HomeMy WebLinkAbout2011-258 Housing - Inter-Church Council Housing Corp. - Developmental Agreement - OC HOME Consortium goof
NORTH CAROLINA
DEVELOPMENT AGREEMENT
ORANGE COUNTY
This is an AGREEMENT between ORANGE COUNTY, a body politic and corporate, a
political subdivision of the State of North Carolina, (hereinafter referred to as the "County"),
INTER-CHURCH COUNCIL HOUSING CORPORATION, a North Carolina non-profit
corporate n hereinafter referred to as "Owner"). The effective date of this agreement is
WITNESSTH
WHEREAS, the Orange County HOME Consortium has designated approximately
$100,000 in FY 2010 HOME funds to assist in the rehabilitation of two (2) low-income
apartment complexes in Chapel Hill known as Chase Park and Elliott Woods; and
WHEREAS, the County is the lead entity of the Orange County HOME Consortium, so
designated in an agreement dated July 1, 2008 and as such is the lead entity in a representative
capacity for all members of the Orange HOME Consortium for the purposes of carrying out the
HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable
Housing Act (Pub. L. 101-625), (42 U.S.C. 3535(d) et. seq.) (hereinafter referred to as the
"Act"), and as further defined in the Federal Program Requirements provided by the U.S.
Department of Housing and Urban Development; and
WHEREAS, the Owner has received a HUD 221 (d)(3) loan to assist in funding the
planned rehabilitation activities; and
WHEREAS, the Owner owns and manages the Chase Park Apartments located at 1064
Highway 54 Bypass and the Elliott Woods Apartments located at 106 North Elliott Road in
Chapel Hill (hereinafter referred to as "the Project"), as rental housing for low-income families
earning up to 80% of the Area Median Income which will remain affordable for low income
families throughout the term of the 99 year period of affordability. The Project dwelling units
are located on the property more particularly described in EXHIBIT A attached hereto and made
a part of this Agreement (hereinafter referred to as "the Property"); and
WHEREAS, the Owner agrees to utilize HOME funds provided for the purpose of
rehabilitating the Property as described in its HOME Program application dated February 24,
2010 which is hereby incorporated into and made part of this Agreement and hereinafter referred
to as"the Project"; and
WHEREAS, notwithstanding any provision of this Agreement, the County and the
Owner hereto agree and acknowledge that this Agreement does not constitute a commitment of
funds or site approval, and that such commitment of funds or approval may occur only upon
satisfactory completion of an environmental review and receipt by Orange County of a Release
of Funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58
if applicable. The parties further agree that the provision of such funds to the project is
conditioned on Orange County's determination to proceed with, modify, or cancel the project
based on the results of a subsequent environmental review.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations
contained herein, it is agreed between the parties hereto as follows:
I. USE OF HOME FUNDS/SUBSIDY TYPE
1. The Owner shall perform the projects or tasks related to its allocation of HOME funds as
provided in Exhibit B and within the proposed budget outlined in Exhibit C. Exhibits B and C
are hereby made a part of this Agreement and are incorporated by reference, as it now reads or as
it may be modified by the parties.
2. The Owner may not request disbursement of funds under this Agreement until the funds
are needed for payment of eligible costs. The amount of each request must be limited to eligible
costs as determined by Orange County staff.
3. Said funds shall be disbursed by check payable to the Owner.
4. HOME funds will be a fixed subsidy provided in the form of a grant.
II. AMOUNT OF HOME FUNDS
The County shall make available to the Owner up to One Hundred Thousand Dollars
($100,000) pursuant to this Agreement. Said funds shall be disbursed by the County to the
Owner for performance of the services described in Exhibit B.
III. LIEN POSITION
Orange County hereby acknowledges that the terms and conditions of its (i) HOME Program
Development Agreement, (ii) Promissory Note, (iii) Deed of Trust and Security Agreement and
(iv) Declaration of Restrictive Covenants (collectively referred to as "Orange County Loan
Documents"), for The Landings at Winmore shall be and are expressly subordinated to the
following exceptions to title that encumber the property, as described in the Orange County Loan
Documents: (i) Deed of Trust in favor of the North Carolina Finance Deed of Trust in Favor of
North Carolina Housing Finance Agency for $4,995,112 recorded in Book 4895, Page 150,
Orange County Registry, (ii) Declaration of Land Use Restrictive Covenants for Section 1602
Exchange Program recorded in Book 4895, Page 162, Orange County Registry, (iii) UCC in
Favor of the North Carolina Housing Finance Agency recorded in Book 4895, Page 172, Orange
County Registry, (iv) Deed of Trust in Favor of the North Carolina Housing Finance Agency for
$410,160 recorded in Book 4895, Page 176, Orange County Registry, (v) UCC in Favor of North
Carolina Housing Finance Agency recorded in Book 4895, Page 188, Orange County Registry,
(vi) Deed of Trust in favor of Bank of America for $1,440,000 recorded in Book 5083, Page 80,
Orange County Registry, (vii) Deed Restrictions for Bank of America recorded in Book 5083,
Page 108, Orange County Registry, (viii) UCC in favor of Bank of America recorded in Book
5083, Page 114, Orange County Registry (ix) Deed of Trust in favor of Bank of America for
$550,000 recorded in Book 5083, Page 120, Orange County Registry, (x) UCC in favor of Bank
of America recorded in Book 5083, Page 148, Orange County Registry, and (xi)Deed of Trust in
favor of United Housing Associates for $250,000 recorded in Book 5083, Page 154 assigned to
Bank of America in Book 5095, Page 90, Orange County Registry.
IV. TIMELINESS
Owner shall complete the Project within twelve (12) months from the date of this Agreement.
However, in the event of any alterations or additions or circumstances beyond the control of the
Owner, which in the opinion of the Director of the County's Department of Housing, Human
Relations and Community Development will require additional time for completion of the
Project, then in that case, the time of completion shall be extended by the County Manager in
writing for a period of time not to exceed six (6) months. Any further extensions will require the
approval of the Orange County Board of County Commissioners.
