Rebuilding Union Beach Project Guide

REBUILDING UNION BEACH

Project Guide

October 1, 2015

TABLE OF CONTENTS

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

THE HOMES 15 16 17 19 20 20 20 21 23 24 25 26 26 27 27 28

Modular Construction Builder Selection Criteria Modular Delivery & Installation Traditional Onsite Construction Resilient Features Sustainable Features Energy-Efficient Features Site & Landscape Design Design Features Material & Color Options Accessibility HVAC / Plumbing / Electric Solar Power Utilities Communications & Technology Home Models

APPENDIX 45 46 47 49 50 51 52 53 57 58

Local Relief Efforts Staff & Information Resources Timeline Home Construction Milestones Supporters Budget Homeowner Grant Resources Contractor Requirements Utility Check List 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 costeffective 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 Maier

Founder, Rebuilding Union Beach Borough Administrator, 2011-2014 RebuildingUnionBeach.org

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UNION BEACH, NEW JERSEY

3

REBUILDING UNION BEACH Rebuilding Union Beach is a demonstration

project to design, purchase, and install modular

New Jersey

homes for 12 families in Union Beach, NJ, whose homes were destroyed by Hurricane Sandy.

Newark

Rebuilding Union Beach also built two homes

onsite using traditional construction methods,

Jersey City

New York City

enabling the comparison of modular and traditional construction.

Project Goals:

Brooklyn

● To create an affordable model for families who lost their homes in Hurricane Sandy to return to new, storm-resilient, sustainable homes.

Staten Island

● 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

Raritan Bay Union Beach, NJ

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

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

HURRICANE SANDY IMPACT

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

50 homes completely destroyed 112 homes deemed safety hazards 1,000 substantial damage letters issued indicating damage value of more than 51% of the assessed value More than

5

15% of the housing stock demolished

EXECUTIVE SUMMARY The Rebuilding Union Beach demonstration project

expectations, staff members with the right skillsets,

in Union Beach whose homes were destroyed by

port services. The shifting landscape of post-storm

designed, purchased, and built 14 homes for families 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

and organization partners to provide critical sup-

funding and housing assistance was the first planning 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.

respective benefits and challenges are documented

Our team spent a significant amount of time and

New Jersey caused increased costs for labor and

issues of participating families. After losing their

in this guide. The post-storm construction boom in

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-

effort addressing the social, medical, and financial 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-

tion quality issues which were further compounded

ance claims, grant assistance programs, and other

was chosen for the majority of homes because it of-

families focus on rebuilding and financial planning in

by inclement weather. Modular home construction

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

regulations and requirements. This support helped

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 possible. 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.

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PROJECT FUNDING

Major 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.

Welcome Home event, June 18, 2014

LEGAL CONSIDERATIONS

Given 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.

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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 purchas ing 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.

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HOMEOWNER SELECTION

Despite the tremendous need for housing in the after-

were reviewed without revealing names or addresses.

financially qualified families who were interested in

4. Secondary financial review: Qualified applicants

math of Hurricane Sandy it was challenging to identify 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

“

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.

9

(159 applicants reviewed and 69 applicants approved) 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.

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 possessions caused a significant increase in foreclosures.

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

Rebuilding Union Beach participants who had

confirmed the foundation was completed.

proceeds and other awards they received, includ-

from homeowners to contact lenders and insurers

earmarked to rebuild the home’s foundation. (ICC

release of funds.

by the homeowner’s insurers.) Homeowners were

company to release these funds directly to the

owner and contractor, and drawings approved by the

released directly to the homeowner are not

insurance were required to contribute any insurance

● Lawyers or case managers should obtain releases

ing the Increased Cost of Compliance (ICC) funds

directly on their behalf. This helps expedite the

Funds are paid through the NFIP and distributed

● Advise the insurance company and mortgage

required to provide a signed contract between home-

project if possible. This avoids any risk that funds

local authorities. In some cases, 50% of the $30,000

contributed to the project. Some lien-holders issued

cases, homes had to be substantially completed prior

● Ensure homeowners are protected during

maximum ICC funds were provided upfront. In most 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.

double-endorsed checks, which caused delays.

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 construc tion 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.

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SETTING EXPECTATIONS

MUNICIPAL REGULATORY PROCESS

Realistic project outcomes and expectations should

The construction process in Union Beach was

outset of the program. Construction setbacks and

Borough’s Building Department staff. Since

be communicated to homeowners clearly from the

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.

aided significantly through the support of the

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.

WHAT WE LEARNED

In order to support the selection process for

The original goal was to build homes in 90 days

access was obtained to the Coordinated Assistance

● Construction delays should be expected.

