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HomeMy WebLinkAbout04- Bozeman Interfaith Housing, Inc. ..~ , , CITY OF BOZEMAN-BOZEMAN INTERFAITH HOUSING, INC. (Between Grantee and Project Owner) This Contract is entered into by the City of Bozeman, herein referred to as "the Grantee" and Bozeman Interfaith Housing, Inc., herein referred to as "the Project Owner." WITNESSETH THAT the Grantee and the Project Owner mutually agree as follows: A. PURPOSE The purpose of this Contract is to provide funding for project activities approved by the Department under the Montana Home Investment Partnerships Program (HOME) and the purposes of Title II of the Cranston-Gonzalez National Affordable Housing Act (Title II, Public Law 101-625, approved November 1990, 104 Stat. 4079, 42 U.S.C. 12701- 12839), as amended. B. DOCUMENTS INCORPORATED INTO THIS CONTRACT BY REFERENCE BUT NOT A TT ACHED HERETO: 1. HOME Investment Partnership Program; Federal ReQister; Monday, December 16, 1991, 24 CFR, Part 92, Interim Rule subpart D 92.150-92.652; pages 65312- 65385 and amendments to the Interim Rule, Federal Register; Tuesday, December 22, 1992, 24 CFR, Part 92, pages 60960-60968; and Title II of the Housing and Community Development Act of 1992, Public Law 102-550 (H.R. 5334), October 28, 1992 2. The Department's Home Investment Partnership Program Application Guidelines, FY92-93, November 1992 as amended; and 3. The Grantee's contract with the Montana Department of Commerce, herein referred as "the Department", for HOME grant assistance. C. ACCEPTANCE OF HOME PROGRAM REQUIREMENTS The Project Owner will comply with all applicable parts and requirements of the National Affordable Housing Act of 1990, as amended; as now in effect or as they may be amended during the term of this contract; all requirements established by the Department; applicable state and federal laws, regulations, administrative directives and procedures; and local ordinances and resolutions. The Project Owner expressly agrees to repay any funds advanced to the Project Owner under this Contract which the Project Owner expends or causes to expend in violation of the terms of this Contract or the federal statutes and regulations governing the HOME Program. 1 .. ,." , , D. EFFECTIVE DATE AND TIME OF PERFORMANCE This Contract takes effect on May 16, 1994 and will be in effect for the period of affordability required by the Department and as defined below. The activities to be performed by the Project Owner will be completed according to the Implementation Schedule included as Attachment A to this Contract, which by this reference is made a part hereof. The Project Owner agrees to start the project within six months of the signing of this Contract. For the purposes of this Contract, New Construction is defined as newly built housing units, existing projects that involve the addition of new units outside the existing walls of the structure and property completed within a one year period prior to the commitment of HOME funds. For New Construction, the period of affordability is as follows: a. New Construction for Rental Housing: 20 years E. SCOPE OF ACTIVITIES The Project Owner will carry out the activities as set forth below. The major components of the project include: 1. Project Planning 2. Solicit Additional Funding Sources 3. Preliminary Planning 4. Preparation of Bid Documents 5. Complete work specified in application to UBC Standards for 6. Administration of Monies Outside of HOME Program 7. Management of Units and Selection of Tenants for the required period of affordability . The Grantee will be responsible for monitoring the performance of the Project Owner receiving HOME funds to assure compliance with the requirements of the HOME program and for taking appropriate action when performance problems arise. F. BUDGET 1. The total amount to be awarded to the Project Owner under this Contract will not exceed $216,000. 2. A copy of the project budget is included as Attachment B to this Contract, and by this reference is made a part hereof and binding upon the Project Owner. The 2 < ' Project Owner may modify this budget only after having requested and received the Grantee's and the Department's written approval of the adjustment. G. AMOUNT OF GRANT AND METHOD OF PAYMENT 1. The Project Owner will not request disbursement of funds until funds are needed for payment of eligible costs. The amount of each request will be limited to the amount needed. In drawing against the amount reserved for it by the Grantee, the Project Owner will follow instructions supplied by the Grantee or Department. 2. If the actual total cost of completing the project is less than that projected by the Grantee and the Project Owner in the preliminary budget (Attachment B), the Department may, at its discretion, reduce the amount of HOME funds to be provided under this Contract in proportion to the overall savings. If actual construction bids are less than the estimates included in the preliminary budget, the construction budget in the Contract will be established at the bid price, plus a ten percent contingency amount. The difference between actual project costs and the original grant award will be reallocated by the Department for unfunded or inadequately funded projects of Grantee or added to the following year's HOME allocation or used to expand the scope of the Grantee's program. Project Owner's reimbursement is limited to the HOME funds disbursed to Grantee from the Department. 