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HomeMy WebLinkAbout2001 S Housing - Community Development Block Grant Award Richmond Hills Infrastructure/-/~! o/ i° Prepared By: Geoffrey E. Gledhill, Attorney at Law, P.O. Drawer 1529, Hillsborough, North Carolina 27278 After recording, return to: ~c~~~~~~~~~~~gQ;~g~~~~, ~• ~31 • r~ - Z/~ ~'~~i~b3~i~~$.'~p.~fi~ Beverly Blythe, Orange Co . Comrs . 9~~~-~-~ 7.~5 ~ ~ ~ _ RETURN THIS COPY TO THE CLERK'S NORTH CAROLINA OFFICE FOR THE PERMANENT AGENDA FILE ORANGE COUNTY DEVELOPMENT AGREEMENT ~ ~~""' P~ "+"" This is an AGREEMENT between ORANGE COUNTY, NORTH CAROLINA, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and HABITAT FOR HUMANITY OF ORANGE COUNTY, NC, INC. , a North Carolina non-profit housing organization (hereinafter referred to as "Habitat"). The effective date of this agreement is January 18, 2001. WITNESSTH WHEREAS, Habitat intends to purchase a 41 acre tract of land in the Efland-Cheeks community in Orange County (herein after referred to as the "Property"), and described in EXHIBIT A attached hereto and incorporated herein; and WHEREAS, Habitat intends to construct a 43 unit subdivision with dwelling units available to first-time homebuyers earning up to 80% of HUD area median income; and WHEREAS, a first-time homebuyer for the purposes of this program is defined as any household earning up to 80% of HUD area median income that has not owned a home within the past three (3) years including households living in manufactured housing not permanently affixed to a foundation, or owner-occupants of homes not feasible for rehabilitation. WHEREAS, Orange County desires to participate in this project and has received a Community Development Block Grant (CDBG) from the N.C. Department of Commerce- Division of Community Assistance (DCA) in the amount of $250,000 to used for the installation of infrastructure (water, sewer, streets) on the Property as detailed in the July 2000 Housing Development Application (herein after referred to as the "Project"); and NOW, THEREFORE, in consideration of the mutual covenants, promises, and representations contained herein, it is agreed between the parties hereto as follows: l. a. Habitat shall construct twenty-five (25) dwelling units as defined in the Project, obtain all permits and licenses necessary to construct the homes on the Property, and comply with applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy Standards. The Project shall be undertaken without residential displacement. b. Habitat shall sell the newly constructed dwelling units to qualified buyers whose income is up to 70% 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 sale by the following scenario. Eighteen (18) families must be TANF or TANF eligible aooK2199 PAGE394 families with incomes that do not exceed 50% of the area median household income. The remaining seven (7) families must have incomes that do not exceed 70% of the area median household income. c. The CDBG funding provided by the County will be provided as a grant. d. The period of affordability will be 99 years as described in the documents related to the 1997 Orange County Housing Bond aspect of this project which documents are recorded in the Orange County Registry as follows: (1) Development Agreement in Book 2087/Page 205, (2) Declaration of Restrictive Covenants in Book 2087/264, and (3) Deed of Trust in Book 2087/Page 271. e. Habitat is responsible for soliciting buyers for the dwelling units constructed on the Property. Habitat andlor its buyers shall be responsible for securing permanent mortgage financing for the homes built on the Property. f. Habitat is responsible for verifying the income of the homebuyers, explaining the affordability requirements and certifying by written documentation signed by the homebuyer that the program requirements have been fully explained. Habitat shall maintain purchaser files as part of its Books and Records as required and for the period of time required by Section 6.c. of this Agreement. 2. Progress Payments. The County shall make progress payments, when requested by Habitat, as the work progresses. Payments shall be based upon work completed and approved by County. Progress payment requests shall be based on actual costs incurred by Habitat identified in the Project Budget as described in July 2000 Housing Development Application. Payment requests shall be accompanied by copies of documentation for actual expenses. Request amounts shall be verified by the County for satisfactory completion prior to payment. 