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HomeMy WebLinkAbout17-32 Resolution No. 17-32 RESOLUTION AUTHORIZING EXECUTION OF A FIRST AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM AGREEMENT BETWEEN THE CITY OF ELGIN AND HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY, INC. (511 Washburn Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that David J. Kaptain, Mayor, and Kimberly A. Dewis, City Clerk, be and are hereby authorized and directed to execute a First Amendment to Neighborhood Stabilization Program Agreement Between the City of Elgin and Habitat for Humanity of Northern Fox Valley, Inc. on behalf of the City of Elgin with Habitat For Humanity of Northern Fox Valley regarding the property commonly known as 511 Washburn Street, a copy of which is attached hereto and made a part hereof by reference. s/David J. Kaptain David J. Kaptain, Mayor Presented: February 22, 2017 Adopted: February 22, 2017 Omnibus Vote: Yeas: 8 Nays: 0 Abstained: 1 Attest: s/Kimberly Dewis Kimberly Dewis, City Clerk FIRST AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM AGREEMENT BETWEEN THE CITY OF ELGIN AND HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY, INC. This AMENDED AGREEMENT is entered into as of the 22nd day of February , 2017, by and between the CITY OF ELGIN, Illinois, a body corporate and politic of the State of Illinois with offices at 150 Dexter Court, Elgin, Illinois ("CITY") and HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY, INC., an Illinois not-for-profit corporation having a principal place of business at 56 South Grove Avenue, Elgin, Illinois, 60120 ("DEVELOPER"). RECITALS WHEREAS,the Illinois General Assembly has granted the CITY authority to enter into agreements for the purposes of receiving funds from the United States government under the "Housing and Community Development Act of 1974," and other subsequent housing acts, and may disburse those funds and other CITY funds for community development and other housing program activities (Illinois Complied Statutes, Chapter 65, paragraph 5/11-39.1-1); and WHEREAS, the CITY is a home rule unit which may exercise any power and perform any function relating to its government and affairs; and WHEREAS, in 2008, the United States government appropriated funds for emergency assistance for the redevelopment of abandoned and foreclosed upon homes and residential properties under Title III of the Housing and Economic Recovery Act of 2008 (Pub. L 110-289, 122 Stat. 2850, enacted July 30, 2008)("HERA"), to be treated as though such funds were Community Development Block Grant funds under the Housing and Community Development Act of 1974, (Pub. L 93-383) as amended (the "ACT") and to be administered through the United States Department of Housing and Urban Development("HUD"); and WHEREAS, on July 14, 2010, the CITY selected Habitat For Humanity of Northern Fox Valley, Inc. as the DEVELOPER and entered into agreements to convey to DEVELOPER four abandoned or foreclosed upon homes to be rehabilitated and sold by DEVELOPER to qualified home buyers; using a portion of funds available from the CITY'S NSP funds for the redevelopment and sale of such homes; and WHEREAS, on June 24, 2015, the CITY and DEVELOPER further entered into an AGREEMENT to convey certain vacant property owned by City and provide $450,000 in funds derived from the City's NSP program income gained from the sale of the City's rehabilitated homes for the further acquisition, rehabilitation, reconstruction and sale of five foreclosed, abandoned or blighted residential properties in Elgin; and WHEREAS, Section VI of AGREEMENT between the CITY and DEVELOPER 1 entitled "Program Income" provides conditions for the accounting, submission to CITY and reporting of proceeds from the sales of rehabilitated homes from DEVELOPER within paragraph (a); and further defines the payments or proceeds from the sales of rehabilitated homes received by DEVELOPER as "Program Income," requiring these proceeds to be accurately accounted for and re-used to benefit eligible households in an area of greatest need within the city and for a time period equal to the minimum affordability requirement period for the subject property; and WHEREAS, Pursuant to federal notice at Docket No. FR-5447-N-01 (Federal Register 75, page 6433724), Section N (1) — "the definition of program income at 24CFR §570.500(a) shall be applied to amounts received only by states,units of general local government, and subrecipients," and WHEREAS, Habitat for Humanity of Northern Fox Valley is DEVELOPER for the CITY as it relates to the acquisition and rehabilitation of properties under said AGREEMENTS; and WHEREAS, Pursuant to NSP Policy Alert entitled "Program Income in the Neighborhood Stabilization Program, dated July 13, 2011, Subrecipient and Developers provides that "Revenues received by developers are not considered program income." WHEREAS, DEVELOPER possesses the legal authority to amend any agreement to undertake the activities described herein and its governing body has duly adopted or passed as an official act, a resolution, motion or similar action authorizing the person identified as the official representative of the DEVELOPER to execute the AMENDED AGREEMENT,all understandings and assurances contained herein, and directing the authorization of the person identified as the official representative of the DEVELOPER to act in connection with the execution of the AMENDED AGREEMENT and to provide such additional information as may be required; and WHEREAS, the CITY and DEVELOPER now enter into this AMENDED AGREEMENT pursuant to their respective powers to enter into such Agreements,as those powers are defined in the Illinois Constitution and applicable statutes. NOW, THEREFORE, for and consideration of the mutual promises and undertakings set forth herein,and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: A. The agreement entitled Neighborhood Stabilization Program (NSP) Agreement Between the City of Elgin and Habitat for Humanity of Northern Fox Valley to Rehabilitate and Sell 511 Washburn Street; Elgin, Illinois 60123, executed on July 6, 2010, and hereto attached as Exhibit"A"be and is hereby amended only as stipulated as follows: Pursuant to NSP Policy Alert entitled "Program Income in the Neighborhood Stabilization Program, dated July 13,2011, Section VI entitled "Program Income" shall be deleted in its entirety and replaced with the following section: VI. REVENUES FROM THE SALE OF NSP HOMES 2 A. Payments received by DEVELOPER on the notes and mortgages between DEVELOPER and the homebuyer/purchaser of the PROPERTY are considered proceeds from the sale of homes and will be not be subject to the requirements of program income as outlined in CFR Part §570.500(a). B. CITY agrees that such revenues from the sale of NSP homes shall not be returned to the CITY, but must be accurately accounted for, and must be reused by DEVELOPER on projects related to the rehabilitation of homes within the municipal boundaries of the city of Elgin that benefit INCOME ELIGIBLE HOUSEHOLDS OR NEIGHBORHOODS in a CITY approved area of greatest need within the CITY, or for purposes prioritized by CITY related to affordable housing or other community development related activities,and for a time period equal to the minimum affordability requirements period for such projects or activities. C. CITY further agrees that although DEVELOPER shall not be required to report to CITY on the future revenues and payments received from the reinvestment of these proceeds from the sale of homes,CITY requires the DEVELOPER to maintain detailed accounting records in the form and manner previously approved by CITY.Such records shall be made available to city from time to time, or when requested by CITY, should HUD require additional reporting or monitoring periods. B. Consent: By their signatures hereto, the CITY AND DEVELOPER consent to the modifications and agreements set forth above. C. In the event of any conflict between the terms of the Agreement, the terms of this First Amendment to the Agreement,the terms of this First Amendment shall control. In all other respects, the Agreement shall remain in full force and effect as originally written. SIGNATURE PAGE FOLLOWS 3 IN WITNESS WHEREOF, the parties hereto have executed this FIRST AMENDMENT TO AGREEMENT on the dates recited below to be effective on the date first written above. CITY OF ELGIN, a body politic in the State of Illinois. By: Qe; David Ka ain, Iffayor City of Elgin Date: February 22, 2017 Attest: Kimberly A. De%44, City Clerk DEVELOPER: HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY an Illinois not-for-profit corporation Address: 56 South Grove Avenue, Elgin, Illinois, 60120 By: V"t't-- Barbara Beckman, E ecutive Director Date: I( ' Attest: 4 EXHIBIT A NEIGHBORHOOD STABILIZATION PROGRAM(NSP)AGREEMENT BETWEEN THE CITY OF ELGIN AND HABITAT FOR HUMANITY OF NORTHERN FOX V ALLEY TO REHABILITATE AND SELL 511 WASHBURN STREET; ELGIN, ILLINOIS 60123 5 G NEIGHBORHOOD STABILIZATION PROGRAM (NSP)AGREEMENT BETWEEN THE CITY OF ELGIN AND HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY TO REHABILITATE AND SELL 511 WASHBURN STREET, ELGIN, ILLINOIS 60123 This AGREEMENT is entered into as of the � day of Lt y , 2010, by and between the CITY OF ELGIN, Illinois, a body corporate and politic of the State of Illinois with offices at 150 Dexter Court, Elgin, Illinois ("CITY") and HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY, an Illinois not-for-profit corporation having a principal place of business at 20 S. Grove, Suite 201, Carpentersville, Illinois, 60110("DEVELOPER"). RECITALS WHEREAS, the Illinois General Assembly has granted the CITY authority to enter into agreements for the purposes of receiving funds from the United States government under the "Housing and Community Development Act of 1974," and other subsequent housing acts, and may disburse those funds and other CITY funds for community development and other housing program activities(Illinois Complied Statutes, Chapter 65, section 5/11-39.1-1);and, WHEREAS, the CITY is a home rule unit which may exercise any power and perform any function relating to its government and affairs; and, WHEREAS, the United States government has appropriated funds for emergency assistance for the redevelopment of abandoned and foreclosed upon homes and residential properties under Title III of the Housing and Economic Recovery Act of 2008 (Pub. L 110-289, 122 Stat. 2850, enacted July 30, 2008) ("HERA"), to be treated as though such funds were Community Development Block Grant funds under the Housing and Community Development Act of 1974, (Pub. L 93-383) as amended (the "ACT") and to be administered through the United States Department of Housing and Urban Development("HUD"); and, WHEREAS, the CITY has applied to HUD for HERA funds ("CITY'S NSP funds") to be used for a Neighborhood Stabilization Program ("NSP") for the purpose of acquiring and redeveloping abandoned and foreclosed homes and residential properties that might otherwise become sources of blight within Elgin neighborhoods;and, WHEREAS, the CITY, as part of its application to HUD, held a citizen participation period to solicit comment and input from not-for-profit organizations and social service agencies to partner with the CITY to carry out and execute the goals and objectives of NSP, specifically to assist to acquire and redevelop foreclosed and abandoned properties for affordable housing for low-income families under the NSP; and, WHEREAS, the CITY has selected the DEVELOPER and hereby agrees to distribute to DEVELOPER a portion of funds available from the CITY'S NSP funds for the purposes set forth herein, the portion distributed to DEVELOPER being in an amount and upon the conditions provided herein, and, I WHEREAS, the DEVELOPER is fully qualified and possesses the requisite skills, knowledge, qualifications and experience to perform the work described herein; and, WHEREAS, DEVELOPER possesses the legal authority to execute an agreement to undertake the activity described herein and its governing body has duly adopted or passed as an official act, a resolution, motion or similar action authorizing the person identified as the official representative of the DEVELOPER to execute the AGREEMENT, all understandings and assurances contained herein, and directing the authorization of the person identified as the official representative of the DEVELOPER to act in connection with the execution of the AGREEMENT and to provide such additional information as may be required; and, WHEREAS, the various undertakings by the CITY in this AGREEMENT pertain to the government and affairs of the City and are authorized by law; and, WHEREAS, the CITY and DEVELOPER enter into this AGREEMENT pursuant to their respective powers to enter into such agreements, as those powers are defined in the Illinois Constitution and applicable statutes. NOW, THEREFORE, for and consideration of the mutual promises and undertakings set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree as follows: I. INCORPORATION AND CONSTRUCTION A. All recitals set forth above are incorporated herein and made part hereof, the same constituting the factual basis for this AGREEMENT. B. The section headings of the paragraphs and subparagraphs of this AGREEMENT are for convenience of reference only and shall not be deemed to constitute part of this AGREEMENT or to affect the construction hereof. 11. CONVEYANCE OF THE SUBJECT PROPERTY The CITY hereby agrees to convey, in consideration of one dollar, the property commonly known as 511 Washburn Street, Elgin, Illinois 601203, P.I.N. 06-23-210-007 (the "PROPERTY") to DEVELOPER. A contract providing for the sale of the PROPERTY, to be entered into concurrently with this AGREEMENT, is attached hereto as Exhibit A. 111. STATEMENT OF WORK AND ELIGIBLE COSTS A. STATEMENT OF WORK SUMMARY: The DEVELOPER hereby agrees to perform activities described in this Section III in accordance with the time periods specified in Section V hereof. The DEVELOPER shall utilize NSP funds for eligible costs associated with the rehabilitation and resale of the PROPERTY to a low-income eligible household as specified in Section 111 and Section IV hereof(the "PROJECT"). 