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-

Rebuilding Union Beach and other Borough grants 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 assistance 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.

ments, contacting utilities to make connections,

● Develop and maintain relationships with

● Do not commit to anything that is not funded.

This helps to identify solutions, cut through

ments and always note that issues may arise

and policy.

● Homeowner finances and health may change

Code Officials to stay abreast of changing

● Listen to homeowners and identify social service

● 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.

and providing financial and other updates.

local, regional, state and federal agencies.

● Be cautious about providing schedule commi-

red tape, and monitor changes to regulations

that impact the construction schedule.

● Attend community forums and work with local

over time. Be aware of their needs and challenges.

regulations as post-storm procedures develop.

resources to make appropriate referrals. Staff should not try to work outside their areas of expertise.

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INSURANCE AND FOUNDATION DESIGN Since standard homeowners insurance doesn’t

we built homes one foot higher than required by

from hurricanes, heavy rains, and tropical storms.

by the NFIP Increased Cost of Compliance Grant.

cover flooding, it’s important to have flood protection The National Flood Insurance Program (NFIP)

code. The cost of foundation work was reimbursed

provides a means for property owners to financially

The installation of the piles required careful plan-

homeowners, renters, and business owners.

and samples were taken in multiple locations to

adopt and enforce ordinances that meet or exceed

Pile tests by a licensed engineer were performed on

protect themselves by offering flood insurance to

ning. Soil conditions varied throughout the Borough,

Communities participating in the NFIP agree to

determine the estimated maximum length of piles.

FEMA requirements to reduce the risk of flooding.

each pile at each site to determine the correct depth

Structural considerations for foundation design

of neighboring homes were taken, and seismic

requirements, and cost. Rebuilding Union Beach

foundation to protect against any potential claims of

of the piles. Before-and-after photos of foundations

included FEMA standards, local building code

testing was performed adjacent to each neighboring

homes are located in the FEMA-designated A-Zone

damage due to pile driving.

(which are subject to inundation by 1 percent annual chance flood events.) The homes incorporate some

WHAT WE LEARNED

V-Zone standards such as piles instead of block

● Wood cross bracing was bolted to piles on some

homes as needed to mitigate lateral movement of

foundations. The open arrangement of the piles allows for objects to pass between piles freely

the homes resulting from wind load.

during a storm. We considered several foundation

● Planting and trellising was used to cover bracing.

block foundation walls, and poured concrete foun-

homeowners who felt vibration in the floor while

types including timber piles, concrete piles, concrete

● Anti-vibration pads were recommended to those

dation walls. Timber piles were selected as the most cost-effective option. The costs of different foundation types may vary

using washing machines and dryers.

● Inclement weather may cause delays.

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,

Driving timber piles

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DEMOLITION Residential 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-

● 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.

gram benefited the community by removing a hazard

● Heavy equipment had to be moved by trailer from

making it possible for people to rebuild, and facilitat-

● The volunteer fire company helped hose down

to public health and safety, lessening future blight,

site to site to protect roads from damage.

ing the recovery of community property values.

the structures during demolition in order to reduce

There are stringent rules governing removal and

● During demolition, volunteers need to be sensitive

demolition of debris and asbestos. These became

more restrictive during the recovery process. Structures 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.

“ 13

WHAT WE LEARNED

the spread of dust and debris.

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.

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

”

—Kathy M.

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.

DEMOLITION: MAY 2013

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

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MODULAR CONSTRUCTION

Modular, panelized, and traditional onsite construction 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. Modular homes are constructed in accordance with state and local building codes in the controlled environment of a production facility, transported in one or

more sections, and secured to a permanent structural 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-

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 facility 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. Rebuilding 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.

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 framing 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 material 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 associated utility line work that is not necessary in traditional on-site construction.

Without careful planning these issues can cause project delays as well as

15

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

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

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

● Able to be classified a RREM-approved builder

WHAT WE LEARNED

Eight different home models were selected

New Jersey at the time of the storm. Therefore, we

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.

There were no modular manufacturers located in

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 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.

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

17

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

MODULAR DELIVERY & INSTALLATION Delivery: 8AM

Arrival at site: 9AM

10AM

11AM

11:15AM

11:30AM

2PM

2 Weeks Later

1 Month Later

18

TRADITIONAL ONSITE CONSTRUCTION As 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 extensive delays. We determined the fastest way forward was to work with the contractor to revise the specification, modify the design, and build the homes onsite using traditional construction methods.

WHAT WE LEARNED

â—? 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.