V. DURATION OF THE AGREEMENT
This Agreement will remain in effect for the Period of Affordability as provided in
Section VI. Affordability Requirements.
VI. AFFORDABILITY REQUIREMENTS
Owner agrees to lease the Project dwelling units to 79 low and moderate income families
earning less than 80% of the area median income throughout the 99 year period of affordability.
Area Median Income by family size is determined by the U.S. Department of Housing and Urban
Development and amended from time to time. Residential leases will not exceed one year in
term.
Each of the Project dwelling units must remain affordable for a period of ninety-nine
years. Owner retains full responsibility for compliance with the affordability requirement for
each of the Project dwelling units, unless affordability restrictions are terminated due to the sale
of the Property to a non-qualified buyer in which event the Resale Provisions of this Agreement
pertain. Owner shall assure compliance with affordability of each of the Project dwelling units as
provided in the Declaration on the Property. This Declaration shall constitute and remain a lien
on the Property during the period of affordability.
It is further the responsibility of Owner to rerecord the Declaration of Restrictive
Covenants periodically and no less often than one day less than every 30 years from the date
hereof for the purpose of renewing the rights of first refusal in the Property or portion thereof
including any leasehold interest in the Property or portion thereof. Orange County retains the
right to, periodically and every 30 years after the first recording of the Declaration of Restrictive
Covenants on the Property to register, with the Register of Deeds of Orange County, a notice of
preservation of the Restrictive Covenants on the Property as provided in North Carolina General
Statute § 47B-4 or any comparable preservation law in effect at the time of the recording of the
notice of preservation. It is the intent of this Agreement that the 99 year duration of this
Declaration of Restrictive Covenants be accomplished and that any future Owner of the Property,
Owner, and Orange County will do what is necessary to ensure that the same is not extinguished
by N.C. Gen. Stat. § 41-29 or any comparable law purporting to extinguish, by the passage of
time, preemptive rights in the Property and by the Real Property Marketable Title Act or any
comparable law purporting to extinguish, by the passage of time, non possessory interests in real
property. Any future Owner, Owner and Orange County agree to do what each must do to
accomplish the 99-year duration of this Declaration of Restrictive Covenants.
Resale Provisions
Owner shall assure compliance with affordability of each of the Project dwelling units through
the Declaration of Restrictive Covenants of which this document is incorporated into. The
Declaration of Restrictive Covenants shall include at least the following elements in their resale
provisions for the Improvements:
If Owner no longer uses the Property as rental property or is unable to continue Ownership, then
the Owner must sell, transfer, or otherwise dispose of its interest in the Property only to an
agency with similar interest in affordable housing and serve families with incomes not exceeding
80% of the area median household income by family size, as determined by the U.S. Department
of Housing and Urban Development at the time of the transfer. The non-profit fund, foundation,
or corporation of like purposes must have established its tax-exempt status under Section 501 (c)
(3) of the Internal Revenue Code.
However, if the Property is sold, transferred, or otherwise disposed of to other than an agency
with similar interest in affordable housing during the term of affordability, the Right of First
Refusal provision of the County's Long-Term Housing Affordability Policy must be followed
and the net sales proceeds (sales price less: (1) selling cost, (2) the unpaid principal amount of
the original first mortgage and (3) the unpaid principal amount of the initial County contribution
and any other initial government contribution secured by a deferred payment promissory note
and deed of trust) or"equity"will be divided 50/50 by the seller of the Property and the County.
The resale provision shall remain in effect for the full affordability period—99 years.
VII. OWNER PERFORMANCE UNDER THIS AGREEMENT
Owner agrees and authorizes the County to conduct on-site reviews, examine client and
contractor records, client applications and to conduct any other procedures or practices to assure
compliance with these provisions.
Owner agrees to not violate any State or Federal laws, rules or regulations regarding a direct or
indirect illegal interest on the part of any employee or elected official of the Owner in the Project
or payments made pursuant to this Agreement.
Owner agrees that to the best of its knowledge, neither the Project nor the funds provided
therefore, and the personnel employed in the administration of the program shall be in any way
or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of
Title 5,United States Code, referred to as the Hatch Act.
Owner shall adopt the audit requirements of the Office of Management and Budget (hereinafter
"OMB") Circular A-110, "Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Nonprofit Organizations," and Circular A-122, "Cost Principles for
Nonprofit Organizations," and OMB Circular A-133, "Audits of Institutions of Higher Education
and Other Non-Profit Institutions." Owner shall submit to the County copy of said audit report.
Owner shall permit the authorized representatives of the County, HUD and the Comptroller
General of the United States to inspect and audit all data and reports of the Owner relating to its
performance under the Agreement.
County shall provide, upon request, copies of all laws, regulations and orders cited in this
Agreement.
Owner and County shall at all times observe and comply with Title 24 CFR Part 92 and all
applicable laws, ordinances or regulations of the Federal, State, County, and local government,
which may in any manner affect the performance of this Agreement, and Owner shall perform all
acts with responsibility to the County in the same manner as the County is required to perform
all acts with responsibility to the Federal government.
