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HomeMy WebLinkAbout24156AGREEMENT INFORMATION AGREEMENT NUMBER 24156 NAME/TYPE OF AGREEMENT EDISON TOWERS, LLLP DESCRIPTION RENT REGULATORY AGREEMENT/REHAB OF AN 8-FLOOR AFFORDABLE RENTAL RESIDENTIAL BUILDING-5821 NW 7TH AVE, MIAMI, FLORIDA EFFECTIVE DATE September 29, 2022 ATTESTED BY TODD B. HANNON ATTESTED DATE 9/29/2022 DATE RECEIVED FROM ISSUING DEPT. 11/16/2022 NOTE 01.4 549 Prepared by, and after recording return to: Victoria Mendez, Esq. City Attorney, City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 Tel: (305) 416-1800 Property Address: 3750 S. Dixie Hwy, Miami, Florida Folio No.:01-3113-090-0010 RENT REGULATORY AGREEMENT FOR EDISON TOWERS, LLLP THIS RENT REGULATORY AGREEMENT ("Regulatory Agreement") is entered into this 2i day of Se 1" , 2022, between EDISON TOWERS, LLLP, limited liability limited partnership (hereina er referred to as `Borrower") and the CITY OF MIAMI, a municipal corporation of the State of Florida (hereinafter referred to as the "City"). The execution of this Regulatory Agreement by the Borrower is in connection with the loan of CDBG Program ("CDBG") funds, (the "Loan"), secured by certain loan documents to be executed in connection therewith (the "Loan Documents"), for the rehabilitation and construction of a total of one hundred fifteen (115) residential apartment units. All one -hundred fifteen of the residential apaitiiient units will be CDBG-assisted units (the "CDBG-Assisted Units") of that certain project known as Edison Towers. The project is a rehabilitation of a 8-floor affordable rental residential building located at 5821 NW 7th Avenue, Miami, Florida (hereinafter referred to as the "Property" or the "Project"). In accordance with the requirements set forth in (i) that certain CDBG Loan Agreement to be executed by the Borrower and the City for the CDBG funds (the "Agreement"), and (ii) the other Loan documents of even date therewith between the Borrower and the City, all of the one hundred and fifteen (115) Project units are considered "CDBG-Assisted" and all of the CDBG- Assisted Units are subject to the restrictions provided herein. Borrower hereby agrees to the following terms, conditions and covenants until the end of the Affordability Period: (1) Occupancy Requirements. The CDBG-Assisted Units shall be made available to tenants who qualify under the occupancy requirements of 24 CFR Part 570 (hereinafter referred to as the "Regulation"). The CDBG-Assisted Units are subject to the restrictions provided therein and herein, including, but not limited to, the following: All one hundred fifteen (115) CDBG-Assisted Units shall be occupied by Low - Income Households and Very Low -Income Households. Low -Income Households have annual incomes that do not exceed sixty percent (60%) of the median income for the area, as determined by HUD and adjusted for family size. Very Low -Income Households have annual incomes that do not exceed fifty percent (50%) of the median income for the area, as determined by HUD and adjusted for family size. (2) Maximum Rent Levels. The rents charged on all of the CDBG-Assisted Units shall be subject to the Regulation. Gross monthly rent charged on CDBG-Assisted Units Page 1 of 9 occupied by tenants identified as Low -Income are subject to the maximum HIGH CDBG Rent published annually by HUD. Gross monthly rent charged on CDBG- Assisted Units occupied by tenants identified as Very -Low Income are subject to the maximum LOW CDBG Rent published annually by HUD for each locality. The HIGH and LOW CDBG Rent maximums for leases signed in Miami, Florida effective as of July 1, 2022 are as follows: No. of No. of No. of Median Max Bedrooms Baths CDBG- Income Gross Assisted % Rents Units 1 1 9 1 1 S0 TOTAL: 115 50% 60% S914 The foregoing maximum rents include tenant paid utilities. Maximum rents will be reduced for the amount of the applicable HUD Utility Allowance for any utilities paid by the tenant. In no event will the monthly rent on a CDBG-Assisted Unit exceed thirty percent (30%) of the applicable percentage of area median income set forth in Paragraph 1 above. Rents shall not be adjusted for changes in income or HUD published maximums until lease renewal. In the event that the CDBG Assisted Units are also benefitted from a federal or state rent subsidy program, then the rents outlined above may be set at the applicable rent standard established by that rent subsidy program in compliance with 24 CFR 570. (3) Income Re -certification. Tenant income for CDBG-Assisted Units shall be certified by the Borrower annually on the anniversary of each tenant's lease and maintained in the tenant