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Item F7 F7 BOARD OF COUNTY COMMISSIONERS COUNTY of MONROE Mayor Craig Cates,District 1 The Florida Keys Mayor Pro Tern Holly Merrill Raschein,District 5 Michelle Lincoln,District 2 James K.Scholl,District 3 m' David Rice,District 4 Board of County Commissioners Meeting September 20, 2023 Agenda Item Number: F7 -140 BULK ITEM: Yes DEPARTMENT: County Land Acquisition And Land Management TIME APPROXIMATE: STAFF CONTACT: Cynthia Guerra AGENDA ITEM WORDING: Approval of Amendment and Extension of Board-approved purchase agreement of property, funded by the Community Development Block Grant-Disaster Recovery (CDBG-DR)Voluntary Home Buyout Program (VHBP) in the amount of$380,000.00. ITEM BACKGROUND: Consistent with State Statute 119.071(5)(f)(1.)(b), staff has omitted/redacted the homeowner's names, address and other identifying information as adopted during the 2020 legislative session. This statute provides an exemption from public records requirements for personal identifying information for the purpose of disaster recovery assistance. Properties proposed for acquisition by the Voluntary Home Buyout Program were affected by Hurricane Irma in 2017. The Department of Economic Opportunity (DEO) awarded Monroe County $15 million in CDBG-DR funding, via Subrecipient Agreement I0092, to acquire Irma-damaged properties in low to moderate income areas or from households with low to moderate income. Using those funds, the County is acquiring property that was damaged by Hurricane Irma under the Voluntary Home Buyout Program (VHBP). VHBP acquisitions are being made to reduce the impact of future disasters by acquiring properties that are in high-risk flood areas. Under the VHBP, an Agreement for Purchase (Agreement)between the County as buyer and the seller was approved by the Board on February 15, 2023, with a deadline to close the transaction within 90 days, or by May 16, 2023, as specified in Paragraph 7 of the Agreement. Paragraph 3.3 of the Agreement states that the seller acknowledges that the Agreement does not constitute a guarantee to the commitment of funds or site approval and that such commitment of funds or approval is subject to conditions, including DEO approval. DEO originally approved the purchase on December 19, 2022, prior to the BOCC approval. However, a delay in processing of this Agreement arose during a DEO 2725 monitoring event that took place in January and February 2023, such that the transaction was not closed within 90 days per Paragraph 7 of the Agreement. At this time, the County and the seller wish to extend the Agreement for an additional 180 days in order to close the transaction no later than November 14, 2023. Additionally, during the due diligence phase of the transaction, the county discovered defects in the legal description. Per Paragraph 4 of the Agreement, the Seller has taken the appropriate steps to correct the legal description to deliver marketable title, therefore the legal description is being updated in this Amendment to the Purchase Agreement. This item is for approval to amend and extend the Agreement by making the following changes: A. Paragraph 1 Legal Description is stricken and replaced with the following: [Redacted pursuant to Fla. Stat. 119.071.] B. Paragraph 3.1 is stricken and replaced with the following: Paragraph 3.1 — Contingencies. Seller(s) shall vacate the property within 270 days from the date of this contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the property, the Buyer shall have the right to void this contract, unless an extension has been agreed upon, in writing, between Seller(s) and the Buyer. The Property shall be delivered by Seller(s) at settlement/closing date free of any tenant(s) or occupant(s) and future tenancies. C. Paragraph 7 is stricken and replaced with the following: Paragraph 7 - Conveyance Date of Closing/Possession. Conveyance will be made subject to all easements and covenants of record(provided they do not make the title unmarketable or prohibits Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules, and regulations. The Seller(s)'s possession establishing evidence of title including, but not limited to, abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by marketable title with a general warranty deed, free of encumbrances. The deed will be prepared by the Closing Attorney in the name of Monroe County, FL, or as otherwise stipulated by Buyer, and delivered to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the time of settlement. This transaction will be closed on or before 270 days of the signing of this contract unless an extension has been agreed upon between Seller(s) and the Buyer. 