LAND USE RESTRICTION AGREEMENT - HOME-AMERICAN RESCUE PLAN PROGRAMPrepared 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—AMERICAN RESCUE PLAN PROGRAM
THIS LAND USE RESTRICTION AGREEMENT (this "Agreement") is made on July 29, 2026,
by and between HOMELESS EMERGENCY PROJECT, INC. a Florida not-for-profit corporation,
d/b/a Homeless Empowerment Program ("Borrower"), whose mailing address is 1120 North Betty Lane,
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 has acquired and intends to develop real property located at 1718 N. Betty
Lane Clearwater, FL 33755 (the "Property") for the construction of thirty-five (35) rental units as described
herein, and agrees with the City that the Property, which is subject to a subordinate mortgage and note
executed on even date with this Agreement (the "Note" and "Mortgage" respectively), shall be subject to
the restrictive covenants set forth herein; and
WHEREAS, Borrower agrees that the restrictive covenants shall remain in full force and effect
against the real property until the end of a fifteen (15) -year period of affordability; and
WHEREAS, this Agreement shall be recorded by the City in the Official Public Records of Pinellas
County, Florida, and shall constitute a valid restriction upon the use of the Property.
NOW, THEREFORE, in consideration of a loan the City has provided through the HOME -
American Rescue Plan Program (the "HOME -ARP Program") to Borrower in the aggregate amount of One
Million Three Hundred Ninety -One Thousand Nine Hundred Thirty -Eight Dollars and 00/100 Cents
($1,391,938.00) (the "Loan) to finance the construction of five (5) HOME -ARP assisted units (the "Assisted
Units") within the above -referenced development (the development of the Assisted Units through the Loan
is hereafter referred to as the "Project"), including closing costs, and other related cost as associated with
the Project located at the Property, the parties hereto agree as follows:
I. Recitals. The recitals set forth above are true and correct and incorporated herein by reference.
2. Acknowledgement. Borrower acknowledges that this Agreement is necessary to comply with the
affordability requirements of the HOME -ARP Program. Borrower covenants and agrees that in
connection with the City's financing of a portion of the construction costs of the Project, that the
City shall have the right to approve any transfer or sale of the Property prior to the expiration of
the Period of Affordability as more particularly set forth herein.
3. Legal Description. The Property is legally described as indicated in Exhibit "A" attached hereto.
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4. Covenants and Restrictions on Use of Funds. The Loan provided by the City for the Project will
be used for a portion of the construction of the real property plus permissible closing costs.
5. Period of Affordability. The period of affordability shall commence upon completion of the
Project as evidenced by a certificate of occupancy and end (15) fifteen years thereafter (the "Period
of Affordability").
6. Restriction on Affordable Unit. During the Period of Affordability, one (1) of the five (5) Assisted
Units (the "Affordable Unit") shall be rented to a person or family having annual income that 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.
7. Restriction on Qualified Units. During the Period of Affordability, four (4) of the five (5) Assisted
Units (the "Qualified Units") must be held available for rental on a continuous basis to persons or
families who, at the commencement of occupancy by each tenant of such unit, meet one of the
following conditions:
• Homeless, as defined in section 103(a) of the McKinney-Vento Homeless Assistance Act,
as amended (42 U.S.C. 11302(a)) ("McKinney-Vento");
• At risk of homelessness, as defined in section 401 of McKinney-Vento;
• Fleeing, or attempting to flee domestic violence, dating violence, sexual assault, stalking,
or human trafficking;
• Part of other populations where providing supportive services or assistance would prevent
a family's homelessness or would serve those with the greatest risk of housing instability;
or
• Veterans and families that include a veteran family member that meet the criteria in one
of 1.-4. above
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.
8. Maximum Rents for Affordable Unit. Pursuant to 24 CFR § 92.252(a), rents charged to a tenant
in the Affordable Unit rent shall not exceed the lesser of: (i) The fair market rent for existing
housing for comparable units in the area as established by HUD under 24 CFR § 888.111; or (ii)
30 percent (30%) of the adjusted income of a family whose annual income equals 65 percent (65%)
of the median income for the area, as determined by HUD. Notwithstanding the foregoing, when a
household receives a form of Federal tenant -based rental assistance, the rent is the rent permissible
under the applicable rental assistance program.
