Affordable Housing Restriction City Northampton 5-08 (00122354-6)AFFECTED PREMISES: 30 STRAW AVENUE, FLORENCE, MA
AFFORDABLE HOUSING RESTRICTION
CITY OF NORTHAMPTON
Friends of Hampshire County Homeless Individuals, Inc., 602 North Farms Rd., Florence, MA 01062 (“Grantor”); and
SERVICENET, Inc, a non-profit human services agency with offices at 129 King Street, Northampton, acting through its Vice President for Administration and Finance, Bruce J. Barshefsky,
with approval of its Board of Directors, which shall be the Successor in interest to the Grantor (herein referred to as “ServiceNet” and as “subsequent Owner”);
Grants with quitclaim covenants, to CITY OF NORTHAMPTON (the “City”), with an address of c/o Office of Planning and Development, 210 Main Street, Room 11, Northampton, Massachusetts
01060, its successors and assigns, or its designee,
This Affordable Housing Restriction on the property and all improvements located thereon located at 30 Straw Avenue, Florence, Massachusetts, being the property described in a deed from
John Michael Barrett to Friends of Hampshire County Homeless Individuals, Inc.,, dated June 2, 2008 and recorded in the Hampshire Country Registry of Deeds at Book _____, Page ____ (collectively,
the “Property”).
When used herein “Grantor and subsequent Owner” refers to Friends of Hampshire County Homeless Individuals, Inc and ServiceNet, Inc. or their successors and assigns as may be appropriate
in the context of this agreement.
The terms of this Affordable Housing Restriction, authorized by G.L. c. 184, §§31-33 and otherwise by law, are as follows:
Purposes. The purpose of this Affordable Housing Restriction is to assure that the Property will be retained as affordable rental housing for occupancy to be used exclusively for the
purpose of ensuring housing for homeless and extreme low-income individuals, as further defined below.
Scope. The Grantor and ServiceNet intend, declare and covenant, on behalf of themselves and their successors and assigns, that the covenants and restrictions set forth in this Affordable
Housing Restriction regulating and restricting the use, occupancy and transfer of the Property (i) shall be and are covenants running with the Property, encumbering the Property and
binding upon the Grantor and ServiceNet’s, successors and assigns , (ii) are not merely personal covenants of the Grantor and ServiceNet, and (iii) shall bind the Grantor and ServiceNet
and their successors and assigns (and the benefits shall inure to the City and to any present or prospective tenant of the Property).
The Grantor and ServiceNet acknowledge that, pursuant to the Community Preservation Act, the City of Northampton has provided a Community Preservation Act grant to the Grantor, which
requires that, as a condition of approval of this grant, the Grantor and ServiceNet execute, deliver and record an affordable housing restriction under M.G.L. c.184 with the Hampshire
County Registry of Deeds prior to any mortagages, encumberances, or subsequent transfers.
3. Duration Not Limited. This Affordable Housing Restriction is intended to be construed as an affordable housing restriction as defined in Section 31 of Chapter 184 of the Massachusetts
General Laws which has the benefit of Section 32 of said Chapter 184, such that the restrictions contained herein shall not be limited in duration by any rule or operation of law. The
Grantor and ServiceNet hereby agree that any and all requirements of the laws of The Commonwealth of Massachusetts to be satisfied in order for this Affordable Housing Restriction to
constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full and that any requirements of privity of estate are intended to be satisfied,
or in the alternative, that an equitable servitude has been created to insure that this Affordable Housing Restriction runs with the land.
4. Term of the Restriction. The term of this Affordable Housing Restriction shall be 99 years from the signing of this Restriction.
5. Subsequent Conveyances. Each and every contract, deed or other instrument hereafter executed conveying the Property or portion thereof shall expressly provide that such conveyance
is subject to this Affordable Housing Restriction, provided, however, that the covenants contained herein shall survive and be effective regardless of whether such contract, deed or
other instrument hereafter executed conveying the Property or portion thereof provides that such conveyance is subject to this Affordable Housing Restriction.
6. Permitted Use. The Property shall be used:
Solely to serve homeless individuals with incomes less than 30% of AMI for at least thirty (30) years from the date this restriction is executed.