Owner hereby assures and certifies that it will comply with the regulations, policies, guidelines
and requirements with respect to the acceptance and use of Bond funds in accordance with the
policies of the County. Also, Owner certifies with respect to the Project that:
1. The Project will be conducted and administered in compliance with:
Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. Sec 2000d et seq.) and
implementing regulations issued at 24 CFR Part I;
Title VIII of the Civil Rights Act of 1968 (Pub. L. 90-208, 42 U.S.C. Sec 2000d at seq.), as
amended; and that the Owner will administer all programs and activities related to housing and
community development in a manner to affirmatively further fair housing;
Section 109 of the Housing and Community Development Act of 1974, as amended; and the
regulations issued pursuant hereto;
Section 3 of the Housing and Urban Development Act of 1968, as amended;
Executive Order 11246-Equal Opportunity, as amended by Executive Orders 11375 and 12086,
and implementing regulations issued at 41 CFR Chapter 60;
Executive Order 11063-Equal Opportunity in Housing, as amended by Executive Order 12259,
and implementing regulations at 24 CFR Part 107;
Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended, and implementing
regulations when published in effect;
The Age Discrimination Act of 1975 (Pub. L. 94135), as amended, and implementing regulations
when published for effect;
The Fair Housing Act (42 U.S.C. 3601-20);
VIII. ADMINISTRATION AND REPORTING REQUIREMENTS
Owner shall submit to the County a quarterly Progress Report no later than the fifth day of the
months of January, April; July; October until the activity has been reported completed.
Miscellaneous Provisions
a. Uniform Administrative Requirements. The Owner must comply with the
applicable uniform administrative requirements of 24 CFR §92.505.
b. Other Program Requirements. The Owner must carry out each activity in
compliance with all Federal laws and regulations described in 24 CFR, Part 92, subpart H except
that the subrecipient does not assume the responsibilities for environmental review or
intergovernmental review.
C. Affirmative Marketing. If HOME funds will be used for housing containing
five (5) or more assisted units, The Owner must prepare and submit an Affirmative Marketing
Plan to the County.
d. Termination of Agreement. The full benefit of the Project will be realized only
after the completion of the affordability periods for all Project dwelling units. It is the County's
intention that the full public benefit of the Project shall be completed under the auspices of the
Owner for the assisted units as follows:
In the event that the Owner is unable to proceed with any aspect of the Project in a timely
manner, and County and the Owner determine that reasonable extension(s) for completion will
not remedy the situation, then The Owner will retain responsibility for requirements for any
dwelling units assisted and County will make no further payments to the Owner.
In the event that the Owner, prior to the contract completion date, is unable to continue to
function due to, but, not limited to, dissolution or insolvency of the organization, its filing a
petition for bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or
perform with provisions of this agreement, then the Owner shall, upon the County's request,
convey to the County the Property assisted with HOME funds. Conveyance shall be at the sole
discretion of County and on a Project dwelling unit by Project dwelling unit basis.
Conveyance shall be on the terms set forth herein:
Conveyance shall occur within thirty (30) days of County and the Owner's agreement of the
Owner's inability to continue as a viable organization. The Owner shall convey the Property to
the County by general warranty deed, free and clear of all liens and encumbrances of record
except those which create a beneficial interest in County (Declaration of Restrictive Covenants
and Deed of Trust).
e. Default, Remedies. This Agreement may be terminated by a non-defaulting
party upon an event of default hereunder, after written notice thereof and thirty (30) days grace
period in which the defaulting party may act to cure. As used herein, the term "an event of
default" shall mean and refer to a failure or act of omission by either party with respect to any
undertaking, obligation, covenant or condition as set forth in this Agreement. With respect to
any event of default, the non-defaulting party may exercise any right available to it at law or in
equity with respect to such default.
f. Books and Records. The Owner shall maintain records of its grant requirements
under this contract for a period of not less than five (5) full fiscal years following the contract
completion date.
i. The Owner shall ensure access to records and financial statements, as necessary,
to provide effective monitoring and evaluation of project performance. Additionally, The Owner
shall submit a copy of its annual audit to the County.
ii. Upon reasonable advance notice, County or its authorized representatives may
from time to time inspect, audit, and make copies of any of The Owner records that relate to this
contract. If any audit by County discloses that payments to The Owner were in excess of the
amount to which The Owner was entitled under this contract, The Owner shall promptly pay to
County the amount of such excess. If the excess is greater than 1% of the contract amount, The
Owner shall also reimburse County its reasonable costs incurred in performing the audit.
iii. The Owner shall maintain files of all tenants, regardless of length of occupancy,
residing in assisted units. Documentation shall verify eligibility for federal assisted housing at
the point of initial tenancy and every subsequent year thereafter for the period of affordability.
Information maintained shall include: tenant income level; name of family members; ethnic data;
family type—e.g. female head of household; disability status; and monthly rent.
iv. The Owner shall maintain records verifying the affordability of the dwelling units.
g. Notices. Any Notice shall be in writing and shall be given by depositing the same
in the United States mail, post-paid and registered or certified, and addressed to the party to be
notified, with return-receipt requested, or by delivering the same in person to an officer or
principal of such party. Notice deposited in the mail in the manner here in above described shall
be effective upon mailing. For purposes of Notice, the addresses of the parties shall, unless
changed as hereinafter provided, be as follows:
i. To the County: Orange County
c/o Housing. Human Rights and Community
Development Department
P.O. Box 8181
Hillsborough, NC 27278
ATTN: Director
ii. To Owner: Inter-Church Council Housing Corporation
P.O. Box 3692
Chapel Hill,NC 27515
ATTN: President, Board of Directors
Neither the County nor Owner may change the person or address to which any future Notice
shall be given as herein provided.
h. No Assignment. No transfer or assignment of the interest of the Owner in this
Agreement shall occur without the prior written consent of the County; neither may The Owner
assign this Agreement without the prior written consent of County.
i. Protection of County's Security Interest. The Owner shall promptly notify the
County of any institution of, adverse determination in, or action or proceeding commenced
which purports to affect the Subject Property or the County's security interest or rights under this
Instrument, including eminent domain, insolvency, code enforcement, civil or criminal
forfeiture, enforcement of Hazardous Materials Laws, fraudulent conveyance or reorganizations
or proceedings involving a bankruptcy or decedent. Failure to comply with this Section shall be
a breach of this Agreement as provided in Section VIII(e). Nothing in this Section shall require
the County to incur any expense or take any action.
j. Conflict of Interest. The Owner agrees to abide by the provisions of 24 CFR
570.611 with respect to conflicts of interest, and covenants that it presently has no financial
interest and shall acquire any financial interest, direct or indirect, that would conflict in any
manner or degree with the performance of services required under this Agreement. The Owner
further covenants that in performance of this Agreement no person having such a financial
interest shall be employed or retained by the Owner hereunder. These conflicts of interest
provisions apply to any person who is an employee, agent, consultant, or elected official or
appointed official of the County, or any designated public agencies or subrecipients that are
receiving funds under the County HOME Investment Partnership Program.
k. Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.