3. Time for Commencement and Completion. Actual construction must begin within six months of the date of this Agreement and must be completed by December 31, 2002. Habitat will be responsible for providing status reports to the County quarterly detailing the project activities until project completion. In addition, Habitat agrees to furnish to the County a copy of its annual audit, performed by a certified public accountant within 90 days of the end of each fiscal year until the Project is complete. The Project completion date is the closing date of the purchase by a qualified buyer of the last of the twenty-five units to be constructed for first time homebuyers. In the event that Habitat is unable to proceed with any aspect of the Project in a timely manner, and County and Habitat determine that reasonable extension(s) far completion will not remedy the situation, then the Termination of Agreement provisions of this Agreement (Section 6.a.) shall pertain. Habitat may, at its option, submit a written request for a delay of completion for County approval. The County may, at its option, approve any delay in the completion date or declare Habitat in default. Habitat shall monitor the constructed units for affordability for the period of affordability 2 ~2~.99 Pac~395 - ninety-nine (99) years. Final contract completion date shall be the latest end date of all assisted unit affordability periods. 4. Affordability Requirement. Each unit must remain affordable for a period of ninety- nine years. Habitat retains full responsibility for compliance with the affordability requirement for assisted 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 Section 5 of this Agreement pertain. Habitat shall assure compliance with affordability of assisted units by having recorded, at the time it sells each of the twenty-five dwelling units, a"Declaration of Restrictive Covenants" on the Property. This Declaration shall constitute and remain a first lien on the Property during the period of affordability. It is further the responsibility of Habitat to rerecord the Declaration of Restrictive Covenants no later than one day before the expiration of 30 years of the date of its sale of each of the twenty-five dwelling units in the event the homeowner purchasing the property from Habitat is still the owner of the dwelling unit at the time of the rerecording. 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 Section of this Agreement that the 99 year affordability requirement contained herein be accomplished and that Habitat and the County will do what is necessary to ensure that the same is not extinguished 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. Both Habitat and County agree to do what each must do to accomplish the 99 year affordability requirement. 5. Resale Provisions. Habitat shall assure compliance with affordability of assisted units through the Declaration of Restrictive Covenants. The Declaration of Restrictive Covenants shall include at least the following elements in their resale provisions for the Improvements: 5.1 If the buyer no longer uses the Property as a principal residence or is unable to continue ownership, then the buyer must sell, transfer, or otherwise dispose of their interest in the Property only to a qualified homebuyer, i.e., a low-income household, one whose combined income does not exceed 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, to use as their principal residence. 5.2 However, if the property is sold during the term of affordability to a non-qualified homebuyer, the Right of First Refusal provision of the New and Existing First- Time Homebuyer Program portion of the County's Long-Term Housing Affordability Policy must be followed and the net sales proceeds (sales price less: (1) customary seller's closing costs, (2) the unpaid principal amount of the original first mortgage and (3) the unpaid principal amount of the 1997 Orange County Housing Bond Program contribution and any other future government 3 B~K 21~ P;.GE ,.~9~ 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. 5.3 The resale provision shall remain in effect for the full affordability period - 99 years. 