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RESOLUTION 92-20558 IPPPF- 1 s ' s . r RESOLUTION N° 92-20558 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND ADOPTING THE REVISED GUIDELINES FOR THE MULTI-FAMILY REHABILITATION PROGRAMS AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE ALL AGREEMENTS AND RELATED DOCUMENTS FOR THE PROGRAMS. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: WHEREAS, the City Commission on December 20, 1989, reviewed and approved Guidelines for the Multi-Family Rehabilitation Programs; and WHEREAS, the U. S. Department of Housing and Urban Development has now approved the HOME Program Description submitted by the City; and WHEREAS, a need exists to revise these Guidelines, in order to provide an alternative method of assistance through a new Matching Grant Program, and to incorporate the additional requirements under the HOME Program; and WHEREAS, the City' s Loan Review Committee reviewed and approved these revised Guidelines and recommended its adoption by the City Commission; and WHEREAS, the City Administration has revised the Guidelines and recommends their approval and adoption. NOW THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Guidelines for the City of Miami Beach Multi-Family Rehabilitation Programs, as revised, are hereby approved and adopted. BE IT ALSO DULY RESOLVED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and the City Clerk of the City of Miami Beach are hereby authorized and directed to execute all necessary agreements and related documents on behalf of the City of Miami Beach, Florida, with private lending institutions and property owners, for projects approved by the City' s Loan Review Committee. PASSED AND ADOPTED THIS 22NDD JULY, 1992 . aft .YOR ATTEST: ` FORM APPROVED ----kelt' 4 xatait'cirxda,i/se LEGAL DEPT. CITY CL IV TC/Oaty By ; 'W Date 7// 1`Z- , l t • 1 1 CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 1466-92- TO: 6- 2TO: Mayor Seymour Gelber and DATE: July 2 2 , 1992 Members of the City Commission FROM: Roger M. Carl City Manager 4itt&/ ---- SUBJECT: REVISION OF THE GUIDELINES FOR THE CITY'S MULTI-FAMILY REHABILITATION PROGRAMS Administration Recommendation: It is recommended that the Guidelines for the City of Miami Beach Multi-Family Rehabilitation Programs, as revised, be approved and adopted. It is also recommended that the Mayor and the City Clerk be authorized to execute the required agreements on behalf of the City, with private lending institutions and property owners, for all those projects that are reviewed and approved by the City' s Loan Review Committee. Background: For the last 9 years, the City's Multi-Family Rehabilitation Programs, administered by the Department of Economic and Community Development (E&CD) , have been providing interest subsidy payments on loans to upgrade the existing rental housing stock in Miami Beach. The interest on the loans is subsidized with federal Community Development Block Grant funds, or Rental Rehabilita ion Program funds, received from the U. S. Department of Housing and Urban Development (HUD) . To date, more than 40 buildings containing over 980 rental units have been assisted. Federal funds in the amount of 5. 7 million dollars have been invested which has leveraged 19 . 2 million dollars, a leverage ratio of 3 . 3 : 1. In discussion with developers over the last few months and in attempting to apply the multi-family programs to the North Beach area, we have found that the current interest subsidy program lacks the flexibility necessary for some projects. In some cases, particularly in North Beach, there is insufficient equity for the owners to obtain secondary financing. In other cases, owners can not obtain conventional financing on decent terms. As an alternative, we are proposing to add a Matching Grant Program that will provide a match of up to $7 , 500 per unit, but not more than 50% of the actual cost of eligible rehabilitation work. This new program will also provide the opportunity to assist in the financing of projects that will facilitate affordable housing to first-time homebuyers. The matching grant program, AGENDA ITEM :—L=E DATE -7 -229 COMMISSION MEMO JULY 22 , 1992 PAGE 2 as presented in the guidelines, is tailored after the successful North Beach Facade Renovation Program which is administered by the City's E&CD Department. Additionally, HUD has now approved the City's Program Description for funding under the new HOME Investment Partnership Program. As a result, the guidelines have been revised in order to identify this additional HOME funding, as well as incorporate the applicable regulatory requirements.The guidelines also reflect minor revisions to the Loan Review Committee (LRC) section, including the appointment of the City's Finance Director to fill the committee position previously designated for the Economic and Community Development Director. This is being changed in order to allow the E&CD Director greater latitude in dealing directly with potential developers. The Loan Review Committee is the five member City-appointed body responsible for the review and approval of applications. Analysis: The Multi-Family Rehabilitation Interest Subsidy Program has been an important vehicle in the revitalization of the South Beach area. In other areas of the City, however, and more specifically in the North Shore area, the lending community has found it extremely difficult to finance the rehabilitation of multi-family properties and a more flexible subsidy, such as the Matching Grant Program is recommended. The Economic and Community Development Department, the City's Loan Review Committee, and HUD have worked closely together during the last few months, in order to make the necessary revisions and changes to these Guidelines. The LRC adopted these revisions and has recommended the adoption of such. Conclusion: As a result of the assistance that the City has provided through the multi-family rehabilitation programs administered by the E&CD Department: important residential and commercial areas have been revitalized, the City's tax base has been increased, and the number of police-related incidents which occurred in boarded-up properties has declined. Although the existing programs have proven successful, there is a need for greater flexibility in order to undertake additional projects. Therefore, we recommend that the Guidelines be revised, in order to refine the current procedures, to provide for a new matching program, and to incorporate the additional funding and new requirements under the HOME Program. RMC/hms 49 . , t , . GUIDELINES FOR THE CITY OF MIAMI BEACH MULTI-FAMILY REHABILITATION PROGRAMS TABLE OF CONTENTS CHAPTER PAGE I Definitions 1 II The Interest Subsidy Program 2 Section II - A Qualification Requirements of the Property and the Applicant 3 Section II - B Eligible Costs in a Loan to be Subsidized 4 Section II - C Terms and Conditions for the Interest Subsidy Program 5 Section II - D Processing Applications and Disbursing Funds 7 Section II - E Defaults 11 III The Matching Grant Program 12 Section III - A Qualification Requirements of the Property and the Applicant 13 Section III - B Eligible Costs in a Matching Grant 14 Section III - C Terms and Conditions for a Matching Grant 15 Section III - D Processing Applications and Disbursing Funds 18 Section III - E Defaults 21 IV Loan Review Committee 22 V Exhibits "A" - Subsidy Agreement 24 "B" - Grant Agreement 31 "C" - Other Federal Requirements 35 Words underlined are additions 4 • CHAPTER I DEFINITIONS 1. General In construing the provisions of these Multi-Family Rehabilitation Guidelines,words and terms not defined herein shall be interpreted in accordance with their normal dictionary meaning or in the absence thereof, customary usage. 2. Definitions The following are definitions of various terms as used in these Guidelines: a. Affordable rents -In the case of low and moderate income households,this means that rents do not exceed the Fair Market Rents as prescribed by HUD and, if applicable, under 24 CFR Part 92. b. City- The City of Miami Beach. Obligations of either an applicant or a Lender, are obligations owed to the City of Miami Beach;however,dealings will be with the City representatives as indicated in these Guidelines. c. Codes and Ordinances -Applicable codes, ordinances and statutes of the City and Dade County including, but not limited to, the South Florida Building Code, the Zoning Ordinance, and the Property Maintenance Standards. d. Condominium - A system of ownership of individual units in a multi-unit structure, combined with joint ownership of commonly used property (sidewalks, hallways, stairs, etc.). e. Economic and Community Development Department (ECDD) - The Department of the City designated to administer federal funds received from HUD, and to administer these Guidelines. f. Grant - An outright disbursement of federal funds requiring no repayment. g. HUD - The U. S. Department of Housing and Urban Development. h. Lender - Lender shall be defined as an institution with one or more offices in Dade County and who agrees to make a loan under these Guidelines, in consideration for receiving subsidy funds for such purpose.It may be any federal or state regulated banking institution including federal or state chartered commercial banks, mutual savings banks,savings and loan associations,municipal or publicly constituted pension trusts,insurance companies or corporations,credit unions,or other financial institutions authorized to transact business in the State of Florida and which customarily provides service or otherwise aids in the financing of mortgages located in the State of Florida,and meets the minimum capital requirements as promulgated by its respective supervisory board. i. 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. j. Low and moderate income households - Means the total members in a household, whose combined income does not exceed 80% of the median income for the area, as determined by HUD. k. Multi-Family Residential Property - A property that after rehabilitation will contain a minimum of five (5) or more residential living units, and where all the living units will meet applicable codes and standards, including a minimum area of 400 square feet for each unit. 1. Program - The City's multi-family rehabilitation programs referenced in these Guidelines as the Interest Subsidy Program or the Matching Grant Program. Words underlined are additions - 1 - CHAPTER II INTEREST SUBSIDY PROGRAM 1. General The City's Interest Subsidy Rehabilitation Program is designed to provide interest subsidies, resulting in low interest rehabilitation loans top roperty owners of multi-family residential properties, in order to upgrade their buildings.The Cit utilizingfederal funds, will subsidize the interest rates on rehabilitation loans made by lenders which agree to Y� make such loans under these Guidelines. 2. Interest Rates The interest rate on the loans will be subsidized with federal funds received from HUD, as follows: the Community Development Rehabilitation Program and the HOME Investment Partnerships Program offer a six percent (6%) effective rate;the Rental Rehabilitation Program offers a four percent (4%) effective rate.The LRC may,from time to time, revise these rates. 3. City's Review of Applications The ECDD shall make an initial determination as to whether or not the applicant and the property are eligible for the interest subsidy program as set forth in these Guidelines. The application will then be reviewed by the LRC.If the LRC approves the application,the amount of interest subsidy will be estimated.This calculation will be based on the present value of the subsidy required to buy-down the interest rate on the loan,which amount of money will be paid to the Lender on behalf of the applicant, and to be deposited in an interest bearing escrow account,with the Lender.This amount is a preliminary estimate since the applicant has not yet secured the loan terms and conditions from the Lender. The ECDD will then issue an interest subsidy commitment, and a reservation of funds will be made for the project. Only applications which have been reviewed and approved by the LRC shall be eligible for a City of Miami Beach interest subsidy. 