2 B. SCOPE OF WORK AND COST ESTIMATES: Within the time period specified in Section V hereof, the Developer shall prepare and submit to the City for its approval a detailed scope of work ("Scope of Work") providing for the rehabilitation of the PROPERTY in accordance with the rehabilitation standards contained herein, and detailed cost estimates for the same. Upon approval by the City, the Scope of Work and Cost Estimates shall be incorporated into this AGREEMENT as Exhibit B. C. PERFORMANCE OF THE WORK AND REHABILITATION STANDARDS: The DEVELOPER agrees to rehabilitate and renovate the PROPERTY in accordance with the Scope of Work and the terms, conditions and provisions of this AGREEMENT. The PROPERTY shall be rehabilitated in accordance with the CITY "housing rehabilitation standards," which are defined as those standards currently in place under the City of Elgin Property Maintenance Code, Chapter 16.12 of the Elgin Municipal Code, 1976, as amended. The standard requires that all buildings purchased for redevelopment be brought up to local code, that required building permits be obtained, and that appropriate inspections be performed. In addition the rehabilitation of the PROPERTY shall include, but not be limited to, any repairs or alterations necessary to provide for the conversion of the PROPERTY from a multi-unit residential use to a single-family use. DEVELOPER shall permit CITY to erect a sign in a prominent place at the PROPERTY crediting the City of Elgin, Community Development Group and HUD for funding of the PROJECT. D. DEVELOPER may subcontract all or any portion of the PROJECT, as allowed by CITY policy, to such engineers, architects, construction contractors or other entities as DEVELOPER shall deem appropriate or necessary and upon such terms as may be acceptable to DEVELOPER, provided applicable administrative and procurement requirements are followed as set forth in Sections VII and VIII of this AGREEMENT. DEVELOPER certifies that it will include in its contracts financed in whole or in part with NSP funds, all clauses required by Federal laws, executive orders, or regulations, and each contractor will also include in its subagreements and contracts financed in whole or in part with NSP funds all applicable clauses required by Federal laws, executive orders, or regulations. E. COMPLIANCE WITH LAWS: Notwithstanding anything to the contrary in this AGREEMENT, it is expressly agreed and understood by the DEVELOPER that in performance of this AGREEMENT and the rehabilitation of the PROPERTY that the DEVELOPER shall also comply with all applicable federal, state, city and other requirements of law. DEVELOPER shall also at its expense secure all permits and licenses, pay all charges and fees and give all notices necessary and incident to the due and lawful prosecution of the work necessary to provide for the rehabilitation of the PROPERTY as described in this AGREEMENT, subject to any reimbursement by the CITY as provided herein. All costs of the rehabilitation of the PROPERTY shall be paid in accordance with the terms of this AGREEMENT. The rehabilitation of the PROPERTY shall be in accordance with all City standards and regulations relating to historic preservation, as applicable. 3 F. SALE TO INCOME ELIGIBLE HOUSEHOLD: After rehabilitation, the DEVELOPER shall sell the PROPERTY to a household whose income does not exceed fifty percent (50%), of the median family income of the Chicago-Naperville-Joliet MSA as published by HUD from time to time, adjusted for family size (hereinafter INCOME-ELIGIBLE HOUSEHOLDS). Households shall be determined to be INCOME-ELIGIBLE HOUSEHOLDS using the IRS Form 1040 Adjusted Gross Income definition of income calculation. The DEVELOPER shall be responsible for identifying a qualified new owner following the completion of the rehabilitation of the PROPERTY in accordance with the terms and provisions of the AGREEMENT. Notwithstanding anything contained herein to the contrary, in the event the income eligibility threshold relating to INCOME-ELIGIBLE HOUSEHOLDS is raised subsequently by HUD or under HERA, or any successor entities or laws, the income eligibility threshold for purposes of this AGREEMENT shall then be deemed such new and raised income eligibility threshold. IV. ELIGIBLE COSTS BUDGET; REIMBURSEMENT PROCEDURES; TERMS OF NSP FUNDING RELATING TO RESALE TO INCOME ELIGIBLE HOUSEHOLDS A. The Eligible Costs budget eligible to be disbursed to the DEVELOPER, as described in Section 111, shall be in a total amount not to exceed $31,660. The eligible costs are to be obligated to the PROJECT in accordance with Section V. For the purposes of this AGREEMENT, obligated includes eligible rehabilitation costs for which work may not have been completed, but for which a bid has been awarded or for which a detailed cost estimate has been provided. B. ELIGIBLE COSTS: DEVELOPER agrees to administer the PROJECT in accordance with the following: the ACT; HERA; Federal Register Notice, Vol. 73, No. 194, published October 6, 2008; Title 24 CFR Part 570 (Community Development Block Grants); and other applicable federal, state, and local laws, ordinances and regulations. DEVELOPER shall require such compliance and assurances in all lower tier contracts and subcontracts financed in whole or in part with the NSP funds. DEVELOPER shall perform all acts with responsibility to the CITY in the same manner as the CITY is required to perform all acts with responsibility to the Federal government. The scope of activities to be performed, pursuant to this AGREEMENT, will be governed by, and limited to, the following: 1. DEVELOPER may not request disbursement of funds under this AGREEMENT until the funds are needed for payment of eligible costs. The amount of each request must be limited to eligible costs as reasonably determined by the CITY. 2. CITY shall provide NSP funds to DEVELOPER to reimburse DEVELOPER for eligible costs that the CITY determines to be customary and reasonably associated with the PROJECT,as follows: a. Costs of rehabilitation, as applicable, including supplies, materials, and hiring contractors, subcontractors, and trades necessary to complete the work. All work 4 for which a licensure or certification program exists locally or in the State of Illinois must be carried out by properly licensed or certified persons. b. Usual and customary costs associated with carrying each PROPERTY until it is sold to an eligible household, including, but not limited to, management fees, maintenance costs, insurance, real estate taxes, and replacement reserves. c. Costs associated with the sale of each PROPERTY to an INCOME ELIGIBLE HOUSEHOLD, including, but not limited to, the costs of advertising the unit for sale, homebuyer counseling by a HUD certified home owner counseling agency, screening potential homebuyers, performing income qualification procedures, reasonable attorneys' fees and preparing required documentation. d. Other such related costs that have the same intent as this AGREEMENT, that are customary and reasonably pre-approved by the CITY, and that are eligible for NSP funding. C. Reimbursement for rehabilitation or resale costs of a PROPERTY shall be pursuant to the following provisions and subject to the submission of the following information to the CITY: 1. An original, executed Request for Payment form. 2. A detailed scope of work for the rehabilitation for which reimbursement is being requested. 3. Receipts for materials, appropriate lien waivers from contractors, and, "paid in full" or "paid to date" invoices from contractor with copy of DEVELOPER'S payment check(s). 4. Additional customary documentation, if requested, at reasonable discretion of CITY. 5. DEVELOPER may request reimbursement of eligible rehabilitation or construction costs on an ongoing basis throughout the rehabilitation period. 6. Any change orders requested by contractors and subcontractors in excess of$5,000 must be sent by DEVELOPER with a letter of explanation stating the cause and need for the change order to the CITY for approval prior to authorization of work. The CITY shall have three (3) business days to approve or reject (with an explanation) such change or such change order shall be deemed approved; provided, however, that in no event shall the total costs to the CITY under this AGREEMENT exceed the not- to-exceed amount of$31,660 set forth in Section IV.A,above. D. Upon release of funds by HUD for the PROJECT, the CITY shall make disbursements to the DEVELOPER in compliance with Sections IV.B and IV.C., above. All claims of DEVELOPER shall comply with the following requirements: 5 I. DEVELOPER shall submit a listing of all disbursements of NSP funding, on a form provided by the CITY. 2. Any request for reimbursement or advancement pertaining to work under contracts and subcontracts shall include DEVELOPER'S certification as follows: a. For interim payments to contractors and subcontractors,certification that the work for which payment is requested has been performed and is in place and to the best of DEVELOPER'S knowledge, information and belief, the quality of such work is in accordance with the subcontract, subject to: (i) any evaluation of such work as a functioning project upon substantial completion; (ii) the results of any subsequent tests permitted by the subcontract; and (iii)any defects or deficiencies not readily apparent upon inspection of the work; and; b. For final payment, that the work has been performed in a good, workmanlike, satisfactory manner and in conformance with the subcontract and local building code. 3. Processing of all requests for payment shall be contingent upon the submission of the required documentation to CITY that fully complies with all applicable Federal, state, CITY or local statutes, rules or regulations. CITY reserves the right to withhold funded amounts until all such requirements are met. Requests for payment meeting such requirements shall be paid by the CITY within thirty (30)days of receipt of such request by the CITY. 4. If so requested by CITY, DEVELOPER shall forward to the CITY all billings, vouchers, and other documents representing any accounts payable, in such timely and reasonable manner as both parties shall determine. E. Resale of the PROPERTY to an income eligible household shall be subject to the submission of the following information to the CITY prior to closing and in accordance with the following procedures: 1. Original, executed Request for Payment form, if closing will require NSP funds from CITY. 2. A copy of either (a) the executed contract or (b) other written instrument used by DEVELOPER for the sale or conveyance of real estate between DEVELOPER and purchaser. 3. Documentation of the purchaser household characteristics and income in a form reasonably approved by the CITY. 4. Documentation verifying that purchaser has completed eight hours of homebuyer counseling from a HUD approved homebuyer counseling agency. 6 5. A copy of financing commitment letter from DEVELOPER or other lender(s), if any. 6. A copy of Truth-in-Lending statement from DEVELOPER or other lender(s), if any. 7. Copy of a certificate of insurance or letter from an insurance carrier to the effect that as of the date of the conveyance, the purchaser will have a hazard insurance policy for the PROPERTY. 8. Information as to date, time, and location of closing. 9. The sales price of any PROPERTY shall be the lesser of the appraised value or the aggregation of all costs of acquisition, rehabilitation, and redevelopment. DEVELOPER shall also record deed restrictions against each PROPERTY in a form customary for conveyances of this nature and reasonably acceptable to CITY to ensure long-term affordability. F. RESALE AND AFFORDABILITY: Housing assisted with NSP funds must meet the affordability requirements of 24 CFR 92.954,and funds must be repaid to the CITY if the PROPERTY does not meet the affordability requirements for the specified time period. To maintain such affordability, the deed of conveyance conveying the PROPERTY from the CITY to the DEVELOPER shall contain a provision making such conveyance subject to the terms and obligations of this AGREEMENT and to provide for continued affordability of the PROPERTY to an INCOME ELIGIBLE HOUSEHOLD for a period of fifteen (15) years. All of the following conditions shall be included in the deed restrictions. In the event that any one or more of these conditions occurs or fails to be satisfied, the DEVELOPER shall be considered in default: I. For the purposes of this AGREEMENT "affordable" or "affordability" shall be defined as a condition where the total fixed costs (principal, interest, taxes and insurance) for a purchaser of the PROPERTY do not exceed thirty-five percent(35%) of the purchaser's household income. The "affordability period"shall be defined as a period of fifteen (15) years from the date of"project completion." defined at 24 CFR §92.2 as when all necessary title transfer requirements to the purchaser have been performed and construction work has been completed on the PROPERTY. 2. The DEVELOPER fails to sell the PROPERTY as affordable housing for households whose incomes are below 50% of the median family income as defined in Section III.F, above. 3. If during the affordability period the PROPERTY is subsequently sold to a purchaser with household incomes not below the fifty percent (50%) of the median family income as defined in Section III.F, above. 4. If the PROPERTY ceases to be occupied and used as the primary place of residence for any purchaser that is on the title to the home, provided however, that in the event 7 the PROPERTY ceases to be a purchaser's primary place of residence, CITY will allow a reasonable amount of time, not to exceed sixty (60) days, to permit either (a) DEVELOPER to repurchase the PROPERTY for resale to an ELIGIBLE-INCOME HOUSEHOLD, or (b) the PROPERTY to otherwise be sold to an INCOME- ELIGIBLE HOUSEHOLD, prior to otherwise enforcing said residency requirement. 5. If the DEVELOPER files any petition in bankruptcy, or for a receiver, or insolvency, or for reorganization of composition, or makes any assignment for the benefit of creditors or to a trustee for creditors, or permits an adjudication in bankruptcy, the taking of possession of the PROPERTY or any part thereof by the receiver, or the seizure and sale of the PROPERTY or any part thereof under judicial process or pursuant to any power of sale, and fails to have such adverse action set aside within ninety(90)days. 6. The DEVELOPER transfers, or otherwise encumbers the PROPERTY, without the prior express written consent of the CITY; provided, however, no such express written consent of the CITY is required for the transfer to the DEVELOPER pursuant to this AGREEMENT, including Exhibit A hereof. 7. If the DEVELOPER fails to maintain during its ownership the PROPERTIES or any PROPERTY and its grounds and equipment pertinent thereto according to applicable housing quality standards and all local and state codes and ordinances. 8. If the DEVELOPER shall fail to purchase fire and extended coverage insurance and flood insurance, if required, thereon and provide and file a certificate of said coverage with the CITY, the proceeds of which, in the event said structure shall be destroyed or damaged by fire or other casualty, shall be used for reconstruction of said structure upon the said real estate. 