HomeMy WebLinkAbout25582AGREEMENT INFORMATION
AGREEMENT NUMBER
25582
NAME/TYPE OF AGREEMENT
5215 FLAGLER STREET, LLC
DESCRIPTION
MFB LOAN AGREEMENT/60 AFFORDABLE UNITS
ALLOCATED FOR EXTREMELY LOW INCOME HOUSEHOLDS-
FLAGER VILLAS/FILE ID: 16635/R-24-0373/MATTER ID: 24-
2617/#10
EFFECTIVE DATE
ATTESTED BY
TODD B. HANNON
ATTESTED DATE
5/12/2015
DATE RECEIVED FROM ISSUING
DEPT.
5/15/2025
NOTE
CITY OF MIAMI
DOCUMENT ROUTING FORM a.5.- -
ORIGINATING DEPARTMENT: Housing and Community Development
DEPT. CONTACT PERSON: Maria T Ason MATTER #25-833/#25-850 R. Pereira)
NAME OF OTHER CONTRACTUAL PARTY/ENTITY: 5215 Flagler Street, LLC
IS THIS AGREEMENT A RESULT OF A COMPETITIVE PROCUREMENT PROCESS? ® YES ❑ NO
TOTAL CONTRACT AMOUNT: $2,100,000 FUNDING INVOLVED? ® YES ❑ NO
TYPE OF AGREEMENT:
❑ MANAGEMENT AGREEMENT
❑ PROFESSIONAL SERVICES AGREEMENT
El GRANT AGREEMENT
❑ EXPERT CONSULTANT AGREEMENT
❑ LICENSE AGREEMENT
El PUBLIC WORKS AGREEMENT
❑ MAINTENANCE AGREEMENT
❑ INTER -LOCAL AGREEMENT
0 LEASE AGREEMENT
❑ PURCHASE ORSALEAGREEMENT
OTHER: (PLEASE SPECIFY): Execution of the GOB Loan Agreement and Memo of Ground Lease for new construction of Flagler
Villas.
COMMISSION APPROVAL DATE: FILE ID: ENACTMENT NO.:
IF THIS DOES NOT REQUIRE COMMISSION APPROVAL, PLEASE EXPLAIN: Department of Zoning
%:I..RUTINGINFORMATIO ,N........Da
to
PLEASE PRINT AND/SIGN/
APPROVAL BY DEPARTMENTAL DIRECTOR
_ /
/ (( _
PRINT: Victor Turner,
Tazoe, Assistant Director
SIGNATURE:
Direc ' r/ Roberto
^
SUBMITTED TO RISK MANAGEMENT
s %a ji
_
PRINT: Ann -Marie Sharpe fjP/
SIGNATURE: ' 11
Z ZC21
SUBMITTED TO CITY ATTORNEY �� '�
6-/2f ? �
on I
sII
PRINT: George K. WySIGNA y�
APPROVAL BY ASSISTANT CITY MANAGER
6-4.7 3 -
PRINT: Larry Spri .
SIGNATURE:
.
APPROVAL BY DEPUTY CITY MANAGER
s-' 1 _ 2
PRINT: Natasha 1
SIGNA
oleb,. ok \ i 1i. ms
.'
7 k/ ,,ate
RECEIVED BY CITY MANAGER
q[d 4s.
PRINT: Arthu oriega V
SIGNATURE:
1) ONE ORIGINAL TO CITY CLERK,
2) ONE .COPY TO CITY ATTORNEY'S OFFICE,
3) REMAINING ORIGINAL(S)TO ORIGINATING
DEPARTMENT
PRINT: (
SIGNATURE:
PRINT:
SIGNATURE:
PRINT:
SIGNATURE:
TTACH THIS ROUTING FORM TO ALL DOCUMENTS THAT REQUIRE EXECUTION BY
THE CITY MANAGER
MIAMI FOREVER BOND
LOAN AGREEMENT
FOR 5215 FLAGLER STREET, LLC
This Miami Forever Bond Construction Ready Loan Agreement (this "Loan Agreement"
or "Agreement") for Flagler Villas is dated as of this day of , 2025, by and between
the CITY OF MIAMI, a municipal corporation of the State of Florida (hereinafter the "City" or
"Lender")'and 5215 FLAGLER STREET, LLC, a Florida limited liability company (hereinafter
the "Borrower"). ,
FUNDING SOURCE: MIAMI FOREVER AFFORDABLE HOUSING LIMITED
AD VALOREM BOND FUNDS
AMOUNT: ' Two Million One Hundred Thousand and 00/100 Dollars
($2,100,000.00)
RESOLUTION: The City of Miami Housing and Commercial Loan
Committee approval of March 28, 2023, as amended by
HCLC on September 20, 2024, and on March 26, 2025, and
City of Miami Resolutions No. R- 24-0373 and R- 25-0066
PROJECT NAME: Flagler Villas
PROJECT TYPE: New Construction of a 6-Story Multifamily Rental Building
TERM: See Section 1.27
AFFORDABILITY PERIOD: Thirty (30) years commencing on the Closeout of the
Project
ASSISTED UNITS: Sixty (60) of the Affordable Units shall be GOB -Assisted
Units for eligible individuals and shall be allocated for
Extremely Low Income households (30% AMI)
IDIS NUMBER:
ORACLE NUMBER:
PROPERTY ADDRESS:
5215 West Flagler Street, Miami, Florida 33134
Page 1 of 40
EXHIBITS ATTACHED HERETO AND INCORPORATED HEREIN:
Exhibit A Legal Description
Exhibit B Scope of Work/Project Schedule
Exhibit C Budget
Exhibit D Form of Disbursement Agreement
Exhibit E Affirmative Marketing Procedures and Responsibilities
Exhibit F Signage Requirements
Exhibit G Additional Insurance Requirements
Exhibit H Anti-Human/Trafficking Affidavit
Schedule A Permitted Senior Financing
RECITALS
WHEREAS, the Borrower is the owner of a long-term leasehold estate in the real property
("Property") described in Exhibit "A." The Borrower is constructing a new affordable housing
project to be known as Flagler Villas (the "Project") that will increase the supply of Affordable
rental housing units for Extremely Low income households (30% AMI), by providing additional
affordable rental units.
WHEREAS, on March 28, 2023, September 20, 2024, and as affirmed and modified on
March 26, 2025, the City's Housing and Commercial Loan Committee ("HCLC") approved the
allocation of Miami Forever Affordable Housing Limited Ad Valorem Bond ("Bond") funds in
the amount of Two Million One Hundred Thousand and 00/100 Dollars ($2,100,000.00) of which
up to One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000.00) will be used for
the Project's construction ready costs; and
WHEREAS, on September 26, 2024, the City Commission adopted Resolution No. R-24-
0373 approving the allocation of Bond funds, in accordance with the terms and conditions of the
HCLC Memo, as amended, and thereafter adopted and modified in Resolution No. R-25-0066 on
February 27, 2025 to allocate an amount of Two 'Million One Hundred Thousand and 00/100
Dollars ($2,100,000.00) of which up to One Million, Five Hundred Thousand and 00/100 Dollars
($1,500,000.00) will be allocated for the construction ready costs of the Project; and
WHEREAS, the City and the Borrower intend and agree that the Bond Funds be subject to
the terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the mutual covenants and obligations herein
contained, and subject to the terms and conditions hereinafter stated, the parties hereto understand
and agree as follows:
ARTICLE I
DEFINITIONS
Page 2 of 40
The City and the Borrower hereby agree that the capitalized terms used herein shall have
the meanings set forth below unless the context requires otherwise:
1.1 Affordability Period: The affordability period for this Project shall be thirty (30)
years, commencing on the Close -Out of the Project.
1.2 Affordable: A project or unit that satisfies the requirements set forth in
24 CFR Part 92.
1.3 Assisted Unit(s) or Bond
Assisted Unit(s) or City
Assisted Units:
1.4 Bond Documents or
Loan Documents:
1.5 Bond Funds, or, the
Loan:
1.6 Bond Program:
Of the Project's total sixty (60) units, all sixty (60) units will
be Bond Assisted Units. All sixty (60) Bond Assisted Units
shall be allocated for Extremely Low Income Households.
The payable rents on the Bond Assisted Units are subject to
the Covenant and the Rent Regulatory Agreement. Further
restrictions apply to the Bond Assisted Units as provided in
and this Agreement, the Covenant, the other Loan
Documents and the Legal Requirements, as applicable. The
Bond Assisted Units shall remain Affordable throughout the
Affordability Period.
This Agreement and all other documents that may now or
hereafter evidence or secure the Bond Funds, together with
other documents executed in connection therewith or
presented by the Borrower to the City in connection
therewith or herewith, including but not limited to Exhibit
D, and the Note, and all amendments, extensions and
renewals to any of the foregoing.
The funds in the amount ,of Two Million One Hundred
Thousand and 00/100 Dollars ($2,100,000.00) from the City
to the Borrower for Project construction, of which One
Million Five Hundred Thousand and 00/100 Dollars
($1,500,000.00) are allocated for Construction Ready Costs
as defined herein.
The program guidelines passed and adopted on March 14,
2019 by the City of Miami Commission in Resolution R-19-
0111, and any amendments thereto, and the program
guidelines passed and adopted on July 25, 2019 by the City
of Miami Commission in Resolution R-19-0325, and any
amendments thereto.
Page 3 of 40
c
1.7 Bond Requirements:
1.8 Code:
1.9 Covenant:
1.10 Close -Out of the Project
or Project Completion:
1.11 Contract Records:
The requirements contained in (i) City of Miami Resolution
R-19-0111 adopted by the City of Miami Commission on
March 14, 2019, and any and all exhibits and amendments
thereto, (ii) City of Miami Resolution R-19-0062 adopted by
the City of Miami Commission on February 14, 2019, and
any and all exhibits and amendments thereto, and (iii) the
Miami Forever Bond Validation Final Judgment that was
recorded on December 27, 2019 in Official Records Book
31743 at Page 4365 of the Public Records of Miami -Dade
County, Florida.
The Internal Revenue Code of 1986, as amended, and any
successor statute, as it applies to low income housing credit
dollar amounts, together with all applicable final, temporary
proposed U.S. Treasury Regulations and Revenue Rulings
thereunder.
A Declaration of Restrictive Covenants executed by the
Borrower and to be recorded in the Public Records of
Miami -Dade County, Florida to ensure that all of the Project
units will qualify and remain Affordable during the
Affordability Period.
The date on which the Project has obtained all of the required
certificate(s) of occupancy, all Bond Assisted Units have
been leased to eligible tenants, and HCD has accepted the
Borrower's Financial Close -Out Package.
Any and all books, records, documents, information, data,
papers, letters, memoranda, analyses, drawings materials,
electronic storage data and media, whether written, printed,
computerized, electronic or electrical, however collected or
preserved which are or were produced, developed,
maintained, completed, received or compiled by or at the
direction of the Borrower or any Project contractor or
subcontractor relating to the use of the Bond Funds in
carrying out the duties and obligations required by the terms
of this Agreement, including, but not limited to, fmancial
books and records, ledgers, drawings, maps, pamphlets,
designs, electronic tapes, computer drives and diskettes or
surveys.
1.12 Construction Ready
Costs: One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000.00) of the total Bond Funds that are allocated
Page 4 of 40
for Construction Ready Costs eligible costs as described in
Section 2.2 of the Agreement.
1.13 Effective Date: The date on which this Agreement has been signed by the
City Manager and attested to by the City Clerk.
1.14 Extremely Low Income:
1.16 FHFC
A person or households with income at or below thirty
percent (30%) of the median income for Miami -Dade
County, FL as determined by FHFC, with adjustments and
certain exceptions as provided in FHFC.
Florida Housing Finance Corporation
1.16 HUD: The U.S. Department of Housing and Urban Development.
1.17 Mortgage:
1.18 Legal Requirements:
1.19 Omitted
1.20 Omitted
1.21 Note:
1.22 Omitted
The Leasehold Mortgage and Security Agreement executed
by Borrower in favor of Lender to secure the obligations of
Borrower under the Loan Documents.
The Bond Requirements, the Miami \Forever Bond
Validation Final Judgment that was recorded on December
,27, 2019 in Official Records Book 31743 at Page 4365 of
the Public Records of Miami -Dade County, Florida, the
Rules of the Florida Housing Finance Corporation, and any
requirements imposed by the City and all local, state and
federal requirements relating thereto and/or pertaining to the
development, construction and/or operation of the Project
under the Bond Program.
The Promissory Note of even date herewith evidencing the
Loan, executed by the Borrower in favor of the City.
1.23 Permitted Senior Financing: The loan(s) specified in Schedule A, attached hereto and
incorporated herein by reference, and shall include
refinancing of such senior loans, which may include
advances made from time to time under the documents
governing the Permitted Senior Financing. The term
Permitted Senior Financing includes, without limitation, all
sums advanced by the Permitted Senior Lender (as defined
below) for the purposes of (1) protecting or further securing
Page 5 of 40
1.24 Proiect:
L
1.25 Property:
1.26 Rent Regulatory
Agreement:
1.27 Term.
the lien of the Permitted Senior Financing mortgage, curing
defaults by Borrower under the documentsgoverningthe
Permitted Senior Financing, or for any other purpose
expressly permitted under such documents, or (2)
constructing, renovating, repairing, furnishing, fixturing or
equipping the Project.
Flagler Villas is a new construction consisting of a 6-story
multifamily rental building located at 5215 West Flagler
Street, Miami, Florida 33134. The project will consist of a
total of sixty (60) units. The project's sixty (60) units shall
be Bond Assisted units that shall be occupied by eligible
tenants, as described herein, and shall be comprised of sixty
(60) one-bedroom/one-bathroom units for Extremely Low
Income Households. All sixty (60) Project units shall be
Bond Assisted units and shall be subject to the Bond
Requirements and the Loan Documents throughout the
Affordability Period.
The real property located at 5215 West Flagler Street,
Miami, FL 33134, as legally described in Exhibit "A,"
attached hereto and incorporated herein.
A Rent Regulatory Agreement executed by the Borrower
and to be recorded in the Public Records of Miami -Dade
County, Florida to ensure that all of the Bond Assisted Units
will qualify and remain Affordable during the Affordability
Period.
The period commencing on the Effective Date hereof and
ending at the expiration of the Affordability Period, unless
this Agreement is terminated sooner as provided for herein,
ARTICLE II
BOND FUNDS
Upon satisfaction of all conditions set forth herein, the City shall disburse the Bond Funds
to the Borrower for the purposes herein -set forth.
2.1 USE OF FUNDS. The Flagler Villas Project, consisting of sixty (60) rental units. All sixty
(60) Project units will be Bond Assisted Units for Extremely Low Income Households for a period
of thirty (30) years, commencing at the Close -Out of the Project.
Page 6 of 40
The Bond funds shall be used for costs, as defined in Section 2.2 of this Agreement and in
accordance with the Scope of Work attached hereto as Exhibit "B" and the Budget attached hereto
as Exhibit "C". No portion of the Bond funds shall be used for operating expenses of the Project.
2.2 CONSTRUCTION READY COSTS. Pursuant to Resolutions No. 24-0373 and Resolution
No. 25-0066, and the September 20, 2024, and the March 26, 2025 HCLC Memorandum
authorizing a disbursement of funds in an amount of up to $1,500,000.00 of the $2,100,000.00 in
Miami Bond funds to expedite the permit process and financing approvals for the Project. The
Bond Funds to be allocated to the Project will be used for construction ready costs such as architect
and engineering costs, impact and school fees, permit costs, environmental costs, utility costs, and
surveys, in accordance with the construction ready costs included in the budget attached hereto as
Exhibit "C".
2.3. INTENTIONALLY OMITTED.
2.4. INTENTIONALLY OMITTED.
2.5 DISBURSEMENT. The Bond Funds shall be disbursed in accordance with the Budget
attached hereto and incorporated herein as Exhibit "C" and in the manner set forth in that certain
Disbursement Agreement of even date herewith, a copy of which is attached hereto and
incorporated herein as Exhibit "D" (the "Disbursement Agreement").
2.6 REPAYMENT OF BOND FUNDS. The principal of the Loan, as evidenced by the Note,
shall bear zero percent (0%) interest from the Effective Date of this Agreement until the seventh
(7th) anniversary date following the Close -Out of the Project. Beginning on the seventh (7th)
anniversary date following the Close -Out of the Project, the principal of this Promissory Note shall
bear interest at the rate of 0.60% per annum simple interest. Beginning on year eight (8) after the
Close -Out of the Project, the Borrower shall make annual interest -only payments in accordance
with the terms and conditions of the Note.
A. COSTS INCURRED BY THE CITY. Notwithstanding any other provision of this
Agreement, the Borrower understands and agrees that Ten Thousand Dollars ($10,000.00) of the
Bond Funds awarded to the Project shall be withheld from the first disbursement and used by the
City to cover costs incurred by the City in administering this Agreement and the Bond Program.
Such costs may include, but are not limited to, environmental advertising costs, signage and
recording fees. The $10,000.00 will be charged to the Project; any unused portion of such amount
shall be automatically de -obligated and retained by the City.
B. COMMITMENT FEE. Borrower agrees to pay the City a $5,000.00 commitment fee prior
to the disbursement of any Bond Funds.
2.7 DISBURSEMENT OF BOND FUNDS: The City shall disburse Bond Funds upon the
following: Eligible Project costs will be disbursed with the submission of the appropriate request
for payment form and all relevant partial releases of lien for the previous draw down. The final
disbursement request must include the final release of liens and also a certification by the general
Page 7 of 40
contractor and each subcontractor that there has been no kick -back according to the form that will
be provided by the City.