1. Indemnification. To the extent legally possible, The Owner shall indemnify and
hold County, its officers, agents, and employees, harmless from and against any and all claims,
actions, liabilities, costs, including attorney fees and other costs of defense, arising out of or in
any way related to any act or failure to act by The Owner, its employees, agents, officers, and
contractors in connection with this contract. In the event any such action or claim is brought
against County, the Owner shall, upon County's tender, defend the same at the Owner's sole cost
and expense, promptly satisfy any judgment adverse to County or to County and the Owner
jointly, and reimburse the County for any loss, cost, damage, or expense, including attorney fees
suffered or incurred by the County.
m. Subcontracting. The Owner shall not subcontract work under this Agreement, in
whole or in part, without the County's prior written approval. The Owner shall require any
approved subcontractor to agree, as to the portion subcontracted, to comply with all applicable
federal, state, and local laws, rules, ordinances, and regulations at all times and in the
performance of the work and to comply with all applicable obligations of The Owner specified in
this contract. Notwithstanding County's approval of a subcontractor, The Owner shall remain
obligated for full performance of this contract and County shall incur no obligation to any
subcontractor. The Owner shall indemnify, defend, and hold County harmless from all claims of
its contractors.
n. No Joint Venture or Agency. The County, the Owner each agree and
acknowledge that nothing contained herein or otherwise, including, without limitation, any act of
the County, the Owner under this Agreement, shall be deemed or construed to create any
relationship of joint venture,partnership or agency between the parties.
o. ' Effect of Waiver or Forbearance. No failure by the County to insist upon the
strict performance of any term or condition of this Agreement, or to exercise any right or remedy
upon the breach by the Owner of any of its obligations, agreements, or covenants hereunder,
shall be a waiver of such affected term or condition or of such breach; nor shall any forbearance
by the County to seek a remedy for any breach by the Owner be a waiver by the County of its
rights and remedies with respect to that or any other breach.
P. Governing Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of North Carolina. Any litigation arising out of this Agreement
shall be brought in courts sitting in North Carolina,with venue in Orange County.
q. Severability. The provisions of this Agreement are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by the
fact that for any reason any other provision may be invalid or unenforceable in whole or in part.
If any provision of this Agreement or the application thereof to any person or circumstances
shall, to any extent, be or become invalid or unenforceable, the remainder of this Agreement, or
the application of such provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each provision of this
Agreement shall be valid and be enforced to the fullest extent permitted by law. The County,
The Owner agree to substitute for such provision of this Agreement or the application thereof
determined to be invalid or unenforceable, such other provision as most closely approximates, in
a lawful manner, such invalid, illegal or unenforceable provision. If the County, the Owner
cannot agree, they shall apply to a court of competent jurisdiction to substitute such provision as
the court deems reasonable and judicially valid, legal and enforceable. Such provision
determined by the court shall automatically be deemed part of this Agreement ab initio.
r. Equal Opportunity. The Owner shall not discriminate against any employee or
applicant for employment because of race, color, religion, sex, national origin, political
affiliation or belief, age, handicap, or familial status in the implementation of the Project.
S. Headings. Headings are for convenience only and shall not be used to interpret or
construe its provision.
t. Gender; Singular and Plural. As used herein, the neuter gender includes the
feminine and masculine. The masculine includes the feminine and neuter, and the feminine
includes the masculine and neuter and each includes a corporation, partnership or other legal
entity when the context so requires. The singular number includes the plural and vice versa,
whenever the context so requires.
U. Recording. The parties hereto agree that upon notice to the other and at its own
cost and expense, a party may record this Agreement in the Office of Register of Deeds for
Orange County.
V. Compliance with Laws. To the extent applicable, each party hereto agrees to
comply with all laws, ordinances and regulations affecting the Property from and after the date
hereof. Without limiting the generality of the foregoing, the Owner shall comply with all
federal, state and local laws, regulations and ordinances applicable to the expenditure of funds
provided by the County, to purchase and develop the Property.
W. Publicity; Signage. The Owner agrees to provide such publicity with respect to
the County's participation in the development of the Property as the County shall reasonably
require. Any Signage at the Property shall acknowledge the County's role and contribution.
X. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original but all of which together shall constitute on and the
same instrument.
Y. No Third Party Rights. The parties hereto covenant and agree that nothing
contained in this Agreement or any act by the County or the Owner shall be deemed or construed
by the parties or any third party to create any relationship of third party beneficiary, including
third party principal or agent, or to create any right, claim or cause of action against the County,
the Owner or any of their respective officers, agents or employees by any third party.
