Loading...
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 1 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). 2 (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 3 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 rd 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. 5 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 .--� 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.