HomeMy WebLinkAbout09033RESOLUTION NO. 9033
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
POSADA INC., AND THE CITY OF PUEBLO, A MUNICIPAL
CORPORATION, FOR THE CONSTRUCTION OF 4 UNITS OF
MULTIFAMILY HOUSING IN ACCORDANCE WITH THE CITY
OF PUEBLO HOME/CDBG CONSOLIDATED PLAN
DESCRIBING PROJECTS THAT MEET AN AFFORDABLE
HOUSING STRATEGY FOR LOW AND MODERATE INCOME
HOUSEHOLDS BELOW 80% AREA MEDIAN INCOME UNDER
THE 1999 HOME INVESTMENT PARTNERSHIP PROGRAM
WHEREAS, the City of Pueblo, pursuant to the HOME Investment Partnerships Act, the
Cranston - Gonzales National Affordable Housing Act; 42 U.S.0 12701 et seq; 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; and
WHEREAS, at the council work session held on October 25, 1999, City Council listened to a
request for funding from Posada Inc., in the amount of $110,000 in HOME federal funds for the
purpose of carrying out the construction of 4 new multi- family units more fully described in "Exhibit
A "; and in accordance with the provisions of the Act and 24 CFR 92 92:200 a portion of such
HOME funds are encouraged to be under a partnership with other low income housing non-profits;
NOW THEREFOR
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PUEBLO,
COLORADO, that:
SECTION 1.
The City of Pueblo Affordable Housing Agreement dated June 12, 2000 between the City
and Posada Inc., a copy of which is attached hereto and incorporated herein, having been approved
as to form by the City Attorney, is hereby approved, and $110,000 in HOME federal dollars is
appropriated to Posada Inc., to be expended and used subject to the terms and conditions of the
attached City of Pueblo Affordable Housing Agreement.
SECTION II.
The President of the City Council is authorized to execute the City of Pueblo Affordable
Housing Agreement in the name of the City and the City Clerk is directed to affix the seal of the City
thereto and attest same.
INTRODUCED June 12. 2000
BY Patrick los
C n ' person a /
APPROVED , k
President of City Council
ATTEST:
P 4-
City Cl
COUNCIL
AGENDA
A RESOLUTION APPROVING AN AGREEMENT
BETWEEN POSADA INC., AND THE CITY OF
PUEBLO, A MUNICIPAL CORPORATION, FOR
AFFORDABLE HOUSING DEVELOPMENT
SERVICES IN FURTHERANCE OF THE CITY'S
HOUSING STRATEGY, AND AUTHORIZING
THE PRESIDENT OF THE COUNCIL TO
EXECUTE SAME
Department: Housing & Community Development
I. SUMMARY
A. ISSUE:
Agenda Item #
Date: June 12, 2000
A resolution authorizing ($110,000) of HOME funds to be provided to Posada Inc.
for a four (4) units multi - family project, known as Morning Glory Apartments, on
vacant land located on Fifth Street, in Pueblo, CO.
B. RECOMMENDATION:
Approve the resolution, thus approving a contract with Posada Inc., for 1999 HOME
funds. The project meets the HOME eligibility program in that it provides affordable
housing to families within the City of Pueblo whose household income falls below
80% of the area median income (AMI). All of the proposed units (4) will be
affordable to families making 50% of the area median income.
II. BACKGROUND
The City of Pueblo has been the recipient of HOME funds since 1992. The City is in the 5th year of
the CDBG/HOME Consolidated Plan. As part of that Plan the City must implement an affordable
housing strategy using HOME funds. This project will assist the City in meeting the goals and
objectives of that Plan by entering into a partnership with Posada Inc., for multi- family units. See
attached agreement and exhibits, including project narrative and pro formas.
II.
FINANCIAL IMPACT
The $110,000 in Federal HOME funds will be used in conjunction with the following
funding sources:
Colorado Division of Housing $ 50,000
Boettcher Foundation $ 20,000
Packard Foundation $ 50,000
Chamberlain Foundation $ 10,000
Def d Dev. Fee & Equity $ 22,500
$ 152,500
III. ALTERNATIVES
A. The City could elect to not partner with Posada Inc., and let Posada Inc., proceed
without City's assistance.
B. The City could approve this resolution
Rev. 515100
CITY OF PUEBLO
AFFORDABLE HOUSING DEVELOPMENT AGREEMENT
(CHDO Set Aside)
This Agreement is made and entered into this 12th day of June 2000 by and between the City
of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Posada. Inc. (hereinafter
referred to as "CHDO ").
