lender's secured position relative to the Mortgaged Property, as determined by Senior Lender in its sole discretion, then during such 90-day period Senior Lender may exercise all available rights and remedies to protect and preserve the Mortgaged Property and the Rents, revenues and other proceeds from the Mortgaged Property. Subordination Agreement Governmental Entity — TEL (Forward) Page 10 (iv) All amounts paid by Subordinate Lender to Senior Lender to cure a Senior Mortgage Default will be deemed to have been advanced by Subordinate Lender pursuant to, and will be secured by the lien of, the Subordinate Mortgage. Notwithstanding anything in this Section 5(a) to the contrary, Subordinate Lender's right to cure any Senior Mortgage Default will terminate immediately upon the occurrence of any Bankruptcy Proceeding. (b) Release of Mortgaged Property. (i) Subordinate Lender consents to and authorizes any future release by Senior Lender of all or any portion of the Mortgaged Property from the lien, operation, and effect of the Senior Loan Documents. Subordinate Lender waives to the fullest extent permitted by law, all equitable or other rights it may have in connection with the release of all or any portion of the Mortgaged Property, including any right to require Senior Lender to do any of the following: (A) To conduct a separate sale of any portion of the Mortgaged Property. (B) To exhaust its remedies against all or any portion of the Mortgaged Property or any combination of portions of the Mortgaged Property or any other collateral for the Senior Indebtedness. (C) To proceed against Borrower, any other party that may be liable for any of the Senior Indebtedness (including any general partner of Borrower if Borrower is a partnership), all or any portion of the Mortgaged Property or combination of portions of the Mortgaged Property or any other collateral, before proceeding against all or such portions or combination of portions of the Mortgaged Property as Senior Lender determines. (ii) Subordinate Lender consents to and authorizes, at the option of Senior Lender, the sale, either separately or together, of all or any portion of the Mortgaged Property. Subordinate Lender acknowledges that without Notice to Subordinate Lender and without affecting any of the provisions of this Agreement, Senior Lender may do any of the following: (A) Extend the time for or waive any payment or performance under the Senior Loan Documents. (B) Modify or amend in any respect any provision of the Senior Loan Documents. (C) Modify, exchange, surrender, release, and otherwise deal with any additional collateral for the Senior Indebtedness. Subordination Agreement Governmental Entity — TEL (Forward) Page 11 (c) Termination Upon Foreclosure. The lien of the Subordinate Loan Documents will automatically terminate upon the acquisition by Senior Lender or by a third -party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee's sale or other exercise of a power of sale or similar disposition under the Senior Mortgage. 6. Conflicts. If there is any conflict or inconsistency between the terms of the Subordinate Loan Documents and the terms of this Agreement, then the terms of this Agreement will control. Borrower acknowledges that the terms and provisions of this Agreement will not, and will not be deemed to do any of the following: (a) Extend Borrower's time to cure any Senior Mortgage Default or Subordinate Mortgage Default. (b) Give Borrower the right to receive notice of any Senior Mortgage Default or Subordinate Mortgage Default, other than that, if any, provided, respectively under the Senior Loan Documents or the Subordinate Loan Documents. (c) Create any other right or benefit for Borrower as against Senior Lender or Subordinate Lender. 7. Rights and Obligations of Subordinate Lender Under the Subordinate Loan Documents and of Senior Lender under the Senior Loan Documents. (a) Insurance. (i) All requirements pertaining to insurance under the Subordinate Loan Documents (including requirements relating to amounts and types of coverages, deductibles and special endorsements) will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Lender and Funding Lender. (ii) All original policies of insurance required pursuant to the Senior Loan Documents will be held by Senior Lender or Funding Lender. (iii) Nothing in this Section 7(a) will preclude Subordinate Lender from requiring that it be named as a mortgagee and loss payee, as its interest may appear, under all policies of property damage insurance maintained by Borrower with respect to the Mortgaged Property, provided such action does not affect the priority of payment of Loss Proceeds, or that Subordinate Lender be named as an additional insured under all policies