HomeMy WebLinkAbout2008-086 Housing - Habitat for Humanity of Orange Co9,~ ens-/,/~,a
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• 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 Habitat for
Humanity of Orange County, NC, Inc., a North Carolina non-profit ho~ising organization
(herei fter referred to as "Habitat"). The effective date of this agreement is
WITNESSTH
WHEREAS, the County, in the implementation of the Orange County Affordable
Housing Bond Program solicited applications for funding from interested non-profit
organizations; and
WHEREAS, Habitat submitted an application for Housing Bond funding on March 13,
2008 for $182,000 in the form of a grant for property acquisition for future housing
development, which is hereby incorporated into this Agreement, and hereafter, refer ed to as
"The Project". A copy of the application and amendments are on file in the office of the
• Housing and Community Development Department; and
WHEREAS, the Board of County Commissioners approved the Housing Bond
application on May 1, 2008 approving $182,000 for the Project; and
WHEREAS, Habitat intends to purchase thirteen (13) lots in the Highland Woods
subdivision in the Northern Fairview Community in the Town of Hillsborough (herein after
referred to as the "Property"), and described in EXHIBIT A attached hereto and incorporated
herein; and
WHEREAS, Habitat intends to construct a thirteen (13) new single-family dwellings on
the Property all to be sold to first-time homebuyers earning up to 60% of HUD area median
income; and
WHEREAS, afirst-time homebuyer for the purposes of this program is defined as any
low income household 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.
NOW, THEREFORE, in consideration of the mutual covenants, promises, and
representations contained herein, it is agreed between the parties hereto as follows:
1. a. Habitat shall construct l3 new dwelling units defined in the Project, obtain all
permits and licenses necessary to construct the homes on the Property, and comply with
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• applicable building and zoning ordinances and the N.C. Housing Finance Agency Energy
Standards.
b. Habitat shall sell the newly constructed dwelling units to qualified buyers whose
income up to 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 sale.
c. The period of affordability will be 99 years and will be secured by a Declaration
of Restrictive Covenants that will incorporate a right of first refusal theft may be exercised
by Habitat and/or Orange County.
d. Habitat is responsible for soliciting buyers for the dwelling units constructed on
the Property. Habitat and/or its buyers shall be responsible for securing permanent
mortgage financing for the homes on the Property.
e. Habitat is responsible for verifying the income of the homebuyers, explaining the
second mortgage program to potential homebuyers 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 the County. 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.
3. Time for Commencement and Completion. Habitat for Humanity of Orange County,
NC, Inc. must initiate the project within five years of funding award or by May 1, 2013.
Project initiation is defined as the acquisition of one or more building permits. Habitat
will be responsible for providing a progress. report to the Board of County
Commissioners within three years of funding award or May 1, 2011 and every year
thereafter until project completion. 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 13 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) for 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 an extension of the
completion date for County approval. The County may, at its option, approve any
extension of the completion date or declare Habitat in default.
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• completion date for County approval. The County may, at its option, approve any
extension of the completion date or declare Habitat in default.
Habitat shall monitor the constructed units for affordability for the period of affordability
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 anon-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 thirteen (13) dwelling
units, a "Declaration of Restrictive Covenants" (EXHIBIT B) 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 13 dwelling units in the event the homeowner purchasing the dwelling unit
from Habitat is still the owner of the dwelling unit at the time of the rerecording and no
• later than one day before the expiration of 30 years of the sale of the thirteen (13) units.
,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.
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
provided to affordable units to low-income families. It is the County's intention that the full
public benefit of the Project shall be completed under the auspices of Habitat for the assisted
• units as follows:
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• 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 anon-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.
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 I % 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.
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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:
To the County: Orange County T'
cfo 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. .
1829 E. Franklin Street #1200B
Chapel Hill, NC 27514
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.
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 or 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,
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defend, and hold Count harmless from all claims of its contractors.
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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; nor 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
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. 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. This statement will be Exhibit
D to this agreement.
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
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entit when the c t t ore it s
y on ex s qu e . 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 part 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
governmental powers or functions with respect to the Property including, without limitation,
inspection of the Property in the performance of such functions.
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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
Laura Blackmon, County Manager
TJ
as to form and
Attorney
This document has been preaudited in accordance with the N.C. Local Government and Fiscal
Control Ac
Gary Humphreys, Finance Director
Habitat for Humanity of Orange County, NC,
Inc.
(SEAL) ~ ~~ ~y-~!
obi.~f ~ ., Presi ent
ATTEST: ~~C~LII~e'f-~~G?
