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HomeMy WebLinkAboutC2009-290 - 8/10/2009 - NACoRPU CH~ITI C~I~1Ml1NITY DEVELoPI~ENT C~~POR~ITIOI~ FY~S-0fi FY0fi~0~ I~oI~E F~JIwDINC AEEMENT STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § ECTIoN ~ . PANTIE T~ AREE~IEhIT This Agreement ~"Agreement"~ is made and entered into by and between the City of Corpus Christi, ahome-rule rr~unicipal corporation organized under the la~us of the state of Texas ~"CITY"}, and the Corpus Christi Community Development Corporation, a business corporation organized under the lavers of the state of Texas ~"CDC"}, The parties to this Agreement have severally and collectively agreed and by the execution of this Agreement are bound to the mutual obligations and to the performance and accomplishment of the tasks described in this Agreement, ETiON 2~ A~~EEMENT PERIOD This Agreement cor~n~nces upon execution and terminates June 30, ~01a, unless otherwise specifically provided by the terms of this Agreement. ETIOIV ~. CRANT CITY agrees to grant CDC up to ~5o,ooD, subject to the terms and conditions of this Agreement. ETIoN 4. CDC PERFORMANCE A. vUith grant funds provided under this Agreement, CDC shall provide dovun payment and closing costs assistance far purchasers of nearly constructed single-family housing in the City of Corpus Christi, Texas, such purchasers to be homebuyers utirith incomes at or below 00°l0 of area family median incor~e the "Project"}, as established by the U, . Department of Housing and Urban Development ~"HUD"}, and in conforr~aty with the performance statements in Exhibit "A," which is attached to this Agreement and incorporated into this Agreement by reference, At closing, CDC shall ensure that the cost of each Iot on which the housing is constructed constitutes a part of the homebuyer's dov~n payment assistance portion. ~ must ensure that qualified hornebuyers' incomes must be at or below 80°l0 of area family median income in accordance uuith federal regulations and as shovun in Exhibit `~B," ~rhich is attached to this Agreement and is incorporated into this Agreement by reference. CDC must ensure that the Project complies uvith, and is administered in accordance uwrith, but is not limited to, the follo~ring: the HOME Investrr~ent Partnerships Act of ~ 990, 4~ U,.C. X2701 et~ seq., and implementing federal regulations contained in 24 CFR Part 9 ~"HOtUIE"}; TExA ~]OVERNMENT CODE, Chapter X300 and the Texas HOME Prorann ~~O~~Z90 TAC Part I; and the City of Corpus Christi's H~IUIE Program ~8~10109 CDC G f guidelines and Application Package. Additionally, CDC shall comply with and perform all activities in accordance vuith the terms of the Performance taternent, hereinafter referred to a Exhibit "A;" the Hamebuyer Assistance Budget, hereinafter referred to as Exhibit "B;" the ether Federal Requirements, hereinafter referred to as Exhibit ";" the Certificatiorr Regarding Lobbying, hereinafter referred to as Exhibit "~;" the Note Provisions Deed of Trust Covenants, hereinafter referred to as Exhibit "E;" the sample Covenant to Bind the Property far the Periad of Affordability, hereinafter referred to as Exhibit "F;" the Disclosure of Interest, hereinafter referred to as Exhibit ";" the assurances, certifications, and all other statements made by CDC in its application to the pity of Corpus Christi, Texas, for the Project funded under this Agreer~ent, vuhich are incorporated by reference in this Agree rent as if set out herein in full; and with all other terms, provisions, and requirements that are set forth in this Agreement. All of the exhibi#s referenced in this section are attached to this Agreement and incorporated in this Agreement by reference as if fully set out in their entirety. ~ shall submit a Project implementation schedule vuithin ten ~~D}days of the execution of this Agreement; upon submission, the implementation schedule and its substantive content are incorporated into this Agreement by reference. ETI~N . CITY oBL~AT1~N A. feasure of Liability, In consideration of the CDC's full and satisfactory performance of the activities to be accomplished in this Agreement, the QTY shall be liable far payment of actual and reasonable costs incurred by the ADC during the Agreement period far performances rendered under this Agreement by the CDC, subject to the lirr~itations set Earth in this Agreement. ~ . It is expressly understood and agreed by the parties hereto that the CITY' obligations under this section are contingent upon the actual receipt of adequate federal funds to meet the 1TY' liabilities under this Agreement. If adequate funds are not available to make payments under this Agreement, the CITY shall notify the CDC in writing within a reasonable time offer such fact is determined. The CITY shall then terminate this Agreement and vuill not be liable far failure to make payments to the CDC under this Agreement . The CITY shall not be liable tv the CDC for any costs incurred by the ADC, or any portion thereof, vuhich has been paid to the ADC or i subject to payment to the CDC, or has been reir~bursed to the CDC ar is subject to reimbursement to the CDC by any source other than the CITY. The CITY shall not be liable to the CDC far any costs incurred by the CDC which are not allowable costs, a set Earth in ~4 FR 9.20 and Bectian ~ of this Agreement, Funds provided under this Agreement may not be used for payment of prohibited activities a defined in ~4 CFR 92.14. ~. The CITY shall not be liable to the CDC far any costs incurred by the D or far any performances rendered by the CDC which are not strictly in accordance Frith the terms of this Agreement, including the terms of Exhibits CDC FYDS PYD~ Agent ~~090TFdac Page 2 of 1 ~ ~`~," "B," "," "~," "~," "F," and "„ of this Agreement and the Project implementation schedule. The CITY shall not be liable far casts incurred or performances rendered by the CDC before commencement of this Agreement or after termination of this Agreer~ent, B. Limit of Liability. Notwithstanding any other provision of this Agreement, the total of all payments and other obligations incurred by the CITY under this Agreement may not exceed the sum of Five Hundred Fifky Thousand dollars ~5~,OD0}. ~t is agreed that the total amount of 55D,g~g will be provided as a grant. This sung includes only dawn payment and closing cyst assistance funds. E~T~~N . DIEBI~~EMENT ~F FUNDS A. The CITY will provide to the CDC homebuyer assistance funds under this Agreement in accordance with the requirements of 24 MFR 92.582. The CDC may not request disbursement of funds under this Agreement until the funds are needed for payment of eligible costs. Funds will be disbursed a# the time of the homebuyer's mortgage closing on each housing unit to be assisted. B. It is expressly understood and agreed by the parties hereto that payments under this Agreement are contingent upon the ADC's full and satisfactory performance of its obligations under this Agreement. The CITY reserves the right to recapture unexpended funds provided under this Agreement in the event the CITY determines that the CDC will be unable to expend funds within the prescribed time as determined by the CITYF SECTION ~. ADI~tI~ISTRAT~IIE REG~U~~E~IENTS, ~~ST PRINDIRLES ANA PR~~1~1~ INC~I~E A. The ADC shall comply with the requirements of FMB circular No~ A-87' and 24 CFR 85.8, 85.