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FIRST AMENDMENT TO THE COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AGREEMENT FIRST AMENDMENT TO THE CITY OF CLEARWATER, FLORIDA AND CLEARW ATERNEIGHBORHOOD HOUSING SERVICES, INC. COMMUNITY HOUSING DEVELOPMENT ORGANIZATION AGREEMENT THIS FIRST AMENDMENT ("Amendment"), made and entered into this 1st day of March, 2006, to the ORIGINAL AGREEMENT ("Original Agreement") dated September 1, 2005, by and between the City of Clearwater, Florida, a municipal corporation existing by and under the laws of the State of Florida, herein after referred to as the "City", and Clearwater Neighborhood Housing Services, Inc., a not-for-profit corporation organized under the laws of the State of Florida, herein after referred to as the "CNHS": WHEREAS, the City is the recipient of a HOME Investment Partnership Program (HOl\.1E) Grant from the U.S. Department of Housing and Urban Development (HUD) pursuant to Title II of the Cranston-Gonzalez National Affordable Housing Act of 1990, as amended, 42 U.S.C. 12701 et seq. (HOME Program), codified and implemented by 24 CFR Part 92; and WHEREAS, under the provisions of the Act, the City is required to set-aside at least 15% of its HOME Investment Partnership Program entitlement allocation to organizations that meet the requirement for Community Housing Development Organizations (CRDO), as specified by the HOl\.1E Program, for the CHDO to own, develop or sponsor housing for families at or below 80% of the area median income; and WHEREAS, the CNHS has met the requirements established by the federal government and has been certified as a CHDO by the City, pursuant to the National Affordable Housing Act of 1990, as amended; and WHEREAS, the City and the CNHS desire to sign an agreement which sets forth terms and conditions for the use and acceptance of the unexpended FY2003-04 HOl\.1E Program CHDO Set Aside funds to develop safe, decent and affordable housing; and WHEREAS, the City desires to increase the amount of funds associated with the ORIGINAL AGREEMENT, so that CNHS can construct additional homes using the City's HOME funds, WHEREAS, the original Agreement dated September 1, 2005 remains in full force in effect; NOW THEREFORE, in consideration of the promises and covenants contained herein, the parties hereto agree as follows: PARTI-SPECWIC TERMS AND CONDTIaONS A. Source and Use of Funds 1. Sources of Funds: The sole source offunding from the City for payment of services performed under this Agreement is the HOME Investment Partnership Program entitlement provided to the City by HUD. CNHS agrees that in the event that the HOME Investment Partnership Program entitlement is reduced or withheld HUD, the City shall not be liable for payment of contracted services from any City fund other than the HOME Investment Partnership Program entitlement, in which case CNHS further agrees that the maximum sum payable under this Agreement may be reduced by the City. In the event the HOD determines that the City or the CNHS have not fulfilled their obligation under the HOME Investment Partnership entitlement requirements, or the City determines that CNHS has not fulfilled its obligation under the HOME Investment Partnership Program requirements, and/or HUD or the City demands reimbursement of expenses paid under this Agreement, CNHS shall provide said reimbursement from non-federal sources within ten day of said notice form City. Funding in this agreement includes $88.902 from the FY 2003-04 HOME Program CHOO Set-aside and an additional $300.000 in HOME Program Funds from various HOME Program years. These funds shall be counted as CHOO funds, but CNHS must follow all the standard rules and regulations of the HOME Program. The proceeds from the original $88,902 may be used by CNHS to support the operations of their organization. CNHS further acknowledges that this Agreement is necessary to comply with the requirements of 24 CPR Part 92 - HOME Investment Partnership Program and incorporated herein by reference, which is the source of funds provided under this Agreement; and agrees that it will comply with; and will require all subcontractors, subgrantees and assigns to comply with all terms and conditions of said 24 CFR Part 92 and this Agreement, as amended. It shall be CNHS' s responsibility to insure that it has the latest version of all applicable laws and regulations in its possession so as to be able to comply with their provisions. When CNHS identifies a property(s) to be developed with a new home, the City will prepare a construction loan for the property( s) along with the required HOME Restrictive Covenants. When the home is completed, the City's loan will be released and a new loan will be issued for the applicable amount along with the HOME Restrictive Covenants, which will be part of the new loan for the subsequent purchaser. The maximum construction loan for any single property shall be $150.000. 