Loading...
HomeMy WebLinkAbout7894RESOLUTION NO. 7894 A RESOLUTION APPROVING AN APPLICATION FOR HOME NEW CONSTRUCTION FUNDS FOR R. MUNOZ & ASSOCIATES, INC. FOR CONSTRUCTION OF A 108 UNIT APARTMENT COMPLEX IN FURTHERANCE OF THE CITY "S HOUSING STRATEGY AND AUTHORIZING THE PRESIDENT OF COUNCIL TO EXECUTE A CONTRACT FOR HOME FUNDS UNDER THE HOME INVESTMENT PARTNERSHIP ACT WHEREAS, R. Munoz and Associates, Inc. has submitted an application for $300,000 in HOME federal funds received by the City of Pueblo under the HOME Investment Partnership Act for the construction of a 108 unit apartment complex and; WHEREAS, the City of Pueblo is sensitive to the housing needs and the financial assistance needed for private development to create affordable housing for Pueblo's low and moderate income families; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO COLORADO, that: SECTION 1. The application for HOME funds is hereby approved and the Department of Housing and Community Services is authorized to administer the disbursement of HOME funds under the application and agreement to be prepared by the City Attorney. A review of the application conforms to the eligibility requirements under of Title II of the Cranston - Gonzales National Affordable Housing Act and implementing regulations at 24 CFR Part 92. The HOME funding of $300,000 is subject to appropriations therefore by the federal government under the HOME Investment Partnerships Act, the Cranston - Gonzales National Affordable Housing Act and implementing regulations. INTRODUCED: June 10 , 1996 ATTEST: City Cler By Samuel Corsentino Councilperson APPROVED: Pres' ent of the City Council APPLICATION FOR HOME HOUSING LOAN /GRANT'AS'SISTANCE 1993 -1995 (All Applications Subject to Funds Available) Date Received Project # AMOUNT OF FINANCING REQUESTED'_' APPLICATION INFORMATION Applicant (Name and Address) R. Munoz & Associates, Inc. 12155 East Amherst Circle Aurora, Colorado 80014 Project Manager To be determined. Phone No. Federal ID No. Contractor to do Work To be determined. Address City License # Designated Contact Person for Application Raymond Munoz Title President Phone No. 303 329 -5381 Fax No. (303) 331 -0824 Address 12155 East Amherst Circle, Aurora, Co. 80014 Project Address West of Jerrt Murphy Road & Calhoun Road TYPE OF ORGANIZATION TYPE OF PROJECT Municipality /County /Consortia Rental /Group Home Nonprofit (501(c)) Homeownership CHDO (Community Housing Development Organization Rental Assistance (Attach Proforma) Public Housing Authority X Other (Specify) Mixed -use, X Private Owner /Investor multifamily apartment project. CHECKLIST FOR APPLICANT, I received HOME Rental Rehab Guidelines X Proforma is attached X Source of Funding is attached X I Detailed project cost summary attached I V. ESTIMA DEVELOPMENT COSTS Itemized Costs Actual Costs LAND AND BUILDINGS Land' 175,000 Existing Structures 2. SUBTOTAL Demolition Accessory Structures F l. SUBTOTAL 175 , 000 = site WORK On Work 180,000 Off Site Work 5,000 2. SUBTOTAL 185,000 REHABILITATION AND NEW CONSTRUCTION New Structures Design Rehabilitation Architect, Accessory Structures Supervision General Requirements Attorney, 152,075 Contractor Overhead Consultant / 90,830 Contractor E7i0K* Profit 190,664 Construction Other Contingency 152,075 Other 4. SUBTOTAL (Specify) 177,000 3. SUBTOTAL 3,988,996 *If land is currently owned, include current market value �F Itemized Costs I Actual Costs PROFESSIONAL FEES Architect, Design 4 000 Architect, Supervision 105,000 Attorney, Real Estate 5 , 000 Consultant / Agent E7i0K* Surveyor 4,700 Other (Specify) 103 , 873 4. SUBTOTAL T 174,700 CONSTRUCTION INTERIM COSTS Hazard & Liability Insurance 4 000 Payment Bond Performance Bond :30,000 Credit Report Construction Interest 264 Origination Points 103 , 873 Discount Points Credit Enhancement 19,000 Inspection Fees 9 Title and Recording 5,000 Legal Fees 2,500 Taxes 2,000 Other (Specify) 5. SUBTOTAL 440,134 V ( Itemized Costs j Actual Costs PERMANENT FINANCING Bond Organization Premium 95,000 Credit Bridge Re ort Loan Fee Xlnmfr Negative 1,600 R 46,875 Origination 79,000 Fees 55,000 Credit 8. SUBTOTAL Enhancement Fee Title and 3,500 Recording 4 793 Legal 4,000 Fees Prepaid 25,000 MIP 19,000 Other 6. SUBTOTAL 220,668 SOFT COSTS Feasibility SYNDICATION Stud Organization Market Costs Stud Bridge Environmental Loan Fee Study 1,600 Tax Credit Opinion Fees 79,000 Compliance (Specify) Fees 8. SUBTOTAL XQ=31AURUX rvm Appraisal 3,500 Cost Certification 4,000 Other (Specify) Contingency 25,000 7. SUBTOTAL 113,100 0 PROJECT ; =0O vARIS "''COIMIi atgA Asti [ "I PR r�F CalYll4tERCiA1; Kw ment Costs (cont) ( Itemized Casts j Actual Costs j SYNDICATION COSTS Organization Developer Costs 10 Bridge Developer Loan Fee Profit Tax Other Opinion 5,000 Other 9. SUBTOTAL (Specify) 5,000 