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HomeMy WebLinkAbout2000 NS Housing - Orange Community Housing Corporation DRAFT 6 NORTH CAROLINA ORANGE COUNTY GRANT AGREEMENT This is an AGREEMENT between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and ORANGE COMMUNITY HOUSING CORPORATION, a North Carolina nonprofit corporation (hereinafter referred to as "OCHC."). The date of this Agreement is WITNESSETH WHEREAS, the Orange County HOME Consortium has designated $57,000 in FY 1996 HOME funds and $74,000 in FY 1999 HOME funds for the purpose of conveying these funds to Orange Community Housing Corporation, Inc. to assist with the development of fourteen (14) townhome units on Legion Road and Scarlette Drive in Chapel Hill, which property is more particularly described in Exhibit A attached hereto and made a part of this Agreement (hereinafter referred to as the "Property"); and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so designated in an agreement dated August 27, 1992, and amended January 26, 1993, and July 28, 1993, and as such is the lead entity in a representative capacity for all members of the Orange HOME-Consortium for the purposes of carving 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.) el. M.) (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, Orange Community Housing Corporation intends to develop the Property for the purpose of constructing housing opportunities for families earning 80% and below of the HUD area median income in partnership with the Community Land Trust in Orange County, Incorporated; and WHEREAS, in cooperation with the Community Land Trust in Orange County, NC, Inc., the land would be held in a Community Land Trust (CLT), ensuring affordability of the homes for at least 99 years; NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: 1. OCHC agrees to design, market, and implement the Scarlette Drive Project whereby HOME funds will be used for development costs for constructing DRAFT 7 fourteen (14) townhomes that will be placed in the CLT. The townhomes on that land shall remain affordable to low-income households (Homebuyer), households whose annual income is not greater than 80% of the median income for the area, as determined by HUD published area median income for a minimum of ninety- nine (99) years. 2. HOME Assisted Units Designation. HOME funds will be used as part of OCHC's Scarlette Drive construction budget. HOME assisted units must be the principal residence of the first time homebuyer, low-income household. All units, five or more, that include assistance with HOME funds, will have a HOME assisted unit designation. 3. Progress Payments. The County shall make progress payments, when requested by OCHC, 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 OCHC identified in the Budget as described in attached Exhibit B. Payment requests shall be accompanied by copies of documentation for actual expenses. Request amounts shall be verified by County for satisfactory completion prior to payment. 4. Time for Commencement and Completion. OCHC shall commence the Work immediately following execution of contract and complete construction and sale of the townhomes within eighteen (18) months of execution of contract. Additionally, OCHC will be responsible for providing status reports to the County quarterly detailing the project activities until project completion. Completion date shall be designated as the closing date of the purchase of the final Scarlette Drive property. OCHC may, at its option, submit a written request for a delay of completion for County approval. Any delay in the completion date shall be approved by County. In the event that OCHC is unable to proceed with any aspect of the project in a timely manner, and County and OCHC determine that reasonable extension(s) for completion will not remedy the situation, then the conditions of termination shall be in effect. OCHC shall monitor HOME assisted units for affordability for the period of affordability — ninety-nine (99) years. Final contract completion date shall be the latest end date of all HOME assisted unit affordability periods. 5. Affordability Requirement. HOME assisted units must remain affordable for period of ninety-nine years. OCHC retains full responsibility for compliance with the HOME affordability benefit for HOME assisted units, unless HOME affordability restrictions are terminated due to the occurrence of any of the D /�p rr R/ 8 following events: 1) foreclosure, 2) transfer in lieu of foreclosure, or 3) assignment of an FHA insured mortgage to HUD. OCHC shall assure compliance with affordability of HOME assisted units through the CLT Land Lease Agreement restrictions and by recording Exhibit C "Declaration of Restrictive Covenants" on every HOME assisted property. 6. Resale Provisions. OCHC shall assure compliance with affordability of HOME assisted units through the CLT Land Lease resale restrictions. The CLT Land Lease agreement shall include at least the following elements in their resale provisions for the Improvements: 6.1 If the original Homebuyer no longer uses the Improvement as a principal residence or is unable to continue ownership, then the Homebuyer must sell, transfer, or otherwise dispose of its interest in the Improvement only to a low-income household, one whose combined income does not exceed 80% of the median household income as determined annually by HUD, to use as their principal residence. 6.2 The original Homebuyer shall receive a fair return on investment (including the Homebuyer's investment and any capital investment). 6.3 The resale provision shall remain in effect for the full HOME affordability period —99 years. 7. Property Standards. HOME assisted units must, at a minimum, meet the housing quality standards of the HOME program 24 CFR 982.401. In addition, HOME assisted units must meet all applicable local codes, ordinances, and zoning ordinances. The housing must meet the accessibility requirements in the regulations referenced 24 CFR 5.105 (a) which implement the Fair Housing Act and Section 504 of the Rehabilitation Act of 1973. 8. Miscellaneous Provisions. a. Termination of Agreement. The full HOME benefit of the Scarlette project will be realized only after the completion of the HOME affordability periods for all properties constructed with HOME 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 OCHC for the HOME assisted units as follows: i. In the event that OCHC is unable to proceed with any aspect of the Scarlette Drive project in a timely manner, and County and OCHC determine that reasonable extension(s) for completion will not remedy the situation, then DF V�9 OCHC will retain responsibility for HOME requirements for any HOME units assisted and County will make no further payments to OCHC. ii. In the event that OCHC, prior to the close of the final affordability period, is unable to continue to function due to, but, not limited to, closure or insolvency of the organization, filing a petition of bankruptcy or similar proceedings, or is adjudged bankrupt or fails to comply or perform with provisions of this agreement as required by federal HOME regulations, then OCHC shall, upon the County's request, convey to the County the properties assisted with HOME funds and included in the CLT. Conveyance shall be at the sole discretion of County and on a property by property basis. Conveyance of properties shall be on the terms set forth herein: Conveyance of properties shall occur within thirty (30) days of County and OCHC's agreement of OCHC's inability to continue as a viable organization. OCHC shall convey the subject properties to City by statutory warranty deed, free and clear of all liens and encumbrances of record. 