DECLARATION OF RESTRICTIVE COVENANTS - ATTACHMENT "A" - CDBG PROGRAM
ATTACHMENT "A"
DECLARATION OF RESTRICTIVE COVENANTS
CITY OF CLEARWATER
CDBG PROGRAM
THIS DECLARATION, made this 16th day of June 2008, between SP Country Club Homes LLC,
its successors, assigns and transferees of the project described below, whose mailing address is
2430 Estancia Blvd., Suite 101, Clearwater, Florida 33761, hereinafter called ("Borrower") and
the City of Clearwater, Florida, a municipal corporation organized and existing under the laws of
the State of Florida hereinafter called ("City").
WHEREAS, the Borrower shall purchase certain real property and develop affordable
housing units for low to moderate-income residents as described herein and agrees with the City
that the real property which is subject to this executed Mortgage and Note shall be subject to the
restrictive covenants set forth herein.
WHEREAS, Borrower agrees that the restrictive covenants shall remain in full force and
effect against the real property until the end of a thirty (30) year affordability period
("Affordability Period").
This Agreement shall be properly filed and recorded by the City in the Official Public
Records of the Pinellas County, Florida and shall constitute a restriction UpOll the use of the
property subject to and in accordance with the terms contained herein.
IN CONSIDERATION of funds the City has provided to the Borrower for a loan to
finance the acquisition of certain lands in the City of Clearwater, Pinellas County, Florida, more
particularly described as:
A portion of Lots 1 through 6, Block 3, Revised Plat of Brookwood Terrace, as recorded in Plat
Book 8, Page 34, of the Public Records of Pine lIas County, Florida.
Together with:
A portion of Lots 1 through 8, F.A. Kennedy's Fair Lane Addition, as recorded in Plat Book 11,
Page 16, of the Public Records of Pine It as County, Florida.
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Being more particularly described as follows:
Commencing at the North 1/4 comer of said Section 15, Township 29 South, Range 15 East;
thence run S.890 18'56"E. along the North boundary of said Section 15, a distance of 1,093.85
feet; thence run S.OOo 15'53"W., a distance of31.80 feet to the Northeast comer of Kellet's
Subdivision, as recorded in Plat Book 11, Page 24, of the Public Records of Pin ell as County,
Florida; then run S.890 05'28"E., a distance of 40.00 feet to the Northwest comer ofF.A.
Kennedy's Fair Lane Addition, as recorded in Plat Book 11, Page 16, of the Public Records of
Pinellas County, Florida, said point also being the point of beginning; thence run S.890 21'09"E.
along the North boundaries of said F.A. Kennedy's Fair Lane Addition and Revised Plat of
Brookwood Terrace, as recorded in Plat Book 8, Page 34, of the Public Records of Pine lIas
County, Florida, a distance of 310.07 feet to the Northeast comer of Block 3, said Revised Plat of
Brookwood Terrace; thence run S.OOo 00'19"W. along the East boundary of said Block 3,
Revised Plat of Brookwood Terrace, a distance of 310.02 feet to the Southeast comer of Lot 6, of
said Block 3, revised Plat of Brookwood Terrace; thence run N.890 22'14"W. along the Southerly
boundary of said Lot 6 and its Westerly extension, a distance of 311.44 feet to a point on the
westerly boundary ofF.A. Kennedy's Addition; thence run N.OOo 15'26"E. along the West
boundary of F .A. Kennedy's Fair Lane Addition, a distance of 310.10 feet to the point of
beginning.
In consideration of financing for the acquisition of the above referenced property, the
Borrower acknowledges that this Agreement is necessary to comply with the affordability
requirements of the Community Development Block Grant ("CDBG") program as stated at 24
CFR part 570, specifically, CDBG program criteria for national objectives as stated in 24 CFR
~570.208, from which funds were obtained to finance such loan, and subpart B ofthe Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, ~24.1 0 1, and
therefore, borrower covenants and agrees that in connection with the acquisition and
development of the project, that the City should approve any transfer or sale of the subject
property and borrower will comply, and will require any subsequent purchaser of the project to
comply, with the following:
1. Covenants and Restrictions on Use of Funds. CDBG funds provided to this project
will be used for acquisition of the real property. The Borrower agrees that at least 51 % of the
units developed will be made available and reserved for low to moderate-income families.