Z. Performance of Government Functions. Notwithstanding anything in this
Agreement which may be to the contrary, nothing contained in this Agreement shall in any way
stop, limit or impair the County from exercising or performing any regulatory, policing or
governmental powers or functions with respect to the Property including, without limitation,
inspection of the Property in the performance of such functions.
aa. Duration of Agreement. This Agreement shall be effective on the date of
execution and shall remain in effect during the period of affordability required by the Act under
24 CFR Part 92.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have set their hands
and seals on the day and year first above written.
t }j '
ORANGE COUNTY NORTH CAROLINA
U
Frank . Clifto ounty Manager
r �
ATTEST:
Donna Baker
Clerk to the Board of Commissioners
Ap v d a o f and legality
7
�
tte Moo , Staff A torney
This document has been preaudited in accordance with the N.C. Local Government and Fiscal
Control Act.
ji , Clarence Grier, Finance Director
INTER-CHURCH COUNCIL HOUSING
CqqPORATION,n
President
TEST
EXHIBIT A
Property Description
I
EXHIBIT A
Tract 1:
Lying and being in the Chapel Hill Township, Orange County, State of North
Carolina, and being more particularly described as BEGINNING at an iron stake, said
point being the northeast comer of the property of INTER-CHURCH COUNCIL
CORPORATION as conveyed and recorded in Deed Book 240 at Page 961, Orange
County Registry, said point having a NAD 83 North Carolina Coordinate value of North:
795,488.92, East: 1,991,841.23, and being located North 67°40'37" West 1,790.61 feet
from North Carolina grid monument"FRANKLIN"; running thence from said beginning
point and along and with the northwest line of property of Charles B. Fitch and the
northwest right-of-way of Milton Avenue South 32'35'13" West 155.59 feet to an iron
stake in the western most right-of-way corner of Milton Avenue and the northern most
corner of the Orange Community Housing and Land Trust ET Al property, running
thence along and with the northwest line of property of the Community Housing and
Land Trust ET Al South 32°31'20" West 151.69 feet to an iron stake at the northwest
corner of Franklin Grove Homeowners Association Inc. property, running thence along
and with the northwest line of property of Franklin Grove Homeowners Association Inc.
South 32°15'49"West 328.29 feet to an iron stake, thence South 32°27'08" West 205.24
feet to an iron stake at the northwest corner of Elliot Road Partners LLC property,
running thence South 32°04'32" West 278.76 feet to an iron stake, thence continuing
through South 32°04'32" West 2.44 feet to a calculated point in the northeast right-of-
way of Elliot Road, thence running along and with the northeast right-of-way of Elliot
Road North 58°53'36"West 61.11 feet to an iron stake in the southern most corner of the
Church of Reconciliation property, thence leaving said right-of-way and running along
and with the southeast line of property of the Church of Reconciliation North 32°11'24"
East 355.00 feet to an iron stake, thence North 29°17'42" West 224.51 feet to an iron
stake, thence North 14'44'14"East 149.98 feet to an iron stake at the southeast corner of
Thomas and Joanna Wilson property, running thence with the southeast line of property
of Thomas and Joanna Wilson and the southeast line of property of Peter de Leon and
Teri Parker North 14'45'15" East 273.16 feet to an iron stake in the southern line of
property of Rose C. Azar, thence running along and with the southern line of property of
Rose C. Azar, and the southern line of property of Alberto and Jorun Mendivil, and the
southern line of property of Carla G. Daniel North 98'38'14" East 465.54 feet to the
point and place of BEGINNING, containing 5.017 acres, and being shown on plat and
survey by Charles R. Billings, Professional Land Surveyor, dated January 20, 2011, and
entitled "PLAT OF SURVEY "ALTA/ACSM LAND TITLE SURVEY" property of
INTER-CHURCH COUNCIL HOUSING CORPORATION".
Together with
Tract 2:
Lying and being in the Chapel Hill Township, Orange County, State of North
Carolina, and being more particularly described as BEGINNING at an iron stake in the
BTM:440840v1
northeastern right-of-way line of N.C. Highway 54 By-pass, said point of beginning
being the southeast corner of the property of Inter-Church Council Housing Corporation
as conveyed & recorded in Deed Book 413 at Page 406, Orange County Registry, said
point having a NAD 83 North Carolina Grid coordinate value of North: 781,733.69, East:
1,980,685.03, and being located North 42°57'41" West 1,454.56 feet from North
Carolina Grid monument "NEXT";'running thence from said beginning point and along
and with the northeastern right-of-way line of N.C. Highway 54 By-pass North
48°42'37" West 426.12 feet to an iron stake, thence leaving said right-of-way line and
running along and with the property of 1100 NC WEST, LLC North 54°27'07" East
74.03 feet to an existing nail, running thence along and with the property of 1100 NC
WEST, LLC South 74 049'16" East 37.55 feet to an iron stake, thence South 87°53'58"
East 81.25 feet to an iron stake, thence North 52°04'46" East 64.05 feet to an iron stake,
thence North 23°50'49" East 280.87 feet to an iron stake at the southwest corner of
David B. Thomas property, running thence along and with the southern line,of property
of David B. Thomas South 71°58'24" East 191.58 feet to an iron stake, thence South
38°12'35" East 272.77 feet to an iron stake, thence South 24°36'41" East 149.43 feet to
an iron stake in the northwestern line of property of Joffe Zalman, running thence along
and said line of Zalman South 65'2918" West 477.75 feet to the point and place of
BEGINNING, containing 5.385 acres, and being shown on plat and survey by Charles R,
Billings, Professional Land Surveyor, dated.January 20, 2011, and entitled "PLAT OF
SURVEY "ALTA/ACSM LAND TITLE SURVEY" property of INTER-CHURCH
COUNCIL HOUSING CORPORATION".
BTM:440840v1
EXHIBIT B
Scone of Services
Installation of:
1. Energy Star rated refrigerators
2. Energy Star rated ovens/ranges
3. R-30 or higher rated insulation
4. Double pane windows
5. Insulated entry doors
All work must be done in accordance with applicable local building codes.
EXHIBIT C
Project Budget
Source of Funds
Orange County HOME Funds $100,000
Owner may not request disbursement of funds under this Agreement until the funds are needed
for payment of eligible costs. The amount of each request must be limited to eligible costs as
determined by the County's Housing and Community Development Department ("OCHCD").
Funds may be shifted between line items of the Project without prior approval of the County only
to the extent of"Minor Adjustments," defined as actions which do not result in a change in the
Project and so long as such Minor Adjustments do not exceed ten percent (10%) of the line item
total from which the funds are being removed or to which the funds are being added, there is no
increase to the Total Renovation Cost specified in the above budget, and there are only minor
changes to the Plans and Specifications.