ARTICLE III
DISBURSEMENT -REQUIREMENTS
3.1 CONDITIONS OF DISBURSEMENT OF BOND FUNDS. The City shall not be obligated
to disburse the Bond Funds, in accordance with Exhibit "D," unless and until the City has received
the following:
3.1.1 Title Insurance. A title insurance commitment issued by a title insurance company
acceptable to the City identifying the City's insurable interest in the Property,
together with copies of all instruments which appear as exceptions therein. The title
commitment and policy shall be issued without exceptions, except for those
exceptions permitted by the City, and shall include such affirmative coverage as the
City shall require.
3.1.2 Survey. An original current survey of the Property made by a registered surveyor
satisfactory to the City and the title company and containing such certifications as
the City and the title company may require.
3.1.3 Zoning. Evidence that the Property and the proposed improvements comply with
all applicable zoning ordinances.
3.1.4 Corporate Documents.
(a) The operating agreement, or its equivalent, as appropriate, and a good
standing certificate for the Borrower certified by the appropriate
governmental authority.
(b) Resolutions, and incumbency certificates, or, in the case of a limited
liability company, their equivalent, if applicable, certified by the manager
or other authorized signer, authorizing the consummation of the transactions
contemplated hereby, all satisfactory to the City.
(c)
Evidence satisfactory to the City that the Borrower is qualified to receive
funds under the Bond Program in accordance with the Bond Requirements.
3.1.5 Insurance Policies. The Borrower shall obtain and furnish evidence of insurance coverage
as the City may require in connection with the Project, which shall be subject to review and
approval by the City's Depailnient of Risk Management. All such insurance shall require that
the City be listed as an additional insured, with a loss payable clause in favor of the City. The
Borrower shall be required to obtain and furnish evidence of any other insurance coverage the
City may reasonably require during the Term of this Agreement, including, but not limited to
that described on Exhibit "J" attached hereto and made a part hereof. All such policies shall
provide the City with a mandatory written notice of cancellation or material change from the
Page 8 of 40
l
insurer not less than thirty (30) calendar days prior to any such cancellation or material change,
and all such policies shall be written by insurance companies satisfactory to the City.
Failure of the Borrower to submit all required evidence of the specified insurance coverage
fourteen (14) calendar days prior to the start of Project shall delay the disbursement of the Bond
Funds.
3.1.6 Operative Documents. This Agreement, the Note, the Mortgage, the Covenant, the
Rent Regulatory Agreement, the Disbursement Agreement, and all other Loan
Documents shall be duly and lawfully executed by the Borrower, as applicable, and
in recordable form, where appropriate.
3.1.7 Appraisal. A current appraisal of the Property made by a member of the American
Institute of Real Estate Appraisers.
3.1.8 List of Contractors and Subcontractors. A list of all of the Project contractors and
subcontractors as of the date of execution of this, Agreement, and copies of all
contracts in excess of $10,000 for the performance of services or the supply of
materials in connection with the Project to be funded pursuant to this Agreement.
3.1.9 Compliance with Bond Requirements. All other documents required by the Bond
Program evidencing compliance with Bond Requirements.
3.1.10 Historic Preservation Review. N/A.
3.1.11 Environmental Report. N/A.
3.1.12 Audit Report. The Borrower shall submit to the City audit reports as are required
herein.
3.1.13 Personnel Policies and Administrative Procedure. Manuals. The Borrower shall
submit detailed documents describing the Borrower's internal corporate
organizational structure, property management and procurement policies and
procedures, personnel management, accounting policies and procedures, etc. Such
information shall be submitted to the City within thirty (30) calendar days of the
execution of this Agreement and prior to the disbursement of any funds hereunder.
3.1.14 Certificate Regarding Lobbying. Such Certificate Regarding Lobbying as may be
requested by the City.
3.1.15 Certificate Regarding Debarment, Suspension, and Other Responsibility Matters.
Such Certificate Regarding Debarment, Suspension and Other Responsibility
Matters as may be requested by the City.
3.1.16 Public Entity Crime Affidavit. Such Public Entity Crime Affidavit as may be
required by the City.
Page 9 of 40
3.1.17 Omitted
3.1.18 Borrower Compliance. The Borrower (or any related entity) shall be in full
compliance with the requirements of other funded City projects that are either under
construction or in their affordability periods, including, but not limited to, the
requirements of OMB Circular No. A-133 and any other reporting and insurance
requirements imposed by the City for those projects.
3.1.19 Anti -Human Trafficking Affidavit. Such Anti -Human Trafficking Affidavit as
required herein, attached hereto as Exhibit "G" and made a part hereof.
3.1.20 HUD Funds Release Approval: The release of funds for hard costs shall be subject
to receipt of HUD approval of the request of release of funds ("RROF") or receiving
HUD environmental approval of the Congressional Project Funding.
3.1.21 Delivery of Other Documents. All other documents reasonably required by the City.
3.2. This Agreement shall be governed by the insurance requirements set forth in Exhibit "G"
and any applicable provisions set forth in Article III.
ARTICLE IV
BOND REQUIREMENTS
The Borrower shall comply with the following Bond Requirements:
4.1 GENERAL.
4.1.1 The Borrower shall maintain current documentation that its activities qualify under
the Bond Requirements and the Bond Program.
4.1.2 The Borrower shall ensure and maintain documentation that conclusively
demonstrates that each activity assisted in whole or in part with Bond Funds is an
activity which benefits persons or households whose annual income does not
exceed thirty percent (30%) 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, and with certain exceptions as provided by
FHFC, for Extremely Low Income Households/persons.
4.1.3 INTENTIONALLY OMITTED
4.1.4 INTENTIONALLY OMITTED
4.1.5 The Borrower shall cooperate with the City in informing the appropriate citizen
participation structures, including the appropriate area committees, of the activities
of the Borrower in adhering to the provisions of this Agreement. Representatives
Page 10 of 40
of the Borrower shall attend meetings of the appropriate citizen participation
committees/structures upon the request of citizen participation officers or the City.
4.1.6 The Borrower shall, to the greatest extent possible, give low and moderate income
residents opportunities for training and employment.
4.1.7 The Borrower shall comply with all applicable displacement and relocation
requirements.
4.2 REAL PROPERTY.
4.2.1 The following restrictions shall apply to all real property acquired or improved in
whole or in part with Bond Funds. The property must either be:
(a) Used in compliance with at least one of the Bond Programs, used in
compliance with the Covenant, and used in compliance with the Bond
Requirements, or
(b) If not used in accordance with paragraph (a) above, then that shall constitute
an event of default and Borrower shall pay to the City an amount equal to
the amount of Bond Funds disbursed at the time of default plus accrued
interest.
4.2.2 The following shall be a condition precedent to the execution and delivery of this
Agreement and the other Bond Documents: All real property purchased in whole
or in part with funds for this and previous Agreements with the City, or transferred
to the Borrower after being purchased in whole or in part with funds from the City,
shall be listed in the property records of the Borrower and shall include: a legal
description; size; address and location; owner's name if different from the
Borrower; information on the transfer or disposition of the property; and a map
indicating whether property is in parcels, lots, or blocks and showing adjacent
streets and roads. The property records shall describe the programmatic purpose for
which the property was acquired and identify the Bond Program activity that will
be completed. If the property was improved, the records shall describe the
programmatic purpose for which the improvements were made and identify the
Bond Program activity that will be completed.
4.3 PERSONAL PROPERTY. Ownership of all non -expendable personal property purchased
in whole or in part with Bond Funds given to the Borrower pursuant to the terms of this Agreement
shall vest in the City.
4.3.1 Definitions.
(a) Personal Property. Personal Property of any kind except real property:
1) Tangible. All personal property having physical existence.
Page 11 of 40
2) Intangible. All personal property having no physical existence such
as patents, inventions and copyrights.
(b) Non -expendable -Personal Property. Tangible personal property of a non-
consumable nature, with a value of Five Hundred and 00/100 ($500.00) or
more per item, with a normal expected life of one or more years, not fixed
in place, and not an integral part of a structure, facility, or another piece of
equipment.
(c) Expendable Personal Property. All tangible personal property other than
non -expendable property.
4.3.2 Requirements. The Borrower shall comply with the non -expendable personal
property requirements stated below:
(a) All non -expendable personal property purchased in whole or in part with
funds from this and previous contracts with the City shall be listed in the
property records of the Borrower and shall include: a description of the
property; location; model number; manufacturer's serial number; date of
acquisition; funding source; unit cost; property inventory number;
information on its condition; and information on the transfer, replacement,
or disposition of the property.
(b) All non -expendable personal property purchased in whole or in part with
funds from this and previous contracts with the City shall be inventoried
annually by the Borrower in an inventory report submitted to the City when
and as requested by the City. The inventory report shall include the elements
listed in Paragraph 4.3.2(a), above.
4.4 DISPOSITION. The Borrower shall obtain the prior written approval of the City for the
disposition of real or personal property purchased in whole or in part with Bond Funds, and shall
dispose of all such property in accordance with instructions from the City. Those instructions may
require the return of all such property to the City.
4.5 GENERAL CONTRACTORS, SUBCONTRACTS AND ASSIGNMENTS.
4.5.1 The Borrower shall ensure that all contracts with contractors, subcontractors and
assignments funded with the Bond Funds:
(a) Identify the full, correct, and legal name of all parties;
(b) Describe the activities to be performed;
(c) Present a complete and accurate breakdown of its price component;
Page 12 of 40
(d) Incorporate a provision requiring compliance with all applicable regulatory
and other requirements of this Agreement, and with any other conditions
and/or approvals that the City may deem necessary. The requirements of
this paragraph apply to subcontracts and assignments in which parties are
engaged to carry out any eligible substantive programmatic service, as may
be defined by the City, set forth in this Agreement. The City shall in its sole
and absolute discretion determine when services are eligible substantive
programmatic services and subject to the audit and record -keeping
requirements described in this Agreement; and
(e) Incorporate the language of the Certificate Regarding Lobbying executed in
connection herewith.
4.5.2 The Borrower shall incorporate in all consultant and other subcontracts the
following provision:
[Borrower] is not responsible for any insurance or other fringe benefits, e.g., social
security, income tax withholding, retirement or leave benefits, for the consultant or
employees of the consultant that are normally available to direct employees of
[Borrower]. The consultant assumes full responsibility for the provision of all
insurance and fringe benefits for himself/herself/itself and for employees retained
by the consultant in carrying out the Scope of Work provided in this subcontract.
4.5.3 The Borrower shall be responsible for monitoring the contractual performance of
all subcontracts.
4.5.4 The Borrower shall submit to the City for its review and confirmation any
subcontract engaging any party who agrees to carry out any, . substantive
programmatic activities for any work in excess of $10,000.00, to ensure its
compliance with the requirements of this Agreement. The City's review and
confirmation shall be obtained prior to the release of any funds for the Borrower's
subcontractor(s).
4.5.5 The Borrower shall receive written approval from the City prior to either assigning
or transferring any obligations or responsibility set forth in this Agreement.
4.5.6 Approval by the City of any subcontract or assignment shall not under any
circumstances be deemed to be the City's agreement to incur any obligations in
excess of the total dollar amount agreed upon in this Agreement.
4.5.7 The Borrower and its subcontractors shall comply with the Davis -Bacon Act, if
applicable, the Copeland Anti -Kick Back Act, the Contract Work Hours and Safety -
Standards Act, the Lead -Based Paint Poisoning Prevention Act, the Residential
Lead Based Paint Hazard Reduction Act of 1992 (and implementing regulations at
24 C.F.R. Part 35) and any other applicable laws, ordinances and regulations.
Page 13 of 40
4.5.8 Within ten (10) days of the City's written request, the Borrower shall submit to the
City for written prior approval all proposed Solicitation Notices, Invitations for
Bids, and Requests for Proposals.
4.6 • REPORTING OBLIGATIONS.
4.6.1 The Borrower shall submit, as required by the City, the following:
4.6.1.1 Progress Reports. The Borrower shall submit status reports and projected
completion dates to describe the progress made by the Borrower in achieving each
of the objectives identified in Exhibit "B." The Borrower shall also submit an
Earned Income Report in such form as may be required by the City. Both the
Progress Report and the Earned Income Report shall be provided to the City on a
quarterly basis until the Project Completion.
4.6.1.2 Inventory Report. The Borrower shall report all real property and all non -
expendable personal property as specified in Paragraphs 4.2 and • 4.3 hereof. Such
report shall be submitted as requested by the City.
4.6.1.3 Affirmative Action Plan. The Borrower shall report to the City such
information relative to the equality of employment opportunities whenever
requested by the City.
4.6.1.4 Assurance of Compliance with Section 504 of the Rehabilitation Act.
The Borrower shall report on compliance with section 504 of the Rehabilitation
Act, whenever requested by the City.
4.6.1.5 _ Affirmative Marketing Plan and•Report. The Borrower shall report to
the City annually on all actions taken to comply with the affirmative marketing
requirements provided in Exhibit "E."
4.6.1.6 List of Subcontractors. The Borrower shall provide a list of all Project
contractors and subcontractors, and copies of all contracts in excess of Ten
Thousand and 00/100 Dollars ($10,000.00) for the performance of services or the
supply of materials in connection with the Project.
4.6.1.7 Affordability Report. On February 1 (or on such other date that the City
shall authorize in writing) of each year during the Affordability Period, the
Borrower shall provide a report describing the previous year's compliance with the
Affordability requirements set forth herein. The Affordability Report shall be
accompanied by such substantiating documentation as the City shall request.
4.6.1.8 All such other reports as may be reasonably requested by the City.
4.6.2 Federal, State and County Laws and Regulations.
Page 14 of 40
4.6.2.1 The Borrower shall comply with all applicable uniform administrative
requirements as described in 24 C.F.R §570.502.
4.6.2.2 The Borrower shall carry out each activity_in compliance with all Federal
laws, regulations and requirements described in subpart K of 24 C.F.R. Part 570,
except that the Borrower does not assume: (1) the City's environmental
responsibilities described in Section 570.64 and, (2) the City's responsibility for
initiating the review process under the provisions of 24 C.F.R. Part 52.
4.6.2.3 The Borrower shall comply with all applicable federal laws, regulations
and requirements including, but not limited to: 24 C.F.R. Part 570; 24 C.F.R. Part
85, Section 504 of the Rehabilitation Act of 1973, as amended, which prohibits
discrimination on the basis of handicap; Title VI of the Civil Rights Act of 1964,
as amended, which prohibits discrimination on the basis of race, color, or national
origin; the Age Discrimination Act of 1975, as amended, which prohibits
discrimination on the basis of age; Title VIII of the Civil Rights Act of 1968, as
amended, and Executive Order 11063, which prohibits discrimination in housing
on the basis of race, color, religion, sex, or national origin; Executive Order 11246,
which requires equal employment opportunity; and with the Energy Policy and
Conservation Act (Pub. L. 94-163), which requires mandatory standards and
policies relating to energy efficiency.
4.6.2.4 If the amount payable to the Borrower pursuant to the terms of this
Agreement is in excess of One Hundred Thousand and 00/100 Dollars
($100,000.00), the Borrower shall comply with all applicable standards, orders, or
regulations issued pursuant to the Clean Air Act of 1970 (42 U.S.C. 7401 et. seq.),
as amended; the Federal Water Pollution Control Act (33 U.S.C. 1251), as
amended; Section 508 of the Clean Water Act (33 U.S.C. 1368); Environmental
Protection Agency regulations (40 C.F.R. Part 15); and Executive Order 11738.
4.6.3 Audits, Other Information and Records.
4.6.3.1 The Borrower shall submit to the City an audit conducted by an
independent certified public accountant or firm of independent certified public
accountants in accordance with generally accepted auditing standards, including
audited financial statements and a report on compliance with laws and regulations
based on the audit of financial statements. Two copies of each such audit must be
delivered to the City no later than six (6) months following the end of each
Borrower fiscal year.
Each such audited financial statement is to be for the twelve (12) months ending
December 31 and shall include:
a. Comparative Balance Sheet with prior year and current year
balances;
b. Statement of revenue and expenses;
Page 15 of 40
c. Statement of changes in fund balances or equity;
d. Statement of cash flows; and
e. Notes
The fmancial statements shall be accompanied by a certification of the Borrower
as to the accuracy of such financial statements.
Subject to paragraph 7.1(i), a late fee of Five Hundred and 00/100 Dollars ($500.00)
will be assessed by the City for failure to submit any of the required audited
financial statements or the certification each year as required.
Within thirty (30) days of written request by the City, the Borrower shall also
furnish to the City unaudited financial statements of the Borrower certified by the
Borrower's principal fmancial or accounting officer, covering such financial
matters as the City may request, including without limitation, monthly statements
with respect to the Project.
4.6.3.2 The Borrower shall ensure that the Contract Records shall be at all times
subject to and available for full access and review, inspection or audit by the City
and federal personnel and any other personnel duly authorized by the City.
4.6.3.3 The Borrower shall include in all Project subcontracts, each of the record
keeping and audit requirements detailed in this Agreement. The City shall in its
sole discretion determine when services are subject to the audit and recordkeeping
requirements described above.
4.6.3.4 The Borrower shall include in all subcontracts to carry out any eligible
substantive programmatic services, as such services are described in this
Agreement and defined by the City, each of the record keeping and audit
requirements detailed in this Agreement. The City shall in its sole discretion
determine when services are eligible substantive programmatic services and subject
to the audit and recordkeeping requirements described above.
4.7 RECORDS. The Borrower shall establish and maintain sufficient records to enable the City
to determine whether the Borrower has met requirements of the Bond Program and this Agreement.
