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Res 63-10
RESOLUTION NO. 63 -10 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY TO TRANSFER REAL PROPERTY IN PALM BEACH COUNTY, FLORIDA, AS DESCRIBED HEREIN, HEREBY INCORPORATING AND ACCEPTING THE CONTRACT STATING THE TERMS AND CONDITIONS FOR THE SALE AND PURCHASE BETWEEN THE BUYER AND THE CITY OF DELRAY BEACH, FLORIDA. WHEREAS, the City of Delray Beach, Florida, wishes to transfer property located at 1214/1212 SW 2 "d Avenue; and WHEREAS, the Buyer hereinafter named desires to buy the property hereinafter described from the City of Delray Beach, Florida; and WHEREAS, it is in the best interest of the City of Delray Beach, Florida, to transfer said property to be used for affordable housing purposes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission of the City of Delray Beach, Florida, as Seller, hereby agrees to transfer to Delray Beach Housing Authority, as Buyer, for the purchase price of Ten Dollars and 00 /100 cents ($10.00), said property being described as follows: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. Section 2. That the terms and conditions contained in the contract for sale and purchase and addenda thereto between the City of Delray Beach, Florida, and the Buyer as hereinabove named are incorporated herein as Exhibit "A ". PASSED AND ADOPTED in regular session on the 17" 1)'(0-SO4 November, 201 . NT.&.S'—� MAY 1 City Clerk Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: Lula Butler, Director, Community Improvement THROUGH: David Harden, City Manager DATE: November 11, 2010 Page 1 of 2 SUBJECT: AGENDA ITEM 10.D. -REGULAR COMMISSION MEETING OF NOVEMBER 16.2010 RESOLUTION NO. 63 -10/ CONTRACT FOR SALE AND PURCHASE /DBHA/ 1214 -1212 S.W. 2ND AVENUE ITEM BEFORE COMMISSION Staff requests City Commission approval to donate a Neighborhood Stabilization Program (NSP) property to the Delray Beach Housing Authority (DBHA) for the benefit and rental of units to households at or below 50% AMI. BACKGROUND The City of Delray Beach has received $1,905,005 under the Neighborhood Stabilization Program (NSP) award through the Florida Department of Community Affairs from the U. S. Department of Housing and Urban Development (HUD) and $400,000 from the Delray Beach Community Redevelopment Agency (CRA) as a result of the Housing and Economic Recovery Act of 2008 (H.R. 3221). The NSP funding is for the purpose of purchasing foreclosed or abandoned homes for rehabilitation, resale, or redevelopment in order to stabilize neighborhoods and stem the decline of home values. NSP Funds are to benefit Low, Moderate and Middle Income Households (LMMI). LMMI households are defined as those with incomes less than one - hundred twenty percent (120 %) of Area Median Income (AMI) as determined by HUD. The City and DBHA entered into an Agreement dated July 16, 2010 and restated on September 21, 2010 for resale of bank owned/REO units within the NSP 1 Target Area for the purpose of leasing the units to income eligible households. Disposition, through sale, donation, or otherwise, of residential units is governed by the NSP Housing Assistance Plan (HAP). All properties for rental under this activity will be transferred for the purpose of affordable housing to benefit LMMI households. All properties acquired and rehabilitated for the purpose of rental housing under the NSP Program shall be donated to DBHA. DBHA will make units available for rent to households at or below 50% AMI. Individuals or households who wish to occupy NSP Rental Units must apply directly to the DBHA. The http: // itwebapp / Agendalntranet /Bluesheet.aspx ?ItemID =4001 &MeetinglD =277 11/17/2010 Coversheet Page 2 of 2 Neighborhood Services Administration staff will monitor the project on an annual basis to ensure continued affordability, ownership and maintenance of the property during the 20 year term. This item is for transfer of the following NSP property: 1214 -1212 SW 2nd Avenue. RECOMMENDATION Staff recommends City Commission approval to donate a NSP property to the DBHA for the benefit and rental of units to households at or below 50% AMI. http: // itwebapp/ Agendaintranet /Bluesheet.aspx ?ItemID =z RESOLUTION NO. 63-10 A RESOLUTION OF THE CITY COMM[SSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING THE CITY TO TRANSFER REAL PROPERTY IN PALM BEACH COUNTY, FLORIDA, AS DESCRIBED HEREIN, HEREBY INCORPORATING AND ACCEPTING THE CONTRACT STATING THE TERMS AND CONDITIONS FOR THE SALE AND PURCHASE BETWEEN THE BUYER AND THE CITY OF DELRAY BEACH, FLORIDA. WHEREAS, the City of Delray Beach, Florida, wishes to transfer property located at 1214/1212 SW 2`d Avenue; and WHEREAS, the Buyer hereinafter named desires to buy the property hereinafter described from the City of Delray Beach, Florida; and WHEREAS, it is in the best interest of the City of Delray Beach, Florida, to transfer said property to be used for affordable housing purposes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY CONMSSION OF THE QTY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the City Commission of the City of Delray Beach, Florida, as Seller, hereby agrees to transfer to Delray Beach Housing Authority, as Buyer, for the purchase price of Ten Dollars and 00 /100 cents ($10.00), said property being described as follows: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida Section 2. That the terns and conditions contained in the contract for sale and purchase and addenda thereto between the City of Delray Beach, Florida, and the Buyer as hereuiabove named are incorporated herein as Exlubit "A'. PASSE D AND ADOPTED in regular session on the day of 2010. ATTEST: City Clerk MAYOR CONTRACT FOR SALE AND PURCHASE PARTIES: CITY OF DELRAY BEACH, a Florida municipal corporation, ( "Seller "), of 100 N.W. 1S' Avenue, Delray Beach, Florida 33444 and DELRAY BEACH HOUSING AUTHORITY, ( "Buyer "), of 600 N. Congress Avenue, Suite 310B, Delray Beach, FL 33444, hereby agree that the Seller shall sell and Buyer shall buy the following described Real Property and Personal Property (collectively "Property ") upon the following terms and conditions, which INCLUDE the Standards for Real Estate Transactions ( "Standard(s) "), attached hereto and riders and any addenda to this Contract for Sale and Purchase ( "Contract "): DESCRIPTION: (a) Legal Description: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. PCN: (b) Address: 1214/1212 SW 2n`' Avenue, Delray Beach, FL 33444 PURCHASE PRICE .. ............................... US$10.00 III. TIME FOR ACCEPTANCE; EFFECTIVE DATE: If this offer is not executed by and delivered to all parties OR FACT OF EXECUTION communicated in writing between the parties on or before October 26, 2010, the deposit(s) will, at Buyer's option, be returned to Buyer and the offer withdrawn. The date of this Contract ( "Effective Date ") will be the date when the last one of the Buyer and the Seller has signed this offer. IV. TITLE EVIDENCE: At least 7 days before closing date, Buyer shall obtain a title insurance commitment. V. CLOSING DATE: This transaction shall be closed and the deed and other closing papers delivered on or before sixty (60) from the date of the execution of this agreement, unless extended by other provisions of this Contract. VI. RESTRICTIONS; EASEMENTS; LIMITATIONS: Buyer shall take title by Quit Claim Deed subject to: zoning, restrictions, prohibitions and other requirements imposed by governmental authority; restrictions and matters appearing on the plat or otherwise common to the subdivision; public utility easements of record (easements are to be located contiguous to Real Property lines and not more than 10 feet in width as to the rear or front lines and 7 '/2 feet in width as to the side lines, unless otherwise specified herein); taxes for year of closing and subsequent years; assumed mortgages and purchase money mortgages, if any; provided, that there exists at closing no violation of the foregoing and none of them prevents the use of Real Property for residential purpose. VII. OCCUPANCY: Seller warrants that there are no parties in occupancy other than Seller, but if Property is intended to be rented or occupied beyond closing, the fact and terms thereof shall be stated herein, and the tenant(s) or occupants disclosed pursuant to Standard D. Seller agrees to deliver occupancy of Property at time of closing unless otherwise stated herein. If occupancy is to be delivered before closing, Buyer assumes all risk of loss to Property from date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have accepted Property in their existing condition as of time of taking occupancy unless otherwise stated herein or in a separate writing. VIII. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions shall control all printed provisions of Contract in conflict with them. IX. ASSIGNABILITY: Buyer may not assign Contract. X. DISCLOSURES: (a) Radon is a naturally occurring radioactive gas that, when accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding Radon or Radon testing may be obtained from your County Public health unit. (b) Buyer may have determined the energy efficiency rating of the residential building, if any is located on the Real Property. XI. SPECIAL CLAUSES; ADDENA: If additional terms are to be provided, they will be provided in the attached addenda. If there is an addenda, check here ✓ CITY OF DELRAY BEACH, FLORIDA DELRAY BEACH HOUSING AUTHORITY By: ATTEST: City Clerk Approved as to Form: City Attorney Mayor Date By: '1- ' Print Name: 4h,4 6(1 a a t onl Date ATTEST: i ADDENDUM TO CONTRACT FOR SALE AND PURCHASE SELLER: CITY OF DELRAY BEACH, FLORIDA BUYER: DELRAY BEACH HOUSING AUTHORITY PROPERTY ADDRESS: 1214/1212 SW 2nd Street, Delray Beach, FL 33444 XI. SPECIAL CLAUSES; ADDENDA (Continued) A. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ( "FIRPTA "): The parties shall comply with the provisions of Internal Revenue Code Section 1445 and applicable Treasury Regulations issued thereunder. If the Seller is a U.S. person for Internal Revenue Code Section 1445 purposes, then on demand of the Buyer and prior to closing the Seller shall provide the Buyer with a certificate of non - foreign status in the manner provided in Treasury Regulations Section 1.1445 -2. If the Seller provides the Buyer with such certificate, and if the Buyer is otherwise permitted to rely on such certificate under those Regulations, the Buyer shall not withhold under Internal Revenue Code Section 1445. If the Seller is a 'foreign person' as defined by the Internal Revenue Code, the Buyer generally is required to withhold 10% of the gross sales price from the Seller at closing and to pay the withheld amount over to the Internal Revenue Service (IRS) unless an applicable exemption from withholding or a limitation on the amount to be withheld is available. To the extent that the cash to be paid over to the Seller at closing is insufficient to cover the Buyer's withholding obligation, the Seller shall provide to the Buyer at closing cash equal to such excess for purposes of making such withholding payment. If the Seller's federal income tax on the gain is less than the applicable withholding amount, the Seller may make advance application to the IRS for reduced withholding and, if granted, the Buyer shall withhold only the authorized reduced amount. If such ruling has not been received by closing, the parties at closing shall enter into an escrow agreement reasonably satisfactory to the Buyer and Seller pending receipt of the ruling, provided that at closing the Seller shall have the obligation to provide to the escrow agent from the closing proceeds (or from the Seller's other resources if necessary) cash equal to the maximum required withholding, with any excess withholding being refundable to the Seller upon receipt of a favorable ruling from the IRS. Buyer and Seller understand that the IRS requires the Buyer and the Seller to have a U.S. federal taxpayer identification number and to supply that number on the foregoing forms. A foreign individual may acquire an International Taxpayer Identification Number for this purpose. Since it may take several weeks to receive the number after application and the IRS will not process these forms without the actual number, a party lacking a TIN is advised to apply immediately. 3 B. The Buyer shall have thirty (30) calendar days within which to conduct any and all feasibility studies and determinations relative to the suitability for the acquisition of the subject property by the Buyer and the Buyer reserves the express right to terminate this Contract at any time during said period for any reason or no reason, in Buyer's sole discretion, whereupon Buyer shall receive a full refund of all deposit monies paid hereunder. Buyer shall be granted reasonable access to the premises to conduct such feasibility studies and determinations, including environmental assays, core drilling, surveys, soil sampling and other such testing. C. This Contract is expressly contingent and conditioned upon the approval of the same by the City Commission of the City of Delray Beach. SELLERS' INITIALS: BUYER'S INITIALS: 4 STANDARDS FOR REAL ESTATE TRANSACTIONS A. Evidence of Title: A title insurance commitment issued by a Florida licensed title insurer agreeing to issue to Buyer, upon recording of the deed to Buyer, an owner's policy of title insurance in the amount of the purchase price, insuring Buyer's title to real property, subject only to liens, encumbrances, exceptions or qualification set forth in this agreement and those which shall be discharged by Seller at or before closing. Seller shall convey a marketable title subject only to liens, encumbrances, exceptions or qualifications set forth in this agreement and those which shall be discharged by Seller at or before closing. Marketable title shall be determined according to applicable title standards adopted by authority of The Florida Bar and in accordance with law. If title is found defective, Buyer shall notify Seller in writing specifying defect(s). If the defect(s) render title unmarket- able, Seller will have one hundred twenty (120) days from receipt of notice within which to remove the defect(s), failing which Buyer shall have the option of either accepting the title as it then is or demanding a refund of deposit(s) paid which shall immediately be returned to Buyer; thereupon Buyer and Seller shall release one another of all further obligations under the agreement. Seller will, if title is found unmarket- able, use diligent effort to correct defect(s) in title within the time provided therefor, including the bringing of necessary suits. B. Survey: Buyer, at Buyer's expense, within time allowed to deliver evidence of title and to examine same, may have real property surveyed and certified by a registered Florida surveyor. If survey shows encroachment on real property or that improvements located on real property encroach on setback lines, easements, lands of others, or violate any restrictions, agreement covenants or applicable governmental regulation, the same shall constitute a title defect. C. Ingress and Egress: Seller warrants and represents that there is ingress and egress to the real property sufficient for the intended use as described