Loading...
Item I3 LAND AUTHORITY GOVERNING BOARD AGENDA ITEM SUMMARY Meeting Date: November 18. 2009 Division: Land Authoritv Bulk Item: Yes No...x.. Contact / Phone #: Mark Rosch / 295-5180 Agenda Item Wording: Approval of a resolution authorizing amendments to the mortgage loan and affordable housing deed restrictions for the Roosevelt Sands Housing Complex in Key West. Item Background: The subject property is a 44-unit rental affordable housing complex located at 105 Truman Avenue in Key West owned by the Key West Housing Authority. To fund KWHA's purchase of the site, the Land Authority issued a $1,500,000 mortgage loan in 2001. KWHA proposes to demolish and rebuild this 70-year-old housing complex. Initially KWHA planned to fund this reconstruction project with a $3,750,000 institutional mortgage loan and $5,000,000 mortgage loan from the Florida Housing Finance Corporation's Community Workforce Housing Innovative Pilot (CWHIP) program. The Land Authority adopted Resolutions 01-2008 and 02-2009 in support of this previous financing plan. Due to lower construction costs and the availability of a $2,933,000 Disaster Recovery grant from the US Department of Housing and Urban Development, KWHA now proposes to finance the project with considerably less debt consisting of a $2,900,000 institutional mortgage loan. To meet the lender's requirements and to enhance the project's financial feasibility, KWHA requests approval of the subject resolution to amend and subordinate both the deed restrictions and the mortgage held by the Land Authority. Section 1 of the resolution lists the amendment and subordination actions, which include exempting the lender from affordability restrictions in the event of a foreclosure. Advisory Committee Action: On October 27,2009 the Committee voted 5/0 to approve this item. Previous Governing Board Action: In 2001 the Board approved issuing a $1,500,000 mortgage loan to KWHA for site acquisition. In 2008 and 2009 the Board approved Resolutions 01-2008 and 02-2009 to support the previous financing plan for reconstruction. Contract/Agreement Changes: Amend and subordinate deed restrictions and mortgage per Section 1 of the resolution. Staff Recommendation: Approval. Total Cost: $ 750.00 Indirect Cost: $ Budgeted: Yes ~ No Cost to Land Authority: $ 750.00 Source of Funds: Land Authoritv (Tourist Impact Tax and State Park Surcharge) Approved By: Attorney ~ County Land Steward _' Documentation: Included: ~ To Follow: Not Required: Disposition: Agenda Item RESOLUTION NO. A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING AMENDMENTS TO THE MORTGAGE LOAN AND DEED RESTRICTIONS FOR THE ROOSEVELT SANDS HOUSING COM PLEX. WHEREAS, section 380.0666(3), Florida Statutes and section 2-396, Monroe County Code, empower the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") to acquire and dispose of interests in real property for the purpose of providing affordable housing; and WHEREAS, in 2001 the Land Authority issued a 30-year, zero interest mortgage loan in the amount of $1,500,000 to the Key West Housing Authority (hereinafter "KWHA") to fund the purchase of the 44-unit affordable housing site known as the Roosevelt Sands Housing Complex (hereinafter "subject property") located at 105 Truman Avenue in Key West; and WHEREAS, KWHA desires to demolish and rebuild the housing on the subject property; and WHEREAS, KWHA originally planned to finance the project by obtaining a $5,000,000 mortgage loan from the Florida Housing Finance Corporation's Community Workforce Housing Innovative Pilot (CWHIP) program together with a mortgage loan from an institutional lender of approximately $3,750,000; and WHEREAS, the Land Authority adopted Resolutions 01-2008 and 02-2009 in support of KWHA's CWHIP application; and WHEREAS, based on the construction bids KWHA received, CWHIP financing is no