â—? 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 CONSTRUCTION

19

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 factory, 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

Modular construction holds great potential as a

available and experienced labor. All of these factors

housing built in a controlled production facility is

schedule goals. The extra costs offset the cost sav-

struction schedules, and lower costs than traditional

delivery and crane operations. Additionally, achiev-

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.

labor was an ongoing challenge and required daily

solution to post-storm housing. In our experience,

made it difficult to achieve our quality, cost, and

more likely to achieve higher quality, shorter con-

ings we anticipated as a result of eliminating truck

onsite construction. However, challenges remain:

ing an appropriate level of quality from available

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.

SUSTAINABLE FEATURES

RESILIENT FEATURES ● Homes are elevated one foot above local code

● Flood water mitigation and water conservation

to enhance safety and qualify homeowners for

improve drainage, rainwater catchment, rain

requirement and three feet above FEMA guidlines

features include permeable driveways to

lower insurance premiums. This is the maximum

gardens, and erosion-resistant native planting.

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.

● Renewable and non-toxic materials such as

bamboo, linoleum flooring and zero-VOC paint. ● Materials with recycled content, including roof shingles and cement board.

● Houses are structurally engineered to withstand

● Water-saving fixtures.

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.

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

”

—Jeannie P.

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.

20

SITE & LANDSCAPE DESIGN 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 parking, shaded 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

21

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 water, erosion, and flooding. These include collecting

storm water in bioswales and rain gardens that have

PLANT LIST 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 sustainable 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. Rebuilding 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.

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).

Trees Crepe Myrtle, Lagerstroemia Red Maple, Acer rubrum

Norway Pine, Pinus resinosa Linden, Tilia Americana

River birch, Betula nigra

Swamp white oak, Quercus bicolor

Small to Medium Trees Serviceberry, Amelanchier canadensis Downy Serviceberry, Amelanchier arborea

Flowering dogwood Cornus florida Redbud, Cercis canadensis

Shrubs Bayberry, Myrica pensylvanica Beach Plum, Prunus maritima

Mountain Laurel, Kalmia latifolia Rhododendron, Rosebay rhododendron

Grasses Zebra Grass, Miscanthus

sinensis zebrinus

Maiden Grass, Miscanthus sinensis Fescue/Bluegrass/ Rye Grass Seed Mix

Perennials Catmint, Nepeta

Coneflower, Echinacea purpurea

Rockbed in Bioswale ¾ River Jack Rock Bioswale absorbs water and reduces run-off.

22

DESIGN FEATURES 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

Front porches extend the living space.

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 home-

owners 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

Tall windows increase natural light.

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.

23

Easily graspable stair rails promote safety.

MATERIAL & COLOR OPTIONS

MARSH

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

Roof

PLAINS

Weathered Wood

Roof

FOREST

Weathered Wood

Roof

OCEAN

GLACIER

Weathered Wood

Roof

Slate

Roof

Slate

Siding

Trim

Cement Board: Heathered Pure Moss White

Siding

Trim

Cement Board: Monterey White Taupe

Siding

Trim

Cement Board: Woodstock White Brown

Siding

Trim

Cement Board: Light Mist White

Siding

Bedroom Options

Floors

Trim

Cement Board: Boothbay White Blue

Carpet: Gravel

Carpet: Carpet: Carpet: Timberline Cornflower Chestnut

Door

Floors

Fibreglass: Dark Ash

Bamboo: Natural

Door

Floors

Fibreglass: Distant Thunder

Bamboo: Natural

Door

Floors

Fibreglass: Afternoon Tea

Bamboo: Carbonized

Door

Floors

Fibreglass: Cannon Gray

Bamboo: Carbonized

Door

Floors

Fibreglass: Knight’s Armour

Bamboo: Natural

Bamboo

Living & Hallway & Dining Closet Walls Walls

Ionic Ivory

Creamy

Living & Hallway & Dining Closet Walls Walls

Creamy

Creamy

Living & Hallway & Dining Closet Walls Walls

Cargo Pants

Creamy

Living & Hallway & Dining Closet Walls Walls

Olympus White

Creamy

Living & Hallway & Dining Closet Walls Walls

Comfort Gray

Creamy

Comfort Gray

Walls

Creamy

Ionic Ivory

Bathroom & Laundry Walls Floor

Linoleum: Frost

Creamy

Bathroom & Laundry Floor Walls

Linoleum: Cloudy Sand

Creamy

Bathroom & Laundry Floor Walls

Linoleum: Silt

Creamy

Bathroom & Laundry Floor Walls

Linoleum: Silver Shadow

Creamy

Bathroom & Laundry Floor Walls

Linoleum: Blue Heaven

Creamy

Patient White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Ceilings & Trim