4. Lender's Commitment on the Project Applicants must apply to a Lender(s) of their choice to obtain a funding commitment for the project, and provide them with the same information given to the City. The Lender will, if feasible, issue a commitment letter to the applicant setting forth the terms and conditions of the loan. It shall be the applicant's responsibility to bear all costs necessary to submit a loan application to any Lender and to pay for any cost incurred by the applicant if the loan application is not approved by a Lender and/or the City. 5. Final Calculation of the Interest Subsidy Upon receipt of an acceptable funding commitment from a Lender, the ECDD will make a final calculation of the interest subsidy required.This calculation will be based on the present value of the subsidy required to buy down the interest rate on the loan. If this final calculation is within ten tercent 10'0 of the amount a e•roved b the LRC no further LRC action will be required. 6. Loan Closings Lenders shall be responsible for the preparation and execution of all loan closing documents, and shall notify the applicant and the City of the date and location of the closing. All closings will meet the normal and standard requirements for loans of a similar nature, as established by the Lender and/or its attorneys. Words underlined are additions - 2 - SECTION II -A Qualification Requirements of the Property and the Applicant - Interest Subsidy 1. General This section sets forth qualification requirements as to the property and the eligibility requirements of an applicant Th s for an interest subsidy. 2. Property Qualifications Any property to be considered for an interest subsidy, must meet the following: a. Thep Pro erty should be located, preferably, in one of the target areas, as designated by the City; and b. Thero erty must be in need of rehabilitation to comply with the applicable codes and ordinances as determined by a City inspection;p p in ectiand , c. Thep p Y ro ert must be physically and financially feasible for such rehabilitation based primarily on the market potential of the property after rehabilitation, and its projected income sufficient to service the debt after all operating expenses for the property are paid; and d. The property must contain, or the application must propose, a minimum of five (5) living units, each with a minimum of 400 square feet; and e. The property has not been previously assisted under the City's Interest Subsidy or Matching Grant Programs; and f. At the time the application for interest subsidy is submitted to the ECDD, the property must be vacant. In the event that the property is occupied, the ECDD may, on a case by case basis, survey it to determine relocation needs and its feasibility. 3. Eligibility of the Applicant The applicant requesting an interest subsidy must meet the following eligibility criteria: a. The applicant must have fee simple title to, or a firm contract to purchase fee simple title to the subject property. In the case of a purchaser, the applicant must be able to demonstrate a financial commitment to purchase the property as evidenced by a sales contract or similar agreement with the present owner of the building, showing at the time of the application, control of the property.At loan closing, the applicant must be in possession of the property; and b. The applicant must demonstrate to the satisfaction of the City, its ability to provide any additional funds as needed over and above the amount of Lender's commitment to assure completion of the rehabilitation work so that the building being rehabilitated will,at a minimum, comply with the applicable codes and ordinances. Words underlined are additions - 3 - • SECTION II - B Eligible Costs in a Loan to be Subsidized General An interest subsidy for a rehabilitation loan may be made only with respect to a property which needs to be brought up to applicable codes and ordinances.However,within the limitations of the loan,the loan may also include amounts for purposes other than meeting those requirements. 2. Eligible Costs In addition to those costs for rehabilitation to make the property conform to the applicable codes and ordinances, a rehabilitation loan to be subsidized may include funds to cover the costs described below. a. Includable costs for labor and materials should be considered in the following order of priority: (1) Incipient Violations - Improvements to correct violations and/or conditions which may, in the opinion of the City, develop into hazardous conditions and/or code violations. (2) Good and Readily Maintainable Condition - Improvements necessary to put the property and facilities in a condition which requires a minimal amount of maintenance, and when appropriate, improvements which conserve energy. (3) General Property Improvements - Improvements which are in addition to those required in applicable codes and ordinances.These improvements may be considered appropriate,provided they are economically practical and in the public's interest. Such costs shall not exceed twenty percent (20%) of the total rehabilitation costs. b. Reasonable fees paid for professional services in preparing work write-ups,cost estimates,working drawings, specifications, construction contract documents, supervision and other designated tasks. c. An amount not to exceed ten percent (10%) may be included in the loan as a contingency for any unforseen includable construction costs. d. A reasonable and standard fee for loan points over and above the per annum interest rate charged by Lender. e. Costs attributable directly to the preparation of loan instruments and any other out-of-pocket costs incidental thereto, including, but not limited to: fees for recording and filing, credit reports, photographs, surveys, inspection fees, abstracting and title reports, appraisal fees, current accruals, and legal fees. 3. Costs Not to be Included The following costs cannot be included in the amount of the loan to be subsidized: a. Refinancing of existing mortgages. b. Purchasing of the property (does not apply to HOME funded projects). c. New construction or expansion of the size of the structure. d. Purchase, installation or repair of furnishings. e. Delinquent taxes,insurance payments,liens,charges and assessments.It shall be the applicant's responsibility to bring these payments current and to satisfy in full any liens, charges or assessments against the property prior to loan closing. Words underlined are additions - 4 - SECTION II - C Terms and Conditions for the Interest Subsidy Program 1. General This section sets forth the City of Miami Beach required terms and conditions for an interest subsidy. 2. Minimum and Maximum Loan Amounts The minimum loan amount to be subsidized by the City shall include all costs necessary to bring the subject property into compliance with applicable codes and ordinances. However, the minimum loan amount shall be at least $3,000 per unit in rehabilitation work and not less than $25,000 in total. The maximum loan amount shall be limited to the amount of funds available for the Program, and the feasibility of the project. 3. Points of Agreement The applicant shall agree, as required by the related documents, to abide by all applicable City, State and Federal regulations, and the following terms and conditions: a. Completion of Work - Assure that the rehabilitation work shall be carried out promptly and efficiently through a written contract let with the concurrence of the City, and completed within a certain time as established by the City. In case of construction cost overruns, any additional funds needed to complete the project must be provided by the applicant and/or the Lender, but in no way will the City be obligated to subsidize the additional amounts. Under the Program, the applicants may select their own contractor and do not have to use competitive bidding procedures. Construction draws to the contractor shall be established by the Lender. b. Ineligible Contractors - The applicant may not award any contract for rehabilitation work to be paid for in whole or in part with the proceeds of the loan to be subsidized, to any contractor or sub-contractor,who, at the time, is ineligible under the provisions of any applicable regulations issued by the Secretary of Labor or the Federal Government, to receive an award of such contract. c. Federal Labor Standards -Among these is the requirement that all laborers must be paid at wages not less than those contained in the wage determination of the Secretary of Labor for each classification of work (Davis Bacon Act). Any property containing eight (8) or more units under the Community Development Program, or any property containing twelve (12) or more units under the Rental Rehabilitation Program or the HOME Investment Partnerships Program, must comply with all Federal Labor Standards provisions. d. Lead-based Paint Requirements - Federal regulations require that, in the event lead-based paint is found in a property assisted under the Program, appropriate testing and abatement procedures must be undertaken by the applicant. e. Access to Property and Records- Designated personnel of the City and HUD shall have the right to inspect the rehabilitation work, contracts, materials, equipment, payrolls and all records with respect to the project. f. Applicant's Inspector - The applicant shall be required to retain the services of a qualified inspector, i.e., licensed architect or professional engineer, who must periodically inspect the project and certify to the ECDD, on a monthly basis, the percentage of the work completed in accordance to plans and specifications. The American Institute of Architect's standards or equivalent, must be used for such certifications. In case the Lender provides for such services (inspections and certifications), the applicant may be exempt, at the discretion of the City, from this requirement. The applicant is solely responsible for compensating this inspector for any services provided. Words underlined are additions - 5 - • g. Insurance - Maintain hazard, liability and flood insurance on the property in accordance with the requirements of the Lender and the City. h. Benefit to Low and Moderate Income Persons-The required minimum number of units,after rehabilitation, that must be occupied by low and moderate income persons at affordable rents is: fifty-one percent (51%) under the Community Development Program, or seventy percent (70%) under the Rental Rehabilitation Program. This requirement will be enforced for three (3) years from the date when a Final Certificate of Occupancy is issued. Projects funded under the HOME Investment Partnerships Program must comply with the affordability requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). i. Reporting- To submit to the ECDD the required reports on the property and its occupants, in the form and substance acceptable to the City. j. Maintenance of the Property - To keep dwelling units in the project in good condition and repair, fully tenantable and not to remove or demolish any dwelling unit thereon; to complete or restore promptly and in good and workmanlike manner, any dwelling unit which may be damaged or destroyed thereon and to pay when due, all claims for labor performed and materials furnished to the project. To permit HUD and the City to inspect the property and all records during the term of the Subsidy Agreement. k. Conflict of Interest-Allow no member of the City Administration, City employee,public official or member of the Federal, State, County or City Government, who exercises any functions or responsibilities in connection with the administration of the Program or approval of the project, to have any interest, direct or indirect, in the proceeds of the interest subsidy payment, or in any contract entered into by the applicant for the performance of the work financed, in whole or in part, with the proceeds of the rehabilitation loan. 1. Transfer of the Property-If the property is sold within three (3) years after a Final Certificate of Occupancy is issued, the full amount of the Interest Subsidy will become due and payable to the City. The City may, at its option, declare the indebtedness to be a loan, which repayment terms and conditions will be set by the Loan Review Committee. Beyond the three year requirement, and upon transfer of the property, the remaining balance of the interest subsidy payment deposited by the City with the Lender will become due and payable in full, unless a prior written consent is obtained from the City Manager, upon prior approval by the LRC, and as further set forth in the Subsidy Agreement. 