DEFERRED PAYMENT MORTGAGE NOTEExhibit "B"
Prepared by: Matthew J. Mytych, Esquire
Return to: Terry Malcolm -Smith
City of Clearwater
Economic Development & Housing Department
P.O. Box 4748
Clearwater, FL 33758-4748
CITY OF CLEARWATER
ECONOMIC DEVELOPMENT AND HOUSING DEPARTMENT
DEFERRED PAYMENT MORTGAGE NOTE
Closing Date: October 4, 2024 Loan Amount: $85,907.00
Borrower(s): Clearwater Neighborhood Housing Services, Inc.
Borrower Address: 608 N. Garden Avenue, Clearwater, Florida 33755
Property Address: Unaddressed Engman Street Parcel
Parcel Number: 10-29-15-65718-004-0011
THIS NOTE IS SECURED BY A BALLOON MORTGAGE AND THE FINAL PRINCIPAL
PAYMENT OR THE PRINCIPAL BALANCE DUE ON MATURITY IS $85,907.00 TOGETHER
WITH ACCRUED INTEREST, IF ANY, AND ALL ADVANCEMENTS MADE BY THE
MORTGAGEE UNDER THE TERMS OF THE MORTGAGE SECURING THIS NOTE.
FOR VALUE RECEIVED, CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INC., a
Florida not-for-profit corporation, (the "Borrower"), promises to pay to the order of THE CITY OF
CLEARWATER, FLORIDA, a Florida municipal corporation (the "City"), its successors and assigns, the
sum of Eightv-Five Thousand Nine Hundred Seven Dollars 00/100 Cents ($85,907.00). Payment of the
principal and interest of this NOTE shall be as follows: This NOTE shall be deferred for twenty-four (24)
months from the date of this NOTE unless the single-family home unit is sold before the end of the deferral
period. The interest rate on the loan will be zero percent (0%) per annum. At such time that the Borrower
sells the unit with the address noted above and in that certain Mortgage of even date herewith before the
end of the deferral period, the Borrower will repay the City the full amount of this Note balance less the
twelve percent (12%) developer fee on the development cost within thirty (30) days from the date of sale.
Otherwise, the entire loan will be due and payable at the end of twenty-four (24) months from the date of
this NOTE (the "Maturity Date"). If at the end of the loan term, the real property is not sold, or does not
have a contract, or if the Borrower has not actively pursued the sale of the property as determined by the
City, the entire loan balance will become due and payable to the City. Default of the terms of the
Commitment Letter, the Mortgage, the Land Use Restriction Agreement (the "LURA"), the HOME
Investment Partnership Agreement all executed on even date herewith, or this NOTE (collectively the
"Loan Documents") shall, at the City's option, cause this NOTE to become immediately due and payable
after written notice and opportunity to cure as provided below.
This NOTE is secured by a Balloon Mortgage, and the final principal payment or the principal
balance agreed upon is due upon maturity together with accrued interest, if any, and all
advancements made by the mortgagee under the terms of the mortgage securing this NOTE.
Clearwater Neighborhood Housing Services, Inc. September 27, 2024
HOME Investment Partnerships Construction Loan Agreement Page 1
Upon default under this NOTE or the other Loan Documents, the City, at its option, may prepare an
alternative promissory note requiring monthly payments of principal and interest. All payments on the
alternative note shall be applied first to interest to date of receipt, then to principal, then to late charges due.
Failure of the Borrower to cure a default within thirty (30) days of written notice of a default under any of
the Loan Documents (unless such notice and cure period is otherwise not required for a particular default
event pursuant to any of the Loan Documents) shall entitle the City accelerate the sums due under this Note
and file suit to recover on the amount owed. If suit is instituted by the City to recover on this NOTE, the
Borrower agree(s) to pay all costs of such collection including reasonable attorney's fees and court costs.
Failure of the City to exercise any option to which it may be legally entitled to enforce the terms of this
NOTE shall not constitute a waiver of such default, enforcement of any other terms and conditions, or any
rights or remedies.
In the event of default under any of the Loan Documents or any alternative promissory note, the City's
remedies shall include but not be limited to the right to acceleration of all sums due under this NOTE and
foreclosure on the land subject to the mortgage; and, the City shall be entitled to collect any costs related
to foreclosure, including reasonable attorney's fees. The City retains all other rights and remedies available
at law or in equity.
During the deferred term, this NOTE will not accrue interest. Upon failure of the Borrower to cure a default
within the specified timeframe, this NOTE will accrue interest at three percent (3%) per annum until the
principal amount of this NOTE is paid.
The Borrower reserve(s) the right to prepay the principal in whole or in part at any time without payment
of premiums or penalties.
The principal amount of this NOTE will be repaid as provided for in this Note and the Mortgage.
This NOTE is secured by a mortgage duly filed in the Public Records of Pinellas County, Florida.
DEMAND, protest and notice of demand and protest are hereby waived and the Borrower hereby waives,
to the extent authorized by law, any and all homestead and other exemption rights which otherwise would
apply to the debt evidenced by this NOTE.
This NOTE has been duly executed by the Borrower, as of its date provided below.
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Clearwater Neighborhood Housing Services, Inc. «CaseSummary_ClosingDate_Long»
HOME Investment Partnerships Loan Agreement Page 2
THIS NOTE IS SECURED BY A BALLOON MORTGAGE AND THE FINAL PRINCIPAL
PAYMENT OR THE PRINCIPAL BALANCE DUE ON MATURITY IS $85,907.00 TOGETHER
WITH ACCRUED INTEREST, IF ANY, AND ALL ADVANCEMENTS MADE BY THE
MORTGAGEE UNDER THE TERMS OF THE MORTGAGE SECURING THIS NOTE.
Notice to Borrower
Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign.
IN WITNESS WHEREOF, this NOTE has been duly signed by the Borrower on this 4t` day of October,
2024.
In the presence of:
Signature of Witness
Clearwater Neighborhood Housing Services, Inc.,
a Florida not-for-profit corporation.
Name of Witness (Print) By: Efrain Cornier, Jr., CEO/President
Date:
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 4th day of October, 2024 by Efrain Cornier, Jr., as CEO/President of Clearwater Neighborhood Housing
Services, Inc., ❑ 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.:
Clearwater Neighborhood Housing Services, Inc. «CaseSummary_ClosingDate_Long»
HOME Investment Partnerships Loan Agreement Page 3