LAND USE RESTRICTION AGREEMENT - CLEARWATER NEIGHBORHOOD HOUSINGPrepared by: Matthew J. Mytych, Esq.
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
LAND USE RESTRICTION AGREEMENT
HOME INVESTMENT PARTNERSHIPS PROGRAM
THIS LAND USE RESTRICTION AGREEMENT (this "Agreement") is made on March 3 2026, by and
between CLEARWATER NEIGHBORHOOD HOUSING SERVICES, INC., a Florida not-for-profit
corporation ("Borrower") its successors, assigns, and transferees of the project described below, whose
mailing address is 608 N Garden Avenue, Clearwater, FL 33755, and THE CITY OF CLEARWATER,
FLORIDA, a Florida municipal corporation (the "City"), whose mailing address is P.O. Box 4748,
Clearwater, Florida 33758-4748.
WHEREAS, Borrower shall construct a single-family dwelling on certain real property located at
1001 Engman Street, Clearwater, FL 33755 (the "Property") for the development of an affordable single-
family unit for a low income homebuyer described herein (the "Project") and agrees with the City that the
real property, which is subject to a mortgage and note executed on even date with this Agreement (the
"Mortgage" and "Note" respectively), shall be subject to the restrictive covenants set forth herein; and
WHEREAS, Borrower shall cause to be improved in accordance with the plans and specifications
and any amendments thereto previously submitted by the Borrower to the City and which have been
approved by the City; and
WHEREAS, Borrower agrees that the restrictive covenants shall remain in full force and effect
against the real property until the end of the period of affordability as provided herein; and
WHEREAS, this Agreement shall be properly filed and recorded by the City in the Official Public
Records of Pinellas County, Florida, and shall constitute a restriction upon the use of the property subject
to and in accordance with the terms contained herein.
NOW, THEREFORE, in consideration of funds the City has provided to Borrower for a loan to
finance the construction of the affordable single-family unit, including closing costs, and other related cost
as associated with the project in the City of Clearwater, Pinellas County, Florida, described as: Legal
Description attached as Exhibit "A", (also described as Parcel Number: 10-29-15-65718-004-0011),
Borrower will comply, and will require any subsequent purchaser of the Property to comply with the
following:
Borrower acknowledges that this Agreement is necessary to comply with the affordability requirements of
the HOME program stated at 24 CFR § 92.252, from which funds were obtained to finance such loan.
Borrower covenants and agrees that in connection with the construction of the single-family home, the City
should approve any transfer or sale of the subject property.
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1. Covenants and Restrictions on Use of Funds. HOME Investment Partnerships Program
allocations provided to the Project will be used for construction of the real property plus
permissible closing costs. During the Period of Affordability as defined herein, the Home -assisted
unit (the "Assisted Unit") shall be sold to a homebuyer having annual income which does not
exceed eighty percent (80%) of the median family income for the area, as determined and made
available by the U.S. Department of Housing and Urban Development (HUD) with adjustments
for smaller and larger families at the time of purchase of the home (an "Eligible Homebuyer"). If
there is not a ratified sales contract with an eligible homebuyer for the Assisted Unit within
(twelve) (12) months of the date of completion, the Assisted Unit must be rented to an eligible
tenant (an "Eligible Tenant") in accordance with 24 CFR § 92.252. The Assisted Unit must be
the principal residence of the Eligible Homebuyer. The income of the persons who will occupy
the unit shall be verified by the Borrower by obtaining source documents of current income and
assets. Source documentation evidencing annual income may include wage statements, interest
statements, unemployment compensation statements, and other documentation approved by the
City. In the event that neither of the above methods is suitable, the Borrower may use other
methods acceptable to the City to verify income. Annual income for the purpose of this Agreement
shall be as defined by HUD for the HOME Program. The value of the Assisted Unit shall not
exceed ninety-five percent (95%) of the median purchase price for that type of single-family
housing for the area. The maximum per-unit subsidy amount shall not exceed the per -dollar limits
established under HUD. The person or persons purchasing the single-family home shall have fee
simple title to the property.
(a) During the Period of Affordability, the Assisted Unit must be occupied by the original low
income homebuyer. In the event that the homebuyer chooses to sell the Property, the
homebuyer must sell the Property to another eligible low income homebuyer and who will
use the Property as its principal residence. If the original homebuyer sells, either
voluntarily or involuntarily, during the Period of Affordability, the homebuyer may receive
a fair return on investment.
(b) All proceeds, program income, and recaptured funds associated with the Project shall be
returned to the City of Clearwater within thirty (30) days of receipt by the Borrower.
(c) Any noncompliance with the requirement of this section shall be corrected within thirty
(30) days after such error is first discovered or would have been discovered by the exercise
of reasonable diligence.
2. Affordability Period. The Period of Affordability shall commence upon the date of this
Agreement and end on the fifteenth (15th) year after sale to an Eligible Homebuyer or rental to an
Eligible Tenant. This Agreement shall remain in effect until the end of the Period of Affordability.