4. Additional Requirements for Rental Rehabilitation Program Projects a. Maximum Interest Subsidy- The amount of the Rental Rehabilitation Subsidy for a project will not exceed fifty percent (50%) of the total rehabilitation cost, or the maximum per unit average based on bedroom size as determined by HUD. b. Use of Rental Rehabilitation Funds for Housing for Families - Any application for Rental Rehabilitation Program funds must propose that at least thirty percent (30%) of the rehabilitation cost will be used to rehabilitate units that will contain two or more bedrooms. c. Affirmative Marketing - The applicant must agree to provide information and otherwise attract eligible persons from all racial, ethnic, and gender groups in the housing market area to the available units in the project; and, execute an Affirmative Marketing Agreement with the City. d. Condominium Conversion - The applicant must agree not to convert the units in the property to condominium ownership for at least ten (10) years from the date when a Final Certificate of Occupancy is issued.Any violation of this requirement may cause, at the City's option,in the entire amount of the interest subsidy payment being returned to the City. 5. Additional Requirements for HOME Investment Partnerships Program Projects Pro'ects funded under the HOME Investment Partnershi is Pro ram must also com.1 with all the re uirements set forth under tart 92 of title 24 of the Code of Federal Re_ulations 24 CFR Part 92 Words underlined are additions - 6 - SECTION II - D Processing Applications and Disbursing Funds - Interest Subsidy 1. Application Submission Requirements: An application for an interest subsidy under the Program, must include the following: a. Completed application form; and b. Proof of ownership (deed or sales contract); and c. Organizational documents (if other than individual); and d. Description of proposed work-A written description of the rehabilitation work intended to be accomplished to restore the property, identifying each item and setting forth methods to correct the deficiencies; and e. An itemized cost estimate showing the probable construction cost for each deficiency to be corrected; and f. Photographs of the property, to include exterior shots of all sides of the building, and interior shots of the units which exhibit the need for work to be performed and the specific areas to be improved; and g. Two (2) sets of to-scale plans of the proposed project that include: site plan, floor plans, elevations, and a survey; and h. A non-refundable application fee of$250. 2. Review of Applications The ECDD will review the application documents and make an initial determination as to whether or not the applicant and the property are eligible for the interest subsidy program as set forth in these Guidelines. The application will then be reviewed by the LRC.If the LRC approves the application,the amount of interest subsidy will be estimated.This calculation will be based on the present value of the subsidy required to buy-down the interest rate on the loan, which amount of money will be paid to the Lender on behalf of the applicant, and to be deposited in an interest bearing escrow account,with the Lender.This amount is a preliminary estimate since the applicant has not yet secured the loan terms and conditions from the Lender. The ECDD will then issue an interest subsidy commitment, and a reservation of funds will be made for the project. Only applications which have been reviewed and approved by the LRC shall be eligible for a City of Miami Beach interest subsidy. 3. Lender's Commitment on the Project Applicants must apply to a Lender(s) of their choice to obtain a funding commitment for the project.The Lender will, if feasible, issue a commitment letter to the applicant setting forth the terms and conditions of the loan. It shall be the applicant's responsibility to bear all costs necessary to submit a loan application to any Lender and to pay for any cost incurred by the applicant if the loan application is not approved by a Lender and/or the City. Reservation of City funds for approved applications will expire sixty(60) days from the date it was approved by the LRC, unless the ECDD receives a written commitment issued by a Lender, acceptable to the City as to form and content. The terms and conditions of the Lender's commitment should be substantially the same as unsubsidized loans, including, but not limited to, such matters as: submission requirements, prepayment privileges,owner's equity, credit rating of applicants, and escrow accounts. Loans shall bear the same interest rate as those for unsubsidized multi- family loans and for the purpose of the Program, this rate shall be termed the "loan rate". The ECDD, the Lender Words underlined are additions - 7 - • a • and the applicant will make a final calculation of the interest subsidy payment necessary to reduce the "loan rate" to the "subsidized rate", and further based on the term for the repayment. If this final calculation is within ten percent (10%) of the amount approved by the LRC, no further LRC action will be required. If the commitment issued by the Lender is insufficient to pay for the full cost of rehabilitation,then the work write-up and cost estimate may be adjusted downward.After adjustment,however, the property must at a minimum, conform to the applicable codes and ordinances, and any indicated requirement for additional funds must be documented to the City's satisfaction and committed to the project. 4. Applicable Fees and Time Frames Any application submitted for an interest subsidy will be subject to the following: a. An application fee of$250 is due at time of submission of the application to the ECDD. b. If the application is approved by the LRC, a commitment fee of$15 per each proposed unit is then due, and the subsidy funds will be reserved for a period of sixty (60) days. c. If the applicant is not able to obtain the required Lender's commitment letter within the specified 60 day time, and wishes to apply to the ECDD for an extension of time, a fee of$150 is due at the time of this request. d. The ECDD will review all requests for extensions. If the request for extension is approved by the ECDD, an extension fee of $15 per each proposed unit is then due, and the subsidy funds are reserved for an additional sixty (60) days. e. If the applicant fails to meet its requirements during the extension period, then the City's commitment expires.If the applicant desires to re-apply for the interest subsidy funds,a new application package and fees must be submitted to the City and the request will be treated as a new application. f. At the time of closing, to occur no later than sixty (60) days after obtaining a firm commitment from a Lender, at which time the Subsidy Agreement is executed by the Mayor and the City Clerk, a closing fee of $15 per each proposed unit is due. g. Any other items to be brought before the LRC require a fee of$250, in order to be included as an agenda item. 5. Loan Closing Requirements All applications approved by a Lender and the City for participation in the Program shall be closed in strict accordance with the terms and conditions of the Lender's commitment,the City's commitment,the Subsidy Agreement and within the time specified therein. The Subsidy Agreement shall be in substantially the form as attached hereto as Exhibit "A", subject to such changes as may be recommended by the City Attorney from time to time. However, before a loan closing may occur and the Subsidy Agreement is executed by the Mayor and the City Clerk, the ECDD must receive and approve the following: a. If applicable, approval of the proposed improvements by the State of Florida Historic Preservation Officer (SHPO).For this purpose,the applicant will have to provide working drawings,photographs and certification forms, as determined necessary by the SHPO. b. A copy of final approved plans and specifications for the rehabilitation of the project, by the City's Building Department,which include proof of satisfaction of all variances required,and compliance with all local codes and standards.Plans must also comply with the requirements of the City's Planning and Zoning Department. c. Building permits must be obtained, from the City's Building Department, as required by applicable City Ordinance. Also, any other necessary permits and applicable approvals from any other governmental authorities must be obtained, if required. Words underlined are additions - 8 - • • a s d. Copy of executed construction contract entered into by the applicant and a licensed General Contractor, which includes the following: (1) Roles and responsibilities of all parties; (2) Construction schedule (commencement and completion dates); (3) Contract price; (4) Scope of work; (5) Provisions for inspections and payments to the contractor for work completed;(6)Provisions for a holdback of funds;(7) Change order procedures;(8)Procedures for resolving disputes; (9)References to any work which will be performed under warranty(including the terms and conditions of such warranties); (10) All essential construction documents such as the work write-up and technical specifications;and(11)Reference to all applicable federal regulations and standards. e. Evidence, satisfactory to the City's Risk Manager, of proper insurance coverage. f. A revised cost breakdown, to include direct and indirect costs on the proposed work. The applicant must provide the ECDD with a structural report of the building prepared by an Engineer, along with a signed statement that the final cost estimate provides for any necessary structural repairs to the building. g. A copy of the appraisal report that will be prepared for and used by the Lender. h. The applicant must provide assurances that it is current with the legal and financial obligations and/or payments on the property, with the City. i. Documentation acceptable to the City,that the Lender will accept the interest subsidy from the City and will provide a permanent loan, under the terms of the Program. j. Any other requirements determined necessary by the City. The Lender will be responsible for preparing and effectuating the execution of all loan documents,including the City's Subsidy Agreement, and recording same with the Clerk of the County Court. 6. Disbursement of the Interest Subsidy After loan closing has occurred, the Subsidy Agreement has been executed and recorded, and a Notice to Proceed has been issued by the City, the interest subsidy will be disbursed by the City to the Lender, as follows: a. During the construction phase, and not more often than once a month, a payment equivalent to ninety percent (90%) of the percentage of work completed (as certified by the Applicant's Inspector and a responsible officer of the Lender), multiplied by the total interest subsidy. b. The remaining (final) ten percent (10%) of the interest subsidy shall be paid upon compliance by the applicant with the following: (1) Completion of all rehabilitation work,within the time established by the City,and receipt by the City of a final certification of completion from the Applicant's Inspector and a responsible officer of the Lender; and (2) Approval and acceptance of the rehabilitation work by all the governmental agencies and authorities having jurisdiction over the project, including the issuance of a Final Certificate of Completion or Final Certificate of Occupancy, as applicable; and (3) Receipt and approval by the ECDD of all documentation for compliance with Federal Labor Standards; and (4) Receipt and approval by the ECDD of a certified ownership and encumbrance report from an abstract company, or equivalent, showing that the property is free and clear of mechanics, materialmen's or any other type of liens or obligations relating to the construction of the project. Items (3) and (4) must be submitted by the applicant within thirty (30) days from the date when a Final Certificate of Occupancy is issued. Words underlined are additions - 9 - 7. Use of the Interest Subsidy by the Lender The interest subsidy payments disbursed by the City to the Lender shall be deposited in an interest bearing Escrow Account at one of its offices located in Dade County,Florida, at the maximum interest rate available to Lender, and shall be expended as follows: on each month that the applicant is required to make payments to the Lender on the permanent loan, the Lender will draw from the Escrow Account (to the extent amounts in the Escrow Account are sufficient),the amount of interest subsidy equal to the difference between the amortized monthly payment of principal ofprincipal and interest based on the and interest based on the "loan rate" and the amortized monthly payment "subsidized rate". Any unused balance of interest subsidy funds plus unused earnings therein shall remain in the Escrow Account, with the Lender. 