03/17/2021 Agreement r749 Kevin Madok, CPA
I
Clerk of the Circuit Court& Comptroller—Monroe County, Florida
DATE: Mardi 19, 2021
TO: Sheryl Graham, Director
Social Services
ATTN: Lourdes Francis, Administrator
FROM: Pamela G. I Ianco ilk.C.
SUBJECT: March 17"' BOCC Meeting
Attached is an electronic copy of the following item:
C27 land Ilse Restriction Agreements (LURAs) for die State Housing Initiatives
Partnership Program for the purpose of guaranteeing a 15 year affordability period for die
properties referenced in each LIIRA: Poinciana Royale located at 1341 McCarthy lime, Key
West, Florida; Harvey House located at 121.5 Catherine Street, Key West, Florida; Secbol Place
—tocaied ar711 Catherine Street, Key West, Florida; and McCarthy Rogers located at 1213 William
Street, Key West, Florida.
Three duplicate originals on the way to you through ecurict'. Should you have any
questions please feel free to contact me at (305) 292-3550.
cc: County Attorney
Finance
File
KEY WEST MARATHON PLANTATION KEY PK/ROTH BUILDING
500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road
Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Florida 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145 305-852-7145
ORIGINAL
MONROE COUNTY STATE HOUSING INITIATIVES
PARTNERHIP PROGRAM (SHIP).
LAND USE RESTRICTION AGREEMENT (LURA)
POINCIANA ROYALE
This LAND USE RESTRICTION AGREEMENT (LURA) (hereinafter called the
"Agreement") is made and entered into as of this I1 day of {tnFRPh , 202*between A.H.
OF MONROE COUNTY, INC. (hereinafter called the "Owner") and MONROE COUNTY. a
political subdivision of the State of Florida (hereinafter called the"County").
WITNESETH
WHEREAS,the County approved funding for A.H. of Monroe County, Inc.through the County's
State Housing Initiatives Partnership Program (SHIP) for the purpose of rehabilitating
POINCIANA ROYALE, a facility located in Monroe County, Florida at 1341 McCarthy Lane.
in the City of Key West, Florida, and the legal description as follows:
A tract of land lying on the Island of Key West, Monroe County, Florida and lying North
of"KEY WEST FOUNDATION COMPANY'S Plat No. 2", as recorded in Plat Book 1, at
Page 189, of the Public Records of Monroe County, Florida and being more particularly
- --described as follows:
Begin at the intersection of the Northerly Right-ofWay line of Duck Avenue and the
extension and the Easterly Right-of-Way line of 16'h Street, said point also being the
Southwest corner of lot 12, Block 19, of the "KEY WEST FOUNDATION COMPANY'S
Plat No. 2; thence N 70 degrees 56'00"E along the said Northerly Right-of-Way Line of
Duck Avenue for 69.43 feet; thence N 19 degrees 04'29" W for 153.98 feel; thence N 70
degrees 56'00" Efor 0.57 feel; thence N 19 degrees 04'29" W for 61.03 feet; thence N
25 degrees 59'29" E for 190.72 feet; thence N 19 degrees 06'07" W for 25.00 feet;
thence S 70 degrees 53'53" Wfor 135.00 feet; thence N 19 degrees 04'29" W for 105.67
feet; thence S 70 degrees 56'00" Wfor 6.31 feet; thence N 19 degrees 04'29"Wfor
104.33 feet; thence S 70 degrees W for 63.69 feet; thence S 19 degrees 04'29"Efor
584.60 feet back to the Point of Beginning.
WHEREAS, the County has agreed under certain conditions to issue a deferred forgivable loan
using SHIP funds to provide financing for preservation of affordable rental housing for very low
and low-income persons located at 1341 McCarthy Lane, Key West, Florida, 33040, in Monroe
County, Florida,to be occupied by eligible persons as described Article 1.1 of the Agreement.
WHEREAS, in addition to any other requirements the County may impose incident to its
mortgage,the Owner has agreed that all housing units shall be leased, rented or made available on
a continuous basis for rental to very low and low-income persons as described in Article 1.2 of the
Agreement.
WHEREAS, this Land Use Restriction is intended to ensure that the property be used in
accordance with the SHIP program.
