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DECLARATION OF RESTRICTIVE COVENANTS MODIFICATION AGREEMENT HOME PROGRAMPrepared b� Michael Holmes City of Clearwater Dept. of Economic Development and Housing 112 South Osceola Ave. Clearwater, FL 33756 DECLARATION OF RESTRICTIVE COVENANTS MODIFICATION AGREEMENT CITY OF CLEARWATER HOME PROGRAM THIS DECLARATION OF RESTRICTIVE COVENANTS MODIFICATION AGREEMENT is made this �day of� 2013, between 1409 ALPINE RD, LLC, a Florida Limited Liability Corporation of the State of Florida, its successors, assigns and transferees of the project described below, whose mailing address is: 2139 N.E. Coachman Road, Clea.rwater, Florida 33765, hereinafter referred to as "AGENCY" or "MORTGAGOR" and the CITY OF CLEARWATER, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida hereinafter referred to as "CITY". WHEREAS, the CITY is the holder and owner of that certain mortgage given by the AGENCY as recorded in O.R. Book 15164, Pages 1587 through 1603, dated May 19, 2006 and recorded June 6, 2006 in the Public Records of Pinellas County, Florida, as modified in that certain Mortgage Modification Agreement recorded in O.R. Book 15370, Pages 2119 through 2121, dated September 18, 2006 in the Public Records of Pinellas County, Florida (collectively the "Mortgage"); and Alpine — HOME RC — 04. I 7.13 Page 1 of 12 WHEREAS, in consideration of the funds advanced to Agency and secured by the Mortgage to fund the acquisition (including closing costs, renovation and other related costs ) of the property more particularly described below, the CITY and the AGENCY entered into a DECLARATION OF RESTICTIVE COVENANTS, CITY OF CLEARWATER, HOME PROGRAM (the "DECLARATION", attached to the Mortgage as Attachment "A") to establish an affordability period for the subject property and ensure program compliance under the funding source, HOME Investment Partnership Program, on certain real property described as: Unit Nos. 1, 2, 5 and 6, Building 1409 ALPINE CONDOMINUM, according to the Declaration of Condominium thereof, as recorded in Official Records Book 15043, Page 2688 and amended in Official Records Book 15071, Page 683 and all exhibits and further amendments thereof, all of the Public Records of Pinellas County, Florida. WHEREAS, this Agreement shall be properly filed and recorded by City in the Official Public Records of Pinellas County, Florida and shall constitute a restriction upon the use of the property subject to and in accordance with the terms contained herein. The DECLARATION shall hereby be modified to identify the current acceptable property use and provide for the corresponding program requirements and guidelines, with the original DECLARATION terms modified by additions underlined and deletions stricken in legislative format as follows. 1. Covenants and Restrictions on Use of Funds. HOME funds provided to this project ��e were used for acquisition of the real property plus closing costs and renovation costs. During the Period of Affordability as defined below, the single family HOME assisted unit �e� shall be se� rented to a family whose annual income does not exceed 80 percent of the median family income for the area, as determined and made a�ailable by the Department of Housing and Lrban Development with adjustments for Alpine — HOA�I.F, RC — 04.17.13 Page 2 of 12 smaller and larger families at the time of ��e rental of the �=�� housin�unit. ��. ....�..:.:::�::.,,.,::.":.�:...:,,.:..,-:�.�.:.�:.,�:. _,:.�.,,::..... (a) The income of the persons or family who will occupy the unit will be verified by the Agency by obtaining third party verification of current income for the family who will e�� rent the housing unit ��a •°-��+��-� ��°+�. Source documentation evidencing annual income may include wage statements, interest statements, unemployment compensation statements, other documentation approved by the City. In the event that neither of the above methods is suitable, the Agency 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 HOME Program. (b) Durin� the Period of Affordability, the owner must maintain an affordabilitv requirement by establishing the maximum HOME rents at the lesser of: (1) The fair market rent for existin� housing for comparable units in the area as established by HUD under 24 CFR 888.111; ar (2) A rent that does not exceed 30 percent of the adjusted income of a famil� whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided bv HUD will include avera e occupanc�per unit and adjusted income assumptions. In addition, twenty (20�percent of the HOME- assisted units must be occupied by very low-income families and meet one of following rent requirements: �3) The rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined bX HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average occupancy �er unit and adjusted income assumptions. However, if the rent determined under this para�raph is hig;her than the a�licable rent under para�raph (b.l) of this section, then the maximum rent for units under this paragraph is that calculated under paragraph (b.l) of this section. hlpine — HOME RC — 0417.13 Page 3 of 12 (4) The rent does not exceed 30 percent of the famil. '��djusted income. If the unit receives Federal or State project-based rental subsidy and the verv low-income famil�pavs as a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project- based rental subsidy) is the rent allowable under the Federal or State project-based rental subsid�program• . . ��.:.