HomeMy WebLinkAbout12324RESOLUTION NO. 12324
A RESOLUTION APPROVING AN AMENDMENT TO AN
AGREEMENT BETWEEN POSADA, INC., AND THE CITY
OF PUEBLO, A MUNICIPAL CORPORATION, AND
AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE SAME
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Amendment No. 1 dated February 27, 2012 to the Affordable Housing
Development Agreement dated June 9, 2008 between Posada, Inc., and the City of
Pueblo, a Municipal Corporation, (the “Agreement”), for the acquisition and rehabilitation
of 16-units of transitional rental 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 Agreement
in the name of the City, and the City Clerk is directed to affix the seal of the City thereto
and attest the same.
INTRODUCED: February 27, 2012
BY: Judy Weaver
COUNCIL PERSON
Background Paper for Proposed
RESOLUTION
DATE: FEBRUARY 27, 2012 AGENDA ITEM # M-7
DEPARTMENT: HOUSING AND CITIZEN SERVICES
ADA RIVERA CLARK, DIRECTOR
TITLE
A RESOLUTION APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN POSADA,
INC., AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
ISSUE
Shall City Council approve an Amendment to extend the contract period and to provide
operating expenses to Posada for the delivery of transitional housing?
RECOMMENDATION
Approval of the Resolution
BACKGROUND
In June of 2008, the City of Pueblo entered into a Community Development Housing
Corporation (CHDO) agreement with Posada, Inc., to acquire and rehabilitate 16 units of
transitional rental housing. Under the Agreement the City provided $300,000 in HOME funds
for the purchase of the properties and to undertake repairs. The property is in need of
additional repairs and the recent audit from the Office of Fair Housing and Equal Opportunity
and the State of Colorado has called for additional ADA modifications. Posada has requested
operating funds in support of this project.
The Amendment No. 1 encompasses the following changes:
1- Increases the maximum funding amount by $20,000 by providing said amount for
operating expenses.
2- Extends the contract period for the repairs until October 31, 2012.
3- Makes these changes retroactive to March 1, 2011.
FINANCIAL IMPACT
Funding is available in the 251 Fund.
AMENDMENT NO. 1 TO
AFFORDABLE HOUSING DEVELOPMENT AGREEMENT
(HOME -CHDO)
THIS AMENDMENT NO. 1 Agreement for Affordable Housing Development
Agreement is made and entered into this 27 day of February, 2012 by and between the City of
Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Posada, Inc., a Colorado
Non - Profit Corporation (hereinafter referred to as "Posada ").
WHEREAS, Posada and City have heretofore entered into an Agreement dated June 9,
2008 (hereinafter "the Agreement ") wherein Posada agreed to acquire and rehabilitate rental
housing to create affordable housing for homeless persons and families in transition in
accordance with the terms of that 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
seq., and implementing regulations, including but not limited to those at 24 CFR Part 92; and
WHEREAS, it is necessary and desirable that the Agreement be amended to provide for
an extension of the time needed for rehabilitation and compliance by extending the completion
period, subject to all terms and conditions of the Agreement; and
WHEREAS, it is necessary and desirable that the Agreement be amended to provide for
$20,000 in operating expenses, subject to all terms and conditions of the Agreement, which must
be expended in compliance with 24 CFR 92.208.
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 paragraph 1(c) (iv) thereof to state that
"Posada or the Project Owner shall substantially complete rehabilitation of the Project not later
than October 31, 2012.
2. The Agreement is amended by revising paragraph 3 (c) thereof to state that "the
aggregate of all payments made hereunder shall not exceed Three Hundred Twenty Thousand
and No /100 Dollars (U.S. $320,000) allocated as follows:
(i) for affordable housing development by Posada, an amount not to exceed
$300,000; and,
(ii) for reasonable and eligible operating expenses associated with the
Monterey Apartment project, an amount not to exceed $20,000, for the
period of March 1, 2011 through February 29, 2012."
3. Except as expressly modified by this Amendment No. 1, the Agreement shall
remain in full force and effect. 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, Posada and City have executed this Amendment No. 1 to
Affordable Housing Development Agreement as of the date first above written.
Posada, Inc.
r,
By:
I
Name: Do /-7 q fcl /T fr s e
Title: Pr Q- s dl.t., cl•- F . . 1p4
and
By: / 44
Name: 1l n,t V • Sf & + - f .R (►na,w
Title: � f e - c -
CITY OF PUEBLO,
ATTEST: A Municipal Corporation
B . / /, A AWL
City Jerk P, esident ; the Cit, Council
[ SEAL ]