longer necessary, Land Authority Resolutions 01-2008 and 02-2009 are no longer applicable, and KWHA plans to finance the project with a single institutional mortgage loan in the amount of $2,900,000 together with a HUD 2005 Disaster Recovery Wilma Grant Award in the amount of $2,933,000; and WHEREAS, in order to meet the lender's requirements and to enhance the project's financial feasibility, KWHA requests the Land Authority's approval to amend the existing mortgage loan and deed restrictions encumbering the subject property's title; and WHEREAS, the Land Authority Advisory Committee considered this resolution on October 27, 2009 and voted 5/0 to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. The Chairman of the Land Authority Governing Board is hereby authorized to execute the necessary documents to: a) restructure the restrictions on the warranty deed recorded in Official Records Book 1697 at Page 2074 so they run in favor of the Land Authority but not in favor of Key Plaza Apartments-II Ltd; and b) modify said restrictions to implement the revisions shown in Attachment A; and Page 1 of 2 c) subordinate said restrictions to an institutional first mortgage in an amount not to exceed $2,900,000; and d) subordinate the Land Authority's $1,500,000 mortgage loan recorded in Official Records Book 1697 at Page 2076 to an institutional first mortgage in an amount not to exceed $2,900,000; and e) modify the restrictions on said Land Authority mortgage loan to implement the revisions shown in Attachment B; and f) extend the term of said Land Authority mortgage loan from the existing 30-year term that commenced in 2001 to a term of 25 years commencing from the date of the institutional first mortgage. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a regular meeting on this day of 2009. (Seal) ATTEST: MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Mark J. Rosch Executive Director Kim Wigington Chairman Approved for Legal Sufficiency Larry R. Erskine Page 2 of 2 ATTACHMENT A Revisions to Restrictions Attached to the Warranty Deed Recorded in Official Records Book 1697 at Page 2074 Roosevelt Sands Housing Complex THIS DEED IS MADE AND IS TO BE ACCEPTED WITH THE UNDERSTANDING THAT USE OF THE PROPERTY CONVEYED IS RESTRICTED BY THE FOllOWING: THE PROPERTY SHAll BE DEVELOPED WITH AFFORDABLE HOUSING FOR VERY lOW, lOW, OR MODER^TE INCOME PERSONS ^S DEFINED IN SECTION '120.000'1 ill ACCORDANCE WITH SECTION 380.0666(3), FLORIDA STATUTES, CONSISTENT WITH THE FOllOWING POLICIES OF THE KEY WEST HOUSING AUTHORITY: 1. Income targeting shall be 80% of median adjusted for family size. Income targeting may increase to 120% to maintain occupancy level and financial feasibility but not to exceed 40% of project units. Income tarQetinQ for workforce housinQ units may increase to 150% of median but may not exceed 20% of the proiect units. 2. Rental rates shall be calculated usinQ the same methodoloQY as the low income housing tax credit program as adjusted annually. 3. The compliance requirements shall be the same of the low Income Housing Tax Credit (L1HTC) Program as contained in the Florida Housing Finance Corporation (FHFC) Compliance Manual and shall be the responsibility of the developer to insure compliance annually. 4. The program requirements for the L1HTC, Mortgage Revenue Bond (MRB), State Apartment Incentive loan (SAil), and HOME programs when competitively obtained require lower income targeting (rents), which take precedence when utilized. 