HomeMy WebLinkAbout5.b. Cimarron Village Townhomes Final Plat .: ,
• CITY OF` ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COtTNCIL MEETING DATE: October 2, 1990
AGENDA ITEM: Cimarron Village Townhouses AGENDAOiE�CB�sNness
Final Plat
PRE�'ARED BY: Michael Wozniak, AICP AGENDA N
City Planner
�TEM # � �
ATTACHMENTS: Resolution; Final Plat; APPRO �
Subd. Development Contract; Applicant' s Letter
The Conlan/Nichols Campany has requested final plat proval for the
Cimarron Village Townhouses plat. This plat creates a 3 .7-acre lot,
al?owing construction of a 36-unit rental townhouse project.
Attached with this review is a copy of the Cimarron Village Townhouses
final plat, subdivision development contract and adopting resolution.
The Planning Commission recommended -approval of the Gimarron Village
Townhouses preliminary plat at its May 22nd meeting and approved the
Cimarron Village Townhouses Site Plan at its July l0th mesting. The
City Council approved the Cimarron Village Townhouses preliminary plat
a� its June 5th meeting.
The final plat as submitted is in conformance with the preliminary plat
and meets a11 zoning and subdivision ordinance requirements .
The Planning Commission, at its September 1T, 1990 meeting, recommended
that City Council anprove the Cimarran Village Townhouses final plat
subject to an executed Subdivision Development Contract.
The project Developer has elected to request a waiver from having to
provide the Letter of Credit which has been referenced in the
Development Contract. The developer is also requesting a waiver to
reauirements for a Performance Bond ta guarantee proper installation of
site landscaping. It is standard City policy to require these
financial guarantees and, therefore, staff f:eels consideration of this
waiver is a matter to be decided by City Council. Attached with this
memo is a letter from the Developer` s attorney explaining the nature of
the request.
RECOI�NtENDED ACTION: A motion to adopt A RES�LUTION APPROVING THE
CIMARRON VILLAGE TOWNHOUSES FINAL PLAT and
approving the Cimarron Village Townhauses
Subdivision Development Contract.
COUNCIL 1�iCTION:
Approved final plat and_ d.evelopment contract .
- CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1990-
A RESOLUTION APPROVING THE CIMARRON VILLAGE TOWHOUSES
FINAL PLAT
WHEREAS, the City af Rosemount has approved the Cimarron Village
Townhouses Preliminary Plat.
WHEREAS, the Planning Commission of the City of Rosemount has
recommended approval of the Cimarron Village Townhouses final
plat.
NOW, THEREFORE, BE IT RESDLVED, the City Council of the City of
Rosemount hereby approves the Cimarron Village Townhouses final
plat subject to an executed Subdivision Development Contract.
k�OPTED this 2:�d day o� October, 1990 .
Vernon J. Napper, Mayor
ATTEST:
Susan M. Johnson, City Clerk
Motion bY� Seconded by;
Voted in favor•
Voted against•
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IAND SURVEYORS INC. •
Development Contract
Cimarron Vitlage Townhouses
AGREEMENT dated 1989, by and between the CITY OF
ROSEMOUNT, a Minnesota municipal corporation, ("City"), and Cimazran Village Townhouses,
a Minnesota limited partnership, (the "Developer").
1. Request for Plat Approval. The Developer has asked the City to approve a plat of
land to be knowa as CIMARRON VILLAGE TOWNHOUSES, (also refened to in this Contract
as the "plat"). The land is legally described on the attached E�ibit "A".
2. Candition of Plat Approval. The City hereby approves the plat on condition that
the Developer enter into this Contract and furnish the security required by it.
3. Effect of Subdivision Approval. For two (2) years from the date of this Cantract,
no amendments to the City's Comprehensive Plan, except an amendment placing the plat in the
current urban service area, or official controls shall apply to or affect the use, development
density, lot size, lot layout or dedications of the approved ptat unless required by state or federal
law or agreed to in writing by the City and the Developer. Thereafter, notwithstanding anything"
in this Contract to the contrary, to the full extent permitted by state law xhe City may require
compliance with any amendments to the City's Comprehensive Plan, official eontrols, platting or
dedication requirements enacted after the date of this Contract.
,
4, Development Plans. The plat shall be developed in accordance with the following
plans. The plans shall not be attached to this Contract. With the exception of Plan A, the plans
may be prepared, subject to City approval, after entering the Contract, but before commencement
of any work in this plat. If the plans vary from the written terms of this Contract, the written
terms shall controL The plans are:
Plan A--Plat
Plan B--Plans and Spe�cations for Public Improvements
Plan C--Grading Plan
Plan D--Landscaping Plan
Plan E--Pedestrian Trail Plan
5. Private Improvements. The Developer shall install in accordance with City ordinances
and standards and pay for the following in accordance with the referenced completion dates:
A. Site Grading.
B. Surveying, Staking and Monumentation.
C. Gas, Electric, Phone Utilities and Cable Television, if cable television is available
to the plat.
D. Sanitary Sewer.
E. Pedestrian Trail.
F. Watermain
6. Grading Plan/Site Grading. The Developer shall submit to the City a site grading
and drainage plan prior to installation of the improvements.
7. License. The Developer hereby grants the City, its agents, employees, officers and
contractors a license to enter the plat to perform all work and inspections deemed appropriate
by the City during the installation of public improvements by the City. The license shall expire
after the plat has been developed.
8. Landscaping. Prior to the City allowing occupancy of any units all plant materials
indicated in the Landscaping Plan, shall be installed to the satisfaction of the City Engineer.
- 9. Clean up. The Developer shall clean dirt and debris from streets that has resulted
from construction work by the Developer, its agents or assigns, within 24 hours after notice by
the City.
10. Ownershig of Improvements. Upon completion af the work and construction required
by this Contract, the improvements lying within public easements shall become City property
without further notice or action.
11. Security. The Developer shall furnish the City with a cash escrow or inevocable
letter of credit for $?A,000.00. The amount was calculated as follows:
100% of Watermain $ 2A,00(1.00
The bank and form of the letter of credit shall be subject xo the approval of the City
Administrator. The letter of credit shall be for a term ending December 31, 1993. In the
alternative, the letter of credit may be for a one year term provided it is automatically renewable
for successive one year periods from the present or any future expiration dates with a final
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exgiration date of December 31, 1993, unless sixty (60) days prior to an expiration date the bank
notif`ies the City that it elects not to renew for an additional period. The letter of credit shall
secure compliance with the terms of this Contract,payment of special assessments and all financial
obligations of the Developer under it. The City may draw down on the letter of credit without
notice upon receiving notice that the letter of credit will be allowed to lapse before December
31, 1993. In the event of a default under this Development Contract by the Developer, the City
shall furnish the Developer with written notice by certified mail of Developers default(s) under
the terms of this Develapment Contract. If the Developer does not remove said default(s) within
two (2) weeks of receiving notice, the City may draw on the letter of credit. VVith City approval
the letter of credit may be reduced from time to time as public improvements are completed to
the City's requirements. In lieu of providing a cash escrow or letter of credit to adequately
guarantee the Developer may elect to complete installation of public watermain prior to issuance
of building permits.
