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HomeMy WebLinkAbout12271RESOLUTION NO. 12271 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 property described on Attachment “A” hereto are surplus to the City’s needs; that said property should be used to assist in the creation of affordable housing for low- and moderate-income persons. SECTION 2. The Property Disposal Agreement (the “Agreement”), dated as of November 28, 2011, between The Housing Authority of the City of Pueblo and The City of Pueblo, A Municipal Corporation, a copy of which is attached hereto, is hereby approved, and the President of the City Council is authorized to execute and deliver the Agreement in the name of the City and the City Clerk is directed to affix the seal of the City thereto and attest same. SECTION 3. The President of the City Council is hereby authorized to execute, and the City Clerk to attest, a deed for the property listed on Attachment “A” hereto, in accordance with the provisions of the Agreement. INTRODUCED November 28, 2011 BY: Judy Weaver COUNCILPERSON Background Paper for Proposed RESOLUTION M-4 DATE: NOVEMBER 28, 2011 AGENDA ITEM # 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 of the City of Pueblo (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 parcel as there are site improvements present. The parcel was 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 provide jobs in the community. ATTACHMENT “A” Lot 55, Block 3, in Oakshire Hills, Filing No. 2, A Special Area Plan, County of Pueblo, State of Colorado Street Address HOME Expenditure 1923 Calderwood Pl. Lot 55 Block 3 $16,656 PROPERTY DISPOSAL AGREEMENT THIS AGREEMENT is made and entered into this 28th 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 55, Block 3, in Oakshire Hills, filing No.2, A Special Area Plan 1923 Calderwood Pl., Lot 55, Block 3 $16,656 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 By ktaltte Ci Clerk President of the City Council i " //4 AyAl r / 7 ■4 ormatzt WOO . -=�� . f � �.,� • Housing Authority of the City of Pueblo 0, EINININIllia A° By:4-9 Name: C'is1 iue A c.ot-c'C.c7 Title: By: Name: Title: