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Item C27 C.27' i�` CountCounty ��Monroe. ,y, ? "tr, BOARD OF COUNTY COMMISSIONERS y M T� \�1a� Mayor Michelle Coldiron,District 2 �1 1 nff `_ll Mayor Pro Tem David Rice,District 4 -Ile Florida.Keys Craig Cates,District 1 Eddie Martinez,District 3 w Mike Forster,District 5 County Commission Meeting March 17, 2021 Agenda Item Number: C.27 Agenda Item Summary #7990 BULK ITEM: Yes DEPARTMENT: County Administrator TIME APPROXIMATE: STAFF CONTACT: Sheryl Graham (305) 292-4510 N/A AGENDA ITEM WORDING: Approval of Land Use Restriction Agreements (LURAs) for the State Housing Initiatives Partnership (SHIP) Program for the purpose of guaranteeing a 15 year affordability period for the properties referenced in each LURA: Poinciana Royale located at 1341 McCarthy Ln, KW; Harvey House located at 1215 located at 1215 Catherine St, KW, FL; Seebol Place located at 711 Catherine St, KW, FL; McCarthy Rogers located at 1213 William St, KW, FL. ITEM BACKGROUND: As a condition of receipt of the State Housing Initiatives Partnership (SHIP) Program award, the eligible recipient of rental rehabilitation assistance must contractually commit to comply with the affordable housing criteria provided under FS.420.907-420.9079 applicable to the affordable housing objectives of the award. The plan criteria adopted by the County must prescribe the contractual obligations required to ensure compliance with award conditions. PREVIOUS RELEVANT BOCC ACTION: State Housing Initiatives Partnership (SHIP) Program Local Housing Assistance Plan (LHAP) was approved on 4/15/2020 by the BOCC. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATION: Approval DOCUMENTATION: McCarthyRogers LURA Poinciana LURA Harvey House LURA Seebol Place LURA LURA Backup FINANCIAL IMPACT: Packet Pg.966 C.27 Effective Date: 03/17/2021 Expiration Date: 03/17/2036 Total Dollar Value of Contract: 0 Total Cost to County: 0 Current Year Portion: 0 Budgeted: 0 Source of Funds: N/A CPI: 0 Indirect Costs: 0 Estimated Ongoing Costs Not Included in above dollar amounts: 0 Revenue Producing: 0 If yes, amount: N/A Grant: N/A County Match: 0 Insurance Required: No Additional Details: No REVIEWED BY: Roman Gastesi Skipped 03/03/2021 11:27 AM Pedro Mercado Completed 03/03/2021 11:30 AM Purchasing Completed 03/03/2021 11:31 AM Budget and Finance Completed 03/03/2021 12:15 PM Maria Slavik Completed 03/03/2021 12:47 PM Liz Yongue Completed 03/03/2021 1:17 PM Board of County Commissioners Pending 03/17/2021 9:00 AM Packet Pg.967 C.27.a 0i IGIN MONROE COUNTY STATE HOUSING INITIATIVES PARTNERHIP PROGRAM (SHIP) LAND USE RESTRICTION AGREEMENT (LURA) McCARTHY ROGERS This LAND USE RESTRICTION AGREEMENT (LURA) (hereinafter called the "Agreement") is made and entered into as of this day of , 2020 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") N WITNESETH WHEREAS, the County approved fr►nding for A.1-1. of Monroe County, Inc. through the County � State Housing Initiatives Partnership Program (SHIP) for the purpose of rehabilitating McCARTHY ROGERS, a facility located in Monroe County, Florida at 1213 William Street, in the City of Key West, Florida, and the legal description as follows: .2 On the Islancl gf'Ifej, West, and known cis l arl vf'Lot 11, in Square 1, of](iact 12, according to the Key) I'Vest Investment Can►panv's Amended Diagram of Purl url of Tract 12, y r•ecordecl in Plat Book 1, Page 49, Monroe Couny, Florida recoi-(Is. (7onamen ing at a � faint on William Street a distant cif 182feet fi-onj the corner cif 1/Ifilliani anct United � Streets and running thence along d 'iltiam Street in a \arthlvester•lti,dir-ection 30 feet; W thence at right angles in a Alortheaster-ly,direction 118 fret; then at right angles in a Soulheasierly,direction 30yfeet: thence at right angles in a Southr,vesterly direction 118 .feet to the point crfheginning. � 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 1213 William Street, Key West, Florida, 33040, in Monroe County, Florida, to be occupied by eligible persons as described Article 1.1 of tile 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 oil 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: Packet;Pg. 968 C.27.a AGREEMENT ARTICLE 1. RENTAL HOUSING RESTRICTIONS 1.1 Occupancy One hundred percent (100%) of the hoa►sing; units ►nust 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) o►7 an annual basis. 1.2 Income/Eligibility N The SPONSOR shall deter►nine and verify the income eligibility of tenants in accordance with HUD Section 8 housing assistance progra►ns in 24 CFR Part 5 for the Project. E Income shall be calculated by annualizing verified sources of income fo►-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 A►nual Cross Income, as def►ned 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, y 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 ►nay be amended � from time to time. W 1.3 SHIM Affordability All housing units are subject to affordability limits established for SHIP assisted rental units on a►l annual basis. m 0 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 1I. 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 Packet,Pg. 969 C27.a 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 N 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 E 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 y This Agreement shall become effective upon its execution and shall remain in full force and effect for a period of fifteen (1 5)years from the date of the completion of the rehabilitation of the Project y as confirmed by final inspection by the building department and/or issuance of a final certification of occupancy. ARTICLE V. INSURANCE W The Owner shal l insure the property for the full replacement cost for the duration of the Land Use Restriction Agreement. An such olio must be issued b a company acce table to the Count y policy y p y= v, include the County as an additional insured and provide for at least thirty (30)days notice prior to cancellation. 0 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 laws or in equity, to repair, restore, rebuild or replace the Project so as to prevent the occurrence of a default hereunder. ARTICLE VIL 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 Packet;Pg. 970 C.27.a all set asides and other requirements of the SNIP 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, transfer°or 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. ENFORCEMENTIDEFAULT .