8. SUBTOTAL 20,000 DEVELOPER FEES Developer Rent -Up Fe 406,851 Developer Operating Overhead Re serves Developer Replacement Profit Re serves Other Esc (Specify) Other 9. SUBTOTAL 406,851 PROJECT RESERVES Rent -Up Reserves 175,000 Operating Re serves Replacement Re serves Esc Other (Specify) 10. SUBTOTAL 175,000 TOTAL RESIDENTIAL COST TOTAL 5,899,449 7 VIII. PROJECT INCOME AND OPERATING EXPENSES (CONT) Project Income Information (coat) Miscellaneous Annual Income Related to Residential Use (specify; e.g. laundry, parking, etc.) Example: 25 units *5$ /month laundry*12 mos $ 1,500 108 x $10 /mo. x 12 mo $ 12,960 TOTAL MISCELLANEOUS INCOME TOTAL ANNUAL POTENTIAL GROSS INCOME FROM ALL RESIDENTIAL SOURCES Commercial Income (if applicable) Square Footage X rate = income Square Footage X rate = income Square Footage X rate = income TOTAL ANNUAL POTENTIAL GROSS COMMERCIAL INCOME TOTAL POTENTIAL PROJECT INCOME FROM ALL SOURCES B. Monthly Utility Allowance by Type and Unit Size E7 Paid by H Paid by Tenant Owner Gas X Electricity X Water Sewer Utility Allowance by bedroom size 0 BDRM $ N/A 1 BDRM $ 45 Source of Utility Allowances (Check One) Public Housing Authority X Utility Company Other (Specify) X X $ 12,960 $ 627,540 $ N/A ., c i. n r n n 2 BDRM $ 55 4 BDRM $ — N/ A 3 BDRM $ 63 11 VIII PROJECT INCOME AND OPERATING EXPENSES A. Project Income Information For a low or moderate income unit, the combination of tenant paid monthly rent and utilities or utility allowance may not exceed the maximum allowable rents under federal statute (generally 30% of adjusted household income). Low and Moderate Income Units A B C D E* F ** G H ` Unit Mix (# of Bdrmsibth ) # of Units Average S . Ft Monthly Rent Utility Allowance Monthly Housing Cost +E Monthly Income *D) Affordable co _% of Med.Inc. 1Bd /lBa 1 3 560 295 45 140 885 507 2Bd /lBa 5 798 353 55 408 1,765 50% Bd Ba 2 1,183 408 63 471 816 50% 1Bd 1Ba 10 1 560 341 45 186 �-4in 6n7 2Bd /1Ba 25 798 427 55 482 10,675 60% 3Bd 1 Ba 4 1,183 516 63 579 2,064 60% TOTAL 1 49 Market Rate Units TOTAL MONTHLY POTENTIAL RENT FOR ALL UNITS (a +b) $ 52 , 295 TOTAL ANNUAL POTENTIAL RENT FOR ALL UNITS $ 627,540 * Appropriate utility allowance available from local housing authority, see also item B on following page Cannot exceed 30% of adjusted family income * ** Fill in percentage that indicates level of affordability (e.g "60 %" if the number of units on that row are affordable to families or individuals with earnings at 60% of area median income) 10 , son= In Mon thly com TOTAL MONTHLY POTENTIAL RENT FOR ALL UNITS (a +b) $ 52 , 295 TOTAL ANNUAL POTENTIAL RENT FOR ALL UNITS $ 627,540 * Appropriate utility allowance available from local housing authority, see also item B on following page Cannot exceed 30% of adjusted family income * ** Fill in percentage that indicates level of affordability (e.g "60 %" if the number of units on that row are affordable to families or individuals with earnings at 60% of area median income) 10 HUNTER CREEK APARTMENTS SOURCE FUNDS Direct Construction Costs $ 185,000 185,000 3,798,332 174,700 440,134 $4,783,166 Land Site Development Construction Costs Professional Fees Construction Interim Costs Total Construction Costs 99,061 sq. ft. Total Building Area $ 48 sq. ft. Total Construction Cost Per Sq. Ft. Project Costs $ 185,000 185,000 3,778 174,700 440,134 220,668 113,100 20,000 175,000 $5,301,934 $ 49,184 $ 53 $5,899,449 <406,851> <190,664> $5,3 Land Site Development Construction Costs Professional Fees Construction Interim Costs Permanent Finance Costs Soft Costs Syndication Costs Operating Reserves Total Project ".'ost. Total Project Cost Per Unit Total. Project Cost Per Sq. Ft. Total Project Cost Developer Fee (Equity) Contractor Fee (Equity) Total Project Expenses Page 2 SOURCE FUNDS $3,870,000 450,000 300,000 400,000 281,934 Est Mortgage CHFA Tax Credits City of Pueblo Colo. Dept. of Housing Project Investor $5,301,934 AGREEMENT FOR COMMUNITY HOUSING DEVELOPMENT SERVICES (For - Profit Entity) This Agreement is made and entered into this nth day of T,, , , 1996 by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and V.R.Pueblo, L.L.C. (hereinafter referred to as "VRP "). WITNESSETH, that: WHEREAS, the City has, under date of February 17, 1995, entered into an agreement with the U.S. Department of Housing and Urban Development ( "HUD "), and it is anticipated that a subsequent fiscal year (1996) agreement will also be executed, subject to appropriation therefor, 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. sue.), 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 the Act and 24 CFR Sections 92.200 and 92.205, a portion of such financial assistance, subject to deobligation (and subject to appropriation with respect to any assistance payable out of future fiscal year allotments), may