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Agenda 02/26/2013 Item #16D122/26/2013 16.D.12. EXECUTIVE SUMMARY Recommendation to approve a Resolution consenting to the transfer of an Affordable Housing Multifamily Development known as Saddlebrook Village Apartments located on Davis Boulevard and approving an Assignment and Assumption of the Affordable Housing Density Bonus Agreement. OBJECTIVE: To consider a Resolution authorizing and approving the assignment of the Affordable Housing Density Bonus Agreement between the County and the original developer and a purchaser of the Saddlebrook Village Apartment project. CONSIDERATIONS: Background: In 1990, the Board of County Commissioners (BCC), pursuant to the Comprehensive Plan and its authorizing statutes, enacted Ordinance 90 -89, entitled the Collier County Affordable Housing Density Bonus Ordinance (the "Ordinance "). The purpose and intent of the Ordinance is to assist in providing low, moderate and very low income housing through the use of density bonuses which allow an increase in the number of residential dwelling units per acre allowed on property proposed for development, thereby decreasing the per unit cost of land and development. The Ordinance establishes an Affordable Housing Density Bonus Program that provides the process by which a developer may apply for a density bonus and implements this program by requiring that an affordable housing density bonus shall only be available to a developer through an affordable housing density bonus agreement between the developer and the BCC. In 1997, the BCC and CEI/Kensington, along with another entity, entered into an Affordable Housing Density Bonus Agreement dated as of December 9, 1997 and recorded in the Official Records of Collier County, Florida at Official Records Book 2374, Page 2544. The Density Bonus Agreement applies to a 33.79 acre site legally described in the Density Bonus Agreement upon which was planned to be constructed a multifamily housing project in two Phases, Phase I being a 140 -unit development known as Saddlebrook Village (hereinafter the "Project "), with Phase II being the remainder of the property. CEI/Kensington owned only the Phase I portion of the property. The Phase II portion was owned by another entity, which eventually developed that part of the property into an affordable multifamily project now known as Tuscan Isles. CEI/Kensington, as the original developer, constructed Saddlebrook Village, with construction being substantially complete in 1999. The Project was financed by the issue of bonds by the Housing Finance Authority of Collier County, which has a performance monitoring requirement under a Land Use Restriction Agreement, which is similar to a Density Bonus Agreement in that it contains low income rental requirements. The Density Bonus Agreement requires that 80 % of the units be rented to persons or families with income of 60% or less of Area Median Income (AMI) and 20% be rented to persons or families with income of 50% or less of AMI. Because the Project at the same time received an allocation of low income housing tax credits from the Florida Housing Finance Corporation ( "Florida Housing "), its compliance with these rental limitations has been continually monitored by Florida Housing's monitoring agent, First Housing Development Corporation. A check of Florida Housing and First Housing's records shows the Project is in compliance with these standards. Packet Page -1899- 2/26/2013 16.D.12. The original developer, as Seller, has contracted to sell the Project to Saddlebrook Apartments, LLC, as Purchaser, a company wholly owned and controlled by Benjamin Mallah, a very experienced and financially capable owner /operator of affordable housing projects in Florida. One of the terms of the Density Bonus Agreement is that during the term of the agreement the developer may not assign, delegate, or otherwise transfer all or part of its duties, obligations, or promises under the agreement to any successor in interest to the property without the consent of the BCC. The purchaser is therefore requesting the BCC to consent to the assignment of the Seller's rights and obligations under the Density Bonus Agreement and the assumption of such rights and obligations by the Purchaser. The Purchaser is not requesting any changes to the Density Bonus Agreement, and is assuming and intending to operate under the Density Bonus Agreement as it was originally written. Factors to consider in authorizing assignment of Density Bonus Agreement: Neither the Density Bonus Agreement nor the Ordinance contains any standards with respect to the criteria to be used in determining whether to approve an assignment of a Density Bonus Agreement. However, the Housing Finance Authority, which issued the bonds as stated above, has a Land Use Restriction Agreement (LURA) that, like the Density Bonus Agreement, prohibits assignment without the Authority's consent. The LURA provides that the Authority shall consider the financial and managerial capability of the proposed purchaser to operate the project in accordance with the provisions of the LURA. In addition, Florida Housing, which has a low income tax credit agreement with the Seller, also requires approval of an assignment. On February 13, 2013 the Housing Finance Authority held a meeting to consider the request of the Purchaser to permit the assignment of the LURA. After considering voluminous financial and operational experience data submitted by the Purchaser, the Authority voted unanimously to approve the assignment, and directed its general counsel to work with the County to obtain BCC approval as expeditiously as possible, in view of the condition of the Project and the need for immediate rehabilitation, as discussed below. Florida Housing has also considered the Purchaser's ability, has consented to the assignment, and is also requiring immediate cure of defects. A copy of the resolution of the Authority approving the assignment is attached. Condition of the Proiect and Need for Action: Although the Project is in compliance with the low /very low income rental requirements of the Density Bonus Agreement, its physical condition does not meet County standards, as evidenced by the Notices of Violation issued by County Code Enforcement, nor does it meet the standards of the Authority's LURA or the standards of the Florida Housing low income tax credit agreement, as evidenced by the "Unsatisfactory" report issued by First Housing Development Corporation to Florida Housing. Copies of these documents are the "Non- Compliance Issues" referred to in the Assignment and Assumption of Density Bonus Agreement requested to be approved, and are attached as Exhibit C to that document. In considering whether to permit assignment of the LURA, the Authority considered not only the Purchaser's financial and operational capability, but took extensive testimony from Mr. Mallah and his professionals regarding the conditions at the Project and their readiness and ability to take immediate curative action. The Purchaser is aware of the conditions, and has committed substantial funds for both the repair of the structural deficiencies, and a complete cosmetic overhaul of the Project. The Authority included a provision in its agreement to permit the assignment of the LURA that the Non - Compliance Issues be cured by April 25, 2013. First Housing will report to Florida Housing on the cure, and this will in turn be communicated to the Authority. We are suggesting similar language be put in an agreement permitting the assignment of the Density Bonus Agreement. Given the need for an expeditious transfer of this project so that curative action may begin immediately, staff is recommending that this matter be considered at the February 26, 2013 Board meeting. If continuing review indicates further compliance issues need to be addressed, beyond the curative commitments currently being made, staff will Packet Page -1900- 2/26/2013 16.D.12. recommend this item be continued to a future agenda. Otherwise, this matter should be decided as soon as possible. If the BCC determines to permit the assignment of the Density Bonus Agreement, it needs to adopt the attached resolution, which authorizes the Chairwoman to execute the Assignment and Assumption Agreement. The attached resolution also authorizes the Chairwoman to execute a Termination of Land Use Restriction Agreement in substantially the same form as Exhibit D to the resolution in accordance with the terms of the Density Bonus Agreement at such time as the new owner provides data to show the Density Bonus Agreement has terminated in accordance with its terms. This is estimated to be in about 12 months. FISCAL IMPACT: There is no cost to the County for this action. By its terms, the Purchaser is responsible for all costs associated with this transaction. The Resolution and Assignment and Assumption Agreement will be recorded at the Purchaser's expense. If any additional expenses are incurred by the County in processing this transaction, they should be invoiced and forwarded to the Purchaser, for payment at closing, which should take place two or three days after BCC approval, as this is the last approval needed for closing. LEGAL CONSIDERATIONS: In the absence of monitoring reports, documents from the Florida Housing Finance Corporation, Program Report -Recap of Tenant Income Certification Information, may be considered to determine project compliance. This item is legally sufficient for Board action, and requires a majority vote for Board action. -JBW GROWTH MANAGEMENT IMPACT: Rehabilitation of this Project is necessary for the continued operation of a project that helps satisfy the Growth Management objective of providing affordable housing. If the Project continues to deteriorate the County may have to step in and seek an order prohibiting occupancy because of unsafe conditions. The Purchaser is capable, ready, and contractually committed to immediately commence curing the defects. RECOMMENDATION: That the Board approve and authorize the Chairwoman to sign the resolution and Assignment and Assumption of Affordable Housing Density Bonus Agreement attached hereto. Prepared By: Donald A. Pickworth, General Counsel, Housing Finance Authority of Collier County; Reviewed and Accepted by Elly Soto McKuen, Operations Analyst and Kimberley Grant, Interim Director; Housing, Human and Veteran Services Attachments: 1. Proposed Resolution authorizing execution of Assignment and Assumption of Affordable Housing Density Bonus Agreement 2. Proposed Assignment and Assumption of Affordable Housing Density Bonus Agreement (with attachments including Non - Compliance Issues) 3. Housing Finance Authority of Collier County Resolution 2013 -01 determining Purchaser has financial and managerial capability and authorizing the execution and delivery of an Assignment and Assumption of Land Use Restriction Agreement Packet Page -1901- 2/26/2013 16.D.12. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.D.16.D.12. Item Summary: Recommendation to approve a Resolution consenting to the transfer of an Affordable Housing Multifamily Development known as Saddlebrook Village Apartments located on Davis Boulevard and approving an Assignment and Assumption of the Affordable Housing Density Bonus Agreement. Meeting Date: 2/26/2013 Prepared By Name: McKuenElly Title: Grant Support Specialist, Housing, Human & Veteran 2/20/2013 1:14:45 PM Approved By Name: GrantKimberley Title: Interim Director, HHVS Date: 2/20/2013 2:50:21 PM Name: AlonsoHailey Title: Operations Analyst, Public Service Division Date: 2/20/2013 3:05:22 PM Name: WhiteJennifer Title: Assistant County Attorney,County Attorney Date: 2/20/2013 3:10:53 PM Name: CarnellSteve Title: Director - Purchasing /General Services,Purchasing Date: 2/20/2013 3:53:33 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Manage Date: 2/20/2013 4:24:54 PM Name: KlatzkowJeff Title: County Attorney Packet Page -1902- Date: 2/20/2013 4:30:26 PM Name: OchsLeo Title: County Manager Date: 2/20/2013 5:03:38 PM Packet Page -1903- 2/26/2013 16.D.12. 2/26/2013 16.D.12. RESOLUTION NO. 2013- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY CONSENTING TO THE TRANSFER OF AN AFFORDABLE HOUSING MULTIFAMILY DEVELOPMENT KNOWN AS SADDLEBROOK VILLAGE APARTMENTS; CONSENTING TO THE ASSIGNMENT OF DUTIES AND OBLIGATIONS AND THE ASSUMPTION OF THE DUTIES AND OBLIGATIONS UNDER A CERTAIN AFFORDABLE HOUSING DENSITY BONUS AGREEMENT DATED DECEMBER 9,1997; AUTHORIZING THE FORM OF, EXECUTION BY THE CHAIRWOMAN AND DELIVERY OF AN ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT RELATING TO SADDLEBROOK VILLAGE APARTMENTS AND PROVIDING FOR CERTAIN DETAILS THEREOF; AUTHORIZING THE CHAIRWOMAN OF THE BOARD TO EXECUTE THE TERMINATION OF LAND USE AGREEMENT IN ACCORDANCE WITH THE TERMS OF THE DENSITY BONUS AGREEMENT; AUTHORIZING THE PROPER OFFICERS TO DO ALL THINGS NECESSARY OR ADVISABLE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of Collier County (the "Commission "), pursuant to its authority under the Florida Local Government Comprehensive Planning Act and the comprehensive plan adopted pursuant thereto has enacted Ordinance 90 -89, entitled the Collier oft County Affordable Housing Density Bonus Ordinance (the "Ordinance "); and WHEREAS, purpose and intent of the Ordinance is to assist in providing low, moderate and very low income housing through the use of density bonuses which allow an increase in the number of residential dwelling units per acre allowed on property proposed for development, thereby decreasing the per unit cost of land and development; and WHEREAS, the Ordinance establishes an Affordable Housing Density Bonus Program that provides the process by which a developer may apply for a density bonus and implements this program by requiring that an affordable housing density bonus shall only be available to a developer through an affordable housing density bonus agreement between the developer and the Commission; and WHEREAS, the Commission and CEI/Kensington, a Florida limited partnership, by and through its general partner, Colonial Equities Inc., and Outreach Housing Corporation, entered into that certain agreement entitled "Agreement Authorizing Affordable Housing Density Bonus and Imposing Covenants and Restrictions on Real Property" dated as of December 9, 1997 and recorded in the Official Records of Collier County, Florida at Official Records Book 2374, Page 2544 (the "Density Bonus Agreement "); and WHEREAS, the Density Bonus Agreement applies to a 33.79 acre site legally described in Packet Page -1904- 2/26/2013 16.D.12. the Density Bonus Agreement upon which was planned to be constructed a multifamily housing project in two Phases, Phase I being a 140 -unit development known as Saddlebroolc Village (hereinafter the "Project "), with Phase H being the remainder of the property, and not owned or controlled by the Seller; and WHEREAS, CEI/Kensington owned and was responsible for developing pursuant to the Density Bonus Agreement only the Project, and not Phase II, and has in fact developed and operated the Project; and WHEREAS, the Density Bonus Agreement provides, inter alia, that during the term of the agreement the developer may not assign, delegate, or otherwise transfer all or part of its duties, obligations, or promises under the Density Bonus Agreement to any successor in interest to the property without the express written consent of the Commission; and WHEREAS, CEI/Kensington, as Seller, and Saddlebrook Apartments LLC, as Purchaser have entered into a contract under which Purchaser is to acquire the ownership of the Project from the Seller; and WHEREAS, pursuant to the requirements of the Density Bonus Agreement, the Purchaser has requested the Commission to consent to the transfer of the Project from Seller to Purchaser and to the assignment of the Seller's rights and obligations under the Density Bonus Agreement and the assumption of such rights and obligations by the Purchaser; and WHEREAS, the Commission has considered the determinations of the Housing Finance Authority of Collier County, a body corporate and politic created by the Commission by Ordinance 80 -66 enacted July 29, 1980, to the effect that the Purchaser, as defined herein, has the requisite financial and managerial capability to carry out its obligations as the proposed transferee; and WHEREAS, the Commission intends, by the adoption of this resolution, to signify its consent to the transfer of the Project to the Purchaser, and its consent to the assignment and assumption of the duties and obligations of the Density Bonus Agreement to the Purchaser pursuant to the Assignment and Assumption of Density Bonus Agreement referred to herein. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA THAT; Section 1. Consent to Transfer of Project. The Commission hereby consents to the transfer of the Project to Saddlebroolc Apartments LLC effective upon the Closing Date, and subject to the Agreement (as defined herein) and this Resolution. As used in this Resolution, the term "Closing Date" shall mean the date the Project is conveyed by Borrower to Purchaser by deed or other appropriate instrument. Closing Date is currently expected to be February 29, 2013. 