HomeMy WebLinkAbout13099RESOLUTION NO. 13099
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
NEIGHBORHOOD HOUSING SERVICES OF PUEBLO, INC.,
DBA NEIGHBORWORKS OF PUEBLO, INC., A COLORADO
NON-PROFIT CORPORATION AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, FOR THE CONVEYANCE OF
PROPERTY, AND AUTHORIZING THE PRESIDENT OF THE
CITY COUNCIL TO EXECUTE THE SAME
WHEREAS, the transfer of a City owned property to a non-profit housing provider to be
developed and sold to a low-to-moderate income family, complies with the CDBG and HOME
federal regulations; and
WHEREAS, the attached Agreement has been approved as to form by the City Attorney;
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The City Council hereby finds and determines that the property described at Lots 27 +
28 Blk 34 Minnequa Heights also known as 2709 Spruce Street, Pueblo, Colorado 81004 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 officers of the city are directed and authorized to perform any and all acts consistent
with the intent of this Resolution and to effectuate the policies and procedures described herein.
SECTION 3.
This Resolution shall become effective upon final passage and approval.
INTRODUCED: November 10, 2014
BY: Eva Montoya
City Clerk’s Office Item # M-5
Background Paper for Proposed
RESOLUTION
COUNCIL MEETING DATE:
November 10, 2014
TO: Vice President Ami Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Ada Clark, Director of Housing and Citizen Services
SUBJECT: A RESOLUTION APPROVING AN AGREEMENT BETWEEN NEIGHBORHOOD
HOUSING SERVICES OF PUEBLO, INC., DBA NEIGHBORWORKS OF
PUEBLO, INC., A COLORADO NON-PROFIT CORPORATION AND THE CITY
OF PUEBLO, A MUNICIPAL CORPORATION, FOR THE CONVEYANCE OF
PROPERTY, AND AUTHORIZING THE PRESIDENT OF THE CITY COUNCIL
TO EXECUTE THE SAME
SUMMARY:
Attached is a Resolution for City Council consideration approving the transfer of property at
2709 Spruce Street to NeighborWorks of Pueblo for the development of affordable housing.
PREVIOUS COUNCIL ACTION:
There has been no previous Council action on this issue.
BACKGROUND:
This parcel was an improved parcel that was condemned by the Regional Building Department,
and ordered for demolition. The owners were unable to demolish the structure. Regional
Building forwarded this property to the City to be demolished under the Demolition Program,
which is funded with Community Development Block Grant (CDBG) funds. Properties
demolished under the Program are liened for the full cost of the demolition. This particular
property went into tax foreclosure and the Department of Housing and Citizen Services
exercised the tax lien at the tax sale.
The Department of Housing and Citizen Services (DHCS) has programmed the parcel for
single-family development. From time-to-time the DHCS has donated property to eligible non-
profits for the development of housing to meet the Five-Year Consolidated Plan. Past recipients
have been NeighborWorks, Posada, and Habitat for Humanity.
FINANCIAL IMPLICATIONS:
The implication to the DHCS in the short-term is that we will no longer be responsible for the
maintenance of the parcel (weeds and illegal dumping).
Under a separate resolution the City will provide HOME Investment Partnership Act grant funds to
NeighborWorks for the development of the property.
BOARD/COMMISSION RECOMMENDATION:
Not Applicable.
STAKEHOLDER PROCESS:
Not Applicable.
ALTERNATIVES:
If the Resolution is not approved, the property will remain in the City’s ownership, and DHCS will
continue to be responsible for the maintenance of the parcel (weeds and illegal dumping).
RECOMMENDATION:
Approval of the Resolution.
Attachments:
Property Disposal Agreement
Quit Claim Deed
re: Resolution 13099
Reception 1992829
12/22/2014 03:04:43 PM
QUIT CLAIM DEED
THIS QUIT CLAIM DEED ("Deed"), made on this 10th day of November, 2014, between the
City of Pueblo, a Municipal corporation ("Grantor"), and the Neighborhood Housing Services of
Pueblo, Inc., dba NeighborWorks of Pueblo, a Colorado Nonprofit Corporation ("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:
LOTS 27+28 BLK 34 MINNEQUA HEIGHTS,County of Pueblo, State of Colorado
Commonly known as: 2709 Spruce Street, 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 abov- -
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STATE OF COLORADO )
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Theforegoing instrument was acknowledged before me this 10th day of November, 2014 by
cS}p_lr f G. NOW)(Ockf , President of City Council and Gina Dutcher, City Clerk.
Witness my hand and official seal.
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SJEANETTE R. GONZALES
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20134016224
MY COMMISSION EXPIRES MARCH 29,2017
PROPERTY DISPOSAL AGREEMENT
THIS AGREEMENT is made and entered into this 10th day of November, 2014, by and
between the City of Pueblo, a Municipal Corporation, 200 S Main Street, Pueblo, Colorado,
81003 (the "City") and Neighborhood Housing Services of Pueblo, Inc., dba NeighborWorks of
Pueblo, a Colorado Nonprofit Corporation, 1241 E Routt Avenue, Pueblo, Colorado, 81004
("Disposal Agency").