3. If the Grantee determines that the Project Owner has failed to satisfactorily carry out its responsibilities under this Contract, the Grantee may revoke the Project Owner's authority to draw against the reservation described herein until such time as the Project Owner and the Grantee agree on a plan to remedy the deficiency. The Department will be notified of any such action. 4. The Grantee reserves the right to withdraw a commitment for any HOME funds which remain unobligated after the date of the project commitment into the Cash Management and Information System, which was March 18, 1995. H. OWNERSHIP AND PUBLICATION OF MATERIALS All reports, information, data, and other materials prepared by any Project Owner or its subcontractors pursuant to this Contract are to be the property of the Grantee and the Department, which have exclusive and unrestricted authority to release, publish or other- wise use, in whole or in part, information relating thereto. No material produced in whole or in part under this Contract may be copyrighted or patented in the United States or in any other country without the prior written permission of the Grantee and the Department. I. ACCESS TO RECORDS 3 " , The Project Owner shall maintain reasonable records of its performance under this Contract and will allow access to these records at any time during nonnal business hours by the Grantee, MDOC, the U.S. Department of Housing and Urban Development, the Comptroller General and, when required by law, the Montana Legislative Auditor and Legislative Fiscal Analyst. These records will be kept in the Project Owners's offices in Bozeman, Montana. The Project Owner must maintain the following records: 1. Proiect Records Required: a. for rental housing, documentation that the rent, income targeting and other requirements for HOME are being met; b. for each family, a copy of the income verification, rent calculation and lease agreement; 2. Other Federallv Required Records - Data must be gathered to document com"{>liance with the following: a. affirmative marketing procedures; b. all requirements and provisions set out in the attached Interlocal Agreement, Attachment D. Generally, the records described above must be retained for a period of three years after project closeout. The records regarding project requirements that apply for the duration of the period of affordability, as well as the written agreement and inspection and monitoring reports, must be retained for at least three years after the required period of affordability. Records covering displacement and acquisition must be retained for three years after the date of which persons were displaced or three years from when final acquisition payment is received, whichever is longer. If any litigation, claim negotiation, audit or other action has been commenced before the expiration of the regular three-year period, the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular period, whichever is later. The access to these records deseribed above and all other documentation relating to the program is governed by all applicable state and federallaws as they pertain to disclosure of information to the public and to individual right of privacy. 4 J. PERFORMANCE REPORTING The Project Owner will submit status reports on project performance at the request of, and in the format prescribed by the Grantee and the Department. If not otherwise stated, these status reports shall be submitted quarterly. K. A VOIDANCE OF CONFLICT OF INTEREST The Project Owner will comply with the provisions of 24 CFR 570.611 Subpart J; and with sections 2-2-125, 2-2-201 , 7-3-4367, 7-5-2106, and 7-5-4109, MCA, (as applicable), regarding the avoidance of conflict of interest. L. MODIFICATION AND ASSIGNABILITY OF CONTRACT This Contract contains the entire agreement between the parties, and no statements, promises, or inducements made by either party, or agents of either party, which are not contained in or authorized by this written Contract, are valid or binding. This Contract may not be enlarged, modified, or altered except upon written agreement. This Contract does not imply any continuing commitment by the State of Montana beyond the termination date noted herein. The Project Owner accepts responsibility for adherence to the terms of this Contract by any subcontractor or subrecipient entities and by public or private agents or agencies to which it delegates authority to carry out portions hereof. K. SPECIAL CONDITIONS The Project Owner agrees to all the special conditions found in Attachment C of this Contract. The Project Owner must comply with any other contractual agreements regarding management functions, program income requirements, or other conditions that project or jurisdiction specific. L. CONSTRUCTION AND VENUE This Contract will be construed under and governed by the laws of the State of Montana. In the event of litigation concerning it, venue is in the District Court of the Eighteenth Judicial District in and for the County of Gallatin, State of Montana. M. INDEMNIFICATION 1. The Project Owner waives any and all claims and recourse against the Grantee, Department, and the State of Montana, including the right of contribution for loss or damage to persons or property arising from, growing out of, or in any way 5 " , connected with or incidental to the Project Owner's or any sub recipient' s performance of this Contract. 