be made available to qualifying for - profit entities for the purpose of carrying out specific elements of the participating jurisdiction's housing strategy including new construction of affordable rental housing; and WHEREAS, VRP has represented to City that it is a duly qualified for - profit entity 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 VRP's representations, the City believes VRP 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 VRP for investment in housing to be developed, sponsored or owned by VRP 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. VRP SERVICES (a) VRP shall undertake, in accordance with all applicable federal, state and local laws and regulations, control and development of a project in furtherance of City's housing strategy and approved by the City and satisfactorily perform and complete all services and items of work, and furnish all labor and materials encompassed within or reasonably necessary to construct the project and accomplish the tasks and functions described in the Scope of Services attached hereto as Exhibit "A" and incorporated herein by reference, in full compliance with all provisions of this Agreement. Before proceeding with the project, VRP shall furnish City with all reasonable information which City may request concerning such project, demonstrate eligibility of such project for assistance under this Agreement, and obtain the written approval of City's authorized representative as to such project. (b) VRP warrants and represents that (1) it has the requisite authority and capacity to perform all terms and conditions on VRP's part to be performed hereunder; (ii) that it is duly organized as a limited liability company under state law and is in good standing with the Secretary of State of Colorado; (iii) that it is aware of and understands its duty to perform all functions and services in accordance with the regulatory requirements of 24 CFR Part 92 and those identified in Exhibit "C" hereto; and (iv) that it is accepting federal financial assistance hereunder subject to certain mandatory repayment provisions. (c) Time is of the essence hereof. VRP agrees that it shall commit and invest all funds made available hereunder for reimbursement within 18 months of June 10, 1996. (d) VRP acknowledges that because this agreement concerns a project for the construction of affordable housing consisting of more than 12 units, VRP shall require in all contracts for the construction of the project that (i) prevailing wages be paid to all laborers and mechanics performing work on the project pursuant to 24 CFR §92.354 and the Davis -Bacon Act [40 U.S.C. 276a -5] and (ii) the contract is subject to applicable requirements of the Contract Work Hours and Safety Standards Act [40 U.S.C. 327 -332]. 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 the performance of this Agreement, approval of the project to be undertaken by VRP hereunder and the disbursement 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. FINANCIAL ASSISTANCE AND METHOD OF PAYMENT (a) The City will pay to VRP an amount up to that specified in subparagraph (c) of this paragraph as full compensation for all services and work to be performed or undertaken by VRP under this Agreement. Payment of funds to VRP is subject to all of the following requirements, which shall be conditions precedent to payment: (1) that VRP has expended funds after June 10, 1996 for eligible approved expenditures with respect to an approved project, (ii) that VRP is not in default of any material provision of this Agreement nor applicable law or regulation, (iii) that VRP has timely submitted requests for payment or reimbursement detailing the eligible payment or reimbursement items in a format approved by City, (iv) that VRP has certified with each payment or reimbursement request compliance with the requirements identified in Exhibit "C" and that all -2- 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 VRP hereunder are subject to repayment by VRP as provided in 24 CFR Part 92. (c) The aggregate of all payments made hereunder shall not exceed Three Hundred Thousand Dollars (U.S. $ 300,000 ). (d) Upon expiration of the term of this agreement or upon any prior termination, VRP shall transfer to City any funds provided hereunder which are on 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 August 30, 1997; provided however, that with the respect to a project for which VRP has received financial assistance under and during the term of this Agreement, VRP 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 any nonperformance by VRP, upon ten (10) days written notice to VRP 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 both the grounds for termination and the appropriateness thereof shall be final and binding upon both City and VRP. In