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HomeMy WebLinkAbout8048RESOLUTION NO. 8048 A RESOLUTION APPROVING AN AGREEMENT WITH NEIGHBORHOOD HOUSING SERVICES AND APPROPRIATING 1997 HOME FEDERAL HOUSING FUNDS TO ASSIST IN THE CONSTRUCTION OF 32 NEW SINGLE FAMILY RESIDENTIAL HOUSING UNITS UNDER A PARTNERSHIP WITH THE CITY OF PUEBLO THEREBY CARRYING OUT SPECIFIC ELEMENTS OF THE CITY OF PUEBLO'S HOUSING PLAN INCLUDING THE EXPANSION OF THE AVAILABILITY OF AFFORDABLE HOUSING FOR LOW AND MODERATE INCOME PUEBLO RESIDENTS, 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 Neighborhood Housing Services as a 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 One Hundred Thousand dollars ($100,000) of 1997 HOME funding for the development of 32 new single family residential housing units in coordination with the Department of Housing of the City of Pueblo and the attached Community Housing Development Agreement. To assist with the administrative costs associated with the relocation of four housing units, the agreement will allow for $8,000 in administrative costs. ATTEST: City Clerk INTRODUCED: February 10 , 1997 By Patrick Ava7 0s Councilperson APPROVED: Preside of th City Council AGREEMENT FOR COMMUNITY HOUSING DEVELOPMENT SERVICES (CHDO SET ASIDE) This Agreement is made and entered into this 10th day of February , 1997 by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Neighborhood Housing Services of Pueblo, Inc. (hereinafter referred to as "CHDO "). WITNESSETH, that: WHEREAS, the City has, under date of February 14, 1995, 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. set.), 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 February 10, 1998. 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, 1997, (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 Thousand Dollars (U.S. $100,000). 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 February 10, 1998; 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 3 finished or unfinished documents, data, studies reports and work product prepared by CHDO 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 M shall at least quarterly review CHDO performance using on -site visits, progress reports required 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 Exhibit "C ") 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. 15. 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 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. CITY OF PUEBLO, ATTEST: A MUNICIPAL CORPORATION By. G . City C16k Presiden of the City Council [SEAL] ATTEST: COMMUNITY HOUSING DEVELOPMENT ORGANIZATION: Neiiihborhood Housing Services of Pueblo Inc. Name Name: Title: Title:_ Revised May, 1995 6 NEIGHBORHOOD HOUSING SERVICES OF PUEBLO INC. PROPOSED 36 Single family 29th & Atlanta Avenue Subdivision — 3 Bedroom /2 bath front landscape & fencing Affordable Housing Development HOMEOWNERSHIP ZONE EDI GRANT 08/02/96 TOTAL COSTS PROJECT COST ANALYSIS DEVELOPMENT COSTS INCOME & EXPENSE ANALYSIS ACQUISITION Land Cost (40 building sites) 44000 Number of Units 36 0 Liens & Taxes NHS Feasibility study 0 TOTAL ACQUISITION 44000 $ /Unit % of PGI 3 BED.RM. /2 BATH $64,999 100.00% REFINANCING Principal Prepayment Penalty Other Other Other TOTAL REFINANCING TOTAL PROJECT COST $2,339,972 CONSTRUCTION COST VACANCY & LOSS 0.00 0.00% Cost of new homes 36 X $58,000 5% $2,088,000 41760 Contingency Landscape 3500 TOTAL CONSTRUCTION DEVELOPMENT FEES Permanent Loan Fee 2% Construction Loan Fee Appraisal Fees, Subdivsion,Water, Sewer Architect Development Cost Drainage Legal Developers Fee TOTAL DEVPMT. FEES DEVELOPMENT COST Construction Loan Interest Real Estate Tax Street/C &G/Water /Sewer Insurance Title Insurance Recording Cost Other TOTAL DEVLPMT. COST 2133260 0 2500 61880 2500 23000 74194 PHASEICOSTS 500 162864 327438 327425' PHASE II COSTS 324 25 4500 TESTS 326274 OWNER EQUITY RECAP LEAD BASE PAINT & ASBESTOS REMOVAL IF NEEDED OPERATING RESERVE EDI GRANT WRITE DOWN TOTAL PROJECT COST MEMO TO: Mr. Tony Berumen, City of Pueblo, Housing Dept. FROM: Lionel A. Trujillo, Executive Director NHS of Pueblo SUBJECT Homeownership zone application DATE: August 2, 1996 NHS of Pueblo would propose using a EDI Grant Funds to Develop a 5 acre parcel within the 'Y —ZONE' of Pueblo. The development would support 36 units of housing . 51% of the units would be reserved for low to moderate income families and would be sold for under $65,000. Your comments and imput would be appreciated 0 HOUSI^ ^ _ 0 ($491,000) 1 ' �f AUG $2,339,972 5 1996 g CAPITAL ANALYSIS Computed Net Income $0 Net Income for Proceeds from sales $0 Target Loan —to Value 100.00% Minimum Debt Cov —Ratio 0.00% Maximum Belot Service $ Mortgage Routine ONE TWO Type NR CAP GNT. HAP LOAN 1 NR. GNT 50000 ONE Int. Rate 0.00% PROCEEDS FROM SALE 2339972 TWO Term (yr) 0.00 EDI GRANT WRITE DOWN 488500 THREE Principal 50000.00 0.00 $2,878,472 TOTAL Constant 0.001 Debt Svc. 0.001 Available New D S (ANDS) THREE FOUR Type CONSTLOAN I Int. Rate Term(yr) Principal 0.00 $0 Contant I Debt s Svc. II 1 Cashflow after Debt Service $0 Owner Rate of Return $0 Computed Owner Equity $0 Probable Owner Equity $538,500 SUMMARY OF CAPITAL ANALYSIS Total Debt Service $0 Total Debt(Mortg) Capital $50,000 Capitalization Rate $0 Economic Value $50,000 Loan —to —Value Ratio:tst Mtg $1 Loan —to —Value Ratio:All Mtg $1 Loan —to —Value Ratio:tst Mtg Loan —to —Value Ratio:All Mtg TOTAL CAPITAL(DEBT +EQUITY) $2,878,472 TOTAL PROJECT COST $2,830,972 CAPITAL SURPLUS(SHORTFALL) $47,500 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