� 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 N 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 E 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 «nder this Agreement or breaches any covenant, agreement or warranty of the Owner set forth in this Agreement, and if such default y 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 W 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 tile 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 Collier 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 XL GOVERNING LAW Packet;Pg. 97'1 C.27.a 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 XIL 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 receipt if N sent by registered mail. FOR THE COUNTY FOR THE OWNER Robert Shillinger, Esq. Scott Pridgen, Executive Director County Attorney A.H. of Monroe County, Inc. 1 111 12`fi Street, Suite 408 1434 Kennedy Drive Key West, FL 33040 Key West, FL 33040 (305) 292-3470 (305) 293-4840 � ATTEST: KEVIN MADOK, CPA, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA W By: � 0 Date Date -® (SEAL) IONPOE COUNTY ATTOANEY ,nOVE�Ar FOP� PED 0 J. A.H. OF MONROE COUNTY, INC. ASSIST W"`AITMRNEY McCarthy Rogers mate 3/20/20 By: �� „ Scott Pridgen, Execut' e Director Packet iPg. 972 C.27.b ORIGINAL MONROE COUNTY STATE HOUSING INITIATIVES PARTNERHIP PROGRAM (SHIP1 LAND USE RESTRICTION AGREEMENT (LURA) POINCIANA ROYALE This LAND USE RESTRICTION AGREEMENT (LURA) (hereinafter called the "Agreerent") is made and entered into as of this day of 2020 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 W N WHEREAS, the County approved funding for A.H. of Monroe County, Inc. through the County's m 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 C ounly, Florida anti lying North of"KE)' TYE ST FOUNDATION Ct"MPANY'S Plat No. 2", as recorded in Pleat Barak 1, at � Page 189, of the Public Records of i'lIonroe Cougy, Florida and being snore particularly, � described cos fillcasys°: Begin at the intersection of the Isrortherlt>Right-of-L qj7 line o'Duck Avenue sand the extension and the Easterly Right-of=Wray line gf'16`r'Street, said point also being the '✓ Southwest corner o f lot 12, .Block 19, of the "KFY TYEST FOUNDS 77ON COMPANY'S Plat No. 2; thence N 70 degrees 56'00" E along the said Northerly Fight-of-Way Line of Duck Aventae fir 69,43 feet, thence N 19 degrees 04'29" FV for 153.98fect; thence N 70 degrees 56'00"E for 0.57 feet; thence N 19 degrees 04'29" W for 61.03 feet; thence N 25 degrees 59'29"E for 190,72 ftet; thence N 19 degrees 06'07" W for 25.00 feet; thence S 70 degrees 5353" W for 135.00 feet; thence N 19 degrees 04'29" W for 105.67 0. .. f€,et; thence S 70 degrees 56'00" W for 6.31 feet; thence N 19 degrees 04'29"IVfor^ 104,33 feet; thence S 70 degrees W Jhr 63.69 feet; thence S 19 degrees 04'29"E for 584.60,feet Back to the Poirot 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, Packet;Pg. 973 C.27.b NOW, THEREFORE, in consideration of the mutual covenants set forth herein and ether 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. DENTAL 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. E 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 v, as the amount of income to be received by a household, during the 12 months, following the effective date of the determination. The Annual Cross Income, as defined in Section 420.9071(4), F.S., must be used and the SHIP Program incorne limits cannot be exceeded. The Owner shall maintain complete and accurate income records pertaining to each tenant occupying a SHIP assisted unit. Dnsite inspection as will be conducted W annually upon reasonable prior written notice to verify compliance with tenant income, rents, and the minimum property standards as stated ill Section 42.0.907-420.9079, Florida Statutes and Rule 67-37, Florida Administrative Code, as they may be amended from time to time. 1.3 SHIP Affordability CL All housing units are subject to affordability limits established for SHIP assisted rental units on an annual basis 1.4 Fong-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 Packet iPg. 974 cooperate with the County by allowing on-site inspection of SHIP assisted units for compliance with local code requirements. ARTICLE IL 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 (I IUD) on an annual basis, for a period of fifteen (1 5) years following completion of tlle 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. W N 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 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.. Packet;Pg. 975 ARTICLE VIL 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 assurnable 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 rnet, the loan for the Project hereunder as to both principal and interest shall be due in full upon the sale, transfer or refinancing of the Project. Notwithstanding, payment of principal and interest in full, these restrictions shall remain in full force and effect for the terra of this Agreement. W N 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 agrecrrrent with provisions contradictory to, or in opposition to, the provisions hereof, and that, in any event, the requirements of this Agreement are pararnount 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. J 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 rernains 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, CL whether for specific performance of any covenant in this Agreement or such other remedy as may be deerned 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 tiled in the official public records of Collier County. Packet;Pg. 976 a x C.27.b 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 XL GOVERNING LAW This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, with respect to bath 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 deerned received on the date of delivery if by personal delivery or expedited delivery service, or upon actual receipt if sent by registered mail. , FOR THE COUNTY FOR THE OWNER Robert Shillinger, Esq. Scott Pridgen, Executive Director County Attorney A.H. of Monroe County, Inc. 1 11 1 12"' Street, Suite 408 1434 Kennedy Drive Key 'Vest, 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 By: (SEAL) Date A.H. OF MONROE COUNTY, INC. �2, R.QECOUNTY ATTOn l POINCIANA ROYALE ROVE FOPAA PED o�!._ By: ASSlI I•!TY RITOFUdY Scott Pridgen, Exec tive Director Date 3/20/20 Date: i Packet iPg. 977 w Q C.27.c MONROE COUNTY STATE HOUSING INITIATIVES PARTNERHIP PROGRAM (SHIP) LAND USE RESTRICTION AGREEMENT (LURA) HARVEY HOUSE This LAND USE RESTRICTION AGREEMENT (LURA) (hereinafter called the "Agreement") is made and entered into as of this__dav of , 2420 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 tlye County's State Housing Initiatives Partnership Program (SHIN') for the put-pose of rehabilitating HARVEY 2 CD HOUSE, a facility located in Monroe County, Florida at 1215 Catherine Street, in the City of Key West, Florida, and the legal description as follows: On the island of Key best and known cis Part of Tract Fourteen (14), according to William A. t' hitehead's Map gfsaad island delineated in February 189, by now better known and described as the Northeasterly (one-Half(112).front and rear, of Lot Eight all of Lot Ten (10), and all Lots Thirteen (13) and Fourteen (14), according to corrected 'a subdivision of Part of'Alliddle One-Third (113), Tract Fourteen (14), flat of ivhich appears on record in Plat Book One (1). Page F! ty-Nine (59), in the office o the Clerk W of the Circuit Court of'Monroe County; Florida„ said lots being described 4 metes and bounds as f61lcrws.