MEMORANDUM OF UNDERSTANDING TO PROVIDE TEMPORARY MANAGEMENT SERVICES FOR FULTON APARTMENTS
MEMORANDUM OF UNDERSTANDING
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between the
CITY OF CLEARWATER
and the
COMMUNITY SERVICE FOUNDATION, INC.
I. Purpose
The purpose of this Memorandum of Understanding (MOU) is to establish a
general working agreement between the City of Clearwater (CITY OF
CLEARWATER) and the Community Service Foundation, Inc. (CSF) to provide
temporary property management services for the Fulton Apartments (FULTON) in
accordance with all local, state and federal rules and regulations pertaining to the
operation of multifamily rental communities.
II.~ackgrotumd
The Fulton Apartments are owned by CITY OF CLEARWATER. The CITY OF
CLEARWATER is in the process of completing the renovation of the apartment
community that consists of nineteen (19) rental units and one laundry unit.
Ill. Agreement
The CITY OF CLEARWATER hereby agrees to reimburse CSF for temporary
property management services in accordance with the proposal submitted by CSF
(EXHIBIT A). The renting of units shall be governed by the Land Use
Restriction Agreement dated May 15,2002 and as recorded in the Official
Records of Pin ell as County, Book 12035, Page 714 (EXHIBIT B) and all other
applicable local, state and federal laws governing the use and renting of rental
property .
IV. Authorities
This MOU shall be governed by all of the applicable rules and regulations of the
CITY OF CLEARWATER, the state and federal government and in addition the
following programs:
. HOME Investment Partnership Program (24 CFR Part 92)
. State Housing Initiatives Partnership Program (Florida Statutes - Chapter
420.907 - .9079
v. Effective Date
This MOD will become effective upon signature by the City Manager ofthe CITY OF
CLEARWATER and the authorized representative ofCSF and shall remain in effect until
termination by either party, but no longer than six (6) months from the Effective Date.
Either party may terminate this MOD upon 30 days written notice to the other party.
DATED: ~~~ ~?
Countersigned:
Approved as to form:
DATED:
Air!!
Community Service Foundation, Inc.
Approved as to form:
Le~
President
, 2003.
CITY OF CLEARWATER, FLORIDA
By~1?~1r
William B. Horne II
City Manager
Attest:
h ~-' /l-,-a,- CkJL
.A . ~.~
Cynthi . Goudeau '-,-' - .
City Clerk
,2003
Attest:
Gerald J. S .
Executive Director
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PROPOSAL FOR PRE-LEASING AND
PROPERTY MANAGEMENT SERVICES
FUL TON APARTMENTS
CLEARWATER, FLORIDA
January 24, 2003
COMMUNITY SERVICE FOUNDATION, INC. (CSF) hereby submits this proposal to
the City of Clearwater to supply Pre-leasing and Property Management services for the
Fuhon Apartments for a term of one (1) to six (6) months or longer as required by Owner.
Mana2ement Plan
CSF will provide all services related to the pre-leasing management of the property.
CSF has extensive experience as a local affordable housing provider. Our professional
staffhas over 20 years of prior participation in the field. We abide by and enforce the
Fair Housing Laws and are well versed in the lease up process of affordable rental
properties. We are committed to:
1. Providing excellent service to our Owner at a reasonable rate.
2. Providing a safe, sanitary, well-JTlaintaiPed homes for our Tenants.
3. Improving the community by providing an array of client services.
Tenant Selection
CSF willI) advertise the availability of the units, 2) accept applications, 3) screen
applicants, and 4) execute annual leases. Attached are sample forms of our "Application
to Rent" and our "Tenant Selection Criteria". All Applicants will be interviewed at the
time of the making application to ensure all information is gathered so as to expedite the
approval processing.
We process applications "in-house" utilizing Merchants Association of Florida. This
provides the opportunity to select from a range of service types depending on the
applicant's history as well as the ability for an almost: immediate decision with no delay.
Our standard procedure is to run a Criminal History Background Check and a Credit
Report.
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Additionally, we verify either by phone or fi1x the following:
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1. Current and former employers
2. Current Income
3. Current and former Landlords
4. Current rental amount
5. Times late
6. Number and types of notices served
Applicants are advised that fuilure to provide the required information or fillsification of
information can cause the application to be rejected.