WITNESSETH, that:
WHEREAS, the City has, under date of March 1, 1999, 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 implement -ing
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 (and subject to appropriation
with respect to any assistance payable out of future fiscal year allotments), may be made available to
qualifying community housing development organizations for the purpose of carrying out specific
elements of the participating jurisdiction's housing strategy including new construction of affordable
rental housing; 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 assisted 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 assist, in accordance with all applicable federal, state and local laws and
regulations, in the development of a project, to be known as the Morning Glory Apartments Project
(hereafter referred to as "the Project ") in furtherance of City's housing strategy and approved by the
City by providing necessary loan financing therefor using federal HOME funds provided under this
Agreement. CHDO shall also undertake and perform 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 such financing for the Project, CHDO
shall furnish City with all information which City may reasonably request concerning the Project,
demonstrate eligibility of the Project for assistance under this Agreement, and obtain the written
approval of City's authorized representative as to the Project, which approval will not be unreasonably
withheld. Upon and after such approval, CHDO shall enter into a written loan agreement with the
Owner /Developer of the Project setting forth the terms and conditions of the loan assistance to be
provided by CHDO, which loan agreement shall comply with all requirements of this Agreement and
the regulations incorporated by reference.
(b) CHDO warrants and represents that (i) it has the requisite authority and capacity to
perform all terms and conditions on CHDO's part to be performed hereunder; (ii) that it is duly
organized as a non - profit corporation under state law and is in good standing with the Secretary of
State of Colorado; (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 §92.2; (iv) 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 (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 meet the following deadlines
with respect to the Project:
(i) CHDO shall obtain satisfactory evidence that the Owner /Developer of the
Project has the financial ability to undertake and construct the Project, including proof that
it has secured loan commitments for a construction loan and the primary loan permanent
financing for the Project, and furnish such evidence to City, on or before June 1, 2000; CHDO
shall thereafter provide to the Owner/Developer a loan commitment which sets forth the
terms and conditions of the loan.
(ii) CHDO shall enter into a loan agreement with the Owner /Developer of the
Project consistent with the terms of this Agreement on or before August 1, 2000;
(iii) CHDO shall require the Owner /Developer to commence construction of the
Project not later than September 1, 2000; and
(iv) CHDO shall require the Owner /Developer to substantially complete
construction of the Project not later than September 30, 2001.
(d) CHDO acknowledges that because it is the policy of the City Council of City that fair
and prevailing wages be paid to all laborers and mechanics on projects funded through the City and
which rely upon federal funds, CHDO shall require in the loan agreement that in all contracts for the
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hereunder.
4. TERM OF AGREEMENT; SECURITY
(a) Unless sooner terminated, the term of this Agreement, for purposes of undertaking
the loan and construction and completion of the project, shall be from the date of execution hereof
until December 1, 2001; provided however, that with the respect to the Project for which CHDO has
received financial assistance under and during the term of this Agreement, CHDO and the
Owner/Developer of the Project 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
20 years from the completion of the Project except that if the assistance provided hereunder is used
in connection with other financing 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 20 years,
whichever is longer.
(b) (i) The full amount of loan assistance provided to the Project pursuant to this
Agreement shall constitute an indebtedness of the Owner/Developer to CHDO which shall be
evidenced by a promissory note (hereinafter referred to as the "Promissory Note" or "Note ") which
shall be due and payable with interest as provided therein and which shall be secured by the
following real property located in Pueblo County, Colorado (the "Property "):
Lot 2, Block 27, East Pueblo Subdivision
, as evidenced by a Deed of Trust to be executed contemporaneously with said Promissory Note.
The loan instruments shall require the Owner/Developer to pay to CHDO or holder the indebtedness
as and to the extent same becomes due under the provisions of the Promissory Note and this
Agreement. CHDO shall include terms in said Promissory Note or Deed of Trust stating that the
amount of the assistance shall continue as an indebtedness until paid in full, and notwithstanding
such payment in full, the affordability restrictions described in this Agreement shall continue in
effect and be enforceable for the full period of affordability without regard to the term of the Note
or Deed of Trust.
(ii) In order to secure CHDO's repayment obligations hereunder to City, City
may, at any time, require an assignment and transfer of said Note and Deed of Trust to City.