- � c� Beginning=at the, ff'esterly corner of the intersection cif Cartherine and Georgia Streets 0 and running thence along the.Southvvesterly side ref Georgia Street, in a Northwesterly direction Eighty-One (81).feet, Six- (6) inches; thence at right angles in a Southivesterly direction One Hundred Fifty Six (156)feet, Six (6) inches; thence at right angles in a Southeaster4y direction Eight-One (81)fi�et, Six (6) inches out to Catherine Street, thence at right angles along the Northwesterly side cif Catherine Street One Hundred Ffy Six � (156) Feet, .Sax (6) inches to the point or place 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 121 S Catherine Street, Key West, Florida, 33440, in Monroe County, Florida, to be occupied by eligible persons as described Article 1.1 of the Agreement. WHEREAS, in addition to any other requirernents 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. Packet;Pg. 978 s C.27.c WHEREAS, this Land Use Restriction is intended to ensure that the property be used ill. 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 N 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 y 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. y 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 Cross Income, as defined in Section W 420.9071(4), F.S., must be used and the SHIP Program incorne limits cannot be exceeded. The Owner shall maintain complete and accurate incorne 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 minirnum 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. Packet;Pg. 979 1.5 Housing Standards Rental Units assisted with SHIP funds shall be maintained in compliance with local building code requirernents 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 IL CONSIDERATION The County has authorized and issued a deferred forgivable loan to the Owner as an inducernent 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 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 W consideration of the issuance of tine 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 tine 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. Packet;Pg. 980 E C.27.c 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 SIJIP 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, transfer or 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 Titre 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, Tile 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 y 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 frorn subordinating its loan to construction financing. e( 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 deerned 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 requirernents 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 arnendments and supplements hereto to be recorded and fled in the official public records of Collier County, Packet;Pg. 981 C27.c 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. W N 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 2 may be specified in writing by the parties hereto, and any such notice steal I be deemed received on the date of delivery if by personal delivery or expedited delivery service, or upon actual receipt if sent by registered mail. FOR THE COUNTY FOR THE OWNER Robert Shillinger, Esq. Scott Pridgen, Executive Director County Attorney AM. of Monroe C01.111ty, Inc. 11 11 12t" Street, Suite 408 1434 Kennedy Drive Key West, FI_. 33040 Key West, FL 33040 W (305) 292-3470 (305) 293-4800 ATTEST: KEVIN MADOK, CPA, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By: (SEAL) Date A.H. OF MONROE COUNTY, INC. ARVEY HOUSE N IE COUNTY nNE4' A R0YE FORM By: PED . cote Pridgen, Execut` e Director A SSISTA - UNTY ATTORNEY Dat 3/20/20 Date: Packet;Pg. 982 7111 C.27.d MONROE COUNTY STATE ROUSING INITIATIVES PARTNERHIP PROGRAM (SHIP) LAND USE RESTRICTION AGREEMENT (LURAI SEEBOL PLACE This LAND USE RESTRICTION AGREEMENT (LURA) (hereinafter called the Agreement") is ►nade and entered into as of this day of 2020 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 "Cor►►sty'°). WITNESETH N WHEREAS, the County approved funding for A.H. of Monroe County, Inc. through the County's E State Housing Initiatives Partnership Program (SHIP) for the purpose of rehabilitating Seebol CD Place, a facility located in Monroe County, Florida at 711 Catherine Street, in the City. of Key 'Nest, and the legal description as follows: Can the Lsland of'Key West and is part cif Traci 12, according to Win. A. 1rI''hrtehcrtrd s Vlop of`said Inland delineated in February A. D. 1829, and is more particularly described cis ,/6llotit,s.- C`0i111MEJVCLNTG at a paint on the Southeasterly side r�fArnelia Street, ttll2iclr y point is distant 213feet, 4-112 inches Northeasterlyfroin the corner ofArrrelia Street and tin alley, .said corner being across Amelia Streetfr�om the Souther1j) corner of the Convent property; thence run olong the Southeasterl 1 side o fAmelia Street in a Northeasterly direction a distance of 71,feet 1-112 inches; thence rain at right angles in a Southeasterly direction 163_feet to Catherine Street, thence rain of right an les along Catherine Street � in a Svuthwesterly1 direction 71,feet, 12-112 inches, thence rain at right angles in a � YN'orthtt,esterly direction 163,feet to the Point of Beginning on Amelia Street. CL 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 .j and low-incorne persons located at 711 Catherine St., Key 'hest, Florida, 33040, in Monroe County, Florida,to be occupied by eligible persons as described Article I.l 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 love--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: Packet iPg. 983 C.27.d 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 E 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., mast 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 minimurn property standards as stated in Section 420.907-420.9079, y 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. a, 1.4 Long-term Affordability CL 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 II. 