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HomeMy WebLinkAbout25369AGREEMENT INFORMATION AGREEMENT NUMBER 25369 NAME/TYPE OF AGREEMENT DFI MUNDY, LLC DESCRIPTION DECLARATION OF RESTRICTIVE COVENANTS/CONSTRUCTION OF 2 FOUR-PLEXES 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 DECLARATION OF RESTRICTIVE COVENANTS FOR DFI MUNDY (NIIAMI FOR EVERYONE FUNDS) This Declaration of Restrictive Covenants for DFI Mundy (the "Covenant") made this 31 st day of December, 2024 by DFI MUNDY, LLC, a Florida limited liability company (hereinafter referred to as "Project Sponsor"), is in favor of the CITY OF MIAIVII, a municipal corporation of the State of Florida (hereinafter referred to as the "City"). RECITALS WHEREAS, the Project Sponsor is the fee simple owner of the properties legally described in Exhibit "A," attached and incorporated hereto; and WHEREAS, the Project Sponsor hereby agrees and covenants that the following described property shall be subject to the provisions, covenants, and restrictions contained herein; and WHEREAS, this Covenant is made for the express benefit of the City of Miami, ("City") a Florida municipal corporation. It shall remain in full force and effect until released by the City; and WHEREAS, the City has loaned $450,000.00 in Miami For Everyone MFE funds to Project Sponsor ("Loan") in order to payoff CDBG Grant funds used to purchase the properties legally described in Exhibit "A," attached and incorporated hereto, and to develop the Project, as more particularly described below; and WHEREAS, the Project Sponsor is developing a project that will, among other things, increase the supply of rental housing units for Low Income Households in the community to be known as DFI MUNDY (hereinafter referred to as the "Project"), which consists of the new construction of two (2) four-plexes located at 3173 Mundy Street, Miami, FL 33133 and 3121 Mundy Street, Miami, FL 33133 (hereinafter referred to as the -"Property"), as legally described in Exhibit "A." The Project consists of a total of eight (8) residential apattuuent units, all of which will be MFEMFE-assisted units (the "MFEMFE-Assisted Units"), developed on the Property and are all subject to the terms, covenants, and restrictions contained in this Covenant; and WHEREAS, the City's allocation of funds for the Project is subject to that certain Miami For Everyone Loan Agreement for DFI Mundy (the "Loan Agreement") and other loan documents Page 1 of 7 of even date herewith between the City and the Project Sponsor (collectively the "Loan Documents"); and WHEREAS, Project Sponsor desires to make a binding commitment to assure that the MFE Assisted Units and the Property in general are maintained and operated in accordance with the provisions of the Loan Documents and this Covenant; and WHEREAS, Project Sponsor, as a condition for receiving the Loan funds for the Property is required to record in the Public Records this Covenant obligating the Project Sponsor, its successors, transferees, and assigns to maintain and operate the Property in accordance with the Loan Documents; and WHEREAS, the Project Sponsor hereby declares that this Covenant shall be and is a covenant running with the Property and, unless released by the City, is binding on the Property for the entire Affordability Period, and is not merely a personal covenant of the Project Sponsor; and NOW THEREFORE, Project Sponsor voluntarily covenants and agrees that the MFE Assisted Units and the Property in general shall be subject to the following restrictions that are intended and shall be deemed to be covenants running with the land and binding upon Project Sponsor, and its heirs, successors and assigns as follows: Section 1. Recitals: 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 Project shall be developed on the Property and all of the Project's eight (8) units shall be MFE Assisted Units. MFE Assisted Units shall remain Affordable during the thirty (30) year Affordability Period. The Project's eight (8) MFE Assisted units shall remain affordable to a person or household whose annual income does not exceed eighty percent (80%) of the median income for the area, as determined by the FHFC with adjustments for smaller and larger families and with certain exceptions as provided by FHFC Low Income Households for the period of time commencing on the Close -Out of the Project and ending thirty (30) years thereafter (the "Expiration of the Affordability Period"). The City Assisted Units shall be comprised as follows: eight (8) three-bedroom/two-bathroom units for Low Income Households whose annual income does not exceed eighty percent (80%) of the median income for the area; as determined by the FHFC with adjustments for smaller and larger families and with certain exceptions as provided by FHFC. "Low Income Household" shall mean a household whose annual income does not exceed eighty percent (80%) of the median income for the area, as determined by the FHFC, with adjustments and certain exceptions as provided by FHFC. Section 3. Term of Covenant: This Covenant is a covenant running with the land. This Covenant shall remain in full force and effect and shall be binding upon the Project Sponsor, its successors and assigns from the Effective Date until the Expiration of the Affordability Period. The Affordability Period of this Project will be thirty (30) years commencing on Close -Out of