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HomeMy WebLinkAbout25367AGREEMENT INFORMATION AGREEMENT NUMBER 25367 NAME/TYPE OF AGREEMENT DFI MUNDY, LLC DESCRIPTION RENT REGULATORY AGREEMENT/CONSTRUCTION COSTS OF 8 RESIDENTIAL UNITS 3173 MUNDY ST & 3121 MUNDY ST, MIAMI, FL 33133/MATTER ID: 23-2476/#55 EFFECTIVE DATE December 31, 2024 ATTESTED BY TODD B. HANNON ATTESTED DATE 12/30/2024 DATE RECEIVED FROM ISSUING DEPT. 12/30/2024 NOTE Prepared by: Xavier E. Alban, Esq. Assistant City Attorney, City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 Tel: (305) 416-1800 After recording return to: Dollila Pinkhasov Property Manager City of Miami Department of Housing and Community Development 14 N.E. 1st Avenue, Second Floor Miami, FL 33132 Property Address: 3173 Mundy Street, Miami, FL 33133; 3121 Mundy Street, Miami, FL 33133 RENT REGULATORY AGREEMENT FOR DFI MUNDY (MIAMI FOR EVERYONE FUNDS) This RENT REGULATORY AGREEMENT ("Regulatory Agreement") is entered into this 31 st day of December, 2024, between DFI MUNDY, LLC, a Florida limited liability company (hereinafter referred to as "Borrower") and the CITY OF MIAMI (hereinafter referred to as the "City"). The execution of this Regulatory Agreement by the Borrower is in connection with the loan of Miami For Everyone ("MFE") funds, (the "Loan"), secured by certain loan documents to be executed in connection therewith (the "Loan Documents"), for the payoff of CDBG Grant funds used to purchase the Property, as defined below, the acquisition of land, and hard construction costs so that Borrower can construct a total of eight (8) residential units. All eight (8) residential apartment units will be MFE-assisted units (the "MFE-Assisted Units") in a project known as DFI Mundy ("Project"). The Project is located on 3173 Mundy Street, Miami, FL 33133 and 3121 Mundy Street, Miami, FL 33133, as legally described in Exhibit "A" (hereinafter referred to as the "Property"). (hereinafter referred to as the "Project"). In accordance with the requirements set forth in (i) that certain Miami For Everyone Loan Agreement to be executed by the Borrower and the City for the MFE funds (the "Agreement" or "Loan Agreement"), and (ii) the other Loan documents of even date therewith between the Borrower and the City, all eight (8) of the Project units are considered "MFE-Assisted" and all of the MFE-Assisted Units are subject to the restrictions provided herein. Borrower hereby agrees to the following terms, conditions and covenants until the end of the Affordability Period: (1) Occupancy Requirements. The eight (8) MFE-Assisted Units shall be occupied only by Low Income Households. MFE-Assisted units shall be made available to tenants who qualify under the occupancy requirements of Florida Housing Finance Corporation and fit the income requirements. Low Income Household, for the purposes of this Regulatory Agreement, shall mean households whose annual incomes that do not exceed eighty percent (80%) of the median income for the area (e.g. Miami - Dade County Florida), as determined by Florida Housing Finance Corporation and adjusted for family size. (2) Maximum Rent Levels. The rents charged on all of the MFE-Assisted Units shall be as follows: Page 1 of 9 No. of MFE- No. of Bedrooms AMI Category Rent Maximum* Assisted Units 1 3 60% $1,770 1 3 65% $1,918 1 3 70% $2,065 2 3 75% $2,213 3 3 80% $2,361 * Change yearly per HUD-FHFC rent limits The foregoing maximum rents include tenant paid utilities. Maximum rents will be reduced for the amount of the applicable HUD Utility Allowance for any utilities paid by the tenant. In no event will the monthly rent on an MFE-Assisted Unit exceed thirty percent (30%) of the applicable percentage of area median income set forth in Paragraph 1 above. Rents shall not be adjusted for changes in income or HUD published maximums until lease renewal. In the event that the MFE Assisted Units are also benefitted from a federal or state rent subsidy program, then the rents outlined above may be set at the applicable rent standard established by that rent subsidy program in compliance with 24 CFR 252 (b)(2). The Borrower shall make reasonable best efforts to maintain the MFE-Assisted Units mix listed in the chart in this subsection. However, the Borrower may modify the MFE- Assisted Units mix listed in this subsection if necessary to ensure the economic viability of the project after the first (1St) year of the Affordability Period, but in no event shall any of the rents charged on all eight (8) of the MFE-Assisted Units exceed eighty percent (80%) AMI. In the event that the Borrower determines it needs to update or modify the unit