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HomeMy WebLinkAbout24342AGREEMENT INFORMATION AGREEMENT NUMBER 24342 NAME/TYPE OF AGREEMENT OMNI CRA & CASA MIA APARTMENTS DESCRIPTION DECLARATION OF RESTRICTIVE COVENANTS/CASA MIAMI APARTMENTS 1815 NW 1ST CT, MIAMI, FL 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 Folio: 0131250480750 DECLARATION OF RESTRICTIVE COVENANTS FOR CASA MIA APARTMENTS, LLC This Declaration of Restrictive Covenants for CASA MIA APARTMENTS, LLC (the "Covenant") made this 1 day of 1,t,.2023 by CASA MIA APARTMENTS LLC, a Florida limited liability company (hereinafter referred to as "Project Sponsor"), is in favor of 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, and its successors and/or assigns (hereinafter the "CRA" or "Lender"). RECITALS WHEREAS, the Project Sponsor is the owner of the property legally described in Exhibit "A," attached hereto and incorporated herein (the "Property"); and WHEREAS, the Project Sponsor hereby agrees and covenants that the Property shall be subject to the provisions, covenants, and restrictions contained herein; and WHEREAS, this Covenant is made for the express benefit of the CRA, a public agency and body corporate created pursuant to Section 163.356, Florida Statutes, and it shall remain in full force and effect until released by the CRA, its successors, or assigns in accordance with the terms hereof; and WHEREAS, the Project Sponsor is developing a project that will increase the supply of rental housing units for Workforce -Income Households and Market -Rate Income Households in the community to be known as CASA MIA APARTMENTS (hereinafter referred to as the "Project" or the `Building"), which consists of the rehabilitation of twelve (12) units, comprised of six (6) two -bedroom and six (6) studio apartments located at 1815 NW lst Ct., Miami, Florida ( the "CRA-Assisted Units") in the County of Miami -Dade, State of Florida, legally described in Exhibit "A"; and WHEREAS, nine (9) of the twelve (12) CRA-Assisted Units will be maintained as Workforce -Income Households, as defined herein, and three (3) of the twelve (12) CRA-Assisted Units will be maintained as Market Rate -Income Households, as defined herein, for a period of twenty (20) years, commencing upon the Close -Out of the Project (such 20-year period being the "Affordability Period"); and WHEREAS, during the Affordability Period and subject to Existing Tenants' lease terms and rights, the Project must at all times maintain the following unit mix structure: Nine (9) of the Page 1 of 7 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 (the "Unit -Mix"); and WHEREAS, the CRA's allocation of funds for the Project is subject to those certain Construction Forgivable Project Loan Agreement for Casa Mia Apartments, LLC effectively dated of even date herewith (the "Forgivable Loan Agreement" or "Loan Agreement") and other loan documents of even date herewith between the CRA and the Project Sponsor (collectively the "Loan Documents"); and WHEREAS, Project Sponsor desires to make a binding commitment to assure that the CRA Assisted Units and the Property in general are maintained and operated in accordance with the provisions of the Loan Documents and this Covenant; and WHEREAS, Project Sponsor, as a condition for receiving the Loan funds for the Property is required to record in the Public Records this Covenant obligating the Project Sponsor, its successors, transferees, and assigns to maintain and operate the Property in accordance with the Loan Documents; and WHEREAS, the Project Sponsor hereby declares that this Covenant shall be and is a covenant running with the Property and, unless released by the CRA, is binding on the Property during the entire Affordability Period, and is not merely a personal covenant of the Project Sponsor. NOW THEREFORE, Project- Sponsor voluntarily covenants and agrees that the CRA Assisted Units and the Property in general shall be subject to the following restrictions that are intended and shall be deemed to be covenants running with the land and binding upon Project Sponsor, and its heirs, successors and assigns as follows: Section 1. Recitals: The recitals and findings set forth in the preamble of this Covenant are hereby adopted by reference thereto and incorporated herein as if fully set forth in this Section. Section 2. Use ofProperty: The Project shall be developed and consists of the rehabilitation of one (1) three-story, mixed income building on the Property. During the Affordability Period and subject to Existing Tenants' lease terms and rights, the Project must at all times maintain the Unit -Mix. A total of nine (9) units in the Building will be maintained as housing for Workforce - Income Households and three (3) units as housing for Market -Rate Income