HomeMy WebLinkAbout09078RESOLUTION NO. 9078
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
NEIGHBORHOOD HOUSING SERVICES OF PUEBLO, INC., AND
THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR
AFFORDABLE HOUSING DEVELOPMENT, AND AUTHORIZING
THE PRESIDENT OF THE COUNCIL TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that:
SECTION 1.
The Agreement dated August 14, 2000 between Neighborhood Housing Services of
Pueblo, Inc., and the City of Pueblo, A Municipal Corporation, ( "the Agreement "), for the
development of affordable housing, a copy of which is attached and incorporated herein,
having been approved as to form by the City Attorney, is hereby approved.
SECTION 2.
The President of the City Council is hereby authorized to approve the adoption of
the resolution, and the City Clerk to attest the same, by and on behalf of the City of Pueblo.
INTRODUCED: August 14, 2000
ATTEST:
Gina trk er
City
By: Al Gurule
Councilperson
APPROVED:
h LL 1 /4 -
Co inne Koehler
President of the City Council
COUNCIL
AGENDA
A RESOLUTION APPROVING AN AGREEMENT
BETWEEN NEIGHBORHOOD HOUSING
SERVICES OF PUEBLO, INC., FOR
AFFORDABLE HOUSING DEVELOPMENT
SERVICES IN FURTHERANCE OF THE CITY'S Agenda Item #
HOUSING STRATEGY, AND AUTHORIZING
THE PRESIDENT OF THE COUNCIL TO
EXECUTE SAME
Department: Housing & Community Development Date: August 14, 2000
SUMMARY
A. ISSUE:
A resolution approving the Agreement, hereto attached, between the City of
Pueblo, a Municipal Corporation and Neighborhood Housing Services of
Pueblo, Inc. HOME funds previously approved for this project by Council
pending an Affordable Housing Agreement between the parties are to be
used for public improvements to a portion of 18 Street, between Hyde Park
Elementary School and a location west of Wildhorse Creek, and within the
Tierra Encantada subdivision, in the Hyde Park neighborhood. Said public
improvements will enable the construction of new single - family detached
homes benefiting a low -to- moderate income neighborhood and families.
B. RECOMMENDATION:
Approve the resolution, thus approving a contract with Neighborhood
Housing Services of Pueblo, Inc. The project meets the HOME eligibility
program requirements in that the public improvements reduce the total cost
of construction for new affordable housing. The proposed units which will
be benefited will be affordable to families making 80% or less of the area
median income.
BACKGROUND
The City of Pueblo's City Council through Resolution 8988 approved Neighborhood
Housing Services of Pueblo, Inc., as developer of 79 single - family housing units to
be built in the Hyde Park neighborhood, including site acquisition and reserving
additional HOME funds subject to conditions and requirements, which are hereby
met in the attached agreement and exhibits.
III. ALTERNATIVES
A. The City could elect to not partner with Neighborhood Housing Services
of Pueblo, Inc., and Neighborhood Housing Services of Pueblo, Inc.,
proceed without City's assistance.
B. The City could approve this Resolution
PUEBLW
Rev. 8/7/00
CITY OF PUEBLO
AFFORDABLE HOUSING DEVELOPMENT AGREEMENT
(CHDO Set Aside)
This Agreement is made and entered into this 14th day of August 2000, 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, there exists within the City of Pueblo an insufficient supply of safe, decent and
sanitary housing which is affordable to low and moderate income families; and
WHEREAS, there exists a shortage of affordable building sites within the City for the
construction of new safe, decent and sanitary housing which is affordable to low and moderate
income families; and
WHEREAS, the provision of sufficient decent, safe and sanitary housing for low and
moderate income persons serves municipal and public purposes; and
WHEREAS, construction of new low and moderate income housing developments in urban
redevelopment areas will assist in providing affordable housing, will reduce the spread of urban
blight and will serve to revitalize urban neighborhoods; and
WHEREAS, the City has, under date of April 17, 2000, 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. 5g q.), 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 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, including construction of a new low and moderate income housing
development in an urban redevelopment area, as identified herein and in the Scope of Services
attached hereto; and
WHEREAS, federal financial assistance is necessary and required for such housing
development to create a supply of suitable building sites for new affordable housing; 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, including the undertaking of an urban redevelopment project for construction of new single
family homes for low and moderate income families, and City is willing to allocate federal funds
to or for the benefit of 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:
PROJECT AND CHDO SERVICES
(a) The Property CHDO has heretofore received an advance of funds, in the amount
of $123,000.00 from City for the purpose of acquiring fee simple title to several parcels of real
property located within an urban redevelopment area in the City of Pueblo, Pueblo County,
Colorado, consisting in the aggregate of approximately 19.5 acres, more or less, described more
particularly as:
Parcel A:
A portion of the S' /2 of the NE' /4 of the NE %4 of Section 27, T. 20 S., R. 65
W., of the 6th P.M., and being more particularly described as follows:
Beginning at a point on the East line of said Section 27; said point
being 210.00 feet South of the Northeast corner of the said S%2 of the NE' /4
of the NE' /4; thence Westerly and at right angles to the East line of said
NE' /4, a distance of 130 feet; thence Northerly and parallel to the East line
of said NE' /4, a distance of 44 feet; thence Easterly, a distance of 130 feet
to the East line of said NE '/4, thence South along the East line of said
NE' /4, a distance of 44 feet to the point of beginning.