NOW, THEREFORE, in consideration of the mutual covenants set forth herein and other good
and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
County and the Owner do hereby contract and agree as follows:
AGREEMENT
ARTICLE I. RENTAL HOUSING RESTRICTIONS
1.1 Occupancy
One hundred percent(100%) of the housing units must be set-aside for occupants who
upon initial occupancy of both units must have annual gross incomes equal to or below
eighty percent(80%) for the Monroe County, Metropolitan Statistical Area(MSA),as
determined by the US Department of Housing and Urban Development(HUD) on an
annual basis.
1.2 Income/Eligibility
The SPONSOR shall determine and verify the income eligibility of tenants in accordance
with HUD Section 8 housing assistance programs in 24 CFR Part 5 for the Project.
Income shall be calculated by annualizing verified sources of income for the household
as the amount of income to be received by a household, during the 12 months, following
the effective date of the determination. The Annual Gross Income, as defined in Section
420.9071(4), F.S., must be used and the SHIP Program income limits cannot be
exceeded. The Owner shall maintain complete and accurate income records pertaining to
each tenant occupying a SHIP assisted unit. Onsite inspection as will be conducted
annually upon reasonable prior written notice to verify compliance with tenant income,
rents, and the minimum property standards as stated in Section 420.907-420.9079,
Florida Statutes and Rule 67-37, Florida Administrative Code, as they may be amended
from time to time.
1.3 SHIP Affordability
All housing units are subject to affordability limits established for SHIP assisted rental
units on an annual basis.
1.4 Long-term Affordability
The SHIP funds are subject to recapture during the affordability period if the property is
sold, transferred,etc. If the property is offered for sale prior to the end of the
affordability period, the Property shall be subject to the right of first refusal for purchase
at the current market value minus the grant award by eligible nonprofit organizations that
would provide continued occupancy by 80%and below AMI tenants. The County shall
have ninety(90) days from the date of notification of intent to sell by the Owner to
identify an eligible non-profit.
1.5 Housing Standards
Rental Units assisted with SHIP funds shall be maintained in compliance with local
building code requirements for the duration of the affordability period. The Owner shall
cooperate with the County by allowing on-site inspection of SHIP assisted units for
compliance with local code requirements.
ARTICLE 11. CONSIDERATION
The County has authorized and issued a deferred forgivable loan to the Owner as an
inducement to the Owner to operate the units in the Project for the benefit of low-income
households whose incomes are equal to or less than eighty(80%)percent of median
annual gross income for the One hundred percent(100%) of the housing units must be
set-aside for occupants who upon initial occupancy of both units must have annual gross
incomes equal to or below eighty percent(80%) for the Monroe County, Metropolitan
Statistical Area(MSA), as determined by the US Department of Housing and Urban
Development (HUD) on an annual basis, for a period of fifteen (15) years following
completion of the Project. In consideration of the issuance of the loan by the County for
the foregoing purposes,the County and Owner have entered into this Agreement.
ARTICLE III. RELIANCE
In performing its duties hereunder, the County may rely upon statements and certifications of the
Owner, believed to be genuine and to have been executed by the proper person or persons, and
upon audits of the books and records of the Owner pertaining to occupancy of the Project. In
addition, the Florida Housing Finance Corporation may consult with counsel, and the opinion of
such counsel shall be full and complete authorization and protection with respect to any action
taken or suffered by the County in good faith and in conformity with the opinion of such counsel.
The Owner may rely upon certification of low-income households reasonably believed to be
genuine-and to have been executed by the proper person or persons.
ARTICLE IV. TERM
This Agreement shall become effective upon its execution and shall remain in full force and effect
for a period of fifteen(15)years from the date of the completion of the rehabilitation of the Project
as confirmed by final inspection by the building department and/or issuance of a final certification
of occupancy.
ARTICLE V. INSURANCE
The Owner shall insure the property for the full replacement cost for the duration of the Land Use
Restriction Agreement. Any such policy must be issued by a company acceptable to the County,
include the County as an additional insured and provide for at least thirty (30)days notice prior to
cancellation.
ARTICLE VI. DAMAGE,DESTRUCTION OF THE PROJECT
Subject to the superior rights of the holder of any first mortgage, in the event that the Project is
damaged or destroyed, the Owner shall deposit with the County any insurance proceeds and shall
promptly commence to rebuild,replace,repair or restore the Project in such manner as is consistent
with the Loan Documents. The County shall make any such insurance proceeds available to
provide funds for such restoration work. In the event the Owner fails to commence or to complete
the rebuilding. repair, replacement or restoration of the Project after notice from the County, the
County shall have the right, in addition to any other remedies granted in the Loan Documents or
at law or in equity, to repair, restore, rebuild or replace the Project so as to prevent the occurrence
of a default hereunder.
