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HomeMy WebLinkAbout03782 RESOLUTION NO. 3782 A RESOLUTION APPROVING AN AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION AND URBAN REINVESTMENT TASK FORCE PROVIDING FOR THE DEVELOPMENT OF A NEIGHBORHOOD HOUSING SER- VICE PROGRAM 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 dated May 24, 1976 between Pueblo, a Municipal Corporation, and Urban Reinvestment Task Force providing for the development of a neighborhood housing service program, a copy of which is attached hereto and incorporated herein, having been approved by the City Attorney is hereby approved. SECTION 2 The President of the City Council is hereby authorized and directed to execute said Agreement for and on behalf of the City and the City Clerk is directed to attest same and affix the seal of the City thereto INTRODUCED May 24 , 1976 By PAT KELLY Councilman APPROVED A., X lc-1.6 Presider of the Cocil ATTEST sCe^ C 14th S7itf Crk A G R E E M E N T This agreement entered into this 24th day of May, 1976 by and between the City of Pueblo, a Municipal Corporation, herein called City and the Urban Reinvestment Task brce, herein called Task Force, WITNESSETH WHEREAS, the development of a Neighborhood Housing Services program (NHS) in the City would be beneficial to City and its citizens, and WHEREAS, Task Force is willing to undertake the development of a NHS in City, NOW THEREFORE in consideration of the foregoing and the mutual covenants and conditions hereinafter set forth, the parties hereto agree as follows I The Urban Reinvestment Task Force ( "Task Force ") will undertake to develop a Neighborhood housing Services program in the City of Pueblo, Colorado subject to the considerations and conditions herein outlined A A Neighborhood Housing Services (NHS) includes the development of a working relationship between residents of a specific neighborhood and a group of financial institutions in cooperation with city government. It involves the creation of a Revolving Loan Fund which would be controlled by the NHS The NHS would assist residents of the neighborhood to improve their homes and bring them at least to minimum code standards, by providing counseling, assistance in dealing with contractors, referrals to private financial institutions, and in cases where the homeowners are unable to meet commercial credit standards, by providing direct loans at flexible rates and terms B. In cooperation with the District Federal Home Loan Bank, the District Federal Reserve Bank, The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and, State bank and savings and loan supervisors, as appropriate, the Task Force will help convene financial insti- tutions, and obtain their interest in the program One or more meetings of industry leaders called by the regulatory agency heads should take place before tl actual Workshop program begins The Workshop program is part of the process utilized by the Task Force in the development of an NHS. C. City representatives shall work closely with the developmental program and participate in decisions on reinvesting in the selected neighborhood 1 The Task Force staff will maintain liaison with the city during the developmental program Ap- propriate city staff members shall be invited to partici- pate in the workshop activities which are part of the developmental process 2 Whore city services are in need of improve- ment to upgrade the neighborhood environment, the City will endeavor to improve them Where public im- provements and amenities are in disrepair or lacking, the City will endeavor to improve or provide them. 3 During the developmental program expres- sions of neighborhood desires in regard to services and public improvements and amenities will be ob- tained In discussion with city officials, an agree- ment will be reached on attainable goals and time- tables of improvements D Adverse factors could arise which would make the development of a Neighborhood Housing Services program impossible. These include the inability to retain the cooperation of a suf- ficiently large number of financial institutions to support the program, determination that there were not sufficient public or -2- philanthropic resources to develop adequate revolving loan funds, or the development of neighborhood antagonism to the program or political opposition to it In the event such conditions arose and could not be overcome, the Task Force would inform the City of Pueblo and return any unused portion of budgetary support which has been provided for the developmental program II Developmental Process Bringing a viable NHS into operation envisages an effort lasting eight to ten months, during which a careful process will take place which has been developed over the past four years of successful implementation of Neighborhood Housing Services pro- grams in over twenty cities Neighborhood Housing Services represents a sophisticated blend of private - public- community involvement, and must be constructed with the greatest care The first months are spent in developing working relationships with local government, community and fi- nancial industry representatives, and _,electing a local staff person with the skills and knowledge about the local scene needed to work out cooperative relationships, under the super- vision of the Task Force's Regional Coordinator The Task Force Staff Director and Deputy Director also participate at key points in the development process When the necessary relationships have been developed, a twelve week workshop process is commenced wherein the concept is intro- duced to a group of approximately 45 persons (about one -third each from financial institutions, the community at large, and local government and regulatory bodies) These individuals adapt the NHS model to local institutions and situations and form a com- mittee structure which works out the details of incorporation, funding, neighborhood priorities, etc -3- The workshops involve a three -day session, followed by six weeks' committee work, then a one and one -half day session, another six weeks of committee work, and concludes with a one -day session which includes the incorporation meeting of the new NHS During this workshop structure, residents of the neighborhood(s) chosen for the program are brought into the process, fully informed and involved in creating the non- profit organization which results City shall have the right to appoint at least one -third of the Board of Directors of said non - profit corporation After incorporation, the new institution is aided in obtaining its non - profit tax status, in obtaining foundation support and in selecting and training permanent staff The local Task Force staff member then works for a short period with the newly hired NHS staff in setting up work procedures When the program has become fully operational, an informational seminar is arranged for lending officers and appraisers of all participating financial institu- tions, fee appraisers, representatives of private mortgage in- surance companies, and regulatory agencies' examiners Direct Task Force support phases out at this point, except for liaison and informational assistance and the NHS becomes an independent private entity III In order to develop the NHS, financial support of $50,000 will be required for the developmental program. After becoming operational, NHS operating expenses will approximate $60,000 per year, per neighborhojd, on an ongoing basis, and a High Risk Revolving Loan Fund must be built up to a total of $300,000 or more over a two or three year period, per neigh- borhood The City of Pueblo has obligated $70,000 in Community Development Block Grant Funds to develop and support a Neighbor- hood Housing Services in one or more neighborhoods, by providing -4- the aforementioned developmental funding, funds for the High Risk Revolving Loan Fund, and a portion of NHS initial annual operating budget The Urban Reinvestment Task Force will, as part of the develop- mental process, endeavor to obtain private sector support for a portion of the operating budget A Developmental Cost The following break -down shows the elements involved in the developmental cost of $50,000; however, the $50,000 is presented as a lump sum expense to permit flexible budgeting among expense categories to meet unforeseen contingencies in the developmental process Task Force overhead costs to support a Field Representative for the three NHS programs in Colorado will total approximately $60,000 for salary, benefits, travel, officer, and secretarial assistance. The following budget provides for the City of Pueblo to contribute one -third of the Field Supervisors costs Local Staff (full -time, 8 to 9 months) $10,000 Travel and training for local staff 3,000 Fringe costs (FICA, vacation, life and health insurance, local staff) 2 Workshop Expenses Lodging, meals, meetings 6,000 Speakers, resource persons 2,000 Participants' travel 4,000 Follow -up Seminar for Lending Officers, appraisers and private mortgage insurance representatives 1,000 Miscellaneous Materials, postage, printing, telephone, contingencies 2,000 Supplemental To Colorado Field Representative 20,000 TOTAL $50,000 -5- 1 N Any unexpended balance of developmental funds will be made available to the Neighborhood Housing Services corporation IV Budgetary support for the developmental program should be paid upon execution of this agreement to the Urban Reinvestment Task Force whose Fiscal Agent will act as the program controller, and disburse and account for funds. Any checks issued for the program must be made payable to "Fiscal Agent, Office of Neighborhood Reinvestment" and forwarded c/o Wm A Whiteside, Staff Director Urban Reinvestment Task Force 320 First Street, N W Washington, D C 20552 V. Upon successful development of the Neighborhood Housing Services corporation A The Urban Reinvestment Task Force has given grants, when necessary, to aid in establishing the NHS High Risk Revolving Loan Fund Task Fbrce grants have averaged $85,000 Multi - neighborhood NHS programs have been given grants of up to $100,000, whereas single neighborhood NHS programs will normally receive grants in the $70,000 - $75,000 range A seed money grant for the Neighborhood Housing Services corporation in Pueblo will be pro- vided either by the Task Force or by the State of Colorado B. The City shall grant $20,000 to the NHS out of City's Community Development Block Grant Funds for partial support of its operating budget and to establish its High Risk Revolving Loan Fund Pursuant to fulfilling the terms of this written agreement, the City of Pueblo concurs with the conditions herein and further agrees to provide the developmental funds of $50,000 upon execution of this agreement VI The Urban Reinvestment Task Force is a joint effort of the Secretary of Housing and Urban Development, the Acting Chair- man of the Federal Home Loan Bank Board, a member of the Board of Governors of the Federal Reserve System, the Chairman of the -6- Federal Deposit Insurance Corporation, and the Comptroller of the Currency The Task Force provides policy guidance for the work of its staff, but does not act as a contracting party The Office of Neighborhood Reinvestment of the Federal Home Loan Banks has assigned members of its staff to work as the staff of the Task Force; the Office of Neighborhood Reinvestment assumes all obligations and all rights attributed to it or to the Task Force under the terms of this agreement IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed as of the date first above written THE CITY OF PUEBLO, A Municipal Corporation By ` �'t� �cL Pres ./ ATTEST . 9tyf/ C,a/erk -APPROVED- AS TO FORM C i tA€pfr'fir URBAN REINVESTMENT TASK FORCE /131 Director, Office of Neighborhood Reinvestment The Federal Home Loan Bank of Topeka agrees to cooperate with the Urban Reinvestment Task Force and the City of Pueblo in carrying out the development of the Neighborhood Housing Services corpora- tion in the city of Pueblo, as set forth above FEDERAL HOME LOAN BANK OF TOPEKA By Date Federal Deposit Insurance Corporation, and the Comptroller of the Currency. The Task Force provides policy guidance for the work of its staff, but does not act as a contracting party. The Office of Neighborhood Reinvestment of the Federal Home Loan Banks has assigned members of its staff to work as the staff of the 1 Task Force; the Office of Neighborhood Reinvestment assumes all obligations and all rights attributed to it or to the Task Force Under the termss of this agreement IN WITNESS WHEREO1', the parties hereto have caused this contract to be executed as of the date first above written. THE CITY OF PUEBLO, A Municipal Corporatioi By President/ ATTES• --�' APPROVED AS Tr FORM: - .. URBAN REINVESTMENT TASK FORCE • F irector, Office L of Neiahborhoo Zeinvestment The Federal Horne Loan Bank of Topeka agrees to cooperate with the Urban Reinves` -rent Task Force anu the City of Pueblo In carrying out the devel f %men of the N'e ich.borhood Housing Services corpora- tion in a - _. c - y o' Pueblo, as set fo r above :i0ifl7E "'uPEKA By / .��L� � v7 . -' �- . c, -- ,- I. te : Je t /._, 'i , /