of liability insurance maintained by Borrower with respect to the Mortgaged Property. (b) Condemnation or Casualty. Subordination Agreement Governmental Entity — TEL (Forward) Page 12 In the event of a Condemnation or a Casualty, the following provisions will apply: (i) Subject to Section 9 of this Agreement, the rights of Subordinate Lender (under the Subordinate Loan Documents or otherwise) to participate in any proceeding or action relating to a Condemnation or a Casualty, or to participate or join in any settlement of, or to adjust, any claims resulting from a Condemnation or a Casualty, will be and remain subordinate in all respects to Senior Lender's rights under the Senior Loan Documents, and Subordinate Lender will be bound by any settlement or adjustment of a claim resulting from a Condemnation or a Casualty made by Senior Lender. (ii) All Loss Proceeds will be applied either to payment of the costs and expenses of Restoration or to payment on account of the Senior Indebtedness, as and in the manner determined by Senior Lender in its sole discretion; provided however, Senior Lender agrees to consult with Subordinate Lender in determining the application of Casualty proceeds. In the event of any disagreement between Senior Lender and Subordinate Lender over the application of Casualty proceeds, the decision of Senior Lender, in its sole discretion, will prevail. (iii) If Senior Lender or Funding Lender holds Loss Proceeds, or monitors the disbursement of Loss Proceeds, Subordinate Lender will not do so. Nothing contained in this Agreement will be deemed to require Senior Lender to act for or on behalf of Subordinate Lender in connection with any Restoration or to hold or monitor any Loss Proceeds in trust for or otherwise on behalf of Subordinate Lender, and all or any Loss Proceeds may be commingled with any funds of Senior Lender. (iv) If Senior Lender elects to apply Loss Proceeds to payment on account of the Senior Indebtedness, and if the application of such Loss Proceeds results in the payment in full of the entire Senior Indebtedness, any remaining Loss Proceeds held by Senior Lender will be paid to Subordinate Lender unless another party has asserted a claim to the remaining Loss Proceeds. (c) Modification of Subordinate Loan Documents. Subordinate Lender agrees that, until the principal of, interest on and all other amounts payable under the Senior Loan Documents have been paid in full, it will not, without the prior written consent of Senior Lender, increase the amount of the Subordinate Loan, increase the required payments due under the Subordinate Loan, decrease the term of the Subordinate Loan, increase the interest rate on the Subordinate Loan, or otherwise amend the Subordinate Loan terms in a manner that creates an adverse effect upon Senior Lender or Funding Lender under the Senior Loan Documents. If Subordinate Lender either (i) amends the Subordinate Loan Documents in the Subordination Agreement Governmental Entity — TEL (Forward) Page 13 manner set forth above or (ii) assigns the Subordinate Loan without Senior Lender's consent, then such amendment or assignment will be void ab initio and of no effect whatsoever. (d) Modification of Senior Loan Documents. Senior Lender may amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provisions of the Senior Loan Documents without the necessity of obtaining the consent of or providing Notice to Subordinate Lender, and without affecting any of the provisions of this Agreement. Notwithstanding the foregoing, Senior Lender may not modify any provision of the Senior Loan Documents that increases the Senior Indebtedness, without the consent or joinder of the Subordinate Lender, except for increases in the Senior Indebtedness that result from advances made by Senior Lender to protect the security or lien priority of Senior Lender under the Senior Loan Documents or to cure defaults under the Subordinate Loan Documents. (e) Commercial or Retail Leases. If requested, Subordinate Lender will enter into attornment and non -disturbance agreements with all tenants under commercial or retail Leases, if any, to whom Senior Lender has granted attornment and non - disturbance, on the same terms and conditions given by Senior Lender. (f) (g) Consent Rights. Whenever the Subordinate Loan Documents give Subordinate Lender approval or consent rights with respect to any matter, and a right of approval or consent for the same or substantially the same matter is also granted to Senior Lender or Funding Lender pursuant to the Senior Loan Documents or otherwise, Senior Lender's or Funding Lender's approval or consent or failure to approve or consent will be binding on Subordinate Lender. None of the other provisions of Section 7 are