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RESOLUTION 91-20272 RESOLUTION NUMBER 91-20272 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE SINGLE-FAMILY REHABILITATION PROGRAM AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE GRANT AGREEMENTS FOR THE PROGRAM. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: WHEREAS, the City has undertaken redevelopment and rehabilitation of the existing housing stock through various housing activities; and WHEREAS, it is the City' s desire to provide funding for the rehabilitation of its single-family housing through Community Development Block Grant (CDBG) funds; and WHEREAS, on February 13 , 1991, the City notified HUD that in accordance with 24 CFR 570. 305, it had amended its "CDBG Final Statement of Objectives and Projected Use of Funds" for Program Years 15 and 16, in order to add several new activities including the one herein referenced; and WHEREAS, existing funds are available within the CDBG Program for this Single-Family Rehabilitation Component; and WHEREAS, the Administration and the City' s Loan Review Committee have prepared the applicable documents for this Program, consisting of the Guidelines and a form of Grant Agreement; and WHEREAS, the City Commission deems it to be in the best interests of the City and its residents and citizens that said Program be approved. NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City of Miami Beach Single-Family Rehabilitation Program documents, consisting of the Guidelines and a form of Grant Agreement, are hereby approved and adopted; and that the Mayor and the City Clerk of the City of Miami Beach are hereby authorized and directed to execute Grant Agreements, on behalf of the City of Miami Beach, Florida, with property owners, for projects approved by the City' s Loan Review Committee. PASSED AND ADOPTED THIS 10th DAY OF April , 1991 i/ef //// (./- •YOR ATTEST: FORM APPROVED LEGAL DEPT. CITY CLERK Date 3 / 60 4 Neeime &lad Mi'BFN, FLORIDA 3 3 1 3 9 14rf' ..'•',$ 1*(INCORP ORATED)*! "V A CA TIONL A NLa U. S. A. " • \,:ii\,___ ..44V • OFFICE OF THE CITY MANAGER CITY HALL 1700 CONVENTION CENTER DRIVE TELEPHONE: 673-7010 COMMISSION MEMORANDUM NO. / y‘-V DATE: April 10, 1991 TO: Mayor Alex Daoud and Members of the City Commission •R M: Carla Bernabei Talaric .'� 411 FROM: City Manager SUBJECT: APPROVAL OF THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDED SINGLE—FAMILY REHABILITATION PROGRAM The Economic and Community Development Department, through its Multi-Family Rehabilitation Programs, has been providing interest subsidy funds to upgrade multi-family rental buildings. To date, forty buildings containing more than 900 units have been renovated or are under renovation. This effort of public and private financial partnerships has resulted in the redevelopment of numerous multi-family structures in the City; however, the rehabilitation of the City' s single- family stock has not shown substantial activity, especially those owned by low and moderate income families and, in particular, in the Northern Area of the City. b The Economic and Community Development Department and the City' s Loan Review Committee have developed a Single-Family Rehabilitation Program which will provide grants to low and moderate income owners of properties located in the Northern Areas, i.e. , Normandy Isle and North Shore. This. program will be funded with existing Federal Community Development Block Grant Funds in the rehabilitation line item, and is an eligible CDBG activity. ADMINISTRATION RECOMMENDATION: It is recommended that the Single-Family Rehabilitation Program documents, consisting of the Guidelines and a form of Grant Agreement, be approved and adopted. The Administration also requests permission to make necessary adjustments to the narrative and/or technical corrections from time to time, which may be later identified, and which do not significantly alter the scope or intent of the Program. It is also recommended that the Mayor and the City Clerk be authorized to execute Grant Agreements, on behalf of the City of Miami Beach, Florida, with property owners, for those projects- approved by the City' s Loan Review Committee. CBT/jef • • ia • AGENDA —1/A ITEM . • DATE .22 :11a ----,7,--7,- :---7,3-.)-;7,, . a q.. f) # '1' 7w Y: ♦: •.�'•'.I I'{v ..•Zl . •}.. •f• ..�.•LM.,�.r'7,---.y-. !..,---.-A•.; .- •w.l ,y.'T' T,.�♦.