9. Maximum Rents for Qualifying Units. Rents charged to tenants in Qualifying Units shall not
exceed rent limits established HUD Notice CPD -21-10. Rents must be affordable to the Qualifying
Populations and shall be set at a level not greater than thirty percent (30%) of the adjusted income
of a household whose annual income is equal to or less than fifty percent (50%) of the median
income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit.
HUD publishes the HOME -ARP rent limits on an annual basis.
Notwithstanding the foregoing, a Qualifying Unit that receives a Federal or state project -based
rental subsidy and is occupied by a qualifying household that pays as a contribution to rent no more
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than thirty percent (30%) of the household's adjusted income, may charge the rent allowable under
the Federal or state project -based rental subsidy program (i.e., the tenant rental contribution plus
the rental subsidy allowable under that program). If a household receives tenant -based rental
assistance, the rent is the rent permissible under the applicable rental assistance program.
10. Production or Preservation of Affordable Housing. The Assisted Units shall be "floating units"
with such term having its common meaning in the context of the HOME Investment Partnerships
Program. Units that are not restricted to occupancy by the Qualifying Populations are subject to
income targeting and rent requirements established under the HOME -ARP Rental Program rules
and are only permitted in projects with rental units restricted for occupancy by qualifying
populations.
11. Notification of Maximum Rents and Overpayments. The City shall annually notify Borrower of
the maximum allowable rents. In the event that Borrower charges rent in excess of the maximum
allowable amount, Borrower shall immediately reimburse the affected tenant(s) for any
overpayment, with interest, from the date of the overpayment. Rent adjustments may occur no more
than once annually and must be consistent with HUD requirements.
12. Utilities and Services. The City shall provide the Clearwater Housing Authority's approved
allowances for utilities and services and update the allowances annually. The City shall review and
approve the rents proposed by Borrower, subject to the HOME -ARP rent limitations. For units
where the tenant is paying utilities and services, the City must determine that the rent for the unit
does not exceed the maximum rent minus the monthly allowance for utilities and services.
13. The Qualifying Units must be occupied by households that met the definition of a Qualifying
Population at the time of initial occupancy. The household's contribution toward rent during this
period must be affordable in accordance with Section VI.B.14 of HUD Notice CPD -21-10. The
rents for these units must comply with the rent limitations established in HUD Notice CPD -21-10,
including the rent provisions specified in 24 CFR § 92.252(h)(2) for households whose income
increases above eighty percent (80%) of AMI and whose contribution to rent complies with the
requirements in Section VI.B.15 of HUD Notice CPD -21-10.
14. The Affordable Unit must be continuously occupied by a household who is income eligible. The
rents for this unit must comply with the rent limitations established in HUD Notice CPD -21-10,
including the rent provisions specified in 24 CFR § 92.252(h)(2) for households whose income
increases above eighty percent (80%) of AMI.
15. Borrower shall comply with the affordability and use restrictions required under 24 CFR §92.252
for the Affordable Unit and HUD Notice CPD -21-10 for the Qualifying Units.
16. Affordable Unit Compliance. At initial occupancy, the Affordable Unit must be occupied by
households that meet the definition of low-income in 24 CFR § 92.2. If a tenant's income increases
above the applicable low-income limit during the compliance period, the Affordable Unit will be
considered temporarily out of compliance. Noncompliance requires the City to take action in
accordance with the rent and unit mix requirements in Sections VI.B.15 and VI.B.17 of HUD
Notice CPD -21-10.
17. Qualifying Unit Compliance. A Qualifying Unit serving a qualifying household remains in
compliance with the HOME -ARP unit restriction as long as the Qualifying Unit is occupied by a
qualifying household that met the definition of a Qualifying Population at the time of admission.
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18. Project -Specific Waitlist. In selecting tenants for the Assisted Units, Borrower shall use a project -
specific waitlist in accordance with the Project Waitlist Plan as referenced in the HOME -ARP
Agreement executed on even date herewith.
19. Property Standards. Pursuant to 24 CFR § 92.251, all housing that is newly constructed with
HOME -ARP funds must meet all applicable State and local codes, ordinances, and zoning
requirements. Additionally, HOME -ARP assisted new construction projects must meet State or
local residential and building codes, as applicable or, in the absence of a State or local building
code, the International Residential Code or International Building Code (as applicable to the type
of housing) of the International Code Council. The Project must meet these requirements upon
project completion.
20. No Material Changes. 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 Units or any
provision of this Agreement.