herein, title to which is in accordance with Standard A. D. Leases: If applicable, Seller shall, not less than fifteen (15) days before closing, furnish to Buyer copies of all written leases and estoppel letters from each tenant specifying the nature and duration of the tenant's occupancy, rental rates, advanced rent and security deposits paid by tenant. If Seller is unable to obtain such letter from each tenant, the same information shall be furnished by Seller to Buyer within that time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenants to confirm such information. Seller shall, at closing, deliver and assign all original leases to Buyer. E. Liens: Seller shall furnish to Buyer at time of closing an affidavit attesting to the absence, unless otherwise provided for herein, of any financing statements, claims of lien or potential lienors known to Seller and further attesting that there have been no improvements or repairs to property for ninety (90) days immediately preceding date of closing. If property has been improved, or repaired within that time, Seller shall deliver releases or waivers of mechanics' liens executed by all general contractors, subcontractors, suppliers, and materialmen in addition to Seller's lien affidavit setting forth the names of all such general contractors, subcontractors, suppliers and materialmen and further affirming that all charges for improvements or repairs which could serve as a basis for a mechanic's line or a claim for damages have been paid or will be paid at closing. F. Place of Closing. Closing shall be held in the county where real property is located, at the office of the attorney or other closing agent designated by Buyer. G. Time: Time is of the essence of this agreement. Time periods herein of less than six (6) days shall in the computation exclude Saturdays, Sundays and state or national legal holidays, and any time period provided for herein which shall end on Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next business day. H. Documents for Closing: Seller shall furnish deed, bill of sale, mechanic's lien affidavit, assignments of leases, tenant and mortgagee estoppel letters, and corrective instruments. Buyer shall furnish closing statement, mortgage, mortgage note, security agreement, and financial statements I. Expenses: Documentary stamps on the warranty deed and recording corrective instruments and the warranty deed shall be paid by Buyer. J. Prorations; credits: Taxes, assessments, rent, interest, insurance and other expenses and revenue of property shall be prorated through day before closing. Buyer shall have the option to taking over any existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at closing shall be increased or decreased as may be required by prorations. Prorations will be made through day prior to occupancy if occupancy occurs before closing. Advance rent and security deposits will be credited to Buyer and escrow deposits held by mortgagee will be credited to Seller. Taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and other exemptions. If closing occurs at a date when the current year's milage is not fixed, and current year's assessments is available, taxes will be prorated based upon such assessment and the prior year's milage. If current year's assessment is not available, then taxes will be prorated on the prior year's tax. If there are completed improvements on real property by January 1st of year of closing which improvements were not in existence on January 1st of the prior year then taxes shall be prorated based upon the prior year's milage and at an equitable assessment to be agreed upon between the parties, failing which, request will be made to the County Property Appraiser for an informal assessment taking into consideration available exemptions. Any tax proration based on an estimate may, at request of either Buyer or Seller, be subsequently readjusted upon receipt of tax bill on condition that a statement to that effect is in the closing statement. K. Special Assessment Liens. Certified, confirmed and ratified special assessment liens as of date of closing (and not as of Effective Date) are to be paid by Seller. Pending liens as of date of closing shall be assumed by Buyer. If the improvement has been substantially completed as of Effective Date, such pending lien shall be considered as certified, confirmed or ratified and Seller shall, at closing, be charged an amount equal to the last estimate of assessment for the improvement by the public body. L. Risk of Loss: If the property is damaged by fire or other casualty before closing and cost of restoration does not exceed the purchase price of the property so damaged, cost of restoration shall be an obligation of the Seller and closing shall proceed pursuant to the term so the agreement with restoration costs escrowed at closing. If the cost of the restoration exceeds three percent (3 %) of the assessed valuation of the improvements so damaged, Buyer shall have the option of either taking property as is, together with either the three percent (3 %) or any insurance proceeds payable by virtue of such loss or damage, or of canceling the agreement and receiving return of deposit(s). M. Escrow: Any escrow agent ( "Agent ") receiving funds or equivalent is authorized and agrees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them in accordance with terms and conditions of agreement. Failure of clearance of funds shall not excuse Buyer's performance. If in doubt as to Agent's duties or liabilities under the provisions of agreement, Agent may, at Agent's option, continue to hold the subject matter of the escrow until the parties mutually agree to its disbursement, or until a judgment of a court of competent jurisdiction shall determine the rights of the parties or Agent may deposit with the clerk of the circuit court having jurisdiction of the dispute. Upon notifying all parties concerned of such action, all liability on the part of Agent shall fully terminate, except to the extent of accounting for any items previously delivered out of escrow. If a licensed real estate broker, Agent will comply with provisions of Chapter 475, F.S. (1987), as amended. Any suit between Buyer and Seller where Agent is made a party because of acting as Agent hereunder, or in any suit wherein Agent interpleads the subject matter of the escrow, Agent shall recover reasonable attorney's fees and costs incurred with the fees and costs to be charged and assessed as 6 court costs in favor of the prevailing party. Parties agree that Agent shall not be liable to any party or person for misdelivery to Buyer or Seller of items subject to this escrow, unless such misdelivery is due to willful breach of contract or gross negligence of Agent. N. Failure of Performance. If Buyer fails to perform this Contract within the time specified Seller shall be relieved of all obligations under Contract. If, for any reason other than failure of Seller to make Seller's title marketable after diligent effort, Seller fails, neglects or refuses to perform this Contract, the Buyer may seek specific performance or elect to receive the return of Buyer's deposit(s) without thereby waiving any action for darnages resulting from Seller's breach. O. Agreement Not Recordable; Persons Bound; Notice: Neither this agreement nor any notice of it shall be recorded in any public records. This agreement shall bind and inure to the benefit of the parties and their successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. Notice given by or to the attorney for any party shall be as effective as if given by or to that party. P. Conveyance: Seller shall convey the property by way of Quit Claim Deed subject to an easement for any utilities that may exist and lie on the property. Q. Other Agreements No prior or present agreements or representations shall be binding upon Buyer or Seller unless included in this Contract. No modification or change in this Contract shall be valid or binding upon the parties unless in writing and executed by the party or parties intended to be bound by it. R. Warranties: Seller warrants that there are no facts known to Seller materially affecting the value of the real property which are not readily observable by Buyer or which have not been disclosed to Buyer. SECOND ADDENDUM TO CONTRACT FOR SALE AND PURCHASE Buyer: Delray Beach Housing Authority Seller: The City of Delray Beach Property: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. The Parties further agree as follows: 1. Disclosures: A. Mold: Mold is a naturally occurring and may cause health risks or damage to Property. If Buyer is concerned or desires additional information regarding mold, Buyer should contact an appropriate professional. B. Lead Warning Statement: Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead -based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to provide the Buyer with any information on lead -based paint hazards from risk assessments or inspections in the Seller's possession and notify the Buyer of any known lead -based paint hazards. A risk assessment or inspection for possible lead based paint hazards is recommended prior to purchase. Seller's Disclosure (initial) (a) Presence of lead -based paint and /or lead based paint hazards (check one below): Known lead -based paint and /or lead -based paint hazards are present in the housing (explain) x Seller has no knowledge of lead -based paint and/or lead based paint hazards in the housing. (b) Records and reports available to the Seller (check below): Seller has provided the purchaser with all available records and reports pertaining to lead -based paint and/or lead -paint hazards in the housing (list Page 1 of 3 documents) x Seller has no reports or records pertaining to lead -based paint and /or lead paint hazards in the housing. Purchaser's Acknowledgment (initial) (c) Purchaser has received copies of all information listed above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in your Home (e) Purchaser has (check one below): Received a 10 -day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead -based paint and/or lead -based paint hazards; or x Waived the opportunity to conduct a risk assessment or inspection for the presence of lead -based paint and/or lead -based paint hazards. Agent's Acknowledgment (Initial) (fl Agent has informed Seller of the Seller's obligations under 42 U.S.C.4852(d) and is aware of his/her responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and correct. C. PROPERTY TAX DISCLOSURE SUMMARY: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS THE ASSESSMENT OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION. 2. With respect to Standard (A), if title is found defective, Seller may, but shall have no obligation, to render title marketable. In the event Seller does not render title marketable within thirty (30) days after the date of Buyer's notice to Seller advising the Seller of the defects in title, Buyer shall have the option of either cancelling this Contract and receiving a refund of the deposits paid, or to accept title as is and close. Seller has agreed to convey the Property to Buyer under the assumption that there are no Page 2 of 3 liens, encumbrances, mortgages, assessments or other evidences of debt (hereinafter collectively referred to as "liens and encumbrances ") which must be paid by Seller at closing. In the event Buyer determines that there are liens and encumbrances, Seller shall have the option of paying off the liens and encumbrances at closing, failing which, Buyer may pay the liens or encumbrances, Buyer may cancel this Contract and receive a refund of its deposit, or Buyer may accept title as is subject to the liens and encumbrances and close. 4. With respect to Standard (L), if the Property is damaged by fire or other casualty before closing, Seller may elect to restore the Property, failing which, Buyer shall accept the physical condition of the Property as is or Buyer may cancel this Contract and receive a refund of its deposit. 5. Standard (N) is hereby deleted and the following is stated in its place: "If Buyer fails to perform the Contract within the time specified, Seller may cancel this Contract and be relieved of all obligations under the Contract or Seller may seek specific performance. If Seller fails to perform this Contract within the time specified, Buyer may elect to cancel this Contract and receive a return of Buyer's deposit, or Buyer may seek specific performance. 6. With respect to Paragraph (V) of the Contract, the transaction shall be closed and the deed and other closing documents delivered on or before seven (7) days after Buyer has determined the Property condition is satisfactory to Buyer pursuant to Paragraph (XI)(B) of the Contract. 7. Buyer accepts the Property AS IS in its present physical condition, subject to any violations of governmental, building, environmental and safety codes, restrictions or requirements and shall be responsible for any and all repairs and improvements required. Seller makes no representation or warranty relating to the physical condition of or title to the Property. Standard (R) of the Contract is hereby deleted. The terms and conditions of this Second Addendum control over any conflicting terms and conditions contained in the Contract or any the other Addendum to the Contract. Delray Beach Housing Authority, Buyer BY: Date: City of Delray Beach, Seller Date: Page 3 of 3 THIRD ADDENDUM TO CONTRACT FOR SALE AND PURCHASE Buyer: Delray Beach Housing Authority Seller: City of Delray Beach Property: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida, a/k/a 1214/1212 S.W. 2 "d Avenue, Delray Beach, Florida 33444 The Parties further agree as follows: A. Additional covenants and restrictions: Buyer shall own properties with a covenant on the land and unit, requiring that it be maintained as affordable rental units for tenants at or below 50% of AMI for a period of twenty (20) years. Buyer shall make the property available for rent by households at or below 50% AMI as defined by the current Income Limit charts adjusted to family size, West Palm Beach — Boca Raton, Metropolitan Statistical Area, (Palm Beach County). The Buyer assures the City that, in connection with the properties acquired is for rental purposes through this Agreement, it is a public housing Subrecipient (a Public Housing Authority) funded by HUD. The Buyer assures the City that, as such, it is knowledgeable about HUD requirements for income qualifying of occupants of rental housing units according to HUD income guidelines and about establishing rent affordability for such occupants. Accordingly, the Buyer shall income qualify the occupant of the property acquired through this Agreement according to the requirements contained in the Declaration of Restrictions associated with each such property, and shall maintain the level of rent plus utilities (based on the HUD Section 8 utility schedule) at an affordable level for the occupant. Such affordability shall be regarded as being achieved if no more than thirty -five percent (35 %) of the occupant's gross household income is expended on the sum of the rent plus utilities based on the HUD Section 8 utility schedule. The Buyer shall report all program