�.:,...�:.�,:.�.. .::.�,r,.,..,��;�.,:..,..,:�,,.�:.:.��.��;�..�: - niea:�.i�0��.•ii�0a.ri�s.ii�.��i�:�� C�si�':��C�ii�a:��ii�ae.imis.n i��i��C�.ri�0�v�.�oRS�Oii�wwa�:�� (b) (c) For the purpose of this Agreement, the Period of Affordability shall be a period beginning when the HOME funds are invested and ending at the end of the 1 Sth (fifteenth) year thereafter. � ` - - n l.tir�-��:....��:,�.. �;,��-�—:...z�,:.�::r,.,.��..... • - ,:�....�,:��=�:�:�-::.�:.�:.�,:.�.._�: - :,��, Intentionally omitted. (e) The City will use the recapture provision for repayment of the loan should the �tem°� r�* �'�;a� .,,;*'� owner fail to rent to eli�ible tenants durin the affordability period. The repayment amount due and payable at sale, transfer of ownership, or when the property is not being �sec�s *'�° � �' �^m°'",�,°�'� � ^' r �:�'°��° �rovided to an eligible Alpine — HOME RC — D-�.1713 Page 4 of 12 tenant shall be the balance due at the time of the actions listed above plus any interest, penalties, or any payments due thereof. (g fl All proceeds, program income and recaptured funds associated with this project shall be returned to the City of Clearwater within 30 days of receipt by the agency. (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 Southern Building Code, ordinances, and zoning ordinances at the time of project completion. The HOME assisted 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. Renovation of house must meet the Model Energy Code. 3. Location of HOME Assisted Units. The location of the HOME assisted project is �1409 Alpine Road, Clearwater, Florida units 1. 2, 5 and 6. The Agency agrees that there will be no material changes to the design of the project after initial commitment by the City without assurances provided by Agency and approved by City that the proposed changes will not adversely affect the HOME assisted units or any provision of this Agreement. ,1lpine — KO.�I�IE RC— 04.17.13 Page5of12 4. No Discrimination. The Agency shall not discriminate, as defined by Federal Statutes, on the basis of race, creed, color, sex, age or national origin in the lease use, or occupancy of the HOME 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 � Owner will follow the affirmative marketing procedures and requirements for the HOME Program to attract eligible �e�ers tenants 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. Each HOME assisted 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. 7. Displacement, relocation, and acquisition. The Agency will take reasonable measures to minimize displacement of persons as a result of a project being assisted with HOME funds in accordance with the requirements of the Uniform Relocation Assistance and Real Properties Acquisition Act. The Agency will be responsible for any relocation expenses without City of Clearwater approval. 8. Labor. The Agency shall be responsible for maintaining the prevailing wage rates for HOME assisted projects with 12 or more units in accordance with the Davis- Bacon Act (40 U.S.C. 276a-276a-5). 9. Lead Based Paint. The Agency sha11 be responsible for maintaining that all HOME assisted units meet the requirements listed in the Lead Based Paint Poisoning Prevention Act and 24 CFR part 35. Alpine — HOME RC— 04.17.13 Page 6 of 12 10. No Conflicts with Other pocuments. The Agency 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. 11. Requests for disbursement of funds. The Agency shall request funding for the HOME assisted project from the City of Clearwater on an as needed basis. 12. Records. The Agency 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 Agency shall maintain accurate information regarding the occupancy and contract rents for each HOME assisted 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 Agency 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. The Owner sha11 maintain project records that include the following: (1) A full description of each project assisted with HOME funds, including the location and form of HOME assistance. (2) The source and application of funds for each project, including supporting documentation in accordance with 24 CFR 85.20. Alpine — HOA1E RC— 04.17.13 Page 7 of 12 (3) Records demonstrating that each rental assisted unit meet the minimum per-unit subsidy amount of Section 92.205 (c), 92.250 (a) and the subsidy guidelines adopted in accordance with 92.250 (b). (4) Records demonstrating that each project meets the property standards of Section 92.251 and the lead based paint requirements of Section 92.355. (5) Records demonstrating that each family is income eligible in accordance with Section 92.203. . III��1�1�1��.f�1�.