~~, 85.29, 85,22, 85,2G. 85.82 through 85,84, 85.35, ~~~~~, 85,44, 85,51, and 85.52. B, The CDC must comply with applicable regulations under OlVl6 Circular No. A-1 ~ 0, A-~~ and the follovuing requirements of 24 MFR park 84: § 84,2, 84.5, 84,1, 84.28, 84,D, 84.1, 84.34 through 84.3, 84.48 through 84.48, 84.5 , 84.GD through 84,2, 84.2, and 84.3 pursuant to 24 FR g2,5~5. The ADC must return program income, if any, to the CITV in conformity with ail applicable federal lags, rules, and regulations. . The ADC shall maintain records of the receipt, accrual, and disposition of all program income funds, if any, in the carne manner as required for in Section 7 of this Agreement for all funds under this Agreement. The ~~ shall provide reports of program income, as requested by the QTY and at the termination of this Agreement. ~, If perrr~itted under this Agreement, any and all program income must be reinvested by the ADC and applied towards housing initiatives far low and moderate income CDC FYQa ~YO~ Agmt 2fl09Q7.doc Page 3 of 17 individuals and families, including, but not limited tv, acquisition and rehabilitation of rents! or home ownership project, which have been approved in writing by the CITY. ETI~N ~, RETENTION AND AC~EaI~IL~TY ~F RECORD A, The CDC must establish and maintain those records listed under 24 CFR 9~.g~ and other records as ray be determined by the CITY. B. The ADC shall give the CITY, the Corriptraller of the l.~nited Mates, ar any of their duly authorized representatives, access to and the right tv examine all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by the CDC pertaining to this Agreement. such rights to access shall continue as sang as the records are retained by the ~~ The CDC agrees to maintain such records in an accessible location. . All records pertinent tv this Agreement shall be retained by the CDC for Eve years fallowing the date of termination of this Agreement or of subrr~ission of the fnal close out report, whichever is later, with the following exceptions: ~ . If any litigation, claim ar audit i started before the expiration of the five-year period and extends beyond the five-year period, the records will be r~aintained until all litigation, claims ar audit Endings involving the records have been resolved. ~. Records relating tv real property acquisition shall be retained for the period of affordability required under ~4 CFR g~.~4 ar ~~ CFR ~.~~ as applicable, plus five years. ~. Records covering displacement and acquisitions must be retained far at least five years after the date by wwhich all persons displaced from the property and all persons whose property is acquired far the Project have received the final payment to which they are entitled in accordance with ~4 CFR ~,3~3. D. The CDC shall include the substance of this section 8 in all subcontracts. E. The ~ must provide citizens, public agencies, and other interested porkies with reasonable access to records consistent with the Texas open Records Act, TExAs C~~UERNMENT CODE, Chapter a~~. SECTION 9. REPORTING REQUIREMENTS A. The ~ shall submit to the CITY such reports on the operation and performance of this Agreement as may be required by the CITY including but not limited to the reports specified in this section 9. The CDC shall provide the CITY with all reports necessary for the CITY's compliance with 2~4 CFR 9.589 and 24 CFR Part 92, Sub- ark L, of the regulations. Additionally, the CDC shall adhere to, comply with, and p cac F~o~ ~~a~ ~~rn~ ~oa~o~.~~ ~~~~ 417 1 provide reports based on the Performance Measurement system utilised by the CITY for I~L1D reporting purposes B. In addition to the limitations on liability otherwise specified in this Agreement, it is expressly understood end agreed by the parties hereto that, if the ~ fails to submit to the CITY in a timely end satisfactory manner any report required by this Agreement, the CITY may, at its sole option and in its sale discretion, withhold any or all payments otherwise due or requested by the CDC hereunder. If the CITY withholds such a meats, it shall notify the CDC in writing of its decision and the reasons therefore. pY Payments withheld pursuant to this paragraph may be held by CITY until such time as the delinquent obligations for which funds are withheld are fulfilled by the CDC Acknowledgment of Funding ource~ The CDC shall give credit to the CITY as the Pro'ect funding source in all presentations, writken documents, publicity and J advertisements regarding the development. ~TI~N ~ D. I~oNlT~RIN The CITY reserves the right to, from time to tine, carry out f eld inspections to ensure compliance vuith the requirements of this Agreement. After each monitoring visit, the CITY shall provide the CDC with a written report of the rnonito~'s findings, if the rnonitorin report notes deficiencies in the CDC's required performances under the ~~ terms of this Agreement, the mon~tonng report shall include requirements for the timely correction of such deficiencies by the CDC. failure by the CDC to take the action{~ s ecified in the monitoring report may be cause far suspension or termination of this p Agreement, as provided in sections 'i 8 and ~ of this Agreement ~CTI~N ~ 1. IND~I~NIFIATI~N ~Y CDC A. It is expressly understood and agreed by fhe parties to this Agreement that the CITY is contracting wifh the CDC as an independent recipient and that CDC, as such, agrees to hold the CITY harmless and to indemnify the CITY, its officers, officials, employees, representatives, and agents from and agains# any and alI claims, demands, actions, and causes of action of every kind and character which may be asserted by any third par[~y occurring or in any way incident to, arising out of, or in connection with the services to be performed by fhe CDC under this Agreemenf. Additionally, the CDC agrees that it will indemnify and hold harmless the CITY ("'Indemnitees "), its respective officers, officials, employees, representatives, and agents from and against all claims, demands, actions, damages, losses, costs, liabilities, expenses, and judgments recovered from or asserted against the CITY on accounf of injury or damage to persons or property, including death, premises defects, CaC FY05 FY~6 Agmt 2~~~OT.dac Pale 5~1F and workers' compensation claims, to the extent any such damage or injury may be incident to, arise out of, or be caused by, er'ther proximately or remotely, wholly or in part, an act or omission, negligence, or misconduct on the parr of the CDC or any of its agents, servants, employees, contractors, patrons, guests, licensees, or invitees entering upon fhe housing being constructed or improved pursuant to this Agreement or when any such r`njury or damage is the result, Proxima#e or remote, of the violation by the CDC or any of its agents, servants, employees, contractors, patrons, gues#s, licensees, or invitees of any law, ordinance, or governmental order of any kind, or when any such injury or damage may in any other way arise from or ouf of the acquisition, rehabilitation, modifica#ion, or construction of the housing, or out of the use or occupancy of the housing itself by the CDC, its agents, servants, employees, contractors, patrons, guests, licensees, or invi#ees, including without limitation, any damages or costs which may occur as a result of the design of the rehabilitation, modification, or construction of the housing, the bidding process, administration of the construction contracts by the CITY or ifs designee, failure of the housing prior to completion and acceptance of the rehabilitation, modification, or construction by the CITY, failure of the rehabilitation, modification, or construction of the housr"ng to work as designed, failure of any contractor, subcontrac#or, or manufacturer #o honor ifs warranties, or failure of the CDC to maintain the housing. These terms of indemnification shall be effective upon the date of execution of