The Borrower shall maintain all Contract Records in accordance with' generally accepted
accounting principles, procedures, and practices, which records shall sufficiently and properly
reflect all revenues and expenditures of funds provided directly or indirectly by the City pursuant
to the terms of this Agreement.
At a minimum, the following records shall be maintained by the Borrower:
4.7.1 Records providing a full description of each activity assisted (or being assisted)
with Bond Funds, including its location (if the activity has a geographical locus),
the amount of Bond Funds budgeted, obligated and expended for the activity, and
the specific provision of the Bond Program under which the activity is eligible.
Page 16 of 40
4.7.2 Records demonstrating that each activity undertaken meets at least one of the
criteria set forth in the Bond Program.
4.7.3 Records that demonstrate compliance with all applicable requirements relating to
the use of real property acquired or assisted with Bond Funds.
4.7.4 Records that demonstrate compliance with all applicable requirements relating to
acquisition, displacement, relocation and relocation housing.
4.7.5 Records containing data on the extent to which each racial and ethnic group and
single -headed households (by gender of household head) have applied for,
participated in, or benefited from, any program or activity funded in whole or in
part with Bond Funds.
4.7.6 Records containing data indicating the race and ethnicity of households (and gender
by single heads of household) displaced as a result of Bond funded activities,
together with the address and census tract of the housing units to which each
displaced household relocated.
4.7.7 Documentation of actions undertaken to meet the requirements of 24 C.F.R.
§570.607(b), which implements Section 3 of the Housing Development Act of
1968, as amended (12 U.S.C. 1701U), relative to the hiring and training of low and
moderate income persons and the use of local businesses.
4.7.8 Data indicating the racial/ethnic character of each business entity receiving a
contract or subcontract of $25,000 or more paid, or to be paid, with Bond Funds,
and such additional information as is required pursuant to 24 C.F.R §570.506(g)(6).
4.7.9 Financial records in accordance with the applicable requirements listed in 24 C.F.R.
§570.502.
4.7.10 Records required to be maintained in accordance with other applicable laws and
regulations including but not limited to those that are set forth in Subpart K of 24
C.F.R. part 570.
4.8 RETENTION AND ACCESSIBILITY OF RECORDS.
4.8.1 The City shall have the authority to review the Contract Records throughout the
Retention Period (as hereinafter defined). All books of account and supporting documentation shall
be kept by the Borrower at least until the expiration of the Retention Period.
The Borrower shall maintain records sufficient to meet the requirements of 24 C.F.R. Part
570. All records and reports required herein shall be retained and made accessible as provided
hereunder.
Page 17 of 40
L
The Borrower shall ensure that the Contract Records shall be at all times subject to and
available for full access and review, inspection and audit by the City and any other personnel
duly authorized by the City.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE BORROWER
The Borrower represent and warrant to the City as follows:
5.1 ' ORGANIZATION AND EXISTENCE. The Borrower is a Florida limited liability
company duly organized, validly existing and in good standing under the laws of the State of
Florida, and has full power and authority to conduct its business as presently conducted, to receive
the Bond Funds and operate and develop the Project.
The Project shall comply with all applicable Bond Requirements, as may be amended from
time to time. The Borrower has full power and authority to perform the provisions hereof and of
its agreements and undertakings with the City and to perform the transactions contemplated
hereby, and such execution and performance have been duly authorized by all necessary corporate
or other approvals and actions.
5.2 CORRECTNESS OF DOCUMENTS. The cost estimates, Budget, schedules, and all other
documents furnished to the City in accordance with the Bond Program, this Agreement, and/or the
other Bond Documents, are true and correct in all material respects as of the date of this agreement
and accurately' set forth the facts contained therein and neither misstate any material fact, nor,
separately or in the aggregate, fail to state any material fact necessary to make the statements made
therein not misleading.
5.3 ABSENCE OF PROCEEDINGS, ACTIONS AND JUDGMENTS. There are no
conditions, circumstances, events, agreements, documents, instruments, restrictions, actions, suits
or proceedings pending or threatened against or affecting the Borrower, the Project or the Property
which could adversely affect the Borrower's ability to comply with the Bond Program, complete
or operate the Project or to perform its obligations hereunder or which would constitute an Event
of Default hereunder or under the other Bond Documents regardless of the giving of notice or the
passage of time or both. There are no outstanding or unpaid judgments or arbitration awards against
the Borrower.
5.4 NON -DEFAULT. The Borrower is not in default or violation with respect to any Legal
Requirement, nor is it in default under or in material breach of any instrument or agreement to
which it is a party or by which it otherwise may be bound. The execution and delivery of this
Agreement and the other Bond Documents, _ the consummation of the other transactions
contemplated hereby, and the development of the Project as contemplated hereby and by the other
Bond Documents: (i) to the best of Borrower's knowledge, do not and will not conflict with or
result in violation of any Legal Requirement or in the breach or default under any indenture,
contract, agreement or other instrument to which the Borrower is a party or by which it may be
bound; and (ii) have been duly authorized by all necessary actions and approvals, whether
corporate or otherwise.
Page 18 of 40
5.5 VALID OBLIGATIONS. This Agreement and all of the other Bond Documents, when
executed and delivered, shall constitute the duly authorized, legal, valid and binding obligations
of the Borrower and will be enforceable in accordance with their respective terms.
5.6 MARKETABLE TITLE. The Borrower has good and marketable leasehold title to the
Property, subject only to: (a) the exceptions and other matters set forth in that .certain Title
Insurance Commitment (Order Number 12167682) issued by Fidelity National Title Insurance
Company, effective as of February 11, 2025, at 11:00 pm, as endorsed. (collectively, the "Title
Commitment and Exceptions"); and (b) from time to time, the granting of utility and similar
easements on a non -material portion of the Property to utility and similar service providers for the
installation and maintenance of utility and similar service equipment and components.
5.7 COMPLIANCE. The completion and use of the Project in accordance with the Scope of
Work will comply fully with all Legal Requirements, and with all limitations on the use of the
Project, or any other condition, grant, easement, covenant, or restriction, whether recorded or not.
All necessary approvals, permits and licenses for the construction, operation, and use of the Project
have been unconditionally obtained and are in full force and effect, or if the present state of
construction of the Project does not allow such issuance, then such approvals, permits and licenses
will be issued when the Project is completed.
5.8 ENCROACHMENTS. When completed in accordance with the Scope of Work, the Project
will not encroach upon any building line, setback line, side yard line, or other recorded or visible
easements or other easements of which the Borrower is aware which exists (or which the Borrower
has reason to believe may exist) with respect to the Project, other that as set forth in a title
commitment and exceptions.
5.9 SCOPE OF, WORK. The Scope of Work is complete in all respects, and contains all details
requisite for the Project which, when built and equipped in accordance therewith, shall be ready
for the intended use and occupancy thereof.
5.10 LEASES. There are no leases, tenancies, licenses or agreements for use of any part of the
Property other than as specifically disclosed to and approved by the City, which, for avoidance of
doubt (and which the City hereby acknowledges and agrees), are limited to the leases for the rental
of each Bond Assisted Unit each which may be entered into from time to time.
5.11 PENDING ASSESSMENTS. The Borrower has no knowledge of any pending or proposed
governmental action that would impair the operation or value of the Project or result in a special
assessment against the Project.
5.12 WASTE. The Borrower shall not commit nor suffer waste nor negligence on the Project.
5.13 FRAUD. No fraud by the Borrower has occurred in the qualification of the Project, the
Borrower, the Borrower, and/or the Property under the Bond Program, the negotiation of this
Agreement and the other Bond Documents, nor in the transactions contemplated hereby.
Page 19 of 40
5.14 NO CASUALTY. No part of the Property and/or the Project has been damaged or has been
subjected to condemnation or other proceedings, and to the Borrower's knowledge no such
proceedings have been threatened.
5.15 NO CHANGES. There have been' no material adverse changes in projected costs and
expenses of or from the Project or in the occupancy of the Property or any other features of the
transactions contemplated hereby as submitted to the City.
5.16 COMPLIANCE WITH LAWS AND REGULATIONS. The Borrower will comply at all
times with all Legal Requirements. The Borrower will comply at all times with the Bond
Requirements affecting the ownership, use, construction, lease and operation of the Project.
5.17 OTHER PROJECT FINANCING; SUBORDINATION. The Borrower has not applied for
nor received, and does not otherwise have available, in connection with the Project any other
fmancing/funding, except for those funds, loans and/or loan commitment previously identified in
writing to, and approved by, the City as set forth in the attached Schedule A ("Permitted Senior
Financing") and the permitted subordinate fmancing set forth in the attached Schedule B
("Permitted Subordinate Financing"). The City acknowledges and agrees that the City's rights
hereunder and under the Loan Documents are subordinate to the rights of the lenders of the
Permitted Senior Financing. The City agrees to execute, as needed, any agreements evidencing
such subordination, and any reasonable amendments or modifications to this Agreement and the
other loan documents required by the senior lenders and Borrower's investor member.
5.18 REAFFIRMATION. Each of the representations and warranties set forth in this Article
shall be true at all times, and the Borrower's acceptance of each draw of the Bond Funds hereunder
shall be deemed to be a reaffirmation of each of the representations and warranties given in this
Agreement.
ARTICLE VI
BORROWER'S OBLIGATIONS
6.1 SCOPE OF WORK. The Borrower shall perform the Scope of Work as set forth herein and
on Exhibit `B" attached. The Bond Funds shall be used exclusively for Project related construction
costs, in accordance with the budget for such costs as approved by the City.
The Borrower shall: (a) commence construction within six (6) months from Effective Date
of the Agreement; (b) obtain all certificates of occupancy required for the Project within eighteen (18)
months from the Effective Date; and (c) have all Bond Assisted Units rented within twelve (12) months
after the issuance of Project's certificate(s) of occupancy, but in no event later than thirty-six (36)
months from the Effective Date; and (d) have the Project inspected by an authorized City Inspector
and receive the appropriate clearance or certification that the construction work adheres to and
conforms with the applicable City, county or state requirements, including, without limitation,
applicable building code requirements. Notwithstanding the foregoing, the time periods set forth
in this section may be extended in the City's reasonable discretion which shall require the approval
of the City's HCLC.
Page 20 of 40
The Borrower shall: (a) meet all of its obligations hereunder and under all of the Loan
Documents executed in connection herewith, (b) rent all City Assisted Units to persons or
households whose annual income does not exceed thirty percent (30%) of the median income for
the area, as determined by FHFC with adjustments for smaller and larger families and with certain
exceptions as provided by FHFC, for Low and Extremely -Low Income Households in accordance
with the requirements of this Agreement, and provide to the City 'a certified rent roll evidencing
the same, (c) throughout the Affordability Period, rent all of the Project units to persons or
households whose annual income does not exceed thirty percent (30%) of the median income for
the area, as determined by FHFC with adjustments for smaller and larger families and with certain
exceptions as provided by FHFC, for Low and Extremely Low Income Households in accordance
with the requirements of this Agreement, and the other Loan Documents; and (c) throughout the
Affordability Period, comply with all applicable Legal Requirements and all applicable
requirements hereof and in the other Loan Documents.
The tenant's portion of rents charged for the Bond Assisted Units shall be limited as set
forth in the Rent Regulatory Agreement executed in connection herewith.
6.2 REPORTING OBLIGATIONS. The Borrower shall submit to the City all reports as
described in Article 4 hereof, and all other reports that the City may reasonably require, in such
form, manner, and frequency as the City may require to monitor the progress of the Project and
the Borrower's performance and compliance with this Agreement and all Legal Requirements.
6.3 RETENTION OF RECORDS. The Borrower shall retain all Contract Records for five (5)
years after expiration of the Affordability Period (hereinafter referred to as "Retention Period")
subject to the limitations set forth below:
(a) If the City or the Borrower has received`or given notice of any kind indicating any
threatened or pending litigation, claim or audit arising out of the activities relating
to the Project or the Scope of Work or under the terms of this Agreement, the
Retention Period shall be extended until such time as the threatened or pending
litigation, claim or audit is in the sole and absolute discretion of the City, fully,
completely and finally resolved.
(b) The Borrower shall allow the City or any person authorized by the City full access
to and the right to examine any of the Contract Records during the Retention Period.
(c) The Borrower shall notify the City in writing, both during the pendency of this
Agreement and after its expiration termination, as part of the final closeout
procedure, of the address where all Contract Records will be retained.
6.4 PROVISION OF RECORD. All of the Contract Records are subject to the provisions of
Chapter 119, Florida Statutes, commonly referred to as the "Public Records Law." Should
Borrower determine to dispute any public access provision required by Florida Statutes, then
Borrower shall do so at its own expense and at no cost to the City.
Page 21 of 40
IF BORROWER HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER
119, FLORIDA STATUTES, TO BORROWER'S DUTY .TO PROVIDE PUBLIC RECORDS
RELATING TO THIS AGREEMENT AS A PUBLIC CONTRACT, PLEASE CONTACT THE
CITY'S CUSTODIAN OF PUBLIC RECORDS AT TELEPHONE NUMBER 305-416-1800,
EMAIL: PUBLICRECORDS@MIAMIGOV.COM, AND MAILING ADDRESS: PUBLIC
RECORDS CIO OFFICE OF THE CITY ATTORNEY, 9TH FLOOR, MIAMI RIVERSIDE
CENTER, 444 S.W. 2ND AVENUE, MIAMI, FLORIDA 33130 OR THE CITY'S
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT'S CUSTODIAN OF
RECORDS AT 14 NORTHEAST 1ST AVENUE, 2ND FLOOR, MIAMI, FLORIDA 33132.
The Borrower shall provide to the City, upon request, all Contract Records. The requested
Contract Records shall become the property of the City ,without restriction, reservation, or
limitation on their use and shall be made available by the Borrower at any time upon request by
the City. The City shall have the unlimited right to all books, articles, or other copyrightable
materials developed in the performance of this Agreement, including, but not limited to, the right
of royalty -free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use, and
to authorize others to use, the Contract Records for public purposes.
If the Borrower receives funds from, or is under regulatory control of, other governmental
agencies and those agencies issue monitoring reports, regulatory examinations, or other similar
reports, the Borrower shall provide a copy of each such report and any follow-up communications
and reports to the City immediately upon such issuance unless such disclosure is a violation of
those agencies' rules.
6.5 PRIOR APPROVAL. Except for encumbering the Property as required to obtain the
permitted fmancing as set forth in Section 5.17 of this Agreement and Schedule A and Schedule
B attached hereto, the Borrower shall obtain the City's prior written approval prior to undertaking
any of the following with respect to the Borrower, the Project and/or the Property:
(a) Except for the admission of the investor member as a member of the Borrower
(which shall occur after the date of this Agreement), Permitted Senior Financing,
and Permitted Subordinate Financing, the sale, assignment, pledge, transfer,
hypothecation or other encumbrance or disposition of any proprietary or beneficial
interest in the Borrower, the Project, or the Borrower's estate in the Property, or
any change in the operating control of the Borrower , which shall require the prior
approval of the City's HCLC or the City Commission, as appropriate.
Notwithstanding the foregoing, (i) the investor member of Borrower shall be
permitted to remove a manager in accordance with the terms of the Borrower's
operating agreement; provided that City consent shall be required for any substitute
manager, which consent shall not be unreasonably withheld, conditioned or
delayed, and (ii) the City acknowledges and consents to the collateral assignment
of the manager's membership interests in the Borrower in favor of the lenders of
the Permitted Senior Financing, and such lenders' enforcement of such collateral
assignment.. If the investor member of Borrower exercises its right to remove a
manager thereof, the Lender shall not unreasonably withhold its consent to the
substitute manager. Nothing herein shall be construed as restricting the transfer of
Page 22 of 40
the investor member's interest, either directly or indirectly, in the Borrower at any
time. Additionally, Lender hereby consents to the transfer of any investor member
ownership interests in the Borrower and copies of the transfer or amendment
documents shall be delivered to Lender.
(b) Except in the case of repair and replacement caused by normalwear and tear and
otherwise due to casualty or condemnation in accordance with the terms of this
Agreement, the disposition of any real property or any expendable personal
property or non -expendable personal property as provided in Article 4.
(c) INTENTIONALLY OMITTED
(d) Any proposed Solicitation Notice, Invitation, for Bids or Request for Proposals
relating to the use of the Bond Funds.
(e) The disposal of any Contract Records during the Retention Period.
(f) INTENTIONALLY OMITTED
6.5.1 DISCRETION. The Director of the Department of Housing and Community
Development of the City of Miami shall have the discretion to approve and authorize, by way of
Memorandum to the City Manager, the execution of necessary documents to further Project Close -
Out, provided, however, that no material terms are affected.
6.6 MONITORING. The Borrower shall permit the City and other persons duly authorized by
the City to inspect all Contract Records, facilities, goods, and activities of the Borrower that are in
any way connected to the activities undertaken pursuant to the terms of this Agreement, and/or to
interview any clients, employees, subcontractors, or assignees of the Borrower. Following such
inspection or interviews, the City will deliver to the Borrower a report of its fmdings. The Borrower
will rectify all deficiencies cited by the City within the period of time specified in the report, or
provide the City with a reasonable justification for not correcting the deficiencies. The City will
determine, in its sole and absolute discretion, whether or not the Borrower's justification is
acceptable.
6.7 CONFLICT OF INTEREST.
A. The Borrower is aware of the conflict of interest laws of the City of Miami (Code
of the City of Miami, Florida, Chapter 2, Article V), of Miami -Dade County, Florida (Code of
Miami -Dade County, Florida, Section 2-11.1), and of the State of Florida (as set forth in Florida
Statutes), and agrees that it will fully comply in all respects with the terms thereof and any future
amendments.