(c) During the full Term of this Agreement and for the period of affordability, (1) any
failure by the Owner/Developer or CHDO to perform any obligation, covenant or provision of the
Note or this Agreement required to be performed by the Owner/Developer or CHDO, or (ii) any
breach of any warranty made by CHDO in this Agreement, or (iii) any other violation of any
material term of this Agreement or the Deed of Trust given to secure the Note, shall constitute a
in
default under this Agreement. Upon any such default, the City may demand that CHDO repay to
City the full amount of assistance provided hereunder, plus interest at the rate of 12% per annum
from and after the date of such default. CHDO further agrees that no release of any security for the
indebtedness or extension of time for payment of same, or any installment thereof, and no alteration,
amendment or waiver of any provision of the Note or the Deed of Trust securing same shall in any
manner, release, discharge, modify or affect the obligations of CHDO under this Agreement.
5. TERMINATION OF AGREEMENT
(a) For Cause This Agreement may be terminated by City for cause, including any
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 both 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 non -
appropriation of 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, CHDO 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 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 mortgage 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 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 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, at City's election, be deemed void and of no effect whatsoever.
7. CONFLICT OF INTEREST
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HOME Regulation 24 CFR, Part 92.356 is incorporated herein by reference, and sets forth
applicable laws and regulations that apply to Conflict of Interest. CHDO, and its Board of
Directors, officers and employees, shall avoid all conflicts prohibited by applicable regulations,
including but not limited to those set forth in 24 CFR Part 92 as presently promulgated and as same
may be revised from time to time in the future.
8. CHDO RECORDKEEPING
CHDO shall maintain, and shall require the Owner/Developer to maintain, records as to the
Project work and activities undertaken with assistance hereunder, services provided, reimbursable
expenses incurred in connection with the Project and complete accounting records. Accounting
records 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 Agreement, and CHDO agrees to perform and comply with same, and shall
require the Owner/Developer to do likewise. The City, HUD, the Comptroller General of the United
States, the 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 CHDO and the Owner/Developer 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's and the Owner/Developer's 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
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 evaluation criteria and standards. The City shall
at least quarterly review CHDO's 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 transactions,
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
[am
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, or the Owner/Developer, 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 & INSURANCE
(a) As to the City, CHDO 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 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.
(b) CHDO 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 CHDO 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) CHDO further agrees that it shall require the Owner/Developer of the Project to
procure and maintain, at the Owner/Developer's expense, hazard and fire insurance upon the
property described in the Deed of Trust on an "all risk" form in such amounts as City's Department
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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 to CHDO by City
pursuant to this Agreement. CHDO shall furnish a certificate of insurance certifying such coverage
to City's Director of Finance prior to disbursement of any funds to CHDO. Both said certificate of
insurance and the policy procured by the Owner/Developer shall name the City as an additional loss
payee.
13. CERTIFICATIONS
CHDO 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) (I) Unless otherwise authorized by City in writing in a separate instrument executed after
date of this Agreement, 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 only
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 the applicable
requirements of 24 CFR 85.
(II) Additionally, all developer fees received by CHDO, including any such fees paid
from or out of rental income for the Project, regardless of when received, shall be used and applied
by CHDO only to or for programs and projects approved in writing by the City which serve to assist
low and moderate income persons in obtaining housing.
(b) Upon expiration of the term of this Agreement, or upon any prior termination, CHDO
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) The Project, the Property, and any other 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 Project, the Property or such other property ceases
to be so used, CHDO shall immediately pay to City the greater of (i) an amount equal to the current
market value of the Project and property less any portion of the value attributable to expenditures
of funds not provided under this Agreement for the construction of the Project or acquisition of, or
improvement to, the Property (that is, the calculation of the portion of value attributable to
expenditures not provided by City under this agreement shall be the market value multiplied by a
fraction whose numerator is the total Project cost or costs of acquisition determined as of the date
of Project completion less the amount of assistance provided by City and whose denominator is the
total Project cost or cost of acquisition determined as of the date of Project completion) or, (ii) the
remaining principal balance and accrued interest owing under the Note. The use restriction and
repayment obligation set forth in this subparagraph shall survive termination or expiration of this
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Agreement and shall be fully enforceable and subject to collection by City or HUD in accordance
with applicable laws. CHDO shall require the Owner/Developer to comply with the requirements
of this paragraph and to execute a Deed of Trust which shall be and constitute a lien upon the
Property and all other real property acquired or improved with funds provided hereunder, and which
shall secure the affordability requirements 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 amount of any repayment obligation, or, upon assignment of the Note and the
Deed of Trust to City, 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 do not constitute an investment
of more HOME funds than are necessary to provide affordable housing (as required by 24 CFR
§92.250(b)), CHDO shall require the Owner/Developer to retain ownership of the Project for a
period of not less than 20 years from and after the completion of the Project. Consequently, in the
event the Owner/Developer should sell or transfer title to the Project, the Property or other real
property or improvements constructed or improved with funds provided pursuant to this Agreement,
within 20 years after substantial completion of the Project or said improvements, the Loan
Agreement, Note and Deed of Trust shall provide that the entire indebtedness under the Note shall
immediately become due and payable and shall be collected by CHDO and repaid to City, together
with interest thereon at the rate of 12% per annum from the time of substantial completion until said
repayment is made. If Owner/Developer is a limited partnership, nothing in this subparagraph (e),
nor in subparagraph (f) of this paragraph 14, is intended to prohibit a transfer of ownership from
Owner/Developer to any general partner or limited partner in Owner/Developer.