Parcel B:
A portion of the S%2 of the NE' /4 of the NE' /4 of Section 27, T. 20 S., R. 65
W., of the 6th P.M., and being more particularly described as follows:
Beginning at a point on the East line of said Section 27, said point
being 310 feet South of the Northeast corner of the said S' /2 of the NE' /4 of
the NE' /4; thence Westerly and at right angles to the East line of said NE' /4,
a distance of 130 feet; thence Southerly and parallel to the East line of said
NE' /4, a distance of 192.35 feet; thence Easterly, a distance of 130 feet to
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the East line of said NE' /4; thence North along the East line of said NE %4,
a distance of 192.35 feet to the Point of Beginning.
Parcel C:
Beginning at the S.E. Comer of the S'' /2 of the NE' /4 of the NE %4 of Section
27, T. 20 S. Range 65 W., described as follows: Beginning at the SE
Corner of said S'' /z of the NE' /4 of the NE %4 Section 27, thence North 150
feet; thence West 130 feet; thence South 150 feet; thence East to the point
of beginning, Pueblo County, Colorado.
Parcel D:
A portion of the S'' /2 of the NE %4 of the NE %4 of Section 27, T. 20 S., R. 65
W., of the 6th P.M., and being more particularly described as follows:
Beginning at a point on the East line of said Section 27, said point
being 210 feet South of the Northeast corner of the said S'' /2 of the NE' /4 of
the NE' /4; thence Westerly and at right angles to the East line of said NE' /4,
a distance of 130 feet; thence Southerly and parallel to the East line of said
NE %4, a distance of 50 feet; thence Easterly, a distance of 130 feet to the
East line of said NE %4; thence North along the East line of said NE' /4, a
distance of 50 feet to the Point of Beginning.
Parcel E:
The South Half of the NE 1/4 of the NE 1/4 of Section 27, Township 20
South, Range 65 West, less the East 130 feet thereof,
County of Pueblo,
State of Colorado
, hereinafter referred to as the "Property." CHDO represents and warrants that it has so purchased
and now owns the Property, and it agrees that it shall use the Property solely for the Project.
(b) The Project Except as otherwise provided in paragraph 4 of this Agreement, CHDO
shall, at CHDO's own cost and expense, do all things necessary and appropriate, in strict accordance
with the requirements of this Agreement, to develop the Property into not less than 78 separate
building sites, each of which shall not be less than 5,000 square feet and fully suitable as a site for
construction of a new site -built single family detached residence, together with appropriate roads,
utilities, easements, drainage and park facilities, and to construct or cause to be constructed upon
each building site, single family housing, not less than 51% of which (that is, not less than forty [40]
units) shall be affordable housing sold to low or moderate income persons. The acquisition of the
Property, development of the building sites, construction of dwellings, and sale of the dwellings at
affordable prices shall collectively be referred to as the 'Project."
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(c) Project Components The following terms used in this Agreement are defined to
describe certain components of the Project as follows:
"Acquisition" shall mean the purchase of fee simple title to the Property, including
all actions and things necessary or appropriate therefore.
"Subdivision and On -Site Improvements" means all things necessary and appropriate
to develop seventy -eight (78) single family building lots upon the Property including but not
limited to design and survey functions, preparation of preliminary and final subdivision
plans, preparation of covenants, compliance with all zoning, subdivision and land use laws
and regulations, dedication of rights of way, easements and park lands, grading, earthmoving
and construction of all water, sewer, electrical, gas and telecommunication utility lines upon
the Property and construction of all roads, curb and gutter, drainage and other public
infrastructure associated with the subdivision development upon the Property.
"Off -Site Improvements" means certain public improvements made or to be made
to a portions of 18th Street, between Oak Avenue and a location west of Wildhorse Creek
approved by City, as presently located within the City of Pueblo, Colorado, as generally
indicated in the plans and specifications prepared therefor by Northstar Engineering, a copy
of which has heretofore been filed or shall hereafter be filed by CHDO with and approved
by the Department of Public Works of City.
"Program Unit" means each new detached site -built single family residence,
complying with the requirements of paragraph 10 of this Agreement, constructed upon a
subdivision lot located upon the Property for sale to a low or moderate income person.