intended to be in any way in limitation of the provisions of this Section 7(f). Escrows. Except as provided in this Section 7(g), and regardless of any contrary provision in the Subordinate Loan Documents, Subordinate Lender will not collect any escrows for any cost or expense related to the Mortgaged Property or for any portion of the Subordinate Indebtedness. However, if Senior Lender or Funding Lender is not collecting escrow payments for one or more Impositions, Subordinate Lender may collect escrow payments for such Impositions; provided that all payments so collected by Subordinate Lender will be held in trust by Subordinate Lender to be applied only to the payment of such Impositions. (h) Certification. Within 10 days after request by Senior Lender or Funding Lender, Subordinate Lender will furnish Senior Lender and Funding Lender with a statement, duly acknowledged and certified setting forth the then -current amount and terms of the Subordinate Indebtedness, confirming that there exists no default under the Subordinate Loan Documents (or describing any default that does exist), and certifying to such other information with respect to the Subordinate Indebtedness as Senior Lender may request. Subordination Agreement Governmental Entity — TEL (Forward) Page 14 8. Refinancing. Subordinate Lender agrees that its agreement to subordinate under this Agreement will extend to any new mortgage debt which is for the purpose of refinancing all or any part of the Senior Indebtedness (including reasonable and necessary costs associated with the closing and/or the refinancing, and any reasonable increase in proceeds for rehabilitation in the context of a preservation transaction). All terms and covenants of this Agreement will inure to the benefit of any holder of any such refinanced debt, and all references to the Senior Loan Documents and Senior Lender will mean, respectively, the refinance loan documents and the holder of such refinanced debt. 9. Governmental Powers. Nothing in this Agreement is intended, nor will it be construed, to in any way limit the exercise by Subordinate Lender of its governmental powers (including police, regulatory and taxing powers) with respect to Borrower or the Mortgaged Property to the same extent as if it were not a party to this Agreement or the transactions contemplated by this Agreement. 10. Notices. (a) Any Notice required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly and sufficiently given if (i) personally delivered with proof of delivery (any Notice so delivered will be deemed to have been received at the time so delivered), or (ii) sent by a national overnight courier service (such as FedEx) designating earliest available delivery (any Notice so delivered will be deemed to have been received on the next Business Day following receipt by the courier), or (iii) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any Notice so sent will be deemed to have been received on the date of delivery as confirmed by the return receipt), addressed to the respective parties as follows: Notices intended for Senior Lender will be addressed to: U.S. Bank Trust Company, National Association 500 West Cypress Creek Road, Suite 460 Fort Lauderdale, FL 33309 Attention: Corporate Trust Notices intended for Subordinate Lender will be addressed to: City of Miami Department of Housing and Community Development 444 S.W. 2nd Avenue, 9th Floor Miami, Florida 33130 Attention: Victor Turner, Director WITH COPY TO: Subordination Agreement Governmental Entity — TEL (Forward) Page 15 (b) Office of the City Attorney, City of Miami 444 SW 2nd Avenue, 9th Floor Miami, Florida 33130 Attention: George K. Wysong III, City Attorney Notices intended for Funding Lender prior to Conversion will be addressed to: Greystone Housing Impact Investors LP 14301 FNB Parkway, Suite 211 Omaha, Nebraska 68154 Attention: Andy Grier With a copy to: Kutak Rock LLP 1650 Farnam Street Omaha, Nebraska 68102 Attention: Jed J. Herblan Notices intended for Funding Lender following the Conversion will be addressed to: Greystone Servicing Company LLC 4419 Belle Air Lane Warrenton, Virginia 20186 Attention: General Counsel Any party, by Notice given pursuant to this Section 10, may change the person or persons and/or address or addresses, or designate an additional person or persons or an additional address or addresses, for its Notices, but Notice of a change of address will only be effective upon receipt. Neither party will refuse or reject delivery of any Notice given in accordance with this Section 10. 11. Reserved. 