8. Cancellation and Refund of Subsidy Payments At its option, the City reserves the right to cancel and terminate the interest subsidy and request the return of the unused funds to the City,by the City Manager sending written notice of cancellation to the applicant and the Lender at their mailing address if: (1) for a period of 30 days from the execution of the Subsidy Agreement, the applicant shall have failed or refused to cause the commencement of physical rehabilitation work on said property, or, (2) if the applicant failed or refused to complete such work within a time specified in the City's documents, or, (3) if the City or the Lender determine that the purposes of the loan have been rendered impractical of fulfillment.Any events of default pursuant to any applicable contract or law, will constitute a default to the terms and conditions of the Program. The City's failure to exercise any rights or remedies to which it is entitled hereunder, shall not be deemed a waiver thereof. Words underlined are additions - 10 - SECTION II - E Defaults - Interest Subsidy 1. General The default of any loan subsidized under the Program, shall be handled in accordance with the Lender's normal customary procedures and applicable lending guidelines. 2. Default by the Applicant of the Lender's Terms and Conditions of the Loan In the event any applicant of a loan subsidized under the Program defaults on any of the terms and conditions of the note, mortgage, or other loan documents and such default continues for a period of sixty(60) days, the Lender shall notify the City of the default and the City may, at its sole option and discretion, within thirty(30) days of this notice, take whatever action is customarily permitted to bring the loan current.If in the event the loan is not brought current, or an agreeable settlement cannot be reached between the Lender and the City,within the thirty(30) day period,the Lender and/or the City may take whatever customary procedures as deemed necessary to secure payment of all or part of the total outstanding debt. 3. Default by the Applicant of City or Federal Terms and Conditions of the Program In the event that any applicant under the Program defaults on any of the City or Federal terms and conditions of the Program and said default continues for a period of thirty (30) days or more, the City shall be entitled to declare a default of the terms under the Program. The Lender shall assign to the City the right to apply to any court, state or federal, for specific performance of City or federal terms and conditions of the loan; for an injunction against any violation of City or federal terms and conditions; for the appointment of a receiver to take over and operate the property;and any other remedy,action,cause, proceeding or relief,as may be deemed appropriate by the City and/or the Lender, since the injury to the City arising from a default under any of the City or federal terms and conditions of the Program would be irreparable and the amount of damage would be difficult to ascertain. Any such costs necessary,including court costs,legal fees and costs of appeal,to enforce the City and/or federal terms and conditions of the Program shall be the responsibility of the applicant in any action, cause, suit or proceeding arising by virtue of the Agreements. 4. Unused Prepaid Interest Subsidy In the event of default by the applicant of the Lender's terms and conditions of the loan, or the City or federal terms and conditions of the Program, and the Lender forecloses on the subject property, any unused balance of interest subsidy funds plus unused earnings shall be returned to the City and the City shall have no further financial interest in the subject property,nor any further responsibility,liability,duty or obligation to the applicant,Lender or any other party arising by virtue of the Agreements, and the City shall be entitled to recover all such costs arising out of the default. Words underlined are additions - 11 - CHAPTER III THE MATCHING GRANT PROGRAM 1. General The Matching Grant Program is designed to provide the City with the flexibility necessary in a changing financial marketplace to decide what kind of rehabilitation assistance is most appropriate to meet current housing needs.The program provides direct grants to property owners and developers,in order to rehabilitate buildings and expand the supply of decent, safe and affordable housing. Grant funds may be used for the rehabilitation of either multi-family _rental units or condominium units to be sold to eligible first-time homebuyers, thereby alleviating the problems of excessive rent burdens and deteriorating housing stock in the City. 2. Grants Grants are not considered loans; therefore, repayment is not required. Grant funds utilized for the Matching Grant Program are derived from the U.S. Department of Housing and Urban Development. Funds must be disbursed for eligible activities in accordance with federal regulations. 3. City's Review of Applications a. In order to be considered for a matchin! .rant a ro left must contain or the a I slication must s ro.ose a minimum of five (5) living units, each with a minimum of 400 square feet. If the property is to be used for rental housing,51%of the units must be made available to moderate income tenants at affordable rents for a period of not less than three (3) years. If the property is to be sold as condominiums, the developer will be committed to comply with anti-speculation restrictions and make 51% of the units affordable to low and moderate income buyers through such developer-provided assistance as interest rate buydowns,price reductions, second mortgages or any other legitimate means of delivering units affordable to buyers earning no more than 80% of median income. Projects funded under the HOME Investment Partnerships Program must comply with the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). b. The ECDD shall make an initial determination as to whether or not the applicant and the property are eligible for a matching rehabilitation grant as set forth in these Guidelines. The application will then be reviewed by the LRC. If the application is approved by the LRC, the amount of grant funds will be estimated. The ECDD will then issue a preliminary funding commitment, and a reservation of funds will be made for the project. c. Upon compliance with and review of, design requirements, drawings, specifications, and other applicable documents, a grant agreement and related documents will be executed by the City and the applicant. d. If the City determines that an application is not consistent with the criteria and requirements for eligibility, the City shall set forth in writing the reasons substantiating such findings. Such findings shall be forwarded to the applicant within 30 working days from the date the initial determination of ineligibility is made.Notice of disqualification, ineligibility or denial of grant award will be provided to each applicant by certified mail with a statement that applicants who wish to contest the findings must request review of the decision in writing and postmarked or hand delivered within 14 calendar days of receipt of the notice. The request for review must be filed with the ECDD Director. Failure to file a request for review in the time and manner specified shall constitute a waiver of proceedings under these Guidelines.The request for review must specify, in detail, the basis for review and clearly describe disputed issues on material facts. A final determination, including written notice thereof, shall be made by the ECDD and be provided to the applicant within 20 working days of receipt of the request for review. e. Only applications which have been reviewed and approved by the LRC shall be eli ble fora rant under the Matching Grant Program. Words underlined are additions - 12 - SECTION III - A Qualification Requirements of the Property and the Applicant - Matching Grant 1. General This section sets forth qualification requirements as to the property and the eligibility requirements of an applicant for matching grant assistance. 2. Property Qualifications Any property being considered for a matching grant must meet the following requirements: a. The property should be located, preferably, in one of the target areas, as designated by the City; and b. The property must be in need of rehabilitation in order to comply with the applicable codes and ordinances as determined by a City inspection; and c. The property must be physically and financially feasible for such rehabilitation based primarily on the structural integrity of the building and the market potential of the property after rehabilitation; and d. The property must contain, or the application must propose, a minimum of five (5) living units, each with a minimum of 400 square feet; and e. If the property is to be rehabilitated and developed as a condominium project, evidence of condominium documents must be provided; and f. The property has not been previously assisted under the City's Interest Subsidy or Matching Grant programs; and At the time the application for a matching grant is submitted to the ECDD, the property must be vacant. If the property is occupied, the ECDD, on a case by case basis, survey it to determine relocation needs, costs and project feasibility. 3. Eligibility of the Applicant The applicant requesting a grant must meet the following eligibility criteria: a. The applicant must have fee simple title to, or a firm contract to purchase fee simple title to, the subject property. In the case of a buyer, the applicant must be able to demonstrate a firm financial commitment to purchase the property as evidenced by a sales contract or similar agreement, whereby the applicant (buyer) and property owner (seller) have agreed to the terms of sale. The sales contract must specify the property to be sold, type of deed, restrictions placed upon the use of the property, closing date, price and financing conditions.The applicant must be in possession of the property at the time the final grant award commitment is issued; and b. The applicant must demonstrate to the satisfaction of the City, the ability to provide any additional funds as needed over and above the amount of private sector commitment at the time construction estimates are com leted to assure com letion of the rehabilitation work so that the buildin. bein. rehabilitated will at a minimum, comply with the applicable codes and ordinances. The applicant must demonstrate the ability to fund the •rivate sector share of chane orders or cost overruns in an amount of not less than 10'o of the total estimated construction and soft costs; and c. The applicant shall have paid all due city,county, federal and school taxes, as well as any other .pplic 1 fees. Words underlined are additions - 13 - SECTION III - B Eligible Costs in a Matching Grant 1. General A matching grant may be awarded only with respect to a property that needs to be brought up to applicable codes and ordinances.However,within the limitations of a matching grant,the grant may also include amounts for purposes other than meeting those requirements. 2. Eligible Costs In addition to those interior and exterior rehabilitation costs to correct violations and make the property conform to the applicable codes and ordinances, a matching rehabilitation grant may cover the costs described below: a. Construction - Includable costs for labor and materials should be considered in the following order of priority: (1) Incipient Violations - Improvements to correct violations or conditions which may, in the opinion of the City, develop into hazardous conditions or code violations. (2) Good and Readily Maintainable Condition - Improvements necessary to put the property and facilities in a condition which requires a minimal amount of maintenance, and when appropriate, improvements which conserve energy. (3) General Property Improvements - Improvements which are in addition to those required in applicable codes and ordinances.These improvements may be considered appropriate,provided they are economically practical and in the public's interest. Such costs shall not exceed twenty percent (20%) of the total rehabilitation costs. b. Architectural - Reasonable fees paid for professional services in preparing work write-ups, cost estimates, working drawings, specifications, construction contract documents, supervision and other designated tasks. c. Permit Fees d. Appraisal Fees e. An amount not to exceed ten percent (10%) may be included in the grant request for any unforeseen but otherwise eligible construction costs. 