MADISON HEIGHTS DEVELOPER HOME AGREEMENT PHASE I AMEND 1.PDF

Amendment No. 1
C-22-15-062-3-01
Madison Heights Phase I
Maricopa County HOME Agreement
AMENDMENT TO THE CONTRACT FOR SERVICES AGREEMENT
A DEVELOPER AGREEMENT BETWEEN
MARICOPA COUNTY
ADMINISTERED BY ITS
HUMAN SERVICES DEPARTMENT
AND
MADISON HEIGHTS PHASE I, LLC
I. The purpose of contract Amendment No.1 to Contract C-22-15-062-3-00 is to address the following
items:
A. Delete the first recital of the Agreement on page 1 by defining Parties and replace with the
following:
Parties. In this HOME Agreement (“Agreement”), the words “we,” “us,” “our,” and
“County” refer to the County of Maricopa, an Arizona municipal corporation, and the words
“you,” “your,” “Developer” and “Madison Heights” refer to Madison Heights Phase 1, LLC,
a Wisconsin limited liability company, its members and managers, including but not limited
to: Madison Heights Phase I MM, LLC, its managing member and, Gorman Employee
Group Madison Heights Phase I, LLC, its special member. The parties to this Agreement
may collectively be referred to as the “parties” or individually as a “party”.
Parties. In this HOME Agreement (“Agreement”), the words “we,” “us,” “our,” and
“County” refer to the County of Maricopa, an Arizona body politic and corporate, and the
words “you,” “your,” “Developer” and “Madison Heights” refer to Madison Heights Phase 1,
LLC, a Wisconsin limited liability company, whose members and managers, including but
not limited to: Madison Heights Phase I MM, LLC, its managing member and, Gorman
Employee Group Madison Heights Phase I, LLC, its special member. In this Agreement the
County and Madison Heights may collectively be referred to as the “parties” or individually
as a “party”.
B. Delete the last sentence of paragraph 4 and insert the following:
Notwithstanding the forgoing as long as Madison Heights complies with the terms of this
agreement during the Period of Affordability, the loan shall be non-recourse to Madison
Heights.
This loan is non-recourse. Notwithstanding the foregoing, the County may enforce all
remedies provided by its security instruments, including but not limited to the Declaration of
Affirmative Land Use Restrictive Covenants. See Exhibit B.
C. Delete paragraph 6.6 and replace with the following:
6.6 Program Income. All program income must be returned to the County. Program income
is defined as all gross income received by the Madison Heights directly generated from the
use of funds provided by this Agreement or matching contributions. When program income is
generated by housing that is only partially assisted with HOME funds or matching funds, the
income shall be prorated to reflect the percentage of HOME fund used. For this Agreement,
program income will only be generated if the property ceases to function as affordable
HOME assisted property through sale or otherwise during the period of affordability, the
twentieth anniversary of the date of first occupancy of the last rented HOME assisted units.
HOME Program Income must be returned to the County within thirty (30) business days.
Page 1 of 2
Contract Number: C-22-15-062-3-00

Amendment No. 1
C-22-15-062-3-01
Madison Heights Phase I
Maricopa County HOME Agreement
Program Income includes, but is not limited to: [1] proceeds from the disposition by sale or
long-term lease of real property acquired, rehabilitated or constructed with HOME funds or
matching contributions, [2] gross income from the use or rental of real property, owned by
Madison Heights that was acquired, rehabilitated, or constructed with HOME funds or match
contributions, less cost incidental to generation of the income; [3] payments of principal and
interest on loans made using HOME funds or match contributions; [4] Proceeds from the sale
of loans made with HOME funds or matching contributions; [5] Proceeds from the sale of
obligations secured by loans made with HOME funds or matching contributions; [6] Interest
earned on program income pending its disposition; and [7] Any other interest or return on the
investment permitted under 24 CFR 92.205(b) of HOME funds or matching contributions.
(Program income does not include gross income from the use, rental or sale of real property
received by the project owner, developer, or sponsor, unless the funds are repaid to the
County under the terms of Exhibit B: Form Declaration of Affirmative Land Use Restrictive
Covenants and Attachments 1-4).
6.6 Program Income. All Program Income, as defined in 24 C.F.R. §92.2, must be returned
to the County. Program Income does not include gross income from the use, rental or sale of
real property received by the project owner, developer, or sponsor, unless the funds are repaid
to the County under the terms of Exhibit B: Form Declaration of Affirmative Land Use
Restrictive Covenants and Attachments 1-4.
II. By executing below, each party acknowledges that it understands, approves, and accepts all of the
terms of this Agreement and the attached Exhibits and Attachments.
Madison Heights Phase I, LLC, Maricopa County
a Wisconsin limited liability company (Described as “we” or “County” throughout the
By: Madison Heights Phase I MM , LLC Agreement)
Its: Member
By: Gorman Employee Group By:______________________________________
Madison Heights Phase I, LLC Steve Chucri, Chairman Date
Its: Manager
By: Gorman & Company, Inc.
Its: Manager Attested By:
(Described as “you” or “MADISON
HEIGHTS” throughout the Agreement)
_______________________________________
Clerk of the Board Date
By:
______________________________________ Approved as to form:
Gary J. Gorman, President
Address: 200 N. Main Street
Oregon, WI 53575 By: _____________________________________
Deputy County Attorney Date
Page 2 of 2
Contract Number: C-22-15-062-3-00