B. The Borrower covenants that no person or entity under its employ presently
exercising any functions or responsibilities in connection with this Agreement has any personal
financial interests, direct or indirect, with the City. The Borrower further covenants that, in the
performance of this Agreement, no person or entity having such conflicting interest shall be
Page 23 of 40
utilized in respect to the Scope of Work or services provided hereunder. Any such conflict of
interest(s) on the part of the Borrower or its employees or associated persons or entities must be
disclosed to the City.
C. The Borrower shall disclose any possible conflicts of interest or apparent
improprieties of any party under or in connection with the Legal Requirements, including the
standards for procurement.
D. The Borrower shall make any such disclosure to the City in writing and
immediately upon the Borrower's discovery of such possible conflict. The City's determination
regarding the possible conflict of interest shall be binding on all parties.
E. No employee, agent, consultant, elected official or appointed official of the City,
exercising any functions or responsibilities in connection with the City's Bond Program or this
Agreement, or who is in a position to participate in the decision -making process or gain inside
information regarding Bond -assisted activities, has any personal fmancial interest, direct or
indirect, in this Agreement, the proceeds hereunder, the Project or the Borrower , either for
themselves or for those with whom they have family or business ties, during their tenure or for one
year thereafter.
6.8 RELATED PARTIES. The Borrower shall report to the City the name, purpose for and
any other relevant information in connection with any related -party transaction. The term "related
party transaction" includes, but is not limited to, a transaction or relationship between the Borrower
and a for -profit or nonprofit subsidiary or affiliate organization, an organisation with an
overlapping board of directors, and an organization for which the Borrower is responsible for
appointing memberships. The Borrower shall report this information to the City upon forming the
relationship, or if already formed, shall report such relationship prior to or simultaneously with the
execution of this Agreement. Any supplemental information shall be promptly reported to the City
no later than in the next required Progress Report, as described above.
6.9 PUBLICITY AND ADVERTISEMENTS. The Borrower shall ensure that all publicity and
advertisements prepared and released for the Project, by the Borrower, such as pamphlets and news
releases, related to activities funded by this Agreement, and all events carried out to publicize the
accomplishments of any activities funded by this Agreement, recognize the City as one of its
funding sources.
6.10 ADDITIONAL FUNDING. The Borrower shall notify the City of any additional funding
received for any activity described in this Agreement, other than those fmancings disclosed to the
City in writing as of the date hereof, which are provided for in Section 5.17 of this Agreement.
Such notification shall be in writing and received by the City within thirty (30) calendar days of
the Borrower's notification by the funding source. The City shall not be required to subordinate
the Loan Agreement to any future financing or refinancing that is undertaken solely for the purpose
of equity cash -out or distributions to the Borrower or Borrower's affiliates. Notwithstanding the
foregoing, the City may, in its sole and absolute discretion, agree to subordinate the Loan in
connection with a future refinancing that is undertaken for (i) interest rate savings, (ii) extension
of maturity on materially similar terms, or (iii) refinancing capital improvements to the Project.
Page 24 of 40
Any such subordination shall be subject to the terms and conditions acceptable to the City in its
sole discretion.
6.11 REVERSION OF ASSETS. The Borrower shall return to the City upon the expiration or
termination of this Agreement any Bond Funds on hand, any accounts receivable attributable to
the Bond Funds, and any overpayments due to unearned funds or costs disallowed pursuant to the
terms of this Agreement that were disbursed to the Borrower by the City. Any funds not earned by
the Borrower prior to the expiration or termination of this Agreement shall be retained by the City
6.12 REPAYMENT OF FUNDS PROCEDURES. The Borrower shall repay to the City all
funds received by the Borrower pursuant to this Agreement all unpaid interest accrued thereon,
and all unpaid fees, charges and other obligations of the Borrower due under any of the Loan
Documents, as provided therein.
6:13 AFFIRMATIVE MARKETING. The Borrower shall comply with the affirmative
marketing requirements and procedures provided on Exhibit "E." Borrower shall comply with the
requirements of the affordable housing notice to City Officials ,in City of Miami Ordinance
- #13491.
6.14 SECTION 3 CLAUSE. The Borrower shall comply, to the extent applicable, with the
requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended (12
U.S.C. 1701u):
(A) The work to be performed under this contract is subject to the requirements of
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12
U.S.C. 1701u (Section 3.) The purpose of Section 3 is to ensure that employment
and other economic opportunities generated by HUD assistance or HUD -assisted
projects covered by Section 3 shall, to the greatest extent feasible, be directed to
low income persons, particularly persons who are recipients of HUD assistance for
housing.
(B) The parties to this contract agree to comply with HUD's regulations in 24 C.F.R.
Part 135, which implement Section 3. As evidenced by their execution of this
contract, the parties to this contract certify that they are under no contractual or
other impediment that would prevent them from complying with the Part 135
regulations.
(C) The contractor agrees to send to each labor organization or representative of
workers with which the contractor has a collective bargaining agreement or other
understanding, if any, a notice advising the labor organization or worker's
representative of the contractor's commitments under this Section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the notice.
The notice shall describe the Section 3 preference, shall set forth minimum number
and job titles subject to hire, availability of apprenticeship and training positions,
Page 25 of 40
the qualifications for each; and the name and location of the person(s) taking
applications for each of the positions; and the anticipated date the work shall begin.
(D) The contractor agrees to include this Section 3 clause in every subcontract subject
to compliance with regulations in 24 C.F.R. Part 135, and agrees to take appropriate
action, as provided in an applicable provision of the subcontract or in this Section
3 clause. The contractor will not subcontract with any subcontractor where the
contractor has notice or knowledge that the subcontractor has been found in
violation of the regulations in 24 C.F.R. Part 135.
(E) The contractor will certify that any vacant employment positions, including training
positions, that are filled (1) after the contractor is selected but before the contract is
executed, and (2) with persons other than those to whom the regulations of 24
C.F.R. Part 135 require employment opportunities to be directed, were not filed to
circumvent the contractor's obligations under 24 C.F.R. Part 135.
(F) Noncompliance with HUD's regulations in 24 C.F.R. Part 135 may result in
sanctions, termination of this contract for default, and debarment or suspension
from future HUD assisted contracts.
(G) With respect to work performed in connection with Section 3 covered Indian
housing assistance, Section 7(b) of the Indian Self -Determination and Education
Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under
this contract. Section 7(b) requires that to the greatest extent feasible (i) preference
and opportunities for training and employment shall be given to Indians, and (ii)
preference in the award of contracts and subcontracts shall be given to Indian
organizations and Indian -owned Economic Enterprises. Parties to this contract that
are subject to the provisions of Section 3 and Section 7(b) agree to comply with
Section 3 to the maximum extent feasible, but not in derogation of compliance with
Section 7(b).
6.15 SIGNAGE, ACKNOWLEDGEMENT, PUBLICITY. During the Term of this Agreement,
the Borrower shall furnish signage identifying the Project and shall acknowledge the contribution
of the City by incorporating the seal of the City and the names of the City commissioners and
officials in and on all documents, literature, pamphlets, advertisements, and signage, permanent or
otherwise. All such acknowledgments shall be in a form acceptable to the City, as provided on
Exhibit "E".
The Borrower shall ensure that all publicity and advertisements related to the Project which
are prepared by or at the direction of the Borrower, such as pamphlets and news releases, and all
events carried out to publicize the Project; shall recognize the City as one of the Project's funding
sources.
6.16 AFFIRMATIVE ACTION. The Borrower shall not discriminate on the basis of race, color,
national origin, sex, religion, age, sexual orientation, marital or family status or handicap/disability
in connection with its performance under this Agreement or in connection with the construction of
Page 26 of 40
the Project or the occupancy of any Project unit. Age discrimination and discrimination against
minor dependents are also not permitted. The Borrower shall meet the fair housing requirements
of 24 C.F.R. § 570.904.
6.17 , MAINTENANCE OF LEGAL EXISTENCE -AND AUTHORITY. Borrower shall
maintain its existence as a limited liability company and authority to conduct its business under
the laws of the State of Florida and the Code of the City, as amended from time to time.
6.18 COMPLIANCE REQUIREMENTS. The Borrower shall comply at all times with all
applicable Bond Requirements including, but not limited to, those affecting the ownership,
construction, use, and operation of the Project, and all other Legal Requirements.
The Borrower shall at any time and from time to time upon the request of the City, at
Borrower's sole cost and expense, execute, acknowledge and deliver such further notices and other
documents and perform such other acts as may, in the opinion of the City, be necessary, desirable
or proper to carry out more effectively the purposes of this Agreement and the other Loan
Documents.
6.19 COMPLIANCE WITH SAFETY PRECAUTIONS. The Borrower shall allow City
inspectors, agents or representatives the ability to monitor its compliance with safety precautions
as required by federal, state or local laws, rules, regulations and ordinances. By performing these
inspections, the City, its agents, or representatives are not assuming any liability by virtue of such
laws, rules, regulations and ordinances. The Borrower shall have no recourse against the City, its
agents, or representatives for the occurrence, non-occurrence or result of such inspection(s).
Simultaneously with the submission of its first draw request to the City, the Borrower shall
contact the City's Risk Management Department Safety Unit in writing to coordinate such
inspection(s).
The Borrower shall affirmatively comply with all applicable provisions of the Americans
with Disabilities Act ("ADA") in the course of providing any work, labor or services funded by
the City, including Titles I and II of the ADA (regarding nondiscrimination on the basis of
disability) and all applicable regulations, guidelines and standards.
6.20 DRAW REQUESTS. Each Request for Disbursement of hard costs must be signed by the
Borrower, and/or the Architect for the Project and the Contractor, if applicable, and each Request
for Disbursement of soft costs must be signed by the Borrower, as more fully set forth in the
Disbursement Agreement.
6.21 INSURANCE PROCEEDS. Notwithstanding anything to the contrary contained herein or
in the other Loan Documents, and subject to any Permitted Senior Financing loan documents, the
Borrower may make insurance proceeds available for the restoration and repair of the Property
and the Project if all of the following conditions are met: the Borrower is not in breach or default
of any provision of the Mortgage or any other loan document between the Borrower and Lender;
(ii) the Borrower determines that there will be sufficient funds, through insurance proceeds and
contributions by the Borrower, to (a) restore and repair the Property and the Project to a condition
Page 27 of 40
as close as reasonably possible to what previously existed, and (b) meet all operating costs and
other expenses, payments for reserves and loan repayment obligations relating to the Property and
the Project until completion of the restoration and repair of the Property and/or the Project to a
condition as close as reasonably possible to what previously existed; (iii) the Borrower determines
that the rental income of the Project, after restoration and repair to a condition as close as
reasonably possible to what previously existed, will be sufficient to meet all operating costs and
other expenses, payments for reserves and loan repayment obligations relating to the Project, and
(iv) the Borrower has received the City's written concurrence with such determination.
6.22 CONDEMNATION PROCEEDS. Notwithstanding anything to the contrary contained
herein or in the other Loan Documents, and subject to any Permitted Senior Financing loan
documents, the Borrower may make proceeds of condemnation available for the restoration and
repair of the Property and the Project if all of the following conditions are met: (i) the Borrower is
not in breach or default of any provision of the Mortgage or any other Loan Document; (ii) the
Borrower determines that there will be sufficient funds, through condemnation proceeds and
contributions by the Borrower, to (a) restore and repair the Property and the Project to a condition
as close as reasonably possible to what previously existed, due consideration given to the portion
of the Property and the Project taken, and, (b) meet all operating costs and other expenses,
payments for reserves and loan repayment obligations relating to the Project until completion of
the restoration and repair of the Property and the Project to a condition as close as reasonably
possible to what previously existed, due consideration given to the portion of the Property and the
Project taken; and (iii) the Borrower determines that the rental income of the Project, after
restoration and repair of the Property and the Project to a condition as close as reasonably possible
to what previously existed, due consideration given to the portion of the Property and the Project
taken, will be sufficient to meet all operating costs and other expenses, payments for reserves and
loan repayment obligations relating to the Project, and (iv) the Borrower have received the City's
written concurrence with such determination.
ARTICLE VII
DEFAULT
7.1 The happening of any one or more of the following events continuing beyond any
applicable notice and cure period shall constitute an Event of Default:
(a) In the event any of the Bond Assisted Units fails to remain Affordable at any time
during the Affordability Period, the Borrower's failure to initiate action to cure such
non-compliance within five (5) business days of receipt of knowledge of the same.
(b) If any term, condition or representation contained in this Agreement or any of the
other Bond Documents is materially untrue, substantially inaccurate or incomplete
when made, or, if there is a material misrepresentation of fact or fraud contained in
any document(s) submitted in support of this Agreement.
(c)
The substantial discontinuance of the construction of the Project for a period of
thirty (30) calendar days which discontinuance is, in the sole determination of the
City, without satisfactory cause. Force majeure events such as a pandemic, natural
Page 28 of 40
J
disaster, terrorism, supply or labor shortages and acts of god shall be deemed
satisfactory cause
(d) Except for Permitted Senior Financing, Permitted Subordinate Financing and for
permitted transfers as set forth in Section 6.5 above, the sale, assignment, pledge,
transfer, hypothecation or other encumbrance or disposition (except due to repair
or replacement for normal wear and tear, and as a result of casualty or
condemnation) of any proprietary or beneficial interest in the Borrower, the Project
or the Property, or any change in operating control of the Borrower without the
prior approval of the City's HCLC or the City Commission, as appropriate.
(e)
In the event that the City determines, in its reasonable discretion, that the Project is
not being constructed in a good and workmanlike manner in accordance with the
Scope of Work, or that the Borrower is failing to comply promptly with any
requirement or notice of violation of law issued by or filed by the City or any
department of any governmental authority having jurisdiction over the Borrower,
or the Property.
(f) Failure of the Borrower to comply with any material term, provision, covenant or
obligation of this Agreement or any of the Loan Documents, or the occurrence of
an event of default under any of the other Loan Documents after notice and a
reasonable opportunity to cure.
(g)
Any change in zoning requirements or zoning classification of the Property, which
in the City's sole discretion would materially interfere with the completion of
Project construction or the ultimate operation of the Project as contemplated herein.
(h) In the event that the City determines, in its reasonable discretion, that there exists
an event of default under and pursuant to the terms of any other agreement or
obligation of any kind or nature whatsoever of the Borrower to the City, direct or
contingent, whether now or hereafter due, existing, created or arising.
(i)
Borrower declares bankruptcy and/or becomes insolvent, which shall result in
immediate acceleration of the loan's repayment in full.
ARTICLE VIII
REMEDIES
8.1 Upon the occurrence of any Event of Default which continues beyond any
applicable notice and cure period, the City shall have the absolute right to refuse to disburse any
undisbursed portion of the Loan.
The City shall provide written notice of the occurrence of an Event of Default to the
Borrower and its investor member, after which the Borrower shall have thirty (30) calendar days
to cure said default (except for the events described in Section 7.1 (b) and (d) and possibly (i)
above for which the aforementioned cure period shall not apply).
Page 29 of 40
In the event a default which is permitted to be cured cannot practicably be cured within
thirty (30) days, the Borrower shall have such additional time as may be required to effect. a cure,
so long as (a) the cure is commenced within thirty (30) calendar days and is diligently prosecuted
and (b) the lack of a cure during such continuing cure period has no material adverse effect on the
Project. The City agrees to accept cure of any default committed by the Borrower, which cure is
tendered or effected by the investor member, as if such cure had been tendered or effected by the
Borrower.
If an Event of Default shall continue uncured for a period of thirty (30) consecutive days
following written notice thereof to the Borrower (except for the events described in Section 7.1 (U)
and (d) above for which the aforementioned cure period shall not apply and except for cures which
are continuing as provided in the preceding paragraph), and subject to the provisions of the last
paragraph of this Section, the City shall have the absolute right, at its option and election and in
its sole discretion to, and subject to the terms and conditions of the Subordination Agreement (as
hereinafter defined):
(a) Specific Performance. Institute appropriate proceedings to specifically
enforce performance of the terms and conditions of this Agreement;
(b) Acceleration of Debt. It is expressly agreed that the full amount of both
principal and interest due pursuant to the Note shall become due and
payable at the option of the City on the happening of any Event of Default
under the terms of this Loan Agreement.
(c) Other Remedies. Exercise any other right, privilege or remedy available to
the City as may be provided by applicable law, or in any of the other Bond
Documents.
It is understood and agreed that the occurrence of an event of default under Section 7.1 (b)
or O or possibly (i) shall immediately entitle the City to exercise any of the above„ described
remedies without the need to give the Borrower notice thereof or the opportunity to cure.
Notwithstanding anything contained herein or the other Loan Documents to the contrary, the
Borrower's investor member shall have the right, but not the obligation, to cure any Event of
Default hereunder or under the other Loan Documents, and such cure shall be accepted or rejected
on the same basis as if tendered by the Borrower.
The rights and remedies of the City hereunder shall be cumulative and not mutually
exclusive, and the City may resort to any one or more or all of said remedies without exclusion of
any other. No party other than the City, whether the Borrower or a material man, laborer,
subcontractor or supplier, shall have any interest in the Bond Funds withheld because of a default
hereunder, and shall not have any right to garnish or require or compel that payment thereof be
applied toward the discharge or satisfaction of any claim or lien which any of them may have.
8.2 In addition to any other remedies provided for herein or in any of the other Loan
Documents, upon the occurrence and during the continuance of an Event of Default:
Page 30 of 40
(a) All sums outstanding under the Note shall bear interest at the highest rate allowable
by law from the date of disbursement, without notice to the Borrower or any
guarantor or endorser of the Note and without any affirmative action or declaration
on the part of the City;
(b) The Restrictive Covenant shall remain as a restriction on the Property throughout
the Affordability Period; and
(c) The Borrower, Borrower, Project developerqmanaging partner(s) of the Borrower,
and/or other individuals, principals and/or other entities as determined by the City,
will be debarred from receiving any City funding for a period of five (5) years.