9. The foregoing notwithstanding, in the event of any sale by a purchaser of the PROPERTY, the purchaser shall be entitled to receive a fair return on the purchaser's investment. The purchaser's investment is defined as the sum of the purchaser's down payment, principal payments and capital improvements. In the event of a default with respect to one or more of the conditions above, and/or in the event the DEVELOPER otherwise breaches the terms of this AGREEMENT, which default has not been cured within thirty (30) days after receipt of written notice of such default, the City may file suit within the Circuit Court for the Sixteenth Judicial Circuit, Kane County, Illinois, for a determination that the DEVELOPER has so breached this agreement and may then pursue any and all available remedies at law, equity or otherwise including but not limited to recapturing the amount of any subsidy provided under this AGREEMENT and/or terminating the DEVELOPER's and any purchaser's rights in and to the PROPERTY and requiring the conveyance of the PROPERTY back to the CITY free and clear of all rights of the DEVELOPER and any other person or entity. Upon the expiration of the affordability period, the CITY agrees to provide the DEVELOPER a release from the deed restrictions in recordable form. Notwithstanding the foregoing to 8 the contrary, DEVELOPER shall have the right to make it a deed restriction that it shall have the right of first refusal to repurchase the PROPERTY should the purchaser sell the PROPERTY to a subsequent buyer who is not deemed an INCOME ELIGIBLE HOUSEHOLD in which case, such sale shall not be deemed an event of default under this AGREEMENT. V. SCHEDULE FOR COMPLETION AND TIMELINESS; REHABILITATION; TERM OF AGREEMENT A. Time is of the essence of this AGREEMENT. DEVELOPER shall be responsible for meeting the completion dates for the activities listed below. if a DEVELOPER does not meet a completion date, DEVELOPER shall immediately submit a revised implementation schedule for approval by the CITY. The DEVELOPER shall be required to secure all permits to complete the rehabilitation of the PROPERTY in accordance with the Scope of Work. If the DEVELOPER bids out any or all of the rehabilitation work, the bids shall be based on the Scope of Work. Once the DEVELOPER has secured permits for the PROJECT, the CITY will provide a Notice to Proceed. Activity Completion Date 1. Complete Scope of Work and Cost Estimates July 23, 2010 on rehabilitation: 2. Obligate funds in accordance with section III.A, herein: July 23, 2010 3. Complete bids on rehabilitation; Secure permits: September 1, 2010 4. Completion of Demolition, Interior and Exterior: November 1, 2010 5. Foundation and Structural Supports of Primary Structure: December 30, 2010 6. Exterior of Primary Structure: June 1, 2011 7. Rough Framing, Rough Electrical, Rough Plumbing. June 1, 2011 8. Venting and Air Conditioning Systems: June 15, 2011 9. Finish Inspection and Project Completion: July 15, 2011. B. DEVELOPER shall complete specific obligation of NSP Funds pursuant to the PROJECT by July 23, 2010. If DEVELOPER is delayed in the obligation of the PROJECT funds by any cause legitimately beyond its control, as determined by the CITY, such that it cannot obligate the PROJECT funds by the July 23, 2010, it shall immediately give written notice to the Director of Community Development ("Director') and to the CITY of the anticipated delay, the reasons therefore and request an extension to obligate funds to the PROJECT. Under no circumstances shall the time extended by the Director be later than July 30, 2010. The CITY agrees to reasonably assist DEVELOPER in obtaining permits for the PROJECT, and to process such permits in a 9 reasonably expeditious manner. Notwithstanding anything contained herein or in this AGREEMENT to the contrary, for so long as the DEVELOPER is diligently pursuing the permitting process with the CITY and the CITY and the DEVELOPER are working on obtaining and granting, as applicable, the permit, the failure to secure such permit(s) by September 1, 2010 shall not be deemed an event of default of a nature allowing the CITY to terminate this AGREEMENT. C. DEVELOPER shall commence with the rehabilitation of the PROPERTY in accordance with the schedule above. Upon DEVELOPER commencing with rehabilitation of the PROPERTY, DEVELOPER shall continue with such rehabilitation in as expeditious manner as is reasonably practicable. DEVELOPER shall complete the rehabilitation of the PROPERTY in accordance with the schedule above; provided, however, that such Completion Date for the rehabilitation of the PROPERTY shall be extended by one (1) day for each day which construction is delayed or stopped due to accident, strikes, shortage of materials, extreme weather or acts of God. In the event DEVELOPER requires any further extension of the Completion Date for the rehabilitation of the PROPERTY, any such request shall be submitted to the CITY in writing specifying the reasons for such an extension and the amount of additional time being requested. Any agreement by the City to further extend the Completion Date for the rehabilitation of the PROPERTY shall be at the commercially reasonable discretion of the City Council of the CITY. The rehabilitation of the PROPERTY shall be deemed completed when the DEVELOPER has completed all of the work involved with the proposed rehabilitation of the PROPERTY and has obtained a final inspection and final occupancy permit for the PROPERTY from the CITY. D. After a period of three (3) months from the date of this AGREEMENT, the Director may review the progress of the PROJECT. At the time of this review, if the DEVELOPER has not demonstrated significant progress toward completion and, if the DEVELOPER has not made substantial effort toward completion and delays are reasonably determined by CITY to be within the control of the DEVELOPER; the Director shall notify the DEVELOPER in writing of her findings and if the DEVELOPER has not taken corrective measures of significant progress within thirty (30) days after receipt of such written notice, the Director shall recommend to the CITY that this AGREEMENT be terminated, and all further payments suspended, and the CITY shall act upon said recommendation and notify the DEVELOPER of its action. E. This AGREEMENT shall remain in full force and effect for as long as the required affordability period of the PROJECT is in place as provided herein. V1. PROGRAM INCOME A. DEVELOPER must keep detailed accounting records, in a form approved by CITY, of the income and expenses of its NSP portfolio. Such records shall be submitted to CITY for its review no later than forty-five (45) days after the end of DEVELOPER's fiscal year or from time to time as requested by CITY should HUD require additional reporting periods. 10 B. Payments received by DEVELOPER on the notes and mortgages between DEVELOPER and the homebuyer/purchaser of the PROPERTY are considered program income under the NSP. These mortgages will be considered "financing mechanisms" under the NSP and repaid amounts shall be retained by DEVELOPER, must be accurately accounted for, and must be re-used to benefit INCOME ELIGIBLE HOUSEHOLDS in a CITY approved area of greatest need within the CITY for a time period equal to the minimum affordability requirement period for the PROPERTY. VII. UNIFORM ADMINISTRATIVE REQUIREMENTS A. Although acting as a developer, DEVELOPER must comply with applicable portions of 24 CFR Part 84 Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations, except that DEVELOPER may name its development team. These regulations implement OMB Circular 110 and set forth uniform requirements for nonprofit organizations, including financial management systems, property standards, procurement standards, reporting and record keeping. B. Although acting as a developer, DEVELOPER must comply with the requirements and standards of OMB Circular A-122, "Cost Principles for Non-profit Organizations." This Circular establishes principles for determining allowable costs. C. Although acting as a developer, DEVELOPER must comply with OMB Circular A-133 "Audit Requirements." For any year that DEVELOPER expends more than $500,000 in NSP funds, DEVELOPER must have a single audit which includes its financial statements and its federal awards from all applicable federal programs. Notwithstanding the foregoing, if NSP funding is the sole source of federal funds during any year in which DEVELOPER expends more than $500,000 in federal funds, a program-specific audit may be conducted. Vlll. OTHER PROGRAM REQUIREMENTS A. The project will be conducted and administered in compliance with applicable federal civil rights and fair housing law, including, but not limited to: 1. Title VI of the Civil Rights Act of 1964 (Pub. L. 88-352, 42 U.S.C. §2000d et seq.) and implementing regulations issued at 24 CFR Part 1. 2. Title Vill of the Civil Rights Act of 1968 (Pub. L. 90-208, 42 U.S.C. §2000d et seg.), as amended; and that the DEVELOPER will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing. 3. The Fair Housing Act (42 U.S.C. 3601-20). 11 4. Executive Order 11063, as amended by Executive Order 12259(Equal Opportunity in Housing), and implementing regulations in 24 CFR Part 107. 5. Age Discrimination Act of 1975 (Pub. L. 94-135), as amended, and implementing regulations when published for effect. B. Section 109 of the ACT requires that no person in the United States shall on the grounds of race, color, national origin, religion, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance made available to the ACT. Discrimination on the basis of age is also prohibited. C. if the PROJECT is for a capital improvement on a facility or for rehabilitation of residential property if such property contains more than seven (7) units, the DEVELOPER shall comply with the Federal Labor Standards and Prevailing Wage Rates, including the conducting of employee interviews of the contractor and/or subcontractors at the job site. This PROJECT is for acquisition and rehabilitation of one (1) single family unit. D. CITY is responsible for the preparation of environmental reviews for the PROJECT and enforcement of environmental standards. CITY and DEVELOPER agree and acknowledge that this AGREEMENT does not constitute a commitment of funds or site approval for a particular PROPERTY or PROPERTIES, and that such commitment of funds or approval may occur only upon satisfactory completion of environmental review under 24 CFR Part 58. DEVELOPER shall supply all information requested by CITY to complete such reviews, shall carry out any mitigating measures required by CITY, and shall not rehabilitate, repair or sell any property, nor commit or expend NSP or local funds for a PROPERTY or PROPERTIES until CITY has completed an environmental review to the extent required under 24 CFR Part 58 and has given notification of its approval in accordance with 24 CFR Part 58. Such environmental review and report shall be (a) submitted to DEVELOPER upon not less than 15 days prior to the CITY conveying the PROPERTY to DEVELOPR and (b) acceptable to DEVELOPER, in DEVELOPER'S reasonable discretion. E. DEVELOPER shall comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. §4851-4856) and implementing regulations at 24 CFR Part 35; subparts A, B, J, K, and R of this part apply to this PROJECT. F. DEVELOPER shall not use debarred, suspended or ineligible contractors or subcontractors in carrying out this PROJECT. G. DEVELOPER shall comply with administrative and procurement requirements in accordance with 24 CFR Part 84 (except that DEVELOPER may name its development team), including the conflict of interest provisions and the following provisions, to assure 12 the best available price for any subcontracts for rehabilitation activities associated with the PROJECT: 1. DEVELOPER shall avoid purchasing unnecessary items. 2. Where appropriate, an analysis should be made of lease and purchase alternatives to determine which would be most economical and practical. 3. The bid specifications or work write-ups shall include: a clear and accurate description of the technical requirements for the material, product or service to be procured (such descriptions shall not contain features which unduly restrict competition); requirements which the bidder/offeror must fulfill and all other factors to be used in evaluating bids or proposals; a description, whenever practicable, of technical requirements in terms of functions to be performed, including the range of acceptable characteristics or minimum acceptable standards; specific features of "brand name or equal" descriptions that bidders are required to meet; acceptance to the extent practicable and economically feasible, of products and services dimensioned in the metric system of measurement; preference, to the extent practicable and economically feasible, for products and services that conserve natural resources, protect the environment, and are energy efficient. 4. The DEVELOPER shall submit the bid specifications or work write-ups and plans to the CITY office for staffs approval prior to any advertising or bid solicitation. 5. In the event any contracts are required to by publicly bid, the DEVELOPER shall include in any invitation for bids or work write-up being used to solicit bids, the statement "Minorities and women contractors are encouraged to submit bids." DEVELOPER shall send an invitation to bid to the MBE and WBE firms currently listed with CITY,as appropriate for the type of work to be done.. 6. If sealed bids are required, all bids will be publicly opened at the time and place prescribed in the invitation for bids. 7. If sealed bids are required, the DEVELOPER shall provide the CITY office with a copy of the classified advertisements and the results from the bid opening. 8. The contract award will be made, in writing, to the entity submitting lowest qualified responsive and responsible bid or proposal meeting the specifications. Any or all bids may be rejected, if there is reason to believe that the low bidder will be unable to complete the project in accordance with the bid specifications, including, but not limited to, the following reasons: contractor has been debarred by the U.S. government from working on Federally funded projects, contractor is unable to furnish any required bond, contractor has a poor record of past performance, or contractor's bid is unusually low in relation to other bids and contractor is not able to document how it will be able to meet the bid specifications for the amount bid. 13 9. Except as otherwise required by statute, DEVELOPER may follow its own requirements relating to bid guarantees, performance bonds, and payment bonds, except for contracts or subcontracts exceeding $100,000. Such contracts or subcontracts must meet the following requirements: a bid guarantee from each bidder equivalent to five percent (5%)of the bid amount shall be obtained consisting of a bid bond, certified check, or other negotiable instrument; a performance bond on the part of the contractor for 100 percent (100%) of the contract price shall be required; and a payment bond on the part of the contractor for 100 percent (100%) of the contract price shall be required. 