5. The US Department of Housing and Urban Development occupancy requirements (family composition) shall be adhered to, as they pertain to maximum occupancy only. The above restrictions shall not expire and may only be released by the Monroe County Comprehensive Plan land Authority. These restrictions are for the benefit of the present O'A'ner and its successors and assigns and may be enforced by them in every I a'Nfu I manner. ATTACHMENT B Revisions to Restrictions Attached to the Mortgage Deed Recorded in Official Records Book 1697 at Page 2076 Roosevelt Sands Housing Complex In reference to the Mortgage Deed dated the 21st day of May, 2001, between the HOUSING AUTHORITY OF THE CITY OF KEY WEST, FLORIDA, A PUBLIC BODY CORPORATE AND POLITIC, Mortgagor, and MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, A LAND AUTHORITY UNDER SECTION 380.0663(1), FLORIDA STATUTES AND MONROE COUNTY ORDINANCE NO. 031-1986, the Mortgagee, the parties further covenant and agree as follows: 1. Mortgagor's use of the property shall be limited to the provision of affordable housing to very low income, low income, or moderate income persons, as defined in 5/120.000'1 in accordance with section 380.0666(3), Florida Statutes. 2. Mortgagor is responsible for developing and managing the property as affordable housing and ensuring compliance with the affordability requirement of 1 above. 3. Mortgagor shall obtain Mortgagee's written consent prior to conveying the real property and said conveyance shall be made subject to this mortgage. Housing Authority of the City of Key West, Florida 1400 Kermedy Drive, Key West, FL 33040 Phone: (305) 296-5621 Fax: (305) 296-0932 Board of Commissioners Frank Toppino Bob Dean Juanita Mingo John G. Parks, Jr. Roosevelt Sands, Jr. Executive Director J. Manuel Castillo, Sc October 22,2009 Mr. Mark J. Rosch Executive Director Monroe County Land Authority 1200 Truman Avenue, Suite 207 Key West, FL 33040 Dear Iv1r. Rosch, The Housing Authority of the City of Key West, Florida (KWHA) has concluded procurement for the demolition and rebuilding of 44 units at the Roosevelt C. Sands, Jr. Housing Complex. As you may recall, the improvements were built in 1939, are functionally obsolete and in need of replacement. KWHA has been successful in raising in excess of $2,933,000 in grant funding which will be utilized for construction. In order to complete the project we have received a first mortgage loan commitment from the First State Bank of the Florida Keys in the amount of $2,900,000. We have obtained an appraisal with a date of valuation of June 1, 2009 indicating a value of $5,790,000. Weare now in the process of proceeding to closing and would request the following: 1. The current deed restrictions in place need to be eliminated and restructured so they run in the favor of the Monroe County Land Authority (MCLA) only. 2. The restructured deed restrictions reflect previously approved Workforce Housing deed restriction approvals by the MCLA. 3. The MCLA mortgage and updated deed restrictions be subordinated and waived to the First State Bank first mortgage in the amount of $2,900,000. It is my understanding that counsel for MCLA and First State Bank have discussed the above and the legal method to accomplish it pending approval by the Advisory and govel11ing board. I would ask that the MCLA counsel review our request to ensure it reflects accurately the conversations with the First State Bank counsel. Sincer--E;ly yours, ;l J. Manuel Castillo, Sf. Executive Director Photographs of Subject Property Roosevelt C. Sands, Jr. Housing Complex Prepared by and after recording mail to: Robert C. Reid, Esq. Bryan.t Miller Olive P.A 101 North Monroe Street Suite 900 Tallahassee, Florida 32301 SUBORDINA nON AGREEMENT THIS AGREEMENT made this 5th day of October, 2009, between THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, a land authOlity under Section 380.0663(1), Florida Statutes, hereinafter referred to as "Land Authority," and FIRST STATE BANK OF THE FLORIDA KEYS, hereinafter referred to as "Lender", THE PARTIES STIPULATE AND RECITE THAT: A. On or about May 21, 2001, THE HOUSING AUTHORITY OF THE CITY OF KEY WEST, FLORIDA, hereinafter referred to as "Owner," took title to certain real property pursuant to a Warranty Deed recorded in O.R Book 1697, Page 2024 (the "Warranty Deed"), and granted a mortgage on such property to the Land Authority recorded in O.R. Book 1697, page 2076, of the Public Records of Monroe County, Florida, a copy of which is attached hereto as Exhibit "A" (the "Land Authority Mortgage"). B. Owner has executed, or is about to execute, a mortgage and promissory note in the amount of Two Million Nine Hundred Thousand Dollars ($2,900,000.00) in favor of Lender, and Land Authority acknowledges that such mortgage is in the best interest of Owner. C. Lender is wiIling to accept the said mortgage from Owner provided that Land Authority will subordinate its mortgage referred to in paragraph A above. For the reasons set forth above, and in consideration of the mutual covenants and promises of the parties hereto, Land Authority and Lender agree as follows: The Land Authority Mortgage referred to in paragraph A above, pertaining to the real property described on Exhibit" A,n attached hereto, shaH be subordinate to the claim of Lender under the Mortgage and Security Agreement (the "Lender Mortgage") executed by Owner, dated as of October I, 2009 and recorded in O.R. Book , page , of the Public Records of Monroe County, Florida. Additionally, the Land Authority hereby agrees that in the event of a foreclosure by Lender, or the delivery of a deed in lieu of foreclosure to the Lender, relative to the No. 29 Lender Mortgage (including any modification thereof), the covenants and restrictions set forth in the Warranty Deed are hereby waived and not enforceable against the Lender, its successors and assigns or any person claiming by, through or under the Lender, as a result of any such foreclosure or deed in Heu of foreclosure. Land Authority shaH execute such additional documents as Lender may reasonably require to give effect to this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement at Monroe County, State of Florida, the day and year first above written. THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHOH1TY WITNESSES: Name: By: Kim Wigington, Chairperson Name: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me this 5th day of October, 2009 by Kim Wigington, Chairperson of The Monroe County Comprehensive Plan Land Authority, on behalf of said Authority. Such person is personally known to me or has presented a as identification. (NOTARY SEAL) NOTARY PUBLIC - STATE OF FLORIDA Printed Name: My Commission Expires: 2 FIRST STATE BANK OF THE FLORIDA KEYS WITNESSES: Name: By: Kurt Lewin, Sr. Vice-President Name: STATE OF FLORIDA COUNTY OF MONROE The foregoing instrument was acknowledged before me this 5th day of October, 2009 by Kurt Lewin, Sr. Vice-President of First State Bank of the Florida Keys, on behalf of said entity. Such person is personally known to me or has presented a as identification. (NOTARY SEAL) NOTARY PUBLIC - STATE OF FLORIDA Printed Name: My Commission Expires: 3 Prepared oy, Jobn M. SpOlUlI'ood, Jr. SPOTTSWOOD, SPOTTSWOOD & SPOTTSWOOD 500 F~aming Street Kay West, FL 33040 PorcellI) Nn",be., Grim!"" ifl TIN: Grnnlee #2 TIN: Warranty Deed This Indenture, Made this 21st dayof AD May '2001 '" KEY PLAZA APARTMENTS-II, LTD., a Florida limi. ted partnership Between of Ihe County of Monroe Stale of Florida , grantor, llrld THE HOUSING AUTHORITY OF THE CITY OF KEY WEST, a public corporation and a public body corporate and pOlitic, a corporation existing under the laws of the State of Plorida wb....e .dd""," is: 1400 Kennedy Drive, Key West, FL 33040 of Ihe Counly of Monroe SIOle of Florida , grantee. Witnesseth thol the GRANTOR, for and in consideration oflh. sum of ------------------------TEN DOLLARS ($10}-------------__________ DO~AM. and Nhe. good and valuahle conside.ali,," k> GRANTOR in hand paid hy GRANmE, U,e receipt whereof is hereby aelmowledged, has graltted~ bargained and sold to tile said GRANTEE and GRANTE~S heirs, s.uccesS-Or.s and assigns: forever, lbe fnt!uwing described hmd, situn!