3. Costs Not to be Included Costs directly associated with the following rehabilitation,financing or design elements cannot be matched in the grant amount: a. Refinancing of existing mortgages. b. Purchasing of the property (does not apply to HOME funded projects). c. New construction which expands the size of the structure. d. Purchase installation or repair of furnishings. e. Delinquent taxes, insurance payments, liens, charges and assessments. The applicant is responsible for bringing these payments current and to satisfy,in full,any liens, charges or assessments against the property prior to loan closing. Words underlined are additions - 14 - SECTION III - C Terms and Conditions for a Matching Grant 1. General This section sets forth the required terms and conditions for a matching rehabilitation grant. 2. Minimum and Maximum Grant Amounts e Federal rehabilitation funds are limited. Therefore, all rehabilitation projects will be evaluated for feasibility and in assistance impact.Since complete rehabilitation is encourage&applicants submitting requests for funding that housing P represent a maximum level of renovation and enhanced housing affordability shall be given priority. Ana applicant mayreceive a grant of up to $7,500 per unit, not to exceed 50% of the total eligible costs. The public pp monies ranted, however, be used for eligible costs only. The maximum grant amountshall be limited to the g may amount of funds available for the program as well as the feasibility of the rehabilitation project. The minimum rehabilitation cost shall include all costs necessary to bring the subject property into compliance with applicable codes and ordinances.The Rehabilitation cost,however,shall be at least$3,000 per unit,and not less than $25,000 in total. 3. Points of Agreement The applicant shall agree, as required by the related documents, to abide by all applicable City, State and Federal regulations and the following terms and conditions: a. Work Write-ups - Assure that clearly written, well-organized work write-ups are prepared which precisely P ' ' work to be undertaken.The project's technical specifications should be included,or define the rehabilitation incorporated by reference in the work write-up. b. Cost Estimates for Work Specified - To provide to the City an estimate of reasonable project cost which is prepared bya licensed architect or engineer, and is based on the scope of work and technical specifications P contained in the work write-up. c. Contractor Selection - Under the Program, the applicant may select his/her own contractor and does not have to use formal competitive bidding procedures. However, the applicant must secure written estimates from three qualified eligible contractors. The written estimates must be based on work write-ups that preciselydefine the rehabilitation work to be undertaken.The applicant must provide the City with such work write-ups.The City shall review the estimate provided by the contractor selected for reasonableness of cost. An acceptable estimate cannot exceed the City's estimate by more than 10%. d. Ineli ible Contractors - The applicant may not award any contract for rehabilitation work to be paid for in g whole or in part with federal grant funds, to any contractor or sub-contractor who, at the time of contract execution, is ineligible under the provisions of any applicable regulations issued by the Secretary of Labor or the Federal Government, to receive such award. e. Lead-based Paint Requirements - Federal regulations require that, in the event lead-based paint is found in a property assisted under the Program, appropriate testing and abatement procedures must be undertaken by the applicant. f. Federal Labor Standards - Among these standards may be the requirement that all laborers must be paid at wages not less than those contained in the official wage determination of the Secretary of Labor for each classification of work (Davis Bacon Act). Any property containing eight (8) or more units under the Community Development Program, or any property containing twelve (12) or more units under the HOME Investment Partnerships Program, must comply with all Federal Labor Standards provisions. A pre- construction conference must be held with the contractor, a••licant and it re•resentative in • + •r to address the extent of the work to beP erformed, the schedule, special conditions, labor standards provisions Words underlined are additions - 15 - and any specific concerns or questions any of the parties may have. Completion of Work - Assure that the rehabilitation work shall be carried out promptly and efficiently through a written contract let with the concurrence of the City, and completed within a specified time as established by the Architect and/or Engineer and the City. In case of construction cost overruns, any additional funds needed to complete the rehabilitation must be provided by the applicant, unless the City agrees, in writing, through the approval of change orders, to increase the grant limit in accordance with the requirements specified in these Guidelines. h. Benefit to Low and Moderate Income Persons - If the property is to be used for rental housing, fifty-one percent (51%) of the units must be made available to moderate income tenants at affordable rents. If the property is to be sold as condominiums, the developer will be committed to comply with anti-speculation restrictions and make fifty-one percent (51%) of the units affordable to low and moderate income buyers through such developer-provided assistance as interest rate buydowns, price reductions, second mortgages or any other legitimate means of delivering units affordable to qualifying buyers. This requirement will be enforced for three 3 ears from the date when a Final Certificate of Occu.anc is issued. Projects funded under the HOME Investment Partnerships Program must comply with the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). Transfer of the Property- If the property is sold within three (3) years after a Final Certificate of Occupancy is issued, whether it is a rental property or an assisted condominium unit, the full amount of the Grant will become due and payable to the City. The City may, at its option, declare the Grant to be a loan, which repayment terms and conditions will be set by the Loan Review Committee. Projects funded under the HOME Investment Partnerships Program must comply with the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). Reporting-To submit to the ECDD the required reports on the property and its occupants,in the form and substance acceptable to the City. k. Access to Property and Records - Designated personnel of the City and HUD shall have the right to inspect the rehabilitation work, contracts, materials, equipment,payrolls and all records relative to the project. 1. Property Inspection - The applicant shall retain the services of a qualified inspector (i.e., licensed architect or professional engineer) who must periodically inspect the property and certify to the City that the percentage of work has been completed in accordance to plans and specifications. The American Institute of Architect's standards,or equivalent,must be used for such certifications.The City must review and approve each request for payment to the contractor for work completed.The applicant shall not issue payment to the contractor unless the City has reviewed and approved the contractor's request for payment. m. Maintenance of the Property - To keep the dwelling units in the project in good condition and repair, fully _tenantable and not to remove or demolish any dwelling unit thereon; to complete or restore promptly and in good and workmanlike manner, any dwelling unit which may be damaged or destroyed thereon and to pay when due, all claims for labor performed and materials furnished to the project. To permit HUD and the City to inspect the property and all records during the term of the Grant Agreement. n. Insurance - To maintain hazard, liability and flood insurance on the property to be rehabilitated, as required in accordance with the requirements of the City. o. Property Alterations - Assure that no changes will be made to the exterior of the property for a minimum of three years following completion of the rehabilitation of the building unless said changes are approved, in writing, by the City. If any changes are made without the prior written consent of the City, the grant amount will become due and payable in full. Conflict of Interest-Allow no member of the City Administration,City employee,public official,or member of the Federal, State, Local or County Government, who exercises any functions of responsibilities in connection with the administration of the Program or approval of the project, to have any interest, direct or Words underlined are additions - 16 - indirect, in thep roceeds of the grant payment, or in any contract entered into by the applicant for the of the work paid for in whole or in part with federal grant funds. The conflict of interest performance provisions applicablefederally to funded programs shall be interpreted broadly to apply to virtually all apparent conflicts of interest. HUD has the authority to grant exceptions but the regulations do not provide anyone withrightexception.a to an In order to ensure that HUD-assisted rehabilitation is carried out in with generallyaccepted construction standards and that rehabilitation funds are expended accordance p economically and efficiently, the City must be advised of any and all apparent conflicts of interest. Equal Opportunity - Theapplicant shall abide by all federal, state or local regulations relative to equal opportunity to all persons,without discrimination as to race,color,creed,religion,national origin,sex,marital status, age, handicap or familial status. 4. Additional Requirements for HOME Investment Partnerships Program Projects Projects funded under the HOME Investment Partnerships Program must also comply with all the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). Words underlined are additions - 17 - SECTION III - D Processing Applications and Disbursing Funds - Matching Grant 1. Application Submission Requirements An application for a matching grant must include the following: a. Completed application form; and b. Proof of ownership (deed or sales contract); and c. Organizational documents and certificate of good standing(if other than individual ownership); and d. Property information (legal description); and e. Description of proposed rehabilitation work - A written description of the rehabilitation work intended to be accomplished to renovate the property, identifying each item and setting forth methods to correct the deficiencies; and f. An itemized cost estimate,prepared by a licensed architect or engineer, by unit price, showing the estimated construction cost for the work to be performed, which is based on the scope of work and technical specifications contained in the work write-up; and Two (2) sets of to-scale plans of the proposed project that include: site plan, floor plans, elevations, and a survey; and h. Photographs of the property to include exterior shots of all sides of the building, and interior shots of the units which exhibit the need for work to be performed and the specific areas to be improved; and i. A non-refundable application fee of$250. 2. Review of Applications by the City The ECDD shall make an initial determination as to whether or not the applicant and the property are eligible for a matching rehabilitation grant as set forth in these Guidelines. The application will then be reviewed by the LRC. If the LRC approves the application, the amount of grant funds will be estimated. The ECDD will then issue a preliminary funding commitment, and a reservation of funds will be made for the project. U on com liance with and review of desi_n re.uirements drawin ss se ecifications addenda and other a.e licable construction documents, a grant agreement and related documents will be executed by the City and the applicant. Only applications which have been reviewed and approved by the LRC shall be eligible for a grant under the Matching Grant Program. 