Extra White

Cargo Pants

Olympus White

Kitchen & Bathroom Cabinet Counter

Maple: Natural

Laminate: Ivory Kashmire

Kitchen & Bathroom Cabinet Counter

Maple: Natural

Laminate: Ivory Kashmire

Kitchen & Bathroom Cabinet Counter

Oak: Medium

Laminate: Graphite Twill

Kitchen & Bathroom Cabinet Counter

Maple: White

Laminate: Geo White

Kitchen & Bathroom Cabinet Counter

Maple: Natural

Laminate: Neutral Twill

24

ACCESSIBILITY The 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.

Home Model E on page 37 incorporates these wheelchair accessible features: ● Wider hallways and larger rooms to

accommodate wheelchair-turning radius.

WHAT WE LEARNED

● Lower kitchen counter and higher cabinet base.

● Address accessibility issues early in the project as

for users of certain types of wheelchairs.

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.

● Clear knee-space below sinks & stove (applicable ● 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.

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

● Electrical outlets for medical equipment.

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

● Stair landing added for homeowner comfort and

● 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.

25

ACCESSIBILITY FEATURES

● Lower stair riser height for use in emergency. potential use by emergency services.

HVAC / PLUMBING / ELECTRIC

SOLAR POWER

Rebuilding Union Beach selected tankless hot water

Solar power gives homeowners more independence

savings and Energy Star ratings. These systems,

offset property tax increases. This contributes to the

utilization efficiency heating systems, work best

vides ecological benefits. In addition, should elec-

Care should be used in insulating the appliances

in the home and if gas services are not damaged,

to give homeowners a mixed power use in case of

temporary housing. We partnered with GRID Alter-

heaters in a majority of the homes for their space

from increasing utility rates and generates income to

as well as the Energy Star 90% annual fuel

homeowner’s long-term financial stability and pro-

in moderately temperature-controlled enclosure.

trical power be lost, solar can provide some power

for optimal performance. Gas ranges were selected

there is a reduced likelihood of the resident needing

future storms.

natives, a nonprofit solar installer that works exclu-

WHAT WE LEARNED

sively with qualifying low-income residents (80%

● Increase insulation below homes elevated on piles

area median income).

They installed solar panel systems in six of the

to mitigate cold outside air below home. ● Ensure pipes in floor cavity are located in the top

Rebuilding Union Beach

underside of the floor.

leasing model provid-

third of the cavity and strapped tight to the

● 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

homes. The prepaid

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.

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.

“

Solar panels have reduced our electric bill by 80%.

”

—Robert B.

26

UTILITIES

COMMUNICATIONS & TECHNOLOGY

Utility company guidelines are prone to change in

A one-stop-shop presence at Borough Hall

community and to ensure the safety of the work

organizations and made access to resources easier

the aftermath of a disaster in order to protect the

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.

facilitated communication between disaster relief

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 spreadsheets, 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 exported 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 misplaced. Shared calendars were used to

● Contact all utilities during the design/planning

coordinate schedules and events. Creating a

scheduling delays for work. (Utilities may need 8

increased the amount of information available

● Ask for an alternate rain date when initially

distribution of resources. Using one database to

phase and maintain regular contact to avoid

database for use by the disaster resource center

weeks or more to schedule fieldwork.)

about each family, resulting in a more streamlined

scheduling the appointment. (A weather-related

track all programs helped our team identify unmet

delay could cause a 30-day delay in rescheduling.)

needs and spot potential program abuses.

● Hold group meetings with all utilities, including a

Initially, flyer drops throughout the community

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.

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.

27

HOME MODELS

“

My home is my castle.

It’s beautiful.

—Joe F.

”

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.

29 31 33 35 37 39 41 43

Model A Model B Model C Model D Model E Model F Model G Model H

28

Home Model A

29

Home Model A 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

30

Home Model B

31

Home Model B TYPE: 2 Bedroom, 1 Bath, 952 square feet SIZE: 34’ x 28’ double-section modular home PORCH: 22’ x 6’ LOT: 100’ x 100’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 8’-0” CEILING HEIGHT: 8’-6” PARKING: 2 cars on permeable driveway pavers CONSTRUCTION COST: $191,000 including survey, foundation, delivery, and installation ($201 per square foot) TOTAL COST: $229,000 including demolition, landscaping, appliances, furniture, and solar panels