~, lying all~ being in the Coun!)' of Monroe State of F ~or ida to wit: ~l of Lots 8 and 12 and a portion of Lot II, Tract 3 described as follows; BEGINNING at the intersection of the Westerly line of Division Street (Truman Avenue) with the Southerly line of Emma Street thence Westerly along the Southerly line of Emma Street a distance of 155.52 feet; thence in a Southerly direction parallel with the Westerly boundary of Division Street (Truman Avenue) for a distance of 113.33 feet to a point; thence in a Westerly direction parallel with the Southerly boundary of Emma Street for a distance of 82.46 feet to a point; thence in a Southerly direction parallel with the Westerly boundary of Division Street {Truman Avenue) for a distance of 89.34 feet to a point; thence in a Westerly direction parallel with the Southerly boundary of Emma street for a distance of 82.46 feet to a point; thence in a Southerly direction parallel with the Westerly boundary of Division Street (Truman Avenue) for a distance of 89.33 feet to a point on the Northerly line of Fort Street. Said point being 41.23 feet Easterly from the Easterly boundary of Olivia Street; thence in an Easterly direction along the Northerly boundary of Fort Street for a distance of 320.44 feet to the Westerly boundary of Division Street (Truman Avenue) thence Northerly along the (Continued on Attached) and the, grantor does heroby fully warr.nt the title to said la"d, .nd wiH defend the ..me ag,;....! lawful claim. of .11 person. whomsoever. In Witness Whereof, tho gruntor b.. he,.unlo ..t its h.nd and se.1 the day aud ear firs. above written. Signed, s cd It ~iivcred ill our presence: KEY N'l'S-II, LTD. By: 'JOHN O'BRIEN, General Partner P.O. Ad ro,": P.O. n.. 129, Key W..t, Vl 33041 (Seal) STATE OF Florida COUNTY OF Monroe The foregoing in.trumenl w.. acknowledged bofore me Ih i. 21 s t day of JOHN O'BRIEN, General Partner, on behalf of KEY LTD., a Florida limited partnership he is personally known to m. Or he ha. produced hi. PIo r ida dr i ver 1 Linda Kay Arnold Gommi..ion # 00 894'21 t:"l';'" hn. 22,2004 ..... Bonds.d Th.ru ... Atlantic Bloiiill1f Co.. Inc. (Corporate Seal) May '2001 PLAZA APARTMENTS-II, by Warranty Deed -Page:2 hn:.l m Numb." Westerly boundary of D~vision Street (Truman Avenue) for a distance of 292 feet to a point of beginning, THIS DEED IS MADE AND IS TO BE ACCEPTED WITH THE UNDERSTANDING THAT USE OF THE PROPERTY CONVEYED IS RESTRICTED BY THE FOLLOWING; THE PROPERTY SHALL BE DEVELOPED WITH AFFORDABLE HOUSING FOR VERY LON, LOW, OR MODERATE INCOME PERSONS AS DEFINED IN SECTION 420.0004, FLORIDA STATUTES, CONSISTENT WITH THE FOLLOWING POLICIES OF THE KEY WEST HOUSING AUTHORITY: 1.. Income targeting shall be BO% of med~an adjusted for f~ly si~e. Inoome targeting may increase to 120% to maintain ocoupancy level and financial feasibility but not to exceed 40% of project units. 2. Rental rates shall be the same as the low income housing tax credit program as adjusted annually. 3. The compliance requirements shall be the same as the LIHTC Program as contained ~n the FHFC Compl~ance Manual and shall be the responsibility of the developer to insure compliance annually. 4. The program requirements for the LIHTC, MRB, SAIL, and HOME programs when competitively obtained require lower income targeting (rents), which take precedence when utilized. 