accordance with 24 CFR 85.43, cause for termination shall include any material failure by VRP to comply with any term of this Agreement. (b) For Convenience This Agreement may be terminated for convenience in accordance -3- with the provisions of 24 CFR 85.44. This Agreement shall terminate immediately upon any non - appropriation of FY 1996 funds, or upon any suspension or non - receipt of federal assistance provided to City under the Act, regardless of cause. (c) Post Termination Procedures In the event of termination, VRP shall continue to be responsible for those matters which survive termination identified in paragraph 4 above, unless City takes over the project and, in connection therewith, prospectively releases VRP from one or more specific responsibilities in writing. Additionally, at City's sole option, all property acquired by VRP with grant funds, all grant funds, program income, and mortgage loans originated with grant funds or by payments therefrom and payments received under such mortgage loans, held, owned or retained by VRP shall immediately become the sole and separate property of the City and VRP 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 VRP under this Agreement or with grant funds shall, at the option of the City, become its property and VRP shall be entitled to received just and equitable compensation only for satisfactory work completed and eligible costs for which compensation has not previously been paid nor reimbursement made. 6. ASSIGNABILITY This Agreement shall not be assigned or transferred by VRP without the prior written consent of the City. Any assignment or attempted assignment made in violation of this provision shall, at City's election, be deemed void and of no effect whatsoever. 7. CONFLICT OF INTEREST VRP 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 activity or 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. VRP 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 revised from time to time in the future. S. VRP RECORDKEEPING VRP shall maintain records as to all project work and activities undertaken with assistance hereunder, services provided, reimbursable expenses incurred in performing the Scope of Services and complete accounting records. Accounting records shall be kept on a generally recognized accounting basis and as requested by the City's auditor. VRP 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 Agreement, and VRP agrees to perform and comply with same. The City, MUD, the Comptroller General of the United States, the M Inspector General of HUD, and any of their authorized representatives, shall have the right to inspect and copy, during reasonable business hours, all books, documents, papers and records of VRP 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 VRP financial records relating to this Agreement to be turned over to the City. 9. MONITORING AND EVALUATION The City shall have the right to monitor and evaluate the progress and performance of VRP to assure that the terms of this Agreement are being satisfactorily fulfilled in accordance with HUD's, City's and other applicable monitoring and evaluation criteria and standards. The City shall at least quarterly review VRP's performance using on -site visits, progress reports required to be submitted by VRP, audit findings, disbursement transactions and contact with VRP as necessary. VRP 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. VRP shall fully cooperate with City relating to such monitoring and evaluation. 10. VRP FILES AND INFORMATION REPORTS VRP shall maintain files containing information which shall clearly document all activities performed in conjunction with this Agreement, including, but not limited to, financial transactions, conformance with assurances, activity reports, and program income. These records shall be retained by VRP 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 VRP Nothing herein contained nor the relationship of VRP to the City, which relationship is expressly declared to be that of an independent contractor, shall make or be construed to make VRP or any of VRP's agents or employees the agents or employees of the City. VRP shall be solely and entirely responsible for its acts and the acts of its agents, employees and subcontractors. 