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HomeMy WebLinkAboutDeclaration Of Restrictive CovenantsThis Instrument Prepared By and Return To: Ilene Temchin, Esq. City of Miami Office of the City Attorney 444 S.W. 2ND Avenue Miami, Florida 33130-1910 DECLARATION OF RESTRICTIVE COVENANTS EXHIBIT E This Declaration of Restrictive Covenants (the "Covenant") made as of the day of , 2006 by Allapattah Business Development Authority, Inc., a Florida not -for - profit corporation (hereinafter referred to as the "Project Sponsor"), is in favor of the City of Miami, a municipal corporation of the State of Florida (hereinafter referred to as the "City"). RECITALS WHEREAS, the Project Sponsor holds title to certain property located in the City of Miami, Florida, as legally described on Exhibit "A" (the "Property"); WHEREAS, the Project Sponsor is building a project, known as the Ralph Plaza II Townhomes (the "Project"), that will increase the supply of Affordable homeownership housing units for Low Income persons and households; and WHEREAS, on July 13, 1998, the City of Miami City Commission approved an allocation in the amount of $500,000 in HOME Investment Partnerships Program ("HOME") funds for such purpose; and WHEREAS, on June 26, 2001, the City's Housing and Commercial Loan Committee approved an additional allocation of $730,000 in HOME funds for such purpose; and WHEREAS, on July 16, 2004, the City of Miami Housing and Commercial Loan Committee approved: (1) the de -obligation of $388,489 in HOME funds for the Project, and, (2) an allocation of Community Development Block Grant ("CDBG") funds in the amount of $815,000.00 for Project pre -development and construction costs; and WHEREAS, on April 28, 2006, the City of Miami Housing and Commercial Loan Committee approved: (1) an allocation of State Housing Initiatives Partnership ("SHIP") funds in the amount of $500,000.00 for Project infrastructure improvements and construction change - orders (the "SHIP Funds"), and (2) the conversion of the previously funded $815,000 CDBG loan to a grant, and, it:Document 47132 1 WHEREAS, the funding commitment of the City to the Project Sponsor for the SHIP Funds is more fully described in that certain State Housing Initiatives Partnership Program Loan Agreement of even date herewith (hereinafter referred to as the "Agreement"); and WHEREAS, in accordance with the requirements of the HOME and CDBG fundings described above, and in accordance with the requirements of the Agreement, the Property must be developed and set -aside for occupancy by low income persons and households; and WHEREAS, the Project Sponsor desires to make a binding commitment to assure that the Property shall be developed in accordance with the provisions of this Covenant. NOW THEREFORE, the Project Sponsor voluntarily covenants and agrees that the Property shall be subject to the following restrictions that are intended and shall be deemed to be covenants running with the land and binding upon the Project Sponsor, and its heirs, successors and assigns as follows: Section 1. The recitals and findings set forth in the preamble of this Covenant are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. Use of Property: The Property and the Project shall be developed and set - aside for occupancy by Low Income persons/households (as defined in the State Housing Initiatives Partnership Program created pursuant to the State Housing Initiative Partnership Act, Sections 420.907-420.9079 of the Florida Statutes) in accordance with the requirements of the Agreement and the other Loan Documents. Section 3. Term of Covenant: This Covenant shall remain in full force and effect and shall be binding upon the Project Sponsor, its successors and assigns for a period of thirty (30) years, commencing, for each Project townhome, on the date of issuance of the certificate of occupancy for such townhome, and ending thirty (30) years from the Project Sponsor's sale of the townhome to the first homebuyer. Section 4. Except as provided in the Agreement, the Project Sponsor covenants and agrees not to encumber or convey any interest in the Project or the Property without prior written consent as required by the Agreement. For the purposes of this Covenant, any change in the ownership or control of the Project Sponsor shall be deemed a conveyance of an interest in the Project/Property. Section 5. The Project Sponsor covenants and agrees that in the event (i) of a conveyance of any interest in the Project or the Property without prior written consent as required by the Agreement, or, (ii) that the Project Sponsor ceases to exist as an organization, the Project Sponsor shall immediately make payment to the