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HomeMy WebLinkAboutAgenda - 02-15-1994 - VIII-H ' 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda ACTION AGENDA ITEM ABSTRACT Item No.-I --}- Meeting Date: February 15, 1994 SUBJECT: HOME Program/Development Agreement ------------------------------- ---------------------------------- DEPARTMENT: Housing/Comm. Dev. PUBLIC HEARING YES: NO: x ------------------------------- ---------------------------------- ATTACHMENT(S) : INFORMATION CONTACT: Tara L. Fikes Development Agreement Ext. 2490 TELEPHONE NUMBER- Hillsborough - 732-8181 Chapel Hill - 968-4501 Mebane - 227-2031 Durham - 688-7331 ----------------------------------------------------------------------- PURPOSE: To approve the Development Agreement with the Orange Community Housing Corporation (OCHC) for the Creel St/HOME Program. BACKGROUND: Approximately $32,000 in HOME funds awarded to the Orange County HOME Consortium is designated for the acquisition of two vacant lots on Creel Street in Chapel Hill. These lots are located in the Knolls neighborhood and will be purchased and developed by the Orange Community Housing Corporation. Since the HOME funds will be expended by OCHC, Orange County as lead entity for the Consortium must enter into a legally enforceable agreement between the County and OCHC requiring OCHC to carry out the activities proposed in the grant application in accordance with applicable HOME Program regulations. This document has been prepared for review by the County Attorney. RECOMMENDATION(S) : The Manager recommends approval of the Development Agreement with the Orange Community Housing Corporation for the Creel Street Project and authorize the Chair to sign the document on behalf of the Board upon approval by the County Attorney. 2 NORTH C. 1431LU i MANGE COUNTY lPM@N• AGREEMTP This is an AGPMEM between ORANGE COUNTY, a general local governmental unit of the State of North Carolina, (hereinafter referred to as the "County") and ORANGE C OMKM Y HOUSING CORPORATION, a North Carolina nonprofit corporation (hereinafter referred to as "OCHC") . The date of this Agreement is 1994. WITNESSEPH WHEREAS, the Orange HOME Consortium was awarded $32,000 in October, 1992, for the purpose of conveying these funds to OCHC to purchase two lots on Creel Street in Chapel Hill, North Carolina, 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 j@pg@ry 26, 1993 and July 28, 1993 and as such shall act as 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. sM.) (hereinafter referred to as the "Act") , and as further defined in the State Program Requirements for funding provided directly by the State; and WRMEAS, OCHC intends to purchase the Property for the purpose of constructing haneownership opportunities for first-time hcuehyers. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto do agree as follows: 1. OCHC agrees to purchase the Property in the following manner: a. The two lots, Tax Map 7.91.A.24 and 7.91.A.27, shall be purchased for a total price of $30,000 fran the current owner with a loan fran BB&T. The County shall reimburse OCHC $30,000 in HONE funds for this purchase, and shall provide $1177 toward the payment of closing costs related to the purchase of the lots. In accordance with the Act, its regulations, and State Program Requirements for funding provided directly by the State, the purchase of the lots by OCHC with HOME funds shall be secured by notes fran OCHC to the County and deeds of trust constituting a first lien on the property purchased which deeds of trust shall designate County as the secured party/beneficiary. There shall be two separate notes, one related to each lot purchased, each in the m"mt of $15,588.50. The notes and deeds of trust shall be in the form of the documents that are Exhibit B to this Agreement. b. OCHC shall then market and sell the lots, construct hones for the selected buyers, and ca plete the sale of the hones on the Property by June 30, 1995. 3 c. The period of affordability for HCHE funds in accordance with the Act, its regulations and State Program Requirements shall be 20 years from the date of execution of this Agreement. The default interest rate shall be 7% per annum. 2. The County agrees to subordinate its mortgage interest on each lot to private construction financing acquired by OCHC or its designated hamebuilder in order to construct a home on the lot. 3. At the closing of the sale to a honebtuyer of each lot, OCHC shall repay the County $15,588.50 in the form of a $15,588.50 credit to the harebuyer. The $16,000.00 credit to� the hanebuyer shall be documented by a promissory note from the hambuyer to the County in the amount of $15,588.50 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 promissory notes and deeds of trust shall be substantially in the form of Exhibit B to this agreement and in accordance with the Act, its regulations, and State Program Requirements for funding provided directly by the State. The period of affordability for HOME funds in accordance with the Act, its regulations and State Program Requirements shall be 20 years from the date of execution of this Agreement. The default interest rate shall be 7% per annum. 4. OCHC agrees to market and sell the homes at a price not to exceed the N.C. Housing Finance Agency maxiu m+ new home sales price, currently $97,000, as amended from time to time. OCHC and the County acknowledge that this price is below the nwi,n,m allowable HCHE sales price, equal to the 203(b) mortgage limit for the area for the type of housing being purchased. OCHC further agrees to sell the hares to buyers whose incomes do not exceed 80% of the area median income by family size, as defined by the U.S. Department of Housing and Urban Development, as amended from time to time. OCHC shall provide to the County prior to closing the sale of each home documentation, satisfactory to the County, verifying the income of each buyer. 