ARTICLE IX
INDEMNIFICATION
9.1 The Borrower shall indemnify, hold harmless, and defend the City, its officers, agents,
directors, and/or employees, from any and all liabilities, claims, damages, losses, suits, judgments,
and costs, including, but not limited to reasonable attomey's fees, to the extent caused by the
negligence, recklessness, negligent act or omission, or intentional wrongful misconduct of
Borrower and persons employed or utilized by Borrower in the performance of this Agreement.
Borrower shall, further, hold the City, its officials and/or employees, harmless for, and defend the
City, its officials and/or employees against, any civil actions, statutory or similar claims, injuries
or damages arising or resulting from the permitted work, even if it is alleged that the City, its
officials and/or employees were negligent. These indemnifications shall survive the term of this
Agreement. In the event that any action or proceeding is brought against the City by reason of any
such claim or demand, the Borrower shall, upon written notice from the City, resist and defend
such action or proceeding by counsel satisfactory to the City. The Borrower expressly understands
and agrees that any insurance protection required by this Agreement or otherwise provided by the
Borrower shall in no way limit the responsibility to indemnify, keep and save harmless and defend
the City or its officers, employees, agents and instrumentalities as herein provided.
The indemnification provided above shall obligate the Borrower to defend, at its own expense, to
and through appellate, supplemental or bankruptcy proceeding, or to provide for such defense, at
the City's option, any and all claims of liability and all suits and actions of every name and
description which may be brought against the City whether performed by the Borrower, or persons
employed or utilized by Borrower.
This indemnity will survive the cancellation or expiration of the Agreement. This indemnity will
be interpreted under the laws of the State of Florida, including without limitation and
interpretation, which conforms to the limitations of §725.06 and/or §725.08, Florida Statutes, as
applicable.
The Borrower agrees and recognizes that the City shall not be held liable or responsible for any
claims which may result from any actions or omissions of the Borrower in which the City
participated either through review or concurrence of the Borrower's actions. In reviewing,
Page 31 of 40
approving or rejecting any submissions by the Borrower or other acts of the Borrower, the City in
no way assumes or shares any responsibility or liability of the Borrower or Sub -contractor under
this Agreement.
ARTICLE X
TERMINATION
The Borrower acknowledges that this Agreement may be terminated if the Borrower
materially fail to comply with the terms contained herein.
10.1 TERMINATION BECAUSE OF LACK OF FUNDS. In the event the City does not receive
from its funding source funds to fmance this Agreement, or in the event that the City's funding
source de -obligates the funds allocated to finance this Agreement, the City may terminate this
Agreement upon not less than twenty-four (24) hours prior notice in writing to the Borrower. Said
notice shall .be delivered by certified mail, return receipt requested, or by in person delivery with
proof of delivery. The City shall determine, in its sole and absolute discretion, whether or not funds
are available.
10.2 TERMINATION FOR BREACH. The City may terminate this Agreement, in whole or in
part, in the event, the City determines, in its sole and absolute discretion, that either the Borrower
is not making sufficient progress with regard to the Project's construction (thereby endangering its
ultimate performanceunder this Agreement) or is not materially complying with any term or
provision of this Agreement, following the giving of notice and the expiration of all applicable
cure periods.
The City may terminate this Agreement, in whole or in part, in the event that the City
determines, in its reasonable discretion, that there exists an event of default under and pursuant to
the terms of any other agreement or obligation of any kind or nature whatsoever of the Borrower
to the City, direct or contingent, whether now or hereafter due, existing, created or arising, which
event of default has continued beyond any applicable cure period.
10.3 Upon the occurrence of an Event of Default and the expiration of any cure period. (in those
circumstances for which a cure period is otherwise provided in this Agreement), and unless the
Borrower's breach is waived by the City in writing, the City may, by written notice to the
Borrower, terminate this Agreement upon not less than twenty-four (24) hours prior written notice.
Said notice shall be delivered by certified mail, return receipt requested, or by in person delivery
with proof of delivery. Waiver of breach of any provision of this Agreement shall not be deemed
to be a waiver of any other breach and shall not be construed to be a modification of the terms of
this Agreement. The provisions hereof are not intended to be, and shall not be, construed to limit
the City's right to legal or equitable remedies.
ARTICLE XI
SUSPENSION
11.1 The City may, for reasonable cause, and after all applicable notice and cure periods,
suspend the Borrower's authority to obligate funds under this Agreement or withhold payments to
Page 32 of 40
the Borrower, or both, pending necessary corrective action by the Borrower. Reasonable cause
may include:
(a) Ineffective or improper use of the Bond Funds by the Borrower.
(b) Failure of the Borrower to materially comply with any term or provision of this
Agreement; or
(c) Failure of the Borrower to submit any documents required by this Agreement; or
(d) The Borrower's submittal of incorrect or incomplete documents.
11.2 The determinations and actions described in paragraph 11.1 above may be applied to all or
any part of the activities funded pursuant -to this Agreement.
11.3 The City will notify the Borrower in writing of the type of action taken pursuant to this
Article, by certified mail, return receipt requested, or by in person delivery with proof of delivery.
The notification will include the reason(s) for such action, any conditions relating to the action,
and the necessary corrective action(s).
ARTICLE XII
MISCELLANEOUS
12.1 ENFORCEMENT METHODS. As a means of enforcing compliance with the Bond
Program, the City may utilize any enforcement measures it deems necessary.
12.2 RENEGOTIATION, MODIFICATION, OR SUBORDINATION. Modification of
provisions of this Agreement shall be valid only when in writing and signed by the parties hereto.
The parties agree to modify this Agreement if the City determines, in its sole and absolute
discretion, that federal, state, and/or local governmental revisions of any applicable laws or
regulations, or increases or decreases in budget allocations, make changes to this Agreement
necessary. The City shall be the final authority in determining whether or not funds for this
Agreement are available due to federal, state and/or local governmental revisions of any applicable
laws or regulations, or increases or decreases in budget allocations. Moreover, the City shall
determine in its sole and absolute discretion whether to subordinate the Mortgage; provided that
the City hereby acknowledges and agrees that the Loan and all of the Loan Documents (including,
but not limited to, the Mortgage) shall be subordinate to the Permitted Senior Financing.
Notwithstanding anything to the contrary set forth in this Agreement or any of the other
Loan Documents, Lender acknowledges that the Loan and the Loan Documents and the rights of
Lender with respect thereto or thereunder shall be subordinate, in right or payment and priority, to
the rights conferred upon the holder of any Permitted Senior Financing (together with their
respective assignees, successors, agents, trustees or nominees, a "Permitted Senior Lender")
under the documents governing its Permitted Senior Financing, all in accordance with the terms
Page 33 of 40
set forth in one or more subordination agreements to be entered into by the Lender and the
Permitted Senior Lenders.
12.3 RIGHT TO WAIVE. The City may, for good and sufficient cause, as determined by the
City in its sole and absolute discretion, waive provisions of this Agreement or seek to obtain such
waiver -from an appropriate authority. Waiver requests from the Borrower shall be in writing. A
waiver shall not be construed to be a modification of this Agreement.
12.4 BUDGET AND BOND ELIGIBILITY ACTIVITY TITLE REVISIONS. Revisions to the
Budget shall be made in writing, and approved in writing by the City; however, such revisions
shall not necessitate an amendment hereto unless the amount of the Loan to be granted hereunder
is changed, or unless otherwise required by the City.
A revision to the Bond eligibility activity titles under which this Agreement's objectives
are classified shall not require an amendment hereto.
12.5 DISPUTES. In the event an unresolved dispute exists between the Borrower and the City,
the City shall refer the issue, including the views of all interested parties and the recommendation
of the City, to the City Manager, his designee, or such other official of the City who shall be
authorized to exercise the authority of the City Manager in this regard ("City Manager") for
determination. The City -Manager will issue a determination within thirty (30) calendar days of
receipt of a written request for resolution of the dispute and so advise the City and the Borrower.
In the event additional time is necessary, the City Manager will notify the interested parties within
the thirty (30) day period that additional time is necessary. The Borrower agrees that the City
Manager's determination shall be fmal and binding on all parties, subject only to judicial review.
12.6 HEADINGS. The article and paragraph headings in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement.
12.7 PROCEEDINGS. The Agreement shall be construed in accordance with the laws of the
State of Florida and any proceedings arising between the parties in any manner pertaining or
relating to this Agreement shall, to the extent permitted by law, be held in Miami -Dade County,
Florida.
12.8 NOTICES AND CONTACT. All notices under this Agreement shall be in writing and
addressed as follows:
To City:
With Copy To:
City of Miami
Department of Housing and Community Development
444 S.W. 2nd Avenue
Miami, FL 33130-1910
Attn: Victor Turner, Director
George K. Wysong III
City Attorney
City of Miami
Page 34 of 40
To Borrower:
With Copy to:
To investor member:
With Copy to:
444 S.W. 2nd Avenue
Miami, FL 33130-1910
5215 FLAGLER STREET, LLC
2850 Tigertail Avenue, Suite 800
Miami, FL 33133
Attention: Tony Del Pozzo
Brian J. McDonough, Esq.
Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.
150 West Flagler Street, Suite 2200
Miami, FL 33130
RJ MT 5215 Flagler Street Apartments L.L.C.
c/o Raymond James Affordable Housing Investments, Inc.
880 Carillon Parkway
St. Petersburg, Florida 33716
Email Address: Steve.Kropf@RaymondJames.com
Attention: Steven J. Kropf, President
Dawna J. Steelman, Esq.
Klein Hornig LLP
1325 G Street NW, Suite 770
Washington, DC 20005
Email Address: dsteelman@kleinhornig.com
Except as otherwise provided in this Agreement, notice shall be deemed given upon hand
delivery or five (5) business days after depositing the same with the U.S. Postal Service. The
address or designated representative of the parties may be changed by notice given in accordance
with this section.
12.9 CONFLICTS WITH APPLICABLE LAWS. If any provision of this Agreement conflicts
with any applicable law or regulation, only the conflicting provision shall be deemed by the parties
hereto to be modified, or to be deleted if modification is inappropriate, to cause the provision to
be consistent with the law or regulation. However, the obligations under this Agreement, as
modified, shall continue and all other provisions of this Agreement shall remain in full force and
effect. To the extent of any conflict between the applicable laws for the Loan Documents and
applicable laws for any other loan documents, agreements, or recorded documents associated with
the Project, whichever applicable law is strictest will control.
12.10 ENTIRE AGREEMENT. This Agreement and its Exhibits described as follows contain all
the terms and conditions of the Agreement between the parties:
Exhibit A
Exhibit B
Legal Description
Scope of Work/Project Schedule
Page 35 of 40
Exhibit C Budget
Exhibit D Form of Disbursement Agreement
Exhibit E Affirmative Marketing Procedures and Responsibilities
Exhibit F Signage Requirements
Exhibit G Insurance Requirements -
Exhibit H Anti -Human Trafficking Affidavit
Schedule A Permitted Senior Financing
12.11 WAIVER OF JURY TRIAL. Neither the Borrower, the Borrower, the Project
subcontractor(s), nor any other person liable for the responsibilities, obligations, services and
representations herein, nor any assignee, successor, heir or personal representative of the Borrower ,
the Project subcontractors or any other person or entity shall seek a jury trial in any lawsuit,
proceeding, counterclaim or any other litigation procedure based upon or arising out of this
Agreement, or the dealings or the relationship between or among such persons or entities, or any of
them. Neither the Borrower, the Borrower, nor the Project subcontractors, nor' any other person or
entity will seek to consolidate any such action in which a jury trial has been waived with any other
action. The provisions of this paragraph have been fully discussed by the parties hereto, and the
provisions hereof shall be subject to no exceptions. Neither party to this Agreement has in any manner
agreed with or represented to any other party that the provisions of this paragraph will not be fully
enforced in all instances.
12.12 GOVERNING LAW AND VENUE. This 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 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.
12.13 HCLC AWARD MEMORANDA. The award memoranda and decisions of the HCLC
dated March 28, 2023, and September 20, 2024, and as amended on March 26, 2025 ("Award
Memoranda") are hereby incorporated by reference. To the extent of any conflict between the
Award Memoranda and the Loan Documents and when interpreting the intent of the Loan
Documents, whichever provision is strictest will control. To the extent of any conflict between the
Award Memoranda, the most recent Award Memorandum controls.
12.14 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.
12.15 INCREASE IN PROJECT COSTS. In the event that the Project's costs increase by ten
percent (10%) or more of the Budget that is attached as Exhibit "C," and Borrower is unable to
Page 36 of 40
secure the requisite funding to cover the additional expense within 60 calendar days before the
Project's construction commences, then the City is permitted to recommend to HCLC that the
Bond Funds should be de -obligated for this Project.
12.16 TENANT LOTTERY: -The selection of eligible tenants to occupy the Bond Assisted
Units shall be from the results of a tenant lottery, which shall be conducted with a representative
of the City of Miami present. In addition, the Borrowers and the Bond Assisted Units shall
comply with the requirements of the City of Miami Ordinance #13645 regarding Resident
Preference.
12.17 COSTS, INCLUDING ATTORNEY'S FEES. The Borrower agrees to pay when due for
which an invoice is provided, all reasonable costs and expenses in connection with the
administration or monitoring of compliance with this Agreement and all related documents and
any other documents which may be delivered in connection with this Agreement or the transactions
contemplated hereby, including, without limitation, the reasonable fees and out of pocket expenses
of the City and of counsel and any agents or consultants for the City, with respect thereto, in
connection with the administration or monitoring of this Agreement and such other documents as
may be delivered in connection herewith. In addition, the Borrower shall pay any and all stamps
and other taxes and fees payable or determined to be payable in connection with the execution,
delivery, filing and recording of this Agreement and such other documents as may be delivered in
connection herewith, and agrees to save the City harmless from and against any and all liabilities
with respect to or resulting from any delay in paying or omission to pay such taxes and fees.
In the event litigation, arbitration, or mediation, between the parties hereto, arises out of
the terms of this Agreement, each party shall be responsible for its own attomey's fees, costs,
charges, and expenses through the conclusion of all appellate proceedings, and including any final
settlement or judgment.
12.18 The Borrower's obligations pursuant to this Agreement shall be binding upon and
inure to the respective heirs, personal and legal representatives, trustees and successors and assigns
of the Parties hereto, including each and every such Parry's past and present parent, subsidiary,
affiliate or predecessor entities, any and all entities by which or under a name by which any Party
has been known or has done business, and any and all of his, hers, its and/or their respective past
and present officers, commissioners, directors, principals, trustees, administrators, agents,
attorneys, accountants, insurers, reinsurers, servants, employees, shareholders, members,
managers, partners, heirs, and representatives.
12.19 Any references to federal regulations and programs in this Agreement and its
exhibits are intended to be for illustrative purposes and not an indication that the Project is
specifically subject to the cited regulations. Nonetheless, if this Agreement requires the Borrower
to comply with referenced federal regulations and programs, the City and the Borrower agree that
compliance shall be required as if the Project was subject to those federal regulations and
programs, unless otherwise determined by the City in its sole discretion.
12.20 Borrower specifically acknowledges and agreesto comply with City of Miami
Ordinance No. 13491, § 2-415.
Page 37 of 40
12.21 Parties agree that the Loan will be non recourse except that the exceptions to non -
recourse liability applicable to any Permitted Senior Financing shall also apply to this Loan.
12-.22 Notwithstanding anything to the contrary contained herein, so long as any portion
of the note evidencing the first mortgage loan is unpaid, Lender's rights to declare a default,
accelerate the indebtedness secured by the Note, the Mortgage, this Agreement and the other
Loan Documents, commence a foreclosure of,the Mortgage, or pursue any other right or remedy
hereunder, under the Note or the other Loan Documents, are subject to that certain Subordination
Agreement, by and between Lender and The Bank of New York Mellon Trust Company, N.A.,
and acknowledged and agreed to by Borrower (the "Subordination Agreement").
[Remainder of page left Blank]
[Signatures on Following Pages]
Page 38 of 40
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their
undersigned officials as duly authorized.
WITNESSES:
Signature:
Print Name: L.- 17.;,,tl�,e�
Address: 2850 Tigertail Avenue, Suite 800,
Miami, Florida 33133
Signature:
Print Name: 37,0.-,e rhaoi /iPiOi CR0r0
Address: 2850 Tigertail Avenue, Suite 800,
Miami, Florida 33133
STATE OF FLORIDA
COUNTY OF MIAMI-DADE
BORROWER:
5215 FLAGLER STREET, LLC, a
Florida limited liability company
By: 5215 FLAGLER STREET
MANAGER, LLC, a Florida limited
Liability company, its manager
By: 29j
Print Name: Tony Del Pozzo
Title: Vice President
ACKNOWLEDGMENT.
The foregoing instrument was acknowledged before me by means of xi physical presence or O
online notarization, this aday of f-t?(1 , 2025 by Tony Del Pozzo as Vice President of 5215
Flagler Street Manager, LLC, a Florida limited liability company, the manager of 5215 FLAGLER
STREET, LLC, a Florida limited liability company. She/He is personally known to me or has
produced as identification.
Notary Public State of Florida is Print Name:
Jazzlne C. Herrera
My Commission HH 405431
Expires 1/8/2028
Page 39 of 40
. (\72a Yle, i Ae ive ct
Notary Public, Sate of Florida at large
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their undersigned officials as duly authorized.
ATTEST:
Date:
APPROVED AS TO
REQUIREMENT
Ann -Marie arpe
CITY:
CITY OF MIAMI, a municipal corporation of the
State of Florida
By:
Arthur Norieg. , City Manager
APPROVED AS TO FORM AND
CORRECTNESS:
George W WysonI
Director of Risk anagement City Attorney ¶ Z`t - 6 1
APPROVED AS TO
DEPARTMENTAL REQUIREMENTS:
By:
Victor T. Turner
Director of the Department of Housing and
Community Development
Page 40 of 40
Exhibit A
Legal Description of the Property
Leasehold estate created by that Lease by and between the City of Miami, a Florida municipal
corporation, as Landlord, and 5215 Flagier Street, LLC, a Florida limited liability company dated
2025, as evidenced by the Memorandum of Lease recorded , 2025, in Official
Records Book , Page , over the following described lands:
Lots 15, 16, 17, 18, 19, 2,0, 21, and 22 of COLSKY'S RE -SUBDIVISION, according to the Plat
thereof, as recorded in Plat Book 13, at Page 16, of the Public Records of Miami -Dade County,
Florida.
Exhibit B
WORK SCOPE / DEVELOPMENT SCHEDULE
Flagler Villas
The Flagler Villas project will be the new construction of a 6-story mid -rise multifamily
building consisting of a total of 60 units located at 5215 W. Flagler Street in the Flagami
neighborhood. All units will be one-bedroom/one-bathroom targeting elderly households
at or below 30% of the area median income. All units will be city assisted with CPF and
GOB funds.
Estimated Date
Building Permitting (Permit Ready) May/2025
Start of Construction November/2025
Construction Completion November/2026
Commence Affirmative Marketing July/2026
Initial Lease -Up (Leasing Activities Commence) October/2026
Stabilized Occupancy May/2028
Exhibit C
Budget
Category
Amount
PRE-DEVELOPMENT/CONSTRUCTION READY COSTS
Architect & Engineering Fees
$500,000.00
Impact & School Fees
$10,000.00
Permits / Fees
$490,000.00
Licenses / Environmental / Utility Fees
$480,000.00
Surveys
$20,000.00
Subtotal
$1,500,000.00
Remaining Funds to be used
$600,000
TOTAL
2,100,000.00
APPLICANT:
CITY OF MIAMI
DEPARTMENT OF COMMUNITY DEVELOPMENT
SOURCES AND USES: NEW CONSTRUCTION/REHABILITATION AFFORDABLE RENTAL HOUSING
5215 Flagler Street, LLC
PROJECT NAME: Flagler Villas
Evidence of source must be included
Financing Sources: Specify Name
Total Project
City of Miami
HUD CPF:
City of Miami
GOB:
Tax -Exempt
First Mortgage
Taxable First
Mortgage
Tax Credit
Equity
Investment
Deferred
Developer Fees
Total
Construction
Sources
Land Acquisition
100
100
100
Hard Costs
14,800,000
1,378,000
600,000
9,322,000
3,500,000
-
14,800,000
Construction ( incl. Site work)
Construction Contingency
843,600
843,600
843,600
Construction: Concrete / Soil Test
-
Appliances
-
Construction Supervision
GC Requirements / OH
2,072,000
2,072,000
2,072,000
Total Hard Costs
17,715,600
3,450,000
600,000
10,165,600
3,500,000
-
-
17,715,600
Soft Costs
682,833
500,000
182,833
682,833
Arch Design, Civil Engineering
Impact & School Fees
18,000
10,000
8,000
18,000
Permits / Fees
563,759
490,000
73,759
563,759
Legal Fees
647,000
647,000
647,000
Licenses / Environmental / Utility Fees
693,800
480,000
213,800
693,800
Appraisal / Surveys
47,500
20,000
27,500
47,500
Insurance: Construction Period
429,862
429,862
429,862
Marketing / Advertising Fees
50,000
50,000
50,000
Loan Closing / Financing Fees
678,350
678,350
678,350
Interest / Carrying Costs
1,216,600
1,216,600
1,216,600
Title Insurance & Recording
138,800
138,800
138,800
Temporary/Permanent Relocation Fees
-
-
Taxes
-
-
FF&E
225,000
225,000
225,000
For Use by City: City incurred costs
50,000
50,000
-
50,000
Other Soft Costs
1,090,616
979,308
111,308
1,090,616
Developer Fees & Overhead
4,287,968
-
2,087,981
2,199,987
4,287,968
Soft Cost Contingency
141,938
141,938
-
141,938
Total Soft Costs
10,962,026
50,000
1,500,000
4,334,400
2,877,639
2,199,987
10,962,026
Total Project Cost
28,677,726
3,500,000
2,100,000
14,500,000
3,500,000
2,877,739
2,199,987
28,677,726
Exhibit D
Form of Disbursement Agreement
DISBURSEMENT AGREEMENT FOR
5215 FLAGLER STREET, LLC (MIAMI FOREVER BOND FUNDS)
This Disbursement Agreement for Miami Forever Bond funds ("Disbursement
Agreement") is made as of this day of , 2025 by and between 5215
FLAGLER STREET, LLC, a Florida limited liability company (hereinafter the "Project
Sponsor"), and the CITY OF MIAMI, a municipal corporation of the State of Florida (hereinafter
the "City").
RECITALS
WHEREAS, the Project Sponsor is developing a project known as Flagler Villas (the
"Project"), that will increase the supply of rental housing units for Extremely Low Households in
the community; and
WHEREAS, on March 28, 2023, September 20, 2024, and as modified and affirmed on
March 26, 2025, the City's Housing and Commercial Loan Committee ("HCLC") approved the
allocation of Miami Forever Affordable Housing Limited Ad Valorem Bond ("Bond") funds in
the amount of Two Million One Hundred Thousand and 00/100 Dollars ($2,100,000.00) for the
development of the Project ("Bond Funds"), of which One Million Five Hundred Thousand and
00/100 Dollars ($1,500,000.00) are allocated for the' construction ready costs of the Project; and
WHEREAS, on September 26, 2024, \the City Commission adopted Resolution No. R-24-
0373 approved the allocation of Bond Funds, in accordance with the terms and conditions of the
HCLC Memo, as amended, and thereafter adopted and modified in Resolution No. R-25-0066 on
February 27, 2025 to allocate an amount of Two Million One Hundred Thousand and 00/100
Dollars ($2,100,000.00) of which up to One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000.00) will be used for the Project's construction ready costs (the "Construction Ready
Bond Funds") of the Project; and
WHEREAS, the funding commitment of the City to the Project Sponsor for the Bond Funds
is more fully described in that certain Miami Forever Bond Loan Agreement of even date herewith
(the "Loan Agreement"); and
WHEREAS, the Project Sponsor and the City desire to establish the mechanism whereby
the Project Sponsor will apply to receive the Bond Funds and the Construction Ready Bond Funds;
NOW, THEREFORE, for and in consideration of the Project Sponsor's construction of the
Project and the reciprocal agreements set forth herein, the Project Sponsor and the City agree as
follows:
ARTICLE I
DISBURSEMENT PROCEDURE
1.1 This Disbursement Agreement establishes the conditions to the City's obligation to
loan the Bond Funds and the Construction Ready Bond Funds to the Project Sponsor. The Project
Sponsor may not request disbursement of funds pursuant to this Disbursement Agreement until
such funds are needed for the reimbursement of eligible costs.
Provided the City is obligated to disburse the Bond Funds and the Construction Ready
Bond Funds pursuant to the Loan Agreement, the City will disburse such funds in accordance with
this Article I.
Page 1 of 6
1.2 The Project Sponsor shall submit draw requests for the Bond Funds, which draw
requests will be submitted not more frequently than one (1) time per month. The City shall not
fund any hard cost draw request in an amount that exceeds the City's initial contribution percentage
of the entire development cost of the project. The Project Sponsor will submit or cause to be
submitted the following documentation to the City:
(a) Construction Ready Costs:
(i) A Request for Disbursement for eligible costs as outlined in Section
2.2 of the Loan Agreement, in a form acceptable to the City, together with: (a) copies of invoices
of those costs for which the Project Sponsor is requesting disbursement, and (b) copies of the
Project Sponsor's checks in payment of each soft cost for which disbursement is being requested.
(ii) Within thirty (30) days of the date of each Request for Disbursement,
the Project Sponsor shall submit to the City copies of its cancelled checks confirming fmal
payment of each cost included in such Request for Disbursement.
(iii) Each Request for Disbursement of soft costs must be signed by the
Project Sponsor.
(b) Hard Costs:
(i) A Request for Disbursement, in a form acceptable to the City, setting forth
such details concerning construction of the Project as the City shall require, including: the amount
paid to date to the General Contractor constructing the Project (the "Contractor") and pursuant to
the contract for the construction of the Project between the Project Sponsor and the Contractor (the
"Construction Contract"); the amounts, if any, paid directly by the Project Sponsor to
subcontractors of the Contractor and material men; the amount then currently payable to the
Contractor, broken down by trades; the amounts paid on account of the Contractor's construction
fee; and the balance of the construction costs which will remain unpaid after the payment of the
amount currently payable.
(ii) Any Request for Disbursement must be submitted to the City by no later
than the thirtieth (30th) day of each month. Each Request for Disbursement must be signed
by the Project Sponsor, the architect for the Project and the Contractor.
(iii) Applications for receiving Bond Funds for reimbursement of hard costs will
include a Memorandum of Advance and such architectural documents as the City may require.
The City Inspector, as described in Section 1.3 hereof, shall be required to certify with each draw
request: the amount of work on the Project that has been completed; the good and acceptable
workmanship of the Contractor and its subcontractors; compliance with approved fmal plans and
specifications of the Project; and such other matters as the City may require. Lien waivers/releases
shall be submitted to the City Inspector for review and approval before each disbursement. If the
City requires that its title insurance policy be updated, the Project Sponsor shall also submit to the
title insurance company all lien waivers/releases in connection with each proposed draw. All costs
associated with the title insurance company updating the title insurance policy shall be paid by the
Project Sponsor.
(c) Such other information and documents at the City may require.
Page 2 of 6
(d) Each Request for Disbursement shall constitute a representation and certification
by the Project Sponsor and the Contractor to the City that:
(i) The materials have been physically incorporated into the Project, free of
liens and security interests, and that the construction of the Project to date has been
performed substantially in accordance with the drawings and specifications and in a first-
class workmanlike manner;
(ii) All governmental licenses and permits required by the Project as then
completed have been obtained and are available for inspection by the City;
(iii) The Project as then completed does not violate any law, ordinance, rule,
regulation, or order or decree of any court or governmental authority; and
(iv) No event of default has occurred and is continuing and, to Project Sponsor's
knowledge, there is no continuing default under the Construction Contract.
(v) To Project Sponsor's knowledge, the Project Sponsor, the Contractor and
each subcontractor has complied with all applicable Federal, state and local laws and
regulations relating to labor standards and with HUD Handbook 1344.1 where applicable.
(vi) OMITTED
(vii) Each item for which reimbursement is requested in a Request for
Disbursement is properly chargeable as 'a capital expense for federal income tax,
accounting and state law purposes.
1.3 The City Inspector will review the work that is incorporated into the Project and for
which each Request for Disbursement of the Bond Funds is submitted. The City Inspector will
review and approve the fmal plans and specifications for the Project and will review and approve
the draw requests based on the percentage of work completed. The City Inspector's reviews,
approvals, and conclusions shall be for the sole benefit of the City.
All construction change orders must receive prior written approval of the City
Inspector. Change orders that have not received the prior written approval of the City Inspector
shall not be approved for payment/ reimbursement by the City.
1.4 Within ten (10) business days of its receipt of a Request for Disbursement delivered
pursuant to Section 1.2 hereof and without attempting to verify the completeness of same, the City
will notify the City Inspector of the need to inspect the progress of construction work at the Project
(the "Notification") and shall forward to the City Inspector the Request for Disbursement that has
been delivered by the Project Sponsor.
1.5 The City Inspector shall complete its inspection and submit its report to the City
within five (5) business days of receipt of the Notification.
1.6 If the City finds the materials submitted by the Project Sponsor and the report of
inspection by the City Inspector to be satisfactory to the City and in accordance with the Loan
Agreement, the City shall fund to the Project Sponsor the sum requested by the Project Sponsor or
such lower sum as the City deems appropriate.
Page 3 of 6
1.7 The City shall fund disbursements of the Bond Funds by no later than fourteen (14)
business days after it has received both the Request For Disbursement, in the form required by
Section 1.2 hereof, and the inspection report of the City Inspector, in the form required by Sections
1.2 and 1.3 hereof, provided that all necessary documentation is complete and correct.
1.8 The City shall retain five percent (5%) of the Bond Funds allocated to the Project
Sponsor's hard costs until it has received confirmation that the project has been issued a certificate
of occupancy or temporary certificate of occupancy, and at the Project Sponsor's sole cost, a final
cost certification prepared by an independent certified public accountant, both in form and
substance acceptable to the City.
1.9 The City reserves the right to refuse to fund any disbursement request(s) in the
event that the City determines that the Project and/or the Project Sponsor are not in compliance
with any local, state or federal law or requirement.
1.10 Disbursements for other than hard costs, if permitted pursuant to the Loan
Agreement, shall be made in accordance with the City of Miami Department of Housing and
Community Development Disbursement of Funds Checklist.
ARTICLE II
MISCELLANEOUS
2.1 This Agreement may only be amended in writing by all the parties hereto.
2.2 This Disbursement Agreement, the Loan Agreement and the other documents
executed by the parties in connection therewith constitute the entire agreement between the parties
hereto and no other agreements or representations, unless incorporated in this Disbursement
Agreement, shall be binding upon any of the parties hereto.
2.3 All capitalized terms not defined herein shall have the meanings provided in the
Loan Agreement.
2.4 In the event litigation, arbitration, or mediation, between the parties hereto, arises
out of the terms of this Disbursement 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.
"2.5 This Disbursement 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 Disbursement Agreement. The parties shall be entitled to sign and
transmit an electronic signature of this Disbursement 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 Disbursement Agreement upon request.
[SIGNATURES ON FOLLOWING PAGE]
Page 4 of 6
IN WITNESS WHEREOF, this Disbursement Agreement has been executed by the Project
Sponsor and the City on the date first above written.
PROJECT SPONSOR:
PROJECT SPONSOR:
5215 FLAGLER STREET, LLC, a
Florida limited liability company
BY: 5215 FLAGLER STREET
MANAGER, LLC, a Florida limited
liability company, its manager
By:a,.1
Tony Del Pozzo
Title: Vice President
ACKNOWLEDGMENT
STATE OF FLORIDA
}
COUNTY OF MIAMI-DADE } SS:
The foregoing instrument was acknowledged before me by means of physical presence or CIonline
notarization, this Z) dmay of AO , 2025 Tony Del Pozzo as Vice President of 5215 Flagler Street
Manager, LLC, a Florida limited liability company, the manager of 5215 FLAGLER STREET,
LLC, a Florida limited liability company. She/He is personally known to me or has produced
as identification.
(NOTARY PUBLIC SEAL)
Notary Public State of Florida
Jazzine C. Herrera
My Commission HH 465431
Expires 1/8/2028
Signature of Person Taking
Acknowledgment
(Printed, Typed, or Stamped Name of Notary
Public)
c 7Z nt. We e-101
Serial Number, if any \ Lt-51
Page 5 of 6
IN WITNESS WHEREOF, this Disbursement Agreement has been executed by the Project
Sponsor and the City on the date first above written.
ATTEST:
d B. Ha
City Clerk
Date: 5 1 \ T a.:a 5
Approved by Housing and Community
Development Department:
Victor T. Turner
Director
APPROVED AS TO FORM
AND CORRECTNESS:
Georg/K. Wyso
City Attorney
CITY:
City of Miami, a municipal corporation
of the State of Flo
By:
Arthur Noriega V
City Manager
Page 6 of 6
Exhibit E
Affirmative Marketing Procedures and Responsibilities
Note to all applicants/respondents: This form was developed with Nuance, the official HUD software for the creation of HUD forms.
HUD has made available instructions for downloading a free installation of a Nuance reader that allows the user to fill-in and save this
form in Nuance. Please see htto://oortal.hud.00v/hudoortal/documents/huddoc?id=nuancereaderinstall.odf for the instructions. Using
Nuance software is the only means of completing this form.
Affirmative Fair Housing
Marketing Plan (AFHMP) -
Multifamily Housing
U.S. Department of Housing
and Urban Development
Office of Fair Housing and Equal Opportunity
OMB Approval No. 2529-0013
(exp.12/31 /2016)
la. Project Name & Address (including City, County, State & Zip Code)
Flagler Villas
5215 W. Flagler Street, Miami, FL 33134
1b. Project Contract Number
lc. No. of Units
TBD
Id. Census Tract
60
57.08
le. Housing/Expanded Housing Market Area
Housing Market Area: City of Miami District 4
Expanded Housing Market Area: City of Miami
lf. Managing Agent Name, Address (including City, County, State & Zip Code), Telephone Number & Email Address
Marilyn Pascual, TRG Management, LLLP. 2200 N Commerce Parkway, Ste. 100, Weston FL 33326; mpascual@relatedgroup.com;(305)
442-8628 Ext 104
1g. Application/Owner/Developer Name, Address (including City, County, State & Zip Code), Telephone Number & Email Address
Tony Del Pozzo, Related Urban Development Group, 2850 Tigertail Avenue, Suite 800, Miami, Florida 33133;
1h. Entity Responsible for Marketing (check all that apply)
✓0 Owner 0✓ Agent 0 Other (specify)
Position, Name (if known), Address ( including City, County, State & Zip Code), Telephone Number & Email Address
Marilyn Pascual, TRG Management, LLLP. 2200 N Commerce Parkway, Ste. 100, Weston FL 33326; mpascual@relatedgroup.com;(305)
442-8628 Ext 104
1i. To whom should approval and other correspondence concerning this AFHMP be sent? Indicate Name, Address (including City,
State & Zip Code), Telephone Number & E-Mail Address.
