HomeMy WebLinkAbout24850AGREEMENT INFORMATION
AGREEMENT NUMBER
24850
NAME/TYPE OF AGREEMENT
SEOPW CRA & BLOCK 55 RESIDENTIAL, LP
DESCRIPTION
HOUSING SUBSIDY AGREEMENT/THE RESIDENTS AT
SAWYER'S WALK
EFFECTIVE DATE
February 16, 2024
ATTESTED BY
ATTESTED DATE
DATE RECEIVED FROM ISSUING
DEPT.
3/8/2024
NOTE
ai4$50
HOUSING SUBSIDY AGREEMENT
THIS HOUSING SUBSIDY AGREEMENT (this "Agreement") is dated as of
f f 1pr(joy iv, 207,4 20 (the "Effective Date") by and between SOUTHEAST
OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY, a public
agency and body corporate created pursuant to Section 163.356, Florida States (the "CRA"), and
BLOCK 55 RESIDENTIAL, LP, a Florida limited partnership ("Owner").
RECITALS
WHEREAS, Owner is the owner of that certain real property located in the City of Miami,
Miami -Dade County, Florida more particularly described on Exhibit A attached hereto and made
a part hereof (the "Property") and is developing thereon a residential community known as "The
Residents at Sawyer's Walk" (the "Project"); and
WHEREAS, the CRA has an interest in supporting the residents of Overtown and assisting
them in obtaining affordable housing within the Overtown community of the City of Miami, and
in furtherance of such interest, the CRA desires to refer prospective tenants to Owner for the lease
of residential units in the Project and to provide rental assistance to Owner as further described in
this Agreement; and
WHEREAS, Owner desires to permit CRA to refer prospective tenants and to provide such
rental assistance as further described in this Agreement.
NOW, THEREFORE, in consideration of Ten Dollars ($10.00), the mutual covenants
contained herein and other good and valuable consideration, the sufficiency and receipt of which
are hereby acknowledged, the parties hereby agree as follows:
1. Recitals. The recitals set forth above are true and correct and are incorporated
herein by this reference.
2. Qualified Referrals.
(a) On or before January 31, 2024, the CRA shall deliver to Owner and to
Wingate Management Company, LLC, Owner's agent responsible for the management of the
Project or any successor agent notified to the CRA in writing ("Management Agent"), completed
preliminary applications in the form attached hereto as Exhibit B, together with copies of the
supporting documentation set forth on Exhibit C attached hereto, from (i) not less than fifty (50)
prospective tenants for the Project where the head of household is an elderly person of at least 62
years of age and whose household income is eighty percent (80%) of the area median income for
Miami -Dade County, Florida, following guidelines for Multifamily Rental Programs issued
annually by Florida Housing Finance Corporation ("AMI"), (ii) not less than one hundred fifty
(150) prospective tenants for the Project where the head of household is an elderly person of at
least 62 years of age and who either (A) is the recipient of a Section 8 Housing Choice Voucher
from the U.S. Department of Housing and Urban Development ("HUD") or (B) [qualifies for
housing as part of HUD's Rental Assistance Demonstration (RAD) program], and (iii) not less
than two hundred (200) prospective tenants for the Project where the head of household is an
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elderly person of at least 62 years of age and whose household income is less than eighty percent
(80%) of AMI (collectively, the "Proposed Qualified Referrals").
(b) Following the referral of the Proposed Qualified Referrals by the CRA to
Owner, the CRA and Owner will collaborate to identify at least two hundred eighty-nine (289)
Proposed Qualified Referrals that meet the tenant qualification requirements with which Owner is
required to comply, including without limitation, pursuant to the Low -Income Housing Tax Credit
Program, declarations, covenants and restrictions encumbering the Property and the terms of any
of Owner's financing for the Property. Owner and Management Agent shall have the further right
to screen the Proposed Qualified Referrals for suitability for tenancy in accordance with reasonable
screening requirements, including without limitation, background checks. Following such
qualification and screening process, Owner shall select, as tenants for the Project, (i) thirty-nine
(39) Proposed Qualified Referrals satisfying the criteria set forth in Section 2(a)(i) above and (ii)
one hundred fifty (150) Proposed Qualified Referrals satisfying the criteria set forth in Section
2(a)(ii) above (or, in each case, such lesser number if not all are so qualified). The remaining one
hundred (100) tenants for the Project to be selected from the CRA's Proposed Qualified Referrals
will then be selected from the Proposed Qualified Referrals described in Section 2(a)(iii) above.