2726 The remainder of the terms and conditions of the Agreement remain unchanged by this Amendment, and continue in full force and effect. The restrictive covenant has been revised to include the corrected legal description and is attached for County signatures. The covenant will be recorded with the deed when the transaction is closed. PREVIOUS RELEVANT BOCC ACTION: On July 22, 2019, the BOCC approved the CDBG-DR VHBP grant application to DEO (Agenda Item B.1). On May 20, 2020, the BOCC approved Resolution 150-2020 allowing the county to execute the CDBG- DR VHBP Subrecipient Agreement with DEO (Agenda Item D.2). On February 17, 2021, the BOCC approved Resolution 56-2021 updating the local program prioritization criteria for the Voluntary Home Buyout Program (Agenda Item D.5). On February 15, 2023, the BOCC approved Resolution 082-2023 which included the approval of the subject Purchase Agreement, Restrictive Covenant and Moving the Market Rate ROGO to the Administrative Relief Pool(Agenda Item F.1). CONTRACT/AGREEMENT CHANGES: A. Paragraph 1 Legal Description is stricken and replaced with the following: [Redacted pursuant to Fla. Stat. 119.071.] B. Paragraph 3.1 is stricken and replaced with the following: Paragraph 3.1 — Contingencies. Seller(s) shall vacate the property within 270 days from the date of this contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the property, the Buyer shall have the right to void this contract, unless an extension has been agreed upon, in writing, between Seller(s) and the Buyer. The Property shall be delivered by Seller(s) at settlement/closing date free of any tenant(s) or occupant(s) and future tenancies. 2727 C. Paragraph 7 is stricken and replaced with the following: Paragraph 7 - Conveyance Date of Closing/Possession. Conveyance will be made subject to all easements and covenants of record(provided they do not make the title unmarketable or prohibits Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules, and regulations. The Seller(s)'s possession establishing evidence of title including, but not limited to, abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by marketable title with a general warranty deed, free of encumbrances. The deed will be prepared by the Closing Attorney in the name of Monroe County, FL, or as otherwise stipulated by Buyer, and delivered to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the time of settlement. This transaction will be closed on or before 270 days of the signing of this contract unless an extension has been agreed upon between Seller(s) and the Buyer. The remainder of the terms and conditions of the Agreement remain unchanged by this Amendment, and continue in full force and effect. STAFF RECOMMENDATION: Approval DOCUMENTATION: 00059 Agreement for Purchase - fully executed_Redacted.pdf 00059 Amendment-Extension to Purchase Agreement_owner-CAO signed_Redacted.pdf 00059 Restrictive VHBP Covenant_CAO signed_Redacted.pdf FINANCIAL IMPACT: Effective Date: Effective upon execution by Monroe County and closing of real estate transaction Expiration Date: NA Total Dollar Value of Purchase Agreement: $380,000 plus closing costs Total Cost to County: $0 Current Year Portion: NA Budgeted: No Source of Funds: CDBG-DR Voluntary Home Buyout Program CPI: NA Indirect Costs: NA Estimated Ongoing Costs Not Included in above dollar amounts: NA 2728 Revenue Producing:NA If yes, amount: Grant: $ 15 Million CDBG-DR Voluntary Home Buyout Program Grant County Match: $ 0 Insurance Required: NA Additional Details: NA 2729 MONROE COUNTY,FLORIDA VOLUNTARY HOME BUYOUT PROGRAM . AGREEMENT FOR PURCHASE -i his AGREEMENT made this day of T , 2023, by and between Monroe County, a political subdivision of the State of Florida, whose post office address is 1100 Simonton Street, Suite 206, Key West, FL 33040 (hereinafter referred to as "Buyer") and (hereinafter referred to as"Seller(s)'): 1_ OFFER AND DESCRIPTION. Buyer agrees to buy, and Seller(s)agrees to sell all of a certain piece, parcel or lot of land, and for all of the lands and other interests, buildings, structures and improvements thereon, which lands shall include all tenements, hereditaments, together with fixtures and Personal Property (as described below), all water and other rights, easements, appurtenances, and any and