"Other Unit" means each new detached site -built single family residence constructed
upon a subdivision lot located upon the Property which does not qualify as a Program Unit.
(d) CHDO shall be responsible for timely undertaking and completing the Acquisition,
Off -Site Improvements, and Subdivision and On -Site Improvement components of the Project, and
thereafter shall be responsible for the construction of the Program Units and sale thereof at
affordable prices to qualified buyers.
(e) 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 any assisted activity
upon the Project other than acquisition of the Property, 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.
2. FINANCIAL ASSISTANCE
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(a) Subject to and contingent upon CHDO complying with all requirements of this
Agreement, CHDO providing to City adequate security, and subject to the availability of HOME
funds for the Project, City commits to invest HOME and other funds in the Project in an amount not
to exceed in the aggregate Seven Hundred Twenty -Three Thousand Dollars (U.S. $723,000.00)
allocated as follows:
(i) for Acquisition, an amount not to exceed $123,000.00,
(ii) for Subdivision and On -Site Improvements, an amount not to exceed
$240,000.00; and
(iii) for Off -Site Improvements constructed by CHDO, subject to the limitations
and provisions of paragraph 4 of this Agreement, an amount not to exceed $360,000.00.
(b) The full amount of the assistance referred to above will be furnished to the Project
as a loan to CHDO, hereinafter referred to as the "Loan," which Loan is subject to all terms and
conditions of this Agreement and contingent upon CHDO executing all documents required by City,
including but not limited to, the promissory note ( "Note ") and Deed of Trust required by paragraph
9 of this Agreement. The Note and said other instruments to be executed by CHDO are referred to
in this Agreement collectively as the "Loan Documents." Provided that CHDO is not in default of
any provisions of this Agreement, the Loan shall be disbursed in accordance with the provisions of
paragraphs 3 and 7 of this Agreement.
3. APPLICATION OF LOAN PROCEEDS
(a) City had heretofore advanced to CHDO the sum of $123,000 for site control and
acquisition of the Property for the Project in accordance with Resolution No. 8988 of the City
Council adopted April 24, 2000. Proceeds of the Loan made pursuant to this Agreement shall first
be applied in repayment of the note given by CHDO for said advance.
(b) The remaining loan proceeds will be disbursed to CHDO on a periodic basis for
allowed apportioned costs of the Off -Site Improvements which specifically benefit the Property and
Project and for allowed costs of the Subdivision and On -Site Improvement component of the
Project, in accordance with paragraph 7 of this Agreement.
4. OFF -SITE IMPROVEMENTS
(a) Subject to availability of federal HOME and CDBG funds and further subject to
approval of the plans and specifications therefor by the City, CHDO agrees to undertake and
complete the construction of the Off -Site Improvements on or within a portion of 18th Street,
between Oak Avenue and a location west of Wildhorse Creek, as presently located within the City
of Pueblo, Colorado, as generally indicated in the plans and specifications prepared therefor by
Northstar Engineering, a copy of which shall be filed by CHDO with the Department of Public
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Works and approved by the Director of the Department of Public Works. CHDO understands and
agrees that the City may from time to time, or at any time, and at its sole and absolute discretion,
require revisions or modifications to the plans or specifications for the Off -Site Improvements. The
City may also require phasing of the construction of any or all of the work to be performed as part
of the Off -Site Improvements, or may suspend or cancel such work at any time the City deems to
be in the City's interest.
(b) The estimated total cost of the Off -Site Improvements is $560,000.00. City will
reimburse CHDO for its actual, documented costs for the Off -Site Improvements, up to an amount
not exceeding $560,000.00 in accordance with the requirements of paragraph 7 of this Agreement.
CHDO shall be responsible for all costs of the Off -Site Improvements which exceed $560,000.00.
CHDO acknowledges that the nature of the Off -Site Improvements includes construction of a sewer
main and other improvements which developers and builders are normally obligated to construct
at such developers' and builders' expense. CHDO further acknowledges and agrees that the Off -Site
Improvements will specifically benefit and enhance the value of adjacent property including the
Property. The parties stipulate and agree that the proportionate benefit of the Off -Site
Improvements to the Property are in the amount of $360,000.00, which amount of benefit is hereby
fixed and shall not be modified, regardless of whether the actual cost of the Off -Site Improvements,
as a whole or any part thereof, is greater or less than the estimated cost.
CHDO WARRANTIES AND COMMITMENTS
(a) 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.