12• Warranty. The Developer warrants all work required to be performed by it against
poor material and faulty workmanship for a period of one (1) year after its completion and
acceptance by the City. All trees, grass and sod shall be warranted to be alive, of good quality
and disease free for twelve (12) months after planting. Any replacements shall be warranted for
twelve (12) months from the time of planting. The Developer shall post maintenance bonds or
other security acceptable to the City to secure the warranties.
13. Responsibility for Costs.
A. Except as otherwise specified herein, the Developer shall pay all costs incurred
by it or the City in conjunction with the development of the plat including, but not limited to,
legal, planning, engineering and inspection expenses incurred in connection with approval and
acceptance of the plat, the preparation of this Contract, and all costs and e�penses incurred by
the City in monitoring and inspecting development of the plat.
B. The Developer shall hold the City and its officers and employees harmless from
claims made by itself and third parties for damages sustained or costs incurred resulting from plat
approval and development. The Developer shall indemnify the City and its officers and employees
for all costs, damages or e�enses which the City may pay ar incur in consequence of such claims,
3
including attomey's fees.
C. The Developer shall reimburse the City for costs incurred in the enforcement
of this Contract, including engineering and attorney's fees.
D. The Developer shall pay in full all bills submitted to it by the City for obligations
incurred under this Contract within thirry (30) days after receipt. If the bills are not paid on
time, the City may halt plat development work and construction including, but not limited to, the
issuance of building permits, until the bills are paid in full. Bills not paid within thirty (30) days
shall accrue interest at the rate of 8% per year.
E. In addition to the charges referred to herein, other charges and special
assessments may be imposed such as, but not limited to,sewer availability.charges ("S.A.C:'), city
water connection charges, city sewer connection charges, storm sewer connection charges and ,
building permit fees.
F. The Developer shall make a cash contribution to the City of Fourteen Thousand
Faur Hundred and OQ/1(� ($14,400.(?Q) Dollars for park dedication before the City releases
hazdshell copies of the plat.
G. The Developer represents any taxes or assessments on the property subject to
this Agreement are not deferred under Minnesota Statutes Annotated §273.111 (commonly called
Green Acres). The Developer agrees that it will not make application for deferred taxes or
assessments under Minnesota Statutes Annotated §273.111.
14. Building Permits. No building permits shall be issued untiL•
A. The site grading has been completed and approved by the City.
B. The City Engineer has certif'ied that the timetable for construction of public
improvements is co�patible with rental townhouse construction.
C. The Developer, in executing this Agreement, assumes all liability and costs for
damage or delays, incurred by the City, in the construction of public improvements, caused by the
Developer, its employees, contractors, subcantractors, materialmen or agents. No occupancy
permits shall be issued until the public utilities referred to in paragraph 5 are in and approved
by the City, unless otherwise authorized in writing by the City Engineer.
15. Developer's Default. In the event of default by the Developer as to any of the work
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to be performed by it hereunder, the City may, at its option, perform the work and the Developer
shall prompdy reimburse the City for any expense incurred by the City, provided the Developer
is first given notice of the work in default, not less than 48 hours in advance. This Contract is
a license for the City to act, and it shall not be necessary for the City to seek a court order for �
permission to enter the land. When the City does any such work, the City may, in addition to
its other remedies, assess the cost in whole or in part.
16. Miscellaneous.
A. The Developer represents to the City that the plat complies with all city, county,
metropolitan, state and federal laws and regulations including, but not limited to: snbdivision
ordinances, zoning ordinances and environmental regulations. If the City determines that the plat
does not eomply, the City may, at its option, refuse to allow construction or development work
in the plat until the Developer does comply. Upon the City's demand, the Developer shall cease
work until there is compliance.
B. Third parties shall have no recourse against the City under this Contract.
C. Breach of the terms af this Contract by the Developer shall be grounds for
denial of building permits, including lots sold to third parties.
D. If any portion, section, subsection, sentence, clause, paragraph or phrase of this
Contract is for any reason held invalid, such decisian shall not affect the validity of the remaining
portion of tlus Contract.
E. If building permits are issued prior to the completion and aeeeptance of public
improvements, the Developer assumes all liability and costs resulting in delays in completion of
public improvements and damage to public improvements caused by the Ciry, Developer, its
contractors, subcontractors, materialmen, employees, agents or third parties. No one may occupy
a building for which a building permit is issued on either a temporary or permanent basis until
parking areas needed for access have been paved with a bituminous surface.
F. The action or inaction of the City shall not constitute a waiver or amendment
to the provisions of this Contract. To be binding, amendments or waivers shall be in writing,
signed by the parUes and approved by written resolutian of the Ciry Council: The City's'failure
to promptly take legal action to enforce this Contract shall not be a waiver or release.
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G. The Developer represents to the City to the best of its knowledge tbat the plat
is not of "metropolitan signi#icance" and that an environmental impact statement is not required.
If the City or another governmental entiry or agency determines that such a review is needed,
however, the Developer shall prepare it in compliance with legal requirements so issued from the
agency. The Developer shall reimburse the City for all expenses, including staff time and
attorney's fees, that the City incurs in assisting in the preparation of the review.
H. This Contract shall run with the land and may be recorded against the titie to
the property. After the Developer has completed the work required of it under this Contract,
at the Developer's request, the City will execute and deliver to the Developer'a release.
I. Each right, power or remedy herein conferred upon the City is cumulative and
in addition to every other right, power or remedy, express or implied, now or hereafter arising,
available to the City, at law or in equity, or under any other agreement, and each and every right,
power and remedy herein set forth or otherwise so existing may be exercised from iime to time
as often and in such order as may be deemed expedient by the City and shall not be a waiver
of the right to exercise at any time thereafter any other right, power or remedy.
J. The Developer may not assign this Contract without the written permission of
the City Coun�il.
17. Notices. Required notices to the Developer shall be in writing, and shall be either
hand delivered to the Developer, its employees or agents, or mailed xo the Developer by
registered mail at the following address Cimarron Village Townhouses, c/o Popham, Haik,
Schnobrich, 3300 Piper Jaffrey Tower, Minneapolis, MN, 55402. Notices to the City shall be in
writing and shall be either hand delivered to the City Administrator, or mailed to the City by
registered mail in care of the City Administrator at the following address: Rosemount City Hall,
2875 145th Street West, Rosemount, Minnesota 55068, Attention: Administrator.
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CITY OF ROSEMOUNT
BY:
Vernon J. Napper, Mayor
: BY:
Stephan 3ilk, City Administratar
CIMARRON VILI,AGE TOWNHOUSES
BY:
Its Partner
BY:
Its Partner
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of
1990,by Vernon J. Napper,Mayor,and Stephan Jilk,
City Administrator, of the City of Rosemount, a Minnesota municipal corporation, on behalf of
the corporation and pursuant to the authority granted by its City'Council.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF DAKOTA )
' The foregoing instrument was acknowledged before me this day of
1990, by
Partner and Partner; Cimarron Village Townhouses
Partners.
