rebuilding union beach project guide

Project GuideREBUILDING UNION BEACH

October 1, 2015

THE PROJECT Introduction 2 Rebuilding Union Beach 4 Hurricane Sandy Impact 5 Executive Summary 6 Project Funding 7 Legal Considerations 7 Homeowner Selection 9 Homeowner Contributions 10 Setting Expectations 11 Municipal Regulatory Process 11 Insurance & Foundation Design 12 Demolition 13

TABLE OF CONTENTS

THE HOMES 15 Modular Construction 16 Builder Selection Criteria 17 Modular Delivery & Installation 19 Traditional Onsite Construction 20 Resilient Features 20 Sustainable Features 20 Energy-Efficient Features 21 Site & Landscape Design 23 Design Features 24 Material & Color Options 25 Accessibility 26 HVAC / Plumbing / Electric 26 Solar Power 27 Utilities 27 Communications & Technology 28 Home Models

APPENDIX45 Local Relief Efforts46 Staff & Information Resources 47 Timeline49 Home Construction Milestones50 Supporters51 Budget52 Homeowner Grant Resources53 Contractor Requirements57 Utility Check List58 Legal Agreements

INTRODUCTION The morning after Hurricane Sandy struck New Jersey, the Union Beach Borough Hall was filled with residents standing shoulder-to-shoulder. They were cold, hungry and homeless. Our normal 9-to-5 became 12-hour days, 7 days a week. The phone never stopped ringing and I will never forget the endless line of people waiting at my office door, hopeless and in tears.

Overnight, our small town became a rapid response hub for the entire Raritan Bayshore area. Union Beach accepted help from organizations and volunteers from around the country. The Borough Hall Senior Center was transformed into a resource center providing everything from food and clothing to mold remediation and demolition services.

After the initial shock of the enormity of the devastation, I saw the opportunity to build a sustainable and cost-effective housing solution for the community. The result is Rebuilding Union Beach, a modular home demonstration project. This initiative would not have been possible without my team members, Brenda Zimmerman, Jovia Nierenberg, Kevin Watson, and Scott Lauer. This Rebuilding Union Beach Project Guide describes the promise and challenges inherent in this type of project. We hope that in sharing our experience we can inform and encourage the implementation of other post-storm housing models.

Thanks to the time and dedication of countless organizations and individuals Union Beach is well on its way to recovery. Rebuilding Union Beach is proud to have played a part in the effort.

Jennifer MaierFounder, Rebuilding Union BeachBorough Administrator, 2011-2014RebuildingUnionBeach.org

2

http://www.RebuildingUnionBeach.org


3

UNION BEACH, NEW JERSEY

REBUILDING UNION BEACH

UNION BEACH, NJ Union Beach is a small, low-to-moderate-income community located on the Raritan Bay in New Jersey. More than a third of the residences were built as single-story summer bungalows in the early 1900s. Union Beach is a tight-knit, multi-generational community, and many families live paycheck to paycheck. More than 50% of the Borough is classi-fied as a Community Development Block Grant area based upon a low-income threshold. This enables federal funds to be applied to community redevelop-ment, blight reduction and recruitment of commercial investment.● Area: 1.889 square miles● Pre-storm opulation: 6,245● Average household income: $61,347 (2010 Census Bureau Survey)

4

Rebuilding Union Beach is a demonstration project to design, purchase, and install modular homes for 12 families in Union Beach, NJ, whose homes were destroyed by Hurricane Sandy. Rebuilding Union Beach also built two homes onsite using traditional construction methods, enabling the comparison of modular and tradi-tional construction.

Project Goals:● To create an affordable model for families who lost their homes in Hurricane Sandy to return to new, storm-resilient, sustainable homes.● To maximize funds from government programs, insurance proceeds, and other recovery funds.● To inform the rebuilding efforts of other shore towns affected by Hurricane Sandy.Rebuilding Union Beach has received the following awards in recognition of its resilient, cost-effective and sustainably designed homes:

● American Planning Association NJ Award

● NJ Hero Award

● NJ State Assembly Resolution for Sandy Recovery Efforts

● PlanSmart NJ Award

New York CityJersey

City

Newark

Staten Island

New Jersey

Brooklyn

Union Beach, NJ

Raritan Bay

85% of the Borough’s 2,100 homes flooded with at least two feet of water

More than 15% of the housing stock demolished

1,000 substantial damage letters issued indicating damage value of more than 51% of the assessed value

112 homes deemed safety hazards

50 homes completely destroyed

HURRICANE SANDY IMPACT

5

6

EXECUTIVE SUMMARYThe Rebuilding Union Beach demonstration project designed, purchased, and built 14 homes for families in Union Beach whose homes were destroyed by Hurricane Sandy. The primary goal was to build back better by creating an affordable model home that was both storm-resilient and sustainable. The project has proven the potential of modular construction to provide permanent post-storm housing at scale in order to help communities rebuild and recover in the aftermath of a natural disaster. This Guide demonstrates how we built high-quality, resilient, and cost-effective housing that enhanced our community; it also reveals what we learned in the process.

Both modular construction and traditional on-site construction were used in our project, and their respective benefits and challenges are documented in this guide. The post-storm construction boom in New Jersey caused increased costs for labor and materials, due to a lack of available and experienced labor and shortages in supplies, making on-site construction difficult in terms of both logistics and expenses. The homes constructed on-site were more costly and prone to extended delays, and construc-tion quality issues which were further compounded by inclement weather. Modular home construction was chosen for the majority of homes because it of-fered a potentially faster and more cost-effective way to rebuild than traditional on-site construction. While modular construction was slightly faster and more cost-effective with a lower price per square foot, the savings was somewhat offset by expensive truck delivery costs and local crane operations. Still, the modular homes were ultimately built faster, cost less, and had fewer issues than those homes built on-site.

The aftermath of Hurricane Katrina and Hurricane Sandy has shown the challenges of implementing effective post-storm housing solutions. A clear vision from the outset is critical, as are realistic funding

expectations, staff members with the right skillsets, and organization partners to provide critical sup-port services. The shifting landscape of post-storm funding and housing assistance was the first plan-ning hurdle we faced. FEMA reimbursement rules and flood mapping fluctuated for months, and New Jersey’s Reconstruction Program (RREM) changed substantially over time. The lack of certainty made it difficult to design a strong program that would best leverage resources. In response, Rebuilding Union Beach evolved into a demonstration project for families both with and without insurance proceeds or other resources. The average grant issued by rebuilding Union Beach is similar to that offered by the RREM Program.

Our team spent a significant amount of time and effort addressing the social, medical, and financial issues of participating families. After losing their homes, many families had to pay for temporary accommodations in addition to the existing mortgage and taxes on the homes they lost in the storm. We worked with case managers from partner organiza-tions to help families navigate the labyrinth of insur-ance claims, grant assistance programs, and other regulations and requirements. This support helped families focus on rebuilding and financial planning in order to avoid foreclosures and other complications. We also spent considerable time looking for ways to leverage available funding and pro bono resources.

Rebuilding Union Beach worked with architects and many wonderful partners to build the most resilient, sustainable, cost-effective, and beautiful homes pos-sible. We are gratified that 14 families have returned home and that other regional housing providers have developed their own programs based on this model. We hope that you will find this guide both informative and inspiring.

Visit www.RebuildingUnionBeach.org for additional information.

www.RebuildingUnionBeach.org

Welcome Home event, June 18, 2014

PROJECT FUNDINGMajor grants to support the project have been awarded by The Hurricane Sandy New Jersey Relief Fund, chaired by New Jersey First Lady Mary Pat Christie, and the Robin Hood Relief Fund. The Princeton Area Community Foundation served as the fiscal sponsor. Many other generous non-profit organizations, companies, faith-based groups, and volunteers contributed to the project. Supporters of Rebuilding Union Beach are recognized on page 50.

LEGAL CONSIDERATIONSGiven the complexity of the Rebuilding Union Beach project, it was important for all parties to have legal documents outlining and explaining the roles, responsibilities, and terms of the grants. Two law firms drafted these agreements and generously provided probono representation for participating homeowners and Rebuilding Union Beach. Copies of these legal documents may be found on page 58:

● Homeowner/Municipality Agreement: The agreement between Rebuilding Union Beach and the homeowner documenting the grant award for the new home.

● Homeowner/Manufacturer/Contractor Agreement: The agreement between the new home manufacturer or builder and the homeowner to build the new home.

● Homeowner Escrow Agreement: The agreement establishing an escrow for any insurance proceeds being contributed to a family’s new home.

In addition, the project team signed grant agreements with funders and the fiscal agent. The Borough of Union Beach provided liability insurance coverage for project team staff.

7

8

WHAT WE LEARNED ● Clear Goals & Skilled Staff: It’s critical to establish project goals and ensure that all relevant skillsets are covered by staff, volunteers and/or partners. These may include case management, legal counsel, insurance expertise, financial analysis, architecture, design, engineering, construction management, data management, fundraising, and communications.

● 501c3 Partnership: Partner with a 501c3 organization immediately after a natural disaster to accept donations and disburse funds. As a municipality, Union Beach could not accept charitable grants and was hampered by municipal procurement rules in hiring staff, contracting services, and purchasing basic recovery needs. A trust fund set up by local governments can only be used for government-owned property and not for individual residents. Therefore it was critical to partner with a charitable 501c3 organization that could serve as the project’s fiscal agent.

● Clear Communications With Funders: Understand the mission and goals of the funders, including what they will and will not fund.

● Contract Preparation: Preparing contracts for a project with multiple partners is a time consuming and lengthy process which took four months for Rebuilding Union Beach to complete. It’s critical to provide ample time for contract drafting, review, and execution, and to start the process as early as possible. The Contractor Agreement should require the following: ● Retain of at least 25% of the contract value from the contractor until completion of the project and an additional 2% until the end of the 12-month warranty period.● A set of detailed construction drawings prior to construction, not just schematic drawings.

● A detailed schedule from the manufacturer and/or contractor upon contract signing.

HOMEOWNER SELECTION Despite the tremendous need for housing in the after-math of Hurricane Sandy it was challenging to identify financially qualified families who were interested in participating in Rebuilding Union Beach. Although 191 homeowners submitted an initial application, only 14 (7%) ultimately participated in the program. Applicants dropped out of the process for a variety of reasons. Many did not meet the eligibility requirements, some foreclosed or sold their vacant lot, and others pursued programs such as the State-funded RREM or Hab-itat for Humanity. The selection process involed the following steps:1. Initial application: (191 applicants)2. Financial review with a project team member: Information such as income and insurance proceeds was collected. (159 applicants)3. Independent Selection Committee review: The Mayor of Union Beach appointed the committee to review applications and supplemental financials to determine need for rebuilding assistance, ability to continue to make debt service payments on existing mortgages, income-to-debt ratio, and credit history. Each family was assigned a number so applications

were reviewed without revealing names or addresses. (159 applicants reviewed and 69 applicants approved)4. Secondary financial review: Qualified applicants provided additional financial documentation.Ultimately, 34 applicants were offered a place in the program and 14 participated. Qualified homeowners were matched to a model home based on the size of their family and the size and configuration of the land where their homes previously stood.

Eligibility requirements for participation:● Primary residency and home ownership in Union Beach at the time of the storm.● At or below 175% of Area Median Income.● A funding gap between the cost of rebuilding a new home and benefits received.● No existing contract with a state-managed program or contractor.● An expectation to remain in the home for at least 3 years.● Sufficiency of income and/or other resources to pay projected mortgage costs, property taxes, insurance, other debt service payments, and home and living expenses.● Manageable debt:mortgage ratio.

9

“

”

As a family, we always dreamed of some day owning a home. After years of hard work and sacrifice, our dream came true. But when Hurricane Sandy hit in fall of 2012 we lost everything.

—Kathy M.

HOMEOWNER CONTRIBUTIONS At the time of the storm, many Union Beach families were under-insured or uninsured. Some families owned their homes outright and did not carry the flood insurance which is a requirement of mortgage lenders for properties in flood zones. The cost of complying with new building standards, elevating homes, and participating in the National Flood Insurance Program (NFIP) was prohibitive for many. The burden of paying rent for temporary housing while continuing to pay the mortgage and taxes on the destroyed home and replacing personal posses-sions caused a significant increase in foreclosures.

Rebuilding Union Beach participants who had insurance were required to contribute any insurance proceeds and other awards they received, includ-ing the Increased Cost of Compliance (ICC) funds earmarked to rebuild the home’s foundation. (ICC Funds are paid through the NFIP and distributed by the homeowner’s insurers.) Homeowners were required to provide a signed contract between home-owner and contractor, and drawings approved by the local authorities. In some cases, 50% of the $30,000 maximum ICC funds were provided upfront. In most cases, homes had to be substantially completed prior to distribution of funds. Non-profit organizations in New Jersey offered probono legal services to support insurance claims and address foreclosure concerns.

Despite the availability of private and public grants, many families faced a gap between what they could afford and the actual cost of rebuilding. The Rebuild-ing Union Beach project provided funding to address this challenge. The average home rebuilding cost was $220,000 and on average homeowners received a $150,000 grant award and contributed $70,000. Homeowner contributions were typically a combina-tion of FEMA Individual Household Assistance funds, NFIP and homeowner insurance, and ICC funds. Organizations and individuals who provided grants and probono support are listed on page 50.

WHAT WE LEARNED ● Be prepared to assist homeowners with insurance claims. Each insurance underwriter has specific parameters for releasing payments and reinstating policies. This may require assistance from legal counsel and require a release from the resident. Contracts and surveys are required by mortgage lenders to release insurance proceeds.

● Allow ample lead-time to acquire insurance proceeds. Even with diligent follow-up and outside assistance, It took homeowners more than three months to obtain ICC grants once the surveyor confirmed the foundation was completed.

● Lawyers or case managers should obtain releases from homeowners to contact lenders and insurers directly on their behalf. This helps expedite the release of funds.

● Advise the insurance company and mortgage company to release these funds directly to the project if possible. This avoids any risk that funds released directly to the homeowner are not contributed to the project. Some lien-holders issued double-endorsed checks, which caused delays.

● Ensure homeowners are protected during construction by naming them as additional insured on manufacturer’s and contractor’s liability policies. Also ensure that the homeowner policy is in place on or by the date required under the contract or builders’ risk policy. Moreover, we recommend safe-guarding homes during construction with builders’ risk policies or contractual protections from credit-worthy companies.

● Advise residents to apply for Homeowners and Flood Insurance policies prior to the completion of the home. The policies should take effect on the handover date specified in the contracts with the manufacturer or contractor.

● Advise homeowners to work with the local tax assessor to determine potential increased property taxes for new, and in some cases larger, homes. 10

11

Realistic project outcomes and expectations should be communicated to homeowners clearly from the outset of the program. Construction setbacks and delays may cause emotional reactions. Be aware of, and sensitive to homeowners emotional states and post-storm trauma. Continued case management is critical to ensure a smooth transition from temporary housing to a permanent home.

WHAT WE LEARNED ● Construction delays should be expected. The original goal was to build homes in 90 days post-contract signing. It actually took an average of 6 months for homeowners to move into their new home. Advise homeowners in writing prior to contract signing that construction delays may occur due to inclement weather, force majeure, legal review, permit, and inspection delays, availability of sub-contractors and other unforeseen factors. Point out that even when construction is substantially complete, there will likely be minor items for the contractor to address during the warranty period.● Maintain frequent contact with the homeowners to provide updates and address issues.● Clearly describe homeowner responsibilities during the process for maintaining or initiating insurance policies and tax and mortgage commi- ments, contacting utilities to make connections, and providing financial and other updates.● Do not commit to anything that is not funded.● Be cautious about providing schedule commi- ments and always note that issues may arise that impact the construction schedule.● Homeowner finances and health may change over time. Be aware of their needs and challenges.● Listen to homeowners and identify social service resources to make appropriate referrals. Staff should not try to work outside their areas of expertise.

The construction process in Union Beach was aided significantly through the support of the Borough’s Building Department staff. Since Hurricane Sandy, more than 2,000 construction permits have been issued, an 820% increase over prior years. The Borough’s expeditious processing of permits and code advice helped move Rebuilding Union Beach forward.

In order to support the selection process for Rebuilding Union Beach and other Borough grants access was obtained to the Coordinated Assistance Network (CAN) network. CAN.org is operated by a consortium of national volunteer and disaster relief organizations. In addition, an internal database for long-term recovery planning was developed. Confidentiality protocols often prevent disaster case managers from coordinating with other agencies. Some national nonprofits used Regional Cost of Living Surveys to determine income levels for assis-tance and adjusted their protocol to accommodate the higher-than-average cost of living in New Jersey.

WHAT WE LEARNED ● Maintain an official state of emergency declaration in the Borough to expedite municipal decision-making.

● Develop and maintain relationships with local, regional, state and federal agencies. This helps to identify solutions, cut through red tape, and monitor changes to regulations and policy.

● Attend community forums and work with local Code Officials to stay abreast of changing regulations as post-storm procedures develop.

● Obtain permit checklists from construction officials and work with contractors and utility companies to submit completed permit packets on the first attempt to minimize delays.

SETTING EXPECTATIONS MUNICIPAL REGULATORY PROCESS

Driving timber piles

12

Since standard homeowners insurance doesn’t cover flooding, it’s important to have flood protection from hurricanes, heavy rains, and tropical storms. The National Flood Insurance Program (NFIP) provides a means for property owners to financially protect themselves by offering flood insurance to homeowners, renters, and business owners. Communities participating in the NFIP agree to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding.

Structural considerations for foundation design included FEMA standards, local building code requirements, and cost. Rebuilding Union Beach homes are located in the FEMA-designated A-Zone (which are subject to inundation by 1 percent annual chance flood events.) The homes incorporate some V-Zone standards such as piles instead of block foundations. The open arrangement of the piles allows for objects to pass between piles freely during a storm. We considered several foundation types including timber piles, concrete piles, concrete block foundation walls, and poured concrete foun-dation walls. Timber piles were selected as the most cost-effective option. The costs of different founda-tion types may vary depending on avail-able labor, materials, and equipment.

The local ordinance required that the finished floor height was two feet above FEMA requirements. In order to enhance safety and qualify homeowners for lower insurance premiums,

we built homes one foot higher than required by code. The cost of foundation work was reimbursed by the NFIP Increased Cost of Compliance Grant.

The installation of the piles required careful plan-ning. Soil conditions varied throughout the Borough, and samples were taken in multiple locations to determine the estimated maximum length of piles. Pile tests by a licensed engineer were performed on each pile at each site to determine the correct depth of the piles. Before-and-after photos of foundations of neighboring homes were taken, and seismic testing was performed adjacent to each neighboring foundation to protect against any potential claims of damage due to pile driving.

WHAT WE LEARNED ● Wood cross bracing was bolted to piles on some homes as needed to mitigate lateral movement of the homes resulting from wind load.

● Planting and trellising was used to cover bracing.

● Anti-vibration pads were recommended to those homeowners who felt vibration in the floor while using washing machines and dryers.

● Inclement weather may cause delays.

INSURANCE AND FOUNDATION DESIGN

13

DEMOLITIONResidential demolition began on December 6, 2012 by Burners Without Borders, a California-based non-profit. They demolished approximately 300 homes with the help of other organizations which followed their protocol. All applicable codes and inspection processes were followed. The demolition program expedited the recovery process, enabling residents to use their limited insurance funds for re-building their homes rather than demolition. This pro-gram benefited the community by removing a hazard to public health and safety, lessening future blight, making it possible for people to rebuild, and facilitat-ing the recovery of community property values.

There are stringent rules governing removal and demolition of debris and asbestos. These became more restrictive during the recovery process. Struc-tures that do not have obvious damage upon initial inspection may be subject to more in-depth engi-neering and environmental review which may result in project delays and increased costs.

WHAT WE LEARNED● Many homes had asbestos, which had to be abated prior to demolition of the home.

● Many homes had significant mold growth. Detailed protocols were followed to treat the mold and prevent demolition workers from becoming ill.

● The volunteer demolition companies required homeowners to sign a hold harmless agreement.

● Heavy equipment had to be moved by trailer from site to site to protect roads from damage.

● The volunteer fire company helped hose down the structures during demolition in order to reduce the spread of dust and debris.

● During demolition, volunteers need to be sensitive to homeowner’s loss and help them, if possible, to retrieve some personal effects.

● Volunteers moved most of the debris to the curb, enabling FEMA to reimburse the borough for debris removal.

● Visit FEMA.gov for further information.

Many Union Beach homes were built originally as summer bungelows in the early and mid-20th century. Some were not tied securely to their foundations or insulated to withstand flooding.

“ ”It was a sad day but also one filled with hope.

—Kathy M.

www.FEMA.gov

14

DEMOLITION: MAY 2013

Despite outward appearances, this house suffered foundation damage and significant mold growth. It took 28 minutes to demolish.

Wood stud wall panels are attached to wood floor systems in the modular home production facility.

MODULAR CONSTRUCTIONModular, panelized, and traditional onsite construc-tion methods were considered along with a variety of structural materials including wood, steel frame, aluminum, and concrete. Modular home construction was chosen for the first 12 homes as a potentially faster and more cost-effective way to rebuild. Modu-lar homes are constructed in accordance with state and local building codes in the controlled environ-ment of a production facility, transported in one or more sections, and secured to a permanent struc-tural foundation. Rebuilding Union Beach modular homes took 3-6 weeks to build in the production facility depending on the workload. That time frame does not include delivery, installation and finishing.

Advantages of building in an enclosed facility in-clude fewer weather delays, improved supervision, and effective re-use of excess building materials. The foundation may be constructed on-site while the house is built in the facility. Building inspections are performed in the facility, resulting in fewer inspections required at the site. Additionally, the fram-ing of a modular home requires a more rigid design than traditional construction in order to safely transport the structure.

Modular construction may have a lower price per square foot than traditional stick-built homes due to the bulk mate-rial purchasing and reduced theft and vandalism. Fewer variables in production may result in firmer pricing at the outset. However, there is a significant cost for delivery and crane operations and asso-ciated utility line work that is not neces-sary in traditional on-site construction. Without careful planning these issues can cause project delays as well as

increased costs. There is an economy of scale in the cost of setting more homes in a shorter period.

Environmental benefits may result from reduced emissions in truck deliveries of materials to the job site and the factory. Fabrication in the production fa-cility creates a higher rate of recycled materials and recycling programs that wouldn’t be used otherwise. Increased framing size was required for transporta-tion by truck enabling greater insulation values in the walls, and creating a more energy efficient home.

The Rebuilding Union Beach project team con-sidered more than 50 modular homebuilders and visited eight production facilities to examine models, discuss specifications, and interview staff. Rebuild-ing Union Beach did not use manufactured homes, formerly known as mobile homes, since the stan-dards are not as stringent as state and local codes.

15

Modular sections are insulated (above) and wrapped (below).

BUILDER SELECTION CRITERIA● Quality

● Cost

● Ability to meet project specifications

● Ability to meet production and time frame requirements

● Financial capacity

● Insurance and bonding capacity

● Use of Energy Star-rated homes that incorporate eco-friendly features

● Ability to make the Rebuilding Union Beach pilot replicable ● Able to be classified a RREM-approved builder

Eight different home models were selected ranging in size from 950 – 1,350 square feet. They incorporate many resilient, durable and eco-friendly features and materials. Design, construction and project management was performed in collaboration with the Rebuilding Union Beach Project Team.