The selection of the foregoing two hundred eighty-nine (289) tenants for the Project (each, a
"Qualified Referral") will be processed based on the order determined by the CRA. Each Qualified
Referral selected by Owner shall execute a lease with a minimum term of twelve (12) months and
occupy the leased unit upon the later of execution of the lease or opening of the Project for
occupancy. The CRA shall replace any Proposed Qualified Referral that is not a Qualified Referral
with a Proposed Qualified Referral having an income equal to the same or percentage of AMI as
the original Proposed Qualified Referral (but in any event not greater than eighty percent (80%)
of AMI).
(c) The CRA acknowledges and agrees that Owner is relying on the CRA to
refer a total of two hundred eighty-nine (289) Qualified Referrals as tenants for the Project at all
times during the Term of this Agreement (as defined below), and if the CRA fails to timely identify
the number of Proposed Qualified Referrals set forth in Sections 2(a)(i), 2(a)(ii) and 2(a)(iii) above
on or before January 31, 2024, Owner shall have the right to seek prospective new tenants for the
Project (in an amount equal to the difference between 289 and the number of Qualified Referrals
selected from the Proposed Qualified Referrals referred by the CRA) from any other source,
inclusive of the CRA.
(d) Within five (5) business days after receipt of written notice from Owner that
a unit previously leased to a Qualified Referral has become available as a result of a termination
of the applicable lease, the CRA shall refer a minimum of three (3) new Proposed Qualified
Referrals, each of which must satisfy the same criteria set forth in Section 2(a) above as the prior
Qualified Referral had satisfied as well as the other qualification and screening requirements set
forth herein, of which Owner shall select one Proposed Qualified Referral as a Qualified Referral
and tenant for the Project. The qualification and screening of each such Qualified Referral will
be made based on the order in which the Proposed Qualified Referrals were received. Such
Qualified Referral shall execute a lease with a minimum term of twelve (12) months and occupy
such available unit upon execution of the lease. If the CRA fails to refer such new Proposed
Qualified Referrals within the aforementioned five (5) business day period, Owner shall have the
right to seek prospective new tenants for the Project from any other source.
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(e) If, as a result of the CRA's failure to comply with the terms of this Section
2, Owner is required to seek prospective new tenants for the Project from any source other than
the CRA, each new tenant selected by Owner for the Project shall nonetheless constitute a
"Qualified Referral" including without limitation a "CRA Qualified Referral," as applicable, for
all purposes of this Agreement, including without limitation Section 3 hereof.
3. Rental Assistance.
(a) The CRA agrees to subsidize the rents of the CRA Qualified Referrals in an
aggregate amount equal to One Million Six Hundred Thousand and No/100 Dollars
($1,600,000.00) per year during the Term of this Agreement, which amount shall be payable in
monthly installments of One Hundred Thirty -Three Thousand Three Hundred Thirty -Three
Dollars and 33/100 Dollars ($133,333.33) each on the first day of each calendar month
commencing on the date on which the first rent payments are due from the Qualified Referrals.
(b) Each Qualified Referral shall be solely responsible for all costs of utilities
(including without limitation, the costs of utility hookups, fees and other deposits) serving the unit.
If a Proposed Qualified Referral is recommended for tenancy and is determined to be unable to
pay for utility hookups, fees, and other deposits which would then disqualify the Proposed
Qualified Referral for tenancy, the CRA, in its sole discretion, may provide needed financial
assistance to that Proposed Qualified Referral for utility hookups, fees, and other deposits, separate
from the assistance described in 3(a). Any such assistance shall be provided directly to the
Qualified Referrals by the CRA.
