LAND USE RESTRICTION AGREEMENT HOME INVESTMENT PARTNERSHIPS PROGRAM - 905 CARLTON ST #BPrepared by: Matthew J. Mytych, Esq.
Return to: Terry Malcolm -Smith
City of Clearwater
Economic Development & Housing
P.O. Box 4748
Clearwater, Florida 33758
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
LAND USE RESTRICTION AGREEMENT
HOME INVESTMENT PARTNERSHIPS PROGRAM
THIS LAND USE RESTRICTION AGREEMENT (this "Agreement") is made on August /5 ,
2024 , by and between CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INC., a Florida not-
for-profit corporation ("Borrower"), its successors, assigns an 1 transferees of the project described below,
whose mailing address is 608 N. Garden Avenue, CleE rwater, FL 33755 and THE CITY OF
CLEARWATER, FLORIDA, a Florida municipal corporatio i (the "City"), whose mailing address is P.O.
Box 4748, Clearwater, Florida 33758-4748.
WHEREAS, Borrower has acquired and intends to thvelop real property located at 905 Carlton
Street #B, Clearwater, FL 33755 (the "Property") for the development of single-family rental unit as
described herein (the "Project"), and agrees with the City that t le Property, which is subject to a subordinate
mortgage and note executed on even date with this Agreement, ;hall be subject to the restrictive covenants set
forth herein; and
WHEREAS, Borrower agrees that the restrictive covens nts shall remain in full force and effect against
the Property until the end of a thirty (30) year affordability peri xd; and
WHEREAS, this Agreement shall be properly filed ar d 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.
NOW, THEREFORE, in consideration of funds the Cit has provided through the HOME Investment
Partnerships ("HOME") Program to the Borrower through a loan in the aggregate amount of One Hundred
Ninety -Two Thousand Three Hundred Eight Dollars and 90 /100 Cents ($192,308.90) (the "Loan") to
finance construction of the Project on the Property within the City of Clearwater, Pinellas County, Florida,
more particularly described in Exhibit "A" attached hereto, Borrower will comply, and will require any
subsequent purchaser of the Property to comply, with the following:
The Borrower acknowledges that this Agreement is necessary to comply with the affordability
requirements of the HOME Program as stated at 24 CFR Part 92, from which funds were obtained to finance
the Loan, and subpart B of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, 49 CFR §24.101, and therefore, Borrower covenants and agrees that in connection with the City's
financing of a portion of the construction costs of the Project, tl at the City shall have the right to approve any
transfer or sale of the Property prior to the expiration of the Affordability Period, all as more particularly set
forth herein.
1. Covenants and Restrictions on Use of Funds. HOM E Program allocations provided to the Project
through the Loan will be used for construction costs for the Project. During the Affordability Period (as
defined in Section 2), the unit in the Project will be set aside as a HOME -assisted unit for an individual or
family whose income do not exceed eighty percent (80%) of the Area Median Income ("AMI") as determined
by HUD (the "HOME Unit").
The HOME Unit shall be rented or held available for rental on a continuous basis to person or family who
shall have a verified annual income that does not exceed eighty percent (80%) of AMI at the time of initial
occupancy of the HOME Unit ("HOME Qualified Tenant"). The HOME Unit must have rent which is equal
to or less than thirty percent (30%) of annual incomes for households at eighty percent (80%) of AMI, adjusted
for family size, in accordance with program regulations for High HOME program rents, as stated in 24 CFR
Part 92 ("HOME Rents"). The calculation of HOME Rents include utilities; therefore, maximum HOME
Rents must be reduced if the tenant pays for some or all of the utilities. Maximum rent limits and allowances
for utilities are revised annually and are available from the City. Borrower shall establish initial HOME Rents
and the procedures for future rent increases based on rules and regulations established in 24 CFR § 92.252,
Rental Housing. If allowable HOME Rents increase, the Borrower may increase rent charged for HOME Unit
after giving appropriate notice and in accordance with the lease provisions.
The income of Qualified Tenant shall be verified by the City or a designated party agreed to by Borrower and
the City, by obtaining third -party verification of current income for the Qualified Tenant and verification of
assets. Source documentation evidencing annual income may include wage statements, interest statements,
and unemployment compensation statements, other documentation approved by the City. In the event that
neither of the above methods is suitable, Borrower may use other methods reasonably acceptable to the City
to verify income. Annual income for the purpose of this Agreement shall be as defined by the U.S. Department
of Housing and Urban Development for the HOME Program.
The income of the Qualified Tenant shall be recertified annually. A Qualified Tenant whose income exceeds
the maximum allowable AMI for a HOME Qualified Tenant, as applicable, cannot be asked to leave and shall
not cause a default under this Agreement. However, a Qualified Tenant whose income rises to a level above
the maximum allowable AMI for a HOME Qualified Tenant, as applicable, must pay a rent not less than thirty
percent (30%) of the Qualified Tenant's adjusted monthly income, as recertified annually.
All proceeds, program income and recaptured funds associated with the Project shall be returned to the City
of Clearwater within thirty (30) days.
2. Affordability Period. For the purposes of this Agreement, the "Affordability Period" shall
commence upon the date that the Project status is changed to "complete" in IDIS, HUD's project tracking
system, and terminate on the thirtieth (30th) anniversary thereafter. This Agreement shall remain in effect until
expiration of the Affordability Period. This completion date of the Project shall be memorialized in a
certificate of completion recorded in the Public Records of Pinel las County, Florida.
3. Property Standards. The HOME Unit shall meet and maintain all applicable local codes, the Florida
Building Code, ordinances, including but not limited to, zoning ordinances at the time of Project completion.
The HOME 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 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.
4. Location of HOME Investment Partnerships unit. The location of the HOME Unit is as follows:
905 Carlton Street #B, Clearwater, FL 33755 (Legal Description Attached as Exhibit "A"). Borrower agrees
that there will be no material changes to the HOME Unit after initial commitment by the City without
assurances provided by Borrower and approved by City that any proposed changes will not adversely affect
the HOME Unit or any provision of this Agreement.
5. No Discrimination. Borrower shall not discriminate, as defined by Federal Statutes, on the basis of
race, creed, color, sex, disability, age, familial status or national origin in the use or occupancy of the HOME
Unit or in connection with the employment or application for employment of persons for the operation and
management of the Project.
6. Affirmative Marketing Efforts. Borrower will follow the affirmative marketing procedures and
requirements for the HOME Program to attract an eligible tenant in the housing market area to the available
housing without regard to race, color, national origin, sex, religion, age, familial status or disability.
7. Environmental Reviews. The rental development proj pct must be assessed for environmental effects
in accordance with the provisions of the National Environmen tal Policy Act of 1969 and related authorities
listed in HUD's implementing regulations at 24 CFR parts 50 and 58.
8. Displacement, Relocation, and Acquisition. Borrower 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 F roperties Acquisition Act. Borrower shall be
responsible for any relocation expenses incurred without City approval.
9. Lead Based Paint. Borrower shall be responsible for maintaining that all Assisted Units meet the
requirements listed in the Lead Based Paint Poisoning Preventi pn Act and 24 CFR part 35.
10. No Conflicts with Other Documents. Borrower war -ants that it has not, and will not, execute any
other agreement with provisions contradictory to, or in opposi ion to, the provisions hereof, and that, in any
event, the requirements of this Agreement are paramount and cc ntrolling as to the rights and obligations herein
set forth and supersede any other requirements in conflict here,vith.
11. Requests for Disbursement of Funds. Borrower shal request funding for the Project from the City
of Clearwater in accordance with its application and approval fir such funds.
12. Records. Borrower shall retain all records pertaining to Project for a period of five (5) years after
audit and/or resolution of audit findings involving the Loan. 3orrower shall maintain accurate information
regarding the occupancy for the HOME 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. Borrower shall maintain
documentation substantiating compliance with Affirmative Marketing Requirements. These Project records
shall be made available to the City of Clearwater, U.S. Departm mt of Housing and Urban Development and/or
representatives of the Comptroller General of the United Sta:es 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 HOME Unit, including the location and form of HOME assistance.
2. The source and application of funds for each unit, inchtding supporting documentation in accordance
with 24 CFR § 85.20.
3. Records demonstrating that each unit meets the property standards of the lead-based paint
requirements.
4. Records demonstrating that the Qualified Tenant is income eligible.
5. Records demonstrating that the HOME Unit meets the affordability requirements set forth herein.
6. Records documenting required inspections, monitoring reviews and audit, and the resolution of any
findings or concerns.
7. Records documenting equal opportunity and fair hous ng records.
8. Records documenting all HOME related financial activities.
9. Records documenting affirmative marketing and MBE 'WBE activities.
13. Monitoring. Borrower shall permit the City or its de;ignee to inspect all records pertaining to the
HOME Unit upon reasonable notice and within normal work ing hours and shall submit to the City such
documentation as required by the City to document complian.;e with this Agreement and HOME Program
rules.
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, Borrower and its successors and assigns and all
subsequent owners of the Project or any interest therein, and to the City for the Affordability Period 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 Affordability Period, whether or not the City shal continue to be the holder of the Subordinate
Mortgage, whether or not the Project loan may be paid in full, and whether or not any loans issued for the
purpose of providing funds for the Project are outstanding.
16. Conflict of Interest. Borrower warrants that no person covered who exercises or exercised any
functions or responsibilities with respect to HOME Program activities or who is in the position to participate
in decisions or gain inside information may obtain a financir:.l interest or benefit from a HOME Program
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 Pro ;ram funds may not be used for rehabilitation
or construction of housing that is owned by primarily religiou , organizations or to assist primarily religious
organizations in acquiring housing.
18. Severability. The invalidity of any clause, part or pr vision of this Agreement shall not affect the
validity of the remaining portion thereof.
19. Notice. All notices provided for herein shall be sent by certified or registered return receipt requested
mail, or by a nationally recognized overnight courier, addressed to the appropriate party at the address
designated for such party in the preamble to this Agreement, or such other address as the party who is to
receive such notice may designate in writing. Notice by mail hall be completed by depositing the same in a
letterbox or other means provided for the posting of mail add •essed to the party with the proper amount of
postage affixed thereto. Actual receipt of notice shall not be required to effect notice hereunder. Notices sent
by a nationally recognized overnight courier service shall be deemed delivered the next business day after
deposit with such courier unless the records of such courier indicate a later delivery in which case the notice
shall be deemed received on the date of delivery.
20. Defaults and Remedies. If Borrower shall fail to of serve 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 to after providing written notice of default and thirty (30) days to cure, or, if such default cannot be
cured with reasonable efforts within 30 days, for such addi ional time as may be reasonably necessary,
provided Borrower commences the cure within the 30 -day period and thereafter proceeds diligently to
complete the cure, in addition to all other remedies provided by law or in equity:
A. To compel specific performance by Borrower of its obligations under this Agreement, it being
recognized that the beneficiaries of Borrower obligation s hereunder cannot be adequately compensated
by monetary damages in the event of Borrower's defau't.
B. To cause 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 Unit is knowingly, or by
Borrower's gross negligence, rented to persons who do not comply with the requirements for such unit.
C. In addition, a default by Borrower hereunder shall con ;titute a default under the HOME Investment
Partnerships Agreement, Subordinate Mortgage, Mortgage Note (all of even date herewith), which will
enable the City, after notice and an opportunity to cure as therein provided, to accelerate Borrower's
loan and take such other actions as may be permitted under the terms of the aforementioned documents.
(CITY SIGNATURE PAGE)
IN WITNESS WHEREOF, this Agreement has been duly signed and sealed by the City and Borrower on or
as of the day and year first above written.
Approved as to Form:
City of Clearwater, Florida,
a Flor da municipal corporation.
Je er _ rrier
City Manager
Date: 0115 A C ,91 LI
Attest:
ccat4- 0414
Matthew J. Mytych, Esq. Roser carie Call
Assistant City Attorney City ('lerk
Date: Sq j Siok Date: e'/�j /,-A � ` l
(BORROWER SIGNATURE PAGE)
Witness Signature
Print Name
Address
Witness Signature
Print Name
Address
STATE OF FLORIDA )
COUNTY OF PINELLAS )
Clearwater Neighborhood Housing Services, Inc.,
a Florida not-for-profit corporation.
By:
Name: Jeffrey Jones
Title: Chairman
Date:
The foregoing instrument was acknowledged before me by mez ns physical presence or ❑ online notarization,
this day of , 2024 by Jeffrey Jones, as Chairman of Clearwater Neighborhood
Housing Services, Inc., who 7 is/are personally known to me c r who has/have produced a driver's license as
identification.
Notary Public, State c f Florida
(NOTARIAL SEAL) Name of Notary:
My Commission Exp res:
My Commission No.:
EXHIBIT "A"
Legal Description of Pr Jperty
Lot 14, Block 3, C.E. Jackson's Subdivision, according to the reap or plat thereof, as recorded in Plat Book
2, Page 96 of the Public Records of Hillsborough County, Flor da, of which Pinellas County was formerly a
part, LESS road.
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
CONSTRUCTION LOAN AGREEMENT
This Construction Loan Agreement (this "Agreement") is entered into on August 19, 2024, by and between
THE CITY OF CLEARWATER, FLORIDA, a Florida municipal corporation (herein, "Lender" or the
"City"), whose address is P.O. Box 4748 Clearwater, Florida 33758-4748 and CLEARWATER
NEIGHBORHOOD HOUSING SERVICES, INC., a Florida not-for-profit corporation (the "Borrower"
and collectively with the City the "Parties"), whose address is 608 N Garden Avenue, Clearwater, FL 33755,
and is made in reference to the following facts:
A. Simultaneously with the execution and delivery of this Agreement, the City has made a loan to the
Borrower in the principal amount of One Hundred Ninetv-Two Thousand Three Hundred Eight
Dollars and 90/100 Cents ($192,308.90) (the "Loan"), or as much thereof as may from time to time
be advanced by the City to the Borrower, evidenced by a note (the "Note") in favor of the City and
subordinate Mortgage (the "Mortgage") encumbering real property located in Pinellas County, Florida,
more particularly described as follows (the "Property"):
Parcel Number: 10-29-15-43596-003-0140
Legal Description: Lot 14, Block 3, C.E. Jackson's Subdivision, according to the map or plat thereof,
as recorded in Plat Book 2, Page 96 of the Public Records of Hillsborough County, Florida, of which
Pinellas County was formerly a part, Less road.
A.K.A. 905 Carlton Street #B, Clearwater, FL 33755
B. The Borrower desires to make improvements on the Property in accordance with plans and
specifications submitted to the City and requires advances from the City from time to time during the
period of construction, in order to construct said improvements.
C. The City is agreeable to making the advances set forth in Paragraph A above and Exhibit "A" New
Construction Draw Schedule attached hereto as long as such advances are in strict compliance with the
terms and conditions of this Agreement and secured by the lien of the Mortgage, and that construction
is completed no later than eighteen (18) months from the date hereof (the "Construction Date").
NOW THEREFORE, in consideration of the statements as set forth above and the agreements herein made,
and the agreements and covenants contained in the Note and Mortgage executed on even date herewith, the
Borrower and the City do hereby make the agreements set forth herein.
ARTICLE I. REPRESENTATIONS AND WARRANTIES OF BORROWER
Borrower represents and warrants to the City as follows:
(a) Existence. The Borrower, as a Florida not-for-profit corporation, is duly authorized, validly
existing and in good standing under the laws of the state of its incorporation and the laws of the
state in which the Property is located, and its Chairman is duly authorized and has all necessary
corporate power to enter into this Agreement, the Note, and Mortgage .
(b) No Default. The Borrower is not in default and has not breached in any material respect any
agreement or instrument to which it is a party or by which it may be bound, and the execution and
Clearwater Neighborhood Housing Services, Inc. August 19, 2024
HOME Investment Partnerships (HOME) Construction Loan Agreement
delivery of this Agreement, the Note, and Mortgage, and the consummation of the other
transactions contemplated herein do not conflict with or result in (i) a violation of any regulation,
order, writ, judgment, injunction or decree of any court or governmental or municipal
instrumentality or (ii) the breach of or default under any agreement or instrument to which the
Borrower is a party or by which it may be bound.
(c) Commencement of Work. There has been commencement of operation on the Property incident
to the improvements. Activities have occurred prior to the date hereof which could result in
mechanic's lien or similar lien being filed against the Property which would be superior to the lien
of the Mortgage. A Notice of Commencement has been filed in the Public Records of Pinellas
County recorded at O.R. Book 22875, Page 968.
(d) Compliance with Laws. The Borrower has obtained all necessary governmental approvals
necessary to commence construction of the improvements.
(e) Utilities, Land Use and Zoning. Sewer, water, and all other necessary utilities are available to
serve the Property and the improvements in sufficient quality for their intended use, and the current
land use and zoning classifications of the Property and any covenants and restrictions affecting the
Property may permit the construction and intended use of the improvements without the necessity
of obtaining further approvals, authorizations, waivers, consents, exceptions, or variances.
(f) Absence of Proceedings and Actions. There are no actions, suits or proceedings pending or, to
the knowledge of the Borrower, threatened against or affecting the Borrower or the Property, or
any Guarantors of the loans, if any.
