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Agenda 04/23/2024 Item #16D 2 (Habitat for Humanity of Collier County, Inc. increasing SHIP grand award)04/23/2024 EXECUTIVE SUMMARY Recommendation to approve and authorize the Chairman to sign (1) an amended agreement with Habitat for Humanity of Collier County, Inc., to increase grant award funding for the State Housing Initiatives Partnership New Construction Assistance program from $2,000,000 to $3,500,000, and (2) a release of the Sponsor’s promissory note and mortgage following construction and sale to an eligible homebuyer. (SHIP Grant Fund 1053) OBJECTIVE: To continue to support comprehensive affordable housing opportunities for very low-, low-, and moderate-income persons through the State Housing Initiatives Partnership (SHIP) Program. CONSIDERATIONS: The William E. Sadowski Affordable Housing Act provides funding to local communities to promote and advance affordable housing initiatives. Funds are generated through documentary stamp tax on real estate transactions. Under the SHIP Program, Collier County and the City of Naples receive funds from the State of Florida through the Florida Housing Finance Corporation to undertake eligible activities. On April 26, 2022, Agenda Item #16.D.3, the Board of County Commissioners (Board) adopted the SHIP 2022- 2025 Local Housing Assistance Plan (LHAP). This LHAP includes the New Construction Assistance Strategy. The strategy allows the County to use SHIP funds for the construction of new affordable housing for very low -, low-, and moderate-income households. The Sponsor will receive $50,000 per completed housing unit upon receipt of a certificate of occupancy. The Sponsor will sell each housing unit to a Collier County referred applicant. Staff advertised the annual funding cycle and a request for an application commencing on January 10, 2023, and ending on February 20, 2023, to secure a non-profit organization to implement the New Construction Assistance program. Community and Human Services Division (CHS) received (1) application in response to this solicitation. On March 15, 2023, a review and ranking panel interviewed the applicant and recommended a $2,000,000 award to the Sponsor. Staff advertised a second funding cycle and a request for application commencing November 1, 2023 and ending on November 22, 2023, to secure a non-profit organization to receive additional funding for the New Construction Assistance program. CHS received one application in response to this solicitation from Habitat for Humanity of Collier County, Inc. (Sponsor). On December 20, 2023, a review and ranking panel interviewed the Sponsor and recommended an increase in the award amount by an additional $1,500,000. The Sponsor operates as a non-profit in Southwest Florida serving very low- and low-income families. The Sponsor Amendment will provide $3,500,000 to construct up to seventy (70) affordable housing units for family income categories that are at or below the Low-Income Area Median Income (80% AMI). The Sponsor will be responsible for site selection and construction. The SHIP funds will be secured against individual homesites with $50,000 promissory notes and mortgages in favor of Collier County, up totaling up to $3,500,000. Should the property not sell within one (1) year from the date of the certificate of occupancy, the Sponsor will be required to repay the County its investment. Staff is requesting that upon construction and sale of an individual homesite to a homeowner, the Board authorize the Chairman to release the $50,000 promissory note and mortgage against the Sponsor and to allow a new $50,000 mortgage and promissory note to be recorded against the new homeowner in favor of the County, to be executed at the time of closing. FISCAL IMPACT: There is no new fiscal impact associated with this item. The funds are available in SHIP Grant Fund (1053), Project 33863. LEGAL CONSIDERATIONS: This item has been approved for form and legality and requires a majority vote for Board approval. -DDP GROWTH MANAGEMENT IMPACT: Acceptance of these agreements will allow the County to expand 16.D.2 Packet Pg. 964 04/23/2024 affordable housing opportunities for its citizens and further the goals of the Housing Element of the Collier County Growth Management Plan. RECOMMENDATION: To approve and authorize the Chairman to sign (1) an amended agreement with Habitat for Humanity of Collier County, Inc., to increase grant award funding for the State Housing Initiatives Partnership New Construction Assistance program from $2,000,000 to $3,500,000, and (2) a release of the Sponsor’s promissory note and mortgage following construction and sale to an eligible homebuyer. Prepared By: Wendy Klopf Grants Coordinator I, Community and Human Services Division ATTACHMENT(S) 1. SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (PDF) 2. SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (PDF) 3. HFH Sponsor $50K Note CA TEMPLATE 1.0 (PDF) 4. HFH Sponsor $50k Mortgage CA TEMPLATE 1.0 (PDF) 16.D.2 Packet Pg. 965 04/23/2024 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.2 Doc ID: 28348 Item Summary: Recommendation to approve and authorize the Chairman to sign (1) an amended agreement with Habitat for Humanity of Collier County, Inc., to increase grant award funding for the State Housing Initiatives Partnership the New Construction Assistance program from $2,000,000 to $3,500,000, and (2) a release of the Sponsor’s promissory note and mortgage following construction and sale to an eligible homebuyer. Meeting Date: 04/23/2024 Prepared by: Title: Operations Coordinator – Community & Human Services Name: Wendy Klopf 03/18/2024 3:31 PM Submitted by: Title: Manager - Federal/State Grants Operation – Community & Human Services Name: Kristi Sonntag 03/18/2024 3:31 PM Approved By: Review: Community & Human Services Kim Frazier PSD Reviewer Completed 03/20/2024 11:27 AM Community & Human Services Vanessa Collier PSD Reviewer Completed 03/20/2024 4:54 PM Community & Human Services Kristi Sonntag CHS Review Completed 03/21/2024 11:31 AM Community & Human Services Dharam Nohar PSD Reviewer Completed 03/21/2024 2:21 PM Operations & Veteran Services Jeff Weir OVS Director Review Completed 03/25/2024 1:54 PM Public Services Department Todd Henry Level 1 Department Review Completed 03/26/2024 10:59 AM Grants Erica Robinson Level 2 Grants Review Completed 03/29/2024 1:14 PM Public Services Department Tanya Williams PSD Department Head Review Completed 04/11/2024 2:15 PM County Attorney's Office Derek D. Perry Level 2 Attorney Review Completed 04/12/2024 11:46 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/12/2024 12:03 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/12/2024 2:42 PM Grants Therese Stanley OMB Reviewer Completed 04/15/2024 9:04 AM Office of Management and Budget Blanca Aquino Luque OMB Reviewer Completed 04/15/2024 9:46 AM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 04/15/2024 10:16 AM Board of County Commissioners Geoffrey Willig Meeting Pending 04/23/2024 9:00 AM 16.D.2 Packet Pg. 966 Grant -SHIP FY 2023-2024 A2:reement#: SHCON-23-001 Activity: SHIP New Construction Assistance SPONSOR: Habitat for Humanity of Collier Countv, Inc. CSFA #: 40.901 Total Award Amount: $2,000,000.00 $3 500.000.00 UEI #: MLUZYT83P4Z9 FEIN: 59-1834379 Period of Performance: July 1, 2023 through June 30, 2026 Fiscal Year End: June 30th Monitorin2: End: September 30, 2026 FIRST AMENDMENT TO AGREEMENT BETWEEN COLLIER COUNTY AND HABITAT FOR HUMANITY OF COLLIER COUNTY, INC. New Construction Assistance Program THIS AMENDMENT is made and entered into this ___ day of ______ , 2024, by and between Collier County, a political subdivision of the State of Florida, (COUNTY) having its principal address as 3339 Tamiami Trail East, Suite 213, Naples FL 34112, and Habitat for Humanity of Collier County, Inc. (SPONSOR), a not-for-profit corporation existing under the laws of the State of Florida, having its principal office at 11145 Tamiami Trail East, Naples, FL 34113. WITNESS ETH WHEREAS, the Fiscal Year 2022-2025 Local Housing Assistance Plan, as amended, was adopted by the Board of County Commissioners on April 26, 2022, Resolution No. 2022-68A and WHEREAS, on October 10, 2023, Agenda Item 16.D.3, the County entered into an Ag reement with Habitat for Humanity of Collier County, Inc. to administer the State Housing Initiatives Partnership (SHIP) New Construction Assistance program; and WHEREAS, the parties wish to further amend the Agreement to increase the total funding amount. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree to amend the Agreement as set forth below. I lah11a1 h,, I lu111a,u1, nrl'oll,cr lnunt,. Inc SIIO>N-:'3-11111 SI !IP NL'\\ ( ·on:-.lrm:t1on .,\�s1st;.11wc 16.D.2.a Packet Pg. 967 Attachment: SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.a Packet Pg. 968 Attachment: SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.a Packet Pg. 969 Attachment: SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.a Packet Pg. 970 Attachment: SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.a Packet Pg. 971 Attachment: SHIP HfH First Amendment FY 2023-2024 New Construction-Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 972 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 973 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 974 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 975 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 976 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 977 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 978 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 979 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 980 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 981 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 982 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 983 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 984 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 985 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 986 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 987 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 988 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 989 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 990 