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HomeMy WebLinkAboutCRA-R-21-0036 County Required Rent Regulatory Agreement111111111111111111111111111111111111111111111 This Instrument Was Prepared By: Legal Services of Greater Miami, Inc. 3000 Biscayne Boulevard, Ste 500 Miami, FL 33137 Record and Return to: Brenda Kuhns Neuman Miami -Dade County Attorney's Office 111 N.W. 1st Street, Suite 2810 Miami, Florida 33128 Property Address: 1445 NW 3rd Avenue Miami, FL Folio: 01-3136-051-0470 (:FN 2O16Ro 28693 OR BK 30224 Pss 4659--4672 (14F`as) RECORDED 09/09/2016 14:0:i1:23 HARVEY (iVIN CLERK OF COURT MIAMI—OAOE COUNTY! FLORIDA MIAMI-DADE COUNTY RENTAL REGULATORY AGREEMENT WHEREAS, pursuant to Resolution No. R-165-13 and R-686-14adopted by the Miami -Dade County Board of County Commissioners, on March 5, 2013 and July 15, 2014 respectively, MIAMI- DADE COUNTY (hereinafter referred to as the "County") is authorized to loan EIGHT HUNDRED TWELVE THOUSAND ONE HUNDRED SEVENTEEN AND 00/100 DOLLARS ($812,117.00), of (hereafter referred to as the "County Loan") to ST. JOHN COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida non-profit corporation, its heirs, successors and assigns (hereinafter referred to as the "Owner") for the purposes outlined and pursuant to the conditions set forth in the Promissory Note, Mortgage and Security Agreement, Assignment of Leases, Rents and Profits, the Loan Agreement, and the 2016 HOME Agreement between the County and the Owner and the Note in favor of the County executed simultaneously with this Rental Regulatory Agreement (the "Agreement") (hereinafter referred to as "Loan Documents"); and WHEREAS, in connection with receipt of the County Loan, the Owner agrees to maintain the rents at certain prescribed rates, as set forth in this Agreement; and WHEREAS, the County has funded this loan with Home Investment Partnerships ("HOME") funds, however at the County's discretion at any time, including after this Agreement is recorded, the County may use a another funding source to fund the County Loan, and in that event this Agreement shall endure in its entirety regardless of the funding source ultimately used to fund the County Loan, NOW, THEREFORE, for and in consideration of Ten dollars ($10.00), the promises and covenants contained in this Agreement and for other good and valuable consideration received and acknowledged this day of September, 2016, the Owner, whose address is 1324 NW 3rd Avenue, Miami, Florida 3313 , its successors and assigns, and Miami -Dade County, a political subdivision of the State of Florida (the "County") having a principal address of 111 N.W. 1 st Street, Miami, Florida 33128, through its Public Housing and Community Development Department (PHCD), or successor department, hereby agree as follows: 1 PROPERTY ADDRESS: LEGAL DESCRIPTION OF PROPERTY: The real property legally described and attached hereto in Exhibit A and located in Miami -Dade County (hereinafter referred to as the "Property") Dwelling Units: 10 units (the "Units"). These are HOME -assisted residential units which shall be governed by this Agreement. Rents: High HOME Rents: Low HOME Rents: Utility Allowance: Affordable: Rent shall mean rent plus utilities or the utility allowance, as described in 24 C.F.R. 92.252(a), as may be amended from time to time. Maximum Rents and maximum monthly allowances for utilities and services shall be established by PHCD. Allowances for utilities and services shall be updated annually by PHCD. The lesser of: (a) fair market value for existing housing for comparable units in the area as established by United States Department of Housing and Urban Development ("HUD") under 24 C.F.R. 888.111; or (b) rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the Unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. Rent which meets one of the following requirements: (a) the rent does not exceed 30 percent of annual income of a family whose income equals 50 percent of area median income, as determined by HUD, with adjustments for smaller and larger families; or (b) the rent does not exceed 30 percent of the family's adjusted income; however, if the unit receives federal or state project -based rental subsidy and the very low- income family pays a contribution toward rent not more than 30 percent of the family's adjusted income, then the maximum rent (i.e., tenant contribution plus project -based rental subsidy) is the rent allowable under the federal or state project -based rental subsidy program. In