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
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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
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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
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