this Agreemen# and whether such injury or damage may result from the contributory negligence or concurrent negligence of lndemnitees; but not if such damage or injury may result from gross negligence or willful mr"sconduct of lndemnifees. The CDC covenants and agrees that, in case the CITY is made a party to any !it`igation against the CDC or rn any litigation commenced by any party relating to this Agreement and the housing contemplated hereunder, the CDC shall and will pay al! costs and expenses, including reasonable attorneys' fees and court costs incurred by or imposed upon the CITY by virtue of any such litigation. B. The CDC, for and in consideration of fhe CITY's participation in this Agreement, hereby agrees and covenants that the CDC will never institute any suit or action of taw against the CITY, its officers, agents, servants, or employees (hereinafter referred #o as Releaseesj related fo the performance by any party under this Agreement, nor insfr`fute, CDC FY05 FY06 Agmt 200907.doc Page 6of17 I prosecute, or in any way aid in the institution or prosecution of any claim, demand, action, or cause of acfion for damages, costs, expenses, or compensation for property damage or injuries, related to the performance by any party under #his Agreement, whether or not caused by the negligence of Releasees. ~T~~N 1~. U~ONT~AT A. Exce t for subcontracts to which the federal labor standards requirements apply p . and for s arate contravts to be entered into under this Agreement, the D ray not p .. contract for erformances described in this Agreement without obta~nNng the CITY s sub p rior written a royal. The ~ shall only subcontract for perforr~ances desvnbed in p pp ' meat to which the federal labor standards requirements apply after the ~~ this Agree as submitted a subcontractor Ali ibility form, as specified by the CITY, for each such h 9 . ro oed subcontract and the CDC has obtained the CITY s pr~ar written approval, pp on the inforrrration subrr~itted, of the ~'s intent to enter into such proposed based subcontract The ~D~ in subcontracting for ar by entering into separate agreements ith third artier to rovide an of the performances required in this Agreement, w p p y rest understands that in entering into such subcontracts and separate exp y r bird a regiments the CITY is not in an manner liable to the D's subcontractor~s~ o t ~ y parties to whom the CSC may be legally obligated. n no event shall an rovision of this ectian 12, specifically, the requirement that B. I Y p ~ .. ~ obtain the CITY"s rior written approval of a subcontractor's el~g~b~I~ty, be the p r ed as relievin the D~ of the responsibility for ensuring that the performances canst u g nder all subcontracts and separate agreements are rendered so as to comply rendered u ' f he terns of this A regiment, a if such performances were rendered by the with allot g ~. The ITY's a royal of subcontractor's eligibility under this section ~ ~ does not D pp ' ado tion ratification, or acceptance of the CAC's or subcontractor's constitute p , , .. ante hereunder. The act of approval of subcontractors el~g~b~l~ty under this perform ` ~ does not waive an right of action which may exist or which may ect~on Y entl accrue to the CITY under this Agreer~ent. The CITY retains at all tirr~es ubsequ y n ht to insist u on the CDC's full compliance with the terms of this Agreement. the g p ADC shall com l with all applicable federal, state, and local Iaws, regulations, . The p Y rules and ordinances when making pracurer~ents under this Agreement. shall com I with all a livable federal, state, and local laws, regulations, D. The CDC p y pp rules, and ordinances for the term of this Agreer~ent. ECT~~N 1 . CONF PICT 0~ lNT~R~~T all ensure that no erson who is an employee, agent, consultant, officer A. The pC h p ointed official of the ADC that receives funds and who exercises or has or elected or app ' f actions or res onsibilitie with respect to activities assisted with funds exercised any u p ' er this A regiment or is in a position to participate in a decision making pror~ded and g CDC FYD5 FYOfi Agent 2~~9D7.~oc Page ~of1~ process or gain inside information with regard to such activities may obtain a personal or financial interest or benefit from a HOME-assisted activity or have an interest in any agreement, subcontract, or contract for the proceeds thereof} with respect to a HahllE- assited activity either far theseives ar those with whoa they have family or business ties, during their tenure or far one year thereafter. CDC shall ensure compliance with applicable provisions under~4 ~ 02,5 and FMB ircularA-110 in the procurement of property and services. B. The CDC shall execute Exhibit "," which is attached to this Agreement and the contents of which, ante executed, are incorpara~ted by reference herein if fu11y set out in this Agreement. E~1`IaN 14. N~ND~R~MiNATION AND ETAR~AN ACTIVITY A. Equal opportunity. The CDC shall ensure that no person snail on the grounds of race, color, religion, sex, age, handicap, familial status, or national origin be excluded from participation in, be denied the benefits of, ar be subjected to discrimination under any program ar activity funded in whale or in part with funds provided under this Agreement. In addition, funds provided under this Agreement must be made available in accardance with the requirements of section 3 of the Hauling and Urban Development Act of 190 ~ ~ U~,C. ~ 701 u}such that: ~ . To the greatest extent feasible, opportunities far training and employment arising in connection with the planning and carrying out of any project assisted with HOME funds provided under this Agreement be given to Iow- income persons residing within the general lacaf government area or rnetropalitan area or nonmetropoiitan county in which the Project is located; and ~. To the greatest extent feasible, agreements for work to be performed in connection vuith any such Project be awarded to business concerns, including, but not limited to, individuals ar firms doing business in the field of planning, consulting, design, architecture, building construction, rehabilitation, maintenance, or repair, utirhich are located in or awned in substantial park by persons residing in the sane metropolitan area or nonmetropolitan county as the Pra~ect. B. Religious arganizatian. In accardance with 2~4 FR 92.7, CDC shall ensure that organizations which are religious orfaith-based are eligible, on the same basis as any other organization, to participate in the Project. ~rganizativns that are funded under the HaN1E Program ray not engage in inherently religious activities, such a worship, religious instruction, or proselytization, as park of the assistance funded under this Agreement, If an organization conducts such activities, the activities must be offered separately, in time or location, from the assistance funded under this Agreement, and participation must be voluntary far the beneficiaries of the assistance provided. A religious organization that participates in the HOLE Program will retain its independence from federal, state, and local governments and ~,ay continue to carry out CDC FY05 FY06 Agra 2Ug907.doc Page 8of17 its mission including the definition, practice, and expression of religious beliefs, provided that it does not use direct H~IUIE funds to support any inherently religious activities, such as worship, religious instruction, or proselytization. An organization that parkicipates in the HOME Prograr~ shell not, in providing program assistance, discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief. HOIUIE funds may not be used far the