HomeMy WebLinkAbout12261RESOLUTION NO. 12261
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE
HOUSING AUTHORITY OF THE CITY OF PUEBLO AND THE
CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR THE
CONVEYANCE OF PROPERTY, AND AUTHORIZING THE
PRESIDENT OF THE COUNCIL TO EXECUTE SAME.
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council hereby finds and determines that the properties described on
Attachment “A” hereto are surplus to the City’s need; that said properties should be used to
assist in the creation of affordable housing for low- and moderate-income persons.
SECTION 2.
The President of the City Council is hereby authorized to execute, and the City Clerk to
attest, a deed for the properties listed on Attachment “A” hereto.
INTRODUCED November 14, 2011
BY: Chris Kaufman
COUNCILPERSON
ATTACHMENT “A”
Lots 3 to 6, Block 1, all in Oakshire Hills, Filing No. 2, A Special Area Plan, County of Pueblo,
State of Colorado
Street Address HOME Expenditure
2415 Chelton Lane, Lot 3, Block 1 $15,600
2419 Chelton Lane, Lot 4, Block 1 $17,390
2423 Chelton Lane, Lot 5, Block 1 $18,929
2427 Chelton Lane, Lot 6, Block 1 $22,120
Background Paper for Proposed
RESOLUTION
DATE: NOVEMBER 14, 2011 AGENDA ITEM # M-6
DEPARTMENT:
HOUSING AND CITIZEN SERVICES
DIRECTOR-ADA RIVERA CLARK
TITLE
A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE HOUSING AUTHORITY OF
THE CITY OF PUEBLO AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR
THE CONVEYANCE OF PROPERTY, AND AUTHORIZING THE PRESIDENT OF THE
COUNCIL TO EXECUTE SAME.
ISSUE
Should the City transfer title to four unimproved parcels to the Housing Authority of the City of
Pueblo for the development of affordable single-family rental housing?
RECOMMENDATION
Approval of the Resolution.
BACKGROUND
The Pueblo Housing Authority (PHA) has received a Low Income Housing Tax Credit (LIHTC)
allocation from the Colorado Housing and Finance Authority for its Oakshire Hills II affordable
housing project. Development costs are estimated to be $6.3 million. The allocation will allow
the Housing Authority to build 29 units of single-family rental housing in the Oakshire Hills
Subdivision in Eastwood Heights. Housing and Citizen Services originally offered up its parcels
in the Subdivision for this Project, but the PHA had sufficient properties under site control. Upon
final review it was determined by the PHA that it would be more efficient to use the City owned
parcels as there are site improvements present. The parcels were purchased several years ago
with HOME funds from the PHA for use in our Vacant Lot Recycle Program.
The units will target families at 60% and 50% of the Area Median Income (AMI). A four-person
household earning less than $35,520 (2011 AMI) would qualify. The properties will remain
affordable for 40 years. The PHA has also applied for HOME funding for the Project. This
application is in process and will be brought to City Council once all parties agree to the terms
and conditions.
FINANCIAL IMPACT
If the property is transferred to the PHA the City will save on the costs of parcel upkeep. The
development of the homes would yield use taxes, as well as providing jobs in the community.
PROPERTY DISPOSAL AGREEMENT
THIS AGREEMENT is made and entered into this 14th day of November, 2011,
by and between the City of Pueblo, a Municipal Corporation, 1 City Hall Place, Pueblo,
Colorado, 81003 (the "City ") and the Housing Authority of the City of Pueblo, 1414 N.
Santa Fe Avenue, Pueblo, Colorado, 81001 ( "Disposal Agency ").
WHEREAS, City holds certain parcels of property, described more particularly in
paragraph 8 hereof (hereafter referred to collectively as the "Properties" and each parcel
individually as a "Property "), which had been assisted with federal funds provided under
authority of the HOME Investment Partnerships Act, 42 U.S.C. §12701, et. seq., the
Cranston - Gonzales National Affordable Housing Act and implementing regulations,
including but not limited to those at 24 C.F.R. Part 92 (collectively "HOME "); and
WHEREAS, the Properties are presently owned by the City because the HOME
assisted purchase for homeowner new construction projects has not proved to be
successful; and
WHEREAS, Disposal Agency represents that it is a public housing authority
which operates programs designed toward providing affordable housing, and that it will
be either able to make use of the Properties in connection with one or more of its housing
programs or projects;
NOW, THEREFORE, in consideration of the foregoing recitals and the promises
and mutual covenants contained herein, the parties agree as follows:
1. Within thirty days after execution of this Agreement, City shall execute and
deliver to Disposal Agency a quit claim deed or deeds conveying and transferring to
Disposal Agency all of the City's right, title and interest in the Properties as described in
paragraph 8 below. The conveyance of the City's right, title and interest in the Properties
is "AS IS" and "WITH ALL FAULTS" and shall be in such form as the City Attorney
shall require.
2. With respect to each Property conveyed hereunder, Disposal Agency shall use
the Property in its Oakshire Hills II Low Income Housing Tax Credit project, which will
provide 29 units of affordable rental housing.
