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ATTACHMENT "A" - DECLARATION OF RESTRICTIVE COVENANTS - HOME PROGRAM ATTACHMENT "A" DECLARATION OF RESTRICTIVE COVENANTS CITY OF CLEARWATER HOME PROGRAM THIS DECLARATION, made this~y of~06 MT. CARMEL COMMUNITY DEVELOPMENT CORPORATION OF CLEARWATER, INC., its successors, assigns and transferees of the project described below, whose mailing address is: 1014 Pennsylvania Avenue, Clearwater, Florida 33755 and hereinafter called ("Agency") and the City of Clearwater, Florida, unit of local government organized and existing under the laws of the State of Florida hereinafter called ("City"). WHEREAS, the Agency shall purchase certain real property described herein and agrees to the City that the real property executed Mortgage and Note shall contain the restrictive covenants set forth herein. WHEREAS, Agency agrees that the restrictive covenants shall remain in full force and effect against the real property until the end of the affordability period. This Agreement shall be properly filed and recorded by City in the Official Public Records of the City of Clearwater, Florida and shall constitute a restriction upon 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 Agency for a loan to finance the acquisition including closing costs, renovation, and other related cost on lands in the City of Clearwater, Pinellas County Florida described as: South ~ of Lot 6, Lots 7 & 8 Greenwood Manor, according to the map or plat thereof as recorded in the Plat Book 21, Page 65, of the Public Records of Pin ell as County, Florida. This acquisition/renovation, or a portion thereof, which has the address of: LaSalle Street, Clearwater, Florida (herein "Property Address") and which is described in the mortgage between the City and the Agency, the Agency acknowledges that this Agreement is necessary to comply with the affordability requirements of the HOME program stated at 24 CFR ~92.252, from which funds were obtained to finance such loan, covenants and agrees that in connection with the acquisition and renovation project, that the City should approve transfer of sale and it will comply, and will require any subsequent purchaser of the project to comply, with the following: 1. Covenants and Restrictions on Use of Funds. HOME funds provided to this project will be 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 which shall be sold to a family 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 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 will be verified by the Agency 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, unemployment compensation statements, other documentation approved by the City. In the event that 2 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) The value of the HOME assisted unit shall not exceed 95 percent ofthe 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)(ii) of the National Housing Act. (b) The family or individuals purchasing the single-family home shall have fee simple title to the property. (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 15th (fifteenth) year thereafter. (d) During the period of affordability, the single family unit must be occupied by the original low-income homebuyer. Should the homebuyer sell the property to any willing buyer at whatever price the market will bear, the sale will trigger repayment of the HOME assistance. (e) The City will use the recapture provision for repayment of the loan should the homebuyer not abide with the affordability period. The repayment amount due and payable at sale, transfer of ownership, or when the property is not being used as the original homebuyer's principal residence shall be the balance due at the time of the actions listed above plus any interest, penalties, or any payments due thereof. (g) 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. 3 (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 LaSalle Street, Clearwater, Florida. 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. 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 Agency will follow the affirmative marketing procedures and requirements for the HOME Program to attract eligible homebuyers in the 4 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 shall 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. 10. No Conflicts with Other Documents. 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. 5 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 shall 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. (3) Records demonstrating that each homeownership project 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. 6 (5) Records demonstrating that each family is income eligible in accordance with Section 92.203. (6) Records demonstrating that the purchase price or estimated value after rehabilitation for each homeownership housing project does not exceed 95% of the median purchase price for the area in accordance with Section 92.254. (7) Records demonstrating that each homeownership project meets the affordability requirements of Section 92.254 for the required period. (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 (1~) Records documenting equal opportunity and fair housing records. (12) Records documenting all HOME related financial activities. (13) Records documenting affirmative marketing and MBE/WBE activities. 12. 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 or its designee must, 7 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. 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 Agency 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 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 paidin full, and whether or not any bonds issued for the purpose of providing funds for the project are outstanding. 15. 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 or gain inside information may obtain 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. 16. 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. 17. 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 ofOMB Circular A-87 and applicable provisions of 8 24 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 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 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. 9 IN WITNESS WHEREOF, Signed, Sealed and Delivered in the presence of: *Note: Two witnesses are required Please type or write names underneath signatures MT. CARMEL COMMUNITY DEVELOPMENT CORPORATION OR CLEARWATER. INC. By: Mt. Carmel Community Development Corporation or Clearwater, Inc., a not for profit organization t Countersigned: CITY OF CLEARWATER, FLORIDA . ~- ~~~-.,~ ~ank V. Hibbard Mayor-Councilmember BY:~~ William B. Home, II City Manager Approved as to form: &~l!IJ Attest: Assistant City Attorney - 0#.JL .QL~ Cyn a E. GoUdeau City lerk. . 10