acquisition, construction, or rehabilitation of structures to the extent that those structures are used far inherently religious activities. Hol1~E funds may be used far the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for inherent#y religious activities and eligible to be assisted under the HOLE Program. where a structure is used for both eligible and inherently religious activities, HOLE funds may not exceed the cost of those portions of the acquisition, construction or rehabilitation that are attributable to eligible activities in accordance with the cost accounting requirements applicable to HOME funds under this Agreement. sanctuaries, chapels, or other rooms that a HOME~funded religious congregation uses as its principal place of worship, however, are ineligible for HOLE-funded improvements. ETION ~5. LEGAL AI~THORlTY A. The ~ assures and guarantees that the ADC possesses the legal authority to enter into this Agreement, receive funds authorized by this Agreement, and to perform the services the OD has obligated itself to perform in this Agreement. B. The person or persons signing and executing this Agreement on behalf of the ODD, or representing themselves as signing and executing this Agreement on behalf of the D, do hereby warrant and guarantee that they have been duly authorized by the OTC to execute this Agreement on behalf of the D and to validly and legally bind the ODO to all terms, performances, and previsions set forth in this Agreement. The O~ shall not employ, award a contract to, or fund any person or entity that has been debarred, suspended, proposed far debarment, or placed on ineligibility status by the federal government. In addition, the OITY shall have the right to suspend or terminate this Agreement if the CDC is debarred, suspended, proposed far debarment, or ineligible from participating in the HOME Program. EOTION 1 . LITICAT~oN ANA CLAM The ~D shall give the CITY immediate notice in writing of ~ ~ any action, including any proceeding before an administrative agency filed against the ~ in connection with this Agreement; and ~~ any claim against the CDC, the cast and expense of which the ~ may be entitled to be reimbursed by the CITY. Except as otherwise directed bythe OITY, the ADC shall furnisi~ ~rnmediatelyto the CITY copies of ail pertinent papers received by the OD with respect to such action or claim. cDC FYO~ FYO~ pmt ~0~90T.~oc Page 9 of 1 T r SECTION ~7. CHANE AND A~IENDI~ENT' A. Except as specifically provided otherwise in this Agreement, any alterations, additions, or deletions to the terms of this Agreement shalt be by written amendment and executed by both parties to this Agreement. Modifications which do not change tha essential scope and purpose of this Agreement may be approved on behalf of the CITY by the general Manager, B. It i understood and agreed by the parties to this Agreerner~t that performances under this Agreement must be rendered in accordance with the HOME Investment Partnerships Act of ~ 990, 4~ U.Q.C. ~ ~70~ et. seq., the regulations promulgated under such Act, the assurances ar~d certifications made to the CITY by the CDC, and the assurances and certifcations made to HUD by the CITY with regard to the operation of the HOME Program. Based on these considerations, and in order to ensure the legal and effective performance of this Agreement by both parties, it is agreed by the parties to this Agreement that the performances required under this Agreement are amended by the provisions of the HOME Program and any amendments thereto and may further be amended in the following manner; HUD may, from time to time during the period of perforr~ance of this Agreement, issue policy directives or regulations which serve to establish, interpret, or clarify performance requirements under this Agreement Buch policy directives promulgated in the form of HOME Issuances shall have the effect of modifying the terrns of this Agreement and shall be binding upon the CDC, as if wri#~en herein, provided however, that such policy directives and any amendr~ents shall not alter the terms of this Agreement o as to release the CITY of any obligation specified in Section 4 of this Agreement to reimburse costs incurred by the CDC prior to the effective date of said amendments or policy directives unless barred by federal or state law. C. Any alterations, additions, or deletions to the terms of this Agreement which are required by changes in federal law or regulations are autornatically incorporated into this Agreement without written ar~endment hereto and shall become effective vn the date designated by such law or regulation. The CITY or the CDC rna~ require written changes ar amendments to this Agreement when any substantial alterations, additions, or deletions to the terms of this Agreer~ent are required by changes in federal law or regulations. D. The CDC has provided an estimated Homebuyer Assistance Budget based upon the proposed assistance that is the subject of this Agreement, such schedule being attached to, incorporated into, and rude a part of this Agreement for all purposes as Exhibits "B," Ten days prior to the award of anyfunds pursuant to this Agreement, CDC will provide a finalized Homebuyer Assistance Budget schedule and a Project impler~entation schedule, which includes a schedule of costs of completion and a schedule of completion for the venous aspects of construction of the housing, such finalised schedules to be substituted for the then existing Exhibit "B" end which gill become Exhibit "B" of this Agreement for all purposes. CDC FYO~ FY~~ Agrnt 2~09D7.doc Page ~D~ 17 ECTI~N ~ S. ~~1PENI~N In the event the CDC fails to comply with any term of this Agreement, the CITY rna , in accordance with 4 CFR 55.43 and upon written notification to the CDC, Y suspend this Agreement ~n whole or ~n part, withhold further payments to the CDC, and prohibit the CDC from incurring additional obligations of funds under this Agreement. ETI~IV ~ . ~'ERI~IINATI~N A. The CITY may terminate this Agreement} in whole or in part, in accordance Frith ~4 CFR 85.43 and this section ~ 9. The CI1`Y may also terminate this Agreement for convenience in accordance with 24 CFR 85.44. In the event the ~ materially fails, as determined by the CI~'Y, to comply with any term of this Agreement, whether stated in a federal statute or regulation, an assurance, in a state plan or application, a notice of a~rard, or else~rhere, the CITY may take one or mere of the following actions: 1. Temporarily withheld cash payments pending correction of the deficiency by the CDC or take mere severe enforcement action against the CDC. ~. Disallow ail or park of the cost of the activity or action not in compliance. 111~holly or partly suspend or terminate the current award for the CDC program. 