After this thirty year period, if the structure cannot be maintained to serve homeless individuals with incomes less than 30% AMI (as defined in Section 8 hereof) to solely serve individuals
or households with incomes at or below 60% AMI until ninty-nine (99) years after the date this restriction is executed.
In all cases, the individuals served must be income eligible when they move into the unit. If the individual’s income exceeds 140% of the Maximum Income for eligibility (as defined
in paragraphs 6(a) and 6(b) above) at the time of annual eligibility determination, the individual shall be considered overhoused and shall no longer be eligble to occupy the propert.
A reasonable transition period will be allowed for the individual to relocate voluntarily. After such reasonable period the then owner must take such steps as are necessary under
law to terminate the individual’s occupancy of the property.
Grantor and subsequent Owner shall not permit the use of the property for any purpose other than housing, including complete facilities for living, sleeping, eating, cooking and sanitation
which are to be used on other than a transient basis.
The premises shall meet the housing quality standards set forth in the 105 Code of Massachusetts Regulations 410 the Minimum Standards of Fitness for Human Habitation.
If Grantor or subsequent Owner, in their sole discretion, post a sign on the property noting funding sources, such sign shall include the City of Northampton Community Preservation Fund
as a funding source.
7. Tenant Selection.
Nondiscrimination. The Grantor and subsequent Owner shall not discriminate on the basis of race, creed, color, sex, age, handicap, marital status, sexual preference, national origin
or any other basis prohibited by law in the lease, use and occupancy of the Housing Units or in connection with the employment or application for employment of persons for the operation
and management of the Housing Units.
Selection Policies. The Grantor and subsequent Owner shall adopt and submit to City for approval resident selection policies and criteria acceptable to City that are consistent with
State requirements associated with its “Housing First” initiatives.
The Grantor and subsequent Owner shall provide Selection Criteria that gives preference to individuals who are chronically homeless and who have recently used Northampton shelter services.
(i) Only eligible individuals shall reside on the Property, provided however that one bedroom may be saved for a manager who need not be income eligible, and notice of any lease
or sublease in violation of that requirement must be given to the Administering Agent on an annual basis in the Annual Compliance Report as specified in section 12 hereof.
8. Income and Rent Restrictions. For purposes of this Restriction, all of the following restrictions shall be read together in a consistent manner, so that the most restrictive of the
restrictions shall apply for the longest period applicable, as indicated. Notwithstanding the following restrictions and provisions, the maximum annual rent for any housing on the
Property need not fall below the rent level set at the time the Property is first occupied.
Additional Definitions.
(i) The “Area” is defined as the Springfield Primary Metropolitan Statistical Area.
(ii) “AMI” is defined as the median income for the Area, based on family size, as determined by HUD pursuant to the Section 8 program.
General Rent Restriction. The monthly rent charged , including utilities and parking, shall not exceed thirty percent (30%) of the individual’s monthly income. There is no requirement
that any rent be charged.
9. Income Certifications. The Grantor and subsequent Owner represents, warrants and covenants that the determination of whether an individual occupying any portion of the Property meets
the income requirements set forth herein shall be made by Grantor and subsequent Owner at the time the individual first occupies the Property and thereafter at least annually on the
basis of the current income of such Individual . When initially verifying an Individuals income, the Grantor and subsequent Owner shall examine the source documents evidencing annual
income (e.g. wage statements, interest statements, unemployment compensation statements) for the Individual. Grantor and subsequent Owner shall maintain as part of its records copies
of all occupancy agreements and all initial and annual income certifications of the individual occupants. Individual occupants shall also be required to provide such information as
the Administering Agency may reasonably request in order to ensure affordability.
10. Rent Schedule. Annually, as part of the annual reports required under Section 12, Grantor and subsequent Owner shall submit to City a proposed schedule of monthly rents and monthly
allowances for utilities and services for all individuals being served. Such schedule shall be subject to the approval by the City and shall not be increased above the amounts permitted
under the Ordinance without the City's prior written approval of either (i) a specific request by Grantor and subsequent Owner for a rent increase or (ii) the next annual schedule of
rents and allowances. Notwithstanding the foregoing, rent increases shall be subject to the provisions of outstanding written occupancy agreements and shall not be implemented without
at least 30 days' prior written notice by Grantor and subsequent Owner to the affected individual.