~Ll/% L7YY2S ,Secretary
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Lonna taxer
Clerk to the Board of Commissioners
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EXHIBIT A
C7
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• Index of Properties
5 lots on Locust:
Highland Woods Subdivision Lot 4,6,7 BIock C and Lots 8,9 Block A Got
524 Locust Road: PIN#: 9865657 i 88
TMBL#:4.SA.C.19 TRACT#:403551
Property Owner: ENO RENTALS FIVE LLC
Owner's Mailing Address: 120 S CHURTON ST HILLSBOROUGH NC, 27278
Legal Description: #4 BL C HIGHLAND WDS P 15/178
520 Locust Road: PIN#: 9865658299
TMBL#:4.SA.C.17 TRACT#:403549
Property Owner: ENO RENTALS FIVE LLC `~'
Owner's Mailing Address: 120 S CHURTON ST HILLSBOROUGH NC, 27278
Legal Description: #6 BL C HIGHLAND WDS P15/178.
518 Locust Road: PIN#: 986565367
_ TMBL: 4.S.A.C.l6 Tract: 403548
Property Owner: Eno Rentals Five, LLC
Owner's Mailing Address: 120 S CHURTON ST HILLSBOROUGH NC, 27278
Legal Description: #7 Block C Highland Woods P15/178 .
53l Locust Road: PIN#: 9865655229
TMBL#:4.SAA.B TRACT#:403520
Properly Ownei: ENO RENTALS FIVE LLC
Owner's Mailing Address: 120 S CHURTON ST HILLSBOROUGH NC, 27278
Legal Description: #8 A-D BL A HIGHLAND WOODS P15/178
529 Locust Road: PIN#: 9865655396
TMBL#:4.SA.A.7 TRACT#:403519
Property Owner: ENO RENTALS FIVE LLC
Owner's Mailing Address: 120 S CHURTON ST HILLSBOROUGH NC, 27278
Legal Description: #9 BL A HIGHLAND WDS P,15/178
7 Lots Northern Heights
552 Harper: PIN#: 9865631344
TMBL#:4.7.A.8 TRACT#:47258b
Property Owner. STEWART HELEN 3
Owner's Mailing Address: 1807 PINEY GROVE CH RD HILLSBOROUGH NC, 27278
Legal Description: 32-33 & X NORTHERN HGTS REV P100/'~2
484 Harper (Addresses are not verified with legal lot descriptions in GIS) PIN#: 9865631250
TMBL#: 4.7.A.11 A TRACT: 472583
Property Owner:RAGLAND CAROLYNBc DBVON BREEZE *NOTE: INTEREST OWNERS
Owner's Mailing Address: 1807 PINEY GROVE CHURCH RD EIILLSBOROUGHNC, 27278
L,egai Description: B NORTHERN HGTS REV P100/72
488 Harper (Addresses are not verified with legal lot descriptions in GIS) PIN#: 9865631124
TMBL#:4.7.A.12 TRACT:472588
Property Owner: BREEZE CAROLYN RAGLAND
Owner's Mailing Address: 1807 PINE1'GROVE CH RD HILLSBOROUGH NC, 27278
Legal Description: A NORTHERN HGTS REV P100/72
575 Homemont Ave PIN#: 9865622872
TMBL#: 4.7.C.3 TRACT#: 402702
Properly Owner: BANNERMAN BOBBY DEAN & IRIS R
Owner's Mailing Address: B655 CHARLIE STOVALL RD ROXBORO NC, 27573
Legal Description; 3-6 BL B NORTHERN HEIGHTS
• 554 Riddle Road (1 lot with 562) PIN#: 9865625962
TMBL#:4.7.0.7 TRACT#:403265
Property Owner. FARRAR JOE LOUIS &FAYE
Owner's. Mailing Address: 102 PRINCE ST CARRBORO NC, 27510-2216
j 6~ ~b f ~ Legal Description: 5&56'BL B NORTHERN HT
!O ~ 562 Riddle Road (1 lot with 554) PIN#: 9865625912
TMBL#:4.7.C.9 TRACT#:403712
Property Owner: FARRAR FAYE A
Owner's Mailing Address: 102 PRINCE ST CARRBORO NC, 27510-2216
Legal Description; #57-58 BL B.NORTHERN HTS P74/l23
568 Riddle Road P[N#: 9865624943 r'
TMBL#: 4.7.C.1 TRACT: 402701
Property Owner: DANTZLER LELA JANE
Owner's Mailing Address: 3044 FORREST ST DURHAM NC, 27704-2310
Legal Description: 59-61 BLB NORTHERN HTS
2 Lots Terrell Road Location
531 Terrell PIN#: 9865601140
TMBL#:4.12.E.34A TRACT#: 403310
Property Owner: GLATZ GREGORY J & JESSYKA R
Owner's Mailing Address: 107 BOTHER LANE DURHAM NC, 27707
Legal Description: 4 REV 3-5 EL C FA[RVIEW P3/19
533 Terrell PIN#: 986560.1168
TMBL#:4.12.E.34 TRACT#:401862
Property Owner: GLATZ GREGORY 7 & JESSYKA R
Owner's Mailing Address: 107 BOTHER LANE DURHAM NC, 27707
Legal Description: #3 REV 3-5 BL C FAIRVIEW P3/] 9