WHAT WE LEARNEDThere were no modular manufacturers located in New Jersey at the time of the storm. Therefore, we worked with out-of-state manufacturers. Companies that are familiar with the region are more likely to know local sub-contractors, suppliers, local conditions, and code requirements. This can help save time and cost and improve quality.

16

MODULAR DELIVERY & INSTALLATION

17

Delivering a modular home requires a detailed logistics plan and extensive communication. Union Beach was fortunate to receive permission to stage home modules at a disused parking lot at the edge of town. Online mapping program Google Maps was used to illustrate the delivery routes. These were coordinated with the trucking compa-ny, crane operator, overhead utility companies and local police department. Removal and reinstatement of obstacles such as street signs and fencing was coordinated with the local Department of Public Works. Extensive notification was required to inform community members and neighbors of parking restrictions and of temporary power and cable interruptions during delivery windows.

WHAT WE LEARNED● The maximum module size is restricted by interstate and local road regulations and is approximately 15’-9” wide x 14’-2” high x 70’ long.

● The cost of delivery and crane lifting can offset the cost benefits of modular construction. Consecutive staging can help mitigate costs.

● Re-scheduling crane operations and utilities may cause lengthy delays and additional costs.

● Coordinate with local police in advance for traffic safety, road closures, and escorts.

● “No Parking” signs should be posted along the delivery route 24 hours in advance of transport.

● It may be necessary to remove overhead wires in communities with narrow streets.

● Inclement weather can lead to delays. Establish a rain date for delivery and crane operations.

● Consider alternate locations, such as libraries or community centers for neighbors to gather if they will experience utility disruptions.

● Notify neighbors and community members about power outages as well as parking restrictions. Utilities may require a signature from neighbors prior to any shut own.

● Check for neighbors who are on life support and will need generator power during the outage.

● Ensure modular home sections are sealed tight prior to and after installation to avoid infiltration of water, wind, snow, animals, etc.

A local parking lot served as staging area for the modular homes.

18

MODULAR DELIVERY & INSTALLATIONDelivery: 8AM

2PM 1 Month Later2 Weeks Later

Arrival at site: 9AM

11AM 11:15AM 11:30AM

10AM

19

TRADITIONAL ONSITE CONSTRUCTIONAs the first 12 homes were completed, Rebuilding Union Beach determined that financial resources were available to construct two additional homes. These were planned with the manufacturer and the builder. The homes were under contract when the manufacturer informed us that they would no longer build homes for the New Jersey market. Working with a new modular manufacturer would have en-tailed re-starting the design process, causing exten-sive delays. We determined the fastest way forward was to work with the contractor to revise the spec-ification, modify the design, and build the homes onsite using traditional construction methods.

WHAT WE LEARNED● The increased demand for construction following the storm made it very difficult to find capable sub-contractors and supervisors and quality materials (e.g. lumber). This was particularly true for affordable housing, which has a lower profit margin than higher-end construction.

● Proper oversight by the general contractor of the sub-contractors is critical. The homeowner or someone with sufficient skill acting on behalf of the homeowner (e.g. project staff) should visit the site regularly to ensure that workmanship and materials are of an acceptable standard.

COMPARING MODULAR & ONSITE CONSTRUCTIONModular construction holds great potential as a solution to post-storm housing. In our experience, housing built in a controlled production facility is more likely to achieve higher quality, shorter con-struction schedules, and lower costs than traditional onsite construction. However, challenges remain: 1. The modular housing solution is most cost- effective when implemented at a large scale. Rebuilding Union Beach was conceived initially as a 200-home project in order to leverage cost benefits.

2. Modular homes may take as little as two to four weeks to build. However, high demand for homes after a storm may delay the start of production. 3. Delivery and crane costs for modular homes are high - $20,000 per home in Union Beach. 4. In the past, modular home manufacturers did not offer affordable home options with high quality design and materials. However, as modular homes gain in popularity, both quality and options have increased. Some modular companies are experimenting with new materials and assembly techniques that may result in improved quality at a lower cost.

With these challenges in mind, an alternate solution may be modular panelized construction in which wall, floor, ceiling, and roof panels are built in a fac-tory, transported to site stacked flat on a truck, and assembled by a trained crew. Advantages include eliminating large delivery trucks, crane operations, and utility line-work. However, local officials have raised concerns regarding the structural integrity of connections between panels. In addition, panelized construction is more prone to weather delays than factory-built modular section construction.

We had the opportunity to build two homes onsite, enabling us to compare traditional building and modular construction. The post-storm construction boom resulted in increased labor and material costs, shortages in construction materials, and a lack of available and experienced labor. All of these factors made it difficult to achieve our quality, cost, and schedule goals. The extra costs offset the cost sav-ings we anticipated as a result of eliminating truck delivery and crane operations. Additionally, achiev-ing an appropriate level of quality from available labor was an ongoing challenge and required daily field monitoring by our project team. In the end, the homes constructed onsite cost more, took longer to complete and required more inspections than the modular homes.

20

RESILIENT FEATURES● Homes are elevated one foot above local code requirement and three feet above FEMA guidlines to enhance safety and qualify homeowners for lower insurance premiums. This is the maximum elevation for which the Increased Cost of Compliance (ICC) Grant would reimburse.

● Hurricane strapping provides a continuous load transfer connection between foundation, walls, and roof.

● Houses are structurally engineered to withstand 115mph winds and flood surges.

● Cement board siding is non-combustible, impervious to water, insects and mold, and able to withstand high winds.

● 5-tab roof shingles have a stronger connection to the roof than standard 3-tab shingles.

● Plywood roof sheathing is a stronger material than OSB sheathing.

● Grade is sloped away from the home and driveway directing water flow toward landscaped areas where it can be absorbed.

SUSTAINABLE FEATURES● Flood water mitigation and water conservation features include permeable driveways to improve drainage, rainwater catchment, rain gardens, and erosion-resistant native planting.

● Renewable and non-toxic materials such as bamboo, linoleum flooring and zero-VOC paint.

● Materials with recycled content, including roof shingles and cement board.

● Water-saving fixtures.

ENERGY-EFFICIENT FEATURES ● Higher-rated insulation than required by code increases energy efficiency, reduces utility bills and mitigates the exposure of the underside of the elevated home to cold temperatures.

● Screen doors and ceiling fans encourage natural ventilation.

● Large window areas increase natural light and provide cross-ventilation.

● Solar panels reduce energy costs and offset property tax increases inherent in new construction.

● Energy Star appliances and lighting.

● Use of LED light bulbs.

“ ”We’re safer now that our home has been elevated.

—Jeannie P.

21

SITE & LANDSCAPE DESIGN

Thoughtful site-planning and design has helped make Rebuilding Union Beach homes more sus-tainabile and resilient. New municipal codes were instituted after the storm to minimize street parking in order to keep streets clear for emergency and public works vehicles. Driveways were incorporated into site layouts. Revised site setbacks and other rules developed by the municipality re-defined the distance from the property line to the home in order to meet fire code, as well as minimum grading and landscaping.

● Lot dimensions: Typical lots include 25, 50, 75 and 100 feet width by 100 feet depth

● Front Set Back: 20 feet – Porches and stairs were allowable within the setback

at time of construction. This policy was later modified to exclude porches and stairs from the setback and impacted the final two homes in the project

● Side Set Back: 3 1/2 feet minimum for 25 foot lots, 5 feet minimum on larger properties

● Rear Set Back: 30 feet, but was negotiable to accommodate the 20 foot front set back on some properties

● Elevation above grade to finished floor: 3 feet above base flood elevation, 1 foot additional in V-Zone

Carefully considered layouts of driveways, sidewalks, stairways, lifts, porches, landscaping, and mailboxes help create a welcoming appearance. Elevating homes on piles exposes the area underneath, which can be a design challenge in shore communities. Homeowners used these areas for various activities including park-ing, shaded seating, and recreation.

They can be attractive assets when combined with planting, trellis screening, lighting under the home, and the use of light-colored paint on the underside of the home to reflect light.

Sites are graded to slope away from the high spot below the home. Permeable driveway materials and simple rain garden concepts help reduce storm wa-ter, erosion, and flooding. These include collecting storm water in bioswales and rain gardens that have

plants set in layers of stone to hold and absorb water. Rain barrels are used to collect water from the roof. They reduce runoff, provide a usable re-source, and conserve water and reduce water bills.

Strategic planting of trees, shrubs and plants may help make homes more resilient and sustain-able while reducing utility bills. Planting may be used to provide shade, mitigate winds, slow and absorb onsite water, promote soil retention, create privacy and promote a healthy eco-system. Rebuild-ing Union Beach used native, non-invasive plants. Generally, these resist damage from freezing, drought and common diseases, produce long root systems to hold soil in place and require less water and maintenance.

WHAT WE LEARNED● Use native, non-invasive plants to help ensure growth and work with local eco-system.

● Appropriate planting can enhance enjoyment of the home as well as its appearance.

● Provide rain barrels mounted on concrete blocks. These capture storm water flows and may be used for watering plants and cleaning, thereby saving money on water bills.

● Locate mailboxes for conformity with local postal requirements and ease of access.

22

The following species are native to the region (with the exception of Crepe Myrtle trees which have grown well in Union Beach for many decades and provide color and shade).

TreesCrepe Myrtle, LagerstroemiaRed Maple, Acer rubrumNorway Pine, Pinus resinosaLinden, Tilia Americana River birch, Betula nigraSwamp white oak, Quercus bicolor

Small to Medium TreesServiceberry, Amelanchier canadensisDowny Serviceberry, Amelanchier arborea Flowering dogwood Cornus floridaRedbud, Cercis canadensis

ShrubsBayberry, Myrica pensylvanicaBeach Plum, Prunus maritimaMountain Laurel, Kalmia latifoliaRhododendron, Rosebay rhododendron

GrassesZebra Grass, Miscanthus sinensis zebrinusMaiden Grass, Miscanthus sinensisFescue/Bluegrass/ Rye Grass Seed Mix

PerennialsCatmint, NepetaConeflower, Echinacea purpurea

Rockbed in Bioswale¾ River Jack Rock

PLANT LIST

Bioswale absorbs water and reduces run-off.

Many builders and modular manufactur-ers offer design services, however, these are not necessarily provided by qualified staff. We strongly recommend engaging licensed professionals to ensure homes are designed to satisfy homeowners’ needs, budgets, and site conditions. ● Home models were matched to home owners based on their family size, lot size, and special needs.

● Front porches were installed at each home to extend the living space, increase security on the street, and provide an opportunity to be outdoors and connect with neighbors. This is particularly important for elderly and disabled residents.

● Layouts are efficiently designed to maximize usable space.

● A palette of light colors was offered to homeowners to match the bayside location, reflect light, and provide options with broad appeal.

● Tall windows are used extensively to

maximize natural light and views.

● Proportions and materials were carefully considered to create a beautiful home, minimize maintenance in a coastal climate, and create an attractive streetscape.

● Stair rails should be easily graspable to avoid the

need for a separate guardrail and handrail. These are readily available for interior use but may need to be ordered in advance for exterior use where pressure-treated wood is required.

● Donations of furniture, kitchen and cleaning items and linens were provided in order for families who lost their belongings to use their homes immediately upon move-in. Donations of porch furniture, mailboxes and American flags provided a welcoming touch.

DESIGN FEATURES

23

Front porches extend the living space.

Tall windows increase natural light.

Easily graspable stair rails promote safety.

MARS

HPL

AINS

FORE

STGL

ACIER

OCEA

N

24

MATERIAL & COLOR OPTIONS

Cabinet

Oak: Medium

Kitchen & BathroomCounter

Laminate: Graphite

Twill

Cabinet

Maple: White


Laminate: Geo

White

Cabinet

Maple: Natural


Laminate: Neutral

Twill

Cabinet

Maple: Natural


Laminate: Ivory

Kashmire

Cabinet

Maple: Natural


Laminate: Ivory

Kashmire

Siding DoorTrim

Siding DoorTrim

Siding DoorTrim

Siding DoorTrim

Heathered Moss

DoorSiding Trim

PureWhite

Walls

Creamy

Floor

Linoleum: Silt

Bathroom & Laundry

Walls

Creamy

Floor

Linoleum: Silver

Shadow

Bathroom & Laundry

Walls

Creamy

Floor

Linoleum: Blue

Heaven

Bathroom & Laundry

Walls

Creamy

Floor

Linoleum: Cloudy Sand

Bathroom & Laundry

Walls

Creamy

Floor

Linoleum: Frost

Bathroom & Laundry

Roof

Weathered Wood

Roof

Slate

Roof

Slate

Roof

Weathered Wood

Roof

Weathered Wood

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Hallway & Closet Walls

Creamy

Living & Dining Walls

Cargo Pants


Creamy


Olympus White


Creamy


Comfort Gray


CreamyMonterey

TaupeWhite

Fibreglass: Distant

Thunder

Cement Board:

Woodstock Brown

WhiteFibreglass: Afternoon

Tea

Cement Board:

Light Mist WhiteFibreglass:

Cannon Gray

Cement Board:

Boothbay Blue

WhiteFibreglass:

Knight’s Armour

Cement Board:

Fibreglass: Dark Ash

Cement Board:


Creamy


Creamy


Ionic Ivory

Floors

Bamboo: Carbonized

Floors

Bamboo: Carbonized

Floors

Bamboo: Natural

Floors

Bamboo: Natural

Floors

Bamboo: Natural

Walls

Comfort Gray

Ionic IvoryCreamy Patient White

Cargo Pants

Olympus White

Bamboo

FloorsBedroom Options

Carpet: Gravel

Carpet: Timberline

Carpet: Cornflower

Carpet: Chestnut

Homeowners chose from five home color palettes and separate bedroom options.

25

ACCESSIBILITYThe elevation of homes from 6 feet to 11 feet above grade per FEMA guidelines made accessibility a challenge for some families. Constructing ramps was not realistic due to the length required to reach these heights. Solutions were developed to align with the needs of each family:

● Slight difficulty climbing stairs: Exterior stair riser height was reduced, stair landings were added to provide a resting place, and zero-height thresholds were provided between the porch and front door.

● Moderate difficulty climbing stairs: Exterior stair lifts provide access from covered driveway below home to front porch above.

● Wheelchair access: Indoor lifts provide access from covered driveway below home to front hall above. ADA requirements inside the home were met or exceeded to accommodate wheelchair use.

WHAT WE LEARNED ● Address accessibility issues early in the project as budget and design decisions are made.

● Design homes for older residents to age in place. Consider wider doorways for wheelchair use, wood blocking within bathroom walls to accommodate grab rails, minimizing floor thresholds, and incorporating a location for a future lift.

● Design stairs to accommodate EMS use of an emergency stretcher or chair.

● State programs and nonprofit organizations that support accessibility are available to help. Contact the regional Office on Aging & Disability Services for information and guidance.

● Lift installation requires special permits and inspections. This may lengthen the schedule and impact move-in dates. Plan accordingly.

● Consideration should be given to site design elements such as smooth walkways, parking layout, and location of exterior lifts.

● Elevate lift entry slightly above grade and slope grade to direct stormwater away from lift.

ACCESSIBILITY FEATURES Home Model E on page 37 incorporates these wheelchair accessible features:

● Wider hallways and larger rooms to accommodate wheelchair-turning radius.

● Lower kitchen counter and higher cabinet base.

● Clear knee-space below sinks & stove (applicable for users of certain types of wheelchairs.

● Lower bathroom vanity height.

● No floor thresholds between rooms. Low threshold at entry between floor and porch.

● Grab rails screwed to solid blocking in bathroom.

● Front-loading washer and dryer.

● Electrical outlets for medical equipment.

● Lower stair riser height for use in emergency.

● Stair landing added for homeowner comfort and potential use by emergency services.

Rebuilding Union Beach selected tankless hot water heaters in a majority of the homes for their space savings and Energy Star ratings. These systems, as well as the Energy Star 90% annual fuel utilization efficiency heating systems, work best in moderately temperature-controlled enclosure. Care should be used in insulating the appliances for optimal performance. Gas ranges were selected to give homeowners a mixed power use in case of future storms.

HVAC / PLUMBING / ELECTRIC

WHAT WE LEARNED● Increase insulation below homes elevated on piles

to mitigate cold outside air below home.

● Ensure pipes in floor cavity are located in the top third of the cavity and strapped tight to the underside of the floor.

● Insulate pipes and traps with pipe-wrap, use spray foam to fill gaps in floor cavity and install a layer of rigid insulation on underside of homes to better insulate plumbing pipework.

● Run cable to utility panel before siding is installed.

● If incorporating solar panels the general contractor should install roof penetrations on north side of roof to increase solar efficiency.

● Providing ceiling fans, or at least electrical boxes in the ceiling for future fan installation, gives occupants an environmentally friendly and low cost alternative to air conditioning.

● LED light bulbs use less energy, last longer and have better color rendering than traditional or fluorescent light bulbs.

26

Solar power gives homeowners more independence from increasing utility rates and generates income to offset property tax increases. This contributes to the homeowner’s long-term financial stability and pro-vides ecological benefits. In addition, should elec-trical power be lost, solar can provide some power in the home and if gas services are not damaged, there is a reduced likelihood of the resident needing temporary housing. We partnered with GRID Alter-natives, a nonprofit solar installer that works exclu-sively with qualifying low-income residents (80% area median income). They installed solar pan-el systems in six of the Rebuilding Union Beach homes. The prepaid leasing model provid-ed homeowners with the largest savings on their energy bills and a reduced installation cost. On average, homeowners have saved approximate-ly 80 percent on monthly utility bills in addition to the environmental benefits of a reduced dependence on power from the utility company. Contracts with solar companies should be reviewed by the homeowner’s legal counsel.

SOLAR POWER

“ Solar panels have reduced our electric bill by 80%.

—Robert B.”

Utility company guidelines are prone to change in the aftermath of a disaster in order to protect the community and to ensure the safety of the work force. For example, electric meter heights changed several times during planning and construction. Developing a relationship with the utility companies expedited communication of code changes. Utilities in Union Beach supported residents and the Rebuilding Union Beach project by waiving or discounting connection fees for each home.

WHAT WE LEARNED● Confirm electric meter height requirements with utility and code officials during the design/ planning phase.

● Ask utilities to establish billing early and set up new accounts as necessary.

● Contact all utilities during the design/planning phase and maintain regular contact to avoid scheduling delays for work. (Utilities may need 8 weeks or more to schedule fieldwork.)

● Ask for an alternate rain date when initially scheduling the appointment. (A weather-related delay could cause a 30-day delay in rescheduling.)

● Hold group meetings with all utilities, including a field visit to sites to discuss any issues.

● Sewer laterals are not always marked properly. One advantage of modular construction is that sewer laterals can be located while the house is under construction in the factory.

27

UTILITIES COMMUNICATIONS & TECHNOLOGYA one-stop-shop presence at Borough Hall facilitated communication between disaster relief organizations and made access to resources easier for residents. Technology facilitated this collabora-tion, organization, and rapid response. Initially, each provider used paper lists to keep track of clients and needs. Eventually these were replaced by spread-sheets, then Google Docs, and eventually Batch Geo mapping. BatchGeo was used to develop maps for demolition, grant applications, delivery route planning, and photo storage. Data was later export-ed to Google Maps and sent to relevant parties.

The use of cloud-based systems enabled multiple users to update documents and access information. This also prevented documents from being mis-placed. Shared calendars were used to coordinate schedules and events. Creating a database for use by the disaster resource center increased the amount of information available about each family, resulting in a more streamlined distribution of resources. Using one database to track all programs helped our team identify unmet needs and spot potential program abuses.

Initially, flyer drops throughout the community brought residents to Borough Hall for warm meals and donated items. Both word-of-mouth and social media were critical to disseminating information following Hurricane Sandy. Local community Facebook groups were useful and willing to distribute messages to residents who were unaware of available resources.

Reverse 911 was the most effective way to reach the majority of residents. Staff and volunteers helped residents sign up when they came to Borough Hall for assistance. Mass communication increased resource knowledge in the community and reduced the spread of misinformation.

28

HOME MODELS

29 Model A 31 Model B33 Model C 35 Model D 37 Model E39 Model F 41 Model G 43 Model H

A home is more than shelter. Rebuilding Union Beach homes are designed to be resilient, sustainable, energy efficient, and cost-effective. The eight 2-bedroom and 3-bedroom models range in size from 930 - 1345 square feet.

“ ”My home is my castle. It’s beautiful. —Joe F.

Home Model A

29

TYPE: 2 Bedroom, 1 Bath, 930 square feet

SIZE: 14’-9” x 70’ single-section modular home

PORCH: 14’9” x 8’

LOT: 25’ x 100’

SETBACKS: 20’ front, 3’-6” side, 30’ rear

HEIGHT ABOVE BASE FLOOD ELEVATION: 8’-0”

CEILING HEIGHT: 9’-0”

PARKING: 1 car outside and 1 car below home on permeable driveway pavers

CONSTRUCTION COST: $185,000 including survey, foundation, delivery, and installation ($198 per square foot)

TOTAL COST: $222,000 Including demolition, landscaping, appliances, furniture, and solar panels

Home Model A

30

Home Model B

31

Home Model B

32


SIZE: 34’ x 28’ double-section modular home

PORCH: 22’ x 6’

LOT: 100’ x 100’

SETBACKS: 20’ front, 5’ side, 30’ rear



PARKING: 2 cars on permeable driveway pavers


TOTAL COST: $229,000 including demolition, landscaping,appliances, furniture, and solar panels

Home Model C

33



PORCH: 22’ x 6’

LOT: 75-100’ x 100’


HEIGHT ABOVE BASE FLOOD ELEVATION: 8’-0” (home pictured)


PARKING: 2 cars on concrete slab driveway (due to high water table)



Home Model C

34

Home Model D

35

TYPE: 3 Bedroom, 2 Bath, 1,176 square feet


PORCH: 16’ x 6’

LOT: 50’ x 100’






TOTAL COST: $251,000 including demolition, landscaping, appliances, furniture, and solar panels

Home Model D

36

Home Model E

3937

TYPE: 2 Bedroom, 1 Bath, 1,200 square feet, Wheelchair accessible, with elevator

SIZE: 46’ x 27’ home built onsite

PORCH: 19’ x 6’

LOT: 100’ x 100’





CONSTRUCTION COST: $271,000 including survey, foundation, delivery, installation, and elevator ($226 per square foot)


Home Model E

38

Home Model F

39



PORCH: 19’ x 6’

LOT: 100’ x 100’







Home Model F

40

Home Model G

41

TYPE: 3 Bedroom, 2 Bath, 1,345 square feet with lift

SIZE: 18’ x 51’ 2-story, six-section modular home

PORCH: 18’ x 6’

LOT: 25’ x 100’

SETBACKS: Setbacks: 20’ front, 3’-6” side, 30’ rear

EIGHT ABOVE BASE FLOOD ELEVATION: 8’-0”


PARKING: 2 cars on concrete slab due to high water table


TOTAL COST: $328,000 including demolition, lift to porch, landscaping, appliances, furniture, and solar panels

Home Model G

42

Second Floor

Home Models H

43



PORCH: 24’ x 8’

LOT: 50’ x 100’







Home Model H

44

The Borough of Union Beach created a collaborative environment that brought in a high level of support from funders and volunteer and relief organizations including grants for Rebuilding Union Beach. This is attributed to the Borough’s willingness to accept offers of help and to work closely with supporters.