32

Home Model C

33

Home Model C TYPE: 2 Bedroom, 2 Bath, 952 square feet SIZE: 34’ x 28’ double-section modular home PORCH: 22’ x 6’ LOT: 75-100’ x 100’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 8’-0” (home pictured) CEILING HEIGHT: 8’-6” PARKING: 2 cars on concrete slab driveway (due to high water table) CONSTRUCTION COST: $188,000 including survey, foundation, delivery, and installation ($198 per square foot) TOTAL COST: $210,000 including demolition, landscaping, appliances, furniture, and solar panels

34

Home Model D

35

Home Model D TYPE: 3 Bedroom, 2 Bath, 1,176 square feet SIZE: 30’ x 41’ double-section modular home PORCH: 16’ x 6’ LOT: 50’ x 100’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 8’-0” CEILING HEIGHT: 8’-6” PARKING: 2 cars on permeable driveway pavers CONSTRUCTION COST: $208,000 including survey, foundation, delivery, and installation ($177 per square foot) TOTAL COST: $251,000 including demolition, landscaping, appliances, furniture, and solar panels

36

Home Model E

3937

Home Model E 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’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 9’-0” CEILING HEIGHT: 9’-0” PARKING: 2 cars on permeable driveway pavers CONSTRUCTION COST: $271,000 including survey, foundation, delivery, installation, and elevator ($226 per square foot) TOTAL COST: $299,000 including demolition, landscaping, appliances, furniture, and solar panels

38

Home Model F

39

Home Model F TYPE: 3 Bedroom, 2 Bath, 1,225 square feet SIZE: 46’ x 27’ double-section modular home PORCH: 19’ x 6’ LOT: 100’ x 100’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 9’-0” CEILING HEIGHT: 8’-6” PARKING: 2 cars on permeable driveway pavers CONSTRUCTION COST: $220,000 including survey, foundation, delivery, and installation ($180 per square foot) TOTAL COST: $257,000 including demolition, landscaping, appliances, furniture, and solar panels

40

Home Model G

41

Home Model G 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” CEILING HEIGHT: 8’-6” PARKING: 2 cars on concrete slab due to high water table CONSTRUCTION COST: $254,000 including survey, foundation, delivery, and installation ($188 per square foot) TOTAL COST: $328,000 including demolition, lift to porch, landscaping, appliances, furniture, and solar panels Second Floor

42

Home Models H

43

Home Model H TYPE: 3 Bedroom, 2 Bath, 1,400 square feet SIZE: 26’ x 54’ double-section modular home PORCH: 24’ x 8’ LOT: 50’ x 100’ SETBACKS: 20’ front, 5’ side, 30’ rear HEIGHT ABOVE BASE FLOOD ELEVATION: 7’-0” CEILING HEIGHT: 9’-0” PARKING: 2 cars on permeable driveway pavers CONSTRUCTION COST: $248,000 including survey, foundation, delivery, and installation ($177 per square foot) TOTAL COST: $296,000 including demolition, landscaping, appliances, furniture, and solar panels

44

LOCAL RELIEF EFFORTS The Borough of Union Beach created a collaborative

Local government support helped enable demolition

from funders and volunteer and relief organizations

Information about health and safety concerns was

environment that brought in a high level of support

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

broadcast to residents through a borough-administered 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.

gaps in insurance funding, and establish the need

● Local resource centers allow services to develop

write grant applications that accurately represented

organization restrictions. In our experience,

was received to issue $500 gift cards and appliances

neighbor or local resource center than a large

materials were also available.

● Donations of products and services are an

for rebuilding grants. This information helped staff

organically outside of non-governmental

the community’s needs. As a result, a major grant

residents were more likely to take help from their

to eligible residents. Donations of food and building

organization.

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, organize volunteers, and increase safety by coordinating 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.

45

teams to obtain Right of Entry to private homes.

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.

REBUILDING UNION BEACH PROJECT TEAM

INFORMATION RESOURCES

Jennifer Wenson Maier, Founder

Project guides and research information may be

Jovia Nierenberg

Affordable Housing Alliance

Scott Lauer

Kevin Watson

Brenda Zimmerman

found on these organizations’ websites: AFH Biloxi Model Home Program 2008 AFH Rebuilding 101 Manual 2010

Architectural Design Consultant

FEMA Storm Mitigation

Landscape Design Consultant

Insurance Institute for Business & Home Safety

Rosen, Kelly, Conway Architecture & Design Marpillero Pollak Architects Project Guide Design Jeff Hand Design

Architectural Drawings Corner Consulting Photography

Kevin 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

FEMA Planning for Post Disaster Gulf Coast Community Design Studio

Alternative 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

46

REBUILDING UNION BEACH TIMELINE February 2013

October 2012

Hurricane Sandy hits Union Beach Borough Hall Senior Center converted to a resource center Grassroots volunteer coordination begins