(g) Financial Statements. All financial statements of the Borrower and the Guarantors, if any, of the
Loan submitted to the City are true and correct as of the date of this Agreement.
ARTICLE II. COVENANTS OF BORROWER
The Borrower covenants to the City that:
(a) Plans and Specifications. The Borrower shall cause to be constructed certain improvements on
the Property 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. The
plans and specifications, and any amendments thereto, as so approved by the City, shall remain the
property of the City.
(b) Development Work Criteria. Development of the Property and construction of the improvements
shall be in accordance with the plans and specifications, all engineering reports and studies, soil
reports and other similar matters which have heretofore been submitted by the Borrower to the City
for the basis of the Loan, and in compliance with all restrictions, conditions, regulations, and
agencies having control over or jurisdiction over or an interest in the Property and the
improvements. No deviation shall be made in the plans and specifications without the prior written
consent of the City and, to the extent applicable, no change shall be made in any contracts the
Borrower has entered into with respect to construction of the improvements without the prior
written consent of the City.
(c) Commencement and Continuity of Work. Development of the Property and construction of the
improvements shall commence within ninety (90) days from the date of this Agreement and shall
be carried on diligently and without interruption or delay until completed and the same shall be
constructed in a good and workmanlike manner, and in accordance with the plans and specifications
referred to above. Immediately after the recordation of the Mortgage, the Borrower shall file a
Notice of Commencement and post a certified copy thereof on the Property in accordance with
Florida law.
(d) Use of Proceeds and Deficiency in Loan Amount. The Borrower will use the proceeds of the
Loan only for the payment of costs directly associated with the construction of the improvements
and shall not divert such funds for any other purpose. If it appears the construction costs of the
improvements will exceed the net amount available from the Loan, the City, at its discretion, may
require the Borrower to deposit, and the Borrower shall deposit with the City within ten (10) days
after receipt of notice of sufficient sums, which together with a net amount remaining available for
disbursement that will be sufficient to pay all construction and related costs of completing the
improvements in accordance with the plans and specifications. The judgment and determination
of the City as to any such deficiency shall be final and conclusive.
(e) Liens. The Borrower will have any Mechanics' Liens, or other encumbrances which may be filed
against the Property, released or bonded off within ten (10) days of the date the Borrower receives
notice thereof.
(f) Access to Books and Records. The Borrower will permit the City, or its agents, to have at all
reasonable times, unrestricted access to its records, accounting books, contracts, subcontracts, bills
and statements, including any supporting or related vouchers or other instruments, related in any
manner, to the development and construction of the improvements, and the City, or its agents, shall
have the right to copy the same.
(g) Financial Statements. During the time period encompassing development of the Property and
construction of the improvements, or until the Completion Date, whichever occurs first, the City
reserves the right at any time to require updated financial statements from the Borrower and any
Guarantor, if any. The Borrower will permit the City, through any means deemed appropriate by
the City, to verify the correctness of any such updated financial statements.
(h) Delivery of Materials to Property. The Borrower will cause all materials, supplies, and goods to
be incorporated as part of the improvements to be delivered to the Property free and clear of all
liens and encumbrances so that no other party shall have an interest therein, whether superior or
inferior to the lien of the Mortgage.
(i)
Compliance with Mechanics' Lien Law. The Borrower and its general contractor and Agent will
comply in all respects whatsoever with the Florida Mechanics Lien Law as the same may from time
to time exist, and the City shall not be obligated to disburse any funds to the Borrower if, in the
opinion of the City or its counsel, such disbursement would result in a violation of such law.
(j) Access to the Property. The Borrower will permit the City and its agents, at all reasonable times,
to have the right of entry and free access to the Property and the right to inspect the Property and
all work completed, labor performed, and materials furnished thereon or thereabouts.
(k) Services to Benefit the City. INSPECTIONS AND OTHER SERVICES RENDERED BY OR
ON BEHALF OF THE CITY AND WHETHER OR NOT PAID FOR BY THE BORROWER
SHALL BE RENDERED SOLELY FOR THE PROTECTION AND BENEFIT OF THE CITY,
AND THE BORROWER SHALL NOT BE ENTITLED TO CLAIM ANY LOSS OR DAMAGE
AGAINST THE CITY OR ITS AGENTS OR EMPLOYEES FOR FAILURE TO PROPERLY
DISCHARGE THEIR DUTIES TO THE CITY.
(1) The City's Right to Approve. The City shall have the right to approve all contracts, subcontracts,
purchase orders, or other similar agreements to be entered into by the Borrower with respect to any
portion of the construction of the improvements or any materials, supplies, or labor to be rendered
in connection therewith.
(m) Signage. The Borrower agrees that the City may erect a sign at the construction site in a
conspicuous location indicating that the financing for the project is provided by the City of
Clearwater.
(n) Joinder by Contractor. If the Borrower is employing a General Contractor and/or Agent with
respect to the construction of the improvements, the Borrower will require such Contractor and/or
Agent to join in the execution hereof, and, in the event of a conflict between the terms and
conditions of any such contract and this Agreement, the terms and conditions of this Agreement
shall govern and control.
(o) Further Assurance. The Borrower will, at the City's request, make, do, execute, and deliver to
the City and, where appropriate, shall cause to be recorded or filed at the Borrower's expense any
and all further acts, mortgages, documents, and assurances as may be reasonably necessary to
effectuate, complete, and confirm the transactions sought to be consummated hereunder.
(p)
(q)
(r)
Compliance with Note and Mortgage. The Borrower will comply with and abide by all the terms,
conditions, covenants, agreements, representations and warranties contained in the Note and
Mortgage, each of which documents are incorporated herein by this reference thereto. In the event
of a conflict between this Agreement and the Note or Mortgage, the terms and conditions of this
Agreement shall govern and control.
Disputes Between Borrower and the City. In the event any dispute arises between the Borrower
and the City with respect to the construction or meaning of the plans and specifications, the same
shall, at the option of the City, be decided by a competent architect to be selected by the City, but
may be paid for by the Borrower. The decision of such architect or government representative, as
the case may be, shall be conclusive and binding upon the Parties hereto.
Disputes Between Borrower and Contractor and/or Agent. In the event a dispute arises between
the Borrower and Contractor and/or Agent, and the Borrower desires that future disbursements to
Contractor and/or Agent from the construction fund be suspended, the Borrower shall advise the
City in writing of the facts giving rise to the dispute and shall request in writing that disbursements
to the Contractor and/or Agent be suspended. The City shall withhold any disbursements due until
the City receives written instructions signed by the Borrower and the Contractor and/or Agent.
ARTICLE III. DISBURSEMENT OF FUNDS
Disbursement Schedule. Upon satisfaction of all conditions required and specified in the Disbursement
Schedule set forth by Borrower, the City shall disburse funds to the Borrower as set forth in the attached
Draw Schedule — Exhibit "A".
(a) Method of Disbursement. The City, at its option, may disburse the loan funds to or for the
Borrower, the Contractor, and/or Agent for the Borrower. Such election shall not prevent the City
from making subsequent disbursements in a different manner or through a different party.
(b) Disbursement Procedures. Requests for loan disbursements shall be submitted by the Borrower
according to a Disbursement Authorization, which by this reference is incorporated herein and
made a part hereof (the "Disbursement Authorization"). Said authorization shall also serve as the
Borrower's written authorization to the City of where and to whom the disbursements are to be
made and the Parties authorized to request such disbursements.
(c) Disbursement Obligation of the City. Nothing contained in this Agreement, the Note, or
Mortgage shall impose upon the City any obligation to see to the proper application of any
disbursements made pursuant to this Loan, and the sole obligation of the City shall be to disburse
funds as set forth herein, provided there exists no default under this Agreement, the Note, and
Mortgage.
ARTICLE IV. PARTIAL RELEASES
Provided there is no default under terms and conditions of the Commitment Letter, the Land Use Restriction
Agreement (the "LURA"), the HOME Investment Partnerships Agreement, the Note, the Mortgage (all
executed on even date herewith), or this Agreement (collectively the "Loan Documents"), and provided
further that the Loan Commitment contemplates partial releases of the Property from the lien of the
Mortgage, partial releases shall be granted upon the terms and conditions set forth, if applicable.
ARTICLE V. EVENTS OF DEFAULT
The happening of any one or more of the following events shall constitute a default under this Agreement,
and the other Loan Documents:
(a) Breach of Condition. The Borrower's violation or breach of any term, condition, covenant,
representation or warranty contained in this Agreement, the Commitment Letter, the LURA, the
Home Investment Partnerships Agreement, Note, or Mortgage, or other instruments executed in
connection herewith, or if the improvements are not completed on or before the Completion Date
set forth in this Agreement, or the existence of a material misrepresentation of a fact contained in
the documents submitted in support of the Loan.
(b) Transfer of Property. The sale, assignment, pledge, transfer, hypothecation, or other disposition
of any proprietary or beneficial interest in the Borrower or the Property by the Borrower without
the prior written consent of the City.
(c) Impairment of the Property. The occurrence of any condition or situation which, in the sole
determination of the City, constitutes a danger to or impairment of the Property or repayment of
the Loan.
ARTICLE VL THE CITY'S REMEDIES
Upon the occurrence of any event of default hereunder or under the Loan Documents, the City shall provide
written notice of the default to the Borrower and provide the Borrower thirty (30) days to cure. Upon
providing written notice of a default, the City shall have the absolute right to refuse to disburse any funds
hereunder unless such default is cured within the thirty (30) day period. Upon a failure to cure a default,
the City shall have the absolute right at its option and election and in its sole discretion to:
(a) Possession. Take immediate possession of the Property as well as all other security for the Loan
as is necessary to fully complete the improvements as required hereunder and to do everything in
its sole judgment to fulfill the obligation of the Borrower hereunder.
(b) Exercise. Exercise any of the rights, privileges, or remedies available to the City under the LURA,
the HOME Investment Partnerships Agreement, Note or Mortgage, or as otherwise may be
permitted by applicable law.
(c) Power of Completion. In the event of the death of the Contractor and/or Agent, or in the event of
the bankruptcy of the Contractor and/or Agent, or in the event of the general assignment to creditors
by the Borrower or Contractor and/or Agent during the period of construction of said building and
before completion thereof, or upon any other occasion which might result in cessation of work, the
City shall have full power to take charge of and complete the construction and make disbursements
against the Loan and for the benefit of the Borrower, but shall not in any way be obligated to do
so.
(d) Acceleration. Accelerate the maturity of the Note and Mortgage and demand payment of the
principal sums due thereunder, advances, costs and attorney's fees, whether incurred at the trial or
appellate level, and enforce collection of such payment by foreclosure of the Mortgage or other
appropriate action in a court of competent jurisdiction.
The remedies and rights of the City hereunder and under the other Loan Documents shall be cumulative
and not mutually exclusive. The City may resort to any one or more or all the remedies, but not to the
exclusion of any other remedy. No party, whether contractor, materialman, subcontractor, or supplier, shall
have any interest in loan funds withheld because of default, and shall have no right to garnish, require or
compel payment thereof to be applied towards discharge or satisfaction of any claim of lien which such
party may have for work performed or materials supplied for the construction of the improvements.
ARTICLE VII. THE CITY'S LIABILITIES
(a) The Escrow Account. The Borrower approves the deposit of the construction funds in an escrow
account at Somers Title Company and releases the City from all loss resulting from the handling
of said funds by the Borrower in the usual course of business. The Borrower agrees the holding,
application, and disbursement of said construction funds delivered by the Borrower to the City shall
be for the account of the Borrower; however, it is expressly understood by the Parties that the
holding, application, and disbursement of said construction funds is for the protection of all Parties.
(b) To Third Persons. This Agreement shall not be construed to make the City liable to materialmen,
contractors, craftsmen, laborers, or other for goods or services delivered by them in or upon said
premises, or for debt or claims accruing to any such parties against the Borrower.
(c) INSPECTION SERVICES. IT IS EXPRESSLY AGREED THAT ALL INSPECTION AND
OTHER SERVICES RENDERED BY THE CITY SHALL BE RENDERED SOLELY FOR THE
PROTECTION AND BENEFIT OF THE CITY, AND THE BORROWER SHALL NOT BE
ENTITLED TO CLAIM ANY LOSS OR DAMAGE AGAINST THE CITY. THE CITY SHALL
NOT BE LIABLE FOR THE FAILURE OF ANY DEALER, CONTRACTOR, CRAFTSMAN
OR LABORER TO DELIVER THE GOODS OR PERFORM THE SERVICES TO BE
DELIVERED OR PERFORMED BY THEM.
(d) To the Borrower. The Borrower has accepted, and hereby accepts, the full responsibility for the
selection of his own contractor and subcontractors and all materials, supplies and equipment to be
used in the construction, and THE CITY ASSUMES NO RESPONSIBILITY FOR THE
COMPLETION OF SAID BUILDING OR BUILDINGS, ACCORDING TO THE PLANS AND
SPECIFICATIONS AND FOR THE CONTRACT PRICE. The Borrower has further accepted,
and hereby accepts full responsibility for compliance with the Florida Mechanics' Lien Law and
hereby relieves the City from any and all liability thereunder of any nature whatsoever. Anything
herein contained to the contrary notwithstanding, there shall be no obligation upon the City to make
any additional disbursements hereunder, if at the time of the request for such disbursements the
Borrower is in default or has failed to perform any provision of this Agreement or of the other Loan
Documents.
ARTICLE VIII. MISCELLANEOUS
(a) Notice. All notices provided for herein shall be sent by certified or registered return receipt
requested mail, or by a nationally recognized overnight courier, addressed to the appropriate party
at the address designated for such party in the preamble to this Agreement, or such other address
as the party who is to receive such notice may designate in writing. Notice by mail shall be
completed by depositing the same in a letterbox or other means provided for the posting of mail
addressed to the party with the proper amount of postage affixed thereto. Actual receipt of notice
shall not be required to effect notice hereunder. Notices sent by a nationally recognized overnight
courier service shall be deemed delivered the next business day after deposit with such courier
unless the records of such courier indicate a later delivery in which case the notice shall be deemed
received on the date of delivery.
(b) Governing Law and Venue. This Agreement and other Loan Documents shall be governed and
construed in accordance with the laws of the State of Florida and the exclusive venue for any
litigation arising out of these documents shall be in Pinellas County, Florida.
(c) Modification and Waiver. No provision of this Agreement, the Note, or the Mortgage shall be
amended, waived, or modified except by an instrument in writing signed by the Parties against
whom such amendment, waiver, or modification is sought to be enforced.
(d) Severability. The inapplicability or unenforceability of any provision of this Agreement, the Note,
or Mortgage shall not limit or impair the operation or continued validity of any other provision of
this Agreement, the Note, and Mortgage.
(e) Counterparts. This Agreement may be executed in any number of counterparts, each of which,
when executed and delivered, shall be an original, and such counterparts together constitute one
and the same instrument.
(f) Assignability. The Borrower shall not assign this Agreement, or any part of any advance to be
made hereunder, or convey, encumber, mortgage, lease, in whole or in part, any portion of the
Property without the prior written consent of the City. The rights of the City under this Agreement
are assignable by the City, in whole or in part, without the consent of the Borrower. This
Agreement is binding upon the representatives, successors and permitted assigns of the Borrower
and the City.
(g)
Waiver of Defaults. Waiver by the City of any breach or default by the Borrower under the terms
of the Note, Mortgage, or this Agreement shall not be deemed to, nor shall the same constitute a
waiver of, any subsequent breach or default on the part of the Borrower.
(h) Expenses. The Borrower shall pay all costs and expenses required to satisfy the condition of this
Agreement or incidental to the Loan, including, without limitation, all taxes, insurance premiums,
recording expenses, stamp taxes, all brokerage fees, appraisal fees, survey costs, and title insurance
costs.
(i)
Beneficiaries. This Agreement is an agreement only by and between the Borrower and the City
and for their benefit and the benefit of their successors and assigns permitted by this Agreement.
No other person or party, including any contractor that assents hereto, shall be a beneficiary hereof
or have any rights hereunder, and no rights are conferred by this Agreement upon any other person
or party, whether or not their name may be used or otherwise identified in this Agreement, or in the
assent of contractor below.
(j) Attorney's Fees. Should it become necessary for the City to engage the services of an attorney
due to the failure on the part of the Borrower to promptly and fully perform, comply, and/or abide
by each and every stipulation, agreement, condition and covenant of this Agreement or any related
loan document, the Borrower agrees to pay any and all of the City's attorney fees. The term
"attorney's fees" as used in this Agreement includes any and all legal fees of whatever nature,
including, but not limited to, fees resulting from any appeal of any involuntary order, final
judgment, or any other appellate proceedings arising out of any litigation.
[The remainder of this page intentionally left blank]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly
authorized officials on the date and year first above indicated.
By:
STATE OF FLORIDA
COUNTY OF PINELLAS
CLEARWATER NEIGHBORHOOD
HOUSING SERVICES, INC., a Florida not-for-
profit corporation.