(c) [Each Qualified Referral shall be solely responsible for paying (i) a security
deposit equal to one month's rent, which shall be held by Owner as security for the Qualified
Referral's obligations under its lease, (ii) an advance payment of the last month's rent, which shall
be held by Owner and applied towards the last month's rent for each Qualified Referral under its
lease and (iii) any reasonable application fee that Owner may charge. If a Proposed Qualified
Referral is recommended for tenancy and is determined to be unable to pay such security deposit,
advance payment of last month's rent and/or application fee which would then disqualify the
Proposed Qualified Referral for tenancy, the CRA, in its sole discretion, may provide needed
financial assistance to that Proposed Qualified Referral for any such costs. Any such assistance
shall be provided directly to the Qualified Referrals by the CRA. The payment of such amounts
by each Qualified Referral to Owner is a condition to signing a lease. Owner shall hold and, if
applicable, apply, the security deposit received from each Qualified Referral in accordance with
the applicable lease and with all applicable laws, and if Owner so applies any amount of the
security deposit, such Qualified Referral shall promptly pay to Owner any amounts so applied to
restore the security deposit to the original amount. Following the expiration or earlier termination
of a lease with a Qualified Referral, any remaining balance of the security deposit not applied by
Owner during the term of such lease will be returned to the Qualified Referral. In the event any
remaining balance of the security deposit is not sufficient to cover any outstanding rent or damages
existing at termination of the lease with a Qualified Referral, Owner shall notify the CRA of same,
and the CRA shall pay such amounts to Owner within ten (10) business days after delivery of such
notice by Owner, after which time, any unpaid amount by the CRA shall accrue interest at the
lesser of eighteen percent (18%) per annum and the maximum legal rate through the date when
paid.
1120144 A-
4. Owner Obligations. Owner will comply in all material respects with the terms of
each lease with a Qualified Referral. Owner will comply with all fair housing laws, rules,
regulations or orders applicable to the Project and shall not discriminate on the basis of race, creed,
color, sex, age or national origin in the lease, use or occupancy of the Project; provided, however,
to the extent the Project meets the requirements for exemption from the prohibition against familial
status discrimination contained in Title VIII of the Civil Rights Act of 1968 (known as the Fair
Housing Act), as amended, such requirement shall not apply. Owner shall have the right to
terminate a lease with a Qualified Referral following a breach by such Qualified Referral, provided
that such termination is in accordance with the applicable lease and all applicable laws.
5. Remedies. In the event of any breach by the CRA of its obligations hereunder,
Owner shall be entitled to exercise any and all rights available at law or equity, including
maintaining actions for damages, specific enforcement and/or injunctive relief.
6. Term. This Agreement shall commence on the Effective Date and shall continue
in full force and effect through the fifth (5th) anniversary of the date on which the first monthly
installment is made by the CRA pursuant to Section 3 above (the "Term of this Agreement"). Upon
the expiration of this Agreement, Owner shall have the option to renew this Agreement, provided
that the terms of any such renewal shall be subject to mutual written agreement between Owner
and the CRA, each acting reasonably and in good faith. Following the expiration of the Term of
this Agreement, the CRA will not be obligated to provide any rental assistance pursuant to this
Agreement and the Owner will not be obligated to renew any leases with the Qualified Referrals,
including without limitation, the CRA Qualified Referrals.
7. Authority. Each party hereto represents and warrants to the other party that the
individual executing this Agreement on behalf of such party has been duly authorized to enter into
this Agreement and that this Agreement is enforceable against such party in accordance with its
terms.
8. Notices. Notices required or permitted to be given pursuant to the terms of this
Agreement will be sent by certified mail, return receipt requested, postage prepaid or by recognized
overnight courier, postage prepaid. Notice will be effective upon delivery or refusal of delivery.