Notary Public
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POPHAM, HAIK, SGHNOBRICH & KAUFMAN, LTD. �
3300 PIPER JAFFRAY TOWER
MINNEAPOLIS, MINNESOTA 55402 '
� .. � . � . . TELEPHONE . . . . . '
. . . � � 612-333-4800 � . . . . �
. . TELECOPIER � � � . � . �
. . � � � � . � . 1331 612-33a-2�i3 � � �
. . �(321 612-334-2781 � . . .
� � 1311 612-334-2503 � �
WASHINGTON, D.C.20036 DENVER,COLORADO 80202
� . .Sui7e 300 SOUrH � �INCW��ING THE FORMER LAW�FIRM OF NALPERN 6�DRUCK � SUtrE aa00 � � �
� 1800 M STREET,N,W. . . � � � 1200 SEVENTEENTH STREET � . :
� TELEPHONE202-82�8-5300 � . � � � � TELEPHONE.303-893-1200 . .
� �TELECOPIER 202-BEB-S3IB � . . .� � � � � � .TELECOPIER 303-893-2194
DIRECT DIAL NUMBER
(612 ) 334-2705
VIA MESSENGER
September 26, 1990
Michael Wozniak
City Planner
City of Rosemount
P.O. Box 510
2875 - 145th Street West
Rosemount, Minnesota 55068
Re: Cimarron Village Townhouses
Dear Mr . Wozniak:
I represent Cimarron Village Townhouses in connection with
the proposed development in Rasemount . Mike Conlan has asked that
I contact you regarding the water line and landscaping that are to
be installed in the property.
As Mike Conlan has undoubtedly discussed with you, the
project will be financed by a loan insured by the FHA. Under the
requirements for FHA insurance, the contractor would be obligated
to provide full payment and performance bbnds to guarantee
construction of the entire project . I have enclosed copies of the
form of bonds that FHA requires. So long as the plans and
specifications include the required water line and landscaping,
which the City can of course verify, the payment and performance
bonds should provide adequate assurance that such improvements
will in fact be made .
In addition to the payment and performance bonds, the
Building Loan Agreement that FHA requires, a copy of which is
enclosed, provides that the FHA must apprave all monthly advances
under the financing. In addition, section ( 4 ) (b) states that
final disbursement will be conditioned upon the municipality
signing off an all landscape and utility requirements . We believe
that the additional safeguards imposed by the Building Loan
. Agreement would provide the City further comfort that the required
Mr . Michael Wazniak
September 26, 1990
Page -2-
impravements will be made . Finally, the Construction Contract
that will be signed by the contractor , a copy of which is
enclosed, also requires that all draws and work be made in
accordance with the plans and specifications that FHA has approved.
Because of the faregoing assurances required in the FHA
process, we believe that the City' s concerns with respect to the
water line and landscaping are adequately addressed without the
need for a separate bond or letter of credit. We therefore
request that the City waive the requirement that a bond or letter
of credit be posted for the water line and landscaping for this
project.
We appreciate your consideration and would be hagpy to
answer any guestions you may have .
Sincerely,
�`
Bradley . Fuller
BAF• leh
Enclosure
cc: Mr . Michael Conlan
483ZBAF
C.OI7Stt'llCtlOtl �.011tt'8Ct u.s. �epartment ot Housing
�OS� P'uS and Urban Development �
��
THIS AGREEMENT, made the day of 19 , between
(hereinafter called the "Contraetor") and
(hereinafter calted the "Owner").
WITNESSETH, that the Conuactor and the Owner, for the consideration hereinafter set out, agree as follows:
Articie 1 — Scope of Contract
A. The Conuact between the parties is set forth in the "Contract Documents," which consist of this Agreement, the Drawings and
Specifications, which inciude the current edition of AIA Document A2A1, "General Conditions of the Contract for Construction,"
and Form HUD 2554, "Suppiementary Conditions of the Contract for Construetion." The provisions of this instument and the said
HUD Supplementary Conditions take precedence over all inconsistent provisions in the said AIA General Conditions. This Contract
constitutes the entire agreement between the parties, and any previously existing contract concerning the work cantemplated by the
Contract Documents is hereby revoked.
B. The Contractor shall furnish all of the materials and perform all of the work (within the property lines) shown on, and in accord-
ance with, the Drawings and Specifications entitied ,
HUD Project No. , dated
C. The Drawings, which are numbered ,
and the Speafications, the pages of which are numbered ,
have been prepared by
("Design Architect").
The Architect administering the Construction Gontract (hereinafter, and elsewhere in the Contract Documents, referred to as the
"Architecf')is • .
D. A master set of said Drawings and Specifications, identifed by the parties hereto and by the Design Architect, the Architect, and
the Gontractor's Surety or Guarantor have been placed on file with the Federal Housing Commissioner (hereinafter referred to as the
"Commissioner"), and shall govern in all matters which arise with respect to such Drawings and Specifications.
E. Changes in the Drawings and Specifications or any terms of the Contract Document�, or orders for extra work, or changes by
altering or adding to the work, or which will change the design concept, may be effected only.with the prior written approva] of the
Owner's Lender (more pazticularly identified below and herinafter referred to as the ``Lender") and the Gommissioner and under such
conditions as either the Lender or the Commissioner may estabiish.
Article 2 —Time
A. The work to be performed under this Contract shall be commenced within days of this Agreement, and shail be compieted
by , 19 . The time by which�the work shall be completed may be extended in accordance with the terms
of the said AIA General Conditions only with the prior writter�. approval of the Commissioner.
B. The Contractor shall correct any defects due to faulty materiais or workmanship which appeaz within one year from the date of
substantial completion.
C. If the work is not substantially completed in accordance with the Drawings and Specifications, including any authorized changes,
by the date speci�ed above, or by such date to which the conuact time may be extended, the maximum sum stated in Article 3A(1)
belov� shall be reduced by $ , as liquidated damages, ior each day of delay until the date of substantiai completion. When
the owner cost certifies to HUD, the actual cost of interest, taxes, insurance, and mortgage insurance premiums, as approved by the
Commissioner, for the period from the scheduled date of completion through the date construction was actually compieted, shall be
determined. This cost shall be reduced by an amounr equal to the project's net operating income (as determined by the commissioner)
for the period upon which the aforementioned actual costs are based. If thissemainder is 7ess than the'liquidated damages determined'
above, it shall be substituted for the liquidated damages.
D. The date of substantial completion shall be the date the HUD Representative signs the final HUD Representative's Trip Report
provided that the trip report is subsequentiy endorsed by the Chief Architect.