income (as defined at 24 CFR 570.500(a) generated by activities carried out with NSP funds made available under this contract. The use of program income by the Buyer shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Buyer may use such income during the contract period for activities permitted under this Agreement. See the Neighborhood Stabilization Program Agreement with the Delray Beach Housing Authority dated October 4, 2010 attached hereto as Exhibit "B". Prepared by: RETURN: Terrill C. Pyburn, Esq. City Attorney's Office 200 N. W. 1 st Avenue Delray Beach, FL 33444 QUIT -CLAIM DEED THIS QUIT -CLAIM DEED, executed this day of , 2010 by the CITY OF DELRAY BEACH, and having its principal place of business at 100 NW I" Avenue, Delray Beach, FL 33444, First Party, to: DELRAY BEACH HOUSING AUTHORITY, and having its principal place of business at 600 N. Congress Avenue, Suite 310B, Delray Beach, FL 33444, Second Party: (Whenever used herein the term "First Party" and "Second Party" include singular and plural, heirs, legal representatives, and assigns of individuals, and the successors and assigns of corporation, whenever the context so admits or requires.) WITNESSETH, That the said First Party, for and in consideration of the sum of Ten Dollars ($10.00) in hand paid by the said Second Party, the receipt whereof is hereby acknowledged, does hereby remise, release and quit -claim unto the said Second Party forever, all the right, title, interest, claim and demand which the said First Party has in and to the following described lot, piece or parcel of land, situate, lying and being in the County of Palm Beach, State of Florida, to -wit: See Exhibit "A" TO HAVE and to HOLD the same together with all and singular the appurtenances thereunto belonging or anywise appertaining, and all the estate, right, title, interest, lien, equity and claim whatsoever of the said First party, either in law or equity, to the only proper use, benefit and behoof of the said Second Party forever. IN WITNESS WHEREOF the said First Party has caused these presents to be executed in its name, and its corporate seal to be hereunto affixed by its proper officers thereunto duly authorized, the day and year first above written. WITNESS: (Please Print or Type Name) STATE OF FLORIDA COUNTY OF PALM BEACH CITY OF DELRAY BEACH, FLORIDA By: Nelson S. McDuffle, Mayor The foregoing instrument was acknowledged before me this day of , 2010, by (name of person acknowledging), who is personally known to me or who has produced as identification. EXHIBIT "A" Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. CONTRACT FOR SALE AND PURCHASE PARTIES: CITY OF DELRAY BEACH, a Florida municipal corporation, ( "Seller "), of 100 N.W. 1S' Avenue, Delray Beach, Florida 33444 and DELRAY BEACH HOUSING AUTHORITY, ( "Buyer "), of 600 N. Congress Avenue, Suite 310B, Delray Beach, FL 33444, hereby agree that the Seller shall sell and Buyer shall buy the following described Real Property and Personal Property (collectively "Property ") upon the following terms and conditions, which INCLUDE the Standards for Real Estate Transactions ("Standard (s)"), attached hereto and riders and any addenda to this Contract for Sale and Purchase ( "Contract "): DESCRIPTION: (a) Legal Description: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. WOM4 (b) Address: 1214/1212 SW 2nd Avenue, Delray Beach, FL 33444 PURCHASE PRICE .. ............................... US$10.00 III. TIME FOR ACCEPTANCE; EFFECTIVE DATE: If this offer is not executed by and delivered to all parties OR FACT OF EXECUTION communicated in writing between the parties on or before October 26, 2010, the deposit(s) will, at Buyer's option, be returned to Buyer and the offer withdrawn. The date of this Contract ( "Effective Date ") will be the date when the last one of the Buyer and the Seller has signed this offer. IV. TITLE EVIDENCE: At least 7 days before closing date, Buyer shall obtain a title insurance commitment. V. CLOSING DATE: This transaction shall be closed and the deed and other closing papers delivered on or before sixty (60) from the date of the execution of this agreement, unless extended by other provisions of this Contract. VI. RESTRICTIONS; EASEMENTS; LIMITATIONS: Buyer shall take title by Quit Claim Deed subject to: zoning, restrictions, prohibitions and other requirements imposed by governmental authority; restrictions and matters appearing on the plat or otherwise common to the subdivision; public utility easements of record (easements are to be located contiguous to Real Property lines and not more than 10 feet in width as to the rear or front lines and 7 '/2 feet in width as to the side lines, unless otherwise specified herein); taxes for year of closing and subsequent years; assumed mortgages and purchase money mortgages, if any; provided, that there exists at closing no violation of the foregoing and none of them prevents the use of Real Property for residential purpose. VII. OCCUPANCY: Seller warrants that there are no parties in occupancy other than Seller, but if Property is intended to be rented or occupied beyond closing, the fact and terms thereof shall be stated herein, and the tenant(s) or occupants disclosed pursuant to Standard D. Seller agrees to deliver occupancy of Property at time of closing unless otherwise stated herein. If occupancy is to be delivered before closing, Buyer assumes all risk of loss to Property from date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have accepted Property in their existing condition as of time of taking occupancy unless otherwise stated herein or in a separate writing. VIII. TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Typewritten or handwritten provisions shall control all printed provisions of Contract in conflict with them. IX. ASSIGNABILITY: Buyer may not assign Contract. X. DISCLOSURES: (a) Radon is a naturally occurring radioactive gas that, when accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding Radon or Radon testing may be obtained from your County Public health unit. (b) Buyer may have determined the energy efficiency rating of the residential building, if any is located on the Real Property. XI. SPECIAL CLAUSES; ADDENA: If additional terms are to be provided, they will be provided in the attached addenda. If there is an addenda, check here ✓ CITY OF DELRAY BEACH, FLO , IDA By. -�\ Mayor Date ATTEST: City Clerk . Approved as to Form: City Attorney 2 DELRAY BEACH HOUSING AUTHORITY r By: Print Name: m Vb Date ATTEST- ADDENDUM TO CONTRACT FOR SALE AND PURCHASE SELLER: CITY OF DELRAY BEACH, FLORIDA BUYER: DELRAY BEACH HOUSING AUTHORITY PROPERTY ADDRESS: 1214/1212 SW 2nd Street, Delray Beach, FL 33444 XI. SPECIAL CLAUSES; ADDENDA (Continued) A. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ( "FIRPTA "): The parties shall comply with the provisions of Internal Revenue Code Section 1445 and applicable Treasury Regulations issued thereunder. If the Seller is a U.S. person for Internal Revenue Code Section 1445 purposes, then on demand of the Buyer and prior to closing the Seller shall provide the Buyer with a certificate of non - foreign status in the manner provided in Treasury Regulations Section 1.1445 -2. If the Seller provides the Buyer with such certificate, and if the Buyer is otherwise permitted to rely on such certificate under those Regulations, the Buyer shall not withhold under Internal Revenue Code Section 1445. If the Seller is a 'foreign person' as defined by the Internal Revenue Code, the Buyer generally is required to withhold 10% of the gross sales price from the Seller at closing and to pay the withheld amount over to the Internal Revenue Service (IRS) unless an applicable exemption from withholding or a limitation on the amount to be withheld is available. To the extent that the cash to be paid over to the Seller at closing is insufficient to cover the Buyer's withholding obligation, the Seller shall provide to the Buyer at closing cash equal to such excess for purposes of making such withholding payment. If the Seller's federal income tax on the gain is less than the applicable withholding amount, the Seller may make advance application to the IRS for reduced withholding and, if granted, the Buyer shall withhold only the authorized reduced amount. If such ruling has not been received by closing, the parties at closing shall enter into an escrow agreement reasonably satisfactory to the Buyer and Seller pending receipt of the ruling, provided that at closing the Seller shall have the obligation to provide to the escrow agent from the closing proceeds (or from the Seller's other resources if necessary) cash equal to the maximum required withholding, with any excess withholding being refundable to the Seller upon receipt of a favorable ruling from the IRS. Buyer and Seller understand that the IRS requires the Buyer and the Seller to have a U.S. federal taxpayer identification number and to supply that number on the foregoing forms. A foreign individual may acquire an International Taxpayer Identification Number for this purpose. Since it may take several weeks to receive the number after application and the IRS will not process these forms without the actual number, a party lacking a TIN is advised to apply immediately. 9 B. The Buyer shall have thirty (30) calendar days within which to conduct any and all feasibility studies and determinations relative to the suitability for the acquisition of the subject property by the Buyer and the Buyer reserves the express right to terminate this Contract at any time during said period for any reason or no reason, in Buyer's sole discretion, whereupon Buyer shall receive a full refund of all deposit monies paid hereunder. Buyer shall be granted reasonable access to the premises to conduct such feasibility studies and determinations, including environmental assays, core drilling, surveys, soil sampling and other such testing. C. This Contract is expressly contingent and conditioned upon the approval of the same by the City Commission of the City of Delray Beach. SELLERS' INITIALS: BUYER'S INITIALS: Id STANDARDS FOR REAL ESTATE TRANSACTIONS A. Evidence of Title: A title insurance commitment issued by a Florida licensed title insurer agreeing to issue to Buyer, upon recording of the deed to Buyer, an owner's policy of title insurance in the amount of the purchase price, insuring Buyer's title to real property, subject only to liens, encumbrances, exceptions or qualification set forth in this agreement and those which shall be discharged by Seller at or before closing. Seller shall convey a marketable title subject only to liens, encumbrances, exceptions or qualifications set forth in this agreement and those which shall be discharged by Seller at or before closing. Marketable title shall be determined according to applicable title standards adopted by authority of The Florida Bar and in accordance with law. If title is found defective, Buyer shall notify Seller in writing specifying defect(s). If the defect(s) render title unmarket- able, Seller will have one hundred twenty (120) days from receipt of notice within which to remove the defect(s), failing which Buyer shall have the option of either accepting the title as it then is or demanding a refund of deposit(s) paid which shall immediately be returned to Buyer; thereupon Buyer and Seller shall release one another of all further obligations under the agreement. Seller will, if title is found unmarket- able, use diligent effort to correct defect(s) in title within the time provided therefor, including the bringing of necessary suits. B. Survey: Buyer, at Buyer's expense, within time allowed to deliver evidence of title and to examine same, may have real property surveyed and certified by a registered Florida surveyor. If survey shows encroachment on real property or that improvements located on real property encroach on setback lines, easements, lands of others, or violate any restrictions, agreement covenants or applicable governmental regulation, the same shall constitute a title defect. C. Ingress and Egress: Seller warrants and represents that there is ingress and egress to the real property sufficient for the intended use as described herein, title to which is in accordance with Standard A. D. Leases: If applicable, Seller shall, not less than fifteen (15) days before closing, furnish to Buyer copies of all written leases and estoppel letters from each tenant specifying the nature and duration of the tenant's occupancy, rental rates, advanced rent and security deposits paid by tenant. If Seller is unable to obtain such letter from each tenant, the same information shall be furnished by Seller to Buyer within that time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenants to confirm such information. Seller shall, at closing, deliver and assign all original leases to Buyer. E. Liens: Seller shall furnish to Buyer at time of closing an affidavit attesting to the absence, unless otherwise provided for herein, of any financing statements, claims of lien or potential lienors known to Seller and further attesting that there have been no improvements or repairs to property for ninety (90) days immediately preceding date of closing. If property has been improved, or repaired within that time, Seller shall deliver releases or waivers of mechanics' liens executed by all general contractors, subcontractors, suppliers, and materialmen in addition to Seller's lien affidavit setting forth the names of all such general contractors, subcontractors, suppliers and materialmen and further affirming that all charges for improvements or repairs which could serve as a basis for a mechanic's line or a claim for damages have been paid or will be paid at closing. F. Place of Closing: Closing shall be held in the county where real property is located, at the office of the attorney or other closing agent designated by Buyer. G. Time: Time is of the essence of this agreement. Time periods herein of less than six (6) days shall in the computation exclude Saturdays, Sundays and state or national legal holidays, and any time period provided for herein which shall end on Saturday, Sunday or legal holiday shall extend to 5:00 p.m. of the next business day. 5 H. Documents for Closing: Seller shall furnish deed, bill of sale, mechanic's lien affidavit, assignments of leases, tenant and mortgagee estoppel letters, and corrective instruments. Buyer shall furnish closing statement, mortgage, mortgage note, security agreement, and financial statements. I. Expenses: Documentary stamps on the warranty deed and recording corrective instruments and the warranty deed shall be paid by Buyer. J. Prorations: credits: Taxes, assessments, rent, interest, insurance and other expenses and revenue of property shall be prorated through day before closing. Buyer shall have the option to taking over any existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at closing shall be increased or decreased as may be required by prorations. Prorations will be made through day prior to occupancy if occupancy occurs before closing. Advance rent and security deposits will be credited to Buyer and escrow deposits held by mortgagee will be credited to Seller. Taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead and other exemptions. If closing occurs at a date when the current year's milage is not fixed, and current year's assessments is available, taxes will be prorated based upon such assessment and the prior year's milage. If current year's assessment is not available, then taxes will be prorated on the prior year's tax. If there are completed improvements on real property by January 1st of year of closing which improvements were not in existence on January 1st of the prior year then taxes shall be prorated based upon the prior year's milage and at an equitable assessment to be agreed upon between the parties, failing which, request will be made to the County Property Appraiser for an informal assessment taking into consideration available exemptions. Any tax proration based on an estimate may, at request of either Buyer or Seller, be subsequently readjusted upon receipt of tax bill on condition that a statement to that effect is in the closing statement. K. Special Assessment Liens: Certified, confirmed and ratified special assessment liens as of date of closing (and not as of Effective Date) are to be paid by Seller. Pending liens as of date of closing shall be assumed by Buyer. If the improvement has been substantially completed as of Effective Date, such pending lien shall be considered as certified, confirmed or ratified and Seller shall, at closing, be charged an amount equal to the last estimate of assessment for the improvement by the public body. L. Risk of Loss: If the property is damaged by fire or other casualty before closing and cost of restoration does not exceed the purchase price of the property so damaged, cost of restoration shall be an obligation of the Seller and closing shall proceed pursuant to the term so the agreement with restoration costs escrowed at closing. If the cost of the restoration exceeds three percent (3 %) of the assessed valuation of the improvements so damaged, Buyer shall have the option of either taking property as is, together with either the three percent (3 %) or any insurance proceeds payable by virtue of such loss or damage, or of canceling the agreement and receiving return of deposit(s). M. Escrow: Any escrow agent ( "Agent ") receiving funds or equivalent is authorized and agrees by acceptance of them to deposit them promptly, hold same in escrow and, subject to clearance, disburse them in accordance with terms and conditions of agreement. Failure of clearance of funds shall not excuse Buyer's performance. If in doubt as to Agent's duties or liabilities under the provisions of agreement, Agent may, at Agent's option, continue to hold the subject matter of the escrow until the parties mutually agree to its disbursement, or until a judgment of a court of competent jurisdiction shall determine the rights of the parties or Agent may deposit with the clerk of the circuit court having jurisdiction of the dispute. Upon notifying all parties concerned of such action, all liability on the part of Agent shall fully terminate, except to the extent of accounting for any items previously delivered out of escrow. If a licensed real estate broker, Agent will comply with provisions of Chapter 475, F.S. (1987), as amended. Any suit between Buyer and Seller where Agent is made a party because of acting as Agent hereunder, or in any suit wherein Agent interpleads the subject matter of the escrow, Agent shall recover reasonable attorney's fees and costs incurred with the fees and costs to be charged and assessed as 6 court costs in favor of the prevailing party. Parties agree that Agent shall not be liable to any party or person for misdelivery to Buyer or Seller of items subject to this escrow, unless such misdelivery is due to willful breach of contract or gross negligence of Agent. N. Failure of Performance: If Buyer fails to perform this Contract within the time specified Seller shall be relieved of all obligations under Contract. If, for any reason other than failure of Seller to make Seller's title marketable after diligent effort, Seller fails, neglects or refuses to perform this Contract, the Buyer may seek specific performance or elect to receive the return of Buyer's deposit(s) without thereby waiving any action for damages resulting from Seller's breach. O. Agreement Not Recordable; Persons Bound; Notice: Neither this agreement nor any notice of it shall be recorded in any public records. This agreement shall bind and inure to the benefit of the parties and their successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. Notice given by or to the attorney for any party shall be as effective as if given by or to that party. P. Conveyance: Seller shall convey the property by way of Quit Claim Deed subject to an easement for any utilities that may exist and lie on the property. Q. Other Agreements: No prior or present agreements or representations shall be binding upon Buyer or Seller unless included in this Contract. No modification or change in this Contract shall be valid or binding upon the parties unless in writing and executed by the party or parties intended to be bound by it. R. Warranties: Seller warrants that there are no facts known to Seller materially affecting the value of the real property which are not readily observable by Buyer or which have not been disclosed to Buyer. 0 SECOND ADDENDUM TO CONTRACT FOR SALE AND PURCHASE Buyer: Delray Beach Housing Authority Seller: The City of Delray Beach Property: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida. The Parties further agree as follows: 1. Disclosures: A. Mold: Mold is a naturally occurring and may cause health risks or damage to Property. If Buyer is concerned or desires additional information regarding mold, Buyer should contact an appropriate professional. B. Lead Warning Statement: Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead -based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to provide the Buyer with any information on lead -based paint hazards from risk assessments or inspections in the Seller's possession and notify the Buyer of any known lead -based paint hazards. A risk assessment or inspection for possible lead based paint hazards is recommended prior to purchase. Seller's Disclosure (initial) (a) Presence of lead -based paint and/or lead based paint hazards (check one below): Known lead -based paint and/or lead -based paint hazards are present in the housing (explain) x Seller has no knowledge of lead -based paint and/or lead based paint hazards in the housing. (b) Records and reports available to the Seller (check below): Seller has provided the purchaser with all available records and reports pertaining to lead -based paint and/or lead -paint hazards in the housing (list Page 1 of 3 documents) x Seller has no reports or records pertaining to lead -based paint and /or lead paint hazards in the housing. Purchaser's Acknowledgment (initial) (c) Purchaser has received copies of all information listed above. (d) Purchaser has received the pamphlet Protect Your Family from Lead in your Home (e) Purchaser has (check one below): Received a 10 -day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead -based paint and/or lead -based paint hazards; or x Waived the opportunity to conduct a risk assessment or inspection for the presence of lead -based paint and /or lead -based paint hazards. Agent's Acknowledgment (Initial) (f) Agent has informed Seller of the Seller's obligations under 42 U.S.C.4852(d) and is aware of his/her responsibility to ensure compliance. Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and correct. C. PROPERTY TAX DISCLOSURE SUMMARY: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS THE ASSESSMENT OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION. 2. With respect to Standard (A), if title is found defective, Seller may, but shall have no obligation, to render title marketable. In the event Seller does not render title marketable within thirty (30) days after the date of Buyer's notice to Seller advising the Seller of the defects in title, Buyer shall have the option of either cancelling this Contract and receiving a refund of the deposits paid, or to accept title as is and close. Seller has agreed to convey the Property to Buyer under the assumption that there are no Page 2 of 3 4 5 liens, encumbrances, mortgages, assessments or other evidences of debt (hereinafter collectively referred to as "liens and encumbrances ") which must be paid by Seller at closing. In the event Buyer determines that there are liens and encumbrances, Seller shall have the option of paying off the liens and encumbrances at closing, failing which, Buyer may pay the liens or encumbrances, Buyer may cancel this Contract and receive a refund of its deposit, or Buyer may accept title as is subject to the liens and encumbrances and close. With respect to Standard (L), if the Property is damaged by fire or other casualty before closing, Seller may elect to restore the Property, failing which, Buyer shall accept the physical condition of the Property as is or Buyer may cancel this Contract and receive a refund of its deposit. Standard (N) is hereby deleted and the following is stated in its place: "If Buyer fails to perform the Contract within the time specified, Seller may cancel this Contract and be relieved of all obligations under the Contract or Seller may seek specific performance. If Seller fails to perform this Contract within the time specified, Buyer may elect to cancel this Contract and receive a return of Buyer's deposit, or Buyer may seek specific performance. 6. With respect to Paragraph (V) of the Contract, the transaction shall be closed and the deed and other closing documents delivered on or before seven (7) days after Buyer has determined the Property condition is satisfactory to Buyer pursuant to Paragraph (XI)(B) of the Contract. Buyer accepts the Property AS IS in its present physical condition, subject to any violations of governmental, building, environmental and safety codes, restrictions or requirements and shall be responsible for any and all repairs and improvements required. Seller makes no representation or warranty relating to the physical condition of or title to the Property. Standard (R) of the Contract is hereby deleted. 9. The terms and conditions of this Second Addendum control over any conflicting terms and conditions contained in the Contract or any the other Addendum to the Contract. Approved as to form and legal su ticiency: By: City Attor eY Delray Beach Housing Authority, Buyer BY: Date: it /(o /20/0 City of Pelr�y Beach, S THIRD ADDENDUM TO CONTRACT FOR SALE AND PURCHASE Buyer: Delray Beach Housing Authority Seller: City of Delray Beach Property: Lot 1, Block 4, ATLANTIC PARK GARDENS, according to the map or plat thereof as recorded in Plat Book 14, Page 56, Public Records of Palm Beach County, Florida, a/k/a 1214/1212 S.W. 2 "d Avenue, Delray Beach, Florida 33444 The Parties further agree as follows: A. Additional covenants and restrictions: Buyer shall own properties with a covenant on the land and unit, requiring that it be maintained as affordable rental units for tenants at or below 50% of AMI for a period of twenty (20) years. 2. Buyer shall make the property available for rent by households at or below 50% AMI as defined by the current Income Limit charts adjusted to family size, West Palm Beach — Boca Raton, Metropolitan Statistical Area, (Palm Beach County). 3. The Buyer assures the City that, in connection with the properties acquired is for rental purposes through this Agreement, it is a public housing Subrecipient (a Public Housing Authority) funded by HUD. The Buyer assures the City that, as such, it is knowledgeable about HUD requirements for income qualifying of occupants of rental housing units according to HUD income guidelines and about establishing rent affordability for such occupants. Accordingly, the Buyer shall income qualify the occupant of the property acquired through this Agreement according to the requirements contained in the Declaration of Restrictions associated with each such property, and shall maintain the level of rent plus utilities (based on the HUD Section 8 utility schedule) at an affordable level for the occupant. Such affordability shall be regarded as being achieved if no more than thirty -five percent (35 %) of the occupant's gross household income is expended on the sum of the rent plus utilities based on the HUD Section 8 utility schedule. The Buyer shall report all program income (as defined at 24 CFR 570.500(a) generated by activities carried out with NSP funds made available under this contract. The use of program income by the Buyer shall comply with the requirements set forth at 24 CFR 570.504. By way of further limitations, the Buyer may use such income during the contract period for activities permitted under this Agreement. See the Neighborhood Stabilization Program Agreement with the Delray Beach Housing Authority dated October 4, 2010 attached hereto as Exhibit "B ". A ;!oedeo pus ( ;)joy ;ne 'jamod pn; sey jaum0 jaumo au; ;o uo!;e6!!g0 6u!pulq ay; se ;n ;! ;suoo awes ay; pus ;uawaaj6y sly; pa ;noaxe AIpl!en sey jaumo 'e ;!0 o; s ;umiem pus s ;uesajdej jaum0 ,q ;uawaaj6y slg ; ;o swja; ay; a ;en ;oa ; ;a o; pajlnbaj (lgeuoseaj pus 'alge;!nba '}snf sweep }jnoo Bons se pus a;e!jdojdde aq Cew se 'Aje;auow 6u!pnlou! ' ;a!laj jay ;o yons jo; jo ;uawaaaby sly; }o swja; ay; y ;lm souepj000e u! 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' ;uawaaa6y sly; gbnojy; sesodjnd le;uaj jo; sl paj!nboe saipado.id ay; y ;!m uo! ;oauuoo ul ';ey; 4 1!0 ay; saansse jaum0 ay1 (A ;unoo yosag wled) 'eajy leo! ;s! ;e }S ue;llodoj;aW 'uo ;e�] eoog — yoea8 wled ;saAA 'ezls Al!we; o; pa ;snipe sj€eyo ;lw!1 awooul ;uajjno ay; (q paul;ap se IAy %009 molaq jo ;e splogasnoy (q ;uej jo; elgel!ene A;jedojd ay; 9� ew !legs jaum0 Z •sjeaA (0Z) A ;uam; ;o po!jad e jo; [AV jo %09 moleq jo ;s s;ueue; jo; s;!un le ;uaa algepjo ; ;e se peu!e ;ulew aq ;l ;ey; 6uumbaj ' ;!un pus puei ay; uo ;ueuanoo e y ;lm sal;jadojd umo Ileys jaumo 6 smoilo; se aajbe sallied ay; 'pa6palmouXoe Agajay an go!ym ;o Aoua!ogns pus ;d!aoej ay; 'uol;ejaplsuoo algenlen pus pooh jay ;o pus ses!wajd anoge ay; ;o uo! ;ejap!suoo ul '3NOdd 1193H1 `MON 'bbt££ epljold 'y0ea8 AL -ilea ' ;aaj ;S P,Z MS ;e pa ;eool luadojd ay; ;o alesaj pus uol ;e ;ll!gsgaj 'uo! ;!slnboe ay; jo; 6u!pun; wej6ojd uo! ;ezg!ge ;S poogjoggb!aN papinojd sey ( ;!0 ay; 'SV3a3HM pus : ;uawaaj6y p!es ;o (jenjauaq e se suo) ;olj ;saj esn u!e;jao y ;!m (ldwoo o; paaj68 sey jaumO ay; 'Sy3a3HM pus '040Z 'Ajenjgad ;o Asp y ;S ay; palep Aj!0 pus A;!un�jodd0 o!wouoo3 ;o ;uaw}jedaa 'epljold }o a ;e ;S usam ;aq ;uawaaj6y ue o; ;uensjnd spunA wej6ojd uol;ez!llge ;S poogjogy6laN ;o Aje!ol ;auaq ay; sl jaum0 'SV3NgHM pus ' „Aljadojd„ ag; se o; pajja;aj ja; ;eulajay 'eouaja ;aj Aq u!ajeq pa ;ejodjooul pus o ;ajay pagoe ; ;e „y„ ;uawyoe ; ;y ui paq!josap puei ule}jao sumo jaum0 ay; 'SV3U3HM S- IVII03U *(,jaum0„ ay; se o; pajja ;aj jaj4su!ajay) oul 'dnoj0 bulsnoH Aejlad pus ay; se o; pajja ;aj ja; ;eulajay) epljold ;o a ;e ;S ay ; ;o smel ay; japun pus (q 6ul;s!xo A ;!0 e 'goeag (ejla0 ;o A ;!0 ay; usam ;aq pus Aq o ;ul paja;ue pus spew s! 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