Union Beach successfully leveraged existing pro-gram information to initiate new relief programs. Data gathered from the demolition program was used to maintain contact with residents in need, quantify gaps in insurance funding, and establish the need for rebuilding grants. This information helped staff write grant applications that accurately represented the community’s needs. As a result, a major grant was received to issue $500 gift cards and appliances to eligible residents. Donations of food and building materials were also available.

AmeriCorps launched a volunteer coordination program in the Borough immediately following the storm. More than 300,000 volunteer hours were donated, including skilled labor. Volunteer hours are considered an offset to each municipality’s portion of FEMA recovery costs and lessen their financial burden for recovery efforts. Volunteers used mapping and database technology to identify areas in need, or-ganize volunteers, and increase safety by coordinat-ing volunteer sites with the local police department.

The Borough’s Mayor and Council supported the relief effort by providing office space and storage to nonprofits that offered construction support, mold remediation, case management, and counseling services. Providing the resource center and long-term management helped develop an environment of trust in the community. The positive impact has been noted by regional and state government and philanthropic organizations and helped attract additional funding sources to the community. These efforts promoted recovery in Union Beach more quickly than in many comparable towns in the region.

Local government support helped enable demolition teams to obtain Right of Entry to private homes. Information about health and safety concerns was broadcast to residents through a borough-adminis-tered community notification system.

WHAT WE LEARNED● Establishing a local resource center following a disaster provides immediate help and creates a gathering place, which also attracts volunteers.

● Local resource centers allow services to develop organically outside of non-governmental organization restrictions. In our experience, residents were more likely to take help from their neighbor or local resource center than a large organization.

● Donations of products and services are an

important way to assist residents. The logistics of inventory, delivery and reporting of these donations may require a significant amount of time. It’s advisible to determine logistics prior to soliciting material donations.

● In our experience, those residents most in need of help were often the least likely to ask. Address perceived stigmas associated with requesting help by communicating to the larger community about support options. Rebuilding Union Beach participants were required to meet with a case manager to discuss financial, legal, and social service needs and options.

● After the initial disaster phase, financial vetting is required and requires tenacity. Begin case management as soon as possible.

● An official web presence or social media site is helpful in getting the word out to the community. These must be updated regularly.

● Community members and non-locals can provide an objective viewpoint on local issues and needs, including distribution of resources.

45

LOCAL RELIEF EFFORTS

46

Jennifer Wenson Maier, FounderScott LauerJovia NierenbergKevin WatsonBrenda Zimmerman

Architectural Design ConsultantRosen, Kelly, Conway Architecture & DesignLandscape Design ConsultantMarpillero Pollak ArchitectsProject Guide DesignJeff Hand Design

Architectural DrawingsCorner ConsultingPhotographyKevin Chu + Jessica Paul Cover top, 1, 4, 8, 20 right, 23, 25, 26 bottom, 28 bottom-31, 33-35, 37-39, 41, 43; Bill Menzel 32, 40, 42; KK Pandya 2; NJ Governor’s Office 7 top, 28 top, 46; Borough of UB 3; Rebuilding Union Beach All other photos

Project guides and research information may be found on these organizations’ websites:

Affordable Housing Alliance AFH Biloxi Model Home Program 2008AFH Rebuilding 101 Manual 2010 FEMA Storm Mitigation FEMA Planning for Post Disaster

Insurance Institute for Business & Home Safety

Gulf Coast Community Design StudioAlternative Construction Research Guide

Make It Right Foundation

US Department of Energy

National Association of Home Builders NJ Department of Community Affairs

NJ Division of Disability Services

US Green Building Council

RebuildingUnionBeach.org

REBUILDING UNION BEACHPROJECT TEAM

INFORMATION RESOURCES

http://www.affordablehousingalliance.com

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&ved=0CDkQFjAFahUKEwjnlrrX2NPIAhXKHT4KHa8kDKY&url=http%3A%2F%2Fm.friendfeed-media.com%2Fc74df287939169a1c07f628cfeba5681a3055987&usg=AFQjCNF-W59U5cZod26WYrP6AMhL4baj5g

http://www.recoveryplatform.org/assets/publication/rebuilding101_en.pdf

https://www.fema.gov/hazard-mitigation-planning

https://www.fema.gov/media-library/assets/documents/2147

http://disastersafety.org/about/

http://gccds.org/biloxi/

http://gccds.msstate.edu/research/altconstruction/intro/intro.pdf

http://makeitright.org

http://energy.gov/energysaver/energy-saver

https://www.nahb.org

http://www.state.nj.us/dca/

http://nj.gov/humanservices/dds/home/

http://www.usgbc.org


REBUILDING UNION BEACH TIMELINE

47

OCT2012

2013

2014NOV

DEC AUG/SEPT NOV JANJAN OCT DEC FEB

FEBMAR

APR JUNMAY JUL

October 2012Hurricane Sandy hits Union BeachBorough Hall Senior Center converted to a resource centerGrassroots volunteer coordination begins

November 2012FEMA Disaster Recovery Center opensAmeriCorps begins volunteer coordination with Gateway Church of Christ

January 2014Law firms complete contracts Families begin to sign contractsJohnson & Johnson donates $18,000 for solar panels

February 2014Home orders placedContract signing for families continues

December 2012Burners Without Borders begins free demolition program

January 2013Rebuilding Union Beach presented to Governor’s Office of Recovery & RebuildingRobin Hood Relief Fund awards initial grant for Union Beach residents for appliances

February 2013Rebuilding Union Beach grant proposal submitted to Robin Hood FoundationRobin Hood Relief Fund awards $725,000Union Beach database project beginsFEMA rules on asbestos inspection change and demolition is haltedSoil testing begins

March 2013Home manufacturers are vetted and factory tours beginBurners Without Borders demolishes 149 structures in 4 months

April 2013Mayor appoints Selection CommitteePreliminary foundation drawings receivedFinancial interviews beginUnion Beach issues bid for asbestos abatementMeeting with Federal, State and County agencies regarding interpretion of demolition guid-ance documentHomeowner Selection Committee holds first meeting

May 2013Hurricane Sandy NJ Relief Fund awards $1,500,000Request For Proposals sent to modular manufacturersNJ RREM and Resettlement grant application opensLaw firms develop draft contracts

June 2013Meeting with NJ Governor’s Office of Recovery & Rebuilding, Robin Hood Relief Fund and Hurricane Sandy NJ Relief FundLegal framework for project is established and draft contract created

July 2013Non-profit organizations provide probono legal and financial counseling to families

August/September 2013Ongoing coordination of home specifications, site planning and budgeting Law firms begin drafting contracts

October 2013Second round of financial interviews beginsHurricane Sandy first anniversary

November 2013Samaritan’s Purse site work valued at $130,000Project receives PlanSmart NJ award Contract review meeting with homeownersRebuilding Union Beach presented to NJ housing organizations

December 2013Field visits with utility companies to confirm delivery logistics

FEB

REBUILDING UNION BEACH TIMELINE

48

2014

2015MAR MAY JUL SEPT

APR JUN AUG OCTNOV

DEC FEB/MAR MAY JULJAN APR JUN

March 2014Delivery coordination with utilities, truckers, crane operators, manu-facturers, & contractors

April 2014Pile foundation installation beginsModular homes arrive from manufacturer

May 2014Homes are lifted and set beginsAppliance and furniture deliveries beginFirst two families move into their new homes

June 2014Welcome Home Event with NJ First Lady Mary Pat Christie, Chair, Hurricane Sandy NJ Relief FundTwo families move home

February/March 2015Record low temperatures; Contractor performs remedial work to insulate pipework within floor cavity

July 2014First solar system installedEight families move home

August 2014Two families move home

May 2015Piles driven for final two homes

September 2014Five homes issued final Certificate of OccupancyContractor scope review for final two homes, including first fully wheel-chair accessible home

October 2014Scope finalized for final two homes

September 2015Appliance and furniture de-liveries for final two homesLast two families move home

November 2014Foremost Homes cancels order for final two modular homes; Project specification revised to traditional onsite construction

April 2015Onsite construction begins on last two homesWarranty inspection and repairs made to first twelve homes

December 2014Seven homes issued final Certificate of OccupancyFamilies selected for final two homes

January 2015Project receives American Planning Association NJ Award

June 2015Framing completed on final two homes

HOME CONSTRUCTION MILESTONES

49

MONT

H 1

Contract signed and home order placed.Construction start on assembly line*Begin construction permit process

Site surveyed and pile locations stakedPiles driven and banded*

Modular sections delivered, lifted onto foundation, and bolted together with hinged roof lifted*Porches, stairs and AC platform constructedSewer/Utility lines installed

Siding installedAC and Heating units installedUtility connections made*Driveway constructedSite gradedFlooring installedPaint applied

Appliances delivered & installed*Landscaping installedSolar panels installedFinal inspections*Contractor/Homeowner walk-through and agree on list of outstanding itemsContractor completes outstanding items

Final cleanCertificate of Occupancy issued*Furniture deliveredHomeowner move-in

Warranty inspection and repairs Final payment issued to Contractor

MONT

H 2MO

NTH 3

MONT

H 11-1

2MO

NTH 4

MONT

H 5MO

NTH 6

This schedule is an approximation for general reference. There is potential for shortening the length of the schedule, however, many homes along the coast have taken longer than 6 months to complete.

*NOTE: Milestones dependent on external parties may impact schedule.

50

REBUILDING UNION BEACH SUPPORTERSMajor Financial SupportHurricane Sandy New Jersey Relief FundRobin Hood Sandy Relief Fund

Additional Financial SupportBorough of Madison, NJJohnson & Johnson Information Technology Shared ServicesJon Bon Jovi Soul FoundationKPI Bridge OilMonmouth County Long-Term Recovery GroupNew Jersey Natural GasPrinceton Area Community FoundationRotary International District 7500

Donations & Professional ServicesA Room in Our HeartsAlex McCartney Contracting Inc.American Standard BrandsJohn Beres, Alliant Insurance ServicesBurners Without BordersBuhler FordCasola FarmsCorner ConsultingDSW HomesEnvironmental Health Investigations, Inc.Foremost IndustriesGateway Disaster ReliefGibbons LawGreen DepotGRID AlternativesHigh Socks for HopeHoagland, LongoHome Depot, Hazlet, NJJames Hardie Building ProductsJeff Hand DesignJersey Shore United, Toms River, NJJewish Federation of Greater MetroWest NJMarpillero Pollak ArchitectsMartin LaskowskiLandmark Companies, LLC

Wade Martin, Morgan StanleyMatrix New World EngineeringMcCarter & English, LLPMellick-Tully and Associates, PCNew Jersey PhoenixOperation HOPE, HOPE Coalition AmericaPBA Engineering, PCPetruzelli General ContractorsChris Placitella, Cohen, Placitella & RothPortlight Strategies, Inc.Princeton UniversityRAINE FoundationRebuild/RecoverRichard E. Stockton & Associates Inc.Rosen, Kelly, Conway Architecture & DesignRutgers UniversitySamaritan’s PurseSRB Help CenterAll American Subaru & Subaru of AmericaTargetSteven WatsonWimbledon PropertiesVolunteer Lawyers for JusticePatti Dickens, Bill Gallagher, Carl Williamson, and...

Thousands of volunteers from across the country

Institutional SupportState of New Jersey, Office of the Governor and Department of Community Affairs

Union Beach Mayor and Council, Departments of Construction, Emergency Management, Fire, Police, & Public Works

Bayshore Regional Sewerage Authority, Cablevision, FEMA, Jersey Central Power & Light, NJ Natural Gas, and Verizon

https://sandynjrelieffund.org

https://www.robinhood.org

Utility companies in Union Beach supported residents and Rebuilding Union Beach by waiving or discount-ing connection fees for each home. This resulted in a savings of more than $25,000 for Verizon and JCP&L line work at the time of delivery. Staffing costs for Rebuilding Union Beach were underwritten by workforce development grants and private philanthropy.

Grants & Contributions Amount NotesMajor Grants $2,440,000 Hurricane Sandy NJ Relief Fund, Robin Hood Relief Fund

Additional Grants $154,000 James Hardie, Johnson & Johnson, Jon Bon Jovi Soul Foundation, Monmouth County Long-Term Recovery Group, Portlight Strategies, Rotary International

Homeowner Contributions $712,000

Increased Cost of $308,000 Compliance (ICC) Funding

Donated Products $116,000 Plumbingfixtures,furniture

Donated Services NA Legalcounsel,casemanagement,financialcounseling, familycounseling,demolition,grading&fill,photographyTOTAL $3,730,000

Expenses Amount NotesExpenses $52,000 Structuralcross-bracing,appliances,furniture,fixtures, equipment, landscaping, printing, events

Demolition $350,000 $25,000 per home

Home Construction $3,260,000 Includes $116,000 for donated products

Professional Fees $18,000 Architect, engineer, municipal fees, utility fees

TOTAL (October 1, 2015) $3,680,000 Does not include $50,000 retained for one year contingency

51

REBUILDING UNION BEACH BUDGET

Grant Timetable Amount Purpose SourceAverage Home Available upon $150,000 Home construction Hurricane SandyGap Funding qualifying includes contingency NJ Relief Fund & Robin Hood Relief Fund

Increased Cost of During and/or $30,000 Homeowners apply to their National FloodCompliance (ICC) afterconstruction maximum floodinsurer;Eligibleexpenses InsuranceProgram of home. Available include engineer fees, (administered by up to four years foundation, construction, homeowner’s insurer) post-storm. and home elevation

Accessibility Contingent $3,000 Subsidize costs related to lift in- Portlight Strategies uponavailablily maximum stallationandaccessibiltyneeds

County Long-term Ongoing Varies Homeownersapplythrough Non-profitorganizationsRecovery Groups - case managers for rent, and private donationsUnmet Needs construction costs, accessibility needs, furnishings, etc.

Materials, Grants, Ongoing Varies Includes purchase of Various donors. Referand Volunteer Labor construction materials, mold to page 50. remediation and removal, demolition, and reconstruction assistance

Emergency Grant Weeksafter $2,800 Emergencyneeds FEMA the storm

Emergency Months after $500 Gift cards for local retailers Robin Hood Relief Fund Needs the storm increments for food, construction materials, and gas

52

HOMEOWNER GRANT RESOURCES

CONTRACTOR REQUIREMENTSIn order to ensure the homes met quality, resilience and sustainability goals, a detailed description of construction requirements was developed and included in the Homeowner/Contractor agreement. These requirements were developed to meet code for Union Beach, NJ. Codes will vary between states and localities.

Project Administration 1. Provide full set of drawings stamped by licensed architect for approval prior to construction. Homeowner shall review and sign off on drawings. 2. Provide detailed and dimensioned kitchen and bathroom plans, and elevations for approval prior to construction and fabrication of cabinetry. 3. Provide detailed project schedule prior to construction. 4. Arrange all necessary inspections. 5. Provide company name and address of each proposed sub-contractor. 6. Provide weekly email updates to project team. 7. Provide weekly update to homeowners. 8. Obtain neighbors’ contact information. Contact them when more than a right of entry is required. 9. Provide port-a-john and dumpster as required by local code. 10. Design and consturct one Rebuilding Union Beach home for full wheelchair accessibility.

Permitting / Warranties 1. Provide Freehold Soil Exemption Letter to satisfy soil and runoff regulations. 2. Provide all building permits for house and warranty.

Utilities 1. Arrange all utility work in advance to mitigate delays. 2. Pay utilities any required fees so homeowner does not receive collections notices. 3. Confirm height of electric meter with utility company and code officials prior to construction.

4. Run cable to utility panel before siding is installed. 5. Home run phone and cable wire near power meter. 6. Coordinate reconnection of utilities to house. 7. Locate sewer laterals during foundation construction. 8. Provide sewer and water laterals to street and clean out connections to mains. 8. Install gas piping from meter.

Site 1. Provide concrete driveway and path to elevator for ADA home as applicable. Confirm layout on site prior to construction. 2. Install geotextile fabric and crushed stone beneath the footprint of the house (excluding concrete slab driveway and walkway). 3. Provide concrete splash blocks. 4. Provide and install two rain barrels and diverters per house on staggered-CMU plinths. 5. Provide and install topsoil and grading, mulch for plantings, grass seed, and hay. 6. Install mailbox.

Engineering / Foundation 1. Provide sealed plot/grading plan, foundation plan, elevation certificate, and as-built survey/ elevation certificate. 2. Piling foundation: Install pilings per plan and provide piling certificates (per pile) to municipality. Base specification - 12” 25’ pilings, max 16’ buried in soil. 3. Banding: Install banding per engineers foundation specification. 4. Align perimeter beam bolts vertically. 5. Strapping: Provide and install all strapping per code and Union Beach code official.

Exterior Wall & Soffit 1. Lift shaft exterior wall (ground floor) – 2-hour fire-rated 8” block wall as applicable. 2. Lift shaft interior wall (first floor) – 2-hour fire- rated drywall as applicable.

53

54

3. Jeldwen double hung Low E vinyl windows or similar approved. 4. Provide 2 layers of 1/2” type X sheetrock and one layer of 1/4 Hardie smooth finish soffit under the house, caulked and painted. 5. Provide 5” seamless gutters. 6. Pressure-treated wood privacy screen to block view beneath home from street – 20’ wide feet by 6’-0” height. 7. Ecobatt Insulation. 8. Two layers R-30 batt floor insulation. 9. R-21 battt wall insulation. 10. R-38 batt ceiling insulation. 11. Strap pipes in floor cavity tight to the underside of the floor and locate in the top third of the cavity. 12. Insulate pipes and traps with pipe-wrap.

13. Home plumbing intake lines in minimum 3” pvc sleeve filled with marine-grade spray foam insulation 14. Use spray foam to fill gaps in floor cavity. 15. Install a layer of rigid insulation in areas adjacent to plumbing pipework.

Porches / Stairs 1. Gable Porch including gable vent, Hardie plank, shingles and fascia board, zero step from house to porch floor. 2. Soffits - Provide labor to install porch ceiling and eave materials. 3. Porch beams shall be 2x10. 4. Porch and stairs - Provide one set of stairs with landing and build the decking under the roof. Layout as per approved plans. 5. Provide labor and materials to install decking, build rafters, and install collar ties and clips and straps. 6. Provide base and crown trim at porch posts. 7. Deck to be installed flush with interior finished floor. 8. Railings - Provide labor and materials for railings. Railings shall be prepped with all holes and splits filled, and then stained solid white. 9. Front porch columns shall be 6x6 posts wrapped

in 3/4 board with base mold and Azek* crown mold (*top will be exposed to rain/snow) or similar approved. 10. Balusters nailed to inside face of rail with pre-shaped handrail at porch and stair- as per drawings.

Siding 1. James Hardie - Hardie Plank HL5 fiber cement boards - cedar finish (incl. all trim and corner boards), color tbd. 2. Standard white aluminum fascia and vinyl soffit. 3. 1 x 8 Hardie fascia on gable ends; 1x10 on ends. 4. 1” x 3 1/2” PVC cottage trim in lieu of shutters.

Doors & Door Hardware 1. Exterior Door: Therma-Tru fiberglass door #S606 or similar approved with glazed panel. 2. Interior Door: 2 square panel, hollow-core door with Schlage brushed nickel door levers, or similar approved.

Roofing 1. Architectural 6-tab shingles by GAF “Timberline Lifetime Hifh Definition” or similar approved, with 5/8”. CDX plywood underlayment, ice shield at first 3’ at base and gable ends, color tbd. 2. All roof structures prepped for PV solar panels at 3lbs/sq ft. 3. Minimize conflicts between vent stacks and proposed solar panel locations prior to fabrication. Interior Walls 1. 9’-0” ceiling height. 2. 1/2” drywall typical - Finish all beams and seams and prep for final coat of paint. 3. Install 1x6 square-edge baseboards and 1x4 square edge casings (straight profile). 4. Wall Tile - Install and grout shower wall with 4x4 plain white glazed tile with white grout. 5. Install solid blocking at towel rail locations (and for ADA homes at grab rail locations in bathroom at toilet and bathtub, and adjacent to master bedroom).

Floor Coverings 1. Provide and install Marmoleum in bathroom/ laundry area floor - Forbo as provided by Green Depot, color tbd. 2. Protect linoleum floors when painting to avoid overspray on floors. 3. Provide and install NAUF Bamboo flooring in hallways/kitchen/dining/living rooms/bedrooms - Foundations Strand by Green Depot or similar approved, color tbd. 4. Provide and install minimum 96sf flooring substrate in attic as walking surface.

Paint 1. Paint - Provide labor and material for primer and two finish coats of Promar 200 Zero VOC for interior, and A100 for exterior paints.

Cabinets & Countertops - Kitchen 1. Cabinet series with full overlay doors, (ADA compliant similar approved (for wheelchair accessible homes), +/- 6” toe kicks and +/- 3’ counter heights, color tbd. 2. Drywall bulkheads or cabinets to ceiling with crown molding to be determined by Project Coordinator based on contractor proposal. 3. Standard laminate tops - matte Finish, color tbd. 4. Include a budget line item TBD to incorporate “pull-down shelving” in upper cabinets for ADA homes.

Cabinets & Countertops – Bathroom 1. Same as kitchen 2. +/- 8” toe kicks and +/- 3” counter heights, color tbd 3. Standard cultured marble tops – oval, no recess, color tbd. 4. ADA grab bars w/ solid backing as necessary in shower and toilet area.

Shelving & Accessories 1. Standard 12” wire shelving in all clothes closets (one row) 2. Standard 16” wire shelving in linen closets (3 rows) and above laundry machines (1 row)

3. Provide and install pull-down attic access in hallway. 4. Provide and install 2” white, faux wood blinds.

Plumbing 1. Connect main water supply to the house and connect pex piping to DSW provided manifold in bathroom wall cavity behind door. 2. Install/connect American Standard toilets, sinks, tubs, bathroom towel/paper bars provided by Rebuilding Union Beach. 3. Provide, install and vent Rinnai Tankless water heater. 4. Standard PEX water piping, PVC sewer piping. 5. Stub PEX piping from floor to toilet in bathroom. 6. Locate PEX manifold in wall cavity. 7. Label Pex manifold. 8. Install full-height hinged panels to access. PEX manifold and escutcheon plates at floor and ceiling. 9. Any exposed Pex piping shall be white. 10. Waterproof HWH Closet as per code. 11. Water box connection behind refrigerator. 12. Outside hose bibs (spigot) - Provide one hose bib at rear of home and one at front of home. 13. Spigots must be plumbed in at first floor elevation to be run to bottom of pilings. 14. Mechanical hard pipe gas line run from under house up wall to attic space for gas furnace. 15. Mechanical hard pipe gas line plumbed in for kitchen - gas stove/range and instant HWH.

Electrical 1. 200 Amp Service - 40 Slot square D Panel or similar approved at first floor elevation. 2. Coax and cat five runs. 3. 110 VAC electric services run to front and back of home at elevation. Dropped at Base Flood Elevation. 4. 30 A and 110 VAC service run to cantilevered floor joist for condenser platform. 5. Extra Electrical conduit run from meter location to electric panel for solar power.

55

56

6. Electric outlet run at first floor elevation outside all exterior doors. 7. Dedicated outlet in bedroom for wheelchair power/recharge. 8. Dedicated outlet for pressure reducing mattress. 9. Electrical requirements for lift as needed. 10. Provide and install heat tape/trace and outlets. 11. TV/phone jacks, locations to be confirmed with Rebuilding Union Beach and homeowner.