. � F,arGu bjf-G
Contractor's and/or Mortgagor's U.S.Department of Housing and OMB No.2502-0044(exp 08131/2003)
Cost Breakdown Urban Development
Office of Housing
Federal Housing Commissioner
Public reportng burden for this collection of Information is estimated to average 4 hours per response,including the time for reviewing itsbuctbns.searching existing
data sources.gathering and maintaining the data needed,and competing and reviewing the collection of information.This information is required to obtain berxefss
HUD may not collect this informatDn and you are not repu-sed 10 Complete iNS form,unless 6 displays a currently vaed OMB Control Number.
Section 227 of the National Housing Ad(Section 126 of One Housing Act of 1954.Public Law SM.12 U S C.,1715r),authorizes the collection of this information The
information Is required for a Worst contractor when an identity of interest exists between the general contractor and the mortgagor orwhen the mortgagor is a non-profit
entity and a coat plus contract has been used The infonnafcn is used by HUD to facriitsls 8+e advances of mortgage proceeds and their monitoring,
Privacy Act Notice.The United States Department of Housing and Urban Development,Federal Housing Administration,is authorized to Wick the Information
requested In this form by value of Tile 12.United States Code.Section 1701 at seq.,and regulations promulgated thereunder at Tale 12,Code of Federal Regulations.
White no assurances or wnlidentleliy is pledged to respondents,HUD generally discloses this data any in response to a Freedom of Information request.
Date: 08.27.2010 sponsor. CHU CO HOUSING
Project No. Building Identification 79 Apartment Units
Name of Project:Elliott Woods&Chase Park Master I Locatim Chapel Hill,NC
This form represents the Contractors and/or Mortgagors firm costs and services as a basis Par disbursing dollar amounts when insured
advances are requested.Detailed instructions for compedng this forth are included on the reverse side.
Line Div. Trade Item cost Trade Description
1 3 Concrete 2OA00 tore airs
2 4 Masonry 0
3 5 Metals 56,182 Rae)n s I Sheet Metal/Flash Metal
4 1 6 Rough Ca 431.654 Rouah ell ent I exterior door&window installation I siding./Flashin lTreatedWood
5 6 Finish Carpentry 115,501 Wood trim I Doors
6 7 Waterproofing 0
7 7 Insulation 2800 blown insulation
6 7 Roofing 80.269 As hat shingles 25 VR
9 7 Sheet Metal 0 Included In Line 3
10 1 tit Doors 126.095 Doors d frames f hardware I access doors
11 6 Windows 115,723 VlnylWindows
12 a Glass 0 Mirrors in rna 20.
13 0 Lath and Plaster 0 WA
14 9 Drywall 67,D00 Interior drywall materials a labor
15 9 Tie Work 0 N1A
18 1 9 Acoustical 0 WA
17 9 1 Wood I'loaring 0 NIA
18 9 Resilient Flooring 0 Inc ided in Line 25
19 9 Pe and Decoration 224,631 Interior Flat Finish with Seml-Gloss Bath anion /,caulk' and sealants/clean
20 10 latles 47,203 Fire ert skoe
ulsheret accessories/vin wire shelving for at stria Irrors
21 11 Special Equipment 0
22 it Cabinets 122,232 Prefabricated cabknets&to s per cabinet layout 4`back lash all areas;
23 it Appliances 132,493 Mw
24 12 Blinds and Shades Artwork 0 Imlixfod in Line 20
25 12 Ca is 133,150 Carpeting and vinyl floorin
26 13 SpeclalConstruction 0 WA
27 14 Elevalors 0 WA
29 15 Plumbing and Hot Water 207.597 Plumbing replace bath vanities/kachen fixtures/pox piping win Bain s;chrome fixtures
29 15 Heal and Ventilation 453,630 HVAC systems
30 15 Air Conditioning 0 Included In file Item 029 above
31 16 Elechlical 200.203 lElectrical s ms i fixtures
32 Subtotal 111111ructursel 2 712111111
33 Accessory Structures 0
34 Total Lines 32 and 33 2,712 006
forth HUD-232H(5195)
previous edil'ion is,pFeotete Page 1913 ref.Handbook 4450.1 h 4460.1
Line Trade Item Cost Trade Description
35 2' _ Earth Work 4_ _ 0
36 2 as UbTdJes 0 _
IT 2 Ronde and AS-Its-
35 ^
2 Sim kosowmarts 23.000 DumpowpadwilHaniScapromps
39 2 Lawns and Planting 16.000 Landow ina Repair
_.40+ 2 Unuaaat Sao condkuns 0 Norrosmdensal and Spe:ut --- -- �-°-
Eeeeaai Land MryrovKmen! OMalm Costs
41 Total Lund M rowm&nta 49,11441 apple.bAW04 N lade inn trtakdc.,�,._ 'rmlti rui az•](drd in vad item!nisdoslt-
42 T.IALSStrocL A Land lopMS____, 2 Tat,dbl Est.Cost Doscriodbri Per mp1
U 1 GonermlRequirements 447,194 OfhSlte Construction 5 —
dd .Subtotal Linos 42 and 43L. 3 206 2
45. BuItdera Omhe d T......-.. 64,104
46 SulidersProet 0 Total If
47 Subtotal I Lines 44thru46 327.4a_ otlterFeet _ Tofst 'S
40 _ -- _ — Buiders''sRisk S 4.963.00 DsmoOdon
49 Other Feas es, e.w to Rua ej,,oI 43 947 Gmketitn S 1000A0 (00593 na included in lade clam Lveakdoun l
50 -.._Dond.f!remlurn �_ _„_23.450 BuWn ParmXfFsas S I%964A0.OnSkDemo 11 -
bt. Trygl forAt Improvements ,., J 338;763,ACTA Sruvey_ 3 15000.00
tiuitd re,pro t.Preid by Means
52 other Than Cash D
Total for Ail lrnprovernents
L53 Less Line 52 _^— 3,330,703 Taal '11 43,447.00 racer 11
I hereby conify that bathe information stated hemrr,as well as any ln!orerallon provided In the accompaniment herewith.Is true and axurats.