21. No Discrimination. 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 Units or in
connection with the employment or application for employment of persons for the operation and
management of the project.
22. Affirmative Marketing Efforts. Borrower shall adopt appropriate procedures for affirmatively
marketing the Qualifying Units and the Affordable Unit. Affirmative marketing consists of good
faith efforts to provide information and otherwise to attract to the available housing, eligible
persons from all racial, ethnic, and gender groups in the housing market area. Borrower shall be
required to use affirmative fair housing marketing practices in soliciting renters, determining
eligibility, concluding transactions, and affirmatively further fair housing efforts. Borrower must
maintain a file containing all marketing efforts (i.e. copies of newspaper ads, memos of phone calls,
copies of letters, etc.) to be available for inspection on request by the City. Borrower must provide
a description of intended actions that will inform and otherwise attract eligible persons from all
racial, ethnic, and gender groups in the housing market of the available housing. Borrower must
provide the City with an assessment of the affirmative marketing program. 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 participating entity and/or owner to affirmatively market units; and
records to assess the results of these action.
23. Environmental Reviews. Borrower agrees to comply with all applicable provisions of the
National Environmental Policy Act (NEPA), HUD environmental regulations in 24 CFR Part 58,
and state or local environmental laws.
24. Displacement. In accordance with 24 CFR § 92.353, Borrower shall ensure that no person will be
displaced from his or her dwelling as a direct result of activities assisted with HOME -ARP Program
funds provided in connection with this Agreement.
25. Labor. Borrower shall be responsible for maintaining the prevailing wage rates for HOME -
assisted projects with twelve (12) or more units in accordance with the Davis -Bacon Act (40 U.S.C.
276a -276a-5).
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26. Lean -Based Paint. Borrower shall be responsible for maintaining that the Assisted Units meet the
requirements listed in the Lead -Based Paint Poisoning Prevention Act and 24 CFR Part 35.
27. No Conflicts with Other Documents. 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.
28. Records. Borrower shall retain all records pertaining to the Project for a period of five (5) years
after audit and/or resolution of audit findings involving the Loan. Borrower shall maintain accurate
information regarding the occupancy for the Assisted Units during 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. Borrower shall maintain documentation substantiating 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.
Borrower shall maintain project records that include:
A. Accurate information regarding the occupancy and contract rents for each tenant of the
Assisted Units;
B. Documentation demonstrating compliance with Affirmative Marketing requirements
relating to the Assisted Units;
C. Evidence of tenants' Qualifying Population status (e.g. homeless, at risk of homelessness,
domestic violence/sexual assault/human trafficking, or other Qualifying Population);
D. Documentation necessary to demonstrate proof of income for tenants in the Assisted Units;
E. A rent reasonableness sheet;
F. Lease agreements or occupancy documents for tenants of the Assisted Units;
G. Documentation and evidence demonstrating property standards compliance; and
H. Confidentiality and privacy compliance records.
29. Record Inspection. Borrower shall permit the City or its designee to inspect all records pertaining
to the Assisted Units 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 -ARP Program rules. If the Project is new construction, Borrower shall provide the
required documentation monthly, until the construction is complete.
30. Compliance Monitoring of the Project. Compliance monitoring of the Project shall be a
responsibility of Borrower, to be performed by a compliance monitor as approved by the City. The
compliance monitor shall be responsible for monitoring Borrower's compliance with restrictions
regarding the use or occupancy of the Project, and ensure that all requirements are being satisfied
on a continuing basis in accordance with this Agreement. In the event that the compliance monitor
shall ever resign, be removed, or otherwise, in the opinion of the City, fail to perform the duties of
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the compliance monitor, Borrower shall, at the direction of the City, hire a successor compliance
monitor. The compliance monitor shall:
A. Conduct an initial briefing with the Property manager and upon any change in the
entity responsible for management of the Project, with such new entity, regarding
procedures for filing tenant income certification forms, and compliance
certificates, and for verifying income of tenants.
B. Provide annual summary report to the City detailing the ratios of Assisted Units
occupied by income eligible tenants as required by this Agreement.
C. Conduct on-site audits of the Project's tenant records and document all findings to
ensure compliance with applicable regulations, terms and conditions.
D. Review rent rolls to ensure monthly rents are in compliance with HOME income -
based rent limits.