3. Applicable Fees and Time Frames Any application submitted for a matching grant will be subject to the following: a. An application fee of$250 is due at time of submission of the application to the ECDD. b. If the a• lication is a e roved b the LRC a commitment fee of 15 $er each $ro.osed unit is then due .nd the grant funds will be reserved for a period of sixty (60) days. c. If the applicant is not able to proceed with construction within the specified 60 day time, and wishes to apply to the ECDD for an extension of time, a fee of$150 is due at the time of this request., Words underlined are additions - 18 - ' f d. The ECDD will review all requests for extensions. If the request for extension is approved by the ECDD, an extension fee of$15 per each proposed unit is then due,and the grant funds are reserved for an additional sixty (60) days. e. If the applicant fails to meet its requirements during the extension period, then the City's commitment expires. If the applicant desires to re-apply for the grant funds, a new application package and fees must be submitted to the City and the request will be treated as a new application. f. Any other items to be brought before the LRC require a fee of$250, in order to be included as an agenda item. 4. Execution of Grant Agreement and Related Documents All applications approved by the City for participation in the Program shall be awarded in strict accordance with the terms and conditions specified in these Guidelines,The Grant Agreement shall be in substantially the same form as attached hereto as Exhibit "B", subject to such changes as may be recommended from time to time by the City Attorney. However,before a grant agreement is executed by the Mayor and the City Clerk, the ECDD must receive and approve the following: a. If applicable, approval of the proposed improvements by the State of Florida Historic Preservation Officer (SHPO).For this purpose,the applicant will have to provide working drawings,photographs and certification firm determined necessary by the SHPO. b. A copy of final approved plans and specifications for the rehabilitation of the property by the City's Building Department,which include proof of all variances required,and compliance with all local codes and standards. Plans must also comply with the requirements of the City's Planning and Zoning Department. c. Building permits must be obtained from the City's Building Department, as required by applicable City Ordinance. Also, any other necessary permits and applicable approvals from any other governmental authorities must be obtained, if required. d. Copy of executed construction contract entered into by the applicant and a licensed General Contractor, which includes the following: (1) Roles and responsibilities of all parties: (2) Construction schedule (commencement and completion dates); (3) Contract price; (4)Scope of work;(5) Provisions for inspections and payments to the contractor for work completed;(6) Provisions for a holdback of funds: (7) Change order procedures:(8)Procedures for resolving disputes; (9) References to any work which will be performed under warranty (including the terms and conditions of such warranties); (10) All essential construction documents such as the work write-up and technical specifications]and(11)Reference to all applicable federal regulations and standards. e. Evidence of proper contractor insurance coverage. f. If necessary, a revised cost breakdown, to include direct and indirect costs, on the proposed work. g: Proof that the property has been inspected by the City for building/code violations. h. Evidence that the building's roof is in weathertight condition and that the building is free of life infestation of termites. If such evidence cannot be provided, the applicant must assure that the items will be corrected under the Program. Any other requirements determined necessary by the City. 5. Grant Disbursement After a grant agreement and related documents have been executed,and a notice to commence construction has been issued by the City, the grant amount may be disbursed as follows: a. During the construction phase - Not more often than once a month, a payment equivalent to ninety percent Words underlined are additions - 19 - (90%) of the percentage of work completed or materials to be ordered,may be issued.However,if the grant amount or portions thereof, is to be disbursed during the construction phase, such disbursements shall occur only after ninety percent (90%) or more of the applicant's funds have been disbursed. b. The remaining(final) ten percent (10%) of the grant amount shall be paid upon compliance by the applicant and/or general contractor, with the following; (1) Completion of all rehabilitation work and receipt by the City of a final certification of completion from the Applicant's Inspector; and (2) Approval and acceptance of the rehabilitation work by all the governmental agencies and authorities having jurisdiction over the project, including the issuance of a Final Certificate of Completion or Final Certificate of Occupancy, as applicable; and (3) Receipt and approval by the ECDD of all documentation for compliance with Federal Labor Standards; and (4) Receipt and approval by the ECDD of a certified ownership and encumbrance report from an abstract company, or equivalent, showing that the property is free and clear of mechanics, materialmen's or any other type of liens or obligations relating to the construction of the project. Items (3) and (4) must be submitted by the applicant within thirty (30) days from the date when a Final Certificate of Completion is issued. c. Upon Construction Completion - A lump sum payment for the total grant amount may be issued to the applicant upon completion of all rehabilitation work and compliance with the requirements set forth in (b) above. In this instance, the lump sum amount disbursed will constitute a "reimbursement" to the applicant (rather than a payment to the general contractor), for eligible rehabilitation costs incurred and already paid. d. In a manner requested by the applicant and approved by the City. 6. Cancellation and Refund of Grant Payments At its option, the City reserves the right to cancel and terminate the grant award and, if applicable,request the return of the used funds to the City, by the City Manager sending written, certified notice of cancellation to the applicant at his/her mailing address if: (1) for a period of 30 days from the notice to commence work, the applicant shall have failed or refused to cause the commencement of physical rehabilitation work on said property; or, (2) if the applicant failed or refused to complete such work within a time specified in the City's documents; or (3) if the City determines that the purposes of the grant have been rendered impractical of fulfillment; or (4) if the applicant failed to comply with applicable local, state or federal regulations. Any events of default pursuant to any applicable contract or law, will constitute a default to the terms and conditions of the Program. The City's failure to exercise any rights or remedies to which it is entitled hereunder, shall not be dLemed a waiver thereof. Words underlined are additions - 20 - • SECTION III - E Defaults - Matching Grant 1. General The grant defaultof any awarded under the Program, shall be handled in accordance with the following: 2. Default by the Applicant of City or Federal Terms and Conditions of the Program In the event that any applicant licant under the Program defaults on any of the City or Federal terms and conditions of the Program and said default continues for a period of thirty (30) days or more, the City shall be entitled to declare a default of the terms under the Program. The City shall have the right to apply to any court, state or federal, for City p specific performance of or federal terms and conditions of the grant; for an injunction against any violation of p City or federal terms and conditions; for the appointment of a receiver to take over and operate the property; and anyother remedy, action, cause,proceeding or relief, as may be deemed appropriate by the City, since the injury to arising y default under anyof the Cityor federal terms and conditions of the Program would be the City arising from a de au irreparable such costs necessary,includingcourt costs and the amount of damage would be difficult to ascertain.Any ys legal fees and costs of appeal, to enforce the City and/or federal terms and conditions of the Program shall be the responsibility of the applicant in any action, cause, suit or proceeding arising by virtue of the Agreements. Words underlined are additions - 21 - • CHAPTER IV LOAN REVIEW COMMITTEE 1. General This chapter sets forth the role and responsibilities of the City's Loan Review Committee (LRC). 2. Members The Loan Review Committee shall consist of five (5) members as follows: a. City Manager or a designated representative of the City Manager's Office; and b. City's Finance Department Director; and c. Three members from different private Lenders with offices located in the City, appointed by the City Commission to serve for a one (1) year term. The members will elect a chairperson, who will serve at the will of the Committee. All meetings shall be called and set by the chairperson as needed,and shall be open to the public.Three(3)voting members shall constitute a quorum necessary to hold a meeting or take any action. The Community Development Director or a designated representative from the ECDD shall act as a direct liaison between the applicant, the Lender, the LRC, and representatives of the City. 3. Duties and Responsibilities of the Loan Review Committee The Loan Review Committee shall: a. Study proposals and review the property qualifications and eligibility of the applicant. b. If necessary, interview the applicant to obtain additional information about the proposal. c. Evaluate proposals and determine which proposals shall receive approval (reservation of funds) and specify time frames and conditions for such approval. d. Estimate the amount of public funding needed to assist selected proposals. e. Review and make recommendations on any requests made to the City for an assignment or material change in any of the terms of the grant agreements or subsidy agreements, after those have been executed. f. Periodically review these Guidelines and make recommendations to the City Commission for action. 4. Applicability of City Resolutions and Regulations All resolutions, rules, and regulations, enacted by the City regarding membership, attendance, removal of members, voting and quorums, conflict of interest, as amended from time to time, shall apply to the Loan Review Committee. 