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 991 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 992 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 993 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 994 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 995 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 996 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 997 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 998 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 999 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 1000 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 1001 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 1002 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 1003 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 16.D.2.b Packet Pg. 1004 Attachment: SHIP-2023-2024-NEW CONSTRUCTION ASSISTANCE Agreement_Executed (28348 : HFH-SHCON 2023-2024 AMENDMENT) 1 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM PROMISSORY NOTE Borrower: Habitat for Humanity of Collier County, Inc. 1234 Any St Naples FL 341000 (Property Address) City) (State) (Zip) 1. BORROWER(S) PROMISE TO PAY: I/We promise to pay Fifty Thousand and 00/100 Dollars ($50,000.00) (this amount will be called "principal") to the order of Collier County-SHIP or to any other holder of this Note (the "Lender"), whose address is 3339 E. Tamiami Trail, Naples, Florida 34112. I/We understand that the Lender may transfer the Promissory Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Note Holder". 2. INTEREST: Interest on this Note shall be zero percent (0%) per annum from the date until I/We pay it in full. 3. PAYMENTS: Payment in full is due upon sale of the property or title transfer to a non-SHIP qualified buyer, or if the borrower fails to comply with the terms of the Construction Assistance agreement dated October 10,2023. If borrower sells or transfers title to a SHIP qualified buyer, borrower shall have no further obligation hereunder and the mortgage shall be released. My/Our total payment shall be U.S. $50,000.00. 4. BORROWER'S RIGHT TO PREPAY: I/We have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment". When I/We make a prepayment, I/we will tell the Note Holder in writing that I/we am doing so. I/We may make a full prepayment or partial prepayment charge. The Note Holder will use all of my prepayments to reduce the amount of the principal that I owe under this Note. If I/We make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. If I/We make a partial prepayment, there will be no prepayment penalty adhering to or associated with such prepayment. 5. LOAN CHARGES: If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits; then (i) any such loan charges shall be reduced by the amount necessary to reduce the charges to the permitted limit; and (ii) any sums already collected from me which exceeded permitted limits will be refunded to me/us. The Note Holder may choose to make this refund by reducing the principal that I/We owe under this Note or by making a direct payment to me/us. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. SUBORDINATION: Lender and Borrower acknowledge and agree that this Security Instrument is subject and subordinate in all respects to the liens, terms, covenants and conditions of the First Deed of Trust and to all advances heretofore made or which may hereafter be made pursuant to the First Deed of Trust including all sums advanced for the purpose of (a) protecting or further securing the lien of the First Deed of Trust, curing defaults by the Borrower under the First Deed of Trust or for any other purpose expressly permitted by the First Deed of Trust or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Property. The terms and provisions of the First Deed of Trust are paramount and controlling, and they supersede any other terms and provisions hereof in conflict therewith. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low- or moderate-income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. Further, if the Senior Lien Holder acquires title to the Property pursuant to a deed in lieu of foreclosure, the lien of this Security Instrument shall automatically terminate upon the Senior Lien Holder's acquisition of title, provided that (i) the Lender has been given written notice of a default under the First Deed of Trust and (ii) the Lender shall not have cured the default under the First Deed of Trust within the 30-day period provided in such notice sent to the Lender. 7. BORROWER(S) FAILURE TO PAY AS REQUESTED: (A) Default If I/we do not pay the full amount as required in Section 3 above, I/we will be in default. If I am in default, the Note Holder may bring about any actions not prohibited by applicable law and require me/us to pay the Note Holder's cost and expenses as described in (B) below. (B) Payment of Note Holder's Cost and Expenses 16.D.2.c Packet Pg. 1005 Attachment: HFH Sponsor $50K Note CA TEMPLATE 1.0 (28348 : HFH-SHCON 2023-2024 AMENDMENT) 2 If the Note Holder takes such actions as described above, the Note Holder will have the right to be paid back for all of its costs and expenses, including, but not limited to, reasonable attorneys' fees. 8. GIVING OF NOTICES: Unless applicable law required a different method, any notice that must be given to me/us under the Note will be given by delivering it or by mailing it by first class mail to me at the Property Address on Page 1 or at a different address if I/we give the Note Holder a notice of my/our different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) or at a different address if I/we have been given a notice of that different address. 