E. Examine leases to ensure that all occupants of the Assisted Units are listed, and
that the lease is current and fully executed.
F. Verify annual re -certifications are performed in a timely manner.
G. Review the certification procedures to verify that record retention requirements are
being met and the Assisted Units are not occupied until properly certified.
H. Inspect the Assisted Units for compliance with local codes and housing quality
standards.
I. Prepare Management Review Summary documenting conclusions of monitoring
visit, incorporate findings of non-compliance discovered during compliance
review and recommend corrective actions, as required.
J. Provide copies of Management Review to Borrower and the City.
The compliance monitoring duties of Borrower or the compliance monitor, as the case may be,
shall continue until all restrictions under this Agreement expire.
31. 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 Property and the Project or any interest therein, and to the City
for the Period of Affordability.
32. Enforcement of Terms. The benefits of this Agreement shall inure to, and may be enforced by,
the City during the Affordability Period, whether or not the City shall continue to be the holder of
the Mortgage, whether or not the Loan may be paid in full, and whether or not any bonds issued
for the purpose of providing funds for the Project are outstanding.
33. Conflicts of Interest. Borrower warrants that no person who exercises or exercised any functions
or responsibilities with respect to HOME -ARP 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 -ARP
activity; or have an interest in any contract, subcontract, or agreement for themselves or for persons
with business or family ties.
34. Personal Responsibility and Work Opportunity Reconciliation Act. Pursuant to 8 U.S.C. §
1611, Borrower shall ensure that any non -U.S. citizen that receives a Federal public benefit relating
to the Assisted Units are a qualified alien as defined under 8 U.S.C. § 1641(b) unless an exemption
applies.
35. Conditions of Religious Organizations. HOME -ARP funds may be used for rehabilitation or
construction of housing that is owned by primarily religious organizations and to assist primarily
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religious organizations in acquiring housing provided the agreement includes the conditions
prescribed in 24 CFR § 5.109 for the use of HOME -ARP funds by religious organizations.
36. 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.
37. Severability. The invalidity of any clause, part, or provision of this Agreement shall not affect the
validity of the remaining portion thereof.
38. 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.
39. Default and Remedies. If 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
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 obligations hereunder cannot be
adequately compensated by monetary damages in the event of Borrower's default.
B. To cause Borrower to pay to the City an amount equal to all HOME -ARP funds loaned to
Borrower, less any principal balance previously repaid by Borrower, if any 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 Borrower hereunder shall constitute a default
under the Construction Loan Agreement, the HOME -ARP 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 Borrower's loan and take such other actions as may
be permitted under the terms of the aforementioned documents.
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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: 77,l ?a6
City of Clearwater, Florida,
a Florida municipal corporation.
Jenni -r P. ier
City Manager 3
Date:
Attest:
kAi\ a1-1l2109(n
-FUV Rosema ie all
Day Clerk` O1h1P
Date: U 9,14 t
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(BORROWER SIGNATURE PAGE)
Signature of Witness
Homeless Emergency Project, Inc.,
a Florida not-for-profit corporation.
Name of Witness (Print) By: Ashley Lowery, President/CEO
Address of Witness
Signature of Witness
Name of Witness
Address of Witness
STATE OF FLORIDA )
COUNTY OF PINELLAS)
The foregoing instrument was acknowledged before me by means ❑ physical presence or 0 online
notarization, this _ day of , 2026 by Ashley Lowery, as President/CEO of Homeless
Emergency Project, Inc., who 0 is/are personally known to me or 0 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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EXHLBIT "A"
LEGAL DESCRIPTION
COMMENCE AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE
SOUTHEAST QUARTER OF SECTION 3, TOWNSHIP 29 SOUTH, RANGE 15 EAST, PINELLAS
COUNTY, FLORIDA, FOR A POINT OF REFERENCE; THENCE N00°07'03"W, 758.00 FEET;
THENCE N89°36'07'W, 30.00 FEET TO THE POINT OF BEGINNING; THENCE S00°07'03 "E., 563.03
FEET; THENCE N52°37"00"W, 239.48 FEET; THENCE N00°07'03"W, 418.95 FEET; THENCE
S89°36'07"E, 190.00 FEET TO THE POINT OF BEGINNING LESS ALL OF THE ROAD RIGHT OF
WAY OF BETTY LANE AND OVERBROOK AVENUE.
Parcel I.D. No.: 03-29-15-00000-430-0400
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