(f) It is the intent of the parties that §38 -30 -165, C.R.S. and any similar statute hereafter
enacted, be preempted under federal law and regulations in order to maintain affordability of the
rental units within the Property. Consequently, the Loan Agreement between CHDO and the
Owner/Developer and the Note and Deed of Trust executed by the Owner/Developer shall not be
assumable, and the indebtedness shall be due and payable upon sale, transfer or assignment, or any
attempted sale or transfer of the Property by the Owner/Developer, unless all of the following
circumstances are demonstrated to exist: (i) more than 20 years have elapsed since the substantial
completion of the Project, (ii) the Primary Lender also consents to assumption of the mortgage or
obligation to which the Deed of Trust is subordinate, (iii) the sale of the Property is to a subsequent
purchaser who agrees in writing to comply with the affordability requirements of this Agreement
and applicable requirements, including those set forth at 24 CFR, §92.252, (iv) the sale price and
payment of principal, interest, property taxes and insurance by the subsequent purchaser must
permit the rental units to remain affordable for the remaining period of affordability specified in this
Agreement, with affordability determined by applicable regulations and requirements, and (v) both
the City and the holder of the Note expressly consent to assumption of the Owner /Developer's
obligations under the loan agreement and the Note by the subsequent purchaser prior to sale or
transfer, which consent shall be granted only upon the Owner/Developer's showing circumstances
(i) through (iv) have or will be satisfied.
M
15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO PROPERTY
(a) In addition to all procurement requirements otherwise applicable to the Project
pursuant to any other provision of this Agreement or pursuant to any requirement of law or
regulation incorporated in this Agreement by reference, CHDO shall comply with all requirements
of this Paragraph 15.
(b) No improvements shall be undertaken to the Property or other real property with
funds (or reimbursement) provided hereunder unless and until: (1) plans and specifications therefor
have been prepared by either a registered Professional Engineer in good standing and duly licensed
to practice in the State 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 funds are provided
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) No disbursement of funds to CHDO shall be made by City hereunder unless and until
all conditions precedent to payment specified elsewhere in this Agreement have been satisfied and
CHDO files with City's Director of Housing and Community Development a written request for
payment signed by an officer of CHDO that certifies (i) that the amounts included in the request for
payment have not been included in any prior request for payment, (ii) that the improvements listed
therein for which payment is sought have been completed in accordance with the approved plans
and specifications therefor, and (iii) that the improvements for which payment is sought have been
constructed so as to comply with City of Pueblo building codes and Section 8 Housing Quality
Standards.
(d) In every contract for construction of improvements for which payment or
reimbursement from City is to be provided under this Agreement, CHDO shall include a contract
clause or clauses, approved by City's Director of Purchasing, requiring the Owner/Developer, 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
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In all printed materials, project descriptions and other activities undertaken with funds
provided under this Agreement, CHDO shall either provide recognition that funds have been
provided by the U.S. Department of Housing and Urban Development and the City of Pueblo or
shall cause the Owner /Developer to do so. 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 CHDO and City.
18. SIGNATURES
The persons signing this Agreement on behalf of CHDO represent and warrant that such
persons and CHDO 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 CHDO enforceable
against CHDO in accordance with its terms.
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:
City C k
[SEAL]
ATTEST.
