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HomeMy WebLinkAbout25381AGREEMENT INFORMATION AGREEMENT NUMBER 25381 NAME/TYPE OF AGREEMENT MIAMI-DADE COUNTY DESCRIPTION RENT REGULATORY AGREEMENT/HIDEAWAYS BY THE BAY/MATTER ID: 24-3280/#2 EFFECTIVE DATE January 8, 2025 ATTESTED BY TODD B. HANNON ATTESTED DATE 1/8/2025 DATE RECEIVED FROM ISSUING DEPT. 1/8/2025 NOTE Prepared by, and after recording return to: George K. Wysong III, Esq. City Attorney, City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 Tel: (305) 416-1800 Property Address: 10821 Caribbean Boulevard Miami, Florida 33189 RENT REGULATORY AGREEMENT FOR HIDEAWAYS BY THE BAY THIS RENT REGULATO Y AGREEMENT ("Regulatory Agreement") is entered into this $4t" day of b"""1 , 20 , between MIAMI-DADE COUNTY, a political subdivision of the State of Florida (hereinafter referred to as "Borrower") and the CITY OF MIAMI, a municipal corporation of the State of Florida (hereinafter referred to as the "City"). The execution of this Regulatory Agreement by the Borrower is in connection with the loan of HOME Investment Partnerships -American Rescue Plan Act of 2021 ("HOME -ARP") funds, (the "Loan"), secured by certain loan documents to be executed in connection therewith (the "Loan Documents"), for the construction of a total of one hundred seven (107) residential affordable apartment units. Fifty-seven (57) of the residential apartment units will be the HOME - ARP -assisted units ("HOME -ARP Assisted Units"), in that certain project known as Hideaways by the Bay. The project will be a 4-floor residential building located at 10821 Caribbean Boulevard Miami, Florida 33189 (hereinafter referred to as the "Property" or the "Project"). In accordance with the requirements set forth in (i) that certain HOME -ARP Loan Agreement executed by the Borrower and the City for the HOME -ARP funds (the "Agreement"), and (ii) the other Loan documents of even date therewith between the Borrower and the City, fifty- seven (57) of the total one hundred seven (107) Project units are considered "HOME -ARP - Assisted" and all of the HOME -ARP -Assisted Units are subject to the restrictions provided herein. The fifty-seven (57) HOME -ARP -Assisted Units shall be "floating" units, meaning that they are not specifically designated units, but that any fifty-seven (57) of the total one hundred seven (107) Project units shall be, at any one time, in compliance with HOME -ARP and the requirements set forth herein. Borrower hereby agrees to the following terms, conditions and covenants until the end of the Affordability Period: (1) Occupancy Requirements. The HOME -ARP -Assisted Units shall be made available to tenants who qualify under the occupancy requirements of 24 CFR Part 92, the HOME -ARP guidance, the HOME -ARP Documentation Requirements, and the United States Department of the Treasury's final rule, 31 CFR Part 35, that implements the Coronavirus State Fiscal and Local Fiscal Recovery Funds established under the American Rescue Plan Act of 2021 ("Regulation"). The HOME -ARP -Assisted Units are subject to the restrictions provided therein and herein, including, but not limited to, the following: Fifty-seven (57) of the HOME -ARP Assisted Units shall be occupied by Qualifying Populations and if necessary for Low -Income Households. Low -Income Households have annual incomes that do not exceed sixty-five percent (65%) of area median income, as determined by the U.S. Department of Housing and Urban Development ('HUD") and adjusted for family size. Page 1 of 9 Pursuant to the HOME -ARP guidance and the HOME -ARP Documentation Requirements, a HOME -ARP -Assisted Unit leased by a Qualifying Population Individual or Household may not require an initial determination of household income. Borrower is not required to perform an initial determination of household income to lease a HOME -ARP -Assisted Unit except as necessary to determine an affordable rental contribution by the qualifying household or to establish eligibility for another funding source in the unit that imposes income restrictions. Each subsequent year during the compliance period, starting 1 year after initial occupancy, the Borrower and Project Operator must use the definition of annual income as defined in 24 CFR 5.609 to examine the income of qualifying households to determine the household's contribution to rent. (2) Maximum Rent Levels. The rents charged on all of the HOME -ARP -Assisted Units shall be subject to the Regulation and to the requirements set forth in the table below. Gross monthly rent charged on HOME -ARP -Assisted Units occupied by tenants identified as Qualifying Populations: No. of HOME -ARP- No. of Bedrooms AMI Category Rent Maximum* Assisted Units 57 0 50% $993 Gross monthly rent charged on HOME -ARP -Assisted Units occupied by tenants identified as