HomeMy WebLinkAbout7860RESOLUTION NO. __
A RESOLUTION APPROVING RICHMOND SENIOR
HOUSING, INC., AS A COMMUNITY HOUSING
DEVELOPMENT ORGANIZATION UNDER THE CITY OF
PUEBLO'S 1996 HOME INVESTMENT PARTNERSHIP
PROGRAM ADMINISTERED THROUGH HUD, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN
AGREEMENT FOR COMMUNITY DEVELOPMENT SERVICES
WITH SUCH AGENCY
WHEREAS, the City of Pueblo, pursuant to the HOME Investment Partnership Act, the
Craston- Gonzales National Affordable Housing Act and implementing regulations under 24 CFR
92, has been a recipient of HOME federal funds under the program since 1992; and
WHEREAS, in accordance with the provisions of the Act and 24 CFR 92 92:200, a
portion of such financial assistance, subject to appropriation by the City Council, may be made
available to non - profit organizations for the purpose of carrying out specific elements of the City
of Pueblo housing strategy including the expansion of the availability of affordable housing for
low and moderate income Pueblo residents;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PUEBLO, COLORADO, that:
SECTION I.
The City Council of the City of Pueblo approves Richmond Senior Housing, Inc., a
Colorado non - profit corporation as an Community Housing Development Organization and the
City Manager of the City of Pueblo is authorized and directed to execute an agreement with the
agency for HOME 1996 funding in the amount of $150,000 for the development of a 51 -unit
apartment complex for the elderly.
INTRODUCED: May 13 , 1996
ATTEST:
City Clerk
By Charles ,Tones
Councilperson
APPROVED:
President of the City Council
AGREEMENT FOR COMMUNITY HOUSING DEVELOPMENT SERVICES
(CHDO SET ASIDE)
This Agreement is made and entered into this 20th day of May 1996 by and
between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and
Richmond Senior Housing, Inc. (hereinafter referred to as "CHDO ").
WITNESSETH, that:
WHEREAS, the City has, under date of March 12, 1996, entered into an agreement with
the U.S. Department of Housing and Urban Development ( "HUD ") whereby federal financial
assistance may be made available to City as a participating jurisdiction for the purpose of
expanding the availability of affordable housing pursuant to the Home Investment Partnerships
Act ( "the Act ") (42 U.S.C. 12701 et. seq.), the Cranston - Gonzales National Affordable Housing
Act and implementing regulations, including but not limited to those at 24 CFR Part 92; and
WHEREAS, in accordance with the provisions of Section 231 of the Act and 24 CFR
Section 92.300, a portion of such financial assistance, subject to deobligation, should be made
available to community housing development organizations for the purpose of carrying out
specific elements of the participating jurisdiction's housing strategy; and
WHEREAS, CHDO has represented to City that it is a duly qualified community housing
development organization which is eligible and willing to undertake certain approved elements
of City's housing strategy identified herein and in the Scope of Services attached hereto; and
WHEREAS, based upon CHDO's representations, the City believes CHDO is capable or
can reasonably be expected to become capable of carrying out said approved elements of City's
housing strategy, and City is willing to allocate federal funds to CHDO for investment in housing
to be developed, sponsored or owned by CHDO which will comply with and fulfill said approved
elements of City's housing strategy;
NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, terms
and conditions set forth herein, the parties agree as follows:
1. CHDO SERVICES
(a) CHDO shall undertake, in accordance with all applicable federal, state and local
laws and regulations, control and development of a project or projects in furtherance of City's
housing strategy and approved by the City and perform and complete all services and items of
work, and furnish all labor and materials encompassed within or reasonably necessary to
accomplish the tasks and functions described in the Scope of Services attached hereto as Exhibit
"A ". Before proceeding with each discrete project, CHDO shall furnish City with all reasonable
information which City may request concerning such project, demonstrate eligibility of such
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project for assistance under this Agreement, and obtain the written approval of City's authorized
representative as to such project.