(b) Time is of the essence hereof. CHDO agrees that it shall meet the following
deadlines with respect to the Project:
(1) CHDO shall provide satisfactory evidence to City that it has the financial
ability to undertake and construct the Project, including proof that it has secured loan
commitments from all other lenders for all additional required financing for the Project, and
furnish such evidence to City, on or before August 15, 2000;
(ii) CHDO shall execute all loan documents for such additional required
financing and close such loans on or before August 28, 2000;
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(iii) CHDO shall commence construction of the Off -Site Improvements
component of the project not later than October 1, 2000 and shall commence construction
of the Subdivision and On -Site Improvements components of the Project not later than
December 1, 2000;
(iv) CHDO shall substantially complete construction of the first phase of the
Subdivision and On -Site Improvements component of the Project not later than December
1, 2001 and shall complete all phases of the Subdivision and On -Site Improvements
component by not later than December 1, 2003.
(v) CHDO shall commence, or cause to be commenced, construction of the first
Program Unit upon the Property not later than March 30, 2001;
(vi) CHDO shall have completed and sold, or cause to have been completed and
sold, not less than twenty (20) Program Units by not later than December 1, 2002; and
(vii) CHDO shall have completed and sold, or cause to have been completed and
sold, not less than forty (40) Program Units by not later than December 31, 2005.
(d) CHDO shall require that in all contracts for the construction of the Off -Site Improve-
ments component and the Subdivision and On -Site Improvements component of the Project (i)
prevailing wages shall 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 shall
be subject to applicable requirements of the Contract Work Hours and Safety Standards Act [40
U.S.C. 327 -332].
6. CITY REPRESENTATIVE 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
CHDO hereunder and the disbursement of funds in connection with the program. In the absence
of such a designation, the City's Director of Housing and Community Development shall be deemed
as City's authorized representative.
7. DISBURSEMENTS
(a) CHDO shall not request disbursement of any funds under this Agreement until the
funds are needed for payment of eligible costs. Disbursement of funds to CHDO for the Off -Site
Improvements component and the Subdivision and On -Site Improvements component of the Project,
or otherwise as may be authorized under this Agreement, is subject to all of the following
requirements, which shall be conditions precedent to payment: (i) that the CHDO has expended
funds after July 24, 2000 for eligible approved expenditures with respect to the Project, (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 disbursement detailing the eligible
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expenditures for the Project in a format approved by City, (iv) that CHDO has certified with each
payment or draw -down request compliance with the requirements identified in Exhibit "C" and that
all expenditures for which draw -down is sought were made for and in furtherance of the Project and
are an eligible use of federal assistance under the Act, (v) that City has timely received from HUD
sufficient federal assistance under the Act to pay the disbursement hereunder, and (vi) that City has
received written notice from HUD in accordance with paragraph 7(d) of this Agreement.
(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. Funds provided hereunder for
Project may only be used for development hard costs and acquisition costs, as provided in 24 CFR
§ §92.205(d) and 92.206(a) and (c).
(c) The aggregate of all payments made pursuant to this Agreement shall not exceed
Nine Hundred Twenty -Three Thousand Dollars (U.S. $923,000.00) which includes $200,000.00
toward the cost of the Off -Site Improvements which shall not be part of the indebtedness of CHDO.
All payments made to CHDO for the Subdivision and On -Site Improvements component of the
Project shall not exceed Two Hundred Forty Thousand Dollars (U.S. $240,000.00).
(d) In addition to all other conditions precedent to City's performance hereunder, this
Agreement is expressly made contingent upon receipt by City of written notification from HUD that
the review procedures required by Executive Order 12372 have been completed with respect to the
planning and construction of all water and sewer facilities contemplated as part of both the Off -Site
Improvements component and the Subdivision and On -Site Improvements component of the Project
and that funds may be released for such components. CHDO acknowledges that any work or
activity undertaken by CHDO prior to receipt of such notification from HUD is at CHDO's sole
risk. In the event receipt of such notification is not received within 60 days of the date of this
Agreement, either party may elect to cancel this Agreement upon written notice to the other party,
in which case this Agreement shall become void and of no effect whatsoever except that the advance
of funds for Acquisition, and all other funds provided by City to CHDO, shall immediately become
due and payable to City in full.
(e) Notwithstanding anything in this Agreement, and in addition to all other conditions
precedent, the City may, in its sole discretion, refuse to make the Loan or suspend or terminate
further disbursements of Loan proceeds, if it has cause to believe any of the following circumstances
has occurred or exists:
(1) There has been any adverse material change in CHDO's credit worthiness, the
Project or the value of the Property;
(ii) CHDO has allowed or suffered liens (other than the Deed of Trust given to
secure the Loan) to be filed against any of the Property;
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(iii) CHDO has misapplied loan proceeds for other than the purposes stated in this
Agreement;
(iv) CHDO has defaulted in the performance of any term, condition or covenants
set forth in this Agreement or any of the Loan Documents.
(f) 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.
8. TERM OF AGREEMENT 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 31, 2005; 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 shall have continuing responsibility to comply with all applicable 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 applicable required full period of affordability,
notwithstanding termination or expiration of this Agreement. As used herein, "period of
affordability" shall mean 5 years from the first sale of each Program Unit 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 on such Program Unit or 5 years, whichever is longer.
9. LOAN DOCUMENTS: SECURITY
(a) The full amount of loan assistance provided to the Project pursuant to this Agreement
shall constitute an indebtedness of CHDO to City 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 Property, as evidenced by a Deed of
Trust to be executed contemporaneously with said Promissory Note. The loan instruments shall
require CHDO to pay to City or holder the indebtedness as and to the extent same becomes due
under the provisions of the Promissory Note and this Agreement. The Promissory Note or Deed of
Trust shall include terms 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.
(b) During the full Term of this Agreement and for any applicable required period of
affordability, (i) any failure by CHDO to perform any obligation, covenant or provision of the Note
or this Agreement required to be performed by CHDO, or (ii) any breach of any warranty made by
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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 default under this Agreement and the Note.
Upon any default by CHDO, the entire indebtedness, together with accrued interest, shall at the
election of the holder, at once become immediately due and payable without notice. Failure of the
holder to exercise this election shall not constitute a waiver of the right to exercise the same in the
event of any subsequent failure to make any payment or other default. If the entire indebtedness is
declared immediately due and payable by the holder pursuant to the provisions of the above
paragraphs, from and after the date of such declaration or acceleration the indebtedness shall accrue
interest at the rate of twelve percent (12 %) per annum until the date when the entire indebtedness
and such accrued interest is paid in full. 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, the Note and said Deed of Trust.
10. CREDITS FOR SALE OF AFFORDABLE HOUSING
(a) The purpose of this Agreement is to develop affordable housing with the application
of federal financial assistance intended to reduce the cost of single family dwellings so as to render
same affordable. Consequently, the indebtedness of CHDO under the Note shall be reduced by an
amount equal to $18,075.00 for each qualifying sale of a Program Unit, as hereinafter defined, to
a qualifying low or moderate income buyer, provided that CHDO strictly complies with all of the
requirements set forth in this Agreement. A qualifying sale means the sale of a Program Unit to a
qualified low or moderate income person at a price not to exceed the maximum price set forth in
subparagraph (g) of this Paragraph 10. Provided that the CHDO is in full compliance with the terms
of this Agreement and is not in default of any provision of this Agreement, the Note or the Deed of
Trust, the reduction shall be credited against the indebtedness at the time of closing of the sale of
the Program Unit to the qualified low or moderate income buyer accompanied by transfer of
ownership of the Program Unit to the buyer by warranty deed.
(b) With respect to each Program Unit for which CHDO intends to apply for reduction
of the indebtedness, CHDO shall file proposed construction plans and specifications with the
Director of City's Department of Housing and Community Development ( "Director ") for a single
family dwelling of approximately 1,064 square feet of finished and habitable space, with no
Program Unit to be smaller than 900 sf of finished and habitable space, nor larger than 1600 sf of
finished and habitable space, to be constructed upon subdivision lots located on the Property. If,
in the sole opinion of Director, such plans and specifications comply with Program requirements
and constitute plans and specifications for decent, safe, sanitary and affordable housing that
complies with applicable building codes for a low or moderate income family, Director may approve
such plans and specifications. In the event the plans and specifications are not approved by Director
for any reason, Director shall inform CHDO in writing of the nature of modifications required for
approval, and CHDO shall revise said plans and specifications accordingly and resubmit same to
Director. In order to qualify for reduction in the indebtedness, CHDO shall not commence any
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construction of a Program Unit upon the Property until the proposed plans and specifications
therefor have been approved by Director. In the event plans and specifications are not approved
with respect to any Program Unit within 30 months of the date of this instrument, this Agreement
shall expire and CHDO shall not thereafter be eligible for any further reduction in the indebtedness
pursuant to this paragraph 10, and the full remaining balance of the indebtedness shall become
immediately due and payable.
(c) CHDO shall, at its own expense, furnish and provide all necessary labor, materials,
permits, utility service, plant investment fee payments, tools and equipment, and supervision to
construct each Program Unit located on the Property in accordance with the approved plans and
specifications therefor, and in compliance with all applicable laws, codes and regulations. CHDO
shall commence said construction within 60 days after approval of the plans and specifications by
the Director, shall diligently prosecute same in an expeditious manner through qualified workmen
and contractors, and shall fully complete all said construction and provide same ready for occupancy
in broom clean condition within 210 days of the date of said approval by Director. The aforesaid
time allowed for final completion shall not be extended for any reason, including but not limited to
inclement weather, strikes, material shortages, Acts of God or inability of CHDO to procure
sufficient working capital, workmen or materials. Any failure by CHDO to timely commence,
prosecute or complete said construction shall be deemed a default hereunder.
(d) Upon final completion of all of the improvements for each Program Unit, CHDO
shall resell each such Program Unit to a qualified low or moderate income person or persons in
accordance with the requirements of this paragraph.
(e) In the event a qualified low or moderate income buyer has been pre- approved by City
for purchase of an identified Program Unit from CHDO prior to date of this Agreement, the name(s)
of such pre - approved buyer shall be stated below and CHDO shall sell and convey the identified
Program Unit to said pre - approved buyer for a price not to exceed the maximum sale price
established in subparagraph (g) of this paragraph 10. In the event a buyer for the identified Program
Unit has not been pre - approved, or in the event the pre- approved buyer is unable or unwilling to
close the purchase or otherwise fails to close the purchase within 45 days of final completion of the
improvements, then in either event, CHDO agrees to sell and convey the identified Program Unit
to other low or moderate income persons deemed qualified by City to participate in the Program for
a price not to exceed the maximum sale price established in subparagraph (g) of this paragraph 10;
provided, however, that if City fails to produce the names of any other person or persons deemed
qualified to participate in the Program within 14 days of receipt of a written request therefor from
CHDO, then in such event, CHDO may resell the identified Program Unit to any willing purchaser
for any price which may be agreed upon between said purchaser and the CHDO, but such sale shall
not be deemed a qualifying sale and upon such sale, CHDO will not be eligible for any reduction
of the indebtedness.
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(Complete this portion if, and to the extent, applicable)
Program Unit Address Name(s) of Pre - Approved BUer
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
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(Complete this portion if, and to the extent, applicable)
Pro am Unit Address Name(s) of Pre - Approved Buyer
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
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(Complete this portion if, and to the extent, applicable)
Program Unit Address Name(s) of Pre - Approved Buyer
69.
70.
71.
72.
73.
74.
75.
76.
77.
78.
79.
(f) Conveyance of a Program Unit by CHDO to the buyer shall be by general or special
warranty deed conveying fee simple title to the Program Unit, including the subdivision lots and
improvements thereon, free and clear of all liens and encumbrances including mechanic's liens not
of record. To the extent the approved plans, specifications or local building or housing codes
require any appliances or other items of personal property to be installed in or upon the Program
Unit prior to occupancy, CHDO shall also execute such other ancillary instruments as may be
necessary to convey such property to the buyer.
(g) The maximum sale price which may be charged by CHDO upon sale of a Program
Unit to a pre - qualified buyer or other qualified buyer, including all appliances and personal property
required by the plans and specifications and local building and housing codes, for sales occurring
during calendar years 2000 and 2001, shall not exceed $63,990.00 for a 900 square foot Program
Unit, nor exceed $113,760.00 for a 1,600 square foot Program Unit, payable in cash or certified
funds at closing. For Program Units with a greater or lesser number of square feet of finished and
habitable space, the maximum sales price shall be adjusted based upon a factor of $71.10 per square
foot of habitable finished space. The maximum sales price for sales during calendar years 2002 and
thereafter may, if approved in writing by the Director, be adjusted by the percentage change in the
Consumer Price Index ( "CPI") for the preceding year. The CPI shall be the Consumer Price Index
for all urban consumers, all items, published by the Bureau of Labor Statistics of the United States
Department of Labor. CHDO shall be responsible at closing for payment of all customary and usual
fees and charges payable by a seller. In the event CHDO shall be required to pay any seller's points
in connection with any VA or FHA purchase money mortgage loan made to the buyer, the amount
of the maximum sale price may be increased by the dollar amount of such points actually paid by
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'It •
(h) Not less than forty (40) residence units of the total number of new detached site -built
single - family residences shall be built and sold as Program Units to qualified buyers for an amount
not exceeding the maximum sales price specification in this paragraph 10. Noncompliance by
CHDO with the requirements of this subparagraph (h) shall constitute a default under this
agreement.
(i) In order to further secure the continued affordability requirements with respect to the
Program Units, the City may require at the time of transfer of each affordable Program Unit from
CHDO to buyer that deed restrictions or other instruments be recorded which will limit the ability
of the buyer to resell the Program Unit for a period not to exceed five years.
0) In no event shall the reduction of the indebtedness of CHDO under the Note exceed
the amount of the indebtedness, nor require any additional payment by City to the CHDO.
(k) In the event CHDO fails to comply with the requirements of this paragraph 10, or
fails to sell at least forty (40) residences as Program Units to qualified buyers for an amount not
exceeding the maximum sales price specifications, CHDO shall repay to City in cash or certified
funds an amount determined by multiplying $18,075.00 times that number by which the total
number of Program Units sold to qualified buyers for an amount not exceeding the maximum sales
price is less than forty (40).
11. 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, including those identified in paragraphs
5, 8, 9, 14, 16, 17, 18, 19, 20, and 21 of this Agreement, 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
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grant funds, program income, and mortgage loans (if any) 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 may be entitled to receive just and equitable
compensation only for satisfactory work completed and eligible costs for which compensation has
not previously been paid nor reimbursement made.
12. 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.
13. CONFLICT OF INTEREST 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.
14. CHDO RECORDKEEPING CHDO shall 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. 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 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, or
at any time during the period of affordability or within 5 years thereafter, the City may require all
of CHDO's financial records relating to this Agreement to be turned over to the City.
15. 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.
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16. 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 of the month following the end of month
or quarter for which the report is submitted.
17. 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, contractors, consultants 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.
18. 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, construction of the Project, Subdivision and On-
Site Improvements, Program Units, or Other Units or by the conditions created thereby or resulting
therefrom. CHDO further agrees to indemnify and save harmless the City, its officers, agents,
attorneys 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, construction of the
Project, Subdivision and On -Site Improvements, Program Units, or Other Units, or arising from the
sale of the Program Units, Other Units or warranties relating thereto 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.
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(ii) Comprehensive General Liability ( "CGL ") Insurance written on ISO Form
CG 00 010 196, or a substitute form providing equivalent coverage, with a limit not less than
One Million Dollars ($1,000,000.00) per occurrence, covering liability arising from
premises, operations, independent contractors, personal injury, products completed
operations, and liability assumed under an insured contract, on an occurrence basis. The
policy shall identify the City as an additional insured.
(d) CHDO further agrees that with respect to each Program Unit or Other Unit it shall
procure and maintain, or require its contractor to procure and maintain at CHDO's or CHDO's
contractor's expense, hazard and fire insurance upon the Program Unit 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 Program Unit or Other Unit plus an
allocated portion of the amount of funds provided to CHDO by City pursuant to this Agreement.
(e) CHDO shall furnish a certificate of insurance certifying the required insurance
coverages to City's Director of Finance prior to disbursement of any funds to CHDO under this
Agreement. Both said certificate of insurance and the policies shall name the City as an additional
loss payee.
19. 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.
20. 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, as defined in 24 CFR 92.2, 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 this Agreement, including the Scope of Services, and the amount of 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, 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, the Program Units and any other real property acquired,
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constructed or improved in whole or in part with funds provided pursuant to this Agreement shall
be used to create affordable housing. In the event the Project, the Property, any Program Unit or
such other property is not or 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 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. In the case
of a sale of a Program Unit other than a qualifying sale, or a sale otherwise not in accordance with
paragraph 10 of this Agreement, CHDO shall immediately pay to City the sum of $18,075.00.
(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 20, 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) The parties acknowledge that the Acquisition component of the Project has included
a small portion of the Property which may be dedicated and used for commercial development and
not for residential purposes or for the construction of Program Units or Other Units. The parties
understand that such use is ineligible for the assistance provided under this Agreement.
Consequently, in such event, CHDO shall promptly repay to City, in addition to all other repayment
obligations set forth in this Agreement, a fair and equitable amount, to be determined by City's
Director of Housing and Community Development, equal to the fractional amount of assistance
provided under this Agreement for the Acquisition component of the Project fairly allocable to any
such commercial development.
21. 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 21.
(b) No improvements shall be undertaken to the Property or other real property with
-19-
financial assistance 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 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 the Standard Construction Specifications and Standard Details
(June 9, 1997), the Storm Drainage Design Criteria and Drainage Policies (June 9, 1997), and the
Sanitary Sewer Design Criteria Policies of the City of Pueblo, applicable 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.
22. 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 loan 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. However,
such recognition and signage shall also prominently set forth the following statement: "By providing
loan funds for this Subdivision, the City of Pueblo, and the U.S. Department of Housing and Urban
Development neither recommend nor endorse the sale of properties in the Subdivision nor make any
representations or warranties in respect thereto."
23. ENTIRE AGREEMENT; AMENDMENTS The provisions set forth in this
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24. 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.
CITY PUEBLO,
ATTEST: (� AM ni 7 pal Corpor n
C - �`� By:
City C P esident of City Council
[SEAL j
ATTEST:
NEIGHBORHOOD HOUSING
SERVICES OF PUEBLO, INC.,
a Colorado Non -Profit Corporation
By: ��Q -.—�
Title: Z � / Name: (�
Title: �� d"-L
Rev.7 /26/00 TJF
F:\CITY\HOUSFNG\HOME\LATIERRA\AGMT6.WPD
-21-
Exhibit A
Narrative Description
Members of the Hyde Park community approached the City and NHS to discuss the feasibility of
developing a parcel of land that lies between ISth Street and Hole Rosary Church between
Lambert and Oak Street, approximately 19 ! : acres (Census Tract 2901). A major concern
voiced by residents was that a trailer park might be developed in their neighborhood, log %ering
their property values and creating a sense of isolation.
NHS's proposed Subdivision would be developed as a partnership between:
• Hyde Park Residents
• Neighborhood Housing Services of Pueblo, Inc.
• Neighborhood Reinvestment & Neighborhood Housing Services of America
• Local Lenders
• The City of Pueblo
• Pueblo County
• Local Builders
The highly visible location of this parcel adjacent to Holy Rosary Church, Hyde Park School,
and the core neighborhood lends itself to act as a catalyst to revitalizing the Hyde Park
neighborhood and promoting affordable housing.
A strategic approach would be used to develop a mixed income neighborhood via the following
parameters:
• 5 I'; of the homeowners must be SO °io and below the HUD area median income.
• Homes would be priced between 575,000 and S 115,000.
• Homes would be site built, 900sf to 1200sf
• `'arying home design will allow for expansion & addition of garages to base
model
• Landscaping and fencing are provided
.0 Lot sizes would be 50',55',& 60'.
• Resident involvement in developing the project.
• The neighborhood park,/detention at IS` Street & Lambert will be developed as a
neighborhood amenity.
• NHS can provide the following assistance
• Pre - purchase & Post purchase Home Buying Counseling
• Individual & group credit /budget counseling.
• Down Payment & Closing Cost Assistance
• Sub prime mortgage loan products.
Several developers have tried unsuccessfully to develop this parcel of land. %%Iiat makes this
project feasible is when S5,228. in private financing is leveraged with S74S,000 in HOME
funds not only is the project feasible but the homes then become very affordable. As property
owner, NHS will oversee the development from initia sur�e,ying to [trial construction.
EXU L3_I'r B
L�CSQ_t1�iT Nr ,'l' TE 1��iPLIA�CE PRnVISI0�5
As used in this Exhibit, the term "Developer" shall mean the entity entering into the Agreement
With the City of I'ueblo, a Municipal Corporation to which this Exhibit is attached.
2. Developer is subject to and shall comply with the requirements of OIN1B Circular A -133.
Developer agrees 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 ri to review and approve Developer'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 Developer shall not
materially deviate 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.
5. Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties nor to any
contractors, subcontractors, consultants, suppliers or workmen who have contracted with
Developer or provided any materials or services to Developer.
6. The City has the right to periodically perform interim audits and a final audit of the Project and
funds provided under the Agreement. Developer shall fully 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.
EXHI BIT C
CER I CATI(
D.-veloper hereby certifies that the project will be conducted and administered in compliance with
all of the fo1(owing requirements:
(1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88 -352; 42 U.S.C. 2000d, et seq 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 s.), as
amended; and that the gr:uitee will administer all programs and activities related to housing and community
development in a manner to affirmatively further fair housing;
(3) Section 109 of the Housing and Community Development Act of 1974, as amended; and the
regulations issued pursuant thereto;
(4) Section 3 of the Housing and Urban Development Act of 1968, as aniended;
(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)l
(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 finds under this federally- assisted program;
(1 3) The Clean Air Act (42 U.S.C. 7401 et. seq.) as ainended, 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 Saro Drinking WaterAct of 1973 (42 U.S.C. 201, 300 (f) et, seq. and 21 U.S.C. 349)
as an,endcd; particularly section 1424 (c) (42 U.S.C. 300 (h)- 303(e)),
(16) - lic End�utgercd Specics Act of 1973 (16 U.S.C. 1531 et. seq) as wncndcd, including but
not limited to section 7 (16 U.S.C. 1536) thereof;
(17) The Wild and Scenic Rivcrs 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 Salvagc Act of 1960 916 U.S.C. 469 et. seq.); particularly section 3 (16
U.S.C. 469a -1); as amended by tlic 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(x)];
(20) Executive order 11990, Protection of Nj'etlands, lvlay 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. 4700; and
(23) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13,
1971 (36 FR 8921 et. seq.); particularly section 2(c).
(24) Construction work financed in whole or in part with federal funds is subject to the prevailing
wage requirements of the Davis Bacon Act (29 CFR, Parts 3 and 5), the Copeland Act (29 CFR Part 3), and
the Contract Work Hours and Safety- Standards Act (Public Law 91 -54, 83 Stat. 96). When a project meets
this applicability requirement, the labor standards provisions of the HUD 4010 and the Davis Bacon Wage
Decision issued for the project will be incorporated into this contract document and shall be incorporated into
all construction contracts and subcontracts of any tier thereunder.
(25) No CDBG finds 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 /OS1-LA.
(27) '"'hen MiNIE Investment Partnership Act finds are used, the Subrecipient will comply «•ith
implementing regulations and requirements tinder 24 CFR 92.
Signature