Jeffrey Jones, Chairman
Date:
The foregoing instrument was acknowledged before me by means ❑ physical presence or ❑ online notarization,
this _ day of , 2024 by Jeffrey Jones, as Chairman of Clearwater Neighborhood Housing
Services, Inc., who ❑ is/are personally known to me or ❑ who has/have produced a driver's license as
identification.
Notary Public, State of Florida
(NOTARIAL SEAL) Name of Notary:
My Commission Expires:
My Commission No.
CITY OF CLEARWATER, FLORIDA,
a Florida municipal corporation.
By: JenitrPer Pdfrrier
Title: City Man ger
Date: /..5/ Oji t/
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me by means physical presence or ❑ online notarization,
this NS day of AV 10k , 2024 by Jennifer Poirrier as City Manager of the City of Clearwater, Florida
who .t< is/are personally known to me or ❑ who has/have produced a driver's license as identification.
(NOTARIAL SEAL)
CourtneyM.
Comm.: HH 8 361 h
=�il�'' = Expires: April 17, 2027
""kid :::,0 ` Notary Public - State of Florio
Notary Public, State of Florida
Name of Notary: Ctito �b
tuafk-
My Commission Expires: Lk10
My Commission No.: R 1J, 1'L\
Exhibit "A"
New Construction Draw Schedule
Borrower: Clearwater Neighborhood Housing Services, Inc. Contractor: A r r o w Homes Inc
Address: 905 Carlton Street #B, Clearwater, FL 33755 Funding Amount: $192,308.90
First Draw: 1. Permit
20% 2. Site prepared, filled, and compacted, if necessary.
3. Footer, stem well, rough plumbing, and/or underground ductwork are properly installed in accordance with plan specifications.
4. Footers and/or foundations for stoops, porches, and terraces, with required reinforcement and flashing are framed and floor slab poured.
5. Proof of builders liability insurance.
6. Proof of soil treatment.
7. Tie-in survey.
Second Draw:
20%
Third Draw:
20%
Fourth Draw:
20%
Final Draw:
20%
1. All exterior walls and masonry sills are in.
2. Lintel steel in and poured -or wood substitute.
1. Roof is dried -in (one layer of paper tacked down).
2. Interior has been framed according to plans and specifications.
3. All rough electrical work is in place with wires to boxes, etc.
4. All rough plumbing is in.
5. Tubs are set in place and tub trap poured with hot tar.
6. All central heat ducts are in and insulated for air conditioning. If furnace is in interior of house, fumace cubicle framed and ready to set furnace.
7. Shower base is framed, rough plumbing and paper in place and ready to pour.
8. All window frames are set.
1. Roof completely finished.
2. All exterior carpentry work, fascia, and soffits, are finished.
3. All insulation in walls and ceilings.
4. All exterior doors including garage and glass doors installed.
5. All windows permanently installed.
6. If garage or carport, concrete floor is poured and finished.
7. If block, all stucco work is complete.
8. Rough grading around building for drainage is complete.
9. All sheetrock in and finished.
10. All tile or marble windowsills are in.
11. All floors are ready for final finish.
12. All interior doors are on the job and ready to be hung.
13. Sewer line tied in to main sewer.
1. Sod, seed, or sprigging are in place as per plans & specifications.
2. Landscaping is installed.
3. All exterior light switches and boxes are trimmed out.
4. All concrete work, driveways, sidewalks, stoops, porches, and patios are in and finished.
5. Exterior painting and caulking completed.
6. Interior painting complete/wallpapering complete.
7. All cabinets, vanities, and hardware installed.
8. All plumbing fixtures installed and operable.
9. All kitchen equipment, dishwasher, stoves, refrigerator, disposal, and exhaust hood installed as per contract.
10. Hot water tank installed.
11. Furnace and air conditioning in and working.
12. Sealed floors and floor coverings, as called for in plans and specs, are down, in place, and finished.
13. All Interior doors hung complete with hardware.
14. All shelves and clothes bars or shower rods are in place.
15. All interior light fixtures, switches, receptacles, and phone outlets are in and finished with proper plate covers.
16. House is clean -bathroom, kitchen, windows inside and out- and ready for occupancy.
17. Certificate of Occupancy
Signatures certify that the above -captioned property has been inspected and has been found to be ready for the
draw in accordance with the approved disbursement schedule.
Inspector Date Owner Date Contractor Date
Notice to Proceed
Date: August 19, 2024,
Property Address: 905 Carlton Street #B
Clearwater, FL 33755
Owner (S): Clearwater Neighborhood Housing Services, Inc.
Contractor: Arrow Homes Inc
Pursuant to the construction Contract signed on August 19, 2024, you are hereby
notified to proceed with the development of the property described above. Upon receipt
of this notice, you are responsible for performing the construction work on said property
under the terms and conditions of the contract and in accordance with the specifications
provided to the City of Clearwater. Construction should begin by
. Pursuant to the provisions of Article 2 of
the Contract, you are hereby given Notice to Proceed with the work within ninety (90)
calendar days from the date of this notice. This notice provides that the work will be
completed within eighteen (181 months from the date of this notice.
Please acknowledge receipt and acceptance of this notice by signing in the space
provided below. Keep a copy and return a copy to:
City of Clearwater, Economic Development & Housing
PO Box 4748, Clearwater, Florida 33758
I acknowledge receipt of this notice on
Authorized signature:
Jeffrey Jones, Chairman, Clearwater Neighborhood Housing
Services, Inc.
Clearwater Neighborhood Housing Services, Inc. August 19, 2024
HOME Investment Partnerships (HOME) Construction Loan Agreement
HOME INVESTMENT PARTNERSHIPS PROGRAM
AGREEMENT FOR RENTAL ACTIVITY BY AND
BETWEEN
THE CITY OF CLEARWATER
AND
CLEARWATER NEIGHBORHOOD HOUSING SERVICES,
INC.
This HOME Investment Partnerships Agreement (this "Agreement") is entered into on August 19, 2024, by
and between THE CITY OF CLEARWATER, FLORIDA, a Florida municipal corporation (the "City")
and CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INC., a Florida not-for-profit
corporation (hereafter designated as "Awardee").
WHEREAS, the City has applied for and has been awarded funds from the United States Department
of Housing and Urban Development ("HUD") for the HOME Investment Partnerships Program (referred to
herein as the "HOME Program"); and
WHEREAS, the City uses HOME resources to provide financing of affordable housing for eligible
persons as defined by the HOME Program (such financing being referred to as the "HOME Funds"), created
by the National Affordable Housing Act of 1990 ("NAHA"), as amended (the "Act"); and
WHEREAS, Awardee has applied for and has been granted approval to develop a rental unit of which
will be reserved for an individual or family whose income does not exceed eighty percent (80%) of the Area
Median Income (AMI) as determined by HUD; and
WHEREAS, Awardee has evidenced the capacity to develop the affordable housing project funded
in part by this Agreement (the "Project") and located at 905 Carlton Street #B, Clearwater, FL 33755; and
WHEREAS, Awardee desires to enter into a written agreement assuring that the housing is developed
in compliance with the terms and conditions imposed by the Act governing the Program and the City of
Clearwater Community Development Code; and
WHEREAS, the City approved the described use of HOME Funds and authorized staff to enter into
an Agreement with Awardee to provide One Hundred Ninetv-Two Thousand Three Hundred Eight
Dollars and 90/100 Cents ($192,308.90) in HOME Funds to partially finance the construction of the Project.
NOW THEREFORE, the City and Awardee hereby execute this Agreement to undertake the
described Project.
FURTHERMORE, The City and Awardee agree as follows:
I. SCOPE OF SERVICE
A. The Awardee will be responsible for carrying out the HOME assisted activities in a manner satisfactory to the
City and consistent with all standards required as a condition of providing these funds. Program activities will
include the following uses and corresponding activities eligible under the HOME Program:
Awardee shall use the HOME Funds provided to partially finance the development of the Project.
LEGAL DESCRIPTION
See Attached Exhibit "A"
(the "Property")
The Project is to be developed as a rental unit in accordance with the HOME Program. Awardee covenants
that the unit in the Project will be set aside as follows:
for thirty (30) years commencing upon completion of the Project (the "Affordability Period"), the unit in the
Project will be set aside as HOME -assisted unit for an individual or a family whose income does not exceed
80% of the Area Median Income ("AMI") as determined by HUD (the "HOME Unit"). The Home Unit shall
include one (1) three (3) bedroom two (2) bathroom unit. The completion date of the Project shall be
memorialized in a certificate of completion recorded in the Public Records of Pinellas County, Florida.
This Agreement incorporates by reference terms and conditions described in the Subordinate Mortgage and
Note of even date herewith and any other agreements enforcing the HOME Investment Partnerships Program
Act requirements associated with said Subordinate Mortgage and Note. The total development cost is
estimated to be approximately $321,620.00; the City's funding commitment of $192,308.90 represents partial
financing for the construction of the Project and is provided by the City through the HOME Investment
Partnerships Program Act. Project construction will commence and be completed as defined and set forth in
the affordable housing development schedule attached hereto as Exhibit "B". In no event will construction
commence later than ninety (90) days from the date of this Agreement nor will the Project be completed later
than four (4) years from the date of this Agreement. Construction will progress in substantial accordance with
the construction schedule submitted by Awardee to obtain financing, as amended from time to time, and as
incorporated in Exhibit "B" (PROJECT TIMELINE).
B. Affordability of HOME Unit: For the duration of the Affordability Period, as provided in the Land Use
Restriction Agreement (the "LURA") of even date herewith, the One (1) Home Unit shall be set aside and
rented in accordance with the LURA.
The HOME Unit shall be a fixed unit and the tenant shall have a verified annual income that does not exceed
eighty percent (80%) of AMI at the time of initial occupancy of a HOME Unit ("Qualified Tenant"). The
HOME Unit must have rent which are equal to or less than 30% of annual incomes for households at 80% of
AMI, adjusted for family size, in accordance with program regulations for High HOME program rents, as
stated in 24 CFR Part 92 ("HOME Rents"). The calculation of HOME Rents include utilities; therefore,
maximum HOME Rents must be reduced if the tenant pays for some or all of the utilities. Maximum rent
limits and allowances for utilities are revised annually and are available from the City. Awardee shall establish
initial HOME Rents and the procedures for future rent increases based on rules and regulations established in
24 CFR § 92.252, Rental Housing.
Awardee or the manager of the Project shall identify the Home Unit to the City at the time of initial occupancy.
Awardee shall ensure compliance with project requirements as defined in 24 CFR Part 92, Subpart F, as
applicable.
C. Compliance: Awardee shall determine and verify the income eligibility of Qualified Tenant in accordance
with HUD Section 8 housing assistance programs contained in 24 CFR Part 5, or an alternative method
preapproved by City for the Project. Awardee shall calculate gross annual income by annualizing verified
sources of income to be received by the household during the twelve (12) months following the effective date
of the determination.
D. Affirmative Marketing: Awardee shall adopt appropriate procedures for affirmatively marketing the Home
Unit. Affirmative marketing consists of good faith efforts to provide information and otherwise to attract
Qualified Tenants from all racial, ethnic and gender groups in the housing market area. Awardee shall be
required to use affirmative fair housing marketing practices in soliciting Qualified Tenants, determining
eligibility, concluding transactions, and affirmatively furthering fair housing efforts. Awardee must maintain
a file containing all marketing efforts related to the HOME Unit (i.e. copies of newspaper ads, memos of
phone calls, copies of letters, etc.) to be available for inspection on request by the City. Awardee must provide
a description of intended actions that will inform and otherwise attract Qualified Tenants from all racial,
ethnic, and gender groups in the housing market of the HOME Unit. Awardee must provide the City with an
assessment of the affirmative marketing program. Said assessment must include:
A. Methods used to inform the public and potential renters about federal fair housing laws and affirmative
marketing policy;
B. Methods used to inform and solicit applications from persons in the housing market who are not likely to
apply without special outreach; and
C. Records describing actions taken by the Awardee to affirmatively market the HOME Unit; and records to
assess the results of these actions.
E. Tenant Leases and Protections: Persons applying for rental of the HOME Unit shall be qualified on a first-
come, first-served basis. Qualified Tenant must be income -eligible and must occupy the HOME Unit as
primary residences. Awardee shall comply with the provisions of 24 CFR Part 570, Florida Landlord Tenant
Act, the Florida Administrative Code, the HOME Investment Partnerships Act, and all City requirements, as
applicable, which prohibit certain lease terms. The tenant lease for the HOME Unit shall be expressly
subordinate to the Subordinate Mortgage and shall contain clauses, among other provisions, wherein the
lessee:
A. Agrees that the household income, household composition, and other eligibility requirements shall be
deemed substantial and material obligations of the tenancy; that the tenant will comply promptly with all
requests for information with respect thereto from Awardee or the City, and that tenant's failure to provide
accurate information about household income or refusal to comply with a request for information with
respect thereto shall be deemed a violation of a substantial obligation of his/her tenancy;
B. Agrees not to sublease to any person or family who does not meet income qualifications as determined,
verified, and certified by Awardee;
C. States that the rental unit is the primary residence of the tenant;
D. Agrees that the lease shall be for a one (1) -year period, unless other terms are mutually agreed upon by
Awardee and tenant. Awardee shall not charge tenants fees that are not customarily charged in rental
housing in accordance with 24 CFR § 92.504(e); and
E. Awardee shall adhere to and comply with 24 CFR Part 5 Subpart L which addresses the protections for
victims of domestic violence, dating violence, sexual assault, or stalking who are applying for assistance
covered by VAWA. All applicants shall be provided a Notice of Occupancy Rights and Certification Form
that substantially conforms with the form attached hereto as Exhibit "E".
II. PROJECT FUNDING
A. The City hereby approves the award of HOME Program Funds in the amount of One Hundred
Ninety -Two Thousand Three Hundred Eight Dollars and 90/100 Cents ($192,308.90) to Awardee
as owner of the Project located at 905 Carlton Street #B, Clearwater, FL 33755). Sources and uses
of funds are identified in Attachment "C" attached hereto and incorporated herein.
B. Awardee shall provide a detailed budget, acceptable to the City, indicating usage of all funds in the
Project budget, including HOME Funds (collectively, the "Loan Funds") provided under this
Agreement.
C. Loan Funds provided under this Agreement will be in the form of a deferred payment loan at zero
percent (0%) per annum for a term of thirty (30) years through a Subordinate Mortgage Note (the
"Note"). The loan may be forgiven at end of the deferred period at the City of Clearwater's sole and
absolute discretion.
D. The Note shall be secured by a Subordinate Mortgage encumbering the Project in favor of the City.
The entire outstanding principal balance of the loan shall be due and payable upon sale of the Project
or any portion thereof during the applicable affordability period, except that subsequent purchases of
the Project may be approved by the City, provided the subsequent awardee agrees to:
1) Enter into an agreement with the City to ensure that the subsequent awardee owns and
operates the Project in accordance with this Agreement and the LURA; and
2) Abide by all applicable HOME Program requirements.
E. Awardee shall ensure Loan Funds provided under this Agreement will be requested for disbursement
only in required amounts and as needed for payment of eligible costs for activities described and
approved in this Agreement. Payments will be made by the City for eligible expenses actually incurred
by Awardee and will not exceed actual cash requirements. The City reserves the right to liquidate
funds available under this Agreement for eligible costs incurred by the City on behalf of Awardee. All
"program income" (as defined in 24 CFR Part 92) associated with the Project shall be returned to the
City within thirty (30) days of receipt by the Borrower unless otherwise agreed to in writing by the
Awardee and the City. For the avoidance of any doubt, the parties do not anticipate there being any
program income in connection the Project.
F. If for any reason, Awardee breaches any term of this Agreement, the City may require full repayment
of any amounts advanced under this Agreement pursuant to Article VIII, Remedies on Default.
G. Loan Funds to be provided under this Agreement are contingent upon the City's determination to
proceed, modify, or cancel the Project based on the results of an environmental review in accordance
with HUD CPD Notice 01-11. The City hereby acknowledges that such environmental review has
been completed and the City has determined to proceed under this Agreement.
H. The HOME Unit must be rented to a Qualified Tenant no later than the completion of the leasing
deadline provided in the schedule included in Exhibit "B" attached hereto, as may be amended from
time to time. If the HOME Unit is not occupied by a Qualified Tenant within eighteen (18) months
following the date of project completion, HUD will require the City to submit marketing information
and, if appropriate, submit a marketing plan to HUD, and Awardee agrees to cooperate with the City
to provide all necessary marketing information to HUD.
The City and Awardee acknowledge that pursuant to 24 CFR § 92.205(c) and 24 CFR § 92.250(a),
that the minimum amount of HOME funds invested in the Project involving rental housing is $1,000
times the number of HOME Units and that The total amount of HOME funds invested on a per-unit
basis in The Project do not exceed the per-unit dollar limitations established under section 221(d)(3)(ii)
of the National Housing Act (12 U.S.C. 17151(d)(3)(ii)) for elevator- type projects that apply to the
area in which the housing is located.