During the Period of Affordability as defined herein, the single family CDBG assisted unit shall
be sold to a family whose annual income does not exceed 80 percent of the median family
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income for the area, as determined and made available by the Department of Housing and Urban
Development with adjustments for smaller and larger families at the time of purchase of the new
home. The home must be the principal residence of the family.
(a) The income of the persons or family who will occupy the unit shall be verified by the City
or a designated non-profit party agreed to by the Borrower and the City, by obtaining third party
verification of current income for the family who will occupy the housing unit and verification of
assets. Source documentation evidencing annual income may include wage statements, interest
statements, and unemployment compensation statements, other documentation approved by the
City. In the event that neither of the above methods is suitable, the Borrower may use other
methods acceptable to the City 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
CDBG Program.
(b) The value of the CDBG assisted unit shall not exceed 95 percent of the median purchase
price for that type of single family housing for the area. The maximum per unit subsidy amount
shall not exceed the per dollar limits established under section 203 (b) of the National Housing
Act, as applicable.
(c) The family or individuals purchasing the single-family CDBG unit shall hold fee simple
title to the property.
(d) For the purpose of this Agreement, the Period of Affordability shall be a period beginning
when the initial homebuyer closes on the loan to purchase the unit, taking fee simple title to the
property, and terminating on the 30th anniversary thereof.
(e) During the Period of Affordability, the single family CDBG assisted unit must be occupied
by a low-income CDBG homebuyer. Should the CDBG assisted homebuyer sell the property, it
must be sold to another Eligible Homebuyer (eligible homebuyer is a family who meets the
underwriting guidelines for the city's affordable housing programs and whose annual income
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does not exceed 80 percent of the median family income for the area, as determined and made
available by the Department of Housing and Urban Development with adjustments for smaller
and larger families at the time of purchase of the new home. The home must be the principal
residence of the family).
(f) All proceeds, program income and recaptured funds associated with this project shall be
returned to the City of Clearwater within 30 days.
(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.
2. Property Standards: The single family unit shall meet and maintain all applicable local
codes, the Florida Building Code, ordinances, including but not limited to, zoning ordinances at
the time of project completion. All CDBG units must meet all applicable State and local housing
quality standards, code requirements and accessibility requirements at 24 CFR Part 8, which
implements Section 504 of the Rehabilitation Act of 1973 and covered multifamily dwellings as
defined at 24 CFR 100.20, and must also meet the design and renovation requirements at 24 CFR
100.205, which implement the Fair Housing Act. Development of the units must meet the Model
Energy Code.
3. Location of CDBG Assisted Units. The location of the CDBG assisted project is as
follows:
A portion of Lots I through 6, Block 3, Revised Plat of Brookwood Terrace, as recorded in Plat
Book 8, Page 34, of the Public Records of Pin ell as County, Florida.
Together with:
A portion of Lots 1 through 8, F.A. Kennedy's Fair Lane Addition, as recorded in Plat Book 11,
Page 16, of the Public Records of Pin ell as County, Florida.
Being more particularly described as follows:
Commencing at the North 1/4 comer of said Section 15, Township 29 South, Range 15 East;
thence run S.890 18'56"E. along the North boundary of said Section 15, a distance of 1,093.85
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feet; thence run S.OOO 15'53"W., a distance of31.80 feet to the Northeast comer ofKellet's
Subdivision, as recorded in Plat Book 11, Page 24, of the Public Records of Pin ell as County,
Florida; then run S.890 05'28"E., a distance of 40.00 feet to the Northwest comer ofF.A.