2. Further, the Project Owner will indemnify, hold harmless, and defend the Grantee, Department, and the State of Montana against any and all claims, demands, damages, costs, expenses, or liability arising out of the Project Owner's or any subrecipient's performance of this Contract. In the event that the Grantee, Department or the State of Montana is named as a co-defendant in any action relating to activities to be performed by the Project Owner or subrecipient under this Contract, the Project Owner will notify the Grantee or Department of such fact and will represent the Department in such legal action unless the Department undertakes to represent itself as a co-defendant in such legal action, in which case the Grantee or the Department will bear its own litigation costs, expenses, and attorneys' fees. N. AMENDMENTS TO PROJECT ACTIVITIES Any proposed amendments to the project activities will be handled in the following manner: 1. The Grantee will consider requests by the Project Owner for amendments to the scope of activities described in Section E if the project owner can clearly demonstrate that the modification is justified and that will enhance the overall impact of the original project. 2. The Department must approve all amendments to the Scope of Activities prior to any commitment by the Grantee to fund the activities outlined in the Amendment of the Scope of Activities. O. PROPERTY MANAGEMENT Title to real property or equipment acquired under a grant or subgrant will vest upon acquisition in the grantee or project owner respectively. The grantee or project owner will use, manage, and dispose of any such property or equipment in accordance with the requirements set out in 24 CFR, Part 85, Subpart C. P. TERl\1INA TION OF CONTRACT This contract may be terminated as follows: 1. Termination Due to Loss of Funding. This Contract will terminate in whole or in part, at the discretion of the Grantee, in the event that the Department or the Grantee suffers a loss of funding or termination of the federal grant which permits it to fund the Project Owner in whole or in part so that it is unable to make 6 payment to the Project Owner. In this event, the Grantee will give the Project Owner written notice setting forth the effective date of full or partial termination or, if a change in funding is required, setting forth the change in funding and changes in the approved budget. 2. Termination Due to Noncompliance with Contract Terms. If the Grantee determines that the Project Owner has failed to comply with the general terms and conditions of this Contract, the project schedule, or any special conditions, and if upon notification of the defect the Project Owner does not remedy the deficiency within a reasonable period of time to be specified in the notice, the Grantee may terminate this Contract in whole or in part at any time before the date of completion. The Grantee will promptly notify the Project Owner in writing of the decision to terminate, the reasons for the termination, and the effective date of the termination. 3. Termination Due to Adverse Environmental Impact. This Contract will terminate at the conclusion of the environmental review process if the Grantee or the Department determines that the project would have a significant adverse impact on the quality of the human environment and that this impact cannot be avoided or sufficiently mitigated by reasonable means. 4. Effect of Termination. In the event of termination due to the Project Owner's failure to comply with the terms of this Contract or the project's adverse environmental impact, any costs incurred will be the responsibility of the Project Owner. However, at its discretion, the Grantee may approve requests by the Project Owner for reimbursement of expenses incurred. The Grantee's decision to authorize payment of any costs incurred or to recover expended HOME funds will be based on a consideration of the extent to which the expenditure of those funds represented a good faith effort of the Project Owner to comply with the terms of this contract and on whether any failure to comply with the terms of the contract was the result of circumstances beyond the Project Owner's control. Q. REPAYMENT OF FUNDS If any housing assisted with HOME funds fails to meet the affordability requirements for the periods set forth in Section D of this contract, the Grantee will require repayment of those funds. 7 IN WITNESS THEREOF, the parties hereto have caused this Contract to be executed. Grantee: Project Owner CITY OF BOZEMAN BOZEMAN INTERFAITH HOUSING, INC. --~.:;:::::::->::::.,~~~......_-~--- (20 /_~~A <_--~t/;::/(y<-:~?J'!r57~-.-.- fuhff~t',=Mayffr' .kgal Owner .::7.-"//. . . r r;:"<-I" .. ...,,?1:"";:. Don E. Stueck. Mayor Pro Tempore /"" Date JULY 18. 1994 Date 7j; ~/9 1 ATTEST: ~f~ Robin L. Sullivan Clerk of Commission J,t."