III. AFFORDABILITY
For the duration of the thirty (30) year Affordability Period, as provided in the LURA, the Project
shall maintain the one (1) HOME Unit. Except as expressly set forth herein or in the LURA, if
the HOME Unit does not meet the applicable affordability requirements for the full Affordability
Period for any reason whatsoever, payment to the City of the outstanding or remaining unpaid
balance of Loan Funds invested in the Project will be required according to the repayment terms
set forth in Article VIII of this Agreement. Awardee shall ensure the affordability requirements
of the HOME Unit for the full Affordability Period through the LURA encumbering the Project
for the full Affordability Period, and same shall be enforced by the City.
IV. HOUSING QUALITY STANDARDS
A. The HOME Unit shall, upon completion, meet or exceed all applicable minimum housing code
standards, as established by the City, and all state and local housing, zoning, fire, State Model Energy
Code and building codes, as amended. In addition, the HOME Unit shall be maintained in compliance
with all applicable minimum housing code standards, as established by the City, and all state and local
housing, zoning, fire, and building codes, as amended, for the duration of the Agreement and the full
term of the required Affordability Period.
B. Awardee shall establish and maintain records for the HOME Unit to ensure adherence to all applicable
minimum housing code standards, as established by the City, and all state and local housing, zoning,
and building codes, as amended.
C. The City reserves the right to inspect at any time during normal business hours any and all construction
and/or rehabilitation accomplished under this Agreement to assure adherence to applicable housing
quality standards, minimum housing codes, as established by the local jurisdiction, and all state and
local housing, zoning, building and fire codes, as amended. Awardee agrees to abide by all policies,
rules, and guidelines regarding inspection requirements and costs set forth by the City. The method
of inspection by the City to ensure maintenance of required housing standards during the Affordability
Period will be in accordance with 24 CFR § 92.504(d)(1).
D. Awardee shall use only licensed contractors and subcontractors (to the extent required by applicable
law), reputable workmen, material suppliers, and agents reasonably acceptable to the City in the
construction, marketing, and leasing of the housing units to be constructed under this Agreement.
V. NOTICES
A. Notice. All notices provided for herein shall be sent by certified or registered return receipt requested
mail, or by a nationally recognized overnight courier, addressed to the appropriate party at the at the
address designated for such party specified below, or such other address as the party who is to receive
such notice may designate in writing. Notice by mail shall be completed by depositing the same in a
letterbox or other means provided for the posting of mail addressed to the party with the proper amount
of postage affixed thereto. Actual receipt of notice shall not be required to effect notice hereunder.
Notices sent by a nationally recognized overnight courier service shall be deemed delivered the next
business day after deposit with such courier unless the records of such courier indicate a later delivery in
which case the notice shall be deemed received on the date of delivery.
Communication and details concerning this Agreement shall be directed to the following persons:
If to City:
City of Clearwater
Attn: Terry Malcolm -Smith
Economic Development and Housing Department Coordinator
P.O. Box 4748
Clearwater, Florida 33758
(727) 444-7167
If to Awardee:
Clearwater Neighborhood Housing Services, Inc.
Frank Cornier, Jr.
608 N. Garden Avenue
Clearwater, FL 33755
727-442-4155
The contact persons listed above may be changed upon fifteen (15) days written notice to the
other party.
VI. ADMINISTRATIVE REQUIREMENTS
A. Awardee shall abide by all applicable federal, state, and local laws, regulations, codes, and ordinances
in the performance of all activities required by this Agreement, and specifically agrees to adhere to
applicable requirements of 24 CFR Part 92 with respect to the HOME Unit.
B. Awardee shall adhere to the applicable requirements of 2 CFR Part 200 and applicable uniform
administrative requirements of 24 CFR § 92.505.
C. Awardee shall make available to the City, at any time during normal business hours, all financial,
compliance, and construction records of activities pertaining to funding and the Development covered
by this Agreement to allow the City to conduct monitoring, performance, and compliance reviews and
evaluations. Notwithstanding any other provision in this Agreement, the City will monitor the
performance of Awardee against goals and performance standards required herein. Substandard
performance, as determined by the City, shall constitute non-compliance with this Agreement. If
action to correct such substandard performance is not taken by Awardee within thirty (30) calendar
days after being notified by the City, suspension or termination procedures may be initiated as
specified in Section VIII or Section IX.
D. In accordance to 24 CFR § 92.353, Awardee shall ensure that no person will be displaced from his or
her dwelling as a direct result of activities assisted with HOME Funds provided under this
Agreement. In the event that displacement is unavoidable, the Awardee will adhere to the Uniform
Relocation Act.
E. Awardee shall affirmatively market the HOME Unit to low-income persons in compliance with 24
CFR § 92.351 and Public Laws 88-352 and 90-284, where applicable, and ensure maintenance of
documentation of affirmative marketing efforts to such persons. Prior to any funds being disbursed
under this Agreement, the Awardee shall provide an affirmative marketing plan to the City
documenting the planned affirmative marketing efforts to be undertaken by Awardee regarding the
HOME Unit.
F. Awardee shall not pay any part of funds received under this Agreement for lobbying the Executive
or Legislative Branches of the Federal, State, or local government.
G. Award shall adhere to the Conflict -of -Interest provisions at 24 CFR § 92.356 and 2 CFR Part 200.
H. Awardee shall comply with the provisions of the National Environmental Policy Act of 1969, as
applicable to projects funded under this Agreement, the Flood Disaster Protection Act of 1973, and the
Lead -Based Paint Poisoning Prevention Act, and the regulations promulgated there under, all as
amended as applicable. Awardee agrees to comply with the following regulations insofar as they apply
to this Agreement, the Clean Air Act, Federal Water Pollution Control Act, Environmental Protection
Agency regulations pursuant to 40 CFR Part 50, all as amended, as well as all other applicable
environmental laws and regulations, as applicable. Awardee shall ensure maintenance of
documentation to evidence compliance with environmental statutes and regulations.
Awardee shall establish and ensure the eligibility of tenant leasing the HOME Unit with regard to
program requirements specified by HUD, as applicable. In addition, except to the extent prohibited by
law, Awardee shall ensure maintenance of Qualified Tenant information, including name, address,
family size, social security number, race, sex, income, marital status, and whether the assisted person(s)
is elderly, female head -of -household, handicapped, American Indian or Alaska Native, Hispanic,
Caucasian, Black or African American, Asian, or Native Hawaiian or Pacific Islander. The information
shall be maintained for the HOME Unit and person(s) or family occupying same. Awardee shall submit
the Qualified Tenant information to the City upon request, except to the extent prohibited by law.
J. Awardee shall provide drug-free workplaces in accordance with the Drug -Free Workplace Act of
1988.
K. If applicable, Awardee shall ensure compliance with all requirements of the Davis -Bacon Act, Contract
Work Hours and Safety Standards Act, the Copeland Anti -Kickback Act, and all other applicable
federal, state, and local laws and regulations pertaining to labor standards. Awardee shall ensure
maintenance of adequate records and reports to evidence such compliance, if applicable.
L. Awardee shall ensure compliance with the requirements of Fair Housing Act, Executive Order 11246
(Equal Employment Opportunity), as amended by Executive Order 12086, and the regulations issued
pursuant thereto, Executive Orders 11625, 12432, and 12138, which require affirmative actions to
encourage participation by minority and women -owned business enterprises. Awardee shall ensure
that the provisions of this paragraph are included in every subcontract entered into by Awardee
associated with this Agreement and Project. Awardee shall ensure maintenance of records and reports
to document compliance with fair housing and equal opportunity requirements.
M. Awardee will ensure that all records required under this Agreement are retained for a period of five
(5) years after the Affordability Period has expired. When reasonably requested, Awardee shall
furnish, and cause all its subcontractors to furnish, all reports and information required hereunder, and
will permit access to its books, records, and accounts, by the City, HUD or its agent, or other authorized
federal officials for purposes of investigation to ascertain compliance with the statutes, rules,
regulations, and provisions stated herein.
N. Awardee shall ensure that where employees are engaged in activities not covered under the
Occupational Safety and Health Act of 1970, said employees shall not be required or permitted to
work, be trained in, or receive services in buildings or surroundings, or under working conditions,
which are unsanitary, hazardous, or dangerous to the participants' health or safety.
O. Awardee shall comply with Executive Order 11063, as amended by Executive Order 12259, and shall
not discriminate against persons on the basis of race, color, creed, religion, ancestry, national origin,
sex, disability or other handicap, age, marital or familial status, or status with regard to public
assistance. Awardee shall maintain records and documentation to evidence compliance with this
requirement. Awardee shall take affirmative action to ensure that all employment practices are free
from such discrimination. Such employment practices include, but are not limited to, the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates
of pay or other forms of compensation, and selection for training, including apprenticeship. Awardee
agrees to post in conspicuous places, available to employees and applicants for employment, notices
to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause.
P. If applicable, Awardee shall comply with the provisions of Section 3 of the Housing and Urban
Development Act of 1968 as amended (12 U.S.C. §1701u) and its implementing regulations contained
Q.
in 24 CRF Part 75 including but not limited to statements in attached Exhibit "D", that requires, to the
greatest extent feasible, opportunities for training and employment arising from HOME Funds will be
provided to low-income persons residing in the program service area. Also, to the greatest extent
feasible, contracts for work to be performed relating to HOME Funds will be awarded to businesses
that are in or owned by persons residing in the HOME Program service area. The Borrower will
complete a Section 3 form provided by the City.
Awardee shall comply with Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of
Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation
Act of 1973, the Americans with Disabilities Act of 1990, and the Age Discrimination Act of 1975,
along with all applicable regulations associated therewith, all as amended. Awardee shall include the
provisions of this paragraph in every subcontract entered into by Awardee associated with this
Agreement or this Project. Awardee shall ensure maintenance of records and reports to document
compliance.
R. Awardee agrees that funds received under this Agreement will not be utilized for religious activities;
however, 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.
S. Except for any Permitted Exceptions listed in the Subordinate Mortgage, Awardee shall not further
encumber the Project pursuant to this Agreement without the prior written approval of the City.
T. Awardee shall monitor all subcontracted services on a regular basis to assure contract compliance.
Results of monitoring efforts shall be summarized in written reports and supported with documented
evidence of follow-up actions taken to correct areas of noncompliance. Awardee shall cause the
applicable provisions of this Agreement to be included in, and made a part of, any subcontract executed
in the performance of this Agreement. Executed copies of all subcontracts entered into by Awardee
shall be available for review by the City, along with documentation concerning the selection process.
U. Awardee shall conduct an independent audit of this Project after completion of the Project. This audit
shall be in accordance with generally accepted accounting principles. An independent auditor
acceptable to the City shall conduct the audit. Awardee shall provide the City with a copy of such audit
upon completion and in accordance with the terms outlined in the Note. Any deficiencies noted in the
audit report shall be fully cleared by Awardee within thirty (30) calendar days after receipt of said
audit report by the City. Failure of Awardee to clear deficiencies noted in the audit report shall
constitute a breach of this Agreement, and the City may exercise any and all of its rights and remedies
under Article VIII, Remedies on Default.
VII. DEBARMENT AND SUSPENSION
Awardee certifies that Awardee and its principals:
A. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily
excluded from participation from covered transactions by any federal, state, or local department or agency;
B. Have not, within a three (3) -year period preceding this Agreement, been convicted of or had a civil
judgment rendered against them for commission of embezzlement, theft, forgery, bribery, falsification or
destruction of records, making false statement(s) or receiving stolen property;
C. Are not presently indicted for, or otherwise criminally charged by, a governmental entity (Federal, State,
or local) with commission of any of the offenses enumerated above, and;
D. Have not, within a three (3) -year period preceding this Agreement, had one (1) or more public transactions
(Federal, State, or local) terminated for cause or default.
VIII. REMEDIES ON DEFAULT
In accordance with 2 CFR Part 200, Awardee agrees that in the event the City determines that a breach of
this Agreement has occurred, the City may exercise any and all of its rights and remedies under applicable
regulations, including the right to terminate this Agreement and recapture or terminate any and all HOME
Program funds allocated under this Agreement. More specifically:
A. If the City determines that Awardee has materially failed to comply with any provision of this
Agreement, or with any rules, statutes, regulations, or ordinances referred to herein, the City will notify
Awardee in writing of such Notice of Default in accordance with the requirements of Section V to the
party designated to receive such Notices in Section V of this Agreement. For purposes of this section,
the term "materially" means "an important or essential term of the Agreement."
B. The City will allow Awardee the opportunity to demonstrate compliance with the Agreement
requirements in question. Awardee shall offer evidence of such compliance within thirty (30) days
from receipt of the written Notice of Default. Substantial compliance shall not constitute compliance
with the terms and conditions of this Agreement unless the City expressly agrees to the substantial
compliance in writing.
C. If Awardee fails to demonstrate to the City that it has fulfilled the requirement(s), the City may, in
addition to imposing any of the special conditions specified in 2 CFR Part 200, take corrective or
remedial action(s) as follows:
1) Corrective or remedial action will be designed to prevent a continuation of the deficiency, mitigate
any adverse effects, and prevent recurrence of the deficiency.
2) Corrective or remedial action may include:
a. Temporarily withholding cash payments pending correction of the deficiency by Awardee.
b. Specific activities required by the City to correct the deficiency and to be accomplished by
Awardee in a specified timeframe.
c. Canceling or revising activities may affect the performance of this Agreement and create a
deficiency in the original Agreement and may be grounds for making this contract void and
trigger remedies available to the City under this Agreement and/or HOME Program
regulations.
d. Reprogramming any balance of HOME Program funds made available under this Agreement
from deficient activities, or any activity funded under this Agreement, to other eligible
activities.
e. Suspension of HOME Program fund disbursements for deficient activities, or any activities
funded under this Agreement and subsequent termination of this Agreement in its entirety.
f.
g.
Termination of this Agreement in its entirety and requiring that Awardee repay to the City
any and all HOME Program funds advanced under this Agreement.
Removing Awardee from participation in any future allocations of HOME Program funds
from the City.
h. Taking other remedial actions that may be legally available to the City.
In the event Awardee is dissolved, ceases to exist, or becomes unable for any reason to fulfill its obligations
under this Agreement, the City will require Awardee to fully repay to the City any and all amounts advanced
under this Agreement.
D. Notwithstanding any other provision of this Agreement, should there be any fraud, misrepresentation,
embezzlement, or any other criminal activity by Awardee associated with this Project, the City may pursue
all legal and equitable remedies available to it against the Awardee.
E. Any decision regarding corrective, remedial, legal or equitable remedies or actions to be taken regarding this
Agreement or Project shall be at the sole option and absolute discretion of the City. A decision by the City
to pursue one course of action shall not constitute a waiver of any other course of action the City may pursue
under this Article VIII, Remedies on Default.
F. Pursuant to 24 CFR § 92.205(e), should this Agreement be terminated before completion of the Project,
either voluntarily or otherwise, any HOME Funds invested in the Project that are the subject of this
Agreement shall be repaid to the City's HOME Investment Trust Fund in accordance with 24 CFR §
92.503(b).
IX. TERMINATION FOR CONVENIENCE
Pursuant to 2 CFR Part 200, the City may terminate this Agreement upon thirty (30) calendar days prior
written notice to Awardee contact person indicated in Section V of this Agreement. The notice of
termination shall set forth the reasons for such termination, the effective date of termination, and in the
case of partial termination the portion of the award to be terminated. However, in the case of partial
termination, if the City, in its sole discretion, determines that the remaining portion of the funding
provided under this Agreement will not accomplish the purposes for which the award was made, the City
may terminate the award in its entirety under this section, Section VIII, or 2 CFR Part 200.
X. MISCELLANEOUS PROVISIONS
A. The officials who executed this Agreement hereby represent and warrant that they have full and complete
authority to act on behalf of the City and Awardee, respectively, and that their signatures below, the terms
and provisions hereof, constitute valid and enforceable obligations of each.
B. This Agreement shall be executed in the original, and any number of executed copies. Any copy of this
Agreement so executed shall be deemed an original and shall be deemed authentic for any other use.
C. The parties may amend or modify this Agreement at any time, provided that such amendment(s) or
modification(s) make specific reference to this Agreement and are executed in writing by a duly authorized
representative of both parties. Such amendment(s) or modification(s) shall not invalidate this Agreement,
nor relieve or release the parties from their obligations under this Agreement.
D. The terms and conditions of this Agreement shall be binding upon the parties hereto and their respective
successors and assignees.
E. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or
establishing the relationship of employer and employee between the parties. Awardee shall at all times
remain an independent contractor with respect to the services to be performed under this Agreement.
F. Awardee shall not assign or transfer any interest in this Agreement without the prior written approval of
the City.
G. This Agreement shall be construed according to the laws of the State of Florida.
H. Should any part, term, or provision of this Agreement, or portions thereof, be determined by a court of
competent jurisdiction to be illegal, void, or unenforceable, the validity of the remaining portions or
provisions shall not be affected thereby.
XI. INDEMNITY
Awardee agrees that it shall indemnify and hold harmless the City, its officers, agents, directors and employees
from:
A Any claims or losses for services rendered by any subcontractor, person or firm performing or
supplying services, materials or supplies in connection with the performance of this Agreement.