Consideration will be taken to ensure that the HOME program requirements are met in
regards to the selection of qualified applicants. CSF recommends that the fourteen (14)
units that are required to be rented to households earning less than 60% median income
and the (3) units required at low rent be designated by unit versus by Tenant. This will
enable tracking and monitoring in the future.
Leasin2 and Occupancy
Once the Application has been accepted, the applicant will be notified of such and the
anticipated occupancy date will be scheduled. On the day of move in the lease will be
executed by both parti~ rents will be collected, keys will be issued. This usually takes
at least an hour to ensure that the Tenant understands their responsibilities. A unit
inspection is conducted on the same date to note the condition of the unit at the time of
occupancy. The Tenant is furnished with a copy of all documents. A sample of our
"Lease Package" is included for your review. Note that it includes a copy of the Fair
Housing Guide of Requirements in Pinellas County.
Maintenance and Repairs
Due to the recent rehabilitation/renovation ofFuhon Apartments, CSF requests that the
Owner provide a list of Contractors to be notified of in case of maintenance repairs that
may fiill under warranty. The Owner would be asked to fiuniliarize CSF with the specific
warranty and warranty period. Warranty related maintenance issues would be
coordinated by CSF Maintenance stafI CSF will provide maintenance and repair
services based on both an as needed and preventative basis for all non-warranty
maintenance requests.
Tenants will be informed of the Maintenance Request Procedure at the time of move in.
Tenant emergency maintenance requests are addressed and completed in an "as soon as
possible" manner. All non-emergency maintenance requests, depending on priority, are
addressed and completed in a 48-~ur turn around period.
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Security Deoosit Escrow ACCOUDt
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In accordance with state and local law, a separate account will be maintained for the
Tenants Security Deposit Payments. We anticipate that security deposits will being equal
to one months rent.
ReDt COlleetiODS
All rent payments will be deposited into a separate operating account. At the time of
move in, the importance of timely rental payments will be emphasized to all Tenants in
accordance with state and local law, CSF will enforce policies in the lease agreement
with aggressive collection actioDS. A late fee will be assessed after the 5th day of the
month.
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ADVERTISING AND MARKETING
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CSF will advertise and market the property in accordance with all Fair Housing
requirements including signage, newspaper ads, referrals, flyers, handouts and word of
mouth. The required Equal Opportunity Logo and/or wording will bea part of all paper
and media advertising.
OPERATING AND MAINTENANCE ACCOUNT
CSF recommends that any Operating and Maintenance Account disbursement over $5000
require two (2) signatures.
LAWN AND PEST CONTROL SERVICE
CSF recommends contract lawn and monthly pest control services. During the lease up
period, and subject to the City's approval, we will negotiate with our current vendors or
the vendor specified by the City, to coordinate service for the property.
INSURANCE AND BONDING
CSF will provide all information requested and required by the City in regards to the
Fidelity Bond.
PROPERTY EXPENSES
All normal operating and maintenance expenses will be paid out of the Operating
Account. Maintenance staff expense will be charged to the property at a cost plus 10%
rate.
REQUIRED REPORTS
CSF will provide monthly financial statements to the City by the lOth of the following
month. Any additional required reporting is negotiable.
SUB-CONTRACTORS
CSF will require a listing of all Sub-Contractors and their contacts to enforce
maintenance warranty issues.
UTILITIES
As part of the occupancy process, Tenants will be required to provide verification that the
appropriate utilities have been transferred into their name and out of the Properties
account. Property paid utilities and any deposits required will be an expense to the
property and paid from the operating !lccount.
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SCHEDULE OF FEES
CSF will provide Professional Property Management Services to the City of Clearwater
for Fulton Apartments in exchange for the fees noted below:
1. A One time Lease-UD Fee
$500 per unit to be paid by the 10dt of the month following the unit being
occupied.
2. Monthlv Mana2ement Fees
Ten percent (10%) of gross rents collected, to be paid by the 20dt of the month
following collections.
3. Miscellaneous Income
Twenty-five percent (25%) of amounts collected
Le.: coin laundry, forfeited security deposits, etc.