•... - -av ♦ G h' 1' 4 M t7 . i. J• .f t' S r� 4 GUIDELINES FOR THE CITY OF MIAMI BEACH SINGLEFAMILY REHABILITATION PROGRAM SECTION I - DEFINITIONS City - The City of Miami Beach. Obligations of an applicant are obligations owed to the City of Miami Beach; however, dealings will be with the City representatives as indicated in these Guidelines. Community Development Division - The Division of the City of Miami Beach Department of Economic and Community Development designated to administer funds received from HUD. Eligible Costs - Those rehabilitation costs, building permit or related fees as required by the work write-up to carry out the intended rehabilitation of the property, and as further defined in Section II. Family - An individual_ or two or more persons related by blood, marriage, or operation of law who occupy the same dwelling unit. General Property Improvements (G. P. I. ) - Rehabilitation work to improve the condition of the property beyond the Minimum Rehabilitation Standards. Grant - Provision of public funds requiring no repayment. Hazardous Condition - A code violation that is an immediate, serious threat to the health and/or safety of the occupant of a dwelling unit. Housing Quality Standards - HUD's Housing Quality Standards (see Section III) . HUD - The U. S. Department of Housing and Urban Development. Income - The gross amount received from all sources by every person residing in the dwelling including: wages, pension, Social Security, interest, rent, dividends, etc. Loan Review Committee (LRC) - A five member committee appointed by the City, responsible for the review and approval of applications which will receive funding under the Program. Page 1 Low Income Family - A family whose gross income does not exceed 50 percent of the median income for Dade County, as determined by HUD. Minimum Rehabilitation Standards - The minimum living standards that must be achieved for a single-family dwelling receiving assistance under this Program, consisting of the City' s Property Maintenance Standards and the HUD' s Housing Quality Standards. (Emphasis must be given to exterior improvements) . Moderate Income Family - A family whose gross income is between 51 percent and 80 percent of the median income for Dade County, as determined by HUD. Owner-Occupant - The title holder to a residential property containing one dwelling unit, in which the owner resides on a full time basis. Property Maintenance Standards - The City of Miami Beach Property Maintenance Standards. Rehabilitation - The repair of a structure or facilities in connection with a structure, and may include the provision of sanitary or other facilities that are required by the Minimum Rehabilitation Standards. Residential - A property used only for dwelling purposes. No commercial or office activities are allowed on the property. Single Family Dwelling - A detached or attached residential unit designed for and occupied exclusively as a place of permanent habitation for one family, and contains a living room, kitchen area, bathroom(s) and bedroom(s) . Target Area - An administratively designated geographic part of the City in which Community Development Block Grant activities are being carried out and which contain slums and/or blighting conditions (see Target Area Map) . Work write-up - The itemization of all rehabilitation work to be done on a property, including such directions and specifications for workmanship and materials as may be necessary for the job to be bid and constructed properly. Page 2 SECTION II -DESCRIPTION OF PROGRAM 1 . Purpose of the Program - To provide financial assistance to improve the physical appearance and the quality of housing in the North Shore Area of the City of Miami Beach (see target area mar) by enabling low and moderate income owner occupants, to rehabilitate their single-family homes. The property must be in need of rehabilitation in order to meet the Minimum Rehabilitation Standards as defined herein. The applicant must be an individual or family who owns and occupies a single family dwelling. The applicant must be either a low or moderate income family as defined herein. 2 . Type of Assistance - Approved applicants will receive assistance in the form of direct grants. The assistance will be based on income of all family members residing in the dwelling, and the extent of rehabilitation required: a. A Low Income Family will be eligible to receive a grant equal to one hundred percent (100%) of the total of the eligible costs of rehabilitation (See Page 4) . b. A Moderate Income Family will be eligible to receive a grant equal to eighty percent (80%) of the total of the eligible costs of rehabilitation (See Page 4) . c. In no case will the grant exceed $10, 000 per Applicant, except that if a roof or major structural work is required, the City may, subject to availability of funds, increase such limit up to $17 , 500. 3 . Source of Funds - Funds will be made available from the Community Development Block Grant Program (CDBG) , as appropriations may be made by the City Commission, and funds become available from HUD. 4 . Conditions of Assistance - As security for these obligations, Applicant will be required to execute a Promissory Note and Mortgage, in form and substance satisfactory to the City. In case where Applicant is married but only one spouse holds title to the property, Applicant' s spouse will be required to execute the Mortgage. Applicants must maintain the property as their principal place of residence for a period of not less than three (3) years from the date of the execution of the Promissory Note and the Mortgage. In addition they must retain title to the property for the same period of time. An