4. Withheld further I'~i~M~ awards from the CDC. 5. Take other remedies that may be legally available B. Additionally, this Agreement may be cancelled upon thirty-day notice of cancellatian upon mutual consent of the parkie~s. ET~~N ~~. AUDiT A, Unless otherwise directed by the CITY, the CDC shall arrange for the performance of an annual fnanciai end compliance audit of funds received and performances rendered under this Agreement, subject of the follovuing conditions and limitations: ~ . The CDC shall have an audit made in accordance with ~4 CFR .5~8, i.e., ~4 CFR Part 85,5 or FMB Circular A-135 far any of its fiscal years included within the Agreement period specified in section of this Agreement in which the CDC receives more tharr 00,Dg0 in federal financial assistance provided by a fedora! agency in the form of grants, agreements, loans, loan guarantees, properky, booperative agreements, interest subsidies, insurance or direct appropriations, but federal f nancial assistance does not include direct federal cash assistance to individuals. fihe term includes awards of federal financial assistance received directly from federal agencies, or indirectly through other units of state and local gavernrnent~ CDC FYQ~ FY06 Agmt 2~~907.dvc Page ~~of17 At the option of the ~, each audit required by this section may cover either the CDC's entire operations or each department, agency, or establishment of the CD which received, expended or otherwise administered federal funds. Notwithstanding section ~~}~4}, section 5~a}~~~, and section G of this Agreement, the CDC may utilize funds budgeted under this Agreement to pay far that porkion of the cast of such audit services properly allocable to the activities funded by the CITY under this Agreement, provided however, that the CITY shall not make payment for the cost of such audit services until the CITY has received such audit report from the CDC. 4. Unless otherwise specifically authorized by the CITY in writing, the CDC shall submit the report of such audit to the CITY within thirty ~4} days after completion of the audit but no later than one ~~ ~ veer after the end of each federal fiscal period included within the period of this Agreement. Audits performed under subsection A of this section ~g are subject to review and discrepancy resolution by the CITY or its authorized representative. ~. As part of ats audit, the CDC shah verify expenditures according to the amounts detailed in Exhibit "E." B. Notwithstanding subsection A of this section ~~, the CITY reserves the right to conduct an annual financial and compliance audit of funds received and performances rendered under this Agreement. The CDC agrees to permit the CITY or its authorized representative to audit the CDC's records and to obtain any documents, materials, ar information necessary to facilitate such audit. should an audit not be required by subsection A of this section 0, the CDC shall provide an annual audit to the CITY of funds received in performance of this Agreement. . The CDC understands and agrees that at shall be liable to the CITY for any casts disallowed pursuant to financial and compliance audit{s} of funds received under this Agreement. The CDC further understands and agrees that reimbursement to the CITY of such disallowed casts shall be paid by the CDC from funds which were not provided or otherwise made available to the CDC under this Agreement. D. The CDC shall take all necessary actions to faciiitate the performance of such audit or audits conducted pursuant to this ectian 0 as CITY fray require of the CDC E. All approved MaIUiE audit reports shall be made available for public inspection within ~ days after completion of the audit. SECTION 21. ENVIRONMENTAL CLEARANCE REQUIREMENTS The CDC understands and agrees that, by the execution of this Agreer~ent, the CDC shall assume the responsibilities for environfnental review, decision rr~akin, and CDC FYDS FYD$ Agmt 20090T.doc Page 12 of 17 other actions in accordance with and to the extent specified in ~4 MFR ~.~~ and 2~ MFR, Pert a8. ETION 2~. LABOR TANDAR~ All laborers and mechanics employed in the rehabilitation of a project or program assisted under this Agreement that contains 'I ~ ar more dwelling units must be paid wages at rates determined by the U. . secretary of Labor in accordance with the Davi~Bacon Act {4g U..~. Ta-}, and contracts involving their employment are subject to the applicable provisions of the contract vl~ark Hours and safety standards Act X40 U,,~. ~7-3}. The D must ensure that any of its construction contractors and subcontractors comply with regulations issued under these Acts and with other federal laws and regulations pertaining to labor standards and HUD Handbook 1344.E ~Eederal Labor standards ampliance in Hauling and Community Development Pragrams~, a applicable. ECTto~ ~. SPECIAL CONDITIONS A. Release of Funds. The CITY shall not release any funds for any casts incurred by the ADC under this Agreement until CITY has received certification from the CDC that its fiscal antral and fund accounting procedures are adequate to assure the proper dis- bursal of and accounting for funds provided under this Agreement. The CITY shall specify the content and form of such certification. B. Affordability. Funds provided under this Agreement must meet the affordability re^ qu~rements of the HOIUIE regulations far a period of 1 g years. The CDC shall ensure, by pror~issary note provisions, deed of trust covenants, and affordability covenants, that each homebuyer assisted by the CDC under this Agreer~ent is obligated to repay funds provided through this Agreement should the hor~ebuyer fail to comply ar cease to comply with tl~e affordability requirements as set forth in this Agreement; provided, however, that for each month during the ten-year affordability perlad that the property is ' as he ari final homebu er's rinci al residence, a fractional amount of 111 Sgt" occupied t g y p p of the amount of HaME funds provided to the homebuyer will be waived and forgiven. In the event of the sale voluntary or involuntary} of the housing unit, the amount subject to recapture from the net proceeds of the sale is the balance of the amount that has not been waived and fvrgiven~ "Net proceeds" is defined as the sales price minus superior lawn repayment bother than HOME funds} and closing costs. However, in no event may the amount recaptured exceed the net proceeds. In the event that the net proceeds ere not sufficient to recapture the balance due plus enable the harneauuner to recover the amount of the #~vmeowner's non-HOME assisted down payment portion, if any, and the cost of any capital i~rprovement investment made by the owner since purchase, then the net proceeds will be shared in accordance with the provisions set out in 24 CFR 9~.~4~a}~~}iii}{A}~}. The CD shall include these provisions, expressed in Exhibits "E" end "F," in each promissory Hate, deed of trust, end affardab~lity covenant far each property assisted with HOME funds provided under this Agreement. The CDC shall ensure that the affordability requirer~ents continue to be rr~et throughout the term of this Agreement, and such obligation shall be binding upon the successors, assigns, and CDC FY05 FYO Agrnt 200907.doc Page 13 of ~ 7 transferees of the the ADC as required by 24 MFR g~,24. The D shall ensure that an affordability requirements stated in this subsection are included in an affordability covenant, such covenant required to run with the real property open the real estate closing of each unit of housing assisted with funds provided under this Agreement and continue until satisfiedF The ~DG shall ensure that the deed covenant is recorded in the real property records of Nueces bounty and that the original deed covenant, duly cerkified as to recordation by the appropriate county official, is returned to the CITY within thirty days of closing. A sample affordability covenant is attached to this Agreement as Exhibit "F" and is incorporated in this Agreement by reference a if fully set out in this Agreement . Repayment. The ~~ agrees that all repayments by homebuyers, including all interest and any other return on the investment of HOME funds, will be made to the QTY based on the provisions sat out in subsection B of this section upon any sale {voluntary or involuntary}, foreclosure, or transfer in lieu of foreclosure that occurs during the affordability period for each HOME assisted property. D. Housing duality standards. The D shall ensure that all housing assisted with funds provided under this Agreement meets the requirements of ~4 CFR 9.