mix, Borrower shall provide the City with ten (10) calendar days written notice and said notice shall contain a brief description of the reason for the modification to the MFE-Assisted Unit Mix, the updated MFE-Assisted Unit Mix, the AMI for each unit, and maximum rent to be charged for each unit. The aforementioned written notice shall be provided in every instance the MFE-Assisted Unit mix is updated or modified. Notwithstanding the foregoing, the Borrower will make reasonable best efforts to maintain the MFE-Assisted Unit mix listed in the chart in this subsection throughout the Affordability Period and to return to the original MFE- Assisted Unit mix identified in the chart in this subsection (3) Income Re -certification. Tenant income for MFE-Assisted Units shall be certified by the Borrower annually on the anniversary of each tenant's lease and maintained in the tenant file, subject to inspection by the City, in accordance with Paragraph 9 of this Regulatory Agreement. (4) Deposits and Pre -payments. Borrower shall not require, as a condition of occupancy or leasing of any MFE-Assisted Unit, any other consideration or deposit from the tenant, except for the prepayment of one month's rent and plus a security deposit not to exceed one additional month's rent. Page 2 of 9 (5) Prohibited Lease Provisions. The Borrower's leases for MFE-Assisted Units shall not contain any of the following provisions: a. Agreement to be sued. A tenant lease may not contain a provision whereby the tenant agrees to be sued, admits guilt or consents to judgment in favor of the landlord in a lawsuit brought in connection with the lease. b. Agreement regarding treatment of property. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may take, hold or sell personal property of the tenant household without notice and a court decision. This prohibition does not apply to personal property remaining in the WE -Assisted Unit after the tenant has moved out. c. Waiver of notice. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may institute a lawsuit without notice to the tenant. d. Waiver of legal proceedings. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may evict the tenant or a household member without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. e. Waiver of a jury trial. A tenant lease may not contain a provision whereby the tenant agrees to waive any right to a jury trial. f. Waiver of right to appeal a court decision. A tenant lease may not contain a provision whereby the tenant agrees to waive the tenant's right to appeal or otherwise challenge in court a court decision in connection with the lease. Agreement to pay legal costs, regardless of outcome. A tenant lease may not contain a provision whereby the tenant agrees to pay attorney's fees or other legal costs even if the tenant wins the court proceeding brought by the landlord against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. g. h. Excusing owner from responsibility. A tenant lease may not contain a provision whereby the tenant agrees not to hold the landlord or the landlord's agents legally responsible for any action or failure to act, whether intentional or negligent. (6) Annual Reporting. Each year, on the anniversary of the issuance of the certificate of occupancy/certificate of completion for the Project, and at other times at the request of the City, the Borrower shall furnish occupancy reports in a form approved by the City, and shall provide the City with such other information as may be requested by the City relative to income, expenses, assets, liabilities, contracts, operations, and condition of the Project and/or the WE -Assisted Units. (7) Inspections. The Borrower agrees to submit the WE -Assisted Units to an annual re -inspection to insure continuing compliance with all applicable housing codes, federal and local housing quality standards and regulatory requirements. The Borrower will be furnished a copy of the results of each inspection within thirty (30) calendar Page 3 of 9 days of completion, and will be given thirty (30) calendar days thereafter to correct any deficiencies or violations. At any time otherthan an annual inspection, the City may, in its discretion, inspect any MFE-Assisted Unit. The Borrower and the tenant will be provided with the results of the inspection and the time and the method of compliance and corrective action that must be taken. (8) Record -keeping. The Property, including the MFE-Assisted Units, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records, documents, and other papers relating thereto shall at all times be maintained in reasonable condition for proper audit and shall be