� r
CITY UEBLO
AM ic' al Corp ion
By:
Y
President of City Council
POSADA, INC.,
a Colorado Noil Profit Corporation
Name: K__- k M
Title:
ecl C)✓
Rev. 5/5/00 TJF
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EXHIBIT A
SCOPE OF SERVICES
ALPHA WEST -- HOME Project: Morning Glory Apartments
HOME Project #:
1. PROJECT DESCRIPTION, OBJECTIVES, AND REQUIREMENTS.
This Project is constructing one four -unit apartment building on land at 724 East 5 Street,
Pueblo, CO., which the Sponsor currently owns. The three of the 2- bedroom units will be
maintained as rental units for families whose income is equal to or less than 50 percent of the
Area Median Income (AMI) for Pueblo County, CO. The remaining unit will provide housing in
exchange for services to a resident manager. The project is located adjacent to Posada's existing
transitional housing facility, which allows for the combined management of both facilities.
A. Form of Subsidy. $110,000 of HOME grant funds for construction, will be
administered in accordance with the requirements of this agreement, and the performance goals
and timelines outlined in the Agreement.
B. Time of Performance. The Project shall commence upon the full and proper
execution of the Agreement and the completion of the appropriate environmental review and
shall be complete on or before September 30, 2001.
C. Payment Schedule. Payments will be made in accordance with the Affordable
Housing Development Agreement.
2. ELIGIBLE BENEFICIARIES. The Sponsor shall insure that all of the units will be
occupied by persons whose household income is equal to or less than 50 percent of the AMI.
3. INCOME ELIGIBILITY DETERMINATION. For the initial project lease up, the
Sponsor must determine annual income of the project beneficiaries using "Annual Income ", as
defined under the public housing and Section 8 programs in 24 CFR 5.601.
4. USE RESTRICTION AND AFFORDABILITY ENFORCEMENT. Rent and tenant
income requirements must be enforced.
A. Beneficiary Income. All of the units will be occupied by persons whose
household income is less than or equal to 50 percent of the Area Median Income (AMI).
B. Rent Restriction. To insure the housing is affordable to very low income
persons, the rental units must have rents which are the lesser of the Section 8 Fair Market Rents
(FMR), as periodically established by the U.S. Department of Housing and Urban Development
(HUD), or rents which are 30 percent of adjusted income for households at 65 percent of AMI
minus tenant paid utilities.
Pueblo MSA (A/0 2/00) 1 1- Bedroom 2- Bedrooms I 3- Bedrooms I 4- Bedrooms
Fair Market
432
540
727
867+
65% of Median Rent
Limit
472
569
648
703
The owner must reexamine the rents upon receipt of new HOME rents, which are recalculated on
a periodic basis by the HUD, and adjust the rents of the HOME - assisted units to reflect the
changes. Regardless of changes in FMR and AMI over time, the HOME rents for this project are
not required to be lower than the HOME rent limits shown above.
5. PROJECT BUDGET
See attached Housing Analysis Worksheets.
CITY OF PUEBLO HOME — Affordable Housing Program
Rental Project Worksheet
Project Name: MorningGlory
Project MSA or County: Pueblo
Area Median Income (AMI) for the project location: <80%
50% Area Median Income (AMI) for the project location: $ 18,750
06/02/00
Targeted
HUD
Income
Limit
1
2
3
Household Size
4 5
6
7
8
50%
$ 14,800
$
16,900
$ 19,050
$ 21,150
$ 22,850
$ 24,550
$ 26,250
$ 27,900
60%
#NAME?
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#NAME?
#NAME?
#NAME?
#NAME?
#NAME?
#NAME?
70%
#NAME?
#NAME?
#NAME?
#NAME?
#NAME?
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#NAME?
#NAME?