Households in accordance with the Rent Regulatory Agreement, for a period of time commencing upon the Close - Out of the Project and expiring twenty (20) years thereafter ("Expiration of the Affordability Period"). "Workforce -Income" shall mean a household whose annual income does not exceed one hundred twenty percent (120%) of the median income for the area, as determined by the U.S. Department of Housing and Urban Development, with adjustments and certain exceptions as provided in 24 CFR Part 92. "Market Rate Income" units are units which are not restricted in terms of tenant income or rental price. Notwithstanding,anything herein to the contrary, Project Sponsor shall be permitted to retain its existing tenants (each an "Existing Tenant" and collectively the "Existing Tenants") in the Buildings at the current rental rates for such Existing Tenants and with annual rental increases based on the consumer price index. Upon an Existing Tenant vacating their respective Building unit, any subsequent rental of such unit will be required to comply with the affordability requirements of this Covenant. Section 3. Term of Covenant: This Covenant is a covenant running with the land. This Covenant shall remain in full force and effect and shall be binding upon the Project Sponsor, its Page 2 of 7 successors and assigns from the date hereof until the Expiration of the Affordability Period. Upon the expiration of the Affordability Period this covenant shall automatically terminate; however, the CRA shall prepare for recording an instrument evidencing the expiration of and other termination of this Covenant in the Public Records of Miami -Dade County, Florida. Section 4. Prohibited Conveyances: Except as provided in the Loan Documents, including the Permitted Senior Financing described therein, the Project Sponsor covenants and agrees not to encumber or convey its interest in the Project, Property, or any portion thereof, without the prior written consent of the CRA as required in the Forgivable Loan Agreement. The CRA is entitled to the right of first refusal in the event of a sale of the Property as set forth below in this Section 4. For the purposes of this Covenant, any change in the ownership or control of the Project Sponsor, which is not permitted under the Loan Documents, including the Permitted Senior Financing described therein, shall be deemed a conveyance of an interest in the Project. The CRA shall not unreasonably withhold its consent for the Project Sponsor to refinance the current Permitted Senior Financing, which shall not be considered a change in ownership or control. If, at any time prior to the expiration of the Affordability Period, Project Sponsor shall receive a bona fide offer to purchase all of the Property that Project Sponsor desires to accept (the "Offer"), Project Sponsor shall provide a copy of such Offer to the CRA and the CRA shall have thirty (30) days after receipt of such Offer to elect to purchase the Property on the terms and conditions set forth in the Offer. If the CRA elects to so purchase the Property, the CRA shall give to Project Sponsor written notice thereof ("Acceptance Notice"). within -said 30-day period. If CRA delivers an Acceptance Notice as provided herein, then Project Sponsor and CRA shall, within thirty (30) days after such delivery, enter into a purchase and sale agreement pertaining to the purchase and sale of the Property (the "Purchase and Sale Agreement"), reflecting the exact terms of the Offer. The parties agree to act reasonably and cooperatively in negotiating, executing and delivering the Purchase and Sale Agreement. In the event that either (i) the CRA shall fail to timely deliver an Acceptance Notice or (after timely delivering an Acceptance Notice) the CRA shall fail to timely execute the Purchase and Sale Agreement, or (ii) the CRA shall elect not to so purchase the Property, then the Project Sponsor may thereafter sell the Property to the person or entity making such Offer without offering it to CRA. Section 5. Repayment Upon Default: The Project Sponsor covenants and agrees that in the event (i) of the sale or conveyance of any interest in the Project and/or the Property without prior written consent as required by the Loan Documents (except as otherwise provided in the Loan Documents), or (ii) that the Project Sponsor ceases to exist as an organization, the Project Sponsor shall immediately make payment to the CRA in an amount equal to the full amount of Loan funds disbursed and outstanding, with interest thereon as provided in the Note, and all unpaid fees, charges and other obligations of the Project Sponsor due under any of the CRA Loan Documents. Section 6. Inspection and Enforcement: It is understood and agreed that any official inspector of the CRA shall have