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RELEASE OF LAND USE RESTRICTION AGREEMENT HOME INVESTMENT PARTNERSHIPS PROGAMPrepared by: Terry Malcolm -Smith City of Clearwater Dept. of Economic Development & Housing - P.O. Box 4748 Clearwater, FL 33758-4748 CITY OF CLEARWATER ECONOMIC DEVELOPMENT & HOUSING DEPARTMENT RELEASE OF LAND USE RESTRICTION AGREEMENT HOME INVESTMENT PARTNERSHIPS PROGRAM The City of Clearwater does hereby release the property hereinafter described from a certain Land Use Restriction Agreement Home Investment Partnerships Program filed by The City of Clearwater in Official Records Book 20818, Page 886, in the office of the Clerk of the Circuit Court of Pinellas County, Florida, on the 23rd day of December, 2019 on said property and we hereby declare said Land Use Restriction Agreement fully satisfied. Said property described on said Land Use Restriction Agreement as follows: Lot 3, Block B, Palm Park (Addition to Clearwater), according to the map or plat thereof, as recorded in Plat Book 4, Page 86, of the Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part. Commonly known as: 1207 Blanche B. Littlejohn Trail, Clearwater, Florida 33755 IN WITNESS WHEREOF, the City Clearwater in its corporate capacity, has caused this Satisfaction of Mortgage Agreement to be executed this /U day ofLA 1(7 , 2020 by its City Manager, City Clerk and Assistant City Attorney, and the seal of the City to be here affixed. Approved as to form: Laura Mahony, Senior Assistant Ci 7jr'ttorney STATE OF FLORIDA] COUNTY OF PINELLAS] CITY O���� FCLEARWATER, FLORIDA By: L.�...1 C4,4%.3 _ 4,146.44A—M. William B. Horne II, City Manager Rosemarie Call, City Clerk The foregoinginstrument was acknowledged before me by means of C'physical presence or 0 online notarization, this -7/101'1)-6)-0 (date) by William B. Horne II, the City Manager of the City of Clearwater, who is personally known to me or who has produced (type of identification) as identification. WITNESS my hand and official seal this l DT1A day of -3-VM--1 , 2020 My commission expires: (0) b\ ►' Scott Burrows _ COMMISSION # GG261179 EXPIRES: October 1, 2022 Bonded Thru Aaron Notary Notary Public • Prepared by and Return to: Terry Malcolm -Smith City of Clearwater Economic Development & Housing Department P.O. Box 4748 Clearwater, FL 33758-4748 1207 Blanc Littlejohn Trail, Clearwater, FL KEN BURKE, CLERK OF COURT AND COMPTROLLER PINELLAS COUNTY, FL INST# 2019407698 12/23/2019 11:49 AM OFF REC BK: 20818 PG: 886-892 DocType:AGM RECORDING: $61.00 CITY OF CLEARWATER ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT LAND USE RESTRICTION AGREEMENT HOME INVESTMENT PARTNERSHIPS PROGRAM THIS DECLARATION, made this 20th day of December, 2019, between HABITAT FOR HUMANITY OF PINELLAS COUNTY, INC., a Florida not-for-profit corporation, its successors, assigns, and transferees of the project described below, whose mailing address is 13359 49th Street North, Clearwater, Florida 33762, and hereinafter called ("Borrower") and the City of Clearwater, Florida, municipal corporation organized and existing under the laws of the State of Florida hereinafter called ("City"). WHEREAS, the Borrower shall construct a single-family dwelling on certain real property located at 1207 Blanche B. Littlejohn Trail, Clearwater, Florida 33755 for the development of an affordable single-family unit for a low- and moderate -income homebuyer described herein and agrees with the City that the real property, which is subject to this executed Mortgage and Note and shall be subject to the restrictive covenants set forth herein; and WHEREAS, Borrower shall cause to be improved in accordance with the plans and specifications and any amendments thereto previously submitted by the Borrower to the City and which have been approved by the City; and WHEREAS, Borrower agrees that the restrictive covenants shall remain in full force and effect against the real property until the end of a Fifteen (15) -year affordability period. This Agreement shall be properly filed and recorded by the 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. IN CONSIDERATION of funds the City has provided to the Borrower for a loan to finance the construction including closing costs, and other related cost as associated with the project in the City of Clearwater, Pinellas County, Florida, described as: Legal Description attached as Exhibit A. This construction, or a portion thereof, which has the address of 1207 Blanche B. Littlejohn Trail, Clearwater, Florida 33755 (herein "Property Address"), and which is described in the mortgage between the City and the Borrower of even date herewith, the Borrower 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. Borrower covenants and agrees that in connection with the construction of the single-family home, the City should approve any transfer or sale of the subject property and borrower will comply, and will require any subsequent purchaser of the project to comply, with the following: Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 1 • 1207 Blanch Littlejohn Trail, Clearwater, FL 1. Covenants and Restrictions on Use of Funds. HOME Investment Partnerships Program allocations provided to this project will be used for construction of the real property plus closing costs. During the Period of Affordability as defined herein, the unit shall be sold to a homebuyer having annual income which does not exceed 80 percent of the median family income for the area, as determined and made available by the U.S. Department of Housing and Urban Development (HUD) with adjustments for smaller and larger families at the time of purchase of the home. If there is not a ratified sales contract with an eligible homebuyer for the housing unit within nine (9) months of the date of completion, the housing unit must be rented to an eligible tenant in accordance with 24 CFR §92.252. The home must be the principal residence of the homebuyer. The