HomeMy WebLinkAbout24341AGREEMENT INFORMATION
AGREEMENT NUMBER
24341
NAME/TYPE OF AGREEMENT
OMNI CRA & CASA MIA APARTMENTS
DESCRIPTION
RENT REGULATORY AGREEMENT/REHABILITATION OF
RESIDENTIAL APARTMENT UNITS/FILE ID: 7931/CRA-R-20-
0016
EFFECTIVE DATE
March 31, 2023
ATTESTED BY
TODD B. HANNON
ATTESTED DATE
3/31/2023
DATE RECEIVED FROM ISSUING
DEPT.
4/3/2023
NOTE
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: 1815 NW 1st Ct. Miami, Florida
RENT REGULATORY AGREEMENT FOR
CASA MIA APARTMENTS
THIS RENT REGULATORY AGREEMENT FOR CASA MIA APARTMENTS
("Regulatory Agreement") is entered into this '0 I day of MaAtZk. , 2023, between CASA
MIA APARTMENTS, LLC, a Florida limited liability company (hereinafter referred to as
"Borrower") and the OMNI REDEVELOPMENT DISTRICT COMMUNITY
REDEVELOPMENT AGENCY, a public agency and body corporate created pursuant to Section
163.356, Florida Statutes, with a principal office located at 1401 N. Miami Avenue, Miami, FL,
33136 (hereinafter the "CRA").
RECITALS
WHEREAS, the execution of this Regulatory Agreement by the Borrower is in connection
with the loan from the CRA to Borrower in the amount of $500,000.00 ("CRA Funds") for Project
hard and soft construction costs as authorized through resolution CRA-R-20-0016 (the "Loan"),
and use of CRA Funds, secured by certain loan documents to be executed in connection therewith
(the "Loan Documents"), for the rehabilitation of a total of twelve (12) residential apartment units;
and
WHEREAS, all twelve (12) of the units will be CRA-assisted units (the "CRA-Assisted
Units") of that certainproject known as the Casa Mia Project (the "Project") located at 1815 NW
1st Ct. Miami, Florida (the "Property"); and
WHEREAS, in accordance with the requirements set forth in (i) that certain CRA
Construction Forgivable Loan Project Agreement executed by the Borrower and the CRA for the
CRA funds (the "Agreement"), and (ii) the other Loan documents of even date herewith and
therewith between the Borrower and the CRA, all twelve (12) units are considered "CRA-
Assisted" and all of the CRA-Assisted Units are subject to the restrictions provided herein; and
WHEREAS, the twelve (12) CRA-Assisted Units shall be "floating" units, meaning that
they are not specifically designated units, but that any twelve (12) of the units in the Project shall
be, at any one time, in compliance with the CRA-Assisted requirements set forth herein, and in
compliance throughout the Affordability Period with the Covenant recorded on the property
legally described on Exhibit "A," which is attached hereto and is incorporated herein, of this
Regulatory Agreement; and
WHEREAS, the Project must at all times (during the Affordability Period and subject to
Existing Tenants' lease agreements and rights) maintain the following unit mix structure: Nine (9)
of the CRA-Assisted Units must be occupied by Workforce -Income Households and three (3) of
the CRA-Assisted Units must be occupied by Market Rate -Income Households, as more
particularly described herein (the "Unit -Mix").
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TERMS
Borrower hereby agrees to the following terms, conditions and covenants until the end of
the Affordability Period:
(1) Existing Tenant Occupancy Requirements. Tenants with existing leases
(each an "Existing Tenant") at the time of acquisition of the Project by Borrower will be allowed
to retain their existing apartment, or new apartment within development, at their current rent level,
with annual adjustments based on the Consumer Price Index CPI not_ to exceed 5% per year.