subject to examination and inspection at any reasonable time by the City. Borrower shall keep copies of all written contracts and other instruments which affect the MFE-Assisted Units, all or any of which may be subject to inspection and examination by the City. Specifically, the foregoing includes all records, calculations and information necessary to support tenant occupancy eligibility and monthly rental charges in addition to all leases and written notices to tenants with respect to the terms of this Regulatory Agreement, as required by Paragraph 12 of this Regulatory Agreement. (9) Default. Upon the occurrence of a violation of any provision of this Regulatory Agreement, the City shall give written notice thereof to the Borrower, by registered or certified mail, addressed to the Borrower's address as stated in this Regulatory Agreement, or to such other address(es) as may subsequently, upon appropriate written notice thereof to the City, be designated by the Borrower. In the case of a Borrower which is a corporation or partnership, notices may also be sent by the City to the address of the corporation's chief executive officer or to all general partners, as applicable, at the City's discretion. If such violation is not corrected to the City's satisfaction, within thirty (30) calendar days after the date such notice is mailed, or within such further time as the City reasonably determines is necessary to correct the violation, without further notice the City may declare a default under this Regulatory Agreement and under the Agreement and the Loan Documents executed in connection therewith, and may proceed to initiate any or all remedies at law or in equity provided for in the event of a default under such agreements and Loan Documents. All notices under this Regulatory Agreement shall be in writing and addressed as follows: To City: With Copy To: City of Miami Department of Housing and Community Development 14 NE 1 Avenue, 2nd Floor Miami, Florida 33132 Attn: Victor T. Turner, Director George K. Wysong III City Attorney City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 Page 4 of 9 To Borrower: With Copy to: DFI Mundy LLC c/o Registered Agent 19790 W Dixie Hwy, PH 3 Miami, FL 33180 Haber Law, LLP 251 NW 23 Street Miami, FL 33127 Attn: David Podein, Esq. Email: DPODEIN@HABER.LAW Website: WWW.HABER.LAW (10) Fines. Upon the occurrence of a violation of any provision of this Regulatory Agreement, and regardless of the nature of the violation, the City will assess a flat monthly fine in the amount of Fifty and 00/100 Dollars ($50.00) per MFE-Assisted Unit that is the subject of such violation up to a maximum of Five Thousand and 00/100 Dollars ($5,000.00) per month, for each month the violation is not corrected, and pay same over to the City. The remedy for violation provided in this section of this Regulatory Agreement is cumulative with any and all remedies at law or in equity provided in the event of a default under this Regulatory Agreement and/or the Loan Documents. (11) Tenant Notice. Borrower agrees during the term of this Regulatory Agreement, to furnish each tenant of a MFE-Assisted Unit, at the execution or renewal of any lease or upon initial occupancy, if there is no lease, with a written notice in the following form: The rent charged for your apartment and the services included in that rent are subject to a Rent Regulatory Agreement between the landlord and the City of Miami, for the term of the Affordability Period. A copy of the Rent Regulatory Agreement will be made available by the landlord to each tenant upon request. If there is no lease for a MFE-Assisted Unit, Borrower shall maintain a file copy of such notice delivered to the tenant, with a signed acknowledgement of receipt by the tenant. All such notices to tenants will be made available for inspection upon request by the City. (12) No Conflict with Loan Documents. The provisions of this Regulatory Agreement are in addition to, and do not amend, alter, modify, or supersede in any respect, the provisions of the mortgage and/or any of the other Loan Documents executed in connection with the Loan. (13) Partial Invalidity. The invalidity of any paragraph or provision of this Regulatory Agreement shall not affect the validity of the remaining paragraphs and provisions hereof. (14) Term. This Regulatory Agreement shall be effective until the expiration of the Affordability Period. On the expiration of such period, this Regulatory Agreement shall immediately lapse and be of no further force and effect without the necessity of any Page 5 of 9 other written document or instrument. Notwithstanding the foregoing, upon such