?::J",,ol iJ1 Jft~ if ~/. - / fl' ,- ~... -'t.l.,:;.,{.......r.~..'''1,,1 . L<J " "'-<.- : 8 Time-Line for Interfaith Apartment Complex ~lA Y 1994 - page 1 ACTIVITY RESPONSE May June July Aug Sept Oct Nav Dee Jan Feb Mar Apr l\.fay June I Establish Project Files City - Select Firm (0 Conduct Environmenmt Review City - Refine Management Plan City/BIR - Approval From Commerce on the Selection City - Begin Environmenml Review BSI -- Select the Architect For the Project BIR - Approval From Commerce on the Selection BIR - Prepare Working Drawings Arch - Submit Drawings to City For Plan Approval Arch - Select the Engineer For the Project BIH - Approval From Commerce on the Setection BIH - Prepare Plans For Site Improvements Engineer - ~ Submit Plans to City For Plan Approval Engineer I- ~ Final Site Plan Approval City - > Application For Revolving Loan Funds BIH (1 - ~ Environmental Review Period at Local Level City - Environmental Review Period at State Level MDOC - Secure MDOC Approval For Release of Funds City - > Submit Plans to MDOC For Approval Bili - Time-Line for Interfaith Apartment Complex ~'1A Y 1994 - page 2 ACTMTY RESPONSE May June July Aug Sept Oet Nov Dee Jan Fcb IVlar Apr J\'1ay J IIl1e Policies and Procedures Revision Ciry/BIH - Resolution on Acquisition & Relocation Ciry - Prepare Bid Documem For Infrastrucrure Engineer - Notice For Bid City - Review Proposals Ciry/BIH '- Selecl Contractor for Infrastructure Ciry/BIR - City Commission Approval A ward of Bid Ciry - Approval From Commerce on Selection MDDC - Preconstruclion Conference on lnfrastrucmre All Panies - Submil Compliance Documents Ciry/BlH - Remaining Demolilion of Site BIH - Establish Local Accoum for Fund Transfer Ciry - Submit First Draw-down of Funds City - Water and Sewer Contractor I- Road Improvemems Comractor - Compliance Moniwring Ciry to- - ~ Submit Draw-downs and Progress Repons as City - - - - - Needed Submit Architecmral Drawings to Ciry for Plan .A..rch - - Check Approval Submit Drawings to State for Approval .A..rch - . Time-Line for Interfaith Apartment Complex IVlA Y 1994 - page 3 ACTIVITY RESPONSE I\lay JUDe July Aug Sept Oct Nov Dec JaD Feb Mar Apr May June Prepare RFP For Construction Coordinawr City/BIH - Notice For Proposals City/BIH - Review Proposals Ciry/BTH - Negoliate With Applicants City/BTH - Select Construction Coordinator City/BTH - Approval From Commerce on Selection City i- Prepare Bid Documem for Conlractor Arch - Notice for Bid City - Review Proposals City/BTH/CC - Select Conlractor for Construction City/BIH/CC - Ciry Commission Approval A ward of Bid City - Approval From Commerce on Selection Ciry - Secure Building Permits Contractor - PrecoflSlruction Conference All Parries - Publicize and Promote Project City/BIH - Begin ConstrUction Contractor - ConstrUction Compliance Monitoring Consl Coor - - - - ~ ~ - Submil Draw-downs and Progress ReportS as City - - - - - - - Needed Begin Tenant Selection IHC I- Time-Line for Interfaith Apartment Complex MAY 1994 - page 4 ACTIVITY RESPONSE May June July Aug Sept Oct Nov Dec Jan Feb rvlar Apr May June Final Inspections Cil)' - Certificate of Occupancy City - Final Payment to Engineer City/BIH - Final Payment to Contractor CirylBIH - Select Tenants BIH - Project Promotion and Publicity BIH - Project Close Out Begins City/BIH - Project Completion Report Ciry - Detennine Audit Requirements Ciry - Project Audit City/MDOC ~ Ongoing Compliance Requirements Brn ~ - - ", A TT ACHMENT B FINAL BUDGET I BUDGET , ... . ............ OTHER: OTHER: OTHER: I ADMINISTRATION COSTS ....... HOME Local City of MBOH ... TOTAL ...... .......... .))<) Donations Bozeman/) Personnel Services )/ -cc- . ....... $13,000 _ - - $13,000 ... . .. ....... .. Supplies .... ... ... .......... ....... . .. ...... 100 - - - 100 communications)\i)/</ 500 - - - 500 Printing/Duplicaticm./<)/i. 500 - - - 500 Advertising ___< -------- .... ...i 150 - - - 150 . .. . ........... ..>.. Accountingi<\.uditing .......... ../ 1,000 - - - 1.000 l'ravel</)i 200 - - - 200 . ..... ...... ..... .............. ... ..................... Training .> . ...) ... .........> 300 - - - 300 . ... .... ...>... .. ... .. ...>> OtherAdmillistrative: ...... .......< .<< 250 - - - 250 ........ ....... TOTAL Admillistrative Expenses: $16,000 - - - $16,000 . . ... 7G..il).. ..................... .............................. ......... ACQUISITION COSTS .><1<[< ............>i < ................................ . ......... Pilrchase Pricei/ .))< . ..... - $49,000 - - $49,000 L... d.. 0.. h -T .... ............ ... .. ........ . ..lens an ......t er axes. .................... ...... - - - - - Cltlsmg and Recording Costs ...i ... - - - - - ..... ...<.. Other AcquisitionCosts Clearance ... - 3,000 - - 3,000 1// T()TALAcquisitionCosts: - $52,000 - - $52,000 ... ... . ...>. .... .. ...... ....<. ... ___)/ . ... ... ......... < .. ............ .. I>. ......... .. ..... I .-__-<i.. I... PRE~DEVELOPl\1ENT COSTS/)\ ) .....;< .................. I ....................... ...< .....1) . ....... ... ...>< .... --- ...... ..... Appraisal<< . .)i< ....... - - $1 ,000 $1 ,000 .... .............. ... Architect Fees ... ...... ................ ....) .... 