HomeMy WebLinkAbout13100RESOLUTION NO. 13100
A RESOLUTION APPROVING AN AGREEMENT BETWEEN
NEIGHBORHOOD HOUSING SERVICES, INC., DBA
NEIGHBORWORKS OF PUEBLO, INC., A COLORADO NON-
PROFIT CORPORATION 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 Agreement dated November 10, 2014 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, (“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 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 Agreement to effectuate the
transactions described therein.
SECTION 3.
This Resolution shall become effective immediately upon final passage.
INTRODUCED: November 10, 2014
BY: Chris Nicoll
City Clerk’s Office Item # M-6
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, AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
SUMMARY:
Attached is a Resolution for City Council consideration approving a CHDO Agreement with
NeighborWorks of Pueblo for the development of affordable housing.
PREVIOUS COUNCIL ACTION:
There has been no previous Council action on this issue.
BACKGROUND:
The City of Pueblo receives a yearly allocation of HOME funds. As part of the allocation there is a
mandatory set-aside for Community Housing Development Organizations (CHDO); fifteen-percent
(15%) must be set-aside for these agencies. The set-aside funds if not allocated to an eligible
CHDO are recaptured by HUD. The DHCS published in the Pueblo Chieftain a notification of
funding availability and that it was accepting applications for the recertification of CHDOs.
NeighborWorks of Pueblo, Inc., applied for recertification and funding. The agency qualifies as an
eligible CHDO under the new HOME Rule (June 2013) federal guidelines. Therefore the City
wishes to enter into an Agreement with NeighborWorks to develop and rehabilitate affordable
housing units within the City limits. Under the Agreement the City would provide $614,000 in
HOME funds for the proposed development.
The Project will consist of the rehabilitation of a 4-unit multi-family rental complex currently owned
by the Agency. The rental units will remain affordable for a minimum of 15-years. Household
income and maximum rents will be established each year by HUD. The new construction of two
new single-family for-sale properties will occur on a vacant lot currently owned by the Agency and
on a vacant lot currently owned by the City, if the transfer is approved by Council. The units will
be restricted to low- and moderate-income families. The for-sale properties will also be limited to
HOME eligible low- and moderate income families.
FINANCIAL IMPLICATIONS:
The funding is available in the 251 Fund. HOME funding that is not spent within the expenditure
period, whether CHDO or entitlement funding will be recaptured by HUD.
BOARD/COMMISSION RECOMMENDATION:
Not applicable.
STAKEHOLDER PROCESS:
Not applicable.
ALTERNATIVES:
If the City chooses to enter into this Agreement it must be with an eligible CHDO. No other non-
profit applied for CHDO recertification nor applied for project funding. Therefore, if this
resolution is denied, funds will be de-obligated.
RECOMMENDATION:
Approval of the Resolution.
Attachments:
Affordable Housing Development Agreement
WHEREAS, the City is duly authorized to enter into this Agreement for and on behalf of
the Consortium and to undertake all actions required by this instrument;
NOW, THEREFORE, in consideration of the foregoing recitals and the covenants, terms
and conditions set forth herein,the parties agree as follows:
1. DEVELOPER SERVICES.
(a) Developer shall, directly or indirectly, in accordance with all applicable federal,
state and local laws and regulations, undertake the rehabilitation of a four (4) unit affordable
housing project, the construction of two (2) single-family for-sale projects, and the clearance and
demolition of a substandard single-family home, with all of the housing units being assisted
hereunder, in furtherance of the Consortium's housing strategy and as approved by the City. The
affordable housing projects, as described herein, may be referred to as the "NeighborWorks
Affordable Housing Program" or the "Project". Developer may undertake same as the Project
sponsor with ownership of the Project to be held by either the Developer or by a limited liability
partnership or limited liability limited partnership in which Developer acts as the sole general
partner, or by a limited liability company in which Developer is the managing member.