Lift 1. Provide and install Savaria PAL 144 vertical hydraulic wheelchair lift. 2. 8” CMU elevator shaft under house parged and painted on exterior. 3. Fully enclosed fire rated gypsum chase from first floor to ceiling. 4. Provide concrete platform, wiring, doors, and flood vents. 5. Lift package includes outlets/lines/breakers as required as well as a wall-mounted light fixture above the door and another at the top of the shaft.

Appliances 1. Provide and install white, Energy Star appliances. Front-loaded washer/dryer and side-by-side fridge/freezer, electric built-in oven, gas cooktop, dishwasher, and countertop microwave.

Lighting 1. Exterior light fixtures as per approved. 2. Ceiling fan boxes in living room and bedrooms. 3. One light fixture adjacent to each exterior door. 4. One light fixture within lift shaft. 5. Four light fixture underneath home including at entry of lift shaft. 6. Light bulbs shall be warm fluorescent bulbs.

Heating and Cooling 1. Provide and install furnace, gas heat pump system/ac system and condenser, trunk lines, R-8 branch lines, thermostats, flex, boots, and registers. 2. Rinnai RL 75iN Natural Gas tank less water heater, 7.5 GPM or similar. 3. First floor joist cantilevered for 4’w x 3’d condenser platform. 4. Condenser/heat pump “line set” must be run from external condenser platform, through the walls, to attic space. 5. Provide heat trace at pipework below home. 6. Plumbing subcontractor to return to each home and add freon after initial install and commissioning. 7. Laundry room including dryer vent and 240v outlet.

UTILITY CHECK LISTDemolition ● It is the homeowner’s responsibility to obtain letters of disconnection from Jersey Central Power & Light (JCP&L), NJ Natural Gas, and American Water.

● It is the homeowner’s responsibility to obtain a letter of “No Interest” from Bayshore Regional Sewer Authority to waive the $7,000 reconnection fee. The sewer should be properly cut and capped prior to demolition.

● Phone and cable connections must be removed prior to demolition and may be removed by the phone or cable company, the demolition contractor, or the homeowner. No letter is necessary.

Delivery● Route: Map route using Google Maps driving directions and save as a PDF. Photograph obstacles and record in a spreadsheet or a BatchGeo map.

● Parking: Notify all residents in writing delivered to their mailbox whose parking will be affected. Parking signs must be posted at the jobsite and along the delivery route.

● Jersey Central Power & Light (JCP&L) is the overhead utility and requires the most notice and coordination to schedule line drops during delivery.

● JCP&L requires delivery and rain date to be scheduled six weeks in advance. Rain dates should not be scheduled on days other deliveries are scheduled.

● JCP&L work hours generally begin at 9am. Other utilities offer earlier start times.

● Customers whose power will be out for the day must be notified by written notice by certified mail, regular mail, and hand delivery. Be sure to investigate LifeLine clients and determine whether service is still required. If not, the resident must notify JCP&L.

● Police Coordination: Notify the police department at the police window in Borough Hall. On the day of delivery, phone the dispatcher when the truck is ready to leave the staging area. If the delivery route is complicated, an officer will need to be hired to accompany the delivery trucks as well as manage traffic flow if streets need to be closed. This must be arranged in advance.

● Cablevision: Cablevision is flexible.

● Verizon: Address billing ahead of time.

● Union Beach Department of Public Works will remove obstacles like stop signs and fences. Provide as much notice as possible and detailed instructions in writing.

Reconnection● JCP&L: We can assist the contractor and building department with sending cut-in cards, inspections, and reconnections. Confirm meter heights and locations, as rules change with new base-flood-elevation.

● NJ Natural Gas: The contractor must pay a $100 reconnection fee as soon as possible to avoid the homeowner receiving collection notices. Comply with clearance standards for gas meters to avoid conflicts with walkways and landscaping. Meters may not be located underneath a staircase. Installation and connection of meters may take up to 8 weeks. Notify as soon as piles/ foundation is completed.

● American Water: The homeowner must phone the main phone number to request reconnection. The homeowner must agree to waive liability so that the installation can happen when they’re not home. The contractor must ensure that all water connections are off.

● BRSA: The contractor must find the sewer line and connect to it. The Borough Engineer should have these locations mapped.

57

These agreement forms outline and explain the roles, responsibilities, and terms of the grants, and provide important protections for all stakeholders.

59 Homeowner/Municipality Agreement 65 Homeowner/Escrow Agreement 71 Homeowner/Manufacturer/Contractor Agreement 94 Homeowner/Manufacturer Agreement123 Homeowner/Contractor Agreement

LEGAL AGREEMENTS

58

Disclaimer:These documents are for information purposes only and are not offered as legal advice on any particular matter or in any particular jurisdiction. As the results of any legal matter may vary depending upon specific facts and applicable law, no reader should act on the basis of any matter contained in these documents without seeking appropriate professional advice as to the particular facts and applicable law involved. These forms are not a substitute for the advice of a licensed attorney. Legal advice of any nature should be sought from competent, independent legal counsel in the relevant jurisdiction. Absolutely no warranties, express or implied, are made regarding the suitability of these forms for any particular purpose.

59

REPLACEMENT HOUSE PROJECT AGREEMENT

THIS REPLACEMENT HOUSE PROJECT AGREEMENT is made and entered into

as of the «Day» day of «Month», 2014, between «Name__Homeowner» (“Owner”) whose address is «Number» «Street», Union Beach, New Jersey 07735, and The Borough of Union Beach, New Jersey, a body corporate and politic of the State of New Jersey and having an address at Borough Hall, 650 Poole Avenue, Union Beach, New Jersey 07735 (“Union Beach” or “Project Coordinator”) and Princeton Area Community Foundation whose address is 15 Princess Road, Lawrenceville, New Jersey 08648 (“PACF” or “Fiscal Sponsor”). Hereinafter, this Replacement House Project Agreement is the “Replacement Project Agreement”)

RECITALS

A. On October 29, 2012, Superstorm Sandy (the “Storm”) severely damaged or destroyed hundreds of homes in the Borough of Union Beach, Monmouth County, New Jersey. The Storm was declared “qualified disaster” as defined in 26 USC 139 (c) 2.

B. Among its many efforts to assist Storm damaged residents, Union Beach designed a prototype program to assist a limited number of volunteer owner participants, not to exceed fifteen (15) participant homeowners, (“Participants”), in the replacement of their primary residences in Union Beach. The program is known as the Union Beach Replacement House Pilot Project (“Replacement Project”). The Replacement Project is intended as a prototype model for residential recovery following future weather related catastrophes.

C. Union Beach, as Project Coordinator, will assist Participants in the replacement of their destroyed houses with a manufactured, prefabricated replacement house (“Replacement House”), and, to the extent funds are available, will assist Participants with site landscaping and limited furnishings.

D. Under the Replacement Project, Union Beach will administer and apply to the cost of each Participant’s Replacement House, the Storm related funds paid to Participants by FEMA’s Increased Cost of Compliance Coverage (“ICC”), hazard and flood insurance payments (either paid or owed to, each Participant), and in certain cases, the net proceeds of a Participant’s new mortgage financing. Each such individual Participant’s FEMA, ICC and insurance payments, together with personal funds are referenced herein as “Owner Funds”.

E. Union Beach, as Project Coordinator, will further administer and apply grant funds (collectively the “Grant Funds”) deposited with PACF by the Hurricane Sandy New Jersey Relief Fund, (“HSNJRF”) and the Robin Hood Foundation (“RHF”) pursuant to grant agreements between each funder, PACF and the Project Coordinator, (the HSNJRF Agreement dated June 25, 2013 and the RHF Agreement dated December 5, 2013) (collectively, the “Grant Agreements”).

F. The Grant Agreements provide that PACF will act as the fiscal sponsor (“Fiscal Sponsor”) for Union Beach to implement the Replacement Project Agreement. PACF will hold all Grant Funds received from HSNJRF and RHF and will disburse the Grant Funds as directed

60

by the Project Coordinator.

G. Each Participant will enter into i) a Replacement Project Agreement substantially similar to this Agreement, ii) one or more contracts for the manufacture and installation of a Replacement House on the Participant’s property (“Construction Contract”), and in certain cases, iii) a Project Escrow Agreement with the Project Coordinator (“Owner Project Escrow Agreement”). H. The cost of each Replacement House is the Construction Contract price (“Costs”) that will be paid with Participant Owner Funds and Grant Funds, as set forth in the “Contribution Responsibility and Payment Schedule” (“Contribution Schedule”) appended to each Participant’s Replacement Project Agreement. The selection of the particular Replacement home model and the amounts of Participant’s Owner Funds and Grant Funds applied to pay the Costs of each Participant’s Replacement House vary in accordance with individual Participant circumstances. The Grant Funds applied to and listed in a Participant’s Contribution Schedule are referenced herein as “Owner Grant Funds.” I. The Project Coordinator will hold, maintain and administer Participant Owner Funds in a non-interest bearing “Project Escrow Account”. The Project Coordinator will maintain separate ledger accounts for each Participant (each such account, a Participant’s “Owner Escrow Account”) within the Project Escrow Account. The Project Coordinator will pay the Costs associated with each Replacement House from the respective Participant’s Owner Escrow Account in accordance with the Participant’s Replacement Project Agreement and the Owner Project Escrow Agreement, a copy of which is annexed hereto as Exhibit B(2). J. Following the exhaustion of Owner Funds and in accordance with the Contribution Schedule, the Project Coordinator will direct PACF to make Grant Funds available and pay costs of the Construction Contract in accordance with the Contribution Schedule.

K. The Project Coordinator will administratively assist the Participants and the Contractors from the date hereof and until the issuance of a final Certificate of Occupancy for the Replacement House (the “Project Period”). NOW, THEREFORE, in consideration of the mutual promises and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Owner and Union Beach agree as follows:

Section 1: The Replacement House 1.1 Property. Owner is a resident homeowner of certain real property located at «Number» «Street», Union Beach, New Jersey, 07735, with a tax map reference of Block «Block», Lot «Lot» in the Borough of Union Beach, Monmouth County, New Jersey (the “Property”). Owner represents that the Property is a single family residence which prior to the Storm, was occupied by Owner as Owner’s primary residence. Owner is a Replacement Project Participant.

61

1.2 Construction Contract. Owner executes this Replacement Project Agreement having entered into, or in anticipation of entering into, a Construction Contract with «ManufacturerContractor» for the delivery, installation and construction of a Replacement House at the Property, in accordance with terms and specifications contained therein (“Construction Contract”) . The Replacement House is Model «Model». A copy of the Owner’s Construction Contract is annexed hereto as Exhibit A.

1.3 Replacement House. The Owner acknowledges and agrees that: the Manufacturer, Contractor and Model «Model» recited in Paragraph 1.2 has been selected in consultation between the Project Coordinator and the Owner and that Owner performed its own due diligence with regard to the Replacement House to be constructed at Owner’s Property. Owner further acknowledges and agrees that i) Owner has voluntarily accepted the Replacement House referenced in Paragraph 1.2 hereof as the Owner’s Replacement House; ii) other Participants may be eligible for different Replacement House models; iii) other Participants may be required to contribute different amounts of Participant Owner Funds and iv) other Participants may receive varying amounts of Grant Funds. 1.4 No Representations or Warranties. Owner acknowledges and agrees that the Project Coordinator and PACF make no representation, guaranty or warranty to the Owner, express or implied, with respect to the selection of the Manufacturer and Contractor, nor as to the quality of materials or workmanship. All representations, guarantees, and warranties extended to Owner are extended solely and exclusively by the Manufacturer and Contractor as provided in the Construction Contract or pursuant to the warranties extended by the manufacturers of materials and appliances included therein. Owner shall make no claim against Project Coordinator and PACF and any claim made by Owner shall be made only against said Manufacturer or Contractors pursuant to the Owner’s individual Construction Contract. Owner acknowledges and agrees that Owner relies solely on its own due diligence and on any representations and warranties as to quality and workmanship that may be contained in the Construction Contract. This Paragraph 1.4 shall survive the completion or termination of this Replacement Project Agreement. 1.5 Right of Entry. Owner grants the Project Coordinator, its agents and invitees, reasonable rights of entry and access to inspect the Property during the Project Period. In exercising such right of entry, the Project Coordinator, its agents and invitees, will not unreasonably interfere with the Manufacturer’s or Contractor’s construction activities at the Property. Section 2: Costs, Source of Funds, Payment, Repayments and Credits 2.1 Replacement House Contract. Costs are equal to the contract price as set forth in the Construction Contract annexed hereto as Exhibit A. 2.2 Payment Schedule. The Construction Contract will be paid by the Owner and Project Coordinator in conjunction with PACF, in accordance with the terms thereof, and in accordance with the Contribution Schedule, annexed hereto as Exhibit B.

62

2.3 Owner’s Contribution Responsibility. Owner acknowledges and agrees that the Contribution Schedule specifies the source and amount of funds to be paid by, or on behalf of, Owner in an amount equal to the Costs set forth in the Construction Contract. Owner represents that the Owner Funds identified on the Contribution Schedule accurately reflect the total of all the Storm related proceeds paid or expected to be paid to Owner, to the extent such proceeds are required to be contributed by Owner. Owner represents that Owner will promptly deposit into its Owner Escrow Account the Owner Funds now in its possession, as set forth in the Contribution Schedule, and will promptly deposit any other Owner Funds hereinafter coming into Owner’s possession into its Owner Escrow Account. The requirement in the immediately preceding sentence shall survive the completion of the Replacement Project until the one year anniversary of the issuance of the Certificate of Occupancy for the Property. 2.4 Order of Payment of Costs: Owner Funds, Owner Grant Funds, Delayed Funds. Owner agrees that Owner Funds will be applied first to pay Costs of the Construction Contract. Owner Grant Funds as set forth in the Contribution Schedule will be applied to Costs after Owner Funds are exhausted. Where a portion of the Owner Funds are unpaid to Owner and therefore are anticipated to be unavailable for the payment of Costs, (as where Owner Funds have been withheld by a lender, insurance company or government agency) or where Owner Funds are otherwise unpaid due to circumstances beyond Owner’s reasonable control, Owner agrees to promptly notify the Project Coordinator and to permit the Project Coordinator to assist to the fullest extent possible in obtaining payment of such delayed funds (“Delayed Funds”). Delayed Funds include, but are not limited to, Storm related insurance payments and awards, including any increases to insurance awards received as the result of an appeal, or insurance and other payments withheld by an existing mortgage lender pending repair and reconstruction of the Property, as well as ICC, and other Storm related, grants or reimbursements unpaid as of the date of this Replacement Project Agreement. Notwithstanding anything to the contrary, Owner shall be solely responsible for Delayed Funds. Neither Project Coordinator nor PACF can contribute to the Replacement House any amount beyond the amount of Owner Grant Funds listed on the Contribution Schedule. 2.4.1 Repayment of Grant Funds. Except as set forth in Paragraphs 2.4.4 and Paragraph 3.5 hereof, Owner will not be obligated to repay Owner Grant Funds applied to pay the Costs, following the exhaustion of Owner Funds. The amount of Owner Grant Funds anticipated by the parties to be required by Owner to meet Costs is identified on the Contribution Schedule. 2.4.2 Modification of Contribution Responsibility. To the extent Grant Funds are available, Owner’s Contribution Schedule may be modified by agreement of the Owner, Project Coordinator and PACF to adjust the proportional distribution of total costs between Owner Funds and Owner Grant Funds, where grant, insurance and other relief funds expected to be paid to Owner as of the date of this Project Agreement are decreased, paid incrementally, are Delayed or are not paid. In the event that the amount of Owner Funds are increased beyond that expected as of the date of this Project Agreement, such increase shall be applied to Costs as Owner Funds and Owner Grant Funds required for the payment of Costs shall be reduced accordingly.

63

2.4.3 Mortgage. i) Existing Mortgage. Owner represents that the Property is encumbered by a mortgage to «Mortgage_Lender» (“Existing Lender”) and that the Property was encumbered with this mortgage indebtedness as of the date of the Storm (except as reduced by monthly mortgage payments made since the Storm) (“Existing Loan”). Owner represents that as of this date all currently due mortgage payments, including escrows for property taxes and insurance have been made, except as set forth in Exhibit C, Disclosure Schedule. ii) Mortgage Indebtedness Altered by Paydown or Payoff. If the principal of any mortgage outstanding as of the date of the Storm was repaid in part or in full with insurance payments or other Storm related funds that were made available to Owner and such funds would have constituted “Owner Funds” as defined herein, Owner agrees that it will refinance or obtain additional mortgage financing such that the total principal amount of mortgage financing outstanding equals not less that the principal amount outstanding as of the date of the Storm (less the principal amount of any monthly mortgage payments made since the Storm). Owner may not enter into a Construction Contract until a binding commitment for the refinance or additional financing is obtained or until Owner otherwise secures such additional funds. iii.) Mortgage Penalties, Fees and Other Costs. Owner shall not be required to replace or reimburse any Storm related payments otherwise considered Owner Funds that were involuntarily charged to Owner by a lender as a penalty, fee or cost incurred by a lender to secure, repair or maintain the Property as a result of the Storm.

2.4.5 Lender Cooperation / Refinance: Owner covenants and agrees to use reasonable efforts to obtain the release of insurance payments or other Storm related funds held by Owner’s Existing Lender or held by a Reduced Mortgage Lender. Owner will permit the Project Coordinator to assist Owner in such efforts and will provide the Project Coordinator with any documentation required by such Lender for the release of such funds defined by this Replacement Project Agreement as Owner Funds. Should any Lender continue to withhold such funds or to withhold consents that may be required to proceed with the Construction Contract or in any way unreasonably delay or prevent the Construction Contract from proceeding by its terms, Owner agrees to apply for a commitment to refinance its mortgage with another lender with the assistance of the Project Coordinator. Project Coordinator shall have the right to terminate this Replacement Project Agreement and the grant awarded if Owner is unable to reach resolution with its lender or refinance its mortgage on or before February 1, 2015. 2.4.6 Resettlement Grant. Owner has applied for / has [not] received a grant from the New Jersey Department of Community Affairs Homeowner Resettlement Program in the amount of $«Resettlement_Funds» (“Resettlement Funds”). Owner is not required to contribute Resettlement Funds towards the Contribution Schedule to pay Costs. If Owner has not received Resettlement Funds to date, Owner may withhold up to $5,000.00 from Owner’s flood or homeowners structure insurance proceeds from Owners Contribution to recompense Owner for living expenses incurred since the Storm. If Owner later receives Resettlement Funds, Owner agrees to deposit such Resettlement Funds into the Owners Escrow Account as Owners Funds

64

for payment of Costs, in an amount equal to the lesser of (i) the Resettlement Funds received and (ii) the amount previously withheld by Owner as provided in this Section 2.4.6. 2.4.7 Owner Waiver of RREM and Other Benefits. Owner acknowledges and agrees that the acceptance of PACF Grant Funds, pursuant to this Project Agreement may disqualify Owner from a Rehabilitation, Reconstruction, Elevation Mitigation (“RREM”) Grant of up to $150,000.00. The RREM Grant prohibits duplication of benefits and takes into account funds received by Owner from insurance, SBA, and any other private or philanthropic assistance. Section 3: Owner’s Representations 3.1 Title: Owner represents to the best of Owner’s knowledge, that except as set forth on Exhibit C, i) Owner alone holds fee title to the Property; ii) there are no liens (including liens for unpaid taxes, sewer or water charges) or judgments against the Property other than the existing mortgage(s) listed on Exhibit C; and iii) Owner is unaware of any foreclosure or threat of foreclosure or of other pending litigation or threat thereof. 3.2 Credit and Financial Status: Except as set forth in Exhibit C, Owner represents that there has been no material change in Owner’s credit rating, employment, marital or financial status since the date Owner was accepted as a Participant in the Replacement Project. 3.3 Insurance. Owner represents and agrees to keep the Property insured as set forth in Exhibit D. Owner will ensure that its Construction Contract includes the following provisions: a. the Manufacturer and Contractor will indemnify and defend each Indemnified Party (as defined below) for all third party claims related to such party’s participation in the Project; b. the Manufacturer and Contractor will maintain the insurance required by the terms of the Construction Contract throughout the Project; c. the Manufacturer and Contractor will name each Indemnified Party as an additional insured on their respective vehicle and general liability policies. For purposes of this Project Agreement, the term “Indemnified Party” shall mean each of Union Beach, PACF, HSNJRF, RHF and any other funder to the Project as requested by Union Beach. Any Indemnified Party who is not a party to this Replacement Project Agreement is considered to be a third party beneficiary for purposes of this provision. 3.4 Waiver and Release of Claims. Owner hereby waives and releases Union Beach, PACF, HSNJRF and RHF from any and all claims that Owner may have, now or in the future, for liability arising as a result of the Replacement Project, except for the gross negligence or willful misconduct of Union Beach, PACF, HSNJRF and RHF, for which only the offending party or parties will be solely responsible. This Paragraph 3.4 shall survive the completion or termination of the Replacement Project Agreement.

