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HomeMy WebLinkAbout12525RESOLUTION NO. 12525 A RESOLUTION APPROVING AN AGREEMENT BETWEEN HABITAT FOR HUMANITY PUEBLO, INC. AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR THE CONVEYANCE OF PROPERTY, LOCATED AT 2601 CHELTON AVE AND AUTHORIZING THE PRESIDENT OF THE CITY 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 is surplus to the City’s need; that said property 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 property listed on Attachment “A” hereto. INTRODUCED: October 22, 2012 BY: Sandy Daff COUNCIL PERSON ATTACHMENT “A” Street Address & Legal Description HOME Expenditures 2601 Chelton Lane, $92,230.50 Lot 11, Block 2, Oakshire Hills, Filing #2 Background Paper for Proposed RESOLUTION # M-9 AGENDA ITEM DATE: OCTOBER 22, 2012 DEPARTMENT: HOUSING AND CITIZEN SERVICES ADA RIVERA CLARK, DIRECTOR TITLE A RESOLUTION APPROVING AN AGREEMENT BETWEEN HABITAT FOR HUMANITY PUEBLO, INC. AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, FOR THE CONVEYANCE OF PROPERTY, LOCATED AT 2601 CHELTON AVE AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME. ISSUE Should the City transfer title to an improved parcel to Pueblo Habitat for Humanity for its inclusion in Habitat’s affordable housing program? RECOMMENDATION Approval of the Resolution. BACKGROUND The City owns an improved parcel of property that the Department of Housing and Citizen Services wishes to convey to Habitat for Humanity for sale to households eligible for their affordable housing program. The property on Chelton was purchased with HOME funds from the owners prior to its foreclosure. The property needs about $25,000 in repairs, which Habitat is willing and able to undertake. The property is to be donated to Habitat. Habitat acts as lender in their program and therefore mortgage payments are made to Habitat by the homeowners. The funds are then rolled back into the program to purchase materials and to pay contractors for those jobs that require licensing (electrical, plumbing, etc), and also to cover operating expenses. Habitat’s program targets families at 60% of the Area Median Income (AMI). A four-person household earning less than $36,600 (2012 AMI) would qualify. If the families default on their loan Habitat has the right of first refusal and will take the property back into inventory to be offered to another family. FINANCIAL IMPACT The transfer of this property will allow the City to meet its requirements under the grant and reduce expenditures for staff time and maintenance costs associated with carrying the property. It will also return the property to the tax rolls. Initial HOME grant investment in the purchase of the property was $95,230.50. PROPERTY DISPOSAL AGREEMENT THIS AGREEMENT is made and entered into this 22nd day of October, 2012, by and between the City of Pueblo, a Municipal Corporation, 1 City Hall Place, Pueblo, Colorado, 81003 (the "City ") and Pueblo Habitat for Humanity , 2313 S, Prairie Avenue, Pueblo, Colorado, 81005 ( "Disposal Agency "). WHEREAS, City holds a certain parcel of property, described more particularly in paragraph 7 hereof (hereafter referred to collectively as the "Property "), which has 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 Property is presently owned by the City because the federally assisted project has not proved to be successful; and WHEREAS, Disposal Agency represents that it is a qualified non -profit agency, which operates programs designed toward providing affordable housing, and that it will be either able to make use of the Property 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 conveying and transferring to Disposal Agency all of the City's right, title and interest in the Property. 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. Disposal Agency agrees to undertake all actions in the Scope of Services outlined in Exhibit A. 3. All funds recovered by Disposal Agency from the sale 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 federal investment shown for the Property in paragraph 7 of this Agreement, shall be deemed Net Proceeds, which carry no further limitations or restrictions by the City. 4. The parties acknowledge and agree that Disposal Agency is an independent developer 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 developers or arising from or related to Disposal Agency's use, reuse, modifications, resale or leasing of the Property. 