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 Packet iPg. 984 C.27.d 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 ( SA), as determined by the US Department of I lousing 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. E 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 y of occupancy. ARTICLE V. INSURANCE W 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. CL 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 r_ promptly commence to rebuild, replace,repair or restore the Project in such manner as is consistent m with the Loan Documents. The County shall make any such insurance proceeds available to provide funds for such restoration work. In the event tine 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 tine 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 Packet iPg. 98`5 C.27.d 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, transfer or refinancing of the Project. Notwithstanding, payment of principal and interest in full, these restrictions shall rernain 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 y 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 W 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 rernedy as may be deerned rnost effective by the County to enforce the obligations of the Owner with respect to the Project. If 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. CL 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 Collier 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. Packet;Pg. 986 C.27.d 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 hail 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 receipt if sent by registered mail. FOR THE COUNTY FOR THE OWNER � Robert Shillinger, Esq. Scott Pridgen, Executive Director County Attorney A.H. of Monroe County, Inc. I I 1 112"' Street, Suite 408 1434 Kennedy Drive Key West, Flay 33040 Key Nest, FL 33040 (305) 292-3470 (305) 293-4800 ATTEST: KEVIN MADOK, CPA, CLERK BOARD OF COUNTY COMMISSIONERS OF W MONROE COUNTY, FLORIDA By: CL Date Date (SEAL) NROE COUNTS ATFO NE`r" A R0VE , EC A.H. OF MONROE COUNTY, INC. ASSI& UNTY ATTORNEY SEEBOL PLACE Cate 3/20/20 By: Cott PTidgen, ExecLrt', e Director. Date:, Packet iPg. 987 i C.27.e F. AFFORDABLE RENTAL UNITS—REHABILITATION DISASTER RELIEF Code 176 a. Summary of Strategy: Funds will be provided for the rehabilitation of affordable rental units affected by a natural disaster as declared by executive order signed by the President or Governor. b. Fiscal Years Covered: 2019-2020-2020-2021-2021-2022 c. Income Categories: Very Low, Low and Moderate d. Maximum award: $35,000 per unit e. Terms: 1. Deferred loan: Secured by a recorded note and mortgage and Land Use Agreement(LURA) N 2. Interest Rate: 0% 3. Term: Fifteen (15)years m . Forgiveness:The loan balance will be forgiven at maturity. 5. Repayment: None due if the loan is in good standing. 6. Default: Principal and interest shall be due upon the sale or transfer of the property. If during the affordability period the property is sold or transferred to an eligible nonprofit organization approved by the County �+ that agrees to execute all SHIP loan documents for the affordability period originally specified, no payment is due on the loan. �+ f. Recipient Selection Criteria: Tenants will be processed on a "First Qualified, First Served" basis. g. Sponsor/Developer Selection Criteria: Priority will be given to non-profit sponsors who own deed and income restricted properties in need of repair as a ca result of a natural disaster for the preservation of assisted housing units and long term affordability for very low, low and moderate income tenants. h. Additional Information: Eligible costs include all hard and soft costs associated with the rehabilitation of the property. MC SHIP LHAP REVISED APRIL 15,2020 15 Packet Pg.988 C.27.e SHIP Program Procedures Manual(rev. 112018) (5)(a) Local governments are encouraged to make the most efficient use of their resources by cooperating to provide affordable housing assistance.Local governments may enter into an interiocal agreement for the purpose of establishing a joint local housing assistance plan subject to the requirements of ss.420.907-420.9079.The local housing distributions for such counties and eligible municipalities shall be directly disbursed on a monthly basis to each county or eligible municipality to be administered in conformity with the interiocal agreement providing for a joint local housing assistance plan. (b) If a county or eligible municipality enters into an interiocal agreement with a municipality that becomes eligible as a result of entering into that interiocal agreement,the county or eligible municipality that has agreed to transfer the control of funds to a municipality that was not originally eligible must ensure through its local housing assistance plan and through the interlocal agreement that all program funds are used in a manner consistent with ss.420.907-420.9079.This must be accomplished by: W N 1. Providing that the use of the portion of funds transferred to the municipality meets all requirements 0) of ss.420.907-420.9079,or 2. Providing that the use of the portion of funds transferred to the municipality, when taken in combination with the use of the local housing distribution from which funds were transferred, meets all requirements of ss.420.907-420.9079. .2 (6) The moneys that otherwise would be distributed pursuant to s.420.9073 to a local government that Ch does not meet the program's requirements for receipts of such distributions shall remain in the Local Ch Government Housing Trust Fund to be administered by the corporation. (7)(a) A county or an eligible municipality must expend its portion of the local housing distribution only to implement a local housing assistance plan or as provided in this subsection. (b) A county or an eligible municipality may not expend its portion of the local housing distribution to provide ongoing rent subsidies,except for: 1. Security and utility deposit assistance. 2. Eviction prevention not to exceed 6 months'rent. 3. Arent subsidy program for very-low-income households with at least one adult who is a person with special needs as defined in s.420.0004 or homeless as defined in s.420.621.The period of rental assistance may not exceed 12 months for any eligible household. (8) Funds distributed under this program may not be pledged to pay the debt service on any bonds. (9) The corporation shall adopt rules necessary to implement ss.420.907-420.9079. 1 10) Notwithstanding ss.420.9071(26)and 420.9075(5)and subsection(7),for the 2016-2017 fiscal year: (a) The term"rent subsidies"means ongoing monthly rental assistance. (b) Up to 25 percent of the funds made available in each county and each eligible municipality from the local housing distribution may be used for rental assistance and rent subsidies as provided in paragraph(c). 7 Packet Pg.989 C.27.e SHIP Program Procedures Manual(rev. 112018) 5. Advocates for low-income persons,including,but not limited to, homeless people,the elderly,and migrant farmworkers. 6. Real estate professionals. 