(b) CHDO warrants and represents that (i) it has the requisite authority and capacity
to perform all terms and conditions to be performed by CHDO hereunder; (ii) that it is duly
organized as a non - profit organization under state law and is in good standing; (iii) that it meets,
or before accepting any payment hereunder will meet, the organizational, membership and
accountability requirements of community housing development organizations as that term is
defined and limited in 24 CFR Section 92.2 [56 Fed. Reg. 65340]; (iv) that it is aware of and
understands its duty to perform all functions and services in accordance with the regulatory
requirements identified in Exhibit "C" hereto; and (v) that it is accepting federal financial
assistance hereunder subject to certain mandatory repayment provisions.
(c) Time is of the essence hereof. CHDO agrees that it shall commit and invest all
funds made available hereunder for reimbursement by July 20, 1996.
2. RESPONSIBILITIES OF THE CITY
The City shall designate a representative of the City who will be authorized to make all
necessary decisions required of the City on behalf of the City in connection with this Agreement,
approval of projects undertaken by CHDO hereunder and disbursing of funds in connection with
the program. In the absence of such a designation, the City Manager shall be deemed as City's
authorized representative.
3. PAYMENT TO CHDO
(a) All reimbursement to CHDO is subject to all of the following requirements, which
shall be conditions precedent to payment: (i) that CHDO has committed funds to one or more
eligible approved projects prior to July 20, 1996, (ii) that CHDO is not in default of any material
provision of this Agreement nor applicable law or regulation, (iii) that CHDO has timely
submitted requests for reimbursement detailing the eligible reimbursement items in a format
approved by City, (iv) that CHDO has certified with each reimbursement request compliance with
the requirements identified in Exhibit "C" and that all expenditures for which reimbursement is
sought were made for and in furtherance of an approved project and are an eligible use of federal
assistance under the Act, and (v) that City has timely received from HUD sufficient federal
assistance under the Act to pay the reimbursement hereunder.
(b) Payment hereunder is also subject to and may only be disbursed in accordance with
HUD regulations including but not limited to those at 24 CFR Part 92, as presently promulgated
and as same may be revised from time to time in the future. All payments received by CHDO
hereunder are subject to repayment by CHDO as provided in 24 CFR Part 92.
(c) The aggregate of all payments made hereunder shall not exceed One Hundred Fifty
Thousand Dollars (U.S. $150,000).
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(d) Upon expiration of the term of this agreement or upon any prior termination,
CHDO shall transfer to the City, any funds provided hereunder which are in hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder.
4. TERM OF AGREEMENT
Unless sooner terminated, the term of this Agreement shall be from the date of execution
hereof until July 20, 1996; provided, however, that with the respect to all projects receiving
financial assistance paid to CHDO during the term of this Agreement, CHDO shall have
continuing responsibility to comply with the performance, certifications, repayment, affirmative
marketing, housing affordability compliance and recordkeeping requirements of this Agreement,
and 24 CFR Part 92 (including, without limitation 24 CFR Sections 92.252, 92.254, 92.301,
92.351 and 92.508) which shall survive expiration or termination and remain in effect throughout
the required full period of affordability, notwithstanding termination or expiration of this
Agreement. As used herein, "period of affordability" shall mean 15 years except that if the
assistance provided hereunder is used in connection with a project financed by a mortgage insured
by HUD under Chapter II of Title 24, Code of Federal Regulations, the period of affordability
shall be the full original term of said mortgage or 15 years, whichever is longer.
5. TERMINATION OF AGREEMENT
a. For Cause This Agreement may be terminated by City for cause, including
nonperformance by CHDO, upon ten (10) days written notice to CHDO including a statement of
the reasons therefor, and after an opportunity for a hearing has been afforded. If a hearing is
requested, it shall be held before the City's Director of Housing and Community Development
whose decision as to the grounds for termination and the appropriateness thereof shall be final
and binding upon both City and CHDO. In accordance with 24 CFR 85.43, cause for termination
shall include any material failure by CHDO to comply with any term of this Agreement.
b. For Convenience This Agreement may be terminated for convenience in
accordance with the provisions of 24 CFR 85.44. This Agreement shall terminate immediately
upon any suspension or non - receipt of federal assistance provided to City under the Act.