5. The Property is located in Pueblo County, Colorado and has the legal description and a HOME grant investment amount as set forth below: a. Lot 11, Block 2, Oakshire Hills, Filing #2, b. $95,230.50 6. In the event the Property is 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 fifteen (15) years. 7. 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. 8. Disposal Agency shall maintain records as to the use of the Property, proceeds from resale of any Property. 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. 9. 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. 10. 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.. 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 plus five- years. 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. 11. 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. 12. 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. 13. 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 I da City erk Pr; ident of the Ci , Council [SEAL] Pueblo Habitat-for rumam Title: .1.1--, ATTEST: By Name: Title: EXHIBIT A SCOPE OF SERVICES 1- PROPERTY REHABILITATION Developer is responsible for all aspects of the rehabilitation work, including but not limited to the following: a. Preparation of the rehabilitation estimate; b. Procurement of contractors; c. Ensuring all work (including any responsibilities for environmental hazards testing, clean -up and clearance) is done in accordance with local, state and federal laws; d. Oversight of sub - contractors, volunteers and any staff associated with program management and /or property rehabilitation; e. Obtaining all necessary permits and ensuring that all permits are "finaled" prior to sale of the property to an owner - occupant; f. Notifying the Department of Housing and Citizen Services for final inspection of the property, apart from any inspections required by the Regional Building Department. 2- APPROVAL OF APPLICANTS a. The Developer is required to approve applicants under the parameters of their affordable housing program that meet HOME household income limits. 3- DEED RESTRICTIONS and CONTINUED AFFORDABILITY a. Developer is required to educate the Applicant with regard to the Deed of Trust and Promissory Note to ensure the understanding of the period of affordability by the buyers of the housing unit. Developer is responsible for the inclusion of the Deed of Trust and Promissory Note and ensuring the recording of the said documents with the Pueblo County Clerk and Recorder. 4- ANNUAL CERTIFICATION OF OWNER OCCUPANCY a. The Developer is required to certify annually for continued owner - occupancy by mail with signature confirmation and report by January 15th of each calendar year of the affordability period (fifthteen -years from the date of closing). The manner in which annual certification is achieved is at the discretion of the Developer. EXHIBIT B ACCOUNTING SYSTEM COMPLIANCE PROVISIONS 1. As used in this Exhibit, the term "Developer" shall mean the entity entering into the Agreement with the City of Pueblo, a Municipal Corporation to which this Exhibit is attached. 2. Developer is subject to and shall comply with the requirements of OMB Circular A -133. 3. Developer agrees to maintain Project and accounting records in accordance with generally accepted accounting principles which accurately reflect all costs chargeable to the Project, utilize adequate internal controls, and maintain source documentation for all costs incurred. The City shall have the right to review and approve Developer's account system and internal controls prior to the release of any funds under the Agreement. 4. During the preconstruction and construction phases of the Project, the Developer shall not materially deviate from any approved Project budget unless any proposed major revision thereto has been submitted to City and approved in writing. Change orders of less than $10,000 each or $50,000 in the aggregate shall not be deemed to be material deviations or major revisions to the Project budget. 5. Nothing in the Agreement or the Exhibits thereto shall obligate City to any third parties nor to any contractors, subcontractors, consultants, suppliers or workmen who have contracted with Developer or provided any materials or services to Developer. 