10. DEVELOPER shall provide the CITY with copies of all executed contracts. H. In the acquisition and disposition of real property and the provision of assistance, in accordance with 24 CFR §570.611, no person who exercises or has exercised any functions or responsibilities with respect to NSP activities, or who is in a position to participate in a decision making process or gain inside information with regard to such activities, may obtain a financial interest or benefit from an NSP assisted activity, or have a financial interest in any contract, subcontract, or agreement with respect to an NSP assisted activity, or with respect to the proceeds of the NSP assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. This applies to any person who is an employee, agent, consultant, or officer of DEVELOPER. 1. The Architectural Barriers Act, the Americans with Disabilities Act, and Section 504 of the Rehabilitation Act of 1973 shall be followed, to the extent applicable to the PROJECT. J. DEVELOPER agrees that to the best of its knowledge, neither the PROJECT nor the funds provided therefore, and the personnel employed in the administration of the program shall be in any way or to any extent engaged in the conduct of political activities in contravention of Chapter 15 of Title 5, United States Code, referred to as the Hatch Act. K. DEVELOPER certifies, to the best of its knowledge and belief,that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan,the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 2. if any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any 14 agency, a Member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standards Form — LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers(including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that DEVELOPER shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352,title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. L. The DEVELOPER certifies that it will provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the DEVELOPER's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing a drug-free awareness program to inform employees about a. The dangers of drug abuse in the workplace; b. The DEVELOPER's policy of maintaining a drug-free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and, d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (1); 4. Notifying the employee in the statement required by paragraph (1)that, as a condition of employment under the grant, the employee will a. Abide by the terms of the statement; and, b. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; 5. Notifying the CITY within ten (10) days after receiving notice under subparagraph (4)(b) from an employee or otherwise receiving actual notice of such conviction; 15 6. Taking one of the following actions, within 30 days of receiving notice under subparagraph (4)(b), with respect to any employee who is so convicted: a. Taking appropriate personnel action against such an employee, up to and including termination; or. b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs(1), (2), (3), (4), (5)and (6). IX.CITY'S OBLIGATION TO PROSECUTE AGREEMENT A. CITY shall forthwith file all applicable documents and shall comply with all applicable rules and regulations to secure a release of funds for the PROJECT. B. After the CITY has received notification that funds for the PROJECT have been released by HUD, the DEVELOPER shall be authorized to begin the PROJECT so long as the PROJECT remains in compliance with the Neighborhood Stabilization Program and this AGREEMENT. X. RECORDS AND REPORTS A. DEVELOPER authorizes the CITY, HUD, and the Comptroller General of the United States to conduct on-site reviews, to examine, inspect, and audit, the DEVELOPER'S records with respect to the PROPERTY, rental applications and to conduct any other procedures or practices to assure compliance with the provisions of this AGREEMENT upon demand. All of the foregoing shall be at no cost to the DEVELOPER. B. At the request of the CITY, the DEVELOPER shall furnish immediately, if required by the Comptroller General, otherwise within seven (7) business days of such request, such reports, budgets, certifications and other documents required pursuant to federal, state, or CITY rules, regulations and policies that are applicable to the PROJECT and shall give specific answers to questions from the CITY, from time to time, relative to the DEVELOPER'S contracts and operations in connection with the PROJECT. C. DEVELOPER shall, each year as long as the PROJECT remains in effect, complete an audit of the PROJECT, conducted by an independent Certified Public Accountant, and shall submit a copy of the audit report to the CITY within six months of the close of DEVELOPER'S year end. Please note the single audit requirements contained in Section V1. C. above. D. DEVELOPER shall submit all required information to show compliance with applicable laws, rules and regulations, as specified in this AGREEMENT, including but not limited to: 16 1. Prior to acquisition of any PROPERTY, its Affirmative Marketing Plan. 2. Beneficiary data on income, race, ethnicity, gender of single head-of-households, and other data requested by CITY necessary to complete CITY'S reporting requirements to HUD. E. DEVELOPER shall provide a Progress Report to the CITY by the fifth of each month, reporting on the status of the PROJECT in relation to the PROJECT target dates. The Progress Reports shall begin upon the signing of this AGREEMENT and shall continue throughout the acquisition and rehabilitation period of the PROJECT. F. DEVELOPER shall submit each year to the CITY an annual report of the status of the PROJECT in a form prescribed by the CITY, or at the request of the CITY from time to time if necessary to meet NSP reporting requirements. G. DEVELOPER shall maintain the following records: 1. For each PROPERTY, for a period of five (5) years after such homebuyer/purchaser has acquired the PROPERTY: records pertaining to closing of the PROPERTY, including a copy of the contract, closing documentation, and those records that demonstrate that the household was income eligible at the time of the closing but shall otherwise not be required to obtain proof that the purchaser continues to remain income eligible thereafter. 2. For a period of five years after the closing of the PROPERTY: Documentation of all activities undertaken in connection with DEVELOPER'S affirmative marketing plan. 3. For as long as DEVELOPER owns a PROPERTY and for five years thereafter: all financial records pertaining to the acquisition and rehabilitation of the PROPERTY. 4. If any litigation, claim, negotiation, audit or other action involving the records has been started before the expiration of the five year period,the records must be retained until completion of the action and resolution of all issues which arise from it, or until the end of the regular five year period, whichever is later. 5. DEVELOPER shall cooperate with the CITY to facilitate the maintenance of any and all other financial records as requested by the CITY for the length of time requested, as may be required by Title 24 CFR Part 570. X1.SUSPENSION AND TERMINATION; REVERSION OF ASSETS A. In accordance with 24 CFR §85.43, suspension or termination of this AGREEMENT may occur if the DEVELOPER materially fails to comply with any term of the award. The award may also be terminated for convenience in accordance with 24 CFR §85.44. 17 B. During the implementation of the PROJECT,CITY may terminate this AGREEMENT or may suspend payment of NSP funds to DEVELOPER for DEVELOPER'S breach of the AGREEMENT, abandonment of the PROJECT or occurrence rendering impossible the performance by DEVELOPER of this AGREEMENT. CITY may also suspend payments of NSP funding due to use of funds in a manner unrelated to DEVELOPER'S performing the PROJECT, failure by DEVELOPER in submitting supporting information or documentation for a claim, submission by DEVELOPER of incorrect or incomplete reports, or DEVELOPER'S suspension of its pursuit of the PROJECT. C. In the event CITY elects to terminate this AGREEMENT or to suspend payments, for any reason stated hereinabove in paragraph A and B of this Section X, it shall notify the DEVELOPER in writing of such action, specifying the particular deficiency, at least five (5) business days in advance of any such action and establishing a time and a place for the DEVELOPER to refute the alleged deficiency at a time prior to CITY'S taking such action. After allowing the DEVELOPER the opportunity to refute or correct the alleged deficiency, if the alleged deficiency continues to exist, in the reasonable opinion of the CITY, the CITY may withhold payment to the PROJECT until such time as the violation or breach is remedied. No action taken or withheld by the CITY under this paragraph shall relieve the DEVELOPER of its liability to the CITY for any funds expended in violation of any of the terms of this AGREEMENT. D. Reversion of assets. Upon expiration or termination of this AGREEMENT, the DEVELOPER must transfer to the CITY any NSP funding on hand at the time of expiration or termination and any accounts receivable attributable to use of NSP funds. If, prior to March 1, 2015, any PROPERTY under this AGREEMENT has not been maintained for the purpose stated in Section III hereof, DEVELOPER shall pay to CITY an amount equal to the current market value of the PROPERTY less any portion of the value attributable to expenditures of non-NSP funds for the acquisition of, or improvement to,the PROPERTY. X11. REMEDIES A. In the event of any violation or breach of this AGREEMENT by DEVELOPER, misuse or misapplication of funds derived from this AGREEMENT by DEVELOPER or any violation of any of the statutes, rules and regulations, directly or indirectly, by the DEVELOPER and/or any of its agents or representatives, then DEVELOPER, to the fullest extent permitted by law, agrees to indemnify, and hold the CITY harmless from any requirement to repay to HUD the NSP funding received by DEVELOPER for this PROJECT or penalties and expenses, including attorneys' fees and other costs of litigation, resulting from such action or omission by DEVELOPER. B. In the event HUD, or any other federal agency, makes any claim which would give rise to invoking the remedy provisions, as set forth in this Section XI, then the CITY or DEVELOPER shall immediately notify the other party, in writing, providing the full details of the alleged violation. The DEVELOPER shall have the right to contest the claim, in its own name or in the name of the CITY, with its consent, through all levels of 18 any administrative proceedings or in any court of competent jurisdiction without any cost to the CITY. Upon any final adjudication, or upon any settlement agreed to between the DEVELOPER and the Federal agency, the DEVELOPER shall promptly pay any funds found due and owing. C. As long as the CITY is not in jeopardy of losing any other Federal funding, of any kind or description, as a result of the alleged breach, the DEVELOPER shall have complete right to settle or compromise any claim and to pay any judgment to the federal government, so long as CITY is indemnified. D. If the CITY has lost or been prevented from receiving any federal funds, other than the funds for the PROJECT, as a result of any alleged violation subject to the remedy provisions hereof, the DEVELOPER shall repay, upon demand by the CITY, such amount of NSP funding due,as a result of the alleged breach, and the DEVELOPER may then pursue any remedy it may have in an appropriate forum in its own name or in the name of the CITY, whichever is applicable. E. To the fullest extent allowed by law, the DEVELOPER shall assume the defense of and shall pay, indemnify, and hold harmless CITY, its designees, and its employees from all suits, actions, claims, mechanics' liens, demands, damages, losses, expenses, and costs of every kind and description to which the CITY, its designees, and its employees may be subject by reason of any act or omission of DEVELOPER, its agents or employees, in undertaking and performing under this AGREEMENT. All litigation activity is subject to approval by the State's Attorney's Office. The DEVELOPER does not hereby waive any defenses or immunity available to it with respect to third parties. X111. MISCELLANEOUS PROVISIONS A. AMENDMENTS—Any proposed change in this AGREEMENT shall be submitted to the other party for prior approval. No modifications, additions, deletions, or the like, to this AGREEMENT shall be effective unless and until such changes are executed in writing by the authorized officers of each party. DEVELOPER acknowledges that HUD may from time to time issue updated guidance regarding the NSP program that may require amendment of this AGREEMENT and agrees to cooperate with CITY in making such amendment. B. SUBJECT TO FINANCIAL ASSISTANCE AGREEMENT — This AGREEMENT is made subject to financial assistance agreements between the CITY and the United States Department of Housing and Urban Development, with the rights and remedies of the parties hereto being in accordance with this AGREEMENT. C. ASSIGNMENT—DEVELOPER shall not assign this AGREEMENT or any part thereof, nor shall DEVELOPER transfer or assign any property or assets acquired using NSP funding or claims due or to become due hereunder, without the written approval of the CITY having first been obtained. The contracting or subcontracting of rehabilitation work on the PROPERTIES does not constitute an assignment. 19 D. CORPORATE RESOLUTION — If requested, DEVELOPER shall provide a corporate resolution of its board of directors, in DEVELOPER'S standard form, that all steps necessary to adopt and authorize for DEVELOPER to enter into this AGREEMENT have been taken by DEVELOPER. E. SEVERABILITY — In the event any provision of this AGREEMENT shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. F. AGREEMENT DURATION — Unless terminated by the CITY pursuant to the terms of this AGREEMENT above, this AGREEMENT will remain in effect for the duration of the affordability period previously provided for herein. G. NO PARTNERSHIP —Nothing contained in this AGREEMENT, any mortgage, note or any other document or instrument related to this PROJECT shall be deemed to create a venture, partnership relationship, or employer/employee relationship between the CITY and DEVELOPER. DEVELOPER shall at all times remain an "independent contractor" with respect to the services to be performed under this AGREEMENT. H. CITY shall provide, upon request, copies of all laws, regulations, statutes, orders, and OMB Circulars cited in this AGREEMENT, or internet links to such. 1. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this agreement shall be in the Circuit Court of Kane County, Illinois. J. The parties agree to waive their right to a jury trial. K. Each and every provision of any law and clause required by law to be inserted in this AGREEMENT shall be deemed to be inserted herein, and this AGREEMENT shall be read and enforced as though it were included herein, and if, through mistake or otherwise, any such provision is not inserted or is not correctly inserted in this AGREEMENT, then upon application of either party this AGREEMENT shall forthwith be amended to make such insertion. SIGNATURE PAGE FOLLOWS 20 IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT on the dates recited below to be effective on the date first written above. CITY OF ELGIN, a body politic in the State of Illinois. By: Ed Schock, ayor City of Elgin Date: July 14, 2010 Attest: -�� City Clerk Name of DEVELOPER: HABITAT FOR HUMANITY OF NORTHERN FOX VALLEY an Illinois not-for-profit corporation Address: 20 S.Grove, Suite 201 Carpentersville, 1L 60110 Barbaral Beckman, Executive Director Signature Printed name/title: 5 a r hot(a_6� er"' r w-o"ve T"re Date: 1 a Attest: F:\Legal Dept\Real Estate\NSP\511 Washburn Street\Elgin Habitat NSP Agreement-Final (511 Washburn Street).doc 21 MULTI-BOARD RESIDENTIAL REAL ESTATE CONTRACT 4.0 ttE \t iC OYhORIVNIt, 1 1.THE PARTIES: Buyer and Seller are hereinafter referred to as the`-Patties". 1) 3 Buyer(s)(Please f'rirtr) Habitat For Humanity of Northern Fox Valley, an illinois_not-for-profit 5 Seller(s)(Please Print) City of Elgin, an Illinnic 6 7 If Dual Agency applies,complete Optional Paragraph 41. 8 9 2. THE REAL ESTATE: Real Estatc shall be defined to include the Real Estate and all improvements thereon. Seller 10 agrees to convey to Buyer or to Buyer's designated grantee, the Real Estate with the approximate lot size or acreage 11 of Ss*,X lo, commonly known as: 5 I Lkti1►60� Si'•ti..} , E lees (t T L =3 12 Address City State Zip 13 Kwnt Of--23-ZIO-00-7 14 County Unit#(if applicable) Permanent Index Number(s)of Real Estate 15 16 If Condo/Coop/Townhome Parking is Included: #of space(s) ;identified as Space(s)# 17 (check type) ❑ deeded space; ❑ limited common element; ❑ assigned space 18 19 3. FIXTURES AND PERSONAL PROPERTY: All of the fixtures and personal property stated herein are oAmed by 20 Seller and to Seller's knowledge are in operating condition on the Date of Acceptance, unless otherwise stated herein. 21 Seller agrees to transfer to Buyer all fi�:tures, all heating, electrical, plumbing and well systems together with the 22 following items of personal property by Bill of Sale at Closing:(Check or enumerate applicable itemsl 23 _Reirigerator _All Tacked Down Carpeting _Fireplace Screen(s)/Door(s)IGmte(s) _Central A¢Conditioning 24 _OveaMange/Stove —All Window Treatments&Harduare Fireplace Gas Logs _Electronic or?+dia Air Filter 25 _Microwave _Built-in or Attached Shelving _^Existing Storms t Screens _Central Humidifier 26 —Garbage Dishwasher _Sm oke Deteetor(s) _Security System(%)(owned) _Sump Pumps) 2 7 _ Disposal _Ceiling Fan(s) _Intercom System _Water Softener(owned) 28 _Trash Compactor —TV Antenna System _Central Vac&Equipment _outdoor Shed 29 _Washcr _Windom Air Conditioncr(s) _Electronic Garage Door Opmer(s) _Attached Gas Grill ?O _Dryer _Planted Vegetation with all Transmitters) _Light Fixtures,as they exist J 1 _Satellite Dish _outdoor May sets _invisible Fence Sysu m,Collar(s)and Box _Home Warranty S 32 Other items included: 33 Items NOT included: 34 Seller warrants to Buyer that all fixtures, systems and personal property included in this Contract shall be in operating 35 condition at possession, except: 36 A system or item shall be deemed to be in operating condition if it performs the function for which it is intended, 37 regardless of age,and does not constitute a threat to health or safety. 38 39 4.PURCHASE PRICE:Purchase Price of$ One (1) Dollar shall be paid as follows: initial 40 ,! - , 41 te i9e _ 42 y 43 ;Panties. The Wwee eF d c-Purchase Price,as adjusted by prorations,shall be paid at Closing by wire transfer of funds, 44 or by certified, cashier's, mortgage lender's or title company's check (provided that the title company's check is 45 guaranteed by a licensed title insurance company). 46 47 i. CLOSING: Closing or escrow payout shall be on July 23 2010 , or at such time as 48 mutually agreed upon by the Parties in writing. Closing shall take place at the title company escrow office situated 49 geographically nearest the Real Estate or as shall be agreed mutually by the Parties. 50 51 6. POSSESSION: Unless otherwise provided in Paragraph 39, Seller shall deliver possession to Buyer at the time of 52 Closing. Possession shall be deemed to have been delivered when Seller has vacated the Real Estate and delivered keys 53 to the Real Estate to Buyer or to Listing Office. Buvcr Initial _Buyer Initial_, 1 l Steller Initial r_ Seller Initial d�rlrnt•e III �i►SNbu/'ra Sas•�. �h�n- r1 JL �Z3 _.._---- 54 7. RESIDENTIAL REAL ESTATE AND LEAD-BASED PAINT DISCLOSURES: If applicable, prior to signing 55 this Contract, Buyer[check onel,® has;❑ has not received a completed Illinois Residential Real Property Disclosure 56 Report;[check onel,® has.0 has not received the EPA Pamphlet, "Protect Your Family From Lead in Your Home'; 57 [check one/W has.( has not received a Lead-Based Paint Disclosure. 58 59 8.PRORATIONS: Proratable items shall include, without limitation,rents and deposits (if any)from tenants, Special 60 Service Area tax for the year of closing only, utilities, water and sewer, and homeowner or condominium association 61 fees (and Master/Umbrella Association fees, if applicable). Accumulated reserves of a Homeowner/Condominium 62 Association(s)are not a proratable item. Seller represents that as of the Date of Acceptance Homeowner/Condominium 63 Association(s)fees are$ NIA per /A (and,if applicable,fees for a Master/Umbrella Association are 64 $ N/A per N/A Seller agrees to pay prior to or at Closing any special assessments(governmental or 65 association)confrnned prior to Date of Acceptance. Installments due alter the year of Closing for a Special Service Area 66 shall not be a proratable item. The general Real Estate taxes shall be prorated as of the date of Closing based on 67 100 % of the most recent ascertainable full year tax bill. All prorations shall be final as of Closing, except as 68 provided in Paragraph 20. If the amount of the most recent ascertainable tax bill reflects a homeowner,senior citizen or 69 other exemption, Seller has submitted or will submit in a timely manner all necessary documentation to the Assessor's 70 Office,before or after Closing,to preserve said exemption(s). 71 73 this Contract,other than stated Purchase Price, within five(5) Business Days after the Date ce. Disapproval 74 or modification of this Contract shall not be based solely upon stated nee. Any notice of disapproval or 75 proposed modification(s)by any Party shall be in r en notice is not served within the time specified,this 76 provision shall be deemed wai artier and this Contract shall remain in full force and effect.If prior to 77 the expirati Business Days after Date of Acceptance,written agreement is not reached by the Parties 78 ,then this C-ent.act sliall be...1i and v oi 79 80 81 governmental regulations) a home, radon, environmental, lead-based paint and/or lead-based paint hazar Mess 82 separately waived), and/or wood destroying insect infestation inspection(s) of said Real Estate by one ore licensed 83 or certified inspection service(s). Buyer shall serve written notice upon Seller or Seller's ey of any defects 84 disclosed by the inspection(s) which are unacceptable to Buyer, together with a copy a pertinent page(s) of the 85 report(s) within five (5) Business Days (ten (10) calendar days for a lead based ' t and/or lead-based paint hazard 86 inspection)after Date of Acceptance.If written notice is not served with! a time specified,this provision shall be 87 deemed waived by the Parties and this Contract shall remain in force and effect.If prior to the expiration of 88 ten (10) Business Days after Date of Acceptance, written eement is not reached by the Parties with respect to 89 resolution of inspection issues, then this Contrac a I be null and void. The home inspection shall cover only 90 major components of the Real Estate, includi t not limited to, central heating system(s), central cooling system(s), 91 plumbing and well system,electrical roof; walls,windows, ceilings, floors,appliances and foundation. A major 92 component shall be deemed to b i operating condition if it performs the function for which it is intended,regardless of 93 age,and does not consh threat to health or safety. The fact that a functioning component may be at the end of its 94 useful life shall no der such component defective for the purpose of this paragraph. Buyer shall indemnify Seller 95 and hold Se armless from and against any loss or damage caused by the acts or negligence of Buyer or any person 96 perfo g any inspection(s). Buyer agrees minor repairs and routine maintenance items are not a part of this 98 _ 99 100 Disclosure (see page 11). This Contract is contingent on B wntten mortgage commitment 101 (except for matters of title o within Buyer's control)on or before , 20_ Buyer Initial Buyer Initial Seller Initial Seller Initial Address +. sf?retf EI L 4*143— Page 2 -- —_ 103 loan of 5 ot stich lesset mneant its Btryer eleets to tAe, pitts piivft a 104 required. The interest rate (initial rate, if applicable) shall not exceed v%per amtum, amortized over not than 105 years. Buyer shall pay loan origination fee and/or discount points not to exceed % of th an amount. 106 Buyer shall pay the cost of application, usual and customary processing fees and closing costs ged by lender. (If 107 FHA/VA, complete Paragraph 35.) (If closing cost credit, complete Paragraph 33.) Bu shall make written loan 108 application within five (5) Business Days after the Date of Acceptance. Failure t so shall constitute an act of I09 Default under this Contract. If Buyer, having applied for the loan specif above,is unable to obtain such loan 110 commitment and serves written notice to Seller within the time sp ' ed, this Contract shall be null and void.If 111 written notice of inability to obtain such loan commitment is served within the time specified, Buyer shall be 112 deemed to have waived this contingency and this Con shall remain in full force and effect. Unless otherwise 113 provided in Paragraph 31, this Contract shall n e contingent upon the sale and/or closing of Buyer's existing 114 real estate. Buyer shall be deemed to have sfied the financing conditions of this paragraph if Buyer obtains a loan 115 commitment in accordance with the is of this paragraph even though the loan is conditioned on the sale and/or 116 closing of Buyer's existing re state. If Seller at Seller's option and expense, within thirty (30) days after Buyer's 117 notice,procures for Bu uch commitinent or notifies Buyer that Seller will accept a purchase money mortgage upon 118 the same terms,t ' ontract shall remain in full force and effect.In such event, Seller shall notify Buyer within five(5) 119 Business D after Buyer's notice of Seller's election to provide or obtain such financing,and Buyer shall furnish to 120 Sell ender all requested information and shall sign all papers necessary to obtain the mortgage commitment and to 121 122 123 12. HOMEOWNER INSURANCE: This Contract is contingent upon Buyer's securing evidence of insurability for an 124 Insurance Service Organization Homeowner 3 (ISOH03) or applicable equivalent policy at Preferred Premium rates 125 within ten(10) Business Days after Date of Acceptance. If Buyer is unable to obtain evidence of insurability and 126 serves written notice with proof of same to Seller within the time specified,this Contract shall be null and void.If 127 written notice is not served within the time specified,Buyer shall be deemed to have waived this contingency and 128 this Contract shall remain in full force and effect. 129 130 13. FLOOD INSURANCE: Unless previously disclosed in the Illinois Residential Real Property Disclosure Report, 131 Buyer shall have the option to declare this Contract null and void if the Real Estate is located in a special flood hazard 132 area which requires Buyer to carry flood insurance. If written notice of the option to declare this Contract null and 133 void is not given to Seller within ten (10)Business Days after Date of Acceptance or within the term specified in 134 Paragraph 11 (whichever is later), Buyer shall be deemed to have waived such option and this Contract shall 135 remain in full force and effect. Nothing herein shall be deemed to affect any rights afforded by the Residential Real 136 Property Disclosure Act. 137 138 14 CONDOMINIUM/COMMON INTEREST ASSOCIATIONS: (If applicable) The Parties agree that the terms 139 contained in this paragraph,which may be contrary to other terms of this Contract, shall supersede any conflicting tetras. 140 (a) Title when conveyed shall be good and merchantable, subject to terms, provisions,covenants and conditions of 141 the Declaration of Condominium/Covenants, Conditions and Restrictions and all amendments;public and utility 142 easements including any easements established by or implied from the Declaration of Condominium/Covenants, 143 Conditions and Restrictions or amendments thereto;party wall rights and agreements;limitations and conditions 144 imposed by the Condominium Property Act; installments due after the date of Closing of general assessments 145 established pursuant to the Declaration of Condominium/Covenants,Conditions and Restrictions. 146 (b) Seller shall be responsible for all regular assessments due and levied prior to Closing and for all special 147 assessments confirmed prior to the Date of Acceptance. 