Notices will be delivered to the following addresses, subject to the right of either party to change
the address at which it is to receive notice by written notice to the other party in accordance
herewith:
To the CRA:
Southeast Overtown/Park West
Community Redevelopment Agency
819 NW 2nd Avenue
Third Floor
Miami, Florida 33136
Attention: James McQueen, Executive Director
To the Owner:
1 125/2v24
Block 55 Residential, LP
2901 Florida Avenue
Suite 806
Coconut Grove, Florida 33133
With copies to:
Block 55 Owner, LLC
2901 Florida Avenue
Suite 806
Coconut Grove, Florida 33133
Attention: Michael J. Swerdlow, Managing Member
and
R4 SLFL Acquisition LLC
c/o R4 Capital LLC
780 Third Avenue
'16th Floor
New York, New York 10017
Attention: Mark Schnitzer
and
Wingate Management Company, LLC
100 Wells Avenue
Newton, Massachusetts 02459
Attention: Michael Martin, President
and
MRK Partners
5230 Pacific Concourse Drive
Suite 350
Los Angeles, CA 90045
9. Time of the Essence. Time is of the essence of each and every provision of this
Agreement.
10. Assignment; Parties Bound. The CRA shall not assign this Agreement or any
interest therein to any other person without Owner's prior written consent, which may be granted
or withheld in Owner's sole discretion. Owner may assign this Agreement or any interest therein
to a successor owner of the Project without the CRA's prior written consent. This Agreement
inures to the benefit of and be binding upon, and is intended solely for the benefit of, the parties
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ifr
hereto and their respective permitted successors and assigns, and no third party will have any
rights, claims, privileges or other beneficial interests herein or hereunder.
11. Integration and Amendment. This Agreement and the exhibits hereto set forth the
entire understanding of the parties with respect to the subject matter hereof, superseding and/or
incorporating all prior or contemporaneous oral or written agreements, and may be changed,
modified, or amended only by an instrument in writing executed by the party against whom the
enforcement of any such change, modification or amendment is sought.
12. Governing Law. This Agreement and the rights of the parties hereunder shall be
governed by, and interpreted in accordance with, the laws of the State of Florida, without regard
to principles of conflicts of law.
13. Litigation. In the event of any litigation between the CRA and Owner concerning
the terms of this Agreement, the prevailing party will be entitled to reimbursement of its costs and
expenses, including reasonable attorneys' fees, incurred in trial, appellate and post judgment
proceedings.
14. Invalid Provisions and Severability. In the event any term or provision of this
Agreement is held illegal, unenforceable or inoperative as a matter of law, the remaining terms
and provisions shall not be affected thereby, but shall be valid and remain in force and effect,
provided that the inoperative provisions are not essential to the interpretation or performance of
this Agreement in accordance with the clear intent of the parties.
15. No Waiver of Default. No waiver by a party of any breach of this Agreement by
the other party will be deemed to be a waiver of any other breach by such other party (whether
preceding or succeeding and whether or not of the same or similar nature), and no acceptance of
payment or performance by a party after any breach by the other party will be deemed to be a
waiver of any breach of this Agreement by such other party, whether or not the first party knows
of such breach at the time it accepts such payment or performance. No failure or delay by a party
to exercise any right it may have by reason of the default of the other party will operate as a waiver
of default or modification of this Agreement or prevent the exercise of any right by the first party
while the other party continues to be in default.
16. Waiver of Jury Trial. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN CONNECTION WITH CLAIM, ACTION
OR PROCEEDING BROUGHT IN CONNECTION WITH THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY HAS READ
AND UNDERSTANDS THE EFFECT OF THIS WAIVER OF JURY TRIAL PROVISION.
17. No Joint Venture. The parties expressly agree that no joint venture, partnership or
agency relationship is created or intended by this Agreement.
18. Counterparts; Electronic Signatures. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but allof which together shall
constitute one and the same instrument. This Agreement may be executed and delivered
electronically, including without limitation, clear images of manually executed signatures
II25/it 12.
transmitted by electronic format such as "pdf', "tif' or "jpg", as well as other electronic signatures
such as DocuSign and AdobeSign.