expiration, the Borrower shall be permitted to prepare and record an instrument evidencing the expiration of and other termination of this Regulatory Agreement in the Public Records of Miami -Dade County, Florida. (15) Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings provided in the Regulation and/or in the Loan Documents. (16) Exclusion of Commercial Spaces. Notwithstanding anything to the contrary in this Regulatory Agreement or in the Agreement, it is expressly understood and agreed that the Regulation and all other terms, conditions, restrictions, and requirements of this Regulatory Agreement shall exclude, and shall not apply to, or otherwise restrict or affect, the operation, maintenance, leasing, improvement, base rent and other additional rent determination and collection, and all other aspects of the Borrower's management, leasing, and ownership of all or any portion of the commercial and retail spaces located in the Project, if applicable. (17) Severability. Invalidation of one of the provisions of this Regulatory Agreement by judgment of Court shall not affect any of the other provisions of the Covenant, which shall remain in full force and effect. (18) Recordation. This Regulatory Agreement shall be filed of record among the Public Records of Miami -Dade County, Florida, at the sole cost and expense of the Owner. (19) Governing Law and Venue. This Regulatory Agreement shall be construed and enforced pursuant to the laws of the State of Florida, excluding all principles of choice of laws, conflict of laws and comity. Any action pursuant to a dispute under this Regulatory Agreement must be brought in Miami -Dade County and no other venue. All meetings to resolve said dispute, including voluntary arbitration, mediation, or other alternative dispute resolution mechanism, will take place in this venue. The parties both waive any defense that venue in Miami -Dade County is not convenient. (20) Counterparts. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute but one and the same Agreement. The parties shall be entitled to sign and transmit an electronic signature of this Agreement (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Any party providing an electronic signature agrees to promptly execute and deliver to the other parties an original signed Agreement upon request. (21) Attorney's Fees. In the event litigation, arbitration, or mediation, between the parties hereto, arises out of the terms of this Regulatory Agreement, each party shall be responsible for its own attorney's fees, costs, charges, and expenses through the conclusion of all appellate proceedings, and including any final settlement or judgment. [Signature Page Follows] Page 6 of 9 This REGULATORY AGREEMENT has been executed and delivered as of the day and year first above written. WI $ ESSSES: Print Name•OA l`��/ T$4 Print Name: (4r 47MM-A PROJECT SPONSOR'S ADDRESS: DFI MUNDY, LLC 19 West Flagler Street Suite 1001 Miami, FL 33130 Attention: Irving Weisselberger STATE OF FLORIDA } COUNTY OF MIAMI-DADE } SS: PROJECT SPONSOR: DFI MUNDY, LLC, liability company BY: DRAGONFLY LLC, a Florida company, its manager By: ACKNOWLEDGMENT a Florida limited INVESTMENTS, limited liability g Weisselberger Title: Manager The foregoing instrument was acknowledged before me by means of ysical presence or O online notarization, this. o ®` day of December, 2024 by Irving Weisselberger as Manager of Dragonfly Investments, LLC, a Florida limited liability company, the manager of DFI Mundy, LLC, a Florida limited liability company. He is personally known to me or has produced as identification. (NOTARY PUBLIC SEAL) JULIE QUITTNER Commission #HH181787 My Commission Expires October 5 2025 S(gnature of Person Taking Acknowledgment (Printed, Typed, or Stamped Name of Notary Public) Serial Number, if any Page 8 of 10 ATTEST: d B. Ha City Clerk Date: 1a.130a.0a,LI/ Approved by Housing and Community Development Department: / Victor T. Turner Director APPROVED AS TO FORM AND CORRECTNESS: George ' ysong III City Attorney XI R CITY: CITY OF MIAMI, a municipal corporation of the State of Florida By: Arthur Noriega V City Manager Page 9 of 10 Exhibit A Legal Description of the Properties Legal Description of 3121 Mundy Street, Miami, FL 33133: Lot 12, of CHARLES M. MUNDY SUBDIVISION, according to the Plat thereof, as recorded in Plat Book 15, at Page 29, of the Public Records of Miami -Dade County, Florida. Legal Description of 3173 Mundy Street, Miami, FL 33133: Lot 5, of Charles M. Muncy, a subdivision, according to the Plat thereof, as recorded in Plat Book 15, Page 29, of the Public Records of Miami -Dade County, Florida. Page 9 of 9