12. Miscellaneous Provisions. (a) Assignments/Successors. This Agreement will be binding upon and will inure to the benefit of the respective legal successors and permitted assigns of the parties to this Agreement. Without prior notice to or the consent of the Subordinate Lender or the Borrower, the Senior Lender may freely transfer or assign the Senior Loan and the Senior Loan Documents, including this Agreement, in whole or in part, and the Subordinate Lender acknowledges and agrees that any future legal holder of the Senior Note will automatically be a legal successor and permitted assignee of Senior Lender hereunder, without the necessity of any further action or instrument. Except for Funding Lender, no other party will be Subordination Agreement Governmental Entity — TEL (Forward) Page 16 entitled to any benefits under this Agreement, whether as a third -party beneficiary or otherwise. (b) No Partnership or Joint Venture. Nothing in this Agreement or in any of the Senior Loan Documents or Subordinate Loan Documents will be deemed to constitute Senior Lender or Funding Lender as a joint venturer or partner of Subordinate Lender. (c) Further Assurances. Upon Notice from Senior Lender or Funding Lender, Subordinate Lender will execute and deliver such additional instruments and documents, and will take such actions, as are required by Senior Lender or Funding Lender to further evidence or implement the provisions and intent of this Agreement. (d) Amendment. This Agreement may be amended, changed, modified, altered or . terminated only by a written instrument signed by the parties to this Agreement or their successors or assigns. (e) Governing Law. This Agreement will be governed by the laws of the State in which the Land is located. (f) Severable Provisions. If any one or more of the provisions contained in this Agreement, or any application of any such provisions, is invalid, illegal, or unenforceable in any respect, the validity, legality, enforceability, and application of the remaining provisions contained in this Agreement will not in any way be affected or impaired. (g) Term. The term of this Agreement will commence on the date of this Agreement and will continue until the earliest to occur of the following events: (i) The payment of all the Senior Indebtedness; provided that this Agreement will be reinstated in the event any payment on account of the Senior Indebtedness is avoided, set aside, rescinded or repaid by Senior Lender or Funding Lender. (ii) The payment of all the Subordinate Indebtedness other than by reason of payments which Subordinate Lender is obligated to remit to Senior Lender pursuant to this Agreement. (iii) The acquisition by Senior Lender or by a third -party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee's sale or other exercise of a power of sale or similar disposition under the Senior Mortgage. (iv) With the prior written consent of Senior Lender, without limiting the provisions of Section 4(b)(iv), the acquisition by Subordinate Lender of Subordination Agreement Governmental Entity — TEL (Forward) Page 17 title to the Mortgaged Property subject to the Senior Mortgage pursuant to a foreclosure, or a deed in lieu of foreclosure, of (or the exercise of a power of sale under) the Subordinate Mortgage. (h) Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. (i) Entire Agreement. This Agreement represents the entire understanding and agreement between the parties regarding the matters addressed in this Agreement, and will supersede and cancel any prior agreements regarding such matters. (j) Authority. Each person executing this Agreement on behalf of a party to this Agreement represents and warrants that such person is duly and validly authorized to do so on behalf of such party with full right and authority to execute this Agreement and to bind such party with respect to all of its obligations under this Agreement. (k) No Waiver. No failure or delay on the part of any party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of such right, power, or remedy, nor will any single or partial exercise of any such right, power or remedy preclude any other or further exercise of such right, power, or remedy or the exercise of any other right, power or remedy under this Agreement. (1) Remedies. Each party to this Agreement acknowledges that if any party fails to comply with its obligations under this Agreement, the other parties will have all rights available at law and in equity, including the right to obtain specific performance of the obligations of such defaulting party and injunctive relief. (m) Funding Lender's Rights to Control. Notwithstanding anything herein to the contrary, pursuant to the Senior Mortgage and Section 6.03 of the Funding Loan Agreement, all acts, consents, approvals and undertakings of Senior Lender hereunder must be solely at the written direction of the Funding Lender. The parties hereto acknowledge and agree