1Marnjng. oil Derwhics Its U.S.C.1001,1D10,I0t2 31 U.S.CAIrM.W. 2)
6tn49e9or - Dala Y('
Teter-Church Council HeusinnCorLati n 04-02-1a�o
Contractor housing DI , Doke
Samet Corporation-Alton Tew r r �ff J�(;} 08.27..2010.
FHA aiakita2Analysl) s 13pla TKjCfiirif.s;nOtB horCdstA,tleirst) DaM �•
to_ mob .t� l�Ztl�o�v
HA(CbmiM UMo, ) date
�_...
IF Instructions for Compl Ling Form HUD•2322.
Tlrts form k prepared by the contractor and/nf mortgagor as a requirement far the Issuance of a"commilmehd.Theft"replacement
cost of the project also small at a Willi;for the disburseatentof dollar amounts whorl ilsweo advances are reauestee.A detailed
broaktimn of bimdo itams'is providod along wth speces ko atlardoYr smeunts and trade dikeaf0ons.
A separate foram is prsparad through Fro 3211breach structure type.A wmmabw of these akKtum costs are anteted on One 37r1f a master
form.Land Irnprovemerls,GenWA ReCtticnnnnts and Fees are completed through One 33 on the master 2320 only.
Drte—Date hum was prepared. Unusual site Condgtons—This trade kerrif reflects rock excavation.
Sponser--Name of sponsor or sporauring organization. howater tab{&,a:wsWG cut:nrd MI.retaining u7as,erosion,poor
Project No.--4 Ight-digk 03*r*d pcobet number. draknge and other.on-silo condscns considered unusual
Building Identifica ion—Numbarts!or Lef err(5)of each b0dirg as Cost—Enter the coot being submtted byrae Contractoror bids
easignotod on piano submsed by a qualified subomntracrar kw abeh bade tem.Those
Nam&of Protect-Sponsors designated mama of project. costs ws1 kxtude,as a minimum.prevailing wage ratesas determined
t-ocallon--Streot addross.city and state., by via Seeretaty or Labor.
Oivisian—D vu on numbers end trade items have bean developed Trade Description—Entera bxiddescrip(bn of the work included in
Imm the cost accounting section of the unkxm.ys!am each trade tam.
Accessory structures—This Item reamclr fArmiuras.such aw com-mundy. Other Feet—Includable am fees to be paid by the Conti ncior,such as
storage,maintenance.mecharkcal,lsurwy and pm)W office swowl3p teas not iockidod rove plumbing canned Fees pale or to
bukdings.Also included fife garages and carports of ahurbulFJtngs. be paid by the hbdgagor are not to be included on this(orm.
When OW smeurd th wn on One 33 is 1120,000.00 or 1%of ke 32 Total For All Imprewmants—Thin it the sum of Ones 1 through 50
whicheverts the faster,a separate,tans HUD-2326 win be prepared and is to inchrdw the totalbuidefs prelt More 46).
through me 32 tor Accommy Structures.
form HUD-2:1211(SF95)
Previous edition is cbselete Page 2 of 3 ref.Handbook 445111.1 6 4460.1
Date: October 20,2010
Subject: 221(d)(3)
InChuCo Apartments
053-36057
Chapel Hill,North Carolina
Items of Repairs at a total estimate cost of$3.339.763.00 are identified in the Schedule of
Repairs;Scope of Work; the Contractor's Estimate(2328); Blue Prints and Specifications
by Clinton E. Gravely Architects, dated June,2010.
Concrete Work: Estimated cost of repairs--------------------------------------------------------$20,000
1) Repair/replace gyperete floors as specified and shown on plans.
Metals: Estimated cost of repairs-----------------------------------------------------------------$56,182
1) Replace metal railings as specified and shown on plans.
2) Replace sheet metal and metal flashing as specified and shown on plans.
Rough CWgntLry Work: Estimated cost of repairs---------------------------------------------$431,654
1) DEMO,misc.rough carpentry work
2) Exterior door and window installation
3) Siding,treated wood, and flashing installation
Finish Carpentry Work: Estimated cost of repairs---------------------------------------------$115,501
1) Install trim as specified and shown on plans.
2) Install.interior doors, misc. trim and moldings
Insulation: Estimated cost of repairs-------------------------------------------------------------$28,050
1) Inspect all attic insulation&up-grade to R-38 as specified and shown on plans
2) Install new R-13 insulation at new walls at DEMO areas.
Roofine: Estimated cost of repairs----------------------------------------------------------------$80,269
1) Remove existing roof shingles on all buildings to bare wood, inspect all wood sheathing,
and replace as needed. Replace with new asphalt shingles as specified.
2) Install new ridge vents as specified.
3) Install new aluminum flashing&drip edge as specified.
4) Remove existing vent pipe collars and install new vent pipe flashing and sleeves as
specified.
Doors: Estimated cost of repairs-----------------------------------------------------------------$126,095
1) Provide new insulated doors at front and rear as specified and shown on plans.
2) Provide new interior doors as specified and shown on plans.
3) Provide new door frames as specified and shown on plans.
4) Provide new door hardware for all new doors as specified.
2
5) Provide passage set,dead bolt, and security viewer at each front entry door and passage
set and dead bolt at each rear entry door as specified.
Windows: Estimated cost of repairs-----------------------------------------------------------$115,728
1) Replace vinyl windows as specified and shown on plans.
Drywall: Estimated cost of repairs-------------------------------------------------------------$67,000
1) Repair and/or replace all damaged wallboard as specified.
2) Repair ceilings below bathrooms as specified and shown on plans.
3) Repair wallboard removed for new utilities as shown on plans.