file, subject to inspection by the City, in accordance with this Regulatory Agreement. (4) Deposits and Pre -payments. Borrower shall not require, as a condition of occupancy or leasing of any CDBG-Assisted Unit, any other consideration or deposit from the tenant, except for the prepayment of one month's rent and plus a security deposit not to exceed one additional month's rent. (5) Prohibited Lease Provisions. The Borrower's leases for CDBG-Assisted Units shall not contain any of the following provisions: a. Agreement to be sued. A tenant lease may not contain a provision whereby the tenant agrees to be sued, admits guilt or consents to judgment in favor of the landlord in a lawsuit brought in connection with the lease. b. Agreement regarding treatment of property. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may take, hold or sell personal property of the tenant household without notice and a court Page 2 of 9 g. decision. This prohibition does not apply to personal property remaining in the CDBG-Assisted Unit after the tenant has moved out. c. Waiver of notice. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may institute a lawsuit without notice to the tenant. d. Waiver of legal proceedings. A tenant lease may not contain a provision whereby the tenant agrees that the landlord may evict the tenant or a household member without instituting a civil court proceeding in which the tenant has the opportunity to present a defense or before a court decision on the rights of the parties. e. Waiver of a jury trial. A tenant lease may not contain a provision whereby the tenant agrees to waive any right to a jury trial. f. Waiver aright to appeal a court decision. A tenant lease may not contain a provision whereby the tenant agrees to waive the tenant's right to appeal or otherwise challenge in court a court decision in connection with the lease. Agreement to pay legal costs, regardless of outcome. A tenant lease may not contain a provision whereby the tenant agrees to pay attorney's fees or other legal costs even if the tenant wins the court proceeding brought by the landlord against the tenant. The tenant, however, may be obligated to pay costs if the tenant loses. h. Excusing owner from responsibility. A tenant lease may not contain a provision whereby the tenant agrees not to hold the landlord or the landlord's agents legally responsible for any action or failure to act, whether intentional or negligent. (6) Annual Reporting. Each year, on the anniversary of the issuance of the certificate of occupancy/certificate of completion for the Project, and at other times at the request of the City, the Borrower shall furnish occupancy reports in a form approved by the City, and shall provide the City with such other information as may be requested by the City relative to income, expenses, assets, liabilities, contracts, operations, and condition of the Project and/or the CDBG-Assisted Units. (7) Inspections. The Borrower agrees to submit the CDBG-Assisted Units to an annual re -inspection to insure continuing compliance with all applicable housing codes, federal and local housing quality standards and regulatory requirements. The Borrower will be furnished a copy of the results of each inspection within thirty (30) days of completion, and will be given thirty (30) days thereafter to correct any deficiencies or violations. At any time other than an annual inspection, the City may, in its discretion, inspect any CDBG-Assisted Unit. The Borrower and the tenant will be provided with the results of the inspection and the time and the method of compliance and corrective action that must be taken. (8) Record -keeping. The Property, including the CDBG-Assisted Units, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records, documents, and Page 3 of 9 other papers relating thereto shall at all times be maintained in reasonable condition for proper audit and shall be subject to examination and inspection at any reasonable time by the City. Borrower shall keep copies of all written contracts and other instruments which affect the CDBG-Assisted Units, all or any of which may be subject to inspection and examination by the City. Specifically, the foregoing includes all records, calculations and information necessary to support tenant occupancy eligibility and monthly rental charges in addition to all leases and written notices to tenants with respect to the terms of this Regulatory Agreement, as required by this Regulatory Agreement. (9) Default. Upon the occurrence of a violation of any provision of this Regulatory Agreement, the City shall give written notice thereof to the Borrower, by registered or certified mail, addressed