Articie 3 — Contract Sum and Payments
A. (1) Subject to the provisions hereina;ter set out, the Owner shall pay to the Contractor for the performance of this Contract the
following items in casfi:
(a} The actual cost of construction as defined in Artiele 10 below; plus
(b) A fee of$
In no event, however, shall the total cash payable pursuant to this paragraph (1} exceed $
(2) In addition to any cash fee provided for in pazagraph (1) Owner shall pay to the Contractor by means other than cash, the
following:
(a) A note in the form prescribed by the Commissioner in the amount of$
(�)
Replaces Fortn FHA 2442A,which is obsolete aa9e i o+a PaUes Hl1D•92442A{4-84)
(H6 4330.1)
(3) If, upon completion, the Contractor shall have received cash payments in excess of (a) the actual cost of construction, plus
(b) the cash fee specified in paragraph (1), plus the additionai amount to be paid under the provisions of paragaph (2), all
such excess shall be refunded to the Owner.
�B. Each month after the commencement of wotk hereunder, the Contractor shall make a monthly request on Form FHA 244g
(HUD 92448) for payment by the Owner for work done during the preceding month. Each request for payment shail be filed at least
days before the date payment is desired. Subject to the approval of the Lender and the Commissioner, the Contractor shail be
entided to payment thereon in an amount equal to (I) the total value of classes of the work acceptably completed; plus (2) the value
of materials and equipment not incorporated in the work, but delivered to and suitably stored at the site; plus (3) the value of com-
ponents stored off-site in compliance with applicable HbJD requiremen[s; less{4) 10 percent holdback and less prior payments. The
"values" of(1), (2) and (3) shali be computed in accordance with the amounts assigned to c(asses of work in the "Contractor's
and/or Mortgagor's Cost Breakdown," attached hereto as Exhibit "A". The Contractor agrees that no materiaLs or equipment re-
quired by the Specii ications wili be purchased under a conditional sale contract or with the use of any security agreement or other
vendor's title or lien retention .instrument.
C. The balance due the Contractor hereunder shall be payable upon the expiration of 30 days after the work hereunder is fully com-
pleted, provided the fopowing have occurred.
(1) All work hereunder requiring inspection by municipal or other gavernmental authorities having jurisdiction has been in-
spected and approved by such authorities and by the cating or inspection organization, bureau, association or office having
jurisdiction;
(2) All certificates of occupancy, or other approvals, with respect to all units of the project have been issued by State or local
governmental authorities having jurisdiction; and
(3) Permission(s} To Occupy (Form FHA 2485)for all units of the project have been issued by the Commissioner.
D. With.its final application for payment by the Owner, the Contractor shall disclose, on a form prescribed by the Commissioner, all
unpaid obligations contracted in connection with the work performed under this Contract. The Gontractor agrees that within t5 days
following receipt of final payment, it will pay such obligations in cash and furnish satisfactory evidence of such payment to the
Owner.
Articie 4 — Receipts & Releases of Liens
The Owner may require the Contractor to attach to each request for payment its acknowledgement of payment and alt subcontractors'
and materialmen's acknowledgements of payment for work done and materials, equipment and fixtures furnished through the date
covered by the previous payment. Concurrently with the final payment, the Owner may require the Contractor to execute a waiver or
release of lien for all work performed and materiais furnished hereunder. and may require the Contractor to obtain similar waivers or
releases from all subconuactors and materialmen.
Article 5 — Requirements of Contractor
A. The Contractor shall furnish, at its own expense, all building and other permits, licenses, tools, equipment and temporary struc-
tures necessary for the construction of the project. The Contractor shali give all required notices and shall comply with aIi appiicable
codes, laws, ordinances, rules and regulations, and protective covenants, and with the current regulations of the National Board of
Fire Underwriters, wherever applicable. The Contractor further shall comply with the provisions of the Occuptatipnai Safety and
Health Act of 1970. The Contrac[or shal! immediately notify the Commissioner of the delivery of all permits, licenses, certificates of
inspection, certificates of occupancy, and any other such certificates and instruments required by law, regardless of to whom issued,
and shatl cause them to be dis>layed to the Commissioner upon his request.
B. If the Contractor observes .hat the Drawings and Specifications are at variance with any applicabie codes, laws, ordinances, rules
or regulations, or protective covenants;it shall promptly notify the Architect in writing, and any necessary changes shali be made as
p�ovided in this Contract for c'�anges in the Drawings and Specifications. If the Contractor performs any work knowing it to be can-
trary to such codes, taws, ordinances, rules or regulations, or protective covenants, without giving such notice to the Architect, it shall
bear ail costs arising therefrom.
C. Upon completion of construction, the Contractor shati furnish to the Owner a survey showing the location on the site of all im-
provetnents constructed thereon, and showing the location of all water, sewer, gas and electric lines and mains, and of all existing
utility easements. Such survey shall be prepared by a lieensed surveyor who shall cerufy that the work is installed and erected entirely
upon the land covered by the mortgage and within any building restriction tines on said land, and does not overhang or otherwise en-
croaeh upon any easement or right-of-way of others. In addition, the Contractor shall furnish additional surveys when required by the
'owner for any improvements, including strucutures and utilities, not theretofore located on a survey. The Contractor shall furnish
copies of such survey required hereunder for the Lender and the Commissioner.
D. The Contractor shail assume full responsibility for the maintenance of all landscaping which may be required by the Drawings and
Specifications until such time as both parties to this Gontract shali receive written notice from the Commissioner that such landscap-
ing has been �nally compieted. The Owner hereby agrees to make available to the Contractor, for such purpose, without cost to the
latter, such facilities as water, hose and sprinkler.
Ariicle 6 — Assurance of Gompletion
The Contractor shall furnish to the Owner assurance of completion of the work in the form of
Such assurance of completion shall run to the Owner and the Lender as obligees and shall contain a provisiun whereby the surety
agrees that any claim or right of action that either the Owner or the Lender might have thereunder may be assigned to the
Commissioner.
Paga 2 of 4 Pages
Article 7 — Waiver of Liea or Claim
The Contractor shall not file a mechanic's or materialman's lien or maintain any claim against the Owner's real estate or im- '
provements for or on account of any work done, labor performed or materials furnished under this Gontract, and shall include in
each subcontract a clause which shall impose this requirements on the subcontraetor.
Articie 8 — Right of Entry and Interpretation
A. The Lender and its agents or assigns and the Gommissioner and his agents shall, at all times during construction, have the right of
entry and free access to the project and the right to inspect all work done and materials, equipment and fixtures furnished, installed
or stored in and about the project. For such purpose, the Contractor shall furnish such enclosed working space as the Lender or
Commissioner may require and find acceptable as to location, size, accommodations and furnishings.
B. The Commissioner sha11 also have the right to interpret the Contract Documents and to determine compliance therewith.
Article 9 — Assigoments, Subcontracts aad Termination
A. This Contract shall not be assignable b}� either party without the prior written consent of the other party, the Lender and the
Commissioner, except that the Owner may assign the Contract, or any rights hereunder, to the Lender or the Commissioner.
B. The Contractor shall not subcontract all of the work to be performed hereunder without the prior written consent of the Owner,
the Lender and the Commissionex.