3. All funds recovered by Disposal Agency from the lease of each Property, shall
be retained by Disposal Agency; provided, however, that the entire amount recovered by
Disposal Agency from the resale, rental, lease or other reuse of each Property including
any receipt of principal and interest on said notes, up to, but not exceeding, the amount of
the HOME Investment shown for each Property in paragraph 8 of this Agreement, shall
be deemed Program Income which may only be used by Disposal Agency in accordance
with the provisions, restrictions and limitations of this Property Disposal Agreement.
4. All Program Income received by Disposal Agency which is attributable to the
Properties conveyed hereunder or is otherwise derived under the provisions of this
Agreement shall be used by Disposal Agency only for programs or projects eligible for
the use of HOME funds which have been approved by City prior to expenditure of
Program Income funds and shall be used only in accordance with applicable HUD
regulations. In connection with such approved programs or projects, an amount not
exceeding 10% of the amount of the eligible expenditure may be applied by Disposal
Agency to administrative costs associated with the project or program.
5. The parties acknowledge and agree that Disposal Agency is an independent
contractor and not an agent of City for any purpose in connection with this Agreement.
Disposal Agency agrees to indemnify, defend and hold City harmless from and against
any and all claims, damages, liabilities and court awards including costs, expenses and
attorney fees incurred arising from or related to any act or omission of Disposal Agency
or its officers, agents, employees, volunteers or contractors or arising from or related to
Disposal Agency's use, reuse, modifications, resale or leasing of the Properties.
6. The Properties are located in Pueblo County, Colorado and have the legal
descriptions and HOME Investment amounts as set forth below:
Lots 3 to 6, Block 3, all in Oakshire Hills, filing No.2, A Special Area Plan
2415 Chelton Lane, Lot 3, Block 1 $15,600
2419 Chelton Lane, Lot 4, Block 1 $17,390
2423 Chelton Lane, Lot 5, Block 1 $18,929
2427 Chelton Lane, Lot 6, Block 1 $22,120
7. In the event any of the Properties are sold by Disposal Agency to a qualified
low or moderate income buyer without recapturing the full amount of the HOME
Investment at time of sale, Disposal Agency shall require, by deed restrictions, mortgage
conditions or other enforceable means, that the Property remain affordable as defined in
the HOME regulations, and that, in the event of failure of such requirement, that the
remaining HOME Investment amount for such Property is recovered. The period of
affordability shall be twenty (20) years.
8. HOME regulation 24 CFR, § 92.356 is incorporated herein by reference, and
sets forth applicable HOME requirements pertaining to Conflict of Interest. Disposal
Agency, and its Board of Directors, officers and employees, shall avoid all conflicts
prohibited by the 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.
9. Disposal Agency shall maintain records as to the use of the Properties,
proceeds from resale of any Property and use of Program Income. Accounting records
shall be kept on a generally recognized accounting basis and as requested by the City's
auditor. Disposal Agency agrees to comply with all applicable uniform administrative
requirements described or referenced in 24 CFR Part 92. 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 Disposal Agency which relate to this
Agreement for the purpose of making an audit or examination. At any time within 20
years after date of this Agreement, the City may require all of Disposal Agency's
financial records relating to this Agreement to be turned over to the City.
10. The City shall have the right to monitor and evaluate the progress and
performance of Disposal Agency 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 may periodically review Disposal
Agency's performance using on -site visits, progress reports required to be submitted by
Disposal Agency, audit findings, disbursement transactions and contact with Disposal
Agency as necessary. Disposal Agency shall furnish to the City periodic program and
financial reports of its activities in such form and manner as may be requested by the
City. Disposal Agency shall fully cooperate with City relating to such monitoring and
evaluation.
11. Disposal Agency shall maintain files containing information which shall
clearly document 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 Disposal Agency for a period of five
years, except that with respect to any Property for which the HOME Investment has not
been fully recovered, such records shall be maintained for the full required period of
affordability. Activity reports shall be submitted quarterly no later than the ninth day of
the month following the end of the period for which the report is submitted. The
frequency of reporting under this paragraph and paragraph 13 of this Agreement shall be
specified by City, and may be changed, from time to time, as the City may in its sole
discretion deem necessary or desirable.
12. As to the City, Disposal Agency 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 Disposal Agency, the ownership, rehabilitation or sale of any Property conveyed to
Disposal Agency or by the conditions created thereby or resulting therefrom. Disposal
Agency 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
Disposal Agency, or the ownership, rehabilitation or resale of any Property conveyed to
Disposal Agency, or warranties, if any, upon any resale, or out of any violation by
Disposal Agency of any statute, ordinance, rule or regulation.
13. The provisions set forth in this Agreement, and all Exhibits and attachments to
this Agreement, constitute the entire and complete agreement of the parties hereto and
supersede all prior written and oral agreements, understandings or representations related
thereto. No amendment or modification of this Agreement, and no waiver of any
provision of this Agreement, shall be binding unless made in writing and executed by the
duly authorized officers of both the Disposal Agency and City.
14. The persons signing this Agreement on behalf of Disposal Agency represent
and warrant that such persons and Disposal Agency 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 Disposal Agency enforceable against Disposal
Agency in accordance with its terms.
IN WITNESS WHEREOF, Disposal Agency and the City have executed this
Agreement as of the date first above written and under the laws of the State of Colorado.
CITY OF PUEBLO
ATTEST: A Municipal Corporation
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City Clerk President of the City Council
[SEAL]
ATTEST: Housing Authority of the City of Pueblo
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