%
$ 23,700
$
27,050
$ 30,450
$ 33,850
$ 36,550
$ 39,250
$ 41,950
$ 44,650
Number of
Bedrooms
Income
Restriction
(% AMI)
# of
Units
Maximum
AHP Rent
Proposed
Rent
Annual
Rent
Revenue
Efficiency
50
0
60
$0
70
$0
80
$0
> 80
$0
1 Bedroom
50
0
60
$0
70
$0
80
$0
> 80
$0
2 Bedroom
50
4
400
400
$19,200
60
$0
70
$0
80
$0
> 80
$0
3 Bedroom
50
0
60
$0
70
$0
80
$0
> 80
0
4 Bedroom
50
0
60
$0
70
$0
80
$0
> 80
$0
Total nits 4 Total Annual Rent $19,200
Very Low - Income Units
Very Low - Income Units
4
100.0%
236.975
Rental Project Worksheet
CITY OF PUEBLO HOME — Affordable Housing Program
Development Budget
Total AHP
Land and Buildings
6/2/00 16:13
Other Per Unit
Land Acquisition
$ 10,000
Building Acquisition
Liens and Taxes
$ 5,000
Holding Period Interest
$ 4,000
Relocation Costs
$ 5,000
$
Other: Survey
$ 2,000
Subtotal
$ 12,000 1
$ - 1
$ -
Site Work
Site Grading, Clearing, Demolition
$ 182,500
Off -Site Improvements
Environmental
$ 5,000
Other
$ 4,000
Subtotal
$ 5,000
$
Construction and Rehabilitation Costs
New Construction Costs
$ 182,500
Rehabilitation Costs
Accessory Structures
General Requirements
$ 4,000
Contractor Overhead
$ 8,800
$
Contractor Profit
Construction Contingenc
Local Permit Fees
$ 1,500
Tap Permit Fees
$ 6,700
Other: Landscaping
$ 5,000
Other: On -Site Infrastructure 1
$ 9,000
Subtotal 1
$ 204,700
Professional Fees
Architect Design
$ 4,800
Architect Supervision
Attorney, Real Estate
Engineering Fees
$ 4,000
Subtotal
$ 8,800
$
Construction Interim Costs
Hazard/Risk/Liability Insurance
$ 600
Construction Bond Premium
Performance Bond
Credit Report
Construction Loan Interest
Construction Loan Fee
Discount Points
Credit Enhancement Fee
Inspection Fees
Title, Recording and Escrow Fees
Le al Fees
Construction Period Interest
Security
Real Estate Taxes
Other
Subtotal
$ 600
$
is -
$0
$0
$1,250
$0
$1,250
1 $51,1751
$1,200
$0
$0
$1,000
$2,200
Permanent Financing
Bond Premium $0
Development Budget
Credit Report
Not
Discount Points
-
AHP
Permanent Loan Origination Fee
Eligible
Permanent Loan Credit Enhancement
$ 30,000
Costs
Title, Recording and Escrow Fees
$ 600
$ 30,000
$
Le al Fees
Cost Certification
Prepaid Mortgage Insurance Premium
Contingency Soft Costs
Other
Appraisal
Subtotal
1 $ 600
$
$ 800
Soft Costs
Feasibility Stud
Not
Market Stud
-
AHP
Environmental Stud
Eligible
Tax Credit Fees
$ 30,000
Costs
Compliance Fees
$ 30,000
$
Cost Certification
Contingency Soft Costs
Appraisal
Marketing
$ 800
Subtotal
$ 800
$
Syndication Costs
Organization Costs
Not
Bridge Loan Expenses
-
AHP
Tax Opinion
Eligible
Other
$ 30,000
Costs
Subtotal
$ 30,000
$
Developer Fees
Developer Overhead
Not
Developer Profit
-
AHP
Consultant Fee
Eligible
Other: Developer Fees
$ 30,000
Costs
Subtotal
$ 30,000
$
Project Reserves
Rent Up Expense
Not
Operating Reserves
-
AHP
Replacement Reserve
Eligible
Escrows
Costs
Debt Service Reserve
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$7,500
$7,500
Total Residential Costs $ 262,500 $ - $ - $65,625
Development Budget
CITY OF PUEBLO HOME -- Affordable Housing Program
Sources of Funds
MomingGlory
6/2/00
Permanent
Financing
Type
(eg Loan
Grant or
Equity)
Amount
Rate
Term
(in months)
Amortization
(in months)
Status
(eg Approved,
Requested)
Monthly
Debt
Service
Annual
Debt Service
Colorado Div of Housing
rant
50,000
Boettcher Foundation
grant
$10,000
Chamberlain Foundation
grant
$20,000
Packard Foundation
grant
$50,000
Deferred Development Fee
equity
$10,000
Owner equity
equity
$12,500
City of Pueblo
loan
$110,000
Total Sources
$262,5001
-
-
Construction /Interim Type Amount Rate Term Status
Financing (eg Loan (in months) (eg Approved,
Grant or Requested)
Equity)
Total Sources so
Sources of Funds
CITY OF PUEBLO HOME -- Affordable Housing Program
RENTAL PROJECTS PRO FORMA
Project: MomingGlory
Number of Units:
Year 1 1 Year 2 1 Year 3 1 Year 4 Year 5 Year 6 1 Year 7 1 Year 8 1 Year 9 Year 10