G. Upon cequest by the Owner, the Ixnder or the Commissioner, the Contractor shail disclose the names of ail persons with whom it
has contracted or will contract with respect to work to be done and materials and equipment to be furnished hereunder.
D. The Contractor understands that the work under this contract is to be financed by a building loan to be secwed by a mortgage
and insured by the Commissioner, and that the terms of said loan are set forth in a Buiiding Loan Agreement between the Owner as
Borrower and
as Lender.
The Contractor further understands that said Building Loan Agreement provides that, in the event of the failure of the Owner to per-
form its obligations to the Lender thereunder, the Lender may, as attorney-in-fact for the Owner, undertake the completion of the
project in accordance with this Contract. In the event the Lender elects not to undertake such completion, the Contractor's obliga-
tions under this contract shall terminate.
Article 10— Certification of Actual Cost
A. The "actual cost of�n;truction," as used in Article 3 above, shall include all items of cost and expense incurred by the Contrac-
tor in the performance of t)iis Contract, including costs and expenses of labor, materials for construction, equipment and fixtures,
field engineering, sales ta�ce�;, workmen's compensation insurance,social security, public liability insurance, job overhead and all other
expenses directly connected with construction, and including general overhead expenses, but excluding kick-backs, rebates or discounts
received or receivable in co►inection with the construction of the project; and excluding any return on or cost of the Contractor's
working capital, such return on or cost of working capital being a part of or to be paid from the Contractor's fee or profit.
B. The Contractor shall keep accurate records of account of the said actual cost of construction, and shall, upon den•and, make such
records and invoices, receipts, subcontracts and other information pertaining to the construction of the project availatle for inspection
by the Owner and the Commissioner.
C. R'ith its final application for payment, the Contractor shall furnish to the Owner a completed "Contractor's Certificate of Actual
Cost," which shall be accompanied and supported by an independent public accountant's certificate as to actua] cost (in form accep-
table to the Commissioner).
D. The Contractor shall include in all subcontracts, equipment leases and purchase orders a provision requiring the subcontractor,
equipment lessor or supplier to certify its costs incurred in connection with the project, in the event the Commissioner determines
there is an identity of interest between either the Owner or the Contractor and any such subcontractor, equipment lessor or supplier.
. � � . � . . � � � PaAe 3 of 4 Papes � . . . � � .
,
IN WITNESS WHEREOF, the parties to these presents have executed this contract in six (6) counterparts, each of which shall be
deemed an original, in the yeaz and day �rst above mentioned.
(Seal) �
Attest: Owner
W itness By ,
Witness Title
tSeal) Contractor
Witness By
Witness Tide
Note; 1f ConVactor or Owner is a corporation, Secretary shoutd attesf.
Pp�I of 1 Paq�s
^ �
!- M . . . . . � .. � . .
- ,
Building loan Agreement u.s.��,�,�„t�„�,,,,�9
and urban oevelopn,ent /�
Off�ce of Housing ��
Federal Housing Commissioner
� 'I'HLS AGREEMENT, made the day of 19
_ � b Y and betweea
,
a corporation organized and existing under the laws of
,
with an office and place of business in , County of
,
and State of
(hereinafter called the "Borrower"), and
. a corporation organized and
existing under the laws of , having an office and place of business
ln , Gounty of
and State of
(hereinafter cailed the "Lender").
WHEREAS, the Borrower as the owner in fee simpie of, or the owner of the leasehoid estate in, the property
described in Exhibit "A", attached hereto and made a pa:t hereof, has applied to the Lender for a mortgage loaa
of Dollars($
to sid the Borrower in the construction on said properiy of a project (identified as FHA Project No. )
in accordance'with Drawings and Specifications hereinafter referred to; and �
WHEREAS, the Borrower understands that tfie Lender has received a commitment from the Federal Housiag
Commissioner (hereinafter called the "Commissianer") for insurance of said loen under th,e provisions of the Na-
tional Housing Act and intends upon execution af the hereina€ter-mentioned I�Iote and Mortgage ta have said Note
endorsed for insurance by the Gommissioner.
NOW, THEREFORE, in consideration of the mutual promises hereinafter set out and of other valuable con-
siderations, the undersigned agree as follows:
(1) The Lender shall make and the Borrower shaiS take a building loan in the principal sum of
Dollars {$ ), to be advanced as hereinafter provided, and to bear interest from the date-af
each advance at the rate of ercent
be evidenced by a credit instrument (hereinafter calied the pNote")(dated the %) �r annum. Said loan shall'
day of
19 , shall be payable in montbly installments, and shall have a maturity
date of . Said Note shall be executed by the Borrower and payable to the Lendet,or
order, and shall be secured by a (hereinafter called the "i1�o a e"
date, on the property described in Exhibit "A", The Mortgage shall constitute a valid first lie�o said� �o�ven
and the improvements to be erected thereon, and the only lien thereon except for liens for taxes and ass ssme ts
not yet payable and other liens acceptahle to the Lender and the Commissioner.
(2) The Borrower shall complefe on the aforesaid property, by lq
cordance with Drawings and Specifications filed with the Commissioner and designated � a project in ac-
FHA Project No. dated
Such Drawings and &pecifications, which include "Generei Conditions of the Contract for Constructi�" (AIA Doc-
umtnt A201) and"Supplementary Conditions of the Contract for Construction" {FHA Form No. 2554), have beea
identified by the Borrower, the aesign Architect, the Architect administering the Construction Contract {hereia-
after called the ``Architect"), the Contractor and the Contsactor's Surety.
(3) Changes in the Drawings and Specifications, or chonges by altering or adding to the work contemplated,
or orders for extra work must have the prior written approval of the Architect. Ia addition, any such change or
Replaces FHA-2441,which is obsolete
HUD=92441 (5-84)
_ � _
or�er which will result in a net construction cost increase, or will change the design concept, or will resuit in a
net cumulative construction cost decrease of more than 2% of the contract amount may be effected only with the
prior written approvai of the Lender and the Commissioner and under such conditions as either the Lender or the
Commissioner may establish.
�,�''' (4) (a) The Bonower shall make monthly applications on FHA Form No. 2403 for advances af mortgage pto-
ceeds from the Lendec. Appiications for advances with respect to construction items sha11 be for amonnts equal
to (i) the total value of classes of the work acceptably completed; plus(ii) the value of materials and equipment
not incorponated in the work, but delivered to and suitably stored at the site; Iess (iii) 10 percent (holdback}and
less prior advances. The "values" of both (i) and (ii) shall be computed in accordance with the amounts assigned
to clesses of the wock in the '°Contrector's ar.d/or Mortgagor's Cost Breakdown", attached hereto as Exhibit "$",
and made a part hereof. Each application shall be filed at :esst days before the date the advance is de-
sired, and the Borrower shall be entitled theieort only to such amount as may be approved by the Lender and the
Commissioner.
