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HomeMy WebLinkAbout12645RESOLUTION NO. 12645 A RESOLUTION APPROVING AN AMENDMENT NO. 2 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. 2 dated April 22, 2013 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: April 22, 2013 BY: Sandy Daff Background Paper for Proposed RESOLUTION DATE: APRIL 22, 2013 AGENDA ITEM # M-1 DEPARTMENT: HOUSING AND CITIZEN SERVICES ADA RIVERA CLARK, DIRECTOR TITLE A RESOLUTION APPROVING AN AMENDMENT NO. 2 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 increase funding provided to Posada for rehabilitation of a 16-unit transitional housing project? RECOMMENDATION Approval of the Resolution. BACKGROUND In June of 2008, the City of Pueblo entered into a Community Development Housing Organization (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. The Amendment No. 2 encompasses the following changes: 1. Increases the maximum funding amount by $480,000. 2. Extends the contract period for the construction until December 31, 2013. FINANCIAL IMPACT Funding in the amount of $480,000 is available in the 251 Fund and has been previously budgeted and appropriated by City Council for the preservation and development of affordable housing. AMENDMENT NO. 2 TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT (HOME -CHDO) THIS AMENDMENT NO. 2 Agreement for Affordable Housing Development Agreement is made and entered into this 22 day of April, 2013 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 8, 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 additional funding in the amount of $480,000 for rehabilitation, 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 December 31, 2013. 2. The Agreement is amended by revising paragraph 3(c) thereof to state that "the aggregate of all payments made hereunder shall not exceed Eight- Hundred Twenty Thousand and No /100 Dollars (U.S. $820,000). 3. Except as expressly modified by this Amendment No. 2, 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. 2. IN WITNESS WHEREOF, Posada and City have executed this Amendment No. 2 to Affordable Housing Development Agreement as of the date first above written. Posada, Inc. By: Name: n n 1 rk ZT "-Oro s Q' - g Title: v ct4 Pres c lIA And B y: Name: 24ltn.c ( • S.1-rx t-i- cl ►n&m►A, Title: !�► fQ c JvYG City of Pueblo A Municipal • _ - - p n By .W President of City Council Attested By: - ��- City Clerk [SEAL]