NOV

DEC

August/September 2013

Mayor appoints Selection Committee Preliminary foundation drawings received

JAN

FEB

2013

November 2012

FEMA Disaster Recovery Center opens AmeriCorps begins volunteer coordination with Gateway Church of Christ

MAR

APR

MAY

JUN

Law firms begin drafting contracts

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

January 2014

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

November 2013

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

JUL

AUG/SEPT

OCT

NOV

DEC

2014

JAN

FEB

July 2013 March 2013

Home manufacturers are vetted and factory tours begin Burners Without Borders demolishes 149 structures in 4 months

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

February 2014

Home orders placed Contract signing for families continues

October 2013

Second round of financial interviews begins Hurricane Sandy first anniversary

January 2013

47

Ongoing coordination of home specifications, site planning and budgeting

Financial interviews begin Union Beach issues bid for asbestos abatement Meeting with Federal, State and County agencies regarding interpretion of demolition guidance document Homeowner Selection Committee holds first meeting

Burners Without Borders begins free demolition program

OCT

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

April 2013

December 2012

2012

June 2013

Rebuilding Union Beach grant proposal submitted to Robin Hood Foundation Robin Hood Relief Fund awards $725,000 Union Beach database project begins FEMA rules on asbestos inspection change and demolition is halted Soil testing begins

May 2013

Hurricane Sandy NJ Relief Fund awards $1,500,000 Request For Proposals sent to modular manufacturers NJ RREM and Resettlement grant application opens Law firms develop draft contracts

December 2013

Field visits with utility companies to confirm delivery logistics

REBUILDING UNION BEACH TIMELINE March 2014

Delivery coordination with utilities, truckers, crane operators, manufacturers, & contractors

April 2015

Onsite construction begins on last two homes Warranty inspection and repairs made to first twelve homes

July 2014

First solar system installed Eight families move home

September 2014

Five homes issued final Certificate of Occupancy Contractor scope review for final two homes, including first fully wheelchair accessible home

May 2014

2014

APR

April 2014

MAY

Pile foundation installation begins Modular homes arrive from manufacturer

JUN

Project receives American Planning Association NJ Award

June 2015

November 2014

Homes are lifted and set begins Appliance and furniture deliveries begin First two families move into their new homes

MAR

January 2015

Framing completed on final two homes

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

JUL

NOV SEPT OCT AUG DEC

2015

APR JUN JAN FEB/MAR MAY JUL May 2015

August 2014

Two families move home

December 2014

Seven homes issued final Certificate of Occupancy

Piles driven for final two homes

Families selected for final two homes

June 2014

Welcome Home Event with NJ First Lady Mary Pat Christie, Chair, Hurricane Sandy NJ Relief Fund Two families move home

February/March 2015

September 2015

Appliance and furniture deliveries for final two homes Last two families move home

Record low temperatures; Contractor performs remedial work to insulate pipework within floor cavity

October 2014

Scope finalized for final two homes

48

HOME CONSTRUCTION MILESTONES

MONTH 1

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.

MONTH 5

MONTH 4

MONTH 3

MONTH 2

Site surveyed and pile locations staked Piles driven and banded*

MONTH 11-12

MONTH 6 49

Contract signed and home order placed.

Construction start on assembly line* Begin construction permit process

Modular sections delivered, lifted onto foundation, and bolted together with hinged roof lifted* Porches, stairs and AC platform constructed Sewer/Utility lines installed Siding installed AC and Heating units installed Utility connections made* Driveway constructed Site graded Flooring installed Paint applied Appliances delivered & installed* Landscaping installed Solar panels installed Final inspections* Contractor/Homeowner walk-through and agree on list of outstanding items Contractor completes outstanding items Final clean Certificate of Occupancy issued* Furniture delivered Homeowner move-in Warranty inspection and repairs Final payment issued to Contractor

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

REBUILDING UNION BEACH SUPPORTERS Major Financial Support

Hurricane Sandy New Jersey Relief Fund Robin Hood Sandy Relief Fund

Additional Financial Support Borough of Madison, NJ Johnson & Johnson Information Technology Shared Services Jon Bon Jovi Soul Foundation KPI Bridge Oil Monmouth County Long-Term Recovery Group New Jersey Natural Gas Princeton Area Community Foundation Rotary International District 7500