3. Property Standards. The Assisted Unit shall meet and be maintained in accordance with all
applicable local codes, the International Property Maintenance Code, the Florida Building Code,
ordinances, and zoning ordinances at the time of project completion. The Assisted Unit must meet
all applicable State and local housing quality standards, code requirements, and accessibility
requirements at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973
and 24 CFR § 100.20, and must also meet the design and renovation requirements at 24 CFR
§ 100.205, which implements the Fair Housing Act. Design of house must meet the International
Energy Conservation Code (formerly known as the Model Energy Code).; the City also highly
encourages the use of ENERGY STAR® qualified products, including natural gas where
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available, in all developed housing.
4. Location of HOME -Assisted Unit. The location of the Assisted Unit is as follows: See attached
Exhibit "A".
The Borrower agrees that there will be no material changes to the design of the Project after initial
commitment by the City without assurances provided by Borrower and approved by City that the
proposed changes will not adversely affect the Assisted Unit or any provision of this Agreement.
5. No Discrimination. The Borrower shall not discriminate, as defined by Federal Statutes, on the
basis of race, creed, color, sex, age, or national origin in the occupancy of the Assisted 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. The Borrower will follow the affirmative marketing procedures
and requirements for the HOME Program to attract an Eligible Homebuyer in the housing market
area to the available housing without regard to race, color, national origin, sex, religion, familial
status, or disability.
7. Environmental Reviews. Each HOME -assisted project must be assessed for environmental
effects in accordance with the provisions of the National Environmental Policy Act of 1969
(NEPA) and related authorities listed in HUD's implementing regulations at 24 CFR Parts 50 and
58.
8. Displacement, Relocation, and Acquisition. The Borrower will take reasonable measures to
minimize displacement of persons as a result of the Project being assisted with HOME funds in
accordance with the requirements of the Uniform Relocation Assistance and Real Properties
Acquisition Act. The Borrower shall be responsible for any relocation expenses incurred without
the City of Clearwater approval.
9. Labor. The Borrower shall be responsible for maintaining the prevailing wage rates for HOME -
assisted projects with 12 or more units in accordance with the Davis -Bacon Act (40 U.S.C. 276a -
276a -5).
10. Lead -Based Paint. The Borrower shall be responsible for maintaining that the Assisted Unit
meets the requirements listed in the Lead -Based Paint Poisoning Prevention Act and 24 CFR Part
35.
11. No Conflicts with Other Documents. The Borrower warrants that it has not, and will not, execute
any other agreement with provisions contradictory to, or in opposition to, the provisions hereof,
and that, in any event, the requirements of this Agreement are paramount and controlling as to the
rights and obligations herein set forth and supersede any other requirements in conflict herewith.
12. Requests for Disbursement of Funds. The Borrower shall request funding for the Project from
the City on an as -needed basis.
13. Records. The Borrower shall retain all records pertaining to Project for a period of five (5) years
after audit and/or resolution of audit findings involving this loan. The Borrower shall maintain
accurate information regarding the occupancy for the Assisted Unit during the term of the Period
of Affordability and, at the request of the City, shall submit this information to the City for the
City's review and comment. The Borrower shall maintain documentation substantiating
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compliance with affirmative marketing requirements. These Project records shall be made
available to the City, U.S. Department of Housing and Urban Development and/or representatives
of the Comptroller General of the United States for audit, inspection, or copying purposes during
normal business hours. The Owner shall maintain project records that include:
(a) A description of the Project assisted with HOME funds, including the location and form
of HOME assistance.
(b) The source and application of funds for each project, including supporting
documentation in accordance with 2 CFR § 200.302 and § 200.303.
(c) Records demonstrating the homeownership project meets the minimum per-unit subsidy
in accordance with 24 CFR § 92.205(c) and § 92.250(a) and subsidy guidelines adopted
in accordance with 24 CFR §92.250(b).
(d) Records demonstrating the Project meets the property standards in accordance with 24
CFR § 92.251 and the lead-based paint requirements in accordance with 24 CFR §92.355.
(e) Records demonstrating the person or persons purchasing the Assisted Unit is income
eligible in accordance with 24 CFR § 92.203.
(f)
(g)
Records demonstrating the purchase price or estimated value after construction for the
homeownership project does not exceed 95% of the median purchase price for the area
in accordance with 24 CFR § 92.254.
Records demonstrating the Project meets the affordability requirements of 24 CFR §
92.254 for the required period.
(h) Records demonstrating compliance with the written agreements in accordance with
24 CFR § 92.504.
(i)
Records demonstrating compliance with the applicable uniform administrative
requirements in accordance with 24 CFR § 92.505.
(j) Records documenting required inspections, monitoring reviews and audits, and the
resolution of any findings or concerns.
(k) Records documenting equal opportunity and fair housing requirements in accordance
with 24 CFR Part 100 Fair Housing Act and certifications according to 24 CFR § 91.225,
§91.325, and §91.425 (certifications).