5. The County and OCHC agree to ccuply with the Act, its regulations, and State Program Requirements in the purchase and sale of the Property. The County and OCHC further agree to comply with the provisions of the Funding Agreement, dated , attached hereto and made a part of this Agreement (Exhibit C) . 6. Mi s e 1 ananuss provisicns. a. of Agreement. The obligations of the parties hereunder and the specific obligation of OCHC to purchase the Property and construct hares thereon shall terminate upon the completion of the sale of two hares to qualified buyers. 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 hone. 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 4 thereof and thirty (30) days grace period in which the defaulting party may act to cure, unless a satisfactory cure cannot be obtained in thirty (30) days, in which case the defaulting party must diligently and continually thereafter work to cure as soon as is possible. 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, and the defaulting party does not correct or diligently and continually act to cure such default within thirty (30) days after written notice of the default from the non-defaulting party, or, if a satisfactory cure cannot be obtained within thirty (30) days, the defaulting party does not correct or diligently and continually act to cure such default as soon as is possible. 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 capletion of the Project. d. Conflict with B3M Agreement. Notwithstanding anything herein to the contrary, the parties hereto acknowledge the due execution of a HOME Grant Agreement between the County and the State and agree that any conflict between the provisions, requirements, duties or obligations of this Agreement and the HOME Grant Agreement shall be resolved in favor of the HOME Grant 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 hereinabove 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 OCHC: Orange Camunity Housing Corporation P.O. Box 307 Carrboro, NC 27510-0307 ATM: Executive Director Either the County or OCHC may change the person or address to which any future Notice shall be given as herein provided. 3 5 f. No Assig[ment. No transfer or assignment of OCHC's 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; Mod;fimtim. This Agreement, with all exhibits and attachments hereto, constitutes the entire agreement between the county and OCHC. 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 ar 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. j. Effect of Waiver or frbearance. 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 tern 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. k. Cmerniumg 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. SeverabilLity. 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 became invalid 7 i rl 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 cannot agree, they shall apply to a court of carpetent 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. 4 t 6 m. 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. 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. laeoording. The parties hereto agree that upon notice to the other and at its awn cost and expense, a party may record this Agreement in the Office of Register of Deeds for Orange County. q. rcap lance with Iaws. 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 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. P&Ucity; Sicykage. 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. S. -sparts. 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 "Axd 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- u. Pgrfar�-oe of Government Fbnations. Notwithstanding anything in this Agreement which may be to the contrary, nothing contained in this Agreement shall in any way estop, limit or impair the County from exercising or performing any regulatory, policing or goverrmmental powers or functions with respect to the Property including, without limitation, inspection of the Property in the performance of such functions. 5 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. C=?TY OF ORANGE, NORTH CAROLM (SEAL) Moses Carey, Jr., Cjjajjm Orange County Board of Catmissioners ATTEST: Beverly A. Blythe Clerk to the Board=of Camnissioners NORTH CAROLM ORANGE COUNTY This is to certify that on this day personally came before me Beverly A. Blythe, with whan I am personally acquainted, and being by me duly sworn, says that Moses Carey, Jr., is the Chairman of the Orange County Board of Camnissioners, and that she the said Beverly A. Blythe, is the Clerk to the Board of Ccnmissioners of the County of O range, the body politic and corporate named within and which executed the foregoing instrument; that she knows the caRron seal of said County; that the seal affixed to said instrument is said caimon seal; that the name of Orange County was subscribed thereto by the said Cha ran of the Orange County Board of Catmi.ssioners and that the said Chairman of the Orange County Hoard of Camnissioners and said Beverly A. Blythe subscribed their names hereto and said cannon seal was affixed, all by order of the Board of County Camnissioners of orange County and that said instnmient is the act and deed of Orange County. Witness my hand and notarial seal, this the day of 1992. Notary Public My cannission expires: ORANGE CaftlT= HOUSING CORPORATION (SEAL) Keith E. Aldridge, Chair Board of Directors ATTEST: Susan Rodemeir, Secretary Board of Directors 6 8 NORTH CARMNA 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 Susan Rodemeir, with whan I am personally acquainted, who, being by me duly sworn, says at she is Secretary and that Keith E. Aldridge is Chair of the Board of Directors of Orange Cannznity Housing Corporation, a North Carolina corporation, and that by authority duly given and as the act of the corporation, the foregoing instnmient 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 1993. Notary Public My commission expires: 7