B Any claims or losses resulting to any person or firm injured or damaged by the erroneous, willful, or
negligent acts or omissions, including disregard of Federal, State, and local statutes or regulations, by
Awardee, its officers, employees or subcontractors in the performance of this Agreement.
XII. NON-RECOURSE PROVISION
Notwithstanding any of the foregoing provisions, it is expressly understood by the parties hereto that none of
the members, managing or non -managing, of the Awardee shall have any personal liability, and the sole
recourse of the City shall be to the Project and assets of the Awardee.
XIII. TIME OF PERFORMANCE
Awardee shall commence Project activities included in Article I, Scope of Services, only after receipt of the
City Notice to Proceed. Awardee shall complete all activities included in Article I, Scope of Service, within
four (4) years from the date the City issues the Notice to Proceed.
XIV. TERM OF AGREEMENT
This Agreement shall be in full force and effect from the date first written above and shall remain in force
until the end of the Affordability Period.
XV. AMENDMENT OR MODIFICATION
The parties may amend or modify this Agreement at any time, provided that such amendment(s) or
modification(s) make specific reference to this Agreement and are executed in writing by a duly authorized
representative of both parties. Such amendment(s) or modification(s) shall neither invalidate this Agreement,
nor relieve or release the parties from their obligations under this Agreement, except as expressly set forth
therein.
IN WITNESSES WHEREOF, this Agreement has been duly signed and sealed by the parties hereto on or
as of the day and year first above written.
City:
City of Clearwater, Florida,
a Florida municipal corporation
By:
N. Jen =terrier
Its: Ci ana er
Date: o�1s / A0,P)
Federal ID Number: 59-6000289
Awardee:
Clearwater Neighborhood Housing Services, Inc.,
a Florida limited liability company
By:
Jeffrey Jones, Chairman
Date:
Federal ID Number: 59-1898543
DUNS Number: 6216-19188
Exhibit "A"
Legal Description of Property
Legal Description: Lot 14, Block 3, C.E. Jackson's Subdivision, according to the map or plat thereof, as
recorded in Plat Book 2, Page 96 of the Public Records of Hillsborough County, Florida, of which Pinellas
County was formerly a part, LESS road.
Exhibit "B"
Proposed Project Timeline
Activity
Site Acquisition:
Plans and Specs:
Pre -construction Conference:
Construction Begins:
Construction Complete:
Completion Date
January 31, 2024
May 29, 2024
July 15, 2024
Sept 1, 2024
February 28, 2025
Exhibit "C"
Sources and Uses
Source of Funds Amount of Funds
HOME Loan
HOME Project Delivery
Total Sources:
Uses
$ 192,308.90
$ 2,125.00
$
$
$ 194,433.90
Hard Costs: $ 190,000.00
Soft Costs: $ 2,308.90
Project Delivery: $ 2,125.00
Total Development Cost: $ 194,433.90
Exhibit "D"
Section 3 Clause
Training, Employment and Contracting Opportunities For
Business and Lower Income Persons
A. Work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3). The purpose of section 3 is to ensure
that the employment and other economic opportunities generated by HUD assistance of HUD -assisted projects
covered by section 3, shall, to the greatest extent feasible, be directed to low and very low-income persons,
particularly those who are recipients of government assistance for housing.
B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 75, which implement
section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are
under no contractual or other impediment that would prevent them from complying with Part 75 regulations.
C. The contractor agrees to send to each labor organization or representative of workers with which the contractor
has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization
or workers' representative of the contractor's commitments under this section 3 clause, and will post copies
of the notice in conspicuous places at the work site where both employees and applicants for training and
employment positions can see the notice, the notice will describe the section 3 preference, shall set forth
minimum number and job titles subject to hire, availability of apprenticeship and training positions, the
qualifications for each; and the name and location of the person(s) taking applications for each of the positions;
and the anticipated date the work will begin.
D. The contractor agrees to include section 3 clause in very subcontract subject to compliance with regulations I
24 CFR Part 75, and agrees to take appropriate action, as provided in an applicable provision of the subcontract
or in this section 3 clause, upon finding that the subcontractor is in violation of the regulations in 24 CFR Part
75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge
that the subcontractor has been found in violation of the regulations in 24 CFR Part 75.
E. The contractor will certify that any vacant employment positions, including training positions, that are filled
(1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to
whom the regulations of 24 CFR part 75 require employment opportunities to be directed, were not filled to
circumvent the contractor's obligations under 24 CFR part 75.
F. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this
contract for default, and debarment or suspension from future HUD assisted contracts.
Exhibit "E"
Notice of Occupancy Rights and Certification Form
To all Tenants and Applicants:
The Violence Against Women Act (VAWA) provides protections for victims of domestic violence, dating
violence, sexual assault, or stalking. VAWA protections are not only available to women, but are available
equally to all individuals regardless of sex, gender identity, or sexual orientation. The U.S. Department of
Housing and Urban Development (HUD) is the Federal agency that oversees that [insert name of program
or rental assistance] is in compliance with VAWA. This notice explains your rights under VAWA. A HUD -
approved certification form is attached to this notice. You can fill out this form to show that you are or have
been a victim of domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your
rights under VAWA."
Protections for Applicants
If you otherwise qualify for assistance under [insert name of program or rental assistance], you cannot be
denied admission or denied assistance because you are or have been a victim of domestic violence, dating
violence, sexual assault, or stalking.
Protections for Tenants
If you are receiving assistance under [insert name of program or rental assistance], you may not be denied
assistance, terminated from participation, or be evicted from your rental housing because you are or have been
a victim of domestic violence, dating violence, sexual assault, or stalking.
Also, if you or an affiliated individual of yours is or has been the victim of domestic violence, dating violence,
sexual assault, or stalking by a member of your household or any guest, you may not be denied rental assistance
or occupancy rights under [insert name of program or rental assistance] solely on the basis of criminal
activity directly relating to that domestic violence, dating violence, sexual assault, or stalking.
Affiliated individual means your spouse, parent, brother, sister, or child, or a person to whom you stand in the
place of a parent or guardian (for example, the affiliated individual is in your care, custody, or control); or any
individual, tenant, or lawful occupant living in your household.
Removing the Abuser or Perpetrator from the Household
Your Housing Provider (HP) may divide (bifurcate) your lease in order to evict the individual or terminate the
assistance of the individual who has engaged in criminal activity (the abuser or perpetrator) directly relating
to domestic violence, dating violence, sexual assault, or stalking.
If HP chooses to remove the abuser or perpetrator, HP may not take away the rights of eligible tenants to the
unit or otherwise punish the remaining tenants. If the evicted abuser or perpetrator was the sole tenant to have
established eligibility for assistance under the program, HP must allow the tenant who is or has been a victim
and other household members to remain in the unit for a period of time, in order to establish eligibility under
the program or under another HUD housing program covered by VAWA, or, find alternative housing.
In removing the abuser or perpetrator from the household, HP must follow Federal, State, and local eviction
procedures. In order to divide a lease, HP may, but is not required to, ask you for documentation or
certification of the incidences of domestic violence, dating violence, sexual assault, or stalking.
Moving to Another Unit
Upon your request, HP may permit you to move to another unit, subject to the availability of other units, and
still keep your assistance. In order to approve a request, HP may ask you to provide documentation that you
are requesting to move because of an incidence of domestic violence, dating violence, sexual assault, or
stalking. If the request is a request for emergency transfer, the housing provider may ask you to submit a
written request or fill out a form where you certify that you meet the criteria for an emergency transfer under
VAWA. The criteria are:
(1) You are a victim of domestic violence, dating violence, sexual assault, or stalking. If your
housing provider does not already have documentation that you are a victim of domestic violence,
dating violence, sexual assault, or stalking, your housing provider may ask you for such
documentation, as described in the documentation section below.
(2) You expressly request the emergency transfer. Your housing provider may choose to require
that you submit a form, or may accept another written or oral request.
(3) You reasonably believe you are threatened with imminent harm from further violence if you
remain in your current unit. This means you have a reason to fear that if you do not receive a
transfer you would suffer violence in the very near future.
OR
You are a victim of sexual assault and the assault occurred on the premises during the 90 -
calendar -day period before you request a transfer. If you are a victim of sexual assault, then in
addition to qualifying for an emergency transfer because you reasonably believe you are threatened
with imminent harm from further violence if you remain in your unit, you may qualify for an
emergency transfer if the sexual assault occurred on the premises of the property from which you are
seeking your transfer, and that assault happened within the 90 -calendar -day period before you
expressly request the transfer.
HP will keep confidential requests for emergency transfers by victims of domestic violence, dating violence,
sexual assault, or stalking, and the location of any move by such victims and their families. HP's emergency
transfer plan provides further information on emergency transfers, and HP must make a copy of its emergency
transfer plan available to you if you ask to see it.
Documenting You Are or Have Been a Victim of Domestic Violence, Dating Violence, Sexual Assault or
Stalking
HP can, but is not required to, ask you to provide documentation to "certify" that you are or have been a victim
of domestic violence, dating violence, sexual assault, or stalking. Such request from HP must be in writing,
and HP must give you at least 14 business days (Saturdays, Sundays, and Federal holidays do not count) from
the day you receive the request to provide the documentation. HP may, but does not have to, extend the
deadline for the submission of documentation upon your request.
You can provide one of the following to HP as documentation. It is your choice which of the following to
submit if HP asks you to provide documentation that you are or have been a victim of domestic violence,
dating violence, sexual assault, or stalking.
A complete HUD -approved certification form given to you by HP with this notice, that documents an incident
of domestic violence, dating violence, sexual assault, or stalking. The form will ask for your name, the date,
time, and location of the incident of domestic violence, dating violence, sexual assault, or stalking, and a
description of the incident. The certification form provides for including the name of the abuser or perpetrator
if the name of the abuser or perpetrator is known and is safe to provide.
A record of a Federal, State, tribal, territorial, or local law enforcement agency, court, or administrative agency
that documents the incident of domestic violence, dating violence, sexual assault, or stalking. Examples of
such records include police reports, protective orders, and restraining orders, among others.
A statement, which you must sign, along with the signature of an employee, agent, or volunteer of a victim
service provider, an attorney, a medical professional or a mental health professional (collectively,
"professional") from whom you sought assistance in addressing domestic violence, dating violence, sexual
assault, or stalking, or the effects of abuse, and with the professional selected by you attesting under penalty
of perjury that he or she believes that the incident or incidents of domestic violence, dating violence, sexual
assault, or stalking are grounds for protection.
Any other statement or evidence that HP has agreed to accept.
If you fail or refuse to provide one of these documents within the 14 business days, HP does not have to
provide you with the protections contained in this notice.
If HP receives conflicting evidence that an incident of domestic violence, dating violence, sexual assault, or
stalking has been committed (such as certification forms from two or more members of a household each
claiming to be a victim and naming one or more of the other petitioning household members as the abuser or
perpetrator), HP has the right to request that you provide third -party documentation within thirty 30 calendar
days in order to resolve the conflict. If you fail or refuse to provide third -party documentation where there is
conflicting evidence, HP does not have to provide you with the protections contained in this notice.
Confidentiality
HP must keep confidential any information you provide related to the exercise of your rights under VAWA,
including the fact that you are exercising your rights under VAWA.
HP must not allow any individual administering assistance or other services on behalf of HP (for example,
employees and contractors) to have access to confidential information unless for reasons that specifically call
for these individuals to have access to this information under applicable Federal, State, or local law.
HP must not enter your information into any shared database or disclose your information to any other entity
or individual. HP, however, may disclose the information provided if:
You give written permission to HP to release the information on a time limited basis.
HP needs to use the information in an eviction or termination proceeding, such as to evict your abuser or
perpetrator or terminate your abuser or perpetrator from assistance under this program.
A law requires HP or your landlord to release the information.
VAWA does not limit HP's duty to honor court orders about access to or control of the property. This includes
orders issued to protect a victim and orders dividing property among household members in cases where a
family breaks up.
Reasons a Tenant Eligible for Occupancy Rights under VAWA May Be Evicted or Assistance May Be
Terminated
You can be evicted and your assistance can be terminated for serious or repeated lease violations that are not
related to domestic violence, dating violence, sexual assault, or stalking committed against you. However,
HP cannot hold tenants who have been victims of domestic violence, dating violence, sexual assault, or
stalking to a more demanding set of rules than it applies to tenants who have not been victims of domestic
violence, dating violence, sexual assault, or stalking.
The protections described in this notice might not apply, and you could be evicted and your assistance
terminated, if HP can demonstrate that not evicting you or terminating your assistance would present a real
physical danger that:
1) Would occur within an immediate time frame, and
2) Could result in death or serious bodily harm to other tenants or those who work on the property.
If HP can demonstrate the above, HP should only terminate your assistance or evict you if there are no other
actions that could be taken to reduce or eliminate the threat.
Other Laws
VAWA does not replace any Federal, State, or local law that provides greater protection for victims of
domestic violence, dating violence, sexual assault, or stalking. You may be entitled to additional housing
protections for victims of domestic violence, dating violence, sexual assault, or stalking under other Federal
laws, as well as under State and local laws.
Non -Compliance with The Requirements of This Notice
You may report a covered housing provider's violations of these rights and seek additional assistance, if
needed, by contacting or filing a complaint with [insert contact information for any intermediary, if
applicable] or [insert HUD field office].
For Additional Information
You may view a copy of HUD's final VAWA rule at [insert Federal Register link].
Additionally, HP must make a copy of HUD's VAWA regulations available to you if you ask to see them.
For questions regarding VAWA, please contact [insert name of program or rental assistance contact
information able to answer questions on VAWA].
For help regarding an abusive relationship, you may call the National Domestic Violence Hotline at 1-800-
799-7233 or, for persons with hearing impairments, 1-800-787-3224 (TTY). You may also contact [Insert
contact information for relevant local organizations].
For tenants who are or have been victims of stalking seeking help may visit the National Center for Victims
of Crime's Stalking Resource Center at https://www.victimsofcrime.org/our-programs/stalking-resource-
center.
For help regarding sexual assault, you may contact [Insert contact information for relevant organizations]
Victims of stalking seeking help may contact [Insert contact information for relevant organizations].
CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286
DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017
DATING VIOLENCE,
SEXUAL ASSAULT, OR STALKING,
AND ALTERNATE DOCUMENTATION
Purpose of Form: The Violence Against Women Act ("VAWA") protects applicants, tenants, and program
participants in certain HUD programs from being evicted, denied housing assistance, or terminated from
housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against
them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating
violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.
Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing
provider may give you a written request that asks you to submit documentation about the incident or incidents
of domestic violence, dating violence, sexual assault, or stalking.
In response to this request, you or someone on your behalf may complete this optional form and submit it to
your housing provider, or you may submit one of the following types of third -party documentation:
(1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney,
or medical professional, or a mental health professional (collectively, "professional") from whom you have
sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of
abuse. The document must specify, under penalty of perjury, that the professional believes the incident or
incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of
"domestic violence," "dating violence," "sexual assault," or "stalking" in HUD's regulations at 24 CFR 5.2003
(2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative
agency; or
(3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant.
Submission of Documentation: The time period to submit documentation is 14 business days from the date
that you receive a written request from your housing provider asking that you provide documentation of the
occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but
is not required to, extend the time period to submit the documentation, if you request an extension of the time
period. If the requested information is not received within 14 business days of when you received the request
for the documentation, or any extension of the date provided by your housing provider, your housing provider
does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve
as a written request for certification.
Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic
violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be
entered into any shared database. Employees of your housing provider are not to have access to these details
unless to grant or deny VAWA protections to you, and such employees may not disclose this information to
any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a
time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of
assistance; or (iii) otherwise required by applicable law.
TO BE COMPLETED BY OR ON BEHALF OF THE VICTIM OF DOMESTIC VIOLENCE,
DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING
1. Date the written request is received by victim:
2. Name of victim:
3. Your name (if different from victim's):
4. Name(s) of other family member(s) listed on the lease:
5. Residence of victim:
6. Name of the accused perpetrator (if known and can be safely disclosed):
7. Relationship of the accused perpetrator to the victim:
8. Date(s) and times(s) of incident(s) (if known):
10. Location of incident(s):
In your own words, briefly describe the incident(s):
This is to certify that the information provided on this form is true and correct to the best of my knowledge
and recollection, and that the individual named above in Item 2 is or has been a victim of domestic violence,
dating violence, sexual assault, or stalking. I acknowledge that submission of false information could
jeopardize program eligibility and could be the basis for denial of admission, termination of assistance, or
eviction.
Signature Signed on (Date)
Public Reporting Burden: The public reporting burden for this collection of information is estimated to
average 1 hour per response. This includes the time for collecting, reviewing, and reporting the data. The
information provided is to be used by the housing provider to request certification that the applicant or
tenant is a victim of domestic violence, dating violence, sexual assault, or stalking. The information is
subject to the confidentiality requirements of VAWA. This agency may not collect this information, and you
are not required to complete this form, unless it displays a currently valid Office of Management and Budget
control number.
This Instrument prepared by: Matthew J. Mytych, Esq.