Kennedy's Fair Lane Addition, as recorded in Plat Book 11, Page 16, of the Public Records of
Pinellas County, Florida, said point also being the point of beginning; thence run S.890 21'09"E.
along the North boundaries of said F.A. Kennedy's Fair Lane Addition and Revised Plat of
Brookwood Terrace, as recorded in Plat Book 8, Page 34, of the Public Records of Pin ell as
County, Florida, a distance of 310.07 feet to the Northeast comer of Block 3, said Revised Plat of
Brookwood Terrace; thence run S.OOo 00'19"W. along the East boundary of said Block 3,
Revised Plat of Brookwood Terrace, a distance of 310.02 feet to the Southeast comer of Lot 6, of
said Block 3, revised Plat of Brookwood Terrace; thence run N.890 22'14"W. along the Southerly
boundary of said Lot 6 and its Westerly extension, a distance of 311.44 feet to a point on the
westerly boundary ofF.A. Kennedy's Addition; thence run N.OOO 15'26"E. along the West
boundary ofF.A. Kennedy's Fair Lane Addition, a distance of31O.01 feet to the point of
beginning.
The Borrower agrees that there will be no material changes to the design ofthe project after
initial commitment by the City without assurances provided by Borrower and approved by City
that the proposed changes will not adversely affect the CDBG assisted units or any provision of
this Agreement.
4. No Discrimination. The Borrower shall not discriminate, as defined by Federal
Statutes, on the basis of race, creed, color, sex, age or national origin in the use or occupancy of
the CDBG assisted units or in connection with the employment or application for employment of
persons for the operation and management of the project.
5. Affirmative Marketing Efforts. The Borrower will follow the affirmative marketing
procedures and requirements for the CDBG Program to attract eligible CDBG buyers in the
housing market area to the available housing without regard to race, color, national origin, sex,
religion, familial status or disability.
6. Environmental Reviews. The acquisition development project must be assessed for
environmental effects in accordance with the provisions of the National Environmental Policy
Act of 1969 (NEPA) and related authorities listed in HUD's implementing regulations at 24 CFR
parts 50 and 58.
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7. Displacement, relocation, and acquisition. The Borrower will take reasonable measures to
minimize displacement of persons as a result of a proj ect being assisted with CDBG funds in
accordance with the requirements of the Uniform Relocation Assistance and Real Properties
Acquisition Act. The borrower shall be responsible for any relocation expenses incurred without
City approval.
8. Lead Based Paint. The Borrower shall be responsible for maintaining that all CDBG
assisted units meet the requirements listed in the Lead Based Paint Poisoning Prevention Act and
24 CFR part 35.
9. No Conflicts with Other Documents. The Borrower warrants that it has not, and will not,
execute any other agreement with provisions contradictory 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.
10. Requests for disbursement of funds. The Borrower shall request funding for the
CDBG assisted project from the City of Clearwater on an as needed basis and in accordance with
its application and approval for such funds.
11. Records. The Borrower shall retain all records pertaining to Project for a period of five
years after audit and/or resolution of audit findings involving this loan. The Borrower shall
maintain accurate information regarding the occupancy for each CDBG unit during the term of
the Affordability Period and, at the request of the City, shall submit this infonnation to the City
for the City's review and comment. The Borrower shall maintain documentation substantiating
compliance with Affirmative Marketing Requirements. These Project records shall be made
available to The City of Clearwater, U.S. Department of Housing and Urban Development 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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The Owner shall maintain project records that include the following:
(I) A full description of each unit assisted with CnBa funds, including the location
and form of CnBa assistance.
(2) The source and application of funds for each unit, including supporting
documentation in accordance with 24 CFR 85.20.
(3) Records demonstrating that each unit meets the property standards of the lead
based paint requirements.
(4) Records demonstrating that each family is income eligible.
(5) Records demonstrating that the purchase price or estimated value after
rehabilitation for each CnBa ownership housing project does not exceed 95% of
the median purchase price for the area.
(6) Records demonstrating that each CDBa ownership unit meets the affordability
requirements.
(7) Records documenting required inspections, monitoring reviews and audit, and
the resolution of any findings or concerns
(8) Records documenting equal opportunity and fair housing records.
(9) Records documenting all cnBa related financial activities.
(10) Records documenting affirmative marketing and MBEIWBE activities.