Borrower will not terminate the lease of an Existing Tenant except in accordance with the terms
of such Existing Tenant's lease or otherwise as permitted pursuant to applicable law. If an Existing
Tenant wishes to renew its expiring lease, and there are no uncured defaults under such expiring
lease, then Borrower shall renew such Existing Tenant's lease subject rental rate increases as
provided for above in this Paragraph (1). Unless previously authorized by existing lease, an
Existing Tenant may not assign its lease except to a spouse, parent, sibling or any lineal descendant
of such Existing Tenant.
(2) New -Tenant Occupancy Requirements. When an Existing Tenant vacates
such Existing Tenant's unit, such unit shall thereafter be made available to tenants who qualify
under the occupancy requirements of 24 CFR Part 92 and the CRA-Assisted Unit requirements as
set forth in this Regulatory Agreement (hereinafter referred to as the "Regulation"), as follows:
a. Maximum Rent Levels. The rents charged on all CRA-Assisted Units shall
be subject to the Regulation. Gross monthly rent charged on CRA-Assisted
Units occupied by tenants identified as Workforce -Income are subject to the
maximum rents published by the United States Department of Housing and
Urban Development, as determined by the Secretary of the United States
Department of Housing and Urban Development on an annual basis for each
locality and income level. The rent maximums for leases signed in Miami,
Florida effective as of April, 2022 are as follows:
No. of
Units
Restriction
Bedroom
Bed/Bath
Unit Type
120% AMI
Workforce Rent
Maximum
6
120% AMI Workforce
STUDIOS
$2,049
3
120% AMI Workforce
2/1
BEDROOM
$2,634
3
N/A (Market -Rate)
2/1
BEDROOM
N/A
The foregoing maximum rents include tenant paid utilities. Maximum rents will be reduced
by the amount of the applicable HUD Utility Allowance for any utilities paid by the tenant. In no
event will the monthly rent on a CRA-Assisted Unit exceed the maximum rent levels as provided
for in this Paragraph (2)(a). Rents shall not be adjusted for changes in income or HUD published
maximums until lease renewal. The Project must at all times (during the Affordability Period and
subject to Existing Tenants' lease terms and rights) maintain the Unit -Mix.
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b. Income Re -certification. Tenant income for CRA-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 CRA, in accordance with Paragraph (4)
of this Regulatory Agreement. Existing Tenants are not subject to Income Certification, or Re -
Certification.
c. - Deposits and Pre -payments. Borrower shall not require, as a
condition of occupancy or leasing of any CRA-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.
d. Prohibited Lease Provisions. The Borrower's leases for CRA-
Assisted Units shall not contain any of the following provisions:
i. 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.
ii. Agreement regarding treatment of property. A tenant lease
may not contain a provision whereby the tenant agrees that the landlord may
take, hold or sell personal property of the tenant household without notice
and a court decision. This prohibition does not apply to personal propeerty
remaining in the CRA-Assisted Unit after the tenant has moved out.
iii. 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.
iv. - 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.
v. 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.
vi. , Waiver of right to appeal a court decision. A tenant lease
may not contain a provision whereby the tenant agrees to waive the tenant's
right to appeal or otherwise challenge in court a court decision in connection
with the lease.
vii. 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.
viii. Excusing owner from responsibility. A tenant lease may not
contain a provision whereby the tenant agrees not to hold the landlord or
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the landlord's agents legally responsible for any action or failure to act,
whether intentional or negligent.
(3) Annual Reporting. Each year, on the anniversary of (i) the issuance of the
certificate of occupancy/certificate of completion for the Project or (ii) the Close -Out of the Project
in accordance with the Agreement, and, at other times at the request of the CRA (but in no event
more than two (2) times in any 12-month period), the Borrower shall furnish occupancy reports in
a form approved by the CRA, and shall provide the CRA with such other information as may be
requested by the CRA relative to income, expenses, assets, liabilities, contracts, operations, and
condition of the Project and/or the CRA-Assisted Units.
