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Agenda 04/09/2024 Item #16D 2 (Chairman to sign a subordination agreement with Habitate for Humanity )04/09/2024 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sign a subordination agreement with Habitat for Humanity of Collier County, Inc., to subordinate the County’s Home Investment Partnership Act and the Community Development Block Grant mortgages and Declaration of Restrictive Covenants due to lien position order. OBJECTIVE: To provide affordable housing throughout Collier County. CONSIDERATIONS: The U.S. Department of Housing and Urban Development (HUD) provides HOME Investment Partnership (HOME) and Community Development Block Grant (CDBG) funds to address program- specific needs identified in the community. On January 19, 2024, Habitat for Humanity of Collier County (HHCC) or Borrower executed the following mortgages and restrictions that encumber the Property: Unit No. 106, Building 3 of SONGBIRD AT WHIPPOORWILL, a Condominium, according to the Declaration of Condominium recorded in O.R. Book 6237, Page 3628, amended to add Phase 3 recorded in O.R. Book 6259, Page 107, all exhibi ts and amendments thereof, Public Records of Collier County, Florida: • Home Investment Partnership Act (HOME) Subordinate Mortgage in favor of Collier County, recorded January 26, 2024, at OR Book 6324, Page 2523 (the “HOME Mortgage”); • Declaration of Restrictive Covenants in favor of Collier County, recorded January 26, 2024, at OR Book 6324, Page 2530 (the “Restrictions”); • Community Development Block Grant (CDBG) Purchase Assistance Subordinate Mortgage in favor of Collier County, recorded January 26, 2024, at OR Book 6324, Page 2533 (the “CDBG Mortgage”); and • Purchase Money Mortgage in favor of Habitat for Humanity of Collier County (HHCC), recorded February 5, 2024, at OR Book 6327, Page 1608 (the “First Mortgage”); During the time HHCC was recording the Mortgage documents an upload error occurred and the First Mortgage did not get uploaded in the electronic recording software that HHCC uses. The error was not detected for ten (10) days and the First Mortgage document was then uploaded and recorde d. The subordination agreement is being requested to allow HHCC’s First Mortgage to be moved into the correct position and the HOME, CDBG mortgages, and Declaration of Restrictive Covenants to be subordinate. FISCAL IMPACT: This action has no Fiscal impact. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for Board approval. -DDP GROWTH MANAGEMENT IMPACT: The signature of the Subordination Agreement will allow the County to expand affordable housing opportunities for its citizens and further the goals of the Collier County Growth Management Plan. RECOMMENDATION: To approve and authorize the Chairman to sign a subordination agreement with Habitat for Humanity of Collier County, Inc., to subordinate the County’s Home Investment Partnership Act and the Community Development Block Grant mortgages and Declaration of Restrictive Covenants due to lien position order. Prepared By: Wendy Klopf, Grants Coordinator, Community & Human Services Division 16.D.2 Packet Pg. 1092 04/09/2024 ATTACHMENT(S) 1. Habitat _ Morgan - Subordination Agreement - #23822959 v1 DDP (PDF) 16.D.2 Packet Pg. 1093 04/09/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.2 Doc ID: 28175 Item Summary: Recommendation to approve and authorize the Chairman to sign a subordination agreement with Habitat for Humanity of Collier County, Inc., to subordinate the County’s Home Investment Partnership Act and the Community Development Block Grant mortgages and Declaration of Restrictive Covenants due to lien position order. Meeting Date: 04/09/2024 Prepared by: Title: Operations Coordinator – Community & Human Services Name: Wendy Klopf 02/27/2024 3:41 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 02/27/2024 3:41 PM Approved By: Review: Community & Human Services Lisa Carr PSD Reviewer Completed 02/28/2024 8:09 AM Community & Human Services Dharam Nohar PSD Reviewer Completed 02/28/2024 8:38 AM Community & Human Services Kim Frazier PSD Reviewer Completed 02/29/2024 4:55 PM Community & Human Services Vanessa Collier PSD Reviewer Completed 03/01/2024 7:08 AM Operations & Veteran Services Jeff Weir OVS Director Review Completed 03/01/2024 8:35 AM Community & Human Services Kristi Sonntag CHS Review Completed 03/12/2024 6:00 AM Public Services Department Todd Henry Level 1 Department Review Completed 03/19/2024 12:59 PM Grants Erica Robinson Level 2 Grants Review Completed 03/21/2024 8:24 AM County Attorney's Office Derek D. Perry Level 2 Attorney Review Completed 