12. Monitoring. The Borrower shall permit the City or its designee to inspect all records
pertaining to cnBa assisted units upon reasonable notice and within normal working hours and
shall submit to the City such documentation as required by the City to document compliance with
this Agreement and cnBa Program rules. If the project is new construction, the Borrower shall
provide the required documentation quarterly, until all CnBG units are sold.
13. 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 Borrower and its
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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.
14. Enforcement of Terms. The benefits ofthis Agreement shall inure to, and may be
enforced by the City for the Period of Affordability, whether or not the City shall continue to be
the holder of the Mortgage, whether or not the proj ect loan may be paid in full, and whether or
not any bonds issued for the purpose of providing funds for the project are outstanding.
15. Conflict of Interest. The Borrower warrants that no person covered who exercises or
exercised any functions or responsibilities with respect to CDBG activities or who is in the
position to participate in decisions or gain inside information may obtain a financial interest or
benefit from a CDBG activity; or have an interest in any contract, subcontract or agreement for
themselves or for persons with business or family ties.
16. Conditions of Religious Organizations. CDBG funds may not be used for
rehabilitation or construction of housing that is owned by primarily religious organizations or to
assist primarily religious organizations in acquiring housing.
17. Uniform Administrative Requirements. If the owner of the CDBG assisted project is
a not- for-profit organization, the owner agrees to comply with applicable federal administrative
requirements ofOMB Circular A-87 and applicable provisions of24 CFR 85 for government
entities, or OMB Circular A-I22 and applicable provisions of 24 CFR Part 84 for non-profit
entities.
18. Severability. The invalidity of any clause, part or provision of this Agreement shall not
affect the validity of the remaining portion thereof.
19. Defaults and Remedies. If the Borrower shall fail to observe or perform any covenant,
condition or agreement contained herein on its part to be observed or performed, then and in such
event, the City shall be entitled, in addition to all other remedies provided by law or in equity:
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(a) To compel specific performance by the Borrower of its obligations under this Agreement,
it being recognized that the beneficiaries of Borrower obligations hereunder cannot be
adequately compensated by monetary damages in the event of Borrower's default.
(b) To cause the Borrower to pay to the City an amount equal to all CDBG funds loaned to
Borrower less any principal balance previously repaid by Borrower or the transfer of real
property acquired with CDBG assistance, if any CDBG assisted unit is knowingly or negligently
sold to persons who do not comply with the requirements for such unit.
(c) In addition, to these remedies, a default by the Borrower hereunder shall constitute a default
under the Mortgage and Note which will enable the City thereunder, after notice and an
opportunity to cure as therein provided, to accelerate the Borrower's loan and take such other
actions as may be permitted under the terms of the Mortgage.
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In Witness Whereof
Signed, Sealed and Delivered in the presence of:
*Note: Two witnesses are required
Please type or write names underneath signatures
SP Country Club Homes. LLC
By: SP Country Club Homes, LLC - a limited liability corporation
By:
J. David Page - Manager
Witness
Witness
City of Clearwater, Florida
~ d/~~cV<d ~
William B. Home, II (/
City Manager
Approved as to form:
Attest:
~~'
Assistant City Attorney
FIt+TZi'LA.9 COUNTY FL OFF. REC. RK 16296 PG 1339
ATTACHMENT"A"
DECLARATION OF RESTRICTIVE COVENANTS
CITY OF CLEARWATER
CDEG PROGRAM
THIS DECLARATION,made this M!day of June 2008,between SP Country CIub Homes LLC,
its successors, assigns and transferees of the pmject described below,whose mailing address is
2430 Estancia Blvd.,Suite 141, Clearwater,Florida 33761, hereinafter called("Borrower")and
the City of Clearwater,Florida,a municipal corporation organized and existing under the laws of
the State of Florida hereinafter called{"City"}.
WHEREAS; the Borrower shall purchase certain real property and develop affordable
housing units for low to moderate-income residents as described herein and agrees with the City
that the real property which is subject to this executed Mortgage and Note shall he subject to the
I
restrictive covenants set forth herein,
WR EREAS,Borrower agrees that the restrictive covenants shall remain in full force and
effect against the real property until the end of a thirty (30) year affordabihly period
("Affordability Poriod'j.