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. . OCHC shall maintain records of its HOME grant requirements under this contract for a period of not less than five (5) full fiscal years following completion date of this contract as follows: i. OCHC 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 OCHC's records that relate to this contract. If any audit by County discloses that payments to OCHC were in excess of the amount to which OCHC was entitled under this contract, OCHC shall promptly pay to County the amount of such excess. If the excess is greater than 1% of the contract amount, OCHC shall also reimburse County its reasonable costs incurred in performing the audit. ii. OCHC shall maintain files of all Homebuyers, regardless of length of occupancy, residing in HOME assisted units. Documentation shall verify DF;V-- 10 eligibility for federal HOME assisted housing, at the point of initial closing on the unit, and every subsequent Homebuyer thereafter for the period of affordability. Information maintained shall include Homebuyer income level, ethnic data, female head of household, and disability status and Property and Improvement purchase price. iii. OCHC shall maintain records verifying the affordability of the HOME assisted units. Each party agrees that any authorized representative of the County, the State, the U.S. Department of Housing and Urban Development and Comptroller General of the United States shall, at all reasonable times, have access to and the right to inspect, copy, audit and examine all of the books, records and other documents relating to the grant and the fulfillment of this Agreement for a period of five (5) fiscal years following the completion of the Project. d. Conflict with HOME Agreement. Notwithstanding anything herein to the contrary, the parties hereto acknowledge the due execution of a HOME Program Agreement between the County and the U.S. Department of Housing and Urban Development and agree that any conflict between the provisions, requirements, duties or obligations of this Agreement and the HOME Agreement shall be resolved in favor of the HOME Agreement. e. 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: L To the County: Orange County c/o Housing and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director ii. To OCHC: OCHC P.O. Box 307 Carrboro, NC 27510 ATTN: Executive Director DW r7T 11 Either the County or OCHC may change the person or address to which any future Notice shall be given as herein provided. f. No Assignment. No transfer or assignment of OCHC interest in this Agreement shall occur without the prior written consent of the County. g. Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. h. Indemnification. To the extent legally possible, OCHC shall indemnify and hold City, 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 OCHC and OCHC's employees, agents, officers, and contractors in connection with this contract. In the event any such action or claim is brought against City, OCHC shall, upon City's tender, defend the same at OCHC's sole cost and expense, promptly satisfy any judgment adverse to City or to City and OCHC, jointly, and reimburse City for any loss, cost, damage, or expense, including attorney fees suffered or incurred by City. L Subcontracting. OCHC shall not subcontract work under this contract, in whole or in part, without County's prior written approval. OCHC 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 OCHC specified in this contract. Notwithstanding County's approval of a subcontractor, OCHC shall remain obligated for full performance of this contract and City shall incur no obligation to any subcontractor OCHC shall indemnify, defend, and hold City harmless from all claims of its contractors. j. No Joint Venture or Agency. The County and OCHC each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, any act of the County or OCHC under this Agreement, shall be deemed or construed to create any relationship of joint venture, partnership or agency between the parties. k. 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 OCHC 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 OCHC be a waiver by the County of its rights and remedies with respect to that or any other breach. DRA 12 I. 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 sifting in North Carolina, with venue in Orange County. M. 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 OCHC 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 OCHC cdnnot 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. n. Equal Opportunity. OCHC shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. 0. Headings. Headings are for convenience only and shall not be used to interpret or construe its provision. P. 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. q. 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. r. 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, OCHC shall r� DR" 13 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. S. Publicity; Signage. OCHC 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. t. 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. U. No Third Party Rights. The parties hereto covenant and agree that nothing contained in this Agreement or any act by the County or OCHC 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, OCHC or any of their respective officers, agents or employees by any third party. V. 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. DR A r-"r 14 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. COUNTY OF ORANGE, NORTH CAROLINA (SEAL) John M. Link, Jr., County Manager ATTEST: Beverly A. Blythe Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY This is to certify that on this day personally came before me Beverly A. Blythe, with whom I am personally acquainted, and being by me duly sworn, says that John M. Link, Jr. is the County Manager of Orange County, NC, and that she the said Beverly A. Blythe, is the Clerk to the Board of Commissioners of the County of Orange, the body politic and corporate named within and which executed the foregoing instrument; that she knows the common seal of said County; that the seal affixed to said instrument is said common seal; that the name of Orange County was subscribed thereto by the said County Manager of Orange County, NC and said Beverly A. Blythe subscribed their names hereto and said common seal was affixed, all by order of the Board of County Commissioners of Orange County and that said instrument is the act and deed of Orange County. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: D IA CT 15 Orange Community Housing Corporation (SEAL) President ATTEST: Secretary NORTH CAROLINA ORANGE COUNTY I, , Notary Public in and for the above named County and State, do hereby certify that on this day personally appeared before me with whom I am personally acquainted, who, being by me duly sworn, says at he is Secretary and that is President of OCHC, a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal and attested to by its Secretary. Witness my hand and notarial seal, this the day of 2000. Notary Public My commission expires: Approved as to form and legality Geoffrey Gledhill, County Attorney This document has been preaudited in accordance with the N.C. Local Government and Fiscal Control Act. Kenneth Chavious, Finance Director