COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AGREEMENT
CITY OF CLEARWATER, FLORIDA
AND
LARGO AREA HOUSING DEVELOPMENT CORPORATION INC.
COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO)
CHDO AGREEMENT
THIS CHDO PROCEEDS AGREEMENT ("Agreement") dated April 1, 2008, by and between
the City of Clearwater, Florida, a municipal corporation existing by and under the laws of the State of
Florida, herein after referred to as the "City", and Largo Area Housing Development Corporation
Inc., a not-for-profit corporation organized under the laws of the State of Florida, herein after referred to
as the "LAHDC":
WHEREAS, the City is the recipient of a HOME Investment Partnership Program (HOME)
Grant from the u.S. Department of Housing and Urban Development (HUD) pursuant to Title II of the
Cranston-Gonzalez National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq.
(HOME Program), codified and implemented by 24 CFR Part 92; and
WHEREAS, under the provisions of the Act, the City is required to set-aside at least 15% of its
HOME Investment Partnership Program entitlement allocation to organizations that meet the
requirement for Community Housing Development Organizations (CHDO), as specified by the HOME
Program, for the CHDO to own, develop or sponsor housing for families at or below 80% of the area
median income; and
WHEREAS, LAHDC has met the requirements established by the federal government and has
been certified as a CHDO by the City, pursuant to the National Affordable Housing Act of 1990, as
amended; and
NOW THEREFORE, in consideration of the promises and covenants contained herein, the
parties hereto agree as follows:
PART I - SPECIFIC USES AND RESTRICTIONS
A. Source and Use of Funds
1. Sources of Funds:
The source of CHDO funds shall be the FY 2005-06 CHDO Allocation of $86,568 and the FY
2006-07 CHDO Allocation of $81,756 through the HOME Investment Partnership Program
entitlement provided to the City by HUD. LAHDC agrees that in the event that the City's HOME
Investment Partnership Program entitlement is discontinued, the City may, at its option, request
that any CHDO Proceeds funds held by LAHDC, be returned to the City. In the event the HUD
determines that the City or the LAHDC have not fulfilled their obligation under the HOME
Investment Partnership entitlement requirements, or the City determines that LAHDC has not
fulfilled its obligation under the HOME Investment Partnership Program requirements, and/or
HUD or the City demands reimbursement of expenses paid under this Agreement, LAHDC shall
provide said reimbursement from non-federal sources within ten day of said notice from City.
2. Use of Funds:
In consideration of HOME Investment Partnership Program entitlement funding allocated by the
City, LAHDC shall operate the programs and specific activities described below under section
(b). LAHDC shall utilize its HOME CHDO allocation as an owner-developer to provide housing
for families at or below 80% of the area median income in accordance with policies established by
HUD and therefore shall:
a. CHDO Proceeds: Any HOME CHDO construction loan funds that are repaid to LAHDC,
as a result of a home being sold that was finance in part, or whole, with HOME CHDO
funds, shall be considered CHDO Proceeds, and may not be returned to the City.
b. HOME CHDO funds, and CHDO Proceeds, provided to LAHDC under the CHDO
Agreement, will be used for: construction, demolition, acquisition of real property,
acquisition/rehabilitation/moving of real property, developers fees, and other
predevelopment costs, or other costs as approved by the City. Funds may not be used for
such items as: capital equipment purchases, travel and training, and operating expenses.
c. All homes, and all construction and down payment assistance loans, assisted through the
funds covered under this agreement shall have a recorded Land Use Restriction
Agreement (LURA) andlor the Restrictive Covenants as an exhibit to the loan docs.
d. CHDO Proceeds funds must be used by LAHDC for HOME eligible activities, unless
otherwise stated in their CHDO Agreement.
e. The CHDO funds from the original FY 2005-06 CHDO allocation of $86,568 and the FY
2006-07 CHDO allocation of $81,756 must not be used by LAHDC to support the
operations of their organization. All other CHDO Proceeds must be deposited in the
CHDO Revolving Loan Fund or returned to the city.
f. After a period of five (5) years, LAHDC may use any remaining CHDO Proceeds for
households who are above 80% Area Median Income (AMI), but no greater than 120%
AMI.