9. OBLIGATIONS OF PERSONS UNDER THIS NOTE: If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person, who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 10. WAIVERS: I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 11. UNIFORM SECURED NOTE: This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protection given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I/we do not keep the promises which I/we make in this Note. That Security Instrument describes how and under what conditions I/we may be required to make immediate payment in full of all amounts I/we owe under this Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower: If all or any part of the property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred And Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full or all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than thirty (30) days from the date the notice is delivered or mailed, within which Borrower must pay all sums secured by this Security Instrument. If Borrower(s) fail to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. Notwithstanding the above, the Lender's rights to collect and apply the insurance proceeds hereunder shall be subject and subordinate to the rights of the Senior Lien Holder to collect and apply such proceeds in accordance with the First Deed of Trust. 12. This note is governed and construed in accordance with the Laws of the State of Florida. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. _____________________________________________________ _______ Officer Signature Print Name, Title Date ======================================================================================= RETURN TO: Collier County Community and Human Services SHIP NEW CONSTRUCTION ASSISTANCE PROGRAM 3339 E. Tamiami Trail, Building H, Suite 211 Naples, Florida 34112 SHIP File#:21-0XXCA 16.D.2.c Packet Pg. 1006 Attachment: HFH Sponsor $50K Note CA TEMPLATE 1.0 (28348 : HFH-SHCON 2023-2024 AMENDMENT) Prepared by and return to: Wendy Klopf Collier County Community and Human Services Division 3339 E. Tamiami Trail, Building H, Suite 211 Naples, Florida 34112 STATE HOUSING INITIATIVES PARTNERSHIP (SHIP) PROGRAM MORTGAGE THIS SECOND MORTGAGE ("Security Instrument") is given on _______ day of ______________________________, 2022. The Mortgagor is: Habitat for Humanity of Collier County, Inc. This Security Instrument is given to Collier County - SHIP ("Lender"), which is organized and existing under the laws of the United States of America, and whose address is 3339 E. Tamiami Trail, Naples, Florida 34112. Borrower owes Lender the sum of Fifty Thousand and 00/100 Dollars ($50,000.00). This debt is evidenced by Borrower's Note dated the same date as this Security Instrument ("Second Mortgage"), which does not provide for monthly payments. The full debt, if not paid earlier, is due upon sale of the property or title transfer to a non-SHIP qualified buyer, or if the borrower fails to comply with the terms of the Construction Assistance agreement dated October 10, 2023 . If borrower sells or transfers title to a SHIP qualified buyer, borrower shall have no further obligation hereunder and this mortgage shall be released. This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications; (b) the payment of all other sums, with interest advanced under paragraph 7 to protect the security of the Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower does hereby second mortgage, grant and convey to Lender the following described property located in Collier County, Florida. As more particularly described as: LEGAL DESCRIPTION, Parcel No. 12345678910, and which has the address of: ("Property Address"): 1234 Any Street Naples Florida 34100 (Address) (City) (State) ((Zip) TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by the Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property". BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variation by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note. 2. Taxes. The Mortgagor will pay all taxes, assessments, sewer rents or water rates prior to the accrual of any penalties or interest thereon. The Mortgagor shall pay or cause to be paid, as the same respectively become due, (A)(1) all taxes and governmental charges of any kind whatsoever which may at any time be lawfully assessed or levied against or with respect to the Property, (2) all utility and other charges, including "service charges", incurred or imposed for the operation, maintenance, use, occupancy, upkeep and improvement of the Property, and (3) all assessments or other governmental charges that may lawfully be paid in installments over a period of years, the Mortgagor shall be obligated under the Mortgage to pay or cause to be paid only such installments as are required to be paid during the term of the Mortgage, and shall, promptly after the payment of any of the foregoing, forward to Mortgagee evidence of such payment. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender shall be applied; first, to interest due; and, to principal due; and last, to any late charges due under the Note. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph, and all receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over the Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. At all times that the Note is outstanding, the Mortgagor shall maintain insurance with respect to the Premises against such risks and for such amounts as are customarily insured against and pay, as the same become due and payable, all premiums in respect thereto, including, but not limited to , all-risk insurance protecting the interests of the Mortgagor and Mortgagee against loss or damage to the Premises by fire, lightning, and other casualties customarily insured against (including boiler explosion, if appropriate), with a uniform standard extended coverage endorsement, including debris removal coverage. Such insurance at all times to be in an amount not less than the full replacement cost of the Premises, exclusive of footings and foundations. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by the Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is mailed. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraph 1 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the 16.D.2.d Packet Pg. 1007 Attachment: HFH Sponsor $50k Mortgage CA TEMPLATE 1.0 (28348 : HFH-SHCON 2023-2024 AMENDMENT) Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation, Maintenance and Protection of the Property; Borrower's Loan Application, Leaseholds. Borrower shall not destroy, damage, or impair the property, allow the property to deteriorate, or commit waste on the property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note. If this Security Instrument is on a leasehold, borrower shall comply with all the provision of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property, in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately for the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 or change the amount of such payments. 11. Borrower Not Released, Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liability; Co-Signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note; (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law required use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercised this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures and default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorney's fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 16.D.2.d Packet Pg. 1008 Attachment: HFH Sponsor $50k Mortgage CA TEMPLATE 1.0 (28348 : HFH-SHCON 2023-2024 AMENDMENT) 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice for any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to assert in the foreclosure preceding the non-existence of a default or any other defense of Borrower to acceleration and foreclosure. If the default is not cured on or before the date specified in the notice, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may foreclose this Security Instrument by judicial proceeding. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 21, including, but not limited to, reasonable attorney's fees and costs of the title evidence. 22. Release. Upon payment of all sums secured by this Security Instrument, Lender shall release this Security Instrument, without charge, to Borrower. Borrower shall pay any recordation costs. 23. Attorneys' Fees. As used in this Security Instrument and the Note, "attorneys' fees" shall include any attorneys' fees awarded by an appellate court. 24. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. (Check Applicable Box) Adjustable Rate Rider Rate Improvement Rider Condominium Rider Graduated Payment Rider 1-4 Family Rider Second Home Rider Balloon Rider Biweekly Payment Rider Planned Unit Development Rider Other(s) (specify SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Signed, sealed and delivered in the presence of: _____________________________________________________ Signature Rev. Lisa B. Lefkow, CEO _______ Print Name, Title Address: 11145 Tamiami Trail E_ Naples, FL 34113 STATE OF FLORIDA COUNTY OF COLLIER The foregoing instrument was acknowledged before me by means of physical presence or online notarization this ____ day of ___________________ , 202__, by Rev. Lisa B. Lefkow. Such person(s) Notary Public must check applicable box: are personally known to me. produced his current driver license. produced as identification. (Notary Seal) Notary Public Printed Name of Notary: Commission Number: My Commission Expires: SHIP File#:21-0XXCA SHIP New Construction Assistance Program 16.D.2.d Packet Pg. 1009 Attachment: HFH Sponsor $50k Mortgage CA TEMPLATE 1.0 (28348 : HFH-SHCON 2023-2024 AMENDMENT)