03/27/2024 11:08 AM Public Services Department Tanya Williams PSD Department Head Review Completed 04/01/2024 2:49 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/01/2024 2:54 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/01/2024 3:14 PM Office of Management and Budget Blanca Aquino Luque OMB Reviewer Completed 04/02/2024 9:44 AM Grants Therese Stanley OMB Reviewer Completed 04/02/2024 11:04 AM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 04/02/2024 1:15 PM Board of County Commissioners Geoffrey Willig Meeting Pending 04/09/2024 9:00 AM 16.D.2 Packet Pg. 1094 THIS INSTRUMENT PREPARED BY: W.Jeffrey Cecil, Esq. Porter Wright Morris & Arthur LLP 9132 Strada Place, Suite 301 Naples, Florida 34108 Parcel ID Number: 73744000526 SUBORDINATION AGREEMENT THIS SUBORDINATION AGREEMENT is given this ____ day of ______________, 2024 by and between Collier County, a political subdivision of the State of Florida, hereinafter “Collier County”, in favor of Habitat for Humanity of Collier County, Inc., a Florida not for profit corporation, hereinafter "HHCC". W I T N E S S E T H: WHEREAS, Jasmine Shyvette Morgan, hereinafter “Borrower”, is the owner of the real property described as: Unit No. 106, Building 3 of SONGBIRD AT WHIPPOORWILL, a Condominium, according to the Declaration of Condominium recorded in O.R. Book 6237, Page 3628, amended to add Phase 3 recorded in O.R. Book 6259, Page 107, all exhibits and amendments thereof, Public Records of Collier County, Florida (the “Property”). WHEREAS, on January 19, 2024, Borrower executed the following mortgages and restrictions that encumber the Property: Home Investment Partnership Act (HOME) Subordinate Mortgage in favor of Collier County, recorded January 26, 2024 at OR Book 6324, Page 2523 (the “HOME Mortgage”); Declaration of Restrictive Covenants in favor of Collier County, recorded January 26, 2024 at OR Book 6324, Page 2530 (the “Restrictions”); Community Development Block Grant Purchase Assistance Subordinate Mortgage in favor of Collier County, recorded January 26, 2024 at OR Book 6324, Page 2533 (the “CDBG Mortgage”); and Purchase Money Mortgage in favor of HHCC, recorded February 5, 2024 at OR Book 6327, Page 1608 (the “First Mortgage”); all in the Public Records of Collier County, Florida; and WHEREAS, the HOME Mortgage, the Restrictions, and the CDBG Mortgage (collectively, the “County Mortgages”) were each intended to be subordinate to the First Mortgage; and WHEREAS, the First Mortgage was erroneously and inadvertently recorded subsequent to the County Mortgages; and WHEREAS, HHCC has requested that Collier County subordinate the County Mortgages to the First Mortgage, to which request Collier County has agreed. NOW, THEREFORE, in consideration of TEN DOLLARS ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Collier County hereby consents to and does hereby subordinate the liens of the County Mortgages in favor of the lien of the First Mortgage, as if such lien had been granted to HHCC prior to execution and recordation of the County Mortgages. IN WITNESS WHEREOF, the parties have set their hand and seal the date and year first written above. COLLIER COUNTY, a political subdivision of the State of Florida BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: ____________________________________ Chris Hall, Chairman Attest: CRYSTAL K. KINZEL, CLERK By: _________________________ Deputy Clerk Approved as to form and legality: ______________________________ Derek D. Perry Assistant County Attorney 2/26/2024CAO16.D.2.a Packet Pg. 1095 Attachment: Habitat _ Morgan - Subordination Agreement - #23822959 v1 DDP (28175 : HfH-Subordiantion Agreement) HABITAT FOR HUMANITY OF COLLIER COUNTY, INC., a Florida not for profit corporation Print Witness Name: Print Witness Address: ________________________ ___________________________________________ By: Lisa B. Lefkow Title: Chief Executive Officer Print Witness Name: Print Witness Address: ________________________ ___________________________________________ STATE OF FLORIDA COUNTY OF COLLIER The foregoing instrument was acknowledged before me by means of [ ] physical presence or [ ] remote online notarization this ___ day of ______________, 2024, by Lisa B. Lefkow, as Chief Executive Officer of Habitat for Humanity of Collier County, Inc., a Florida not for profit corporation, [ ] who is personally known to me, or [ ] who has produced __________________ as identification. (SEAL) Notary Public, State of Florida My Commission Expires: 23822959v1 CAO16.D.2.a Packet Pg. 1096 Attachment: Habitat _ Morgan - Subordination Agreement - #23822959 v1 DDP (28175 : HfH-Subordiantion Agreement)