(b) Upon completion of the improvements, including ali landscape requirements and off-site utilities and
streets, the Borrower shall furnish to the Lendec and the Commissioner satisfactory evidence that all work cequir-
ing inspection by municipal or other governmental au,thorities having jurisdiction has been duly inspected and ap-
pcoved by such authorities and by the rating or inspection organization, bureau, association or office having juris-
diction; and that all requisite certificates of occupancy and other approvals have been issued. The balanee due
the Borrower hereunder shall be payable at such time after completion as the commissioner authorizes the release
of the holdback. However, the Lender may withhoid finai payment until after tfie expiration of any period which
mechanics and materialmen may have for filing liens.
(cl The Borrower agrees that any funds required for the completion of the project over and above the pro-
ceeds of the loan which have been deposited with the Lender for that purpose shall be advanced by the Leader to
the Borrower prior to the advance of any proceeds of the loan.
(d) The Bonower covenants that it will hold in trust each advance hereunder for application to the items
for which such advance was requested and approved.
(e) The Borrouver agrees that the loan shall at ail times cemain in balance. The Lender shall, in accord-
ance with the provisions of this agreement, continue to advance to the Borrower funds out of the proceeds of the
loan as long• as the loan remains in balance and the Borrower is not in default hereunder or under the Note or
Mortgage. The loan shall be deemed to be in balance only when the undistributed proceeds of the loan (aftez pco-
vision for reserves, fees, expenses and other deposits requiced by the Lender ar the Commissioner) equal or exceed
the amount necessary (based on the Commissioner's`estimate of the cost of construction) to pay for all work com-
pleted and all materials delivered, for which payment has not been made, and the cost of completing consttuction
of the groject in accordance with the Drawings and Specifications.
(S) The Lender shall advance to the Borrower out of the funds referred toin(4Xc)above,or out of the proceeds
of the loan, amounts for application to the charges or items enumerated below, but oniy to the extent that such
charges have accrued, or that the Borrower is otherwise entitled to payment on account of such items.
(a) Interest during construction • • • • • • • • • • • • • • • • . $
(b) Reai estate taxes during construction . . . . . . . . . . $
(c) Insurance during construction. . . . . . . . . . . . . . . . $
(d} FHA mortgage insurance premium. . . . . . . . . . . . . $
(e) FHA examination fee. . . . . . . . . . . . . . . . . . . . . $
(fl Initial service charge . . . . . . . . . . . . .. . $
(g) Title and recording expense. . . . . . . . . . . . . . . . . �
(h) Inspection fee. . . . . . . . . . . . . . . . . . . . . . . . $
(i) . . . . . . . . . . . . . . . $
G) . . . . . . . . . . . . . . . . $
. , (k) . . . . . . . . . . . . . . . . $
,
.. _ 3 _
(6) The Barrower shali cause either this instrument or the construction contract under which the imgrovemrnts
are to be erected to be filed in the public records, if the effect thereof wiii be to relieve the mortgaged property
from mechanics' at►d materialmen's liens. Before any advance hereunder, the Lender may require the Borrower to
obtain from the contractor and all subcontractors and materialmen dealing directly with the principai contractor ac-
knowledgments of payment and releases o€ lien down to the date covered by the last advance, and concurrently with
the final payment for the entire project. Such acknowledgments and releases shall be in the form required by local
Iien laws and shail cover all work done, labor perEormed and materiais (including equipment and fixtures) furnished
for the project. '
(7) The Borrower shall, as a condition precedent to the first advance hereunder,fumish the Lender with a cer-
tiEied, current survey of the mortgaged property and a mortgagee's title po licy (or other evidence of titie) in form,
substance and amount satisfactory to the Lender and the Commissioner. Said policy (or other title evidence)shall
be extended so as to cover each and every advance of said Iaan atthe time of payment thereof and shall show no
mechanics' or materialmen's liens against the mortgaged property. The Borrower shail fumish duplicate originals
of said surveSF and title policy (or title evidence) for the Commissioner.
(Hj The Borrower agrees that said project shalt be constructed strictly in accordance with all appiicable ordi-
nances and statutes, and in accordance with the requirements of ali regulatory author:ties, and any rating or inspec-
tion organization, b�zreau, association or office having jurisdiction. The Borrower further agrees that said projecE
shall be constructed entirely on the aforesaid property and wili not encroach upon any easement or right-of-way, or
the land of others; and that the buildings when erected shaillbe whc.ly within the building restrietian lines, how-
ever established, and will not violate applicable use ar other restrictions contained in prior conveyances, zoning
ordinances or re;ulations. The Borrower shall f urnish frcn time to time such evidence with respect thereto as may
be required by the Lender ar the Gommissianer and, upon completion of construction, shall fumish a survey, cer-
fied by a registered surveyor, which shows the project to be entirely on said property and to be free from any such
vi ola tions.
(9) If the Bonower at any time prior to the compleiior. of the project abandons the same or ceases work thereon
for a period of more than 20 days or fails to complett.the erection of the project strietly in acaordance withthe
Drawings and Specifications, or makes changes in the Drawings and Specifications without first securing the
written approval required by paragraph 3 hereof, or othen�ise faiis to comply with the terms hereof,any such failure
shall be a defauit hereunder, and #he Lender, at its option, may terminate this agreement. If the Lender so elects
to terminate this agreement, it may use and apply any funds deposiied with it by the Borrower, regardless of the
purpose for which such funds were deposited, ir. such manner and for such purposes as the Commissioner may
prescribe. If the Lender elecis not to terminate this agreement, it may enter into possession of the premises and
perform any znd all work and labor necessary to complete the improvements substantially according to the Draw-
ings and Specirica;ions, and employ watchmen to protect the premises from ir.jury. All sums so expended by the
Lender shail be deemed to have been paid to the Borrower c�nd secured by the Mortgage. For this purpose, the
Borrower hereby constitutes and appoints the Lender it� true and lawful attorney-in-fact, with full power of sub.
stitution in the premises, to complete the project i7 the name of the borrower. The Borrower hereby empowers
said attomey as follows: (a) To use any funds of the Borrower, includi�g any balance which may be held in es-
crow and any funds which may remain unadvanced hereunder for the purpose of compieting the project in the manner
called for by the Drawings and Specifications; (b) to make such additions, changes 3nd corrections in the Drawings
and Specifications as shail be necessary or desirable to complete the project in substantially the manner contem-
plated by the Drawings and Specifications; (c) to employ such cantractors, subcontractors, agents, architects and
inspectors as shali be required for said purposes; (d) to pay, settle or compromise ali existing bills and c2aims
which may be liens against the mortgaged property, or as may be necessary or desirable for the completion'of ttie
ptoject, or for clearance of title; (e) to execute al? apglications and certificates in the name of the Borrower which
may be required by any of the contract documents; (� to prosecute arrd defend all actions or proceedings in con-
nection with the mortgaged premises or the construction of the project and to take such action and require sach
petformance as he deems necessary under the accepted guaranty of completion; and (g) to do �ny and every act
which the Borrower might do in its ow�n behalf. It is further underszood and a reed khat this '
g power of attomey,
which shall be deemed to b� a power coupled with an interest, cannot be revoked. The Borrower hereby assigns
and quitclaims to the Lender all sums unadvanced under the Mortgage and all sums due in escrow conditioned upon
the use of said sums for the completion of the project, such assignment to become effective oniy in case of the
Borrower's default.