2. Use of Funds: In consideration of HOME Investment Partnership Program entitlement funding allocated by the City, CNHS shall operate the programs and specific activities described in Exhibit A & B, attached hereto, and incorporated herein by reference. CNHS shall utilize its HOME CHDO allocation as an owner- developer to provide housing for families at or below 80% of the area median income in accordance with policies established by HUD and therefore shall: a. HOME funds, and CHDO Proceeds, provided to this project will be used for construction, demolition, acquisition of real property, acquisition/rehabilitation of real property, developers fees, and other predevelopment costs, or other costs as approved by the City, as identified in Exhibit A of this agreement for properties to be determined; b. Project shall be implemented in accordance with this agreement and declaration of restrictive covenants; c. All homes assisted through the funds covered under this agreement shall have a recorded Land Use Restriction Agreement (LURA) and/or the Restrictive Covenants as an exhibit to the loan docs. B. Method of Payment 1. Funding Allocation: Both parties agree that the total compensation to be paid hereunder for actual expenses incurred shall be no more than EIGHTY EIGHT THOUSAND NINE HUNDRED AND TWO DOLLARS ($88,902). The City hereby acknowledges that the funds provided shall be derived as the 15% CHOO set-aside through the FY2003-04 HOME Program in the amount of $88,902. An additional THREE HUNDRED THOUSAND ($300,000) shall be provided to CNHS for the purpose of constructing new homes. The total amount of this funding allocation shall be THREE HUNDRED - EIGHTY EIGHT THOUSAND NINE HUNDRED AND TWO DOLLARS ($388,902). These funds will be also counted as CHOO funds. The funds will be expended in accordance with the terms and conditions of the Agreement. Funds reserved for CNHS may increase or decrease, subject to production standards. Any remaining funds shall revert to the City or other City approved agency. Such compensation shall be paid in accordance with the projected accomplishments and budget descriptions attached hereto and made a part hereof as Exhibit A. c. Return on Investment 1. CHOO Proceeds: Any HOME construction loan funds that are repaid to CNHS, as a result of a home being sold, shall be considered CHDO Proceeds, and shall not be . ! returned to the City. These funds may only be used by CNHS for the activities described above in Section A(2)(a) as long as CNHS follows all of the applicable HOME rules and regulations.CNHS must report to the City on a quarterly basis (October 1st, January 1st, April 1st, and July 1st), a detailed accounting of the use of the CHDO Proceeds. The CHDO Proceeds from the original $88,902 may be used by CNHS to support the operations of their organization. After the reimbursement of the $300,000 from the City, CNHS will use the CHDO Proceeds, maintained in a separate banking account - designated as "CHDO Proceeds Revolving Loan Fund", to fund future HOME eligible activities. If there are insufficient funds, in the HOME CHDO revolving loan fund, to fund subsequent eligible activities, CNHS may request additional funds from the City. Funds that are received by CNHS, resulting from the sale of homes, that are above the HOME construction loan amounts, shall be retained by CNHS, for use as they desire and not subject to the HOME program rules and regulations. After a period offive (5) years, CNHS may use the CHDO Proceeds for households who are above 80% Area Median Income (AMI), but no greater than 120% AMI. The City shall execute a separate agreement with CNHS outlining the uses of the CHDO Proceeds. 2. Recaptured Funds: Funds recaptured because housing no longer meets the affordability requirements under 24 CFR Part 92.254 are subject to the requirements of Part 92, and must be properly identified and deposited in the CNHS's HOME Account for use for additional HOME eligible projects. Recaptured funds must be used prior to drawing down of additional HOME Investment Partnership entitlement funds from the City under this Agreement. IN WITNESS WHEREOF. the parties hereto have caused this Agreement to be executed by their dilly authorized officials on the day and date first above indicated. Oearwater Neighborhood Housing ~ B..... / ... .~ mdem : ~s# 0/7~0 Date ATTEST: ~s~~!iif:r~ ~ :J17~~ Date Countersigned: CITY OF CLEARWATER, FLORIDA ~.~ Fr. V. Hibbard ' ayor-Councilmember By: d.l William B. Home, n City Manager Attest: Bry . Ruff Assistant City Attorney p_,,-\\!. _ -:E )L.Q,. ~deau . City .eJ.~k .. :~ ' ! EXHIBIT" A" Provider's Program Budget Category Amount Other Funds Other Funding Total Requested Sources Proposed Committed Infill Home $388,902 $500,000 Private Lenders $288,902 Development Total $388,902 $500,000 $888,902 i en )> .... .... ;;: ~ ;;: ... .... c z 0 g ~ ~ c: ~ ~ CD ., CD ~ !l ::J :!, 0- ::J CD CD 2 c: 3 0 K iii CD !!l. ::J' ~ 3 ". 0 3 ~ ". !II ~ !II ". If !II <nO> 0 ~t 0 ii' ~g' a :; 0 "f n ..... 0 ~ " 3 CD .. ~ ., ~g' .. Glo ., 0-- 0 ~ I ~ ~Gl 02 9. iii ~ ;;: I ~_jlt" CD , ... a- , 1'< :.: 01 ... fC~6 ::J '.: ~ ~ , i i It 0 ~ ii' f~lD 0 ". ~ g' [ " 0 ~ iO " .. III~ ~ilz 0 !!l i ~ t : ;i zl~ n ~I: 5' ... 0 ii'~ ~ a ;u 01 n !!. 0 ~"i 0 it = & iill l;l 0 0 II'I~ R .." I 0 fJ.~ 0 Iii ;!; 0 i iI. i :J: ;: : 0 ~ a- 9. :J: 0 ~Jli c: .. CD 0 ::r 0 i5: 6' 3 ~ ir R- ~ ~ z ~ f'!I m o 00 o :J :;, 0 III 3 o _. jio III 0 "'Cl!~ a)>~o ca n 0 -. iil eo "0 .:< 303 0 :;, ... ~:!!go ....1>>.._ ~:;llOm .:< Iii" ::I: ~ ~~g ~ -g ..d!. ~ ::I.Ill:J !:cc NO OCD 5:"0 . III ii CD :J ..