65

3.5 Repayment of Grant Funds Upon Sale. In the event that the Owner sells the Property to a third party, who is not an immediate family member, before January 1, 2017, Owner agrees to remit to Union Beach a portion of the net proceeds from such sale, determined as follows: In the event Owner sells the Property before January 1, 2017, Owner shall reimburse the Project Coordinator the lesser of (i) the fraction of Owner Grant Funds where the numerator is equal to 36 months minus the number of full calendar months elapsed since January 1, 2014 and the denominator is 36, and (ii) the Net Sale Proceeds (as defined below) (the “Repayment”) Net Sale Proceeds are calculated as the gross sale price for the Property less the Owner Funds, any customary taxes, filing fees, closing costs and mortgage payoff and other liens. No out of pocket funds will be due from Owner to satisfy the Repayment. The Owner agrees to record this restriction in the County Clerk’s Office if requested by the Project Coordinator. This Paragraph 3.5 shall survive the completion or termination of this Replacement Project Agreement. 3.6 Accessibility, Condition and Media. Owner agrees that for a period of one year from the date of the issuance of Certificate of Occupancy, Owner will: i) maintain and keep the yard and grounds and landscaping of the Property maintained, cut, watered and free of trash; ii) perform necessary repairs and maintenance to the Replacement House to maintain it in good condition and representative of the community; iii) make no material structural changes to the interior or exterior of the Replacement House; iv) refrain from smoking inside the Replacement House for a period of one year; v) make the Replacement House available, clean and uncluttered, on Open House days to be scheduled no more than twelve (12) times for a period of one year; vi) not unreasonably withhold permission to use of photographs of the Replacement House and use the photographs with the Replacement Project Team for media and promotional purposes; and vii) insure the Property for replacement value for a period of three years following the issuance of Final Certificate of Occupancy. This Paragraph 3.6 shall survive the completion or termination of this Replacement Project Agreement, until the one year anniversary of the issuance of the Certificate of Occupancy for the Property. 3.6.1 Open Houses. As used in Paragraph 3.6 hereof, an “Open House” shall mean an event organized by the Project Coordinator for the benefit of Union Beach, PACF, HSNJRF and RHF for purposes of publicizing the Replacement Project program or in connection with providing guidance for other similar relief projects. An Open House shall be scheduled with reasonable advance notice and with the reasonable agreement of Owner and Project Coordinator which will permit Owner to be present during the Open House. Project Coordinator will take reasonable steps to insure the safety, security of Owner and Owner’s Property and the cleanliness of Owner’s Property. 3.6.2 Additional Structures. Owner agrees not to apply for or obtain a building permit for the Property other than for those required for the Construction Contract, until such time as a Final Certificate of Occupancy is issued for the Replacement House. No building additions or accessory structures such as, but not limited to, garage, shed, deck or fence will be constructed as part of the Construction Contract, and no PACF Grant Funds may be applied to same. Notwithstanding the foregoing, following the issuance of a temporary Certificate of Occupancy on the Replacement House, Owner may, individually, and at Owner’s sole cost and expense, add a deck and deck access to the Replacement House, subject to the requirements of

66

the Union Beach Land Use Ordinance and the issuance of required building permits. Except as set forth in Paragraph 3.6 (iii) and following the issuance of a Final Certificate of Occupancy, Owner may individually, and at Owner’s sole cost and expense, erect such additions or accessory structures as are permitted by the Union Beach Land Use Ordinance, and pursuant to the issuance of building permits. 3.7 Acceptance of Replacement Project Scope. Owner acknowledges and agrees that the Owner is a volunteer Participant who is in not required in any way to enter into this Replacement Project Agreement. Owner further acknowledges and agrees that Grant Funds are funds donated to reimburse Owner for the expenses incurred for the rehabilitation of Owner’s personal residence resulting for the Storm. Owner also acknowledges and agrees that other Participants may receive Grant Funds under other Replacement Project Agreements in different amounts and proportions to those donated on Owner’s behalf. Owner acknowledges, agrees and waives the right to assert any claim to additional Grant Funds other than to the Grant Funds set forth on Owner’s Contribution Schedule. This Paragraph 3.7 shall survive the completion or termination of this Replacement Project Agreement. Section 4: Replacement Project Coordinator Obligations 4.1 Replacement Project Coordinator Responsibilities. The Project Coordinator agrees to: i) act as a liaison between Owner, Manufacturer and Contractor during construction and through the issuance of a final Certificate of Occupancy; ii) assist the Owner to coordinate access and site work between the Owner and Borough Officials to the extent reasonably required by the Manufacturer or Contractor; iii) assist and cooperate in the scheduling of building inspections by Union Beach building code and building sub code officials as required to maintain the prompt and timely completion of the Replacement House; iv) advise and assist the Owner with the application and processing of other eligible grant funds (ICC, insurance, etc.) and other funds that may be available to pay the Costs of the Construction Contract; v) open and maintain Owner Escrow Account, make Owner Escrow Account statements available for inspection by Owner, pay invoices when due and in accordance with the Contribution Schedule and the Construction Contract, account and keep accurate records, and routinely consult with Owner regarding the expenditure of all funds in Owner Escrow Account; vi) direct PACF to provide Grant Funds as required to meet invoices when due; vii) assist the Owner with issues and requirements related to release of insurance proceeds held by Owner Lender; viii) advise and assist Owner on any mortgage lender issues and requirements; including assistance with a refinance or a construction mortgage where required or desirable; and ix) upon completion of the Owner Construction Contract, provide a final accounting of the Owner Escrow Account, including the reimbursement or release of any excess Owner Funds to Owner. 4.2 Owner Grant Funds. The Owner Grant Funds set forth on the Contribution Schedule are hereby granted to Owner for the purposes of replacing Owner’s home as provided herein pursuant to the Replacement Project. Any Owner Grant Funds remaining after payment in full of costs shall remain the property of PACF and Owner shall have no claim to such funds. 4.3 PACF Responsibilities. As Fiscal Sponsor, PACF represents and agrees that it will review and act upon the Project Coordinator’s direction for Grant Funds and will make

67

payments towards Costs in a timely manner as directed by the Project Coordinator and in accordance with the Contribution Schedule and Construction Contract. Section 5: Miscellaneous 5.1 Exhibits; Entire Agreement; Modification. All exhibits attached and referred to in this Replacement Project Agreement are hereby incorporated herein as if fully set forth in and shall be deemed to be a part of this Replacement Project Agreement. This Replacement Project Agreement contains the entire agreement between the parties respecting the matters herein set forth and supersedes any and all prior agreements between the parties hereto respecting such matters. This Replacement Project Agreement may not be modified or amended except by written agreement signed by all parties. 5.2 Time is of the Essence. Time is of the essence with respect to each and every provision of this Replacement Project Agreement.

5.3 Governing Law. This Replacement Project Agreement shall be construed and enforced in accordance with the laws of the State of New Jersey without regard to conflicts of law principles.

5.4 Notices. All notices, requests or other communications which may be or are required to be given, served or sent by either party hereto under this Project Agreement, shall be in writing and must be delivered by personal delivery, by a nationally recognizable overnight delivery service, by certified or registered mail, postage paid, return receipt requested, or sent by email, to the other party as follows:

Owner: «SIGNATURE_1» «SIGNATURE_2» «Number» «Street» Union Beach, New Jersey 07735 Email: «email_address» With a copy to: (List Parties to the Contract) or at such other address as a party has previously designated by written notice given to the other party in the manner set forth above. Any notice, communication, or delivery will be deemed given or made (a) on the date of delivery if delivered in person (or upon the date of attempted delivery where delivery is refused) (b) one Business Day after having been deposited for overnight delivery with any nationally recognized overnight delivery service, or (c) on the third Business Day after it is mailed by registered or certified mail. A notice that is sent by email shall be deemed to be given when sent and received. Attorneys for a party shall be authorized to give

68

notices on behalf of such party. Written adjournments and extensions in time signed by an attorney for a party shall be binding upon that party.

5.5 INTENTIONALLY OMITTED.

5.6 Legal Assistance, Costs and Fees. The Owner represents and agrees that Owner obtained independent advice of counsel in this matter. The parties hereto agree that they shall pay directly any and all legal costs and fees which they incur on their own behalf and that such legal costs and fees shall not be part of the Contribution Schedule.

5.7 No Implied Waivers. Failure by any party to enforce or seek to enforce any provision of this Replacement Project Agreement shall not constitute a waiver or forfeiture of the right to enforce such provision in the future.

5.8 No Recordation. Neither this Replacement Project Agreement nor any memorandum hereof shall be recorded and any attempted recordation hereof shall be void and shall constitute a default hereunder.

5.9 Unenforceability. If any clause, paragraph or portion of this Replacement Project Agreement shall become illegal, null or void for any reason whatsoever, or held by any court of competent jurisdiction to be so or to be unenforceable, the remaining portion of this Replacement Project Agreement shall remain in full force and effect.

5.10 Ambiguity. This Replacement Project Agreement, as a matter of convenience to the parties, was prepared by one or more of the attorneys for the parties. All parties acknowledge and agree that each is represented by legal counsel and that in the event of an ambiguity, such ambiguity shall not be resolved against any party hereto solely on the basis that the Replacement Project Agreement or any portion thereof was prepared by that party’s attorney.

5.11 Additional Documents. The parties shall execute such other documents as may be reasonably necessary to implement and effectuate the terms and conditions of this Replacement Project Agreement.

5.12 Arbitration. Any dispute or claim arising from or relating to this Replacement Project Agreement or performance under it shall be resolved amicably through discussions between Owner and Union Beach attempting in good faith to negotiate a resolution thereof. If the parties fail to resolve any dispute arising under the Replacement Project Agreement any party may seek arbitration as follows: (a) By written notice to the other parties, submitting the dispute to binding arbitration, in accordance with the then-current Expedited Commercial Arbitration Rules under the American Arbitration Association (“AAA”), each party to bear equally the costs of the arbitration, provided, however, that the other parties may agree or refuse to participate in such arbitration; (b) If the parties are not successful in resolving the dispute through self-help or one of the parties refuses to participate in arbitration, the dispute shall be resolved by litigation. In any and all events, whether in arbitration or litigation, Union Beach shall defend and hold PACF harmless, except for PACF’s willful acts or gross negligence. 5.13 Confidentiality. The individual Owner Replacement Project Agreements including all Exhibits thereto, and the Owner Escrow Agreement will be maintained by the

69

Project Coordinator as private, confidential information in which the Participant Owner has a reasonable expectation of privacy, and that these documents are not subject to requests by the public pursuant to the New Jersey Open Public Records Act, N.J.S.A. 47:1A-1.

[Signatures on following page]

70

IN WITNESS WHEREOF, the parties hereto have executed this Replacement Project Agreement as of the date first above written.

OWNER

«SIGNATURE_1»

By; «SIGNATURE_2»

Witness: Name:

By:___________________________

BOROUGH OF UNION BEACH

Witness:

Name:

By: Name: Jennifer W. Maier, Title: Borough Administrator Borough of Union Beach

Witness: Name:

PRINCETON AREA COMMUNITY FOUNDATION

By:_______________________ Witness: _________________ Name: Nancy W. Kieling Name:________________________ Title: President, Fiscal Sponsor

71

EXHIBIT A

Construction Contract

72

EXHIBIT B(1)

Contribution Responsibility and Payment Schedule

(Attach)

73

EXHIBIT B(2)

OWNER PROJECT ESCROW AGREEMENT

74

EXHIBIT C Disclosure Schedule

2.4.2 Existing Mortgage (s)

3.1 Title / Existing Mortgage(s)

3.2 Credit and Financial Status

75

Exhibit D

Owner Insurance Requirements

Prior to the transfer of title of the Replacement House to Owner, Owner shall maintain a general liability insurance policy with reasonable coverage limits. Upon and after title to Owner’s Replacement House transfers to Owner, Owner shall maintain liability insurance with a reasonable coverage limit and property coverage written on a replacement cost basis. In addition, Owners in designated flood zones must maintain flood insurance in accordance with FEMA guidelines.

76

OWNER PROJECT ESCROW AGREEMENT

THIS OWNER PROJECT ESCROW AGREEMENT ("Escrow Agreement") is made the «Day» day of «Month», 2014, by and among «Name__Homeowner» (“Owner”), the Borough of Union Beach ("Escrow Agent") and Princeton Area Community Foundation (“PACF” or “Fiscal Sponsor”).1

RECITALS: A. On October 29, 2012, Superstorm Sandy (the “Storm”) severely damaged or destroyed hundreds of homes in the Borough of Union Beach, Monmouth County, New Jersey. The Storm was declared “qualified disaster” as defined in 26 USC 139 (c) 2

B. Among its many efforts to assist Storm damaged residents, Union Beach designed a prototype program to assist a limited number of volunteer owner participants, not to exceed fifteen (15) participant homeowners, (“Participants”), in the replacement of their primary residences in Union Beach. The program is known as the Union Beach Replacement House Pilot Project (“Replacement Project”). Escrow Agent is the Project Coordinator of the Replacement Project.

C. Hurricane Sandy New Jersey Relief Fund, (“HSNJRF”) and the Robin Hood Foundation (“RHF”) have donated certain grant funds to the Replacement Project pursuant to grant agreements between each of HSNJRF and RHF, PACF and the Project Coordinator, (the HSNJRF Agreement is dated June 25, 2013, and the RHF Agreement is dated December 5, 2013 (collectively, “Grant Agreements”). The funds donated by HSNJRF and RHF are collectively referred to as “Grant Funds”. The Grant Funds awarded to Owner have been deposited with PACF as the Fiscal Sponsor for the Project Coordinator. The Grant Agreements provide that the Fiscal Sponsor will hold the Grant Funds received from HSNJRF and RHF and will disburse the Grant Funds towards the cost of each Participant’s Replacement House as directed by the Project Coordinator.

D. The cost of each Replacement House is the cost associated with the Construction Contract (“Costs”) that will be paid with Owner Funds and Grant Funds, as set forth in the “Contribution Responsibility and Payment Schedule” (“Contribution Schedule”) appended as Exhibit B(1) to each Participant’s Replacement Project Agreement. The Grant Funds applied to and listed in a Participant’s Contribution Schedule are referenced herein as “Owner Grant Funds.”

E. The Escrow Agent will hold, maintain and administer each Participant’s Owner Funds in a non interest bearing “Project Escrow Account”. The Project Coordinator will maintain separate ledger accounts for each Participant (each such account, a Participant’s “Owner Escrow Account”) within the Project Escrow Account. The Project Coordinator will pay the Costs associated with each Construction Contract from the respective Participant’s Owner Escrow

1 All terms defined herein are the same as those defined in the Replacement House Project Agreement. In the event of any inconsistency in the definitions or use of defined terms in either this Escrow Agreement or the Replacement House Project Agreement, the meaning shall be determined as used and defined in the later Agreement.

77

Account in accordance with that Participant’s Owner Replacement Project Agreement and Escrow Agreement. F. Following the exhaustion of each Participant’s Owner Funds and in accordance with their Contribution Schedule, the Project Coordinator will direct PACF to make Owner Grant Funds available to pay Costs of the Construction Contract in accordance with each such Contribution Schedule.

G. Owner is a Replacement Project Participant. Owner has entered into i) a Replacement Project Agreement (“Replacement Project Agreement”) with the Project Coordinator and PACF, and ii) a Construction Contract for the manufacture and installation of a Replacement House. Owner will contribute Owner Funds, as defined in the Replacement Project Agreement, towards the cost of Owner’s Replacement House. H. Pursuant to Exhibit B(1) of the Replacement Project Agreement, Owner has agreed to deposit / has deposited the sum of «Dollar_Amount__in_words» ($«M__Amount__XXXXXX») of Owner Funds with the Escrow Agent to be held in Owner’s Escrow Account pursuant to the terms of this Escrow Agreement. Owner and Escrow Agent have agreed that the Owner’s Funds be held in an Escrow Account by the Escrow Agent, pursuant to the terms of the Replacement Project Agreement, to be paid out on Owner’s behalf in accordance with the Payment Schedule set forth in the Construction Contract. Escrow Agent agrees to act on behalf of Owner and in consultation with Owner and PACF in accordance with the Construction Contract, the Replacement Project Agreement and the terms of this Escrow Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and contained in the Contract, and for other good and valuable consideration, the receipt of which is hereby acknowledged, it is agreed:

1. Deposit in Escrow.

Owner and Escrow Agent agree that Owner’s Funds shall be held in escrow by Escrow Agent, in a non interest bearing trust account with Provident Bank. Owner agrees that Owners Funds will be deposited in one Escrow Account with the funds of other owner Participants in the Project, and that the Escrow Agent will maintain individual owner account ledgers of each Participant, including Owner.

78

2. Rights and Duties of Parties.

2.1 The duties of the Escrow Agent shall be:

(a) to pay the costs and expenses incurred under the Owner’s Construction Contract in accordance with the Contribution Schedule appended as Exhibit B(1) to the Owner’s Replacement Project Agreement as and when due and owing under the Owner’s Construction Contract; and

(b) the Escrow Agent shall account for the expenditure of Owner’s

Escrowed Funds on a monthly basis by the 10th of the month. 2.2 The duties of PACF are: (a) upon the request of the Project Coordinator, to promptly pay and apply

the Owner Grant Funds required to satisfy Owner’s obligations under the Construction Contract and Replacement Project Agreement, upon the exhaustion of Owner’s Funds and in accordance with the Contribution Schedule;

(b) to review the Escrow Agent’s monthly accounting in accordance with the

Grant Agreements; and (c) to consult with the Project Coordinator to resolve any issue. 2.3 The duties of the Owner are: (a) to promptly deposit the Owner’s Funds as required under the

Replacement Project Agreement and this Escrow Agreement and to promptly deposit Owner’s Delayed Funds as same become accessible;

(b) to keep the Escrow Agent and Project Coordinator advised of the source,

amount and receipt of Owner’s Funds and Delayed Funds, as they are defined in the Replacement Project Agreement and this Escrow Agreement, from all sources; and

(c) to consult and cooperate with the Escrow Agent, Project Coordinator and

PACF regarding the payment of costs and expenses associated with Owner’s Replacement Project Agreement and Construction Contract with Owner’s Escrowed Funds.

3. Payment Procedure

3.1 The Project Coordinator shall provide written notice to the Escrow Agent, PACF and the Owner, stating that Owner’s Escrowed Funds are required to pay the invoices of the Replacement Project Agreement then due and owing. The notice shall (i) be delivered to the Escrow Agent no less than five (5) business days prior to the payment due date; and (ii) shall include all appropriate documentation for Escrow Agent, PACF and the Owner to determine that the invoices shall be satisfied upon payment.

79

3.2 If the amount of invoices coming due exceed the Owner’s Funds, the notice to the Escrow Agent shall also be accompanied by a request from the Project Coordinator that PACF provide Grant Funds sufficient, along with Owner’s Funds, to pay the invoices then due and payable. Where both Owner’s Funds and Grant Funds are required to pay an invoice coming due, the Escrow Agent shall pay the Owner’s Funds as are available and any remaining amount due shall be paid by PACF with Grant Funds, such that the combination of Owner’s Funds and Grant Funds satisfies the total amount due. In no event shall Owner’s Funds and Grant Funds be combined in either of the Escrow Account or the PACF account to pay invoices.

3.3 Copies of the Escrow Agent’s or PACF’s transmittal of such payments shall be delivered to each of the Project Coordinator, PACF, Escrow Agent and Owner as applicable.

3.4 The balance of the Owner’s Funds, if any, remaining after the payment of all invoices shall be refunded to the Owner.

4. Dispute Resolution, Indemnification

4.1 In the event a dispute arises over the application of the Owner’s Funds (including Delayed Funds), the Escrow Agent and PACF are hereby authorized to deposit all such funds remaining with a court of competent jurisdiction and to abide by the judgment thereof. The parties consent to the jurisdiction of the state and federal courts in the State of New Jersey with respect to any dispute hereunder. The parties agree that the Escrow Agent shall be permitted to also act as Project Coordinator hereunder, and all parties hereby consent to such dual role and waive all claims of conflict of interest which they have or may have by reason of the Escrow Agent’s simultaneous role as Project Coordinator.

4.2. The Escrow Agent shall have no duties or responsibilities as escrow agent except those expressly set forth in this Agreement. In the event that the Escrow Agent shall be uncertain as to the duties or rights under this Escrow Agreement or under the Replacement Project Agreement, where Escrow Agent shall receive instructions with respect to the Escrowed Funds from PACF, Owner or Project Coordinator, which, in Escrow Agent’s opinion, are in conflict with any provision of this Escrow Agreement, or the Replacement Project Agreement, the Escrow Agent shall notify the parties of that fact and shall be entitled to refrain from taking any action in accordance with such instructions other than to retain the Escrowed Funds until the Escrow Agent shall have been instructed otherwise in a writing signed by PACF or Owner or by a final order of a court of competent jurisdiction, whichever occurs first.

4.2.1 In the event a dispute arises over the application of the Owner’s Funds, which is not resolved in consultation with the other parties hereto, the Escrow Agent is hereby authorized to deposit the Owner’s Funds with a court of competent jurisdiction and to abide by the judgment thereof. The parties consent to the jurisdiction of the state and federal courts in the State of New Jersey with respect to any dispute hereunder.

80

5. Termination of Escrow Agreement.

This Agreement shall terminate and be of no further force and effect upon the final payment of Costs under the Replacement Project Agreement and Construction Contract, the reimbursement by Owner of Delayed Funds, the payment by Owner of any funds due following payment of the all sums included in the Contribution Schedule, as applicable, and delivery by the Escrow Agent to Owner of the full amount of any remaining Owner’s Funds in accordance with the terms and provisions of this Agreement.

6. Writing Required.

This Agreement may not be amended or changed except in a writing signed by each of the parties hereto.

7. Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document. The parties agree that evidence of execution of this Agreement may be transmitted by electronic means (confirmed facsimile or e mail) to the other party and any party transmitting its executed signature pages of this Agreement by such electronic means, shall be bound thereby.

81

INTENDING TO BE LEGALLY BOUND, this instrument has been executed the day and year first above appearing.

OWNER

«SIGNATURE_1»

By: «SIGNATURE_2»

Witness: Name:

By:___________________________

BOROUGH OF UNION BEACH

Witness:

Name:

By: Name: Jennifer W. Maier, Title: Borough Administrator Borough of Union Beach

Witness: Name:

PRINCETON AREA COMMUNITY FOUNDATION

By:_______________________ Witness: _________________ Name: Nancy W. Kieling Name:________________________ Title: President, Fiscal Sponsor

82

MODULAR HOME CONSTRUCTION AGREEMENT

This Modular Home Construction Agreement (the “Agreement”), made the __ day of

____________, 2014, by and among DSW Homes, LLC, a Texas limited liability company

authorized to do business in New Jersey, having its principal place of business at 1021 61st

Street, Suite 200, Building B, Galveston, TX 77551 (hereinafter referred to as the “Builder”),

Foremost Industries, Inc., having its principal place of business at 2371 Buchanan Trail West,

Greencastle, PA 17225 (hereinafter referred to as the “Manufacturer”), and

___________________, residing at __ _______________, Union Beach, New Jersey 07735,

(hereinafter referred to as the “Owner”):

WITNESSETH:

WHEREAS, Owner is the owner of certain premises situated at __ ___________, Union

Beach, New Jersey 07735, as more particularly described as attached hereto on Exhibit A (the

“Premises”);

WHEREAS, the Premises is a part of a program implemented by the Borough of Union

Beach, Monmouth County, New Jersey (the “Project Coordinator”) to assist residents whose

homes were damaged in Superstorm Sandy. The program is known as the Union Beach

Replacement House Pilot Project (“Replacement Project”);

WHEREAS, as the Replacement Project involves the Project Coordinator assisting the

Owner with the replacement of its destroyed home with a single-family, manufactured,

prefabricated replacement house (the “Home”);

WHEREAS, the Owner has, or will enter into an escrow agreement with the Project

Coordinator, by which the Project Coordinator will hold in a non-interest bearing account (the

“Project Escrow Account”): (i) funds paid to Owner by Federal Emergency Management

83

Agency, (ii) any hazard and flood insurance payments paid to Owner, and (iii) the net proceeds

of any new mortgage financing (collectively, the “Owner’s Funds”);

WHEREAS, the Owner will apply a portion of (i) all funds paid to Owner by Federal

Emergency Management Agency, (ii) any hazard and flood insurance payments paid to Owner,

and (iii) the net proceeds of any new mortgage financing (the amounts listed in (i), (ii) and (iii)

above, collectively, the “Owner Funds”) to the deposit amount set forth in Paragraph 15(1);

WHEREAS, the Project Coordinator will also administer and apply grant funds deposited

with Princeton Area Community Foundation for the benefit of the Owner (the “Grant Funds”)

WHEREAS, the Project Coordinator will administer and pay from the Project Escrow

Account and will direct the disbursement of the Grant Funds to pay the costs associated with the

construction of the Home pursuant to the terms of this Agreement;

WHEREAS, Owner is desirous of purchasing the Home from manufacturer and having

the Home constructed on the Premises by Builder according to the plans and specifications

attached hereto as Exhibit B; and

WHEREAS, Manufacturer is desirous of undertaking the delivery of the Home to the

Premises upon the terms and conditions hereinafter expressed;

WHEREAS, Builder is desirous of undertaking the set-up of the Home on the Premises

upon the terms and conditions hereinafter expressed;

NOW, THEREFORE, in consideration of the mutual promises set forth herein, the parties

agree as follows:

1. Manufacturer agrees to furnish all of the materials and labor necessary for the

delivery of the Home to the Premises and Builder agrees to furnish all of the materials and labor

necessary for the set-up of the Home upon the Premises in accordance with the specifications

84

and plans previously provided by Builder to Owner and attached hereto as Exhibit B

(collectively the “Work”). Manufacturer and Builder both agree that at all times during the

performance of this Agreement they shall each engage a sufficient number of skilled

subcontractors to deliver and set-up the Home. Owner agrees that the direction and supervision

of Builder’s subcontractors rest exclusively with Builder, and the Owner agrees not to issue any

instructions to, or otherwise, interfere with same. Owner further agrees not to negotiate for

additional work with the Builder’s subcontractors except with the Builder’s consent, which

consent shall not be unreasonably withheld.