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This instrument prepared by:
City of Clearwater
Dept. of Econolllic DcvtJlupmtJJll & Huu:iing--
Housing Division
112 S. Osceola Ave.
Clearwater, FL 33756
02-208401 JUN- 4-2002 e:4SAM
PINELLAS CO 8K 12035 PG 714
IIW.Ulmlllllllllllllllllll
LAND USE RESTRICTION AGREEMENT
City of Clearwater HOME/SHIP Program
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THIS LAND USE RESTRICTION AGREEMENT (this "LURA") shall be dated on t2-.day of
(\~ ' 2002, prepared by City of Clearwater Department of Economic Development and
Housing, a municipal division of the City of Clearwater, whose business address is 112 S. Osceola
Avenue, Clearwater, Florida 33756, herein referred to as "CITY".
WITNESSETH:
WHEREAS, the CITY wili utilize funding from the CITY's State Housing Initiatives Partnership
(SHIP) Program and the Federal Home Investment Partnership Program (HOME) for the rehabilitation
of an nineteen (19) unit rental community, benefiting very-low, low and moderate income persons; and
WHEREAS, the CITY will oversee the rehabilitation of the nineteen (19) unit housing complex
known as the Fulton Avenue Apartments for the benefit of very-low, low and moderate income
persons; and
WHEREAS, as a condition of receipt of the SHIP and HOME funds, the CITY agrees to the
restricted use of this property, as further described in Exhibit "A" attached; and
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PINELLAS COUNTY rLA
Orr.REC.8K 12035 PG 715
WHEREAS, the Department of Housing Urban Development ("HUD") has requested that land use
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restrictions be set forth in a separate recorded agreement, and the CITY desires to execute this LURA
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in order to be deemed in compliance with HUD regulations; and
WHEREAS, this LURA shall be properly filed and recorded by the CITY within the official records of
Pinel/as County and shall constitute a restriction upon the use of the property subject to and in
accordance with the terms contained herein; and-~--
WHEREAS, the CITY shall select a qualified management company, herein referred to as
"MANAGEMENr' who shall be responsible for the maintenance, operation and nonnal day-te-day
activities associated with the operation of a multifamily rental property; and
WHEREAS, the CITY acknowledging that this Agreement is necessary to comply with the
affordability requirements of the HOME program stated at 24 Code of Federal Regulations (CFR) ~92
and State Housing Initiatives Partnership (SHIP) program Chapter 420.9071 - .9079 Florida Statutes
(F.S.) and Rule 67-37 Florida Administrative Code (F.A.C.), and as subsequently amended from
which funds were obtained to finance such rehabilitation and agrees that in connection with the
rehabilitation of Fulton Avenue Apartments, the ownership and operation of the project, it will comply,
and will require any subsequent purchaser of the project to comply, with the following:
NOW THEREFORE, in consideration of utilizing funding by the CITY, and acknowledging that
compliance with this Agreement is necessary pursuant to HUD and Florida Housing Finance
Corporation (FHFC) regulations, the parties hereto agree as follows:
1. Covenants and Restrictions on Use of Project. During the Period of Affordability as
defined below, the fourteen (14) units shall be designated as HOME/SHIP assisted units which are
part of the project and shall be floating, and shall be rented or held available for rental on a continuous
basis to persons or families who, at the commencement of occupancy by each tenant of such unit
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PINELLAS COUNTY fLA.
Off.REC.SK 12035 PG 71S
shall have annual incomes which do not exceed 60 percent of the median family income for the area,
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as determin~ and made available by the HUD with adjustments fOf smaller and larger families. In
addition, not less than 20 percent of the HOME assisted units shall be occupied by very low income
families whose annual incomes do not exceed 50 percent of the median family income for the area
determined as above.
(atThe1rrcome-ofltfe-persons-o-r-famlltes whcrwill occupylheUnifSWiltbe-verified by the CITY
or MANAGEMENT by obtaining third party verification of current income for each person who will
occupy the rental unit or an income verification and verification of assets as applicable for each
person who will occupy the rental unit. In the event that neither of the above methods are suitable,
the CITY or MANAGEMENT may use other acceptable methods to verify income. Annual income for
the purpose of this Agreement shall be as defined by the Department of Housing and Urban
Development for the HOME Program.
(b) Rents charged for the HOME assisted units, including the cost of utility payments as
determined by the Clearwater Housing Authority, shall not exceed the rental rates permitted under the
HOME Program. In accordance with the National Affordable Housing Act, rental housing assisted
with HOME Program funds must bear rents which do not exceed the lesser of the Fair Market Rent for
the area or 30 percent of adjusted income of a family having 65 percent of the area median income.