6. The City has the right to periodically perform interim audits and a final audit of the Project and funds provided under the Agreement. Developer shall fully cooperate with City in undertaking any such audit and shall provide a suitable work area for City's audit personnel to inspect and copy records. EXHIBIT C FEDERAL DEBARMENT CERTIFICATION CERTIFICATION REGARDING DEBARMENT, SUSPENSION INELIGIBILITY AND VOLUNTARY EXCLUSION - LOWER TIER COVERED TRANSACTIONS This certification is required by the regulations implementing Executive Order 12549, Debarment and Suspension, 7 CFR Part 3017, Section 3017.510, Participants responsibilities. The regulations were published as Part IV of the January 30, 1989, Federal Register (pages 4722 - 4733). * ** BEFORE COMPLETING CERTIFICATION, READ INSTRUCTIONS ON NEXT PAGE * ** (1) The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (2) Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attached an explanation to this proposal. /;nLi /ioNt4 T of/ /A/C. Organization Name PR/Award Number or Project Name A e /r6- �i✓Pok C( P/Lts7 )✓r Name(s) and Title(s) of Authorized Representative(s) - / ignature s • a Federal Debarment Certification — continued on following page INSTRUCTIONS FOR CERTIFICATION 1. By signing and submitting this form, the prospective lower tier participant is providing the certification set out on the reverse side in accordance with these instructions. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and /or debarment. 3. The prospective lower tier participant shall provide immediate written notice to the person to whom this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this form that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this form that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and /or debarment. Form AD-1048 (1/92) EXHIBIT D CERTIFICATIONS The entity entering into this Agreement with the City hereby certifies that the Project will be conducted and administered in compliance with all of the following requirements: (1) Title VI of the Civil Rights Act of 1964 (Pub. L. 88 -352; 42 U.S.C. 2000d, et seq.) and implementing regulations issued at 24 CFR Part 1; (2) Title VIII of the Civil Rights Act of 1968 (Pub. L. 90 -284; 42 U.S.C. 3601, et seq.), as amended; and that the grantee will administer all programs and activities related to housing and community development in a manner to affirmatively further fair housing; (3) Section 109 of the Housing and Community Development Act of 1974, as amended; and the regulations issued pursuant thereto; (4) Section 3 of the Housing and Urban Development Act of 1968, as amended; (5) Executive Order 11246, as amended by Executive Orders 11375 and 12086, and implementing regulations issued at 41 CFR Chapter 60; (6) Executive Order 11063, as amended by Executive Orders 12259, and implementing regulations at 24 CFR Part 107; (7) Section 504 of the Rehabilitation Act of 1973 (Pub. L. 93 -112), as amended, and implementing regulations when published for effect; (8) The Age Discrimination Act of 1975 (Pub. L. 94 -135), as amended, and implementing regulations when published for effect; (9) The relocation requirements of Title II and the acquisition requirements of Title III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the HUD implementing regulations set forth in 24 CFR Part 42; (10) Executive Order 11988 relating to the evaluation of flood hazards and Executive Order 11288 relating to the prevention, control and abatement of water pollution; (11) The flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (Pub. L. 93 -234); (12) The applicable regulations, policies, guidelines and requirements of OMB Circular Nos. A -102, Revised, 24 CFR 85 and Subpart J of 24 CFR 570, A -87, A -110, A -122, A -128 and A -133 as they relate to the acceptance and use of federal funds under this federally- assisted program; (13) The Clean Air Act (42 U.S.C. 7401 et. seq.) as amended; particularly section 176 (c) and (d) [42 U.S.C. 7506 (c) and (d)]; (14) HUD environmental criteria and standards [24 CFR Part 51, Environmental Criteria and Standards]; (15) The Safe Drinking Water Act of 1974 (42 U.S.C. 201, 300 (f) et. seq., and 21 U.S.C. 349) as amended; particularly section 1424 (e) (42 U.S.C. 300 (h)- 303(e)); (16) The Endangered Species Act of 1973 (16 U.S.C. 1531 et. seq.) as amended; including but not limited to section 7 (16 U.S.C. 