12. LIABILITY & INSURANCE (a) As to the City, VRP agrees to assume the risk of all personal injury, 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 conjunction with or arising out of the performance or nonperformance of this Agreement by VRP or by the conditions created thereby. VRP 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 -5- to persons or damages to property or based upon or arising out of the performance or nonperformance of this Agreement by VRP or out of any violation by VRP of any statute, ordinance, rule or regulation. (b) VRP agrees that it shall procure and will maintain during the term of this Agreement, such insurance as will protect it from claims under workers' compensation acts, claims for damages because of personal injury including bodily injury, sickness or disease or death of any of its employees or of any person other than its employees, and from claims or damages because of injury to or destruction of property including loss of use resulting therefrom; and such insurance will provide for coverage in such amounts as set forth in subparagraph (c). (c) The minimum insurance coverage which VRP shall obtain and keep in force is as follows: (i) Workers' Compensation Insurance complying with statutory requirements in Colorado. (ii) Comprehensive General and Automobile Liability Insurance with limits not less than Six Hundred Thousand and No /100 Dollars ($600,000.00) per person and occurrence for personal injury, including but not limited to death and bodily injury, and Six Hundred Thousand and No /100 Dollars ($600,000.00) per occurrence for property damage. (d) In the event VRP's obligations under this Agreement are secured by a deed of trust or mortgage instrument as provided in paragraph 14(c) of this Agreement, VRP agrees to procure and maintain, at its own expense, hazard and fire insurance upon the property described in said deed of trust on an "all risk" form in such amounts as City's Department of Housing and Community Development may require, but in any event, for not less than the amount of all liens against the property and the amount of funds provided by City pursuant to this Agreement. VRP shall furnish a certificate of insurance certifying such coverage to City's Director of Finance prior to disbursement of any funds to VRP. Both said certificate of insurance and the policy procured by VRP shall name the City as a loss payee. 13. CERTIFICATIONS VRP agrees to execute and abide by the certifications contained in Exhibit "C" hereto, which are hereby expressly made a part of this Agreement. 14. PROGRAM INCOME; REVERSION OF ASSETS (a) Unless otherwise authorized by City in writing, all program income shall be returned to City within 30 days of receipt by VRP. In the event City authorizes VRP to retain any portion of program income, it shall only be used to accomplish the work set forth in the Scope of Services, and the amount of grant funds payable by City to VRP shall be adjusted as provided by 24 CFR 92.503 and the applicable requirements of 24 CFR 85. I on (b) Upon expiration of the term of this Agreement, or upon any prior termination, VRP shall transfer to City any funds provided hereunder which are on hand at the time of expiration or termination together with any accounts receivable attributable to the use of funds provided hereunder. (c) Any real property acquired, constructed or improved in whole or in part with funds provided pursuant to this Agreement shall be used as affordable rental housing within the meaning of 24 CFR § 92.252 for the full period of affordability as defined in paragraph 4 hereof. In the event the property ceases to be so used, VRP shall pay to City an amount equal to the current market value of the property less any portion of the value attributable to expenditures of funds not provided under this Agreement for the acquisition of, or improvement to, the property. The use restriction and repayment obligation set forth in this subparagraph shall survive termination or expiration of this Agreement and shall be fully enforceable and subject to collection by City or HUD in accordance with applicable laws. VRP shall execute a deed of trust or mortgage instrument which shall be and constitute a lien upon all real property acquired or improved with funds provided hereunder, and which shall secure all obligations of VRP hereunder. (d) In the event City incurs any cost or expense in enforcing the requirements of this Agreement, including but not limited to the requirements of this paragraph 14, or in bringing any action to recover the property or amount of any repayment obligation, or to foreclose or obtain sale under the deed of trust or mortgage instrument, City shall be entitled to recover its costs and expenses, including reasonable attorneys fees. (e) To further ensure that the funds provided hereunder to VRP as a for - profit entity do not constitute an investment of more HOME funds than are necessary to provide affordable housing (as required by 24 CFR §92.150(c)(1)), VRP commits to retain ownership of the project for a period of not less than 10 years. Consequently, in the event VRP should sell or transfer title to the real property or improvements constructed or improved with funds provided pursuant to this Agreement, within 10 years after substantial completion of said improvements, the entire amount of assistance paid to VRP hereunder shall be repaid to City, together with interest thereon at the rate of 8% per annum from the time of substantial completion until said repayment is made; the aforestated deed of trust or mortgage instrument shall also secure this repayment obligation. 