applicant who does not comply with this provision will be required to repay the full amount of the assistance. Page 3 5 . Eligibility of an Applicant and a Property a. An Applicant must be the owner occupant of a single- family residential property located in the Target Area. b. The Applicant's income must be no more than 80 percent (80%) of the median income for Dade County. c. The Applicant shall have evidence of title to the property to be rehabilitated. d. The Applicant shall have paid all due city, county, federal, and school taxes. e. The property must not have received assistance for housing rehabilitation from the City, Dade County or the U.S. Department of Housing and Urban Development during the previous five years. f. The property must need repairs to meet the Minimum Rehabilitation Standards. g. The property shall have no rental units. h. The property must conform to the requirements of the City Zoning Ordinance. 6. Eligible Costs a. The cost of rehabilitation necessary to bring the property up to meet the Minimum Rehabilitation Standards. b. The cost of rehabilitation to correct or remove incipient violations including all physical conditions of the property which, if not repaired, would deteriorate into actual violation of the Minimum Rehabilitation Standards or the South Florida Building Code within two years. c. The cost of general property improvements (G.P. I. ) . Such work shall not be the major focus of the grant, and shall be less than 40% of the cost of rehabilitation. G. P. I . ' s may be included only if the minimum improvements required under a) and b) are satisfied first. d. The cost of rehabilitation to convert a property, if allowed by the City Zoning Ordinance, by increasing the number of rooms on the property. e. The cost of building permits and related fees required to carry out the proposed rehabilitation work, including but not limited to architectural and engineering fees. Page 4 7 . Ineligible Costs a. Any items not meeting the eligible cost requirements, as defined in Section 6. b. Work so extensive as to be equivalent to new construction or reconstruction of the property. c. Excessive G. P. I . ' s which are inconsistent with the G. P. I . requirements stated above. (However, the owner may provide the difference with own funds) . d. The repair or construction of swimming pools. e. Materials, fixtures, equipment, or landscaping of a type or quality which substantially exceeds that customarily used in the City for properties of the same general type as the property to be rehabilitated. (However, the owner may provide the difference between the cost of such materials, fixtures, etc. , as he/she desires and as the Program will allow, with own funds) . f. Any reimbursement for work done prior to the approval of the grant, or contracted for, either verbally or in writing, prior to the approval of the grant by the City. g. Payment of any lien or judgement against the property including back taxes. 8 . Disbursement of the Grant - The City will disburse the grant funds during the construction phase, based on the percentage of work completed and expenditures incurred, provided it is in compliance with the City' s Building Department requirements and upon receipt of proof of no outstanding liens. 9 . Accomplishment of Work - The Applicant must agree to carry out all rehabilitation work through written contract let by him/her with the prior concurrence of the City. The Applicant may enter into such contracts by negotiation without advertising or competitive bidding. 10. Inspection of Work - Representatives of HUD or the City shall have the right to examine and inspect the work, and all contracts, materials, equipment, payrolls, and conditions of employment pertaining to the work, including all relevant data and records. 11. Warranty Repairs - All rehabilitation contracts must carry a warranty repair from the contractor for one year, to correct such defects due to faulty materials, equipment or workmanship. Page 5 12 . Ineligible Contractors - The Applicant must agree not to award any contract to any contractor or subcontractor, whom the Applicant has been advised is unacceptable for federally assisted contracts by HUD, or the City. 13 . Interest of City Personnel - No member of the City Administration, City Boards or City Committees, shall have any interest in the proceeds of this program. 14 . Applicable Laws and Regulations - The Applicant must agree to abide by all applicable City, State and Federal laws and regulations, including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards. Page 6 SECTION III - HOUSING QUALITY STANDARDS Housing rehabilitated in this Program shall meet both the Performance Requirements and the Acceptability Criteria, set forth in this Section. 