5. The US Departmen,t of Housing and Urban Development occupancy requirements (family composition) shall be adhered to, as they pertain to maximum occupancy only. The above restrictions shall not expire and may only be reieased by the Monroe County Comprehensive Plan Land Authority. These restrictions are for the benefit of the present owner and its successors and assigns and may be enforced by them in every lawful manner. i'ueEL 1: P1\RCEL :U .' " J:.EGAL nllSCRli"T'lO~ All of that par~ of Block 8, Tract 10, bounded by Amelia, virginia, Howe and EI!l.lna. streets, Monroe County, Flori~a; and All of Lots 0 and ~2 ond ~ portion of Lot 11, Tract 3. Monroe County, Florida, described as follows: BEGINNING at the intersection of the westel:'ly line of Division street (Truman Avenue) with the Southerly line of Emma. street thence westerly along the Southe.rly line of E'ml'IIa street a distance of 155.5~ teet; thence in a Southerly direction parallel with the Westerly boundary of Division' street (Tl:\man Avenue) tal; a distance of 11.3.33 feet to a point; thence in a westerly direction parallel with the southerly boundary of Emma street for a distance of 32.46 feet to a point; thence in a southerly direction plllralla1 with the. 'Westerly boundary of 'Di...i$.ion street (Truman Avenue) for III distance of 89.34. feet to a point. thence in a westerly direction parallel with the Southerly boundary of Enulla Street tor a distance of 82.46 feet to a point, thence in a Southerly direction plll:allel with the WesterlY boundary of Division street (Truman Avenue) for a d.istance t;J!' 1i!'!:!.:53 feet to a point on the Northerly line of Fort street. said point being .41.~3 feet Easterly from the Ea.sterly boundary of olivia streett thence in an Easterly direction' alorl9 the Northerly boundary of Fort street for III distance of 320.44 feet to the Westerly boundary of DiviSion street (Truman Avenue) thence Northerly alon9 the Westerly bOundary of Oivision street (Truman Avenue) for a distance of 292 feet to a point of beginning. -4- RESOLUTION NO. 01-2008 A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING MODIFICATION OF THE MORTGAGE LOAN AND DEED RESTRICTIONS ENCUMBERING THE ROOSEVELT SANDS HOUSING COMPLEX IN KEY WEST. WHEREAS, section 380.0666(3), Florida Statutes and section 9.3-2, Monroe County Code, empower the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") to acquire and dispose of interests in real property for the purpose of providing affordable housing; and WHEREAS, in 2001 the Land Authority issued a 30-year, zero interest mortgage loan in the amount of $1,500,000 to the Key West Housing Authority to fund the purchase of the 44-unit affordable housing site known as the Roosevelt Sands Housing Complex (hereinafter "subject property") located at 105 Truman Avenue in Key West; and WHEREAS, the Key West Housing Authority desires to demolish and rebuild the housing on the subject property by obtaining a $5,000,000 mortgage loan from the Florida Housing Finance Corporation's Community Workforce Housing Innovative Pilot (CWHIP) program together with a mortgage loan from an institutional lender of approximately $3,750,000; and WHEREAS, to enhance the project's financial feasibility and make the project's CWHIP application more competitive, the Key West Housing Authority has requested the Land Authority's approval to modify the existing mortgage loan and deed restrictions encumbering the subject property's title; and WHEREAS, the CWHIP application deadline is January 28, 2008 and the Land Authority Advisory Committee will consider this resolution on January 24, 2008; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: Section 1. This resolution shall only take effect if approved by the Land Authority Advisory Committee. Section 2. If the Key West Housing Authority's CWHIP application is approved by the Florida Housing Finance Corporation, the Chairman of the Land Authority Governing Board is hereby authorized to execute the necessary documents to: a) modify the restrictions on the warranty deed recorded in Official Records Book 1697 at Page 2074 to implement the revisions shown in Attachment A; and b) subordinate