This Agreement shall be properly fled and recorded by the City in the Official Public
Records of the Pinellas County, Florida and shall constitute a restriction upon the use of the
I
property subject to and in accordance with the terms contained herein,
IN CONSIDERATION of fiends the City has provided to the Borrower for a loan to
fbmce the acquisition of certain lands in the City of Clearwater,Pinellas County,Florida,more
particularly described as:
A portion of Lots i through 6,Block 3,Revised Plat of Brookwood Terrace,as recorded in Plat
Book 8,Pago 34,of the Public Records of Pinellas County,Florida.
Together with:
A portion of Lots 1 through 8,F.A.Kmmedy's Fair Lane Addition,as recorded in Plat Book 11,
Page 16,of the Public Records Of Pinellas County,Florida.
Being more particularly described as follows:
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PINELLAS COUNTY FL OFF. REC. BX 16295 PG 1340
Commencing at the North 114 comer of said Section 15,Township 29 South,Range 15 East;
thence run S.W 18'56"E,along the North boundary ofsaid Section 15,adistance of 1,093.85
feet;thence run S.00°15153"W.,a distance of 31.80 feet to the Northeast corner of Kellet's
Subdivision,as recorded in Plat Book 11,Page 24,of the Public Records of Pinellas County,
Florida;then run S.89"05128"E.,a distance of 40.00 feet to the Northwest comer of F.A.
Kennedy's Fair Lane Addition,as recorded in Plat Bonk 11,Page 16,of the Public Records of
Pinellas County,Florida,said point also being the point of beginning;thence run S.8912 110911E,
along the North boundaries of said F.A.Kennedy's fair Lane Addition and Revised Plat of
Brookwood Terrace,as recorded in Plat Book 8,Page 34,of the Public Records of Pinellas
County,Florida,a distance of 310.07 feet to the Northeast corner of Block 3,said Revised Fl4t of
Brookwood Terrace;thence run 5,000 00'19"W.along the East boundary of said Black 3,Revised
Plat of Brookwood Terrace,a distance of 310.02 feet to the Southeast comer of Lot 6,of said
Block 3,revised Plat of Brookwood Terrace;thence run N.89°22'14"W.along the Southerly
boundary of said Lot 6 and its Westerly extension,a distance of 311.44 feet to a point on the
westerly boundary of F.A.Kennedy's Addition;thence run N.00'1576"E.along the West
boundary of F.A.Kennedy's Fair Lane Addition,a distance of 3 10.10 feet to the point of
beginning.
In consideration of financing for the acquisition of the above referenced property,the
Borrower acknowledges that this Agreement is necessary to comply with the affordability
requirements of the Conununity Development Block Grant{"CDBG")program as stated at 24
CFR part 570,specifically,CDBG program criteria for national objectives as stated in 24 CFR
§570.208,from which funds were obtained to finance such loan,and subpart B of the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of 1970, §24.101,and
therefore,borrower covenants and agrees that in connection with the acquisition and development
of the project,that the City should approve any transfer or sale of the subject property and
borrower will comply,and will require any subsequent purchaser of the project to comply,with
the following;
1. Covenants and Restrictions on Use of Funds. CDBG funds provided to this project
will be used for acquisition of the real property, The Borrower agrees that at least 51%of the
units developed will be made available and reserved for low to moderate-income families.
During the Period of Affordability as defined herein,the single family CDBG assisted unit shall
he sold to a family whose annual income does not excecd 84 percent of the median family income
for the area,as determined and made available by the Department of Housing and Urban
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FINELLM COUNTY FL OFF. REC. BK 16296 PG 1341
Development with adjustments for smaller and larger families at the time of purchase of the new
home.The home must be the principal residence of the family.