Donations & Professional Services A Room in Our Hearts Alex McCartney Contracting Inc. American Standard Brands John Beres, Alliant Insurance Services Burners Without Borders Buhler Ford Casola Farms Corner Consulting DSW Homes Environmental Health Investigations, Inc. Foremost Industries Gateway Disaster Relief Gibbons Law Green Depot GRID Alternatives High Socks for Hope Hoagland, Longo Home Depot, Hazlet, NJ James Hardie Building Products Jeff Hand Design Jersey Shore United, Toms River, NJ Jewish Federation of Greater MetroWest NJ Marpillero Pollak Architects Martin Laskowski Landmark Companies, LLC

Wade Martin, Morgan Stanley Matrix New World Engineering McCarter & English, LLP Mellick-Tully and Associates, PC New Jersey Phoenix Operation HOPE, HOPE Coalition America

PBA Engineering, PC Petruzelli General Contractors Chris Placitella, Cohen, Placitella & Roth Portlight Strategies, Inc. Princeton University RAINE Foundation Rebuild/Recover Richard E. Stockton & Associates Inc. Rosen, Kelly, Conway Architecture & Design Rutgers University Samaritan’s Purse SRB Help Center All American Subaru & Subaru of America Target Steven Watson Wimbledon Properties Volunteer Lawyers for Justice Patti Dickens, Bill Gallagher, Carl Williamson, and...

Thousands of volunteers from across the country

Institutional Support State 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

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REBUILDING UNION BEACH BUDGET Utility companies in Union Beach supported residents and Rebuilding Union Beach by waiving or discounting 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

Notes

Major Grants

Hurricane Sandy NJ Relief Fund, Robin Hood Relief Fund

$2,440,000

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

Donated Services NA

TOTAL $3,730,000

Plumbing fixtures, furniture Legal counsel, case management, financial counseling, family counseling, demolition, grading & fill, photography

Expenses

Amount Notes

Expenses

$52,000

Structural cross-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

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Does not include $50,000 retained for one year contingency

HOMEOWNER GRANT RESOURCES

Grant

Timetable Amount Purpose

Source

Average Home Available upon $150,000 Home construction Hurricane Sandy Gap Funding qualifying includes contingency NJ Relief Fund &

Robin Hood Relief Fund Increased Cost of During and/or $30,000 Homeowners apply to their National Flood Compliance (ICC) after construction maximum flood insurer; Eligible expenses Insurance Program

of home. Available include engineer fees, (administered by

up to four years foundation, construction, homeowner’s insurer)

post-storm. and home elevation

Accessibility

Contingent upon availablily

$3,000 maximum

County Long-term Ongoing Varies Recovery Groups - Unmet Needs

Subsidize costs related to lift in- Portlight Strategies stallation and accessibilty needs Homeowners apply through Non-profit organizations case managers for rent, and private donations construction costs, accessibility needs, furnishings, etc.

Materials, Grants, Ongoing Varies Includes purchase of and Volunteer Labor construction materials, mold

remediation and removal,

demolition, and reconstruction assistance

Various donors. Refer to page 50.

Emergency Grant

Emergency needs

FEMA

Gift cards for local retailers for food, construction materials, and gas

Robin Hood Relief Fund

Weeks after $2,800 the storm

Emergency Months after $500 Needs the storm increments

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CONTRACTOR REQUIREMENTS

In 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.

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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.

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).

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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)

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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.

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.

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.

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.

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UTILITY CHECK LIST Demolition ● 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.

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● 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.

LEGAL AGREEMENTS 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 Agreement 123 Homeowner/Contractor Agreement

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.

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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

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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.

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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.

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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.

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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

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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.

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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

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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

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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

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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 68

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]

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

OWNER «SIGNATURE_1» Witness: Name:

By; «SIGNATURE_2» By:___________________________

Witness: Name:

BOROUGH OF UNION BEACH

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

Witness: Name:

PRINCETON AREA COMMUNITY FOUNDATION

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

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Witness: _________________ Name:________________________

EXHIBIT A Construction Contract

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EXHIBIT B(1) Contribution Responsibility and Payment Schedule (Attach)

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EXHIBIT B(2) OWNER PROJECT ESCROW AGREEMENT

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EXHIBIT C Disclosure Schedule 2.4.2 Existing Mortgage (s)

3.1 Title / Existing Mortgage(s)

3.2 Credit and Financial Status

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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.

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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.

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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.

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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.

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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.

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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.

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

OWNER «SIGNATURE_1»

Witness: Name:

By: «SIGNATURE_2»

By:___________________________

Witness: Name:

BOROUGH OF UNION BEACH

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

Witness: Name:

PRINCETON AREA COMMUNITY FOUNDATION

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

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Witness: _________________ Name:________________________

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

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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

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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

84

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.