3. Reporting & Monitoring:
The City has the right to monitor and evaluate all aspects of activities carried out by LAHDC.
Such evaluation will be effected by the submission of reports and information by LAHDC and
monitoring visits of LAHDC by City. The City will conduct biannual monitoring/site visits
throughout the current contract year. Contractual requirements related to inspections, reports,
and records include, but are not limited to:
a. Program Records. LAHDC shall maintain monthly bank statement of LAHDC HOME
Account, records, reports, data and information as may be required by HUD in 24 CFR
Part 92.508 or the City pertaining to matters of this Agreement.
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b. Proiect Files: LAHDC shall maintain accurate individual project files with detailed
records of each property, including:
1. Acquisition, construction or renovation costs and operating costs attributed to a
project, identifying direct assistance funded through the HOME Investment
Partnership fund, CHDO Proceeds, project revenue or other sources;
11. A copy of the executed note and mortgage on the property;
111. Set-up/Completion reports on the property. Completion reports must be
submitted to the City within sixty (60) days of rehab/construction and lease-up
completion.
IV. LAHDC annual report verifying ownership and household income for each
completed HOME Investment Partnership entitlement assisted unit throughout the
affordable term; and
v. Documentation substantiating compliance with Equal Opportunity, Fair Housing
and Affirmative Marketing, and other contractual requirements. LAHDC shall
maintain a summary of this information and shall submit this information to City
upon request. These records shall also be made available to HUD and/or
representatives of the Comptroller General of the United States for audit,
inspection or copying purposes during normal business hours.
c. Activities Report: LAHDC must report to the City on a quarterly basis (October 15\
January 1 S\ April 1 5t, and July 15t), a detailed accounting ofthe use ofthe CHDO Proceeds
and CHDO Revolving Loan Fund. The report must summarize the HOME CHDO
Proceeds funded, and other low-income housing activities during the previous month and
also during the fiscal year-to-date. This report shall detail property acquisition,
rehabilitation project status, sale of property, CHDO Proceeds and description of the fund
activity in LAHDC HOME account.
d. Records Retention: LAHDC shall retain all records pertaining to this Agreement,
including but not limited to financial, statistical, property and programmatic records, for
five (5) years from the last day of the City's fiscal year (September 30th) in which this
Agreement expires, five years after the affordability period or is terminated. All records,
however that are subject to audit findings shall be retained for five (5) year in the manner
prescribed above or until an ongoing audit is completed and all issues raised by the audit
are resolved, whichever is later. Nothing herein shall be construed to allow destruction of
records that may be required to be retained longer by federal, state or local law. These
records shall also be made available to HUD and/or representatives of the Comptroller
General of the United States for audit, inspection or copying purposes during normal
business hours.
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4. CHDO Proceeds Revolving Loan Fund
After the reimbursement of the $168,324 from the City, LAHDC may use CHDO Proceeds,
which must maintained in a separate banking account - designated as "CHDO Proceeds
Revolving Loan Fund", to fund future HOME eligible activities. If there are insufficient funds,
in the HOME CHDO revolving loan fund, to fund subsequent eligible activities, LAHDC may
request additional HOME CHDO funds from the City. Funds that are received by LAHDC,
resulting from the sale of homes, that are above the HOME construction loan amounts, shall be
retained by LAHDC, for use as they desire and not subject to the HOME program rules and
regulations.
The funds will be expended in accordance with the terms and conditions of the CHDO
Agreement. Funds reserved for LAHDC may increase or decrease, subject to production
standards.
5. Term of Agreement
This agreement shall remain in effect as long as LAHDC has control of the CHDO funds in the
CHDO Proceeds. The City may terminate this Agreement if it determines that LAHDC has used
CHDO funds or CHDO Proceeds for ineligible activities under the HOME Program and/or for
activities that are not mentioned in Section A(2)(b) above.
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IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be executed by their duly
authorized officials on the day and date first above indicated.
Countersigned:
Approved as to form:
~~
Laura Lipowski
Assistant City Attorney
Largo Area Housing Development Corporation,
Inc.
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By .,' ~'I~e/<':'~
President
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Date
ATTEST: II
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Secretary
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Date
CITY OF CLEARWATER, FLORIDA
By:~...J- ./..i--:n:
William B. Home, II
City Manager
Attest:
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