~~ . E. Affirmative Marketing. The CDC shall adopt and submit for the ~ITY's approval affirmative marketing procedures and requirements, not later than 3o days after the date this Agreement is executed. The affrr~ative marketing procedures and requirements shall include, but need not be limited to, those specified in ~4 MFR ~.~~ . The CITY will assess the efforts of the CDC during marketing of the units by use of compliance certification or personal monitoring visits to the Project at least annually. vllhere the ~ fails to fallow the affirmative marketing requirer~ents, corrective actions shall include extensive outreach efforts to appropriate contacts to achieve the occupancy goals, objectives, or other sanctions the CITY may deem necessary. The D must provide the CITY with an annual assessment of the affirmative marketing program of the housing development. The assessment must include: 1, Method used to inform the public and potential hvmebuyers about federal fair housing lags and affirmative marketing policy. The ~D~'s advertising of vacant units must include the equal housing opportunity logo ar statement. Advertising media may include newspaper, radio, television, brochures, leaflets, or may involve simply a sign in a Window. The ADC may wish to use community organizations, piaces of worship, employment centers, fair housing groups, hauling counseling agencies, social service centers or medical service centers as resources for this autreach 2. Records describing actions taken by the ADC to affirmatively market units and records to assess the results of these actions. The D must maintain a file containing all marketing efforts {i.e.~ copies of newspapers ads, mernvs of phone collet copies of letters, etc.} to be available far inspection at least annually bythe CITY. cDC FY~~ FYDG -~gmt 2~090~.doc Page ~4 of 1 ~ . copies of completed applications far vacant units. The CDC shall solicit applications far vacant units from persons in the housing market who are least likely to apply far the constructed or rehabilitated housing without benefit of special outreach efforts, In general, persons who are not of the racelethnicity of the residents of the neighborhood in which the constructed or rehabilitated unit is located shall be considered those least likely to apply. 4. A list of assisted homebuyers. The D shall maintain a listing of all homebuyers residing in each unit through the end of each applicable compliance ar affordability perto~. F. reversion of Assets. Upon termination of this Agreement, all funds remaining on hand on the date of termination and all accounts receivable a#tributable to the use of funds received under this Agreement shall revert to the CITY. The ~~ shall return these assets to the CITY within seven {?'}days after the date of termination. . Flood Insurance. Funds provided under this Agreement nay not be used in connection with the acquisition or rehabilitation of a deveioprnent located in an area identified by the ~.1. . Federal Emergency IUlanagement Agency {FEA} as having special flood hazards, unless the locality in which the site i located i participating in the National Flood Insurance Program. H. Displacement, Relacatian, and Acquisition. The ADC must ensure that it has taken all reasonable steps to minimize the displacement of persons families, business and nonprofit arganizations~ as a result of a Project assisted with funds provided under this Agreement. The D must comply with the applicable provisions of ~4 MFR 9.. I. Homebuyer's Property Insurance. The CDC shall ensure that the CITY is named as an additional insured on each hamebuyerrs policy of insurance by separate endorsement, such policy to be obtained at the time of the real estate closing far each property assisted with funds provided under this Agreement. The additional insured requirement pertains to homeowners' insurance obtained to insure against catastrophic structural lasses due to fire, natural disaster, damage, etc. SECTION 4. ADI~INIT~ATION REP~NIBtLITIE BY SEPARATE A~EE~IENT The parties acknowledge and agree that the D' program through which these grant funds are being provided is being administered, under a separate agreement, by the carpus Christi community Improvement corporation ~"I"}. By such separate agreement between the CDC and the I executed June , ~g~~, the I shall administer the programmatic requirements, on behalf of the D, pertaining to the grant funds provided under this Agreement. ETI~N ~5. ORAL AND V~RITTEN AGREEI~IENT A. With the exception of the document identified in Section ~~ of this Agreement, all oral and written agreements between the parties to this Agreement relating to the cDC FYO~ FY06 Agm# 2409Q7,doc Page ~~ of 17 subject matter of this Agreement that were made prior to the execution of this Agreement have been reduced to writing and are contained in this Agreement, B, The attachments enumerated and denominated belo~r are hereby made a part of this Agreement, and constitute promised performances by the ~ in accordance r~rith section ~ of this Agreement ~ . Exh~b~t "A" Performance statement ~. Exhibit "B" Ho~nebuyer Assistance Eudget Exhibit "" other Federal Requirements 4. Exhibit "~„ Certification Regarding Lobbying ~. Exhibit "E" Note Provisions Deed of Trust Covenants G. Exhibit "F" sample Affordability Covenant ~. Exhibit ;` Disclosure of Interest ET~oN ~~. JUR~DITfoN AND VENUE The lavers of the state of Texas apply to any dispute arising under this Agreement, For purposes of litigation pursuant to this Agreement, venue lies in Corpus Christi, Nueces County, Texas, where this Agreement eras entered into and must be performed ETION ~~. oI~PLIANCE 111fITH FEDERAL, STATE AND LOCAL LAWS The CDC shall comply vwrith all federal, state and local lauv, statutes, ordinances, rules, regulations, orders, and decrees of any goverr-ment, court, administrative body, or tribunal related to the activities and performances of the ADC under this Agreer~er~t~ Upon request of the CITY, the CDC shall furnish satisfactory proof of its compliance horernrith. ETION 28. REMEDIES It is expressly understood and agreed by the parties hereto that any right or remedy provided for in this section ~~ or in any other provision of this Agreement does not preclude the exercise of any other right or remedy under this Agreer~ent or under any provision of lauv nor dues any action taken in the exercise of any right or remedy be deemed a vuaiver of any other rights or remedies, Failure to exercise any right or remedy hereunder shall not constitute a uvaiver of the right to exorcise that or any other right or remedy t any time. (EXECUTION PAGE FOLLOWS) CDC FY~5 FYOG Amt ~~4~O~,doc Page 1~ of 1 ~ E~cecuted in duplicate originals this~day of , boo. ATTEST: CITY ~F C~RPIJ CHRISTI t Armando Cha a, r ry `A I .Escobar, Manager as t~ orm~ x~ ~ un Assn ~t City Attorney For qty ~Ittorr~~y C~RPlJS CHRISTI COMMUNITY ~E11EL~PMENT C~RP~RATI~N r ~V Sylvi ord, President Date: ~ 31 ~~~ Ak[NOVI~LED~I~ENT STATE OF TEXAS § COUNTY OF NUECES § I~o1 A~.L BY THEE PRESENTS This instrument eras acknowledged before me on , ~o0g, by S~Ivia Ford, President of the Corpus Christi Community Development Corporation, a Texas nonprofit corporation, on behalf of the corporation. NOTARY PUBLIC, State of Te~ca CDC FYO~ FY46 Agmt 2~0907.dvc Page 1~ of 1~ EXHIBIT A RERF~~1~Ai~ICE STATEMENT FY~00~ H~l~l~ F~1f~DS FY~~o~ H~~IE FUNDS Total FY~005 H~~IE funds in the amount of ~O,ooo and FY~ooG HOME funds in the amount of X0,000 gill ~e used to assist appro~cir~ately twenty seven {~~} families with down payment, principal reduction and closing costs towards the purchase price of nev~rly constructed homes in the pity of Corpus Christi. The income of eligible families must he less than 80°I~ of I~rea Median Family Inco~-e as noted in EXHIBIT B. The City of Corpus Christi will prepare qualified applicants for homeownership by providing training end counseling. EXHIBIT B CORPUS CHRISTI COMMUNITY DEVELOPMENT CORPORAT40N (CCCDC) ~Y~~~S HOME FUNDS ~UO,~UO ~Y~~~G H~iVIE FUND X50}~~~ $~0,~~0 ~'~TAL H~M~ ~'U~1DIN T~~ ~ted income Han~ebu ear haracterY~tics °la ~~ Median Inco~n 84°la ~7 fa~nili~s asited AI~~ Area Il~ledian Inorne grant Am~un~ SO°lo or less SDK ~ 1ncve ~uideiine established ~y HUD subjectto change EXHIBIT C OTHER FEDERAL REQUIREMENTS The CDC shall comply v~rith all federal, state, and local lays, rules, and regulations applicable to the activities and performances rendered by the CDC under this Agreement including; but not limited to, the lar~~rs, rules, and the regulations specified in sections I through 111 of this Exhibit . I. ~1V1~ RICI~T • The Fair Housing Act ~4~ l~ ~B.C. Bections X601-20} and implementing regulations at 24 CFR Part ~ ~~; Executive order ~ ~ D6, as ar~ended by Executive order 1 X59 ~3 CFR, ~ 958-~ 96~ Comp., p. ~~ and CFR,1980 Comp., p. X07} Equal Opportunity in Dousing}and implementing regulations at ~4 CFR Port 101; and Title Vl of the Civil fights Act of X964 X42 tJ.B,C, 200~ed} ~Nondiscrimi- nation in Federally Assisted Programs} and ir~plementing regulations issued at ~4 CFR Part 1; . • Executive Order ~ 1063, as amended by Executive Order 1~~5, and ~4 CFR Part 1O1, "Nondiscrimination and Equal Opportunity in Housing under Ex-ecutive Order 10063.'} The failure or refusal of CDC to comply v~rith the requirements of Executive Order ~ 1063 or ~4 CFR Park ~ O7 shall be proper basis for the imposition of sanctions spelf~ed in 4 FR Part 107.60, ~ The prohibitions against discrimination on the basis of age underthe Age Discrimination Act of 1915 ~4~ U.Q.C. Bections 611-~~~ and implementing regulations at ~4 CFR Part 146, and the prohibitions against discrimination against handicapped individuals under Bection 604 of the Rehabilitation Act of 1913 ~~91J. ec~ 794} and implementing regulations at 24 CFR Part ~; • The requirements of Executive Order 11 X46 ~ CFR, ~ 964-65, Comp., p. 339} Equal ~pporkunity~ and the in~piementing regulations at ~4 CFR Part 8; • The requirements of Executive orders 1166 and 1 ~4 concerning Minority Business Enterprise}, and 121 ~ concerning UlJomen's Business Enterprise consistent ~vith HUD's responsibilities under these orders. Each applicant must make efforts to encourage the use of minority and vuomen's business enterprises in connection Frith HOME funded activities, The CDC must prescribe procedures acceptable to the CCCIC to establish activities to ensure the inclusion, to the maximum extent posibie of rr~inorities and women and entities awned by minorities and women. The ~D will be required to identify contracts which have been bid ~y minority awned, woven awned, andlor sr~ali disadvantaged businesses; • The Age Discrimination Act of 1915 X42 U.. sections ~~0~ et seq.}; and ~ section X04 of the Rehabilitation Act of 191 X29 U.. dec. 794} and "Nondiscrimination Based vn Handicap in Federally-Assisted Programs and Activities of the Department of Hauling and Urban Development," 24 DFR Part 8. By signing this Agreement, ADC understands and agrees that the activities funded heroin shall be operated in accordance with 24 MFR Part 8 and the Archi-tectural Barriers Act of X908 X42 U.. sec, 41~~ et~ seq~}, including the use of a telecommunications device for deaf persons ~TDD} or equally effective communication system. Ii. L~AD~~AED PAINT • Title ill of the Lead-Based Paint Poisoning Prevention Act X42 U.S.Q. Sec. 4831 }. III. ~N111RoNENTAL TAN~AR~ • Environmental Review Procedures for Title I community Develapr~ent Block Orant Programs, 24 MFR Part ~8, as amended in 47 Fed. Reg.157~0 ~Aprii ~ ~, ~ 982}; ~ National Environmental Policy Act of 1909 X42 U.S.Q. dec. 4321 t. segF}and 40 CFR Parts ~ 500-1~a8; • The National Historic Preservation Act of 10 ~1 U.S.C. Sec. 410 et. seq.} as amended; particularly Section 108 ~~ 0 U ~ . Sec 470E}; • Executive Order 1 ~ X93, Protection and Enhancement of the cultural Environment,l~ay 1 ~ 971 X30 Fed. Reg. 892 }, particularly Section ~~c~a ~ The Reservoir Salvage Act of 1900 ~1G U.S.C~ Sec. 4G9 et seq.}, particularly Section 3 X18 U.S.C. Sec. 489a-1}, as amended by the Archeological and Historic Preservation Act of '1914; • Flood Disaster Protection Act of 1973, (42 U.S.C. Sec. 4001 et. seq.) as amended, particularly Sections 102(a) and 2~2(a) [(42 U.S.C. Sec. 4012a {a} and Sec. 4106(a)]; • Executive order ~ 9988, Floodplain IVlanagernent, Il~ay X4,1917 ~4~ Fed. Reg. ~~~1~, particularly section ~{~~; • executive order ~ 1999, Protection of 1etland, I~ay ~4, ~ 97l ~4~ Fed. Reg. ~G91 ~, particularly ectivn 2 and 5; • The Coastal Zone Management Act of 1972 {16 U.S.C. Sec. 1451 et seq.) as amended, particularly Sections 307(c} and (d) [(16 U.S.C. Sections 1456 (c) and (d)j; • The safe Drinking 1~IJater Act of 1974 {4~ U~ c~ ~01.~OO~f} et seq.}, and ~~~ U.. dec. 849} as arr~endd, particularly section 144{e} ~~4~ U,, sections 99h-80~{e~]; • The Endangered Species Act of 1973, ~1 ~ U.. Sec. ~ 5~1 et seq.} emended, particularly Section ~ ~1G U~S., Sec.1aG}; • The Wild and Scenic Rivers Act of 1968, (16 U.S.C. Sec. 1271 et seq.) as amended, particularly Sections 7(b) and (c} [{1fi U.S.C. Sections 1278{b) anc! (c}]; • The glean Air Act {4 ~ l~ ~ F~. dec. 7~0 ~ et seq.} a areended, particularly sections ~ 7{c} end ~d}}; and ~ Farmlands Protection and Policy Act of ~ 981, {l U..~. Sec 491 et seq.} • 24 MFR Part ~, Environmental criteria and standards. IV. RELOCATION AND ACQUISITION • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of ~ 979 ~4~ U.. Sec. 401 et. seq.}, 49 MFR Part ~4, and ~~ CFR Section ~70.46a E{5~ Fed. Reg. 909 July ~ 8,1990}]. EXHIBIT D CERTIFICATION REGARDING LOBBYING FOR AGREEMENTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies to the best of its knowledge and belief, that: ~ . Na federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, ~ member of congress, an officer or em- la ~~ of congress, or n employee of a member of congress in connection with py the awarding of any federal agreement, the making of anyfederal grant, the rr~ak- in of any federal loam the entering into of any cooperative agreer~ent, or modifi- g cation of any federal agreement, grant, loan, ar cooperative agreement. ~. If any funds other than federal appropriated funds have been paid or will be paid to any person far influencing or attempting to influence an officer ar em- ployee of any agency, member of congress, an officer or employee of con- re, or n employee of a member of congress in connection with this federal 9 agreement, grant, loan, or cooperative agreement, the undersigned sha11 com- leteand submit standard form - LLL, "Disclosure ~orrr~ to Report Lobbying", in p accordance with its instructions. .The undersigned shall require that the language of this certification be included in the award documents for all subaward at all tiers {including sub- s regiments, subgrant, and agreements under grants,laans, and cooperative g agreemgints~ and that subrecipients shall certify and d~clase accordingly. This certification is material representation of fact which reliance was placed when this transaction was made or entered into submission of this certification is a rere uisite for making ar entering into this transaction