to the Borrower's address as stated in this Regulatory Agreement, or to such other address(es) as may subsequently, upon appropriate written notice thereof to the City, be designated by the Borrower. In the case of a Borrower which is a corporation or partnership, notices may also be sent by the City to the address of the corporation's chief executive officer or to all general partners, as applicable, at the City's discretion. If such violation is not corrected to the City's satisfaction, within thirty (30) days after the date such notice is mailed, or within such further time as the City reasonably determines is necessary to correct the violation, without further notice the City may declare a default under this Regulatory Agreement and under the Agreement and the Loan Documents executed in connection therewith, and may proceed to initiate any or all remedies at law or in equity provided for in the event of a default under such agreements and Loan Documents. Notwithstanding anything contained in this Regulatory Agreement, RBC Community Investments, LLC, its successors and/or assigns (the "Investor Limited Partner") shall have the right, but not the obligation, to cure an event of default hereunder within the same time periods afforded to the Borrower to cure such event of default. The City shall deliver to the Investor Limited Partner at the address set forth in this Section 9 a copy of any written notice of any event of default delivered by the City to the Borrower. Any cure of an event of default made by the Investor Limited Partner shall be deemed to be a cure by the Borrower and shall be accepted or rejected on the same basis as if made by the Borrower All notices under this Regulatory Agreement shall be in writing and addressed as follows: To Borrower: With Copy to: Edison Towers, LLLP. 5900 NW 7th Ave, Suite 102, Miami, Florida 33127 Attention: Carol Gardner Deborah M. Edwards Edwards & Feanny, P.A. 9580 SW 107`h Avenue Suite 204B Miami, FL 33176 Page 4 of 9 To City: City of Miami Depaitaalent of Housing and Community Development One Flagler Building 14 Northeast 1st Avenue, Second Floor Miami, Florida 33132 Attn: George Mensah, Director With Copy To: Victoria Mendez Office of the City Attorney, City of Miami 444 S.W. 2nd Avenue Miami, FL 33130-1910 (10) Fines. Upon the occurrence of a violation of any provision of this Regulatory Agreement, and regardless of the nature of the violation, the City will assess a flat monthly fine in the amount of Fifty Dollars and no/cents ($50.00) per CDBG-Assisted Unit that is the subject of such violation up to a maximum of Five Thousand Dollars and no/cents ($5,000.00) per month, for each month the violation is not corrected, and pay same over to the City. The remedy for violation provided in this section of this Regulatory Agreement is cumulative with any and all remedies at law or in equity provided in the event of a default under this Regulatory Agreement and/or the Loan Documents. (11) Tenant Notice. Borrower agrees during the term of this Regulatory Agreement, to furnish each tenant of a CDBG-Assisted Unit, at the execution or renewal of any lease or upon initial occupancy, if there is no lease, with a written notice in the following form: The rent charged for your apartment and the services included in that rent are subject to a Rent Regulatory Agreement between the landlord and the City of Miami, for the term of the Affordability Period. A copy of the Rent Regulatory Agreement will be made available by the landlord to each tenant upon request. If there is no lease for a CDBG-Assisted Unit, Borrower shall maintain a file copy of such notice delivered to the tenant, with a signed acknowledgement of receipt by the tenant. All such notices to tenants will be made available for inspection upon request by the City. (12) No Conflict with Loan Documents. The provisions of this Regulatory Agreement are in addition to, and do not amend, alter, modify, or supersede in any respect, the provisions of the mortgage and/or any of the other Loan Documents executed in connection with the Loan. (13) Partial Invalidity. The invalidity of any paragraph or provision of this Regulatory Agreement shall not affect the validity of the remaining paragraphs and provisions hereof. (14) Term. This Regulatory Agreement shall be effective until the expiration of the Affordability Period. On the Expiration of such period, this Regulatory Agreement Page 5 of 9 shall immediately lapse and be of no further force and effect without the necessity of any other written document or instrument. Notwithstanding the foregoing, upon such Expiration, the Borrower shall be permitted to prepare and record an