C. Post Termination Procedures In the event of termination, CHDO shall continue
to be responsible for those matters which survive termination identified in paragraph 4 above,
unless City takes over the project or projects and, in connection therewith, prospectively releases
CHDO from one or more specific responsibilities in writing. Additionally, at City's sole option,
all property acquired by CHDO with grant funds, all grant funds, program income, and loans
originated with grant funds or by payments therefrom and payments received under such
mortgage loans, held, owned or retained by CHDO shall immediately become the sole and
separate property of the City and CHDO shall perform all acts and execute all instruments
necessary to transfer and assign such property, funds, income, and mortgage loans to City. All
finished or unfinished documents, data, studies reports and work product prepared by CHDO
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under this Agreement or with grant funds shall, at the option of the City, become its property and
CHDO shall be entitled to received just and equitable compensation only for satisfactory work
completed and CHDO eligible costs for which compensation has not previously been paid nor
reimbursement made.
6. ASSIGNABILITY
This Agreement shall not be assigned or transferred by CHDO without the prior written
consent of the City. Any assignment or attempted assignment made in violation of this provision
shall be void and of no effect.
7. CONFLICT OF INTEREST
CHDO certifies and warrants that neither it nor any member of its Board of Directors,
Officers or employees has or will derive any personal or financial interest or benefit from the
activities assisted pursuant to this Agreement nor has an interest in any contract, subcontract or
agreement with respect thereto, nor the proceeds thereunder, either for themselves or for those
with whom they have family or business ties, during their tenure and for one year thereafter.
CHDO shall avoid all conflicts prohibited by applicable regulations, including but not limited to
those set forth in 24 CFR 92 as presently promulgated and as same may be amended from time
to time in the future.
8. CHDO RECORDKEEPING
CHDO shall maintain records as to all projects undertaken with assistance hereunder,
services provided, reimbursable expenses pertaining to Scope of Services and complete accounting
records which shall be kept on a generally recognized accounting basis and as requested by the
City's auditor. CHDO agrees to comply with all applicable uniform administrative requirements
described or referenced in 24 CFR Part 92. The compliance provisions attached as Exhibit "B"
hereto are made a part of this Contract, and CHDO agrees to perform and comply with same.
The City, HUD, the Comptroller General of the United States, the Inspector General of HUD,
or any of their duly authorized representatives, shall have the right to inspect and copy, during
reasonable business hours, all books, documents, papers and records of CHDO which relate to
this Agreement for the purpose of making an audit or examination. Upon completion of the work
and end of the term of this Agreement, the City may, at any time during the period of
affordability or within 5 years thereafter, require all of CHDO financial records relating to this
Agreement to be turned over to the City.
9. MONITORING AND EVALUATION
The City reserves the right to monitor and evaluate the progress and performance of
CHDO to assure that the terms of this Agreement are being satisfactorily fulfilled in accordance
with HUD's, City's and other applicable monitoring and evaluating criteria standards. The City
shall at least quarterly review CHDO performance using on -site visits, progress reports required
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to be submitted by CHDO, audit findings, disbursement transactions and contact with CHDO as
necessary. CHDO shall furnish to the City monthly or quarterly program and financial reports
of its activities in such form and manner as may be requested by the City. CHDO shall fully
cooperate with City relating to such monitoring and evaluation.
10. CHDO FILES AND INFORMATION REPORTS
CHDO shall maintain files containing information which shall clearly document all
activities performed in conjunction with this Agreement, including, but not limited to, financial
transaction, conformance with assurances, activity reports, and program income. These records
shall be retained by CHDO for a period of five years, except that with respect to the project
undertaken with assistance provided hereunder, such records shall be maintained for the full
required period of affordability. Activity reports shall be submitted monthly or quarterly no later
than the ninth day of the month following the end of month or quarter for which the report is
submitted.
11. INDEPENDENCE OF CHDO
Nothing herein contained nor the relationship of CHDO to the City, which relationship
is expressly declared to be that of an independent contractor, shall make or be construed to make
CHDO or any of CHDO's agents or employees the agents or employees of the City. CHDO shall
be solely and entirely responsible for its acts and the acts of its agents, employees and
subcontractors.