In addition, a minimum of 20 percent of the HOME assisted units must be occupied by very low
income families with no greater than 50 percent of area median income and bear rents not greater
than 30 percent of adjusted income of a very low income family. Allowable HOME rents are
calculated annually by the Department of Housing and Urban Development and shall be provided to
the CITY or MANAGEMENT.
(c) If allowable HOME rents increase, the CITY or MANAGEMENT may increase rents
charged to tenants in HOME assisted units after giving appropriate notice and in accordance with the
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PINELLAS COUNTY rLA.
Orr,REC.BK 12035 PG 717
lease provisions. If allowable HOME rents decrease, the CITY or MANAGEMENT must adjust rents
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downward within 30 days after receip~ of the applicable rental rates. If mandated rent dec~ases
threaten the financial viability of the project, CITY may appeal to the Department of Housing and
Urban Development for an adjustment.
(d) The income of existing tenants shall be recertified annually. A tenant whose income
ir'lCreases"'afterproperly occupying a ftOME assisted unit cannot be asked to leave. However, If the
tenant's income rises to a level above 80 percent of the median income as adjusted for family size,
the tenant must pay as rent not less than 30 percent of the tenanfs adjusted monthly income, as
recertified annually. In addition, if a tenant that originally qualified as very low income, upon
recertification, has income greater than 50 percent of median for tenant's family size, the CITY OR
MANAGEMENT must rent the next available HOME assisted unit to a very low income family if
necessary in order to insure that a minimum of 20 percent of the HOME assisted units are occupied
by very low income families.
(e) For the purpose of this Agreement, the Period of Affordability shall be a period beginning
on the first day on which all HOME assisted units in project are first occupied and ending at the end of
the twentieth (20th) year thereafter.
(f) For the Period of Affordability each HOME assisted unit in the project must be rented as a
residential dwelling or held available for rental as a residential dwelling on a continuous basis and
may not be used or converted to owner-occupied housing or other residential or business use.
(g) Any noncompliance with the requirement of this Section shall be corrected within 30 days
after such error is first discovered or would have been discovered by the exercise of reasonable
diligence.
(h) With respect to the five (5) remaining units not designated as HOME/SHIP assisted units,
these units shall be "SHIP assisted units" and shall be floating, and shall be similar in all respects to
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PINELLAS COUNTY FLA.
OFF.REC.BK 12035 PO 718
the HOME/SHIP assisted units as described above with the exception that the income of households
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occupying the SHIP assisted units shall not exceed 120 percent of the area's median income adjusted
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for family size.
2. Location of HOME/SHIP/SHIP Assisted Units. The CITY or MANAGEMENT has
designed and will maintain the project so that the units to be rented as HOME/SHIP assisted units will
'bntmilar to all other units intneproject. Tenants in such Units shall enJoy equal access to all
common facilities of the project. The CITY agrees that there will be no material changes to the design
of the project without assurances that the proposed changes will not adversely affect the HOME/SHIP
assisted units or any provision of this Agreement. The HOME/SHIP assisted units and the SHIP
assisted units shall be floating units.
3. No Discrimination. The CITY or MANAGEMENT shall not discriminate, as defined by
Federal and State Statutes, on the basis of race, creed, color, sex, age, familial status or national
origin in the lease, use, or occupancy of the HOME/SHIP assisted units or in connection with the
employment or application for employment of persons for the operation and management of the
project.
4. Tenant Lease Restrictions. Borrower shall comply with the provisions of 24 CFR
~92 and Chapter 420.9071 - .9079 F.S. and Rule 67-37 F.A.C. as subsequently amended which
prohibit certain lease terms and require written tenant selection policies. All tenant leases for
HOME/SHIP assisted units shall be for a minimum period of one year unless the tenant and the
CITY or MANAGEMENT mutually agree otherwise, shall expressly subordinate to the Mortgage,
and shall contain clauses, among others, wherein each individual lessee:
(a) Agrees that the household income, household composition and other eligibility
requirements shall be deemed substantial and material obligations of tenancy; that tenant will
comply promptly with all requests for information with respect thereto from the CITY or
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PIN~LLAS COUNTY FLA
Orr.R~C.8K 12035 PG 719
MANAGEMENT, and that tenanfs failure to provide accurate information about household
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income or refusal to comply with a request for information with respect thereto shall be deemed
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a violation of a substantial obligation of hislher tenancy, and
(b) Agrees not to sublease to any person or family who does not meet income
qualifications as detennined, verified and certified by the CITY or MANAGEMENT.