(10) The Sorrower shall provide or cause to be provided workmen's compensation insurance and public liability
and other insurance required by applicable law or by the general conditions included in the Specifications. The
Borrower further agrees #o purchase and maintain fire insurance and extended coverage on the morfgaged property.
All such policies shall be issued by companies approved by the Lender and sha11 be in form and amounts satis-
factory to the Lender and the Commissioner. Such policies shall be endorsed with standard mortgagee clauses
making loss payable to the Lender or its assigns; and m�.y be endorsed to make loss ducing construction payable
to the Contractor, as interest may appear. The originals e; such policies sha11 be deposited with the Lender.
(11) The Lender and its agents and the Commissioner and his agents shatl, at all times during construction,
have the,right of eatry and free access to the project and the right to inspect all work done; and materials, equip-
ment and fixtures furnished, installed or stored in and about the project, and to inspect all books, subcontracts
and records of the Borrower,
(12) The Borrower sha11 execute and deTiver to the Lender, upon completion of the pcoject, a security agree-
ment and financing statenent, or other similar instrument, covering aIl property of any kind whatsoever purchased
with mortgage proceeds and conceming which there may be anq doubt as to such property's being subject to the
lien of the Mortgage under the laws of the state in which the project is situated.
(13) The Borrower shall furnish to the Lender assura:ice of completion of the project in the form speciEied in
the applicable FHA Regulations in effect on the date of this agreement. Such assurance of completion shall run
to the Lender as obligee and shall contain a provision g:anting to the Lender the authority to assign ail rights
thereunder to the Commissioner.
(14) (a) The Borrower understands that the wages to b�paid laborers and mechanics employed in the construc-
tion of the project are required by the provisions of Sectiort 212(a) of the National Housing'Act, as amended, to be
not less than che prevailing wage rates for corresponding c asses of la6orers and mechanics employed on construc-
tion of a similar character in the locality in which the wcrk is to be performed,as determined by the Secretary of
Labor with respect to this project: The Borrower hereby s�ates that it ttas read the aforesaid determination by the
Secretary of Labor and is fully familiar with the same.
(b) The Borrower shail, as a condition precedent to any advance hereunder, submit to the Lender{i) with
each appiication for advance prior to the final application, certifications, in form ap�roved by the Commissioner,
that all laborers and mechanics employed in the construction of the project whose work is covered by that or any
previous application and who have been paid in whole or in pact on account of said empl�yment, have been paid
at ra.es not less than the said prevailing wage rates; and (ii) with the final application for advance, certifications,
in form satisfactory to the Commissioner, that the project has been fully constructed in accordance with the pro-
visions of this agreement and that all laborers and mechanics employed in the construction of the completed project
have been paid not less than the said prevailing wage rates. The Secretary's prevailing wage determination shall
be construed to include every amendment to or modificatiAn of the dztermination which may be made prior to the
beginning of construction.
(c) The Borrower agrees that shouldany advances hereunderbe ineligible for insurance under the National
Housing Act by reason of (i) the nonpayment of the said prevailing wage rates, or (ii) violation of any of the ap-
plicable labor standards provisions of the Regulations of the Secretary of Labor, the Lender may withhold from the
Borrower all payments or advances payable to the Borrower hereunder until the Borrowar establishes to the satis-
faction of the Commissionec that ali laborers and mechanics or other persons employed in the construction of the
project have been paid said prevailing wage rates and that such violation of the said Labot Standacds provisions
ao langer exists. The written statement of any officer of the Federal Housing Administration oc authorized agtnt
of the Commissioner declining to insure any advance of funds hereunder by reason of such nonpayment or violation
shall be deemed conclusive pcoof that such advances are ineligible for moctgage insurance.
(d) The Borrower shall insert the labor standards provisions of the aforesaid Supplementary Conditions
of the Contract for Construction in aay contract made by him foc the construction of the project� or any part thereof,
and shall require the Contractor to insert similar provisions in each subcontract relating to the construction of the
project.
(15) The LPnder and the Sorrower agree that the mortgage loan shall be reduced by sny amount required by the
Agreement and Certification (FHA Form No. ) between the parties hereto and the Commissioner,
which agreement is incorporated herein by reference to the same extent as if set forth herein at length.
(16) The Borrower shall furnish such records, papers and �iocuments relating to the project as the Lender or
the Commissioner may reasonably require from time to time.
(17) The Borrow:er shall not transfer, assign or pledge any right or interest in, or title to, any funds deposited
by the Borrower with the Lender, or reserved by the Lender for the Bortower, without the prior written approval of
the Lender aad the Commissioner.
{�g) As used in this instrument, the term "Lender" ahell be deemed to include any person to whom the Note
and Martgage referced to above shall be assig�ed with the l�owkdge and consent of the Commissioner. This in-
strument shall be binding upon the parties hereto aad their respective successors and assigns.
� FHA�FORM N0.1AS2 - . � � � � � � � � .. � � �
R..�.w�1 10...,..�y llAH . . . . . .
I'rujt•t:l No.
U.S.QEPARTMENT OF HOUS�NG AND URBAN DEVEIOPMENT
FEDERAL MOUSING ADMINISTRATION
PERFORMANCE BOND•DUAL OBLIGEE
Knou� Ril Mcre IIy 7hcsc prestnts, THAT WE,
---------- —. _.._of
------ as Principal, (hereinafter called the Principal)
and
-- --– ..._.....------- ,.a as Surety,
(hereinaftFr caUed the Surety) are held snd Cxrmiy bound unto___
O�ner, (hereinaEter called the "Owner-0bligee")
and unto . _ _ ______, , its successors and assigns,
of.�____ (hereinafter called the "Leadcr")
as their respective interests may appear, as OB[.ICEES, in the sum of
--- ---– Dolla�s (t }, lawfui money of the
L�nited States nf America, for the payment of which Principal and Surety bind themaelves, theirheirs,ez-
ecutors, administretors, successors and assigns, jointly and sevenlly, 6rmly by tbese preaents.
tiVHEkEAS, Rrincipai has entered into a Constnrction Contract dated with
Owner-0LliKrr fur the r„n,tructinn ot a tlousinK Project designated as
a copy of which Gonstrvction Contract is by reference made a pan hereof; and
WHEREAS,C.ender has agreed W lend to Owner-0bligee a sum of mooey co be aecured by e mortgage
on said project and to be used in making payments under said Contract, and desires protection aa its in-
te-r.sts may appear, in event of default by Principal under said Contract, said protection tobe subject to
the performance hy the Obliqees, or either of them, oi the obligatioas to Pripcipal in connection with
said Contract.
