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
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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.
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(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
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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.
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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.
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(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,
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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
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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.
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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
MT. CARMEL COMMUNITY DEVELOPMENT CORPORATION OR
CLEARWATER. INC.
By: Mt. Carmel Community Development Corporation or Clearwater, Inc., a not
for profit organization
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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. .
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