the Land Authority's $1,500,000 mortgage loan recorded in Official Records Book 1697 at Page 2076 to an institutional first mortgage in an amount not to exceed $3,750,000; and c) extend the term of said Land Authority mortgage loan from the existing 30-year term that commenced in 2001 to a term of 50 years commencing from the date of the CWHIP note and mortgage; and Page 1 of 2 d) modify the restrictions on said Land Authority mortgage loan to implement the revisions shown in Attachment B. PASSED AND ADOPTED by the Monroe County Comprehensive Plan Land Authority at a reg~lar meeting on this 16th day of January 2008. . ." ",/.! >'~ j~' } (\;':1)(2;., '. ($l:sal ----) ", ;;~,'ti \~ "I ;!'1:t}),' ~ ~ : (~:,4<1",' '\ ,/." '. \~ ',' . ^."T'Tr '5T ,. ~.. 1 '1',~,-;J:o ,cu.) . ,I ;, - . '...' " . ,,', J I;. , '" \':'i'-'C} ;, f II '<\ ,'~~,"...'.~'~~ "-'~J, .I ..' , \:",;~~~~..:J ._~,., ~~~JI ~, ~<;'~:'.. ...~'/,~ ~ "'..: ." ..." ~ . , "...."'. . Mark J. Rosch Executive Director MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY Charles' on Chairman AZ:~ Larry R. Erskine Page 2 of 2 ATTACHMENT A Revisions to Restrictions Attached to the Warranty Deed Recorded in Official Records Book 1697 at Page 2074 Roosevelt Sands Housing Complex THIS DEED IS MADE AND IS TO BE ACCEPTED WITH THE UNDERSTANDING THAT USE OF THE PROPERTY CONVEYED IS RESTRICTED BY THE FOllOWING: THE PROPERTY SHAll BE DEVELOPED WITH AFFORDABLE HOUSING FOR VERY lOW, lOW, OR MODER~.TE INCOME PERSONS AS DEFINED IN SECTION '120.000'1 IN ACCORDANCE WITH SECTION 380.0666(3), FLORIDA STATUTES, CONSISTENT WITH THE FOllOWING POLICIES OF THE KEY WEST HOUSING AUTHORITY: 1. Income targeting shall be 80% of median adjusted for family size. Income targeting may increase to 120% to maintain occupancy level and financial feasibility but not to exceed 40% of project units. Income taraetina for workforce housina units may increase to 150% of median but may not exceed 20% of the proiect units. 2. Rental rates shall be calculated usina the same methodoloay as the low income housing tax credit program as adjusted annually. 3. The compliance requirements shall be the same of the low Income Housing Tax Credit (L1HTC) Program as contained in the Florida Housing Finance Corporation (FHFC) Compliance Manual and shall be the responsibility of the developer to insure compliance annually. 4. The program requirements for the L1HTC, Mortgage Revenue Bond (MRB), State Apartment Incentive loan (SAil), and HOME programs when competitively obtained require lower income targeting (rents), which take precedence when utilized. 5. The US Department of Housing and Urban Development occupancy requirements (family composition) shall be adhered to, as they pertain to maximum occupancy only. The above restrictions shall not expire and may only be released by the Monroe County Comprehensive Plan land Authority. These restrictions are for the benefit of the present owner and its successors and assigns and may be enforced by them in every lawful manner. ATTACHMENT B Revisions to Restrictions Attached to the Mortgage Deed Recorded in Official Records Book 1697 at Page 2076 Roosevelt Sands Housing Complex In reference to the Mortgage Deed dated the 21 st day of May, 2001, between the HOUSING AUTHORITY OF THE CITY OF KEY WEST, FLORIDA, A PUBLIC BODY CORPORATE AND POLITIC, Mortgagor, and MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY, A LAND AUTHORITY UNDER SECTION 380.0663(1), FLORIDA STATUTES AND MONROE COUNTY ORDINANCE NO. 031-1986, the Mortgagee, the parties further covenant and agree as follows: 1. Mortgagor's use of the property shall be limited to the provision of affordable housing to very low income, low income, or moder:ite income persons, :is defined in S.420.0004 in accordance with section 380.0666(3), Florida Statutes. 