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City Clerk’s Office Item # R-6
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: June 27, 2022
TO: President Heather Graham and Members of City Council
CC: Nicholas A. Gradisar, Mayor
VIA: Marisa Stoller, City Clerk
FROM: Bryan Gallagher, Director, Housing and Citizen Services
SUBJECT: AN ORDINANCE APPROVING AN AFFORDABLE HOUSING DEVELOPMENT
AGREEMENT AND RELATED DOCUMENTS BETWEEN CRAWFORD
TOWNHOMES, LLLP, A COLORADO LIMITED LIABILITY LIMITED
PARTNERSHIP, THE HOUSING AUTHORITY OF THE CITY OF PUEBLO, A
PUBLIC BODY CORPORATE AND POLITIC, AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND AUTHORIZING THE MAYOR TO EXECUTE
SAME
SUMMARY:
This Ordinance approves the City of Pueblo’s Affordable Housing Development Agreement with
Crawford Townhomes, LLLP, and the Housing Authority of the City of Pueblo for the development
of a forty-nine (49) unit affordable housing rental project known as Crawford Townhomes.
PREVIOUS COUNCIL ACTION:
The City Council has not taken any previous action on this matter.
BACKGROUND:
In October of 2021, the Department of Housing and Citizen Services issued a Notice of Funding
Availability (NOFA) for the HOME Program. The Housing Authority (dba Crawford MM, LLC)
applied for HOME funds for the development of a 49-unit rental project to be known as Crawford
Townhomes. HOME funds will assist five (5) of the units. This Project is part of multiple phased
project to replace the Sangre de Cristo public housing complex. The Project will serve households
at 30-60% of the area median income (AMI). Fifty-one percent (51%) of the units are designated
for residents with incomes at 30% of AMI. This is a HUD Rental Assistance Demonstration Grant
(RAD) sponsored project, and as such, existing residents at Sangre de Cristo will have preference
in the unit rentals. The RAD contract will provide a project base rental subsidy to the units within
the development for those households whose monthly income is not sufficient to pay market rate
rent. As a rule and per HUD guidelines, a household paying more than 30% of their monthly
income on rent is considered rent burdened.
Project costs are approximately $23.3 million, and are being funded through multiple sources:
1. JP Morgan Construction Loan $ 13,630,000
2. RBC LIHTC Equity Funding $ 12,351,265
3. Colorado Division of Housing Grant $ 3,430,000
4. CHFA SIMPLE Permanent Loan $ 3,000,000
5. CHFA Capital Magnet Fund Permanent Financing $ 400,000
6. CHFA Capital Magnet Fund Grant $ 350,000
7. HACP HUD Capital Funds Loan $ 1,800,000
8. HACP Other Funds Loan $ 1,584,452
9. HACP Deferred Developer Fee $ 250,000
10. HACP Property Loan $ 140,000
11. City of Pueblo HOME Loan and HOME Match $ 500,000
12. Pueblo County HOME Grant $ 304,260
RBC Community Investments, LLC will provide $12,351,265 in capital contributions to Crawford
Townhomes, LLLP as an equity partner throughout the project. This is the low-income housing
tax credit limited partner contribution. In return for the contribution, the limited partner is eligible
to receive a $1,350,000 tax credit, annually, for ten years. Issuance of the credit by CHFA is
contingent upon the developer operating the project within federal program requirements.
FINANCIAL IMPLICATIONS:
The City HOME contribution is available in the 251 Fund, and is comprised of HOME grant funds,
program income, and City match contributions.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
If this HOME Loan is not made, the Affordable Housing Project will have to procure additional
funding or fail.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
Attachment 1: City of Pueblo Affordable Housing Development Agreement
Attachment 2: Deed of Trust
Attachment 3: Promissory Note
Attachment 4: JP Morgan Subordination Agreement
Attachment 5. CHFA Subordination(s)
Attachment 6: CHFA Land Use Restrictive Agreement
ORDINANCE NO. 10217
AN ORDINANCE APPROVING AN AFFORDABLE HOUSING
DEVELOPMENT AGREEMENT AND RELATED DOCUMENTS
BETWEEN CRAWFORD TOWNHOMES, LLLP, A COLORADO
LIMITED LIABILITY LIMITED PARTNERSHIP, THE HOUSING
AUTHORITY OF THE CITY OF PUEBLO, A PUBLIC BODY
CORPORATE AND POLITIC, AND THE CITY OF PUEBLO, A
MUNICIPAL CORPORATION, AND AUTHORIZING THE MAYOR
TO EXECUTE SAME
WHEREAS, there exists a need for affordable housing in the City of Pueblo; and
WHEREAS, there exists a need to update the existing public housing known as the Sangre
de Cristo Apartments, located at 2601 Sitter Place, and construct new affordable housing; and
WHEREAS, the City of Pueblo receives HOME Investment Partnership Grant funds from
the U.S. Department of Housing and Urban Development for the creation and retention of
affordable housing; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
The City of Pueblo Affordable Housing Development Agreement between Crawford
Townhomes, LLLP, a Colorado limited liability limited partnership, the Housing Authority of the
City of Pueblo, a public body corporate and politic, and the City of Pueblo, a Municipal
Corporation, (the “Agreement”) for the development of affordable housing, and the associated
documents, specifically the promissory note, deed of trust, and subordination agreements, (the
“Documents”) copies of which are attached hereto and incorporated herein, having been
approved as to form by the City Attorney, are hereby approved.
SECTION 2
The $500,000.00 in loan funds are available in Fund 251 and will be dedicated to this
Agreement and the associated project.
SECTION 3
The Mayor is hereby authorized to execute the Agreement and the associated Documents
as needed and upon closing of the transaction in the name and on behalf of the City of Pueblo,
where the Mayor may execute the Agreement and Documents by electronic signature and such
electronic signature shall be attributable to the Mayor and the City of Pueblo.
SECTION 4
The Mayor is hereby authorized to execute the construction and permanent financing
subordinations to JP Morgan Chase and CHFA, respectively, included within the Documents,
when requested and in the name and on behalf of the City of Pueblo, where the Mayor may
execute the subordinations by electronic signature and such electronic signature shall be
attributable to the Mayor and the City of Pueblo.
SECTION 5
The Mayor is hereby authorized to execute the CHFA Land Use Restriction Agreement
(“LURA”) included within the Documents upon close out of the construction project and in the
name and on behalf of the City of Pueblo, where the Mayor may execute the LURA by electronic
signature and such electronic signature shall be attributable to the Mayor and the City of Pueblo.
SECTION 6
The officers and staff of the City are authorized to perform any and all acts consistent with
the intent of this Ordinance and the attached Agreement and Documents to implement the
transactions described therein.
SECTION 7
If any section, paragraph, clause, or provision of this Ordinance shall for any reason be
held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph,
clause, or provision shall not affect any of the remaining provisions of this Ordinance.
SECTION 8.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on June 27, 2022 .
Final adoption of Ordinance by City Council on July 11, 2022 .
President of City Council
Action by the Mayor:
☒ Approved on July 13, 2022 .
□ Disapproved on based on the following objections:
_
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
out said project, and City is willing to allocate federal funds as a loan to Owner for investment in
housing to be developed, sponsored, or assisted by Developer which will comply with and fulfill
said approved elements of City's housing strategy; and
WHEREAS, Developer has applied for and received from the Colorado Housing and
Financing Authority a preliminary reservation of Federal Low-Income Housing Tax Credits in the
amount of$13,500,000.00 for allocation to Developer's project upon placement of the housing in
service; and
WHEREAS, Developer warrants and guarantees that as of the date of execution of this
Agreement, all necessary financing has been secured, a budget and schedule has been established,
underwriting has been completed, and construction is scheduled to start within twelve months of
the agreement date in accordance with the definition of"commit to a specific local project," 24
C.F.R. § 92.2; and
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 construction of a new forty-nine (49) unit
affordable housing project for low to moderate income households, with five (5) of the housing
units being assisted hereunder (the "HOME Units"), in furtherance of the Consortium's housing
strategy and as approved by the City. The affordable housing project, as described herein, may be
referred to as the "Crawford Townhomes Project" 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 or its
affiliate acts as the sole member of the general partner, or by a limited liability company in which
Developer is the sole member of 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. Upon project completion, the HOME Units must meet
or exceed the minimum property standards required by 24 CFR 92.251. Owner must continue to
maintain the HOME Units in compliance with 24 CFR 92.251 during the period of affordability.
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(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 public housing authority under the laws of the State of Colorado, including but
not limited to the Colorado Housing Authority Law, as amended, C.R.S. § 29-4-201 et seq. (Vol.
9, 2000); (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 the exhibits
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 the Owner has the
financial ability to undertake and construct the Project, including proof that it has secured
approval for tax credits,obtained loan commitments for a construction loan and the primary
loan permanent financing for the Project, and furnish such evidence to City, on or before
July 21, 2022.
(ii) Developer shall obtain commitments for all required loans on or before July
21, 2022;
(iii) Developer shall commence construction of the Project not later than August
15, 2022;
(iv) Developer shall substantially complete construction of the Project not later
than January 15, 2024; and
(v) Lease-up of the Project shall be accomplished by not later than July 15,
2024.
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 Mayor 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 loan to Owner an
amount up to that specified in subparagraph (c) of this section as the public investment in the
Project assisted under this Agreement. Disbursement of funds to Owner is subject to all of the
following requirements, which shall be conditions precedent to payment: (i) that Owner has
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expended funds after July 21, 2022 for eligible approved expenditures with respect to the Project,
(ii) that neither Developer nor Owner are in default of any material provision of this Agreement
nor applicable law or regulation,(iii) that either Developer or Owner has timely submitted requests
for disbursement detailing the eligible draw-down items in a format approved by City, (iv) that
either Developer or Owner has certified with each payment or loan draw-down request compliance
with the requirements identified in Exhibits "C" and"D" 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. Neither Developer nor Owner may
request disbursement of funds under the Agreement until the funds are needed for payment of
eligible costs, and the amount of each request must be limited to the amount needed.
(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 Owner
hereunder are subject to repayment by Owner, where Owner shall repay all funds that City as a
participating jurisdiction would be required to repay as provided in 24 CFR Part 92. If the HOME
Units do not meet the affordability requirements or have not been rented to eligible tenants in
accordance with Exhibit "A", such failures shall be a default of this Agreement, any related loan
agreement, and the deed of trust (hereinafter referred to as the "Deed of Trust"), and all HOME
funds must be returned to City. In case of such default, City may pursue remedies through this
Agreement, loan agreements, including any promissory note (hereinafter referred to as the
"Promissory Note" or "Note"), and/or the Deed of Trust. Funds provided hereunder for Project
may only be used for development costs, as provided in 24 CFR 92.205(d) and 92.206(a), (c) and
(d), where such costs can be separated, and funds are only applied to the HOME Units designated
for the affordable housing project. Funds committed hereunder meet the requirements of"commit
to a specific local project" under 24 CFR 92.504 and 24 CFR 92.2.
(c) The aggregate of all payments made hereunder shall not exceed Five Hundred-
Thousand and No/l00 Dollars (U.S. $500,000.00).
(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
loan and undertaking the construction and completion of the Project, shall be the Effective Date
through the period of affordability, which is estimated to end January 15, 2044; provided however,
that with the respect to the Project for which Developer and Owner have received financial
assistance under and during the term of this Agreement, Developer and Owner shall have
continuing responsibility to comply with the performance, certifications, repayment,
nondiscrimination, affirmative marketing, displacement, relocation, acquisition, labor, conflict of
interest, housing affordability compliance, recordkeeping, and other requirements of this
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Agreement, and 24 CFR Part 92 (including, without limitation 24 CFR Sections 92.251, 92.252,
92.350, 92.351, 92.353, 92.354, 92.356, 92.359, 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 mean 20 years from the completion 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 20 years, whichever is longer.
(b) (i) The full amount of loan assistance provided to Developer and Owner for the Project
pursuant to this Agreement shall constitute an indebtedness of the Owner to City which shall be
evidenced by the Promissory Note which shall be due and payable with interest as provided therein
and which shall be secured by the described real property, also the legal description of the property
where Project will be constructed, situate in the County of Pueblo, State of Colorado, (the
"Property"), attached hereto as Exhibit "H" Legal Description and incorporated herein by
reference, as evidenced by a Deed of Trust to be executed contemporaneously with said
Promissory Note (together the "loan instruments"). The addresses of the Project are:
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The loan instruments shall require the Owner to pay to City or holder the indebtedness as and to
the extent same becomes due under the provisions of the Promissory Note and this Agreement.
Owner shall include terms in said Promissory Note and 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.
(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.
(c) During the full Term of this Agreement and for the period of affordability, (i) any
failure by the Owner to perform any obligation, covenant or provision of the Note or this
Agreement required to be performed by the Owner, 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 Owner repay to City the full amount of assistance
provided hereunder, plus interest at the rate of four percent(4%)per annum from and after the date
of such default. Owner 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 or Owner under this Agreement.
(d) City will provide the Owner, through notice to Crawford MM, LLC (the Owner's
general partner), a copy of any written notice, at 201 South Victoria Avenue, Pueblo, CO 81003.
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City will allow the Owner thirty (30) days after receipt of such notice to cure or cause the cure of
any default under this Agreement or the Loan Documents (as hereinafter defined), or such longer
period as is reasonably necessary for the Owner to cure non-monetary defaults provided that
Owner commences to cure and continues with due diligence. Copies of any and all notices required
to be given by the Owner pursuant to this Agreement shall also be sent, in the same manner as
such notice is given to the Owner, to the Owner's limited partner (the "Equity Investor") at the
following address: RBC Community Investments, LLC,Attention:President and General Counsel,
600 Superior Avenue, Suite 2300, Cleveland, Ohio 44114, and Applegate & Thorne-Thomsen,
P.C., Attention: Bennett P. Applegate, Esq., 425 S. Financial Place, Suite 1900, Chicago, Illinois
60605. The Equity Investor may change its address for receipt of copies of notices by giving notice
in writing stating its new address to the City. Commencing on the tenth (10th) day after the giving
of such notice, the newly designated address shall be effective for purposes of all such copies of
notices required to be sent by the City to the Equity Investor.
(e) Notwithstanding anything to the contrary contained in this Agreement, Equity Investor
shall have the right, but not the obligation, to cure defaults of Owner.