12. LIABILITY
As to the City, CHDO agrees to assume the risk of all personal injuries, including death
and bodily injury, and damage to and destruction of property, including loss of use therefrom,
caused by or sustained, in whole or in part, in connection with or arising out of the performance
or nonperformance of this Agreement by CHDO or by the conditions created thereby. CHDO
further agrees to indemnify and save harmless the City, its officers, agents and employees, from
and against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising from
such injuries to persons or damages to property or based upon or arising out of the performance
or nonperformance of this Agreement by CHDO or out of any violation by CHDO of any statute,
ordinance, rule or regulation.
13. CERTIFICATIONS
CHDO agrees to make and comply with the certifications (attached as Exhibits "C" and
"D ") hereto which are hereby expressly made a part of this Contract.
14. PROGRAM INCOME
Unless otherwise authorized by City in writing, all program income shall be returned to
City within 30 days of receipt by CHDO. In the event City authorizes CHDO to retain any
portion of program income it shall be used to accomplish the work set forth in the Scope of
Services, and the amount of grant funds payable by City to CHDO shall be adjusted as provided
by 24 CFR 92.503 and all standards specified in 24 CFR 85.
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15. ENTIRE AGREEMENT; AMENDMENTS
The provisions set forth in this Agreement and the Agreement dated February 27, 1996
by and between the City of Pueblo and Richmond Senior Housing, Inc., and all Exhibits and
attachments to both Agreements, constitute the entire and complete agreement of the parties
hereto and supersede all prior written and oral agreements, understandings or representations
related thereto. No amendments or modification of this Agreement and no waiver of any
provision of this Agreement shall be binding unless made in writing and executed by the duly
authorized offices of both the CHDO and the City.
16. RECOGNITION OF HUD, CITY
In all printed materials, project descriptions and other activities undertaken with funds
provided under this Agreement, CHDO shall provide recognition that funds have been provided
by the U.S. Department of Housing and Urban Development and the City of Pueblo. Recognition
shall be accomplished by prominent disclosure of the role of HUD and the City in all such
printed materials and project signage.
IN WITNESS WHEREOF, CHDO and the City have executed this Agreement as of the
date first above written and under the laws of the State of Colorado.
ATTEST:
"_0' -(�� , '-"" �"
City Cler
[SEAL]
ATTEST:
Name_
Title:
City of Pueblo,
A Municrl Corporation
BY:'a
City Manager
Community Housing Development Organization:
Richmond Senior Housing, Inc.
BY:
Name: Gus Sandstrom
Title: B oard Chairperson
Revised May, 1995 6
EXHIBIT B
COMPLIANCE PROVISIONS INCORPORATED
IN A CONTRACT FOR SERVICES
1. An accounting system using the accrual basis of generally accepted accounting principles
which accurately reflects all costs chargeable (paid and unpaid) to the project should the
project terminate the next day is mandatory. A receipts and disbursements ledger must
be maintained. A general ledger with an income and expense account for each budgeted
line item is necessary. Paid invoices revealing check number, date paid and item is
necessary. Paid invoices revealing check number, date paid and evidence of goods or
services received are to be filed according to the expense account they were charged. The
City must review and approve your account system and internal controls prior to the
release of funds.
2. There is no flexibility on budgets. Line items may be changed only by the City's written
concurrence of a budget amendment.
3. A log listing all long distance telephone calls must be maintained (showing date, city and
agency called, person making call and person called).
4. Eligible expenses are those considered reasonable and necessary costs for the efficient
operation of the program as determined by the City. All costs must be budgeted items.
Requests for advance or reimbursements of expenses must be accompanied by:
1. Original Invoice marked with funding source
2. Detailed listing of each expense showing:
a) recipient
b) brief description of purchase
C) amount with method of computation detailed
Cost Summary must be submitted on a monthly basis to reflect entries through the closing
date for the books (indicate Closing Date on Cost Summary).
5. All employees handling funds are required to be insured by a fidelity bond.
6. The City shall not be obligated to any third parties of the contractor. Each contractor is
further cautioned against obligating funds beyond the contract date of the agreement
between the City and the contractor. (Example: rent or lease agreements, service
contracts, insurance, etc.).
7. The contractor will furnish the City such statements, records, data and information, and
permit such interviews with personnel as the City may request in order to effectively
monitor and evaluate the project.