148 (c) Buyer has,within five(5)Business Days from the Date of Acceptance, the right to demand from Seiler items as 149 stipulated by the Illinois Condominium Property Act, if applicable, and Seller shall diligently apply for same. 150 This Contract is subject to the condition that Seller be able to procure and provide to Buyer, a release or waiver 151 of any option of first refusal or other pre-emptive rights of purchase created by the Declaration of 152 Condominium/Covenants, Conditions and Restrictions within the time established by the Declaration of 153 Condominium/Covenants, Conditions and Restrictions. In the event the Condominium Association requires Buyer Initial _ Buyer Initial Seller Initial Seller Initial Address - - 5 it �wn S _ 6 t 404 Z3 Page 3 154 personal appearance of Buyer and/or additional documentation,Buyer agrees to comply with same. 155 (d) In the event the documents and information provided by Seller to Buyer disclose that the existing improvements 156 are in violation of existing rules, regulations or other restrictions or that the terms and conditions contained 157 within the documents would unreasonably restrict Buyer's use of the premises or would result in increased 158 financial obligations unacceptable to Buyer in connection with owning the Real Estate, then Buyer may 159 declare this Contract null and void by giving Seller written notice within five (5)Business Days after the 160 receipt of the documents and information required by Paragraph 14 (c), listing those deficiencies which 161 are unacceptable to Buyer.If written notice is not served within the time specified,Buyer shall be deemed 162 to have waived this contingency,and this Contract shall remain in full force and effect. 163 (e) Seller shall not be obligated to provide a condominium survey. 164 (f) Seller shall provide a certificate of insurance showing Buyer(and Buyer's mortgagee,if any)as an insured. 165 166 15. THE DEED: Seller shall convey or cause to be conveyed to Buyer or Buyer's designated grantee good and 167 merchantable title to the Real Estate by recordable general Warranty Deed, with release of homestead rights, (or the 168 appropriate deed if title is in trust or in an estate), and with real estate transfer stamps to be paid by Seller (unless 169 otherwise designated by local ordinance). Title when conveyed will be good and merchantable, subject only to: general 170 real estate taxes not due and payable at the time of Closing, covenants,conditions,and restrictions of record, building 171 lines and easements, if any,so long as they do not interfere with the current use and enjoyment of the Real Estate. 172 173 16. TITLE: At Seller's expense, Seller will deliver or cause to be delivered to Buyer or Buyer's attorney within 174 customary time limitations and sufficiently in advance of Closing, as evidence of title in Seller or Grantor, a title 175 commitment for an ALTA title insurance policy in the amount of the Purchase Price with extended coverage by a title 176 company licensed to operate in the State of Illinois,issued on or subsequent to the Date of Acceptance,subject only to 177 items listed in Paragraph 15. The requirement of providing extended coverage shall not apply if the Real Estate is vacant 178 land.The commitment for title insurance furnished by Seller will be conclusive evidence of good and merchantable title 179 as therein shown,subject only to the exceptions therein stated. If the title commitment discloses unpemiitted exceptions, 180 or if the Plat of Survey shows any encroachments which are not acceptable to Buyer, then Seller shall have said 181 exceptions or encroachments removed, or have the title insurer commit to insure against loss or damage that may be 182 caused by such exceptions or encroachments. If Seller fails to have unpermitted exceptions waived or title insured over 183 prior to Closing, Buyer may elect to take the title as it then is, with the right to deduct from the Purchase Price prior 184 encumbrances of a definite or ascertainable amount. Seller shall furnish Buyer at Closing an Affidavit of Title covering 185 the date of Closing, and shall sign any other customary forms required for issuance of an ALTA Insurance Policy. 186 187 17, PLAT OF SURVEY: Not less than one (1) Business Day prior to Closing, except where the Real Estate is a 188 condominium(see Paragraph 14)Seller shall, at Seller's expense, furnish to Buyer or Buyer's attorney a Plat of Survey 189 dated not more than six (6) months prior to the date of Closing, prepared by an Illinois Professional Land Surveyor, 190 showing any encroachments, measurements of all lot lines, all easements of record, building set back lines of record, 191 fences, all buildings and other improvements on the Real Estate and distances therefrom to the nearest two lot lines. In 192 addition,the survey to be provided shall be a boundary survey conforming to the current requirements of the appropriate 193 state regulatory authority. The survey shall show all corners staked,flagged,or otherwise monumented. The survey shall 194 have the following statement prominently appearing near the professional land surveyor seal and signature: "This 195 professional service conforms to the current Illinois minimum standards for a boundary survey".A Mortgage Inspection, 196 as defined,is not a boundary survey,and is not acceptable. 197 198 18.ESCROW CLOSING: At the election of either Party,not less than five(5) Business Days prior to the Closing,this 199 sale shall be closed through an escrow with the lending institution or the title company in accordance with the provisions 200 of the usual form of Deed and Money Escrow Agreement, as agreed upon between the Parties, with provisions inserted 201 in the Escrow Agreement as may be required to conform with this Contract. The cost of the escrow shall be paid by the 202 Party requesting the escrow. If this transaction is a cash purchase (no mortgage is secured by Buyer),the Parties shall 203 share the title company escrow closing fee equally. 204 Buyer Initial _Buyer Initial Seller Initial Seller Initial _ Address Sn "! bo123 _ Page 4 205 19.DAMAGE TO REAL ESTATE PRIOR TO CLOSING: If,prior to delivety of the deed,the Real Estate shall be 206 destroyed or materially damaged by fire or other casualty,or the Real Estate is taken by condemnation,then Buyer shall 207 have the option of either terminating this Contract (and receiving a refund of earnest money) or accepting the Real 208 Estate as damaged or destroyed, together with the proceeds of the condemnation award or any insurance payable as a 209 result of the destruction or damage, which gross proceeds Seller agrees to assign to Buyer and deliver to Buyer at 210 closing.Seller shall not be obligated to repair or replace damaged improvements. The provisions of the Uniform Vendor 211 and Purchaser Risk Act of the State of Illinois shall be applicable to this Contract,except as modified in this paragraph. 212 213 20.REAL ESTATE TAX ESCROW: In the event die Real Estate is improved, but has not been previously taxed for 214 the entire year as currently improved, die sum of three percent(3%) of the Purchase Price shall be deposited in escrow 215 with the ride company with the cost of the escrow to be divided equally by Buyer and Seller and paid at Closing. \Vhen 216 the exact amount of the taxes prorated under this Contract can be ascertained, the taxes shall be prorated by Seller's 217 attorney at the request of either Party, and Seller's share of such tax liability after reproration shall be paid to Buyer from 218 the escrow funds and the balance, if any, shall be paid to Seller. If Seller's obligation after such reproration exceeds die 219 amount of the escrow funds,Seller agrees to pay such excess promptly upon demand. 220 221 21. SELLER REPRESENTATIONS: Seller represents that Seller has not received written notice from any 222 Governmental body or Homeowner Association regarding (a) zoning,building, fire or health code violations that have 223 not been corrected; (b) any pending rezoning; (c) any pending condemnation or eminent domain proceeding; or(d)a 224 proposed or confirmed special assessment and/or Special Service Area affecting the Real Estate. Seller represents, 225 however,that in the case of a special assessment and/or Special Service Area,the following applies: 226 1.There[check one]is 0 is not;® a proposed or pending unconfirmed special assessment affecting the Real 227 Estate not payable by Seller after date of Closing. 228 2.The Real Estate[check onef is is not;® located within a Special Service Area, payments for which will 229 not be the obligation of Seller after date of Closing. 230 If any of the representations contained herein regarding non-Homeowner Association special assessment or 231 Special Service Area are unacceptable to Buyer, Buyer shall have the option to declare this Contract null and 232 void. If written notice of the option to declare this Contract null and void is not given to Seller within ten (10) 233 Business Days after Date of Acceptance or within the term specified in Paragraph 11 (whichever is later),Buyer 234 shall be deemed to have waived such option and this Contract shall remain in full force and effect. Seller further 235 represents that Seller has no knowledge of boundary line disputes, easements or claims of easement not shown by the 236 public records, any hazardous waste on the Real Estate or any improvements for which the required permits were not 237 obtained.Seller represents that there have been no improvements to the Real Estate which are not either included in full 238 in the determination of the most recent real estate tax assessment or which are eligible for home improvement tax 239 exemption. 240 241 22. CONDITION OF REAL ESTATE AND INSPECTION: Seller agrees to leave the Real Estate in broom clean 242 condition.All refuse and personal property that is not to be conveyed to Buyer shall be removed from the Real Estate at 243 Seller's expense before possession.Buyer shall have the right to inspect the Real Estate,fixtures and personal property 244 prior to possession to verify that the Real Estate,improvements and included personal property are in substantially the 245 same condition as of the Date of Acceptance,normal wear and tear excepted. 246 247 23. GOVERNMENTAL COMPLIANCE: Parties agree to comply with the reporting requirements of the applicable 248 sections of the Internal Revenue Code and the Real Estate Settlement Procedures Act of 1974,as amended. 249 250 24. BUSINESS DAYS/HOURS: Business Days are defined as Monday througli Friday, excluding Federal holidays. 251 Business Hours are defined as 8:00 A.M. to 6:00 P.M. Chicago rime. 252 253 25. FACSIMILE: Facsimile signatures shall be sufficient for purposes of executing, negotiating, and finalizing this 254 Contract. Buyer Initial Buyer Initial Seller Initial Seller Initial i Address — _ (( U641%l6..Wn Sl•-a.► IC 6ar�3 _ Page 5 255 26. DIRECTION TO ESCROWEE: In every instance where this Contract shall be deemed null and void or if this 256 Contract may be terminated by either Party,the following shall be deemed incorporated:"and earnest money refunded to 257 Buyer upon written direction of the Parties to Escrowee or upon entry of an order by a covet of competent jurisdiction". 258 259 27.NOTICE: All Notices, except as provided otherwise in Paragraph 3l(C)(2),shall be in writing and shall be served 260 by one Party or attorney to the other Patty or attomey. Notice to any one of a multiple person Party shall be sufficient 261 Notice to all.Notice shall be given in the following manner: 262 (a) By personal delivery of such Notice; or 263 (b) By mailing of such Notice to the addresses recited herein by regular mail and by certified mail, return receipt 264 requested. Except as otherwise provided herein,Notice served by certified mail shall be effective on the date of 265 mailing;or 266 (c) By sending facsimile transmission. Notice shall be effective as of date and time of facsimile transmission, 267 provided that the Notice transmitted shall be sent on Business Days during Business Hours. In the event fax 268 Notice is transmitted during non-business hours,the effective date and time of Notice is the first hour of the next 269 Business Day after transmission; or 270 (d) By sending e-mail transmission. Notice shall be effective as of date and time of e-mail transmission, provided 271 that the Notice transmitted shall be sent during Business Hours,and provided further that the recipient provides 272 written acknowledgment to the sender of receipt of the transmission (by e-mail, facsimile, regular mail or 273 commercial overnight delivery). In the event e-mail Notice is transmitted during non-business hours, the 274 effective date and time of Notice is the first hour of the next Business Day after transmission;or 275 (e) By commercial overnight delivery (e.g., FedEx). Such Notice shall be effective on the next Business Day 276 following deposit with the overnight delivery company. 277 278 28.PERFORMANCE: Time is of the essence of this Contract. In any action with respect to this Contract,the Parties 279 are free to pursue any legal remedies at law or in equity and the prevailing Party in litigation shall be entitled to collect 280 reasonable attorney fees and costs from the non-Prevailing Party as ordered by a court of competent jurisdiction. There 281 shall be no disbursement of earnest money unless Escrowee has been provided written agreement from Seller and Buyer. 282 Absent an agreement relative to the disbursement of earnest money within a reasonable period of time, Escrowee may 283 deposit funds with the Clerk of the Circuit Court by the filing of an action in the nature of interpleader.Escrowee shall 284 be reimbursed from the earnest money for all costs, including reasonable attorney fees, related to the filing of the 285 interpleader action. Seller and Buyer shall indemnify and hold Escrowee harmless from any and all conflicting claims 286 and demands arising under this paragraph. 287 288 29, CHOICE OF LAW/GOOD FAITH: All terms and provisions of this Contract including, but not limited to,the 289 Attorney Review and Professional Inspection paragraphs, shall be governed by the laws of the State of Illinois and are 290 subject to the covenant of good faith and fair dealing implied in all Illinois contracts. 291. 292 30 OTHER PROVISIONS: This Contract is also subject to those OPTIONAL PROVISIONS selected for use and 293 initialed by the Parties which are contained in the following paraVaphs and attachments,if any:It.,CA., b tod 294 E?}-.4-. G..4--act f-.• +L- S-6 s-4 TO L"60,% St"J.C k' •:• Lb ZS. c A%&sA hL yJ o 295 is ►.fr.�.j iw��f �,�.{..il i.�{y &^-% w.%& A pow-4 et' j'�;t It '— t 296 THE FOLLOWING OPTIONAL PROVISIONS APPLY ONLY IF INITIALED BY ALL PARTIES 297 298 __31.SALE OF BUYER'S REAL ESTATE: 299 Initials 300 (A)REPRESENTATIONS ABOUT BUYER'S REAL ESTATE: Buyer represents to Seller as follows: 301 (1) Buyer owns real estate commonly known as(address): 302 303 (2) Buyer[check one]:❑ has;❑ has not entered into a contract to sell said real estate.If Buyer has entered into a contract to 304 sell said real estate,that contract: 305 (a) ]check one/U is.❑ is not subject to a mortgage contingency. Buyer Initial Buyer Initial Seller Initial Seller Initial Address —511 — t Z Page 6 306 (b) /check onel ,❑ is❑ is not subject to areal estate sale contingency. 