1. Sanitary Facilities a. Performance Requirement. The dwelling unit shall include its own sanitary facilities which are in proper operating condition, can be used in privacy, and are adequate for personal cleanliness and the disposal of human waste. b. Acceptability Criteria. A flush toilet in a separate, private room, a fixed basin with hot and cold running water, and a shower or tub with hot and cold running water shall be present in the dwelling unit, all in proper operating condition. These facilities shall utilize an approved public or private disposal system. 2 . Food Preparation and Refuse Disposal a. Performance Requirement. The dwelling unit shall contain suitable space and equipment to store, prepare, and serve foods in a sanitary manner. There shall be adequate facilities and services for the sanitary disposal of food wastes and refuse,_ _ including facilities for temporary storage where necessary (e.g. garbage cans) . b. Acceptability Criteria. The unit shall contain the following equipment in proper operating condition: cooking stove or range and a refrigerator of appropriate size for the unit and a kitchen with hot and cold running water. The sink shall drain into an approved public or private system. Adequate space for the storage, preparation and serving of food shall be provided. 3 . Space and Security a. Performance Requirement. The dwelling unit shall afford the family adequate space and security. b. Acceptability Criteria. A living room, kitchen area, and bathroom shall be present; and the dwelling unit shall contain at least one sleeping or living/sleeping room of appropriate size for each two persons. Exterior doors and windows accessible from outside the unit shall be lockable. 4 . Thermal Environment a. Performance Requirement. The dwelling unit shall have and Page 7 be capable of maintaining a thermal environment healthy for the human body. b. Acceptability Criteria. The dwelling unit shall contain safe heating and/or cooling to each room in the dwelling unit appropriate for the climate to assure a healthy l iv i na environment. Unvented room heaters which burn gas, oil or kerosene are unacceptable. 5 . Illumination and Electricity a. Performance Requirement. Each room shall have adequate natural or artificial illumination to permit normal indoor activities and to support the health and safety of occupants. Sufficient electrical sources shall be provided to permit use of essential electrical appliances while assuring safety from fire. b. Acceptability Criteria. Living and sleeping rooms shall include at least one window. A ceiling or wall type light fixture shall be present and working in the bathroom and kitchen area. At least two electrical outlets, one of which may be an overhead light, shall be present and operable in the living area, kitchen area, and each bedroom area. 6 . Structure and Materials a. Performance Requirement. The dwelling unit shall be structurally sound as not to pose any threat to the health and safety of the occupants and so as to protect the occupants from the environment. b. Acceptability Criteria. Ceilings, walls, and floors shall not have any serious defects such as severe bulging or leaning, large holes, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or other serious damage. The roof structure shall be firm and the roof shall be weathertight. The exterior or wall structure and exterior wall surface shall not have serious defects such as serious leaning, buckling, sagging, cracks or holes, loose siding, or other serious damage. The condition and equipment of interior and exterior stairways, halls, porches, walkways, etc. shall be such as not to present a danger of tripping or falling. Elevators shall be maintained in safe and operating condition. 7 . Interior Air Quality a. Performance Requirement. The dwelling unit shall be free of pollutants in the air at levels which threaten the health of the occupants. Page 8 b. Acceptability Criteria. The dwelling unit shall be free from dangerous levels of air pollution from carbon monoxide, sewer gas, fuel gas, dust, and other harmful air pollutants. Air circulation shall be adequate throughout the unit. Bathroom areas shall have at least one openable window or other adequate exhaust ventilation. 8 . Water Supply a. Performance Requirement. The water supply shall be free from contamination. b. Acceptability Criteria. The unit shall be served by an approved public or private sanitary water supply. 9 . Lead Based Paint a. Performance Requirement. The dwelling unit shall be in compliance with HUD Lead Based Paint regulations, 24 CFR Part 35, issued pursuant to the Lead Based Poisoning Prevention Act, 42 U.S.C. 4801. b. Acceptability Criteria. Same as Performance Requirement. 10. Access a. Performance Requirement. The dwelling unit shall be usable and capable of being maintained without unauthorized use of other private properties, and the building shall provide an alternate means of egress in case of fire. b. Acceptability Criteria. The dwelling unit shall be usable and capable of being maintained without unauthorized use of other private properties. The building shall provide an alternate means of egress in case of fire (such as fire stairs or egress through windows) . 