(4) Inspections. The Borrower agrees to submit the CRA-Assisted Units to an
annual re -inspection to ensure 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 (provided however, in the event
that the deficiencies or violations are not of a type which can be resolved in 30-days, the Borrower
shall have an additional 30 days of time to correct the same so long as Borrower is diligently
endeavoring to cause such correction). At any time other than an annual inspection, the CRA may,
in its discretion, inspect any CRA-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. All inspections by the CRA shall (i) be done during normal business hours,
(ii) upon at least three (3) business days prior notice to the Borrower and tenant (Borrower is
responsible for providing timely notice to the tenant), and (iii) in a manner so as to not materially
interfere with the tenant's occupancy of the CRA-Assisted Unit.
(5) Record -keeping. The Property, including the CRA-Assisted Units,
equipment, buildings, plans, offices, apparatus, devices, books, contracts, records, documents, and
other papers relating thereto shall at all times be maintained in reasonable condition for proper
audit and shall be subject to examination and inspection at any reasonable time by the CRA.
Borrower shall keep copies of all written contracts and other instruments which affect the CRA-
Assisted Units, all or any of which may be subject to reasonable inspection and examination by
the CRA its agents or assigns. Specifically, the foregoing includes all records, calculations and
information necessary to support tenant occupancy eligibility and monthly rental charges in
addition to all leases and written notices to tenants with respect to the terms of this Regulatory
Agreement, as required by Paragraph (8) of this Regulatory Agreement.
(6) Default. Upon the occurrence of a violation of any provision of this
Regulatory Agreement, the CRA shall give written notice thereof to the Borrower, by registered
or certified mail, FedEx or similar overnight courier (with tracking confirmation), 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 CRA, be designated by the Borrower.
In the case of a Borrower which is a corporation or partnership, notices may also be sent by the
CRA to the address of the corporation's chief executive officer or to all general partners, as
applicable, at the CRA's discretion. If such violation is not corrected to the CRA's reasonable
satisfaction, within thirty (30) days after the date such notice is delivered (as evidenced by tracking
information or USPS return receipt), if such violation cannot practicably be cured within thirty
(30) days, then within such additional time as may be required to effect a cure, so long as the cure
is commenced within thirty (30) days and is diligently prosecuted, never to exceed one hundred
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eighty (180) days ), without further notice the CRA 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 Agreement and Loan Documents.
All notices under this Regulatory Agreement shall be in writing and addressed as
follows:
To Borrower:
With Copy to:
CASA MIA APARTMENTS, LLC
2650 SW 27th Ave
Suite 301
Miami, Florida 33133
Attention: Edgar J. Nieto, Senior Vice President
TERRABANK, N.A.
3191 Coral Way, Penthouse 1
Miami, FL 33145
To City: Omni Redevelopment District Community
Redevelopment Agency
1401 North Miami Ave,
Miami, Florida
Attn: Humberto Gonzalez, Executive Director
With Copy To: Victoria Mendez
General Counsel
Office of the City Attorney, City of Miami
444 S.W. 2nd Avenue
Miami, FL 33130-1910
(7) Fines. Upon the occurrence (and continuance beyond applicable grace,
notice and/or cure periods) of a violation of any provision of this Regulatory Agreement, and
regardless of the nature of the violation, the CRA will assess (commencing upon the expiration of
the applicable grace, notice and/or cure period) a flat monthly fine in the amount of Fifty Dollars
and no/cents ($50.00) per CRA-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 CRA. 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.
(8) Tenant Notice. Borrower agrees during the term of this Regulatory
Agreement, to furnish each tenant of a CRA-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 Omni Redevelopment District
Community Redevelopment Agency, for the term of the
Affordability Period. A copy of the Rent Regulatory Agreement
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will be made available by the landlord to each tenant upon
request.
If there is no lease for a CRA-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 CRA.
(9) 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.
(10) 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.