��I��\�I�nl�ti�� \ ��!f� ��i/��1 ��I�Tl��(iS�l7i�'ti�l�� S!��l�I• Q �34—Intentionallv omitted. (7) Records demonstrating that each rental assisted unit meets the affordability requirements ^�c°�+:�� °'' ''�^ ��+�,° �i "�� (8) Records demonstrating compliance with the written agreements required in Section 92.504 (9) Records demonstrating compliance with the applicable uniform administrative requirements required in 92.505. (10) Records documenting required inspections, monitoring reviews and audit, and the resolution of any findings or concerns (11) Records documenting equal opportunity and fair housing records. (12) Records documenting all HOME related financial activities. Alpine — H0�11E RC — 04.17.13 Page 8 of 12 (13) Records documenting affirmative marketing and MBE/WBE activities. 13. Monitoring. The Agency shall permit the City or its designee to inspect all records pertaining to HOME 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 HOME Program rules. If the project is new construction, the Agency shall provide the required documentation quarterly, until all HOME assisted units are filled. The Agency acknowledges that City ar its designee must, no less than annually, inspect each HOME assisted unit for compliance with Housing Quality Standards and local code requirements, will facilitate such inspections with tenants as necessary. 14. 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 Agency and its successors and assigns and all subsequent owners of the project ar any interest therein, and to the City for the Period of Affordability set forth in this Agreement. 15. Enforcement of Terms. 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 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. 16. Conflict of Interest. The Agency warrants that no person covered who exercises or exercised any functions or responsibilities with respect to HOME activities or who is in the position to participate in decisions ar gain inside information may obtain Alpi��te — NDME RC — 04.17.13 Page9of12 a financial interest or benefit from a HOME activity; or have an interest in any contract, subcontract or agreement for themselves or for persons with business or family ties. 17. Conditions of Religious Organizations. HOME 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. 18. Uniform Administrative Requirements. If the owner of the HOME 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-122 and applicable provisions of 24 CFR Part 84 for non-proiit entities. 19. Severability. The invalidity of any clause, part or provision of this Agreement shall not affect the validity of the remaining portion thereof. 20. Defaults and Remedies. If the Agency 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 Agency of its obligations under this Agreement, it being recognized that the beneficiaries of Agency obligations hereunder cannot be adequately compensated by monetary damages in the event of Agency's default. (b) To cause the Agency to pay to the City an amount equal to all HOME funds loaned to Agency less any principal balance Alpi�ze — HO!YIE RC — 0�.17.13 Page 10 of 12 previously repaid by Agency, if any HOME assisted unit is knowingly or negligently rented to persons who do not comply with the requirements for such unit. (c) In addition, to these remedies, a default by the Agency 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 agency's loan and take such other actions as may be permitted under the terms of the Mortgage. IN WITNESS WHEREOF: 1409 AL INE ROAD, LLC �-�,,-,-�',.��. ° ' 'Q�.�.-!'°r"� By: ; � _ , Witness Manag ng rtner — Tam a Bay Community Development Corp. /1-{ .t-1 �8 c.�-�-� � • v�c-PDi✓ T (Print Name) _ .' ', ";' � i° . � N' I - � (Print Name) STATE OF �=1o�r�d! GL, COUNTY OF ( i ��0.l, } § Printed Name: Gregory E. Schwartz. President. Tampa Bay CDC The foregoing instrument was acknowledged befor� me this _� day of ` 20713, by � �' SC. � W a r+Z, who is (��ersonall known to e or O who has produc d as identi ica ion. � ,p "'�e M.�rMlwTtiY� �; �S'�Y � i _+. +: MY COhAMISSION # DD 977766 , �:� � EXPIRES: May 1, 2014 (SI � tUf2� %��w�� Bonded Thru Notary Public Undenvriters J �� /"', � � �Yti � (Name of Notary, typed, printed or stamped) Alpine — HOA4E RC — 04.17.13 Page 11 of 12 Countersigned: � r�Q��e��s- q � George N. Cretekos Mayor Approved as to form: Laura Mahony Assistant City Attorney STATE OF FLORIDA ) ss: COUNTY OF PINELLAS CITY OF CLEARWATER, FLORIDA By: � ,' � ,,.o�, illiam B. Horne, II City Manager Attest: �E I, the undersigned Notary Public of the County and State aforesaid, certify that personally came before me this day and acknowledged that he/she is the Authorized Signatory of the City of Clearwater, a municipal corporation under the laws of the State of Florida , and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by , sealed with its corporate seal and attested by , as its , as an act and on behalf of said corporation. Witness my hand and official stamp or seal, this _ day of , 20 _ [AFFIX NOTARY SEAL] Notary Public My Commission Expires: Page 12 of 12 ff lpr)ie — HOME RC — 04. ! 7.13