[Signatures on following page]
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IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
CRA as of the date first above written.
CRA:
SOUTHEAST OVERTOWN/PARK WEST
COMMUNITY REDEVELOPMENT AGENCY, a
public agency and body corporate created pursuant
to Section 163.356, Florida States
By:
e:
Title:
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
By:
Vincent T. Brown, Esq.
Staff Counsel
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by
Owner as of the date first above written.
OWNER:
BLOCK 55 RESIDENTIAL, LP,
a Florida limited partnership
By: Pacific Southwest Community Development
Corporation, its general artner
By: OIL)
Name:evhe/r.
Title:
[Signature page to Housing Subsidy Agreement]
EXHIBIT A
Legal Description of the Property
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE COUNTY OF MIAMI-
DADE, STATE OF FLORIDA, AND DESCRIBED AS FOLLOWS:
AIRSPACES THAT SHALL BE KNOWN AS "UNIT A-1" AND "UNIT A-2" PURSUANT TO
THE PROPOSED CONDOMINIUM SURVEY PREPARED BY BISCAYNE ENGINEERING
UNDER PROJECT NO. 87062, DATED AUGUST 11, 2021, AS AMENDED, FOR SAWYER'S
WALK, A CONDOMINIUM, ACCORDING TO THE DECLARATION OF CONDOMINIUM
THEREOF, TO BE RECORDED IN THE OFFICIAL RECORDS OF MIAMI-DADE COUNTY,
FLORIDA AND ALL EXHIBITS AND AMENDMENTS THEREOF, TOGETHER WITH ITS
UNDIVIDED INTEREST IN THE COMMON ELEMENTS.
EXHIBIT B
Form of Preliminary Application
[see attached]
112Sf2024
•
EOU<L U
CO\/ ovvoxrunirr
Date:
The Residences at Sawyer's Walk
62+ Senior Living
249 NW 6th Miami, FL 33136
Preliminary Application for CRA*
FULL NAME OF RELATIONSHIP DATE SOCIAL FULL
EACH PERSON TO HEAD OF SEX SECURITY TIME
IN HOUSEHOLD OF HOUSEHOLD BIRTH NUMBER STUDENT
1 62+ Head of Household
2
3
4
Address:
City, State, Zip Code
Telephone Contact:
Email Address:
Yes or No
Yes or No
Yes or No
Yes or No
TOTAL GROSS EARNINGS (BEFORE TAXES)
(Combined for all members)
Social Security per
Pensions per
Employment per
Others per
TOTAL ASSET BALANCE (Combined for all members)
(Asset amount is not used to determine eligibility however any income
generated from asset will be used)
Savings
Checking Acct
Bonds/40 1K/IRA
Others
Have you been displaced from your home OR has your home been condemned by the Board of Health due to Sanitary Code
Violations? If so, please describe?
Do you have a Section 8 Voucher or other Housing Assistance? Yes ❑No If so, Source:
SIZE OF APARTMENT NEEDED:
OBR 1BR 2BR
❑ ❑ ❑
UNIT TYPE REQUESTED:
Wheelchair Adapted Unit: ❑Yes ❑No
Hearing/Visual: ❑Yes ❑No
Any false or withheld information is considered fraud and may be considered grounds for rejection of your application or eviction. I hereby
authorize the owner/agent to make independent investigations to determine my credit, financial and character standing, including, but not
limited to, credit and criminal background reports. Applicant(s), authorize any person or credit/criminal background checking agency having
any information on me, to release any and all such information to the owner/manager/employee/agent or credit checking agencies. Applicant
hereby releases, remises, and forever discharges, from any action whatsoever, in law and equity, all owners, managers, and employees, or
agents, both of landlord and their credit checking agencies in connection with processing, investigating, or credit checking this application,
and will hold them harmless from any suit or reprisal whatsoever.