7,500 15,000 - $22,500 ErigineeringFees--i\/ --/ 3,000 - - 3,000 Legal Fees ___ .... .......))i - 500 - 500 Other pre-DevelopmentCosts)i ___U) _ 2,000 - 2.000 ....... ..... ..... ..... TOTALAcquisitionCost:s: 10,500 $17,500 $1,000 $29,000 9 " -- .. . HOME..... Local City of MBOH > TOTAL .... ..... Donations Bozeman ..... > (/ ... .> < . >> .... (i CONSTRUCTION COSTS .../ ... New Construction ... / $187,500 - - $232.850 $420.350 Rehabilitation .. - - - - - ...... Infrastructure Improvements - ~ 13.020 16.200 29.220 Contingency ( 9 %) > - - - 39.350 39.350 Hazardous< Materials Abatement .... ~ - - - - ..... .. > Project Management .. > - - - 15.000 15.000 Permits and Fees ( / - - - 3,250 3.250 ..... Construction Loan Fees/Interest .i ..... - - - 12.175 12.175 .> ...... ........ Other Construction Costs (demolklool\ . 2.000 - - - 2.000 .. TOT ALCoIlstruetion Costs: $189,500 - 13,020 $318,825 $521,345 ... ....i .Ii ( i>( .. DEVELOPMENT COSTS. ./...... ....... ) > ReaLEstate . Tax >\ .> ..>... $250 ......... - - - 250 Insurance -................. >\ - 500 - 500 ..... ... - -c:- >/ Developer Fee ...... - - - - - .... .. ... .\. . / Relocation > . - - - - - .... .. ..) T echn icaLAssistanCe(Tltle.R.....dln\l, ApproloaO - - - 3,250 3,250 . ... .< )........ Other Development Costs .. ..... . - - - - - .... TOT ALDevelopIJlent Costs: - $750 - $3,250 $3,250 ./ ./\ .i. \ .... ..... ) ............../ ...... .....i. ........ .i. OPERATING COSTS I.... .\ Services /. .... ....<. - $500 $500 ... <. - - RenUMortgage Subsidies -- .>\i/ - - 22,000 22.000 Operating....Expenses .> )< ...// - - - - - ........ .... 0/> Other: ..<> .......... ..... - - - - - Other~ .... ............. - - - - - TOTAL Operating. Costs: - 500 - 22,000 22,500 ..... $216,000 $70,750 $13,020 $345,075 $644,845 TOTAL PROJECT COST: . . 10 ATTACHMENT C SPECIAL CONDITIONS (Rental Housing) A. The Project Owner will maintain the housing in compliance with applicable Housing Quality Standards and local housing codes requirements for the duration of the Contract; B. The Project Owner will comply with the project requirements found in 24 CFR, Part 92, Subpart F as applicable in accordance with the type of project assisted; C. The Project Owner will carry out each project activity in compliance with al federal laws and regulations described in 24 CFR, Part 92, Subpart H, except that the Project Owner does not assume the Department's responsibility for the environmental review or the intergovernmental review process; D. The Project Owner certifies that it will provide a drug free workplace; E. Upon completion of the contract, the Project Owner will transfer to the Department any HOME funds on hand at the time of expiration and any accounts receivable attributable to the use of HOME funds. F. The Grantee will enforce the requirements of the contract relating to atfordability and housing quality standards through the use of the deed restriction found in Exhibit 1. 11 EXHIBIT 1 ," DEED RESTRICTION AGREEMENT HOME Investment Partnerships HOME Investment in Affordable Housing Program by and between City of Bozeman and Bozeman Interfaith Housing A. PURPOSE This Land Use Restriction Agreement ("Agreement") is made and entered into this 12 day of June , 199~, by and between the City of Bozeman and Bozeman Interfaith Housing. Whereas the (Grantee) has loaned to the Owner HOME funds in the amount of $216,000 dollars for the purpose of constructing a nine unit rental housing project commonly known and addressed as 606 N. Fourth Avenue , Bozeman, MT, (northeast corner of 4th and Peach Street, Westlake's 1st Addition, Block 1, 10ts 5 & 6), said land and improvements are hereinafter collectively referred to as the "Property") and legally described in Attachment "A". And, whereas, each unit for which the HOME funds is used will hereafter be considered an Assisted Unit; and in the Property, there will be nine assisted units. And, whereas, the Owner must agree to continuously comply with certain occupancy and rent restrictions for each Assisted Unit for the Term of this Agreement; and the parties hereto have entered into this Agreement to evidence Owner's agreement to comply with such restriction. Now therefore, in consideration of the loan and other good and valuable consideration, the parties hereto do hereby agree as follows. ." . . B. DEFINITIONS 1. Agreement means this Land Use Restriction Agreement, as it may from time to time be amended. 2. Assisted Unit means any unit for which HOME funds is used for rehabilitation. 3. Grantee means the City of Bozeman 4. HOME means HOME Investment Partnerships Program. 5. Lower-Income Families means families and individuals whose Annual Income do not exceed 80 percent of area median income in the area in which the Property is located, as determined by the Secretary of Housing and Urban Development. 6. Owner means Bozeman Interfaith Housing as set forth at the beginning of this agreement, or any successor in title to the property. 