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Home My WebLink About04246 RESOLUTION NO. 4246 RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF PUEBLO AND THE NEIGHBORHOOD HOUSING SERVICES OF PUEBLO, INC AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO, that SECTION 1 The Agreement between the City of Pueblo, a municipal corporation, and Neighborhood Housing Services of Pueblo, Inc dated August 14, 1978 a copy of which is attached hereto having heretofore been approved as to form by the City Attorney is hereby approved SECTION 2 The President of the City Council is authorized and directed to execute said Agreement for and on behalf of the City of Pueblo and the City Clerk is directed to affix the seal of the City of Pueblo thereto and to attest same INTRODUCED August 14 , 1978 By Isaac C. D1,iran Councilman APPROVED fite&t.t, # ad-c--.J/COIA President of the Council ATTEST - 2 'Q2 �it�f Clerk AGREEMENT This Agreement entered into this 14th day of August, 1978 by and between the City of Pueblo, Colorado, a Municipal Corporation, herein called "City" and Neighborhood Housing Services of Pueblo, Inc , herein called NHS, W I T N E S S E T H WHEREAS, NHS has established a Revolving Loan Fund for mortgage loans to be made to homeowners in certain target neighborhoods within the City of Pueblo (herein called NHS areas) for the purpose of neighborhood conservation and housing rehabilitation; and WHEREAS, City is desirous of making available a grant of $100,000 out of City's Community Development Funds to NHS in partial support and maintenance of the Revolving Loan Fund; and WHEREAS, NHS is desirous of accepting said grant of funds from the City subject to the terms and provisions of this Agreement; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants herein contained, City and NHS agree as follows 1. NHS warrants and represents to the City that during the effective period of this Agreement, NHS will have and maintain a) Status as a Colorado non - profit corporation capable of qualifying as a tax exempt organization under the Internal Revenue Code; b) An active and committed Board of Directors, composed of a numerical majority of community residents (including representatives of organized resident support in the NHS areas) and a substantial number of representatives of financial institutions within the City; c) A professional full -time staff working in offices convenient to the residents of NHS areas; and d) Written policies and procedures relating to borrowers qualifications and criteria for mortgage loans including interest rates, security and loan terms, herein called "loan policies" 2. NHS shall establish and maintain a Revolving Loan Fund for the purpose of making mortgage loans to qualifying homeowners in the NHS areas All mortgage loans shall be made in conformity with NHS's loan policies NHS shall not make any mortgage loans for the construction of new housing out of grant funds 3. All payments relating to mortgage loans received from mortgages and amounts received from foreclosures or insurance settlements with respect thereto shall be paid to NHS and be retained by it as its property but shall be deposited into NHS's Revolving Loan Fund and be used only for the purpose of making additional mortgage loans in the NHS areas 4. City has allocated $100,000 to NHS out of its Community Development Funds (herein called "grant" or "grant funds ") for the purpose of making residential mortgage loans to qualified applicants residing in NHS areas, and will make such grant funds available to NHS for such purpose upon receipt from NHS of a properly completed and executed payment request voucher in a form to be developed by City 5 City shall at least annually review the program of NHS and may perform an annual audit of the financial and loan activities of NHS. NHS shall cooperate with City in the performance of such review and audit and shall permit representatives of the City access to and the right to review NHS books, accounts and records NHS's books, accounts and records shall be kept and maintained in a form and manner acceptable to City's Director of Finance NHS shall, upon written request of City, furnish to City quarterly program and financial reports of its activities in a form and manner requested by City This Agreement and the City's right of access to NHS's books, accounts and records shall continue so long as any of the grant funds, mortgage loans originated by grant funds or by payments therefrom, or payments received under such mortgage loans, are held, owned or retained by NHS either on deposit or in the form of mortgage loans outstanding 6 NHS shall not assign this Agreement nor sell, assign or transfer any of its assets, including mortgage loans, except in the regular course of its business, without the prior written consent of City -2- 7 In the event this Agreement is terminated under paragraph 8 hereof, all grant funds, mortgage loans originated by the grant funds or by payments therefrom, and payments received under such mortgage loans, held, owned or retained by NHS either on deposit or in the form of mortgage loans outstanding shall immediately become the sole and separate property of the City and NHS shall perform all acts and execute all instruments necessary to transfer and assign such deposits and mortgage loans to City and for such purpose NHS does hereby designate the then acting Director of Finance of City as its true and lawful attorney to perform such acts and execute such instruments for and on behalf of NHS. 8. If NHS shall default or fail in the performance of any of the covenants and agreements herein contained to be kept and performed by NHS, City may upon 30 days prior written notice to NHS, specifying the failure or default, terminate this Agreement; provided, however, that if NHS shall correct such default within 30 days after receipt of such notice this Agreement shall not then terminate. No delay or omission to exercise any right or power accruing upon default shall impair any such right or power or shall be construed to be a waiver thereof but any such right or power may be exercised from time to time and as often as may be deemed expedient 9 Nothing herein contained nor the relationship of NHS to the City, which relationship is specifically declared to be that of an independent Contractor, shall make or be construed to make NHS or any of NHS's officers, agents or employees the officers, agents or employees of the City NHS shall be solely and entirely responsible for its acts and the acts of its officers, agents and employees. 10 As to the City, NHS agrees to assume the risk of all personal injuries, including death resulting therefrom, to persons, and damage to and destruction of property, including loss of use therefrom, caused by or sustained, in whole or in part, in connection with or arising out of the performance of this Agreement by NHS or by the conditions created thereby NHS further agrees to indemnify and save harmless the City, its officers, agents and -3- ti employees, from and against any and all claims, liabilities, costs, expenses, penalties or attorney fees arising from such injuries to persons or damages to property or based upon or arising out of the performance of this Agreement by NHS or out of any violation by NHS of any statute, ordinance, rule or regu- lation. 11 No addition, alteration, amendment or modification of the terms of this Agreement, nor verbal understandings of the parties, officers thereof, agents or employees, shall be valid unless reduced to writing and executed by NHS and City 12 Notice shall be deemed to have been duly given if mailed first class mail, postage prepaid to City - 1 City Hall Place Pueblo, Colorado 81003 NHS - 1804 East Evans Pueblo, Colorado 81004 or such other address as NHS or City shall hereafter designate in writing delivered to the other party 13 NHS shall not in the performance of its business or in the making or refusal to make mortgage loans discriminate on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant for such loan has the capacity to enter into a binding contract) NHS shall comply with and abide by all applicable state and federal laws, rules and regulations including those relating to Community Development Funds and programs 14 If City desires to issue or make public a report concerning NHS's loan program and City's participation therein, NHS shall cooperate in making information available for such report as the City may request 15 This Agreement shall be binding upon and inure to the benefit of the City and NHS and their successors and assigns and may be amended at any time upon mutual agreement of NHS and City -4- IN WITNESS WHEREOF, the City and the NHS have executed this Agreement as of the day and year first above written CITY OF PUEBLO, a Municipal Corporation By ,aezeilja"- 23 ATTES T President of the Council City alr NEIGHBORHOOD HOUSING SERVICES By ATTEST Prden " /1 - Secretary APPROVED AS TO FORM City Apt rrfey' -5-