Returned to: Terry Malcolm -Smith
City of Clearwater
Economic Development & Housing
Post Office Box 4748
Clearwater, Florida 33758
THIS MORTGAGE MODIFICATION SECURES AN AMENDED AND RESTATED
PROMISSORY NOTE IN THE AMOUNT OF $177,705.80, DATED AUGUST 19, 2024.
DOCUMENTARY STAMP TAXES ARE AFFIXED TO THE MORTGAGE SECURING THE
ORIGINAL PROMISSORY NOTE, WHICH MORTGAGE, WAS RECORDED IN O.R.
BOOK 22846, PAGE 783, PUBLIC RECORDS OF PINELLAS COUNTY, FLORIDA.
ACCORDINGLY, THIS AGREEMENT IS NOT SUBJECT TO FLORIDA DOCUMENTARY
STAMP TAXES PURSUANT TO FLORIDA STATUTES SECTION 201.09.
MORTGAGE MODIFICATION AGREEMENT
This Mortgage Modification Agreement (this "Mortgage Modification") is entered into as
of this 19th day of August, 2024, by and between THE CITY OF CLEARWATER, FLORIDA,
a Florida municipal corporation ("City") and CLEARWATER NEIGHBORHOOD HOUSING
SERVICES, INC., a Florida not-for-profit corporation ("Mortgagor").
WHEREAS, City and Mortgagor entered into that certain Mortgage dated and recorded on
June 28, 2024 in O. R. Book 22846, Page 783 of the Public Records of Pinellas County, Florida,
otherwise referred to as Loan No. CFI -336 (the "Mortgage"), encumbering the following described
property situated, lying and being in Pinellas County, Florida, to wit:
SEE ATTACHED LEGAL DESCRIPTION — EXHIBIT "A".
Parcel ID#: 10-29-15-43596-003-0140
;and
WHEREAS, the underlying note attached as Exhibit "B" to the Mortgage (the "Note")
provided for forgiveness of the loan by City at the end of its thirty (30) year term; and
WHEREAS, the parties hereto have agreed to modify the Note to provide that forgiveness
of the loan shall be at the sole discretion of City among other minor revisions to the Note.
NOW, THEREFORE, in consideration of the mutual covenants and conditions contained
herein and in consideration of the sum of $1.00 and other valuable consideration accruing to each
of the parties hereto, the parties hereby agree as follows:
1. Recitals. The foregoing recitals are true and correct and are incorporated in and from a part
of this Mortgage Modification.
2. Mortgage Modification. The Note is hereby amended and restated as provided in the
MORTGAGE MODIFICATION AGREEMENT between Clearwater Neighborhood Housing Services,
Inc., and the City of Clearwater
Page 1 of 5
attached as Exhibit "B" to this Mortgage Modification.
3. Except as otherwise provided in this Mortgage Modification, all terms, conditions, and
provisions of the Mortgage, and other instruments and documents executed in connection
with the subject mortgage loan, shall remain in full force and effect and shall be binding
upon the parties, their successors and assigns.
IN WITNESS WHEREOF, the parties hereto have caused this Mortgage Modification to be
executed on the day and year first written above.
Witnesses:
Signature
(Mortgagor Signature Page)
CLEARWATER NEIGHBORHOOD
HOUSING SERVICES, INC., a
Florida not-for-profit corporation.
Print name By: Jeffrey Jones, Chairman
Date:
Address
Signature
Print name
Address
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me this _ day of August, 2024, by Jeffrey
Jones, Chairman of Clearwater Neighborhood Housing Services, Inc., who is personally
known to me or who has produced as identification.
Notary Public
Print/type Name:
2
(City of Clearwater Signature Page)
Approved as to form:
Matthew J. Mytych, Esq.
Assistant City Attorney
Date: vISia y
3
CITY OF CLEARWATER, FLORIDA,
a Florida municipal corporation.
By:
'ofe/'oi r/r
City Manager
Date: `��% SSP) Odd +�
Attest:
i
Rosemarie Call
City Clerk
Date: 6 lc/2i0
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EXHIBIT "A"
LEGAL DESCRIPTION
Lot 14, Block 3, C.E. Jackson's Subdivision, according to the map or plat thereof, as recorded in
Plat Book 2, Page 96 of the Public Records of Hillsborough County, Florida, of which Pinellas
County was formerly a part, Less road.
Parcel Number: 10-29-15-43596-003-0140
4
EXHIBIT "B"
Prepared by: Matthew J. Mytych, Esq.
Return to: Terry Malcolm -Smith
City of Clearwater
Dept. of Economic Development & Housing
P.O. Box 4748
Clearwater, FL 33758
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
AMENDED AND RESTATED PROMISSORY NOTE
Closing Date: August 19, 2024 Loan Amount: $177,705.80
Borrower: Clearwater Neighborhood Housing Services, Inc.
Property Address: 905 Carlton Street #A
Clearwater, FL 33755 (the "Property")
Property Tax I.D. No.: 10-29-15-43596-003-0140
1. BORROWER'S PROMISE TO PAY
For value received, Clearwater Neighborhood Housing Services, Inc., a Florida not-for-profit corporation
(the "Borrower") whose mailing address is 608 N Garden Avenue, Clearwater, FL 33755, promises to pay
the sum of One Hundred Seventy -Seven Thousand Seven Hundred Five Dollars and 80/100 Cents
($177,705.80) in U.S. dollars (this amount is called "Principal") to the City of Clearwater, Florida, a Florida
municipal corporation (the "Lender") whose mailing address is P.O. Box 4748, Clearwater, FL 33758, but
notwithstanding such expression, the actual indebtedness from time to time evidenced hereby shall be the sum
of all advances made by the Lender, or its agent, to the Borrower hereunder, less the aggregate amount of all
principal repayments made under said Note by the Borrower to the Lender, it being the intent hereof and the
purpose of said Loan and Note to provide a credit which the Borrower may draw against and which Lender
will approve advances from time to time in accordance with proper progress of the contemplated
rehabilitation, as determined by the Lender in its sole discretion, and which Borrower may repay in whole or
in part from time to time, so that the principal amount outstanding thereunder may fluctuate in accordance
with such advances and repayments, but the aggregate principal amount outstanding under the Note shall not
at any time exceed the principal sum of One Hundred Seventy -Seven Thousand Seven Hundred Five
Dollars and 80/100 Cents ($177,705.80). The Lender or anyone who takes this Note by transfer and who is
entitled to receive the value as evidenced by this Note is called the "Note Holder".
2. INTEREST
The interest rate on this Note will be 0.00% per annum for thirty (30) years. In the event the Borrower
transfers, assigns, sells mortgages, refinances or fails to meet the obligations established by the Mortgage
executed on even date herewith, the Letter of Commitment, the Construction Loan Agreement (all executed
1
on even date herewith), this Note (these documents collectively known as the "Loan Documents") or any
applicable restrictions or laws, or in any manner disposes of all or a portion of the property which is subject to
this Note and the Mortgage, then the principal and interest, if any, hereunder shall, at the option of the Note
Holder, immediately become due and payable after failure of the Borrower to cure the Default within thirty
(30) days of written notice of such Default under any of the Loan Documents (unless such notice and cure
period is otherwise expressly not required for a particular default event pursuant to any of the Loan
Documents), and such outstanding principal shall begin to bear interest immediately at the rate of three
percent (3%) per annum from the date of such sale, transfer, assignment, mortgage, refinance or other
conveyance, until paid in full. Forbearance to exercise this option with respect to any failure or breach of the
undersigned shall not constitute a waiver of the right as to any continuing failure or breach or any subsequent
failure or breach.
3. PAYMENTS
The loan is a thirty (30) -year deferred payment loan with no payment required until thirtieth (30th) anniversary
date of the original note dated June 28, 2024 attached as Exhibit "B" to that certain mortgage agreement
recorded on June 28, 2024 in O. R. Book 22846, Page 783 of the Public Records of Pinellas County, Florida
with said 30th anniversary date being June 28, 2054 (the "Maturity Date"), provided the Borrower does not
default on the loan. Pursuant to Section 6, should the Borrower default on the loan during the affordability
period, the entire amount of the loan may become due and payable. In the event that actual project costs are
less than the loan, unused funds will be returned to the City reducing Borrower's principal balance on the
Loan.
The undersigned will not be required to make monthly payments. On the Maturity date, or if payment of the
loan is accelerated pursuant to a Default, the Borrower will forward the deferred lump sum payment of
principal (and any interest thereon) to the City of Clearwater at P.O Box 4748, Clearwater, FL 33758, or at a
different place if required by the Note Holder. The Lender may, in its sole and absolute discretion, choose to
forgive the loan on the Maturity Date.
4. BORROWER'S RIGHT TO PREPAY
The undersigned has the right to prepay the balance due on this Note according to the amount owed as listed
below. A payment of principal only is known as a "prepayment". When a prepayment is made, the
undersigned must notify the Note Holder, in writing, that they are doing so. Full prepayment or partial
prepayments may be made without paying any prepayment charge. The Note Holder will use all prepayments
to reduce the amount of principal that is owed under this Note. If a partial prepayment is made, there will be
no change in the due date, unless the Note Holder agrees, in writing, to this change. Should the Borrower
sell, refinance, or otherwise transfer title of the property or fail to meet the required obligations the full
amount of the Note will be due to the Note Holder.
5. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the
interest or other loan charges collected in connection with this loan exceed the permitted limit, then any sum
already collected which exceeded permitted limits shall be credited as a payment of principal, unless the
undersigned shall notify the Note Holder, in writing, that the undersigned elects to have such excess sum
returned to it forthwith.
2
6. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Late Charge for Overdue Payments
The Loan is a deferred payment loan which does not require monthly payments. A payment will not be
required during the thirty (30) year term unless the Borrower defaults on the loan. If the Borrower defaults on
the loan, the entire loan amount may become due and payable after notice and opportunity to cure as provided
herein.
(B) Default
The loan will be considered in default should the Borrower not abide to the terms and conditions of any of the
Loan Documents. If the undersigned is in default, then after failure of the Borrower to cure the default within
thirty (30) days of written notice of the default under any of the Loan Documents (unless such notice and cure
period is otherwise expressly not required for a particular default event pursuant to any of the Loan
Documents), the full principal amount including any interest that may accrue shall become immediately due
and payable without further notice.
(D) No Waiver by Note Holder
The remedies of the Note Holder, as provided herein, or in the other Loan Documents, shall be cumulative
and concurrent and may be pursued regularly, successively or together, at the sole discretion of the Note
Holder, and may be exercised as often as occasion therefore shall arise. No act of omission or commission of
the Note Holder, including specifically any failure to exercise any right, remedy or recourse, shall be deemed
to be a waiver or release of the same, such waiver or release to be effected only through a written document
executed by the Note Holder, and then only to the Extent specifically recited therein. A waiver or release
with reference to any one event shall not be construed as a waiver or release of any subsequent right, remedy
or recourse to a subsequent event. Even if, at a time when the undersigned is in default, the Note Holder does
not require immediate payment in full, as described above, the Note Holder will still have the right to do so if
a default occurs at a later time.
(E) Payment of Note Holder's Costs and Expenses
In the event the Note is collected by law or through an attorney at law, or under advice there from, the Note
Holder will have the right to be paid back for all of its costs and expenses in enforcing this Note to the extent
not prohibited by applicable law. Those expenses include, for example, reasonable attorney's fees, which are
defined to include, without limitation, all fees incurred in all matters of collection and enforcement,
construction and interpretations, before, during and after trial, proceedings and appeals, as well as
appearances in reorganization or similar proceedings, and the cost of paraprofessional personnel working
under supervision of an attorney.
7. GIVING OF NOTICES
All notices provided for herein shall be sent by certified or registered return receipt requested mail, or by a
nationally recognized overnight courier, addressed to the appropriate party at the address designated for such
party in the preamble to this Note, or such other address as the party who is to receive such notice may
designate in writing. Notice by mail shall be completed by depositing the same in a letterbox or other means
provided for the posting of mail addressed to the party with the proper amount of postage affixed thereto.
Actual receipt of notice shall not be required to effect notice hereunder. Notices sent by a nationally
3
recognized overnight courier service shall be deemed delivered the next business day after deposit with such
courier unless the records of such courier indicate a later delivery in which case the notice shall be deemed
received on the date of delivery.
8. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the
promises made in this Note, including the promise to pay the full amount owed. Any person who is a
guarantor, surety or endorser of this Note is also obligated to do these things. Any person, who takes over
these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to
keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against
each person individually or against all signors together. This means that any one of the signors may be
required to pay all of the amounts owned under this Note.
9. WAIVERS
All persons now or at any time liable, whether primarily or secondarily, for the payment of the indebtedness
hereby evidenced, for themselves, their heirs, legal representatives, successors and assigns respectively,
hereby (a) expressly waive the rights of presentment, demand for payment, notice of dishonor, protest, notice
of nonpayment or protest, and diligence in collection. "Presentment" means the right to require the Note
Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder
to give Notice to other persons that amounts due have not been paid. (b) consent that the time of all payments
or any part thereof may be extended, rearranged, renewed or postponed by the Note Holder hereof and further
consent that the collateral security or any part thereof may be released, exchanged, added to or substituted for
by the Holder hereof, without in anyway modifying, altering, releasing, affecting or limiting their respective
liability or the lien of any security instrument; (c) agreed that the Note Holder, in order to enforce payment of
this Note, shall not be required first to institute any suit or to exhaust any of its remedies against the
undersigned or any other person or party to become liable hereunder. This Note and the instruments securing
it have been executed and delivered in, and their terms and provisions are to be governed and construed by the
laws of the State of Florida.
10. If more than one party shall execute this Note, the term "undersigned", as used herein, shall mean all
parties signing this Note and each of them, who shall be jointly and severally obligated hereunder. In this
Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case
may be, and the singular number includes the plural.
11. COPY RECEIVED
Borrower hereby acknowledges receipt of a copy of this instrument.
Notice to Borrower
Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign.
4
IN WITNESS WHEREOF, this NOTE has been duly signed by the Borrower on this day of
, 2024.
In the presence of:
Signature of Witness
Clearwater Neighborhood Housing Services, Inc., a
Florida not-for-profit corporation.
Name of Witness (Print) By: Jeffrey Jones, Chairman
Address of Witness
Signature of Witness
Name of Witness (Print)
Address of Witness
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me by means ❑ physical presence or ❑ online notarization,
this _ day of , 2024 by Jeffrey Jones, as Chairman of Clearwater Neighborhood
Housing Services, Inc., who ❑ is/are personally known to me or ❑ who has/have produced a driver's license as
identification.
Notary Public, State of Florida
(NOTARIAL SEAL) Name of Notary:
My Commission Expires:
My Commission No.:
5
ECONOMIC DEVELOPMENT
AND HOUSING
August 19, 2024
CITY OF CLEARWATER
POST OFFICE BOX 4748, CLEARWATER, FLORIDA 33758-4748
509 S. FAST AVENUE, SUITE 227, CLEARWATER, FL 33756
TELEPHONE (727) 562-4030 FAX (727) 464-4z65
Jeffrey Jones, Chairman
Clearwater Neighborhood Housing Services, Inc.
608 N. Garden Avenue
Clearwater, Florida 33755
RE: 905 Carlton Street #B - LOAN COMMITMENT LETTER
Dear Mr. Jones:
The City of Clearwater has reviewed your request for funding for the construction of a single-family rental housing
unit at the property located at 905 Carlton Street #B, Clearwater, Florida. Congratulations, the City has approved
your request for financing in the amount of $192,308.90 subject to the following terms and conditions:
1. Borrower: Clearwater Neighborhood Housing Services, a Florida not-for-profit corporation.
2. Loan: A non -revolving loan in the amount of $192,308.90 for the construction a single-family rental unit
on real property referenced above.
3. Loan terms: The loan will be provided as zero percent (0%) thirty (30) -year deferred payment loan. No
payment will be required during the thirty (30) -year term. Should the Borrower default on the loan during
the term, the entire amount of the loan will become due and payable. The loan may be forgiven at the end
of 30 -year term at the City's sole and absolute discretion. Default conditions will be outlined in the loan
documents.
4. Loan Funding Source: Home Investment Partnerships (HOME) Program.
5. Site Control: Owner must maintain proof of insurance and payment of taxes during the term of the loan.
6. Development: Upon completion of the construction, the property must be at minimum code standard and
pass all applicable inspections. Licensed subcontractors must perform all work and work must be
completed in a workmanlike manner. Funding will be disbursed on a pre -determined draw schedule.
Borrower will request loan proceeds disbursement via a written request and will allow the Housing Division
five (5) days within which to inspect the rehabilitation. The Borrower will allow fifteen (15) working days
for payment processing upon the passing of the construction inspection. No funds will be advanced in the
event that either the Housing Division or building department does not approve the work or the percentage
of work completed.
Ryan Cotton, Councilmember
Mike Mannino, Councilmember
Bruce Rector, Mayor
David Allbritton, Councilmember
Lina Teixeira, Councilmember
"Equal Employment and Affirmative Action Employer"
7. Contractor: Borrower must hire licensed contractors to perform the work of required
trades. The City of Clearwater Housing Division will perform periodic inspections in
addition to any inspections required by the City of Clearwater's Building Department.