NOW, THEREFORE, the conditioa of this obligation is sucb that, if Principal ahall well'and t�uly
perfocm aU the uodertekings,cavenants, terms, conditin�e and egreemects of said Contract on ita part, ,
aod fully indemnify and save harmless Obligees from all cost and damage which they may suffer by rca-
son of tailure so to do, aod fullp reimburse and repay Obligees all ouflay acd expenae which Obii-
gees may incur in making good any such default, then this obligation shali be nuil and void;pthcrwiae
it shall remain in full force and elfect.
The foregoing, 6owever, is subject to the following further proviaions:
1. The Surety shall not be liable under t6is Bond to the Obligees, or either vf them,unleaa the'atid -
Obiigeea, or either of them; s6a11 make payments to the Principal stricdy in accordaace with the tdma
of aaid Contract as to payments, and s6all perfocm ail tbe ot6er obligations to be performed under aaid
Contract at t6e time aed in the maoner therein aet fotth.
2. Surety agrees that any right of action that either oE Obligees herein might have under this bond
may be assigned to the Secretary ot Housing and Urban 0evelopmeat, acting by and through the Federa►
liousing Commissioner, and that such assignment wi1) in no manner invalidate or qualify this instrument.
3. No auit, acpon, or proceediag by reaaon of aay default w6atever shsll be brought oo thia bond
after two yeara from t6e dsy on which the final paymeot under the Conenct falls dua
4. The ptior Mritten approval of Surety ah�ll be required with regard to anp chaogea or alterations
iu s�id Gontr�ct�6erc the coat thereof, added to pdor chaages oe altentioas, cauaes the aggregace cost
of all changes aad alterations to ezceed l0 perceat of t6e origind Contrsct price; but, except as w the
foeegoing, aoy alterationa vr6icb may be made in the terma of t6e Coatract, or in the work co be done
uader it, or the giving by the Obiigees of�ny extension of time fer the performaece of the Coacract, or
any other forbtaesnce oa the part of eit6er t6e Obligeea or Principal to the ocher, shall not ia any way
celease Surery or Principal of the obiigatiocs of this instrumeat, notice to Surety ot any auck altenaon,
eztension, or forebeannce being hereby waived.
5. The aggregace liabiliry of$urety 6ereunda to t6e Obligeea or cheir assigoa ia limited to tbe
penal anm above atated, and Suretr, upon malciag aoy payment 6ereunder, ahall be aubrogued to, and
aball i�e entided w w aseigameat of, all rigbts of the pa�+ce, eithu agaiasi PRa=ipal or egeinat aay
ot6er partr liable to the payee ie connectiou +►ith t6e loas whic6 ia t6e subject of tbe paymeut.
SIGNED sod SEALED chi� day of , 19
Ria�sss •s co Pri�cip�l—
(SBAL)
(Pri�eipal)
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FHA FORM N0.2151•A � � \ . � . � � � ' . . . �� .
Nroject No.
�� . . � U.S.OEPARTMENTOF HOUSING ANO URBAN DEVELOPMENT . � . � ' � �
� � � . FEDER�I HOUSING ADMINISTR�TION � � . � � �
PAVMENT BOND
l'I'tllti RQNp IS ISSUF;D SIMUI,I'ANF;OtISf.l'wIT1I PE;RF'nRMANGh; t30NU (N F'AVOR �I•''1'IIF:I
(QNNF:R (;OND11'IONw:�(1N'I'llh:F'1q.L AND i•'AI'1'lIM'iil.PF:NI�OHMANC.t:Of.'1'iiF:(:ON'I'ItA(:'i'1
hnow All M�n 13y These I>rex�nts, 'I'l1AT Wf:,
ot
as Principal, (hereinafter called the NrincipaU .
and a as)urtty,'
(hereinafter called the Surety) are held and firmly bound unt� -
as Obligee,(hereinafter called the "Owner"), for the use
and benel'it of claimants as hPreinafter defined, in the sum of
Uollars (F ), lawful money of the United
States o( �lmerica, for the payment of which F�rincipal and Surety bind themselves, their heirs, execu-
tors, administratars, successors and assigns, jointly and severalJy, firmly by these presents.
WIiEREAS, Principal has entered into a Construction Cont�act dated
with Owner Eor the construction of a Housing Project designated as
a copy o( which Gonstruction Contracr is by re(erence made a part hereof; and is hereinafter referred
to as the Contract.
NOW, THEREFORE, TNE CONDITIONS 0�' THIS OBLIGATION is such that, if Principal shall
promptiy make payme�t to atl claimants as hereinafter defined, far all labor and material used or rea-
sonably required for use in the performance of the Gontract, then this obligation shall be void; other-
wise it shaU remain in full force and effect, subject, however, to the following conditions: _
I. A claimant is defined as one having a direct contract with the Principal or with a subcontraetor
of the Principal for labor, material, or both, used or reasonably required for use in the performance of
the contract, labor and material being construed to include that part of water, gas, power, light, heat,
oil, gasoline, telephone service or rental oi equipment directly applica6le to the Gontract.
2. The above named Principal and Surety hereby jointly and severally agree with the Owner that
every claimant as harein defined, who has not been paid in fulf before the expiration of a period oF
ninety (90) days after the date on which the last of such claimant's work or labor was done or per
formed, or materials were furnished by such claimant, may sue on this bond for the use of such claim-
ant, prosecute the suit ro final judgment for such sum or sums as may be josdy due claimant, and tiave
execution rhereon. The Owner shatl not be�liable for the payment of any costs or expenses of any such
suit.
3. No suit or action shal! bexommenced hereunder by any claimant:
a) Unless claimant, other than one having direct contract with the Principal, shall have given written
notice to any two o(the following: The Pri�cipal, the Owner, or the Surety above named, within ninety
(90) days aiter such claimant did or performed the last oF the work or iabor, or furnished the last oE the
materials Eor which said claim is made, stating with substantial accuracy the amount claimed and the
name o( the party to whom the materials were iurnished, or For whom the work or labor was done or per-
formed. Such notice shall be served by mailing the same 6y registe�ed mail or certified mail, postage
prepaid, in an envelope addressed to the Principal, Owner ar Surety, at any place where an ofiice is
regularly maintained for the transaction of business, or served in any manner in which lega! process
may be served in the state in which the aforesaid project is located, save that such service need not
be made by a public officer.
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b) After the expiration of one �1) year tollowing the date on which Principal ceased work on said Con-
tract, it being understood, however, that if any limitation embodied in this bond is p�ohibited by any
law� controlling the construction hereof such limitation shall be deemed to be amended so as to be equal
to the minimum period of limitation permitted by such law. .
c) Other than in a state court of competent jurisdiction in and for the county or other political sub-
division of the state in which the project, or any part thereof, is situated, or in the United States Uis•
trict Court for the district in which the project, or any part thereof, is situated,and not elsewhere.
4. The amount of this bond shall be reduced by and to t6e extent of any payment or payments made
in good faith hereunder, inclusive o[ the payment by Surety of inechartics' liens which may be filed of
record against said improvement, whether or not claim for the amount of such lien be presented under
and against this bond.
SIGNEU and SEALEU this dey af 19
N'itness as ro Principal—
(SEAL1
(PrincipalJ'
By
rsur�lY�
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