Developer shall satisfactorily perform and complete, or cause to be performed and completed, all
services and items of work, and the furnishing of all labor and materials encompassed within or
reasonably necessary to construct all of the improvements for the Project, and accomplish the
tasks and functions described in the Scope of Services attached hereto as Exhibit "A" and
incorporated herein by reference, in full compliance with all of the provisions of this Agreement.
Before proceeding with the Project, Developer shall furnish City with all reasonable information
which City may request concerning the Project, execute all certifications, security instruments
required by this Agreement and applicable laws and regulations, demonstrate eligibility of the
Project for assistance under this Agreement and the Act, and obtain the written approval of
City's authorized representatives as to the Project, which approval will not be unreasonably
withheld.
(b) Developer warrants and represents that (i) it has the requisite authority and
capacity to perform all terms and conditions on Developer's part to be performed hereunder; (ii)
that it is duly organized as a nonprofit corporation under the laws of the State of Colorado; (iii)
that it is aware of and understands its duty to perform all functions and services in accordance
with the regulatory requirements of 24 CFR Part 92 and those identified in Exhibit "C" hereto;
and (iv) that it is accepting federal financial assistance hereunder subject to certain mandatory
repayment provisions.
(c) Time is of the essence hereof. Developer agrees that it shall meet the following
deadlines with respect to the Project:
(i) Developer shall obtain satisfactory evidence that it or the Owner of the
Project has the financial ability to undertake, rehabilitate and develop the Project,
including proof that it has secured funds necessary, obtained loan commitments for any
construction loan(s) needed for financing for the Project, and furnish such evidence to
City, on or before December 10, 2014.
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(ii) Developer or Owner shall obtain all required funds and loans on or before
December 10, 2014;
(iii) Developer or the Project Owner shall commence rehabilitation and
construction and demolition of the Project not later than December 10, 2014;
(iv) Developer or the Project Owner shall substantially complete all elements
of the Scope of Service of the Project not later than November 10, 2015; and
2. ROLE AND RESPONSIBILITIES OF THE CITY.
Under this Agreement, the City is acting on behalf of the Consortium. Notwithstanding
the foregoing, all obligations of Developer under this Agreement shall run directly to City and be
fully enforceable by City and in the name of the City. The City shall designate a representative
of the City who will be authorized to make all necessary decisions required of the City on behalf
of the City in connection with the performance of this Agreement, approval of the Project to be
undertaken by Developer hereunder and the disbursement of funds in connection therewith. In
the absence of such a designation, the City Manager shall be deemed as City's authorized
representative.
3. FINANCIAL ASSISTANCE AND METHOD OF PAYMENT.
(a) Upon execution of all documents required by City, the City will grant to
Developer an amount up to that specified in paragraph (c) of this section as the public investment
in the Project assisted under this Agreement. Disbursement of funds to Developer is subject to
all of the following requirements, which shall be conditions precedent to payment: (i) that
Developer or the Owner of the Project has expended funds after August 15, 2014 for eligible
approved expenditures with respect to the Project, (ii) that neither Developer nor the Owner is in
default of any material provision of this Agreement nor applicable law or regulation, (iii) that
Developer has timely submitted requests for disbursement detailing the eligible draw-down items
in a format approved by City, (iv) that Developer has certified with each payment or loan draw-
down request compliance with the requirements identified in Exhibit "C" and that all
expenditures for which draw-down is sought were made for and in furtherance of the Project and
are an eligible use of federal assistance under the Act, and (v) that City has timely received from
HUD sufficient federal assistance under the Act to pay the disbursement hereunder.
(b) Payment hereunder is also subject to and may only be disbursed in accordance
with HUD regulations including but not limited to those at 24 CFR Part 92, as presently
promulgated and as same may be revised from time to time in the future. All payments received
by Developer hereunder are subject to repayment by Developer as provided in 24 CFR Part 92.