8. City auditors will periodically make interim audits and may upon completion of the
project, make a final audit.
9. All records must be retained by the agency for a period of three years following the last
day of each contract. (Cost summary reports must reflect actual general ledger balances.)
EXHIBIT C
CERTIFICATIONS
Subrecipient hereby certifies that the grant will be conducted and administered in
compliance with:
(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88 -352; 42 U.S.C. 2000d, et
sue.) and implementing regulations issued at 24 CFR Part 1;
(2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90 -284; 42 U,S.C. 3601, et
SeMC .), as amended; and that the grantee will administer all programs and activities related to
housing and community development in a manner to affirmatively further fair housing;
(3) Section 109 of the Housing and Community Development Act of 1974, as
amended; and the regulations issued pursuant thereto;
(4) Section 3 of the Housing and Urban Development Act of 1968, as amended;
(5) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and
implementing regulations issued at 41 CFR Chapter 60;
(6) Executive Order 11063, as amended by Executive Orders 12259, and implementing
regulations at 24 CFR Part 107;
(7) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93 -112), as amended, and
implementing regulations when published for effect;
(8) The Age Discrimination Act of 1975 (Pub. L. 94 -135), as amended, and
implementing regulations when published for effect;
(9) The relocation requirements of Title II and the acquisition requirements of Title
III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and
the HUD implementing regulations set forth in 24 CFR Part 42;
(10) Executive Order 11988 relating to the evaluation of flood hazards and Executive
Order 11288 relating to the prevention, control and abatement of water pollution;
(11) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster
Protection Act of 1973 (Pub. L. 93 -234);
(12) The applicable regulations, policies, guidelines and requirements of OMB Circular
Nos. A -102, Revised, 24 CFR 85 and Subpart J of 24 CFR 570, A -87, A -110, A -122, A -128 and
A -133 as they relate to the acceptance and use of federal funds under this federally- assisted
program;
(13) The Clean Air Act (42 U.S.C. 7401 et. seq.) as amended; particularly section 176
(c) and (d) [42 U.S.C. 7506 (c) and (d)];
(14) HUD environmental criteria and standards [24 CFR Part 51, Environmental Criteria
and Standards];
(15) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 (f) et. seq., and 21
U.S.C. 349) as amended; particularly section 1424 (e) (42 U.S.C. 300 (h)- 303(e));
(16) The Endangered Species Act of 1973 (16 U.S.C. 1531 et. seq.) as amended;
including but not limited to section 7 (16 U.S.C. 1536) thereof,
(17) The Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1272 et. seq.) as amended;
particularly section 7 (b) and (c) [16 U.S.C. 1278 (b) and (c)];
(18) The Reservoir Salvage Act of 1960 916 U.S.C. 469 et. seq.); particularly section
3 (16 U.S.C. 469a -1); as amended by the Archeological and Historical Preservation Act of 1974;
(19) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et. seq.) as amended;
particularly sections 102(a) and 202(a) [42 U.S.C. 4012a(a) and 4106(a)];
(20) Executive order 11990, Protection of Wetlands, May 24, 1977 (42 FR 26961 et.
seq.); particularly sections 2 and 5;
(21) It will comply with the Lead -Based Paint Poisoning Prevention requirements of
25 CFR Part 35 issued pursuant to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C.
4821 et. seq.);
(22) The National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) as
amended; particularly section 106 (16 U.S.C. 470f); and
(23) Executive Order 11593, Protection and Enhancement of the Cultural Environment,
May 13, 1971 (36 FR 8921 et. seq.); particularly section 2(c).
(24) Construction work financed in whole or in part with federal funds is subject to the
prevailing wage requirements of the Davis Bacon Act (29 CFR, Parts 3 and 5), the Copeland Act
(29 CFR Part 3), and the Contract Work Hours and Safety Standards Act (Public Law 91 -54, 83
Stat. 96). When a project meets this applicability requirement, the labor standards provisions of
the HUD 4010 and the Davis Bacon Wage Decision issued for the project will be incorporated
into this contract document and shall be incorporated into all construction contracts and
subcontracts of any tier thereunder.
(25) No CDBG funds may be expended for lobbying purposes and payments from other
sources for lobbying must be disclosed 24 CFR Part 87.