all of the Seller(s)' rights in or arising by reason of ownership thereunto belonging, owned by them,situate and lying in the Monroe County, State of Florida, more particularly described as follows (which will be collectively referred to as "Property") ; to wit: LEGAL DESCRIPTIOhI_ RE NUMBER: Seller(s) must relinquish all development/building rights to the property including but not limited to any and all allocations legally existing orgranted underthe MONROE COUNTY's RATE OF GROWTH ORDINANCE (ROGO)_ The Seller(s) agree that they have full right, power, and authority to convey, and that they will convey to the Buyer the fee simple title together with legal and practical access thereto clear, free and unencumbered, subject to the following easements or reservations for canals, ditches, flumes, pipelines, railroads, public highways and roads, telephone, telegraph, power transmission lines and public utilities. 2. CONSIDERATIQN,,The purchase price for the Property and improvements above described is 38Q 00.00 to be paid at dosing, minus any outstanding liens or assessments which are due and payable at the date of settlement_ 3. CONTINGENQI , 3.1 Seller(s) shall vacate the property within 90 days from the date of this contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the property, the Buyer shall have the right to void this contract, unless an extension has been agreed upon, in writing, between Seller(s)and the Buyer. The Property shall be delivered by Seller(s) at settlement/closing date free of any tenant(s) or occupant(s) and future tenancies. 2730 MONROE COUNTY,nORIDA ' VOLUNTARY How BuYouT PROGRAM �!�''�yJN�iAAy g�'l2 ✓ , 3.2 Buyer shall have access to Property and the right to perform any and all inspections on the Property up until day of closing/settlement date. If Buyer's inspections are not satisfactory to the Buyer, the Buyer shall have the right to void this contract. Buyer shall also have the right to void this contract if the Buyer's intended use of the property is a violation of any restrictive covenants on the property that cannot be modified. 3.3 Buyer and Seller(s) acknowledge that this Property is being purchased with U.S. Department of Housing and Urban Development (HUD)funds that are being allocated through Florida's Department of Economic Opportunity (DEO) in accordance with the Voluntary Home Buyout Program_ The Seller(s) acknowledges that this contract does not constitute a guarantee to the commitment of funds or site approval, and that such commitment of funds or approval is subject to satisfactory completion of an environmental review, DEO approval of the purchase, and Monroe County, FL Board of County Commissioner's approval of the purchase, and. The Buyer may terminate this Agreement at any time if any of the above Contingencies are not met. 3.4 The Seller(s)shall resolve any open code enforcement proceedings prior to closing. 4. TRANSACTION COSTS. Buyer's Transaction Costs include the appraisal fee, Buyer's attorney fees, deed preparation, title search charges, survey (if required) and title insurance, owner's policy, inspections, municipal lien search, and all documentary stamp taxes and recording fees, if applicable. Seller(s)'s Transaction Costs include deed preparation and payoff fees. Buyer shall be responsible for Buyer's transaction costs and Seller(s)'s transaction costs. Seller(s) shall be responsible for any costs necessary to deliver a marketable title (including recording of loan and/or lien satisfactions or other fees needed to cure title). If Seller(s) is represented by a realtor or attorney, the Seller(s) is responsible for all Seller(s)' realtor and attorney fees. Seller(s)shall fumish to Buyer at Closing an affidavit attesting to the absence of any financing statement, claims of lien, or potential lienors known to Seller(s). 5. REAL ESTATE TMEgi. Buyer shall be responsible for the pro-rata share of prepaid real property taxes, including any special taxes, due at the date of settlement/closing. It shall be the obligation of the Seller(s) to pay all taxes and assessments outstanding as liens at the date of settlement/closing, whether or not such taxes and assessments are then due and payable. 