2 Packet Page -1905- 2/26/2013 16.D.12. Section 2. Authorization and Approval of Assignment and Assumption of Density Bonus Agreement. The form and content of the Assignment and Assumption Of Affordable Housing Density Bonus Agreement (the "Agreement ") presented at this meeting and attached hereto as Exhibit "A" is hereby authorized and approved by the Commission. The Chairwoman of the Commission is hereby authorized to execute the Agreement and attest thereto, in substantially the form set forth in Exhibit A hereto, together with such changes, modifications and deletions as they, with the advice of Commission's Counsel, may deem necessary and appropriate. Such execution and delivery shall be conclusive evidence of the approval and authorization thereof by the Commission. Section 3. Delivery. of Agreement. Commission's Counsel shall deliver the Agreement upon the satisfaction of the condition that payment has been made of all fees and expenses of the Commission and its professionals, or that any fees or expenses due the County under the Density Bonus Agreement have been paid. Section 4. Further Actions and Ratifications of Prior Actions. The officers, agents and employees of the Commission are hereby authorized and directed to do all acts and things required of them by the provisions of the Agreement and this Resolution. All actions heretofore undertaken by the officers, agents and employees of the Commission with respect to the provisions of the Agreement are hereby ratified and approved. Without limiting the generality of the foregoing, the Chairwoman is authorized to execute a Termination of Land Use Restriction Agreement ( "Termination Document ") in substantially the form attached as Exhibit D to the Agreement upon receipt from Purchaser of an executed Termination Document at such time as the Density Bonus Agreement has terminated in accordance with the terms thereof. Section 5. Effective Date. This Resolution shall take effect immediately upon its passage. This Resolution adopted this 26th day of February, 2013 after motion, second, and majority vote in favor of passage. ATTEST: DWIGHT E. BROCK, CLERK By: Deputy Clerk Approval as to form and legal Sufficiency: BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA M Georgia A. Hiller, Esq. Chairwoman By: Jennifer t. White, Asst. County Attorney Packet Page -1906- 2/26/2013 16.D.12. EXHIBIT "A" TO COUNTY RESOLUTION FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT Packet Page -1907- THIS INSTRUMENT PREPARED BY AND RETURN TO: Donald A. Pickworth, Esq. 5100 Tamiatni Trl N Suite 103 Naples, Florida 34103 2/26/2013 16.D.12. SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT (Saddlebrook Village Apartments) THIS ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT (this "Agreement ") is dated as of 2013 (the "Effective Date" as defined herein), by and between Saddlebrook Apartments LLC, a Florida limited liability company (the "Purchaser "), CEI/Kensington, a Florida limited partnership (the "Seller "),and the Collier County Board of County Commissioners, as the governing body of Collier County, Florida, a political subdivision of the State of Florida (the "Commission "). WITNESSETH: WHEREAS, the Commission, pursuant to its authority under Section 163.3161 Fla. Stat., et, se_c .. (the Florida Local Government Comprehensive Planning and Land Development Regulation Act) has enacted Ordinance 90 -089, entitled the Collier County Affordable Rousing Density Bonus Ordinance (the "Ordinance "); and WHEREAS, purpose and intent of the Ordinance is to assist in providing low, moderate and very low income housing through the use of density bonuses which allow an increase in the number of residential dwelling units per acre allowed on property proposed for development, thereby decreasing the per unit cost of land and development; and WHEREAS, the Ordinance establishes an Affordable Housing Density Bonus Program that provides the process by which a developer may apply for a density bonus and implements this program by requiring that an affordable housing density bonus shall only be available to a developer through an affordable housing density bonus agreement between the developer and the Commission; and Packet Page -1908- 2/26/2013 16.D.12. WHEREAS, the Commission and CEI/Kensington, a Florida limited partnership, by and through its general partner, Colonial Equities Inc., and Outreach Housing Corporation, entered into that certain agreement entitled "Agreement Authorizing Affordable Housing Density Bonus and Imposing Covenants and Restrictions on Real Property" dated as of December 9, 1997 and recorded in the Official Records of Collier County, Florida at Official Records Book 2374, Page 2544 (the Affordable Housing Density Bonus Agreement, and hereafter, the "DBA "); and WHEREAS, the DBA applies to a 33.79 acre site legally described in the DBA upon which was planned to be constructed a multifamily housing project in two Phases, Phase I being a 140 -unit development known as Saddlebrook Village (hereinafter the "Project"), with Phase II being the remainder of the property, and not owned or controlled by the Seller; and WHEREAS, CEI/Kensington owned and was responsible for developing pursuant to the DBA only the Project, and not Phase II, and has in fact developed and operated the Project; and WHEREAS, the DBA provides, inter alia, that during the term of the agreement the developer may not assign, delegate, or otherwise transfer all or part of its duties, obligations, or promises under [the DBA] to any successor in interest to the property without the express written consent of the Commission; and WHEREAS, the Purchaser and the Seller have entered into that certain Real Estate Purchase and Sale Agreement with Escrow Instructions dated as of February _, 2013 (the "Purchase and Sale Agreement "), pursuant to which the Purchaser is to acquire the ownership of the Project from the Seller; and WHEREAS, pursuant to the requirements of the DBA, the Purchaser has requested the Commission to consent to the assignment of the Seller's rights and obligations under the DBA and the assumption of such rights and obligations by the Purchaser; and WHEREAS, the Commission has adopted a resolution consenting to the assignment and assumption so requested and authorizing the execution and delivery of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants, promises and agreements set forth herein, the receipt and sufficiency of which the parties hereby acknowledge, the Purchaser and the Commission agree as follows: Section 1. Definitions. All capitalized terms used in this Agreement and not otherwise defined herein shall have the same meanings as set forth in the DBA, unless the context clearly requires otherwise. Section 2. Applicability only to the Seller and Project. This Agreement applies only to the Seller as defined herein, and only to that portion of the Property as defined in the BDA upon which the Project has been constructed. That portion of the Property to which this Agreement is applicable is described in Exhibit A attached hereto. 2 Packet Page -1909- 2/26/2013 16.D.12. Section 3. Assignment of Affordable Housing Density Bonus Agreement. The Seller assigns to the Purchaser all of the Seller's right, title and interest in and to the DBA including, without limitation, all of the benefits, duties and obligations of the Seller under the DBA (arising or accruing after the Effective Date), which assignment shall be effective as of the Effective Date. From and after the Effective Date, Seller shall have no liabilities or other obligations under the DBA. Section 4. Assumption of Obligations under Affordable Housing Density Bonus Agreement. From and after the Effective Date, the Purchaser hereby covenants and agrees as follows: (a) to pay and perform all obligations and liabilities, accruing from and after the Effective Date, as and when due under, and in accordance with the terms of, the DBA, whether now or hereafter existing, fixed or contingent; and (b) to be bound by and comply with all covenants, agreements, conditions, restrictions and limitations now or hereafter made by or applicable to the owner of the Project, pursuant to the DBA, and including the representations and warranties set forth in the DBA, accruing from and after the Effective Date, including, without limitation, the restrictions concerning the operation of the Project and the leasing of apartment units therein. The Purchaser hereby assumes from and after the Effective Date, all liabilities and other obligations of the Seller under, and agrees to comply with and be bound by all the covenants, agreements, conditions, representations, warranties, restrictions and limitations contained in, the DBA. Section 5. No Release of Seller. The Seller is not released from, and will remain fully liable for the payment of all sums, if any, and the performance of all obligations, arising prior to the Effective Date, under and in accordance with the terms of the DBA. Nothing contained in this Agreement or otherwise will prevent the Commission from pursuing concurrently or successively all rights and remedies available to it pursuant to the DBA or at law or in equity and against any persons, firms or entities whatsoever, and the exercise of any of its rights or the completion of any of its remedies will not constitute a discharge of any obligation of the Seller, with respect to obligations arising prior to the Effective Date, or Purchaser, with respect to obligations arising on and after the Effective Date, under the DBA or this Agreement. Provided however, the Seller shall be released from its obligation to cure the Non - Compliance Issues as defined herein. Section 6 Representations and Warranties of Seller. The Seller hereby represents and warrants to the Commission as follows: (a) The Seller (i) is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Florida, and (ii) has all requisite power and authority to enter into this Agreement and perform its obligations hereunder. (b) To the best of Seller's knowledge, there have been no amendments, supplements or modifications to the DBA or to any other instruments or agreements to wl-ich the Seller is a party or by which it is bound and which relate to the DBA. (c) The DBA is in full force and effect, and no material breaches, defaults or defenses have been asserted in writing to Seller, or to the best of Seller's knowledge are in existence under the DBA by any of the parties thereto (including the Seller) and, to the best of Seller's knowledge, no facts or circumstances exist which, with the giving of notice or the 3 Packet Page -1910- 2/26/2013 16.D.12. passage of time, or both, would constitute a material breach or violation of, or default under, the DBA by the Seller or any other party thereto. Notwithstanding the representations and warranties made by the Seller pursuant to this Section 6(c), Seller has received notice of the deficiencies and non - compliance issues set forth in (1) that certain January 25, 2013 letter from Bridget Tracy of First Housing and accompanying 2012 Annual Management Review, and (2) that certain Collier County Code enforcement Notice of Violation date stamped January 2, 2013, copies of which is attached as Exhibit "C" hereto (collectively, the "Non - Compliance Issues "). (d) To Seller's knowledge, and other than with regard to the Non - Compliance Issues, (i) Seller has complied with and fulfilled. all of the requirements of and has satisfied all conditions under the DBA, or has provided certifications and other documentation that demonstrates the same, in connection with the transactions described in this Agreement and all of the conditions precedent thereto as described in the DBA, and (ii) Seller has not received any invoice or statement that there are any fees and other amounts payable to the Commission under the DBA which are currently due and payable or which have accrued but are unpaid. (e) The execution and delivery by the Seller of this Agreement, and the compliance by the Seller with all of the provisions hereof and of the DBA (i) are within the power of the Seller, (ii) will not conflict with or result in any breach of any of the provisions of, or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any property of the Seller under the provisions of, Seller's partnership agreement or any other agreement or instrument to which the Seller is a party or by which it may be bound, or any license, judgment, decree, law, statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Seller or any of its activities or properties, and (iii) have been duly authorized in accordance with the organizational documents of Seller. Section 7. Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants, as of the date hereof, to the Seller and the Commission as follows: (a) The DBA has been reviewed by the Purchaser and its counsel. The Purchaser is knowledgeable about the Project and has made an independent investigation of all facts and circumstances deemed relevant to it in connection with the acquisition of the Project and has reviewed and is familiar with all of the terms, provisions and conditions of the DBA and all of the obligations thereunder which have been assumed in their entirety by the Purchaser under this Agreement. (b) The Purchaser has obtained all consents, authorizations and approvals from all governmental agencies and other authorities necessary for its acquisition of the Project. The Commission approved the transfer of the Project to the Purchaser, subject to this Agreement, at the Commission's meeting of February 26, 2013. (c) The Purchaser represents to the Commission that: 4 Packet Page -1911- 2/26/2013 16.D.12. (i) it has all requisite power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted, including, without limitation, its acting as owner of the Project; (ii) it has full power, authority and legal right to enter into, execute and deliver this Agreement and to assume and perform the obligations under the DBA, and to engage in the transactions contemplated thereby; (iii) it has the creditworthiness and the management ability to operate the Project in the manner contemplated by the DBA; (iv) the correct legal name of the Purchaser is Saddlebrook Apartments LLC, a Florida limited liability company, and it has been properly organized under the laws of the State of Florida and is in good standing in such state as of the date hereof, and is legally authorized to do business in Florida. Section 8. Representations and Warranties of the Commission. The Commission hereby represents and warrants, as of the date hereof, as follows: (a) A copy of the DBA is attached hereto as Exhibit B. The DBA has not to the best knowledge of the Commission, without inquiry, been altered, supplemented, assigned, modified or amended in any respect. (b) The Commission has received all amounts payable to it under the DBA and, to the knowledge of the Commission without inquiry, the Seller is neither in default under or in breach or violation of any other covenant or condition under the DBA except with respect to the Non- Compliance Issues, to the extent applicable under the DBA. The Commission has neither given nor received, to its knowledge without inquiry, notice of any default under the DBA. Section 9. Additional Covenants. Purchaser additionally covenants with the Commission as follows: (a) The Purchaser hereby agrees to pay all fees, costs and expenses incurred by the Commission (including, but not limited to, reasonable attorneys' fees) in connection with the preparation and/or review and delivery of this Agreement and any other documents executed simultaneously herewith. (b) Purchaser additionally covenants with the Commission as follows: (i) it acknowledges that it has acquired the Project subject to the restrictions and limitations of the BDA. The Purchaser further agrees and acknowledges that any subsequent transfer of the Project, or interests in the Project, prior to the expiration of the Term of Agreement per Section 14 of the BDA, must be approved by the Commission pursuant to Section 6 of the BDA. 5 Packet Page -1912- 2/26/2013 16.D.12. (ii) Purchaser acknowledges that it will, as part of the acquisition of the Project, (a) enter into an Assignment and Assumption of and Second Amendment to Extended Low- Income Housing Agreement among Seller, Purchaser, and Florida Housing Finance Corporation (the "Florida Housing Agreement ")) which provides, among other things, for the monitoring of Purchaser's compliance under the terms of the Florida Housing Agreement and (b) an Assignment and Assumption of Land use Restriction Agreement among Seller, Purchaser, and the Housing Finance Authority of Collier County. Purchaser shall, promptly upon receipt, provide Commission with a copy of any and all reports, reviews, or any other written communications it receives fiom Florida Housing or First Housing as Compliance Agent under the Florida Housing Agreement. In addition, Purchaser shall provide Commission with copies of any notices of violation, or any other documents in connection with any Collier County code enforcement proceedings. (iii) it agrees to notify the Commission sixty (60) days prior