income of the persons who will occupy the unit shall be verified by the Borrower by obtaining third -party verification of current income and verification of assets. Source documentation evidencing annual income may include wage statements, interest statements, unemployment compensation statements, and other documentation approved by the City. In the event that neither of the above methods is suitable, the Borrower may use other methods acceptable to the City to verify income. Annual income for the purpose of this Agreement shall be as defined by HUD for the HOME Program. The value of the HOME -assisted unit shall not exceed 95 percent of the 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 HUD. The person or persons purchasing the single-family home shall have fee simple title to the property. (a) 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 from the date of this agreement. (b) Upon the sale of the housing unit to an eligible homebuyer, the Period of Affordability shall be enforced on the property (homebuyer) through a Land Use Restriction Agreement running with the land entered into with the homebuyer. (c) During the period of affordability, the single-family housing unit must be occupied by the original low- and moderate -income homebuyer. In the event that the homebuyer chooses to sell the property, the homebuyer must sell the property to another eligible low- and moderate -income buyer and who will use the property as its principal residence. If the original homebuyer sells, either voluntarily or involuntarily, during the affordability period, the homebuyer may receive a fair return on investment. (d) 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 Borrower. (e) 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 housing unit shall meet and maintain all applicable local codes, the International Property Maintenance Code, the Florida Building Code, ordinances, and zoning ordinances at the time of project completion. The HOME -assisted housing unit 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 24 CFR § 100.20, and must also meet the design and renovation requirements at 24 CFR § 100.205, which implements the Fair Housing Act. Design of house must meet the International Energy Conservation Code (formerly known as the Model Energy Code).; the City also highly encourages the use of ENERGY STAR® qualified products, including natural gas where Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 2 • available, in all developed housing. 1207 Blanch Littlejohn Trail, Clearwater, FL 3. Location of HOME -Assisted Unit. The location of the unit is as follows: 1207 Blanche B. Littlejohn Trail, Clearwater, Florida 33755. The Borrower agrees that there will be no material changes to the design of the project after initial commitment by the City without assurances provided by Borrower and approved by City that the proposed changes will not adversely affect the HOME -assisted unit or any provision of this Agreement. 4. No Discrimination. The Borrower shall not discriminate, as defined by Federal Statutes, on the basis of race, creed, color, sex, age, or national origin in the occupancy of the HOME -assisted unit 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 Borrower will follow the affirmative marketing procedures and requirements for the HOME Program to attract an eligible homebuyer 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 Borrower will take reasonable measures to minimize displacement of persons as a result of the project being assisted with HOME funds in accordance with the requirements of the Uniform Relocation Assistance and Real Properties Acquisition Act. The borrower shall be responsible for any relocation expenses incurred without the City of Clearwater approval. 8. Labor. The Borrower 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 Borrower shall be responsible for maintaining that the HOME -assisted unit meets the requirements listed in the Lead -Based Paint Poisoning Prevention Act and 24 CFR Part 35. 10. No Conflicts with Other Documents. The Borrower 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 Borrower shall request funding for the HOME -assisted project from the City of Clearwater on an as -needed basis. 12. Records. The Borrower 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 Borrower shall maintain accurate information regarding the occupancy 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 Borrower shall maintain documentation substantiating compliance with affirmative marketing requirements. These Project records shall be made Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 3 • 1207 Blanch Littlejohn Trail, Clearwater, FL 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: (a) A description of the project assisted with HOME funds, including the location and form of HOME assistance. (b) The source and application of funds for each project, including supporting documentation in accordance with 2 CFR §200.302 and §200.303. (c) Records demonstrating the homeownership project meets the minimum per-unit subsidy in accordance with 24 CFR §92.205(c) and §92.250(a) and subsidy guidelines adopted in accordance with 24 CFR §92.250(b). (d) Records demonstrating the homeownership project meets the property standards in accordance with 24 CFR §92.251 and the lead-based paint requirements in accordance with 24 CFR §92.355. (e) Records demonstrating the person or persons purchasing the HOME -assisted unit are income eligible in accordance with 24 CFR §92.203. (f) Records demonstrating the purchase price or estimated value after construction for the homeownership project does not exceed 95% of the median purchase price for the area in accordance with 24 CFR §92.254. (g) Records demonstrating the homeownership project meets the affordability requirements of 24 CFR §92.254 for the required period. (h) Records demonstrating compliance with the written agreements in accordance with 24 CFR §92.504. (i) Records demonstrating compliance with the applicable uniform administrative requirements in accordance with 24 CFR §92.505. (j) Records documenting required inspections, monitoring reviews and audits, and the resolution of any findings or concerns. (k) Records documenting equal opportunity and fair housing requirements in accordance with 24 CFR Part 100 Fair Housing Act and certifications according to 24 CFR §91.225, §91.325, and §91.425 (certifications). (1) (m) Records documenting HOME -related financial activities. Records documenting affirmative marketing and Minority Business Enterprise/Woman Business Enterprise (MBE/WBE) activities. 