7. Qualified Tenant means a family or individual tenant of a qualifying unit who satisfies the requirements of Section 2 of this Agreement with respect to such Qualifying Unit. 8. Qualifying Unit means a Unit that: a. is rented to either a Lower-Income Family or Very Low Income Family and b. is used in complying with the very low-income and lower- income occupancy requirements of Section C. 9. Term means a period commencing on the date hereof and continuing until the earliest to occur of the following: a. 20 years, beginning after the completion of construction as evidenced by the Certification of Completion; b. the date upon which there is a an involuntary loss of Property by Owner caused by foreclosure of a mortgage or deed of trust securing a bona fide loan from an institutional lender, or by a change in federal law which prevents the enforcement of this Agreement: provided however, that in the event of loss of the Deed Restriction - page 2 ,. . Property by foreclosure, if the party which was Owner at the time of or immediately prior to such foreclosure, or is a related Entity of such party, acquires an ownership interest in the Property at any time thereafter, then the covenants and restrictions set forth in this Agreement shall be revived and shall remain in force for the remaining period. 10. Very Low-Income Families means families and individuals whose annual incomes do not exceed 50 % of median income for the area in which the Property is located, as determined by the Secretary of Housing and Urban Development. C. USE AND OCCUPANCY OF THE PROPERTY 1. It is agreed that during the Term, the Owner will maintain the Property as rental housing and will rent or hold available for rental each Assisted Unit on a continuous basis. 2. The Owner will make continuously available for occupancy for Lower-Income Families as Qualifying Units, not less than six Units, and not less than three Units shall be made available for occupancy by Very Low Income Families. a. The determination of whether the Annual Income of a family or individual occupying or seeking to occupy a Qualifying Unit meets the applicable income limit shall be made prior to admission to occupancy of such family or individual in a Qualifying Unit. Thereafter such determinations shall be made at least annually on the basis of an examination or reexamination of the current income of the family or individual. b. If the Annual Income of a Qualified Tenant which is Very Low-Income Family shall be determined upon reexamination to exceed the applicable income limit for Very Low-Income Families, but not the applicable income limit for Lower-Income Families, the Unit shall be counted as occupied by a Qualified Tenant which is Lower-Income Family other than a Very Low- Income Family during such family's or individual's continuing occupancy of such Unit. Deed Restriction - page 3 . . . '. . Owner shall be required to make the next available Qualifying Unit available for occupancy in accordance with clause (3) below. 3. If upon reexamination, neither the required occupancy by Very Low- Income Families nor the required occupancy by Lower-Income Families is met, preference must be given to Very Low-Income Families in the renting of each Assisted Unit which becomes available until the required occupancy is met. 4. Anything to the contrary in the foregoing notwithstanding, Owner will not terminate the occupancy of any tenants in occupancy on the date hereof that are not Lower-Income Families or Very Low-Income Families for purposes of meeting the requirements of this Section. D. RENT LIMITATIONS FOR QUALIFIED TENANTS 1. a. The rent charged by Owner for Qualifying Units occupied by Very Low Income Families shall not exceed the maximum rent for Qualified Tenants who are Very Lower-Income Families for units of the applicable size in the area, as established by the Secretary. Such maximum rent shall be not greater than 30 % of the adjusted income of a family whose income equals 50 % of the area median income, with adjustment for family size based upon unit type. b. The rent charged by Owner for Qualifying Units occupied by Lower-Income Families other than Very Low-Income Families shall not exceed the maximum rent for Qualified Tenants who are Lower-Income Families other than Very Low-Income Families for units of the applicable size in the area, as established by the Secretary. Such maximum rent shall be not greater than 30 % of the adjusted income of a family whose income equals 65 % of area median income, with adjustment for family size based upon unit type. 2. Owner may make a written request to the Grantee for the schedule of maximum rents applicable to the Property as of the date hereof, and the Grantee shall provide such schedule within thirty days of the date Deed Restriction - page 4 . . that the Grantee receives such request. Such rents shall be subject to annual adjustment upon publication by the U _ S. Department of Housing and Urban Development of revised income limits for area lower-income and very low-income families, which adjustment shall be based upon changes in the applicable area median income limits. E. LEASE PROVISIONS 1. Lease provisions. All tenant leases entered into with Qualified Tenants during the Term shall contain provisions wherein each individual lessee a. certifies the accuracy of the information provided in connection with the examination or reexamination of Annual Income of the household of such lessee, and b. agrees that the Annual Income and other eligibility requirements shall be deemed substantial and material obligations of his or her tenancy, that he or she will comply promptly with all requests for information with respect thereto from Owner or the Grantee and that his or her failure to provide accurate information regarding such requirements (regardless of whether such inaccuracy is intentional or unintentional) or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of his or her tenancy and constitute cause for immediate termination thereof. 