2. Builder shall, at Builder’s sole cost and expense, except as otherwise provided

herein, obtain on behalf of Owner all necessary approvals, licenses, permits and certificates

(collectively “Permits”) required for the commencement and completion of the Work, and lawful

occupancy of the Home. Any and all costs, fees and deposits required to be paid to

governmental agencies and utility providers for the installation of utility services to the Premises,

and for any shut-downs of utility services required for the completion of the Work shall be paid

by Owner, or if advanced by Builder reimbursed to Builder, within thirty (30) days following

written request from Builder. Owner shall use its best efforts to cause the Project Coordinator to

pay any such costs, fees, deposits and payments as soon as reasonably practicable, but in no

event more than thirty (30) days, after a request is made. Notwithstanding anything herein to the

contrary, Builder shall not be required to notify the property owners within the vicinity of the

Premises of the shutting down of any utilities required for the completion of the Work, any such

requirements shall be completed by or on behalf of the Owner.

3. Within ten (10) days of the execution of this Agreement, Owner shall: (i) provide

Builder, at the Owner’s cost and expense, proof of Owner’s title to the Premises by way of an

85

Owner’s title policy and/or recorded deed; (ii) provide a survey of the Premises by a licensed

engineer or surveyor, which shall indicate, among other things, the precise location on the

Premises of the Home to be built with designated setbacks and side yard distances as required by

local law; and (iii) arrange to have the corners of the proposed Home marked by stakes in

accordance with the said survey. If it is determined that the siting of the Home is in violation of

any zoning and building laws and ordinances, restrictions in the chain of title and other like

limitations (collectively, the “Violations”), Owner shall have the option, by providing Builder

with written notice within five (5) business days of a determination that any Violation exists, but

not the obligation, to cure any such violation (pursuant to an application for variances for zoning

violations) at the Owner’s expense. Builder shall not be obligated to complete the Work in the

event that there are any Violations on the Premises and Owner elects to not remedy the same a

set forth in the written notice from Owner to Builder. In which event, Builder shall have the

right to terminate this Agreement pursuant to the terms of this Agreement. Prior to the Builder

commencing the Work, Owner shall cause the Premises to be cleared of all pre-existing debris

and leveled so that Builder may begin construction. Builder shall have no obligation to

commence the Work if Owner fails to deliver or cause to be delivered a cleared and leveled

Premises.

4. Owner represents that it has the financial resources to pay for the Work in the

amount of $______________________. Attached hereto and incorporated herein as Exhibit D is

a letter from the Project Coordinator setting forth the amount and the source of the proceeds

being held in the Project Escrow Account and the Grant Funds available to the Owner for the

construction of the Home.

86

5. Both Builder and Manufacturer shall, at its own cost and expense, procure and

maintain insurance as required by any applicable state worker’s compensation law and general

and commercial auto liability insurance in an amount not less than $1,000,000.00 per

occurrence/$2,000,000.00 aggregate and excess liability umbrella in the amount of $1,000,000

per occurrence and in the aggregate over the primary insurance. The insurance to be procured by

Builder and Manufacturer as aforesaid shall be maintained by each party in full force and effect

at all times during performance and until the completion of the respective portions of the Work

and the acceptance of the Work by Owner in writing. Attached hereto as Exhibit C is a copy of

the certificates of insurance as required in this Agreement from the Builder and the

Manufacturer. All insurance maintained pursuant to this Agreement shall (i) provide that it may

not be canceled without at least thirty (30) days' prior written notice to Owner, (ii) with respect

to its general and automobile liability policies, name the Indemnitees (defined below) as

additional insureds and (iii) be carried with an insurer who is rated A-/VII or better by Best’s

Key Rating Guide and is authorized to provide insurance in the State of New Jersey.

6. To the fullest extent permitted by law, the Builder and Manufacturer will defend,

indemnify and hold harmless the Owner and any mortgagee of the Premises, The Borough of

Union Beach, New Jersey, Princeton Area Community Foundation, Hurricane Sandy New Jersey

Relief Fund, Robin Hood Foundation and any other party that Owner is contractually required to

list as an additional insured (each an “Indemnitee”, collectively the “Indemnitees”) from and

against from and against all claims, damages, losses and expenses, brought by a third party

arising out of or resulting from performance of the Work as provided under this Contract,

provided that such claim, damage, loss or expense is attributable to bodily injury, sickness,

disease or death, or to injury to or destruction of tangible property (other than the Work itself),

87

but only to the extent caused by the negligent acts or omissions of the Builder or the

Manufacturer, or anyone directly or indirectly employed by them or anyone for whose acts it

may be liable, regardless of whether or not such claim, damage, loss or expense is caused in part

by an Indemnitee hereunder.

7. Builder and Manufacturer each agree to perform or cause all Work required of it

under this Agreement in a good and workmanlike manner and in accordance with all applicable

laws, rules, building codes, regulations and/or local building standards. Builder and

Manufacturer agree to provide a construction schedule in reasonable details within ten (10) days

of signing this Agreement.

8. Owner may order changes in the Work, or “extras”, provided Builder approves of

any said changes and the contract price is adjusted accordingly. All such change orders or orders

for “extras”, as well as adjustments in this Agreement, shall be agreed upon in writing and paid

for in full before said change orders or orders for “extras” are made or installed. In no event

shall Builder order or institute any changes to the Work without the Owner’s consent in each

instance.

9. Builder and/or Manufacturer shall maintain builders risk or other property

insurance policy naming Owner, Builder and Manufacturer as insureds, as their interests may

appear, and insuring the Home to be delivered and set-up under this Agreement and any existing

structure(s) for fire, extended coverage, malicious mischief, vandalism and theft in an amount

not less than the contract price set forth and calculated herein. Said builders risk or like

insurance policy is to be delivered to Owner or its agents prior to the commencement of delivery

and set-up of the Home. Builder and/or Manufacturer will be responsible for any loss to the

Home, other structure(s) or building materials not covered by insurance. In no event will Owner

88

be responsible for the Home or for maintaining builder’s risk or any other kind of property

insurance on the Home until the Home is placed and installed on the Premises.

10. Should the Work be stopped by any public or quasi-public authority for a period

of thirty (30) days or more through no fault of Builder, or for a period of seven (7) business days

through the sole act or negligence of Owner, but through no fault of Builder or any of its

subcontractors, employees or material men, or should Owner fail to pay or cause to be paid to

Builder any payment as herein set forth within thirty (30) days following the written request of

the Builder, Builder may, at its option, immediately stop and/or terminate all work under this

Agreement, and Builder shall have no further obligation under this Agreement to continue or

resume delivery or set-up of the Home, nor any liability to Owner for any consequential or other

damages, if any, which Owner may incur as a result of Builder’s termination of this Agreement

prior to the completion of the Work. Should the Owner cure said default to the reasonable

satisfaction of the Builder, then Builder may, in its sole discretion, re-instate this Agreement and

resume performance of the Work pursuant to the terms of this Agreement. No waiver by Builder

of any failure to perform as set forth herein by Owner shall be deemed a waiver of any

subsequent failure to perform.

11. In addition to any other remedies set forth herein, upon any default by Owner of

its obligations hereunder, Builder may, at Builder’s sole option, proceed to protect and enforce

its rights as provided under the New Jersey Construction Lien Law (N.J.S.A. 2A:44A-1 through

38), or by other appropriate remedy at law or in equity. All of Builder’s rights hereunder are

separate and cumulative, and no one of them, whether or not exercised, shall be deemed to be an

exclusion of any of the other rights, and shall not limit or prejudice any other legal or equitable

right which Builder may have.

89

12. If Builder (i) is adjudged bankrupt or (ii) if it makes a general assignment for the

benefit of its creditors, or (iii) if a receiver is appointed on account of its insolvency, (iv) if it

refuses or fails to timely and fully perform its obligations under this Agreement, then Owner

may, in addition and without prejudice to any other rights or remedies available to Owner under

this Agreement, at law or in equity, terminate this Agreement. Notwithstanding the foregoing, in

the case of a default described in subsection (iii) above, Builder shall have a period of seven (7)

business days after notice from Owner thereof to cure any such default; provided, however, that

if the default cannot with due diligence be remedied by Builder within seven (7) business days, if

Builder proceeds as promptly as possible to remedy the defect and thereafter to prosecute the

remedy of the defect with all due diligence, the period of time after the giving of such notice

within which to remedy such defect shall be extended for such period as may be reasonably

necessary to remedy the same with all due diligence, but in no event beyond thirty (30) days. In

the event of a termination for cause, Builder will not be entitled to receive any further payment,

except as provided in this Agreement, and shall be liable to Owner for damages.

13. In addition to termination for cause as set forth in paragraph 12 above, Owner

may, at any time and at its sole discretion, terminate this Agreement in whole or in part on ten

(10) days’ notice to Builder, in which event Owner will pay Builder any amounts due for the

portion of the Work completed at the time of termination, so that Builder receives for such Work

an equitable portion of the Contract Price that would be due under this Agreement if the Work

were completed. If this Agreement is terminated for any reason set forth in this Agreement, the

Owner agrees that it shall pay Builder within thirty (30) days of the termination date any

amounts due for the portion of Work completed at the time of termination, including without

limitation, all of Builder’s costs and expenses incurred through the date of such termination. In

90

addition, Builder shall be entitled to payment for any material in transit that cannot be returned to

the manufacturer and any and all return shipping fees and restocking fees.

14. Builder agrees: (i) delivery and set-up of the Home shall be completed by

_______________; and (ii) occupancy shall be delivered by _______________, subject to

extension on a day for day basis as a result of Force Majeure delays. “Force Majeure” means

delays encountered by Builder in performing its obligations under this Agreement that results in

a delay in achieving completion of the Home, but only for a reasonable length of time, to the

extent caused by material or labor shortages; delays caused by utility companies and local police

and fire departments that are responsible for turning off utilities and closing streets; unusually

severe adverse weather conditions; strikes or labor disputes, riots, war, or insurrection; or acts of

God or other similar causes beyond the Builder’s control. Notwithstanding the foregoing, a

delay shall only constitute Force Majeure if (i) Builder has taken all reasonable, necessary and

appropriate steps to avoid or minimize the delay, (ii) such event is not caused by the act or

omission of Builder or its subcontractors and (iii) the event does not involve the negligence or

willful misconduct of the Builder or any subcontractor. Occupancy shall be deemed delivered

upon the issuance of a temporary certificate of occupancy by the construction official of the

Borough of Union Beach, subject to the completion of incomplete items within the time

permitted by said construction official. Owner agrees that the decision to purchase the Home is

not based upon any representations as to the anticipated date of occupancy. Any delay caused by

Force Majeure events shall not constitute abandonment by the Builder and shall not be included

in calculating time frames for payment or performance. Prior to payment by the Owner of the

final payment pursuant to paragraph 15 below, Owner shall inspect the Work with Builder and

the parties shall agree upon a comprehensive list of items to be completed or corrected prior to

91

final payment (the “Punch List Items”). Builder agrees to complete any Punch List Items

promptly.

15. In consideration for the covenants and agreements hereunder being performed and

kept by Builder, Owner does hereby covenant, promise and agree to pay or cause to be paid to

Builder for the delivery and set-up of the Home and perform the Work the total contract price of

____________________ AND __/100 DOLLARS ($_______________) (the “Contract Price”).

The “Manufacturer Contract Price” is ___________________ AND 00/100 DOLLARS

($___________) and the “Builder Contract Price” is _________________ AND __/100

DOLLARS ($_______________). Payments shall be made as follows:

(1) Upon the execution of this Agreement, 25% of the Manufacturer Contract

Price to the Manufacturer and 25% of the Builder Contract Price to the Builder;

(2) Upon arrival of the Home by carrier at the Premises and erection of the

Home on the foundation, 50% of the Manufacturer Contract Price to the Manufacturer and 50%

of the Builder Contract Price to the Builder; and

(3) The balance of the Manufacturer Contract Price to the Manufacturer and

the balance of the Builder Contract Price to the Builder upon issuance of the temporary

certificate of occupancy (the balance of the Builder Contract Price to be held in escrow by

Builder’s New Jersey attorney until issuance of a final certificate of occupancy).

Notwithstanding the foregoing, Project Coordinator shall withhold from the Builder one-hundred

and ten percent (110%) of the cost to complete the Punch List Items from the Contract Price until

such time that the Punch List Items are completed by Builder.

Notwithstanding the foregoing, and subject to any changes agreed upon by Owner, in no

event shall the Owner be obligated to pay more than the Contract Price for the Work. Interest

92

shall begin to accrue on all sums due Builder under this Section 15 and under other sections of

this Agreement five (5) business days after the date said payment is due at the rate of 10% per

annum.

16. Owner agrees, to the extent permissible, to assign to Builder their right and

interest in any Grant Funds obtained by the Owner.

17. To the extent permissible by Owner’s insurance company and under the

Replacement House Project Agreement between Owner and Project Coordinator, Owner hereby

assigns to Builder their right to all insurance proceeds realized on account of the loss of Owner’s

original home on the Premises to the extent not previously received by Owner and used to satisfy

Owner’s obligation under Section 15 above. In no event shall the Owner be required to assign

insurance proceeds in excess of the Contract Price. In order to effectuate the intent of this

provision, Owner agrees to execute any reasonably assignments and other such documents as

may be required by its insurance company from time to time.

18. IN THE EVENT OF ANY LEGAL PROCEEDINGS OR LITIGATION

BETWEEN THE PARTIES HERETO, ARISING OUT OF THIS AGREEMENT, EACH OF

PARTY HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN SUCH LEGAL

PROCEEDINGS OR LITIGATION, AND AGREES TO PAY THE COSTS,

DISBURSEMENTS AND REASONABLE ATTORNEYS’ FEES INCURRED IN SUCH

LITIGATION BY THE PREVAILING PARTY.

19. Any provision of law to the contrary notwithstanding, it is agreed that all

materials furnished on the Premises but not affixed to the realty shall remain and retain the

character and legal status of personal property owned by Builder or Manufacturer, respectively;

and if said Contract Price is not paid in full, Builder and Manufacturer shall have the right and

93

authority to enter into and upon the Premises for the purpose of removing any such building

materials supplied by Builder or Manufacturer and not yet paid for by Owner that is not affixed

to the property at any time and without notice or the prior consent of the Owner.

20. This Agreement is also a “security agreement” within the meaning of the New

Jersey Uniform Commercial Code. The Work includes materials and equipment constituting

personal property until the same become affixed to the Premises so as to become part of the

realty. By executing and delivering this Agreement. Owner hereby grants to Builder, a security

interest in the personal property to secure the Owner’s obligation to pay the contract price set

forth in Section 15 and other sums due and payable to Builder under this Agreement, to the full

extent that the personal property may be subject to the Uniform Commercial Code. Owner

hereby agrees that Builder may file, such financing statements and such further assurances as

Builder may, from time to time, consider reasonably necessary to create, perfect, and preserve

Builder’s security interest herein granted, at such times and places as may be required or

permitted by law to so create, perfect and preserve such security interest.

21. To the extent that any labor or materials necessarily expended in the completion

of the construction provided for hereunder are to be furnished by Owner or another contractor

engaged or to be engaged by Owner, all with the express written consent of Builder, Owner shall

be responsible to Builder to schedule and coordinate such work so as not to reasonably interfere

with Builder’s schedule. Owner assumes full responsibility for work performed by Owner or its

agents and for all materials used in connection therewith. It is expressly understood and agreed

that Builder does not warrant any work not performed by Builder. Any damage or costs

resulting from work performed by Owner or his agents will be remedied by the Owner.

94

22. Owner represents that there are no liens or judgments affecting the property,

except for: ________________________________________________________________.

No mortgage liens shall be filed against the Premises until payment in full under this

Agreement without the express written consent Builder. If a judgment is rendered in a court of

record against Owner, or a construction lien, or Notice of Unpaid Balance, is filed against the

Premises for work which is not the responsibility of Builder, and if the said judgment or

construction lien remains open of record for a period of thirty (30) days after Builder gives notice

to Owner thereof, or in the event that Owner becomes insolvent and takes advantage of any

insolvency proceeding or is adjudicated a bankrupt, then, and in any such event, Builder shall be

relieved of any further obligations to continue with the performance of its work hereunder, and

shall have a claim against Owner for any portion of the Work performed pursuant to this

Agreement, that was not paid for by the Owner. In no event shall Owner be liable to Builder for

or any consequential or punitive damages.

23. Owner shall not transfer title to the Premises during the course of the performance

of the Work by Builder, nor shall any assignment be made of this Agreement without the written

consent of each of the parties.

24. Builder participates in the New jersey Home Owner’s Warranty Program as

provided in N.J.S.A. 46:3B-1 et seq. and N.J.A.C. 5:25, and does not warrant or guarantee the

construction hereunder except as set forth in the Limited Warranty annexed hereto as Exhibit E

and as otherwise set forth herein and in the rider(s). The State of New Jersey Builder

Registration Number of Builder is 045907. Builder makes no housing merchant implied

warranty or any other warranties, express or implied, in connection with this contract or the

home, and all such warranties are excluded, except as provided in the New Jersey Department of

95

Community Affairs approved limited warranty to be delivered to Owner upon delivery of

possession of the completed Home to the Owner in substantially the form annexed to this

contract at Exhibit E. The express terms of the limited warranty are hereby incorporated in this

Agreement, and there are no warranties which extend beyond the face thereof, except as

otherwise set forth herein and in the rider(s) annexed hereto.

25. NOTICE TO OWNER OF CONTRACTORS LIENS. Under the New Jersey

Construction Lien Law a contractor, subcontractor, laborer, supplier or other person who

contributes to an improvement upon an owner’s property, but is not paid for the work performed

or for the materials or services supplied, has claims that may be asserted against Owner,

including claims that may be enforced against the Owner’s property to satisfy the unpaid debt.

26. RIGHT OF CANCELLATION. Owner may cancel this transaction at any time

prior to midnight of the third business day after you sign this Agreement. See the NOTICE OF

CANCELLATION attached hereto as Schedule A for an explanation of this right.

24. If two or more persons shall constitute the “Owner” hereunder, the word “Owner”

shall herein be construed as if it read “Owners” where the sense of this agreement so requires.

27. This Agreement may not be changed or terminated orally, and all modifications

shall be in writing and signed and dated by both parties. The stipulations aforesaid are to apply

to and bind the heirs, executors, administrators, successors and assigns of the respective parties

hereto.

28. Unless otherwise provided for in this Agreement, in the event that the Home to be

constructed is to be supplied by water and sewer from a public utility, Builder shall be

responsible for costs of hooking up the Home to the service(s) for a distance of up to forty (40’)

feet from the water shut off valve servicing the dwelling. Builder shall not be responsible for

clogged municipal sewer and waters lines. The cost for any extra piping in excess of 40 feet

96

shall be borne by Owner. Under no circumstances is Builder responsible for the quality of water

produced by the utility service.

29. Any blasting or special earth-moving operation required for any purpose, on the

Premises and necessary for the construction of the Home is not included in the contract price,

shall be paid by Owner in addition to the contract price upon demand by Builder.

30. To the extent that there shall be any inconsistencies between this Agreement and

Exhibits B, C, and E hereof, the terms and provisions of this Agreement, shall control.

31. Owner shall be responsible for the costs of fuel, electric and other utilities utilized

by Builder during the construction of the Home. Owner shall maintain heat within the dwelling

once the exterior sheathing and insulation is installed and the windows are installed.

32. This Agreement shall be governed by the laws of the State of New Jersey, and

jurisdiction for any action arising out of this Agreement shall be limited to the state courts of the

State of New Jersey.

33. Intentionally Deleted.

34. This Agreement may be executed in two or more counterparts, each of which

shall be deemed and original but all of which together shall constitute one and the same

instrument.

97

IN WITNESS WHEREOF, Owner and Builder have executed this Agreement as of the

date set forth above.

BUILDER:

DSW HOMES, LLC

By:___________________________

Name:

MANUFACTURER:

FOREMOST INDUSTRIES, INC.

By:___________________________

Name:

OWNER:

_____________________________

Name:

______________________________

Name:

98

SCHEDULE A

NOTICE OF CANCELLATION

Date: ________________

YOU MAY CANCEL THIS TRANSACTION, WITHOUT ANY PENALTY OR

OBLIGATION, WITHIN THREE BUSINESS DAYS FROM THE ABOVE DATE.

IF YOU CANCEL, ANY PROPERTY TRADED IN AND ANY PAYMENTS MADE BY YOU

UNDER THE CONTRACT OR SALE WILL BE RETURNED WITHIN TEN (10) BUSINESS

DAYS FOLLOWING RECEIPT BY BUILDER OF YOUR CANCELLATION NOTICE, AND

ANY SECURITY INTEREST ARISING OUT OF THE TRANSACTION WILL BE

CANCELLED.

IF YOU CANCEL, YOU MUST MAKE AVAILABLE TO THE BUILDER AT YOUR

RESIDENCE, IN SUBSTANTIALLY AS GOOD CONDITION AS WHEN RECEIVED, ANY

GOODS DELIVERED TO YOU UNDER THIS CONTRACT OR SALE, OR IF YOU WISH,

YOU MAY COMPLY WITH THE INSTRUCTIONS OF THE BUILDER REGARDING THE

RETURN SHIPMENT OF THE GOODS AT THE BUILDER’S EXPENSE AND RISK.

IF YOU DO NOT MAKE THE GOODS AVAILABLE TO THE BUILDER AND BUILDER

DOES NOT PICK THEM UP WITHIN TWENTY DAYS OF THE DATE OF YOUR NOTICE

OF CANCELLATION, YOU MAY RETAIN OR DISPOSE OF THE GOODS WITHOUT

ANY FURTHER OBLIGATION. IF YOU FAIL TO MAKE THE GOODS AVAILABLE TO

THE BUILDER , OR IF YOU AGREE TO RETURN THE GOODS TO THE BUILDER AND

FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL

OBLIGATIONS UNDER THE CONTRACT.

99

TO CANCEL THIS TRANSACTION, NOT LATER THAN MIDNIGHT OF THE THIRD

BUSINESS DAY AFTER THE DATE LISTED ABOVE, MAIL OR DELIVER A SIGNED

NOTICE OF CANCELLATION TO:

DSW Homes, LLC

_______________________

_______________________

I (WE) HEREBY CANCEL THIS TRANSACTION.