An inspection by the City's Housing Division must be performed prior to the
disbursement of any draws made in connection with this loan.
8. Rental Tenant: Upon completion of the construction of the unit, the Borrower must rent
the unit to an individual or family whose income does not exceed eighty percent (80%) of
the Area Median Income (AMI) based upon HUD guidelines in effect at the time of
execution of the rental lease.
9. Collateral: A third mortgage on the following described property:
Legal Description: Lot 14, Block 3, C.E. Jackson's Subdivision, according to the map
or plat thereof, as recorded in Plat Book 2, Page 96 of the Public Records of Hillsborough
County, Florida, of which Pinellas County was formerly a part, LESS road.
The following parcel of land EXCLUSIVE of any and all improvements and/or structures
thereon, as to a leasehold interest:
Together with all improvements and appurtenances presently located or hereafter situated
thereon. A Security Agreement constituting a valid third lien on the prior perfected
security interest on all fixtures, furnishings and equipment owned by the Borrower then
or thereafter acquired or affixed to or used by the Borrower in the operation of the
mortgaged premises, including without limitation additions replacements substitutions
and after acquired property.
10. Construction Loan Agreement: The Borrower must comply with all elements of the
construction loan agreement upon the closing of this loan. Housing that is
constructed/rehabilitated must meet all applicable state and local Codes, rehabilitation
standards, and ordinances. The assisted unit must meet the accessibility requirements of
the Fair Housing Act and Section 504 of the Rehabilitation Act of 1977.
11. This loan is not assumable by another party without a written request from the borrower
and written approval from the City of Clearwater.
12. The loan will be evidenced by a HOME Agreement, Land Use Restriction Agreement,
Mortgage, Note, and Construction Agreement. The Borrower must adhere to any and all
covenants of the preceding documents as all applicable terms and conditions of the
HOME Program.
13. Clearwater Neighborhood Housing Services, Inc. must maintain an affordability
requirement by ensuring that the maximum allowable rents do not exceed 30 percent
(30%) of the family's adjusted income.
14. Clearwater Neighborhood Housing Services, Inc. will perform annual income
certifications and recertifications for the tenant of the HOME assisted rental unit. The
annual income of the tenant in the HOME assisted rental unit must be at Eight percent
(80%) or less of the AMI. The agency will forward the certifications to the City annually.
Clearwater Neighborhood Housing Services, Inc. must allow annual on-site visits for
compliance with property standards, rent and occupancy, lease requirements and tenant
selection.
15. At closing, loan funds will be placed in escrow with Somers Title Company. All
payments must be approved by the City or its agent.
Thank you for your commitment to the provision of affordable housing and allowing the City of
Clearwater to partner with you to meet your goals.
Sincerely,
Charles H. Lane, Jr.
Assistant Director, City of Clearwater, Florida
Economic Development and Housing Division
The undersigned agrees to the above referenced terms and conditions and further agrees to abide
by the requirements of the City of Clearwater and all applicable program requirements.
Clearwater Neighborhood Housing Services, Inc.
By:
Jeffrey Jones, Chairman
Date
Prepared by: Matthew J. Mytych, Esq.
Return to: Terry Malcom Smith
City of Clearwater
Economic Development & Housing Department
P.O. Box 4748
Clearwater, FL 33758-4748
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
SUBORINATE MORTGAGE
PURPOSE OF LOAN: Construction of Rental Unit
THIS MORTGAGE, (this "Mortgage") is made on or as of August 19, 2024, between CLEARWATER
NEIGHBORHOOD HOUSING SERVICES, INC., a Florida not-for-profit corporation (the
"Mortgagor"), whose address is 608 N Garden Avenue, Clearwater, FL 33755, and THE CITY OF
CLEARWATER, FLORIDA, a Florida municipal corporation, whose address is P.O. Box 4748,
Clearwater, Florida 33758-4748 (the "Mortgagee" or "Lender").
WITNESSETH, that to secure the payment of an indebtedness in the principal amount of One Hundred
Ninety -Two Thousand Three Hundred Eight Dollars and 90/100 Cents ($192,308.90) with, if
applicable, interest thereon, which shall be payable in accordance with a certain note, bond, or other
obligation, which obligation is hereinafter called the "Note", bearing even date herewith, and all other
indebtedness which the Mortgagor is obligated to pay to the Mortgagee pursuant to the provisions of the
Note and this Mortgage, the Mortgagor hereby grants, conveys, and mortgages to the Mortgagee:
ALL that certain lot, piece, or parcel of land situated and being in Pinellas County, Florida, described as
follows: Exhibit "A" attached hereto.
COMMONLY KNOWN AS: 905 Carlton Street #B, Clearwater, FL 33755
Parcel ID: 10-29-15-43596-003-0140
TOGETHER with all appurtenances thereto and all the estate and rights of the Mortgagor in and to such
property or in any way appertaining thereto: all buildings and other structures now or hereafter thereon
erected or installed, and all fixtures and articles of personal property now or hereafter attached to, or used
in, or in the operation of, any such land, buildings, or structures which are necessary to the complete use
and occupancy of such buildings or structures for the purposes for which they were or are to be erected or
installed, including, but not limited to, all heating, plumbing, bathroom, lighting, cooking, laundry,
ventilating, refrigerating, incinerating, and air-conditioning equipment and fixtures, and all replacements
thereof and additions thereto, whether or not the same are, or shall be, attached to such land, buildings,
structures in any manner, lot improvements, roads, and all other infrastructure improvements; and
TOGETHER with any and all awards now or hereafter made for the taking of the property mortgaged
hereby, or any part thereof (including any easement) by the exercise of the power of eminent domain,
including any award for change of grade of any street or other roadway, which awards are hereby assigned
to the Mortgagee and are deemed a part of the property mortgaged hereby, and the Mortgagee is hereby
authorized to collect and receive the proceeds of such awards, to give proper receipts and acquaintance
Clearwater Neighborhood Housing Services, Inc. August 19, 2024
Home Investment Partnerships (HOME) Program
therefore, and to apply the same toward the payment of the indebtedness secured by this Mortgage,
notwithstanding the fact that the amount owing thereon may not then be due and payable; and the Mortgagor
hereby agrees, upon request, to make, execute, and deliver any and all assignments and other instruments
sufficient for the purpose of assigning each such award to the Mortgagee, free, clear, and discharged of any
encumbrances of any kind or nature whatsoever; and
TOGETHER with all right, title, and interest of the Mortgagor in and to the land lying in the streets and
roads in front of and adjoining the above-described land (all of the above-described land, buildings, other
structures, fixtures, articles of personal property, awards and other rights and interests being hereinafter
collectively called the "Mortgaged Property")
TO HAVE AND TO HOLD the Mortgaged Property and every part thereof unto the Mortgagee, its
successors and assigns forever for the purposes and uses herein set forth.
PROVIDED ALWAYS that if the Mortgagor shall pay unto the Mortgagee all sums required under the
terms of the Note, which Note is in the original principal amount of $192,308.90 and has a maturity date
of August 19, 2054 (Exhibit "B" attached hereto), unless such maturity is accelerated as set forth in the
Note, and shall comply with and abide by each and every one of the stipulations, agreements, conditions,
and covenants of the Loan Documents, as defined below, then in such event this Mortgage and Security
Agreement and the estate hereby created shall cease and be null and void.
MORTGAGOR further covenants and agrees with the Mortgagee, as follows:
1. The Mortgagor will promptly pay the principal of and interest on the indebtedness evidenced by the
Note, and all other charges and indebtedness provided therein and, in this Mortgage, at the times and
in the manner provided in the Note and in this Mortgage.
The Commitment Letter, the Note, the Land Use Restriction Agreement, the HOME Investment
Partnerships Agreement, and the Construction Loan Agreement (all executed on even date herewith)
together with this Mortgage shall hereinafter collectively be referred to as the "Loan Documents".
2. The Mortgagor will pay when due, as hereinafter provided, all ground rents, if any, and all taxes,
assessments, water rates, and other governmental charges, fines, and impositions, of every kind and
nature whatsoever, now or hereafter imposed on the Mortgaged Property, or any part thereof, and will
pay when due every amount of indebtedness secured by any lien to which the lien of this Mortgage is
expressly subject.
3. This Mortgage and the Note were executed and delivered to secure monies advanced in full to the
Mortgagor by the Mortgagee as or on account of a loan evidenced by the Note, for the purpose of
making improvements to or on the Mortgaged Property, which improvements are hereinafter
collectively called the "Improvements", and for such other purpose, if any, described or referred to
therein, including construction of the property. The Mortgagor shall make or cause to be made all the
Improvements. If the construction or installation of the Improvements shall not be carried out with
reasonable diligence, or shall be discontinued at any time for any reason, other than strikes, lock -outs,
acts of God, fires, floods, or other similar catastrophes, riots, war, or insurrection, the Mortgagee, after
due notice to the Mortgagor, is hereby authorized (a) to enter upon the Mortgaged Property and employ
any watchmen, protect the Improvements from depreciation or injury and to preserve and protect such
property, (b) to carry out any and all then -existing contracts between the Mortgagor and other parties
for the purpose of making any of the Improvements, (c) to make and enter into additional contracts and
incur obligations for the purposes of completing the Improvements pursuant to the obligations of the
Mortgagor hereunder, either in the name of the Mortgagee or the Mortgagor, and (d) to pay and
discharge all debts, obligations, and liabilities incurred by reason of any action taken by the Mortgagee
as provided in this paragraph, all of which amounts so paid by the Mortgagee, with interest thereon
from the date of each such payment, at the default rate as set forth in the Note, shall be payable by the
Mortgagor to the Mortgagee on demand and shall be secured by this Mortgage.
4. No building or other structure or improvement, fixture of personal property mortgaged hereby shall be
removed or demolished without the prior written consent of the Mortgagee. The Mortgagor will not
make, permit, or suffer any alteration of or addition to any building or other structure or improvement
now or which may hereafter be erected or installed upon the Mortgaged Property, or any part thereof,
except the Improvements required to be made pursuant to this Mortgage, nor will the Mortgagor use,
or permit or suffer the use of any of the Mortgaged Property for any purpose other than the purpose or
purposes for which the same is now intended to be used, without the prior written consent of the
Mortgagee. The Mortgagor will maintain the Mortgaged Property in good condition and state of repair
and will not suffer or permit any waste to any part thereof, and will promptly comply with all the
requirements of, state, and local governments, or of any departments, divisions or bureaus thereof,
pertaining to such property or any part thereof.
5. Preservation, Maintenance and Protection of the Property. Borrower shall not destroy, damage, or
impair the Mortgaged Property, allow the Mortgaged Property to deteriorate, or commit waste on the
Mortgaged Property. Borrower shall maintain the Mortgaged Property in order to prevent it from
deterioration or decrease in value due to its condition. Borrower shall comply with all City Codes
relating to maintenance of the Mortgaged Property and shall repair or restore the Mortgaged Property
upon Notice by the City. Failure to comply with this provision may result in Borrower's loan being
placed in default.
6. Transfer of the Property, Encumbrances. If all or any part of the Mortgaged Property or an interest
therein is sold or transferred by the Mortgagor without the Lender's prior written consent, including
the creation of a lien or encumbrance subordinate to this Mortgage, the sums hereunder and under the
Note shall be immediately due and payable with interest due from the date of this Mortgage and Note
without further notice to the Mortgagor, or the Mortgagor's successor or assigns.
7. (a) The Mortgagor will keep all buildings, other structures and improvements, including equipment,
now existing or which may hereafter be erected or installed on the Mortgaged Property hereby, insured
against loss by fire and other hazards, casualties and contingencies, in such amounts and manner, and
for such periods, all as may be required from time to time by the Mortgagee. Unless otherwise required
by the Mortgagee, all such insurance shall be affected by Standard Fire and Extended Coverage
Insurance policies in amounts not less than necessary to comply with the coinsurance clause percentage
of the value applicable to the location and character of the property to be covered. All such insurance
shall be carried in companies approved by the Mortgagee, and all policies therefore shall be in such
form and shall have attached thereto loss payable clauses in favor of the Mortgagee and any other
parties as shall be satisfactory to the Mortgagee. All such policies and attachments thereto shall be
delivered promptly to the Mortgagee, unless they are required to be delivered to the holder of a lien of
a mortgage or similar instrument to which this Mortgage is expressly subject, in which latter event,
certificates thereof, indicating Mortgagee's interest with the standard mortgage clause, satisfactory to
the Mortgagee, shall be delivered promptly to the Mortgagee. The Mortgagor will pay promptly when
due, as hereinafter provided, any and all premiums on such insurance, and in every case in which
payment thereof is not made from the deposits therefore required by this Mortgage, promptly submit to
the Mortgagee for examination receipts or other evidence of such payment as shall be satisfactory to
the Mortgagee. The Mortgagee may obtain and pay the premium on (but shall be under no obligation
to do so) every kind of insurance required hereby if the amount of such premium has not been deposited
as required by this Mortgage, in which event the Mortgagor will pay to the Mortgagee every premium
so paid by the Mortgagee, as set forth in this Mortgage.
(b) In the event of loss or damage to the Mortgaged Property, the Mortgagor will give to the Mortgagee
immediate notice thereof by mail, and the Mortgagee may make and file proof of loss if not made
otherwise promptly by or on behalf of the Mortgagor. Each insurance company issuing any such policy
is hereby authorized and directed to make payment hereunder for such Toss to the Mortgagor and the
Mortgagee jointly, unless the amount of loss is payable first to the holder of a lien under a mortgage or
similar instrument to which this Mortgage is expressly subject; and all the insurance proceeds, or any
part thereof, if received by the Mortgagee, may be applied by the Mortgagee, at its option, either in
reduction of the indebtedness hereby secured, or to the restoration or repair of the Mortgaged Property
damaged. In the event of foreclosure of this Mortgage, or of any transfer of title to the Mortgaged
Property in extinguishment of such indebtedness, all right, title, and interest of the Mortgagor in and to
every such insurance policy then in force, subject to the rights and interest of the holder of any such
prior lien, shall pass to the grantee acquiring title to the Mortgaged Property together with such policy
and appropriate assignment of such right, title and interest which shall be made by the Mortgagor.
8. The Improvements and all plans and specifications therefore shall comply with all applicable municipal
ordinances, regulations and rules made or promulgated by lawful authority, and upon their completion,
shall comply therewith and with the rules of the Board of Fire Underwriters having jurisdiction.
9. Upon any failure by the Mortgagor to comply with or perform any of the terms, covenants, or conditions
of this Mortgage requiring the payment of any amount of money by the Mortgagor, other than the
principal amount of the loan evidenced by the Note, interest and other charges, as provided in the Note,
the Mortgagee may at its option make such payment. Every payment so made by the Mortgagee
(including reasonable attorney's fees incurred thereby), with interest thereon from the date of such
payment, as set forth in this Mortgage, except any payment for which a different rate of interest is
specified herein, shall be payable by the Mortgagor to the Mortgagee on demand and shall become a
lien secured by this Mortgage. This Mortgage with respect to any such amount and the interest thereon
shall constitute a lien on the Mortgaged Property prior to any other lien attaching or accruing subsequent
to the lien of this Mortgage.
10. The Mortgagee, by any of its agents or representatives, shall have the right to inspect the Mortgaged
Property from time to time at any reasonable hour of the day. Should the Mortgaged Property, or any
part thereof, at any time require inspection, repair, care or attention of any kind or nature not provided
by this Mortgage as determined by the Mortgagee in its sole discretion, the Mortgagee may, after notice
to the Mortgagor, enter or cause entry to be made upon the Mortgaged Property and inspect, repair,
protect, care for or maintain such property, as the Mortgagee may in its sole discretion deem necessary,
and may pay all amounts of money therefore, as the Mortgagee may in its sole discretion deem
necessary.
11. The principal amount owing on the Note together with interest thereon and all other charges, as therein
provided, and all other amounts of money owing by the Mortgagor to the Mortgagee pursuant to and
secured by the Mortgage, shall immediately become due and payable without notice or demand upon
the appointment of a receiver or liquidator, whether voluntary or involuntary, for the Mortgagor or any
of the property of the Mortgagor, or upon the filing of a petition by or against the Mortgagor under the
provisions of any State insolvency law, or under the provisions of the Bankruptcy Act of 1898, as
amended, or upon the making by the Mortgagor of an assignment for the benefit of the Mortgagor's
creditors. The following events and any other event or condition of default referenced in the other Loan
Documents shall constitute a default:
(a) Failure to pay the amount of any installment of principal and interest, or other charges
payable on the Note, which shall have become due, prior to the due date of the next such
installment;
(b) Nonperformance by the Mortgagor of any covenant, agreement, term, or condition of this
Mortgage, or of the Note (except as otherwise provided in subdivision (a) hereof) or of any
other agreement heretofore, herewith or hereafter made by the Mortgagor with the Mortgagee
in connection with such indebtedness;
(c) Failure of the Mortgagor to perform any covenant, agreement, term, or condition in any
instrument creating a lien upon the Mortgaged Property, or any part thereof, which shall have
priority over the lien of this Mortgage;
(d) The Mortgagee's discovery of the Mortgagor's failure in any application of the Mortgagor to
the Mortgagee to disclose any fact deemed by the Mortgagee to be material, or of the making
therein, or in any of the agreements entered into by the Mortgagor with the Mortgagee
(including but not limited to the Loan Documents) of any misrepresentation by, on behalf of,
or for the benefit of the Mortgagor; or
(e) The sale, or other transfer of any kind or nature of the mortgage property, or any part thereof,
without the prior written consent of the Mortgagee.
