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ORDINANCE NO. 93-02 AN ORDINANCE OF THE CITY OF MOSCOW, A MUNICIPAL CORPORATION OF IDAHO, SETTING FORTH THE DONATION OF LAND TO THE IDAHO HOUSING AGENCY, AUTHORIZING THE MAYOR TO CONVEY SAID LAND BY GRANT DEED, PROVIDING THAT THE DEED CONTAIN CERTAIN CLAUSES, PROVIDING THAT THE PROVISIONS OF THIS ORDINANCE BE DEEMED SEVERABLE; AND PROVIDING FOR THIS ORDINANCE TO BE IN FULL FORCE AND EFFECT FROM AND AFTER PASSAGE, APPROVAL AND PUBLICATION ACCORDING TO LAW. WHEREAS, the City Council deems it to be in the public interest to encourage construction of affordable housing to its citizens; and WHEREAS, a need has been identified for affordable low income housing in the City of Moscow; and WHEREAS, the City of Moscow owns vacant land north of the Moscow City Cemetery which is suitable as a development site for low income housing; and WHEREAS, the City of Moscow is authorized to own, convey, and transfer real property pursuant to Idaho Code 50-301; and WHEREAS, the City of Moscow may donate real property with or without consideration pursuant to Idaho Code 50-1405; and WHEREAS, the City of Moscow may donate real property to the Idaho Housing Agency pursuant to Idaho Code 67-6223A; and WHEREAS, the City Council deems it to be in the public interest to grant by deed real property located within the City of Moscow to the Idaho Housing Agency; and WHEREAS, the City Council is assured that this donated property will be used for the sole and only purpose of providing affordable housing in the City of Moscow. ORDINANCE FOR CONVEYANCE OF LAND TO THE IDAHO HOUSING AGENCY PAGE I ---PAGE BREAK--- NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MOSCOW, IDAHO AS FOLLOWS: SECTION 1: That the City of Moscow shall convey to the Idaho Housing Agency real property more particularly described in Exhibit attached hereto and incorporated by this reference to this ordinance for the sole purpose of providing a site for the building and maintaining of low income housing in the City of Moscow. SECTION 2: That the Mayor shall be authorized to execute said conveyance and deed and related documents on behalf of the City and said deed and/or an agreement relating thereto shall contain three clauses as follows: a. A clause allowing for reversion or reconveyance to the City upon the failure to commence construction of the low income housing project as defined in section 42(g) of the Internal Revenue Code of 1986 within two years of the date of execution of such deed. b. A second clause allowing for reversion or reconveyance to the City of any real property not used for the said low income housing project. c. A third clause allowing for the City to require the specific performance by the Idaho Housing Agency of the Regulatory Agreement (Exhibit or purchase by the Idaho Housing Agency of all real property donated in the event that the real property, at any time in the future, is not used for low income housing as defined above. Section a. and b. of the foregoing shall be determined by the City no later than upon the procurement of a building permit for the said low income housing project, and the City shall either exercise its rights with respect thereto or release the deed from such restriction prior to the time construction of the said housing project begins. Section c. of the foregoing shall remain in effect in perpetuity. SECTION 3: SEVERABILITY. The provisions of this ordinance shall be deemed severable and the invalidity of any portion of this ordinance shall not affect the validity of any remaining provision. ORDINANCE FOR CONVEYANCE OF LAND TO TilE IDAHO HOUSING AGENCY PAGE2 ---PAGE BREAK--- :J94148 This Ordinance shall be in full force and effect from and after its passage, approval and publication according to law. PASSED by the City Council and APPROVED by the Mayor this 4th day of January 1993. ATTEST: A.ila,·., £24' Elaine Russell, City Clerk ORDINANCE FOR CONVEYANCE OF LAND TO THE IDAHO HOUSING AGENCY . Paul C. Agidius, May r PAGE3 ---PAGE BREAK--- GRANT DEED KNOW ALL PERSONS BY THESE PRESENTS: This deed, made this 4th day of January , 1993, between the City of Moscow, a municipal corporation of the State of Idaho, as GRA.NTOR and the Idaho Housing Agency whose address is 700 West Boise, Idaho GR*NTEE: Wherefore