15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO PROPERTY (a) In addition to all procurement requirements otherwise applicable to VRP pursuant to any other provision of this Agreement or pursuant to any requirement of law or regulation incorporated in this Agreement by reference, if any portion of the funds provided to VRP under this Agreement is to be used for making improvements to real property, including new construction, rehabilitation, or remodeling, then in such event VRP shall comply with all requirements of this Paragraph 15. (b) No improvements shall be undertaken to real property with funds (or reimbursement) provided hereunder unless and until. (i) plans and specifications therefor have been prepared by either a registered Professional Engineer in good standing and duly licensed to practice in the State -7- of Colorado or an Architect duly licensed and authorized to conduct a practice of architecture in the state of Colorado; (ii) such plans and specifications have been filed with the City and approved by both the City's designated representative and the City's Director of Public Works; and (iii) all construction contracts for improvements for which payment is sought from City shall have been awarded only after an open, competitive bidding process which has been approved by City's Director of Purchasing and which allows qualified contractors to reasonably participate in the competitive bidding procedures. (c) If this Paragraph 15 is applicable, no disbursement of funds to VRP shall be made by City hereunder unless and until all conditions precedent to payment specified elsewhere in this Agreement have been satisfied and VRP files with City's Director of Housing and Community Development a written request for payment signed by an officer of VRP that certifies (1) that the amounts included in the request for payment have not been included in any prior request for payment, and (ii) that the improvements listed therein for which payment is sought have been completed in accordance with the approved plans and specifications therefor. (d) In every contract for construction of improvements for which payment or reimbursement from City is to be provided under this Agreement, VRP shall include a contract clause or clauses, approved by City's Director of Purchasing, requiring the contractor, and all of the contractor's subcontractors of all tiers, to comply with the requirements of the Davis -Bacon Act and implementing regulations, and to pay all laborers and mechanics engaged in work upon the improvements at the prevailing wage rates for such work as determined by the U. S. Department of Labor. (e) Every contract for construction of improvements, and all lower tier covered transactions, shall include a requirement that the contractor, subcontractor or vendor certify that neither it nor its principal is debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from participation in any federally funded project. 16. RECOGNITION OF HUD, CITY In all printed materials, project descriptions and other activities undertaken with funds provided under this Agreement, VRP 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, if any. 17. ENTIRE AGREEMENT; AMENDMENTS The provisions set forth in this Agreement, and all Exhibits and attachments to this Agreement, constitute the entire and complete agreement of the parties hereto and supersede all prior written and oral agreements, understandings or representations related thereto. No amendment 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 officers of both the VRP and City. In the event City has agreements with third parties concerning the site for the project or other matters, it is expressly understood by VRP that VRP is not a third party beneficiary of any such agreement, nor shall any terms thereof affect VRP's or City's obligations hereunder. 18. SIGNATURES The persons signing this Agreement on behalf of VRP represent and warrant that such persons and VRP have the requisite power and authority to enter into, execute and deliver this Agreement and that this Agreement is a valid and legally binding obligation of VRP enforceable against VRP in accordance with its terms. IN WITNESS WHEREOF, VRP and the City have executed this Agreement as of the date first above written and under the laws of the State of Colorado. CITY OF PUEBLO, ATTEST. A Municipal Corporation - - y., City Cler' Pre s dent of &y Council [SEAL] ATTEST: Title: V.R Pueblo L L C , a Colorado Limited Liability Company Name: Title: Rav_ 5/219/96 TJ F W