Funds provided hereunder for Project may only be used for development hard and soft costs, as
provided in 24 CFR 92.205(d) and 92.206(a) and (c).
(c) The aggregate of all payments made hereunder shall not exceed Six-Hundred
Fourteen Thousand and No/100 Dollars (U.S. $614,000.00).
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(d) Upon expiration of the term of this agreement or upon any prior termination,
Developer shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder.
4. TERM OF AGREEMENT; SECURITY.
(a) Unless sooner terminated, the term of this Agreement, for purposes of making the
grant and undertaking the construction and completion of the Project, shall be from the date of
execution hereof until July 28, 2015; provided however, that with the respect to the Project for
which Developer has received financial assistance under and during the term of this Agreement,
Developer and the Owner of the Project shall have continuing responsibility to comply with the
performance, certifications, repayment, affirmative marketing, housing affordability compliance
and recordkeeping requirements of this Agreement, and 24 CFR Part 92 (including, without
limitation 24 CFR Sections 92.252, 92.254, 92.301, 92.351 and 92.508) which shall survive
expiration or termination and remain in effect throughout the required full period of affordability,
notwithstanding any prior termination or expiration of this Agreement. As used herein, "period
of affordability" shall comply with the per unit subsidy requirements outlined in Exhibit A —
Scope of Services, which shall commence at the time of completion of each of the elements of
the Project except that if the assistance provided hereunder is used in connection with other
financing insured by HUD under Chapter II of Title 24, Code of Federal Regulations, the period
of affordability shall be the full original term of said mortgage or 15 years, whichever is longer.
(b) (i) The full amount of grant assistance provided to Developer for the Project
pursuant to this Agreement shall constitute an indebtedness of the Owner to Developer which
shall be evidenced by a promissory note (hereinafter referred to as the "Promissory Note" or
"Note") which shall be due and payable with interest as provided therein and which shall be
secured by the following described real property situate in the County of Pueblo, State of
Colorado(the "Property"):
• Lots 27+28 Blk 34 Minnequa Heights, also known as 2709 Spruce Street, Pueblo,
Colorado 81004
• Lot 13 and South 35 Foot Lot 14, Block 43, Bessemer, also known as 1 141 Pine Street,
Pueblo, Colorado 81004
• Lots 6 and 7, Block 45, Stone and Thatcher Subdivision, also know as 1 1 14 Cypress
Street, Pueblo, Colorado 81004
as evidenced by a Deed of Trust to be executed contemporaneously with said Promissory Note.
The loan instruments shall require the Owner to pay to Developer or holder the indebtedness as
and to the extent same becomes due under the provisions of the Promissory Note and this
Agreement. Developer shall include terms in said Promissory Note or Deed of Trust stating that
the amount of the assistance shall continue as an indebtedness until paid in full, and
notwithstanding such payment in full, the affordability restrictions described in this Agreement
shall continue in effect and be enforceable for the full period of affordability without regard to
the term specified in the Note or Deed of Trust for repayment.
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(ii) In order to secure the affordability provisions and other requirements of
this Agreement, City may, at any time, require an assignment and transfer of said Note and Deed
of Trust to City.
(c) During the full Term of this Agreement and for the period of affordability, (i) any
failure by the Owner or Developer to perform any obligation, covenant or provision of the Note
or this Agreement required to be performed by the Owner or Developer, or(ii) any breach of any
warranty made by Developer in this Agreement, or (iii) any other violation of any material term
of this Agreement or the Deed of Trust given to secure the Note, shall constitute a default under
this Agreement. Upon any such default, the City may demand that Developer repay to City the
full amount of assistance provided hereunder, plus interest at the rate of 2% per annum from and
after the date of such default. Developer further agrees that no release of any security for the
indebtedness or extension of time for payment of same, or any installment thereof, and no
alteration, amendment or waiver of any provision of the Note or the Deed of Trust securing same
shall in any manner, release, discharge, modify or affect the obligations of Developer under this
Agreement.
5. TERMINATION OF AGREEMENT.
(a) For Cause. This Agreement may be terminated by City for cause, including any
nonperformance by Developer, upon ten (10) days written notice to Developer including a
statement of the reasons therefor, and after an opportunity for a hearing has been afforded. If a
hearing is requested, it shall be held before the City's Director of Housing and Citizen Services
whose decision as to both the grounds for termination and the appropriateness thereof shall be
final and binding upon both City and Developer. In accordance with 24 CFR 85.43, cause for
termination shall include any material failure by Developer to comply with any term of this
Agreement.
(b) For Convenience. This Agreement may be terminated for convenience in
accordance with the provisions of 24 CFR 85.44. This Agreement shall terminate immediately
upon any non-appropriation of funds, or upon any suspension or non-receipt of federal assistance
provided to City under the Act, regardless of cause.
(c) Post Termination Procedures. In the event of termination, Developer shall
continue to be responsible for those matters which survive termination identified in paragraph 4
above, unless City takes over the Project and, in connection therewith, prospectively releases
Developer from one or more specific responsibilities in writing. Additionally, at City's sole
option, all property acquired by Developer with grant funds, all grant funds, program income,
and mortgage loans originated with grant funds or by payments therefrom and payments received
under such mortgage loans, held, owned or retained by Developer shall immediately become the
sole and separate property of the City and Developer shall perform all acts and execute all
instruments necessary to transfer and assign such property, funds, income, and mortgage loans to
City. All finished or unfinished documents, data, studies reports and work product prepared by
Developer or its agents and assigns under this Agreement or with grant funds shall, at the option
of the City, become its property and Developer shall be entitled to received just and equitable
compensation only for satisfactory work completed and eligible costs for which compensation
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has not previously been paid nor reimbursement made.
6. ASSIGNABILITY.
This Agreement shall not be assigned or transferred by Developer without the prior
written consent of the City; provided however, that this limitation shall not be construed to
prohibit Developer from undertaking activities under this Agreement through a Project Owner
meeting the requirements of Section 1(a) of this Agreement. Any assignment or attempted
assignment made in violation of this provision shall, at City's election, be deemed void and of no
effect whatsoever.
7. CONFLICT OF INTEREST.
HOME Regulation 24 CFR, Part 92.356 is incorporated herein by reference, and sets
forth applicable laws and regulations that apply to Conflict of Interest. Developer shall avoid all
conflicts prohibited by 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. DEVELOPER RECORDKEEPING.
Developer shall maintain, and shall require the Owner to maintain, records as to the
Project work and activities undertaken with assistance hereunder, services provided,
reimbursable expenses incurred in connection with the Project and complete accounting records.
Accounting records shall be kept on a generally recognized accounting basis and as requested by
the City's auditor. Developer agrees to comply with all applicable uniform administrative
requirements described or referenced in 24 CFR Part 92. The compliance provisions attached as
Exhibit "B" hereto are made a part of this Agreement, and Developer agrees to perform and
comply with same, and shall require the Owner to do likewise. 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 Developer and the Owner which relate to this
Agreement for the purpose of making an audit or examination. Upon completion of the work
and end of the term of this Agreement, the City may, at any time during the period of
affordability or within 5 years thereafter, require all of Developer's and the Owner's financial
records relating to this Agreement to be turned over to the City.
9. MONITORING AND EVALUATION.
The City shall have the right to monitor and evaluate the progress and performance of
Developer 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 shall at least quarterly review Developer's performance using on-site visits,
progress reports required to be submitted by Developer, audit findings, disbursement transactions
and contact with Developer as necessary. Developer shall furnish to the City monthly or
quarterly program and financial reports of its activities in such form and manner as may be
requested by the City. Developer shall fully cooperate with City relating to such monitoring and
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evaluation.
10. DEVELOPER FILES AND INFORMATION REPORTS.
Developer shall maintain files containing information which shall clearly document all
activities performed in conjunction with this Agreement, including, but not limited to, financial
transactions, conformance with assurances, activity reports, and program income. These records
shall be retained by Developer for a period of five years, except that with respect to the Project
undertaken with assistance provided hereunder, such records shall be maintained for the full
required period of affordability. Activity reports shall be submitted monthly or quarterly no later
than the ninth day of the month following the end of month or quarter for which the report is
submitted.
11. INDEPENDENCE OF DEVELOPER.
Nothing herein contained nor the relationship of Developer to the City, which
relationship is expressly declared to be that of an independent contractor, shall make or be
construed to make Developer or any of Developer's agents or employees, or the Owner, the
agents or employees of the City. Developer shall be solely and entirely responsible for its acts
and the acts of its agents, employees and subcontractors.
12. LIABILITY & INSURANCE.
(a) As to the City, Developer 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 Developer or by the conditions created
thereby. Developer further agrees to indemnify and save harmless the City, its officers, agents
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 Developer or out of any
violation by Developer of any statute, ordinance, rule or regulation.
(b) Developer agrees that it shall procure and will maintain during the term of this
Agreement, such insurance as will protect it from claims under workers' compensation acts,
claims for damages because of personal injury including bodily injury, sickness or disease or
death of any of its employees or of any person other than its employees, and from claims or
damages because of injury to or destruction of property including loss of use resulting therefrom;
and such insurance will provide for coverage in such amounts as set forth in subparagraph (c).
(c) The minimum insurance coverage which Developer shall obtain and keep in force
is as follows:
(i) Workers' Compensation Insurance complying with statutory requirements
in Colorado.
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(ii) Comprehensive General and Automobile Liability Insurance with limits
not less than Six Hundred Thousand and No/l00 Dollars ($600,000.00) per person and
occurrence for personal injury, including but not limited to death and bodily injury, and Six
Hundred Thousand and No/100 Dollars ($600,000.00) per occurrence for property damage.
(d) Developer further agrees that it shall procure and maintain, or require the Owner
of the Project to procure and maintain, at Developer's or the Owner's expense, hazard and fire
insurance upon the property described in the Deed of Trust on an "all risk" form in such amounts
as City's Department of Housing and Citizen Services may require, but in any event, for not less
than the amount of all liens against the property and the amount of funds provided to Developer
by City pursuant to this Agreement. Developer shall furnish a certificate of insurance certifying
such coverage to City's Director of Finance prior to disbursement of any funds to Developer.
Both said certificate of insurance and the policy procured by the Owner shall name the City as an
additional loss payee.
13. CERTIFICATIONS.
Developer agrees to execute and abide by the certifications contained in Exhibit "C"
hereto, which are hereby expressly made a part of this Agreement.
14. PROGRAM INCOME; PROJECT PROCEEDS; REVERSION OF ASSETS
(a) (i) NeighborWorks of Pueblo, as a certified Community Development
Housing Organization (CHDO) is operating as the developer of this Project, as such, income
received from the sale or rental of these properties are considered proceeds and not program
income, as defined in 24 CFR 92.2. The Developer is authorized to retain proceeds and no
restrictions apply to the use of the funds.
(b) Upon expiration of the term of this Agreement, or upon any prior termination,
Developer shall transfer to City any funds provided hereunder which are on hand at the time of
expiration or termination together with any accounts receivable attributable to the use of funds
provided hereunder.
(c) The Project, the Property, and any other real property acquired, rehabilitated,
constructed or improved in whole or in part with funds provided pursuant to this Agreement shall
be used as affordable housing within the meaning of 24 CFR 92.252 for the full period of
affordability as defined in paragraph 4 hereof. In the event the Project, the Property or such
other property ceases to be so used, Developer shall immediately pay to City the greater of(i) an
amount equal to the current market value of the Project and Property less any portion of the
value attributable to expenditures of funds not provided under this Agreement for the
construction of the Project or acquisition of, or improvement to, the Property (that is, the
calculation of the portion of value attributable to expenditures not provided by City under this
agreement shall be the market value multiplied by a fraction whose numerator is the total Project
cost or costs of acquisition determined as of the date of Project completion less the amount of
assistance provided by City and whose denominator is the total Project cost or cost of acquisition
determined as of the date of Project completion) or, (ii) the remaining principal balance and
accrued interest owing under the Note. The use restriction and repayment obligation set forth in
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this subparagraph shall survive termination or expiration of this Agreement and shall be fully
enforceable and subject to collection by City or HUD in accordance with applicable laws.
(d) In the event City incurs any cost or expense in enforcing the requirements of this
Agreement, including but not limited to the requirements of this paragraph 14, or in bringing any
action to recover the amount of any repayment obligation, or, upon assignment of the Note and
the Deed of Trust to City, to foreclose or obtain sale under the Deed of Trust or mortgage
instrument, City shall be entitled to recover its costs and expenses, including reasonable
attorneys fees.
(e) To further ensure that the funds provided hereunder do not constitute an
investment of more HOME funds than are necessary to provide affordable housing (as required
by 24 CFR 92.250(b)), Developer shall retain ownership of the Project for a period of not less
than the term required under the HOME Rule, and as omitted in the scope of services from and
after the completion of the Project. Consequently, in the event the Developer should sell or
transfer title to the Project, the Property or other real property or improvements constructed or
improved with funds provided pursuant to this Agreement, within affordability period after
substantial completion of the Project or said improvements, the Loan Agreement, Note and Deed
of Trust shall provide that the entire indebtedness under the Note shall immediately become due
and payable and repaid to City, together with interest thereon at the rate of 2% per annum from
the time of substantial completion until said repayment is made.
(f) It is the intent of the parties that §38-30-165, C.R.S. and any similar statute
hereafter enacted, be preempted under federal law and regulations in order to maintain
affordability of the rental units within the Property. Consequently, the Loan Agreement between
Developer and the Owner and the Note and Deed of Trust executed by the Owner (collectively,
the Loan Documents) shall not be assumable, and the indebtedness shall be due and payable
upon sale, transfer or assignment, or any attempted sale or transfer of the Property by the Owner,
unless all of the following circumstances are demonstrated to exist: (i) more than 15 years have
elapsed since the substantial completion of the Project, (ii) the sale of the Property is to a
subsequent purchaser who agrees in writing to comply with the affordability requirements of this
Agreement and applicable requirements, including those set forth at 24 CFR, §92.252, (iii) the
sale price and payment of principal, interest, property taxes and insurance by the subsequent
purchaser must permit the rental units to remain affordable for the remaining period of
affordability specified in this Agreement, with affordability determined by applicable regulations
and requirements, and (iv) both the City and the holder of the Note expressly consent to
assumption of the Owner's obligations under the loan agreement and the Note by the subsequent
purchaser prior to sale or transfer, which consent shall be granted only upon the Owner's
showing circumstances (i)through (iii) have or will be satisfied.
(g) Notwithstanding anything to the contrary in this Agreement or the Loan
Documents, the Owner may transfer its interest in the Project and the Property to developer§
without prior consent from the City.
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15. SPECIAL REQUIREMENTS APPLICABLE TO IMPROVEMENTS TO
PROPERTY.
(a) In addition to all procurement requirements otherwise applicable to the Project
pursuant to any other provision of this Agreement or pursuant to any requirement of law or
regulation incorporated in this Agreement by reference, Developer shall comply with all
requirements of this Paragraph 15.
(b) No construction work or improvements shall be undertaken to the Property or
other real property with funds (or reimbursement) provided hereunder unless and until: (i) plans
and specifications therefor have been prepared by either a registered Professional Engineer in
good standing and duly licensed to practice in the State of Colorado or an Architect duly licensed
and authorized to conduct a practice of architecture in the state of Colorado, except that if the
nature of the work does not ordinarily require plans or specifications prepared by an engineer or
architect, this requirement may be waived in writing by City's Director of Housing and Citizen
Services; (ii) such plans and specifications have been filed with the City and approved by both
the City's designated representative and the City's Director of Public Works; and (iii) all
construction contracts for improvements for which funds are provided from City shall have been
awarded only after an open, competitive bidding process which has been approved by City's
Director of Purchasing and which allows qualified contractors to reasonably participate in the
competitive bidding procedures; provided, however, that the open competitive bidding process
required herein need not follow the City's procurement requirements for City improvements.
Developer may submit its proposed bidding process to the City for review and approval or
disapproval prior to receipt of any funds hereunder.
(c) No disbursement of funds to Developer shall be made by City hereunder unless
and until all conditions precedent to payment specified elsewhere in this Agreement have been
satisfied and Developer files with City's Director of Housing and Citizen Services a written
request for payment signed by an officer of Developer that certifies (i) that the amounts included
in the request for payment have not been included in any prior request for payment, (ii) that the
improvements listed therein for which payment is sought have been completed in accordance
with the approved plans and specifications therefor, and (iii) that the improvements for which
payment is sought have been constructed so as to comply with City of Pueblo building codes and
Section 8 Housing Quality Standards.
(d) Every contract for construction of improvements, and all lower tier covered
transactions, shall include a requirement that the contractor, subcontractor or vendor certify that
neither it nor its principal is debarred, suspended, proposed for debarment, declared ineligible or
voluntarily excluded from participation in any federally funded project.
(e) Developer shall, provide for relocation assistance to persons displaced as a result
of the Project, if any, in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended, and applicable implementing regulations.
Relocation expenses are an eligible use of Project funds.
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16. RECOGNITION OF HUD, CITY.
In all printed materials, Project descriptions and other activities undertaken with funds
provided under this Agreement, Developer shall provide recognition that funds have been
provided by the U.S. Department of Housing and Urban Development and the City of Pueblo.
Recognition shall be accomplished by prominent disclosure of the role of HUD and the City in
all such printed materials and Project signage, if any.
17. ENTIRE AGREEMENT; AMENDMENTS.
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 Developer and City.
18. SIGNATURES.
The persons signing this Agreement on behalf of Developer represent and warrant that
such persons and Developer 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
Developer enforceable against Developer in accordance with its terms.
IN WITNESS WHEREOF, Developer 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 Mu.' 'pa •
: •. .4
City rk President of City Council
[SEAL]
ATTEST: NEIGHBORWORKS OF PUEBLO,
a Colorado Non-Profit Corporation
11
Title: =WI' Name: El
Ll t"A. ccci
Title: '2.r
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EXHIBIT A
SCOPE OF SERVICES
Developer, Inc. will undertake the following activities to be known as the "Project", which shall
be in compliance with all codes and regulations under 24CFR Part 92, and the certification found
in Exhibit C
I. Activity One — Rehabilitation of Four Units of Rental Housing (15-year affordability
period)
a. 1 141 Pine Street, Pueblo, CO. 81004
i. Scope of Rehabilitation:
1. Required ADA accessibility to units and common areas.
2. Health and safety requirements.
3. Housing code requirements.
4. Upgrade of appliances as required.
5. Parking requirements.
6. Landscaping of common areas.
II. Activity Two— Infill New Construction (5-year affordability period)
a. 1 1 14 Cypress Street and 2709 Spruce Street. Pueblo, CO. 81004
1. The construction of two for-sale single-family houses.
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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.
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EXHIBIT C
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
sem.) 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
sm.), 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)];
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(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. 4700; 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.
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(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.
A
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Signature .
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