This amendment waives the bond requirement stipulated in the Donation of Property for Affordable Housing agreement between the Florida Real Estate Foundation (FREF) and the City of Orlando for the Heroes’ Commons at Jefferson Park project that was approved by City Council on March 5, 2014. The donation agreement currently stipulates that FREF will require any builder contracted to construct a home to carry a performance bond and a labor and material payment bond sufficient to cover 100% of the costs to complete their project.  The builders volunteering to construct the homes in the project have had a difficult time securing such a bond.  Most companies do not bond projects which include just one single family home whose value will not exceed $150,000.

The Agreement contains several other conditions to ensure that each home, and the project as a whole, is developed as well as remedies in case of default. For instance, prior to commencing construction of each home, the FREF must provide financial statements to the Housing and Community Development Director documenting sufficient cash on-hand to complete the home.  Staff believes that this condition, along with the other stipulations contained in the Agreement, adequately provides the safeguards necessary to protect the City’s investment of the donated lots and recommends the bond requirement be waived.