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1537* Habitat for Humanity 0 /5 li �C i877-1 TRANSMITTAL MEMORANDUM MEMORANDUM To: City Clerk RE: Request for Services The item(s) noted below is/are attached and forwarded to your office for the following action(s): ❑ Development Order I I Mayor's signature ❑ Final Plat (original mylars) I I Recording Letter of Credit ❑ Rendering I Maintenance Bond ® Safe keeping(Vault) 11 Ordinance Performance Bond Resolution II Once completed,please: ❑ Return original ❑ Return copy Special Instructions: Please retain for the NSP Community Development File—Amendment to the agreement between Habitat for Humanity and The City of Sanford Please advise if you have any questions regarding the above. Thank you! Andrew Thomas 3/5/14 From Date \\SVCH-Omnicast\USERS\mcrayn\Templates\City Clerk Transmittal Memo.doc FIRST AMENDMENT TO DEVELOPER AGREEMENT RFP-10/11-18 BETWEEN THE CITY OF SANFORD AND HABITAT FOR HUMANITY IN SEMINOLE COUNTY AND GREATER APOPKA This First Amendment (the "First Amendment") to that Certain document styled "NSP3 Agreement Between The City Of Sanford And Habitat For Humanity In Seminole County And Greater Apopka" between the City of Sanford (the "City") and Habitat For Humanity In Seminole County And Greater Apopka (the "Developer"), dated August 30, 2012 (hereinafter referred to as the "Initial Agreement"), is made and entered into by the City and the Developer on the last date set forth below. RECITALS: Whereas, the Developer and the City entered into the Initial Agreement; and Whereas,Article VI of the Initial Agreement, and other controlling law, provides that amendments to the Initial Agreement may on be made by formal written amendment to the Initial Agreement to which the parties mutually agree in writing, etc.; and Whereas,the Developer and the City entered into the Initial Agreement in order for the Developer to collaborate with the City in the location, acquisition, rehabilitation and resale of a minimum of 4 single family homes having at least 2 bedrooms in Neighborhood Stabilization Program (NSP) NSP3 targeted neighborhoods within the City and for the City to provide $276,720 in NSP3 funding to the Developer to carry out the Scope of Services (as defined in the Initial Agreement) in accordance with the terms and conditions contained therein utilizing funding received by the City from the United States Department of Housing and Urban Development (HUD) NSP; and 1 I Page Whereas, the Developer and City desire to amend the Initial Agreement and the City's Mortgage, Promissory Note, and Restrictive Covenants Documents pursuant to the authority set forth in Resolution Number 12-107.D; and Whereas, the parties are desirous of amending the Initial Agreement as set forth herein; and Whereas, the current status of the Initial Agreement is such that the parties are in good standing. Now, Therefore, in consideration of the mutual covenants and agreement herein made and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Developer and the City agree as follows: Section 1. Incorporation of Recitals/Covenant. The above recitals (whereas clauses) are true and correct and are incorporated herein by reference. The Developer covenants that the Developer shall be in full compliance with all terms and conditions of the Initial Agreement and this First Amendment. Section 2. Amendments to Initial Agreement. The following provisions of the Initial Agreement are hereby amended to read as follows: (a). With regard to Section I(A)(4)(o), delete the entire title and contents of this subsection which currently reads as follows: "o. Repayment of net proceeds of sale to CITY: Upon sale of an NSP-funded home, DEVELOPER shall return the net proceeds of sale to the CITY by means of a check issued at closing by the closing agent. Net proceeds of sale are defined as follows: i. The sale price of the home; ii. (Minus)the amount of any mortgage assistance and down payment assistance provided to homebuyer, as defined herein and described on the settlement statement; iii. (Minus) DEVELOPER costs of sale as documented by the settlement statement including but, not limited to, real estate broker fees and seller-paid closing costs; 2i Page iv. (Plus)any reimbursements to DEVELOPER of costs previously paid or reimbursed with NSP funds, such as pro-rated taxes and assessments." and replace the text with the following language: "Repayment of NSP3 Funds to CITY Upon sale of an NSP❑funded home, the DEVELOPER shall not receive net sales proceeds. However, NSP3 proceeds may be received through the repayment of NSP3 funds after the sale of the property. Receipt of NSP3 funds through repayments shall be retained by the DEVELOPER to be used for NSP or other affordable housing activities in the following manner: • The DEVELOPER shall establish a sales price for the property which must be the lesser of market value as determined by an appraisal or total development costs (excluding the costs of boarding and maintenance while the property is in a static condition — prior to and after rehabilitation, as applicable) • The DEVELOPER shall then determine the maximum amount of a first mortgage that the buyer qualifies for using the DEVELOPER's underwriting criteria and loan terms. • Issue a Habitat mortgage and promissory note in the amount of the first mortgage that the buyer qualifies for and subject to the amortization schedule established by the DEVELOPER. • Prior to closing on the sale of the NSP3 assisted house to an eligible buyer, submit each completed Habitat mortgage and note to the CITY for review and approval. • Upon receipt of amortized monthly repayments from an eligible buyer or upon the sale of the NSP assisted house during the affordability period to a qualified buyer in accordance with this agreement, the DEVELOPER shall retain and use any proceeds for NSP or other affordable housing activities in the CITY." (b). With regard to Section I (A) (4) (j) Allowed amount of NSP mortgage assistance per unit, delete the following text: "The total