the GRANTOR in and for valuable consideration does hereby release, grant and convey and forever quitclaim to the GRANTEE all of GRAi"'TOR's right, title and interest in and to the following described real property located in the City of Moscow, County of Latah, State ofidaho, to-wit: See EXHIBIT to have and to hold the same, together with all of the privileges and appurtenances thereunto to said GRAl"'TEE, their heirs and assigns forever. PROVIDED, however, that this conveyance is made upon the condition that the real property herein described shall be forever held and maintained by the GRANTEE or its successors, heirs and assigns as a site for the construction and maintenance of a low income housing project in accordance with the provisions of the REGULA TORY AGREEMENT attached hereto as Exhibit and incorporated by reference to this deed. Further, if said real property is not held and maintained by the GRAi""'TEE as a low income housing project at any time in the future, the remedial provisions of Exhibit shall become effective in that event. AJI\D PROVIDED FURTHER that the work of improvement shall be begun on or before the passage of two years from the effective date of this deed, otherwise the real property described herein shall revert to the GRAl""'TOR and the GRANTEE shall prepare and record any instrument necessary to perfect the reversion rights of the GRANTOR in such real propeny. AND PROVIDED FURTHER that any real property not used to complete said construction and maintenance of a low income housing project as defined herein will automatically revert to the GRA1"'TOR not later than upon the procurement of the building permit for the project and the GRANTEE shall prepare and record any instrument necessary to perfect the reversion rights of the GRA.t"'TOR in such real property. DEED PAGE 1 ---PAGE BREAK--- In witness whereof this deed was executed this 4th day of January, 1993. Paul C. Agidius Mayor ATTEST e. J ,Lf Elaine Russell, City Clerk ACKNOWLEDGMENT On this of[ day of January, 1993, before me, a Notary Public of the State ofidaho, personally appeared Paul C. Agidius in his official capacity as Mayor of the City of Moscow, known to me to be the person described in the above document and acknowledged to me he executed the same. < • / U 4_/"7 r? Notary'Public residing at Moscow.? Commission expires: - ACKt'IIOWLEDGMENT On this z:-1- day of January, 1993, before me, a Notary Public of the State of Idaho, personally appeared Elaine Russell in her official capacity as Moscow City Clerk, known to me to be the person described in the above document and acknowledged to me she executed the same. DEED 7 Notary Public residing at Moscow. Commission expires: PAGE2 ---PAGE BREAK--- EXHIBIT 'A ' A parcel of land in the North 112 of the SW 1/4 of Section 16, Township 39 North, Range 5 West, B.M., in the County of Latah, State of Idaho, more particularly described as follows: Commencing at the northwest comer of the southwest quarter of Section 16, T. 39 R. 5 B.M. ( a brass cap monument in a case); thence South for 99.59 feet; thence N 89019'20"E for 40.00 feet to the northwest corner of Mercer Addition, recorded as Instrument No. 263962 in the Recorders Office of said County; thence N 89024'11 "E along the south right-of-way of Wnite Avenue for 403.35 feet (N 89019'20"E, 403.36, record per plat of Mercer Addition); thence South for 20.00 feet to a point on the south right-of-way of White Avenue and the TRUE POINT OF BEGIN'NING; thence N 89024'11 "E along said south right-of-way for 433.03 feet; thence South 351.34 feet to a point on the north line of the cemetery property as recorded (Warranty Deed Instrument No. 264308); thence S 87028'20"\V along the north line of the cemetery property for 314.47 feet to a found pin (see survey by Vincent J. Rhinehart, LS 888, dated 7-28-73 and file in the City of Moscow Engineer's files); thence S 77023'0"\V along the north line of the cemetery property for 122.04 feet to a found pin (said pin being the southwest corner of said Rhinehart survey and the southeast comer of said Mercer Addition); thence N 0002'40"E along the east line of said Mercer Addition for 328.79 feet to a found pin at the southeast corner of Lot 1, Block 2 of said Mercer Addition (North 328.00 record per plat); thence North along the