307 (c) /check noel ,❑ is❑ is not subject to a real estate closing contingency. 308 (3) Buyer [check one],❑ has,❑ has not listed said real estate for sale with a licensed real estate broker and in a local 309 multiple listing service. 310 (4) if Buyer's real estate is not listed for sale with a licensed real estate broker and in a local multiple listing service, 311 Buyer leheck onel 312 (a) ❑ Shall list said real estate for sale with a licensed real estate broker who will place it in a local multiple listing 313 service within five(5)Business Days after the Date of Acceptance 314 For information only: Broker: 315 Broker's Address: Phone: _ 316 (b) .❑ Does not intend to list said real estate for sale. 317 (B)CONTINGENCIES BASED UPON SALE AND/OR CLOSE OF BUYER'S REAL ESTATE: 318 (1) This Contract is contingent upon Buyer having entered into a contract for the sale of Buyer's real estate that is in full force 319 and effect as of 20 Such contract shall provide for a closing date not later than the Closing 320 Date set forth in this Contract. If written notice is served on or before the date set forth in this subparagraph that 321 Buyer has not procured a contract for the sale of Buyer's real estate,this Contract shall be null and void.If written 322 notice that Buyer has not procured a contract for the sale of Buyer's real estate is not served on or before the close 323 of business on the date set forth in this subparagraph, Buyer shall be deemed to have waived all contingencies 324 contained in this Paragraph 31,and this Contract shall remain in full force and effect. (If this paragraph is used,then 325 the following paragraph must be completed.) 326 (2) In the event Buyer has entered into a contract for the sale of Buyer's real estate as set forth in Paragraph 31 (B)(1)and that 327 contract is in full force and effect, or has entered into a contract for sale of Buyer's real estate prior to the execution of this 328 Contract, this Contract is contingent upon Buyer closing the sale of Buyer's real estate on or before 329 ,20 . If written notice that Buyer has not closed the sale of Buyer's real estate is 330 served before the close of business on the next Business Day after the date set forth in the preceding sentence,this 331 Contract shall be null and void.If written notice is not served as described in the preceding sentence,Buyer shall be 332 deemed to have waived all contingencies contained in this Paragraph 31,and this Contract shall remain in full force 333 and effect. 334 (3) If the contract for the sale of Buyer's real estate is terminated for any reason after the date set forth in Paragraph 31 (B)(1) 335 (or after the date of this Contract if no date is set forth in Paragraph 31 (B)(1)),Buyer shall,within three(3)Business Days 336 of such termination, notify Seller of said termination. Unless Buyer,as part of said notice,waives all contingencies in 337 Paragraph 31 and complies with Paragraph 31 (D),this Contract shall be null and void as of the date of notice.If 338 written notice as required by this subparagraph is not served within the time specified,Buyer shall be in default 339 under the terms of this Contract. 340 (C)SELLER'S RIGHT TO CONTINUE TO OFFER REAL ESTATE FOR SALE:During the time of this contingency,Seller 341 has the right to continue to show the Real Estate and offer it for sale subject to the following: 342 (1) If Seller accepts another bona fide offer to purchase the Real Estate while the contingencies expressed in subparagraph(B) 343 are in effect,Seller shall notify Buyer in writing of same.Buyer shall then have hours after Seller gives such 344 notice to waive the contingencies set forth in Paragraph 31 (B),subject to Paragraph 31 (D). 345 (2) Seller's notice to Buyer (commonly referred to as a "kick-out" notice) shall be served on Buyer, not Buyer's 346 attorney or Buyer's real estate agent. Courtesy copies of such"kick-out"notice should be sent to Buyer's attorney and 347 real estate agent, if known. Failure to provide such courtesy copies shall not render notice invalid. Notice to any one of a 348 multiple-person Buyer shall be sufficient notice to all Buyers. Notice for the purpose of this subparagraph only shall be 349 served upon Buyer in the following manner: 350 (a) By personal delivery of such notice effective at the time and date of personal delivery;or 351 (b) By mailing of such notice to the addresses recited herein for Buyer by regular mail and by certified mail. Notice 352 served by regular mail and certified mail shall be effective at 10:00 A.M on the morning of the second day following 353 deposit of notice in U.S.Mail;or 354 (c) By commercial overnight delivery (e.g.,FedEx). Such notice shall be effective upon delivery or at 4:00 P.M. Chicago 355 time on the next delivery day following deposit with the overnight delivery company,whichever first occurs. 356 (3) If Buyer complies with the provisions of Paragraph 31 (D)then this Contract shall remain in full force and effect 357 (4) If the contingencies set forth in Paragraph 31 (B) are NOT waived in writing within said time period by Buyer, this 358 Contract shall be null and void. 359 (5) Except as provided in subsections to subparagraph (C) (2) above, all notices shall be made in the manner provided by Buyer Initial P P Buver Initial Seller Initial Seller Initial Address 1 l k)t-56„n, Stir a P 3:L Page 7 360 Paragraph 27 of this Contract. 361 (6) Buyer waives any ethical objection to the delivery of notice under this paragraph by Seller's attorney or representative. 362 (D)WAIVER OF PARAGRAPH 31 CONTINGENCIES: Buyer shall be deemed to have waived the contingencies in Paragraph 363 31 (B) when Buyer has delivered written waiver and deposited with the Escrowee the additional sum of S 364 earnest money within the time specified. If Buyer fails to deposit the additional earnest money within the time specified,the 365 waiver shall be deemed ineffective and this Contract shall be null and void. 366 (E) BUYER COOPERATION REQUIRED: Buyer authorizes Seller or Seller's agent to verify representations contained in 367 Paragraph 31 at any time,and Buyer agrees to cooperate in providing relevant information. 368 369 ___32.CANCELLATION OF PRIOR REAL ESTATE CONTRACT: In the event either Party has entered 370 into a prior real estate contract, this Contract shall be subject to written cancellation of the prior contract on or before 371 .20 . In the event the prior contract is not cancelled within the time specified,this Contract shall be 372 null and void. Notice to the purchaser under the prior contract should not be served until after Attorney Review and 373 Professional Inspections provisions of this Contract have expired,been satisfied or waived. 374 375 _ _ 33. CLOSING COST CREDIT: Provided Buyer's lender permits such credit to show on the HUD-1 376 Settlement Statement, and if not, such lesser amount as the lender permits, Seller agrees to credit to Buyer 377 5 at closing. 378 379 ____34.INTEREST BEARING ACCOUNT: Earnest money (with a completed W-9 and other required forms), 380 shall be held in a federally insured interest bearing account at a financial institution designated by Escrowee.All interest earned on 381 the earnest money shall accrue to the benefit of and be paid to Buyer. Buyer shall be responsible for any administrative fee(not 382 to exceed$100)charged for setting up the account.In anticipation of Closing,the Parties direct Escrowee to close the account no 383 sooner than ten(10)Business Days prior to the anticipated Closing date. 384 385 __ 35.VA OR FHA FINANCING:if Buyer is seeking VA or FHA financing,this provision shall be applicable: 386 Buyer may terminate this Contract if the Purchase Price set forth herein exceeds the appraised value of the Real Estate, as 387 determined by the Veterans Administration (VA) or the Federal Housing Administration (FHA). However, Buyer shall have the 388 option of proceeding with this Contract without regard to the amount of the appraised_valuation.If VA,the Funding Fee, or if FHA, 389 the Mortgage Insurance Premium(MIP) shall be paid by Buyer and(check onclr0 shall❑ shall not be added to the mortgage 390 loan amount Seller agrees to pay additional miscellaneous expenses required by lender not to exceed 5200.00.Required FHA or 391 VA amendments shall be attached to this Contract. It is expressly agreed that notwithstanding any other provisions of this 392 Contract,Buyer shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture 393 of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA requirements, a written 394 statement by the Federal Housing Commissioner setting forth the appraised value of the property (excluding Closing costs)of not 395 less than$ Buyer shall have the privilege and option of proceeding with the consummation of the 396 Contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum 397 mortgage the Department of Housing and Urban Development will insure/guarantee.HUD and the mortgagee do not warrant the 398 value nor the condition of the property. Buyer should satisfy himself/herself that the price and condition of the property are 399 acceptable. 400 401 ___`36. INTERIM FINANCING: This Contract is contingent upon Buyer obtaining a written commitment for 402 interim financing on or before .20_in the amount of S .If Buyer is unable 403 to secure fire interim financing commitment and gives written notice to Seller within the time specified,this Contract shall be 404 null and void.If written notice is not served within the time specified,this provision shall be deemed waived by the Parties 405 and this Contract shall remain in full force and effect. 406 407 ___37.WELL AND/OR SEPTIC/SANITARY INSPECTIONS:Seller shall obtain at Seller's expense a well 408 water test stating that the well delivers not less than five(5)gallons of water per minute and including a bacteria and nitrate test(and 409 lead test for FHA loans) and/or a septic report from the applicable County Health Department,a Licensed Environmental Health 410 Practitioner,or a licensed well and septic inspector,each dated not more than ninety(90)days prior to Closing,stating that the well 411 and water supply and the private sanitary system are in proper operating condition with no defects noted. Seller shall remedy any 412 defect or deficiency disclosed by said report(s)prior to Closing;provided that if the cost of remedying a defect or deficiency and the 41 3 cost of landscaping together exceed 53,000.00,and if the Parties cannot reach agreement regarding payment of such additional cost, 414 then this Contract may be terminated by either Party. Additional testing recommended by the report shall be obtained at Seller's Buyer Initial _ Buyer Initial _Seller Initial Seller Initial___ _ Address sll Page 8 415 expense.If the report recommends additional testing after Closing,the Parties shalt have the option of establishing an escrow with a 416 mutual cost allocation for necessary repairs or replacements,or either Parry may terminate this Contract prior to Closing. Seller shall 417 deliver a copy of such evaluation(s)to Buyer not less than one(1)Business Day prior to Closing. 418 419 ____38. WOOD DESTROYING INFESTATION: Notwithstanding the provisions of Paragraph 10, within ten 420 (l0)Business Days after the Date of Acceptance, Seller at Seller's expense shall deliver to Buyer a written report, dated not more 421 than six(6)months prior to the date of Closing,by a licensed inspector certified by the appropriate state regulatory authority in the 422 subcategory of termites, stating that there is no visible evidence of active infestation by termites or other wood destroying insects. 423 Unless otherwise agreed between the Parties, if the report discloses evidence of active infestation or structural damage, Buyer has 424 the option within five(5)Business Days of receipt of the report to proceed with the purchase or declare this Contract null and void. 425 This paragraph shall not apply to condominiums or to newly constructed property having been occupied for less than one year 426 following completion of construction. 427 428 ____39 POST-CLOSIIN G POSSESSION:Possession shall be delivered no later than 11:59 P.M.on the date that 429 is days after the date of Closing("the Possession Date"). Seller shall be responsible for all utilities,contents and liability 430 insurance, and home maintenance expenses until delivery of possession. Seller shall deposit in escrow at Closing 431 with , /dioose onel �❑ one percent (1%) of the Purchase Price or ;❑ the sum of S 432 to be paid by Escrowee as follows: a)The sum of$ per day for use and occupancy from and including the 433 day after Closing to and including the day of delivery of possession, if on or before the Possession Date; b)The amount per day 434 equal to five (5) times the daily amount set forth herein shall be paid for each day after the Possession Date specified in this 435 paragraph that Seller remains in possession of the real estate;and c)The balance,if any,to Seiler after delivery of possession and 436 provided that the terms of Paragraph 22 have been satisfied. Seller's liability under this paragraph shall not be limited to the amount 437 of the possession escrow deposit referred to above. Nothing herein shall be deemed to create a Landlord/Tenant relationship 438 between the Parties. 439 440 —.-:- 40. "AS IS" CONDITION: This Contract is for the sale and purchase of the Real Estate and personal _ 441 property in its"As Is"condition as of the Date of Offer.Buyer acknowledges that no representations, warranties or guarantees with 442 respect to the condition of the Real Estate and personal property have been made by Seller or Seller's Agent other than those known 443 defects, if any, disclosed by Seller. Buyer may conduct an inspection at Buyer's expense. In that event, Seller shall make the 444 property available to Buyer's inspector at reasonable times.Buyer shall indemnify Seller and hold Seller harmless from and against 445 any loss or damage caused by the acts or negligence of Buyer or any person performing any inspoction(s), in the event the 446 inspection reveals that the condition of the improvements, fixtures or personal property to be conveyed or transferred is 447 unacceptable to Buyer and Buyer so notifies Seller within five(5) Business Days after the Date of Acceptance,this Contract 448 shall be null and void.Failure of Buyer to notify Seller or to conduct said inspection operates as a waiver of Buyer's right to 449 terminate this Contract under this paragraph and this Contract shall remain in full force and effect.Buyer acknowledges the 450 provisions of Paragraph 10 and the warranty provisions of Paragraph 3 do not apply to this Contract. 