1. EFFECTIVE GROSS INCOME Estimated Rate of Annual Increase: Income
A. Scheduled Residential Rents
$19,200
$19,968
$20,767
$21,597
$22,461
$23,360
$24,294
$25,266
$26,277
$27,328
B. Less Vacancy
5°
$960
$998
$1,038
$1,080
$1,123
$1,168
$1,215
$1,263
$1,314
$1,366
C. Commercial Rents
$0
$0
$0
$0
$0
$0
$0
$0
$0
D. Less Vacancy
5°
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
E. Laundry, Parking & Other Rev.
$0
$0
$0
$0
$0
$0
$0
$0
$0
F. Other:
$0
1 $0
1 $0
$0
$0
$0
$0
$0
$0
$0
Total Effective Gross Income
1
1 $18,2401
$18,970
1 $19,7281
$20,518
1 $21,338
$22,192
1 $23,079
1 $24,0031
$24,963
1 $25,961
2. OPERATING EXPENSES Estimated
Rate of Annual Increase: Expenses 4 0 /
A. Management Fee
$4,800
$4,992
$5,191
$5,398
$5,614
$5,839
$6,072
$6,315
$6,568
$6,831
B. Legal & Audit
$2,500
$2,600
$2,704
$2,812
$2,925
$3,042
$3,163
$3,290
$3,421
$3,558
C. Advertising
$250
$260
$270
$281
$292
$304
$316
$329
$342
$356
D. Gas & Electric
$0
$0
$0
$0
$0
$0
$0
$0
$0
E. Water & Sewer
$0
$0
$0
$0
$0
$0
$0
$0
$0
F. Supplies
$0
$0
$0
$0
$0
$0
$0
$0
$0
G. Payroll
$0
$0
$0
$0
$0
$0
$0
$0
$0
H. Waste Removal
$420
$437
$454
$472
$491
$511
$531
$553
$575
$598
I. Pest Control
$0
$0
$0
$0
$0
$0
$0
$0
$0
J.Repair
$400
$416
$433
$450
$468
$487
$506
$526
$547
$569
K. Maintenance
$1,200
$1,248
$1,298
$1,350
$1,404
$1,460
$1,518
$1,579
$1,642
$1,708
L. Grounds & Decorating
$600
$624
$649
$675
$702
$730
$759
$790
$821
$854
M. Insurance
1 $1,200
$1,248
$1,298
$1,350
1 $1,404
$1,460
$1,518
$1,579
$1,642
$1,708
N. Other:
$1,050
$1,092
$1,136
$1,181
$1,228
$1,277
$1,329
$1,382
$1,437
$1,494
3. TAXES & FEES
A. Real Estate
$2,200
$2,288
$2,380
$2,475
$2,574
$2,677
$2,784
$2,895
$3,011
$3,131
B. Local & State Assessments
$0
$0
$0
$0
1 $0
$0
$0
$0
$0
C. Other:
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Operating Expenses
$14,620 1
$15,205
$15,812 1
$16,4441
$17,1021
$17,7871
$18,497 1
$19,237 1
$20,007
$20,808
4.RESERVES
A. Replacement Reserves
$2,000
$2,080
$2,163
$2,250
$2,340
$2,433
$2,531
$2,632
$2,737
$2,847
B. Operating
$1,400
$1,456
$1,514
$1,575
$1,638
$1,703
$1,771
$1,842
$1,916
$1,993
C. Other:
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
5. TOTAL RESERVES & EXPENSES
$18,020
$18,741
$19,490
$20,269
$21,080
$21,923
$22,800
$23,712
$24,660
$25,64T
6. NET INCOME
$220
$229
$239
$249
$259
$269
$280
$291
$302
$314
7. ANNUAL DEBT SERVICE
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$220 $229 $239 $249 $259 $269 $280 $291 $302 $314
DEBT COVERAGE RATIO #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0! #DIV /0!