7. Other persons or entities who can assist in providing housing or related support services. 8. Lead agencies of local homeless assistance continuums of care. (b) The specific participants in partnership activities may vary according to the community's resources and the nature of the local housing assistance plan. (3)(a) Each local housing assistance plan shall include a definition of essential service personnel for the county or eligible municipality,including,but not limited to,teachers and educators, other school district, community college,and university employees,police and fire personnel,health care personnel,skilled building trades personnel,and other job categories. N (b) Each county and each eligible municipality is encouraged to develop a strategy within its local housing assistance plan that emphasizes the recruitment and retention of essential service personnel.The m local government is encouraged to involve public and private sector employers.Compliance with theCD eligibility criteria established under this strategy shall be verified by the county or eligible municipality. (c) Each county and each eligible municipality is encouraged to develop a strategy within its local .2 housing assistance plan that addresses the needs of persons who are deprived of affordable housing due to the closure of a mobile home park or the conversion of affordable rental units to condominiums. (d) Each county and each eligible municipality shall describe initiatives in the local housing assistance plan to encourage or require innovative design,green building principles,storm-resistant construction,or other elements that reduce long-term costs relating to maintenance,utilities,or insurance. (e) Each county and each eligible municipality is encouraged to develop a strategy within its local housing assistance plan which provides program funds for the preservation of assisted housing. (f) Each county and each eligible municipality is encouraged to develop a strategy within its local housing assistance plan which provides program funds for reducing homelessness. (g) Local governments may create regional partnerships across jurisdictional boundaries through the pooling of appropriated funds to address homeless housing needs identified in local housing assistance plans. ( ) Each local housing assistance plan is governed by the following criteria and administrative procedures: (a) Each county,eligible municipality,or entity formed through interlocal agreement to participate in the State Housing Initiatives Partnership Program must develop a qualification system and selection criteria for applications for awards by eligible sponsors,adopt criteria for the selection of eligible persons,and adopt a maximum award schedule or system of amounts consistent with the intent and budget of its local housing assistance plan,with ss.420.907-420.9079,and with corporation rule. 51 Packet Pg.990 C.27.e SHIP Program Procedures Manual(rev. 112018) (b) The county or eligible municipality or its administrative representative shall advertise the notice of funding availability in a newspaper of general circulation and periodicals serving ethnic and diverse neighborhoods,at least 30 days before the beginning of the application period.if no funding is available due to a waiting list,no notice of funding availability is required. (c) In accordance with the provisions of ss.760,20-760.37,it is unlawful to discriminate on the basis of race,religion,color,age,sex,marital status,familial status,national origin,or handicap in the award application process for eligible housing. (d) Asa condition of receipt of an award,the eligible sponsor or eligible person must contractually commit to comply with the affordable housing criteria provided under ss.420.907-420.9079 applicable to .� the affordable housing objective of the award.The plan criteria adopted by the county or eligible municipality must prescribe the contractual obligations required to ensure compliance with award W N conditions. (e) The staff or entity that has administrative authority for implementing a local housing assistance plan m assisting rental developments shall annually monitor and determine tenant eligibility or,to the extent CD C another governmental entity or corporation program provides periodic monitoring and determination,a municipality,county,or local housing financing authority may rely on such monitoring and determination of tenant eligibility.However,any loan or grant in the original amount of$10,000 or less is not subject to these y annual monitoring and determination of tenant eligibility requirements. (5) The following criteria apply to awards made to eligible sponsors or eligible persons for the purpose of providing eligible housing: nz (a) At least 65 percent of the funds made available in each county and eligible municipality from the W local housing distribution must be reserved for home ownership for eligible persons. (b) Up to 25 percent of the funds made available in each county and eligible municipality from the local housing distribution may be reserved for rental housing for eligible persons or for the purposes enumerated in s.420.9072(7)(b). (c) At least 75 percent of the funds made available in each county and eligible municipality from the local housing distribution must be reserved for construction,rehabilitation,or emergency repair of affordable,eligible housing. (d) Each local government must use a minimum of 20 percent of its local housing distribution to serve persons with special needs as defined in s.420.0004.A local government must certify that It will meet this requirement through existing approved strategies in the local housing assistance plan or submit a new local housing assistance plan strategy for this purpose to the corporation for approval to ensure that the plan meets this requirement.The first priority of these special needs funds must be to serve persons with developmental disabilities as defined in s.393.063,with an emphasis on home modifications,including technological enhancements and devices,which will allow homeowners to rernain independent in their own homes and maintain their homeownership. 52 Packet Pg.991 C.27.e SHIP Program Procedures Manual(rev. 1l2018) (e) Not more than 20 percent of the funds made available in each county and eligible municipality from the local housing distribution may be used for manufactured housing. (f) The sales price or value of new or existing eligible housing may not exceed 90 percent of the average area purchase price in the statistical area in which the eligible housing is located.Such average area purchase price may be that calculated for any 12-month period beginning not earlier than the fourth calendar year prior to the year in which the award occurs or as otherwise established by the United States Department of the Treasury. (g)1. All units constructed,rehabilitated,or otherwise assisted with the funds provided from the local housing assistance trust fund must be occupied by very-low-income persons, low-income persons,and moderate-income persons except as otherwise provided in this section. 