11. Transfer Restrictions. Grantor and subsequent Owner shall not sell, transfer, convey, rent (except for leases or occupancy agreements made in connection with the Permitted Uses
that are substantially in the form approved by the City), encumber as security for financing, or in any other way exchange all or any portion of the Property, without the express written
permission of City.
12. Annual Compliance Report. The Grantor and subsequent Owner agrees to prepare and deliver annually a report (the “Annual Compliance Report”) to the City regarding the compliance
of the Grantorand subsequent Owner, with reporting requirements within the provisions of the Ordinance. The Annual Compliance Report shall indicate the extent of non-compliance with
the relevant reporting and/or substantive requirements, if any, shall describe efforts being made by the Grantor and subsequent Owner to remedy such non-compliance and, if appropriate,
recommend possible enforcement action by the City against the Grantor and subsequent Owner. The Grantor or subsequent Owner, as the case may be, shall deliver the Annual Compliance
Report within one hundred twenty (120) days of the end of each calendar year during the term of this Restriction.
13. Enforcement. The City, its successors and permitted assigns, or its designee, shall have the power to monitor and enforce the requirements of the Massachusetts Act and the Ordinance,
as Administering Agent, and as such, shall monitor the compliance of the Project with the Affordability Requirement of the Ordinance. The purpose of monitoring is to ensure that (both
initially and on an ongoing basis) the income eligibility of the occupants are properly and reliably determined, rental amounts of are properly computed, the Tenant Selection Plan conforms
to all requirements and is properly administered and compliance with its terms continues, individual occupants are properly chosen, and annual determination of continued eligibility
occurs in accordance with the guidelines set forth in the Ordinance. The rights hereby granted shall include the right of the City to enforce this Affordable Housing Restriction by
appropriate legal proceedings and to obtain injunctive and other equitable relief against any violations, including without limitation relief requiring restoration of the Property to
its condition prior to any such violation (it being agreed that the City will have no adequate remedy at law), and shall be in addition to, and not in limitation of, any other rights
and remedies available to the City. Grantor and subsequent Owner covenants and agrees to reimburse to the City all reasonable costs and expenses (including without limitation reasonable
counsel fees) incurred in enforcing this Affordable Housing Restriction or in taking reasonable measures to cure any violation hereof, provided that a violation of this Affordable Housing
Restriction is acknowledged by Grantor and subsequent Owner or determined by a court of competent jurisdiction to have occurred. By its acceptance of this Affordable Housing Restriction,
the City does not undertake any liability or obligation relating to the condition of the Property. If any provision of this Affordable Housing Restriction shall to any extent be held
invalid, the remainder shall not be affected. No delay or omission on the part of the City in enforcing the restrictions contained herein shall operate as a waiver of the right to enforce
it, nor shall any delay, omission or waiver on any one occasion be deemed to be a bar to or waiver of the same or of any other right on any future occasion.
In the alternative, the Grantor or subsequent Owner may repay the entire $220,000 Community Preservation grant provided by the City of Northampton, to the Northampton Community Preservation
Act fund or its successor in interest, at any time and upon such payment these restrictions shall immediately be released and discharged and the property shall no longer be subject to
any restrictions under this Agreement. Such repayment shall be in its entirety without discounting or interest of any kind.
14. Further Assurances. The City is authorized to record and/or register any notices or instruments appropriate to assuring the enforceability of this Affordable Housing Restriction;
and the Grantor and subsequent Owner on behalf of itself and its successors and assigns appoints the City its attorney-in-fact to execute, acknowledge and deliver any such instruments
on its behalf. Without limiting the foregoing, the Grantor and subsequent Owner and its successors and assigns agrees to execute any such instruments upon request. The benefits of
this Affordable Housing Restriction shall be in gross and shall be assignable by the City. The Grantor and subsequent Owner and the City intend that the restrictions arising hereunder
take effect upon the date hereof, and to the extent enforceability by any person ever depends upon the approval of governmental officials, such approval when given shall relate back
to the date hereof regardless of the date of actual approval or the date of recording and/or registering of any instrument evidencing such approval.