451 452 _41 CONFIRMATION OF DUAL AGENCY: The Parties confirm that they have previously consented to 453 ___ (Licensee)acting as a Dual Agent in providing brokerage services 454 on their behalf and specifically consent to Licensee acting as a Dual Agent with regard to the transaction referred to in this Contract. 455 456 42 SPECIFIED PARTY APPROVAL: This Contract is contingent upon the approval of the Real Estate by 457 .Buyer's specified parry, 458 within five(5) Business Days after the Date of Acceptance. In the event Buyer's specified party does not approve of the Real 459 Estate and written notice is given to Seller within the time speed,this Contract shall be null and void.If written notice is 460 not served within the time specified,this provision shall be deemed waived by the Parties and this Contract shall remain in 461 full force and effect. 462 463 _/ 43. MISCELLANEOUS PROVISIONS: Buyer's and Seller's obligations are contingent upon the Parties 464 entering into a separate written agreement consistent with the terms and conditions set forth herein,and with such additional terms 465 as either Parry may deem necessary,providing for one or more of the following: (check applicable boxfes)) 466 ❑ Assumption of Seller's Mortgage ❑ New Construction 467 ❑ Commercial/Investment/Starker Exchange ❑ Vacant Land 468 ❑ Cooperative Apartment ❑ Articles of Agreement for Deed or Purchase Money Mortgage Buyer Initial Buyer Initial Seller Initial _Seller Initial Address $'1 oww mrn � } f ' IL clzi Page 9 469 THIS DOCUMENT WILL BECOME A LEGALLY F""*" 1!`r ..TT-1 SIGNED BY ALL 470 PARTIES AND DELIVERED TO THE PARTIES OR THl � it 471 472 The Parties represent that text of this form has not been altere 16-Board Residential 473 Real Estate Contract 4.0. 474 1—&- 2010 20 10 475 too 476 T 477 uyer ignaturcl. 77�� 3eITer 478 G^`(e ch - 479 Buyer Signature 3eZTer_.a....W_ 480 Ha ern Fn City of 48 Print Buyer(s)Name(s) ( equtre Valley not everts am e(s) equrre _2 _ 483 Address Address 485 garmtersville Ti. 60110 60120 48b R47) 836-1432 State Zip city- at nap 847) 931-5657 ecek_c @cityofelgin.ozg 487 Pbone E-mail one E-mat 488 FOR INFORMATION ONLY 489 None None � g e sting Office 49 493 er s Designate Agent ML N-SiHer''s Designated Agent MLS# 495 P one Fax Phone Fax 497 He1mt E._Gerlach * Christo her J. Beck beck_c @cityofelgin.org 498 Buyers Attomey Seller's Attorney &mail 499 (847) 550-6430 (847) 931-5657 500 Phone Fax Phone Fax 501 N A 503 rtgage Gompany Phone NAeowner s n t any one 504 Loan Officer Fax MTnagement r Gontact Phone 505 506 02006, Illinois Real Estate Lawyers Association. All rights reserved. Unauthorized duplication or alteration of this form or any 507 portion thereof is prohibited. Official form available at www.reallaw.org(web site of Illinois Real Estate Lawyers Association). 508 509 Approved by the following organizations February 2006. 510 Illinois Real Estate Lawyers Association,Aurora Tri-County Association of REALTORS®,Chicago Association of REALTORS4, 511 DuPage County Bar Association,Kane County Bar Association,Lake County Bar Association,McHenry County Association of 512 REALTORS°,North Shore-Barrington Association of REALTORS*,Northwest Suburban Bar Association,Oak Park Board of 513 REALTORS*,REALTOR'Association of the Fox Valley,REALTOR*Association of the Northwest Chicagoland,REALTOR* 514 Association of West/South Suburban Chicagoland,Three Riven Association of REALTORS®,West Towns Board of REALTORS* 515 516 517 *helmutgerlach @sbcglobal.net 518 519 520 Seller Rejection: This offer was presented to Seller on _20 at �A►vL�PM 521 andrejectedon _20 at :_jANLPM 522 (Seller initials) (Seller initials) 523 PDF Version 4.0.2-5/2/06 Buyer Initial Buyer Initial Seller Initial _Seller Initial Address Page 10 RIDER TO REAL ESTATE CONTRACT FOR THE SALE OF 511 WASHBURN STREET,ELGIN,ILLINOIS 60123 �g / This Rider to the real estate contract is made and entered into this 6 day of �l (, 2010, by and between the City of Elgin, Illinois, an Illinois municipal corpor 'on, (hereinafter alternatively referred to as the "Seller" and the "City") and Habitat For Humanity of Northern Fox Valley, an Illinois not-for-profit corporation (hereinafter referred to as the"Buyer"). WITNESSETH: WHEREAS, the Seller is currently the owner of the property commonly known as 511 Washburn Street, Elgin, Illinois 60123 (hereinafter referred to as the"Subject Property"); and, WHEREAS, Seller and Buyer are concurrently with the entry into this Rider entering into a real estate contract providing for the sale of the Subject Property from the Seller to the Buyer (such contract is hereinafter referred to as the"Subject Contract"); and, WHEREAS, the parties wish to set forth further agreements between them regarding the sale of the Subject Property into the Subject Contract and incorporate this Rider into the Subject Contract. NOW, THEREFORE, for and in consideration of the mutual undertakings in the Subject Contract, the undertakings in this Rider, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: 1. The provisions of Section 40 of the Subject Contract,entitled"`As Is' Condition," is and shall be included as part of the Subject Contract, it being agreed and understood that the Subject Property is being sold and conveyed by the Seller to the Buyer in "as is" condition and that Seller will not be making any repairs nor providing any credit for repairs to the Buyer. 2. Following the purchase of the Subject Property from the Seller, the Buyer agrees to rehabilitate and renovate the Subject Property in accordance with the terms, conditions and provisions of a further agreement between the parties entitled "Neighborhood Stabilization Program Agreement between the City of Elgin and Habitat for Humanity of Northern Fox Valley to Rehabilitate and Sell 511 Washburn Street, Elgin, Illinois 60123" said agreement being incorporated herein by this reference (hereinafter referred to as the "Development Agreement"). For the purpose of clarification,and without limiting the alterations and renovations provided for or described in the Development Agreement, Buyer agrees that the renovation of the Subject Property will include, but not be limited to, the restoration of the Subject Property to its original use as a single-family residence. 3. Notwithstanding anything to the contrary in this agreement, it is expressly agreed and understood by the Buyer that in performance of this contract and the rehabilitation of the Subject Property that the Buyer shall also comply with all applicable federal, state,city and other requirements of law. 4. The deed of conveyance conveying the Subject Property from the City to the Buyer shall contain a provision making such conveyance subject to the terms and obligations of the Development Agreement. The deed of conveyance conveying the Subject Property from the City to the Buyer shall also contain deed restrictions as set forth in Section IVY of the Development Agreement. In the event of a default with respect to one or more of the conditions above, and/or in the event the Buyer otherwise breaches the terms of this agreement or the Development Agreement, which default has not been cured within thirty (30) days after receipt of written notice of such default, the City may file suit within the Circuit Court for the Sixteenth Judicial Circuit,Kane County, Illinois, for a determination that the conditions have been violated and/or the Buyer has so breached this Agreement or the Development Agreement, and may then pursue any and all available remedies at law, equity or otherwise including but not limited to providing a judgment and terminating the Buyer's rights in and to the Subject Property and require that conveyance back to the City of the Buyer's rights, title and/or interest in and to the Subject Property for the original price paid by the Buyer to the City, free and clear of all rights of the Buyer and any other person or entity. 5. Time is of the essence of this Agreement. 6. The failure by a party to enforce any provisions of this Agreement against the other party shall not be deemed a waiver of the right to do so thereafter. 7. This Agreement is and shall be deemed and construed to be a joint and collective work product of the City and the Buyer, and, as such, this Agreement shall not be construed against the other party, as the otherwise purported drafter of same, by any court of competent jurisdiction in order to resolve any inconsistency, ambiguity, vagueness or conflict, if any, in the terms and provisions contained herein. 8. This Agreement shall be binding on the parties hereto and their respective successors and permitted assigns. This Agreement and the obligations herein may not be assigned without the express written consent of each of the parties hereto, which consent may be withheld at the sole discretion of either of the parties hereto. 9. This Agreement is not intended and shall not be deemed or construed to create an employment,joint venture, partnership or other agency relations between the parties hereto. 10. Buyer shall not encumber, sell, convey or otherwise transfer their interest in the Subject Property prior to Buyer having completed the rehabilitation of the Subject Property and prior to the issuance of a letter of completion and compliance by the City confirming same. 11. The City and Buyer hereby expressly agree on behalf of themselves and their successors, assigns and grantees of the Subject Property that the non-conforming two unit use of the Subject Property has been abandoned, is null and void and that the lawful use of the Subject Property is and shall be as a single-family residence. Buyer and Buyer's successors and assigns shall maintain and use the Subject Property solely and only as a lawful, conforming single- family residential property in compliance with all applicable ordinances and requirements of law. -2 - 12. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with this Agreement shall be in the Circuit Court of Kane County, Illinois. In no event shall the City be liable for monetary damage to the Buyer for any reason, including, but not limited to, compensatory, consequential or incidental damages or attorney's fees. Notwithstanding anything to the contrary in this Agreement, with the sole exception of the grant monies the City has agreed to pay pursuant to the Development Agreement, no action shall be commenced by the Buyer or any of its successors, assigns or grantees against the City for monetary damages. 13. The terms of this Agreement shall be severable. In the event that any of the terms or provisions of this agreement are deemed to be void or otherwise unenforceable for any reason, the remainder of this agreement shall remain in full force and effect. 14. This Agreement shall not be modified or amended other than by written agreement of the parties hereto. 15. This Rider is incorporated into and made part of the Subject Contract. In the event of any conflict between the terms of this Rider and the terms of the Subject Contract, the terms of this rider shall control. All the obligations of the parties under this Rider to the Subject Contract shall be deemed remade as of the closing and shall survive the closing, and the remedies for breach thereof shall survive the closing and shall not be merged into the closing documents. IN WITNESS WHEREOF, Seller and Buyer have entered into and executed this Rider to as of the date and year first written above. SELLER: BUYER: CIT" HABITAT FOR HUMANITY OF ^� NORTHERN FOX VALLEY By_ - By jtq - &A-0-15'��,rA A AM Its f%XP_6&(tO2 AtPG&l City Clerk F:Tegal DeptlReal Estate\NSP\511 Washburn Street\Rider-Sale of 511 Washburn Street to HFH.doc -3 - EXHIBIT B SCOPE OF WORK AND COST ESTIMATES -TO BE SUPPLIED EXHIBIT B Scope of Work for 511 Washburn Avenue Exterior Rehabilitation: 1. Repair all windows a. Replace ropes, locking hardware, glazing putty, brokers glass, caulk,etc. b. Install new double-track anodized aluminum storm windows 2. Remove substitute siding a. Repair/replace damaged/missing/rotten siding and trim as needed 3. Remove enclosed front porch a. Restore open porch including columns, balustrade, and steps 4. Replace 2 exterior doors a. Install full view storm doors 5. Scrape and paint all wood surfaces 6. Remove garage a. Build new garage to match roof pitch, reveal and color of house 7. Install emergency egress windows in basement per code 8. Inspect and replace gutters and downspouts as needed 9. Inspect chimney, remove chimney and replace with new, if needed Interior Rehabilitation 1. Update all electrical, plumbing, and mechanical systems as required. New HVAC to be energy efficient. 2. All new trim and doors 3. Insulation a. Remove plaster walls and install batt insulation OR b. Blow-in from interior(holes cut along top of wall) 4. Kitchen/Baths a. Solid surface counter tops or laminate b. Tile floors 5. Usable, salvaged materials to be donated to ReStore 6. Energy efficient appliances 7. Tank-less water heater OR 40 gallon with blanket 8. Wrap all exposed ductwork and piping 9. Energy efficient light fixtures/bulbs 10. Rebuild stairs to basement and rear entry: remodel to incorporate as interior living space if possible 11. Remodel to provide 1 additional bedroom for loss of bedroom removed from front porch or remodel with one bedroom on each level 12. Conduct all necessary environmental remediation, including: a. Asbestos b. Mold c. Lead-based paint Habitat for Humanity of Northern Fox Valley r 511 Wasbum Est Cost 1451-Equipment and Tool Rental 1,000.00 1452-Equipment and Tool Purchase 750.00 1454-Performance Bonds 0.00 1455-Plans,Blueprints 2,000.00 1456-Permits 3,500.00 1457-Survey 750.00 1458-Excavation 1,500.00 1459-Real Estate Taxes 4,500.00 1460-Temporary Utilities 2,000.00 1461-Foundation Material 750.00 1462-Foundation Labor 0.00 1463-Septic,Sewer,Water 1,000.00 1464-Walks,Drives,Materials 2,000.00 1465-Walks,Drive Labor 2,000.00 1466-Framing Material 5,000.00 1467-Exterior Package Material 3,000.00 1468-Exterior Package Labor 2,000.00 1469-Siding 0.00 1470-Truss Package 0.00 1471-Roof Material 0.00 1472-Roof Labor 0.00 1473-Plumbing Material 3,000.00 1474-Plumbing Labor 2,500.00 1475-Electrical Material/1487 5,000.00 1476-HVAC Material 4,500.00 1477-HVAC Labor 3,000.00 1478-Doors and Windows/1479 H 5,000.00 1479-Hardware-Doors 500.00 1480-Insulation Material 4,000.00 1481 -Sheetrock Material 1,750.00 1482-Sheetrock Labor 1,200.00 1483-Stairs 500.00 1484-Interior Trim Package 1,500.00 1485-Cabinet Material 3,500.00 1486-Flooring Material 3,000.00 1487-Lighting Fixtures 500.00 1488-Paint 1,000.00 1489-Appliances 1,500.00 1490-Landscape 1,500.00 1491-Shed(Optional) 0.00 1492-Misc Construction Expense 1,000.00 1493-Deck,Porch,Patio 2,000.00 1494-Garage as required 6,000.00 1496-Asbestos,Lead,Mold Abatement&Other Contract Labor 7,500.00 1498-Purchase Home Rehab 0.00 91,700.00 TOTAL 91,700.00 847-836-1432 20 S.Grove,Suite 201 Carpentersville,IL 60110 www.hfhnfv.org