In the event of default under this Mortgage, any of the other Loan Documents, the City's remedies after
providing written notice of default to Mortgagor and (30) thirty days to cure (except when expressly
not required to do so under this section) shall include but not be limited to the right to acceleration of
all sums due under the Note and foreclose on the land subject to the Mortgage; and the City shall be
entitled to collect any costs related to such foreclosure including reasonable attorney's fees. The City
retains all other rights and remedies available at law or in equity.
The Mortgagee's failure to exercise any of its rights hereunder shall not constitute a waiver thereof.
Upon failure to cure any event of default, as detailed in this Section 11, the Note may be declared to be
immediately due and payable.
12. The Mortgagee may from time to time cure each default under any covenant or agreement in any
instrument creating a lien upon the Mortgaged Property, or any part thereof, which shall have priority
over the lien of this Mortgage, to such extent as the Mortgagee may exclusively determine, and each
amount Paid, if any, by the Mortgagee to cure any such default shall be paid by the Mortgagor to the
Mortgagee, and the Mortgagee shall also become subrogated to whatever rights the holder of the prior
lien might have under such instrument.
13. After failure to cure any default hereunder or upon default if a cure period is not required for a specified
default event, the Mortgagor shall upon demand of the Mortgagee, surrender possession of the
Mortgaged Property to the Mortgagee, and the Mortgagee may enter such property, and let the same
and collect all the rents there from which are due or to become due, and apply the same, after payment
of all charges and expenses, on account of the indebtedness hereby secured, and all such rents and all
leases existing at the time of such default are hereby assigned to the Mortgagee as further security for
the payment of the indebtedness secured hereby, and the Mortgagee may also dispossess, by the usual
summary proceedings, any tenant defaulting in the payment of any rent to the Mortgagee.
14. The Mortgagee in any action to foreclose this Mortgage shall be entitled to the appointment of a receiver
without notice, as a matter of right and without regard to the value of the Mortgaged Property, or the
solvency or insolvency of the Mortgagor or other party liable for the payment of the Note and other
indebtedness secured by this Mortgage.
15. The Mortgagor, within ten (10) days upon request in person or within twenty (20) days upon request
by mail, will furnish promptly a written statement in form satisfactory to the Mortgagee, signed by the
Mortgagor and duly acknowledged, of the amount then owing on the Note and other indebtedness
secured by this Mortgage, and whether any offsets or defenses exist against such indebtedness or any
part thereof.
16. The Mortgagor will give immediate notice by registered or certified mail to the Mortgagee of any fire,
damage, or other casualty affecting the mortgaged property, or of any conveyance, transfer, or change
in ownership of such property, or any part thereof.
17. Notice. All notices provided for herein shall be sent by certified or registered return receipt requested
mail, addressed to the appropriate party at the address designated for such party in the preamble to this
Mortgage, or such other address as the party who is to receive such notice may designate in writing.
Notice shall be completed by depositing the same in a letterbox or other means provided for the posting
of mail addressed to the party with the proper amount of postage affixed thereto. Actual receipt of
notice shall not be required to effect notice hereunder. Notices sent by a nationally recognized
overnight courier service shall be deemed delivered the next business day after deposit with such
courier unless the records of such courier indicate a later delivery in which case the notice shall be
deemed received on the date of delivery.
18. In case of a foreclosure sale of the Mortgaged Property, it may be sold as one parcel.
19. The Mortgagor will not assign the rents, if any, in whole or in part, from the Mortgaged Property, or
any part thereof, without the prior written consent of the Mortgagee.
20. The Mortgagor is lawfully seized of the Mortgaged Property and has good right, full power and lawful
authority to sell and convey the same in the manner above provided and will warrant and defend the
same to the Mortgagee forever against the lawful claims and demands of any and all parties whatsoever.
21. The Mortgagor hereby waives the benefit of all homestead exemptions as to the debt secured by this
Mortgage and as to any expenditures for insurance, taxes, levies, assessments, dues or charges incurred
by the Mortgagee pursuant to any provision of this Mortgage.
22. This Mortgage and all the covenants, agreements, terms, and conditions herein contained shall be
binding upon and inure to the benefit of the Mortgagor and the heirs, legal representatives and assigns
of the Mortgagor and, to the extent permitted by law, every subsequent owner of the Mortgaged
Property, and shall be binding upon and inure to the benefit of the Mortgagee and its assigns. If the
Mortgagor, as defined herein, consists of two or more parties, this Mortgage shall constitute a grant and
mortgage by all of them jointly and severally, and they shall be obligated jointly and severally under
all the provisions hereof and under the Note. The word "Mortgagee" shall include any person,
corporation, or other party who may from time to time be the holder of this Mortgage. Wherever used
herein, the singular number shall include the plural, the plural number shall include the singular, and
the use of any gender shall be applicable to all genders wherever the sense requires.
23. Land Use Restriction Agreement. This Mortgage shall be subject to all terms and conditions of the
Land Use Restriction Agreement recorded of an even date herewith.
IN WITNESS WHEREOF, this Mortgage has been duly signed and sealed by the Mortgagor on or as of
the day and year first above written.
In the presence of:
Clearwater Neighborhood Housing Services, Inc., a
Florida not-for-profit corporation.
Signature of Witness
Name of Witness (Print) By: Jeffrey Jones, Chairman
Address of Witness
Signature of Witness
Name of Witness (Print)
Address of Witness
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me by means ❑ physical presence or online notarization,
this day of , 2024 by Jeffrey Jones, as Chairman of Clearwater Neighborhood
Housing Services, Inc., who is/are personally known to me or who has/have produced a driver's license
as identification.
Notary Public, State of Florida
(NOTARIAL SEAL) Name of Notary:
My Commission Expires:
My Commission No.:
Exhibit "A"
Legal Description
Legal Description: Lot 14, Block 3, C.E. Jackson's Subdivision, according to the map or plat thereof, as
recorded in Plat Book 2, Page 96 of the Public Records of Hillsborough County, Florida, of which
Pinellas County was formerly a part, Less road.
Parcel Number: 10-29-15-43596-003-0140
Prepared by: Matthew J. Mytych, Esq.
Return to: Terry Malcolm -Smith
City of Clearwater
Economic Development & Housing Dept.
P.O. Box 4748
Clearwater, FL 33758-4748
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
SUBORDINATE MORTGAGE NOTE
Exhibit "B"
Closing Date: August 19, 2024 Loan Amount: $192,308.90
Borrower: Clearwater Neighborhood Housing Services, Inc.
Property Address: 905 Carlton Street #B
Clearwater, FL 33755 (the "Property")
Parcel I.D.: 10-29-15-43596-003-0140
1. BORROWER'S PROMISE TO PAY
For value received, Clearwater Neighborhood Housing Services, Inc., a Florida not-for-profit corporation
(the "Borrower") whose mailing address is 608 N. Garden Avenue, Clearwater, Florida 33755, promises to
pay the sum of One Hundred Ninety -Two Thousand Three Hundred Eight Dollars and 90/100 Cents
($192,308.90) in U.S. dollars (this amount is called "Principal") to the City of Clearwater, Florida, a Florida
municipal corporation (the "Lender"). Whose mailing address is P.O. Box 4748, Clearwater, Florida 33758.
The Lender or anyone who takes this Note by transfer and who is entitled to receive the value as evidenced by
this Note is called the "Note Holder". This Note is secured by a subordinate mortgage of even date herewith
issued to the City of Clearwater, the terms, covenants and provisions of which are incorporated herein by
reference (the "Subordinate Mortgage" or "Security Instrument").
The Subordinate Mortgage securing this Note is and shall be subordinate in right of payment to the prior
payment in full of the following indebtedness:
(i ) that certain promissory note secured by a mortgage dated July 25, 2024 and recorded on July 29, 2024 in
O.R. Book 22875, Page 949 of the Public Records of Pinellas County, Florida made payable to the order of
Valley National Bank (the "Bank"), its successors and/or assigns, executed and delivered by the Borrower to
the Bank, as the same may be modified, amended or restated from time to time (herein referred to as the
"Bank Note");
(ii) that certain Assignment of Rents dated July 25, 2024 and recorded on July 29, 2024 in O.R. Book 22875,
Page 959 of the Public Records of Pinellas County, Florida; and
(iii) that certain UCC Financing Statement recorded on July 29, 2024 in O.R. Book 22875, Page 965 of the
Public Records of Pinellas County, Florida.
2. INTEREST
The interest rate on this Note will be 0.00% per annum for thirty (30) years. In the event the Borrower
transfers, assigns, sells mortgages, refinances or fails to meet the obligations established by the Mortgage, the
HOME Investment Partnership Agreement, the Land Use Restriction Agreement, the Letter of Commitment,
the Construction Loan Agreement (all executed on even date herewith), this Note (these documents
collectively known as the "Loan Documents") or any applicable restrictions or laws, or in any manner
disposes of all or a portion of the property which is subject to this Note and the Mortgage, then the principal
and interest, if any, hereunder shall, at the option of the Note Holder, immediately become due and payable
after failure of the Borrower to cure the Default within thirty (30) days of written notice of such Default under
any of the Loan Documents (unless such notice and cure period is otherwise expressly not required for a
particular default event pursuant to any of the Loan Documents), and such outstanding principal shall begin to
bear interest immediately at the rate of three percent (3%) per annum from the date of such sale, transfer,
assignment, mortgage, refinance or other conveyance, until paid in full. Forbearance to exercise this option
with respect to any failure or breach of the undersigned shall not constitute a waiver of the right as to any
continuing failure or breach or any subsequent failure or breach.
3. PAYMENTS
The loan is a 30 -year deferred payment loan with no payment required until thirtieth (30th) anniversary date of
this Note, August 19, 2054 (the "Maturity Date"), provided the Borrower does not default on the loan. In the
event that actual project costs are less than the loan, unused funds will be returned to the City reducing
Borrower's principal balance on the Loan.
The undersigned will not be required to make monthly payments. On the Maturity date, or if payment of the
loan is accelerated pursuant to a Default, the Borrower will forward the deferred lump sum payment of
principal (and any interest thereon) to the City of Clearwater at P.O Box 4748, Clearwater, FL 33758, or at a
different place if required by the Note Holder. The Lender may, in its sole and absolute discretion, choose to
forgive the loan on the Maturity Date.
4. BORROWER'S RIGHT TO PREPAY
The undersigned has the right to prepay the balance due on this Note according to the amount owed as listed
below. A payment of principal only is known as a "prepayment". When a prepayment is made, the
undersigned must notify the Note Holder, in writing, that they are doing so. Full prepayment or partial
prepayments may be made without paying any prepayment charge. The Note Holder will use all prepayments
to reduce the amount of principal that is owed under this Note. If a partial prepayment is made, there will be
no change in the due date, unless the Note Holder agrees, in writing, to this change. Should the Borrower
sell, refinance, or otherwise transfer title of the property or fail to meet the required obligations the full
amount of the Note will be due to the Note Holder.
5. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the
interest or other loan charges collected in connection with this loan exceed the permitted limit, then any sum
already collected which exceeded permitted limits shall be credited as a payment of principal, unless the
undersigned shall notify the Note Holder, in writing, that the undersigned elects to have such excess sum
returned to it forthwith.
6. BORROWER'S FAILURE TO PAY AS REQUIRED
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(A) Late Charge for Overdue Payments
The Loan is a deferred payment loan which does not require monthly payments. A payment will not be
required during the thirty (30) year term unless the Borrower defaults on the loan. If the Borrower defaults on
the loan, the entire loan amount may become due and payable after notice and opportunity to cure as provided
herein.
(B) Default
The loan will be considered in default should the Borrower not abide to the terms and conditions of any of the
Loan Documents. If the undersigned is in default, then after failure of the Borrower to cure the default within
thirty (30) days of written notice ofthe default under any ofthe Loan Documents (unless such notice and cure
period is otherwise expressly not required for a particular default event pursuant to any of the Loan
Documents), the full principal amount including any interest that may accrue shall become immediately due
and payable without further notice.
(D) No Waiver by Note Holder
The remedies of the Note Holder, as provided herein, or in the other Loan Documents, shall be cumulative
and concurrent and may be pursued regularly, successively or together, at the sole discretion of the Note
Holder, and may be exercised as often as occasion therefore shall arise. No act of omission or commission of
the Note Holder, including specifically any failure to exercise any right, remedy or recourse, shall be deemed
to be a waiver or release of the same, such waiver or release to be effected only through a written document
executed by the Note Holder, and then only to the Extent specifically recited therein. A waiver or release
with reference to any one event shall not be construed as a waiver or release of any subsequent right, remedy
or recourse to a subsequent event. Even if, at a time when the undersigned is in default, the Note Holder does
not require immediate payment in full, as described above, the Note Holder will still have the right to do so if
a default occurs at a later time.
(E) Payment of Note Holder's Costs and Expenses
In the event the Note is collected by law or through an attorney at law, or under advice there from, the Note
Holder will have the right to be paid back for all of its costs and expenses in enforcing this Note to the extent
not prohibited by applicable law. Those expenses include, for example, reasonable attorney's fees, which are
defined to include, without limitation, all fees incurred in all matters of collection and enforcement,
construction and interpretations, before, during and after trial, proceedings and appeals, as well as
appearances in reorganization or similar proceedings, and the cost of paraprofessional personnel working
under supervision of an attorney.
7. GIVING OF NOTICES
All notices provided for herein shall be sent by certified or registered return receipt requested mail, or by a
nationally recognized overnight courier, addressed to the appropriate party at the address designated for such
party in the preamble to this Note, or such other address as the party who is to receive such notice may
designate in writing. Notice by mail shall be completed by depositing the same in a letterbox or other means
provided for the posting of mail addressed to the party with the proper amount of postage affixed thereto.
Actual receipt of notice shall not be required to effect notice hereunder. Notices sent by a nationally
recognized overnight courier service shall be deemed delivered the next business day after deposit with such
3
courier unless the records of such courier indicate a later delivery in which case the notice shall be deemed
received on the date of delivery.
8. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the
promises made in this Note, including the promise to pay the full amount owed. Any person who is a
guarantor, surety or endorser of this Note is also obligated to do these things. Any person, who takes over
these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to
keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against
each person individually or against all signors together. This means that any one of the signors may be
required to pay all of the amounts owned under this Note.
9. WAIVERS
All persons now or at any time liable, whether primarily or secondarily, for the payment of the indebtedness
hereby evidenced, for themselves, their heirs, legal representatives, successors and assigns respectively,
hereby (a) expressly waive the rights of presentment, demand for payment, notice of dishonor, protest, notice
of nonpayment or protest, and diligence in collection. "Presentment" means the right to require the Note
Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder
to give Notice to other persons that amounts due have not been paid. (b) consent that the time of all payments
or any part thereof may be extended, rearranged, renewed or postponed by the Note Holder hereof and further
consent that the collateral security or any part thereof may be released, exchanged, added to or substituted for
by the Holder hereof, without in anyway modifying, altering, releasing, affecting or limiting their respective
liability or the lien of any security instrument; (c) agreed that the Note Holder, in order to enforce payment of
this Note, shall not be required first to institute any suit or to exhaust any of its remedies against the
undersigned or any other person or party to become liable hereunder. This Note and the instruments securing
it have been executed and delivered in, and their terms and provisions are to be governed and construed by the
laws of the State of Florida.
10. If more than one party shall execute this Note, the term "undersigned", as used herein, shall mean all
parties signing this Note and each of them, who shall be jointly and severally obligated hereunder. In this
Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine, as the case
may be, and the singular number includes the plural.
11. COPY RECEIVED
Borrower hereby acknowledges receipt of a copy of this instrument.
Notice to Borrower
Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign.
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IN WITNESS WHEREOF, this NOTE has been duly signed by the Borrower on this day of
, 2024.
In the presence of:
Signature of Witness
Clearwater Neighborhood Housing Services, Inc., a
Florida not-for-profit corporation.
Name of Witness (Print) By: Jeffrey Jones, Chairman
Address of Witness
Signature of Witness
Name of Witness (Print)
Address of Witness
STATE OF FLORIDA
COUNTY OF PINELLAS
The foregoing instrument was acknowledged before me by means ❑ physical presence or ❑ online notarization,
this day of , 2024 by Jeffrey Jones, as Chairman of Clearwater Neighborhood
Housing Services, Inc., who ❑ is/are personally known to me or ❑ who has/have produced a driver's license as
identification.
Notary Public, State of Florida
(NOTARIAL SEAL) Name of Notary:
My Commission Expires:
My Commission No.:
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