no event shall the Low HOME Rent be higher than the High HOME Rent. The County shall establish maximum monthly allowances for utilities and services (excluding telephone) and update the allowances annually. Rent, as defined herein, which does not exceed the High HOME Rent, as defined herein. WITNESSETH: 2 I. Owner agrees with respect to the Property for the period beginning on the date of recordation of the Loan Documents, and ending on the last day of the thirtieth (30th) year after the year in which the Project is completed, that: a) All Units shall be Affordable. For projects with five (5) or more HOME -assisted units, at least 20%, or 2, of the Units must have Rents which are less than or equal to the Low HOME Rents and must be occupied by families whose annual incomes do not exceed 50% of Area Median Income, as determined by U.S. HUD. The remaining 8 of the Units must be leased to families with incomes at or below 60% AMI and must have rents which are less than or equal to the High HOME Rents. Pursuant to Section 504 of the Rehabilitation Act, Owner shall design at least 5% of the Units, or at least one Unit, whichever is greater, to meet Uniform Federal Accessibility Standards ("UFAS) or a standard that is equivalent or stricter, for persons with mobility disabilities; and 2% of the Units, or at least one (1) Unit, whichever is greater, must be accessible for persons with hearing or visual disabilities. Accordingly, the maximum initial approved rental rates for this property are indicated in Exhibit B attached hereto. b) This Agreement shall be a recorded restrictive covenant on the Property, and all buildings and other improvements constructed or to be constructed thereon (collectively, the "Project"). The subject matter of this Agreement and the covenants set forth herein touch and concern the Property. It is the intent of the parties that this Agreement and the covenants set forth herein run with the Property. This Agreement shall be binding on the Property, the Project, and all portions thereof, and upon any purchaser, grantee, transferee, owner or lessee or any portion thereof, and on the heirs, executors, administrators, devisees, successors and assigns of any purchaser, grantee, owner or lessee and on any other person or entity having any right, title or interest in the Property, the Project, or any portion thereof, for the length of time that this Agreement shall be in force. Owner hereby makes and declares these restrictive covenants which shall run with the title to said Property and be binding on the Owner and its successors in interest, if any, for the period stated in the preamble above, without regard to payment or satisfaction of any debt owed by Owner to the County or the expiration of any Contract between the Owner and the County. c) The Units shall include the following services to each unit: The above rentals will include the following services to each unit: Low-VOC paint for all interior walls (50 grams per liter or less for flat paint; 150 grams per liter or less for non -flat paint); Water Sense certified faucets and toilets and shower heads with flow of 2.2 gallons per minute or less in all bathrooms; code compliant impact windows and doors in all units; Window treatment/ covering for each window and glass door inside each unit; Termite prevention and pest control throughout the entire affordability period; Entrance door must have two peepholes, one at standing eye level and one at seated eye level, not more than 43 inches from bottom of door; Over the range Microwave and for the ADA units on the counter; Exterior lighting in open and common areas; Ceramic tiles throughout the entire unit; Air conditioning units with a 3 minimum SEER rating of 14; Cable or satellite TV hook-up in each unit and if the Development offers cable or satellite TV service to the residents, the price cannot exceed the market rate for service of similar quality available to the Development's residents from a primary provider of cable or satellite TV; Full-size range, oven and Energy Star qualified refrigerator in all units; At least two full bathrooms in all 3 bedroom or larger new construction units; Double Bowl kitchen sink in all units, undermount if granite countertops are used ;Garbage Disposal in all units; ceramic tile bathroom floors and marble window sills in all units; Steel exterior entry door frames in all units. New kitchen cabinets with granite counter top(s) or comparable in all units -new or rehab, new bathroom