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Pro Forma
CITY OF PUEBLO HOME - A 6/2/00
RENTAL PROJECTS PRO FO
Number of Units:
Year 11
Year 12
Year 13
Year 14
Year 15
1. EFFECTIVE GROSS INCOME
A. Scheduled Residential Rents
$28,421
$29,558
$30,740
$31,969
$33,248
B. Less Vacancy
$1,421
$1,478
$1,537
$1,598
$1,662
C. Commercial Rents
$0
$0
$0
$0
$0
D. Less Vacancy
$0
$0
$0
$0
$0
E. Laundry, Parking & Other Rev.
$0
$0
$0
$0
$0
F. Other:
$0
$0
$0
$0
$0
Total Effective Gross Income
$27,000
$28,080
$29,203
$30,371
$31,586
2. OPERATING EXPENSES
A. Management Fee
$7,104
$7,388
$7,683
$7,991
$8,310
B. Legal & Audit
$3,701
$3,849
$4,003
$4,163
$4,329
C. Advertising
$370
$385
$400
$416
$433
D. Gas & Electric
$0
$0
1 $0
$0
$0
E. Water & Sewer
$0
$0
$0
$0
$0
F. Supplies
$0
$0
$0
$0
$0
G. Payroll
$0
$0
$0
$0
$0
H. Waste Removal
$622
$647
$672
$699
$727
I. Pest Control
$0
$0
$0
$0
$0
J. Repair
$592
$616
$640
$666
$693
K. Maintenance
$1,776
$1,847
1 $1,921
$1,998
$2,078
L. Grounds & Decorating
$888
$924
$961
$999
$1,039
M. Insurance
$1,776
$1,847
1 $1,921
$1,998
$2,078
N. Other:
$1,554
$1,616
$1,681
$1,748
$1,818
3. TAXES & FEES
A. Real Estate
$3,257
$3,387
$3,522
$3,663
$3,810
B. Local & State Assessments
$0
$0
$0
$0
$0
C. Other:
$0
$0
$0
$0
$0
Total Operating Expenses
$21,640
$22,505
$23,405
$24,342
$25,315
4. RESERVES
A. Replacement Reserves
$2,960
$3,079
$3,2021
$3,330
$3,463
B. Operating
$2,072
$2,155
$2,241
$2,331
$2,424
C. Other:
$0
$0
$0
$0
$0
5. TOTAL RESERVES & EXPENSES
$26,673
$27,740
$28,849
$30,003
$31,203
6. NET INCOME
$327
$340
$354
$368
$383
7. ANNUAL DEBT SERVICE
1 0
$0
$0
$0
$0
$327 $340 $354 $368 $383
DEBT COVERAGE RATIO #DIV /0i
Line 6 divided by Line 7
I #DIV/0!
I #DIV /0!
I #DIV /0!
#DIV /0!
Pro Forma
EXHIBIT 11
. ACCOUNTING SYSTEM COy1Pl_.IANCE PROVISIONS
As used in this Exhibit, the term "Sponsor" shall mean the entity entering into the Agreement Nvith
the City of Pueblo, a Municipal Corporation to which this Exhibit is attached.
2. Sponsor is subject to and shall comply with the requirements of OMB Circular A -133 applicable
to a Nonprofit Institution as defined in OMB Circular A -133.
3. Sponsor agrees to maintain (and require the Developer to maintain) Project and accounting records
in accordance with generally accepted accounting principles which accurately reflect all costs
chargeable to the Project, utilize adequate internal controls, and maintain source documentation
for all costs incurred. The City shall have the right to review and approve Sponsor's account
system and internal controls prior to the release of any funds under the Agreement.
4. During the preconstruction and construction phases of the Project, the Sponsor shall not allow there
to be any material deviation from any approved Project budget unless any proposed major revision
thereto has been submitted to City and approved in writing. Change orders of less than $$10,000
each or $50,000 in the aggregate shall not be deemed to be material deviations or major revisions
to the Project budget.
Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties nor to any
Developer, contractors, subcontractors, consultants, suppliers or workmen who have contracted
with Sponsor or provided any materials or services to Sponsor.
6. The City has the right to periodically perform interim audits and a final audit of the Project and
funds provided under the Agreement. Sponsor shall fully cooperate (and shall require the
Developer to cooperate) with City in undertaking any such audit and shall provide a suitable work
area for City's audit personnel to inspect and copy records.
EXHIBIT C
CERTIFICATIONS
Developer hereby certifies that the project will be conducted and administered in compliance with
all of the following requirements:
(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88 -352; 42 U.S.C. 2000d, et sea .) 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 sec .), as
amended; and that the grantee will administer all programs and activities related to housing and community
development in a manner to affinuatively 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) Constriction 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.
Signature