amount of mortgage assistance will be secured by a subordinate promissory note and mortgage deed with the DEVELOPER named as lien holder, as a loan made at 0% interest with all payments deferred and the principal amount forgiven over a period of 15 years based on the amount of NSP3 assistance to the homebuyer. Any balance remaining will be due upon sale or transfer of the property during the 15-yearperiod." and replace that text with the following language: "In accordance with affordability requirements in the City's NSP3 Action Plan and in 24 CFR 92.254(a)(5)(i) of the HOME regulations which governs NSP affordability, the 3I Page property is subject to the"resale" approach for maintaining affordability and is subject to a minimum 15-year affordability period. As such, if the housing does not continue to be the principal residence of the initial eligible household for the duration of the period of affordability, the housing must be made available for subsequent purchase only to a buyer whose household income does not exceed 50% of AMI and will use the property as its principal residence. The price at resale must provide the original NSP-assisted owner a fair return on investment(including the homeowner's investment and any capital improvement) and ensure that the housing will remain affordable to a reasonable range of homebuyers at or below 50% AMI. In order to comply with the affordability period, the property shall also be secured by a land use Restrictive Covenant during the affordability period requiring that NSP assisted property shall be resold to a family with a household income of 50% AMI or below. The DEVELOPER shall be responsible for ensuring that the initial buyer executes the restrictive covenant and record same in favor of the CITY. The form and substance of the land use restrictive covenant shall be provided by the CITY and is incorporated in this NSP3 agreement by reference." (c). With regard to Section III (A) and the "Program Budget,"the amount of NSP funding allocated shall be changed from "$276,720.00" to "$305,493.95". (d). With regard to Exhibit B, Section II relating to Administrative Requirements, Subsection B. Documentation and Recordkeeping, 2. Records to Be Maintained, the following language and subsection shall be added: "2(i). Annual records showing the receipt of mortgage payments or net sales proceeds from NSP assisted houses and the subsequent reuse of said funds for NSP assisted or other affordable housing benefiting families with incomes at or below 120%AMI for the length of the affordability period." (e). With regard to Exhibit B, Section II relating to Administrative Requirements, the following language and subsection shall be added: "F: Use of Mortgage Payments and Net Sales Proceeds Notwithstanding subsection E of this part, all mortgage payments received from first mortgages held by the DEVELOPER and net sales proceeds as a result of the use of NSP funds shall be retained by the DEVELOPER and used for subsequent NSP assisted housing or affordable housing for households with incomes at 120% AMI or less." 4 ' Page (f). With regard to Exhibit B, Section II relating to Administrative Requirements (Subsection C. Reporting and Payment Procedures/3. Progress Reports), the following language shall be added: "The DEVELOPER shall provide annual reports showing the amount of mortgage payments received from first mortgages held by the DEVELOPER and net sales proceeds as a result of the use of NSP funds and how those funds were used. The reports shall also include any new housing developed or sold during the report period." Section 3. Effect of First Amendment/Effect of Prior Actions/Entire Agreement. (a). This First Amendment shall take effect upon full execution hereof by the City and the Developer. All other terms and conditions of the Initial Agreement shall apply and shall remain in full force and effect and the Initial Agreement and this First Amendment to the Initial Agreement shall be read in harmony and in pari materia. The parties ratify all actions taken and undertaken in accordance with their performance under the Initial Agreement, as amended, and the Developer agrees, affirms and acknowledges that the City is not in, nor has it been, in any form of breach of any nature whatsoever at any time during the course of the Initial Agreement, as amended. (b). This First Amendment is the entire agreement of the parties regarding the modifications to the Initial Agreement provided herein, and supersedes all prior agreements and understandings regarding such subject matter, and may be modified only by a writing executed by the party against whom the modification is sought to be enforced, and shall bind and benefit the parties and their respective successor, legal representatives and assigns. In Witness Whereof,the Developer and the City have caused these presents to be executed in manner and form sufficient to bind them as of the day and year first above written. 5IPage Attest: Habi at For Humanity eminole / fi / ` /, li fitness Number 1 Authorized • pro ate Officer Or Authorized Corporate Officer W. nes 'Number 2 Or Aut orized Corpora e Officer Acknowledgment State Of Florida ) County Of Seminole ) � q The foregoing instrument was sworn before me this day of.Ma T 2014, by R-e.,nrly&c e✓ , authorized corporate officer of Habitat For Humanity In Seminole County And Greater Apopka, who ispersonally known to me or who has produced his/her drivers license (number ) as identification and who did take an oath. NOTARY PUBLIC o`a`r° Notary Public State of Florida •' . Kelly L Pisdotta I• ,���(�"(,, OF° My Commission EE040125 Printed N_ -: - e( - t 5U oi-t c �F�� ex�res o,i,sno,s �•-� � y My commission expires on: I. 15.1.5 Attest: City Of Sanford 0a-o, By: Cynt is Porter, City Clerk Norton N. B arte, Jr. City Manager • � y Date: "3 For the use and reliance of City of Sanford only. A• tved as to form an. Ie•kl AffF ilif 1 /OP ' filir s •ii.i.0:0,0.,. ...A aro ‘ i or /o•,,I am L. Colbert, City A ttor Ty 4 40/1/441/b71/. 6 I P a g e 4ZA--