Applicant Signature Date Co -Applicant Date
Other Adult Date Other Adult Date
*This is a preapplication only and not a commitment to housing- the information above will be verified by a third
party prior to successful housing
EXHIBIT C
Supporting Documentation to be provided by Proposed Qualified Referrals
1. All adult household members who are employed must each provide 4-6 current
paystubs.
2. All adult household members who are paid in cash must each provide their
employer's information, including name, address, fax number, phone number and/or email
address.
3. Any household members who have income from sources other than employment,
such as Social Security, Disability, Worker's Compensation, VA Benefits, Unemployment
Compensation, TANF etc., must each provide proof of the gross amount being received over the
next 12 months.
4. All adult household members who are self-employed must each provide U.S.
federal tax returns from the prior two (2) calendar years.
EXHIBIT D
2023 Guidelines
Note: The general hold harmless provisions of IRC Section 142(d)(2)(E) mean that projects with at least one building placed in service an or before the end of the 45-day transition period
for newly -released limits use whichever limits are greater, the anent -year limits or the limits in use the preceding year.
HUD release: 5/15/2023
Effective: 5/152023
Implement on/before: 6282023
2023 Income Limits and Rent Limits
Florida Housing Finance Corporation
Multifamily Rental Programs and CWHIP Homeownership P ogram
NOTE: Does not pertain to CDBG-DR, HHRP, HOME, NHTF or SHIP
Percentage
Income Limit by Number of Persons in Household
Rent Limit by Number of Bedrooms in Unit
County (Metro)
Category
1
2
3
4
5
6
7
8
9
10
0
1
2
3
4
5
Miami -Dade County
20%
14,460
16,520
18,580
20,640
22,300
23,960
25,600
27,260
28,896
30,547
361
387
464
536
599
660
(Miami -Miami Beach-
25%
18,075
20,650
23,225
25,800
27,875
29,950
32,000
34,075
36,120
38,184
451
484
580
670
748
825
Kendall HMFA)
28%
20,244
23,128
26,012
28,896
31,220
33,544
35,840
38,164
40,454
42,766
506
542
650
751
838
925
30%
21,690
24,780
27,870
30,960
33,450
35,940
38,400
40,890
43,344
45,821
542
580
696
805
898
991
33%
23,859
27,258
30,657
34,056
36,795
39,534
42,240
44,979
47,678
50,403
596
638
766
885
988
1,090
35%
25,305
28,910
32,515
36,120
39,025
41,930
44,800
47,705
50,568
53,458
632
677
812
939
1,048
1,156
40No
28,920
33,040
37,160
41,280
44,600
47,920
51,200
54,520
57,792
61,094
723
774
929
1,073
1,198
1,321
45%
32,535
37,170
41,805
46,440
50,175
53,910
57,600
61,335
65,016
68,731
813
871
1,045
1,207
1,347
1,486
50%
36,150
41,300
46,450
51,600
55,750
59,900
64,000
68,150
72,240
76,368
903
968
1,161
1,341
1,497
1,651
60%
43,380
49,560
55,740
61,920
66,900
71,880
76,800
81,780
86,688
91,642
1,084
1,161
1,393
1,610
1,797
1,982
70%
50,610
57,820
65,030
72,240
78,050
83,860
89,600
95,410
101,136
106,915
1,265
1,355
1,625
1,878
2,096
2,312
Median: 74,700
80%
57,840
66,080
74,320
82,560
89,200
95,840
102,400
109,040
115,584
122,189
1,446
1,549
1,858
2,147
2,396
2,643
120%
86,760
99,120
111,480
123,840
133,800
143,760
153,600
163,560
173,376
183,283
2,169
2,323
2,787
3,220
3,594
3,964
140%
101,220
115,640
130,060
144,480
156,100
167,720
179,200
190,820
202,272
213,830
2,530
2,710
3,251
3,757
4,193
4,625
Florida Housing Finance Corporation (FHFC) income and rent limits are based upon figures provided by the United States Department of Housing and Urban Development (HUD) and are subject to change.
Updated schedules will be provided when changes occur.
4862-6133-9521, v. 11
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