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HomeMy WebLinkAboutJ - 05b CDBG Project # 287HR317-21 Owner Occupied Loan AgreementOWNER -OCCUPIED LOAN AGREEMENT ,�,� � Aj� ks-k Made this �_ ay of 1*-2023 by Bethany A. Cutler, residing at 3628 Allen Drive, Cortland, New York (the "Borrower") and the Town of Cortlandville, a municipal corporation with offices at 3577 Terrace Road, Cortland, New York (the "Town"), through the Town of Cortlandville's Community Development Block Grant (CDBG) Program (the "program"). W ITNESSETH THAT: WHEREAS the Town has funds available through its CDBG Program for loans to homeowners qualifying under the CDBG Program, and WHEREAS the Borrower has applied. for such a loan, or loans, and is qualified and eligible for funds from this program, to be spent on her property located at 3628 Allen Drive, Cortland, New York, (the "subject property" as described in the attached Schedule A) for certain repairs and improvements (the "CDBG project"), and WHEREAS the Town is willing to lend money to the Borrower(s) pursuant to such program for the purpose of undertaking the CDBG project, subject to certain terms and conditions. NOW, THEREFORE, in reliance upon the information provided to the Town by the Borrower, and in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follows: 1. The Town agrees to lend $31,800.00 plus additional funds if there are any approved change orders to the Borrower (the "total CDBG assistance"); $ N/A of which shall be provided as a direct loan with an interest rate of zero percent (0%) repayable pursuant to the terms and conditions noted below under the heading "Direct Loan" if applicable, and $31,800.00 of which shall be provided as a deferred payment loan with an interest rate of zero percent (0%) repayable pursuant to the terms and conditions noted below under the heading "Deferred Payment Loan". The direct loan and/or deferred payment loan portions of the CDBG assistance may also be referred to as the loan or loans, collectively. A. Direct Loan Not Applicable B. Deferred Pavment Loan The Borrower agrees to repay to the Town all or a portion of the deferred payment loan portion of the total CDBG assistance (as calculated below) if: a. The Borrower sells the property within five years from the date of completion of the CDBG project, or b. The Borrower voluntarily or involuntarily no longer makes the property his/her/their primary residence within five years from the date of completion of the CDBG project including but not limited to, relocation, death, nursing home confinement, or imprisonment; or c. The Borrower sells, conveys or otherwise transfers ownership or title in the Property within five years from the date of completion of the CDBG project; or d. The Borrower rents, leases, or allows the use of the Property for any other person other than the Borrower within five years from the date of completion of the CDBG project; or e. The Borrower violates any other terms of this Agreement within five years from the date of completion of the CDBG project. The CDBG project completion date will be the date on which the final disbursement of the total CDBG assistance is/was made. In the event a, b, c, d, or a above should occur, the Borrower may be required to repay all or portion of the assistance. To determine the amount of the assistance to be repaid, the Borrower will be credited 1/60th of the deferred payment loan portion of the CDBG assistance for each month the Borrower reside(s)/resided in the property from the date of completion of the CDBG project, until the date of occurrence of default (i.e., the date a, b, c, d, or a above occurs) (the "residency credit"). The amount of the residency credit shall be subtracted from the deferred payment loan portion of the total CDBG assistance and the resulting balance of the deferred payment loan portion of the total CDBG assistance will be due and payable to the Town. 2. The Borrower agrees to sign a new Owner -Occupied Loan Agreement and Note and Mortgage if the amount of funds advanced is different from the amount identified in #1 above. 3. The Borrower agrees and accepts as a condition of this assistance from the Town to bring current, and keep current for the duration of this loan, all real property taxes, assessments, and water/sewer charges pertaining to all property owned by Borrower in the Town of Cortlandville, Cortland County, New York. 4. The Borrower will provide proof of fire insurance on the subject property to the Town with the Town of Cortlandville listed as a Loss Payee or Mortgagee, as determined by the Town. The insurance shall be in an amount adequate to cover all outstanding debts on the property including the Town's loan or loans, whichever is greater. The insurance will be kept current for the life of the loan or loans. 