City in an amount equal to all funds disbursed pursuant to the Agreement, all interest accrued thereon, any Program Income derived therefrom or in connection therewith, and all other obligations of the Project Sponsor to the City. it:Document 47132 2 Section 6. The Project Sponsor covenants and agrees that for each of the thirty (30) Project townhomes, its deed to the homebuyer shall contain the following restrictive covenant: "This property is subject to the following restrictions and requirements for a period of thirty (30) years from the date of this Deed (the "Affordability Period"): (i) that the property conveyed hereby remain Affordable to a reasonable range of Low Income persons and households, (ii) that a Low Income homebuyer will occupy the property as the individual's/household's principal residence, (iii) that the price at resale to any prospective owner of the property must provide the original owner a fair return on investment, (iv) that any purchaser or other prospective owner of the property during the Affordability Period must be an eligible homebuyer approved by the City of Miami (the "City") with a total annual gross household income that does not exceed 120 percent of area median annual income, and (v) that any resale of this property must include all appliances. Notwithstanding the foregoing, an owner of this property may sell it during the Affordability Period without regard to the restrictions contained in the previous paragraph hereto upon payment to the City in the amount of $44,718.00 (the "Recapture Requirement") and recordation in the Public Records of Miami - Dade County of a Termination of Covenant executed by the City. Capitalized terms not defined herein have the meanings provided in the State Housing Initiatives Partnership Program (Sections 420.907 - 420.9079 of the Florida Statutes) and the State Housing Initiatives Partnership Program Loan Agreement between Allapattah Business Development Authority, Inc. and the City relating to the City's financing for this property." Section 7. Inspection and Enforcement: It is understood and agreed that any official inspector of the City shall have the right any time during normal working hours to enter, and investigate the use of, the Property and/or the Project to determine whether the conditions of this Covenant are being complied with. Section 8. Amendment and Modification: This Covenant may be modified, amended, or released as to any portion of the Property and/or the Project by a written instrument executed on behalf of the City and by the then owner of the fee simple title to the land to be affected by such modification, amendment or release. Should this instrument be modified, amended or released, the City Manager shall execute a written instrument in recordable form to be recorded in the Public Records of Miami -Dade County, Florida, effectuating and acknowledging such modification, amendment, or release. Section 9. Severability: Invalidation of one of the provisions of this Covenant by judgment of Court shall not affect any of the other provisions of the Covenant, which shall remain in full force and effect. Section 10. Recordation: This Covenant shall be filed of record among the Public Records of Miami -Dade County, Florida, at the sole cost and expense of the Project Sponsor. itDocument 47132 3 Section 11. This Covenant is a covenant running with the land and shall terminate on the earlier of: (1) for each townhome in the Project, thirty (30) years from the Project Sponsor's sale of the townhome to the first homebuyer, on which date this Covenant shall lapse and be of no further force and effect as to such townhome, or, (2) upon the recordation of a Termination of Covenant executed by the City. Section 12. All capitalized terms not defined herein shall have the meanings provided in the Agreement. IN WITNESS WHEREOF, the Project Sponsor has caused this Declaration of Restrictive Covenants to be executed by its duly authorized officers and the corporate seal to be affixed hereto on the day and year first above -written. Witness: Print Name: it:Document 47132 Allapattah Business Development Authority, Inc., a Florida not -for -profit corporation By: Xiomara Pacheco, Executive Director Date: 4 ACKNOWLEDGMENTS STATE OF FLORIDA ) ) SS: COUNTY OF MIAMI-DADE ) THE FOREGOING INSTRUMENT was acknowledged before me on this day of 2006 by as of , on behalf of who is personally known to me or who produced as identification and did/did not take an oath. Signature of Notary Public, State of Florida Printed Name of Notary Public My Commission Expires: fT-ABDA-Ralph Plaza II-Covenant-08-16-06 it:Document 47132 5 EXHIBIT A Legal Description of the Property it:Document 47132 6