5. TERMINATION OF AGREEMENT.
(a) For Cause. Subject to the notice and cure rights set forth in Paragraph 4 above, this
Agreement may be terminated by City for cause, including any nonperformance by Developer or
Owner, upon ten (10) days' written notice to Developer or Owner, as applicable, 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 2 CFR 200.338, cause for
termination shall include any material failure by Developer or Owner to comply with any term of
this Agreement.
(b) For Convenience. This Agreement may be terminated for convenience in
accordance with the provisions of 2 CFR 200.339. 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 and Owner
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 and Owner from one or more specific responsibilities in writing. Additionally, at City's
sole option,all property acquired by Developer and Owner with loan funds,all loan funds,program
income, and mortgage loans originated with loan funds or by payments therefrom and payments
received under such mortgage loans, held, owned or retained by Developer or Owner shall
immediately become the sole and separate property of the City, and Developer and Owner 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, Owner,or their agents and assigns under this Agreement
or with loan funds shall, at the option of the City, become its property, and Developer or Owner,
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as applicable, shall be entitled to receive just and equitable compensation only for satisfactory
work completed and eligible costs for which compensation has not previously been paid nor
reimbursement made.
6. ASSIGNABILITY.
This Agreement shall not be assigned or transferred by Developer or Owner 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 with the Owner meeting the
requirements of Section 1(a) of this Agreement. The City understands that at some time within
24-months of closing of the project, RBC Community Investments, LLC intends to transfer its
interests to RBC Community Investments Fund-X14 LP, 600 Superior Avenue, Suite 2300,
Cleveland, OH 44114, and such an assignment or transfer is acceptable by City. Said assignment
shall not impact the obligations of Developer or Owner under the terms of this Agreement and the
period of affordability. Developer will provide City with written notice at least fourteen (14) days
prior to said assignment. 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 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. 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 five (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 and Owner to assure that the terms of this Agreement are being satisfactorily fulfilled
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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 and Owner 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 and Owner shall fully cooperate with City relating to such
monitoring and 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 (5) 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 and for the five (5) years thereafter. Activity reports shall be
submitted monthly or quarterly no later than the ninth (9th) 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 and Owner to the City, which
relationships are expressly declared to be that of an independent contractor, shall make or be
construed to make Developer or the Owner, or any of Developer's or Owner's agents or
employees, the agents or employees of the City. Both Developer and Owner shall be solely and
entirely responsible for their acts and the acts of their agents, employees, and subcontractors.
12. LIABILITY & INSURANCE.
(a) As to the City, Developer and Owner 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 and Owner or by the
conditions created thereby. Developer and Owner further agree 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, nonperformance, or breach of this Agreement by
Developer or Owner, or out of any violation by Developer or Owner of any statute, ordinance, rule
or regulation.
(b) Developer and Owner agree that each shall procure and will maintain during the
term of this Agreement, such insurance as will protect the respective parties 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
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set forth in subparagraph (c).
(c) The minimum insurance coverage which Developer and Owner shall obtain and
keep in force is as follows:
(i) Workers' Compensation Insurance complying with statutory requirements
in Colorado.
(ii) Comprehensive General and Automobile Liability Insurance with limits not
less than One Million and No/100 Dollars ($1,000,000.00) per person and occurrence for personal
injury, including but not limited to death and bodily injury, and One Million and No/100 Dollars
($1,000,000.00) per occurrence for property damage.
(d) Owner further agrees that it shall procure and maintain, at 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
Owner by City pursuant to this Agreement. Owner shall furnish a certificate of insurance
certifying such coverage to City's Director of Finance prior to disbursement of any funds to Owner.
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"D" hereto,
which are hereby expressly made a part of this Agreement.
14. PROGRAM INCOME; REVERSION OF ASSETS
(a) Unless otherwise authorized by City in writing in a separate instrument executed
after date of this Agreement, all program income shall be returned to City within thirty (30) days
of receipt by Developer. In the event City authorizes Developer to retain any portion of program
income, it shall only be used to accomplish the work set forth in the Scope of Services, and the
amount of loan funds payable by City to Developer shall be adjusted as provided by 24 CFR
92.503.
(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 HOME Units within the Project and the Property, and any other real property
acquired, constructed, or improved in whole or in part with funds provided pursuant to this
Agreement shall be used as affordable rental 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, Owner shall be in default under the Deed of
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Trust and Note, and Owner 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 affordability requirements apply without regard to the term of any loan or mortgage,
repayment of the HOME investment, or transfer of ownership. The use restriction and repayment
obligation set forth in 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. Owner and any transferee shall comply with the requirements of this paragraph
and execute a Deed of Trust which shall be and constitute a lien upon the Property and all other
real property acquired or improved with funds provided hereunder, and which shall secure the
affordability requirements hereunder. City shall have the right of first refusal to purchase the
housing before foreclosure or deed in lieu of foreclosure in order to preserve affordability. City
will have the authority to and may require specific performance to enforce the terms of this
Agreement and any affordability requirements.
(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 foreclose or obtain sale under the Deed of Trust or mortgage instrument, City
shall be entitled to recover its costs and expenses, including reasonable attorney's 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)), Owner shall retain ownership of the Project for a period of not less than 20 years from
and after the completion of the Project. Consequently, in the event the Owner 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 20 years after substantial completion of
the Project or said improvements, any loan agreement, Note and Deed of Trust shall provide that
the entire indebtedness under the Note shall immediately become due and payable and shall be
collected and repaid to City, together with interest thereon at the rate of four percent (4%) per
annum from the time of substantial completion until said repayment is made; provided, however,
such repayment shall not be required to the extent permitted by federal law, if the City has granted
prior written approval of the sale or transfer, and the acquirer of the Property becomes subject to
this Agreement, all HOME affordability restrictions, and the obligations of the Owner under this
Agreement,the Note, and Deed of Trust have been assigned to and assumed by the purchaser, then
Owner shall no longer be indebted to City and the City shall look to the purchaser for performance
of any remaining obligations hereunder. If Owner is a limited partnership, nothing in this
subparagraph (e), nor in subparagraph (f) of this Paragraph 14, is intended to prohibit a transfer of
ownership from Owner to any general partner or limited partner in Owner as long as the transferee
remains subject to this Agreement, all HOME affordability restrictions, and the obligations of the
10
Owner under this Agreement, the Note, and Deed of Trust.
(f) It is the intent of the parties that C.R.S. § 38-30-165 and any similar statute hereafter
enacted, be preempted under federal law and regulations in order to maintain affordability of the
HOME Units within the Property. Consequently, any loan agreement between City 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, transfer, or assignment of the Property by the Owner, unless all of the
following circumstances are demonstrated to exist: (i) more than 20 years have elapsed since the
substantial completion of the Project, (ii) the senior lien holders also consent to assumption of the
mortgage or obligation to which the Deed of Trust is subordinate, (iii) 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, (iv) the
sale price and payment of principal, interest, property taxes and insurance by the subsequent
purchaser must permit the HOME Units to remain affordable for the remaining period of
affordability specified in this Agreement, with affordability determined by applicable regulations
and requirements, and (v)both the City and the holder of the Note expressly consent to assumption
of the Owner's obligations under any 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 (iv) 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.
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 and Owner shall comply with
all requirements of this Paragraph 15.
(b) No 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; (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 or Owner may submit its proposed bidding process to the City for
review and approval or disapproval prior to receipt of any funds hereunder.
11
(c) No disbursement of funds to Owner shall be made by City hereunder unless and
until all conditions precedent to payment specified elsewhere in this Agreement have been satisfied
and Owner files with City's Director of Housing and Citizen Services a written request for payment
signed by an officer of the General Partner of Owner 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) [Reserved]
(e) 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.
(f) Owner shall, at Owner's sole expense, 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, and in accordance with 24 CFR 92.353.
16. RECOGNITION OF HUD, CITY.
In all printed materials, Project descriptions, and other activities undertaken with funds
provided under this Agreement, Developer and Owner 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. AFFIRMATIVE FAIR HOUSING MARKETING PLAN.
For all programs assisting five or more households, Developer has established procedures
and will take steps necessary to affirmatively further Fair Housing in accordance with City
policies, attached hereto in Exhibit "G", and federal regulations codified at 24 CFR 570.487(b)
and 24 CFR 92.351, respective of CDBG/HOME funding. Developer has submitted to the City
HUD Form 92243, Affirmative Fair Housing Marketing Plan, outlining its strategy to encourage
those who are least likely to apply for the services funded by this Agreement.
18. ENTIRE AGREEMENT; AMENDMENTS; COUNTERPARTS.
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 with respect to the
Project 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
12
of this Agreement, shall be binding unless made in writing and executed by the duly authorized
officers of the Developer, Owner, and City. If any provision of this Agreement is held invalid or
unenforceable, no other provision shall be affected by such holding, and all of the remaining
provisions of this Agreement shall continue in full force and effect. This Agreement may be
executed in multiple counterparts, each of which shall be deemed an original, and all of which
together constitute one and the same agreement.
19. GOVERNING LAW AND VENUE.
This Agreement shall be governed by the laws of the State of Colorado. Venue for any
action arising under this Agreement or for the enforcement of this Agreement shall be in a state
court with jurisdiction located in Pueblo County, Colorado.
20. SIGNATURES.
The persons signing this Agreement on behalf of Developer and Owner respectively
represent and warrant that such persons and Developer and Owner 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 and Owner enforceable against Developer and Owner, as
applicable, in accordance with its terms. This Agreement and all other documents contemplated
hereunder may be executed using electronic signatures with delivery via facsimile transmission,
by scanning and transmission of electronic files in Portable Document Format (PDF) or other
readily available file format, or by copy transmitted via email, or by other electronic means and in
one or more counterparts, each of which shall be: (i) an original, and all of which taken together
shall constitute one and the same agreement, (ii) a valid and binding agreement and fully
admissible under state and federal law, and (iii) enforceable in accordance with its terms.
[Remainder of page intentionally left blank.]
13
IN WITNESS WHEREOF, Developer, Owner, 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 Municippall Corporation
VBy: °2(40441.
,/(C:0I�GK.�1/ .
Cit erk Nicholas A. Gradisar, Mayor
[ SEAL ] Date: 4-tet /3 ,9/4..,,.
DEVELOPER:
HOUSING AUTHORITY OF THE CITY OF
PUEBLO, COLORADO, a body corporate and
politic ornized under the la /s of Colorado
By: +.( ‘../
• en . Trujillo, Executive D'i ector
Date: _(O o/.V
OWNER:
CRAWFORD TOWNHOMES, LLLP,
a Colorado limited liability limited partnership
By: Crawford MM, LLC, a
Colorado limited liability company, its general
partner
By: El Centro Pueblo Development
Corporation, Inc., a Colorado non-profit
corporatio , its sole member
i
/i
By:
Steven L. Trujillo, Secreta,/Treasurer
Date: (VgaV
14
SCHEDULE OF EXHIBITS
Exhibit A Statement of Project/Scope of Work
Exhibit B Accounting System Compliance Provisions
Exhibit C Federal Debarment Certification
Exhibit D Certifications
Exhibit E Annual Rent Reporting Form for Monitoring
Exhibit F Section 3
Exhibit G Affirmative Fair Housing Marketing Procedures
Exhibit H Legal Description
Also, available on request:
• Technical Guide for Determining Income and Allowances for the HOME Program
• HOME Monitoring Forms
15
EXHIBIT A
STATEMENT OF PROJECT/SCOPE OF WORK
STATEMENT OF PROJECT AND SCOPE OF WORK:
General Description
The Project will consist of the construction of 49 townhome rental units of which 49 units will be
subsidized rental housing for low to moderate income households. The HOME funds will be used
for the costs associated with the construction of five (5) HOME Units. These HOME Units will
be floating units for the purposes of accounting for the HOME per unit subsidies and affordability
requirements. Floating HOME Units will be maintained during the period of affordability, meet
the requirements of 24 CFR Part 92, and each substituted HOME Unit will be comparable in terms
of size, features, and number of bedrooms to the originally designated HOME Unit.
The Developer agrees to perform the work described under the Project/Work Description of the City
HOME application for funding in compliance with all the provisions of this Agreement. The
Developer warrants and represents that it has the requisite authority and capacity to perform all terms
and conditions on the Developer's part to be performed hereunder.
HOME Units
Based on preliminary budget figures of $21,000,000.00 provided in the Application for HOME
funds, and $500,000.00 of available HOME funds, five (5) units must be HOME Units for the
affordability period. The actual per unit HOME subsidy amount is $100,000.00 per HOME Unit.
Rent Limits— 24 CFR 92.252
Rent Limitation. HUD provides the following maximum HOME rent limits. The rent limits
apply to the rent, inclusive of utilities or the utility allowance. The maximum HOME rents
("High HOME Rents") are the lesser of:
(1) The fair market rent for existing housing for comparable units in the area as established
by HUD under 24 CFR 888.111; or
(2) A rent that does not exceed 30 percent of the adjusted income of a family whose annual
income equals 65 percent of the median income for the area, as determined by HUD, with
adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD
will include average occupancy per unit and adjusted income assumptions.
Additional rent limitations ("Low HOME Rents"). The participating jurisdiction may designate
(in its written agreement with the project owner) more than the minimum HOME units in a
rental housing project, regardless of project size, to have Low HOME Rents that meet the
requirements of this paragraph (b). In rental projects with five or more HOME-assisted rental
units, at least 20 percent of the HOME-assisted units must be occupied by very low-income
families and meet one of the following rent requirements:
(1) The rent does not exceed 30 percent of the annual income of a family whose income
equals 50 percent of the median income for the area, as determined by HUD, with
adjustments for smaller and larger families. HUD provides the HOME rent limits which
16
include average occupancy per unit and adjusted income assumptions. However, if the rent
determined under this paragraph is higher than the applicable rent under paragraph (a) of this
section, then the maximum rent for units under this paragraph is that calculated under
paragraph (a) of this section.
(2) The rent does not exceed 30 percent of the family's adjusted income. If the unit receives
Federal or State project-based rental subsidy and the very low-income family pays as a
contribution toward rent not more than 30 percent of the family's adjusted income, then the
maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent
allowable under the Federal or State project-based rental subsidy program.
The unit composition and initial rent for each HOME Unit per month shall be established
according to TABLE 1 (inclusive of the utility allowance; set according to the Section 8 RAD
Housing Assistance Payments contract). The HOME units are targeted to serve families below
50% area median income. At a minimum, HOME requires all units designated as HOME Units be
occupied by families with incomes below 60% of the Area Median Income (AM I). And, 20% of
the designated HOME Units must be occupied by families whose income is below 50% AMI.
Income averaging of HOME Units is NOT allowed.
Table l HOME Unit Composition and Initial Rent inclusive of Utilities
Unit Type Total Monthly Number of HOME Total Monthly Rent Number of HOME
Rent Units Reserved for High HOME Limit Units Reserved for
RAD Contract Families Below (inclusive of utility Families Between
Limit(inclusive 50% AMI allowances) 50% & 60% AMI
of utility
allowances)
One-Bedroom $721 1 $634 0
Two-Bedroom $927 2 $836 0
Three-Bedroom $1,205 I $1,118 0
Four Bedroom $1,410 1 $1,320 0
The procedures for rent increases are as follows: As required by the RAD Use Agreement and
RAD program.
The total 49 units to be built are as follows:
8 - One-Bedroom units at approximately 636 sq. ft.;
27—Two-Bedroom units at approximately 1083 sq. ft.;
12— Three-Bedroom units at approximately 1,223 sq. ft.
2 — Four-Bedroom units at approximately 1,292 sq. ft.
17
Initial distribution of HOME Units are as follows:
1 - One-Bedroom Unit
2 - Two-Bedroom Units
1 - Three-Bedroom Unit
1 - Four-Bedroom Unit
Owner is prohibited from charging fees that are not customarily charged in rental housing, except
for extra services voluntarily provided by Owner, such as bus transportation or meals.
The Owner shall provide the address (e.g., street address and apartment number) of each HOME
Unit no later than the time of initial occupancy.
Violence Against Women Act (VAWA)
VAWA requirements set forth in 24 C.F.R. § 92.359 and 24 CFR part 5, subpart L, apply to rental
housing assisted with HOME funds, and therefore apply to this Project. The Developer will comply
with these requirements by providing the notification requirements, bifurcation lease requirements,
the VAWA lease term/addendum, and will develop and submit to the City a copy of the Emergency
Transfer Plan.
Change Orders
Once final development plans have been approved by the City, it is the Developer's responsibility
to notify the City of any problems the contractor has in conforming to the accepted plans for any
element of the proposed Project prior to construction.
It is the responsibility of the Developer during construction activities to resolve construction
problems due to changed conditions or design errors encountered by the contractor during the
progress of any portion of the Project. If, in the opinion of the City, the modifications to the accepted
plans proposed by the Developer involve significant changes to the character of the work, or to the
future contiguous public or private improvements, the Developer shall be responsible for
resubmitting the revised plans to the City for acceptance prior to any further construction related to
that portion of the Project. Any improvements not constructed in accordance with the accepted plans,
or the accepted revised plans, shall be removed and reconstructed according to the approved plans.
The City shall be notified of any changes to the originally accepted plans and/or any accepted revised
plans.
The Developer shall be in compliance with any "General Notes" found on the accepted plans.
Davis Bacon
Based on the number of HOME Units assisted, compliance with the Davis-Bacon Act is NOT
triggered.
Section 3 Economic Opportunity
Because this agreement is for an amount greater than $200,000.00, the City's Section 3 Plan must
be implemented by the Developer. The Section 3 Compliance Plan is made a part of this Agreement
as Exhibit"F." The Compliance Plan must be a part of all bid documents for the Project (contracts
and subcontracts), and the Section 3 Clause must be a part of all bid processes and contracts.
18
The Policies and Procedures for Section 3, which include the Compliance Plan, are available for the
Developer's review upon request.
Debarred Contractors
The Developer must ensure compliance with 2 CFR 180 and 2 CFR 200.2424 regarding Debarred
Contractors through use of the Federal Debarment Certification, attached as Exhibit "C."
Additionally, the Developer shall provide verification of contractor/subcontractor eligibility by
providing active, non-excluded, eligibility documentation from the www.sam.gov entity database.
Procurement
Developer will ensure that all procurement transactions are conducted in a manner providing full
and open competition consistent with the standards of Title 24 of the Code of Federal Regulations.
The bid process must allow for preference to a certified Section 3 business concern.
Environmental Assessment
]Reserved]
Native American Tribal Issues
In the event of an inadvertent discovery (cultural resources and/or human remains), a Stop Work
Order on construction activities must be issued and immediate notification provided to the Authority
so that notification can be provided to Native American Tribes with an interest in the area.
Construction shall cease until proper treatment of cultural resources and/or human remains is
achieved and such notification has been provided by the affected tribe to the Authority.
Tenant Selection, Income, and Lease
Owner shall be responsible for tenant selection and for verifying the income of all tenants at the time
of application, as well as during the required annual recertification, and providing copies of all
pertinent documentation to the City upon request.
1) Timing: The HOME Units must be occupied by households that are eligible as low- income
families and must meet the requirements of 24 C.F.R. § 92.252 to qualify as affordable housing.
If the housing is not occupied by eligible tenants within six (6) months following the date of
Project completion, Owner will submit marketing information and, if appropriate, submit a
marketing plan. Owner will repay HOME funds invested in any housing unit that has not been
rented to eligible tenants within eighteen (18) months after the date of Project completion in
accordance with the terms of this Agreement.
2) Income Verification at Occupancy: Owner shall determine tenant income eligibility at the time
of initial tenancy by using 24 C.F.R. § 92.203 and Part Five of HUD's income determination
schedule. Source documentation must be obtained and verified in accordance with the Part Five
income definition. Under this income verification method, income from certain assets must also
be included. Guidance on calculating incomes under the Part Five definition shall be provided
by the Housing Authority upon request.
19
Total income is based on the income of the entire household (not just the primary tenant), as
further defined under Part Five income definitions. Further, income is based on anticipated
income and shall take into account any expected changes in income to the extent possible.
3) Income Re-certification: Owner shall re-certify annually the income of all current tenants on the
anniversary date of each lease. Re-certification at this time can consist of a written statement and
certification from the household with regards to current income and household size. The
certification must state that the information is complete and accurate and must indicate that
source documentation will be provided upon request. An owner of a multifamily project with
an affordability period of 10 years or more who re-examines tenant's annual income through a
statement and certification in accordance with § 92.203(a)(l)(ii), must examine the income of
each tenant, in accordance with § 92.203(a)(1)(i), every sixth year of the affordability period.
Otherwise, an owner who accepts the tenant's statement and certification in accordance with §
92.203(a)(1)(ii) is not required to examine the income of tenants in multifamily or single-family
projects unless there is evidence that the tenant's written statement failed to completely and
accurately state information about the family's size or income.
4) Tenant Lease: Owner must execute a written lease and Rules of Occupancy statement with
every Project tenant covered under this agreement. The lease between a tenant and the Owner
shall be for not less than twelve (12) months, unless by mutual written agreement. At no time
will a lease be for less than thirty (30) days. The written agreement between the Owner and the
tenant for a lease term of less than one (1) year, along with any lease amendments, must be
retained in the tenant file. Termination of tenancy may be for cause only. All leases must be
written and comply with the terms of 24 C.F.R. § 92.253.
5) Prohibited Lease Terms: The lease between a tenant and the Owner may not contain any of the
following provisions:
i. Agreement to be sued or indemnify: Agreement by tenant to be sued, admit guilt,
indemnify owner, or consent to a judgment in favor of the Owner in a lawsuit brought in
connection with the lease.
ii. Treatment of property: Agreement by tenant that the owner may seize or sell personal
property of household members without notice to the tenant and a court decision on the
rights of the parties. (This provision does not apply to disposition of personal property left
by a tenant who has vacated a property.)
iii. Excusing Owner from responsibility: Agreement by the tenant not to hold the Owner or
the Owner's agents legally responsible for actions or failure to act, whether intentional or
negligent.
iv. Waiver of notice: Agreement by the tenant that the Owner may institute a lawsuit without
notice to the tenant.
v. Waiver of legal proceedings: Agreement by tenant that the Owner may evict the tenant or
household members without instituting a civil court proceeding in which the tenant has the
opportunity to present a defense or before a court decision on the rights of the parties
vi. Waiver of a jury trial: Agreement by the tenant to waive any right to a jury trial.
20
vii. Waiver of right to appeal court decision: Agreement by tenant to waive the tenant's right
to appeal or otherwise challenge in court a decision in connection with the lease.
viii. Tenant chargeable with cost of legal actions regardless of outcome: Agreement by the
tenant to pay attorney fees or other legal costs even if the tenant wins the court proceeding
by the Owner against the tenant. The tenant, however, may be obligated to pay costs if the
tenant loses.
Tenant Selection
Prior to any tenancies,the Owner shall adopt written tenant selection policies and criteria and comply
with 24 C.F.R. § 92.253.
Monitoring Schedule
The City monitors for compliance with HOME requirements annually. The Owner will be
responsible for reporting beneficiary and rent data on each HOME Unit on HOME Monitoring
Checklist 6-D (attached as Exhibit "E") throughout each year. Additionally, on-site monitoring to
inspect individual HOME Units(a minimum of 20%), review of rent and occupancy requirements,
review of the lease in effect and tenant selection policies, and other items noted in this Agreement
will be conducted in the first year of this Agreement, and every subsequent year for the duration
of the period of affordability.
21
EXHIBIT B
ACCOUNTING SYSTEM COMPLIANCE PROVISIONS
1. As used in this Exhibit, the term "Owner" shall mean the entity or entities entering into the
Agreement with the City of Pueblo, a Municipal Corporation, to which this Exhibit is
attached.
2. Owner is subject to and shall comply with the requirements of 2 CFR Part 200—Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards.
3. Owner 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 Owner'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 Owner 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
$75,000.00 each or $300,000.00 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 Owner or provided any materials or services to Owner.
6. The City has the right to periodically perform interim audits and a final audit of the Project
and funds provided under the Agreement. Owner 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.
22
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 attach an explanation to this proposal.
CramArl005 L LP
Organization Name PR/Award Number or Project Name
5-1-4A/64.- L L. `fir i!ID , 1r,.cc -<4,—
Name(s) and Title(s) of Authorized Representative(s)
'7 oae
s/
'gnature(s) 4 Date
Federal Debarment Certification—continued on following page
23
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," and "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 Non-
Procurement 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
24
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)
25
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 Subpart J of 24
CFR 570 and 2 CFR Part 200, 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)];
26
(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, in accordance with 24 CFR Parts 87 and 91.
(a) No federally appropriated funds have been or will be paid, by or on behalf of
subrecipient, to any person for influencing or attempting to influence an officer
or employee of any agency, a Member of Congress, an officer or employee of
27
Congress, or an employee of a Member of Congress in connection with the
awarding of any federal contract, the making of any federal grant, the making
of any federal loan, the entering into of any cooperative agreement, and the
extension, continuation, renewal, amendment, or modification of any federal
contract, grant, loan, or cooperative agreement.
(b) If any funds other than federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
federal contract, grant, loan, or cooperative agreement, it will complete and
submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
(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.
CRAWFORD TOWNHOMES, LLLP
A Colorado Limited Liability Limited
Partnership
By: Crawford MM, LLC, a Colorado
limited liability company, its general partner
By: El Centro Pueblo Development
Corporation, Inc., a Colorado non-profit
corporate o, its sole member
By:
• —
teven L. Trujillo, Secretary
Date: -710.7616;____
28
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EXHIBIT F
CITY OF PUEBLO, SECTION 3 PROGRAM
Developer's HOME Funding Application
Exhibit XII — Section 3 Project Plan
30
CITY OF PUEBLO/PUEBLO CONSORTIUM
HOME INVESMENT PARTNERSHIP FUND
SECTION 3 CERTIFICATION
PURPOSE, AUTTIORITYAND RESPONSIBILITY
Section 3 is a provision of the Housing and Urban Development (HUD)Act of 1968 that promotes local
economic development and individual self-sufficiency.
Section 3 requires that, to the greatest extent possible,economic opportunities that are generated by the
use of 1 it ID funds be made available to low-and very low-income persons,particularly those who receive
Federal financial assistance for housing and those residing in communities where the financial assistance
is expended. Section 3 established benchmark goals for(a) 25% of total labor hours worked by Section 3
workers;and (b)5%of total labor hours worked by Targeted Section 3 workers.
Housing Authority of the City of Pueblo ___._ .__ (hereinafter called the Recipient/Contractor)
hereby CERTIFIES that upon being awarded a contract to participate in the following HUD-funded
project:
Crawford Townhorne _._. -- (the "Project")
located at: 2601 Crawford Street Pueblo, CO 81004,
that the Recipient/Contractor:
(a) is under no contractual or other impediment that would prevent it from complying with
requirements of Section 3 as set forth in 24 CFR part 75; and
(b) will comply with HUD's regulations in 24 CFR Part 75; and
(c) will submit to the Pueblo Consortium appropriate Section 3 documentation of total labor hours
performed per contractor/subcontractor, certifications of Section 3 workers, and confirmation of
Section 3 business concerns and YouthBuild participants; and
(d) will include the Section 3 Clause and this Section 3 Certification of Compliance in every subcontract
and further agrees to take the appropriate action pursuant to those regulations in the event the
contractor/subcontractor is found to be in violation of 24 CFR Part 75; and
(e) will not contract/subcontract with any contractor/subcontractor where the Recipient/Contractor
has notice or knowledge that the contractor/subcontractor has been found in violation of any
provisil of 24 CFR Part 75.
By: 44' / • I►i
Authorized Representativ-'s S atu re
Name and Title: Steven L. I iJ1oJxecutiv Director
Date: n222/7021
Section 3 Clause
A. The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968,as amended, 12 U.S.C. 1701u(section 3),contributes
to the establishment of stronger, more sustainable communities by ensuring that employment and
other economic opportunities generated by Federal financial assistance for housing and
community development programs are, to the greatest extent feasible, directed toward low-and
very low-income persons, particularly those who receive Federal financial assistance for housing
and those residing in communities where the financial assistance is expended.
B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 75, which
implement section 3. As evidenced by their execution of this contract,the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 75 regulations.
C. The contractor agrees to include this section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR part 75, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 75.The contractor will not subcontract
with any subcontractor where the contractor has notice or knowledge that the subcontractor has
been found in violation of the regulations in 24 CFR part 75.
0. Noncompliance with HUD's regulations in 24 CFR part 75 may result in sanctions, termination of
this contract for default,and debarment or suspension from future HUD assisted contracts.
Exhibit XII B—Commitment to Additional Outreach
Outreach Effort Man Hours Developer's Cost
Invested Allocated to Task
Engaged in outreach efforts to generate job applicants
M who are Targeted Section 3 workers. 80 $2,690
Provide training or apprenticeship opportunities.