to any change in the legal name, address, organization or structure of the registered entity constituting the Purchaser. (iv) Notwithstanding anything in this Agreement to the contrary, Purchaser acknowledges (i) the existence of the Non - Compliance Issues as defined in Section 6(c) hereof and (ii) Purchaser's receipt of notice of such Non- Compliance Issues and agrees that it assumes all obligations, duties, responsibilities, and liabilities for such Non - Compliance Issues and for the curing of such Non - Compliance Issues to the satisfaction of Florida Housing and First Housing Development Corporation on or before April 25, 2013. Purchaser shall provide Commission with written evidence to demonstrate that it has cured the Non - Compliance Issues. Section 10. Assumption of Fees, Costs, Etc. The Purchaser acknowledges that for the time period from and after the Effective Date, the Purchaser will be responsible for the payment of all fees, costs and payments, it any, due in accordance with the BDA and assumed thereunder and first arising during such time period Section 11. Authorization by the Commission. Based upon the representations, warranties and agreements set forth herein, and in material reliance thereon by the Commission, the Commission has authorized the execution of this Agreement and hereby consents to the transfer of the Project to the Purchaser. By executing this Agreement, the Commission acknowledges that all conditions necessary for the approval of the transfer have been satisfied. Section 12. Authority. The signatories to this Agreement represent that they have the requisite capacity and Authority to execute this Agreement and to assume the obligations referenced herein. to: Section 13. Notices. Any notices regarding this Agreement or the BDA will be provided 6 Packet Page -1913- 2/26/2013 16.D.12. Seller: CEI/ICensing-ton Limited c/o Cascade Saddlebrook LLC 5055 Keller Springs Road, #400 Addison, Texas 75001 Attention: Ted Broadfoot And with a copy to: Riemer & Braunstein LLP 3 Center Plaza Boston, Massachusetts 02108 Attention: Douglas K. Clarke and Lehman Tax Credit Advisor Inc. c/o Lehman Brothers Holdings Inc. 1271 Avenue of the Americas 39th Floor New York, New York 10020 Attention: Joelle Halperin To Purchaser: Saddlebrook Apartments LLC 625 Court Street Clearwater, Florida 33756 Attn: Thomas C. Nash, II, Esquire With a copy to: Macfarlane Ferguson & McMullen 625 Court Street Clearwater, Florida 33756 Attention: Thomas C. Nash II, Esquire To Escrow Agent: First American Title Insurance Company c/o Christopher Lachance 7360 Bryan Dairy Road Suite 200 Largo, Florida 33777 Fax: (727) 549 -3422 To Commission: Board of County Commissioners of Collier County, Florida 3299 Tamiami Trail East Naples, Florida 34112 Attention: Chairman With copy to Collier County Attorney's Office 3299 Tamiami Trail East, Suite 800 Naples, Florida 34112 7 Packet Page -1914- 2/26/2013 16.D.12. Attn: Jennifer White, Esquire Section 14. Miscellaneous. This Agreement will be construed in accordance with Florida law and will be recorded at Purchaser's expense in Collier County, Florida. Section 15. Effective Date. This Agreement shall become effective upon the recording of a Special Warranty Deed conveying the Project to the Purchaser (the "Effective Date "). Section 16 Termination, Upon termination of the BDA, the Purchaser and the Commission will execute and record a Termination of Affordable Housing Density Bonus Agreement in substantially the form attached hereto as Exhibit D. Section 17 Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns. Section 18. Counterparts. This Agreement may be executed in counterparts, and all counterparts together shall be construed as one document. Section 19. Governing Law. This Agreement shall be governed by the laws of the State of Florida, without regard to principles of conflicts of law. Section 20. Incorporation of Recitals. The recitals set forth herein are true and correct and are incorporated herein. Section 21. Severability. If any covenant, condition, term, or provision contained in this Agreement is held to be invalid by final judgment of any court of competent jurisdiction, the invalidity of such covenant, condition, term, or provision shall not in any way affect any other covenant, condition, term, or provision contained in this Agreement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 8 Packet Page -1915- 2/26/2013 16.D.12. COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT (Saddlehrook Apartments Project) IN WITNESS WHEREOF, the Commission, the Seller and the Purchaser have executed this Assignment and Assumption of Affordable Housing Density Bonus Agreement as of the Effective Date. ATTEST: BOARD OF COUNTY COMMISSIONERS OF DWIGHT E. BROCK, CLERIC COLLIER COUNTY, FLORIDA By: Deputy Clerk Approval for Form and Legal Sufficiency: BY: Jennifer B. White Assistant County Attorney V) Z GEORGIA A. HILLER, ESQ. CHAIRWOMAN S -1 Packet Page -1916- 2/26/2013 16.D.12. COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT (Saddlebrook Apartments Project) Seller CEUKensington, a Florida limited partnership By: Cascade Saddlebrook LLC., a Washington limited liability company, its general partner By: Name: Title: Witnesses: Printed Name: Printed Name: STATE OF _ COUNTY OF The foregoing instrument was executed and acknowledged before me this — day of , 2013, by , as of , the , who executed the foregoing instrument and acknowledged to me that he did such on behalf of the IN WITNESS WI-IEREOF, I have hereunto set my hand and affixed my seal the day and year in this instrument first above written. Personally Known OR Produced Identification _ Type of Identification Produced: NOTARY PUBLIC — State of Print, Type or Stamp Commissioned Name of Notary Public My Commission Expires: S -2 Packet Page -1917- 2/26/2013 16.D.12, COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT ( Saddlebrook Apartments Project) Saddlebrook Apartments LLC, a Florida limited liability company By: Name: Title: Witnesses: Printed Name: Printed Name: STATE OF _ COUNTY OF The foregoing instrument was executed and acknowledged before me this _ day of 2013, by , as of , the who executed the foregoing instrument and acknowledged to me that he did such on behalf of the IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year in this instrument first above written. NOTARY PUBLIC — State of Personally Known OR Print, Type or Stamp Commissioned Produced Identification — Name of Notary Public Type of Identification Produced: My Commission Expires: S -3 Packet Page -1918- 2/26/2013 16.D.12. EXHIBIT A LEGAL DESCRIPTION OF PROJECT Packet Page -1919- 2/26/2013 16.D.12. . a• F e A t(7tJ.6Hxa R �, fN{ tt ; yt pp ` !� °SE4�EYry; pi e•�f� � — rjig i:=jr9 r ;'af t t a; < jilt `'pR� elf d0���z�g�dF iF i �E ! �Ii tl`A 2� (llii� 1F Eiji E�i• P. 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F o —O ii j, 1 9 A n MDDI2BW�K C9CIS � A r fC�.� i a e I � 411 �r �� Y��i ..b-�r4 wY • I 7 I G.1 1" a -� i� P y eg i o ;- TIM s $q •$ 6 i sez ° . --ate .� f. � •g :5 x Rn a, uxc •e.iiim o � Yr Nr , '�. � xoxrx overt Dr xar Dr cnva eouu�rAeD 07P7 )5 i P ` I 10 —T or W �UMr a MDfO uxc ➢uWG DAVIS MOr w�1`Td Y�,INRSDur r1pTx i'i y .OTL' 41'9 WW2Y.W 9 UMDRa plxclWCrWN- Tr.:rrnl. n9 eOULLYARb i1 TyPp01." . NDY SIID.1 A} YNIC TWK YAY /WD rILL CN.MDC e RA610 UNK IS [pCAI¢D x ®bA 4Y11 WlT 01 xA: .1 60C Bock & Cl:' Neflonel Surveyors Network 'a Ncllonal Coordlrufore of AITAlAC5b1 Lend 7nle sumve .aH AMa cw.+r+D - y..a.. a.m. w ••)Dr P feoa) Packet Page -1921- 2/26/2013 16.D.12. EXHIBIT B RECORDED COPY OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT cim Packet Page -1922- 2/26/2013 16.D.12. 2262326 OR; 2374 PG. 2344 X113 Im" t'IT1,1 HCDIDID i6 the 0111CIA "C01111 Of =111 WIM, 11 RISC 110 i'1C1 of 11/14117 it 01;172N DI11i14 1. iltM, Cif![ AGRBPMFNT AUTHORI2IN . AFFORDABLE HOUSING DENSITY BONUS AND IMPOSiN : CQYENANTS AND RESTRICTIONS ON REAL PROPERTY THIS AGREEMENT is made as of the ( � day of 1997, by and between CEI/Kensington, Ltd., a Florida Limited Partnership, and Colonial Equities, Inc. and Outreach Housing Corporation and the Collier County Board of County Commissioners (the "Commission "). RECITALS: A. The Developer is the Owner or contact purchaser of a tract of real property described as (complete legal description) the West %, of the Southeast �/4 of Section 34, Township 49 South, Range 26 East, Collier County, Florida lying South of 1 -75, less and except the following: the South 50 feet for Radio Road right -of -K ay .md the East 726.00 feet of the West Yj of the Southeast '1. of said Section 34 (The "Property ":. The legal and equitable owners include James R. , 'Trustee. It is the Developer's intent to coustruct a maximum of four hundred thirty - eight (438) residential units (the "Units.n_at- a-density nfthirteen (13) units per gross acre on the C(LR C �~ Property. The gross acreage of f$yYtty't:a3 The number of affordable Units constructed by Developers 11 two hundred two (202), rcp smiting forty -six percent (46 %) of the total number of resi enti 1 Units t v opment. Z B. In order to co s t e ni s, It r ts o in a density bonus from the Commission for the Prop . vide trr 17 Co a Affordable Housing Density Bonus Ordinance No, 90.8v ich density bonus�t� it �bry ranted by the Commission in ' V }- accordance with the stri ct 3im t o r said Ordinance t? w z C. The Commission is vJr{ii t� t t ►�li sit), bonus to the Developer authorizing the construction of two hundred and two (202) bonus Units on the Pmpery, if the Developer agrees to construct affordable Units as specified in thk Agreement and the Developer covenants and agrees to use the affordable units only as rental property, NOW, THEREFORE, in consideration of the alrproval and granting of the density bonus of six (6) units per acre requested by the Developer unit the benefits conferred thereby on the Property, and for other good and valuable consideration, the receipt and sufficiency of which art hereby acknowledged, the Developer and the Commission hereby covenant and agree as follows: 1. Recitals. The above recitals are true at,d correct and are incorporated herein by reference. 2. Developer Agreements. The Developer hereby agrees that it shall construct two hundred and two (202) affordable Units which Units soul) be rented in accordance with the tcmis and conditions of this Agmement and as specified by the attached Appendix A, Exhibit A and Exhibit B, which Appendix is incorporated by reference herein and constitutes a part of this Agreement. Units at the Property which are not an affordable Unit ( "Market -Rate Units "y shall I Packet Page -1923- ,f 2/26/2013 16.D.12. be exempt from the provisions of this Agreement and may he leased or rented by the Developer on terms and conditions acceptable to the Developer in its vole discretion. Within forty -five (451 days from the date that notice is received from the Commission, the Developer shall provide on -site management to assure appropriate security, maintenance and appearance of the development and the dwelling Units. a. The following provisions shall be applicable to the affordable Units: (1) Definitions. Any and all definitions provided by Ordinance No. 90 -89, as amended, are hereby incorporated by reference. Phtsing shall mean (a) the phased construction of buildings or structures in separate and distinct stages as shown on a PUD mrister plan, subdivision master plan or site development plan; or (b) in developments where phased construction is not depicted on a PUD master plan, subdivision master plan or site development plan, the construction of buildings or structures in a clearly defined series of starts and finishes that are separate and distinct within the development. / �,tt Tt Co (2) �'3` nC'tTe�montl �t+� nt for the affordable Units shall be in accordance with the rents/sp gfied tt> xhe attached ikpp dix , Exhibit A. The monthly rent = 5 may be increased each ye r fr� dat( jufrilt�s A r :menttt s to g as the rent does not exceed A one - twelfth (1112) of 3 pe #t o adtnttt a Ypr stn s 50 percent (for very low income), and 60 percent for ow tncomejof the eti a p tc edian adjusted gross annual income for the household ished annually by/If a artmont of Housing and Urban Development for the area de the Naples Me an Statistical Area (MSA)• The foregoing notwithstanding, any ren[4&edJ'QZatt ordable housing unit rented to a low income or very low income family shall not exce d 90 percent of the rent charged for a comparable market rate dwelling in the same or similar development. (3) Median Income. For tho purposes of this Agreement, the median income of the area as defined by the U.S. Department of Housing and Urban Development (HUD) shall be the then current median income fol the Naples Metropolitan Statistical Area, established periodically by HUD and published in the Federal Register, as adjusted for family size as shown on the tables attached hereto as Appet;dix A, Exhibit C, which Exhibit shall be adjusted from time to time in accordance with any i4jusiments that are authorized by HUD or any successor agency. In the event that HUD coasts to publish an established median income as aforesaid, the parties hereto shall mutually agree to smother reasonable and comparable method of computing adjustments in median income. (4) Eligibility and Qualification of Tenant. Family income eligibility is a three -step process: 1) submittal of an application by a prospective tenant; 2) verification of family income; and 3) execution of an income certification form. All three steps shall be 2 Packet Page -1924- N c..s .o. N c.� 2/26/2013 16.D.12. accomplished prior to a tenant being qualified as an eligible family to rem and occupy an affordable housing unit pursuant to the affordable horsing density bonus program. No person shall occupy an affordable housing unit provided under the affordable housing density bonus program prior to being qualified at the appropriate levtI of income (low or very low income) in accordance with this Section, The Developer shall be responsible for qualifying tenants by accepting applications from tenants, verifying income and obtaining income certification for all affordable units in the subject development. All applications, forms and other documentation required by this Agreement shall be provided to the Housing and Urban Improvement Virector. Qualification by the Developer of any tenant as an eligible tenant family shall be subject to review and approval in accordance with the monitoring and enforcement program created and adopted by Resolution of the Commission. (a) Application. A potomdal tenant shall apply to the developer, owner, manager, or agent to qualify as a low or very tow income family for the purpose of renting and occupying an affordable; h9_q;;' ;t- 7eetda). unit pursuant to the affordable housing density bonus ro ram. The r A Irti t irir t ffordable Housing Unit shall be tY P g �Y 8 provided by the Housing an Uro"proyement Dwector"as sh wn in Appendix B, Exhibit A, attached to this Agreement c4ti! Xvin t nification. No affordable housing Unit in the dcvel end n i }rall a rented 0 e to ose household income has not been verified and certified T- ordance with this r e tit and Ordinance No. 90-39, as amended, as a low or very low n fly, Tenan i a�m verification and certification shall be repeated annually to ass ttn conti nod :?bi' (c) Income Verification, The Developer shall obtain written verification from the potential occupant (including the entire household) to verify all regular sources of income (including the entire household). The most recent year's federal income tax retm for the potential occupants (including the entire household) may be used for the purpose of income verification, if attached to the Affordable Housing Applicant Income Verification fonn, which includes a statement to release information, tenant verification of the return, and a signature block with the date of application. The vcrifrcation shall be valid for up to ninety (90) days prior to occupancy. Upon expiration of the 90 day period, the information may be verbally updated from the original sources for an additional 'i0 days, provided it has been documented by the person preparing the original verification. After this time, a new verification fomr must be completed. The Affordable Housing Applicant Income Verification form shall be provided by the Housing and Urban Improvement Director as shown in Appendix B, Exhibit B, attached to this Agreement and incorporated by reference herein. 