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Home My WebLink AboutDeclaration of Deed Restrictions 619 Merritt Avenue 04-0435-0200 $ Tx:45510 6 24 RECEIVED DECLARATION OF DEED RESTRICTION DOC# 1859953 NATALIE STROHMEYER Documikirtitbtr 'LOT(' Document Title REGISTER OF DEEDS WINNEBAGO COUNTY,WI CITY CLERK'S OFFICE RECORDED ON: 08/1.2/20'! !_0:04 AM 1. PROPERTY OWNER. Cabrini School Lofts,LLC as the fee RECORDING FEE: 30.00 owner of the Property described below, hereby files the Deed 'AGES: 3 Restrictions to be attached to the Property as described in this document. Oilta)tr*Or Recording Area Name and Return Address 2. PROPERTY. The Property subject to these Deed Restrictions is City Attorney Office commonlyknown as 619 Merritt Avenue, Oshkosh,Wisconsin P 0 Box 1130 Oshkosh WI 54903-1130 54901, and is more particularly described as follows: 90404350200 Lot Two (2) of Certified Survey Map No. 7579,filed with the Winnebago County Register of Deeds on January 16, 2021 Parcel Identification Number (PIN) as Document Number 1808014, located in the Fourth Ward, Section 24, Township 18 North, Range 16 East, City of Oshkosh, Winnebago County, Wisconsin. 3. PURPOSE. Owner is redeveloping the Property previously operated as an elementary school and transforming it into housing. Among the funding sources for this redevelopment project, Owner will receive funding from the City of Oshkosh. The City's funding is part of the United States Department of Housing and Urban Development(HUD) Community Development Block Grant (CDBG)program for rehabilitation of residential rental units. The purpose of these covenants are to ensure compliance with HUD's CDBG program and City requirements. 4. COVENANT. The CDBG Rental Rehab Program and City requirements described in this 111 Declaration attach to and run with the property and will be binding upon any future purchaser throughout the term required by the City and by HUD's CDGB requirements. 5. ELIGIBILITY REQUIREMENTS. The Property will comply with HUD's CDBG program requirements, including a minimum of fifty-one percent(51%) of the rental units will be initially occupied by Low and Moderate Income tenants, as well as the project meeting at least one of three of the programs' national objectives. The program's national objectives are: a)benefitting low- and moderate-income persons; b) aiding in the prevention or elimination of slums or blight; and, c) meeting the need having a particular urgency that the City is unable to finance on its own. 6. PERIOD OF AFFORDABILITY. Notwithstanding the Owner's compliance with HUD's CDBG program requirements identified in paragraph number 5, above, the Owner will ensure that ten(10) units within this project must comply with HUD's affordability standards for a period that is the later of(a)payment in full of the Deferred Promissory Note, or(b) fifteen(15)years (the "Affordability Period"). The Affordability Period starts when the occupancy permit is issued by the City and the first unit assisted under this Program is rented out and inhabited by tenants. 7. RENTS. The project shall comply with City and HUD's CDBG program rent requirements while 1 June 2, 2021 • • ■I I these covenants are in effect. For project lease up, the Fair Market Rent as defined by the HUD Section 8 program must be used in calculating the rent in 100% of the units. a. Maximum rents to be charged in the initial leasing of at least 51% of the project units, as well as the affordability term for seventeen (17) of units will be determined by the Department of Housing and Urban Development and the City of Oshkosh. b. High Home Rents: Lesser of published Section 8 Fair Market Rents (FMR) or the published 60% rent limit. 80% (27 of the 33 units) of the total units subject to the Affordability Period must rent at this level. c. Low Home Rents: Lesser of the FMR or the published 50%rent limit. 20% (7 of the 33 units) of the total units subject to the Affordability Period must rent at this level. d. The cost of any tenant paid utility must be subtracted to determine maximum rents allowed in either category. Deductions for tenant paid utilities is based on information provided by HUD, although the City traditionally obtains calculations obtained from the Oshkosh/Winnebago County Housing Authority. This amount must be recalculated with each lease renewal 8. OCCUPANCY. The occupancy requirements while these covenants are in effect are as follows: a. No less than 20% of the CDBG assisted units must be leased to households whose income do not exceed 50% of the Area Median Income. The balance must benefit households at or below 60% of the Area Median Income. b. At the conclusion of the Rental Agreement between the property owner and the initial tenant, subsequent occupants must be at or below 60% of the Area Median Income until the end of the Period of Affordability. c. Each year, throughout the Period of Affordability,the property owner will obtain income information from each tenant and submit it to the City of Oshkosh, Department of Community Development. 9. OTHER REQUIREMENTS. All units shall meet the standards of the City's Minimum Housing Code, as well all other local, state, and federal housing standards. The City shall have the right,but not the obligation, to perform annual inspections. The preceding sentence regarding annual inspections shall not prevent the City from performing inspections related to actual or potential code violations. In cases where the City does perform the aforementioned inspections, the Owner shall facilitate the City's inspection after reasonably notice provided to the Owner. 10. ENFORCEMENT. In the event the Owner violates any of the terms of these covenants beyond the cure period provided below, the City of Oshkosh reserves the right to take such action to cure such violation. In the event Owner shall be in default in the performance or observance of any of the terms of this Declaration to be observed or performed by Owner, the City shall provide Owner written notice of the same, and Owner shall have a period of thirty (30) days following receipt of such written notice to cure any default contained in said notice. In the event of a Default, the Investor Member of the Borrower shall have the right, but not the obligation, to cure any default by the Borrower. 2 June 2, 2021 • 11. TERM. These covenants shall run to and be enforceable by the City of Oshkosh until the expiration of the Affordability Period. These covenants shall run with the land and be binding upon and enforceable against Owner, their heirs, successors, agents, and assigns. Any changes or modifications to these deed restrictions must be reviewed and approved in writing by the City of Oshkosh and filed with the Winnebago County Register of Deeds as an amendment to this Declaration of Deed Restriction. Upon expiration of the Affordability Period, the City of Oshkosh shall terminate this Declaration of Deed Restriction. Dated this ) 7>� day of S 0 G 2021. CABRINI SCHOOL LOFTS, LLC By: �a 1f,,aN L. Sou u i-f= Pre s Print Name Title STATE OF WISCONSIN ) ss. WINNEBAGO COUNTY ) Personally caiRie before me this 1 ! day of 3U11/4.1E , 2021, the above named (`�l (A/ ( L 5C 14v c.TZ, to me known to be such person who executed the foregoing instrument and acknowledged the same, for the purpose herein contained. Nota bh , e o isconsin My Co ission expires: 22-5-125 • This instrument drafted by: S 4%- �O Attorney David J.Praska _ a.* _ Oshkosh,WI 54903-1130 3 June 2, 2021 t ti • • IljrsJr