$0 $2,690
Li
Provide technical assistance to help Section 3 workerscompete
for jobs(e.g., resume assistance,coaching).
Provide or connected Section 3 workers with assistance in
seeking employment including:draftingresumes, preparing 20 $673
for interviews, and finding job opportunities connecting
residents to job placement
services
Held one or more job fairs.
40 $1,346
Provide or referred Section 3 workers to services
® supporting work readiness and retention(e.g., work 20 $673
readiness activities, interview clothing,test fees,
transportation, childcare).
Jo Provide assistance to apply for/or attend communitycollege, a
four-year educational institution,or 10 $336
vocational/technical training.
Assisted Section 3 workers to obtain financial literacy
RI training and/or coaching. 10 $336
Engaged in outreach efforts to identify and secure bids
gl from Section 3 business concerns. 100 $3,365
•
Provide technical assistance to helpSection 3 business
❑ concerns understand and bid on contracts.
Divided contracts into smaller jobs to facilitate
❑ participation by Section 3 business concerns.
❑ Provided bonding assistance,guaranties, or other efforts
to support viable bids from Section 3 businessconcerns.
IN Promoted use of business registries designed to create 100 $3,365
opportunities for disadvantaged and small businesses.
54 Outreach,engagement, or referrals with the state one- 100
stop system as defined in Section121(e)(2)of the $3,365
Workforce Innovation and Opportunity Act.
Other:
33
• city of
A. PUEBLO
11 j"
`olorado
Policies & Procedures
Implementing Section 3
of the Housing & Urban Development Act
40, $ "x
..e
/1St
1 4-10.V.04. diog, 'd z ,, gIN
mss! a
An
Orientation Guide
for Contractors, Developers, and Sub-Grantees
doing business with the City of Pueblo
34
Introduction
This guidebook has been prepared to provide information and guidance to firms and entities
receiving housing or community development assistance covered under Section 3 of the Housing
and Urban Development Act of 1968. This guidance should outline for recipients how the City of
Pueblo through the Department of Housing and Citizen Services shall administer the Section 3
Regulations. This guide should not be treated as a comprehensive recitation of the Section 3 Act
and Section 3 Regulations. It is a summary of the pertinent provisions of the Act and Regulations
and focuses on the requirements imposed on the Sub-Recipient, Developer, General Contractor,
and Subcontractor receiving the requisite amount of Section 3 Funds.
The City of Pueblo reminds each Sub-Recipient, Developer, General Contractor and
Subcontractor that it bears the responsibility to familiarize itself with the Section 3 Act and
Section 3 Regulations prior to accepting projects covered by Section 3 from the City of Pueblo.
City of Pueblo's Policy Statement
The City of Pueblo, through the Department of Housing & Citizen Services (DHCS) will require
recipients of HUD sourced funds to provide employment and contracting opportunities to low-
and very low-income persons (as defined in 24 CFR Part 75.5) residing in the City of Pueblo and
the greater Pueblo Metropolitan Statistical Area (MSA) and to area businesses meeting the
definition of a "Section 3 Business Concern" (as defined by 24 CFR Part 75.5) on all Section 3
Covered Projects. Accordingly, DHCS has implemented policies and procedures to ensure that
Section 3 regulations, when required, are followed and shall develop programs and procedures
as necessary to implement this policy covering all procurement contracts where labor and/or
professional services are provided on a Section 3 covered project, in order to achieve the goals
outlined within the City of Pueblo's Consolidated Plan for Housing and Community Development.
This policy shall not apply to contractors who only furnish materials or supplies through Section
3 covered assistance. It will apply to contractors who install materials or provide equipment on
a Section 3 covered project. There is nothing in the policy that should be construed to require
the employment or contracting of a Section 3 resident or business who does not meet the
qualifications of the position to be filled or who cannot fulfill the contract requirements.
What is Section 3?
Section 3 refers to Section 3 of the Housing and Urban Development Act of 1968 as amended (12
U.S.C. 1701u) and its implementing federal regulations in 24 C.F.R. 75. The purpose of Section 3
is to ensure that employment and economic opportunities generated by certain financing
provided by the U.S. Department of Housing and Urban Development(HUD) is,to greatest extent
feasible, directed to low-and very low-income persons, particularly those who are recipients of
government assistance for housing, and to business concerns that provide economic
opportunities to low- and very-low income persons.
The City of Pueblo has set forth policies and procedures to ensure that employment and
economic opportunities generated by Section 3 covered projects, to the greatest extent feasible,
are directed to low- and very low-income persons and business concerns.
What Projects are Section 3 Covered Protects?
Section 3 policies are applicable to all HUD sourced construction projects or HUD sourced
construction financing when the total amount of assistance to the project exceeds a threshold
of$200,000 related to:
• Housing rehabilitation and housing construction; and
• Other public construction funded by HUD programs to provide community development
financial assistance.
Section 3 policies also apply to HUD sourced lead hazard reduction projects or financing when
the total amount of assistance to the project exceeds a threshold of$100,000.
Who are Section 3 Workers?
Section 3 worker means any worker who currently fits or when hired within the past five years fit at least
one of the following categories, as documented:
• Participants in YouthBuild Programs; or,
• The worker is employed by a Section 3 business concern; or
• The worker's income for the previous or annualized calendar year is below the annual income limit
established by HUD, currently:
Pueblo County 1
Section 3 Worker 2022 $46,050
Annual Income
Targeted Section 3 worker means:
• A Section 3 worker employed by a Section 3 business concern; or
• A Section 3 worker who currently fits or when hired fit at least one of the following categories, as
documented within the past five years (effective date 11/30/2020):
(i) Living within the service area or the neighborhood of the project (within one mile of the project or
an area sufficient to encompass a population of 5000 people; or
(ii) A YouthBuild participant.
What is a Section 3 Business Concern?
A business meeting at least one of the following criteria, documented within the last six-month period:
• Is a business that is 51% or more owned and controlled by low- or very low-income persons; or
• Is a business that is 51% or more owned and controlled by current public housing residents or
residents who currently live in Section 8-assissted housing; or
• Over 75% of the labor hours performed for the business over the prior three-month period were
performed by Section 3 workers.
Section 3 Employment and Contracting Goals
The City of Pueblo / Pueblo Consortium provides HOME funds from the U.S. Department of
Housing and Urban Development (Federal funds) which must comply with Section 3 of the
Housing and Urban Development Act of 1968, as amended. Section 3 requires that economic
opportunities that are generated by the use of Federal funds be made available to low- and very
low-income persons, particularly those who receive Federal financial assistance for housing and
those residing in communities where the financial assistance is expended.
Section 3 establishes employment benchmark goals of:
•25% of total labor hours worked by Section 3 workers, and
•5% of total labor hours worked by Targeted Section 3 workers.
These procedures summarize the requirements of Section 3 and describe how the City of Pueblo and
the Pueblo Consortium implement the requirements. The procedures outline what the
City/Consortium and its housing partners must do to comply with Section 3 and identify the record-
keeping and reporting requirements that funded entities must collect and maintain.
The Section 3 implementing regulations, 24 CFR part 75, can be found at www.ecfr.gov_
Section 3 applies to Section 3 projects funded by the City of Pueblo and the Pueblo Consortium
as follows [24 CFR 75.3(a)(2)(i)]:
A Section 3 project means housing rehabilitation, housing construction, and other public
construction projects assisted under HUD programs that provide housing and community
development financial assistance when the total amount of assistance to the project exceeds a
threshold of$200,000. A lower assistance threshold of$100,000,applies when assistance from the
Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the
Housing and Urban Development Act of 1970(12 U.S.C. 1701z- 1 or 1701z-2),the Lead-Based Paint
Poisoning Prevention Act (42 U.S.0 4801 et seq.); and the Residential Lead-Based Paint Hazard
Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any
building(s) and improvements located on the site(s) that are under common ownership,
management, and financing.
For projects with HOME assistance exceeding the threshold limits, Section 3 applies to the entire
project, whether the project is fully or partially assisted with HOME funds [24 CFR 75.3(a)(2)(iii)].
Section 3 requirements do not apply to material supply contracts [24 CFR 75.3(b)].
Section 3 Employment and Training
Recipient is defined as the entity receiving HOME funds and/or a HOME commitment in excess
of the threshold amount. $200,000 for most HUD programs and $100,000 for activities funded
through the Office of Lead Hazard Control and Healthy Homes.
To comply with Section 3 regulations, the Recipient must, to the greatest extent feasible, ensure
employment and training opportunities arising in connection with the Section 3 project is
provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which
the project is located [24 CFR 75.19(a)(1)].
Where feasible, priority for opportunities and training should be given to [24 CFR 75.19(a)(2)(i-
ii)]:
• Section 3 workers residing within the service area or the neighborhood of the
project,and
• Participants in YouthBuild programs.
Section 3 Contracting
To comply with Section 3 regulations, the Recipient must, to the greatest extent feasible, ensure
contracts for work awarded in connection with Section 3 projects are provided to business
concerns that provide economic opportunities to Section 3 workers residing within the
metropolitan area (or nonmetropolitan county) in which the project is located [24 CFR
75.19(b)(1)].
Where feasible, priority for contracting opportunities should be given to [24 CFR 75.19(b)(2)(i-
ii)]:
• Section 3 business concerns that provide economic opportunities to Section 3 workers residing
within the service area or the neighborhood of the project, and
• YouthBuild programs.
Section 3 Reporting requirements
To comply with Section 3 regulations, the Recipient must report [24 CFR 75.25(a)]:
• The total number of labor hours worked;
• The total number of labor hours worked by Section 3 workers; and
• The total number of labor hours worked by Targeted Section 3 workers.
The labor hours reported must include the total number of labor hours worked on a Section 3
project, including labor hours worked by any subrecipients, contractors and subcontractors [24
CFR 75.25(a)(3)].
In order to meet Section 3 reporting requirements, Recipients may report labor hours by Section 3
workers and Targeted Section 3 workers from professional services without including labor hours
from professional services in the total number of labor hours worked for the project [24 CFR
75.25(a)(4)].
Additional Reporting if Section 3 Benchmarks are not met (24 CFR 75.25(b)]
If the Recipient's reporting indicates the Section 3 benchmarks have not been met, the Recipient
must report on the nature of activities pursued in the absence of not meeting Section 3
benchmarks (see Form S3c).
Section 3 Contract Provisions
Recipients must include language applying Section 3 requirements in any subrecipient agreement
or contract for a Section 3 project [24 CFR 75.27(a)] (see Form "Additional Reporting").
Section 3 business concern means (24 CFR 75.5):
(1) A business concern meeting at least one of the following criteria, documented within
the last six- month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons;
(ii) Over 75 percent of the labor hours performed for the business over the prior three-
month period are performed by Section 3 workers; or
(iii) It is a business at least 51 percent owned and controlled by current public housing
residents or residents who currently live in Section 8-assisted housing.
(2) The status of a Section 3 business concern shall not be negatively affected by a prior
arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a
Section 3 business concern. Section 3 business concerns are not exempt from meeting the
specifications of the contract.
Section 3 worker means (24 CFR 75.5):
(1) Any worker who currently fits or when hired within the past five years(time period only
goes back to the 24 CFR 75 effective date of 11-30-2020)fit at least one of the following
categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the
income limit established by HUD.
(ii) The worker is employed by a Section 3 business concern.
(iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or
conviction.
(3) Nothing in this part shall be construed to require the employment of someone who
meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the
qualifications of the position to be filled.
Targeted Section 3 worker means [24 CFR 75.21(a)1:
A Targeted Section 3 worker for housing and community development financial assistance
means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or
(2) A worker who currently fits or when hired five years (time period only goes back to the
24 CFR 75 effective date of 11-30-2020) fit at least one of the following categories, as
documented within the past five years:
(i) Living within the service area or the neighborhood of the project, as defined in § 75.5;
or
(ii) A YouthBuild participant.
Penalties
In the event the developer fails to meet its commitments and cannot demonstrate to the City of
Pueblo or the Pueblo Consortium's satisfaction that good faith efforts have been made to fulfil
their commitments, it shall be subject to penalties for non-compliance as enumerated in the
construction documents or the Affordable Housing Development Agreement between the
Consortium member and the developer. A penalty for non-compliance up to 5% of loan/grant
amount may be assessed per the Affordable Housing Development Agreement. A penalty of
debarment may additionally be imposed by the City of Pueblo or Consortium member.
Exhibits to Section 3 Policies and Procedures
Form Description
S3a Certificate of Section 3 Compliance and Section 3 Clause S3b Parties
Involved Form
S3c Weekly Hours Worked Certification
S3d Section 3 Worker Certification
S3e Section 3 Business Certification
Form 53a(page 1 of 2)Recipient must complete form and submit to Consortium.
CITY OF PUEBLO/PUEBLO CONSORTIUM
CDBG/ HOME INVESMENT PARTNERSHIP FUND
SECTION 3 CERTIFICATION
PURPOSE, AUTHORITYAND RESPONSIBILITY
Section 3 is a provision of the Housing and Urban Development (HUD) Act of 1968 that promotes
local economic development and individual self-sufficiency.
Section 3 requires that, to the greatest extent possible, economic opportunities that are
generated by the use of HUD funds be made available to low- and very low-income persons,
particularly those who receive Federal financial assistance for housing and those residing in
communities where the financial assistance is expended. Section 3 established benchmark goals
for(a) 25%of total labor hours worked bySection 3 workers; and (b)5%of total labor hours worked
by Targeted Section 3 workers.
(hereinafter called the
Recipient/Contractor) hereby CERTIFIES that upon being awarded a contract to participate in the
following HUD-funded project:
(the "Project")
located at: ,
that the Recipient/Contractor:
(a) is under no contractual or other impediment that would prevent it from complying with
requirements of Section 3 as set forth in 24 CFR part 75; and
(b) will comply with HUD's regulations in 24 CFR Part 75; and
(c) will submit to the City of Pueblo or Pueblo Consortium Member, appropriate Section 3
documentation of total labor hours performed per contractor/subcontractor, certifications of
Section 3 workers, and confirmation of Section 3 business concerns and YouthBuild participants;
and
(d) will include the Section 3 Clause and this Section 3 Certification of Compliance in every
subcontract and further agrees to take the appropriate action pursuant to those regulations in
the event the contractor/subcontractor is found to be in violation of 24 CFR Part 75; and
(e) will not contract/subcontract with any contractor/subcontractor where the
Recipient/Contractor has notice or knowledge that the contractor/subcontractor has been found
in violation of any provision of 24 CFR Part 75.