(a) The income of the persons or family who will occupy the unit shall be verified by the City
or a.designated nonprofit party agreed to by the Borrower and the City.by obtaining third party
verification of current income for the family who will occupy the housing unit and verification of
assets.Source documentation evidencing annual income may include wage statements,interest
statements,and unemployment compensation statements,other documentation approved by the
City. In the event that neither of the above methods is suitable,the Borrower may use other
methods acceptable to the City 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
CDBG Progratm
(b)The value of the CDBG assisted unit shall not exceed 95 percent of the median purchase price
for that type of single family housing for the area.The maximum per unit subsidy amount shall
not exceed the per dollar limits established under section 221 (d)(3)and(4)of the National
Housing Act,as applicable.
1 (e)The family or individuals purchasing the single-family CDBG unit shall hold fee sinnple
title to the property.
(d)For the purpose of this Agreement,the Period of Affordability shall be a period beginning
when the initial homebuyer closes on the loan to purchase the unit,taking fee simple title to the
property,and germinating on the 3M anniversary thereof.
(e)During the Period of Affordability,the single family CDBG assisted unit must be occupied
by a low-income CDBG homebuyer.Should the CDBG assisted homebuyer sell the property,it
must be said to another Eligible Homcbuyer(eligible homebuyer is a family who meets the
underwriting guidelines for the city's affordable housing programs and whose annual income
does not exceed 80 percent.of the median family income for the area,as determined and made
available by the Department of Housing and Urban Development with adjustments for smaller
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PINELLAS COUNTY FL OFF. REC. DX 16296 PG 1342
and larger families at the time ofpurehase of the new home.The home must be the principal
residence of the family).
(f)All proceeds,program income and recaptured funds associated with this project shall be
returned to the City of Clearwater within 30 days.
(g)Any noncompliance with the requirement of this Section shall be corrected within 30 clays
after such error is firs)discovered or would have been discovered by the exercise of reasonable
diligence.
2. Property Standards: The single family unit shall meet and maintain all applicable local
codes,the Florida Building Cade,ordinances,including but not limited to,zoning ordinances at
the time ofproject completion.All CDBG units must meet all applicable State and local housing
quality standards,code requirements and accessibility requirements at 24 CFR Part 8,which
implements Section 504 of the Rehabilitation Act of 1973 and covered multifamily dwellings as
defined at 24 CFR 100.20,and must also meet the design and renovation requirements at 24 CFR
I00.205,which implement the Fair Housing Act.Development of the units must meet the Model
l;ncrgy Code.
3. Location of CDBG Assisted Units. The location of the CDBG assisted project is as
fcIlows:
A portion of hots I through 6,Block 3,Revised Plat of Brookwood Terrace,as recorded in Plat
Book 8,Page 34,of the Public Records of Pinellas County,Florida_
Together with:
A portion of Lots I through 8,F.A.Kennedy's Fair Lane Addition,as recorded in Plat Boob 11,
Page 16,of the Public Records of Pinellas County,Florida.
Being more particularly described as follows:
Commencing at the North U4 comer of said Section 15,Township 29 South,Range 15 East;
thence run 5.899 18'56"E,along the North boundary of said Section 15,a distance of 1,093.85
feet;thence run 5.00°15'53"W.,a distance of 31.80 feet to the Northeast corner of Kellet's
Subdivision,as recorded in Plat Book 11,Page 24,of the Public Records of Pinellas County,
Florida;then run 3.890 050"E.,a distance of 40.00 feet to the Northwest corner of F.A.
Kennedy's Fair Lane Addition,as recorded in Plat Book 11,Page 16,of the Public Records of
Pinellas County,Florida,said point also being the point of beginning,thence tun 5.890 21'09"E.
along the North boundaries of said F.A.Kennedy's Fair Lane Addition and Revised Plat of
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PINELLASS COUNTY FL OFF. REC. BK 16295 PG 1343
Brookwood Terrace,as recorded in Flat:Book 8,Page 34,ofthe Public Records of Pinellas
County,Florida,a distance of 310.07 feet to the Northeast corner of Black 3,said Revised Plat of
Brookwood Terrace;thence run 5,0D°0019"W.along the East boundary of said Block 3,Revised
Plat of Brookwood Terrace,a distance of 314.02 feet to the Southeast corner of Lot 6,of said
Block 3,revised Plat of Brookwood Terrace;thence run N.89°22'14"W,along the Southerly
boundary of said Lot 6 and its Westerly extension,a distance of 311.44 feet to a point on the
westerly boundary of F.A.Kennedy's Addition;thence run N.00°15'26°E.along the West
boundary of F.A.Kennedy's Fair Lane Addition,a distance of 310.10 feel to the point of
beginning.