Jameela Duhayat, Compliance Director, 2200 N Commerce Parkway, Ste 100, Weston, FL 33326
Ph# 954-686-7900 ext. 137, jameeia.duhayat@relatedgroup.com
2a. Affirmative Fair Housing Marketing Plan
Plan Type
Initial Plan
Reason(s) for current update:
Date of the First Approved AFHMP:
2b. HUD -Approved Occupancy of the Project (check all that apply)
El Elderly El Family
Mixed (Elderly/Disabled) ❑ Disabled
2c. Date of Initial Occupancy
TBD
2d. Advertising Start Date
Advertising must begin at !east 90 days prior to initial or renewed occupancy for new
construction and substantial rehabilitation projects.
Date advertising began or will begin
TBD
For existing projects, select below the reason advertising will be used:
To fill existing unit vacancies 0✓
To place applicants on a waiting list El (which currently has
To reopen a closed waiting list � (which currently has
individuals)
individuals)
Previous editions are obsolete Page 1 of 8
Form HUD-935.2A(12/2011)
3a. Demographics of Project and Housing Market Area
Compete and submit Worksheet 1.
3b. Targeted Marketing Activity
Based on your completed Worksheet 1, indicate which demographic group(s) in the housing market area is/are least likely to apply for the
housing without special outreach efforts. (check all that apply)
0 While Q American Indian orAlaska Native IDAsian
Q Native Hawaiian or Other Pacific Islander ❑ Hispanic or Latino
❑ Families with Children ['Other ethnic group, religion, etc. (specify)
❑ Black or African American
❑✓ Persons with Disabilities
4a. Residency Preference
Is the owner requesting a residency preference? If yes, complete questions 1 through 5.
If no, proceed to Block 4b.
(1) Type
Please Select Type
No
(2) Is the residency preference area:
The same as the AFHMP housing/expanded housing market area as identified in Block le?
Please Select Yes or No
The same as the residency preference area of the local PHA in whose jurisdiction the project is located?
(3) What is the geographic area for the residency preference?
'Please Select Yes or No
(4) What is the reason for having a residency preference?
(5) How do you plan to periodically evaluate your residency preference to ensure that it is in accordance with the non-discrimination
and equal opportunity requirements in 24 CFR 5.105(a)?
Complete and submit Worksheet 2 when requesting a residency preference (see also 24 CFR 5.655(c)(1)) for residency
preference requirements. The requirements in 24 CFR 5.655(c)(1) will be used by HUD as guidelines for evaluating
residency preferences consistent with the applicable HUD program requirements. See also HUD Occupancy
Handbook (4350.3) Chapter 4, Section 4.6 for additional guidance on preferences.
4b. Proposed Marketing Activities: Community Contacts
Complete and submit Worksheet 3 to describe your use of community
contacts to market the project to those least likely to apply.
4c. Proposed Marketing Activities: Methods of Advertising
Complete and submit Worksheet 4 to describe your
proposed methods of advertising that will be used to
market to those least likely to apply. Attach copies of
advertisements, radio and television scripts, Internet
advertisements, websites, and brochures, etc.
Previous editions are obsolete Page 2 of 8 Form HUD-935.2A (12/2011)
5a. Fair Housing Poster
The Fair Housing Poster must be prominently displayed in all offices in which sale or rental activity takes place (24 CFR 200.620(e)).
Check below all locations where the Poster will be displayed.
Rental Office 0 Real Estate Office ❑ Model Unit Z Other (specify)
5b.Affirmative Fair Housing Marketing Plan
The AFHMP must be available for public inspection at the sales or rental office (24 CFR 200.625). Check below all locations
where the AFHMP will be made available.
Q Rental Office Real Estate Office 0 Model Unit 0 Other (specify)
Sc. Project Site Sign
Project Site Signs, if any, must display in a conspicuous position the HUD approved Equal Housing Opportunity logo, slogan, or statement
(24 CFR 200.620(f)). Check below all locations where the Project Site Sign will be displayed. Please submit photos of Project signs.
❑✓ Rental Office 0 Real Estate Office El Model Unit Q Entrance to Project ❑ Other (specify)
The size of the Project Site Sign will be 3' x
5'
The Equal Housing Opportunity logo or slogan or statement will be
4"
x
4"
6. Evaluation of Marketing Activities
Explain the evaluation process you will use to determine whether your marketing activities have been successful in attracting
individuals least likely to apply, how often you will make this determination, and how you will make decisions about future marketing
based on the evaluation process.
TRG Management Company reviews our waiting list and current resident demographics and compare these to the census
demographics for our community on an annual basis or sooner, if needed. In doing so, we will determine if those populations least
likely to apply to the property are now more represented on the waiting list as well as the current residents and will evaluate our
marketing efforts if improvements are necessary. When waiting list is open, TRG Management Company will contact the
community contacts to advise on opening of waiting list.
Previous editions are obsolete
Page 3 of 8
Form HUD-935.2A (12/2011)
7a. Marketing Staff
What staff positions are/will be responsible for affirmative marketing?
Property Manager, Regional Manager, Regional Vice President and Compliance Manager
7b. Staff Training and Assessment AFHMP
(1) Has staff been trained on the AFHMP?
(2) Has staff been instructed in writing and orally on non-discrimination and fair housing policies as required by
24 CFR 200.620(c)?
(3) 1f yes, who provides instruction on the AFHMP and Fair Housing Act, and how frequently?
Yes
Yes
Annual training required by 3rd party training providers. Additionally, participation in SAHMA workshops, Local housing
workshops, at least once per year.
(4) Do you periodically assess staff skills on the use of the AFHMP and the application of the Fair Housing
Act?
(5) f yes, how and how often?
Yes
Once per year
7c. Tenant Selection Training/Staff
(1) Has staff been trained on tenant selection in accordance with the project's occupancy policy, including any residency preferences?
Yes
(2) What staff positions are/will be responsible for tenant selection?
Property Manager, Regional Manager, Regional Vice President and Compliance
7d. Staff Instruction/Training:
Describe AFHM/Fair Housing Act staff training, already provided or to be provided, to whom it was/will be provided, content of training,
and the dates of past and anticipated training. Please include copies of any AFHM/Fair Housing staff training materials.
Employees are trained by 3rd party companies at least once a year, outsourced by TRG Management.
All senior staff members of TRG Management Company have obtained Certificate of Occupancy Specialist (COS) certification and
Housing Credit Certified Professional (HCCP) certification. Both certifications focus on regulatory compliance and have ongoing
training that updates professionals on changes on various regulations and requirement. All property management staff member
attend annual Fair Housing Training, attend regular HUD update training and Annual Florida Housing Finance Corporation tax credit
and compliance training.
Our management team is well equipped and educated, such as our Regional Compliance Director, Jameela Duhayat, has attended
regularly workshops from Florida Housing Finance Corporation on the Basics of Affordable Housing, Fair Housing and Compliance
Training. The Co -President, Marilyn Pascual, has frequently attended workshops regarding the same matters.
Previous editions are obsolete
Page 4 of 8
Form HUD-935.2A (12/2011)
8. Additional Considerations Is there anything else you would like to tell us about your AFHMP to help ensure that
your program is marketed to those least likely to apply for housing in your project? Please attach additional sheets, as
needed.
TRG Management Company mandates that all employees attend continuing education classes to ensure Fair Housing and Equal
Opportunity requirements are met and to acquire the skills necessary to implement adequate AFHMP and tenant selection
procedures.
9. Review and Update
By signing this form, the applicant/respondent agrees to implement its AFHMP, and to review and update its AFHMP
in accordance with the instructions to item 9 of this form in order to ensure continued compliance with HUD's Affirmative Fair
Housing Marketing Regulations (see 24 CFR Part 200, Subpart M). I hereby certify that all the information stated herein,
as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will prosecute
false claims and statements. Conviction may result in criminal and/or civil penalties. (See 18 U.S.C. 1001, 1010, 1012;
31 U.S.C. 3729, 3802).
Signature of person submitting this Plan & Date of Submission (mm/dd/yyyy)
Le
Name (type or print)
7/26/2024
Tony Del Pozzo
Title & Name of Company
Vice President, RUDG
For HUD -Office of Housing Use Only
Reviewing Official:
For HUD -Office of Fair Housing and Equal Opportunity Use Only
ElApproval Disapproval
Signature & Date (mm/dd/yyyy)
Signature & Date (mmlddlyyyy)
Name
(type
or
print)
Title
Name
(type
or
print)
Title
Previous editions are obsolete Page 5 of 8
Form HUD-935.2A (12/2011)
Public reporting burden for this collection of information is estimated to average six (6) hours per initial response, and four (4) hours for
updated plans, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data
needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not
required to complete this form, unless it displays a currently valid Office of Management and Budget (OMB) control number.
Purpose of Form: All applicants for participation in FHA subsidized and unsubsidized multifamily housing programs with five or more
units (see 24 CFR 200.615) must complete this Affirmative Fair Housing Marketing Plan (AFHMP) form as specified in 24 CFR
200.625, and in accordance with the requirements in 24 CFR 200.620. The purpose of this AFHMP is to help applicants offer equal
housing opportunities regardless of race, color, national origin, religion, sex, familial status, or disability. The AFHMP helps
owners/agents (respondents) effectively market the availability of housing opportunities to individuals of both minority and non -minority
groups that are least likely to apply for occupancy. Affirmative fair housing marketing and planning should be part of all new
construction, substantial rehabilitation, and existing project marketing and advertising activities.
An AFHM program, as specified in this Plan, shall be in effect for each multifamily project throughout the life of the mortgage (24 CFR
200.620(a)). The AFHMP, once approved by HUD, must be made available for public inspection at the sales or rental offices of the
respondent (24 CFR 200.625) and may not be revised without HUD approval. This form contains no questions of a confidential nature.
Applicability: The form and worksheets must be completed and submitted by all FHA subsidized and unsubsidized multifamily
housing program applicants.
INSTRUCTIONS:
Send completed form and worksheets to your local HUD Office, Attention: Director, Office of Housing
Part 1: ApplicantlRespondent and Project
Identification. Blocks la, lb, lc, 1 g, lh, and 1 i are self-
explanatory.
Block 1d- Respondents may obtain the Census tract
number from the U.S. Census Bureau
(htto://factfinder2.census.00vimain.html) when
completing Worksheet One.
Block le- Respondents should identify both the housing
market area and the expanded housing market area for
their multifamily housing projects. Use abbreviations if
necessary. A housing market area is the area from
which a multifamily housing project owner/agent may
reasonably expect to draw a substantial number of its
tenants. This could be a county or Metropolitan Division.
The U.S. Census Bureau provides a range of levels to
draw from.
An expanded housing market area is a larger
geographic area, such as a Metropolitan Division or a
Metropolitan Statistical Area, which may provide
additional demographic diversity in terms of race, color,
national origin, religion, sex, familial status, or disability.
Block 1f- The applicant should complete this block only if
a Managing Agent (the agent cannot be the applicant) is
implementing the AFHMP.
Part 2: Type of AFHMP
Block 2a- Respondents should indicate the status of the
AFHMP, i.e., initial or updated, as well as the date of the
first approved AFHMP. Respondents should also provide
the reason (s) for the current update, whether the update is
based on the five-year review or due to significant changes
in project or local demographics (See instructions for Part
9).
Block 2b- Respondents should identify all groups HUD has
approved for occupancy in the subject project, in
accordance with the contract, grant, etc.
Block 2c- Respondents should specify the date the project
was/will be first occupied.
Block 2d- For new construction and substantial
rehabilitation projects, advertising must begin at least 90
days prior to initial occupancy. In the case of existing
projects, respondents should indicate whether the
advertising will be used to fill existing vacancies, to place
individuals on the project's waiting list, or to re -open a
closed waiting list. Please indicate how many people are
on the waiting list when advertising begins.
Previous editions are obsolete Page 6 of 8 Form HUD 935.2A (12/2011)
Part 3 Demographics and Marketing Area.
"Least likely to apply" means that there is an
identifiable presence of a specific demographic
group in the housing market area, but members of
that group are not likely to apply for the housing
without targeted outreach, including marketing
materials in other languages for limited English
proficient individuals, and altemative formats for
persons with disabilities. Reasons for not applying
may include, but are not limited to, insufficient
information about housing opportunities, language
barriers, or transportation impediments.
Block 3a - Using Worksheet 1, the respondent
should indicate the demographic composition of the
project's residents, current project applicant data,
census tract, housing market area, and expanded housing
market area. The applicable housing market area
and expanded housing market area should be indicated
in Block le. Compare groups within rows/across columns on
Worksheet 1 to identify any under -represented group(s)
relative to the surrounding housing market area and expanded
housing market area, i.e., those group(s) "least likely to apply"
for the housing without targeted outreach and marketing. If there
is a particular group or subgroup with members of a protected
class that has an identifiable presence in the housing market area,
but is not included in Worksheet 1, please specify under "Other."
Respondents should use the most current demographic
data from the U.S. Census or another official source such
as a local government planning office. Please indicate the
source of your data in Part 8 of this form.
Block 3b - Using the information from the completed
Worksheet 1, respondents should identify the
demographic group(s) least likely to apply for the
housing without special outreach efforts by checking
all that apply.
Part 4 - Marketing Program and Residency Preference (if
any).
Block 4a - A residency preference is a preference for
admission of persons who reside or work in a specified
geographic area (see 24 CFR 5.655(c)(1)(ii)). Respondents
should indicate whether a residency preference is being
utilized, and if so, respondents should specify if it is new,
revised, or continuing. If a respondent wishes to utilize a
residency preference, it must state the preference area (and
provide a map delineating the precise area) and state the
reason for having such a preference. The respondent must
ensure that the preference is in accordance with the non-
discrimination and equal opportunity requirements in 24 CFR
5.105(a) (see 24 CFR 5.655(c)(1)).
Respondents should use Worksheet 2 to show how the
percentage of the eligible population living or working in the
residency preference area compares to that of residents of the project,
project applicant data, census tract, housing market area, and
expanded housing market area. The percentages would be the same as
shown on completed Worksheet 1_
Block 4b - Using Worksheet 3, respondents should describe
their use of community contacts to help market the project to those
least likely to apply. This table should include the name of a
contact person, his/her address, telephone number, previous
experience working with the target population(s), the
approximate date contact was/will be initiated, and the specific
role the community contact will play in assisting with affirmative
fair housing marketing or outreach.
Block 4c - Using Worksheet 4, respondents should describe
their proposed method(s) of advertising to market to those
least likely to apply. This table should identify each media
option, the reason for choosing this media, and the language
of the advertisement. Alternative formats) that will be used to reach
persons with disabilities, and logo(s) that will appear on the
various materials (as well as their size) should be described.
Please attach a copy of the advertising or marketing material.
Part 5 — Availability of the Fair Housing Poster, AFHMP,
and Project Site Sign.
Block 5a - The Fair Housing Poster must be prominently
displayed in all offices in which sale or rental activity takes
place (24 CFR 200.620(e)). Respondents should indicate all
locations where the Fair Housing Poster will be displayed.
Block 5b -The AFHMP must be available for public inspection
at the sales or rental office (24 CFR 200.625). Check all of the
locations where the AFHMP will be available.
Block 5c -The Project Site Sign must display in a conspicuous
position the HUD -approved Equal Housing Opportunity logo,
slogan, or statement (24 CFR 200.620(f)). Respondents should
indicate where the Project Site Sign will be displayed, as well
as the size of the Sign and the size of the logo, slogan, or
statement. Please submit photographs of project site
signs.
Previous editions are obsolete Page 7 of 8 Form HUD-935.2A (12/2011)
Part 6 - Evaluation of Marketing Activities.
Respondents should explain the evaluation process to be used
to determine if they have been successful in attracting those
individuals identified as least likely to apply. Respondents
should also explain how they will make decisions about future
marketing activities based on the evaluations.
Part 7- Marketing Staff and Training.
Block 7a -Respondents should identify staff positions that
are/will be responsible for affirmative marketing.
Block 7b - Respondents should indicate whether staff has been
trained on the AFHMP and Fair Housing Act.
Please indicate who provides the training and how frequently.
In addition, respondents should specify whether they periodically
assess staffmembers' skills in using the AFHMP and in applying
the Fair Housing Act. They should state how often
they assess employee skills and how they conduct the
assessment.•
Block 7c - Respondents should indicate whether staff has been
trained on tenant selection in accordance with the project's
occupancy policy, including residency preferences (if any).
Respondents should also identify those staff positions that
are/will be responsible for tenant selection.
Block 7d - Respondents should include copies of any written
materials related to staff training, and identify the dates of past
and anticipated training.
Part 8 - Additional Considerations.
Respondents should describe their efforts not previously
mentioned that were/are planned to attract those individuals
least likely to apply for the subject housing.
Part 9 - Review and Update.