1536) thereof; (17) The Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1272 et. seq.) as amended; particularly section 7 (b) and (c) [16 U.S.C. 1278 (b) and (c)]; (18) The Reservoir Salvage Act of 1960 916 U.S.C. 469 et. seq.); particularly section 3 (16 U.S.C. 469a -1); as amended by the Archeological and Historical Preservation Act of 1974; (19) Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et. seq.) as amended; particularly sections 102(a) and 202(a) [42 U.S.C. 4012a(a) and 4106(a)]; (20) Executive order 11990, Protection of Wetlands, May 24, 1977 (42 FR 26961 et. seq.); particularly sections 2 and 5; (21) It will comply with the Lead -Based Paint Poisoning Prevention requirements of 25 CFR Part 35 issued pursuant to the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et. seq.); (22) The National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) as amended; particularly section 106 (16 U.S.C. 470f); and (23) Executive Order 11593, Protection and Enhancement of the Cultural Environment, May 13, 1971 (36 FR 8921 et. seq.); particularly section 2(c). (24) Construction work financed in whole or in part with federal funds is subject to the prevailing wage requirements of the Davis Bacon Act (29 CFR, Parts 3 and 5), the Copeland Act (29 CFR Part 3), and the Contract Work Hours and Safety Standards Act (Public Law 91 -54, 83 Stat. 96). When a project meets this applicability requirement, the labor standards provisions of the HUD 4010 and the Davis Bacon Wage Decision issued for the project will be incorporated into this contract document and shall be incorporated into all construction contracts and subcontracts of any tier thereunder. (25) No CDBG funds may be expended for lobbying purposes and payments from other sources for lobbying must be disclosed 24 CFR Part 87. (26) Where asbestos is present in property undergoing rehabilitation, Federal requirements apply regarding worker exposure, abatement procedures and disposal. CPD -90 -44 EPA /OSHA. (27) When HOME Investment Partnership Act funds are used, the Subrecipient will comply with implementing regulations and requirements under 24 CFR 92. Sign ture_ Reception 1926799 11/28/2012 02:59:24 PM QUIT CLAIM DEED THIS QUIT CLAIM DEED ( "Deed "), made on this 26 day of October, 2012, between the City of Pueblo, a Municipal corporation ( "Grantor "), and the Pueblo Habitat for Humanity ( "Grantee "). WITNESSETH, that Grantor, for and in consideration of Ten Dollars and no /100 ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, has remised, released, sold, conveyed and quit claimed, and by these presents does remise, release, sell, convey and quit claim unto Grantee, its successors and assigns forever, all of Grantor's right, title, interest, claim and demand which Grantor has in the real property and improvements, if any, situate, lying and being in the County of Pueblo, Colorado: Lot 11, Block 2, Oakshire Hills, Filing No. 2, FORMERLY #04- 282 -31 -011, County of Pueblo, State of Colorado Commonly known as: 2601 Chelton Lane, Pueblo, Colorado TO HAVE AND TO HOLD the property above bargained and described, together with all and singular the hereditaments and appurtenances and privileges thereunto belonging, or in anywise thereunto appertaining, and all the estate, right, title, interest and claim whatsoever, of the Grantor, either in law or equity, unto Grantee, forever. Grantee takes said right, title and interest of Grantor subject to all liens, encroachments, leases and environmental conditions, including those of record and those not of record. IN.WITNESS WHEREOF, Grantor has caused its corporate name to be hereunto subscribed by the President of the City Council of Pueblo, and its corporate seal to be hereunto affixed, attested by the City Clerk, the day and year first above written. ATTEST: ^ 4- 14u, vn PUEBLO, A MUNICIPAL CORK)* • TION 9 0 . U By ��, �_.,� /L,�L p r eside t of e City ' ouncil • �/ a / E&1 .� o Q Ap s By: \ Dutcher, City Clerk COUNTY OF PUEBLO ) ) ss. STATE OF COLORADO ) The foregoing instrument was acknowledged before me this 26 day of October, 2012 by C - //ea K _ PL,, Pm I9-•' , President of City Council and Gina Dutcher, City Clerk. ,s;:0,,,' ti ," ` �' , i es `mq'hand and official seal. :' � '\v ; , ji. c -coq / 3 4: ' � `� j"� " s1Qn ex p ires: Q Q. .J , Lo ��� , �, S m ARY l C 7 , ,9�. 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