5. ADJUSTMENTS. NONE. 7. CONVEYANCE,©ATE OF CLOSING/POSSUSION. Conveyance will be made subject to all easements and covenants of record (provided they do not make the title unmarketable or prohibits Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules,and regulations.The Seller(s)expressly agree herein to furnish to the Buyer any documents in Seller(s)'s possession establishing evidence of title including, but not limited to, abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by marketable title with a general warranty deed,free of encumbrances. The deed will be prepared by the Closing Attorney in the name of Monroe County, FL,or as otherwise 2731 ruv�� iHr1 u� MONROE COUNTY,FLORIDA F � VOLUNTARY HOME BUYOUT PROGRAM stipulated by Buyer, and delivered to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the time of settlement. This transaction will be closed on or before 90 days of the signing of this contract unless an extension has been agreed upon between Seller(s)and the Buyer. 8. FIXTURES AND PERSONAL PROPERTY.,At the time of dosing/settlement date, this sale includes all property,fixtures, equipment and improvements of any kind left on the premises. Personal property, such as fixtures, can be removed from the property prior to Vacancy Inspection so long as this removal does not cause health or safety concerns on the premises. 9. EXPIRATION OF OFFER. This offer from Buyer will be withdrawn at 5 o'clock PM. (Eastem Tune) on Tuesday, January 10, 2023, unless accepted or countered by Seller(s) in written form prior to such time. If Seller(s)requires an extension to the time and date stated above to accept or counteroffer the offer presented by the Buyer, a written request with reasoning needs to be submitted to and approved by the Buyer prior to the expiration date. 10.TIME IS'OF,THE ESSENCE Time is of the essence with respect to all provisions of this contract that stipulate a specific period of time for performance. Failure of Seller(s) to complete any provision of this contract within the stipulated period of time for completion of the provision will constitute, where applicable, a default of this contract. 11.SURVIVAL_,if any provision herein contained which by its nature and effect is requirea xo observed, kept or performed after dosing, it will survive the closing and remain binding upon and for the Parties hereto until fully observed kept or performed_ 12. ENTIRE AGREEMENT. This agreement, the Voluntary Transaction Agreement, the Certificate of Removal of Personal Property and Abandonment, the Subrogation Agreement, Right of Entry, Hold Harmless and Indemnification Agreement, and Certificate of Vacancy Inspection supersedes any and all understandings and agreements between the parties and constitutes the sole and entire agreement between the parties. No oral agreement or representations prior hereto shall be included herein unless set forth in writing. Any change to this contract shall be in writing.This agreement shall be constructed in accordance with the laws of the State of Florida. It is understood by the parties that this agreement is subject to Chapter 119, Florida Statute regarding Public Records Law_ 13. EFFECTIVE DATE.The effective date of this Agreement shall be that date when the last one of the Seller(s)and the Buyer has signed this Agreement. 2732 MONROE COUNTY,FLORIDA VOLUNTARY HOME BUYOUT PROGRAM NNlydNiP,ys'm:aNrNi��'"�N"F,', iN WITNESS WHEREOF. the Seller(s) have hereunto signed their names and affixed their respective seals on the day first above written and therefore the Seller(s)for and in consideration hereinabove acknowledge as received, have and do hereby grant unto the Buyer or its authorized representative, or any other office or agent of the Buyer authorized to purchase said lands, the option and right to enter into this Agreement and to purchase said lands as herein provided. Warning; Any person who knowingly makes a false claim or statement to HUD may be subject to civil or criminal penalties under 18 U.S.C. 287, 1001 and 31 U.S.C. 3729. Seller/ Sign at Date Phone Number Buyer/COUNTY: MONROE COUNTY, FLORIDA ATTEST: Kevin Madok, CPA, Clerk o w Duty Clerk Crai ates, Mayor 4 1 t MONROE COUNTY ATTORNEY APPROVED A ORM KELLY DU N ASSISTANT COUNTY ATTORNEY Date: iw P ' 2733 ti C14 AMENDMENT ONE TO AGREEMENT FOR PURCHASE BETWEEN MONROE COUNTY ("BUYER") AND ("SELLER") DATED FEBRUARY 15, 2023 This Amendment ("Amendment One") is made and entered into this 201h day of September 2023 by and between MONROE COUNTY, a political subdivision of the State of Florida, whose post office address is 1100 Simonton Street, Suite 205, Key West, Florida, 33040 (hereinafter referred to as "Buyer") and-(herein referred to as "Seller"); WITNESSETH: WHEREAS, the Agreement for Purchase ("AGREEMENT") between Buyer and Seller