6. Miscellaneous Provisions. a. Termination of Agreement. The full benefit of the Project will be realized only after the completion of the affordability periods for all properties constructed with funds provide affordable units to low-income families. It is the County's intention that the full public benefit of this project shall be completed under the auspices of Habitat for the assisted units as follows: i. In the event that Habitat is unable to proceed with any aspect of the Project in a timely manner, and County and Habitat determine that reasonable extension(s) for completion will not remedy the situation, then Habitat will retain responsibility for requirements for any dwelling units assisted and County will make no further payments to Habitat. ii. In the event that Habitat, 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 Habitat shall, upon the County's request, convey to the County the properties assisted with funds. Conveyance shall be at the sole discretion of County and on a dwelling unit by dwelling unit basis. Conveyance of properties shall be on the terms set forth herein: Conveyance of properties shall occur within thirty (30) days of County and Habitat's agreement of Habitat's inability to continue as a viable organization. Habitat shall convey the subject properties to 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). b. 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. c. Books and Records. Habitat 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. 4 eoa~ 2~.99 P~cE 397 i. Habitat shall ensure access to records and financial statements, as necessary, to provide effective monitoring and evaluation of project performance. Upon reasonable advance notice, County or its authorized representatives may from time to time inspect, audit, and make copies of any of Habitat's records that relate to this contract. If any audit by County discloses that payments to Habitat were in excess of the amount to which Habitat was entitled under this contract, Habitat shall promptly pay to County the amount of such excess. If the excess is greater than 1% of the contract amount, Habitat shall also reimburse County its reasonable costs incurred in performing the audit. ii. Habitat shall maintain files of all buyers, regardless of length of occupancy, residing in assisted units. Documentation shall verify eligibility for federal assisted housing, at the point of initial closing on the unit, and every subsequent buyer thereafter for the period of affordability. Information maintained shall include buyer income level, ethnic data, female head of household, and disability status and Property and Improvement purchase price. iii. Habitat shall maintain records verifying the affordability of the assisted units. d. 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 and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director ii. To Habitat: Habitat for Humanity of Orange County, NC, Inc. P.O. Box 407 Hillsborough, NC 27278 ATTN: Executive Director Either the County or Habitat may change the person or address to which any future Notice shall be given as herein provided. e. No Assignment. No transfer or assignment of the interest of Habitat in this Agreement shall occur without the prior written consent of the County; neither may Habitat assign this Agreement without the prior written consent of County. f. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. 5 ec~2199 ~~cE398 g. Indemnification. To the extent legally possible, Habitat 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 Habitat, its employees, agents, officers, and contractors in connection with this contract. In the event any such action or claim is brought against County, Habitat shall, upon County's tender, defend the same at Habitat's sole cost and expense, promptly satisfy any judgment adverse to County ar to County and Habitat jointly, and reimburse County for any loss, cost, damage, or expense, including attorney fees suffered or incurred by County. h. Subcontracting. Habitat shall not subcontract work under this contract, in whole or in part, without County's prior written approval. Habitat 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 obligations of Habitat specified in this contract. Notwithstanding County's approval of a subcontractor, Habitat shall remain obligated for full performance of this contract and County shall incur no obligation to any subcontractor Habitat shall indemnify, defend, and hold County harmless from all claims of its contractors. i. No Joint Venture or Agency. The County and Habitat each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, any act of the County or Habitat under this Agreement, shall be deemed or construed to create any relationship of joint venture, partnership or agency between the parties. j. 