2. At least 30 percent of the funds deposited into the local housing assistance trust fund must be W N reserved for awards to very-low-income persons or eligible sponsors who will serve very-low-income persons and at least an additional 30 percent of the funds deposited into the local housing assistance trust m W fund must be reserved for awards to low-income persons or eligible sponsors who will serve low-incomeCD persons.This subparagraph does not apply to a county or an eligible municipality that includes,or has 0 included within the previous 5 years,an area of critical state concern designated or ratified by the Legislature for which the Legislature has declared its intent to provide affordable housing.The exemption created by this act expires on July 1,2013,and shall apply retroactively (h) Loans shall be provided for periods not exceeding 30 years,except for deferred payment loans or loans that extend beyond 30 years which continue to serve eligible persons. nz (i) Loans or grants for eligible rental housing constructed,rehabilitated,or otherwise assisted from the W local housing assistance trust fund must be subject to recapture requirements as provided by the county or eligible municipality in its local housing assistance plan unless reserved for eligible persons for 15 years or the term of the assistance,whichever period is longer.Eligible sponsors that offer rental housing for sale before 15 years or that have remaining mortgages funded under this program must give a first right of refusal to eligible nonprofit organizations for purchase at the current market value for continued occupancy by eligible persons. (j} Loans or grants for eligible owner-occupied housing constructed,rehabilitated,or otherwise assisted from proceeds provided from the local housing assistance trust fund shall be subject to recapture requirements as provided by the county or eligible municipality in its local housing assistance plan, (k) The total amount of monthly mortgage payments or the amount of monthly rent charged by the eligible sponsor or her or his designee must be made affordable. (1) The maximum sales price or value per unit and the maximum award per unit for eligible housing benefiting from awards made pursuant to this section must be established in the local housing assistance plan. 53 Packet Pg.992 C.27.e SHIP Program Procedures Manual(rev. 112018) (m) The benefit of assistance provided through the State Housing Initiatives Partnership Program must accrue to eligible persons occupying eligible housing.This provision shall not be construed to prohibit use of the local housing distribution funds for a mixed income rental development. (n) Funds from the local housing distribution not used to meet the criteria established in paragraph(a) or paragraph(c)or not used for the administration of a local housing assistance plan must be used for housing production and finance activities,including,but not limited to,financing preconstruction activities or the purchase of existing units,providing rental housing,and providing home ownership training to prospective home buyers and owners of homes assisted through the local housing assistance plan. 1. Notwithstanding the provisions of paragraphs(a)and(c),program income as defined ins. 420.9071(24) may also be used to fund activities described in this paragraph. W 2. When preconstruction due-diligence activities conducted as part of a preservation strategy show that N preservation of the units is not feasible and will not result in the production of an eligible unit,such costs shall be deemed a program expense rather than an administrative expense if such program expenses do not exceed 3 percent of the annual local housing distribution. CD 3. If both an award under the local housing assistance plan and federal low-income housing tax credits are used to assist a project and there is a conflict between the criteria prescribed in this subsection and the requirements of s.42 of the Internal Revenue Code of 1986,as amended,the county or eligible municipality dence to the requirements of s.42 of the Internal Revenue Code of may resolve the conflict by giving prece 1986,as amended,in lieu of following the criteria prescribed in this subsection with the exception of paragraphs(a)and(g)of this subsection. 4. Each county and each eligible municipality may award funds as a grant for construction, W rehabilitation,or repair as part of disaster recovery or emergency repairs or to remedy accessibility or health ts must be approved as part of the local housing assistance plan. and safety deficiencies.Any other gran (6) Each county or eligible municipality receiving local housing distribution moneys shall establish and maintain a local housing assistance trust fund.All moneys of a county or an eligible municipality received from its share of the local housing distribution,program income,recaptured funds, and other funds received or budgeted to implement the local pausing assistance plan shall be deposited into the trust fund;however, local housing distribution moneys used to match federal DOME program moneys may be repaid to the HOME program fund if required by federal law or regulations.Expenditures other than for the administration and implementation of the local housing assistance plan may not be made from the fund. (7) The moneys deposited in the local housing assistance trust fund shall be used to administer and implement the local housing assistance plan.The cost of administering the plan may not exceed 5 percent of the local housing distribution moneys and program income deposited into the trust fund.A county or an eligible municipality may not exceed the 5-percent limitation on administrative costs,unless its governing body finds,by resolution,that 5 percent of the local housing distribution plus 5 percent of program income is insufficient to adequately pay the necessary costs of administering the local housing assistance plan.The 54 Packet Pg.993 C.27.e SHIP Program Procedures Manual(rev. 112018) terminates,and any uncommitted local housing distribution funds held by the affected county or eligible municipality in its local housing assistance trust fund shall be transferred to the Local Government Housing Trust Fund to the credit of the corporation to administer, 4.a. if the affected local government fails to meet the timeframes specified in the agreement,the corporation shall terminate funds.The corporation shall send a notice of termination of the local government's share of