13. Monitoring. The Borrower shall permit the City or its designee to inspect all records pertaining to the unit 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 Borrower shall provide the required Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 4 • 1207 Blanche Littlejohn Trail, Clearwater, FL documentation monthly, until the HOME -assisted unit is sold. 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 Borrower 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. 15. Enforcement of Terms. The benefits of this Agreement shall inure to, and may be enforced by, the City for the Period of Affordability. 16. Conflict of Interest. The Borrower warrants that no person 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. 17. Conditions of Religious Organizations. HOME funds may be used for rehabilitation or construction of housing that is owned by primarily religious organizations and to assist primarily religious organizations in acquiring housing provided the agreement includes the conditions prescribed in 24 CFR §5.109 for the use of HOME funds by religious organizations. 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 and provisions of 2 CFR Part 200 for government entities, or applicable provisions of 2 CFR Part 200 Subpart E for non-profit 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 Borrower 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 Borrower of its obligations under this Agreement, it being recognized that the beneficiaries of Borrower obligations hereunder cannot be adequately compensated by monetary damages in the event of Borrower's default. (b) To cause the Borrower to pay to the City an amount equal to all HOME funds loaned to Borrower, less any principal balance previously repaid by Borrower, 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 Borrower hereunder shall constitute a default under the Mortgage and Note of even date herewith, which will enable the City thereunder, after notice and an opportunity to cure as therein provided, to accelerate the Borrower's loan and take such other actions as may be permitted under the terms of the Mortgage. IN WITNESS WHEREOF: Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 5 • 1207 Blanche B. Littlejohn Trail, Clearwater, FL For: Habitat for Humanity of Pinellas County, Inc., a Florida not-for-profit corporation Michael Sutton Title: CEO STATE OF FLORIDA COUNTY OF PINELLAS WITNESSES (Two Required): (Type or print names under signature.) Nam . The foregoing instrument was acknowledged before me this Today oft,t3 &I , 20 /1 , by Michael Sutton, CEO, of Habitat for Humanity of Pinellas County, Inc., a Florida not-for-profit corporation, who is personally known to me or who has produced a driver's license as identification. My Commission expires: SAM ;!W PEO0Y PUWANO#SIONATR * Commission $ GG 31752$$ Expires October 20. 2023 Apt Bo dod Thu eudgetgowy bar(ou CITY OF CLEARWATER, FLORIDA By and through its CITY COUNCIL : BY ~ / 4 CreofNotaryP'ublk1v Charles H. Lane, Jr., Assistant Director Economic Development & Housing APPROVED AS TO FORM: By: Laura Mahony, Assistant City orney Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 6 • 1207 Blanche B. Littlejohn Trail, Clearwater, FL Exhibit A Legal Description Parcel Number: 10-29-15-56718-002-0030 Legal Description: Lot 3, Block B, Palm Park (Addition to Clearwater), according to the map or plat thereof, as recorded in Plat Book 4, Page 86, if the Public Records of Hillsborough County, Florida, of which the County of Pinellas was formerly a part. Habitat for Humanity of Pinellas County, Inc. 20th of December, 2019 HOME Investment Partnerships Land Use Restriction Agreement Page 7 CLEARWATER BRIGHT AND BEAUTIFUL BAY TO BEACH REQUEST FOR LEGAL SERVICES FORM TO: Laura Mahony FROM: Terry Malcolm -Smith Ext. fLo. 4036 AUTHORIZED BY: COPY TO: SUBJECT: DATE: Department Head Signature Pamela K. Akin, City Attorney w/o attachments Request for Legal Services Re: Release of Land Use Restriction Agreement July 8, 2020 Service Required: (Click on appropriate box) Review and comment on document ❑ Draft document ❑ Written opinion requested ❑ Advise ❑ 1. Brief factual background of the request or problem: The City provided a loan in the amount of $115,000 to Habitat for Humanity of Pinellas County to construct a single-family home at 1207 Blanche B. Littlejohn Trail. A Land Use Restriction Agreement was executed by Habitat. The LURA stipulates that after construction, the single-family unit must be sold to buyer with income at or below 80% of the area median income. According to Habitat, they were unable to meet this income requirement of the LURA. Both the City and Habitat agreed upon full repayment of the loan and release of loan documents. 2. Specific questions to be answered: Please review and approve the attached Release of Land Use Restriction Agreement as to form. Please forward for signatures s:\Forms\Legal services form 3. Identify prior legal assistance on this or a related matter and the name of the attorney who handled it: 4. List and/or attach (all supporting documentation, related materials and known authorities, i.e., statute, ordinance, resolution, administrative code, legal case, contract, lease letter, memorandum, prior legal opinion): LURA s:\Forms\Legal services form