The Borrower agrees that there will be no material changes to the design of the project after
initial commitment by the City without assurances provided by Borrower and approved by City
that the proposed changes will not adversely affect the CDBG assisted units or any provision of
f this Agreement.
4. No Discrinduation. The Borrower shall not discriminate,as defined by Federal
Statutes,on the basis of race,creed,color,sex,age or national origin in the use or occupancy of
the CDBG assisted units or in connection with the employment or application for employment of
persons for the operation and management of the project.
S. Afl"irmativc Marketing Efforts.The Borrower will follow the affirmative marketing
procedures and requirements for the CDBG Program to attract eligible CDB4 buyers in the
housing market area to the available housing without regard to race,color,national origin,sex,
religion,familial status or disability.
6. Environmental RevlewL The acquisition development project must be assessed for
environmental effects in accordance with the provisions of the National Environmental Policy
Act of 1969(NEPA)and related authorities lister!in HUD's implementing regulations at 24 CFR
parts 50 and 58.
7. Displacement,relocation,and acquisition. The Borrower will take reasonable measures to
minimize displacement of persons as a result of a project being assisted with CDBG fiends in
accordance with the requirements of the Uniform Relocation Assistance and Real Properties
-S-
PINELLAS COUNTY FL OFF. REC- BK 1629G PG 1344
Acquisition Act. The borrower shall be responsible for any relocation expenses incurred without
City approval.
8. Lead Based Paint.The Borrower shall be responsible for maintaining that all CDBG assisted
units meet the requirements listed in the Lead Based Paint Poisoning Prevention Act and 24 CFR
part 35.
9. No Conflicts with other Documents. The Borrower warrants that it has not,and will not,
execute any other agreement with provisions contradictory 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
10. Requests for disbursement of funds.The Borrower shall request funding for the CDBG
assisted project from the City of Clearwater on an as needed basis and in accordance with its
application and approval for such fimds.
11. Records.The Borrower shall retain all records pertaining to Project for a period of five
years after audit and/or resolution of audit,findings involving this loan. The Borrower shal3
maintain accurate information regarding the occupancy for each CDBG unit during the term of
the Affordability Period and,at the request of the City,shall submit this information to the City
for the City's review and comment. The Borrower shall maintain documentation substantiating
compliance with Affinnative Marketing Requirements. These Project records shall be made
available to The City of Clearwater,U.S.Department of Housing and Urban Development and/or
representatives of the Comptroller General of the United States for audit,inspection or copying
purposes during normal business hours.
The Owner shall maintain project records that include the following:
(1) A hall description ofeach unit assisted with CDBG Bands,including the location
and form of CDBG assistance,
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PIOELLAC COUNTY FL OFF. REC- BN 16296 Pia' 1345
(2) The source and application of fonds for each project,including supporting
documentation in accordance with 24 Cl~R 85.20.
(3) Records demonstrating that each project meets the property standards of the lead
based paint requirements.
(4) Records demonstrating that each family is income eligible.
(5) Records demonstrating that the purchase price or estimated value after
rehabilitation for each CDBG ownership housing project does not exceed 95%of
the median purchase price for the area.
(6) Records demonstrating that each CDBG ownership project meets the
affordability requirements.
(7) Records documenting required inspections,monitoring reviews and audit,and
the resolution of any findings or concerns
(8) Records documenting equal opportunity and fair housing records.
(9) Records documenting all CDBG related futancial activities.
(10) Records documenting affirmative marketing and M13Ef WBB activities.
12. Motdtoring. The Borrower shall permit the City or its designee to inspect all records
pertaining to CDBG assisted traits upon reasonable police and within normal working hours and
shall submit to the City such documentation as required by the City to document compliance with
this Agreement and CDBG Program rules.If the project is new construction,the Borrower shall
provide the required documentation quarterly,until all CDBG units are sold.