the right any time during normal working hours to enter and investigate the use of the Property to determine whether the conditions of this Covenant are in compliance, subject to the rights of residential tenants under their leases. Section 7. Amendment and Modification: This Covenant may be modified, amended, or released as to any portion of the Property by a written instrument executed on behalf of the CRA and the Project Sponsor or their respective successors and assigns. Should this instrument be modified, amended or released, the Executive Director shall execute a written instrument in Page3 of7 recordable form to be recorded in the Public Records of Miami -Dade County, Florida, effectuating and acknowledging such modification, amendment, or release. Section 8. Definitions: All capitalized terms not defined herein shall have the meanings provided in the Loan Agreement. Section 9. Severability: Invalidation of one of the provisions of this Covenant by judgment of Court shall not affect any of the other provisions of the Covenant, which shall remain in full force and effect. Section 10. Recordation: This Covenant shall be filed of record among the Public Records of Miami -Dade County, Florida, at the sole cost and expense of the Project Sponsor. Section 11. Deed Restriction/Covenant Running with the Land. Any and all requirements of the laws of the State of Florida that must be satisfied in order for the provisions of this Covenant to constitute a deed restriction and covenant running with the land shall be satisfied in full, and any requirements or privileges of estate are intended to be satisfied, or in the alternate, an equitable servitude has been created to ensure that these restrictions run with the land. For the term of this Covenant, each and every contract, deed, or other instrument hereafter executed conveying the Property or portion thereof shall expressly provide that such conveyance is subject to this Covenant, provided, however, that the covenants contained herein shall survive and be effective regardless of whether such contract, deed, or other instrument hereafter executed conveying the Property or portion thereof provides that such conveyance is= subject to this Covenant. Section 12. Governing Law and Venue. This Covenant shall be construed and enforced pursuant to the laws of the State of Florida, excluding all principles of choice of laws, conflict of laws and comity. Any action pursuant to a dispute under this Covenant must be brought in Miami - Dade County and no other venue. All meetings to resolve said dispute, including voluntary arbitration, mediation, or other alternative dispute resolution mechanism, will take place in this venue. The parties both waive any defense that venue in Miami -Dade County is not convenient. Section 13. Floating Units. CRA-Assisted Units are "Floating Units." The total number of CRA-Assisted Units in the Project is fixed during the Affordability Period, but the Project Sponsor may from time to time change the designation of individual units from a City -Assisted Units to unassisted units so long as the total number of City - Assisted Units and the Unit Mix at all times conform to the requirements of this Covenant. [Signature Page Follows] Page 4 of 7 IN WITNESS WHEREOF, the parties hereto have caused this Covenant to be executed by their undersigned officials as duly authorized. WITNESSES: Print Name: Nil ci6- AAA -IQ Print Name: FrAV ) CASA MIA APARTMENTS LLC Address: Attn: CARLOS PARRA 2650 SW 27th Av Suite 301 Miami, Florida 33133 STATE OF FLORIDA ) COUNTY OF MIAMI-DADE ) PROJECT SPONSOR: CASA MIA APARTMENTS LLC, a Florida limited liability company By: SOUTHEAST REAL ESTATE INVESTMENTS LLC its Manager By:(2 arra, anage Date: 0 of - ACKNOWLEDGMENT THE FOREGOING INSTRUMENT was acknowledged before me by means of O physical presence or O online notarization on this " day of Vletreb, , 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 aidentification. My Commission Expires: Signatur6f Notary Public, State of Florida •.••;,;Y FRANCES LLOP-NOY ° \ %Notary Public -State of Florida %� i E: Commission # GG 905986 1..,���;�1 �,' My Commission Expires August 21, 2023 Fanab Ulf =NONI Printed Name of Notary Public Page5of7 IN WITNESS WHEREOF, the parties hereto have caused this Covenant to be executed by their undersigned officials as duly authorized. ATTEST: odd Hannon, < . the Board Date: J 3, a°a 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: Humberto Gonzalez, Exec tive Director APPROVED AS TO INSURANCE APPROVED AS TO FORM AND REQUIREMENTS CORRECTNESS: Ann -Marie S arpe 1 V`ictdria Mendez xEA Director of R k Management General Counsel Page 6 of 7 zy1/4-t2— Exhibit A Legal Description Of The Property 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. Page 7 of 7