11. Site and Neighborhood a. Performance Requirement. The site and neighborhood shall be reasonably free from disturbing noises and reverberations and other hazards to the health, safety, and general welfare of the occupants. b. Acceptability Criteria. The site and neighborhood shall not be subject to serious adverse environmental conditions, natural or manmade, such as dangerous walks, steps, instability, flooding, poor drainage, septic tank back-ups, sewage hazards or mudslides; abnormal air pollution, smoke or dust; excessive noise, vibration, or vehicular traffic; excessive accumulations of trash, Page 9 vermin or rodent infestation; or fire hazards. 12 . Sanitary Condition a. Performance Requirement. The unit and its equipment shall be in sanitary condition. b. Acceptability Criteria. The unit and its equipment shall be free of vermin and rodent infestation. 13 . Energy Efficient Performance Requirement. Caulking and weatherstripping are required as energy conserving improvements. Other appropriate energy conserving improvements such as insulation and storm windows must be accomplished as part of the rehabilitation under this Program, to the extent that the Program determines these improvements to be practicable, cost effective and financially feasible. Page 10 SECTION IV -PROCESSING AN APPLICATION 1. Any interested property owner must first request an interview with the Community Development Division, and bring the documentation listed below. A copy of the documents will be made and held in confidence in a file. The information needed will be used to determine the eligibility of the applicant and the type/level of assistance. a. Deed to property. b. Most recent property tax bill, general tax and school tax and indication of payment. c. For all working members of the family: - the two (2) most recent payroll stub which indicates gross salary and deductions; - last two (2) years of tax returns, including all schedules and attachments. d. Year end mortgage statement, if property is mortgaged. e. Homeowners Insurance or Fire Hazard Insurance Policy. In addition, Flood Insurance, if required. f. Three (3) most recent Florida Power & Light bills. 2 . If a determination of eligibility is made, then the City will assist the Applicant, who must provide the following: a. Completed application form. b. Abstract of title or title report. c. Credit reports on the Applicant. d. Work write-up, describing the proposed rehabilitation. e. Itemized cost estimate for the proposed rehabilitation. f. Plans to scale, if required. 3 . The Applicant's documents will be reviewed by the Community Development Division, and then the City's Loan Review Committee (LRC) . If the application is approved by the LRC, the amount of funds will be committed by the City, and arrangements will be made to coordinate the execution of the grant documents. 4 . The rehabilitation phase will then follow. Page 11 ZZ abed 3JzU i'-110N L9 C I 111A r m A t HILL 1 ' FUSS / H1L8 K!IY Z!J2111s - A NOIZOaS GRANT AGREEMENT THIS AGREEMENT entered into this day of 199 , by and between , hereinafter referred to as"Owner",who resides and is the legal owner of the property located at , Miami Beach, Florida, hereinafter referred to as "Property", and the City of Miami Beach, a Florida municipal corporation, having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter referred to as "City": WITNESSETH: WHEREAS, the City has established a Single-Family Rehabilitation Program, hereinafter referred to as "Program", designed to provide financial assistance to property owners of substandard single-family residential structures within the City of Miami Beach, Florida, for the purpose of rehabilitating said structures; and WHEREAS,the policies of said program are set forth in the Guidelines for the City of Miami Beach Single-Family Rehabilitation Program hereinafter referred to as "Guidelines", adopted by the City Commission on April , 1991, are deemed incorporated by reference and made a part of this Agreement; and WHEREAS,Owner has properly submitted an application for grant funds and agreed to rehabilitate said Property in accordance with the Program, and such application was approved by the City's Loan Review Committee on 199 ; and WHEREAS, it is acknowledged and agreed that funds utilized for payment to Owner derive from Community Development Block Grant funds appropriated to the City by the U.S. Department of Housing and Urban Development under the Housing and Community Development Act of 1974, as amended, for the uses and purposes herein referred to and accordingly it is acknowledged and agreed that Owner will be in compliance with all applicable provisions of Federal, State and local laws, statutes, rules and regulations as they may apply to this Agreement. NOW, THEREFORE, the parties agree as follows: (1) Any amendments, alterations,or variations,will only be valid when they have been reduced to writing and duly signed by the parties. (2) The City shall have the sole responsibility and obligation of interpreting the intent and purpose of the Program and the Grant documents. (3) Rehabilitation