By: Authorized Representative's
Signature
Name and Title:
Date:
Form S3a(page 2 of 2)
Section 3 Clause must be included in contracts with all
contractors/subcontractors/lower-tier subcontractors.
Section 3 Clause
A. The work to be performed under this contract is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (section 3),
contributes to the establishment of stronger, more sustainable communities by ensuring that
employment and other economic opportunities generated by Federal financial assistance for
housing and community development programs are, to the greatest extent feasible, directed
toward low- and very low-income persons, particularly those who receive Federal financial
assistance for housing and those residing in communities where the financial assistance is
expended.
B. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 75, which
implement section 3. As evidenced by their execution of this contract,the parties to this contract
certify that they are under no contractual or other impediment that would prevent them from
complying with the part 75 regulations.
C. The contractor agrees to include this section 3 clause in every subcontract subject to compliance
with regulations in 24 CFR part 75, and agrees to take appropriate action, as provided in an
applicable provision of the subcontract or in this section 3 clause, upon a finding that the
subcontractor is in violation of the regulations in 24 CFR part 75. The contractor will not
subcontract with any subcontractor where the contractor has notice or knowledge that the
subcontractor has been found in violation of the regulations in 24 CFR part 75.
D. Noncompliance with HUD's regulations in 24 CFR part 75 may result in sanctions, termination of
this contract for default, and debarment or suspension from future HUD assisted contracts.
Form S3b
Recipient must complete this form and submit to Consortium.
Parties Involved Form
Project Name
Owner Name Developer
Contact Name Contact Name
Email Address Email Address
Address Address
City, State,Zip City, State, Zip
Phone Phone
GC Subcontractor
Contact Name Contact Name
Email Address Email Address
Address Address
City, State, Zip City, State, Zip
Phone Phone
Subcontractor Subcontractor
Contact Name Contact Name
Email Address Email Address
Address Address
City, State, Zip City, State, Zip
Phone Phone
Subcontractor Subcontractor
Contact Name Contact Name
Email Address Email Address
Address Address
City, State, Zip City, State, Zip
Phone Phone
Subcontractor Subcontractor
Contact Name Contact Name
Email Address Email Address
Address Address
City, State,Zip City, State, Zip
Phone Phone
Phone Phone
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Form S3c(Page 2 of 3)
Definitions
Section 3 worker means (24 CFR 75.5):
(1) Any worker who currently fits or when hired within the past five years(time period only
goes back to the 24 CFR 75 effective date of 11-30-2020)fit at least one of the following
categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the
income limit established by HUD.
(ii) The worker is employed by a Section 3 business concern.
(iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or
conviction.
(3) Nothing in this part shall be construed to require the employment of someone who
meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the
qualifications of the position to be filled.
Targeted Section 3 worker means [24 CFR 75.21(a)]:
A Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker
who is:
(1) A worker employed by a Section 3 business concern;or
(2) A worker who currently fits or when hired five years(time period only goes back to the 24 CFR 75
effective date of 11-30-2020)fit at least one of the following categories, as documented within the past five years:
(i) Living within the service area or the neighborhood of the project,as defined in § 75.5;or
(ii) A YouthBuild participant.
Section 3 business concern means (24 CFR 75.5):
(1) A business concern meeting at least one of the following criteria, documented within
the last six- month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons;
(ii) Over 75 percent of the labor hours performed for the business over the prior three-
month period are performed by Section 3 workers; or
(iii) It is a business at least 51 percent owned and controlled by current public housing
residents or residents who currently live in Section 8-assisted housing.
(2) The status of a Section 3 business concern shall not be negatively affected by a prior
arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a
Section 3 business concern. Section 3 business concerns are not exempt from meeting the
specifications of the contract.
Form 53c(Page 3 of 3)Recipient must complete this form and submit to DHCS.
Additional Reporting if Section 3 Benchmarks are not met 124 CFR 75.25(b)1
If the Recipient's reporting indicates the Section 3 benchmarks have not been met, the Recipient
must report on the nature of activities pursued in the absence of not meeting Section 3
benchmarks. In the absence of not meeting Section 3 benchmarks, the Recipient made efforts
including (check all that apply and provide documentation of effort(s)):
Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers.
Provided training or apprenticeship opportunities.
Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume
assistance,
coaching).
Provided or connected Section 3 workers with assistance in seeking employment including:
drafting
resumes, preparing for interviews, and finding job opportunities connecting residents to
job placement services.
Held one or more job fairs.
Provided or referred Section 3 workers to services supporting work readiness and retention
(e.g., work readiness activities, interview clothing, test fees, transportation, child care).
Provided assistance to apply for/or attend community college, a four-year educational
institution,
or vocational/technical training.
Assisted Section 3 workers to obtain financial literacy training and/or coaching.
Engaged in outreach efforts to identify and secure bids from Section 3 business concerns.
Provided technical assistance to help Section 3 business concerns understand and bid on
contracts.
Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns.
Provided bonding assistance, guaranties, or other efforts to support viable bids from Section
3
business concerns.
Form S3c(Page 3 of 3)Recipient must complete this form and submit to DHCS.
Additional Reporting if Section 3 Benchmarks are not met [24 CFR 75.25(b)1 (Cont.1
Promoted use of business registries designed to create opportunities for disadvantaged and
small
businesses.
Outreach, engagement, or referrals with the state one-stop system as defined in Section
121(e)(2)
of the Workforce Innovation and Opportunity Act.
Other, please describe:
By signing this document, as an authorized employee of the Recipient, I certify the above efforts
are true and accurate to the best of my knowledge and belief.
Recipient Signature Date
Form S3d(Page 1 of 2)
Section 3 Worker Certification
Employee Name Project Name
Employee's Address City State Zip
Section 3 worker means (24 CFR 75.5):
(1) Any worker who currently fits or when hired within the past five years (time period only
goes back to the 24 CFR 75 effective date of 11-30-2020)fit at least one of the following
categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the
income limit established by HUD (see the following income limits).
(ii) The worker is employed by a Section 3 business concern.
(iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or
conviction.
(3) Nothing in this part shall be construed to require the employment of someone who meets
this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the
qualifications of the position to be filled.
Pueblo County 2022 Income Limit
Section 3 Worker's Annual $46,050
Income
By signing this document, I certify that I am a Section 3 worker because I fit into one or more
categories listed above.
Signature Date
S3e Page 1
Section 3 Business Certification
If your business meets at least one of the categories listed below, please
complete this form.
Business Name
Business Address City State Zip
Contact Name Email Phone
Section 3 business concern
means(24 CFR 75.5):
(1) A business concern meeting at least one of the following criteria,
documented within the last six- month period:
(i) It is at least 51 percent owned and controlled by low- or very low-
income persons;
(ii) Over 75 percent of the labor hours performed for the business over
the prior three-month period are performed by Section 3 workers;or
(iii) It is a business at least 51 percent owned and controlled by current
public housing residents or residents who currently live in Section 8-assisted
housing.
(2) The status of a Section 3 business concern shall not be negatively
affected by a prior arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or
subcontracting of a Section 3 business concern. Section 3 business concerns are
not exempt from meeting the specifications of the contract.
By signing this document, I certify
is a Section 3 business concern because it fits into one or more categories listed
above.
Signature Title
Date
50
EXHIBIT G
City of Pueblo
Department of Housing and Citizen Services
\.ftirmatke Fair Housing \larketing Procedures
It is the policy of the Department of Housing and Citizen Services to administer its housing
programs affirmatively, as to achieve a condition in which individuals of similar income levels in
the same housing market area have a like range of housing choices available to them regardless of
their race, color, religion, sex, sexual orientation, handicap, familial status or national origin. Each
applicant for participation in the Department's housing programs shall pursue affirmative fair
housing marketing policies in soliciting buyers and tenants, in determining their eligibility, and in
concluding sales and rental transactions.
N1E'1 HODS AND PRACTICES FOR INFORMING THE PUBLIC
In order to inform the public, owners, and prospective tenants about federal fair housing laws and
the City's affirmative marketing policies, the developer will include the Equal Housing
Opportunity logotype and/or slogan, and a logotype and/or slogan indicating equality, non-
discrimination, and equal access, in all press releases, solicitations, and program information
materials.
The City shall develop an outreach plan each year, which will include, singularly or in
combination, advertisements in local newspapers, public service announcements, distribution of
fair housing brochures at relevant events, community presentations, or other outreach activities to
inform the community about fair housing rights and responsibilities.
REQUIRLMEN IS AND PRAC"[ICES FOR O\\NL-:RS
All developers who receive funds from the City are required to enter into loan and regulatory
agreements with the City prior to receiving any funds. These agreements are designed to bind the
recipients to all of the program requirements, including the affirmative fair marketing procedures.
Developers receiving federal funds are required to create units that are accessible to people with
disabilities. At least five percent of the new units must be accessible to people with mobility
impairments and at least two percent must be accessible to people with hearing or vision
impairments.
In addition to Federal laws requiring units for people with physical disabilities, Fair Housing laws
require owners to make reasonable accommodations or modifications for people with all types of
disabilities. In doing so, recipients are required to make and pay for structural modifications to
dwelling units and common areas when needed as a reasonable accommodation for tenants or
applicants with disabilities. In such cases where providing a requested accommodation would
result in an undue financial and administrative burden, developers are required to take any other
action that would not result in an undue burden.
Recipients must submit proposed marketing and management plans on the form HUD-935.2(a) for
multifamily projects or 935.2(b) for single-family projects, along with supporting documentation
to the City for review and approval. Prior to commencing marketing activities, owners will be
required to meet with City staff to review the proposed marketing strategy to ensure that
51
affirmative marketing efforts will be employed.
Management plans must include policies for ensuring reasonable accommodation for persons with
disabilities. Management plans must also contain policies and provisions for recordkeeping and
monitoring.
Marketing plans must include information on strategies for reaching persons and groups not likely
to apply including, but not limited to, households with a disabled member. Marketing plans must
also include procedures for ensuring that accessible units are occupied by people with disabilities
who require accessible features, as described below.
Marketing plans must include the use of the fair housing logotype and/or slogan, and use of a
logotype and/or slogan and fair housing posters must be displayed at the project rental or sales
office. Owners are required to advertise in newspapers of general circulation, and to provide notice
to community groups when units become available.
Marketing strategies must include use of a welcoming statement to encourage people with
disabilities to apply for units, as well as a description of available units, accessible features,
eligibility criteria, and the application process.
Marketing plans must indicate that qualified applicants with disabilities who request
accommodations shall receive priority for the accessible units. Open houses and marketing offices
must be accessible to allow disabled persons to visit the site and retrieve information about
accessible units.
PROCEDURES TOR OUTREACH TO PF:RSOv'S LEAST LIKE I TO APPLY
Owners are required to engage in special outreach to persons and groups in the housing market
area who, in the absence of such outreach are not likely to apply for the housing. In determining
what special outreach is needed, Owners should take into account past patterns of discrimination,
the racial and ethnic makeup of the neighborhood, language barriers, location, or other factors that
might make it less likely that some persons and groups (a) would be aware of the availability of
the housing or (b) would be likely to apply for the housing.
In particular, owners are required to advertise in media, which are reasonably likely to reach such
targeted groups, and to provide notice to community organizations, fair housing agencies, and
other similar organizations. A list of local disability organizations and community development
boards will be provided by DI-ICS upon request. Multilingual advertising is encouraged where
such efforts would result in reaching persons and groups not likely to apply.
SPECIFIC PROCEDURES FOR ENSURING THAT ACCESSIBLE UNITS ARE OCCUPIED BY
PEOPLE WITH DISABILITIES WHO REQUIRE ACCESSIBLE FEATURES
Outreach by owners to the community shall include the distribution of notices describing:
• the availability of all units;
• specific information regarding the availability and features of accessible units;
• eligibility criteria; and
• application procedures.
All application forms shall include information indicating that people with disabilities
requiring accessible features shall receive priority for accessible units. The application must
include a section to be filled out by any applicant requesting an accommodation with details on
52
the applicant's special needs for accessible features or other accommodations. Under no
circumstance should an applicant be required to disclose a disability unless requesting an
accommodation. This will allow developers to provide, upfront, any necessary accessible features
and/or accommodations for those people requesting accommodations.
Owners shall take reasonable nondiscriminatory steps to maximize the utilization of accessible
units by eligible individuals whose disability requires the accessibility features of the particular
unit. To this end, any vacant, accessible unit should first be offered to a current, disabled tenant of
the same project or comparable project under the owner's control.
The disabled occupant must require the features in the vacant unit and must be occupying a unit
not having such features. If no such occupant exists, the developer shall then offer the unit to a
qualified applicant on the waiting list who has a disability requiring the accessibility features of
the unit.
Furthermore, when offering an accessible unit to applicants without disabilities, the owner may
require such applicants to agree to move to a non-accessible unit when one becomes available or
when the accessible unit is needed by a disabled household. Such an agreement may be
incorporated into the lease.
Note: An owner may not prohibit an eligible family with a member who has a disability from
accepting a non-accessible unit, which may become available before an accessible unit. Owners
are required to modify such a non-accessible unit as needed or move a disabled household into a
unit that can be altered, unless the modifications would result in an undue financial and
administrative burden or alteration in the nature of a program. All applicants should be provided
information about how to request a reasonable accommodation at the time they apply for admission
and at every recertification.
RLCORDKEEPING AND MON! IORING
Owners must maintain records for at least five years regarding marketing and tenant selection
practices. Upon request, Owners are required to submit to the City copies of all advertisements
indicating the date the advertisements were placed and the media outlets which were used.
Owners must also provide copies of notices sent to community groups and a listing of those groups
to which notices were sent. Owners must maintain records regarding the characteristics of persons
applying for vacant units, and the characteristics (including race and familial status) of persons
actually selected for the units. Owners' records must also include the number, location, and
description of accessible units, and success in filling such units with people who need accessible
features or other accommodations. In addition, Owners should document any reasonable
accommodations made to, or requested by, tenants during the reporting year.
As part of the City's monitoring of assisted housing developments, the City will review the
Owners' records to verify that each qualified household living in an accessible unit has at least one
household member who needs the accessible features of the unit.
The duration of monitoring of Affirmative Fair Housing Marketing (AFHM) Requirements varies
with each housing program. For homeownership programs, AFHM requirements apply through
the completion of initial sales transactions on units covered by the approved AFHM plan. For
assisted rental housing, AFHM requirements apply throughout the term of the loan and regulatory
agreements, including those periods when the project does not maintain sustaining occupancy.