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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),

86

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

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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.

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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

89

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

90

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

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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

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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.

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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).

Registration Number of Builder is 045907.

The State of New Jersey Builder

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

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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

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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.

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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:

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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.

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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:_____________________

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EXHIBIT A LEGAL DESCRIPTION OF PREMISES

Block #

__

Lot #

__

100

EXHIBIT B PLANS AND SPECIFICATIONS

101

EXHIBIT C INSURANCE CERTIFICATES OF BUILDER & MANUFACTURER

102

EXHIBIT D SOURCES OF FUNDS IN THE PROJECT ESCROW ACCOUNT

103

EXHIBIT E HOMEBUYER WARRANTY

104

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, (hereinafter referred to as the “Owner”): 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”); 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 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”);

105

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

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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,

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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.

38.

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

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

108

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

109

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.

42.

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.

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.

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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

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.

45.

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

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exclusion of any of the other rights, and shall not limit or prejudice any other legal or equitable right which Builder may have.

46.

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 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.

47.

Intentionally Deleted.

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

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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.

49.

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 «Contract_Price_in_words» AND «CENTS»/100 ($«Contract_Price_XXXX») DOLLARS (the “Contract Price”) as follows:

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(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.

50.

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

interest in any Grant Funds obtained by the Owner.

51.

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

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insurance proceeds in excess of the Contract Price. In order to effectuate the intent of this 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. 53.

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; 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.

54.

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.

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55.

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.

56.

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.

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57.

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.

58.

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 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.

59.

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.

60.

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.

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61.

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.

62.

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.

63.

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

64.

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.

65.

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.

66.

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.

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67.

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.

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.

69.

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.

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IN WITNESS WHEREOF, Owner and Builder have executed this Agreement as of the date set forth above.

BUILDER: WIMBLEDON PROPERTIES, LLC

By:___________________________ Michael Rutherford

OWNER:

_____________________________ Name:

______________________________ Name:

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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.

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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: Wimbledon Properties, LLC 5000 Clayton Rd Maryville, Tennessee 37804 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:_____________________

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EXHIBIT A LEGAL DESCRIPTION OF PREMISES

Block #

«Block»

Lot #

«Lot»

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EXHIBIT B PLANS AND SPECIFICATIONS

124

EXHIBIT C INSURANCE CERTIFICATE OF WIMBLEDON PROPERTIES LLC

125

EXHIBIT D SOURCES OF FUNDS IN THE PROJECT ESCROW ACCOUNT

126

EXHIBIT E HOMEBUYER WARRANTY [see attached]

127

EXHIBIT F BINDING DISPUTE RESOLUTION AGREEMENT [see attached]

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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

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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

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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.

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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

132

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

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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, (hereinafter referred to as the “Owner”): 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”); 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 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”); 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 Agency and (ii) any hazard and flood insurance payments paid to Owner (collectively, the “Owner’s Funds”);

134

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

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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.

73.

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

amount of $(Homeowner_Resources_XXXX).

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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.

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,

137

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.

77.

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.

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.

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79.

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 construction of the Home, nor have 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.

80.

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.

81.

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

139

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 (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

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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

141

completed or corrected prior to final payment (the “Punch List Items”). Builder agrees to complete any Punch List Items promptly.

84.

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 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

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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 goodfaith being disputed by the Owner.

85.

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

interest in any Grant Funds obtained by the Owner.

86.

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 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. 88.

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; 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

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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.

89.

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.

90.

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.

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91.

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.

92.

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.

93.

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).

Registration Number of Builder is #045907.

The State of New Jersey Builder

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

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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.

94.

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.

95.

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.

96.

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.

97.

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

146

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

98.

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.

99.

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.

100.

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.

101.

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.

102.

Intentionally Deleted.

103.

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.

147

IN WITNESS WHEREOF, Owner and Builder have executed this Agreement as of the date set forth above.

BUILDER: DSW HOMES, LLC By:___________________________ Name:

OWNER: _____________________________ Name: ______________________________ Name:

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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 SHALL BE LIABLE FOR THE COSTS OF THE GOODS.

149

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:_____________________

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EXHIBIT A LEGAL DESCRIPTION OF PREMISES

Block #

198

Lot #

6

151

EXHIBIT B PLANS AND SPECIFICATIONS

152

EXHIBIT C INSURANCE CERTIFICATES OF BUILDER

153

EXHIBIT D SOURCES OF FUNDS IN THE PROJECT ESCROW ACCOUNT

154

EXHIBIT E HOMEBUYER WARRANTY

155