was entered into the 15 th day of February 2023 with a deadline to close the transaction within 90 days, or by May 16, 2023; and, WHEREAS, Paragraph 3.3 of the Agreement states that the Seller(s)acknowledge that the Agreement does not constitute a guarantee to the commitment of funds or site approval and that such commitment of funds or approval is subject to conditions, including DEO approval; and, WHEREAS, DEO originally approved the purchase on December 19, 2022, prior to the or of County Commissioners approval of the Agreement on February 15, 2023; and, WHEREAS, a delay in processing of this Agreement arose during a DEO monitoring event that took place in January and February 2023, such that the Agreement was not closed within 90 days per Paragraph 7 of the Agreement; and, WHEREAS, the Buyer and Seller(s) wish to extend the Agreement for an additional 180 days; and, WHEREAS, during the due diligence phase of the transaction, the County discovered defects in the legal description that are being corrected through this amendment of the Agreement. NOW THEREFORE, in consideration of the mutual promises contained herein, the AGREEMENT is amended as follows: Section 1. Recilqls and Legislative Intent. The Foregoing recitals, findings of fact, and statements of legislative intent are true and correct and are hereby incorporated as if fully stated herein. Section 2. The AGREEMENT is amended as follows: Paragraph 1 Legal Description is stricken and replaced with the following: LO M ti N Paragraph 3.1 is stricken and replaced with the following: Paragraph 3.1 - Contingencies. Seller(s) shall vacate the property within 270 days from the date of this contract or by the vacancy inspection date, whichever is earlier. If Seller(s) does not vacate the property, the Buyer shall have the right to void this contract, unless a extension has been agreed upon, in writing, between Seller(s)and the Buyer. The Property shall be delivered by Seller(s)at settle ent/c losing date free of any tenant(s)or occupant(s) and future tenancies. Paragraph 7 is stricken and replaced with the following: W CV) I- C14 Parap-rah 7 - Conveyance Date of Closing/Possession. Conveyance will be made subject to all easements and covenants of record(provided they do not make the title unmarketable or prohibits Buyer from its desired use of the property) and to all governmental statutes, ordinances, rules,and regulations. The Seller(s)'s possession establishing evidence of title including, but not limited to, abstracts, title commitments, title policies and opinions of title. Seller(s) agrees to convey by marketable title with a general warranty deed, free of encumbrances. The deed will be prepared by the Closing Attorney in the name of Monroe County, FL, or as otherwise stipulated by Buyer, and delivered to stipulated place of closing. Closing Attorney shall be authorized to disburse the sales proceeds at the time of settlement. This transaction will be closed on or before 270 days of the signing of this contract unless an extension has been agreed upon between Seller(s) and the Buyer. The remainder of the terms and conditions of the AGREEMENT remain unchanged by this Amendment, and continue in full force and effect. IN WITNESS WHEREOF, each party caused this Amendment to the Agreement to be executed by its duly authorized representative. Seller Date Phone Number Buyer COUNTY: MONROE COUNTY, FLORIDA Attest: KEVIN MADOK, CPA, Clerk By: By: As Deputy Clerk Craig Cates, Mayor Date: MONROE COUNTY ATTORNEY APPROVED A,s.-ITO,FORM KELLY DU N ASSISTANT COUNTY ATTORNEY A-- Z DATE I- CV) I- 04 Return to: Wright Barrows,PLLC. 540 Key Deer Blvd Big Pine Key,FL 33043 305-872-1050 --------------------------------Space Above this Line for Recording___________________________________ ECLA OF RESTRICTIVE COVENANT RUNNING WITH THE LAND AND DECLARATION OF RESTRICTION ON FUTURE DEVELOPMENT This Declaration of Restrictive Covenant is executed as of the -th day of ........9 2023 (the "Effective Date"), by Monroe County, a political subdivision of the State of Florida, whose post office address is 1100 Simonton Street, Suite 205, Key West, FL 33040, in reference to the property ("Property") known as: Legal Description: 00 CV) I­ C14 RE#: Address: conveyed by the Deed between participating in a federally assisted acquisition project ("Grantor"), and Monroe County, ("Grantee"), its successors and assigns: WHEREAS, Hurricane Irma impacted the Florida Keys on September 10, 2017, destroying or majorly damaging