53
ANNUAL SURVEY AND CERTIFICATION
Housing providers should complete an annual survey and certification regarding its AFHMP and
submit it to the City. The Annual Survey and Certification must respond to all of the following:
1. A current Affirmative Fair Housing Marketing Plan (AFHMP) (Form HUD-935.2A) is
required of all City-assisted housing projects.
a. What is the date of the current AFHMP on file?
2. Does your site office /web site have the Equal Opportunity logo and statement posted?
3. How many units are currently vacant or have given notice to vacate?
4. How are vacant units advertised?
5. In the last year, have any applicants for units been rejected?
a. If yes, please provide reasons for rejection.
b. Did any rejected applicants have Housing Choice Vouchers (Section 8) or other rental
subsidy sources of income?
6. In the last year, have any residents been evicted?
a. If yes, provide list of evicted households including building and unit number and
reasons for eviction.
Project Name:
Project Address:
Owner Name:
Owner Address:
Signature of Owner or its Agent/ Representative: Date:
Printed name and Title:
ASSESSMEN I- OF SUCCESS AND CORRECTIVE AC'HONS
The City will review records maintained by owners to ensure that Affirmative Fair Housing
Marketing requirements are being met. Where the characteristics of applicants are significantly
different from the make-up of the City's population (i.e., in cases where specific groups are over-
represented or under-represented), the City will examine in more detail the owner's actions to
determine if a violation of the requirements has occurred.
The City employs a variety of corrective actions. Initially, owners who have not fully complied
with the requirements are directed to engage in targeted marketing efforts to reach groups not
initially reached. In cases where owners refuse to comply with the affirmative fair marketing
procedures, the City may take additional actions to secure performance under the loan agreement,
including declaring the loan in default and recapturing the funds.
54
EXHIBIT H
LEGAL DESCRIPTION
LEGAL DESCRIPTION
(2)TWO PARCELS OF LAND BEING A PORTION OF HOUSING SUBDIVISION RECORDED ON MAY 24, 1952 IN THE
OFFICE OF THE CLERK AND RECORDER OF THE COUNTY OF PUEBLO UNDER RECEPTION NUMBER 913457(BOOK 16,
PAGE 3),A PORTION OF LOT 13, BLOCK 23 OF UPLANDS PARK RECORDED ON FEBRUARY 19, 1886 IN SAID RECORDS
IN BOOK 2B AT PAGES 33-34 AND A PORTION OF UPLANDS TOWNHOMES FILING NO. 2 RECORDED ON DECEMBER
6, 2019 IN SAID RECORDS UNDER RECEPTION NUMBER 2161535; LOCATED IN THE NORTHWEST ONE-QUARTER OF
SECTION 11,TOWNSHIP 21 SOUTH, RANGE 65 WEST OF THE 6TH PRINCIPAL MERIDIAN; MORE PARTICULARLY
DESCRIBED AS FOLLOWS WITH BEARINGS REFERENCED TO THE NORTH LINE OF SAID HOUSING SUBDIVISION,
MONUMENTED ON THE WEST END BY A FOUND 1-1/2"ALUMINUM TAG STAMPED"MANGINI REEVES INC, PLS
22101"AND ON THE EAST END BY A FOUND 1"YELLOW PLASTIC CAP STAMPED"CARDINAL, PLS 22101" (A 1-FOOT
WITNESS CORNER),AND IS ASSUMED TO BEAR NORTH 88°54'18" EAST 1253.48 FEET.
PARCEL 1
COMMENCING AT THE WEST END OF SAID NORTH LINE;SAID POINT BEING ALSO THE NORTHWEST CORNER OF
SAID HOUSING SUBDIVISION AND A POINT ON THE EAST RIGHT-OF-WAY LINE OF SOUTH PRAIRIE AVENUE;THENCE
NORTH 88°54'18" EAST,ON SAID NORTH LINE OF HOUSING SUBDIVISION,A DISTANCE OF 381.43 FEET TO THE
POINT OF BEGINNING;
THENCE CONTINUE NORTH 88°54'18" EAST ON SAID NORTH LINE,A DISTANCE OF 230.44 FEET TO THE
NORTHWESTERLY CORNER OF SAID UPLANDS TOWNHOMES FILING NO. 2;
THENCE ON THE EXTERIOR OF SAID UPLANDS TOWNHOMES FILING NO. 2 THE FOLLOWING (4) FOUR COURSES:
1. THENCE SOUTH 01°05'42" EAST,A DISTANCE OF 178.95 FEET;
2. THENCE SOUTH 89°26'28" WEST,A DISTANCE OF 32.02 FEET;
3. THENCE SOUTH 01°06'56" EAST,A DISTANCE OF 60.09 FEET;
4. THENCE SOUTH 44°14'08" WEST,A DISTANCE OF 41.63 FEET TO A 184.06 FOOT RADIUS NON-TANGENT
CURVE WHOSE CENTER BEARS NORTH 13°35'26"WEST, BEING ALSO THE NORTHERLY RIGHT-OF-WAY LINE
OF TRIBAL NATIONS AVENUE,AS SHOWN ON THE PLAT OF SAID UPLANDS TOWNHOMES FILING NO. 2;
THENCE ON SAID EXTERIOR THE FOLLOWING (4) FOUR COURSES:
1. THENCE WESTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 05°56'58",AN ARC DISTANCE OF
19.11 FEET TO A 28.73 FOOT RADIUS NON-TANGENT CURVE WHOSE CENTER BEARS NORTH 07°32'42"
WEST;
2. THENCE WESTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 51°19'09",AN ARC DISTANCE OF
25.74 FEET;
3. THENCE NORTH 46°13'38"WEST,A DISTANCE OF 64.92 FEET;
4. THENCE SOUTH 43°46'26" WEST,A DISTANCE OF 2.99 FEET TO THE NORTHEASTERLY CORNER OF SITTER
PLACE,AS SHOWN ON THE PLAT OF SAID HOUSING SUBDIVISION;
THENCE NORTH 46°05'32" WEST ON THE NORTHERLY RIGHT-OF-WAY LINE OF SAID SITTER PLACE,A DISTANCE OF
22.57 FEET;
THENCE NORTH 48°21'35" EAST,A DISTANCE OF 17.11 FEET;
THENCE NORTH 01°06'04" WEST,A DISTANCE OF 47.47 FEET;
THENCE SOUTH 88°53'56" WEST,A DISTANCE OF 76.58 FEET;
THENCE NORTH 00°38'19" WEST,A DISTANCE OF 144.77 FEET TO THE POINT OF BEGINNING.
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 47,937 SQUARE FEET OR(1.10048 ACRES),
MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
55
PARCEL 2
COMMENCING AT THE WEST END OF SAID NORTH LINE OF HOUSING SUBDIVISION;SAID POINT BEING ALSO THE
NORTHWEST CORNER OF SAID HOUSING SUBDIVISION AND A POINT ON THE EAST RIGHT-OF-WAY LINE OF SOUTH
PRAIRIE AVENUE;
THENCE SOUTH 01°05'45" EAST ON SAID EAST RIGHT-OF-WAY LINE,A DISTANCE OF 477.95 FEET TO THE POINT OF
BEGINNING;
THENCE NORTH 88°53'56" EAST,A DISTANCE OF 260.82 FEET;
THENCE NORTH 01°06'02" WEST,A DISTANCE OF 83.87 FEET;
THENCE NORTH 88°54'36" EAST,A DISTANCE OF 178.06 FEET;
THENCE NORTH 00°50'50" WEST,A DISTANCE OF 49.79 FEET;
THENCE NORTH 89°45'13" EAST,A DISTANCE OF 22.78 FEET;
THENCE NORTH 01°06'04"WEST,A DISTANCE OF 46.64 FEET TO THE EXTERIOR OF SAID UPLANDS TOWNHOMES
FILING NO. 2, BEING ALSO THE SOUTHERLY RIGHT-OF-WAY LINE OF SITTER PLACE,AS SHOWN ON THE PLAT OF
SAID UPLANDS TOWNHOMES FILING NO. 2;
THENCE ON SAID EXTERIOR,SAID SOUTHERLY RIGHT-OF-WAY LINE,AND THE SOUTHERLY RIGHT-OF-WAY LINE OF
TRIBAL NATIONS AVENUE,AS SHOWN ON THE PLAT OF SAID UPLANDS TOWNHOMES FILING NO.2,THE
FOLLOWING (2)TWO COURSES:
1. THENCE SOUTH 46°13'38" EAST,A DISTANCE OF 15.21 FEET TO A 72.76 FOOT RADIUS NON-TANGENT
CURVE WHOSE CENTER BEARS NORTH 43°46'21" EAST;
2. THENCE SOUTHEASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 15°53'10",AN ARC DISTANCE
OF 20.17 FEET TO A 75.64 FOOT RADIUS NON-TANGENT CURVE WHOSE CENTER BEARS NORTH 27°59'04"
EAST;
THENCE CONTINUE ON SAID SOUTHERLY RIGHT-OF-WAY LINE OF TRIBAL NATIONS AVENUE THE FOLLOWING(7)
SEVEN COURSES:
1. THENCE EASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 23°09'13",AN ARC DISTANCE OF
30.57 FEET TO A 300.00 FOOT RADIUS REVERSE CURVE;
2. THENCE EASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 10°01'39",AN ARC
DISTANCE OF 52.50 FEET TO A 39.00 FOOT RADIUS COMPOUND CURVE;
3. THENCE SOUTHEASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 25°37'02",AN ARC DISTANCE
OF 17.44 FEET TO A 63.17 FOOT RADIUS REVERSE CURVE;
4. THENCE EASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 83°11'16",AN ARC
DISTANCE OF 91.72 FEET TO A 38.83 FOOT RADIUS REVERSE CURVE;
5. THENCE NORTHEASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 25°31'58",AN ARC
DISTANCE OF 17.30 FEET TO A 301.18 FOOT RADIUS COMPOUND CURVE;
6. THENCE EASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 08°14'17",AN ARC DISTANCE OF
43.30 FEET;
7. THENCE NORTH 88°54'27" EAST,A DISTANCE OF 527.92 FEET TO THE EXTERIOR OF SAID UPLANDS
TOWNHOMES FILING NO. 2, BEING ALSO THE WESTERLY RIGHT-OF-WAY LINE OF ACERO AVENUE;
THENCE SOUTH 01°05'33" EAST ON SAID EXTERIOR AND SAID WESTERLY RIGHT-OF-WAY LINE, A DISTANCE OF
31.69 FEET TO THE SOUTHEASTERLY CORNER OF SAID UPLANDS TOWNHOMES FILING NO. 2, BEING ALSO THE
NORTHEASTERLY CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK;
THENCE CONTINUE SOUTH 01°05'33" EAST ON SAID EXTERIOR AND SAID WESTERLY RIGHT-OF-WAY LINE,A
DISTANCE OF 297.23 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK, BEING
ALSO THE INTERSECTION OF SAID WESTERLY RIGHT-OF-WAY LINE WITH THE NORTHERLY RIGHT-OF-WAY LINE OF
SPRAGUE AVENUE;
THENCE SOUTH 88°54'57" WEST ON SAID EXTERIOR AND SAID NORTH RIGHT-OF-WAY LINE,A DISTANCE OF 626.63
FEET TO THE SOUTHWEST CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK AND THE SOUTHEAST CORNER
56
OF BLOCK 3 OF SAID HOUSING SUBDIVISION;
THENCE CONTINUE SOUTH 88°54'57"WEST ON THE EXTERIOR OF SAID HOUSING SUBDIVISION AND SAID NORTH
RIGHT-OF-WAY LINE,A DISTANCE OF 626.81 FEET THE SOUTHWEST CORNER OF SAID HOUSING SUBDIVISION,
BEING ALSO THE INTERSECTION OF SAID NORTH RIGHT-OF-WAY LINE WITH SAID EAST RIGHT-OF-WAY LINE OF
SOUTH PRAIRIE AVENUE;
THENCE NORTH O1°05'45" WEST ON SAID EXTERIOR AND SAID EAST RIGHT-OF-WAY LINE,A DISTANCE OF 181.65
FEET TO THE POINT OF BEGINNING.
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 359,855 SQUARE FEET OR(8.26114 ACRES),
MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
THE OVERALL PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 407,792 SQUARE FEET OR(9.36162
ACRES), MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
57
Official Records of Pueblo County Clerk & Recorder 2285974
07/29/2022 12:26:21 PM Page 1 of 9
Deed Of Trust R: $53.00 D: $0.00 Gilbert Ortiz
DEED OFOF TRU9
.
THIS DEED OF TRUST, made this e day of July 2022,between Crawford Townhomes,LLLP,a
Colorado limited liability limited partnership,with an address of c/o El Centro Pueblo Development Corporation,Inc.,
201 South Victoria Avenue,Pueblo,Colorado 81003,hereinafter referred to as"Grantor," and the Public Trustee of
the County of Pueblo,in the State of Colorado,hereinafter referred to as"Trustee,"WITNES SETH:
^1UREAS,Grantor has entered into the City of Pueblo Affordable Housing Development Agreement dated
the s r day of July 2022 with the City of Pueblo, a Municipal Corporation, hereinafter referred to as the
"Agreement;"and
WHEREAS,the Grantor has executed a Promissory Note,hereinafter referred to as the "Note," dated the
Lay of July 2022 for the principal sum of Five Hundred Thousand and No/100 Dollars(U.S.S500,000.00),
payable to the order of the City of Pueblo,a Municipal Corporation, located at 1 City Hall Place,Pueblo,Colorado
81003,which amount is an indebtedness of Grantor payable with interest in accordance with the terms of said Note;
and,
WHEREAS, the Grantor is desirous of securing performance of all obligations of Grantor under said
Agreement and Note and payment of the indebtedness as specified therein.
