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HomeMy WebLinkAbout12464RESOLUTION NO. 12464 A RESOLUTION APPROVING AN AMENDMENT TO AN AFFORDABLE HOUSING DEVELOPMENT AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF PUEBLO, INC., DOING BUSINESS AS NEIGHBORWORKS OF PUEBLO, INC., AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR AFFORDABLE HOUSING DEVELOPMENT BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, COLORADO that: SECTION 1. th The Amendment No. 5 dated August 13, 2012, to the Affordable Housing Development Agreement dated August 14, 2000, between Neighborhood Housing Services of Pueblo, Inc., doing business as NeighorWorks of Pueblo, Inc., and the City of Pueblo, a Municipal Corporation, (the “Agreement”), for the development of affordable 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: August 13, 2012 BY: Sandy Daff COUNCIL PERSON Background Paper for Proposed RESOLUTION # M-8 DATE: August 13, 2012AGENDA ITEM DEPARTMENT: HOUSING AND CITIZEN SERVICES ADA RIVERA CLARK/DIRECTOR TITLE A RESOLUTION APPROVING AN AMENDMENT TO AN AFFORDABLE HOUSING DEVELOPMENT AGREEMENT BETWEEN NEIGHBORHOOD HOUSING SERVICES OF PUEBLO, INC., DOING BUSINESS AS NEIGHBOR WORKS OF PUEBLO, INC., AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR AFFORDABLE HOUSING DEVELOPMENT ISSUE On August 14, 2000, the City Council approved an Affordable Housing Development Agreement (the “Agreement”) between the parties. The Agreement expires on December 31, 2008. The Amendment extends the Agreement until December 31, 2012. RECOMMENDATION Approval of the Resolution BACKGROUND Neighbor Works received HOME funding for the development of the Hyde Park Gardens Subdivision. This Resolution amends the number of units to be sold to low and moderate- income families from 40 to 21 to be in compliance with the HOME requirements, as well as increasing the per unit subsidy from $18, 075 to $34, 429. To date 30 lots have been sold that benefit low-to moderate-income families. The funds were used for land acquisition and on- and off-site infrastructure improvements to the property. The approval of this Amendment allows the City to close-out this Project, and simply continue with the enforcement of the affordability requirements under HOME. FINANCIAL IMPACT This Amendment No. 5, has no financial impact to the City. AMENDMENT NO. 5 TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 5 to Affordable Housing Development Agreement is made and entered into this 13 day of August, 2012 by and between the City of Pueblo, a Municipal Corporation (hereinafter referred to as "City ") and Neighborhood Housing Services of Pueblo, Inc. doing business as NeighborWorks of Pueblo, (hereinafter referred to as "Subrecipient "). WHEREAS, Subrecipient and City have heretofore entered into an Agreement dated August 14, 2000 (hereinafter "the Agreement ") wherein Subrecipient agreed to construct affordable housing 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 the Housing and Community Development Act, 42 U.S.C. §5301 et. seq., and implementing regulations; and WHEREAS, Subrecipient has requested an amendment to the Agreement's Project requirements and the Credits for Sale of Affordable Housing, in response to the current housing market; and WHEREAS, it is necessary and desirable that the Agreement be amended to provide for said request, subject to all terms and conditions of the Agreement; 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 five thereof to state that Subrecipient shall have completed and sold or cause to have been completed and sold, not less than twenty -one (21) Program Units by not later than December 31, 2012. 2. The Agreement is amended by revising paragraph ten thereof to state that the Note shall be reduced by an amount equal to $34,429 for each qualifying sale of a Program Unit. 3. Except as expressly modified by this Amendment No. 5, 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. 5. IN WITNESS WHEREOF, Subrecipient and City have executed this Amendment No. 5 to Affordable Housing Development Agreement as of the date first above written. Neighborhood Housing Services of Pueblo, Inc. dba NeighborWorks of Pueblo • By: O ath -c-"s" Name: D £na ?,cdc1.rc. Title:=.rcteri.wv. "bc;.eckor And By: Name: an & cc.r ed. Title: at- 4s c:d _n.E CITY OF PUEBLO, ATTEST: A Municipal Corporation By / /. �� City rk Pr-sident of ' ity Council [SEA