3 Packet Page -1925- N Cal b N is rn 2/26/2013 16.D.12. (d) income Certification. Upon receipt of the Preliminary Application for Affordable Housing Unit and Affordable Housing Applicant Income Verification form, the Developer shall require that an income cenitcation form shall be executed by the potential tenant (including the entire household) prior to rental and occupancy of the affordable housing unit by the tenant, Income certification shall absum that the potential occupant has a low or very low household income which qualifies the potential occupant as an eligible family to refit and occupy an affordable housing unit under the affordable housing density bonus program. The Affordable Housing Applicant Income Certification form shall be provided by the Housing and Urban Improvement Director as shown in Appendix 3, Exhibit C, attached to this Agreement and incorporated by reference herein. (c) Rental Agreement. At a minimum, the rental agreement shall Include the following; (I) name, address, and telephone number of the head of household and all other occupants; (ii) a description of the unit to.be- rented -- (iii) the term of the lease U,V RHO U` (iv) the rental amour ,�j' (v) the use of the F cises; (vi) monitoring a d end'6 4- emetlproYisjor� inclu ing isqualiEication of tenant; and (vii) the rights ar)d s Random inspectio' toq��'ileis�. kQa t irtg` ir•;d c c m Etta} lion to verify occupancy in accordanco with this Agree sett and Ordivanco No, 69, us ided; may be conducted by the Housing and Urban Improve (iT 'rector. r ij (5) Djiil filliijbr�prl of 6rtt't) the event that tenant qualification is not subsequently confirmed by the Housing ban o Improvement Director or his designee, then such tenant shall be required to vacate the n.ffordable unit. If tenant vacation of the affordable unit is the result of an error, omission or n risrepresentit6on made by Developer, tenant shall vacate the affordable unit within thirty (30) lays and Developer shall pay penalties as provided by the monitoring and enforcement program. If tenant vacation of the affordable unit is the result of a misrepresentation made by the tenant, tenant shall vacate the affordable unit within 15 days and shall pay penalties as provided by the monitoring and enforcement program. Such eventuality shall be expressly detailed in the lease agreement between Developer and tenant, (6) Annual Progress and Monitoring Report. The Developer shall provide the Housing and Urban Improvement Director an annual progress and monitoring report regarding the delivery of affordable housing rt ntal units throughout the period of their construction, rental and occupancy. The annual progress and monitoring report shall, at a minimum, provide any information reasonably retuired to insure compliance with Ordinance No. 90 -89 or subsequent amendments thereto. The report shall be filed on or before September a Packet Page -1926- C) w .P. b cs N cl. .sy 2/26/2013 16.D.12. 30 of each year and the report shall be submitted by the Developer to the Housing and Urban Improvement Director. Failure to complete and submit the monitoring report to the Housing and Urban Improvement Director within sixty (60) days front the due date shall result in a penalty of up to fifty dollars (S50.00) per day unless a written cx►ension not to exceed thirty (30) days is requested prior to expiration of the sixty (60) day submission deadline. No more than one such extension may be granted in a single year. The progres:. and monitoring report shall be in a form provided by the Housing and Urban improvement Director. (7) Occupancy Restrictions. No Affordable i Init in any building or structure on the Property shall be occup�ed by the Developer, any person related to or affiliated with the Developer, or by a resident manager. 3. Density Bonus. The Commission hereby acknowledges that the Developer has met all required conditions to qualify for a density bonus, in addition to the base residential density of seven (7) units per acre, and is therefore granted a density bonus of six (6) density bonus units per acre, for a total (total =--density--bery is units per acre X gross acreage) of 202 density bonus units, pursuant 1 v(li County A hf�s�i easing Density Bonus Ordinance J No. 90.89. The Commissi fuyt'ter_.ames that the Dev ope may construct thereon, in the .a aggregate a maximum nu ber of 4 8 ' o the 1' o ert ro3Wed the Developer is able to / ry secure building permit(s) 0 9C tier C un y, "r CID 4. Commissio i A reement`ISunng 9 to of t4 Agreement, the Commission acting through the Housing tj rban Improveme P c ")fS or its successor(s) covenants j \\ ble to the rte c et any general information that it and agrees to prepare and m _ __ 1'1� .( possesses regarding income limitatio s-eh st 'ltdn's which are applicable to the affordable Unit. 5. Violations and Enforcement a. Violations. It shalt be a violation of this Agreement and the Collier County Affordable Housing Density Bonus Ordinan,�e to rent, sell or occupy, or attempt to rent, sell or occupy, an affordable housing rental unit provided tinder the affordable housing density bonus program except as specifically permitted by file terms of this Agreement; or to knowingly give false or misleading information with respect to any information required or requested by the Housing and Urban Improvement Director or by any other persons pursuant to the authority which is delegated to them by the Ordinance. Collier County or its designee shall have full power to enforce the terms of this Agreement. The method of enforcement for a breach or violation of this Agreement shall be at the option of the Commission by criminal enforcement pursuant to the provisions of Section 125.69, Florida Statutes, or by civil enforcement as allowed by law, 5 Packet Page -1927- 2/26/2013 16.D.12. b. Notice of Violation for Code Enforcement Board Proceedings. Whenever it is determined that there is a violation of this Agreement that should be enforced before the Code Enforcement Board, then a Notice of Violation sh.tll be issued and sent by the Housing and Urban Improvement Director by certified return- receipi requested U.S. Mail, or hand - delivery 1t) the person or developer in violation of the Ordinance. The Notice of Violation shut) be in writing, shall be signed and dated by the Housing anti )Urban Improvement Director or such other County personnel as may be authorized by the Board of County Commissioners, shall specify the violation or violations, shall state that said violations(s) shall be corrected within tan (10) days of the date of the Notice of Violation, and shall state that if said violation(s) is/tire not corrected by the specified date in the Notice of Violation, the Housing and Urban Improvement Director shall issue a citation which shall state the dare mid time of issuance, name and address of the person in violation, date of the violation, Section of this Agreement or of Ordinance No. 90 -89 or subsequent amendments thereto violated, nae no of the Housing and Urban Development Director, and date and time when th i l' 03hrUe -I06re the Code Enforcement Board. c. Certific Ccupancy. in th��tRih t the Developer fails to maintain accord be ihtt tis— lento h Ordinance No. 90-89, as the affordable units to � ez� AgK�rt amended, at the option o the rf`i ' s•o �§u ld��g er r �tiifieates of occupancy, as applicable, may be withho �y.(ir rl a or of e i f roved unit locates or to be located upon the Property u e entire project is full co RJ cc with this•Agrroment ant with Ordinance No. 90 -89, as eh d. L 51 Assignment by Co ts�rit3 � �tht }ission may assign all or part 4. its obligations under this Agreement to any of er public agency having jurisdiction o%rr die Property provided that it gives the Developer thirty (g(}) days advance written notice thereof The Developer may not assign, delegate or otherwise transfer all or put of its dulls, obligatom or promises under this Agreement to any successor in interest to the Properly withoua the express written consent of the Commission, which consent may be withhold for any reason ahamiever. Any attempt to assign the duties, obligations, or promises under this Agreement to any successor in interest to the Property without the express written consent of the Commission as required by this Section shall be void ab initio. 7. Severability. If any section, phrase, sentence or portion of this Agrrenient is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and all other provisions shall remain effective and binding on the parties. 8. Notice. Any notices desired or required to be given under this Agreement shall be in writing and shall either be personally delivered or shall be sent by mail, postage prepaid, to the parties at the following addresses: 6 Packet Page -1928- N r� N rs .a.. .v 2/26/2013 16.D.12. To the Commission: Housing & Urban Improvement Dept. 2800 N. Horseshoe Drive Naples, Florida 34104 To the Developer: Richard Shaw, Presidou Colonial Equities. Inc. 16200 Dallas Parkwa + +, Suite 190 Dallas. Tx. 75248 Any party may change the address to which notices = +o be sent by notifying the other party of such new address in the manner set forth above. 9. Authority to Monitor. The parties hereto c►cknowledge that the Director of Collier County Housing and Urban Improvement or his designee: shall have the authority to monitor crud enforce Developer's obligations hereunder. 10. Indemnify, The Developer hereby agree, to protect, defend, indemnify and hold va ji�ge( s�t►armless from and against any ai,ci all r� Collier County and its officers, emplt?.yeo , V Claims, penalties, damages, fnsttf�expenses, pro`fa:�b�^►cl fees, including, without limitation, reasonable attorney's fees d `6os litigation nod 1� dg ants arising out of any claim, --J-1 willful misconduct or n ltgtatt //e o orris. ion, o lia ility of any kind made by Developer, its agents or em o ees�(ar A t o it ►d nt l to the performance of this N Agreement. � o 11. Covenants. a. , eveloper agrees t t�[7,i s obligations hereunder shalt ij constitute covenants, restricteo ��, onditions w II run with the land and shall be r r_� ;h n having, an ownership interest at any binding upon the Property and agarns g y time and from time to time until this Agreement is terminated in accordance with Section 14 below. However, the parties agree that if Developer wansfers or conveys the Property to another parson or entity, Developer shall have no further obligation hereunder and any person seeking to eaforee the terms hereof shall look solely to Developer's successor in interest for the perfomm oce of said obligations. 12. Reeordin& This Agreement shall be recorded at Developer's expense in the official records of Collis County, Florida. 13. Entire Agreement. The Patties hereto agree that this Agreement constitutes the entire Agreement between the patties hereto and shall inure to and be binding upon their rospoctive heirs, successors, and assigns. 14. Termination. F.ach affordable housi:►g unit shall be restricted to remain and be maintained as the type of affordable housing rental unit (low or very low income) designated in accordance with this Agreement for at least fiftec,, (15) years front the date of issuance of a 7 Packet Page -1929- 2/26/2013 16.D.12. Certificate of Occupancy for such unit. After fifteen (IS) years this Agreement may terminate upon a date mutually agreed upon by the parties and stand in writing. 15, Modification, This Agreement shall be modified or amended only by the written agreement of both parties, 16. Discrimination. a. The Developer agrees that neither it nor its agents shall discriminate against any tenant or potential tenant because of said tenants race, color, religion, sex, national origin, familial status, or handicap, b, When the Developer advertises, rents, sells or maintains the afiordablc housing unit, it must advertise, rent, sell, and maintain the same in a non - discriminatory manner and shall make available any relevant information to any person who is interested in renting or purchasing such affordable housing unit. C, The Developer agrees to be responsible for payment of any real estate commissions and fees assessed in the rentM: hsse of affordable units. d. The afro at 1[ usrig units i : Y F}opment shall he identified on all building plans submitted t th F-Ounty� and' de>,cribod 'n t e Developer Application for Affordable Housing Densit B u e. The ffo a le u Lin n �i +eft l� I1 c tit i ad with, and not segregated from, the market rate dwell nits in theaevelop nt.> f. The s footage, construrtiti t ,dt'gn of the affordable housing units shall be the same as marks � filling uniterip- tlts�`�ie elopment, All physical amenities in the dwelling units, as described in (7) of the Developer Application for Affordable Housing Density Bonus shall be the same for market rate units and affordable units. For developments where construction takes place in more than one phase, all physical amenities as described in item number seven (7) of the Developer Application for Affordable Housing Density Bonus shall be the same in both the mark ;t rate units and the affordable units in each phase, Units in a subsequent phase may contain different amenities than units in a previous phase so long as the amenities for market rate units and affordable units are the same within each phase and provided that in no event may a madly at rate unit or affordable union any phase contain physical amenities less than those describe0 in the Developer Application. 17. Phasing. This development is being built in two phases, each having separate financing sources. The legal description of Phase I is attached as Appendix D. with Phase 11 being the remainder of the property. However, the second phase (198 units - northern portion of the site) will commence construction following an approval of an amended PUD, Phase I will consist of 140 units 84% low income at 60 %, of the area median income and 20% at very 8 Packet Page -1930- N w —.z .ate -v N CJ1 2/26/2013 16.D.12. low income at 50 0l0 of median income (southern portion of the development). Phase 11 will consist of 298 units with 62 affordable units (60 units at 50% of the area median income) and two (2) units at 60% of area median income. This agreement will become effective as to Phase 1 concurrent with Developer's closing on the purchase of the southerra portion of the Property, and will further become ef.'eetive as to Phase 11 concurrent with Developer's subsequent closing on the northern portion of the Property, In the event Developer fails to close on one or both portions of the Property, th- -n staff will return to the Board of County Commissioners with a new affordable housing agreement as to either or both portions of the Property that failed to close. However, this agreement will supersede any previous Affordable Hotising Density Bonus Agreement approved for this parcel. 18. Disclosure. The developer shall not disclose to persons, other than the potential t t bu er or lender of the partic a -c-housing unit or units, which units in the enan , y � ' �t'.I development are designated as 'le1rousmg uniisl' 19. Consistency. Thi Agreem nrntt and i tthoni with the Growth Managernhnt 1a d 1 ct a X10 in effect at the time of dev�lo}1iie ttr s UP op d'(la Agreement arrd to the devt type of affordable housing for the development. to the extent d the amount of Wk aopment shall be consistent c.a ns of Collier County that are d policies shall apply to this in conflict with the number, c.n Ling density bonus approved 20. Affordable Housing Dens tanks I vvelopment Agreement, This Agreement is a distinct and separate agreement from development agreements as defined by Chapter 163.320. Fla. Stat. (1989) and as amended. 21, Preapplication, Developer has executed and submitted to the Development Services Director the Developer Application for Al fordable housing Density Bonus, a copy of which is attached to this Agreement as Appendix C and incorporated by reference herein. 22, Governing Law. This Agreement shall be governed by and consumed in accordance with the laws of the State of Florida. 23. Further Assurances. The parties hereto shall execute and deliver, in reconlable form if necessary, any and all documents, eertificaies, instruments, and agreements which may be reasonably required in order to effectuate the intent of this Agreement. Such documents shall include but not be limited to any document requested by the Developer to exhibit that this Agreement has terminated in accordance with the pi ovisions of paragraph 14 above. IN WITNESS WHEREOF, the parties hereto Nave caused this Agreement to be executed as of the day and year first above written. 9 Packet Page -1931- 2/26/2013 16.D.12. A'1;9`g;ST; BOARD OF COUNTY COMMISSIONERS li MOHT E. BROQ: , Clerk COLLiEW COUNTY, FLORIDA By. TIMJTIIY L. HANCOCK, Chairman DEVELOPER WiUmsres (2); CEI /KENSINGTON, LTD. by: COLONIAL EQUITIES, INC., its General Partner By'— -- - -- Riciiard Shaw, President Witnesses (2): COLONIAL EQUITIES, INC. By' - - Richard Shaw, President o 1RC0> a� Witnc7scs (2): HOUSIN tCJ ACH CORPORATION .ob n e int it ) - w Approved as to form and legal sufficiency: Heidi F. Ashton Assistant County Attorney STATE OF ) } as. COUNTY OF ) The foregoing Agreement Authorizing Affordable Hvusing Density Bonus And Imposing Covenants And Restrictions On Real Property was acknowledged before me by Richard Shaw, President of Colonial Equities, Inc., General partner of CE1/Kensington, Inc. on half of the Corporation. He is personally known to me or has produced as identification, WITNESS my hand and official seal this _ day of ,1997 My Commission Expires: 10 Packet Page -1932- Notary Public 2/26/2013 16.D.12. STATE OF ) ) BB. COUNTY OF ) The foregoing Agreement Authorizing Affordable Housing Density Bonus And Imposing Covenants And Restrictions On Real Property was acknowledged before me by Richard Shaw, President of Colonial Equities, Inc., on half of the Corporation. He is personally known to me or has produced as identification, WITNESS my hand and official seal this __ day of 1997, Notary Public My Commission Expires: STATE OF ss. COUNTY OF�! k ) The foregoing Agreement Authorizing Affordable Housing Density Bonus d osing Covenants And Restrictions On Real Property was acknowledged hefure me by Richard tdent of Housing Outreach Corporation on half of the Corporation. He is personally known to me or has WITNESS my hand arsd� iciai seal this My Commission Expires: j"s@Msbrkpr/denbomgr �rfc C I Packet Page -1933- G r�. 1997. N W ary Public N v. am WAMN-1 .i wMWAUMN NOW at nol Appendix A, Exhibit A 2/26/2013 16.D.12. RENTAL NUMBER OF UNITS BASE RENT Single Multi Single multi Family Family Family Family IOW INCOME Efficiency 0 0 0 t 1 Bedroom 0 0 --0 — 2 Bedroom 0 96 _Q 3 Bedroom 0 16 _ 0 703 4 Bedroom 0 0 0 TOTAL 0 114 VERY LOW INCOME / 7Z CU''� � Efficiency w / V / 1 bedroom 0 ---- y�6 _ 0_ eel 2 Bedroom 3 Bedroom 0 j� 0 57n N _ < 0 s.r+ 4 Bedroom 0 TOTAL BB i 0 (1) Base residentin b�e� in this development 7 - units /acre .`1: (2) Gross acreage +33.79 . (3) Maximum number of affordable housing density bonus units allowed in this development pursuant to Section 7 Ordinance 90 -89. 6 unity /acres. (4) Gross residential density o-,: this developmant (including affordable housing density iwonus units) _ 13 unite /acre. (5) Percentage of affordable un"Lts pledged by the developer (as a percent of the total number units in the development) 46 �. �► Rents are not of utility allovanaee. Water and sewer utilities provided in listed rent levels. , Page 1 of 3 Packet Page -1934- 2/26/2013 16.D.12. Appendix A, Exhibit B ArroRDABL•r HOUSING DENSITY HyNUB RATIEg OY8TEti section 7, ordinance No. 90 -s9, provides for calculation of a density bonus for developers pledging to construct affordable units within their development. Included in this Exhibit B are instructions for and the tables with which to calculate the density bonus for a particular project. Exhibit c contains the current median income and acceptable r4nts for low and very low income households in Collier County. The affordable housing density br,nus rating system shall be used to determine the amount of the ai:fordable housing density bonus which may be granted for a deve7.opment based on household income level, number of bedrooms per .affordable housing unit, type of affordable housing units (owner- occupied or rental, single - family or multi - family) and percentage of affordable housing units in the development. To use the affordable housing density bonus rating system, Tables A and B, below, shall be used. Tables A and B shall be reviewed and updated if necessary on an annual basis by the Board of County commissioners or its designee, First, choose the household income .level (moderate, low, or very low) of the affordable housing unit(s) proposed in the development, and the type of affordable housing units (owner- occupied or rental, single - family or multi - family, where applicable) to be provided, as` Qw4) —L-n Table A. Tt�,en, referring again to Table A, choose�t s{ be��cs I rooms proposed for the _4 affordable housing unit .Ky- -An affords 1�.'• outing density bonus rating based on the h rflarsld income Lev g d the number of N bedrooms is shown in ab After the affor a u rating has been determined in Table A, c �e e , an determine the ca percent of that typ ff r a 1 hkrNs y u t proposed in the development compare t 3 be ling units in the cN�. development. From t • determinatioiV Ta 1 will indicate the .o maximum number of re tial dwelli i "`p r gross acre that may be added to the b ensity. Tile tional residential dwelling units per grob a era the ma affordable housing density bonus (AHDB) ava be atLthir� v loPmant. Developments with percentn g es of afforc�a$ 41lip s rtito which fall in between the percentages shown on Tabri- !- S `hir3I receive an affordable housing density bonus equal the lower of the two percentages it list between plus 1 110th of a residential dwelling unit per gross acre for each additional percentage of affordable housing rental units in the development. For example, a development which has 24% of its total residential dwellinn units as affordable housing units, and which has an affordable housing density bonus rating of "four's will receive an affordable housing density bonus (AHDB) of 4.4 residential dwelling units per gross acre for the development. Where more than one type of affordable housing unit (based on level of income and number of bedrooms shown in Table A) is proposed for a development, the affordable housing density bonus for each type shall be calculated separately in Table B. After the affordable housing density bonus calculations for each type of affordable housing unit have been completed in Table H, the affordable housing density bonus for each type of unit shall be added to those for the tether type(&) to determine the maximum affordable housing density bonus ava.11able for the development. In no event shall the affordable housing density bonus exceed eight (8) dwelling units per gross acre. Page 2 of 4 Packet Page -1935- 2/26/2013 16.D.12. Appendix A, Exhibit B nF�reADABLE HOUSING D�9I'i'Y Bf�NUB �ATTNG 8Y8TLrM TABLE At AFFORDABLE H009ING UPITY 80NV RhTZ LEVEL @1i8 OF BEDROOMS /UNIT G OF HOUSEHOLD EFFICIENCY 2 3M OR INCOMr. M" MODERATE (OWNER - OCCUPIED, 0 J* 1+ SINGLE - FAMILY) LOW (OWNER- OCCUPIED OR RENTAL 2 3 - FAMILY OR MULTI- 4 SINGLE FAMILY) VERY LOW (OWNER OCCUPIED OR RENTAL, SINGLE - FAMILY OR MULTI- 3 4 5 FAMILY) *For cluster housing developments in v.he Urban Coastal Fringe, add 1 density bonus to obtain 2. /� R Co ` TABLE B t _ AF 38ITY ACN09 � .,.�*a.rvr� �1■ ?!R GR088 I►CRa1 AFFORDABLE SOUSING f / 2 0 ; `( (-l� 5 5 phase oalaulate Your d0nsia+o�saus in the spaao provided below. Attaab additional pages necessary. Density Boaue was previously calculated at the time of approval of Saddlebrook Village PUD. fV w N V+ Page 3 of 4 Packet Page -1936- -- 2/26/2013 16.D.12. Appendix A, Exhibit C n RE AND QENT LEVELS FORME LOW AND MOT3ERATE INC 0bdF Pursuant to the Affordable Housing Density Bonus OrdinRnce, No. 90 -89, moderate income is 81 to 100% of the median income, low income is 51 % to 80°,° of the median income and very iow income is less than 50% of median income, Pursuant to the Impact Fee Ordinances, adopted by the Bo;ud of County Commissioners, December 16, 1992, moderate income is 61% to 80% of the median income, low income is 51% to 60% of the median income and very low income is less than 50% of ti 1c median income. MEDIAN INCOME 1997 $51,300 Naples, MSA (Collier County) NUMBER OF MEMBERS IN FAMILY 1 2 3 4 5 6 7 8 100% 35,900 41,000 46,200 51,300 55,300 59,500 63,600 67,700 80% 28,750 32,850 36,950 41,060 44,300 47,600 60,900 54,150 60% 21,540 24,600 27,720 30,780 33,240 35,700 38,160 40,620 50% 17,950 20,500 23,100 25,650 27,700 29,750 31,800 33,850 The Florida Housing Finance Incentive Loan (SAIiy) and th rents given below are based o Section 8 Rental Assistance 13 Authority. y ONEBEDROOM UTILITY ALLOWANCE 52 REC �.TFS k en ) FHFA) calculate' reran to a in the State Apartment o�✓i ._qpA Rtnt$d flst� ing T C it (LIHTCI programs. The 19 7 of fr -F A, I ilit c ts' provided from the County's og w�h s �8tc -t c0ier County Housing S BASEL? ON �21 °/o F ?t�_ P,EDROOM 71 BtFly E Ci�c:� !,15 `1,334 924 1,067 693 800 578 667 95 137 FOUR BEDROOM UNIT 1,487 1,190 893 744 162 UNIT 100% 962 80% 770 60% 577 50% 481 UTILITY ALLOWANCE 52 REC �.TFS k en ) FHFA) calculate' reran to a in the State Apartment o�✓i ._qpA Rtnt$d flst� ing T C it (LIHTCI programs. The 19 7 of fr -F A, I ilit c ts' provided from the County's og w�h s �8tc -t c0ier County Housing S BASEL? ON �21 °/o F ?t�_ P,EDROOM 71 BtFly E Ci�c:� !,15 `1,334 924 1,067 693 800 578 667 95 137 FOUR BEDROOM UNIT 1,487 1,190 893 744 162 Packet Page -1937- ev w a.s. C= ALLOWABLE RENT WITH U I'ILITIES DEDUCTED ONE BEDROOM TWO BEDROOM THREE BEDROOM FOUR BEDRC UNIT [:NIT UNIT UNIT 100% 910 1,060 1,197 1,325 80% 718 829 930 1,028 60% 525 598 663 731 50% 429 483 530 582 Revitad 2197 rldtnsity bonus Page 4 of 4 Packet Page -1937- ev w a.s. C= 2/26/2013 16.D.12. LPPM DIX C ble Housing Density Bonus Packet Page -1938- N to fJ� ♦d 2/26/2013 16.D.12. '. Appendix C Developer Application For Affordable Housing Density Bonus pursuant to the requirements of the collier County Affordable Housing Density Bonus ordinance No. 90 -t'9, Section 6.4, please complete this form and submit it with any accompanying documenta- tion to the Development Services Director, 29oo North Horseshoe Drive, Naples, Florida 34104. A copy must also be provided to the Housing and Urban improvement Director. All items requested must be provided. 1. Please state what zoning districts are proposed by the applicant, if any, on the property and the acreage of each; psisting conlnA to be sstained c.ddl.t+roak_YUD 2. Has an applica with the affordable Yes if yes, state data request has been a 3. Gross density of Gross acreage of the O jreionin� q`ba�' . quested in conjunction �s / 0cj__deysity bongs. li a i , and if the .o o state the Ord na A- number oposed dev-il� n't. 13 units /acre. ��yment. 33.79 acres. 4. Are affordable housing density bonus units sought in conjunction with an application for a planned unit development (PUD)? yes X No. If yes, please state name and location of the PUD and any other identifying information. 5. Name of applicant Colonial Equities, Inc. Name of land developer if not the same as applicant Phase I__ Applicant; Phase 11, outreach Housing CorPorazion. Page i of 3 Packet Page -1939- 2/26/2013 16.D.12. Appendix C Developer Application For Affordak-le housing Density Bonus 6. please complete the following tables as they apply to tho proposed development. TABLE Y ���' ea ++..her of Dnits in Develovmettt Type of ownwe,,Mr{ad Unit R&Dta Efficiency -° ° one Bedroom 130 ° Two Bedroom 242 - ° — Three Bedroom 66 ° Other Bedroom -o- 0 TOTAL 438 ° %yt Imo. C' _ TABLB II �1� n4u' - - ;eq Onits T a mbar of \�pr posed Use !or A L rc3 mis-f en ity Bonus Units in evelop n 0 owner occupied H O sv c.s. cn MODERATE INCOMES � Efficiency' 0 /� ° \ ° — 0 1 Bedroom 0~ •�j {�' 2 Bedroom _0 0 3 Bedroom Q- 0 0 --- Other o ° b - �..-- 0 TOTAL o o ° -- LOW INCOME Efficiency ° o ° o I Bedroom 0 0 4 0 2 Bedroom 90 0 filp 0 3 Bedroom 16 _ 0 v a ° Other 0 ---Q -- 0 TOTAL 114 0 0 Net of utilities. Water and sewer uti litie8 provided in listed rent levels. Page 2 of 3 Packet Page -1940- Appendix C Developer Application Sox Affordabls Housing Density Bonus TABLE 11 (Continued) Total Number of Proposed Use for Affordable Units Density Bonus in Development Units ggn:tal owner Rental * Owner OcCuP+eg . VERY IOW INCOME Efficiency 0 0 1 Bedroom - 46 0 2 Bedroom J4 _ 0 3 Bedroom 8 0 other 0 0 TOTAL as 0 7. Please provide a physical ASSMr 'R C. by type of unit (moderate' -wr bedrooms. include in j� descripti footage of each type of un ;°fl r unit (carpeting, ti e, v n � 1 ' appliances provided --a wa'�h s� �i 1� 2/26/2013 16.D.12. —..n n 448 _ 0 — — &L 0 570 0 _...._ 0 0 :ion of the affordable units i ncome) and by number of t r xample, the square Merin s sod throughout the �w� d w reatments; ashen, stove, refrigerator; bathro r,Qnenities, au " a L3 ing exhaust tans; and any other amenities as cable. A .additional Pages. S. Please supply any her in i�a'a£ ion which would reasonably be needed to address this request for an affordable housing density bonus for this development. Attach additional pages. * Net of utilities, Water and sewer u�.ilities provided in listed rent levels. Page 3 of 3 Packet Page -1941- �s Loa 4 F1 �a e.a v+ N SADDLEBROOK AFFORDABLE UNITS Response to Item #7 of Appendix C, Physical Description 2/26/2013 16.D.12. No. of Units Type Square Footage Rent � 1 750 $515 60 2 Bedroom/2 Bath 880 $618 SADDLEBROOK AFFORDABLE UNITS Response to Item #7 of Appendix C, Physical Description 2/26/2013 16.D.12. No. of Units Type Square Footage Rent 20 2 Bedroom/1 Bath 750 $515 60 2 Bedroom/2 Bath 880 $618 36 2 Bedroom/2 Bath 900 $618 8 3 Bedroom/2 Bath 1040 $570 16 3 Bedroom/2 1040 $703 No. of Units Type S are F a�e Rent* 46 1 1 $448 14 $515 2 xn/1 Bath 9.'� 5618 i All of the units will be carpeted throe nu�-eir *tion of kitchens and 'baths, which will have vinyl flooring. Every bedroom and living area will have a ceiling fan with a light kit. The kitchens will include dishwasher, drop -in rungs, disp mi and a refrigerator with an ice raker. A utility room will contain full size washer /dryer connections and an individual electric hot water heater. All units will have electric central air conditioning /heating units. * Rents are net of utilities. 2•p,{d WO%4 dalrb+lafluA Abb Packet Page -1942- rat, f'�� � '�,.. ;•.� ' � i tff APPENDIX 11 t 2/26/2013 16.D.12. Page I of : ►. I i THEFALMS � l�AL D�Q'L'rON • , ' A P&W of , ltutd; iia 5tiotlM 34, Towa*) 49 Range �G >ia:at. t t3e11t�i' Caue�ey;' mow Pe&Mdady daa�r`bed .. ' Goamtmiod•at tb' i jo4hdo;ooa r of the wart TAR of the B&AMM IA of SOdioc 3{ 'foatr�iip 40.. r ' 26 Set. nm 1189°43'1 of 726.00 fag t�Wwrna a d6ftm of 50.00 fed b dfBe6fociag~ tbetdoe stia NE9i3 X " W i eilstmos of 479.5- fix%; N00'Ol'11"6 a • ooe d 6a I" to the Point of a�arr tm of a ootaa booasve i f. i� �I 1' r, 1 t ry i. i f i $oati�e�betty, tai4 97.61 fm' &Wq dw p:a of Mid 0*" having s m" of 140.1543 of 27""44", a duxd dWtmoob if 96.64 hot and a obioid of r '41" pow of tpmmw.. do= run N27"633"4V a at a raoc" ooeoare fi%Itltette�ljr; ou�e iai►irt fi a roan of .200.00 hmlt a 27" 92'18", a ��ord of 9520 Reef and a dior6 bdrigg y -t3 a poiad of diof216. S'42 a 13•72 lira0 ltteaoc ma 1J04'04' 1 139"8 6 diec000e of III , ° S' tom, tam no f6 :N4rl9!S � dbome of • '! ?I.tSt•,' '"" �39"32'S�1"W a ' • =j'1t0'�O'S7aE' tt 37.t2 lbet; th T a` of ; 3 +figs � that B a d oaa of • 21x7: 3 Q �eeit b� • I ELM` ; . -� � {'.�� y�� ,..-� !� � •. i 1 f Bpi I . i- n 12.A4 ,j+a'M. mon cc W& tubjeat to .[ Itdod m and .t l ' 't�tidPiudd'gy: - • r PAA& 11p[�da 140.1543 thy.. ��to1 art 51dbe202 1,44d e. Fb tla' 34113 Packet Page -1943- c..a .a• CIA fV •s W-JIXAN W.-Am imi•m �� ' `fir t cor 10*WR 34.1 Tlm MIN- Nam i 2/26/2013 16.D.12. EXHIBIT C NON - COMPLIANCE ISSUES Packet Page -1945- 2/26/2013 16.D.12. FIRST HOUSING January 25, 2013 Larry Goodman Pinnacle Equities, President 5055 Keller Springs Road, Suite 400 Addison, TX 75001 Re: Annual Management Review (December 28, 2012) Notice of Non - Compliance Saddiebrook Village HC: 1998 -504C Dear Mr. Goodman: Enclosed please find the 2012 Annual Management Review. Please sign and return the signature page to my attention at compliancereporting @f►rsthousingn.com. Please note that your signature acknowledges receipt of the review and must be returned to First Housing no later than February 4, 2013. However, a written response addressing each section of the review is due no later than February 25, 2013 to the following separate addresses: Bridget Tracy Laura J. Cox Compliance Agent Director of Asset Management and Guarantee Program First Housing Florida Housing Finance Corporation compt ioncereporting @frsthousingfl.com compliancereview @noridatiousing.org This letter will serve as notice to you, that pursuant to Treasury Regulation Statutes 1.92- 5(e)(2) the project is not in compliance with the provisions of Section 42 of the Internal Revenue Code of 1986, as Amended (the "Code'). The Florida Housing Finance Corporation is required to report this non - compliance on Form 8823, "Low - Income Housing Credit Agencies Report of Non- Compliance" to the Internal Revenue Service (IRS) and must also report whether or not the non - compliance has been corrected. It is important to cure discrepancies in a timely manner in orderJor the IRS Report to indicate corrections have been completed. Should you have any questions, please feel free to call. Sincerely, Bridget Tracy Compliance Agent cc: Laura J. Cox Deanne Davis Manager Shawn Wingate Ted Broadfoot Q FRome Wier: 10 % :_, :ulh 1A1 � I l;�w F,v::�-:u _• Tampa, Fri. 3 c• 194.5 (t'.1 ij 285•`+41 G Packet Page -1946- rA%w.Jir-r?h OWW-FIgl t• ro»r Packet Page -1947- 2/26/2013 16.D.12. 2/26/2013 16.D.12. . o_..tM.. Q „--, sh°ot Matt a�eY. NBrdeLPYapetYy: NBmegridAdd +'ess::;:;:;:;:;:•�•:•:•:; Pr4peft}t. . tuber($} ::::::::: :::::::::::::::::::::::::�:�:�. Date oT;ReVieW: ; : ; HC 1998 -504C December26 2012 Manager e- Fy Typ¢•Qt fteVagG'.. •;Z Yp Saddlebrook Village FDIC 8685 Saddlebrook Circle Initial Annual MFRB Naples, FL 34104 L-.� N of this review 6 x Follow-up a of this Foltow -Up Review HC HOME Deanne Davis, Vice President Compliance and Internal Audits Date of Original Review AHL ; k:oP. kJniti : :: :# Units: : >� of i?ileli : • : ?�+ :Fiitf ; : : Pinnacle Family of Companies : 'Ihl; o tad ' • : ' EL e 'hid ; ; E'atatt11ne4:: 2600 Lake Lucien Drive, Suite 300 28 20 Maitland, FL 32751 Total: 140 Total; 30 • : '# of8ftttdings:fnalle Pro 0-u pied: 126 Ooe ied: 26 Vsunt: 14 Vacant: 2 Residendat: 8 Non•Resid -teat: -4J Wr1eC CvAteLt:NBrtte a rtts9:: Set•Asl kiaqutrefnent(s):, Larry Goodman President, Pinnacle Equities 100 °!, 60% 5056 Keller Springs Road, Suite 400 Addison, TX 75001 re 5: :U:• 'cs „n;m: A; :Exalniijat +ata:lif 73etiorcis :: ; ::: . 1. Tenant Selection 8 Orientation 1. x x 1. Tenant Files and Records x 2. Applications and ProCeaain X 2. Maintenance Program x X 3. Security Program 3. Rents X 4. Vacancy & O=pancy Occupancy Date of Review X 4. Verifications of Income 5. Organ and Supervision x 5. Income CeAl6calionlReceAificetion X 8. Staffin x x 6. Leases X 7 Office Hours x . 7. Next Available Unit Documentation 8 operating Procedures and Manuals x 8. Tenant Pro rams & Services R X x 9. Tenant Fite Discre notes x 9 Training . x 10. Public policy Options NIA 10. Adverlisln 11. Affirmative Fair Housing Marketing Plan N!A 11. Rent ROtI X 12. Program Reports x 12. 13. Regulatory A reemenis LURAlEUA x 13. 14. UiNly AHowance x 14, itySic* l0s:p9c2ion Miscellaneous Items E°Wppstl as (:anpneM. Interior Items w1m Camnent• t. 1. 2. Dishwasher R x 2. 3. Garbs a Dis osais R x 3' 4. 4. 5 5, B. Meti Blinds R x 6. 7. Communi Room/Clubhouse R X 7. B. Carlin Fans Bedrooms & Livin Area R X 8. R X 9. Swlmmm Pool s. 10. Launtl I1ook•u s & S ace fur Washer1D R x 10. 11. 11. 12. 12. 13. ExerrJse Room w! A ro date E ul ment R x 13, 14. 14. 15. Heating & Alr conditioning R X 15. 16. 16, 17. 17. 16. Cable TV Hookups R 5B. C19. R x EX R 20. 21. 20. Solar Screens on ail Windows 22. 23. Gated Communit wJCartled Ent gr Securit Guard R x 21. 22. 23. 24. Lockable Exterior Store e Space R X 24. 25. 25. 26. 27. 26. 27 R X I 211. Two OrMora Parking Spaces R X 29. 2 Bathrooms in all 3 Bedroom Units Pape 1 of 2 Packet Page -1948- 2/26/2013 16.D.12. ora ' e Name:: • : i?ro • . . Nerrrtbei s :: : :: : : : ::f3aie of: Review i dole: items marked with an °R'• are required by the Land Use Restriction Agreement/Extended Use Agreement -:'F2#t.110�$' : �pibjeCtiil;CPR►Paartce:: S comments, See s 1. Examination of Records X Yes 2, Administrative Procedures X X X X No 3. physical Unknown Follow -Up Review Required Yes No X Response Required Yes RX No Please acknowledge receipt by signing, dating and returning a copy of February 4, 2013 the Review to the Monitoring Agent no later than A written response addressing each section of the Review stating how the discrepancies have been corrected is due to First Housing and to Florida Housing Finance Corporation no _First Housing (Agent) (Signature) Bridget Tracy (Name) Compliance Agent (Title) Janua 25, 2013 (Date) later than: February 25, 2013 5addlebrook Village /Pinnacle Equities (Property /Company) (Signature) Larry Goodman (Name) President (Title) (Date) Page 2 of 2 Packet Page -1949- 1998 -604C December 28, 2.012 iaddlebrook Village :�:�:- insgsctad �:�:�:� es Commoots ����'�'�• �'�� ' .. •. g lr ...Monts Visual Ins Ctlon :Ab .icarl�SAectlbR(�Qn• Items Exterior X X 1. Occupied Unit Inspection X X Exterior Wells X 2. Vacant Unit Preparaticn ?, Exterior Patntin X X 3, General Physical Condition d, Roofs, Fleshings, Vents X 4. On -She Office Administration i. Gutters and Downspouts X X &, Use of Communliy Space X 5. Drives, Parking Lots, Paving 8 Curbs X X ; . ; : ; ; :: - ; • ; • : • ::: . ' : ' : : :D: dIlISCBIIaWBOk►S Ob66ryatlt)t►S 5, Walks, steps, Guardrahs, Ramps 7. Fences, Walls, Gates 8. Porches, Balconies, Fire Escapes i. Surrounding Neighborhood is: Prosperous 9, Doors. Windows, Saeans Average X 10. Lawns & Plantings Depressed 11. Sprinkler & Drainage Systems 12. Exterior Lighting X X 2. This COndhlOn Is expected 10: improve 13. Stay the Same X 14. Decline dole: items marked with an °R'• are required by the Land Use Restriction Agreement/Extended Use Agreement -:'F2#t.110�$' : �pibjeCtiil;CPR►Paartce:: S comments, See s 1. Examination of Records X Yes 2, Administrative Procedures X X X X No 3. physical Unknown Follow -Up Review Required Yes No X Response Required Yes RX No Please acknowledge receipt by signing, dating and returning a copy of February 4, 2013 the Review to the Monitoring Agent no later than A written response addressing each section of the Review stating how the discrepancies have been corrected is due to First Housing and to Florida Housing Finance Corporation no _First Housing (Agent) (Signature) Bridget Tracy (Name) Compliance Agent (Title) Janua 25, 2013 (Date) later than: February 25, 2013 5addlebrook Village /Pinnacle Equities (Property /Company) (Signature) Larry Goodman (Name) President (Title) (Date) Page 2 of 2 Packet Page -1949- 2/26/2013 16.D.12. Notice of Non-Compliance Annual Management Review Saddlebrook Village Page Three SUMMARY Saddlebrook Village is currently considered to be in non - compliance due to the following: * Failure to meet Uniform Physical Condition Standards for Buildings * Failure to meet Uniform Physical Condition Standards for Units- CURED C. Physical Inspection Please submit work orders along with the written response for all physical deficiencies listed below, Exterior items 1. Exterior Walls The exterior walls throughout the property are soiled. The breezeways are also soiled throughout the property, 5. Drives Parking lots Paviags and Curbs The parking areas and roadways throughout the property have oil stains and broken patches of pavement and potholes throughout. 6. Walks Steps Guardrails and Ramps Per management, there is a structural issue with the stairs throughout the property. On the day of the review, it was noted that many of them are being held up by temporary supports. Non-compliance There was also many stairs throughout the property that were heavily rusted, especially at the back of the treads. Please advise the steps that are being taken to correct these issues. This is a non - compliance issue. 17. Exterior Lighting It was noted on the day of the review, that several light fixtures were missing globes throughout the property. This was corrected the day of the review and a work order was obtained. Packet Page -1950- 2/26/2013 16.D.12. Notice of Non-Compliance Annual Management Review Saddlebrook Village Page Four Visual Inspection 1. Occupied Unit lnsncetion Of the twenty-eight (28) occupied units inspected, four (4) had deficiencies in which three (3) units were rectified on the day of the review, Completed work orders for the corrected deficiencies were obtained during the review. The deficiencies are described below. Unit N Deficiency ing roam. The light fixture above the sink in the bathroom 1206 The blinds were broken in the liv was peeling and rusted. These were both corrected the day of the review and work orders were obtained. 2304 The exterior door frame was damaged. This was corrected the day of the review and a work order was obtained. 2203 The exhaust fan in the master bathroom was inoperable. This unit is considered to be non- compliance CURED. This was corrected the day of the review and a work order was obtained. 5201 On the day of the review, management was unable to enter the second bedroom clue to the resident having placed their own lock on the door. Please inspect the room and report the findings with your response. 3, General Physical Condition The exterior of the buildings are soiled, as well as the breezeways throughout the property. The stairs are rusted throughout, as well as many have structural issues and are being held by temporary supports. E. Ratings 3. Physical inspection Saddlebrook Village is rated unsatisfactory due to the failure to meet Uniform Physical Condition Standards for it's buildings and for one unit (CURED) In addition, Saddlebrook Village had one unit (2203) which failed the Uniform Physical Condition Standards, but this issue was cured the day of the Review. Packet Page -1951- 2/26/2013 16.D.12. CONFIDENTAIL Awft Case Number: CESD20120018057 Date: December 27, 2012 Investigator: Heinz Box Phone: 2392522970 COLLIER COUNTY CODE ENFORCEMENT RECENEO by CORPORATE OFFI06 NOTICE OF VIOLATION Owner: CEI /KENSINGTON LTD C/O COLONIAL EQUITIES INC JAN 0 2 2013 5055 KELLER SPRINGS RD STE 400 ADDISON TX 75001 - Sent r Location: Unincorporated Collier County Zoning Dist: PUD Property Legal Description: 34 49 26 COM AT SW CNR OF SE 114, N 5OFT, S89DEG E 94.33FT TO POB, N 81,21 FT, N15DEG W 226.80FT, N 732.20FT TO PT OF Folio: 298120307 NOTICE Pursuant to Collier County Consolidated Code Enforcement Regulations, Collier County Code of Laws and Ordinances, Chapter 2, Article 1X, you are notified that a violation(s) of the following Collier County Ordinance(s) and or PUD Regulation(s) exists at the above - described location. Ordinance /Code: Building and Land Alteration Permits. (Permits, Inspections, Certificate of Occupancy Required) Collier County Land Development Code 0441, as amended, Section 10.02.06(B)(1)(9) Certificates of Occupancy and Completion. 2007 Florida Building Code, Chapter 1, Section 110.4 Certificate of Completion The County Manager or his designee shall be responsible for determining whether applications for building or land alteration permits, as required by the Collier County Building code or this Code are in accord with the requirements of this Code, and no building or land alteration permit shall be Issued without written approval that plans submitted conform to applicable zoning regulations, and other land development regulations. For purposes of this section a land alteration permit shall mean any written authorization to alter land and for which a building permit may not be required. Examples include but are not limited to clearing and excavation permits, site development plan approvals, agricultural clearing permits, and blasting permits. No building or structure shall be erected, moved, added to, altered, utilized or allowed to exist and /or no land alteration shall be permitted without first obtaining the authorization of the required permit(s), inspections and certificates) of occupancy as required by the Collier County Building Code or this Code Certificate of Completion. A Certificate of Completion is proof that a structure or system is complete and for certain types of permits is released for use and may be connected to a utility system. This certificate does not grant authority to occupy a building, such as shell building, prior to the issuance of a Certificate of Occupancy.; Violation Status - Initial DESCRIPTION OF CONDITIONS CONSTITUTING THE VIOLATION(S). Did Witness: unpermitted dumpster enclosure (fence around dumspter) at this location — expired permit# 2003010613 never co'ed ORDER TO CORRECT VIOLATIONW: You are directed by this Notice to take the following corrective action(s): Obtain permits for dumspter enclosure through Inspections and certificiate of completion ON OR BEFORE: 1128113 Failure to correct violations may result in: 1) Mandatory notice to appear or issuance of a citation that may result in fines up to $500 and costs of prosecution. OR 2) Code Enforcement Board review that may result in fines up to $1000 per day per violation, as long as the violation remains, and costs of prosecution. SERVED BY: INQUIRIES AND COMMENTS SHOULD BE Packet Page -1952- 2/26/2013 16.D.12. ONFIDENTAIL DIRECTED TO CODE ENFORCEMENT 2800 North Horseshoe Dr, Naples, FL 34104 Investigator Signature Phone; 239 252 -2440 FAX: 239 252 -2343 Heinz Box Signature and Title of Recipient Printed Name of Recipient Date *This violation may require additional compliance and approval from other departments which may be required under local, state and federal regulations, Including, but not limited to: right -of -way permit, building permit, demolition of structure, Site Davelopment Plan, Insubstantial Manna to Alta navalnnrnant Plan, and Varlenras alnnn with. navmanf of Imnaet fans. and anv naaw nr niAntandinn rasa ramsItad fnrannrnval Packet Page -1953- 2/26/2013 16.D.12. CONFIDENTAIL Case Number. CEPM20120009999 Date: July 05, 2012 Investigator: Ralph Bosa Phone: 2392522436 COLLIER COUNTY CODE ENFORCEMENT . NOTICE OF VIOLATION Owner: CEI /KENSINGTON LTD C/O COLONIAL EQUITIES INC 5055 KELLER SPRINGS RD STE 400 ADDISON, TX 75001- Location: 8695 SaddleBrook Circle, Naples FI 34104 . Unincorporated Collier County Zoning Dist: PUD Property Legal Description: 34 49 26 COM AT SW CNR OF SE 1/4, N 50FT, S89DEG E 94.33FT TO POB, N 61.21FT, N15DEG W 226.80FT, N 732.20FT TO PT OF Folio: 298120307 NOTICE Pursuant to Collier County Consolidated Code Enforcement Regulations, Collier County Code of Laws and Ordinances, Chapter 2, Article IX, you are notified that a violation(s) of the following Collier County Ordinances) and or PUD Regulation(s) exists at the above- described location. Ordinance /Code: Compliance with housing standards. Collier County Code of Laws and Ordinances Chapter 22 Buildings and Building Regulations, Article VI Property Maintenance Code, Section 22- 231(12)(f) Compliance with housing standards, Collier County Code of Laws and Ordinances Chapter 22 Buildings and Building Regulations, Article VI Property Maintenance Code , Section 22- 231(12)(b) , 12, Exterior and interior structures of dwelling units. All the following component of a dwelling unit shall be maintained in good condition. f. Stairs, porches, and appurtenances. Every inside and outside stairway, stair, porch, and any appurtenance thereto, shall be maintained in a safe condition, capable of supporting a load that normal use may place thereon, and in accordance with the Building Code as enacted by Collier County.: 12, Exterior and interior structures of dwelling units, Ail the following component of a dwelling unit shall be maintained in good condition. b. Exterior walls. The exterior walls shall be maintained free from holes, breaks and loose or rotting material. Such exterior walls shall also be substantially weather tight and weatherproof, and surfaces properly coated as needed to prevent infestation and deterioration. Decorative features such as: cornices, belt courses, corbels, trim, wall facings and similar decorative features shall be maintained In.good repair with proper anchorage, Any graffiti shall be removed or repainted to match existing surfaces.: Violation Status - Initial DESCRIPTION OF CONDITIONS CONSTITUTING THE VIOLATION(S). Did Witness: Metal stairs that are rusted through creating a hazardous condition and holes In the ceiling with rotted wood exposed due to water damage.. _ORDER TO CORRECT VIOLATION(S): You are directed by this Notice to take the following corrective action(s): Initial Inspection . 1. Must comply with any and ail corrective action requirements noted on the Residential Property maintenance inspection Report/ Order to Correct2. Must comply with any and all corrective action requirements noted on the Residential Property maintenance inspection Packet Page -1954- 2/26/2013 16.D.12. CONFIDENTAIL Report I Order to Correct ON OR BEFORE: 07/25/2012 Failure to correct violations may result in: 1) Mandatory notice to appear or issuance of a citation that may result in fines up to $500 and costs of prosecution. OR 2) Code Enforcement Board review that may result In fines up to $1000 per day per violation, as long as the violation remains, and costs of prosecution. SERVED BY: In�ator SignaturSignatur Ralph Bosa INQUIRIES AND COMMENTS SHOULD BE DIRECTED TO CODE ENFORCEMENT 2800 North Horseshoe Dr, Naples, FL 34104 Phone: 239 252 -2440 FAX: 239 252 -2343 Signature and Title of Recipient Printed Name of Recipient Date 'This violation may require additional compliance and approval from other departments which may be -required under local, state and federal regulations, including, but not limited to: right -of- way permlt, building permit, demolition of structure, Site Development Plan, Insubstantial Change to Site Development Plan, and Variances along with, payment of impact fees, and any new or outstanding fees required for approval. Packet Page -1955- 2/26/2013 16.D.12. CONFIDENTAIL Residential Property Maintenance Inspection Report / Order to Correct Code of Laws and Ordinances Location: Date:July 05, 2012 Case #CEPM20120009999 I nvestigato r: Ralph Bose *Description . Corrective Action Required Pass Fail Safe Stairs /Porches - Dwelling 12. Exterior and interior structures of dwelling units. All the XX following component of a dwelling unit shall be maintained in good condition. f, Stairs, porches, and appurtenances. Every inside and outside stairway, stair, porch, and any appurtenance thereto, shall be maintained in a safe condition, capable of supporting a load that normal use may place thereon, and in accordance with the Building Code as enacted by Collier County. Exterior Walls - Dwelling 12. Exterior and interior structures of dwelling units. All the XX following component of a dwelling unit shall be maintained in good condition. b. Exterior walls. The exterior walls shalt be maintained free from holes, breaks and loose or rotting material. Such exterior walls shall also be substantially weather tight and weatherproof, and surfaces properly coated as needed to prevent infestation and deterioration. Decorative features such as: cornices, belt courses, corbels, trim, wall facings and similar decorative features shall be maintained in good repair with proper anchorage, Any graffiti shall be removed or repainted to match existing surfaces. Overall Comments :Obtatn necessary permlts (If Applicable) and fix the stairs and the damaged telling In building number, 8645, 8635 and 8625. Packet Page -1956- 2/26/2013 16.D.12. CONFIDENTAIL Case Number. CEPmmi 1 oOD0769 Oats: January 24, 2011 lnves098t0r: Carmelo GOMGZ Phone'. 2392622971 COLLIER COUNTY CODE ENFORCEMENT NOTICE OF VIOLATION Owner. CENKENSINGTON LTD C/O COLONIAL EQUITIES INC 16200 DALLAS PKWY STE 180 DALLAS, TX 75248.9820 Locations smo Saddlebrook CIR Unh:51D1 Naples, FL Unincorporated Caltier County Zoning Dist: PUD Property Legni Description: 34 49 26 COM AT SW ONR OF BE 114, N SOFT, sa9DEG E 94.33FT TO POs, N 81.21FT, Ni6DEG 226•BOFT, N T32.20KT TO PT O Folio: 298120307 NO ICE lations, Collier County Coda of Laws and pursuant to Collier County Consolidat�eti Code Enforcement Regu Ordinances, Chapter 2, Arllcle IX, you are notified that a violatior%(S) ai the following Collier County Drdlnence(s) and or PUD Regulation(O exists at the above-describad location. OrdlnaneelCoda: Responsibllltles of Owners of Nonresidential Structure, Vacant Buildings, Vacant Siructuru* end Vacant or Unimproved lots. Collier County Code of Laws arld Ordinances Chapter 22 Buildings, Article VI PropertY Maintenance Code, Sectlon 22-241 1 with the KosNing Ali owners of nonresidential swclures, vacant buildings, vacant slructuras and vacant or unimproved m lots appurteecomply ee thereto shall be f. Every constremed t b N fa; to ure and of supporting the to and d that norma use n,ayry cause to be placed thereon, and tt shall be eonswcted to be safe, to use and cap maintained in sound condition and repair.: . Violation Status - Recurring OFSCRIpTION OF CONDITIONS CONSTITUTING THE ViOLATION(6). Did Witness: BUILDINGS 8640 AND 8650 HAVE STAIRWELLS IN DISREPAIR ORDER TO CORRECT VIOLATION You are directed by this MUMS to take the following corrective action(s)s Initial Inspection 1. Must Comply vAth any and all corrective action requirements noied on the Mon leatdential Property Maintenance Inspection Report ! Order to Correct ON OR 9EFORE: 02!2312017 Failure to correct violations may result in: 1) Mandatory notice to appear or issuance of a citation that may result in fines up to $508 and cot ir- of prosecution. OR 2) Code Enforcement Board review that may result in fines up to $4060 pet day per violation, as tong as the viola on remains, and costs of prosecution. INQUIRIES AND COMMENTS Sl4OULD BE SERVED BY: CODE ENFORCEMENT Inv stigator Signature/ Carmelo Gomez DIRECTED TO 2800 North HDTBeshoe Dt, Naples, FL 34104 phone: 239 252 -2440 FAX: 239 252 -2343 Signature and Title, of Recipient Printed Name of Recipient Date Packet Page -1957- Case Numb,6i' Case Type Priofity inspector 3urfsdittibn or4n Detailed oesuipdon LoC&UQri Cvrriments rr t 1 � f I ^ to �ddy*ess .. Add nEW - MQ.— to ji�k . u . . ' Packet Page -1958- 2/26/2013 16.D.12. EXHIBIT D FORM OF TERMINATION OF AFFORDABLE HOUSING DENSITY BONUS AGREEMENT This Termination of Affordable Housing Density Bonus Agreement is executed as of by the board of County Commissioners of Collier County, Florida (the "Commission ") and Saddlebrook Apartments LLC , a Florida limited liability company (the "Current Owner "). WHEREAS, the Current Owner is the assignee of that certain Affordable Housing Density Bonus Agreement dated as of December 9, 1997 as recorded in Official Records Book 2374, Page 2544 of the Public Records of Collier County, Florida, (the "Affordable Housing Density Bonus Agreement "); and WHEREAS, the Current Owner, by its execution hereof certifies, represents and warrants to the Commission that: a. The term of the Affordable Housing Density Bonus Agreement as defused therein ended on , 20_ and all conditions precedent to the Termination of the Affordable Housing Density Bonus Agreement have been fulfilled. b. All payments of any amounts due under the Affordable Housing Density Bonus Agreement are fully paid and all obligations thereunder have been met. There is currently no default under the Affordable Housing Density Bonus Agreement. WHEREAS, the Commission has authorized the execution and delivery of this Termination of Affordable Housing Density Bonus Agreement; and WHEREAS, by execution of this Termination of Affordable Housing Density Bonus Agreement by both parties, the Affordable Housing Density Bonus Agreement will be terminated as of the date of its recording in the Official Records of Collier County, Florida IN WITNESS WHEREOF, Commission and the Current Owner hereby agree to terminate the Affordable Housing Density Bonus Agreement. [SIGNATURES AND NOTARIES OF THE PARTIES] Packet Page -1959- 2/26/2013 16.D.12. RESOLUTION NO. 2013 --D-�— A RESOLUTION OF THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA, CONSENTING TO THE DISPOSITION OF THE PROJECT AS DEFINED HEREIN TO THE PURCHASER AS DEFINED HEREIN; AUTHORIZING THE FORM OF ASSIGNMENT AND ASSUMPTION OF LAND USE RESTRICTION AGREEMENT DATED AS OF DECEMBER 1, 1997 RELATING TO SADDLEBROOK VILLAGE APARTMENTS AND PROVIDING FOR CERTAIN DETAILS THEREOF, AUTHORIZING THE PROPER OFFICERS TO DO ALL THINGS NECESSARY OR ADVISABLE; AND PROVIDING AN EFFECTIVE DATE, WHEREAS, the Housing Finance Authority of Collier County, Florida (the "Issuer ") is empowered under the laws of the State of Florida, including the Florida Housing Finance Authority Law, Florida Statutes, Sections 159.601 through 159.623, as amended (the "Act "), to provide for the financing, acquisition, construction, reconstruction, and rehabilitation of housing; and WHEREAS, the Issuer and Texas Commerce Bank National Association, as trustee (the "Trustee "), entered into a Trust Indenture dated as of December 1, 1997 (the "Indenture "), pursuant to which were issued by the Issuer its $4,900,000 Multifamily Housing Revenue Bonds (Saddlebrook Project), Series 1997, (the "Bonds "); and WHEREAS, the proceeds of the Bonds were loaned (the "Loan ") to the Borrower as defined therein pursuant to a Loan Agreement, dated as of December 1, 1997 (the "Loan Agreement ") for the purpose of funding a loan to enable the Borrower to finance the costs of acquisition, construction and equipping of a 140 -unit multifamily rental housing development known as Saddlebrook Village (the "Project "), on the land located in Collier County, Florida described on Exhibit A to the Land Use Restriction Agreement as defined herein; and WHEREAS, in connection with the issuance of the Bonds, the Issuer, the Borrower and the Trustee entered into that certain Land Use Restriction Agreement dated as of December 1, 1997 and recorded in the Official Records of Collier County, Florida at Official Records Book 2374, Page 2629 (the Land Use Restriction Agreement, and hereafter, the "LURA "); and WHEREAS, the LURA provides, inter alia, that during the Qualified Project Period, as defined therein, the Borrower shall not enter into a Disposition, as defined therein, of the Project without the prior written consent of the Issuer; and WHEREAS, the Borrower and Saddlebrook Apartments LLC, a Florida limited liability company ( "Purchaser ") have entered into that certain Real Estate Purchase and Sale Agreement with Escrow Instructions dated as of February 2013 (the "Purchase and Sale Agreement "), pursuant to which Purchaser is to acquire the ownership of the Project from the Borrower; and Approving Resolution of Housing Finance Authority of Collier County adopted 2/13/13 Packet Page -1960- 2/26/2013 16.D.12. WHEREAS, Purchaser has requested the Issuer to consent to the transfer of the Project to Purchaser (a Disposition under the LURA) and enter into an Assignment and Assumption of Land Use Restriction Agreement (the "Agreement ") among the Issuer, the Purchaser and the Borrower, and WHEREAS, the LURA provides that in determining whether to consent to a Disposition the Issuer may consider the financial and managerial capability of the proposed transferee to own and operate the Project in compliance with the terms of the LURA; and WHEREAS, the Issuer has investigated the financial and managerial capability of the Purchaser as the proposed transferee; NOW THEREFORE, BE IT RESOLVED BY THE HOUSING FINANCE AUTHORITY OF COLLIER COUNTY, FLORIDA: Section 1. Consent to Disposition of Project. The Issuer hereby consents to the transfer of the Project to Saddlebrook Apartments LLC effective upon the Closing Date, and subject to the Agreement and this Resolution. As used in this Resolution, the term "Closing Date" shall mean the date the Project is conveyed by Borrower to Purchaser by deed or other appropriate instrument. Closing Date is currently expected to be February 14, 2013. Section 2. Authorization and Approval of Assignment and Assumption of Land Use Restriction Agreement. The form and content of the Agreement presented at this meeting and attached hereto as Exhibit "A" is hereby authorized and approved by the Issuer. The Chair or Vice Chair of the Issuer is hereby authorized to execute the Agreement and the Secretary or Assistant Secretary is authorized to place the Issuer's seal thereon and.attest thereto, in the form presented at this meeting, together with such changes, modifications and deletions as they, with the advice of Issuer's Counsel may deem necessary and appropriate. Such execution and delivery shall be conclusive evidence of the approval and authorization thereof by the Issuer. Section 3. Delivery of Agreement. Issuer's Counsel shall deliver the Agreement upon the satisfaction of the following conditions: (a) All requirements for transfer contained in the LURA have been met. (b) Payment has been made of all fees and expenses of the Issuer and its professionals. Section 4. Further Actions and Ratifications of Prior Actions. The officers, agents and employees of the Issuer are hereby authorized and directed to do all acts and things required of them by the provisions of the Agreement and this Resolution. All actions heretofore undertaken by the officers, agents and employees of the Issuer with respect to the provisions of the Agreement are hereby ratified and approved. Without limiting the generality of the foregoing, the appropriate officers of the Issuer are authorized to execute a Termination of Land Use Restriction Agreement ( "Termination Document ") in substantially the form attached as Exhibit B to the Agreement upon receipt from Purchaser of an executed Termination Document, 2 Packet Page -1961- Section 5 passage. 2013 (SFAT .) 2/26/2013 16.D.12. Effective Date. This Resolution shall take effect immediately upon its ADOPTED at a Special Meeting called and noticed for this purpose this 13" day of February, HOUSING FINANCE AUTORITY OF COLLIER CO:ary TY, FLO A > f By: D. Lind, Chair 3 Packet Page -1962- 2/26/2013 16.D.12. EXHIBIT "A" FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT Packet Page -1963- THIS INSTRUMENT PREPARED BY AND RETURN TO: Donald A. Pickworth, Esq. 5100 Tarniami TH N Suite 103 Naples, Florida 34103 2/26/2013 16.D.12. SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE ASSIGNMENT AND ASSUMPTION OF LAND USE RESTRICTION AGREEMENT (Saddlebrook Village Apartments) THIS ASSIGNMENT AND ASSUMPTION OF LAND USE RESTRICTION AGREEMENT (this "Agreement ") is dated as of February 2013 (the "Effective Date" as defined herein), by and among CEI /Kensington Ltd., a Florida limited partnership (the "Borrower" under the Land Use Restriction Agreement defined herein), Saddlebrook Apartments LLC, a Florida limited liability company (the "Purchaser "), and the Housing Finance Authority of Collier County, a public body corporate and politic duly created and existing under the laws of the State of Florida (the "Issuer "). WITNESSETH; WHEREAS, the Issuer has been created and organized pursuant to and in accordance with the provisions of Chapter 159, Part IV, Florida Statutes, as amended (the "Act' ), for the purpose, among others, of financing multi- family residential rental housing projects that will provide decent, safe and sanitary housing for individuals or families of low, moderate and middle income in Collier County, Florida; and WHEREAS, the Issuer and Texas Commerce Bank National Association, as trustee (the "Trustee "), entered into a Trust Indenture dated as of December 1, 1997 (the "Indenture "), pursuant to which were issued by the Issuer its $4,900,000 Multifamily Housing Revenue Bonds (Saddlebrook Project), Series 1997, (the "Bonds "); and WHEREAS, the proceeds of the Bonds were loaned (the "Loan ") to the Borrower pursuant to a Loan Agreement, dated as of December 1, 1997 (the "Loan Agreement ") for the construction purpose of funding a ]� unit mulltif multifamily rental thoutsng development knownias� Saddl brook and equipping of a 1 Packet Page -1964- 2/26/2013 16.D.12. Village (the "Project "), on the land located in Collier County, Florida described on Exhibit A to the Land Use Restriction Agreement as defined herein; and WHEREAS, the Issuer, the Borrower and the Trustee entered into that certain Land Use Restriction Agreement dated as of December 1, 1997 and recorded in the Official Records of Collier County, Florida at Official Records Book 2374, Page 2629 (the Land Use Restriction Agreement, and hereafter, the "LURA "); and WHEREAS, the LURA provides, inter alia, that during the Qualified Project Period, as defined therein, the Borrower shall not enter into a Disposition, as defined therein, of the Project without the prior written consent of the Issuer and the Credit Enhancer, as defined therein; and WHEREAS, the Borrower and Purchaser have entered into that certain Real Estate Purchase and Sale Agreement with Escrow Instructions dated as of February _, 2013 (the "Purchase and Sale Agreement "), pursuant to which the Purchaser is to acquire the ownership of the Project from the Borrower; and WHEREAS, pursuant to the requirements of the Land Use Restriction Agreement, the Purchaser has requested the Issuer to consent to the assignment of the Borrower's rights and obligations under the Land Use Restriction Agreement and the assumption of such rights and obligations by the Purchaser; and WHEREAS, the Issuer has adopted a resolution consenting to the assignment and assumption so requested and authorizing the execution and delivery of this Agreement. NOW, THEREFORE, for and in consideration of the mutual covenants, promises and agreements set forth herein, the receipt and sufficiency of which the parties hereby acknowledge, the Borrower, the Purchaser, and the Issuer agree as follows: Section 1. Definitions. All capitalized terms used in this Agreement and not otherwise defined herein shall have the same meanings as set forth in the LURA, unless the context clearly requires otherwise. Section 2. Assignment of Land Use Restriction Agreement. The Borrower assigns to the Purchaser all of the Borrower's right, title and interest in and to the LURA including, without limitation, all of the benefits, duties and obligations of the Borrower under the LURA (arising or accruing after the Effective Date), which assignment shall be effective as of the Effective Date. From and after the Effective Date, Borrower shall have no liabilities or other obligations under the LURA. Section 3. Assumption of Obligations under Land Use Restriction Agreement. From and after the Effective Date, the Purchaser hereby covenants and agrees as follows: (a) to pay and perform all obligations and liabilities, accruing from and after the Effective Date, as and when due under, and in accordance with the terms of, the LURA, whether now or hereafter existing, fixed or contingent; and (b) to be bound by and comply with all covenants, agreements, conditions, restrictions and limitations now or hereafter made by or applicable to the owner of the Project, 2 Packet Page -1965- 2/26/2013 16.D.12. pursuant to the LURA, and including the representations and warranties set forth in the LURA, accruing from and after the Effective Date, including, without limitation, the restrictions concerning the operation of the Project and the leasing of apartment units therein, The Purchaser's agreement to assume, pay, perform, be bound by and comply with, all of the obligations, liabilities, covenants, agreements, conditions, representations, warranties, restrictions and limitations referred to above shall have the same force and effect as though the Purchaser had executed and delivered the LURA as of the Effective Date. The Purchaser hereby assumes from and after the Effective Date, all liabilities and other obligations of the Borrower under, and agrees to comply with and be bound by all the covenants, agreements, conditions, representations, warranties, restrictions and limitations contained in, the LURA. Section 4, No Release of Borrower. The Borrower is not released from, and will remain fully liable for the payment of all sums, if any, and the performance of all obligations, arising prior to the Effective Date, under and in accordance with the terms of the LURA. Nothing contained in this Agreement or otherwise will prevent the Issuer from pursuing concurrently or successively all rights and remedies available to it pursuant to the LURA or at law or in equity and against any persons, firms or entities whatsoever, and the exercise of any of its rights or the completion of any of its remedies will not constitute a discharge of any obligation of the Borrower, with respect to obligations arising prior to the Effective Date, or Purchaser, with respect to obligations arising on and after the Effective Date, under the LURA or this