cabinet(s, excluding medicine cabinet, in all units new or rehab) all cabinets must be wood. New plumbing fixtures in kitchen and bathroom(s) in all rehabilitation units, (minimum of new sink and facets in kitchen and minimum of new tub, sink and faucets in bathroom(s)). Each kitchen area shall have a pantry with no less than 20 cubic feet of storage space. The Development shall have the following amenities: gated community with "carded" or "touchpad" entry or security guard, or if 2 or more stories, "carded" or "touchpad" secure entry to each building. d) Owner agrees that upon any violation of the provisions of this agreement, the County, through its agent PHCD, may give written notice thereof to the Owner, by registered mail, at the address stated in this agreement, or such other address or addresses as may subsequently be designated by the Owner in writing to PHCD, and in the event Owner does not cure such default (or take measures reasonably satisfactory to PHCD to cure such default), within thirty (30) days after the date of notice, or within such further time as PHCD may determine is necessary for correction, PHCD may, without further notice, declare a default under the Mortgage and/or this Agreement, and effective upon the date of such default, PHCD may: i) Declare the whole indebtedness under the Note evidencing the Loan immediately due and payable and then proceed with foreclosure of the Mortgage; ii) Apply to any court, County, State or Federal, for any specific performance of this agreement; for an injunction against the violation of this agreement; or for such relief as may be appropriate since the injury to PHCD arising from a default remaining uncured under any of the terms of this agreement would be irreparable, and the amount of damage would be difficult to ascertain. e) Owner further agrees that it will, during the term of this Agreement: furnish each resident at the time of initial occupancy, a written notice that the rents to be charged for the purposes and services included in the rents are approved by the County pursuant to this Agreement; that they will maintain a file copy of such notice with a signed acknowledgment of receipt by each resident; and, that such notices will be made available for inspection by the County during regular business hours. 9 f) Owner agrees that the Units shall meet the energy efficiency standards promulgated by the Secretary of the United States Department of Housing and Urban Development (hereafter "HUD"). g) Owner agrees that all residential tenant leases of the Units shall (a) be for an initial term of not less than one year, (b) be renewed at the end of each term except for good cause or mutual agreement of Owner and residential tenant. h) Owner agrees to operate the Dwelling Units in accordance with the federal regulations governing the HOME program, specifically 24 C.P.R. Part 92 (the "Home Regulations"). The Horne Regulations include tenant protections as set forth in 24 C.F.R. 92.253, which Owner shall comply with and which are attached for reference as Exhibit "C". II. PHCD shall establish maximum monthly allowances for utilities and services (excluding telephone) and update the allowances annually. Owner agrees that it shall not charge Rent to any tenant in a Unit which exceeds the High HOME Rent, as defined herein. PHCD and Owner agree that Rents may increase as median income increases in accordance with new maximum HOME Rents published by HUD. All adjustments to Rents may be made only with the written consent of the County (and HUD if applicable), in the County's and HUD's sole and absolute discretion. Owner understands and acknowledges that it has no right or interest in a Rent amount increase, and that Rent limitations are a material part of the consideration for the County loan of HOME funds, and without such limitations the County would not have loaned the funds. Owner will provide documentation to justify a rental increase request. Within thirty (30) days of receipt of such documentation, PHCD will approve or deny, as the case may be, in its sole and absolute discretion, all or a portion of the rental increase. PHCD will provide Owner with information on updated HOME rent limits so that rents may be adjusted (not to exceed the maximum HOME rents III. Except as otherwise noted, all parties expressly acknowledge that PHCD shall perform all actions required to be taken by Miami -Dade County pursuant to Paragraphs 4, 5, 6 and 7, hereof for the purpose of monitoring and implementing all the actions required under this Agreement. In addition, thirty (30) days prior to the effective date of any rental increase, the Owner shall furnish PHCD with notification provided to tenants advising them of the increase. IV. Occupancy Reports. The Owner shall, on an annual basis, furnish PHCD with an occupancy report, which provides the following information: A) A list of all occupied apartments, indicating composition of each resident family, as of the end date of the reporting period. 