the local housing distribution by certified mail to the affected local government.The notice shall specify the termination date,and any uncommitted funds held by the affected local government shall be transferred to the Local Government Housing Trust Fund to the credit of the corporation to administer. b. if the corporation terminates funds to a county,but an eligible municipality receiving a local housing distribution pursuant to an interlocal agreement maintains compliance with program requirements,the N corporation shall thereafter distribute directly to the participating eligible municipality its share calculate in m the manner provided in ss.420.9072 and 420.9073. c. Any county or eligible municipality whose local distribution share has been terminated may CD subsequently elect to receive directly its local distribution share by adopting the ordinance,resolution,an local housing assistance plan in the manner and according to the procedures provided in ss.420.907 420.9079. (14) if the corporation determines that a county or eligible municipality has expended program funds shall require such funds to be repaid to the local housing assistance for an ineligible activity,the corporation made with funds from the State Housing Initiatives Partnership trust fund.Such repayment may not be W Program. 1;s.5,ch,95 153;s.9,ch.95-396;s.81,eh.97 103;s.37,ch.97 167;s.15,c h. History.—s.32,ch.92-317;s.14,ch.93-18 2000-353;s.14,ch.2001-98;s,7,ch,2002-160;s.24,ch.2004-243;s.23,ch.2006-69;S.20,ch.2008-104;s.29,ch.2009 ;s• 15,ch.2011-15;s.10,ch.2016-210. 420.9076 Adoption of affordable housing incentive strategies;committees.— (1) Each county or eligible municipality participating in the State Housing Initiatives Partnership m Program,including a municipality receiving program funds through the county,or an eligible municipality E must,within 12 months after the original adoption of the local housing assistance plan,amend the plan to include local housing incentive strategies as defined in s.420.9071(16). (2) The governing board of a county or municipality shall appoint the members of the affordable housing advisory committee.Pursuant to the terms of any interlocal agreement,a county and municipality may create and jointly appoint an advisory committee.The local action adopted pursuant to s.420.9072 which creates the advisory committee and appoints the advisory committee members must name at least 8 but not more than 11 committee members and specify their terms.The committee must consist of one representative from at least six of the categories below: 57 Packet Pg.994 C.27.e SHIP Program Procedures Manual(rev. 112018) system.The SHIP Annual Report system can be accessed at (6)Local governments that have had an audit,review or investigation involving SHIP funds shall send the Corporation a copy of any related report within 10 days of the issuance of such report. Rulemaking Authority 420.9072(9)FS.Law Implemented 420.9075(5)FS.History—New 11-26-92,Amended 2-9-94,1-6-98, Formerly 91-37.008,Repromulgoted 12-26-99,Amended 9-22-03,1-30-05,11-5-06,2-24-08,11-22-09 5-23-17. Interfocal Entities. (1)The interlocal agreement shall specify whether a single report for all jurisdictions or individual reports for each participating local government shall be submitted pursuant to Section 420.9075(10),F.S. (2)Eligible municipalities that intend to become a member of an established interlocal entity must: (a)Adopt an ordinance that creates the affordable housing advisory committee,establishes responsibility for plan administration and,if applicable,establishes the local affordable housing trust fund. (b)Adopt by resolution one local housing assistance plan and adopt by resolution the appointments to the advisory committee. (3) All members of the existing interlocal entity must adopt by resolution an amendment to the local N housing assistance plan to include the new eligible municipality. Specific Authority 420.9072(9)FS. Low Implemented 420.9072(5) FS. History—New 11 26 92, mended 2 9 94, 1 6-9 , E Formerly 91-37.011,Amended 12-26-99,9-22-03,2-24-08 5-23-17. Q) CD compliance Monitoring for Housing Developed With SHIP Local Housing Distribution Funds. (1)The local government staff or entity with administrative authority for a local housing assistance plan shall maintain a financial tracking system that ensures that the local housing distribution funds disbursed from U nts in Rule 67-37.007, the local housing trust fund are expended in accordance with the set-aside requireme F.A.C., within deadlines established in subsection 67-37.005(5) (b) and (c), F.A.C. and in compliance with Section 420.9075,F.S.Failure by the local government staff or entity with administrative authority to properly track SHIP funds or reconcile the funds to the general ledger shall result in the local government being deemed in non-compliance with the SHIP program.In this circumstance,the local government or administrative entity shall be required to receive technical assistance through the Catalyst program, W (2)The combined household Annual Gross Income of an applicant who is applying as an owner/occupant of a residence shall be verified and certified by the SHIP program administrator or designee using one of the following methods: (a)Section 8 housing assistance payments programs in 24 C.F.R.part 5;or (b)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service Form 1040 for individual federal annual income tax purposes. (3)income shall be calculated by annualizing verified sources of income for the household as the amount of income to be received in a household during the 12 months following the effective date of the determination.Whichever income verification and certification method is used,the Annual Grass Income,as defined in Section 420.9071(4), F.S.,must be used and the SHIP Program income limits cannot be exceeded. SHIP funds Expended on households that are determined to not be income qualified through a compliance monitoring or audit shall be repaid in full to the local housing trust fund from non-SHIP funds to be reallocated to an eligible SHIP activity.In this circumstance,the local government or administrative entity may be required to receive technical assistance through the Affordable Housing Catalyst Program. (4)The local government staff or entity with authority for administering a local housing assistance plan assisting rental developments shall monitor annually, or to the extent another government entity or Corporation program provides periodic monitoring,the local government may rely on that entity's monitoring to determine tenant eligibility and the amount of subsidy using the same guidelines as specified at subsection (2)above,at least annually for 15 years or the term of assistance,whichever is longer.The Corporation shall monitor the