WHEREAS, City holds a certain parcel of property, described more particularly in
paragraph 6 hereof(hereafter referred to as the "Property"); and
WHEREAS, the Property is presently owned by the City; and
WHEREAS, the Property is a vacant parcel of land and the City is not eligible for
participation in any of City's housing programs; and
WHEREAS, Disposal Agency represents that it is a community housing development
organization 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 or deeds 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 Property is "AS IS" and "WITH ALL FAULTS" and shall be in such form as the
City Attorney shall require.
2. With respect to the Property conveyed hereunder, Disposal Agency shall develop the
Property into a single family residence in accordance with one or more of Disposal Agency's
affordable home programs for use by low or moderate income persons.
3. All funds recovered by Disposal Agency from the sale or lease of Property, including
any funds received in repayment of principal and interest on any notes accepted in full or partial
payment of the purchase price of the Property, shall be retained by Disposal Agency and shall be
deemed net proceeds.
4. No property conveyed to Disposal Agency pursuant to this Agreement shall be resold
by Disposal Agency to any low or moderate income person for an amount exceeding the U.S.
Department of Housing and Urban Development's FHA maximum loan amount as established
yearly.
5. The parties acknowledge and agree that Disposal Agency is an independent contractor
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 contractors or arising from or related to Disposal Agency's use, reuse,
modifications, resale or leasing of the Property.
6. The Property is located in Pueblo County, Colorado and has the legal descriptions as
set forth below:
Description: LOTS 27 +28 BLK 34 MINNEQUA HEIGHTS, also known as
2709 Spruce Street, Pueblo, Colorado
7. 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 to be provided under
separate contract to the Disposal Agency 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.
8. Disposal Agency, and not City, shall be responsible for payment of any closing costs
whatsoever, in connection with the conveyance described in paragraph 1 of this Agreement.
9. 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.
10. Disposal Agency shall maintain records as to the use of the Property and the 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
15 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.
11. 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.
12. 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, and 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. 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 I 1 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.
13. 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.
14. 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.
15. 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_._
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City rk President of City Council
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ATTEST: NEIGHBORWORKS OF PUEBLO,
a Colorado Non-Profit Corporation
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Title: WtVII, Name: A--Jrc r:Arcrs
Title: Pres r co,
PROPERTY DISPOSAL AGREEMENT
THIS AGREEMENT is made and entered into this 10th day of November, 2014, by and
between the City of Pueblo, a Municipal Corporation, 200 S Main Street, Pueblo, Colorado,
81003 (the "City") and Neighborhood Housing Services of Pueblo, Inc., dba NeighborWorks of
Pueblo, a Colorado Nonprofit Corporation, 1241 E Routt Avenue, Pueblo, Colorado, 81004
("Disposal Agency").
WHEREAS, City holds a certain parcel of property, described more particularly in
paragraph 6 hereof(hereafter referred to as the "Property"); and
WHEREAS, the Property is presently owned by the City; and
WHEREAS, the Property is a vacant parcel of land and the City is not eligible for
participation in any of City's housing programs; and
WHEREAS, Disposal Agency represents that it is a community housing development
organization 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 or deeds 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 Property is "AS IS" and "WITH ALL FAULTS" and shall be in such form as the
City Attorney shall require.
2. With respect to the Property conveyed hereunder, Disposal Agency shall develop the
Property into a single family residence in accordance with one or more of Disposal Agency's
affordable home programs for use by low or moderate income persons.
3. All funds recovered by Disposal Agency from the sale or lease of Property, including
any funds received in repayment of principal and interest on any notes accepted in full or partial
payment of the purchase price of the Property, shall be retained by Disposal Agency and shall be
deemed net proceeds.
4. No property conveyed to Disposal Agency pursuant to this Agreement shall be resold
by Disposal Agency to any low or moderate income person for an amount exceeding the U.S.
Department of Housing and Urban Development's FHA maximum loan amount as established
yearly.
5. The parties acknowledge and agree that Disposal Agency is an independent contractor
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 contractors or arising from or related to Disposal Agency's use, reuse,
modifications, resale or leasing of the Property.
6. The Property is located in Pueblo County, Colorado and has the legal descriptions as
set forth below:
Description: LOTS 27 +28 BLK 34 MINNEQUA HEIGHTS, also known as
2709 Spruce Street, Pueblo, Colorado
7. 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 to be provided under
separate contract to the Disposal Agency 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.
8. Disposal Agency, and not City, shall be responsible for payment of any closing costs
whatsoever, in connection with the conveyance described in paragraph 1 of this Agreement.
9. 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.
10. Disposal Agency shall maintain records as to the use of the Property and the 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
15 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.
11. 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.
12. 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, and 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. 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 11 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.
13. 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.
14. 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.
15. 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 Corpor. 'o
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[SEAL]
ATTEST: NEIGHBORWORKS OF PUEBLO,
a Colorado Non-Profit Corporation
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