5 B) A list of all vacant apartments, as of the end date of the reporting period. C) The total number of vacancies that occurred during the reporting period. D) The total number of Units that were re -rented during the reporting period, stating family size and income. E) The Owner shall upon written request of PHCD allow representatives of PHCD to review and copy any and all of tenant files, including but not limited to executed leases and tenant income information. V. Inspections Pursuant to 42 U.S.C. § 12755, the Owner shall maintain the Property in compliance with all applicable federal and local housing quality standards, receipt of which is acknowledged by the Owner, including those contained in Sec. 17-1, et seq., Code of Miami -Dade County, pertaining to minimum housing standards (collectively, "Housing Standards"). A) PHCD shall annually inspect the Property, including all Dwelling Units and common areas, to determine if the Property is being maintained in compliance with federal Housing Quality Standards and any applicable state, municipal or Miami -Dade County Minimum Housing Codes or Housing Standards. The Owner will be furnished a copy of the results of the inspection within thirty (30) days, and will be given thirty (30) days from receipt to correct any deficiencies or violations of the property standards of the Dade County Minimum Housing Codes or Housing Standards. B) At other times, at the request of the Owner or of any tenant, PHCD may inspect any unit for violations to the property standards of any applicable federal, state, municipal or Miami -Dade County Minimum Housing Codes or Housing Standards. The tenant and the Owner will be provided with the results of the inspection and the time and method of compliance and corrective action that must be taken. C) The dwelling units shall contain at least one bedroom of appropriate size for each two persons. VI_ Lease Agreement, Selection Policy and Management Plan Prior to initial rent -up and occupancy, the Owner will submit the following documents to PHCD: A) Proposed form of resident application. B) Proposed form of occupancy agreement. C) Applicant screening and tenant selection policies. D) Maintenance and management plan which shall include the following 6 information: 1. A schedule for the performance of routine maintenance such as up -keep of common areas, extermination services, etc. 2. A schedule for the performance of non -routine maintenance such as painting and reconditioning of dwelling units, painting of building exteriors, etc. 3. A list of equipment to be provided in each dwelling unit. 4. A proposed schedule for replacement of dwelling equipment. 5. A list of tenant services, if any, to be provided to residents. The Owner agrees that the County has the right to refer eligible applicants for housing. The Owner shall not deny housing opportunities to eligible, qualified families, including those with Section 8 Housing Choice Vouchers, unless the Owner is able to demonstrate a good cause basis for denying the housing as determined by PHCD in its sole and absolute discretion Pursuant to the Miami -Dade Board of County Commissioners' Resolution No. R-34-15, the Owner, its agents and/or representatives, shall provide written notice to the County related to the availability of rental opportunities, including, but not limited to, the number of available units, bedroom size, and rental prices of such rental units at the start of any leasing activity, and after issuance of certificate of occupancy. The Owner, its agents and/or representatives shall also provide the County with the contact information for the Owner, its, agents and/or representatives. VII. Financial Reports A) Annually, the Owner shall transmit to the County a certified annual operating statement showing project income, expenses, assets, liabilities, contracts, mortgage payments and deposits to any required reserve accounts (the "Operating Statement"). PHCD will review the Operating statement to insure conformance with all