imposed by ~ U.Q.C. p q i section 1~. Any person who Earls to frle the required certification shall be sub~ect to a civil penalty of not less than $1 a,aaa and not more than ~ aa,aaa far each such failure. Corpus Christi Community Development Corporation y is Fard, President ~ ~ , ~ ooh Date EXHIBIT E NOTE PROVISIONS & DEED OF TRUST COVENANTS ~ shall ensure thatthe following note provisions and covenants are included in each promissory Hate and each deed of trust that is executed by ~ ho~rebuyerfor each parcel of real property assisted under this Agreement: Nate and Deed of Trust: Term of payment: This prar~issory Hate shall be due and payable in ap- ro~cimatel 1~a month) installments, each bein in the amount of ~1~~at~' of the p y y g principal amount set out in this note, Each such installment is due in consecutive order thereafter an the same day of each end every succeeding month from the date of execution until paid in full; provided, however, that, for each month Maker continues to awn and occupy the property described herein as Maker's principal residence during the terra of this note, the monthly installr~ent due herein shall be vuaived and forgiven by Payee, and Maker shall not be required to pay such monthly installment. Principal Resi~er~ce Requirement: grantor agrees to own and occupy the property described herein as hislherltheir "principal residence" for ~ period of ten ~~0} years following execution of the note and Deed of Trust and acceptance of the funds. As used herein, "principal residence" means home which, depending upon ell of the facts and circumstances including the goad faith intent to the occupant}, is occupied primarily far residential purposes. The term does not include a home used as an investment property ar as ~ recreational home or ~ home which is used primarily in a trade or business has evidenced by the use of mare than fifteen percent ~1°l0~ of the total floor space in the trade or business, Grantor agrees to subrriit an annual recertification to the Beneficiary, in a form prescribed by Payee, to evidence and as proof of rantar's occupancy in accordance with the provisions of this Deed of Trust. grantor furkher agrees to notify Beneficiary immediately if at any time the praperky ceases to be used as rentar's principal residence. Recapture Requirement: In the event grantor ceases to own and occupy the property as grantor's principal residence or conveys or contracts to convey the property or any interest therein, voluntarily or involuntarily, to a party or parties not appearing in this instrument without the written consent of Beneficiary ~"sale"}, then Beneficiary, at its election exercised at any time after such event without notice to grantor, may declare the balance of the indebtedness secured hereby at once due end payable, The amount subject to recapture from the net proceeds of the sale is the balance of the amauntthat has not been waived and Fforgiven by Beneficiary. "Net proceeds" is defined as the sales price minus superior loan repayment {otherthan federal HOME funds} and closir-g casts. Hovuever, in no event may the amount recaptured exceed the net proceeds. In the event that the net proceeds are not sufficient to recapture the baiance due plus enable the homeo~uner to recover the amount of the homeovuner's non- I~~M~-assisted dovun payment portion} if any, and the cost of any capital improvernent investment made by the ovuner since purchase, then the beneficiary v~ill share the net proceeds of the sale vuith the homeov~ner in accordance v~rith the provisions set out in ~4 MFR 2.254~a}~5}iii}~A}~~}, r ~ 1 EXHIBIT F AMPLE SEED CaVENANT Ta BI~V~ PRaPERTY FaR PERfaD OF AFFaRDA~If_ITY STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF NUECES § Pursuant to an agreement entered inta between the City of Corpus Christi ~"City„} and the Corpus Christi Comrr~unity Uevelapr~ent orparatian ~"CDC"}, executed in June, 2QQ9, which agreement i incorporated in this instrument by reference ~"~ reer~ent"}, ~ accepted federal funds, in can~unction with the United states Ue artment of HouMng and Urban Develapment s Home investment Parknership p . Pra tarn ~"HaNi~ grogram"} administered by the City, to provide down payment and g closing cost assistance to an eligible home buyer to fund the purchase of the follouving property: Lot X~, Blvck ~, of Narrre of subdivision, a subdivision in the City of Carpus Christi, Nueces County, Texas, as shawr~ by the map or plat of record found in Volur~e X~, page 7~~C, of the I~ap Retards of Nuece aunty, Texas, and cammonly knvvun by its street address of ~ street Address, located in Carpus Christi, Nueces Caunty, Texas thereinafter referred to as the "Properky"}. Pursuant to the terns, conditions, and covenants captained vuithin the Agreement, the a~rner ~"rantar"} of the real property, in cansideration of receiving the funds as harnebu er assistance from the CDC and City, agrees to bind the Property uwrith the . ,. affordab~i~t re u~rernents pec~fNed ~n Tit1e 24, Part ~.~~~, of the United states Cade of ~ ~ , Federal Regultiaps, far a period of trot less than ~ 4 years from the date of grantor s urchase of the property, such date of purchase presently unknawp but anticipated to 4 be rat cater than [insert date ~uithin QO days of execution of this document]. Prir~ci a! residence Requirement: raptor agrees, frorr~ the date of purchase of 1 ii !1 the Pra e , to soup and occupy the Properky as grantor s princ~pa~ residence. As p ~Y used herein, "principal residence" means a home vuhich, depending upon all of the facts and circumstances including the good faith ~ptent to the Grantor}, is occupied primarily far residential purposes. The term does nut include a home used by grantor a an investment property or a a recreational borne or a hame v-~hich is used prirr~arily in a trade or business has evidenced by the use of rr-ore than fifteen percent [~ ~~lo] of the tats! floor space in the trade or businessy. grantor agrees to submit an annual recertification tothe City, in a farm prescribed by the City, to evidence and as proof of grantor's occupancy in accordance with the provisions of this covenant. grantor further a tees to ratify the City immediately if at any time the property ceases to be used as 9 Granter's principal residence. i ~ r = Seca tore Requirement: In the event grantor ceases to occupy the property as grantor's rincipal residence or conveys or contracts to convey the propey or any ~ ~ i ~ interest therein ~"sale"~, either voluntarily or involuntarily, to ~ pariy or partMe not a earin in this instrument, without the written consent of an authorised representative pp ~ of the fit then the ~ity~ a the l~enef iciary of grantor's promissory note, at its election Y~ exercised at n time after such event without notice to grantor, may declare the Y balance of the indebtedness secured by grantor's note at once due and payable The amount of the indebtedness ub~ect to recapture is specified in grantor's note and in the 1 Agreement between the City and the ~. This instrument oonstitutes a covenant running with the land required by federal ~sw and binds ail grantor's successors, heirs, assigns, and transferees, such Property being sub~eot to this instrurr~ent, grantor and owner Cate: -- ~..~ STATE OF TEXAS § COUNTY OF NUECES § Grantor and owner date: Acknowledged before me this day of ~ oX~, by and if two real ro rt owners , as purchasers} of the real property referenced in this ~ p p Y ~ instrument. Notary Public, Mate of Texas AFTER R~CORDIN RETURN To: ATTN: Community Development Administrator City of Corpus Christi P. ~. fox ~~T~ Corpus Christi, T~ 7~4G9~~~77