5. Proposal Selection Criteria Since one of the responsibilities of the Loan Review Committee is to review proposals and determine which one has priority over others for receiving public funds, the committee will select those which provide the best product for the proposed use of public funds. Proposals will be rated in part on the following criteria: a. Location of the property in relation to target areas. (1) North Shore Area (North of 67th Street) Words underlined are additions - 22 - (2) South Shore Area (South of 23rd Street) b. Average size of units (1) Average SF of all units (minimum 400 SF) c. Units containing two or more bedrooms (1) % of units, out of the total of units in the project d. Quality rehabilitation, to involve major permanent repairs (1) Average construction cost per unit (minimum $3,000) e. Minimizing displacement (relocation needs) (1) Is the property vacant? (2) Number of units currently occupied f. Leverage of public funds with private funds (1) % of public funds of the total cost of the project (maximum (&_ 50% of construction costs) Ability to proceed with project (1) Does the project have private funds committed? (2) Does the project have plans, and a building permit? (3) Does the applicant have title to the property? (4) Has a construction contract been executed? h. Encourage Architectural or Historic Preservation Improvements in the Art Deco District (1) Is it a historic building, i.e, on the National Register? (2) Is the proposed renovation consistent with the historic character of the district? i. Additional amenities in the project, i.e., laundry areas (1) Are there laundry areas in the building? j_ Construction experience of the general contractor (1) In other City projects (2) Total number of years of experience Words underlined are additions - 23 - EXHIBIT "A" SUBSIDY AGREEMENT THIS AGREEMENT entered into this day of 19 ,by and between Bank,with its principal office at , ,Florida,hereinafter referred to as"Lender",and ,a Florida whose address is , , Florida, hereinafter referred to as "Owner" who as the legal owner of the property at , Miami Beach,Florida, more particularly described as the Apartments,Lot ,Block of , according to the Plat thereof as recorded in plat book ,page ,of the Public Records of Dade County, Florida hereinafter referred to as"Project",and the City of Miami Beach, a Florida municipal corporation,having its principal office at 1700 Convention Center Drive, Miami Beach, Florida, hereinafter called "City": WITNESSETH: WHEREAS, the City has established a Multi-Family Rehabilitation Program, hereinafter referred to as"Program", designed to provide financial and technical assistance to property owners of deteriorated and substandard multi-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 Rehabilitation Programs hereinafter referred to as "Guidelines", adopted by the City Commission on , as they may be amended from time to time, are deemed incorporated by reference and made a part of this Agreement; and WHEREAS, Owner as the legal owner of the Project described above has agreed to rehabilitate said Project in accordance with the Program; and WHEREAS, the City's Loan Review Committee on approved the assistance of the Project under the Program, and a commitment letter was issued on , said commitment letter is deemed incorporated by reference and made a part of this Agreement; and WHEREAS, a commitment letter was issued by Lender on , for the financing of the Project; and WHEREAS, Lender has agreed to make a loan to Owner pursuant to said Program; and WHEREAS,it is acknowledged and agreed that funds utilized for payment to Lender on behalf of Owner derive from funds appropriated to the City by the U.S. Department of Housing and Urban Development, for the uses and purposes herein referred to and accordingly it is acknowledged and agreed this Agreement is entered into after compliance by the parties with all applicable provisions of Federal, State and local laws, statutes, rules and regulations as they may apply to this Agreement which certain of said regulations are incorporated herein as more fully set forth in Attachment "C". NOW,THEREFORE, in consideration of the mutual promises contained herein and in consideration of the monies which are to be deposited by City with Lender which consideration is hereby acknowledged by the parties,the parties do agree as follows: (1) Any amendments, alterations,variations,will only be valid when they have been reduced to writing and duly signed by the parties. (2) It is understood and agreed by and between the parties hereto that the Guidelines, as they may be amended from time to time, represent the scope of services and responsibilities of the parties under the Program and said parties agree to abide by and comply with their roles and responsibilities under the Guidelines as set forth therein. (3) City shall have the sole responsibility and obligation of interpreting the intent and purpose of the Program and contract documents, exclusive of the rights and responsibilities of Lender as set forth in Lender's loan application and established loan processing procedures. Words underlined are additions - 24 - • • (4) Rehabilitation of Project shall be done in accordance with the applicable codes, ordinances and statutes of the City and Metropolitan Dade County. (5) It is understood and agreed by and between the parties 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 interest subsidy of Dollars ($ ) specified herein.No other fiscal, legal, equitable or contractual duty or obligation is assumed by the City, and Owner and Lender by executing this Agreement so agree. After this interest subsidy payment is expended by Lender according to the procedures set forth herein, the City shall be automatically discharged from any and all obligations, liabilities and commitments hereunder to Owner, Lender or any third person or entity provided, however, that this Section shall not excuse the continued compliance by Owner with the terms of this Agreement and the federal program requirements. Owner and Lender for consideration of One Dollar ($1.00) and other good, valuable, separate and distinct consideration,receipt of which is hereby acknowledged,hereby save and hold harmless,indemnify and protect the City, its officers and employees from any and all obligations, liabilities, commitments, actions, claims, causes of action, suits or demand arising or accruing by virtue of this Agreement or the Project contemplated hereunder. (6) In consideration for the performance of Owner and Lender of their roles and responsibilities set forth in this Agreement, the City agrees to pay to Lender on behalf of Owner, the sum of Dollars ($ ),as the total of interest subsidy payments as further provided for herein.Said total of payments represents an amount determined necessary by the parties to reduce the effective interest rate ("Loan Rate") on the permanent loan in the amount of Dollars ($ ) to be made to Owner by Lender, to percent ( %) per annum ("Subsidized Rate"), for an estimated term of (D years, and as further set forth in Attachment "B". (7) The amount of the interest subsidy payment indicated in Section 6 above will be disbursed by the City to the Lender, after a Notice to Proceed is issued, and as follows: During the construction phase, and not more often than once a month, a payment equivalent to ninety percent (90%) of the percentage of work completed in the previous period (as certified by the Owner's Inspector and a responsible officer of the Lender), multiplied by the total interest subsidy as described in Section 6 above.The remaining(final) ten percent (10%) of the interest subsidy payment shall be paid upon the completion, approval and acceptance of the rehabilitation work and related documentation by all the governmental agencies and authorities having jurisdiction over the Project, and as further set forth in the Guidelines. (8) The interest subsidy payments shall be deposited by Lender in an interest bearing Escrow Account at one of its offices located in Dade County, Florida, at the maximum interest rate available to Lender, and to be expended as follows: Each month, starting on the month after the execution of the Note, provided a Final Certificate of Occupancy has been issued, and as Owner makes the required payments on the permanent loan, Lender will draw from the Escrow Account (to the extent amounts on deposit in the Escrow Account are sufficient) the amount of interest subsidy, required to make up the difference between the monthly payment based on the Loan Rate", and the monthly payment based on the"Subsidized Rate".Attachment"B"provides the detailed calculation of each payment,assuming a Loan Rate of percent( %)per annum,and an interest rate of percent ( %) per annum to be earned on the Escrow Account funds. Any unused balance of interest subsidy funds plus unused earnings therein shall remain in the Escrow Account. (9) On each month during the construction period,Lender shall provide to the City's Economic and Community Development Department a signed statement from a duly authorized officer, detailing: date of payment, amount paid, percentage of work completed, retainage, and remaining balance in the construction fund. Words underlined are additions - 25 - • (10) Every six (6) months, and for the term of this Agreement, Lender shall provide to the City's Economic and Community Development Department, a report accounting for: the Escrow Account number, name and location; monthly interest earned on the funds; monthly subsidy payment expenditures and balances; and monthly amortization of the permanent loan.This statement, to be signed by a duly authorized officer,must be submitted to the City's Economic and Community Development Department by January 31 and July 31 of each year. (11) Upon written notice from the City of the expiration, lapse or default of this Agreement, whichever occurs first, Lender shall remit, within thirty(30) days of such written request by the City, all undisbursed interest subsidy funds and interest thereon, remaining in the Escrow Account to the City. (12) The funds provided by the interest subsidy payment under the provisions of this Agreement, shall be used to reduce the interest rate owed on monies borrowed to rehabilitate the property into a (i unit apartment building to be done in accordance with the application filed by Owner with the City, as such application was approved under the Program, including the commitment issued by the City dated 19 , which is made a part hereof. (13) It is understood and agreed by Owner that for at least three (3) years beginning on the date when a Final Certificate of Occupancy is issued, a minimum of ( ) units ( %) will be occupied by low and moderate income households at affordable rents (or as required under the HOME Investment Partnerships Program, if applicable). Low and moderate income households means all members in a household whose combined income does not exceed the following levels (as of this date,but to be revised annually): 1 person, $21,300;2 persons, $24,300;3 persons, $27,350, 4 persons, $30,400.Monthly rents for units occupied by low and moderate income households are considered affordable, if they do not exceed the Fair Market Rents (FMRs) for the Section 8 Existing Housing Program (as of this date,but to be revised annually): Efficiency, $392; 1 Bedroom $477; 2 bedrooms $562. (14) Owner shall deliver to the City's Economic and Community Development Department,by January 31 of each year, its signed notarized report in form and substance acceptable to the City, to include names of tenants, unit type,family income,rents charged,and occupancy factor of each unit for that prior year.This report will continue to be required for five (5) years after the date on which a Final Certificate of Occupancy is issued (or as required under the HOME Investment Partnerships Program, if applicable). (15) (ONLY FOR RENTAL REHABILITATION PROGRAM PROJECTS) It is understood and agreed by the Owner not to convert any of the units in the Project to condominium ownership for at least ten (10) years beginning on the date when a Final Certificate of Occupancy is issued.Any violation of this requirement may result, at City's option, in the entire amount of the interest subsidy payment indicated in Section 6, to be returned to the City. (16) (ONLY FOR HOME INVESTMENT PARTNERSHIPS PROGRAM PROJECTS)If the Project is funded under the HOME Investment Partnerships Program, it must also comply with all the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 921 (17) It shall be deemed a default of this Agreement in the event that Owner and/or Lender do not strictly comply with the terms,conditions,duties and procedures established herein for obtaining City consent to assignment or transfer as defined by this Section. In the event such consent is not obtained in the manner prescribed herein the City shall be entitled to declare a default, cancel this Agreement and resort to its rights and remedies against the defaulting party. Lender or Owner shall not assign any interest of this Agreement and will not transfer any interest in the same without the prior written consent of the City Manager upon approval by the Loan Review Committee. In the event Owner is a corporation, limited partnership or other incorporated or artificial business entity, a transfer of more than ten percent (10%) ownership interest of its' stock by pledge, sale or otherwise; or if Owner makes an assignment for the benefit of its creditors or uses this Agreement as security or collateral for any loan besides the loan involved herein; or if Owner is voluntarily or involuntarily a party to any bankruptcy or insolvency proceeding; or if Owner has a receiver appointed over any