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LAND USE RESTRICTON AGREEMENT (LURA) # PIIGES _~,__ ~ {<eeT # CHG AMT ---- - - CK Aif.i ==~ , REC yzos- DS DR219 ~__'d- j',(", I_)~ KAI\tEEN F. DE BLAKER, CLERK OF COURT PItfLLAS 11UHV, FLORIDA --------------------------------------- INT FEES /-ATF PIC REV TOTAL 9C'l80606 06-04-2002 08:49:47 HBW 51 AGR-CITV OF CLEARWATER 00??oo 1<<:02208401 BK:12035 SP6:0714 EPG:0722 RECORDING 009 PAGES 1 $42.00 -~_..- ----1f? n.: rURN TO: This instrument prepared by: City of Clearwater Dept. of Economic Development & Housing Housing Division 112 S. Osceola Ave, Clearwater, FL 33756 TOTAl: $42.00 CASH AHT. TENDERED: $5.00 (J[C/( AMI. TENDERED: $37.50 CHAt<<: $.50 BY -_____ DEPUTY CLERK · 02-20840 1 JUN- 4-2002 8: 49FlM PINELLAS CO 8K 12035 PG 714 ---JIIIIIIJI~IDjljlJJllllllllilllfUlJOOL___ LAND USE RESTRICTION AGREEMENT City of Clearwater HOME/SHIP Program cti- THIS LAND USE RESTRICTION AGREEMENT (this "LURA") shall be dated on I~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 Clrr"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 PINELLRS COUNTY FLR, OFF,REC,8K 12035 PG 715 WHEREAS, the Department of Housing Urban Development ("HUD") has requested that land use restrictions be set forth in a separate recorded agreement, and the CITY desires to execute this LURA 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 Pinellas 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 "MANAGEMENT" who shall be responsible for the maintenance, operation and normal day-to-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 2 ~ PINELLRS COUNTY FLR, OFF,REC,8K 12035 PG 718 shall have annual incomes which do not exceed 60 percent of the median family income for the area, as determined and made available by the HUD with adjustments for 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. (a) The income of the persons or families who will occupy the units will be 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 3 PINELLAS COUNTY FLA, OFF.REC.8K 12035 PG 717 lease provisions. If allowable HOME rents decrease, the CITY or MANAGEMENT must adjust rents downward within 30 days after receipt of the applicable rental rates. If mandated rent decreases 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 increases after properly occupying a HOME 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 noUess than 30 percent of the tenant's 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 4 PINELLRS COUNTY FLR, OFF,REC,8K 12035 PG 718 the HOME/SHIP assisted units as described above with the exception that the income of households occupying the SHIP assisted units shall not exceed 120 percent of the area's median income adjusted 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 be similar to all other units in the project. 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 5 PINELLRS COUNTY rLR Orr,REC,8K 12035 PG 719 MANAGEMENT, and that tenant's failure to provide accurate information about household income or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of his/her tenancy, and (b) Agrees not to sublease to any person or family who does not meet income qualifications as determined, verified and certified by the CITY or MANAGEMENT. 5. Tenant Lists. The CITY or MANAGEMENT shall adopt written tenant 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 permitted 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. 6 PINELLRS COUNTY FLR. OFF.REC.BK 12035 PG 720 8. No Conflict with Other Documents. The CITY 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. 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 information regarding the occupancy and contract rents for each HOME/SHIP assisted unit during the term 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 normal business hours. 7 ~ t > . PINELLRS COUNTY FLR, OFF,REC,BK 12035 PG 721 IN WITNESS WHEREOF, the Parties have executed this Land Use Restriction Agreement by its duly authorized representatives. CITY: CITY OF CLEARWATER, FLORIDA B~-=6J4.... ~ City Manager Approved as to form: ~ Ca~assas Assistant City Attorney ATTEST: 2,' =, STATE OF FLORIDA ) COUNTY OF PINELLAS ) The foregoing instrument was acknowledged before me this / i day of 1Jt~002, I LLlAM B. HO Ell, qity ~anager of the City of Clearwater, who is personally ~'t~' me. ,., 1L,,;"/1 '\ l, '1) I ~/! ,,/'... I / f---/ Print/Type Name~/!Jl~e.J fJ. !J '/ SfJJ Notary Public ",mt"" .. ..tIIF.'.r~'", Denl86 A Wilson f....{ : MYCOMMISSlONI CC914101 EXPIRES ~.,/ June 18, 2004 "'~p.f.:: "", BONDED THRU TROV FAIN IHSLliANCE. INC 8 .."~ ,.,. PINELLAS COUNTY FLA, OFF.REC.BK 12035 PG 722 EXHIBIT - A 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) . PLAT 005 PAGE 079 NORWOOD 1 st ADD BLK D, LOTS 1,2, 3 & W ~ OF LOT 4 LESS ST (LEASE) - (10/29/15/61758/004/0010) .;I.. .,.,r ..,'1Ji.' ~~ ' ~'~1. .~ ....,,) "'\ ;: \ ~:\.. ~ ~..',: \ '. "..:. -')".., . \""l t,:, \ . "'} "t:o' .' ," t '<.:-;" } ".' ~~ ':"'1' ~~"It., '. ,."'~.\ ' >.:;:'!.. t\.".. " : ' ,,"; t~. ,J,"'; ".,1 ," 1"'/ ; "ii'"" ./,,;'