Owner:________________________________ Dated:_____________________

Owner:________________________________ Dated:_____________________

I (WE) HEREBY ACKNOWLEDGE RECEIPT OF TWO COPIES OF THIS

NOTICE OF RIGHT TO CANCEL

Owner:_______________________________ Dated:_____________________

Owner:_______________________________ Dated:_____________________

100

EXHIBIT A

LEGAL DESCRIPTION OF PREMISES

Block # __

Lot # __

101

EXHIBIT B

PLANS AND SPECIFICATIONS

102

EXHIBIT C

INSURANCE CERTIFICATES OF BUILDER & MANUFACTURER

103

EXHIBIT D

SOURCES OF FUNDS IN THE PROJECT ESCROW ACCOUNT

104

EXHIBIT E

HOMEBUYER WARRANTY

105

MODULAR HOME CONSTRUCTION AGREEMENT

This Modular Home Construction Agreement (the “Agreement”), made the «Day» day of

«Month», 2014 between Wimbledon Properties, LLC, a Tennessee limited liability company

authorized to do business in New Jersey, having its principal place of business at 5000 Clayton

Road, Maryville, Tennessee 37804 (hereinafter referred to as the “Builder”) and

«Name__Homeowner», residing at «Number» «Street», Union Beach, New Jersey 07735,


WITNESSETH:

WHEREAS, Owner is the owner of certain premises situated at «Number» «Street»,

Union Beach, New Jersey, 07735, as more particularly described as attached hereto on Exhibit

A (the “Premises”);



homes were damaged in Superstorm Sandy. The program is known as the Union Beach

Replacement House Pilot Project (“Replacement Project”);

WHEREAS, as the Replacement Project involves the Project Coordinator assisting the

Owner with the replacement of its destroyed home with a single-family, manufactured,

prefabricated replacement house (the “Home”);



“Project Escrow Account”): (i) funds paid to Owner by Federal Emergency Management

Agency, (ii) any hazard and flood insurance payments paid to Owner, and (iii) the net proceeds

of any new mortgage financing (collectively, the “Owner’s Funds”);

106

WHEREAS, the Owner will apply a portion of (i) all funds paid to Owner by Federal

Emergency Management Agency, (ii) any hazard and flood insurance payments paid to Owner,

and (iii) the net proceeds of any new mortgage financing (the amounts listed in (i), (ii) and (iii)

above, collectively, the “Owner Funds”) to the deposit amount set forth in Paragraph 15(1);





construction of the Home;

WHEREAS, Owner is desirous of having the Home constructed on the Premises by

Builder according to the plans and specifications attached hereto as Exhibit B; and

WHEREAS, Builder is desirous of undertaking the delivery and set-up of the Home on

the Premises upon the terms and conditions hereinafter expressed;


agree as follows:

35. Builder agrees to furnish all of the materials and labor necessary for the delivery

and set-up of the Home upon the Premises in accordance with the specifications and plans

previously provided by Builder to Owner and attached hereto as Exhibit B (collectively the

“Work”). Builder agrees that at all times during the performance of this Agreement, Builder

shall engage a sufficient number of skilled subcontractors to deliver and set-up the Home.

Owner agrees that the direction and supervision of Builder’s subcontractors rest exclusively with

Builder, and the Owner agrees not to issue any instructions to, or otherwise, interfere with same.

107

Owner further agrees not to negotiate for additional work with the Builder’s subcontractors

except with the Builder’s consent, which consent shall not be unreasonably withheld.

36. Builder shall, at Builder’s sole cost and expense, except as otherwise provided

herein, obtain on behalf of Owner all necessary approvals, licenses, permits and certificates

(collectively “Permits”) required for the commencement and completion of the Work, and lawful

occupancy of the Home. Any and all costs, fees and deposits required to be paid to

governmental agencies and utility providers for the installation of utility services to the Premises,

and for any shut-downs of utility services required for the completion of the Work shall be paid

by Owner, or if advanced by Builder reimbursed to Builder, within thirty (30) days following

written request from Builder. Owner shall use its best efforts to cause the Project Coordinator to

pay any such costs, fees, deposits and payments as soon as reasonably practicable but in no event

more than thirty (30) days after a request is made. Notwithstanding anything herein to the

contrary, Builder shall not be required to (i) notify the property owners within the vicinity of the

Premises of the shutting down of any utilities required for the completion of the Work, any such

requirements shall be completed by or on behalf of the Owner, or (ii) pay any fees or costs

associated with the shutdown or shut-off of the utilities. So that Project Coordinator may notify

neighboring property owners, Builder will provide the Project Coordinator with the date and the

affected locations when utilities will be shut down. Although Builder shall coordinate directly

with the utility company(ies), in no event shall the Builder be required to continue the Work if

the utility company(ies) fails to provide the Builder with necessary information relating to the

dropping of utility lines, the turning on or off any utility service and obtaining hook-ups for any

service. If despite good faith efforts, Builder is unable to obtain the requisite Permits and

permission from the utility companies to connect the Home to electric, water or sewer service,

108

Builder shall have the termination right set forth in Section 10 of this Agreement and if Builder

terminates this Agreement, Builder shall be paid for all Work completed through such

termination.

37. Within ten (10) days of the execution of this Agreement, Owner shall: (i) provide

Builder, at the Owner’s cost and expense, proof of Owner’s title to the Premises by way of an

Owner’s title policy and/or recorded deed; (ii) provide a survey of the Premises by a licensed

engineer or surveyor, which shall indicate, among other things, the precise location on the

Premises of the Home to be built with designated setbacks and side yard distances as required by

local law; and (iii) arrange to have the corners of the proposed Home marked by stakes in

accordance with the said survey. If it is determined that the siting of the Home is in violation of

any zoning and building laws and ordinances, restrictions in the chain of title and other like

limitations (collectively, the “Violations”), Owner shall have the option, but not the obligation,

to cure any such violation (pursuant to an application for variances for zoning violations) at the

Owner’s expense. Builder shall not be obligated to complete the Work in the event that there are

any Violations on the Premises and Owner elects to not remedy the same. In which event,

Contractor shall have the right to terminate this Agreement pursuant to the terms of this

Agreement. Prior to the Builder commencing the Work, Owner shall cause the Premises to be

cleared of all pre-existing debris and leveled so that Builder may begin construction. Builder

shall have no obligation to commence the Work if Owner fails to deliver or cause to be delivered

a cleared and leveled Premises.


amount of $«Homeowner_Resources_XXXX». Attached hereto and incorporated herein as

Exhibit D is a letter from the Project Coordinator setting forth the amount and the source of the

109

proceeds being held in the Project Escrow Account and the Grant Funds available to the Owner

for the construction of the Home.

39. Builder shall, at its own cost and expense, procure and maintain insurance as

required by any applicable state worker’s compensation law and general and commercial auto

liability insurance in an amount not less than $1,000,000.00 per occurrence/$2,000,000.00

aggregate and excess liability umbrella in the amount of $1,000,000 per occurrence and in the

aggregate over the primary insurance. The insurance to be procured by Builder as aforesaid shall

be maintained by it in full force and effect at all times during performance and until the

completion of the Work and the acceptance of the Work by Owner in writing. Attached hereto

as Exhibit C is a copy of Builder’s certificates of insurance as required in this Agreement. All

insurance maintained by Builder pursuant to this Agreement shall (i) provide that it may not be

canceled without at least thirty (30) days' prior written notice to Owner, (ii) with respect to its

general and automobile liability policies, name the Indemnitees (defined below) and (iii) be

carried with an insurer who is rated A-/VII or better by Best’s Key Rating Guide and is

authorized to provide insurance in the State of New Jersey.

40. To the fullest extent permitted by law, the Builder will defend, indemnify and

hold harmless the Owner and any mortgagee of the Premises, The Borough of Union Beach,

New Jersey, Princeton Area Community Foundation, Hurricane Sandy New Jersey Relief Fund,

Robin Hood Foundation and any other party that Owner is contractually required to list as an

additional insured (each an “Indemnitee”, collectively the “Indemnitees”) from and against from

and against all claims, damages, losses and expenses, brought by a third party arising out of or

resulting from performance of the Work as provided under this Contract, provided that such

claim, damage, loss or expense is attributable to bodily injury, sickness, disease or death, or to

110

injury to or destruction of tangible property (other than the Work itself), but only to the extent

caused by the negligent acts or omissions of the Builder or anyone directly or indirectly

employed by it or anyone for whose acts it may be liable, regardless of whether or not such

claim, damage, loss or expense is caused in part by an Indemnitee hereunder.

41. Builder agrees to perform or cause all Work required of it under this Agreement

in a good and workmanlike manner and in accordance with all applicable building codes,

regulations and/or local building standards. Builder agrees to provide a construction schedule in

reasonable detail within ten (10) days of signing this Agreement.




for in full before said change orders or orders for “extras” are made or installed. In no event shall

Builder order or institute any changes to the Work without the Owner’s consent in each instance.

43. Until the issuance of a temporary certificate of occupancy by the construction

official of the Borough of Union Beach (“Occupancy”), the Builder shall maintain builders risk

or other property insurance policy naming Owner as loss payee, and insuring the Home to be

delivered and set-up under this Agreement and any existing structure(s) for fire, extended

coverage, malicious mischief, vandalism and theft in an amount not less than the contract price

set forth and calculated herein. Said builders risk or like insurance policy is to be obtained prior

to the commencement of delivery and set-up of the Home. Until Occupancy, Builder will be

responsible for any loss to the Home, other structure(s), construction in progress or building

materials not covered by insurance. In no event will Owner be responsible for the Home or for

maintaining builder’s risk or any other kind of property insurance on the Home until Occupancy.

111

However, once the Home is placed on the pilings and installed on the Premises and Occupancy

has occurred, it shall be the responsibility of the Owner and not the Builder to maintain the

appropriate property insurance covering the Home.

44. Should the Work be stopped by any public or quasi-public authority for a period







resume delivery or set-up of the Home, nor any liability to Owner for any consequential or other












112







this Agreement, at law or in equity, terminate the employment of Builder. Notwithstanding the

foregoing, in the case of a default described in subsection (iii) above, Builder shall have a period

of seven (7) business days after notice from Owner thereof to cure any such default; provided,

however, that if the default cannot with due diligence be remedied by Builder within seven (7)

business days, if Builder proceeds as promptly as possible to remedy the defect and thereafter to

prosecute the remedy of the defect with all due diligence, the period of time after the giving of

such notice within which to remedy such defect shall be extended for such period as may be

reasonably necessary to remedy the same with all due diligence, but in no event beyond thirty

(30) days. In the event of a termination for cause, Builder will not be entitled to receive any

further payment and shall be liable to Owner for damages.


48. Builder agrees: (i) delivery and set-up of the Home shall be completed by

«DeliverySetUp_Date», 2014; and (ii) occupancy shall be delivered by «Occupancy_Date»,

2014, subject to extension on a day for day basis as a result of Force Majeure delays. “Force

Majeure” means delays encountered by Builder in performing its obligations under this

Agreement that results in a delay in achieving completion of the Home, but only for a reasonable

length of time, to the extent caused by material or labor shortages; delays caused by utility

113

companies and local police and fire departments that are responsible for turning off utilities and

closing streets; unusually severe adverse weather conditions; strikes or labor disputes, riots, war,

or insurrection; or acts of God or other similar causes beyond the Builder’s control.

Notwithstanding the foregoing, a delay shall only constitute Force Majeure if (i) Builder has

taken all reasonable, necessary and appropriate steps to avoid or minimize the delay, (ii) such

event is not caused by the act or omission of Builder or its subcontractors and (iii) the event does

not involve the negligence or willful misconduct of the Builder or any subcontractor. Occupancy

shall be deemed delivered upon the issuance of a temporary certificate of occupancy by the

construction official of the Borough of Union Beach, subject to the completion of incomplete

items within the time permitted by said construction official. Owner agrees that the decision to

purchase the Home is not based upon any representations as to the anticipated date of occupancy.

Any delay caused by Force Majeure events shall not constitute abandonment by the Builder and

shall not be included in calculating time frames for payment or performance. Prior to payment

by the Owner of the final payment pursuant to paragraph 15 below, Owner shall inspect the

Work with Builder and the parties shall agree upon a comprehensive list of items to be

completed or corrected prior to final payment (the “Punch List Items”). Builder agrees to

complete any Punch List Items promptly.



Builder for the delivery and set-up of the Home and perform the Work the total contract price of

«Contract_Price_in_words» AND «CENTS»/100 ($«Contract_Price_XXXX») DOLLARS

(the “Contract Price”) as follows:

114

(1) Upon the execution of this Agreement, the greater of (a) of

$«M_20_in_XXXX» (20% of the Contract Price), or 100% of the net insurance proceeds Owner

has received as compensation for the loss of its prior home on the Premises;

(2) Such amount, if any, as when added to the amount paid under (1) above

will equal $«M_70_in_XXXX» or 70% of the Contract Price upon arrival of the Home by carrier

at the Premises and erection of the Home on the foundation; and

(3) The balance upon issuance of the temporary certificate of occupancy (to

be held in escrow by Builder’s New Jersey attorney until issuance of a final certificate of

occupancy). Notwithstanding the foregoing, Project Coordinator shall withhold one-hundred and

ten percent (110%) of the cost to complete the Punch List Items from the Contract Price until

such time that the Punch List Items are completed by Builder.

Notwithstanding the foregoing, and subject to any changes agreed upon by Owner, in no

event shall the Owner be obligated to pay more than the Contract Price for the Work. Interest

shall begin to accrue on all sums due Builder under this Section 15 and under other sections of

this Agreement five (5) business days after the date said payment is due at the rate of 10% per

annum.








115


provision, Owner agrees to execute the attached Assignment of Insurance Proceeds and other

such documents as may be required by its insurance company from time to time.

52. Any claims, disputes or controversy between Buyer and Seller shall be resolved

as provided in the attached Exhibit F.



character and legal status of personal property owned by Builder; and if said contract price is not

paid in full, Builder shall have the right and authority to enter into and upon the Premises for the

purpose of removing any such building materials supplied by Builder and not yet paid for by

Owner that is not affixed to the property at any time and without notice or the prior consent of

the Owner.




realty. By executing and delivering this Agreement. Owner hereby grants to Builder, a security








116










except for: _________________________________________________________________.

No mortgage liens shall be filed against the Premises until payment in full under this Agreement

without the express written consent Builder. If a judgment is rendered in a court of record

against Owner, or a construction lien, or Notice of Unpaid Balance, is filed against the Premises

for work which is not the responsibility of Builder, and if the said judgment or construction lien

remains open of record for a period of thirty (30) days after Builder gives notice to Owner

thereof, or in the event that Owner becomes insolvent and takes advantage of any insolvency

proceeding or is adjudicated a bankrupt, then, and in any such event, Builder shall be relieved of

any further obligations to continue with the performance of its work hereunder, and shall have a

claim against Owner for any portion of the Work performed pursuant to this Agreement, that was

not paid for by the Owner. In no event shall Owner be liable to Builder for or any consequential

or punitive damages.

117




58. Builder participates in the New jersey Home Owner’s Warranty Program as




Registration Number of Builder is 46307. Builder makes no housing merchant implied warranty

or any other warranties, express or implied, in connection with this contract or the home, and all

such warranties are excluded, except as provided in the New Jersey Department of Community

Affairs approved limited warranty to be delivered to Owner upon delivery of possession of the

completed Home to the Owner in substantially the form annexed to this contract at Exhibit E.

The express terms of the limited warranty are hereby incorporated in this Agreement, and there

are no warranties which extend beyond the face thereof, except as otherwise set forth herein and

in the rider(s) annexed hereto.






60. RIGHT OF CANCELLATION. Owner may cancel this transaction at any time



118






hereto.









Premises and necessary for the construction of the Home is not included in the contract price,

shall be paid by Owner in addition to the contract price upon demand by Builder.






119




68. In the event Owner terminates this Agreement through no fault of Builder or for

any other reason other than as set forth in paragraph 12 or in the event Owner otherwise prevents

or refuses to allow Builder to perform the Work contemplated under the terms of this Agreement,

Builder shall have a claim against Owner for the entire unpaid balance due under this

Agreement. The parties hereto acknowledge that the actual damages incurred by the Builder are

difficult to ascertain and that the assessment of damages described herein (that being the entire

outstanding balance due) is fair and reasonable on account of Owner’s termination or refusal to

allow the Builder to build the Home.



instrument.

120



BUILDER:

WIMBLEDON PROPERTIES, LLC

By:___________________________

Michael Rutherford

OWNER:

_____________________________

Name:

______________________________

Name:

121

SCHEDULE A


Date: ________________







CANCELLED.










THE BUILDER, OR IF YOU AGREE TO RETURN THE GOODS TO THE BUILDER AND

FAIL TO DO SO, THEN YOU REMAIN LIABLE FOR PERFORMANCE OF ALL

OBLIGATIONS UNDER THE CONTRACT.

122




Wimbledon Properties, LLC

5000 Clayton Rd

Maryville, Tennessee 37804


Owner:________________________________ Dated:_____________________

Owner:________________________________ Dated:_____________________



Owner:_______________________________ Dated:_____________________

Owner:_______________________________ Dated:_____________________

123

EXHIBIT A


Block # «Block»

Lot # «Lot»

124

EXHIBIT B


125

EXHIBIT C

INSURANCE CERTIFICATE OF WIMBLEDON PROPERTIES LLC

126

EXHIBIT D


127

EXHIBIT E

HOMEBUYER WARRANTY

[see attached]

128

EXHIBIT F

BINDING DISPUTE RESOLUTION AGREEMENT

[see attached]

129

BINDING DISPUTE RESOLUTION AGREEMENT

The Parties (defined below) agree to resolve all disputes pursuant to the terms of this

Binding Dispute Resolution Agreement (the “Agreement”). The Parties are defined as the buyer (whether one or more) who signs below (referred to hereinafter as “Buyer”) and Wimbledon Properties, LLC, a Tennessee limited liability company, and its agents, assignees, successors in interest, and employees (collectively referred to as “Seller”). Buyer and Seller agree that this Agreement also applies to and governs the rights of intended beneficiaries of this Agreement, who include the following additional Parties: (i) manufacturers of the Home (defined below); (ii) contractors, including, without limitation, contractors involved in delivery and set-up of Buyer's Home; (iii) all who sign the Contract (defined below); (iv) anyone claiming an interest in the Home, (v) any occupants of the Home (referred to hereafter collectively as “Beneficiaries”) (Buyer, Seller, and Beneficiaries may be referred to herein as “Party” or “Parties”).

A. Scope of the Agreement: This Agreement applies to all pre-existing, present, or future disputes, claims, controversies, grievances, and causes of action between the Parties, including, but not limited to, common law claims, contract and warranty claims, tort claims, statutory claims, administrative law claims, and any other matter in question, not otherwise excepted herein, arising out of or relating to (i) the modular or manufactured home(s) purchased, sold, owned, occupied and/or delivered in the instant transaction with Buyer (the “Home”), (ii) the documents related to the purchase and sale of the Home (including, but not limited to, the Retailer Closing Agreement, any Purchase or Sales Agreement, buyer’s order, supplemental invoice, and other instruments and agreements whereby Seller purports to convey or receive any goods or services to or from Buyer or Beneficiaries (collectively, the “Contract”)), (iii) any products, goods, services, supplemental warranty, service contract, and real property (including improvements to the real property) sold under the Contract, (iv) the collection and servicing of the Contract, (v) the design and construction of the Home, and (vi) the interpretation, scope, validity and enforceability of the Contract (collectively referred to as the “Claim” or “Claims”). Notwithstanding anything herein to the contrary, the jurisdiction of the Arbitrator, including objections with respect to the existence, scope, limitation of proceedings as provided in section “H.” herein, and validity of this Agreement, shall be determined solely by a court of competent jurisdiction, and not by the Arbitrator.

B. Exclusion for Consumer Credit Transactions Secured by a Dwelling:

Notwithstanding anything herein to the contrary, nothing in this Agreement shall be construed to require mandatory mediation or binding arbitration of any disputes arising out of any contract or any other agreement for a consumer credit transaction secured by a dwelling. Disputes arising out of any contract or any other agreement for a consumer credit transaction secured by a dwelling are specifically excluded from the definition of “Claim” or “Claims.”

C. Agreement to Mediate: All Claims that cannot be settled through direct discussions

and negotiation shall be submitted first to mediation with a mutually agreeable mediator (“Mediation”). If the Parties cannot agree on a mediator within a reasonable time, then the Mediation shall be administered by the American Arbitration Association (“AAA”) under its Home Construction Arbitration Rules and Mediation Procedures in effect at the time Mediation

130

is requested (the “Rules”). A copy of the Rules may be obtained, free of charge, from the AAA, on the internet at www.adr.org, by calling 800-778-7879, or by writing to - American Arbitration Association, 120 Broadway, New York, NY 10005. The Parties agree to mediate in good faith. The Parties agree that information exchanged in the Mediation shall be held confidentially. The requirement of formally filing a Claim with a tribunal, to satisfy an applicable statute of limitations, shall be tolled during the mediation process, with said tolling period to begin on the date that any Party notifies the other(s) in writing of its intent to mediate (either through a mutually agreeable mediator or the AAA). The tolling period shall end on the date that either Party notifies the other in writing following mediation that the Parties have reached an impasse. In the event the Parties are not successful in resolving their dispute in mediation, then the Parties agree to submit their Claims to binding arbitration. Mediation of Claims is a mandatory condition precedent to arbitration or a court proceeding. An agreement to resolve the Claims in mediation shall be enforceable in any court having jurisdiction thereof.

D. Agreement to Arbitrate: The Parties agree to mandatory, binding arbitration in

Monmouth or Essex County, New Jersey (“Arbitration”) of all Claims that are not resolved in Mediation. Arbitration is a process in which a neutral arbitrator decides a dispute instead of a judge or jury. Each side has an opportunity to present evidence to the Arbitrator, both in writing and through witnesses. Arbitration proceedings are less formal than court trials. Other rights that the Parties have in court may not be available in Arbitration. The information that can be obtained in discovery from each other or from third persons in Arbitration is generally more limited than in a lawsuit. An arbitrator will decide the case by issuing a written decision called an “award.”

E. Conducting Arbitration: Any Party to this Agreement may commence arbitration at

any time following Mediation, subject to applicable statute of limitations and section “C.” of this Agreement. The Arbitration shall be governed by and conducted under: (a) the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq., and to the extent not otherwise preempted by the FAA, by applicable state laws, including common law; (b) this Agreement; and (c) the Rules. Consistent with section “H.” of this Agreement, the Parties agree not to incorporate the AAA’s Supplementary Rules for Class Arbitrations. The Parties acknowledge and agree that the Home contains component parts manufactured outside of the state where the Home is sold and delivered; the manufacture, transportation, sale and use thereof has been and will continue to be regulated by the laws of the United States of America and involve and affect interstate commerce. To commence arbitration, a Party must submit the dispute to AAA via mail, fax or through AAA’s WebFile Service. If the terms of this Agreement and the Rules conflict, then the terms of this Agreement shall control to the extent of the conflict. The Arbitration will be conducted by a single person (the “Arbitrator”) and selected in accordance with the “Level 3” selection process of the Rules irrespective of the amount of the Claims. The “Level 3” Administrative Fees and Arbitrator Compensation Schedule shall apply, irrespective of the amount of the demand or counter-demand asserted by any Party. The Arbitrator shall be impartial and his or her conduct shall be governed by the most current Code of Ethics for Arbitrators in Commercial Disputes, promulgated by the AAA and the American Bar Association. The Parties agree that any Arbitration commenced under this Agreement shall be administered under the Regular Procedures of the Rules, as opposed to the Expedited Hearing Procedures. With respect to the exchange of information, arbitration hearing, inspections, and

131

interviews as defined by the Rules, the Parties agree that the Rules applicable to “Level 3” disputes shall apply to all Claims, irrespective of the amount of the Claims. At the election of the Parties (and at the expense of the electing Party or Parties), the Arbitration may be recorded and transcribed by a court reporter. Judgment upon the award rendered may be entered in any court having jurisdiction over the Parties to the award. The Parties agree that information exchanged in the Arbitration shall be held confidentially, and shall not be used in other arbitrations or court proceedings. Except as may be required by law, neither a Party, nor an Arbitrator may disclose the existence, content or results of any arbitration hereunder without the prior written consent of all Parties. All statutes of limitation that would otherwise apply to Claims in a judicial action shall apply to the Arbitration of Claims under this Agreement. The Arbitrator shall apply applicable substantive law and shall honor assertions of privilege recognized at law and consider defenses that a court could consider. With respect to any award for punitive damages, the Arbitrator may award punitive damages only under circumstances where a court of competent jurisdiction could award such damages. In awarding punitive damages, the Arbitrator must abide by all applicable state and federal laws regarding the amount of such damages, and the Arbitrator must state the precise amount of any punitive damages award. Before the award becomes final, the Arbitrator must also conduct a post-award review of any punitive damages, allowing the Parties the same procedural rights and using the same standards and guidelines that would apply in a judicial proceeding in the state where the Arbitration is located. Any ruling based on this post-award review must be set forth in writing with a reasoned explanation. The Arbitrator shall not have the power to depart from substantive law, including due process principles, in connection with an award. The Arbitrator’s findings, reasoning, decision, and award shall be set forth in a detailed writing and must be based upon the laws governing this Agreement.