instrument evidencing the expiration of and other termination of this Regulatory Agreement in the Public Records of Miami -Dade County, Florida. (15) Definitions. All capitalized terms used herein and not otherwise defined shall have the meanings provided in the Regulation and/or in the Loan Documents. (16) Exclusion of Commercial Spaces. Notwithstanding anything to the contrary in this Regulatory Agreement or in the Agreement, it is expressly understood and agreed that the Regulation and all other terms, conditions, restrictions, and requirements of this Regulatory Agreement shall exclude, and shall not apply to, or otherwise restrict or affect, the operation, maintenance, leasing, improvement, base rent and other additional rent determination and collection, and all other aspects of the Borrower's management, leasing, and ownership of all or any portion of the commercial and retail spaces located in the Project, if applicable. (17) Severability. Invalidation of one of the provisions of this Regulatory Agreement by judgment of Court shall not affect any of the other provisions of the Covenant, which shall remain in full force and effect. (18) Recordation. This Regulatory Agreement shall be filed of record among the Public Records of Miami -Dade County, Florida, at the sole cost and expense of the Owner. (19) Governing Law and Venue. This Regulatory Agreement shall be construed and enforced pursuant to the laws of the State of Florida, excluding all principles of choice of laws, conflict of laws and comity. Any action pursuant to a dispute under this Regulatory Agreement must be brought in Miami -Dade County and no other venue. All meetings to resolve said dispute, including voluntary arbitration, mediation, or other alternative dispute resolution mechanism, will take place in this venue. The parties both waive any defense that venue in Miami -Dade County is not convenient. (20) Attorney's Fees. In the event litigation, arbitration, or mediation, between the parties hereto, arises out of the terms of this Regulatory Agreement, each party shall be responsible for its own attorney's fees, costs, charges, and expenses through the conclusion of all appellate proceedings, and including any final settlement or judgment. (21) Counterparts and Electronic Signatures. 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. Page 6 of 9 THIS REGULATORY AGREEMENT has been executed and delivered as of the day and year first above written. WITNESSES: Sign Print Name: Sign Print Name: ssa4410bettA PROJECT SPONSOR'S ADDRESS: Edison Towers, LLLP 5900 NW 7th Ave, Suite 102, Miami, Florida 33127 Attention: General Partner STATE OF FLORIDA COUNTY OF MIAMI-DADE PROJECT SPONSOR: EDISON TOWERS, LLLP, a Florida limited liability limited partnership By: EDISON TOWERS GP, LLC, a Florida limited liability company, its general partner By: jthd0 Carol Gardner, P ACKNOWLEDGMENT The foregoing instrument vs/Li acknowledged before me by means of 1 physical presence or El online notarization, this at day of -I v'Wbd2022 by Carol Gardner as President of Edison Towers GP, LLC., the general partner of Edison Towers LLLP on behalf of Borrower. She is personally known to me or has produced as identification. (NOTARY PUBLIC SEAL) Notary Public State of Florida Shamitte S. Gordon AT My Commission HH 042939 a P.dv. Expires 09/15/2024 .44444444 g$444-fru Signature of Person Taking Acknowledgment (Printed, Typed, or Stamped Name of Notary Public) Serial Number, if any Page 7 of 9 ATTEST: Todd B. H City Clerk Date: q loLC �3.0 N APPROVED AS TO FORM AND CORRECTNESS: Victoria Mend City Attorney Af* CITY: CITY OF MIAMI, a municipal corporation of the State of Flo By: Arthur Nonlga City Manager 4,1 Page 8 of 9 Exhibit A Legal Description Of The Property A PORTION OF TRACT A OF TACOLCY GARDENS, ACCORDING TO THE PLAT THEREOF, AS RECORDED IN PLAT BOOK 137, PAGE 51, OF THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE N.W. CORNER OF AFOREMENTIONED TRACT A; THENCE RUN S 89°24'55 E ALONG THE NORTH LINE OF SAID TRACT A, A DISTANCE OF 116.00 FEET TO A POINT; THENCE RUN S 00°00'O1" E A DISTANCE OF 21.00 FEET; THENCE RUN S 89°24'55" E A DISTANCE OF 20.37 FEET; THENCE RUN S 00°00'O1" E A DISTANCE OF 28.89 FEET; THENCE RUN N 89°41'23" E A DISTANCE OF 19.21 FEET; THENCE RUN S 00°03'12" E A DISTANCE OF 355.65 FEET TO THE A POINT ON THE SOUTH LINE OF TRACT A; THENCE RUN N 89°24'30" W A DISTANCE OF 131.18 FEET TO A POINT ON A CIRCULAR CURVE CONCAVE TO NORTHEAST, HAVING A RADIUS OF 25.00 FEET, A CENTRAL ANGLE OF 89°24'30" AND AN ARC LENGTH OF 39.01 FEET; THENCE RUN NORTH ALONG THE WEST LINE OF TRACT A, A DISTANCE OF 380.47 FEET TO THE POINT OF BEGINNING. as '5' Page 9 of 9