(26) Where asbestos is present in property undergoing rehabilitation, Federal
requirements apply regarding worker exposure, abatement procedures and disposal. CPD -90 -44
EPA /OSHA.
(27) When HOME Investment Partnership Act funds are used, the Subrecipient will
comply with implementing regulations and requirements under 24 CFR 92.
MA
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Sig at
Revised 3113196
Attachment to:
AGREEMENT FOR
COMMUNITY HOUSING DEVELOPMENT SERVICES
(CHDO SET ASIDE)
Citing source and basis of response and explaining
applicability of questions to Richmond Senior Housing,
Inc.
I. LEGAL STATUS
A. The non - profit corporation is organized under the laws
of the State of Colorado pursuant to Articles of
Incorporation.
B. The Articles of Incorporation state that no part of the
net earnings of the corporation inure to the benefit of
its members, trustees, officers, or other private
persons.
C. On April 25, 1996, the corporation received its
501(c)(3) status letter from the Internal Revenue
Service stating that the corporation would be treated
as a publicly supported organization described in
Section 509 (a) (2) of the Internal Revenue Code until
December 31, 2000, when its status will be reviewed for
permanency.
D. The Articles of Incorporation state that one of the
purposes of the corporation is to provide elderly
persons and handicapped persons with housing.
II. CAPACITY
A. See attachment 1, HUD approved audit summary of the
Housing Authority of the City of Pueblo (hereinafter
called "HAP ").
B. See attachment 2, the CHDO contract with HAP for the
management of the housing facility.
C. See attachment 3, statement of involvement of the
sponsoring entity, S.R.D.A., regarding its involvement
with Union Plaza Senior Housing, Inc., a similar
housing facility which has previously received HOME
funds.
III. ORGANIZATIONAL STRUCTURE
A. The Board of Directors of the CHDO consists of
Directors who are either (1) members of the Board of
Directors of S.R.D.A., the sponsoring agency, or (2)
approved by the Board of Directors of S.R.D.A., the
sponsoring agency.
B. See attachment 4, statement regarding operating
procedures approved by the governing body.
C. Neither the Articles of Incorporation nor the bylaws of
the CHDO allow appointment of any portion of the Board
of Directors by the State or local government.
D. The CHDO is neither sponsored nor created by a for -
profit agency.
IV. RELATIONSHIP WITH FOR - PROFIT ENTITIES
A. The CHDO is organized as a nonprofit corporation and
does not receive any directions from individuals or
entities seeking profit from the CHDO.
B. 1. The CHDO is neither sponsored nor created by a
for - profit agency.
2. The facility owned by the CHDO is managed by HAP,
which is given the authority to contract for
services and supplies with any vendor, but is
required to secure such services and materials at
the lowest possible cost; in the event that
services and materials are purchased from
individuals or companies having an identity of
interest with the CHDO or HAP, the management
contract between the CHDO and HAP requires such
services and materials to be purchased at a cost
not to exceed that which would be incurred in
making arms - length purchases in the open market.
Attachment 1 -- HUD approved audit summary of the Housing
Authority of the City of Pueblo. Can we get
this from Housing Authority or does Evie have
one ? ? ? ??
Attachment 2 -- Contract with HAP for the management of the
housing facility. Copy attached.
Attachment 3 -- Statement of involvement of S.R.D.A.,
regarding its involvement with Union Plaza
Senior Housing, Inc. Draft attached.
Attachment 4 -- Statement regarding operating procedures
approved by the governing body. Draft
attached.
Attachment 3 -- Statement of involvement of S.R.D.A., regarding
its involvement with Union Plaza Senior
Housing, Inc.
Richmond Senior Housing, Inc., (RSH) was incorporated as a non-
profit Colorado corporation on January 12, 1996. RSH is a single
purpose corporation with only one purpose: to own and manage,
pursuant to Section 202 of the Housing Act of 1959, a housing
complex for senior citizens, Richmond Senior Apartments
(Apartments). Under Section 202, a single purpose non - profit
corporation, sponsored by another accredited non - profit corporation
may apply to the Department of Housing and Urban Development (HUD)
to receive funds to provide for the construction of a Section 202
building complex. RSH is in the process of making such an
application.
