Eisenhower 05/19/2021 Jp�° ° °�-Noi41, , Kevin Madok, CPA
14s,;.......: Clerk of the Circuit Court&Comptroller—Monroe County,_ Florida
1\ eou
DATE: October 26, 2021
TO: Sheryl Graham, Director
Social Services
ATTN: Lourdes Francis
FROM: Pamela G. Hancock]1�.C;.
SUBJECT: May 19th BOCC Meeting
Attached is an electronic copy of the following item for your handling:
Cl Land Use Restriction Agreement for the State Housing Initiatives Partnership
Program for the purpose of guaranteeing a fifteen-year affordability period for the"Eisenhower"
property located on Eisenhower Drive,unit numbers: 712, 714, 716 #101, 716 #102, 716 #103,
716 #104, 716 #105; and on Pearl Street unit numbers: 703, 705, 707, 709 #101, 709#201,in the
City of Key West, FL 33040.
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
A
RIGMONROE COUNTY STATE HOUSING INITIATIVES = o1NAI
PARTNERHIP PROGRAM(SHIP)
LAND USE RESTRICTION AGREEMENT(LURA)
EISENHOWER
This LAND USE RESTRICTION AGREEMENT. (LURA hereinafter called the
"Agreement") is made and entered into as of this.21. day of �l`'', 2021, between THE
HOUSING AUTHORITY OF THE CITY OF KEY WEST,FLORIDA,(hereinafter called the
"Owner") and MONROE COUNTY, a political subdivision of the State of Florida (hereinafter
called the "County") and HABITAT FOR HUMANITY OF KEY WEST AND LOWER
FLORIDA KEYS (hereinafter called the"Operator").
WITNESETH
WHEREAS,the County approved funding for THE HOUSING AUTHORITY OF THE
CITY OF KEY WEST,FLORIDA and HABITAT FOR HUMANITY OF KEY WEST
AND LOWER FLORIDA KEYS,through the County's State Housing Initiatives Partnership
Program(SHIP) for the purpose of rehabilitating"EISENHOWER"a property/facility located
in Monroe County,Florida on Eisenhower Drive, unit numbers: 712, 714, 716 #101, 716#102,
716 #103, 716#104, 716#105; and on Pearl Street unit numbers: 703, 705, 707, 709#101, 709
#201 in the City of Key West,Florida, 33040 and the legal description is as follows:
A parcel of land on the Island of Key West, known as part ofLot I&Lot 2,ofSquare I, Tract 7,
according to Albury's subdivision ofpart of Tract 7,as recorded in Deed Book"I",Page 239, in the
Public Records ofMonroe County, Florida,said parcel being ore particularly described as follows:
COMMENCE at the intersection of the Northeasterly Right of Way Line of Pearl Street and the
Northwesterly Right of Way Line ofNewton Street;thence N 44°59'53"E along the said Northwesterly
Right of Way Line ofNewton Street for 150.09 feet to the platted Right of Way Line of Eisenhower Drive
and the Point of Beginning;thence continue N44°59'53"E along the said Northwesterly Right of Way
Line ofNewton Street for 35.26feet to the Southwesterly Right of Way Line ofEisenhower Drive as
existing and constructed;thence N44°45'07"W along the said Southwesterly Right of Way Line of
Eisenhower Drive as existing and constructed for 98.90 feet;thence S 44°58'00"W for 29.48 feet to
the platted Right of Way Line of Eisenhower Drive;thence N41°24'22"E long the said platted Right
of Way Line of Eisenhower Drive for 99.02 feet to the said Northwesterly Right of Way Line ofNewton
Street and 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 the"EISENHOWER"property in Monroe County, Key West,
Florida,to be occupied by eligible persons as described in 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, Owner, and Lease Holder 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 all 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 Housing
Authority of the City of Key West, Florida shall have ninety (90)days from the date of
notification of intent to sell 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 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 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,transfer or refmancing 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 Owner 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.
A
ORIGINAL
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
receipt if sent by registered mail.
FOR THE COUNTY FOR THE OWNER
Robert Shillinger, Esq. THE HOUSING AUTHORITY OF THE
County Attorney CITY OF KEY WEST,FLORIDA
1111 12th Street, Suite 408 1400 Kennedy Drive
Key West,FL 33040 Key West,FL 33040
(305)292-3470
IN WITNESS WHEREOF, the Parties have caused their respective duly authorized
representatives to execute this Agreement on the date first written above.
., .„&TTEST:
��t�; KE�7N MADOK, CPA, CLERK BOARD OF CO HERS OF
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THE HOUSING AUTHORITY OF THE CITY App ed as to fo
OF KEY WEST,FLORIDA
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Pedro Mercadd
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Assis C ty Attorney
By: 3. Manuel Castillo, Sr. Executive Director
Date: 9—al/—2 a
HABITAT FOR HUMANITY OF KEY ti `
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WET LOWER,FL KEYS ..D r .1
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y: 'stina Welburn,Executive Director =..
Date: ibirnic- C):26 —i
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