2. Mortgagor is responsible for developing and managing the property as affordable housing and ensuring compliance with the affordability requirement of 1 above. 3. Mortgagor shall obtain Mortgagee's written consent prior to conveying the real property and said conveyance shall be made subject to this mortgage. RESOLUTION NO. 02-2009 A RESOLUTION OF THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY AUTHORIZING SUBORDINATION OF THE MORTGAGE LOAN ENCUMBERING THE ROOSEVELT SANDS, JR. HOUSING COMPLEX IN KEY WEST TO A CWHIP MORTGAGE LOAN. WHEREAS, section 380.0666(3), Florida Statutes and section 9.3-2, Monroe County Code, empower the Monroe County Comprehensive Plan Land Authority (hereinafter "Land Authority") to acquire and dispose of interests in real property for the purpose of providing affordable housing; and WHEREAS, in 2001 the Land Authority issued a 30-year, zero interest mortgage loan in the amount of $1,500,000 to the Key West Housing Authority to fund the purchase of the 44-unit affordable housing site known as the Roosevelt Sands, Jr. Housing Complex (hereinafter "subject property") located at 105 Truman Avenue in Key West; and WHEREAS, the Key West Housing Authority desires to demolish and rebuild the housing on the subject property by obtaining a $5,000,000 mortgage loan from the Florida Housing Finance Corporation's Community Workforce Housing Innovative Pilot (CWHIP) program together with a mortgage loan from an institutional lender of approximately $3,750,000; and WHEREAS, to enhance the project's financial feasibility and make the project's CWHIP application more competitive, the Land Authority adopted Resolution 01-2008, which authorized modifying the subject property's deed restrictions, subordinating the Land Authority's mortgage loan to an institutional first mortgage in an amount not to exceed $3,750,000, and extending the term of the Land Authority's mortgage loan from 30 years to 50 years; and WHEREAS, due to state budget reductions the project's CWHIP application is one of only three selected for funding and is undergoing an accelerated underwriting review; and WHEREAS, due to the recent decline in the real estate market the subject property may appraise at a value below the proposed financing package of the institutional first mortgage, the Land Authority's second mortgage, and the CWHIP mortgage, in which case the project would fail to receive the underwriting approval necessary to proceed; and WHEREAS, the Key West Housing Authority requests that the Land Authority authorize the subordination of the Land Authority mortgage to the CWHIP mortgage if necessary to satisfy the CWHIP underwriting requirements; and WHEREAS, the Land Authority Advisory Committee considered this resolution at a meeting held on April 28, 2009 and voted 4/0 to recommend approval; NOW, THEREFORE, BE IT RESOLVED BY THE MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY: If necessary to satisfy the CWHIP underwriting requirements, the Chairman of the Land Authority Governing Board is hereby authorized to execute the necessary documents to subordinate the Land Authority's $1,500,000 mortgage loan recorded in Official Records Book 1697 at Page 2076 to both an institutional first mortgage in an amount not to exceed Page 1 of 2 $3,750,000 as previously authorized by Resolution 01-2008 and a CWHIP second mortgage in an amount not to exceed $5,000,000. PASSED AND ADOPTED by the Monroe County Comprehensive r~g~!ar meeting on this 20th day of May, 2009. t:, )~ j ~I;" ~~wc'~':'. ~l~[j' .~ ~~;~ . '(S~i~ '\'J~. ", \. '~ /\ "'.'. , , '(,~'f^\ \ ,1 l "s' " q l , ',', , ',"',.l... I .. , Si" .. ,,~~h;lJ!) , j" -' A...." , ' Plan Land Authority at a MONROE COUNTY COMPREHENSIVE PLAN LAND AUTHORITY .. ^^1' ~ f'--, Mark J. Rosch Executive Director ~\.u~k Kim Wigington Chairman Approved for Legal S~ff' ncy ,~ //"~ L-/" ~.., // ,." Larry R. Erskine Page 2 of 2