4) Patch walls and corners at new windows and doors as shown on plans.
5) Provide wallboard at HVAC chases and fury-downs as specified and shown on plans.
Painting Work: Estimated cost of repairs------------------------------------------------------$224 831
1) Paint entire interior of each dwelling unit as specified and shown on plans.
2) Paint all doors and trim with semi-gloss paint as specified.
3) Prepare and sand all surfaces prior to painting as specified.
4) Paint and/or spray ceilings as specified.
5) Caulk all joints as specified.
Specialties: Estimated cost of repairs-----------------------------------------------------------$ 47 203
1) Provide new finish hardware as specified and shown on plans.
2) Provide new bath accessories in each bath as specified and shown on plans.
3) Provide new shelving as specified and shown on plans.
4) Provide new fire extinguishers as specified and shown on plans.
Cabinets: Estimated cost of repairs--------------------------------------------------------------$192,232
1) Provide new kitchen cabinets as specified and shown on plans.
2) Provide new countertops as specified and shown on plans.
Appliances: Estimated cost of repairs-----------------------------------------------------------$132,483
1) Provide new frost-free refrigerators with Energy Star rating as specified and shown on
plans.
2) Provide new electric range and ovens as specified and shown on plans.
3) Provide new re-circulating range hoods as specified and shown on plans.
Carpets: Estimated cost of repairs--------------------------------------------------------------$133,150
1) Provide new carpet as specified and shown on plans.
2) Provide new vinyl flooring as specified and shown on plans.
Plumbing Work: Estimated cost of repairs----------------------------------------------------$207,597
1) Inspect plumbing systems and replace damaged washers, P-Traps, and valves.
2) Replace water closets as specified and shown on plans.
3) Provide all plumbing fixtures as specified and shown on plans.
3
4) Provide fittings and hook-ups of all plumbing fixtures and appliances as specified.
5) Replace water heaters and valves as specified and shown on plans.
6) Provide pan under water heaters as specified.
7) Locate existing exterior waste clean-outs and provide new clean-outs as shown on plans.
8) Remove exposed galvanized pipe and install Schedule 40 PVC pipe.
9) Provide remote-read, sub-meter,water meters as specified and shown on plans.
10)Replace bath valves and shower heads(low-flow)as specified.
Heat&Ventilation: Estimated cost of repairs-------------------------------------------------$453,830
1) Remove and properly dispose of all existing condensing and air handlers as specified and
shown on plans.
2) Provide split system heat pumps(13 SEER)as specified and shown on plans.
3) Pipe condensate through bulkhead or furred wall as specified and shown on plans.
4) Provide sealed galvanized sheet metal pan and drain under each air handler unit as
specified.
5) Provide leveled pad for each condensing unit(top surface 2"minimum above cut grass).
6) Hang AHU on manufacturer supplied wall hanger as specified and shown on plans.
7) Provide safety shut-off for heat pump pan overflow as specified and shown on plans.
8) Provide ductwork, supply diffuser, and return-air grilles as specified and shown on plans.
Electrical Work: Estimated cost of repairs----------------------------------------------------$280,203
1) Inspect electrical system and repair and/or replace all damaged components as specified.
2) Confirm all circuits are properly wired with tester and re-wire all that are incorrect.
3) Add GFI receptacles to conform to latest building code requirements as specified.
4) Replace electrical panels as specified and shown on plans.
5) Replace damaged and/or missing switches, plates, and receptacles as specified.
6) Replace all bathroom exhaust fans as specified and shown on plans.
7) Install HUD approved hardwired smoke detectors with battery back-up as specified and
shown on plans.
8) Replace all exterior and interior lighting fixtures as specified and shown on plans.
9) Wire and hook-up new HVAC systems.
10)Provide internet capable wiring in bedrooms and living rooms as specified.
11)Provide cable TV connections for bedrooms and living rooms as specified.
12)Repair service entrance cables where conductors are exposed as specified.
13)Provide wiring and phone jacks in all bedrooms &living rooms as specified.
Roads and Walks: Estimated cost of repairs--------------------------------------------------$ 10,000
1) Repair and re-pour concrete walk trip hazards as shown on plans.
Site Improvements: Estimated cost of repairs------------------------------------------------$ 23,000
1) Install new 6-foot high PVC, solid slat,privacy fence with gate around each trash
dumpster as specified and shown on plans.
2) Repair/replace handicapped ramps as specified and shown on plans.
4
Lawns and Planting: Estimated cost of repairs-----------------------------------------------$ 16,000
1) Provide additional plantings and mulch thru-out property as shown on plans.
2) Spread topsoil and re-seed bare areas as required.
3) Prune existing trees and shrubs of dead wood to clear walls and roof.
4) Identify low areas that hold water and fill with topsoil and seed.
5) Clear all storm drains of debris and soil.
6) Provide landscaping around project entry signs.
7) Re-grade flat site areas to slope away from buildings and provide swales.
General Conditions:
1) Provide evidence of maintained Workman Compensation Insurance coverage as
specified.
2) Provide evidence of maintained Liability Insurance($500,000/$1,000,000).
3) All work shall conform to all applicable codes.
4) All work shall be professional and guaranteed and warranted for one year.
5) All materials and products shall conform to manufacturer's recommendations.
6) All bidders shall visit and inspect jobsite prior to bidding to confirm all quantities and
measurements.
7) "Provide"means furnish all materials, equipment, labor, and insurance to complete
project.
8) Contractor shall complete punch list and inspect each unit prior to turn-over to property
manager.
9) Contractor shall final clean each unit immediately prior to turn-over to property manager.
10)Contractor shall prepare sequencing plan (schedule)for re-location and staging of work
to property manager and HUD Architectural &Engineering Branch prior to starting
work.
The total cost of these repairs are estimated to be$3,339,763.00.
Randy W. ickers,Construction Analyst
HUD Greensboro Multifamily HUB