Except as expressly provided in section “K.” of this Agreement, any Claim or

counterclaim (including compulsory or permissive under law) of a party must be made in the Arbitration, and the failure to bring such Claim or counterclaim shall constitute a waiver of and a bar to bringing such Claim or counterclaim in a later Arbitration or action in court.

If a Party has Claims against others (each, a “Third Party”) related to or arising from

Claims against the other Party hereto (a “Related Claim”), then the Parties agree to consolidate the Arbitration of such Claims, brought on an individual basis, with the Arbitration of any and all Related Claims, brought on an individual basis, into one Arbitration to be governed by this Agreement, provided, however, that the Third Party must agree to be joined in the Arbitration of the Related Claims under this Agreement. The claims of Third Parties are not subject to the mandatory Mediation requirement set forth in section “C.” above. If any Third Party does not agree to be joined in the Arbitration of its Related Claim, then Arbitration under this Agreement shall proceed without that Third Party. The consolidation of these Related Claims will be administered by the Arbitrator initially selected as described in this section “E.”

F. Fees and Costs: The fees and costs imposed by the Arbitration Administrator

associated with the Arbitration, including the Arbitrator’s fees, shall be paid by Seller; however, Seller may request that the Arbitrator assess a portion of the fees incurred should Seller prevail in the arbitration. Unless inconsistent with applicable law or the Rules, the Parties will pay for their own arbitration costs (including fees and/or expenses of their own attorneys, experts, and witnesses), regardless of which party prevails in the arbitration.

132

G. Location: The Arbitration will be conducted, in one or more hearings, at a place

within the federal judicial district where Buyer’s or Beneficiary’s physical address is located, or in the federal judicial district within which a lawsuit between the Parties is pending and in which a motion to compel arbitration is made, provided the Parties agree such actions shall only be brought in the state or federal courts of New Jersey, or at any other place mutually acceptable to the Parties. If the Parties agree, then all or a portion of the Arbitration may be conducted by telephone conference. If the Parties cannot agree on the location of the Arbitration, then the Arbitrator shall have the power to decide where the Arbitration will be conducted.

H & I. [Intentionally deleted] J. Enforcement and Appeal of Award: The award and judgment by the Arbitrator shall

be final, binding, and enforceable in any court having jurisdiction over the Parties. The Arbitrator’s decision may be judicially reviewed on all grounds set forth in 9 U.S.C. § 10 and other applicable state law. Once final, an award may be enforced as a court judgment in accordance with federal or state law.

K. Exceptions: Notwithstanding any other provision of this Agreement, the Parties

agrees that Seller may use judicial process (filing a lawsuit) to obtain possession of the Home where Seller has not been paid in full as agreed under the Contract or to otherwise enforce Seller’s ownership interest in the Home, or enforce any related mortgage or deed of trust in Seller’s name. Notwithstanding the Rules, the Parties also expressly agree that this Arbitration Agreement does not apply to any Claims where the amount in controversy is less than the jurisdictional limit of the small claims court in the jurisdiction where Buyer resides, provided, however, that the Parties agree that any such small claims Claim may only be brought on an individual basis and not as a class action. Bringing a court proceeding described in this section “K.”, however, shall not be a waiver of any Party’s right to compel Arbitration of any other Claims, including Buyer’s counterclaim(s) in a suit brought by Seller.

L. Severability: If it is determined that any paragraph or provision in this Agreement

(with the exception of the Collective Actions Waiver in section “H.”) is illegal, invalid, or unenforceable, such illegality, invalidity or unenforceability shall not affect the other paragraphs and provisions of this Agreement and the remainder of this Agreement shall continue in full force and effect as if the severed paragraph or provision had not been included. Notwithstanding this severability provision or any other provision of the Contract or Agreement, if a court of competent jurisdiction determines the Collective Actions Waiver in section “H.”, to be illegal, invalid, unenforceable, or interpreted to not prevent any of the actions set forth in section “H.”, then the Parties agree that such waiver shall not be severed and that this Agreement shall be void in its entirety.

M. Survival of Agreement: This Agreement will survive and continue in full force and

effect notwithstanding assignment, assumption, rescission, cancellation, termination, amendment, payment in full, discharge in bankruptcy, or other expiration or conclusion of the Contract or any other contract or transaction between the Parties, unless otherwise agreed to in writing by the Parties. In addition, the Parties understand and acknowledge that the rights

133

afforded to Seller under this Agreement survive any assignment of the Contract by Seller and that Seller can enforce this Agreement in the event a Claim arises after the assignment of the Contract.

N. Rules of Construction: If there is a disagreement on the interpretation of this

Agreement, this Agreement shall be construed to require Mediation and Arbitration, rather than to defeat them, except for any disputes arising out of any contract or any other agreement for a consumer credit transaction secured by a dwelling, class actions, representative actions, collective actions and private attorney-general actions, which the Parties agree not to mediate or arbitrate. The Parties waive the rule of construction that requires a tribunal to construe a vague or ambiguous provision against the drafting party. This Agreement is the only agreement between the Parties regarding dispute resolution, and takes the place of and supersedes any other dispute resolution agreements to the extent they are inconsistent with this Agreement.

O. Entire Agreement: This Agreement encompasses the entire agreement of the

Parties with respect to the subject matter of this Agreement, and supersedes all previous understandings and agreements between the Parties, whether oral or written.

P. Court Waiver: For Claims subject to the terms of section “A.”, the Parties hereby

expressly and irrevocably waive any right to a trial by judge or jury. This waiver will remain enforceable even if any portion of this Agreement is otherwise found to be unenforceable. The Parties agree that this waiver is made knowingly, willingly, and voluntarily. This waiver does not apply to Claims filed in small claims court, pursuant to the provisions of section “K.”

Q. NOTICE: BUYER UNDERSTANDS THAT THIS DISPUTE RESOLUTION

AGREEMENT IS AN IMPORTANT AGREEMENT AND THAT THE TERMS OF THIS AGREEMENT AFFECT BUYER’S LEGAL RIGHTS. BY SIGNING THIS DISPUTE RESOLUTION AGREEMENT, BUYER ACKNOWLEDGES THAT BUYER HAS READ, UNDERSTANDS AND AGREES TO BE BOUND BY THIS AGREEMENT. BUYER AND SELLER FURTHER INTEND TO DIRECTLY BENEFIT AND BIND ALL BENEFICIARIES TO THIS AGREEMENT. IF BUYER DOES NOT UNDERSTAND ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT, INCLUDING ADVANTAGES OR DISADVANTAGES OF ARBITRATION, THEN BUYER SHOULD SEEK INDEPENDENT LEGAL ADVICE BEFORE SIGNING THIS AGREEMENT. THE PARTIES HEREBY WAIVE THEIR RIGHTS, IF ANY, TO TRIAL BY JUDGE OR JURY, WHERE APPLICABLE. THE PARTIES HAVE ENTERED INTO THIS AGREEMENT KNOWINGLY, WILLINGLY AND VOLUNTARILY.

___________________________________________ Buyer Date

___________________________________________ Buyer Date

___________________________________________ Seller Date

134

HOME CONSTRUCTION AGREEMENT

This Home Construction Agreement (the “Agreement”), made the (Day) day of (Month),

2014, by and among DSW Homes, LLC, a Texas limited liability company authorized to do

business in New Jersey, having its principal place of business at 1021 61st Street, Suite 200,

Building B, Galveston, TX 77551 (hereinafter referred to as the “Builder”) and

(Name_Homeowner), residing at (Number) (Street), Union Beach, New Jersey 07735,


WITNESSETH:

WHEREAS, Owner is the owner of certain premises situated at (Number) (Street), Union

Beach, NJ 07735, as more particularly described as attached hereto on Exhibit A (the

“Premises”);



homes were damaged in Superstorm Sandy. The program is known as Rebuilding Union Beach

(“Rebuilding Union Beach”);

WHEREAS, as Rebuilding Union Beach involves the Project Coordinator assisting the

Owner with the replacement of its destroyed home with a single-family replacement home (the

“Home”);



“Project Escrow Account”): (i) funds paid to Owner by Federal Emergency Management Agency

and (ii) any hazard and flood insurance payments paid to Owner (collectively, the “Owner’s

Funds”);

135





construction of the Home pursuant to the terms of this Agreement;

WHEREAS, Owner desired to have the Home constructed on the Premises by Builder

according to the plans and specifications attached hereto as Exhibit B; and

WHEREAS, Builder agrees to build the Home on the Premises upon the terms and

conditions hereinafter expressed;


agree as follows:

70. Builder agrees to furnish all of the materials and labor necessary for the

construction of the Home upon the Premises in accordance with the specifications and plans

previously provided by Builder to Owner and attached hereto as Exhibit B (collectively the

“Work”). Builder agrees to construct the Home in accordance with all laws, statutes (including,

without limitation, those promulgated pursuant to the Americans With Disabilities Act), codes,

rules, regulations, orders, ordinances and other requirements of any kind whatsoever issued by

any governmental or quasi-governmental authority having jurisdiction over the Premises and/or

persons engaged in performing the Work (the “Applicable Laws”). Builder shall at all times

during the performance of the Work engage a sufficient number of skilled subcontractors to

construct the Home. Owner agrees that the direction and supervision of Builder’s subcontractors

rest exclusively with Builder, and the Owner agrees not to issue any instructions to, or otherwise,

interfere with same. Owner further agrees not to negotiate for additional work with the Builder’s

136

subcontractors except with the Builder’s consent, which consent shall not be unreasonably

withheld.

71. Builder shall obtain on behalf of Owner all necessary approvals, licenses, permits

and certificates (collectively “Permits”) required for the commencement and completion of the

Work, and lawful occupancy of the Home. Owner shall be responsible for the payment of any

costs or fees required to be paid to governmental agencies with respect to any applications made

pursuant to the issuance of the Permits. Builder shall be responsible for the payment of the first

One Thousand Five Hundred Dollars (“Utilities Cost Cap”) of any costs, fees and deposits

required to be paid to utility providers in connection with the installation of utility services to the

Premises and for any shut-downs of utility services required for the completion of the Work.

Owner shall be responsible for any payments above the Utilities Cost Cap. Notwithstanding

anything herein to the contrary, Builder shall not be required to notify the property owners within

the vicinity of the Premises of the shutting down of any utilities required for the completion of

the Work, any such requirements shall be completed by or on behalf of the Owner.

72. Within ten (10) days of the execution of this Agreement, Owner shall provide to

Builder proof of Owner’s title to the Premises by way of an Owner’s title policy, recorded deed

or any other reasonable proof of ownership. Builder shall be responsible to commission and pay

for the costs of a survey of the Premises by a licensed engineer or surveyor, which shall indicate,

among other things, the precise location on the Premises of the Home to be built with designated

setbacks and side yard distances as required by local law; and (iii) arrange to have the corners of

the proposed Home marked by stakes in accordance with the said survey.


amount of $(Homeowner_Resources_XXXX). Attached hereto and incorporated herein as

137

Exhibit D is a letter from the Project Coordinator setting forth the amount and the source of the

proceeds being held in the Project Escrow Account and the Grant Funds available to the Owner

for the construction of the Home.

74. Builder shall, at its own cost and expense, procure and maintain insurance as

required by any applicable state worker’s compensation law and general and commercial auto

liability insurance in an amount not less than $1,000,000.00 per occurrence/$2,000,000.00

aggregate and excess liability umbrella in the amount of $1,000,000 per occurrence and in the

aggregate over the primary insurance. The insurance to be procured by Builder shall be

maintained in full force and effect at all times during performance and until the completion of the

respective portions of the Work and the acceptance of the Work by Owner in writing. Attached

hereto as Exhibit C is a copy of the certificates of insurance as required in this Agreement from

the Builder. All insurance maintained pursuant to this Agreement shall (i) provide that it may not

be canceled without at least thirty (30) days' prior written notice to Owner, (ii) with respect to its

general and automobile liability policies, name the Indemnitees (defined below) as additional

insureds and (iii) be carried with an insurer who is rated A-/VII or better by Best’s Key Rating

Guide and is authorized to provide insurance in the State of New Jersey.

75. To the fullest extent permitted by law, the Builder shall defend, indemnify and

hold harmless the Owner and any mortgagee of the Premises, The Borough of Union Beach,

New Jersey, Princeton Area Community Foundation, Hurricane Sandy New Jersey Relief Fund,

Robin Hood Foundation and any other party that Owner is contractually required to list as an

additional insured (each an “Indemnitee”, collectively the “Indemnitees”) from and against all

claims, damages, losses and expenses, brought by a third party arising out of or resulting from

performance of the Work as provided under this Agreement, provided that such claim, damage,

138

loss or expense is attributable to bodily injury, sickness, disease or death, or to injury to or

destruction of tangible property (other than the Work itself), but only to the extent caused by the

negligent acts or omissions of the Builder or anyone directly or indirectly employed by the

Builder or anyone for whose acts it may be liable, regardless of whether or not such claim,

damage, loss or expense is caused in part by an Indemnitee hereunder.

76. Builder agrees to perform or cause all Work required of it under this Agreement

to be performed in a good and workmanlike manner and in accordance with all Applicable Laws.




for in full before said change orders or orders for “extras” are made or installed. In no event

shall Builder order or institute any changes to the Work without the Owner’s consent in each

instance.

78. Builder shall maintain builders risk or other property insurance policy naming

Owner and Builder as insureds, as their interests may appear, and insuring the Home to be

constructed pursuant to the terms of this Agreement and any existing structure(s) for fire,

extended coverage, malicious mischief, vandalism and theft in an amount not less than the

contract price set forth and calculated herein. Said builders risk or like insurance policy is to be

delivered to Owner or its agents prior to the commencement of construction. Builder will be

responsible for any loss to the Home, other structure(s) or building materials not covered by

insurance. In no event will Owner be responsible for the Home or for maintaining builder’s risk

or any other kind of property insurance on the Home until the Home is constructed on the

Premises and accepted by the Owner.

139

79. Should the Work be stopped by any public or quasi public authority for a period







resume construction of the Home, nor have any liability to Owner for any consequential or other
















140



this Agreement, at law or in equity, terminate this Agreement. Notwithstanding the foregoing, in

the case of a default described in subsection (iv) above, Builder shall have a period of seven (7)

business days after notice from Owner thereof to cure any such default; provided, however, that

if the default cannot with due diligence be remedied by Builder within seven (7) business days, if

Builder proceeds as promptly as possible to remedy the defect and thereafter to prosecute the

remedy of the defect with all due diligence, the period of time after the giving of such notice

within which to remedy such defect shall be extended for such period as may be reasonably

necessary to remedy the same with all due diligence, but in no event beyond thirty (30) days. In

the event of a termination for cause, Builder will not be entitled to receive any further payment,

except as provided in this Agreement, and shall be liable to Owner for damages.

82. In addition to termination for cause as set forth in paragraph 12 above, Owner

may, at any time and at its sole discretion, terminate this Agreement in whole or in part on ten

(10) days’ notice to Builder, in which event Owner will pay Builder any amounts due for the

portion of the Work completed at the time of termination, so that Builder receives for such Work

an equitable portion of the Contract Price that would be due under this Agreement if the Work

were completed. If this Agreement is terminated for any reason set forth in this Agreement, the

Owner agrees that it shall pay Builder within thirty (30) days of the termination date any

amounts due for the portion of Work completed at the time of termination, provided that the

same was completed in accordance with the terms of this Agreement, including without

limitation, all of Builder’s costs and expenses incurred through the date of such termination. In

141

addition, Builder shall be entitled to payment for any material in transit that cannot be returned to

the manufacturer and any and all return shipping fees and restocking fees.

83. Builder agrees that occupancy shall be delivered by (Delivery_Set_Up Date),

2015, subject to extension on a day for day basis as a result of Force Majeure delays. “Force

Majeure” means delays encountered by Builder in performing its obligations under this

Agreement that results in a delay in achieving completion of the Home, but only for a reasonable

length of time, to the extent caused by material or labor shortages; delays caused by utility

companies and local police and fire departments that are responsible for turning off utilities and

closing streets; unusually severe adverse weather conditions; strikes or labor disputes, riots, war,

or insurrection; or acts of God or other similar causes beyond the Builder’s control.

Notwithstanding the foregoing, a delay shall only constitute Force Majeure if (i) Builder has

taken all reasonable, necessary and appropriate steps to avoid or minimize the delay, (ii) such

event is not caused by the act or omission of Builder or its subcontractors and (iii) the event does

not involve the negligence or willful misconduct of the Builder or any subcontractor. Occupancy

shall be deemed delivered upon the issuance of a temporary certificate of occupancy by the

construction official of the Borough of Union Beach, subject to the completion of incomplete

items within the time permitted by said construction official. Owner agrees that the decision to

purchase the Home is not based upon any representations as to the anticipated date of occupancy.

Any delay caused by Force Majeure events shall not constitute abandonment by the Builder and

shall not be included in calculating time frames for payment or performance. Prior to payment

by the Owner of the final payment pursuant to paragraph 15 below, Owner shall inspect the

Work with Builder and the parties shall agree upon a comprehensive list of items to be

142

completed or corrected prior to final payment (the “Punch List Items”). Builder agrees to

complete any Punch List Items promptly.



Builder for the construction of the Home and the performance of the Work the total contract

price of (the “Contract Price”). The Contract Price shall be payable as follows:

(1) Upon the execution of this Agreement, twenty percent (20%) of the Contract Price;

(2) Upon completion of the foundation of the Home, twenty percent (20%) of the Contract

Price;

(3) Upon completion of the framing of the Home, twenty percent (20%) of the Contract

Price;

(4) Upon installation of the rough utilities (plumbing, electrical, gas and sewer), twenty

percent (20%) of the Contract Price; and

(5) The balance upon issuance of the temporary certificate of occupancy (to be held in

escrow by Builder’s New Jersey attorney until issuance of a final certificate of occupancy). For

purposes of items (2) through (4) above, completion shall be determined by the building

inspector of the Borough of Union Beach, Monmouth County, New Jersey. Notwithstanding the

foregoing, Project Coordinator shall withhold one-hundred and ten percent (110%) of the cost to

complete the Punch List Items from the Contract Price until such time that the Punch List Items

are completed by Builder.

Notwithstanding the foregoing, and subject to any changes agreed upon by Owner in

writing pursuant to the terms of this Agreement, in no event shall the Owner be obligated to pay

more than the Contract Price for the Work. Interest shall begin to accrue on all sums due Builder

143

under this Section 15 and under other sections of this Agreement five (5) business days after the

date said payment is due at the rate of 10% per annum, provided that the same is not in good-

faith being disputed by the Owner.









provision, Owner agrees to execute any reasonable assignments and other such documents as

may be required by its insurance company from time to time.

87. IN THE EVENT OF ANY LEGAL PROCEEDINGS OR LITIGATION

BETWEEN THE PARTIES HERETO, ARISING OUT OF THIS AGREEMENT, EACH OF

PARTY HEREBY WAIVES THE RIGHT TO A TRIAL BY JURY IN SUCH LEGAL

PROCEEDINGS OR LITIGATION, AND AGREES TO PAY THE COSTS,

DISBURSEMENTS AND REASONABLE ATTORNEYS’ FEES INCURRED IN SUCH

LITIGATION BY THE PREVAILING PARTY.



character and legal status of personal property owned by Builder; and if said Contract Price is not

paid in full, Builder shall have the right and authority to enter into and upon the Premises for the

144

purpose of removing any such building materials supplied by Builder and not yet paid for by

Owner that is not affixed to the property at any time and without notice or the prior consent of

the Owner.




realty. By executing and delivering this Agreement, Owner hereby grants to Builder, a security
















145


except for: ________________________. No mortgage liens shall be filed against the Premises

until payment in full under this Agreement without the express written consent Builder. If a

judgment is rendered in a court of record against Owner, or a construction lien, or Notice of

Unpaid Balance, is filed against the Premises for work which is not the responsibility of Builder,

and if the said judgment or construction lien remains open of record for a period of thirty (30)

days after Builder gives notice to Owner thereof, or in the event that Owner becomes insolvent

and takes advantage of any insolvency proceeding or is adjudicated a bankrupt, then, and in any

such event, Builder shall be relieved of any further obligations to continue with the performance

of its work hereunder, and shall have a claim against Owner for any portion of the Work

performed pursuant to this Agreement, that was not paid for by the Owner. In no event shall

Owner be liable to Builder for or any consequential or punitive damages.




93. Builder participates in the New Jersey Home Owner’s Warranty Program as




Registration Number of Builder is #045907. Builder makes no housing merchant implied

warranty or any other warranties, express or implied, in connection with this contract or the

home, and all such warranties are excluded, except as provided in the New Jersey Department of

Community Affairs approved limited warranty to be delivered to Owner upon delivery of

146

possession of the completed Home to the Owner in substantially the form annexed to this

contract at Exhibit E. The express terms of the limited warranty are hereby incorporated in this

Agreement, and there are no warranties which extend beyond the face thereof, except as

otherwise set forth herein and in the rider(s) annexed hereto.






95. RIGHT OF CANCELLATION. Owner, may cancel this transaction at any time








hereto.






147




Premises and necessary for the construction of the Home is not included in the Contract Price,

shall be paid by Owner in addition to the Contract Price upon demand by Builder.












instrument.

148



BUILDER:

DSW HOMES, LLC

By:___________________________

Name:

OWNER:

_____________________________

Name:

______________________________

Name:

149

SCHEDULE A


Date: ________________







CANCELLED.










THE BUILDER , OR IF YOU AGREE TO RETURN THE GOODS TO THE BUILDER AND

FAIL TO DO SO, THEN YOU SHALL BE LIABLE FOR THE COSTS OF THE GOODS.

150




DSW Homes, LLC

_______________________

_______________________


Owner:________________________________ Dated:_____________________

Owner:________________________________ Dated:_____________________



Owner:_______________________________ Dated:_____________________

Owner:_______________________________ Dated:_____________________

151

EXHIBIT A


Block # 198

Lot # 6

152

EXHIBIT B


153

EXHIBIT C

INSURANCE CERTIFICATES OF BUILDER

154

EXHIBIT D


155

EXHIBIT E

HOMEBUYER WARRANTY