Low -Income (if applicable) are subject to the rent maximums as follows: No. of HOME- No. of Bedrooms AMI Category Rent Maximum* ARP- Assisted Units 17A 0 65% $1,273 ^ If necessary: up to 17 HOME -ARP -assisted units of 57 total units may be occupied by Low -Income households only upon approval from HCD Director and in conformance with Loan Agreement terms * Change yearly per HUD HOME 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 HOME -ARP -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 HOME -ARP 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). Page 2 of 9 (3) Income Re -certification. Tenant income for HOME -ARP -Assisted Units shall be certified by the Borrower annually in conformance with the specifications in CPD-21- 10 — Subsection VI. B. 12 on the anniversary of each tenant's lease and maintained in the tenant file, subject to inspection by the City, in accordance with this Regulatory Agreement. (4) Tenant Contribution to Rent and Changes in Income. Borrower must ensure that Qualifying Households' contribution to rent is affordable to the qualifying household based on a determination of each household's income. Borrower must comply with CPD-21-10 — Subsection IV. B. 14. Borrower may not terminate or refuse to renew the lease of a qualifying household for experiencing an increase in income. Borrower shall handle any income increases and tenancy terminations in accordance with CPD-21-10 subsection IV. B. 15 and 19 (c), respectively. (5) Deposits and Pre -payments. Borrower shall not require, as a condition of occupancy or leasing of any HOME -ARP -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. (6) Prohibited Lease Provisions. The Borrower's leases for HOME -ARP -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 HOME -ARP -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 g. Page 3 of 9 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. 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. i. Mandatory supportive services. Agreement by the tenant (other than a tenant in transitional housing) to accept supportive services that are offered. .(7) 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 HOME -ARP -Assisted Units. (8) Inspections. The Borrower agrees to submit the HOME -ARP -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) days of completion, and will be given thirty (30) days thereafter to correct any deficiencies or violations. At any time other than an annual inspection, the City may, in its discretion, inspect any HOME -ARP -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. (9) Record -keeping. The Property, including the HOME -ARP -Assisted Units, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records, documents, Tenant Documentation as required under the HOME -ARP Loan Agreement, 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 HOME -ARP -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 this Regulatory Agreement. (10) 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 Page 4 of 9 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) 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 Loan 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 Borrower: With Copies to: Miami -Dade County 111 Northwest 1st Street Miami, FL 33128 Attention: County Mayor Victoria Mallette Miami -Dade Homeless Trust 111 Northwest 1st Street Miami, FL 33128 Miami -Dade County Attorney's Office 111 Northwest 1st Street Miami, FL 33128 Attention: Shannon D. Summerset-Williams Assistant County Attorney To City: City of Miami Department of Housing and Community Development One Flagler Building 14 Northeast 1st Avenue, Second Floor Miami, Florida 33132 Attn: Victor Turner, Director With Copy To: George K. Wysong III Office of the City Attorney, City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 (11) 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 Dollars and no/cents ($50.00) per HOME -ARP - Assisted Unit that is the subject of such violation up to a maximum of Five Thousand Dollars and no/cents ($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 Page 5 of 9 in equity provided in the event of a default under this Regulatory Agreement and/or the Loan Documents. (12) Tenant Lease. Borrower agrees during the term of this Regulatory Agreement, to furnish each tenant of a HOME -ARP -Assisted Unit, at the execution or renewal of any lease or upon initial occupancy with a lease. There must be a lease between the qualifying household or the Low Income Household and the Borrower of the HOME - ARP -assisted Project in accordance with 24 CFR 92.253(a). (13) 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. (14) 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. (15) 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 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. (16) Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings provided in the Regulation and/or in the Loan Documents. (17) Exclusion of Commercial Spaces. Notwithstanding anything to the contrary in this Regulatory Agreement or in the Loan 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. (18) 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. (19) 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 Borrower. (20) 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 Page 6 of 9 in this venue. The parties both waive any defense that venue in Miami -Dade County is not convenient. (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. (22) Counterparts and Electronic Signatures. This Regulatory 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 Regulatory Agreement. The parties hereto shall be entitled to sign and transmit an electronic signature of this Regulatory Agreement (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Any party hereto providing an electronic signature agrees to promptly execute and deliver to the other parties an original signed Regulatory Agreement upon request. [Signature Page Follows] Page 7 of 9 THIS REGULATORY AGREEMENT has been executed and delivered as of the day and year first above written. WITNESSES: Signatures Q:a� Print Name: I lure% deity,Attu_ Add esss: l'3�}a d,,Sup $841av NI 1 a uLu FL 331 s to Signature: V Print Name: ‘7p�j j9 6 0)9 trait: Address: 3 b ropo ._,rr.- For - L cudo 0/4/5 Ft 333)d- STATE OF FLORIDA COUNTY OF MIAMI-DADE PROJECT SPONSOR: MIAMI-DADE COUNTY, a political subdivis'on of the Si. to of Florida By: Print Title ACKNOWLEDGMENT amp: (� (fl i►- kOrCtleS CNN O !in The foregoing instrument was acknowledged before me by means of 71" physical presence or O online notarization, this2day of , 2024 by as at of Miami -Dade County, a political subdivision of the State of Florida. She/He is personally known to me or has produced , as identification. (NOTARY PUBLIC SEAL) ( Y';•.••.., RONALD LEE BOOK I ti Votary ojbdc • State :f %•.ortda '1pE Covnission 6 FF 241777 'rcvn°'' My Camr.., Ensues Mar 17. 2026 ...... 3cn20 tnrcugr 4attcr4I Naar/ 4sn. Signature of Person Taking Acknowledgment (Printed, Typed, or Stamped Name of Notary Public) Serial Number, if any Page 8 of 9 ATTEST: odd B. H City Clerk Date: I/ 8 /ao8 /a0.9,5 APPROVED AS TO FORM AND CORRECTNESS: George K. Wysong III i". City Attorney ctif *1 -3zVD CITY: CITY OF MIAMI, a municipal corporation of the State of Florida da/ Arthur Noriega City Manager Page 9 of 9 Exhibit A Legal Description Of The Property FOLIO NO.: 36-6007-027-0010 Tract A, BUDGETEL AT CARIBBEAN, according to the Plat thereof, recorded in Plat Book 146, Page 20, in the Public Records of Miami -Dade County, Florida. ALSO KNOWN AS: Commence at the Southeast corner of the North 1/4 of the North 1/2 of the Northeast 1/4 of the 1/4 Northeast of said Section 7: thence South 89 degrees 56 minutes 28 seconds West along the South line of the North 1/2 of the 1/2 of the Northeast 1/4 of the Northeast 1/4 of said Section 7 for 549.02 feet; thence South 42 degrees 23 minutes 50 seconds West for 61.59 feet to the Point of Beginning of the parcel of land hereinafter described; thence South 15 degrees 22 minutes 51 seconds= for 104.47 feet; thence South 9 degrees 16 minutes 50 seconds= for 199.35 feet (said last mentioned two courses being coincident with the Westerly Right -of Way lien of the Homestead Extension of Florida's Turnpike State Road No. 821, as shown on Sheet R-6 of the Right -of -Way Map thereof, prepared for Section 87005, Contract 2502, last revised 4-19-71); thence South 80 degrees 43 minutes 10 seconds West at right angles to the last described course for 143.70 feet; thence South 9 degrees 16 minutes 50 seconds = for 195.29 feet (said last mentioned two courses being coincident with the Northerly and Westerly line of "HOLIDAY INN AT CARIBBEAN", as recorded Plat Book 107, at Page 98 of the Public Records of Miami - Dade County, Florida); thence North 47 degrees 37 minutes 17 seconds West for 148.87 feet; thence South 42 degrees 23 minutes 50 seconds West for 150 feet to a point on the Northerly Right -of Way line of Caribbean Boulevard; thence North 47 degrees. 37 minutes 17 seconds West along said Northerly Right -of -Way line of Caribbean Boulevard for 100 feet; thence North 42 degrees 23 minutes 50 seconds East for 167.45 feet more or less to the Southeasterly prolongation of an existing one-story CBS building wall; thence Northwesterly along the Northwesterly face of the afore -described one-story CBS building (and the Northeasterly and Southeasterly prolongation) for 60 feet more or less; thence North 42 degrees 23 minutes 50 seconds= for 395.65 feet to the Point of Beginning, all lying and being in Miami -Dade County, Florida. 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