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ENGMAN STREET VACANT LOT - LOAN COMMITMENT LETTER• V ,, 01 ts, ECONOMIC DEVELOPMENT AND HOUSING October 4, 2024 CITY OF CLEARWATER POST OFFICE Box 4748, CLEARWATER, FLORIDA 33758-4748 509 S. EAST AVENUE, SUITE 227, CLEARWATER, FL 33756 TELEPHONE (727) 562-4030 FAX (727) 464-4265 Efrain Cornier, Jr., CEO/President Clearwater Neighborhood Housing Services, Inc. 608 N. Garden Avenue Clearwater, Florida 33755 RE: Engman Street Vacant Lot - Loan Commitment Letter Dear Jeffrey: The City of Clearwater Economic Development & Housing Department is pleased to offer a commitment to finance the acquisition of a vacant parcel for the development of an affordable housing unit on real property with 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 Eighty -Five Thousand Nine Hundred Seven Dollars and 00/100 Cents ($85,907.00). 3. Purpose: To acquire vacant parcel for the provision of affordable housing. 4. Interest Rate: The interest rate will be zero (0%) percent per annum. 5. Loan Term: The term of the loan shall not exceed twenty-four (24) months. 6. Repayment: Unless the home is sold before the end of the term, no payment of principal shall be required during the twenty-four (24) month term of the loan, provided that the borrower abides by the terms of the Agreement and no default occurs. The unpaid principal will be paid when the single-family housing unit is sold or at the end of the term, whichever occurs earlier. If the home is sold before the end of the term, the agency shall reimburse the City within thirty (30) days from the proceeds of the sale less the cost for the land, cost of developer fees and any other fees expended by the borrower for the project as outlined in Exhibit "A" attached. 7. Loan Fund Source: HOME Investment Partnerships Program. 8. Sale of Property: Upon acquisition of land and construction of the single-family housing unit, the borrower must sell the single-family housing unit to an individual or family whose income does not exceed eighty percent (80%) of Area Median Income (AMI) based upon U.S. Department of Housing and Urban Development (HUD) guidelines in effect at the time of sale. If there is no ratified sale contract with an eligible homebuyer for the housing unit within nine (9) months of the date of completion of construction, the housing unit must be rented to an eligible tenant in accordance with 24 CFR § 92.252. The home must be the principal residence of the family. The end user may be eligible for down payment and closing costs assistance through the City of Clearwater. 9. Collateral: A first mortgage on the following described property: Legal Description: The North 1/2 of Lot 1, Block D, PALM PARK (ADDITION TO CLEARWATER), according to the plat thereof as recorded in Plat Book 4, Page 86, of the Public Records of Hillsborough County, Florida, of which Pinellas County was formerly a part. Parcel I.D. No: 10-29-15-65718-004-0011 Together with all the improvements and appurtenances presently located or hereafter situated thereon. A Security Agreement constituting a valid first 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. This commitment becomes null and void in the event that it is established that there is anyone currently residing in the above -referenced property or in the event that someone will be displaced as a result of this transaction. 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, Mortgage, Note, and Land Use Restriction Agreement. The borrower must adhere to any and all covenants of the preceding documents. Thank you for your commitment to the provision of affordable housing for the City's residents. Sincerely, Dylan Mayeux, Interim Manager, Housing Department The undersigned agrees to the above -referenced terms and conditions and further agrees to abide by the requirements of the City of Clearwater's Economic Development & Housing Department and the HOME Investment Partnerships (HOME) program. Efrain Cornier, Jr. Date CEO/President Ryan Cotton, Councilmember Mike Mannino, Councilmember Bruce Rector, Mayor • David Allbritton, Councilmember Lina Teixeira, Councilmember "Equal Employment and Affirmative Action Employer"