the Project. Upon the Expiration of the Affordability Period, this Covenant shall immediately lapse and be of no further force and effect without the necessity of any other written document or instrument. Notwithstanding the foregoing, upon the Expiration of the Affordability Period, the City shall prepare for recording an instrument evidencing the expiration of and other termination of this Covenant in the Public Records of Miami -Dade County, Florida. Section 4. Prohibited Conveyances: Other than as provided in the Loan Agreement, the Project Sponsor covenants and agrees not to encumber or convey its interest in the Project, Page 2 of 7 Property, or any portion thereof, without prior written consent as required by the Loan Agreement. For the purposes of this Covenant, any change in the ownership or control of the Project Sponsor, which is not permitted under the Loan Documents, shall be deemed a conveyance of an interest in the Project. Section 5. Repayment Upon Default: The Project Sponsor covenants and agrees that in the event (i) of the sale or conveyance of any interest in the Project and/or the Property without prior written consent as required by the Loan Documents (except as otherwise provided in the Loan Documents), 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 the full amount of Loan funds disbursed and outstanding, with interest thereon as provided in the Note, and all unpaid fees, charges and other obligations of the Project Sponsor due under any of the MFE Loan Documents. Section 6. 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 to determinewhether the conditions of this Covenant are in compliance, subject to the rights of Residential tenants under their leases. Section 7. Amendment and Modification: This Covenant may be modified, amended, or released as to any portion of the Property by a written instrument executed on behalf of the City and the Project Sponsor. 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, as necessary in order to comply with the City's MFE Requirements. Section 8. Definitions: All capitalized terms not deemed herein shall have the meanings provided in the MFE Loan Agreement. 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. Section 11. Deed Restriction/Covenant Running with the Land. Any and all requirements of the laws of the State of Florida that must be satisfied in order for the provisions of this Covenant to constitute a deed restriction and covenant running with the land shall be satisfied in full, and any requirements or privileges of estate are intended to be satisfied, or in the alternate, an equitable servitude has been created to insure that these restrictions run with the land. For the term of this Covenant, each and every contract, deed, or other instrument hereafter executed conveying the Property or portion thereof shall expressly provide that such conveyance is subject to this Covenant, provided, however, that the covenants contained herein shall survive and be effective regardless of whether such contract, deed, or other instrument hereafter executed conveying the Property or portion thereof provides that such conveyance is subject to this Covenant. Section 12. Governing Law and Venue. This Covenant 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 Covenant 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 Page3 of7 take place in this venue. The parties both waive any defense that venue in Miami -Dade County is not convenient. [Signature Page Follows] [Remainder of page intentionally left blank.] Page 4 of 7 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. WITNESSES: Print Name: U Print Name: m/ //67//l elz 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, a Florida limited liability company BY: DRAGONFLY INVESTMENTS, LLC, a Florida limited liability company, its manager ACKNOWLEDGMENT eisselberger Title: Manager The foregoing instrument was acknowledged before me by means of C4hysical presence or O online notarization, this �1�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 (NOTARY PUBLIC SEAL) JULIE QUITTNER Commission #HH181787 My Commission Expires October 5, 2025 as identification. Siddature of Person Taking Acknowledgment (Printed, Typed, or Stamped Name of Notary Public) Serial Number, if any Page 5 of 7 ATTESTED: odd B. H City Clerk STATE OF FLORIDA COUNTY OF MIAMI-DADE CITY OF MIAMI, a municipal corporation of the State of Florida By: ei 7 G�'c...t.-s( o'rt hur Noriega City Manager The foregoing instrument was acknowledged before m by means of O physical presence or Cl ?1F online notarization, this 3d'' day of (e�„b� , 2024 by a ,-. as City Manager for the City of Miami, a municipal corporation of the State of Florida, on b�efiali"of the municipal corporation. Heks,Iie- is personally known to me or has produced as identification. (NOTARY PUBLIC SEAL) Approved by Housing and Community Development Department: A G41 Victor T. Turner Director Approved as to legal form and correctness: George'Wysong III. City Attorney Xk/t a23-oWyC �Li.-6lc-G. . nature of rso.n Ta ing Acknowledgment C f f{ 1,. M I CK04 3 (Printed, Typed, or Stamped Name of Notary Public) Serial Number, if any Notary Public State of Florida 1 Tania L. Mickens My Commission anHH 198792 Exp.11/15/2025 Page 6 of 7 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTIES DFI Mundy 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. a5uct Page 7 of 7