(11) Term. This Regulatory Agreement shall be effective until the expiration of
the Affordability Period. On the expiration of such period, this Regulatory Agreement shall
immediately lapse and be of no further force and effect without the necessity of any other written
document or instrument. Notwithstanding the foregoing, upon such expiration, the Borrower shall
be permitted to prepare and record an instrument evidencing the expiration of and other termination
of this Regulatory Agreement in the Public Records of Miami -Dade County, Florida.
(12) Definitions. All capitalized terms used herein and hot otherwise defined
shall have the meanings provided in the Regulation and/or in the Loan Documents.
(13) 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.
(14) 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.
(15) 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.
(16) 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.
(17) Counterparts. This Regulatory Agreement may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original, and such counterparts
shall together constitute but one and the same Regulatory Agreement. The parties shall be entitled
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to sign and transmit an electronic signature of this Regulatory Agreement (whether by facsimile,
PDF or other email transmission), which signature shall be binding on the party whose name is
contained therein. Any party providing an electronic signature agrees to promptly execute and
deliver to the other parties an original signed Regulatory Agreement upon request.
(18) 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.
(19) Recitals. All of the Recitals are incorporated in this Regulatory Agreement
as if set forth in entirety.
[Signature Page Follows]
Page 7 of 11
IN WITNESS WHEREOF, the parties hereto have caused this Regulatory Agreement to be
executed by their undersigned officials as duly authorized.
WITNESSES: PROJECT SPONSOR:
CASA MIA APARTMENTS LLC,
a Florida limited liability company
By: SOUTHEAST REAL ESTATE
INVESTMENTS LLC
its Manager
WITNESSES: B
Prinf Name: Ahi-ritua bueli. J
Print Name: RANA u -e-N°''1
CASA MIA APARTMENTS LLC Address:
Attn: CARLOS PARRA
2650 SW 27th Av Suite 301
Miami, Florida 33133
STATE OF FLORIDA )
COUNTY OF MIAMI-DADE )
Date: L53 -CS / 2
ACKNOWLEDGMENT
THE FOREGOING INSTRUMENT was acknowledged before me by means of 0 physical
presence or O online notarization, on this Pt- day of MACS- , 2023 by Carlos G. Parra,
as Manager of SOUTHEAST REAL ESTATE INVESTMENTS LLC, the Manager of CASA
MIA APARTMENTS, LLC, on behalf of such limited liability company, who is personally known
to me or who produced a a identification.
My Commission Expires:
e`VV,,, FRANCES LLOP-NOY
`r°/ < Notary Public -State of Florida
*E Commission # GG 906986
WI My Commission Expires
"Ogie August 21, 2023
Signature . otary P `.lic, State of Florida t
0./
Page 8 of 11
Printed Name of Notary Public
Page 9 of 11
IN WITNESS WHEREOF, the parties hereto have caused this Regulatory Agreement to be
executed by their undersigned officials as duly authorized.
ATTEST:
CRA:
OMNI REDEVELOPMENT DISTRICT
COMMUNITY REDEVELOPMENT AGENCY
of the City of Miami, a public agency and body
corporate created pursuant to Section 163.356,
Florida Statutes ("CRA")
By: By:
d Hannon, the Board
Date: J 3 taoa3
Humberto Gonzalez, Exec tive rector
APPROVED AS TO INSURANCE APPROVED AS TO FORM AND
REQUIREMENTS CORRECTNESS:
Ann-Marie,sha e Vict na Mendez x
Director ot Risk vlanagement General Counsel
Page 10 of 11
Exhibit A
Legal Description
"Z-y-3L1 I
DESCRIPTION: LOT 11 LESS THE E 25FT BLOCK 23 OF WADDELLS ADDITION TO
MIAMI, ACCORDING TO THE PLAT THEREOF AS RECORDED IN PLAT BOOK B PAGE
53 OF THE PUBLIC RECORDS OF MIAMI DADE COUNTY, FLORIDA.
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