NOW, THEREFORE, the Grantor, in consideration of the premises and for the purposes aforesaid, does
hereby grant,bargain,sell and convey unto Trustee in trust forever,for the use and benefit of the City of Pueblo,a
Municipal Corporation(the"Beneficiary"),the following described property,situated in the County of Pueblo, State
of Colorado to wit:
See Exhibit A
Also known as Crawford Townhomes,Phase 2A
TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances
thereunto belonging: In Trust Nevertheless, That in case of default in the Note or any part thereof or payment as
specified therein,according to the tenor and effect of said Note,or in the payment of any prior encumbrances,principal
or interest,if any,or in case of a breach of any term of the Agreement,or in case default shall be made in or in case
of violation or breach of any of the terms, conditions, covenants or agreements herein contained, the Beneficiary
hereunder may declare a violation of any of the covenants herein contained and elect to advertise said property for
sale and demand such sale,then,upon filing notice of such election and demand for sale with the Trustee,who shall
upon receipt of such notice of election and demand for sale cause a copy of the same to be recorded in the recorder's
office of the county in which said real estate is situated,it shall and may be lawful for said Trustee to sell and dispose
of the same(en masse or in separate parcels,as the said Trustee may think best),and all the right,title and interest of
Grantor,its successors or assigns therein,at public auction at the south front door of the Court House,in the County
of Pueblo,State of Colorado,or on said premises,or any part thereof as may be specified in the notice of said sale,
for the highest and best price the same will bring in cash,four weeks'public notice having been previously given of
the time and place of such sale, by advertisement, weekly, in some newspaper of general circulation at that time
published in said County of Pueblo,a copy of which notice shall be mailed within ten days from the date of the first
publication thereof to the Grantor at the address herein given and to such person or persons appearing to have acquired
a subsequent record interest in said real estate at the address given in the recorded instrument;where only the county
and state is given as the address then such notice shall be mailed to the county seat, and to make and give to the
purchaser or purchasers of such property at such sale,a certificate or certificates in writing describing such property
purchased,and the sum or sums paid therefor,and the time when the purchaser or purchasers(or other person entitled
thereto)shall be entitled to a deed or deeds therefor,unless the same shall be redeemed as is provided by law;and said
Trustee shall,upon demand by the person or persons holding the same certificate of purchase,when said demand is
made,or upon demand by the person entitled to a deed to and for the property purchased,at the time such demand is
made,the time for redemption having expired,make and execute to such person or persons a deed or deeds to the said
property purchased,which said deed or deeds shall be in the ordinary form of a conveyance, and shall be signed,
DEED OF TRUST .P A
THIS DEED OF TRUST, made this 42,-.4-day of July 2022,between Crawford Townhomes, LLLP, a
Colorado limited liability limited partnership,with an address of c/o El Centro Pueblo Development Corporation,Inc.,
201 South Victoria Avenue, Pueblo,Colorado 81003, hereinafter referred to as "Grantor," and the Public Trustee of
the County of Pueblo,in the State of Colorado,hereinafter referred to as"Trustee,"WITNESSETH:
REAS,Grantor has entered into the City of Pueblo Affordable Housing Development Agreement dated
IE
the day of July 2022 with the City of Pueblo, a Municipal Corporation, hereinafter referred to as the
"Agree ent;"and
WHEREAS, the Grantor has executed a Promissory Note, hereinafter referred to as the "Note," dated the
'�, ? day of July 2022 for the principal sum of Five Hundred Thousand and No/100 Dollars(U.S.$500,000.00),
payable to the order of the City of Pueblo, a Municipal Corporation, located at 1 City Hall Place, Pueblo, Colorado
81003,which amount is an indebtedness of Grantor payable with interest in accordance with the terms of said Note;
and,
WHEREAS, the Grantor is desirous of securing performance of all obligations of Grantor under said
Agreement and Note and payment of the indebtedness as specified therein.
NOW, THEREFORE, the Grantor, in consideration of the premises and for the purposes aforesaid, does
hereby grant, bargain, sell and convey unto Trustee in trust forever, for the use and benefit of the City of Pueblo, a
Municipal Corporation(the "Beneficiary"),the following described property,situated in the County of Pueblo, State
of Colorado to wit:
See Exhibit A
Also known as Crawford Townhomes,Phase 2A
TO HAVE AND TO HOLD the same, together with all and singular the privileges and appurtenances
thereunto belonging: In Trust Nevertheless, That in case of default in the Note or any part thereof or payment as
specified therein,according to the tenor and effect of said Note,or in the payment of any prior encumbrances,principal
or interest, if any,or in case of a breach of any term of the Agreement, or in case default shall be made in or in case
of violation or breach of any of the terms, conditions, covenants or agreements herein contained, the Beneficiary
hereunder may declare a violation of any of the covenants herein contained and elect to advertise said property for
sale and demand such sale, then, upon filing notice of such election and demand for sale with the Trustee,who shall
upon receipt of such notice of election and demand for sale cause a copy of the same to be recorded in the recorder's
office of the county in which said real estate is situated,it shall and may be lawful for said Trustee to sell and dispose
of the same(en masse or in separate parcels,as the said Trustee may think best),and all the right,title and interest of
Grantor,its successors or assigns therein,at public auction at the south front door of the Court House,in the County
of Pueblo, State of Colorado,or on said premises, or any part thereof as may be specified in the notice of said sale,
for the highest and best price the same will bring in cash, four weeks' public notice having been previously given of
the time and place of such sale, by advertisement, weekly, in some newspaper of general circulation at that time
published in said County of Pueblo,a copy of which notice shall be mailed within ten days from the date of the first
publication thereof to the Grantor at the address herein given and to such person or persons appearing to have acquired
a subsequent record interest in said real estate at the address given in the recorded instrument;where only the county
and state is given as the address then such notice shall be mailed to the county seat, and to make and give to the
purchaser or purchasers of such property at such sale,a certificate or certificates in writing describing such property
purchased,and the sum or sums paid therefor,and the time when the purchaser or purchasers(or other person entitled
thereto)shall be entitled to a deed or deeds therefor,unless the same shall be redeemed as is provided by law;and said
Trustee shall, upon demand by the person or persons holding the same certificate of purchase, when said demand is
made,or upon demand by the person entitled to a deed to and for the property purchased,at the time such demand is
made,the time for redemption having expired,make and execute to such person or persons a deed or deeds to the said
property purchased, which said deed or deeds shall be in the ordinary form of a conveyance, and shall be signed,
acknowledged and delivered by the said Trustee,as grantor,and shall convey and quit-claim to such person or persons
entitled to such deed,as grantee,the said property purchased as aforesaid and all the right,title, interest, benefit and
equity of redemption of the Grantor,its successors and assigns therein,and shall recite the sum or sums for which the
said property was sold and shall refer to the power of sale therein contained, and to the sale or sales made by virtue
thereof; and in case of an assignment of such certificate or certificates of purchase, or in case of the redemption of
such property, by a subsequent encumbrancer, such assignment or redemption shall also be referred to in such deed
or deeds;but the notice of sale need not be set out in such deed or deeds and the said Public Trustee shall,out of the
proceeds or avails of such sale,after first paying and retaining all fees,charges and costs of making said sale, pay to
the Beneficiary hereunder or the legal holder of the indebtedness,all moneys and amounts due,according to the tenor
and effect thereof, and all moneys advanced by such Beneficiary or legal holder of said indebtedness for insurance,
taxes and assessments,with interest thereon at twelve percent per annum,rendering the overplus, if any,unto the said
Grantor,his legal representatives or assigns; which sale or sales and said deed or deeds so made shall be a perpetual
bar, both in law and equity, against the Grantor, its successors and assigns, and all other persons claiming the said
property,or any part thereof,by,from,through or under said Grantor,or any of them. The Beneficiary or holders of
the indebtedness may purchase said property or any part thereof;and it shall not be obligatory upon the purchaser or
purchasers at such sale to see to the application of the purchase money. If a release deed be required,it is agreed that
Grantor,its successors,and assigns,will pay the expense thereof.
And the Grantor, for itself and for its successors and assigns covenants and agrees to and with the Trustee,
that at the time of the ensealing of and delivery of these presents he is well seized of the said land and tenements in
fee simple, and has good right, full power and lawful authority to grant, bargain, sell and convey the same in the
manner and form as aforesaid;hereby fully and absolutely waiving and releasing all rights and claims he may have in
or to said lands,tenements and property as a Homestead Exemption,or other exemption,now existing or which may
hereafter be enacted in relation thereto and that,subject to the stated title exceptions attached hereto in Exhibit B,the
same are free and clear of all liens and encumbrances whatsoever, and the above bargained property shall be in the
quiet and peaceable possession of the said Trustee,his successors and assigns,against all and every person or persons
lawfully claiming or to claim the whole or any part thereof, the said Grantor shall and will Warrant and Forever
Defend.
And that during the continuance of said Note or the indebtedness arising thereunder,the said Grantor will in
due season pay all taxes and assessments levied on said property;all amounts due on account of principal and interest
on prior encumbrances,if any;and will keep all buildings that may at any time be on said lands, insured against loss
by fire with extended coverage endorsements in a company authorized to issue such insurance in the State of Colorado,
for such sum or sums as such company or companies will insure for, not to exceed the amount of said indebtedness
and any prior encumbrances, except at the option of said Grantor, with loss, if any, payable to the Beneficiary
hereunder,as its interest may appear,and will deliver the policy or policies of insurance to the Beneficiary hereunder,
as further security for the indebtedness aforesaid. And in case of the failure of Grantor to thus insure and deliver the
policies of insurance,or to pay such taxes or assessments or amounts due or to become due on any prior encumbrances,
if any,then the Beneficiary or Note Holder(as such term is defined in the Note)may procure such insurance,or pay
such taxes or assessments or amount due upon prior encumbrances, if any, and all moneys thus paid, with interest
thereon at twelve percent per annum, shall become so much additional indebtedness, secured by this Deed of Trust,
and shall be paid out of the proceeds of the sale of the property aforesaid, if not otherwise paid by Grantor, and
Beneficiary or Note Holder may for such failure declare a violation of this covenant and agreement.
If all or any part of the property or an interest therein is sold or transferred by Grantor without Beneficiary's
prior written consent,excluding the creation of a lien or encumbrance subordinate to this Deed of Trust, Beneficiary
may, at Beneficiary's option,declare all the sums secured by this Deed of Trust to be immediately due and payable,
together with interest thereon at the rate of four percent(4%)per annum from the time of substantial completion of
the Project until said repayment is made.Neither the substitution nor addition of the limited partner or special limited
partner of the Grantor, or partners of such limited partner or special limited partner, pursuant to the terms of the
Grantor's partnership agreement,nor the transfer of interests in the Grantor's limited partner or special limited partner
pursuant to the terms of the Grantor's partnership agreement,shall constitute a default under this Deed of Trust unless
such a change results in the Grantor breaching federal affordability requirements pursuant to the Agreement or such a
change results in a loss of substantial equity from the property. Beneficiary's consent shall be required for any new
mortgage debt,where such consent shall not be unreasonably withheld,provided however that Beneficiary consents
to the refinancing of the Colorado Housing Finance Agency's Capital Magnet Fund loan in the amount of$400,000.00.
AND THAT IN CASE OF ANY DEFAULT, Including but not limited to any breach of the affordability
requirements detailed in the Agreement,Note,or as otherwise may be required pursuant to 24 C.F.R.Part 92,whereby
the right of foreclosure occurs hereunder,the Trustee or the Beneficiary or holder of certificate of purchase, shall at
once become entitled to the possession,use and enjoyment of the property aforesaid,and to the rents,issues and profits
thereof,from the accruing of such right and during the pendency of foreclosure proceedings and through the period of
redemption, if any there be; and such possession shall at once be delivered to the Trustee or the Beneficiary or the
holder of the certificate of purchase on request, and on refusal,the delivery of such possession may be enforced by
the Trustee or the Beneficiary or holder of the certificate of purchase by any appropriate civil suit or proceeding,and
the Trustee or Beneficiary or the holder of the certificate of purchase,or any thereof, shall be entitled to a Receiver
for said property, and of the rents, issues and profits thereof, after such default, including the time covered by
foreclosure proceedings and the period of redemption, if any there be,and shall be entitled thereto as a matter of right
without regard to the solvency or insolvency of the Grantor or of the then owner of said property and without regard
to the value thereof, and such Receiver may be appointed by any court of competent jurisdiction upon ex parte
application and without notice--notice being hereby expressly waived--and all rents, issues and profits, income and
revenue therefrom shall be applied by such Receiver to the payment of the indebtedness hereby secured,according to
the law and the orders and directions of the Court.
AND,That in case of default in any of said payments of principal or interest,according to the tenor and effect
of said Note aforesaid,or any part thereof, or a breach of any term of the Agreement,or of a breach or violation of
any of the covenants or agreements herein, by the Grantor, its successors or assigns,then and in that case the whole
of the indebtedness hereby secured,and the interest thereon to the time of the sale, may at once, at the option of the
Beneficiary or the legal holder of the indebtedness, become due and payable, and the said property be sold in the
manner and with the same effect as if said indebtedness had matured, and that if foreclosure be made by the Public
Trustee,a reasonable attorney's fee for services in the supervision of said foreclosure proceedings shall be allowed by
the Public Trustee as part of the cost of foreclosure, and if foreclosure be made through the courts a reasonable
attorney's fee shall be taxed by the court as a part of the costs of such foreclosure proceedings.
The final payment of the Note and performance of the Agreement and other obligations secured by this Deed
of Trust are due on January 15,2044.
Notwithstanding anything to the contrary contained in this Deed of Trust or the Note being secured hereby,
Equity Investor(as defined below)shall have the right,but not the obligation,to cure defaults of Grantor.
Any notice from the Beneficiary to the Grantor under this Deed of Trust shall be deemed to have been
received by the Grantor three(3)days after being mailed by certified mail,return receipt requested,to the Grantor at
201 South Victoria Avenue, Pueblo, CO 81003, or at such other address as Grantor may designate in writing to
Beneficiary. Copies of any and all notices given by Beneficiary to the Grantor shall be sent, in the same manner as
such notice is given to the Grantor,to the Grantor's limited partner(the"Equity Investor")at the following address:
RBC Community Investments, LLC, Attention: President and General Counsel, 600 Superior Avenue, Suite 2300,
Cleveland, Ohio 44114, and Applegate & Thorne-Thomsen, P.C., Attention: Bennett P. Applegate, Esq., 425 S.
Financial Place, Suite 1900,Chicago, Illinois 60605. Equity Investor may change its address for receipt of copies of
notices by giving notice in writing stating its new address to the Beneficiary. Commencing on the tenth (10th) day
after the giving of such notice, such newly designated address shall be effective for purposes of all such copies of
notices required to be sent by the Beneficiary to the Equity Investor.
Nothing in this Deed of Trust is intended,nor shall it be construed,to grant any rights whatsoever to Grantor
or create any condition precedent to the exercise of any right or remedy by the Beneficiary; nor shall any
noncompliance with the requirements of this Deed of Trust constitute any defense against enforcement of the Note or
this Deed of Trust, including without limitation, Beneficiary's right to accelerate maturity of the entire indebtedness
and demand sale of the said property.