13. Successors Bouud. This Agreement and the covenants r m(ained herein shall run with
the land and shall hind,and the benefits shall inure to,respectively,the Borrower 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.
14. Enforcement of Terris. The benefits of this Agreement shall inure to,and may be
enforced by the City for the Period of Affordability,whether or not the City shall continue to be
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PINELLAS COUNTY FL OFF. REC. BK 16296 PG 1346
the holder of the Mortgage,whether or not the project loan may be paid in full,and whether or
not any bonds issued for the purpose of providing funds for the project are outstanding.
15. Conflict of Interest. The Borrower warrants that no person covered who exercises or
exercised any functions or responsibilities with respect to CDBG activities or who is in the
position to participate in decisions or gain inside information may obtain a financial interest or
benefit from a CDBG activity;or have an interest in any contract,subcontract or agreement for
themselves or for persons with business or family ties.
16. Conditions of Religious Organizations. CDBG funds may not be used for
rehabilitation or construction of housing that is owned by primarily religious organizations or to
assist primarily religious organizations in acquiring housing,
17, Uniform Administrative Requirements, If the owner of the CDBG assisted project is a
not-for-profit organization,the owner agrees to comply with applicable federal administrative
requirements of OMB Circular A-87 and applicable provisions of 24 CFR 83 for government
entities,or OMB Circular A-1 22 and applicable provisions of 24 CFR Part 84 for non-profit
entities,
18, Severability. The invalidity of any clause,part or provision of this Agreement shall not
affect the validity of the remaining portion thereof.
19. Defaults and Remedies. If the Borrower shall fail to observe or perform any covenant,
condition or agreement contained herein an its part to be observed or performed,then and in such
event,the City shall be entitled,in addition to all other remedies provided by Iaw or in equity:
(a)To compel specific performance by the Borrower of its obligations under this Agreement,
it being recognized that the beneficiaries of Barra wcr obligations hereunder cannot be adequately
compensated by monetary damages in the event of Borrower's default.
[b]To cause the Borrower to pay to the City an amount equal to all CDBG funds loaned to
Borrower less any principal balance previously repaid by Borrower or the transfer of real property
i
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PINELLAS COUNTY FL OFF. REC. BK 16296 PG 1347
acquired with CDBG assistance,if any CDBG assisted unit is knowingly or negligently sold to
persons who do not comply with the requirements for such unit.
(c)In addition,to these remedies,a default by the Borrower hereunder shalt constitute a default
under the Mortgage and Note which will enable the City thereunder,after notice and an
Opportunity to c=as therein provided,to accelerate the Borrower's loan and take such other
actions as may be permitted under the terms of the Mortgage.
{
I
I
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PI!gELLAS COUNTY FL OFF. RZC. EK 15296 PG 1348
In wIMM Whereof
Sig md,Sealers and Delivered in the presence of;
*Note: Two witnesses are required
Please type or write names underneath signatures
SP Country Club Homes,LLC
By: SP Country Club Homes,LLC—a limited liability eos'poration
By:
Nfitna$ ember S.D-vU &t
Witne Qne Ca�+�`�
Witnell �,t,ztnK• M I�fsrrse�—
CIty flr i.:iEaTWHteF, fl
r
William H Horne,B
City Manager
Approved as to form: ''� Attest:
Laura Li ' Cynthia E.Goudeau
Ass' t City Attorney City Clerk
-]4-
E?11;ELLAS COUNTY FL OFF- REC. 13K 16296 PG 1349
In Witness Whereof
Signed,Scaled and Delivered in the presence of
*Note: TWo witnesses are required
Please type or write names undemeadi signatures
sp-Go unt2 V efiddha�
By, SP Country Club Homes,IJC—a limited liability corporation
By.,
J.David Pap-Manager
Witness
Witness
City of Clearwater,Florida
William B.Ham,11
City Manager
Approved as to form AficsL-
4,
Laura Lipowsid V C F_Goudeau 03
C*2
Assistant City Attorney 060erk sw
is-