of Property shall be done in accordance with the Guidelines and the applicable codes, ordinances and statutes of the City and Metropolitan Dade County. (4) In consideration for the performance of Owner of its duties and responsibilities set forth in this Agreement, the City agrees to reimburse Owner for rehabilitation expenditures not to exceed the sum of Dollars($ ), as the total of Grant and as further provided for herein. (5) It is understood and agreed by Owner that none of the obligations of the City assumed or created hereunder shall be general obligations of the City and none of the same shall be enforceable against the City generally. Any and all obligations,liabilities and commitments of the City hereunder, shall be limited to the Grant. No other fiscal, legal, equitable or contractual duty or obligation is assumed by the City, and Owner by executing this Agreement so agrees. - 1 - (6) The amount of the Grant indicated herein will be disbursed by the City, after Owner issues a Notice to Proceed, and as follows: Not more often than once a month, a payment equal to ninety percent (90%) of work completed and expenditures incurred in the previous period, provided the work is in compliance with the City's Building Department requirements and upon receipt of proof of no outstanding liens. The remaining (final) ten percent (10%) shall be paid upon the completion, approval and acceptance of the rehabilitation work by all the governmental agencies and authorities having jurisdiction over the Property, and receipt of proof of no outstanding liens. (7) The City will require at the time of closing that a Promissory Note (the "Note) and a Mortgage be executed and filed on the Property, for the amount of the Grant. Such Note and Mortgage will be released at the end of three (3) years provided there are no violations of the conditions set forth therein. (8) It shall be deemed a default of this Agreement in the event that Owner, within three (3) years of the date of the execution of the Note, does any of the following: (1) transfers title of Property, which title is currently vested in Owner either singly or jointly; except to a surviving spouse of Owner, the surviving spouse retaining title for the remainder of the three year period; without first obtaining the express written permission of the City Manager of the City or (2) fails to maintain Property as his/her principal place of residence or (3) a surviving spouse fails to maintain Property as his/her principal place of residence for the remainder of the three years. "Transfer of title" shall mean the sale, lease or other transfer of any kind or nature of Property. (9) If Owner does not comply with any of the requirements of Paragraph 8 above, the City will declare the Grant to be a loan and Owner will pay interest on the unpaid principal amount of the Note from the date thereof, at the rate of percent ( 96) per annum until paid. In the event a loan is declared, both the principal of and interest on the Note will be payable on the first day of each month, in the number of equal installments, including the amortization of both principal and interest calculated as follows: 180 less the number of months which had expired from the date of the Note to the date of written notice from the City that the repayment is required. (10) In the event a loan is declared, it shall be the responsibility of the City to notify Owner of the monthly payment and the date of the first payment. Such payment shall be made in lawful money of the United States at the principal office of the City or at such other place as shall be designated by the City. The City will also notify Owner of the amount of subsequent monthly payments, including the last payment. Owner may prepay at any time all or any part of the principal amount of the Note without the payment of penalties or premiums. All payments on the Note shall be applied first to the interest due on the Note, and then to the principal due on the Note, and the remaining balance shall be applied to late charges, if any. Except as provided in Paragraph 11 below, all monthly installment payments on the Note shall be credited as of the due date thereof without adjustment of interest because paid either before or after such due date. (11) In the event a loan is declared, if Owner fails to pay the interest on or principal amount of the Note when due, and if such failure is existing on the date the next installment payment under the Note becomes due and payable, the unpaid principal amount of the Note,together with accrued interest and late charges, shall become due and payable, at the option of the City without notice to the Owner. Failure of the City to exercise such option shall not constitute a waiver of such default. No default shall exist by reason of nonpayment of any required installment of principal and interest so long as the amount of optional prepayments already made pursuant thereto equals or exceeds the amount of the required installments. - 2 - If the interest on, and principal of, the Note are