1537* Habitat for Humanity 0 /5
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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
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or
/o•,,I am L. Colbert, City A ttor Ty
4 40/1/441/b71/. 6 I P a g e
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