east line of said Mercer Addition for 58.56 feet (North 58.00 record per plat) to the POINT OF BEGINNING. Containing 3.59 acres more or less. Subject to all easements and/or rights-of-way per record or apparent on ground. ---PAGE BREAK--- EXHIBIT REGULATORY AGREEMENT RELATING TO LAND DONATION THIS AGREEMENT, made and entered as of January 4, 9;lby and between the CITY OF MOSCOW, IDAHO, a municipal corporation of the State of Idaho (hereinafter referred to as the "City"), and the IDAHO HOUSING AGENCY, a public body corporate and politic, of the State of Idaho, 760 West Street, Boise, Idaho (hereinafter referred to as the "Agency"). WITNESSETH: WHEREAS, the City proposes to donate to the Agency certain land described on Exhibit attached hereto (the "Land") upon which the Agency intends to cause to be constructed an apartment project for low income persons (the "Project"); and WHEREAS, it is contemplated that the Project to be constructed on the Land will be a low income housing project within the meaning of Section 42(g) of the Internal Revenue Code of 1986 as amended (the "Code") and the City requires assurances that the Project will remain such permanently. NOW, THEREFORE, in consideration of the mutual covenants and conditions it is hereby agreed by and between the parties hereto, and their respective successor and assigns, as follows: I. Definitions and Interpretation. Unless otherwise expressly provided herein or unless the context clearly requires otherwise, the following terms shall have the respective meanings set forth below for all purposes of this Agreement: "Agency" means the Idaho Housing Agency established under Title 67, Chapter 62, Idaho Code, as amended. "Code" means the Internal Revenue Code of 1986, as amended. REGULATORY AGREEMENT RELATING TO LAND DONATION PAGE 1 ---PAGE BREAK--- "Land" means the real property described on Exhibit attached hereto. "Owner" means the then current owner of the Land and the Project, initially the Agency. "Project" means a low income housing project, within the meaning of Section 42(g) of the Code to be constructed on the Land. "City" means the City of Moscow, Idaho, a municipal corporation of the state ofldaho a94148 Unless the context clearly requires otherwise, words of the masculine gender shall be construed to include correlative words of the feminine and neuter genders and vice versa, and words of the singular number shall be construed to include correlative words of the plural number and vice versa. This Agreement and all the terms and provisions hereof shall be construed to effectuate the purposes set forth herein and to sustain the validity hereof The terms and phrases used in the recitals of this Agreement have been included for convenience of reference only and the meaning, construction and interpretation of all such terms and phrases for purposes of this Agreement shall be determined by reference to this Section. The titles and headings of the Sections of this Agreement have been inserted for convenience of reference only and are not to be considered a part hereof and shall not in any way modifY or restrict any of the terms or provisions hereof and shall never be considered or given any effect in construing this Agreement or any provision hereof or in ascertaining intent, if any question of intent shall arise. 2. Condition of Continuation of Project as a Low Income Housing Project. The Project shall continue as a low income housing project within the meaning of Section 42(g) of the Code in perpetuity. In furtherance thereof, units in the Project shall be rented to members of the general public at rents and in accordance with the occupancy restrictions set forth in Section 42 of the Code and regulations promulgated thereunder. 