not paid during the first fifteen days of the calendar month which includes the due date, Owner shall pay the City a late charge of 4% per calendar month, or fraction thereof, on the amount past due and remaining unpaid. If the Note is reduced to judgment, such judgment shall bear the statutory interest rate on judgments. (12) If suit is instituted by the City to recover on the Note, Owner agrees to pay all costs of such collection including reasonable attorney's fees and court costs. (13) For purposes of this Agreement and the documents referenced or incorporated within it, a default shall include without limitation,the following acts or events of Owner,or its agents, servants, employees, or contractors: (a) Owner's failure to(i)commence rehabilitation work within thirty(30)days from the date of the Note, or (ii) diligently pursue and timely complete the rehabilitation of Property within four (4) months from the date of the Note. Rehabilitation work shall be considered to have commenced and be in active progress when, in the opinion of the City's Community Development Division, a full complement of workmen and equipment is present at the site to diligently incorporate materials and equipment into the structure throughout the day on each full working day, weather permitting. (b) Owner's failure to comply with applicable building, fire, life safety, housing and zoning laws, rules, regulations and codes. (c) Owner's default on any of the terms and conditions of the Note or Mortgage. (d) Owner's failure to maintain the insurance required by the City. (e) Owner's breach of this Agreement or of the terms and conditions of the Guidelines or applicable laws, rules and regulations pertaining hereto which are referenced by this Agreement. (f) Claims of lien not satisfied or bonded-off, in accordance with Florida Statutes, within 60 days from the date of filing of any such lien. (14) In the event of a default as set forth in Paragraph 13 above, City shall provide written notice of such default to Owner. If the default is not fully and satisfactorily cured within thirty (30) days of the City mailing notice of such default to Owner, to the full satisfaction of the City Manager or his authorized designee, at the expiration of said thirty (30) day period, this Agreement may, at the City's sole option and discretion, be deemed automatically cancelled and terminated and the City fully discharged from any and all liabilities, duties and terms arising out of or accruing by virtue of this Agreement, including, but not limited to the obligation to fund any unfunded portion of the Grant. (15) In the event of a default and termination as provided above, the City shall additionally be • entitled to bring any and all legal and/or equitable actions which it deems to be in its best interest in Dade County, Florida, in order to enforce the City's rights and remedies against the defaulting party. The City shall be entitled to recover all costs of such actions including a reasonable attorney's fee. To the extent allowed by law, the defaulting party waives its right to jury trial and its right to bring permissive counterclaims against the City in any such action to the extent allowed by law. - 3 - (16) Notices and demands: All notices, demands, correspondence and communications between the City and Owner shall be deemed sufficiently given under the terms of this Agreement if dispatched by registered or certified mail, postage prepaid, return receipt requested, addressed as follows: If to the City: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: City Manager with a copy to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Attention: Community Development Director If to the Owner: Miami Beach, Florida 331 or to such address and to the attention of such other person as the City or the Owner may from time to time designate by written notice to the others. (17) This Agreement will terminate upon disbursement of the final amount of the Grant, as set forth in Paragraph 6 above, and the City will then be automatically discharged from any and all obligations, liabilities and commitments hereunder to Owner, or any other person or entity but Owner shall continue to be bound by the Note and Mortgage until the terms thereof are satisfied. Owner for consideration of One Dollar ($1.00) and other good, valuable, separate and distinct consideration, receipt of which is hereby acknowledged, hereby agrees to save and hold harmless, indemnify and protect the City, its officers and employees from any and all obligations, liabilities, commitments, actions, claims, causes of action, suits or demand arising or accruing by virtue of this Agreement. IN WITNESS WHEREOF, Owner and the City have caused this Agreement to be duly executed the day and year first above written. WITNESS: OWNER CITY OF MIAMI BEACH BY: MAYOR ATTEST: CITY CLERK - 4 - ORICINAL RESOLUTION NO. 9'-20272 Approving and adopting the single-family rehabilitation program and authorizing the Mayor and City Clerk to execute grant agreement for the program.