By signing the respondent assumes responsibility for
implementing the AFHMP. Respondents must review their
AFHMP every five years or when the local Community
Development jurisdiction's Consolidated Plan is updated, or
when there are significant changes in the demographics of the
project or the local housing market area. When reviewing the plan,
the respondent should consider the current demographics of the
housing market area to determine if there have been demographic
changes in the population in terms of race, color, national
origin, religion, sex, familial status, or disability. The respondent will
then determine if the population least to likely to apply for the housing
is still the population identified in the AFHMP, whether the advertising
and publicity cited in the current AFHMP are still appropriate, or
whether advertising sources should be modified or expanded. Even if
the demographics of the housing market area have not
changed, the respondent should determine if the outreach
currently being performed is reaching those it is intended to
reach as measured by project occupancy and applicant data. If
not, the AFHMP should be updated. The revised AFHMP must
be submitted to HUD for approval. HUD may review whether the
affirmative marketing is actually being performed in
accordance with the AFHMP. If based on their review,
respondents determine the AFHMP does not need to be
revised, they should maintain a file documenting what was
reviewed, what was found as a result of the review, and why
no changes were required. HUD may review this
documentation.
Notification of Intent to Begin Marketing.
No later than 90 days prior to the initiation of rental
marketing activities, the respondent must submit notification
of intent to begin marketing. The notification is required by the
AFHMP Compliance Regulations (24 CFR 108.15). The
Notification is submitted to the Office of Housing in the HUD Office
servicing the locality in which the proposed housing will be located.
Upon receipt of the Notification of Intent to Begin Marketing from
the applicant, the monitoring office will review any previously
approved plan and may schedule a pre -occupancy conference.
Such conference will be held prior to initiation of sales/rental
marketing activities. At this conference, the previously
approved AFHMP will be reviewed with the applicant to
determine if the plan, and/or its proposed implementation,
requires modification prior to initiation of marketing in order to
achieve the objectives of the AFHM regulation and the plan.
OMB approval of the AFHMP includes approval of this
notification procedure as part of the AFHMP. The burden hours
for such notification are included in the total designated for this
AFHMP form.
Previous editions are obsolete Page 8 of 8 Form HUD-935.2A (12/2011)
Worksheet 1: Determining Demographic Groups Least Likely to Apply for Housing Opportunities
(See AFHMP, Block 3b)
In the respective columns below, indicate the percentage of demographic groups among the project's residents, current project
applicant data, census tract, housing market area, and expanded housing market area (See instructions to Block le). If you are a new
construction or substantial rehabilitation project and do not have residents or project applicant data, only report information for census
tract, housing market area, and expanded market area. The purpose of this information is to identify any under -representation of
certain demographic groups in terms of race, color, national origin, religion, sex, familial status, or disability. If there is significant
under -representation of any demographic group among project residents or current applicants in relation to the housing/expanded
housing market area, then targeted outreach and marketing should be directed towards these individuals least likely to apply. Please
indicate under -represented groups in Block 3b of the AFHMP. Please attach maps showing both the housing market area and the
expanded housing market area.
Demographic
Characteristics
Project's
Residents
Project's
Applicant Data
Census Tract
Housing Market Area
Expanded
Housing Market
Area
% White
46%
45.4%
46.8%
% Black or African
American
r
3.1%
14.1%
15.9%
% Hispanic or Latino
%Asian
% American Indian or
Alaskan Native
91 9%
72.3%
68.8%
0%
1.5%
1.5%
j
0%
.2%
.3%
% Native Hawaiian or
Pacific Islander
0%
0%
0%
%Persons
with
Disabilities
15.7%
11.6%
10.2%
% Families with Children
under the age of 18
13.5%
22.5%
31.3%
Other (specify)
`
Worksheet 2: Establishing a Residency Preference Area (See AFHMP, Block 4a)
Complete this Worksheet if you wish to continue, revise, or add a residency preference, which is a preference for admission of persons
who reside or work in a specified geographic area (see 24 CFR 5.655(c)(1)(ii)). If a residency preference is utilized, the preference
must be in accordance with the non-discrimination and equal opportunity requirements contained in 24 CFR 5.105(a). This Worksheet
will help show how the percentage of the population in the residency preference area compares to the demographics of the project's
residents, applicant data, census tract, housing market area, and expanded housing market area. Please attach a map clearly
delineating the residency preference geographical area.
Demographic
Characteristics
Project's
Residents
(as determined
in Worksheet 1)
Project's
Applicant Data
(as determined
in Worksheet 1)
Census Tract
(as determined
in Worksheet
1)
Housing Market
Area (as
determined
in Worksheet 1)
Expanded
Housing Market
Area
(as determined in
Worksheet 1)
Residency
Preference Area
(if applicable)
% White
% Black or African
American
'
% Hispanic or
Latino
% Asian
% American Indian
or Alaskan Native
% Native Hawaiian
or Pacific Islander
% Persons with
Disabilities
% Families with
Children under the
age of 18
Other (specify)
Worksheet 3: Proposed Marketing Activities —Community Contacts (See AFHMP, Block 4b)
For each targeted marketing population designated as feast likely to apply in Block 3b, identify at least one community contact
organization you will use to facilitate outreach to the particular population group. This could be a social service agency, religious
body, advocacy group, community center, etc. State the names of contact persons, their addresses, their telephone numbers, their
previous experience working with the target population, the approximate date contact was/will be initiated, and the specific role they
will play in assisting with the affirmative fair housing marketing. Please attach additional pages if necessary.
Targeted Population(s)
Community Contact(s), including required information noted above.
American Indian or Alaska Native
Seminole Tribe of Florida
Attn: Mitchell Cypress -President
6300 Sterling Road. Hollywood, Florida 33024; PH#: 954-966-6300
Since founded in 1957. Monthly letter will be sent
Asian
Asian American Justice Center
Attn: Jiny Kim -Vice President, Policy and Programs
1620 L Street NW #1050. Washington, DC 20036;
PH#: 202-296-2300 ext.141 Since founded in 1991. Monthly letter will be sent
Native Hawaiian or Pacific Islander
Asian Pacific Islander American Public Affairs -
Attn: Muthusamy Swami- President
P.O. BOX 770322. Orlando, FL 32877; PH#: 916-928-9988
Since founded in 2001. Monthly letter will be sent
Black or African American
African American Cultural Society
Attn: Edmund G Pinto Jr
P.O. BOX 350607 Palm Coast, FL 32135. PH# 386-447-7030
Since founded in 1991. Monthly letter will be sent
Worksheet 4: Proposed Marketing Activities — Methods of Advertising (See AFHMP, Block 4c)
Complete the following table by identifying your targeted marketing population(s), as indicated in Block 3b, as well as
the methods of advertising that will be used to market to that population. For each targeted population, state the
means of advertising that you will use as applicable to that group and the reason for choosing this media. In each block,
in addition to specifying the media that will be used (e.g., name of newspaper, television station, website, location of
bulletin board, etc.) state any language(s) in which the material will be provided, identify any alternative format(s) to be
used (e.g. Braille, large print, etc.), and specify the logo(s) (as well as size) that will appear on the various materials.
Attach additional pages, if necessary, for further explanation. Please attach a copy of the advertising or marketing
material.
Targeted Population(s)-+
Methods of Advertising 1
Targeted Population:
Targeted Population:
Targeted Population:
Newspaper(s)
Applicants that
Hispanic or Latino
Miami Herald/EI Nuevo Herald
qualify
under the program
requirements
Radio Station(s)
TV Station(s)
Electronic Media
Black or African American
Native American or Pacific
Islanders
TRG Management Website
Asian
Bulletin Boards
Brochures, Notices, Flyers
'
Other (specify)
Tenants that qualify under
the program requirements
All Demographics
Resident Referral Program
Exhibit F
Signage Requirements
Building
Better
Neighborhoods
Mayor Francis Suarez
NAME OF PROJECT
SECOND LINE
THIRD LINE
Francis Suarez
Mayor
Miguel Angel Gabela
District 1
Damian Pardo
District 2
Joe Carollo
District 3
Manolo Reyes
District 4
Christine King
District 5
Arthur Noriega, V
City Manager
EQUAL HOUSING
OPPORTUNITY
Project Construction Cost:
$1,234,567
City Contribution:
$1,234,567
www.miami.gov
(305) 416-2080
'40
MIAMI FOREVER
-BONDS---
This Project is located in District 4
represented by
City of Miami Commissioner
Manolo Reyes
Exhibit G
Insurance Requirements
INSURANCE REQUIREMENTS FOR A CERTIFICATE OF INSURANCE -
CONSTRUCTION REQUIREMENTS - MFB LOAN AGREEMENTS FOR 5215
FLAGLER STREET
I. Commercial General Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $1,000,000
General Aggregate Limit $ 2,000,000
Products/Completed Operations $ 1,000,000
Personal and Advertising Injury $1,000,000
B. Endorsements Required
City of Miami listed as an Additional Insured
Contingent and Contractual Liability
Explosion, Collapse and Underground Hazard
Primary Insurance Clause Endorsement
Extended Completed Operations Endorsement proving 3 years
coverage extension following project completion, including City as
additional insured
Including Crane and Rigging Liability, as applicable
II. Business Automobile Liability
A. Limits of Liability
Bodily Injury and Property Damage Liability
Combined Single Limit
Any Auto
Including Hired, Borrowed or Non -Owned Autos
Any One Accident $ 1,000,000
B., Endorsements Required
City of Miami included as an additional insured
III. Worker's Compensation
Limits of Liability
Statutory -State of Florida
Waiver of subrogation
Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
IV. Umbrella Policy (Excess Follow Form)
A. Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $2,000,000
Aggregate $2,000,000
City of Miami listed as an additional Insured.
Coverage is excess follow form over all liability polices contained herein.
V. Professional Liability/Errors & Omissions
Any licensed design professional work such as that provided by architects,
engineers, construction consultants, etc., shall maintain professional liability
insurance:
Each Claim
Policy Aggregate
$2,000,000
$2,000,000
If claims made, retro Date applies prior to contract inception.
Coverage is to be maintained and applicable for a minimum of 3 years following
contract completion.
VI. Payment and Performance Bond $TBD
City listed as Obligee
VII. Builders' Risk
Causes of Loss: All Risk -Specific Coverage Project Location
Valuation: Replacement Cost Total Cost of Renovation
Deductible: $250,000 All other Perils
$1,000,000 Water Damager
5% Maximum on Wind/Hail, Earth Movement and Flood
A. Coverage Extensions:
City of Miami listed as loss payee
Including Storage and transport of materials, equipment, supplies of any kind to be
used on or incidental to the project.
Equipment Breakdown for testing of al mechanized, pressurized, or electrical
equipment.
VIII. Safety/claims and deductibles
Safety and loss control shall be exercised at all times by the Contractor for the protection of all
persons, employees, and property. Any hazardous conditions must - be promptly identified,
reported, and action taken to mitigate as soon as possible.
Notice of claims/accidents/incidents associated with this agreement shall be reported to the
Contractor's insurance company and to the City's Risk Management department as soon as
practical.
The Contractor has the sole responsibility for all insurance premiums and shall be fully and solely
responsible for any costs or expenses as a result of a coverage deductible, co-insurance penalty, or
self -insured retention; including any loss not covered because of the operation of such deductible,
co-insurance penalty, self -insured retention, or coverage exclusion or limitation.
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications,
shall issue all insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class V"
as to Financial Strength, by the latest edition of Best's Insurance Guide, published by A.M.
Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or certificates of
insurance are subject to review and verification by Risk Management prior to insurance
approval.
INSURANCE REQUIREMENTS FOR A CERTIFICATE OF INSURANCE—
MFB LOAN AGREEMENT FOR 5215 FLAGLER STREET
I. Commercial General Liability
Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $1,000,000
General Aggregate Limit $ 2,000,000
Products/Completed Operations $ 1,000,000
Personal and Advertising Injury $1,000,000
Endorsements Required
City of Miami listed as an additional insured
Contingent and Contractual Liability
Premises and Operations Liability
Primary Insurance Clause Endorsement
II. Business Automobile Liability
Limits of Liability
Bodily Injury and Property Damage Liability
Combined Single Limit
Any Auto
Including Hired, Borrowed or Non -Owned Autos
Any One Accident $ 300,000
Endorsements Required
City of Miami included as an additional insured
III. Worker's Compensation
Limits of Liability
Statutory -State of Florida
Waiver of subrogation
Employer's Liability
B. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$500,000 for bodily injury caused by disease, policy limit
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer not less than (30) days prior to any such cancellation or
material change, or in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with the following qualifications,
shall issue all insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than "Class
V" as to Financial Strength, by the latest edition of Best's Insurance Guide, published by
A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies and /or
certificates of insurance are subject to review and verification by Risk Management prior
to insurance approval.
INSURANCE REQUIREMENTS —LEASEHOLD MORTGAGE AND
SECURITY AGREEMENT —FOR 5215 FLAGLER STREET
I. Commercial General Liability
Limits of Liability
Bodily Injury and Property Damage Liability
Each Occurrence $1,000,000
General Aggregate Limit $ 2,000,000
Products/Completed Operations $ 1,000,000
Personal and Advertising Injury $1,000,000
Endorsements Required
Mortgagee listed as an additional insured
Primary Insurance Clause Endorsement
Hired and Non Owned Auto Included
II. Worker's Compensation
Limits of Liability
Statutory -State of Florida
Waiver of subrogation
Employer's Liability
A. Limits of Liability
$1,000,000 for bodily injury caused by an accident, each accident.
$1,000,000 for bodily injury caused by disease, each employee
$1,000,000 for bodily injury caused by disease, policy limit
Letter may be provided if less than (4) employees
III. PROPERTY
Commercial Property Insurance covering the Building and Business Personal Property owned by
Borrower. Commercial property insurance shall, at a minimum, cover the perils insured- under the -
ISO Special Causes of Loss Special Form (CP 10 30), or a substitute form providing equivalent
coverages written on an All Risk or Direct Physical Loss or Damage basis with no coinsurance,
including wind and named storm coverage and hail not to exceed 5% deductible depending on
'market conditions, /along with earth movement and flood. Coverage should -be included for debris
removal, and demolition and increased cost of construction that are caused by legal, requirements
regulating the construction or repair of damaged facilities or subject property, including an
ordinance and law endorsement, in an amount of not less than the replacement cost of the property
insured and leasehold improvements (exclusive of foundation and excavation costs), trade fixtures
and floor coverings. In addition, the policy should afford coverage for sprinkler leakage, extended
coverage including vandalism and malicious mischief, as well as coverage for business income
relative to loss of rents, along with boiler and machinery coverage, if applicable. The amount of
insurance shall equal the full estimated replacement cost of all real and business personal property
owned by Borrower.
The Mortgagee shall be included as loss payee under the commercial property insurance.
IV. Umbrella Liability
Each Occurrence
Policy Aggregate
$2,000,000
$2,000,000
Mortgagee listed as additional insured. Coverage is excess follow form
over the liability policies contained herein.
The above policies shall provide the City of Miami with written notice of cancellation or
material change from the insurer not less than (30) days prior to any such cancellation or
material change, or in accordance to policy provisions.
Companies authorized to do business in the State of Florida, with thefollowing qualifications,
shall issue all insurance policies required above:
The company must be rated no less than "A-" as to management, and no less than
"Class V" as to Financial Strength, by the latest edition of Best's Insurance Guide,
published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All policies
and /or certificates of insurance are subject to review and verification by Risk
Management prior to insurance approval.
EXHIBIT "H".
ANTI -HUMAN TRAFFICKING AF'F'IIiAVIT
The undersigned affirms, certifies,, attests, and stipulates as follows:
a: The.entity/individual is a nongovernmental entity authorized to transact business
- in the State of Florida (hereinafter; "nongovern.mental entity").
b. The nongovernmental :entity is either executing, renewing, or. extending a contract_
• (including,. but not limited to, any amendments, as applicable), with the City of
.Miami ("City") or one of its agencies, authorities, :boards, trusts, or other. City
entity:which constitutes a governmental entity.as defined in Section 287.138(1),
Florida. Statutes (2024).
. c: The nongovernmental entity- is not in violation .of Section 787.06, Florida Statutes
.(2024), titled"Human. Trafficking."
d. ,The nongovernmental:entity does not use "Coercion". for labor or services. as
.defined in Section 787.06, Florida Statutes (2024)....
2. Under penalties of perjury, pursuant:to Section 92.525, Florida Statutes, I declare the -
following:
a. - I: have read:and understand the. foregoing. Anti -Human Trafficking Affidavit and
that the facts, statements and representations provided in Section .1 are true and
correct.
b. I amain officer, a representative, or individual of the nongovernmental, entity... :
authorized to execute this Anti-Human:Trafficking Affidavit.
FURTHER AFFIANT SAYETH NAUGHT,
Nongovernmental Entity/Individual: 5215 Flagler Street, LLC
Name: Tony Del Pozzo.
Signature: 7 9,49
Office Address:
: Title: Vice President
850 Tigertail Ave., #800
Miami, Florida 33133
Email.Address:::tony@relatedgroup.com :
Main Phone Number. 305-460-9900
Schedule A
Permitted Senior Financing
1. Bond Loan from the Housing Finance Authority of Miami -Dade County, Florida (the
"Governmental Lender") in the approximate amount of $14,500,000.00 (the "Bond
Loan"), to be assigned to the Bank of New York Mellon Trust Company, N.A. ("Fiscal
Agent"). The Bond Loan will be funded with proceeds from a separate loan to be made to
the Governmental Lender by SouthState Bank, in its capacity as funding lender in the
approximate amount of $14,500,000.00 (the "Funding Loan"). The Bond Loan will
convert to a Permanent Loan from Grandbridge Real Estate Capital LLC ("Grandbridge")
upon the purchase of the Funding Loan by Grandbridge.
2. Construction Loan from SouthState Bank in the approximate amount of $3,500,000.00.
Schedule B
Permitted Subordinate Financing
1. Loan from the City of Miami in the approximate amount of $3,500,000.00.