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PROJECT DEVELOPMENT AGREEMENT Project Development Agreement City of Clearwater And Habitat for Humanity of Pinellas County, Inc. :-fi. THIS AGREEMENT entered into this~ !h day of -i VoI\-'L2oos, between Habitat for Humanity of Pine lias County, Inc. its successors, assigns and transferees of the project described below, whosemailingaddressis307111SthAvenueNorth.St. Petersburg, F]orida 33716, hereinafter called ("Borrower") and the City of Clearwater, F]orida, a municipal corporation organized and existing under the laws ofthe State ofF]orida hereinafter called ("City"). WHEREAS, the Borrower is engaged in developing affordable housing for low to moderate-income families, the Borrower has purchased rea] property located in, Clearwater, F]orida described as Parcel # 03/29/15/00000/420/0]40 with the purpose of building new housing units; and WHEREAS, it has been determined that the existing housing units at the project location should be demolished; and WHEREAS, in consideration of providing affordable housing units in the City of Clearwater, the City, simultaneous to entering into this agreement, is providing a loan to the Borrower for costs associated with the demolition of the existing dilapidated units NOW, THEREFORE, in consideration of the mutua] covenants set forth herein, and other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree as follows. IN CONSIDERA nON of the funds provided, the Borrower agrees to demolish the existing sixteen single-story apartment structures and build new affordable housing units at the site of the former Homer Villas Housing Project located on certain lands in the City of Clearwater, Pine lias County, Florida, more particularly described as: - 1 - Parcel # 03/29/1 5/00000/420/0140 That portion of the West Y2 of the Southeast V4 of section 3, Township 29 South, Range 15 East, Pine lias County, Florida, being more particularly described as follows: For a point of reference, commence at the Southeast comer of said section 3, township 29 South, Range 15 East, thence run North 00008' 18" West along the Easterly line of said Section 3, a distance of 858.00 feet; thence run North 89036'07" West, a distance of 1372.75 feet to a point on the West right of way line of Betty Lane (60' RlW), thence run North 00007'27" West along said right of way, a distance of 1057.22 feet to the point of Beginning, thence run North 89012'39" West, a distance of 504.62 feet; thence run South 00011 '44" East, a distance of 220.0 feet, thence run North 89012'39" West, a distance of 100.00 feet to a point on the East right of way line of Pineland Drive (60'RlW), thence run North 00011'44" West along said right of way, a distance of 776.10 feet to the intersection of said right of way with the center line of Springtime Branch, thence run in a Southeasterly and Northeasterly direction along the center line of said Springtime Branch to a point of intersection of Springtime Branch and the South right of way line of Sunset Point Road (83' RlW), thence run South 89012'39" East along said right of way, a distance of 147.49 feet to a point on the West right of way line of Betty Lane (60' R1W), thence run South 00007'27" East a distance of 698.09 feet to the Point of Beginning. IN CONSIDERA nON of financing for the demolition of the apartment buildings on the 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 therefore, borrower covenants and agrees that in connection with the demolition and development of the project, that the City may 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: Covenants and Restrictions on Use of Funds. CDBG funds provided to this project will be used for demolition. The Borrower agrees that at least 5 I % of the units developed will be made available and reserved for low to moderate-income families. The single family CDBG assisted units shall be sold to families 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 -2- 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 may 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 units 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 units shall be owner- occupied. (d) 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. Property Standards: The single family units 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 - 3 - 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, as applicable Development of the units must meet the Model Energy Code. 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. 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. Environmental Reviews. The demolition 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'simplementing regulations at 24 CFR parts 50 and 58. No Conmcts with Other Documents. The Borrower warrants that it does not intend to execute any other agreement with provisions contradictory to, or in opposition to, the provisions hereof, and that, in any event, the borrower warrants that it will comply with the terms of this agreement. 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. 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 and at the request of the City, shall submit this information to the City for the City's review and comment. The -4- Borrower shall maintain documentation substantiating compliance with Affirmative Marketing Requirements. This Demolition 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 full description of each unit assisted with CDBG funds, including the location and form of CDBG assistance. (2) The source and application of funds for each project, including supporting documentation in accordance with 24 CFR 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 for each CDBG housing unit does not exceed 95% of the median purchase price for the area. (6) Records demonstrating that each CDBG 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 CDBG related financial activities. (10) Records documenting affirmative marketing and MBE/WBE activities. Monitoring. The Borrower shall permit the City or its designee to inspect all records pertaining to CDBG assisted units upon reasonable notice and within normal working hours and - 5 - 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. Successors Bound. This Agreement and the covenants contained herein shall be binding and the benefits shall inure to, respectively, the Borrower and its successors and assigns. Enforcement of Terms. The benefits of this Agreement shall inure to, and may be enforced by the City, whether or not the City shall continue to be 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. Conmct 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. Conditions of ReUgious Organizations. CDBG funds may not be used for the construction of housing that is owned by primarily religious organizations or to assist primarily religious organizations in acquiring housing. 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 85 for government entities, or OMB Circular A-I22 and applicable provisions of24 CFR Part 84 for non-profit entities. Severability. The invalidity of any clause, part or provision of this Agreement shall not affect the validity of the remaining portion thereof. -6- 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: (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. - 7 - In Witness Whereof Signed, Sealed and Delivered in the presence of: *Note: Two witnesses are required Please type or write names underneath signatures Habitat Cor Humanity oCPinellas County, Inc. By: Habitat Cor Humanity of Pine lias County, Inc.- A Not For Profit Florida Corporation By: ~~ Executive Director ~~~ . Wltne~ ~ / W. ss City of Clearwater, Florida raldine Campos Lopez irector Economic Developm Approved as to form: Attest: ~~ Assistant City Attorney - 8-