15. Foreclosure. The parties agree that this Agreement is not subject to and will NOT be subordinated to any mortage, note, loan or subsequent restriction that would be subject to any
foreclosure, without specific approval of the City, acting through the Mayor, and its Community Preservation Committee. The rights and restrictions contained herein shall not lapse
if the Property is acquired through any legal action of any kind without limitation. It is the intention of the parties that the foregoing provision shall survive any legal action,
tax title taking, foreclosure or a deed in lieu of a foreclosure.
16. Notices. Any notice, request or other communication which either party hereto may be required or may desire to give hereunder shall be made in writing, and shall be deemed to have
been properly given if hand delivered, if sent by recognized overnight courier, receipt confirmed, or if mailed by United States registered or certified mail, postage prepaid, return
receipt requested, addressed as follows:
If to Grantor:
Friends of Hampshire County Homeless Individuals, Inc.
602 North Farms Rd.
Florence, MA 01062
If to Subsequent Owner:
ServiceNet, Inc.
129 King Street
Northampton, MA 01060
If to the City:
CITY OF NORTHAMPTON
c/o Office of Planning and Development
210 Main Street, Room 11
Northampton, Massachusetts 01060
Attention: Director of Planning and Development
or such other address as the party to be served with notice may have furnished in writing to the party seeking or desiring to serve notice as a place for the service of notice. A notice
sent by certified or registered mail shall be deemed given three days after mailing; a notice sent by overnight courier shall be deemed given one day after deposit with such courier;
and a notice delivered by hand shall be deemed given upon receipt.
17. Amendment. This Affordable Housing Restriction may not be amended, nor may any obligation hereunder be waived or released, without first obtaining the written consent of the City
and the Administering Agent.
18. Governing Law. This Agreement shall be governed by the laws of The Commonwealth of Massachusetts.
No documentary stamps are required as this Affordable Housing Restriction is not being purchased by the City.
Executed under seal this _____ day of June 2008
Friends of Hampshire County Homeless Individuals, Inc.
By:
YVONNE FRECCERO, Its President
By:
STANLEY ZEWSKI, Its Treasurer
ServiceNet, Inc.
By:
BRUCE BARSHEFSKY, Its Vice President for Administration and Finance
COMMONWEALTH OF MASSACHUSETTS
Hampshire County, ss.
On this 2nd day of June, 2008, before me, the undersigned notary public, personally appeared YVONNE FRECCERO, the President of Friends of Hampshire County Homeless Individuals, Inc.,
proved to me through satisfactory evidence of identification, which was a current driver’s license to be the person whose name is signed on the preceding instrument and acknowledged
the foregoing instrument to be her free act and deed and the free act and deed of Friends of Hampshire County Homeless Individuals, Inc.
___________________________
Thomas A. Miranda, Notary Public
My Commission expires: 3/30/12
COMMONWEALTH OF MASSACHUSETTS
HAMPSHIRE, SS.
On this 2nd day of June, 2008, before me, the undersigned notary public, personally appeared and STANLEY ZEWSKI, the Treasurer of Friends of Hampshire County Homeless Individuals, Inc.,proved
to me through satisfactory evidence of identification, which was his Massachusetts Driver's License, to be the person whose name is signed on this document, and acknowledged to me that
he signed said document voluntarily for its stated purpose.
____________________________
, Notary Public
My Commission Expires:
COMMONWEALTH OF MASSACHUSETTS
Hampshire County, ss.
On this 2nd day of June, 2008, before me, the undersigned notary public, personally appeared BRUCE BARSHEFSKY, the Vice President of Administration and Finance of ServiceNet, Inc.,
proved to me through satisfactory evidence of identification, which was my personal knowledge, to be the person whose name is signed on the preceding instrument and acknowledged the
foregoing instrument to be his free act and deed and the free act and deed of ServiceNet, Inc.
___________________________
Thomas A. Miranda, Notary Public
My Commission expires: 3/30/12
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