2. Examination and Reexamination of Incomes a. Owner shall be responsible for determination of the Annual Income and family composition of Qualified Tenants, and for reexamination of Annual Income and family composition of Qualified tenants at least annually III accordance with procedures prescribed by the Grantee. b. As a condition of admission to occupancy of a qualifying Unit, Owner shall require household head, and other such household members as it designates, to execute an approved release and Deed Restriction - page 5 . . . '. . consent authorizing any depository or private source of income, or any Federal, State or local agency, to furnish or release to Owner and to the Grantee such information as Owner or the Grantee determines to be necessary. The use of disclosure of information obtained from a household or from another source pursuant to this release and consent shall be limited to purposes directly connected with administration of this Agreement. c. Owner shall not be deemed to be in violation of this Agreement if, in determining Annual Income and Family composition of a Qualified Tenant, 1. Owner has relied in good-faith upon information which is supplied to Owner by the Tenant, 2. Owner has no reason to believe such information is false, and 3. Owner has complied with all requirements with respect to verification of household lUcome and family composition. 3. Certification by Owner. During the term, on each anniversary of the date upon which this Agreement was first recorded in the land records of the jurisdiction in which the Property is located, or upon such other annual date as established, Owner shall submit to the Grantee a certification in a form prescribed by the Grantee, as to Owner's compliance with all of the terms and provisions of this Agreement. 4. Maintenance of Documents. All tenant lists, applications, leases, waiting lists, income examinations and reexaminations relating to the Property shall at all times be kept separate and identifiable from any other business of Owner which is unrelated to the Property, and shall be maintained, in a reasonable condition for proper audit and subject to examination and photocopying during business hours by representatives of the City. 5. Compliance Review. The Grantee periodically will monitor Owner's compliance with the requirements of this Agreement. In conducting its compliance review, the Grantee will rely primarily on information Deed Restriction - page 6 . . ' . . obtained from Owner's records and reports, findings from on-site monitoring, and audit reports. The Grantee may also consider relevant information gained from other sources, including litigation and citizens complaints. 6. Inspections. a. During the Term, beginning after completion of rehabilitation, the Grantee or its representative, shall inspect the Property annually to document the property continues to comply with Section 8 Housing Quality Standards. b. If at any time during the Term the property is found to be in noncompliance with Section 8 Housing Quality Standards, Owner agrees 1. to complete the repairs necessary to bring the property into compliance within 30 days of notification by the Grantee; 2. notify the Grantee that the repairs have been completed; and 3. ask for reinspection. 7. Releases. The Grantee shall execute such documents as may be required to evidence release of the Property from the covenants and restrictions set forth in this Agreement based upon the expiration of the Term as provided. F. REPRESENTATIONS AND WARRANTIES OF OWNER 1. a. Owner represents and warrants that he has validly executed this Agreement and the same constitutes the binding obligation of Owner. Owner has full power, authority and capacity to enter into this Agreement, to carry out Owner's obligations as described in this Agreement and to assume responsibility for compliance with all applicable federal rules and regulations. b. To the best of Owner's knowledge, the making of this Agreement and Owner's obligations hereunder Deed Restriction - page 7 . .' . . , , . . 1. will not violate any contractual covenants or restrictions between the Owner or any third party affecting the Property ; 2. will not conflict with any of the instruments that create or establish Owner's authority; 3. will not contlict with any applicable public or private restriction; 4. do not require any consent or approval or any public or private authority which has not already been obtained; and 5. are not threatened with invalidity or unenforceability by any action, proceeding or investigation pending or threatened, by or against the Owner, without regard to capacity, any person with whom Owner may be jointly or severally liable, or the Property or any part thereof. c. No litigation or proceedings are pending or to the best of owner's knowledge, threatened against Owner which if adversely determined could individually or in the aggregate have an adverse effect on title to or the use and enjoyment or value of the Property, or any portion thereof, or which could in any way interfere with the consummation of this Agreement. 