Agreement. Section 5. Representations and Warranties of Borrower. The Borrower hereby represents and warrants to the Issuer as follows: (a) The Borrower (i) is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Florida, and (ii) has all requisite power and authority to enter into this Agreement and perform its obligations hereunder. (b) To the best of Borrower's knowledge, there have been no amendments, supplements or modifications to the LURA or to any other instruments or agreements to which the Borrower is a party or by which it is bound and which relate to the LURA. (c) The LURA is in full force and effect, and no material breaches, defaults or defenses have been asserted in writing to Borrower, or to the best of Borrower's knowledge are in existence under the LURA by any of the parties thereto (including the Borrower) and, to the best of Borrower's knowledge, no facts or circumstances exist which, with the giving of notice or the passage of time, or both, would constitute a material breach or violation of, or default under, the LURA by the Borrower or any other party thereto. Notwithstanding the representations and warranties made by the Seller pursuant to this Section 5(c), Seller has received notice of the deficiencies and non - compliance issues set forth the in (1) that certain January 25, 2013 letter from Bridget Tracy of First Housing and accompanying 2012 Annual Management Review, and (2) that certain Collier County Code enforcement Notice of Violation date stamped January 2, 2013, a copy of which is attached as Exhibit "C" hereto (collectively, the "Non - Compliance Issues "). (d) To Borrower's knowledge, and other than with regard to the Non- Packet Page -1966- 2/26/2013 16.D.12. Compliance Issues, (i) Borrower has complied with and fulfilled all of the requirements of and has satisfied all conditions under the LURA, in connection with the transactions described in this Agreement and all of the conditions precedent thereto as described in the LURA, and (ii) Borrower has not received any invoice or statement that there are any fees and other amounts payable to the Issuer under the LURA which are currently due and payable or which have accrued but are unpaid. (e) The execution and delivery by the Borrower of this Agreement, and the compliance by the Borrower with all of the provisions hereof and of the LURA (i) are within the power of the Borrower, (ii) will not conflict with or result in any breach of any of the provisions of, or constitute a default under, or result in the creation of any lien, charge or encumbrance upon any property of the Borrower under the provisions of, Borrower's partnership agreement or any other agreement or instrument to which the Borrower is a party or by which it may be bound, or any Iicense, judgment, decree, law, statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over the Borrower or any of its activities or properties, and (iii) have been duly authorized in accordance with the organizational documents of Borrower. Section 6 Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants, as of the date hereof, to the Borrower and the Issuer as follows: (a) The LURA has been reviewed by the Purchaser and its counsel. The Purchaser is knowledgeable about the Project and has made an independent investigation of all facts and circumstances deemed relevant to it in connection with the acquisition of the Project and has reviewed and is familiar with all of the terms, provisions and conditions of the LURA and all of the obligations thereunder which have been assumed in their entirety by the Purchaser under this Agreement. (b) The Purchaser has obtained all consents, authorizations and approvals from all governmental agencies and other authorities necessary for its acquisition of the Project. The Issuer approved the transfer of the Project to the Purchaser, subject to this Agreement, at the Issuer's meeting of February 13, 2413. (c) The Purchaser represents to the Issuer that: (i) it has all requisite power and authority and all necessary licenses and permits to own and operate its properties and to carry on its business as now conducted, including, without Iimitation, its acting as owner of the Project; (ii) it has full power, authority and legal right to enter into, execute and deliver this Agreement and to assume and perform the obligations under the LURA, and to engage in the transactions contemplated thereby; (iii) it has the creditworthiness and the management ability to operate the Project in the manner contemplated by the LURA; Packet Page -1967- 2/26/2013 16.D.12. (iv) the correct legal name of the Purchaser is Saddlebrook Apartments LLC, and it has been properly organized under the laws of the State of Florida and is in good standing in such state as of the date hereof, and is legally authorized to do business in Florida. Section 7, Representations and Warranties of the Issuer. The Issuer hereby represents and warrants, as of the date hereof, as follows: (a) A copy of the LURA is attached hereto as Exhibit A. The LURA has not to the best knowledge of the Issuer, without inquiry, been altered, supplemented, assigned, modified or amended in any respect. (b) The Issuer has received all amounts payable to it under the LURA and, to the knowledge of the Issuer without inquiry, the Borrower is neither in default under or in breach or violation of any other covenant or condition under the LURA. The Issuer has neither given nor received, to its knowledge without inquiry, notice of any default under the LURA. (c) To the Issuer's knowledge (without inquiry), there exists no pending or threatened action, suit, proceeding or investigation (and the Issuer is not aware of any basis therefor) in any way related to or affecting the LURA in any court or before any arbitrator of any kind or before or by any federal, state or local governmental entity, agency, bureau or other body, including, without limitation, any action, suit, proceeding or investigation questioning the exemption of interest on the Bonds from gross income for federal income tax purposes or any action, suit, proceeding or investigation alleging a violation of any federal or state securities laws or regulations. Section 8. Additional Covenants. Purchaser additionally covenants with the.Issuer as follows: (a) The Purchaser hereby agrees to pay all fees, costs and expenses incurred by the issuer (including, but not limited to, reasonable attorneys' fees, financial advisory fees and credit underwriting fees) in connection with the preparation and delivery of this Agreement and any other documents executed simultaneously herewith. (b) Purchaser additionally covenants with the Issuer as follows: (i) it acknowledges that it has acquired the Project subject to the restrictions and limitations of the LURA. The Purchaser further agrees and acknowledges that any subsequent transfer of the Project, or interests in the Project, prior to the expiration of the Tenn of Agreement per Section 10 of the LURA, must be approved by the Issuer pursuant to the LURA. (ii) Purchaser acknowledges that it will, as part of the acquisition of the Project, enter into an Assignment and Assumption of and Second Amendment to Packet Page -1968- 2/26/2013 16.D.12. Extended Low - Income Housing Agreement among Borrower, Purchaser, and Florida Housing Finance Corporation (the "Florida Housing Agreement ")) which provides, among other things, for the monitoring of Purchaser's compliance under the terms of the Florida Housing Agreement. Purchaser shall, promptly upon receipt, provide Issuer with a copy of any and all reports, reviews, or any other written communications it receives from Florida Housing or First Housing as Compliance Agent under the Florida Housing Agreement. In addition, Purchaser shall provide Issuer with copies of any notices of violation, or any other documents in connection with any Collier County code enforcement proceedings. (iii) it agrees to notify the Issuer sixty (60) days prior to any change in the legal name, address, organization or structure of the registered entity constituting the Purchaser. (iv) Notwithstanding anything in this Agreement to the contrary, Purchaser acknowledges (i) the existence of the Non - Compliance Issues as defined in Section 5(c) hereof and (ii) Purchaser's receipt of notice of such Non- Compliance Issues and agrees that it assumes all obligations, duties, responsibilities, and liabilities for such Non - Compliance Issues and for the curing of such Non - Compliance Issues to the satisfaction of Florida Housing and First Housing Development Corporation on or before April 25, 2013. Section 9. Assumption of Fees, Costs, Etc. The Purchaser acknowledges that for the time period from and after the Effective Date, the Purchaser will be responsible for the payment of all fees, costs and payments due in accordance with the LURA and assumed thereunder and first arising during such time period, including, without limitation, all fees due and payable to the Issuer. ,Section 10. Authorization by the Issuer. Based upon the representations, warranties and agreements set forth herein, and in material reliance thereon by the Issuer, the Issuer has authorized the execution of this Agreement and hereby consents to the transfer of the Project to the Purchaser. By executing this Agreement, the Issuer acknowledges that all conditions necessary for the approval of the transfer have been satisfied. Section 11. Authority. The signatories to this Agreement represent that they have the requisite capacity and Authority to execute this Agreement and to assume the obligations referenced herein. Section 12. Notices, Any notices regarding this Agreement or the LURA will be provided to: Borrower: CEI/Kensington Limited c/o Cascade Saddlebrook LLC 5055 Keller Springs Road, #400 Addison, Texas 75001 Attention: Ted Broadfoot Packet Page -1969- 2/26/2013 16.D.12. And with a copy to: Riemer & Braunstein LLP 3 Center Plaza Boston, Massachusetts 02108 Attention: Douglas K. Clarke and Lehman "tax Credit Advisor Inc. c/o Lehman Brothers Holdings Inc. 1271 Avenue of the Americas 39`h Floor New York, New York 10020 Attention: Joelle Halperin To Purchaser: Saddlebrook Apartments LLC 625 Court Street Clearwater, Florida 33756 Attn: Thomas C. Nash, II, Esquire With a copy to: Macfarlane Ferguson & McMullen 625 Court Street Clearwater, Florida 33756 Attention: Thomas C. Nash 11, Esquire To Escrow Agent: First American Title Insurance Company c/o Christopher Lachance 7360 Bryan Dairy Road Suite 200 Largo, Florida 33777 Fax: (727) 549 -3422 To Issuer: Housing Finance Authority of Collier County, Florida 5100 Tamiami Trail North, Suite 103 Naples, Florida 34103 Attention: Donald A Pickworth, General Counsel Section 13. Miscellaneous. This Agreement will be construed in accordance with Florida law and will be recorded at Borrower's expense in Collier County, Florida. The recordation of this Agreement is not intended to affect the priority of the LURA and the Purchaser specifically agrees that the LURA is senior in status and priority to any other claims or liens against the Project. In the event that any party should have to retain counsel to enforce the terms of this Agreement, the prevailing party shall be entitled to recover their costs including a reasonable fee for the legal services rendered on its behalf. 7 Packet Page -1970- 2/26/2013 16.D.12. Section 14. Effective Date, This Agreement shall become effective upon the recording of a Special Warranty Deed conveying the Project to the Purchaser (the "Effective Date "). Section 15. Termination. Upon termination of the LURA, the Purchaser and the Issuer will execute and record a Termination of Land Use Restriction Agreement in substantially the form attached hereto as Exhibit C. Section 16 Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns. Section 17. Counterparts. This Agreement may be executed in counterparts, and all counterparts together shall be construed as one document. Section 18. Governing Law. This Agreement shall be governed by the laws of the State of Florida, without regard to principles of conflicts of law. Section 19, Incorporation of Recitals. The recitals set forth herein are true and correct and are incorporated herein. Section 20. Severability. If any covenant, condition, term, or provision contained in this Agreement is held to be invalid by final judgment of any court of competent ,jurisdiction, the invalidity of such covenant, condition, term, or provision shall not. in any way affect any other covenant, condition, term, or provision contained in this Agreement. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Packet Page -1971- 2/26/2013 16.D.12. COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION OF LAND USE RESTRICTION AGREEMENT (Saddlebrook Apartments Project) IN WITNESS WHEREOF, the Issuer, the Borrower and the Purchaser have executed this Assignment and Assumption of Land Use Restriction Agreement as of the Effective Date. HOUSING FINANCE AUTORITY OF COLLIER COUNTY, FLORIDA Witnesses: By: Gary D. Lind, Chair Printed Name: Printed Name: [SEAL] Witnesses: Attest: Bv: Printed Name: Printed Name: STATE OF FLORIDA COUNTY OF COLLIER George C. Mohike, Jr., Secretary The foregoing instrument was executed and acknowledged before me this day of February, 2013, by Gary D. Lind and George C. Mohike, Jr., as Chair and Secretary respectively of the Housing Finance Authority-of Collier County, Florida, who executed the foregoing instrument and acknowledged to me that they did such on behalf of the Issuer. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year in this instrument first above written. NOTARY PUBI.,IC —State of Florida Personally Known OR Produced Identification Type of Identification Produced: Print, Type or Stamp Commissioned Name of Notary Public My Commission Expires: S -1 Packet Page -1972- 2/26/2013 16.D.12. COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION OF LAND USE RESTRICTION AGREEMENT (Saddlebrook Apartments Project) Borrower CEI /Kensington, a Florida limited partnership BY: Cascade Saddlebrook LLC., a Washington limited liability company, its general partner Witnesses: Printed Name: Printed Name: STATE OF COUNTY OF Name: Title: The foregoing instrument was executed and acknowledged before me this _ day of , 2013, by , as of , the , who executed the foregoing instrument and acknowledged to me that he did such on behalf of the IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year in this instrument first above written. NOTARY PUBLIC — State of Personally Known OR Print, Type or Stamp Commissioned Produced Identification _ Name of Notary Public Type of Identification Produced: My Commission Expires: S -2 Packet Page -1973- 2/26/2013 16. D.12. COUNTERPART SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMP'T'ION OF LAND USE RESTRICTION AGREEMENT ( Saddlebrook Apartments Project) Saddlebrook Apartments LLC, a Florida limited liability company Witnesses: Printed Name: Printed Name: STATE OF _ COUNTY OF Name: Title: The foregoing instrument was executed and acknowledged before me this , day of , 2013, by , as of , the , who executed the foregoing instrument and acknowledged to me that he did such on behalf of the IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year in this instrument first above written. NOTARY PUBLIC — State of Personally Known Print, Type or Stamp Commissioned OR Produced Identification _ Name of Notary Public Type of Identification Produced: My Commission Expires: S -3 Packet Page -1974- 2/26/2013 16.D.12. EXHIBIT A RECORDED COPY OF LAND USE RESTRICTION AGREEMENT Packet Page -1975- 2/26/2013 16.D.12. EXIiIBIT B FORM OF TERMINATION OF LAND USE RESTRICTION AGREEMENT This Termination of Land Use Restriction Agreement is executed as of by the Housing Finance Authority of Collier County, Florida (the "Issuer ") and Saddlebrook Apartments LLC , a Florida limited liability company (the "Current Owner "). WHEREAS, the Current Owner is the assignee of that certain Land Use Restriction Agreement dated as of December 1, 1997 as recorded in Official Records Book 2374, Page 2629 of the Public Records of Collier County, Florida, (the "Land Use Restriction Agreement "); and WHEREAS, the Current Owner, by its execution hereof certifies, represents and warrants to the Issuer that: a. The Qualified Project Period as defined in the Land Use Restriction Agreement ended on 20— and all conditions precedent to the Termination of the Land Use Restriction Agreement have been fulfilled. b. All payments of any amounts due under the Land Use Restriction Agreement are fully paid and all obligations thereunder have been met. There is'currently no default under the Land Use Restriction Agreement. WHEREAS, the Issuer has authorized the execution and delivery of this Termination of Land Use Restriction Agreement; and WHEREAS, by execution of this Termination of Land Use Restriction Agreement by both parties, the Land Use Restriction Agreement will be terminated as of the date of its recording in the Official Records of Collier County, Florida IN WITNESS WHEREOF, Issuer and the Current Owner hereby agree to terminate the Land Use Restriction Agreement. [SIGNATURES AND NOTARIES OF THE PARTIES] Packet Page -1976-