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 Habitat of any of its obligations, agreements, or covenants hereunder, shall be a waiver of such affected term or condition or of such breach; nar shall any forbearance by the County to seek a remedy for any breach by Habitat be a waiver by the County of its rights and remedies with respect to that or any other breach. k. 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. 1. 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 and Habitat 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 and Habitat 6 ~~~~ ~~~ 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 b ini i. m. Equal Opportunity. Habitat 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 this Project. Further, Habitat shall provide a Statement regarding the utilization of minority and women- owned businesses in the planning and development of the Project. n. Headings. Headings are for convenience only and shall not be used to interpret or construe its provision. o. 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. p. 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. q. 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, Habitat 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. r. Publicity; Signage. Habitat 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. s. 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. t. No Third Party Rights. The parties hereto covenant and agree that nothing contained in this Agreement or any act by the County or Habitat 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, Habitat or any of their respective officers, agents or employees by any third party. u. 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 7 8001~ ~G1~ PAGE'~QQ governmental powers or functions with respect to the Property including, without limitation, inspection of the Property in the performance of such functions. 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. ORANGE COUNTY, NORTH CAROLINA '~ ~~~~-~-- ~ -. - ~ ~ Stephen H. Halkiotis, Chair Orange County Board of Commissioners / , `,~ ; .~ ~~ ~ ~YJ ATTEST: Beverly A. B he Clerk to the oard of Commissioners Approyed as to forn3 and legality County Attorney This document has been preaud' d in ~co ance with the N.C. Local Government and Fiscal Control Act. ~~ , Kenneth Chavious, Finance Director NORTH CAROLINA ORANGE COUNTY I, a Notary Public of the County and State aforesaid, certify that Beverly A. Blythe personally came before me this day and ac~cnow~dged that she is Clerk to the Board of Commissioners for Orang~ ort Carolina and that by authority duly given and 6~~ as the act of said County, the foregoing instrument was signed in its name bx~th~i ~I~~,ir~v~ said Board of Commissioners and attested by her as Clerk to said Board of Cc~~~s~`c~ ~ ;`'~ "F , ,~~~~ ~,~~rit~tA~l#,, . ~ ~~'~ : ~ , r Witness my hand and notarial seal, this the _~_day of '~ ~,~~~ ~ ,~ u ~~ , ~~ ~,. ~; , ,... - < = o x" ~ ~ ~ ~ ,~p Notary Pu c ;'t' ~ ~`"` ' ~'`:~ ` ,~~ ~~ . N.~ , `~~ My commission expires: /~- /,3 - !~ ~ ~,,~ ~`~e~c~U ~\~,, 8 ~ 2199 P~:GE 401 Habitat for ~Iumanity of Orange County, NC, Inc. (SEAL) ~ `~-- ~- ~ , President ATTEST: C~1 ~ GZ'Th.l4 A-ssr s~an ~ , Secretary NORTH CAROLINA ORANGE COUNTY I, ~ l, ~.,, n ~ ~~~,,~-~ .v ~~, Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me M,v- r~- G- ,~ fl~~ t~i'tTi whom I am personally acquainted, who, being by me duly sworn, says at he i~%~ecretary and thatS+~~- h~~cr v. •. is President of Habitat for Humanity of Orange County, NC, Inc., a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoin~ in.~ ment was signed in its ' name by its President, s~a d attested to by its'~S"ecfetary. ~ / ._. _ ,--~-- __.. Witness my hand and notarial,seaT; this the ~ day of ~~r~,,~ ~.~ 2001. My commission expires: ~'~ ~~' ~~ ~ F= ILEL~ 1~~ ~='E.L~ ~C.O.~ g ai~ t}~: ~'~': C~t7pm FiO~~~. ~j.`~Y, f't'i+~r~ :~17;~ - 4~~}'~ ,:lc~yc~} M. Pe~r~car~ R.~~-li~~ter ~~ I~t~t=~d~, C~r~tnq~ i=o~~nt:•,r, N. C. 'u~~~:: ~~ ,B,g`'~,..,. e `w ~.h `~E:4umepq~ ~` `: . w~d' p4 0~ ~g ~ '~? ° ' `Z, . • . :~ ~~~~ ~ ~'`~~' . .~ ~~~~. . C~. ~~~~~ ~~~'` •'t~ ° p° ~ . ~~~~C~~1~~~''~~ Stare of Narth Carolina-Orange County The foregoing cenificate(s) of Evelyn M. Cecil and Dianne G. Brown ~`~C~p[t~ ~Notaries) Public for the Designated Govern- mental units i~(are) certified to be correct. See filing cenificates her,~~t h This the 1 day of F e b. A Dg~ 2 0 01 Joyce H. Pearson ' ~ ~jj Register of Deeds By: ~~~ ~s~xt / Deputy eoox 219~ P~:~E 4a~ Exhibit A Property Description Being all of Tract Three as shown on the plat entitled "Final Plat of Carl Clyde McAdams" recorded in Plat Book 83 at page 46, in the Office of the Register of Deeds of Orange County, North Carolina.