of its properties; or if Owner does not satisfy in full or appeal any judgment for the sum of$5,000 (or more) within thirty (30) days from its' rendition; or if Owner is involved in a bulk transfer of its business,then in that event each of the foregoing actions will be deemed an assignment of this Agreement and require the prior written consent of the City Manager upon approval by the Loan Review Committee. Words underlined are additions - 26 - ( In the event Owner is a trust,which includes without limitation a land trust and a trust company, any change in theerson or entitywho is the trustee or any change in the heirs or beneficiaries of such trust shall be p thisSection and require the prior written consent of the City Manager upon deemed an assignment under q approval bythe Loan Review Committee. Regardless of the type of entity Owner is defined to be, a merger, tp insolvency, bankruptcy, dissolution, consolidation, conversion, liquidation, or appointment of a receivership for such Owner shall each be deemed an assignment of this Agreement and will require the prior written consent of the City Manager upon approval by the Loan Review Committee. (18) Upon a default of a written indebtedness, including without limitation: a note, mortgage, guarantee, and the p Agreement, Owner waives notice, presentment and/or demand of default. For ur oses of this Agreement and the documents referenced or incorporated within it, a default shall include without limitation, the follovv�ng acts or g(19) p p events of Owner, or its agents, servants, employees, or contractors: (a) Owner's failure to (i) commence work within thirty (30) days from the date of this Agreement, or (ii) diligently pursue construction and timely complete the project by securing a Final Certificate of Occupancy in ( ) months from the date of this Agreement, or (iii) provide the documentation required to make the final payment of the interest subsidy, as indicated in the Guidelines, within thirty (30) days from the date when a Final Certificate of Occupancy is issued. Work shall be considered to have commenced and be in active progress when, in the opinion of the City's Economic and Community Development Department, 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, mortgage, or other loan document executed by Owner in favor of Lender. (d) Owner's insolvency or bankruptcy. (e) Owner's failure to maintain the insurance required by the City and/or Lender. (f) Owner's failure to correct defects within a reasonable time as defined herein. (g) 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. (h) 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. (i) An assignment or transfer of this Agreement or any interest therein by Owner and/or Lender which does not comply with the procedures set forth herein. (20) In the event of a default, the City may, thirty (30) days after mailing to Owner, with copy to the Lender, a notice of such default as set forth herein, automatically cancel and terminate this Agreement without liability to any party to this Agreement. 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 canceled 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 and the Project. (21) In the event of a default, 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 Words underlined are additions - 27 - 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. (22) Notices and demands: All notices, demands, correspondence and communications between the City, the Owner and the Lender 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: Economic and Community Development Director If to the Lender: If to the Owner: or to such address and to the attention of such other person as the City, the Lender or the Owner may from time to time designate by written notice to the others. (23) It is understood and agreed that Lender shall record this Agreement as part of the mortgage and promissory note on the subject project with the Clerk of the County Court, Dade County, Florida and shall furnish the City's Economic and Community Development Department with certified copies of these recorded instruments within sixty (60) days of the execution of this Agreement. IN WITNESS WHEREOF, the Owner has caused this Agreement to be executed by its duly authorized officer(s), the Lender has caused this Agreement to be executed by its duly authorized officer(s), and the City has caused this Agreement to be executed by its duly authorized officer(s), the day and year first above written. THE PARTIES HERETO STATE THAT THEY HAVE CAREFULLY READ THE FOREGOING AGREEMENT AND THE GUIDELINES FOR THE CITY OF MIAMI BEACH MULTI-FAMILY REHABILITATION PROGRAMS, AND KNOW THE CONTENTS THEREOF AND FULLY REALIZE THEIR MEANING AND SIGN THIS AGREEMENT AS THEIR OWN FREE ACT. (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK) Words underlined are additions - 28 - 3 WITNESS: OWNER: Name: BY: Name: Name: LENDER: BANK Name: BY: Name: Name: CITY OF MIAMI BEACH Name: BY: Name: MAYOR Name: ATTEST: CITY CLERK Name: Words underlined are additions - 29 - • STATE OF FLORIDA ) ) SS: COUNTY OF DADE ) The foregoing instrument was acknowledged before me, this day of , 199 , by g g as of . He/She is personally known to me or has produced as identification and did/did not take an oath. pe y Name: NOTARY PUBLIC, State of Florida Commission NQ My Commission Expires: STATE OF FLORIDA ) ) SS: COUNTY OF DADE ) The foregoing instrument was acknowledged before me, this day of , 199 , by , as of . He She is personally known to me or has produced as identification and did/did not take an oath. Name: NOTARY PUBLIC, State of Florida Commission NQ My Commission Expires: STATE OF FLORIDA ) ) SS: COUNTY OF DADE ) The foregoing instrument was acknowledged before me, this day of , 1 , by m , as Mayor of the City of Miami Beach. He/She is personally own to me or hag produced as identification and did/did not take an oath. Name: NOTARY PUBLIC, State of Florida Commission NQ My Commission Expires: Words underlined are additions - 30 - EXHIBIT "B" GRANT AGREEMENT TIIIS AGREEMENT entered into this_day of 199 ,by and between ,hereinafter referred to as "Owner", who is the legal owner of the property located at , Miami Beach, Florida, more particularly described as the Apartments, Lot , Block of , according to the Plat thereof as recorded in plat book page , of the Public Records of Dade County, 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 Multi-Family Rehabilitation Matching Grant Program, hereinafter referred to as "Program", designed to provide financial assistance to property owners of substandard multi-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 Multi-Family Rehabilitation Programs hereinafter referred to as "Guidelines", adopted by the City Commission on , 1992, 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 funds appropriated to the City by the U.S. Department of Housing and Urban Development, 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 and 001100 Dollars ($ J, 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. (6) The amount of the Grant indicated herein will be disbursed by the City in accordance with the pros durc established in the Guidelines. The Cit will re s uire at the time of closin. that a Promissor Note the "Note and a Mort!a,e b- este e and filed on the Property, for the amount of the Grant. Such Note and Mortgage will be released three (3) years from the date when a Final Certificate of Occupancy is issued (or as required under the HC M Investment Partnerships Program), provided there are no violations of the conditions set forth therein, Words underlined are additions - 31 - (8) It shall be deemed a default of this Agreement in the event that Owner,within three (3) years from the date when a Final Certificate of Occupancy is issued (or as required under the HOME Investment Partnerships Program), does not comply with any of the conditions under Section III - C, "Points of Agreement", of the Guidelines. (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 ( %)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. 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) (ONLY FOR HOME INVESTMENT PARTNERSHIPS PROGRAM PROJECTS) If the Project is funded under the HOME Investment Partnerships Program, it must also comply with all the requirements set forth under part 92 of title 24 of the Code of Federal Regulations (24 CFR Part 92). (14) 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: 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 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 Economic and Community Development Department, 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 com s 1 with a I,licable buildin. fire life safet housin' and zonin' 1.ws r 1 regulations and codes. Words underlined are additions - 32 - 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: - 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. 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. (15) In the event of a default as set forth in Paragraph 14 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 hisJher 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 canceled and terminated and the City fully discharged from any and all liabilities,duties and terms arisin. out of or accruin. b virtue of this A. cement includin. but not limited to the obli.ation to fund any unfunded portion of the Grant. (16) 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. (17) 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: Economic and Community Development Director If to the Owner: 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. (18) 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 food valuable se arate and distinct consideration recei it of which is hereb acknowled.ed hereb 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. Words underlined are additions - 33 - p � WITNESS: OWNER CITY OF MIAMI BEACH BY: MAYOR ATTEST: CITY CLERK Words underlined are additions - 34 - ! I, EXHIBIT "C" OTHER FEDERAL REQUIREMENTS As the City of Miami Beach isproviding this funding throughfederal funds, all parties agree to comply with the following statutes, regulations and executive orders, as they apply. These requirements are incorporated herein by reference. 1. Freedom of Information and Privacy Acts - Freedom of Information Act (5 U.S.C. 552), and the Privacy Act of 1974 (5 U.S.C. 552a). 2. Equal Opportunity - Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) and 24 CFR Part 1; - Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601), as amended; - Executive Order 11063, as amended by Executive Order 12259; - Executive Orders 11246, 11265, 12138 and 12432; - Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170), as amended; - Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as amended; - The Age Discrimination Act of 1975 (42 U.S.C. 6101); - The Fair Housing Amendments Act of 1988. 3. Environmental Review - The National Environmental Policy Act (42 U.S.C. 4321, et seq); - The Council on Environmental Quality Regulations (40 CFR Parts 1500-1508); - Environmental Review Procedures (24 CFR Part 58); - National Historic Preservation Act of 1966. - National Flood Insurance Act of 1968 as amended by the Flood Disaster Protection Act of 1973. 4. Lead Based Paint - Lead Based Paint Poisoning Prevention Act (42 U.S.C. 4801, et seq); - HUD Lead Based Paint Regulations (24 CFR Part 35). 5. Asbestos - Asbestos Regulations (40 CFR 61, Subpart M); - U.S. Department of Labor Occupational Health and Safety (OSHA) Asbestos Regulations (29 CFR 191.1101). 6. Handicapped Accessibility - Architectural Barriers Act of 1968 (42 U.S.C. 4151 and 24 CFR Part 41). 7. Labor Standards - The Davis-Bacon Act (40 U.S.C. 276a) as amended; - The Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333); - Federal Labor Standards Provisions (29 CFR Part 5.5). 8. Grant Regulations - Community Development Block Grants (24 CFR Part 570); - Rental Rehabilitation Program (24 CFR Part 511). - HOME Investment Partnerships Program (24 CFR Part 92). ADDITIONALLY, ALL PARTIES AGREE TO COMPLY WITH ALL EXISTING FEDERAL, STATE AND LOCAL LAWS AND ORDINANCES HERETO APPLICABLE, AS AMENDED. Words underlined are additions - 35 - RESOLUTION NO. 92-20558 41i Approving and adopting the revised guidelines for the multi-family rehabilitation programs and authorizing the Mayor and City Clerk to execute all agreements and related documents for the programs. • • • ,, rr' - , ..