3. Inspections. The records, documents of the Project, and other papers relating to the rentals of units within the Project shall be subject to examination and inspection at any reasonable time by the City or its authorized agents. Such inspections shall be for the limited purpose of verifYing the use of the project as a low income housing project and shall not be considered as evidence of partnership or control. REGULATORY AGREEMENT RELATING TO LAND DONATION PAGE2 ---PAGE BREAK--- 4. Subordination to Financing. Notwithstanding anything in this Agreement to the contrary, the provisions hereof are subject to all applicable financing as evidenced by valid encumbrances recorded against the Land and/or the Project. In the event of foreclosure or transfer of title by deed-in-lieu of foreclosure, this Agreement shall automatically terminate. At such time, the Agency shall pay to the City the sum of THIRTY FIVE THOUSAND DOLLARS ($35,000.00), said sum representing the estimated value of the real property at the time of execution of this Agreement. This obligation shall be solely the obligation of the Agency (and not the obligation of any subsequent owner) and shall survive the aforesaid termination of this Agreement. 5. Severability. The invalidity of any clause, part or provision of the Agreement shall not affect the validity of the remaining portions thereof 6. Modification. This Agreement may not be altered, modified or amended except in writing signed by the City and the Owner. 7. Remedies Upon Default. Upon violation of any provision of this Regulatory Agreement by the Agency or its heirs or assigns the City or its agent may give written notice thereof to the Owner and/or any lienholder of record, by this Regulatory Agreement, or such other address as may be designated by the Agency or other Owner as its legal business address. If such violation is not corrected to the satisfaction of the City within thirty (30) days after the date such notice is mailed or within such further time as the City or its agent reasonably determines is necessary to correct the violation, the City or its agent may, without further notice, declare a default under this Regulatory Agreement, effective on the date of such declaration, and thereupon the City or its agent may, in addition to those actions permitted by law, apply to any court, State or Federal, for specific performance of the covenants and agreements contained herein or, for an injunction against any violation of such covenants and agreements or for such other relief as may be appropriate since the injury to the City arising from a default under any of the terms of this Regulatory Agreement would be irreparable and the amount of damage would be difficult to ascertain. The City's election to pursue any one or more of the above remedies shall not be construed to preclude or to be a waiver of the City's right to pursue any other action necessary to enforce the rights of the City under this Agreement. REGULATORY AGREEMENT RELATING TO LAND DONATION PAGE3 ---PAGE BREAK--- IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have set their hands as of the day and year first above written. CITY OF MOSCOW, IDAHO IDAHO HOUSING AGENCY d Z I I jf/1 l. / by: c> LiZ._ by: Paul C. Agidius, Mafor Authorized Officer ATTEST: Elaine Russell, City Clerk ACKNOWLEDGMENT STATE OF IDAHO ) ) ss County of Latah ) On this.:;z:t:.· day of v 1993, before me, the undersigned, a Notary in and for said State, personalfYappeared Paul C. Agidius, in his official capacity as the Mayor of the City of Moscow, Idaho that executed the foregoing instrument on behalf of the City, and acknowledged to me that such City executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year hereinabove written. AGREEMENT RELATING TO LAND DONATION ( ( / /7 F 7; / c tff._ NOTARY PUBLIC for Idaho Residing at LLLL::'::. My Commission expires: < PAGE4 ---PAGE BREAK--- ACKNOWLEDGMENT STATE OF IDAHO ) ) ss County of Latah ) On this day of h--n 1993, before me, the undersigned, a Notary in and for said State, personally 'appeared Elaine Russell, in her official capacity as the Clerk of the City of Moscow, Idaho that executed the foregoing instrument on behalf of the City, and acknowledged to me that she executed the same, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year hereinabove written, STATE OF IDAHO AdtA.. County oÉ ACKNOWLEDGMENT ) ) ss ) On this _}J!day of 1993, before me, the undersigned, a Notary in and for said State, personally appeareT 1!1/. H«"-ftr , in his/her official capacity as an authorized representative of the Idaho Housing Agency that executed the foregoing instrument and acknowledged to me that such Agency executed the same, IN \\'ll]{ESS WHEREOF, I have hereunto set my hand and affixed my official seal the hnd:f!1<}i: .reinabove written, ' 0 REGULATORY AGREEMENT RELATING TO LAND DONATION PAGES 148