5. The Borrower will sign a Note and Mortgage in the amount of $31,800.00, even date herewith, as a condition of this Agreement, and in the event that said Note and Mortgage terms conflict with the terms and conditions stated herein, said Note and Mortgage provisions shall prevail. 6. The Borrower acknowledges the rights of the Town as creditor and agrees to notify the Town prior to incurring any additional debt on the subject property which could cause a lien to be filed against said property. 7. At the option of the Town, the direct loan and /or deferred payment loan portions of the CDBG assistance, whichever is applicable, will be paid in full if the property is sold and/or if the Borrower no longer uses the subject property as Borrower's primary place of residence before the term of the direct loan and/or deferred payment loan expires, whichever is applicable. In the event a pay off is required hereunder, the Borrower will be credited with a residency credit on the deferred payment loan portion of the CDBG assistance determined as noted in condition 1.13. above. 8. At the option of the Town, no advance shall be due unless (a) all work usually done at that stage of construction is done in a good and workmanlike manner, and (b) all materials and fixtures usually installed and furnished by that stage of construction are installed and furnished. The Town shall inspect the work prior to the making of any installment. Work is to be done to the Town's satisfaction. No installment is to be paid unless construction is approved by an engineer, architect, or other party satisfactory to the Town. 9. At the option of the Town, if the work stops or does not proceed at a reasonable speed, the Town may employ workmen and purchase materials to complete or protect the work. If mechanics liens or orders or assignments of contract are filed against the property, the Town may pay and satisfy them. If any taxes, assessments, sewer rates, or water rates charged against the property are not paid when due, the Town may pay them. Payments made by the Town under this Paragraph are secured by the aforementioned Note and Mortgage as if they were installments paid to the Borrower. 10. At the option of the Town, Borrower agrees to pay for and indemnify the Town for all claims or liens for materials, labor, or services furnished for the improvements on the property. Borrower shall defend any action or proceeding brought against the Town on these liens or claims with an attorney of the Town's choice. 11. The Borrower agrees to maintain the subject property and make immediate corrections to any code violations. Yearly inspections of the subject property may be made for the term of the loan or loans, whichever term is longer, by the Town Code Enforcement Office or other Town representatives. 12. Compliance with HUD requirements: The Borrower shall comply with all of the following requirements: (a) The regulations for the CDBG Program contained in 24, Part 570. (b) All requirements imposed by Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and Section 109 of the Housing and Community Development Act of 1974, as amended, and the regulations related to equal opportunity (24 CFR, Part 570.601). No person in the United States shall, on the grounds of race, color, creed, religion, national origin, sex, familial status, or handicap be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any project assisted with Community Development Block Grant funds. (c) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (Public Law 93-234), if the rehabilitated property is located within the Town's floodplain area. (d) The regulations, policies, guidelines, and requirements of OMB Circular A-102 Revised (Handbook 1300.17), which relates to the acceptance and use of federal funds. (e) Requests from HUD, the Town and/or the Comptroller General (or any authorized representatives) for access to and the right to examine all records, books, papers or documents related to the loan and cooperate fully with the Town in supplying information to meet CDBG audit requirements. (f) The regulations of Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988; which directly prohibits discrimination in the sale, financing, rental, or advertisement of housing on the basis of race, color, religion, national origin, sex, familial status, or handicap. (g) The lead -based paint requirements of 24 CFR, Part 35, Subpart B, issued pursuant to the Lead -Based Paint Poisoning Act (42 U.S.C., 4801 e t seq.). 13. The Borrower will, if requested by the Town, cooperate fully and adjust for clerical errors, execute, or re -execute any and all agreements or other documents executed as evidence of the Borrower's debt to the Town as deemed necessary or desirable in the reasonable discretion of the Town to enable the Town to fully complete the transaction as intended, and to protect the Town's interests to the satisfaction of its Town's legal counsel. 