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Home My WebLink About12842RESOLUTION NO. 12842 A RESOLUTION APPROVING AN AMENDMENT NO. 3 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. 3 dated December 9, 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 officers and staff of the City are directed and authorized to perform any and all acts consistent with the intent of this Resolution and the attached amendment to effectuate the transactions described therein. SECTION 3. This Resolution shall become effective immediately upon final passage. INTRODUCED: December 9, 2013 BY: Chris Kaufman Background Paper for Proposed RESOLUTION DATE: DECEMBER 9, 2013AGENDA ITEM # M-6 DEPARTMENT: HOUSING AND CITIZEN SERVICES ADA RIVERA CLARK, DIRECTOR TITLE A RESOLUTION APPROVING AN AMENDMENT NO. 3 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 Amendment 3, which extends the contract period for the completion of the scope of work outlined in the Agreement between Posada, Inc. and the City of Pueblo? 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. A 2012 audit from the Office of Fair Housing and Equal Opportunity and the State of Colorado Division of Housing called for changes to the units heating and cooling systems, as well as ADA modifications. Posada has been in negotiations with the City and State regarding the required scope of work. This process has taken longer than anticipated and the contract period established in the Agreement expires on December 31, 2013. This Amendment No. 3 encompasses the following change: 1. Extends the contract period for substantial completion of the rehabilitation until October 31, 2014. FINANCIAL IMPACT There are no foreseen financial impacts to the City associated with the extension of this Agreement. AMENDMENT NO. 3 TO AFFORDABLE HOUSING DEVELOPMENT AGREEMENT (HOME -CHDO) THIS AMENDMENT NO. 3 Agreement for Affordable Housing Development Agreement is made and entered into this 9th day of December, 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 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, 2014. 2. Except as expressly modified by this Amendment No. 3, 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. 3. IN WITNESS WHEREOF, Posada and City have executed this Amendment No. 3 to Affordable Housing Development Agreement as of the date first above written. Posada, Inc. It By: t Name ->(hvu 1411, S J' Title: `) r LA-or' And By: Ji ! �7,� /� �rozi Name: /,i ` t. Cd i Title �Z City of Pueblo A Muni ' :r orpor- �n President of City Council Attested By. . - City Clerk [SEAL]