If RSH is successful in its application to HUD for the section 202
Capital Advance, the grant does not have to be paid back to HUD if
RSH continues to operate the Apartments as housing for seniors for
a period of 40 years. If RSH fails to operate the Apartments in
compliance with this requirement, or is RSH sells the Apartments to
another entity not qualified for the Section 202 program, RSH will
be required to repay the grant.
Pursuant to its Articles of Incorporation, the RSH Board is
required to have at least seven and not less than 15 Directors.
The term of membership on the RSH Board is staggered so that
approximately one -third of the Board is elected each year. Also
pursuant to its Articles of Incorporation, the RSH Board meets not
less than once every three months. Currently, these Board meetings
are scheduled to occur at 11:00 a.m. on the third Mondays of
January, April, July and October.
RSH has the responsibility for the operations of the Apartments,
and RSH Directors take an active role in all Board meetings. RSH
maintains errors and omissions insurance coverage for members of
its Board. However, this coverage does not protect Board members
against liability of every kind; intentional misconduct,
malfeasance, and self - serving are examples of areas not covered by
this insurance.
RSH has engaged the Housing Authority of Pueblo (HAP) to manage the
day -to -day operations of the Apartments. The HAP will provide a
resident manager for the Apartments. The resident manager will be
a senior citizen tenant of the apartments. HAP will collect rent,
provide HAP employees for routine maintenance of the building,
generate a budget and provide other services pursuant to the HUD -
approved Management Agreement with RSH. As part of the Management
Agreement between RSH and HAP, it will be the responsibility of HAP
to maintain both building and liability insurance on the
apartments, paid for by collected rents. The operation of the RSH
Apartments is designed to be self - supporting, paying its own way by
the collection of rents from residents and rent subsidies from HUD.
At regular intervals, HAP will provide reports and budgets to the
Board of RSH. RSH Board members will review the reports from HAP
on a regular basis. If the RSH Board has any questions, HAP is
required to respond promptly to such questions.
RSH is sponsored by the Senior Resource Development Agency, Inc.,
(SRDA), a Colorado Nonprofit corporation. SRDA is an umbrella
agency, encompassing a myriad of services to the elderly of Pueblo.
SRDA has also previously sponsored Union Plaza Senior Housing, Inc.
(UPS), which owns and operates a 45 unit low - income elderly housing
facility, also a Section 202 Capital Advance project property. UPS
has been in operation since the fall of 1993. SRDA provided the
initial funds for the incorporation of RSH and is sponsoring RSH in
its application for the Section 202 grant. HUD requires that the
sponsoring agency maintain close contact and oversight in the
operation of the RSH operations. Therefore, HUD requires that the
Board of Directors of RSH be composed of individuals who are either
(a) members of the SRDA Board of Directors or (b) are approved by
the SRDA Board of Directors.
The Richmond Senior Apartments will be located at 230 Central Main,
Pueblo, Colorado, adjacent to the Joseph Edwards Senior Center and
will consist of 51 individual living units. The entire building is
wheelchair accessible and several units are specially adapted for
use by individuals confined to wheelchairs. The building has two
elevators and is heated and air - conditioned by a two pipe system of
hot and chilled water.
Attachment 4 -- Statement regarding operating procedures
approved by the governing body.
Richmond Senior Housing, Inc., is governed by a Board of Directors,
numbering not less that seven nor more than 15 Directors.
Membership of the Board is by one of two methods: (a) concurrent
membership on the Board of S.R.D.A., or (b) approval by the Board
of S.R.D.A. This membership /approval relationship is part of an
oversight relationship required by H.U.D. Pursuant to the Bylaws
of S.R.D.A., at least 53% of the membership of the S.R.D.A. Board
shall be sixty (60) years of age or older,and all members shall be
residents of Pueblo County, Colorado.
Richmond Senior Housing, Inc.,believes that due to the
membership /approval relationship with S.R.D.A. and the membership
requirements for Directors of S.R.D.A., there is adequate
representation on the Board of Richmond Senior Housing by low -
income, program beneficiaries regarding the design, siting,
development and management of the CHDO.