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HomeMy WebLinkAboutAgenda - 01-16-1996 - VIII-F i 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No ACTION AGENDA ITEM ABSTRACT Meeting Date: January 16, 1996 SUBJECT: HOME Program - Creel Street -------------------------------- ------------------------------------------------- DEPARTMENT: Housing/Comm. Dev. PUBLIC HEARING YES NO x -------------------------------- ------------------------------------------------- ATTACHMENT(S) : INFORMATION CONTACT Development Agreement Tara L. Fikes, x 2490 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 -------------------------------------------------------------------------------------- PURPOSE: To authorize the transfer of two lots on Creel Street in Chapel Hill from the Orange Community Housing Corporation, one to the Joint Orange Chatham Community Action Agency, Inc. (JOCCA) and the other to Habitat for Humanity, Orange County, NC, Inc. and authorize the Chair to execute the Development Agreement with these two agencies on behalf of the Orange County HOME Consortium. BACKGROUND: On February 15, 1994, the County entered into a Development Agreement with the Orange Community Housing Corporation. This agreement provided $32,000 in County HOME funds to acquire two lots on Creel Street in Chapel Hill and obligated OCHC to build two houses on these lots for sale to first-time homebuyers. OCHC, in turn, should have constructed two homes for selected buyers and completed the sale of the homes by June 30, 1995. OCHC did not fulfill this obligation. Both JOCCA and Habitat for Humanity have expressed an interest and willingness to develop these lots within the next 12 months. Therefore, the Orange County HOME Council recommends the transfer of one lot to each of the two above named agencies. Upon transfer, the existing note and deed of trust with OCHC will be released and a new note and deed of trust in the same form shall be executed by JOCCA and Habitat for Humanity. In addition, a Development Agreement must be executed with these agencies in the form of the document included with this abstract and approved by the County Attorney. County staff has spoken with Bill Bunting, Housing Production Officer of the N.C. Housing Finance Agency, the funding source, and he has provided a verbal agreement with this recommendation. The County is the lead entity for the Orange County HOME Consortium and as such acts in a representative capacity for all members of the Consortium in administering the HOME Program. RECOMMENDATION: The Manager recommends authorizing the transfer of two lots on Creel Street in Carrboro from the Orange Community Housing Corporation one to the Joint Orange Chatham Community Action Agency, Inc. (JOCCA) and the other to Habitat for Humanity, Orange County, NC, Inc. and authorize the Chair to execute the Development Agreement with these two agencies upon the County Attorney's review and approval. A 2 NORTH CAROLINA ORANGE COUNTY DEVELOPMENT 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 a North Carolina nonprofit corporation (hereinafter referred to as "). The date of this Agreement is WITNESSETH WHEREAS, the Orange County HOME Consortium has expended $ in FY 1992 HOME funds for the purpose of acquiring 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 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 carrying out the HOME Program in accordance with the Title II of the Cranston-Gonzalez National Affordable Housing Act (Pub. L. 101-525), (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, intends to develop the Property for the purpose of constructing homeownership opportunities for first-time homebuyers. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: 1. agrees to accept conveyance of the Property to its organization and to develop and sell the townhomes at a price not to exceed the current NC Housing Finance Agency maximum existing home sales price in effect at the time of purchase no later than December 31, 1996. 2. The conveyance of the lots to shall be secured by a note from to the County and a deed of trust constituting a first lien on the property purchased which deed of trust shall designate Orange County as the secured party/beneficiary. The note and deed of trust shall be in the form of the documents that are attached to and a part of this document. Orange County agrees to subordinate its mortgage interest on each lot to private construction financing acquired by in order to complete the project. 3 3. agrees to sell the homes to qualified buyers whose incomes do not exceed 80% of the area median income by family size, as determined by the U.S. Department of Housing and Urban Development and amended from time to time. At the closing of the sale to a homebuyer of each lot, shall repay the County, $ in the form of a credit to the homebuyer. The credit to the homebuyer shall be documented by a promissory note from the homebuyer to the County which note shall be secured by a deed of trust on the property naming the County as beneficiary. The County agrees to subordinate its mortgage interest on each lot to a first lien private mortgage acquired by the buyer. The period of affordability for HOME funds in accordance with the Acts, its regulations and State Program Requirements shall be 15 years from the date of execution of this Agreement. The default interest rate shall be 7% per annum. shall provide to Orange County prior to closing the sale of each home documentation, satisfactory to the County, verifying the income of each buyer. 4. Miscellaneous Provisions. a. Termination of Agreement The obligations of the parties hereunder and the specific obligation of to accept conveyance of the Property and construct homes thereon shall terminate upon the completion of the sale of the home(s) Continuing obligations of the buyers shall be contained in the note and deed of trust to be recorded at the time of closing of the sale of each home. Notwithstanding the foregoing, the parties hereto may terminate this Agreement at any time by a mutual agreement to that effect in writing. 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. Each party shall keep and maintain books, records and other documents relating directly to the receipt and disbursement of grant funds and the fulfillment of this Agreement. 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 three (3) 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 _ 1 4 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: i. To the County: Orange County Go Housing and Community Development Department P.O. Box 8181 Hillsborough, NC 27278 ATTN: Director ii. To Either the County or 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 is 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. Entire Agreement; Modification. This Agreement, with all exhibits and attachments hereto, constitutes the entire agreement between the County and . No modification or amendment to this Agreement shall be binding upon either party unless made in writing and executed by each party. i. No Joint Venture or Agency. The County and each agree and acknowledge that nothing contained herein or otherwise, including, without limitation, any act of the County or 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 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 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. I. 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 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 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. M. Equal Opportunity. 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. 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. 6 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, 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. 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 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, 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 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.