(1)
(m)
Records documenting HOME -related financial activities.
Records documenting affirmative marketing and Minority Business Enterprise/Woman
Business Enterprise (MBE/WBE) activities.
14. Monitoring. The Borrower shall permit the City or its designee to inspect all records pertaining
to the Assisted Unit upon reasonable notice and within normal working hours and shall submit to
the City such documentation, as required by the City, to document compliance with this
Agreement and HOME Program rules. If the Project is new construction, the Borrower shall
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provide the required documentation monthly, until the Assisted Unit is sold.
15. Successors Bound. This Agreement and the covenants contained herein shall run with the land
and shall bind, and the benefits shall inure to, respectively, the Borrower and its successors and
assigns and all subsequent owners of the project or any interest therein, and to the City for the
Period of Affordability set forth in this Agreement.
16. Enforcement of Terms. The benefits of this Agreement shall inure to, and may be enforced by,
the City during the Period of Affordability, whether or not the City shall continue to be the holder
of the Mortgage, whether or not the project loan may be paid in full, and whether or not any bonds
issued for the purpose of providing funds for the project are outstanding.
17. Conflict of Interest. The Borrower warrants that no person who exercises or exercised any
functions or responsibilities with respect to HOME activities, or who is in the position to
participate in decisions or gain inside information, may obtain a financial interest or benefit from
a HOME activity; or have an interest in any contract, subcontract, or agreement for themselves or
for persons with business or family ties.
18. Personal Responsibility and Work Opportunity Reconciliation Act. Pursuant to 8 U.S.C. §
1611, Developer shall ensure that any non -U.S. citizen that receives a Federal public benefit
relating to the Assisted Unit is a qualified alien as defined under 8 U.S.C. § 1641(b) unless an
exemption applies.
19. Conditions of Religious Organizations. HOME funds may be used for rehabilitation or
construction of housing that is owned by primarily religious organizations and to assist primarily
religious organizations in acquiring housing provided the agreement includes the conditions
prescribed in 24 CFR §5.109 for the use of HOME funds by religious organizations.
20. OMB Guidance for Federal Financial Assistance. If the owner of the Project is a not-for-profit
organization, the owner agrees to comply with applicable federal administrative requirements and
provisions of 2 CFR Part 200 for government entities, or applicable provisions of 2 CFR Part 200
Subpart E for non-profit entities.
21. Severability. The invalidity of any clause, part, or provision of this Agreement shall not affect
the validity of the remaining portion thereof.
22. 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.
23. Defaults and Remedies. If the Borrower shall fail to observe or perform any covenant, condition,
or agreement contained herein on its part to be observed or performed, then and in such event, the
City shall be entitled to after providing written notice of default and thirty (30) days to cure, in
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addition to all other remedies provided by law or in equity:
(a) To compel specific performance by the Borrower of its obligations under this Agreement,
it being recognized that the beneficiaries of Borrower obligations hereunder cannot be
adequately compensated by monetary damages in the event of Borrower's default.
(b) To cause the Borrower to pay to the City an amount equal to all HOME funds loaned to
Borrower, less any principal balance previously repaid by Borrower, if any HOME -assisted
unit is knowingly or negligently rented to persons who do not comply with the
requirements for such unit.
(c) In addition, to these remedies, a default by the Borrower hereunder shall constitute a default
under the Construction Loan Agreement, the HOME Investment Partnerships Agreement,
Mortgage, and Note (all of even date herewith), which will enable the City, after notice
and an opportunity to cure as therein provided, to accelerate the Borrower's loan and take
such other actions as may be permitted under the terms of the aforementioned documents.
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.
(CITY SIGNATURE PAGE)
Approved as to Form:
Matthew J. Mytych, Esq.
Assistant City Attorney
Date:
37027,2C
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City of Clearwater, Florida,
a Florida municipal corporation.
Jen i i er Poirrier
City Manager
r
Date: 31 3111p
Attest:
Rosemarie Call
City C1eIk
Date:
(BORROWER SIGNATURE PAGE)
Witness
Print Name
Address
Witness
Print Name
Address
STATE OF FLORIDA
COUNTY OF PINELLAS
)
)
Clearwater Neighborhood Housing Services,
Inc., a Florida not-for-profit corporation.
By:
Name: Efrain Cornier, Jr.
Title: President and CEO
Date:
The foregoing instrument was acknowledged before me by means of ❑ physical presence or 0 online
notarization, this day of , 2026, by Efrain Cornier, Jr. as President
and CEO 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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EXHIBIT "A"
LEGAL DESCRIPTION
Parcel Number: 10-29-15-65718-004-0011
Legal Description: The North 1/2 of Lot 1, Block D, Palm Park (Addition to Clearwater), according to the
map or plat thereof, as recorded in Plat Book 4, Page(s) 86, of the Public Records of Hillsborough County,
Florida, of which Pinellas County was formerly a part.
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