2006/11/01 Council Agenda Packet

6 Addendum No. 1 to Habitat for Humanity Subrecipient Agreement for 1917 19th Street Acquisition This Agreement is entered into this 18th day of October, 2006, by and between the City of Everett, a municipal corporation under the laws of the State of Washington("City"), and Habitat for Humanity Snohomish County Partners, a non-profit corporation("Contractor"). Witnesseth: Whereas,the City and Contractor entered into an agreement("Agreement") dated August 8, 2003,to enable the City to loan Community Development Block Grant funds to the Contractor to acquire the property located at 1917 19th Street in Everett; and Whereas,the loan terms described in Exhibit C of the Agreement required 3% simple interest, forgivable after 15 years as long as the property was used for as a single family residence for low and moderate-income people; and Whereas, Exhibit A, Section I.A requires the Contractor to construct a single family residence whose occupancy shall not exceed 50%of the Seattle/Everett LMSA median income, and that the Contractor would retain ownership of the land for a minimum of 20 years while leasing the land to the tenant, and at the end of the lease the land will be conveyed to the family; and Whereas, the Contractor has constructed a single family residence at 1917 19th Street; and Whereas, a tenant whose income does not exceed 50%of the Seattle/Everett LMSA median income occupies the residence; and Now, therefore, the City and the Contractor mutually agree as follows: Exhibit A: Section 1.A of the Agreement which reads as follows: "Habitat will construct a single family residence whose occupant's income will not exceed 50%of Seattle/Everett LMSA median income. The family will agree to occupy the premises as their principal residence and will not use it as a business. They will also warrant not to rent or lease the premises. The project will be a single family home, which meets Habitat's guidelines for low- income housing. To meet this goal, the house will not have living space that exceeds 1100 square feet and will not have a garage. The family provides 500 hours of charitable service as a down payment for the home. Homes are sold to the families by Habitat with a no interest loan. To assure the home stays as a low income resident, Habitat retains ownership of the land for a minimum of 20 years. The land is then leased back to the family at a fee determined by Habitat. At the end of the lease, (20- 30 years) the land will be conveyed to the family."