14. In the event there is more than one Borrower, each shall be jointly and severely responsible for the direct loan and/or deferred payment loan, whichever is/are applicable. 15. This Agreement is binding upon the parties hereto, their heirs, successors, representatives, administrators, and assigns. The Borrower shall not assign without Town approval. IN WITNESS WHEREOF, the Town and the Borrower hereto have set their hands as of the date set forth at the beginning of this Agreement. Town oandvill Thomas A. Williams, Supervisor BORROWER: Bethany A. Cutlki AFFIDAVIT TOWN OF CORTLANDVILLE: STATE OF NEW YORK: ss: I, Thomas A. Williams, having been duly sworn, hereby depose and say that: 1. 1 am Supervisor of the Town of Cortlandville, an incorporated municipality in the County of Cortland, State of New York, and 2. In my capacity as Supervisor, I am fully familiar with the extension of loan funds by the Town's Community Development Program to Bethany A. Cutler, on or about Augusta 10, 2023 in the amount of $31,800.00 and 3. The Town received in return for said loan funds a mortgage on the property located at 3490 Kellogg Road, in the Town of Cortlandville, and 4. Upon information and belief, based upon the information supplied by the New York State Department of Taxation and Finance the Town of Cortlandville Is "... an organization organized other than for profit which is operated on a non-profit basis no part of the net earnings of which inures to the benefit of any officer, director or member and which is exempt from Federal Income Taxation pursuant to Section A of Section 501 of the Internal Revenue Code ...", and as such, is exempt from the mortgage tax as well as the special mortgage tax imposed by State Tax Law, and I request the Clerk of the County of Cortland to record the aforesaid mortgage without charging the above mentioned mortgage taxes. 1 Thomas A. Williams, Supervisor Sworn to me this, _ day of t \ ell .2023 ABIGAIL C. ALBRO �U( NOTARY PUBLIC, STATE OF NEW YORK Registration No. Qualified in Cortland County Commission Expires September 28, 2C 24 Notary Pub 'c ACKNOWLEDGEMENT STATE OF NEW YORK ) COUNTY OF CORTLAND ) ss: On the 6day of 60) in the year 2023 before me, the undersigned, a Notary Public in and for said state, persolilially appeared Thomas A. Williams, Supervisor of the Town of Cortlandville, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. C aAlrtz NotarjPu is STATE OF NEW YORK COUNTY OF CORTLAND ) ss: ABIGAIL C. ALBRO NOTARY PUBLIC, STATE OF NEW YORK Registration No. 01AL6409363 Qualified in Cortland County rv,, Commission Expires September 26, 20n On the )0,jday of t11.aas-l— in the year 2023 before me, the undersigned, a Notary Public in and for said state, personaVy appeared Bethany A. Cutler, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. �otary Public KATHARINE L. BLAISDELL Notary Public, State of New York No. 01 BL6251151 Qualfied in Cortland County My Commission Expires 11I9412Q-i= SCHEDULEA PROPERTY DESCRIPTION ALL OF THAT TRACT OR PARCEL OF LAND, situate in the Town of Cortlandville. County of Cortland, Slate of New York, bounded and described as follows: BEGINNING at a point located at the intersection of the northerly street line of McLean Road with the easterly street line of Allen Drive; Thence running North 08' 03' 00" East, along the easterly street line of Allen Drive, a distance of 114.25 feet to a point marked by a found Iron pipe; Thence running South 83' 48' 55" East, a distance of 193.75 feet to a point marked by a found Iron pipe; Thence running South 08° 03' 00" West, a distance of 114.19 feel to a point marked by a found rodlcap located in the northerly street line of McLean Road; Thence running North 83` 50' 00" West, along the northerly street line of McLean Road, a distance of 193.75 feet to the point and place of beginning. Together with those lands on the South to the centerline of McLean Road, subject to the rights of the public therein for street or highway purposes. Together with those lands on the West to the centerline of Allen Drive, subject to the rights of the public therein for street and highway purposes. The above described premises are more particularly described on a survey map entitled "Lands of Desiree Wakeham (reputed owner) - 3628 Allen Drive - Town of Corliandvllle - Cortland County - New York" made by R. James Slockwin, PLS No. 49012, dated January 4, 2013, a copy of which Is recorded in the Office of the Cortland County Clerk In Instrument No, 2013-00536. NOTE: Property is commonly referred to as 3628 Allen Drive, Cortland, NY Town/City/Village: CORTLANDVILLE County: CORTLAND Section — Block- Lot: 96.09-01-24.000