provisions contained in this Agreement. B) The Owner will create a reserve for maintenance to be funded $300 per unit per year. This reserve may be combined with reserve accounts required by any other parties making loans to Owner and will be deemed satisfied by any deposits made by Owner in accordance with loan documents $300 per unit per year. VIII. Action By or Notice to the County Unless specifically provided otherwise herein, any action to be taken by, approvals made by, or notices to or received by the County required by this Agreement shall be taken, made by, given or delivered to: Public Housing and Community Development 701 N. W. 1 Court l4`;' Floor Miami, Florida 33136 Attn: Director 7 Copy to: Miami -Dade County Attorney's Office 111 N.W. 1 Street, Suite 2810 Miami, Florida 33128 Attn: Brenda Kuhns Neuman, Esq. or any of their successor agencies or departments. IX. Recourse: In the event of a default by the Owner under this Agreement, Lender shall have all remedies available to it at law and equity. X. Rights of Third Parties: Except as provided herein, all conditions of the County hereunder are imposed solely and exclusively for the benefit of the County and the United States Department of Housing and Urban Development ("HUD") and their successors and assigns, and no other person shall have standing to require satisfaction of such conditions or be entitled to assume that the County or HUD will make advances in the absence of strict compliance with any or all conditions of County or HUD and no other person shall under any circumstances, be deemed to be a beneficiary of this Agreement or the loan documents associated with this Agreement, any provisions of which may be freely waived in whole or in part by the County or HUD at any time if, in their sole discretion, they deem it desirable to do so. In particular, the County or HUD make no representations and assume no duties or obligations as to third parties concerning the quality of the construction by the Owner of the Property or the absence therefrom of defects. XI. Conflict with Other County Rental Regulatory Agreements: Where the terms, conditions and obligations set forth in this Rental Regulatory Agreement conflict with another Rental Regulatory Agreement on the Property executed between Owner and the County, the terms, conditions and obligations set forth in this Agreement shall prevail. SIGNATURES APPEAR ON FOLLOWING PAGES 8 IN WITNESS WHEREOF, County and Owner have caused this Agreement to be executed on the date first above written. STATE OF FLORIDA COUNTY OF MIAMI-DADE } } } OWNER: By: ST. JOHN COMMUNITY DEVELOPMENT CORPORATION, INC., a Florida non-profit corporation B Dr. Nelson Adams, Chairperson The foregoing Rental Re ulatory Agreement was sworn to, subscribed and acknowledged before me this /si day of SiArks , 2016, by Dr. Nelson Adams, Chairperson, on be John Community Development Corporation, Inc., a Florida non-profit corporation. He known to mec or has produced identification My commission expires: Notary Public State of Florida at Large 4/4 CHIARA ERANDSTAETTER MY COMMISSION 9 FF190308 EXPIRES Febraary 12, 2019 140/1MOIL% Porlddicarteervica 9 ATTEST: HARVEY RUVIN, C By: DEPUTY CLERK MIAMI-DADE C�O J1 TY� FLORIDA By: 10 RUSSELBENFORD DEPUTY COUNTY MAYOR EXHIBIT "A" Leia1 Description Of The Property Lot 2 and 3, Block 44, of WADDELL'S RESUBDIVISION, according to the Plat thereof as recorded in Plat Book 1 at page 169 of the Public Records of Miami -Dade County, Florida. 11 EXHIBIT B Maximum Initial Approved Rental Rates* Number of Units Type Gross Rent Utility Net Rent 1 50%AMI 2BR/IBath $762 $127 $635 3 60% AMI 2BR/1 Bath $915 $127 $788 1 50%AMI 1Br/lBath $635 $92 $543 5 60% AMI 1Br/lBath $762 $92 $670 * Notwithstanding this Maximum Initial Approved Rental Rate schedule, in no event shall any Rent exceed the High HOME Rent, as defined in this Agreement. At the discretion of the County, up to twenty percent (20%) of the rental units, per project, may be designated for Housing Choice Voucher (Section 8) subsidy, either project -based or tenant -based. The Owner shall not deny housing opportunities to eligible, qualified Housing Choice Voucher (Section 8) applicants referred by the County, unless good cause is documented by the Owner and submitted to the County. NOTE: LOAN DOCUMENT INFORMATION TO BE PROVIDED FOLLOWING RECORDING OF J / MORTGAGE. gg Mort a e Document No: ??©f 52 cb e Date Recorded: Book Number: L} 2 L Page Number: County: MIAMI-DADE State: FLORIDA 12