2. Owner agrees to indemnify and hold harmless the Grantee from and against all liabilities, losses, claims, damages, judgements, costs and expenses (including, without limitation, reasonable attorney's fees) incurred by the Grantee as a result of any material inaccuracy in any of the representations and warranties contained in Sections C & D. G. ENFORCEMENT AND REMEDIES. 1. If the Owner defaults in the performance of any of its obligations under this Agreement or breaches any covenant, agreement or restriction set forth herein, and if such default remains uncured for a Deed Restriction - page 8 =--------- / . ~.. , ., . period of sixty (60) days after notice thereof shall have been given by the Grantee (or for any extended period approved in writing by the Grantee if the default or breach stated in such notice can be corrected, but not within such 60 day period, unless Owner does not commence such correction or commences such correction with such 60 day period but thereafter does not diligently pursue the same to completion within such extended period), the Grantee shall be entitled to apply to any court having jurisdiction of the subject matter for specific performance of this Agreement, for an injunction against any violation of this Agreement, or for such other relief as may be appropriately compensated by monetary damages in the event of Owner's default. The Grantee shall be entitled to its reasonable attorneys' fees in any such judicial action in which the Grantee shall prevail. 2. Each right, power and remedy of the Grantee provided for in this Agreement now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by the Grantee of anyone or more of the rights, powers or remedies provided for in this Agreement or now or hereafter existing at law or in equity or by statute of otherwise shall not preclude the simultaneous or later exercise by the Grantee of any or all such other rights, powers or remedies. H. MISCELLANEOUS 1. Notices. All notices required or permitted to be given under this Agreement must be in writing and will be deemed to have been duly given if delivered personally or mailed, postage prepaid, by registered or certified United States mail, return receipt requested, addressed to the parties at the following address: FOR THE GRANTEE: FOR THE OWNER: City of Bozeman Bozeman Interfaith Housing Grantsperson P.O. Box 7090 P.O. Box 640 Bozeman, MT 59771 Bozeman, MT 59715 Deed Restriction - page 9 \'~ " ' "~... . . . , . , 2. Binding Effect: Covenants Running with the Land. During the Term, this Agreement and the covenants, reservations and restrictions contained herein shall be deemed covenants running with the land for the benefit of the Grantee and its successors, and shall pass to and be binding upon Owners's heirs, assigns and successors in title to the Property, or if the property shall not include title to land, but shall include a leasehold interest in land, this Agreement and the covenants, reservations et al shall bind the leasehold interest as well as the Property and shall pass to and be binding upon all heirs, assigns and successors to such interests; provided, however, that upon expiration of the Term in accordance with the terms hereof said covenants, reservations and restrictions shall expire. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof shall conclusively be held to have been executed, delivered and accepted subject to such covenants, reservations and restrictions, regardless of whether such eovenants, reservations and restrictions are set forth in such contract, deed or other instruments. If a portion or portions of the Property are conveyed, all of such covenants, reservations and restrictions shall run to each portion of the Property. The Grantee at Owners cost and expense, shall cause this Agreement to be duly recorded or filed and re-recorded or refiled in such places, and Owner shall payor cause to be paid all recording, filing, or other taxes, fees and charges, and shall comply with all such statutes and regulations as may be required by law, in the opinion of qualified counsel, in order to establish, preserve and protect the ability of the grantee to enforce this Agreement. In Witness whereof, the undersigned have hereunto affixed their signatures and seals as of the date first above written. City of Bozeman By {2 !'/)~L Don E. Stueck, Mayor Pro Tempore Deed Restriction - page 10 =--------/ " . ,,"..' ,,; ".. . , , " , , . . 7?:l:2 ~ APPROVED AS TO FORM ~i(j&~~a)-f t:t /:5 '.' ;i?i~H:'JUL[,/ -.... .--/" ,,"""7 /J: -~ ' , .... // .. ':;;:;:->>:C. ......./ The foregoing instrument was acknowledg d before me in the State of Montana t h ;l;Y=-Y~ - A a y 0 f ~ '/., ^ 1 994 , by . 'i''''''-{.~T ' .I ,/ , - .. - ...................... -- > -'f . _ ,/ 1/.. . ."..(, /1:::.::" _ ".< ...;~. ., ..., ., . .-~. - ,- ( .- tJ Witness my hand and official seal. l7~ . '; -- ~.- My comrnission expires: U /1 ;h J-" 0i'1;t~? . LJ<.' ,.... .J: / 'i ...../ ,~,,_...~ "--,.;c'~, I :__.pL::":'.:-'..iJ.....?'~_...-- Notary Public Deed Restriction - page 11