ARTICLE VII. SALE, TRANSFER OR REFINANCING OF THE PROJECT OR
DISSOLUTION OF CORPORATION
The loan for the Project hereunder as to both principal and interest shall be assumable upon project
sale, transfer or refinancing or dissolution of the Owner's Corporation if the proposed Owner of
the Project is an eligible nonprofit organization (approved by the County) and agrees to maintain
all set asides and other requirements of the SHIP Loan Documents for the period originally
specified.
In the event the above-stated conditions are not met, the loan for the Project hereunder as to both
principal and interest shall be due in full upon the sale,transferor refinancing of the Project.
Notwithstanding, payment of principal and interest in full, these restrictions shall remain in full
force and effect for the term of this Agreement.
ARTICLE VIII. ENFORCEMENT/DEFAULT
The benefits of this Agreement shall inure to, and may be enforced by the COUNTY for the
duration of the Agreement, whether or not the COUNTY shall continue to be the holder of the
Mortgage,whether or not the Project loan may be paid in full,and whether or not any bonds issued
for the purpose of providing funds for the project are outstanding. The SPONSOR warrants that
it has not, and will not, execute any other agreement with provisions contradictory to, or in
opposition to,the provisions hereof,and that, in any event,the requirements of this Agreement are
paramount and controlling as to the rights and obligations herein set forth and supersede any other
- requirements in conflict herewith. However, this shall not preclude the COUNTY from
subordinating its loan to construction financing.
If the Owner defaults in the performance of its obligations under this Agreement or breaches any
covenant, agreement or warranty of the Owner set forth in this Agreement, and if such default
remains uncured for a period of thirty(30)days after notice thereof shall have been given by the
County to the Owner(or for an extended period approved by the County if such default stated in
such notice can be corrected, but not within such thirty (30) day period, and if the Owner
commences such correction within such thirty (30) day period, and thereafter diligently pursues
the same to completion within such extended period),then the County may take any lawful action,
whether for specific performance of any covenant in this Agreement or such other remedy as may
be deemed most effective by the County to enforce the obligations of the Owner with respect to
the Project. If a default by the Owner under this Agreement is not timely cured, the County may
institute foreclosure proceedings against the Project, but only as provided in the Mortgage.
Notwithstanding any of the foregoing,the County will have the right to seek specific performance
of any of the covenants and requirements of this Agreement concerning the rehabilitation and
operation of the Project.
ARTICLE IX. RECORDING AND FILING
Upon execution and delivery by the parties hereto,the County shall cause this Agreement and all
amendments and supplements hereto to be recorded and filed in the official public records of
Monroe County.
ARTICLE X. COVENANTS TO RUN WITH THE LAND
This Agreement and the covenants contained herein shall run with the land and shall bind, and the
benefits shall inure to, respectively,the Owner and the County and their respective successors and
assigns during the Term of this Agreement.
ARTICLE XI. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of
Florida, with respect to both substantive rights and with respect to procedures and remedies.
ARTICLE XII. ATTORNEY'S FEES AND COSTS
In the event of any legal action to enforce the terms of this Agreement, each party shall bear its
own attorney's fees and costs.
ARTICLE XIII. NOTICE AND EFFECT
Any notice required to be given hereunder shall be given by personal delivery, by registered mail
or by registered expedited service at the addresses specified below or at such other addresses as
may be specified in writing by the parties hereto, and any such notice shall be deemed received on
the date of delivery if by personal delivery or expedited delivery service, or upon actual receipS if
sent by registered mail.
FOR THE COUNTY FOR THE OWNER r�
Robert Shillinger, Esq. Scott Pridgen, Executive Director u
County Attorney A.H. of Monroe County, Inc. _
1111 1291 Street, Suite 408 1434 Kennedy Drive —
Key West, FL 33040 Key West, FL 33040 ..
(305)292-3470 (305) 293-4800
ATTEST:
KEVIN MADOK, CPA, CLERK BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA/
ion
� `0104 (*� � Date
ONROE COUNTY,INC. NROE COUNTY ATTORNEY
POINCIANA ROYALE A�jPpOVE FORM
•
By: F, � i A(3cSI,Vt,` NTY ATTORNEY
Scott Pridgen, Exec Live Director Date 3/20/20
Date: ilt°