that Funding Lender is a third -party beneficiary of this Agreement, with full rights as such. 13. Attached Riders. The following Riders are attached to this Agreement: None. 14. Attached Exhibits. The following Exhibits, if marked with an "X" in the space provided, are attached to this Agreement: al Exhibit A Description of the Land (required) NI Exhibit B Ground Lease Description (if applicable) Subordination Agreement Governmental Entity — TEL (Forward) Page 18 [SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW] Subordination Agreement Governmental Entity — TEL (Forward) Page 19 IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written. STATE OF FLORIDA COUNTY OF SENIOR LENDER: U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, as Fiscal Agent By: Name: Title: 500 West Cypress Creek Road, Suite 460, Fort Lauderdale, FL 33309 ACKNOWLEDGMENT The foregoing instrument was acknowledged before me by means of F 1 physical presence or [ 1 online notarization, this day of , 2026, by , as of U.S. Bank Trust Company, National Association, a national banking association, and that s/he, being authorized so to do in such capacity, executed the foregoing instrument for the purposes therein contained. Said person is F 'personally known to me, or [ 1 has produced as identification. In witness whereof I hereunto set my hand and official seal. NOTARY PUBLIC Print Name: My Commission Expires: Subordination Agreement Governmental Entity — TEL (Forward) Signature 1 11111/ II INCRRr_ IRAiER * i ATTEST: � IRlel p-Rt : 4 I P I1 i at I I ra i a ..,s-41 tA r in i 11,0 t . e- I SUBORDINATE LENDER: CITY OF MIAMI, a municipal corporation of the State of Florida Address: 3500 Pan American Drive City, State, Zip: Mimi Florida 33133 By: Date: c• I 1 >• - James Reynager APPROVED AS TO DEPARTMENTAL REQUIREMENTS: By: Victor T. Turner, Director of Department of Housing and Community Development Address: 444 S.W. 2nd Avenue, 9th Floor City, State, Zip: Miami, Florida 33130 STATE OF FLORIDA CITY/COUNTY OF MIAMI-DADE: APPROVED AS TO FORM AND CORRECTNESS: By I". kk: eorge . Wysong I, ty Attorney I HEREBY CERTIFY that on this day, before me, an officer duly au orized in the state aforesaid and in the county aforesaid to take acknowledgments, by means of hysical presence or ❑ online notarization, personally appeared JAMES REYES, as City Manager for the City of Miami, a municipal corporation of the State of Florida, on behalf of the municipal corporation, to me known to be the person described in and who executed the foregoing instrument as the of , a , and acknowledged to me that he/she as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained in the name of such ,tom by himself/herself as c Ji Witness my hand and official seal in the county and state aforesaid, this E3.1 day of LV46, 1+3f , 2026. Notary Public State of Florida Gabriella Bravo (III My Commission NH 835210 Expires 8/14/2030 (NOTARY SEAL ABOVE) Notary P •1 . I 11 � Ili 'tv Print Name My Commission Expires: `f) i I L{ 1 ZLEZ Serial No.: 4 J14 a521 Subordination Agreement Governmental Entity — TEL (Forward) Signature 2 CONSENT OF BORROWER Borrower acknowledges receipt of a copy of this Subordination Agreement, dated September 4, 2026, by and between U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, and CITY OF MIAMI, and consents to the agreement of the parties set forth in this Agreement. Subordination Agreement Governmental Entity — TEL (Forward) Consent of Borrower EXECUTED IN THE PRESENCE OF: a/(71— Signature A Iexande,V (oleiza`eZ Printed Name 2850 Tigertail Avenue, #800 Miami, FL :i31 Post Office ad ress of Witness Signature f I%SDr. Printed Name 2850 Tigertail Avenue, #800 Mau, FL 33133 Post Office address of Witness STATE OF FLORIDAI G°�� ) ) COUNTY OF ) BORROWER: GALLERY AT LUMMUS PARC, LLC, a Florida limited liability company By: Gallery at Lummus Parc Manager, LLC, a Florida limited liability company, its manager 9Lxil- Tony Del Pozzo Vice President ACKNOWLEDGMENT THE FOREGOING INSTRUMENT was acknowledged before me b physical presence or online notarization this a"' day of f1VL 1 "InNLl Pwo- of G aI ter( LiErt & 1orida limited li bility of a Florida limited liability company. Said person L known to me or F 1 has produced a Florida Driver's License No. identification. My Commission Expires: Subordination Agreement Governmental Entity — TEL (Forward) Consent of Borrower means of [� , 2026 by com y, the is personally as 02Lecka PAL fb Notary Public State of Florida at Large VANESSA PILOTO MY COMMISSION # HH 751619 EXPIRES: February 18, 2030 EXHIBIT A LEGAL DESCRIPTION Subordination Agreement Governmental Entity — TEL (Forward) A-1 EXHIBIT B GROUND LEASE DESCRIPTION Subordination Agreement Governmental Entity — TEL (Forward) B-1