5. Tenant Li:tb. ThtrCffY-orMANAGEME--Nlsha1l adopt written tenarn-selection
policies, which have been approved by the CITY as appropriate for the HOME & SHIP
Programs. All tenant lists, applications, and waiting lists relating to the HOME/SHIP assisted
units shall at all times be kept separate and identifiable from any other business of the CITY
which is unrelated to the project, and shall be maintained in a reasonable condition for proper
audit and subject to examination during business hours by representatives of the CITY or
MANAGEMENT. Failure to keep such lists and applications or to make them available to the
CITY will be a default under the Mortgage.
6. Monitoring. The CITY or MANAGEMENT shall be pennitted to inspect all records
pertaining to HOME/SHIP assisted units upon reasonable notice and within normal working
hours and shall submit such documentation as required by the CITY to document compliance
with this Agreement and HOME & SHIP Program rules. The CITY or MANAGEMENT, must no
less than annually, inspect each HOME/SHIP assisted unit for compliance with CITY Quality
Standards and local code requirements, will facilitate such inspections with tenants as
necessary.
7. Successors Bound. This Agreement and the covenants contained herein shall run
with the land and shall bind, and the benefits shall inure to, respectively, the CITY and its
successors and assigns and all subsequent owners of the project or any interest therein, and to
the CITY for the Period of Affordability set forth in this Agreement.
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PINELLAS COUNTY fLA.
Off.REC.8K 12035 PG 720
8. No Conflict with Other Documents. The CITY warrants that it has not, and will not,
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,execute any other agreement with provisions contradi~ory to, or in opposition to, the provisions
hereof, and that, in any event, the requirements of this Agreement are paramount and
controlling as to the rights and obligations herein set forth and supersede any other
requirements in conflict herewith.
9. severability. The invalidity of any clause, part or provision of thiS Agreement shall not
affect the validity of the remaining portions thereof.
10. ,Records. The CITY or MANAGEMENT shall retain all records pertaining to Project
for a period of three years after audit and/or resolution of audit findings involving this loan.
Borrower shall maintain accurate infonnation regarding the occupancy and contract rents for
each HOME/SHIP assisted unit during the tenn of this loan and, at the request of the CITY, shall
submit this information to the CITY for review and comment. The CITY or MANAGEMENT shall
maintain documentation substantiating compliance with Affirmative Marketing Requirements.
These Project records shall be made available to City of Clearwater, U.S. Department of
Housing and Urban Development, Florida Housing Finance Corporation and/or representatives
of the Comptroller General of the United States or Inspector General of the State of Florida for
audit, inspection or copying purposes during nonnal business hours.
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PINELLAS COUNTY rLA.
Orr,REC,8K 12085 PG 721
IN WITNESS WHEREOF. the Parties have executed this Land Use Restriction
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Agreement by its duly authorized representatives.
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CITY: CITY OF CLEARWATER. FLORIDA
B~"__~"'-
City Manager
Approved as to form:
ATTEST:
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Johtl Carassas
Assistant City Attorney
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STATE OF FLORIDA )
COUNTY OF PINELLAS )
The foregoing instrument was acknowledged before me this / j day of -Jit~02.
by ~LLlAM B. HO~E II. Gity J~lIanager ofthe City of Clearwater. who is personally know~t't~'me.
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PrintlType Name: L~fL)lc..e..lL}. ft.} I &-7,C)
Notary Public
a- . ~" Deni8eA. WiIsGn
i*i : MY COMMISSION' C014101 EXPIRES
~ June 18, 2004
",.iif..' 1IOIIlaI1HIUlIOYfMlIIIUIIANCUIC.
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EXHIBIT - A
PINELLAS COUNTY rLA.
Orr.REC.8K 12035 PG 722
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LAND USE RESTRICTION AGREEMENT
FULTON APARTMENTS - REHABILITATION
· PLAT 007 PAGE 040 AVONDALE BLK H, LOT 3 - (03/29/15/01926/008/0030)
· PLAT 007 PAGE 040 AVONDALE BLK H, LOTS 4,5, 6 AND 7 (LEASE) -
(03/29/15/01926/008/0040)
· PLAJ:.OO5 PAGE 079 NORWOOD 1 It ~IDD BLK D, LOTS 1,2, 3 & W ~ OF
LOT 4 LESS ST (LEASE) - (10/29/15/61758/004/0010)
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