activities of the local governments to determine compliance with program requirements as defined in Section 420.9075(4)(e),F.S. 71 Packet'Pg. 995 C.27.e SHIP Program Procedures Manual(rev. 112018) Appendix F Program ii i ill and Feasibility A. Homeownership nits 1. Concurrent to the income qualification process is the determination of unit eligibility.For assistance using SNIP funds,the unit must conform to the definition of"eligible housing" as defined in Chapter 420.9071(8)of the Florida Statutes.All SHIP-assisted units must comply with all Florida Building Code provisions outlined in Chapter 553 of the Florida Statutes. For this reason,SHIP funds cannot be used to purchase or rehabilitate mobile homes which are constructed to the HUD code. 2. Unit eligibility considers the value of the unit.Section 420.9075( )(c) of the Florida Statutes indicates that"the sales price or value of new or existing eligible housing may not exceed 90 percent of the average area purchase price in the statistical area in which the eligible housing is located. Average area purchase price may be calculated for any 12- month period beginning not earlier than the fourth calendar year prior to the year in N which the award occurs or as otherwise established by the United States Department of the Treasury." The definitions section of the SHIP Statute outlines exactly how to m determine the"sales price or value" of several types of units: CO a. When a new or existing horse is purchased,the value is the amount on the executed sales contract. b. For households building a unit on land they own,the sales price is determined by an appraisal performed by a state-certified appraiser. The appraisal must include the value of the land and the improvements using the after-construction value of the property and must be dated within 12 months of the date construction is to commence. c. For existing units being rehabilitated without the creation of additional living space,the value is determined by a recent appraisal performed by a state-certified appraiser or the assessed value of the real property as determined by the county property appraiser. d. For rehabilitated units that include the addition of new living space,value means the value of the real property plus the cost of the improvements. 3. There are unit eligibility criteria that are specific to rehabilitation activities. First,consider whether the unit can be repaired up to the jurisdiction's locally adopted standard at a cost that does not exceed the maximum per unit award that is stated in the Local Housing Assistance Plan.Also,if SHIP funds are used on a unit along with CDI3C,HOME or other federal funds,adherence to all applicable federal requirements,including but not limited to federal lead based paint standards is also required. When combining different funding sources,the strictest rule will apply. B. Rental Units 1. There are also unit eligibility criteria specific to using SHIP funds on rental units.The amount of monthly rent charged on the unit cannot exceed the rental limits for the community,as published annually by the Florida Housing Finance Corporation. Furthermore,the affordability of the rental unit must be maintained for at least 15 years (Source;SHIP Rule Chapter 7-37. 07 (10)F.A.C.). However,any loan or grant in the original amount of$10,000 or less shall not be subject to these annual monitoring and determination of tenant eligibility requirements. 99 Packet Pg.996 C.27.e SHIP Program Procedures Manual{"rev. 11201�Y) C.Special Needs Housing 1. Some uncommon unit eligibility criteria apply to certain types of special needs housing. Typically when SHIP funds are used on group homes,temporary housing,or transitional housing,count each bed in the facility as a separate unit.These facilities are not considered home ownership units. They must comply with all the provisions in the SHIP Rule relating to rental housing(Chapter 7- 7. 0 (1 ) F.A. .). However, like all rental property,the sales price or value of group homes,temporary housing, or transitional housing may exceed the maximum sales price or value outlined in the Local Housing Assistance Plan. D.Program Eligibility 1. Determination of"program eligibility"must also occur concurrent to the income .� qualification process. Program eligibility considers if the assistance requested by the applicant is an eligible activity under both the state's guidelines and the Local Housing N Assistance Plan.Some local jurisdictions impose additional eligibility criteria on SHIP recipients that are not outlined in the SHIP Rule or Statute. For example,some local SHIP m programs deny assistance to applicants who are not current on payment of municipal 0) taxes and fees. 2. Consideration of program eligibility must also account for the Income,Homeownership and Construction/Rehabilitation "Set Asides"outlined in Chapter 420.9075( ) (a-d)of the 2 Florida Statutes.The SHIP Rule and Statute include set aside requirements that dictate how SHIP funds must be spent. A minimum of 30 percent of the funds deposited into the cn local housing assistance trust fund must assist very low-income persons. At the same time,60 percent of all funds deposited in the housing trust fund must assist very low-or low-income persons.This must be considered when screening new applicants.The SHIP program could not currently help a moderate income applicant,for example,if the local jurisdiction's funds are nearly depleted and if the jurisdiction had not yet complied with Z:: the Income Set Aside by expending t least 60 percent of SHIP funds on very low-and low- 0. income households. o 3. The same consideration applies to the Home Ownership and Construction/Rehabilitation Set Asides.At least 6s percent of the annual SHIP distribution and funds recaptured during the fiscal year must be devoted to homeownership(as opposed to rental)activities,while at the same time at least 75 percent of the distribution "and recaptured funds" must be devoted to either new construction or rehabilitation activities.Therefore,if a SHIP m program has already spent 10 percent of funds on administration and 25 percent of a o certain year's allocation on non-home ownership activities,it could not provide assistance under a rental strategy from that particular year, Homeownership activities include assistance to existing owner occupants as well as purchase assistance to new homebuyers. E.Affordability Test 1. The program administrator must also perform an "affordability test"on recipients of SHIP purchase assistance, as well as those living in SHIP-assisted rental units. a. For SHIP-assisted rental units,the Florida Housing Finance Corporation annually publishes maximum levels of rent that can be charged. This establishes a standard of affordability for all SHIP-assisted renters. 100 Packet Pg.997