over 4,000 residential structures in Monroe County; and WHEREAS,in response to the impacts statewide of Hurricane Irma,the Department of Economic Opportunity (DEO) developed a Community Development Block Grant - Disaster Recovery (CDBG-DR) Action Plan that detailed how the State will administer the funds statewide. The Action Plan includes the Voluntary Home Buyout Program (VHBP)which was created to acquire properties that are in high-risk flood areas, to reduce the impact of future disasters, and to assist property owners to relocate to less risk prone areas; and, WHEREAS, Monroe County was awarded $15 Million in CDBG-DR funding for the creation and implementation of a VHBP for unincorporated portions of the County. The County adopted Resolution 150-2020 to accept and execute the VHBP DEO Subrecipient Agreement for the CDBG-DR funding on May 20, 2020, which was amended by an Amendment to the VHBP Subrecipient Agreement approved on March 17, 2021, making the County a VHBP grantee; and WHEREAS, the Subrecipient Agreement requires the County to restrict VHBP acquired properties to uses stated in the County's grant application. The application included Resolution 224-2019 which stated the county's intention was to deed-restrict the properties in perpetuity to open space uses, storm water improvements or to restore and conserve the natural floodplain functions; and NOW, THEREFORE, this DECLARATION is made from and after the Effective Date and subject to the following terms and conditions: 1. Terms. Pursuant to the terms of the Subrecipient Agreement 10092 dated June 4,2020, the following conditions and restrictions shall apply in perpetuity to the Property described in M ti N the attached deed and acquired by the Grantee pursuant to CDBG-DR requirements concerning the acquisition of the Property: a. Compatible uses. The Property shall be dedicated and maintained in perpetuity to open space uses, storm water improvements or to restore and conserve the natural floodplain functions. b. Structures. Construction of new structures is only allowed where: i. A public building is open on all sides and functionally related to a designated open space use.; ii. The structure is a public rest room; or iii. The structure is compatible with the uses proposed included in paragraph La., and has DEO approval in writing before the construction of the structure begins. Any new structures built on the Property according to the subparagraph b. above will be elevated or flood-proofed to the Base Flood Elevation (BFE) plus two foot of freeboard as defined in the Federal Register 24 CFR 55.2(b)(10), or as amended and defined in the Federal Register, and meet applicable requirements of the National Flood Insurance Program (NFIP) floodplain management regulations or local codes. C. Disaster Assistance and Flood Insurance. After settlement, no federal disaster assistance for any purpose from any federal source, nor flood insurance payments will be made with respect to the Property,and no person or entity shall seek such amounts. d. Transfer. The subrecipient must obtain the approval of DEO before conveying ownership (fee title) of the Property to another public agency or qualified conservation organization. Property transfer to private citizens and corporations will not be approved. All development rights in the form of a conservation easement on the property must be conveyed to the conservation organization or retained by the subrecipient or other public entity. 2. Enforcement. The subrecipient must accept responsibility for monitoring and enforcing this deed restriction and/or easement. 3. Amendment. This agreement may be amended upon signatures of DEO and the Grantee only to the extent that such amendment does not affect the fundamental and statutory purposes underlying the agreement. 4. Severability. Should any provision of this grant or the application thereof to any person or circumstance be found to be invalid or unenforceable, the rest and remainder of the provisions of this grant and their application shall not be affected and shall remain valid and enforceable. C) ti CN IN WITNESS WHEREOF,the undersigned has caused this DECLARATION to be signed by its duly authorized representatives, as of the day and year first above written. Grantee/COUNTY: MONROE COUNTY, FLORIDA ATTEST: Kevin Madok, CPA, Clerk By: ...... ..................... As Deputy Clerk Craig Cates, Mayor (Seal) MONROE COUNTY ATTORNEY APPROVED AS-:I','p FORM Date: KELL GAN ASSISTANT COUNTY ATTORNEY Date: