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HomeMy WebLinkAbout11621RESOLUTION NO. 11621 A RESOLUTION APPROVING AN AMENDMENT TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF PUEBLO, A PUBLIC HOUSING AUTHORITY AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR AFFORDABLE HOUSING DEVELOPMENT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO. that: SECTION 1. The Amendment No. 1 dated May 25 2009, to the Affordable Housing Development Agreement dated June 23, 2008 between Housing Authority of the City of Pueblo, a Public Housing Authority, and the City of Pueblo, a Municipal Corporation, (the "Agreement'), for the construction of affordable senior 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 execute the Amendment in the name of the City, and the City Clerk is directed to affix the seal of the City thereto and attest the same. SECTION 3 The funding previously appropriated for this project is reduced by $10,000 and is made available for other HOME Investment Partnership Act housing activities. INTRODUCED: May 26, 2009 BY: Judy Weaver COUNCILPERSON APPR D' } �. PRESIDENTaf Cfty Council A7°7ESTED DY: CITY CLERK L) 4 Background Paper for Proposed RESOLUTION AGENDA ITEM # 6 DATE: May 26, 2009 DEPARTMENT: HOUSING AND CITIZEN SERVICES 1 ADA RIVERA CLARK TITLE A RESOLUTION APPROVING AN AMENDMENT TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT BETWEEN THE HOUSING AUTHORITY OF THE CITY OF PUEBLO, A PUBLIC HOUSING AUTHORITY AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR AFFORDABLE HOUSING DEVELOPMENT AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE On June 23, 2008, the City Council approved an Affordable Housing Development Agreement (the "Agreement ") between the parties. The developer for compliance purposes has requested changes. RECOMMENDATION Approval of the Resolution BACKGROUND The Housing Authority of the City of Pueblo received HOME funding for the development of Ashwood Apartments, a twenty -five (25) unit senior complex. This project is a Low - Income Housing Tax Credit Project. The requested amendments are as follows: 1- Reduce the number of City HOME subsidized units from 10 to 5. The State's Division of Housing has made a $300,000 HOME grant to said Project. Because of the State's HOME funding the Project is out of compliance with the maximum subsidy per unit amount. In an effort to bring the Project under compliance we wish to reduce the number of HOME subsidized units. Reducing the number of units does not jeopardize the affordability of the Project as the Tax Credit laws supercede the HOME requirements and the Colorado Housing and Finance Authority requires affordability on all 25 units. 2- Reduce the HOME loan amount from $250,000 to $240,000. Again, this is tied to the maximum allowable subsidy per unit. By reducing the units we also reduce the allowable subsidy. 3- Remove the restrictive language from the developer fee. The current language restricts the developer fee to City approved projects. There is no requirement for developer fees to be restricted. 4- Change the date by which the Housing Authority was to secure their construction financing. Project delays pushed back the date of closing for construction financing. FINANCIAL IMPACT The approval of this resolution de- obligates $10,000 in HOME funding, which can be made available to or for other projects. AMENDMENT NO. 1 TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 1 to Affordable Housing Development Agreement is made and entered into this 26th day of May, 2009 by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and the Housing Authority of the city of Pueblo, a public housing authority (hereinafter referred to as "HAP "). WHEREAS, Subrecipient and City have heretofore entered into an Affordable Housing Development Agreement dated June 23, 2008 (hereinafter "the Agreement') wherein HAP agreed to construct affordable housing in accordance with the terms of the Agreement, the City's housing strategy and the requirements of law, including but not limited to the Home Investment Partnerships Act, 42 U.S.C. §12701 et sue., and implementing regulations, including but not limited to those at 24 CFR Part 92; and the Housing and Community Development Act, 42 U.S.C. §5301 et. seq ., and implementing regulations; and WHEREAS, HAP has requested amendments to the Agreement and WHEREAS, it is necessary and desirable thatthe Agreementbe amended, subjectto all terms and conditions of the Agreement NOW, THEREFORE, in consideration of the foregoing and the mutual terms and conditions set forth herein, the parties agree as follows: 1. The Agreement is amended by revising subparagraph 1(a) thereof to revise the number of housing units assisted thereunder from ten (10) to five (5). 2. The Agreement is amended by revising subparagraph 1(c )(i) thereof to revise the deadline for the Owner of the Project is to furnish evidence of loan commitments to the City from March 1, 2008 to January 2, 2009. 3. The Agreement is amended by revising subparagraph (3)(c ) thereof to state that the amount of aggregate payments shall not exceed Two - Hundred Forty Thousand and No. /100 Dollars (U.S. $240,000 4. The Agreement is amended by deleting subparagraph 14(a)(II) . The remainder of subparagraph 14(a) shall remain unchanged. 1 Except as expressly modified by this Amendment No. 1, the Agreement shall remain in full force and effect and enforceable in accordance with its terms. Except as expressly modified, any obligations remaining to be performed under the original Agreement by either party, are not waived or excused in any manner, but shall be fully performed in accordance with the terms and conditions of the Agreement as it existed prior to this Amendment No. 1. IN WITNESS WHEREOF, Subrecipient and City have executed this Amendment No. 1 to Affordable Housing Development Agreement as of the date first above written. Housing Authority of the City of Pueblo _.. ATTEST: City C k- By. Name: Chai of the Board By: Name: ,egt,c �._ Executive Director CITY OF PUEBLO, A Municipal Corporation By Name: ec Title: President of City Council [SEAL]