The person signing this Deed of Trust on behalf of the Grantor represents and warrants that he or she has the
requisite power and authority to enter into, execute, and deliver this Deed of Trust on behalf of the Grantor and that
this Deed of Trust is a valid and legally binding obligation of Grantor enforceable against it in accordance with its
terms.
Should any provisions of this Deed of Trust be found to violate the statutes or court decisions of the State of
Colorado,or of the United States,such provision shall be deemed to be amended to comply with and conform to such
statutes and decisions.
RAD Rider. The RAD Rider attached to this Deed of Trust as Exhibit C is,by this reference, incorporated
into and deemed a part of this Deed of Trust. In the event of a conflict between any provisions of this Deed of Trust
and any provisions of the RAD Rider,the provisions of the RAD Rider shall control.
IN WITNESS, WHEREOF,the Grantor has hereunto set its hand and seal the day and year first above written.
GRANTOR:
CRAWFORD TOWNHOMES, LLLP, a Colorado
limited liability limited partnership
By: Crawford MM, LLC,
a Colorado limited liability company, its general
partner
By: El Centro Pueblo Development
Corporation, Inc.,
a Colorad', non-profit corporation, its sole member
By: In ' .
Steven L.Trujillo, Secretary/Tre surer
STATE OF COLORADO )
ss.
COUNTY OF (,t 1)_b 1 c) )
The foregoing instrument was acknowledged before me in G--24..Q_Lio County,Colorado,this
'5 day of gGc-� " - , 20 oy Sfe U2it�,�ni//ig �PC_/6NGt..�e1 on behalf of
`� J
Crawford Townhomes,LLLP,A Colorado Limited Liability Limited Partnership.
Witness my hand and official seal. 'f
My commission expires. (,(�.' / .D.)
[SEAL] QMjlfl. Al / / �cL 1 �.
Notary Public —
V v
TAMMY A.MARTINEZ
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20164028200
MY COMMISSION EXPIRES 07/20/2024
EXHIBIT A
LEGAL DESCRIPTION
(2)TWO PARCELS OF LAND BEING A PORTION OF UPLANDS TOWNHOMES FILING NO. 3
RECORDED ON JULY 8,2022 IN THE OFFICE OF THE CLERK AND RECORDER OF THE COUNTY
OF PUEBLO UNDER RECEPTION NUMBER 2283787;LOCATED IN THE NORTHWEST ONE-
QUARTER OF SECTION 11,TOWNSHIP 21 SOUTH,RANGE 65 WEST OF THE 6TH PRINCIPAL
MERIDIAN;MORE PARTICULARLY DESCRIBED AS FOLLOWS WITH BEARINGS REFERENCED
TO THE NORTH LINE OF SAID HOUSING SUBDIVISION,MONUMENTED ON THE WEST END BY
A FOUND 1-1/2"ALUMINUM TAG STAMPED"MANGINI REEVES INC,PLS 22101"AND ON THE
EAST END BY A FOUND 1"YELLOW PLASTIC CAP STAMPED"CARDINAL, PLS 22101"(A 1-FOOT
WITNESS CORNER),AND IS ASSUMED TO BEAR NORTH 88°54'18"EAST 1253.48 FEET.
PARCEL 1
LOT 1 OF SAID UPLANDS TOWNHOMES FILING NO. 3 PLAT.
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 47,937 SQUARE FEET
OR(1.10048 ACRES),MORE OR LESS.
PARCEL 2
LOT 2 OF SAID UPLANDS TOWNHOMES FILING NO. 3 PLAT; EXCEPTING(2)PARCELS OF LAND:
EXCEPTION PARCEL#1
THAT PART OF SAID LOT 2 THAT LIES WITHIN A PUBLIC UTILITY EASEMENT
DESCRIBED AS "TRACT B" IN UPLANDS TOWNHOMES FILING NO. 2 RECORDED ON
DECEMBER 6, 2019 IN SAID RECORDS UNDER RECEPTION NUMBER 2161535.
EXCEPTION PARCEL#2
BEGINNING AT THE NORTHERN MOST CORNER OF SAID "TRACT B";
THENCE S44°05'45"W AND COINCIDENT WITH THE NORTHWESTERN LINE OF SAID
"TRACT B",A DISTANCE OF 37.85 FEET;
THENCE NOl°06'04"W,A DISTANCE OF 2.84'TO PASS AN INTERIOR CORNER OF SAID
LOT 2,CONTINUING AND COINCIDENT WITH A WESTERN LINE OF SAID LOT 2 A TOTAL
DISTANCE OF 49.49 FEET;
THENCE S46°13'38"E, A DISTANCE OF 15.21 FEET TO THE POINT OF CURVE OF A NON
TANGENT CURVE TO THE LEFT,OF WHICH THE RADIUS POINT LIES N43°46'21"E,A
RADIAL DISTANCE OF 72.76 FEET;
THENCE SOUTHEASTERLY ALONG THE ARC,THROUGH A CENTRAL ANGLE OF
15°53'10",A DISTANCE OF 20.17 FEET TO THE POINT OF BEGINNING.
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 142,109 SQUARE FEET
OR(3.26238 ACRES),MORE OR LESS.
THE OVERALL PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 190,046 SQUARE
FEET OR(4.36286 ACRES),MORE OR LESS
PARCEL 3
EASEMENT ESTATE FOR A NON-EXCLUSIVE EASEMENT FOR ACCESS AND SHARED USE AS
SET FORTH BY RECIPROCAL EASEMENT AND SHARED USE AGREEMENT RECORDED ON OR
ABOUT THE DATE HEREOF.
EXHIBIT B
TO
DEED OF TRUST
TITLE EXCEPTIONS
EXHIBIT B
TO
DEED OF TRUST
TITLE EXCEPTIONS
UTILITY EASEMENTS ON THE PLAT OF HOUSING SUBDIVISION RECORDED MAY 24, 1952 UNDER
RECEPTION NO.913457. (AFFECTS PARCEL 1)
EASEMENT GRANTED TO PUEBLO GAS AND FUEL COMPANY, FOR GAS PIPELINE, AND
INCIDENTAL PURPOSES, BY INSTRUMENT RECORDED JULY 06, 1953, IN BOOK 1214 AT PAGE I.
(AFFECTS PARCELS 1 AND 2)
THE EFFECT OF INCLUSION OF SUBJECT PROPERTY IN THE LOWER ARKANSAS VALLEY WATER
CONSERVANCY DISTRICT, AS EVIDENCED BY INSTRUMENT RECORDED DECEMBER 13, 2002,
UNDER RECEPTION NO. 1474320 AND NOTICE RECORDED JANUARY 4,2010 UNDER RECEPTION NO.
1829179.
TERMS, CONDITIONS, PROVISIONS, BURDENS AND OBLIGATIONS AS SET FORTH IN THE PHA BY
THE DECLARATION OF TRUST RECORDED NOVEMBER 20,2009 AT RECEPTION NO. 1825208; AND
RECORDED AUGUST 26,2010 AT RECEPTION NO. 1851450; AND RECORDED OCTOBER 7,2003 AT
RECEPTION NO. 1530006 .
TERMS, CONDITIONS, PROVISIONS, BURDENS, OBLIGATIONS AND EASEMENTS AS SET FORTH AND
GRANTED IN GRANT OF EASEMENT RECORDED MARCH 14, 2018 UNDER RECEPTION NO. 2099376.
(AFFECTS PARCELS I AND 2 )
THE EFFECT OF ORDINANCE NO. 9376, AN ORDINANCE AMENDING ZONING RESTRICTIONS
RECORDED DECEMBER 06,2018 UNDER RECEPTION NO.2124936.
TERMS,CONDITIONS, PROVISIONS AND OBLIGATIONS CONTAINED IN DEVELOPMENT GUIDE FOR
UPLANDS TOWNHOMES PHASE 2, PLANNED UNIT DEVELOPMENT RECORDED DECEMBER 06, 2018,
UNDER RECEPTION NO.2124937.
EASEMENTS, CONDITIONS,COVENANTS, RESTRICTIONS, RESERVATIONS AND NOTES ON THE
PLAT OF UPLANDS TOWNHOMES FILING NO. 3 RECORDED JULY 08, 2022 UNDER RECEPTION NO.
2283787.NOTE: SAID PLAT OF UPLAND TOWNHOMES FILING NO. 3 STORED AS OUR IMAGE
51317864
RENTAL ASSISTANCE DEMONSTRATION USE AGREEMENT EXECUTED BY HUD AND CRAWFORD
TOWNHOMES LLLP RECORDED JULY 2022 UNDER RECEPTION NO.
TERMS, CONDITIONS, PROVISIONS, BURDENS AND OBLIGATIONS AS SET FORTH IN CRAWFORD
STREET& EASEMENT VACATION CONTAINED IN ORDINANCE 9884 RECORDED JULY 08, 2022
UNDER RECEPTION NO.2283784,2283785.
TERMS, CONDITIONS, PROVISIONS, BURDENS AND OBLIGATIONS AS SET FORTH IN ORDINANCE
NO. 9885 APPROVING THE UPLAND TOWNHOMES FILING NO. 3 SUBDIVISION RECORDED JULY 08,
2022 UNDER RECEPTION NO.2283786.
TERMS, CONDITIONS, PROVISIONS, BURDENS AND OBLIGATIONS AS SET FORTH IN SUBDIVISION
IMPROVEMENT AGREEMENT FOR UPLANDS TOWNHOMES PHASE 3 RECORDED JULY 08,2022
UNDER RECEPTION NO. 2283788.
TERMS,CONDITIONS, PROVISIONS, BURDENS AND OBLIGATIONS AS SET FORTH IN STORM WATER
FACILITY MAINTENANCE AGREEMENT RECORDED JULY 08,2022 UNDER RECEPTION NO.2283789.
EXHIBIT C
TO
DEED OF TRUST
RAD RIDER
This RAD Rider to Loan Documents(the"Rider") modifies the Deed of Trust(HOME)(the"Deed of Trust")and
any documents executed in connection therewith entered into between the City of Pueblo, a municipal corporation
("Lender") and Crawford Townhomes, LLLP, a Colorado limited liability limited partnership ("Borrower"), in
connection with a loan by Lender to Borrower(the"Loan")to be used in financing five(5)units of affordable housing
in a 49-unit affordable housing rental development of which 49 of the units are RAD(defined below)units known as
Crawford Townhomes(the"Project")on the property described in Exhibit A to the Deed of Trust(the"Property").
WHEREAS,the Loan is evidenced and/or secured by the following documents and agreements(collectively
with all other agreements, instruments and documents now or hereafter executed in connection with the Loan,all as
may be amended,supplemented or replaced from time to time in accordance with the terms thereof,the"Subordinate
Documents"):
A. This Deed of Trust by and between Borrower and the Public Trustee of the County of Pueblo,
Colorado for the benefit of Lender;
B. City Promissory Note securing this Deed of Trust; and,
C. City of Pueblo Affordable Housing Development Agreement by and between the City of Pueblo,a
Municipal Corporation, and Crawford Townhomes, LLLP, a Colorado limited liability limited
partnership;and
WHEREAS,the U.S. Department of Housing and Urban Development("HUD")has authorized,as part of
the Project, the conversion of public housing to Section 8 assistance under the Rental Assistance Demonstration
("RAD")program,pursuant to Public Law 112-55,as amended;and
WHEREAS, the Project will be assisted by funding provided pursuant to the RAD program, thereby
subjecting the Project to requirements contained in that certain RAD Conversion Commitment(Form HUD-52624)
("RCC"),executed by HUD,Borrower and Lender with respect to conversion of public housing units to RAD units;
and
WHEREAS,as a condition of the RAD conversion, Borrower executed a Rental Assistance Demonstration
Use Agreement dated and recorded as of substantially even date herewith(the"RAD Use Agreement")for the benefit
of HUD;and
WHEREAS, HUD requires as a condition of the RAD conversion that Lender and Borrower agree to
subordinate the Subordinate Documents to the RAD Use Agreement.
NOW THEREFORE, let it be known to all interested parties,that for good and valuable consideration,the
receipt of which is hereby acknowledged,the undersigned do hereby agree:
1. So long as the RAD Use Agreement,and all extensions thereto,is in effect,the Subordinate Documents shall
unconditionally be and remain at all times subject in all respects to the Program Requirements(as defined in
Section 1 of that certain RCC)and subordinate to the RAD Use Agreement.
2. Subordination to the RAD Use Agreement shall extend to and continue in effect with respect to any future
amendment, extension, renewal, or any other modification of the RAD Use Agreement or the Subordinate
Documents.
3. In the event of a conflict between a Subordinate Document and the RAD Use Agreement, the RAD Use
Agreement shall control.
4. The following amendments to the Subordinate Documents require the prior written consent of HUD: (i)any
amendment to any HUD-required provisions in the Subordinate Documents, (ii) an increase in the interest
rate of the Loan,(iii)an increase of the total indebtedness of the Loan,(iv)an acceleration of the amortization
or payment schedule of the Loan,and(v)any changes that would preclude or impair a reasonable opportunity
to cure any defaults by Borrower under the Subordinate Documents.
5. Subordination to the RAD Use Agreement is intended to survive any bankruptcy and foreclosure. fi'a�9'
Zalicabas., —)4r
6. This Rider may be signed in counterparts.
7. The invalidity,in whole or in part,of any of the provisions set forth in this Rider,shall not affect or invalidate
any remaining provisions.
8. This Rider and every covenant hereof shall be binding upon Lender and Borrower and their respective
successors and assigns. This Rider shall not be modified or amended except by a written instrument executed
by all parties hereto and approved in writing by HUD.
IN WITNESS WHEREOF,the Borrower and Lender have duly executed and delivered this Rider contemporaneous
with the Loan Documents.
BORROWER:
CRAWFORD TOWNHOMES,LLLP,a Colorado limited
liability limited partnership
By: Crawford MM, LLC,
a Colorado limited liability company, its general partner
By: El Centro Pueblo Development Corporation, Inc.,
a Colorado non-p ofit corporation, its sol- member
By: U '' -
Steven L.Trujillo,Secretary/Tre urer
Date:
LENDER:
CITY OF PUEBLO,a municipal corporation
By: _
Nicholas A.Gradisar,Mayor
Date: 45, aoa�r, ..
PROMISSORY NOTE
Principal Amount: U.S. $500,000.00 Date of Note: July , 2022
FOR VALUE RECEIVED, the undersigned Crawford Townhomes, LLLP, a Colorado
limited liability limited partnership, hereinafter referred to as "Borrower", and its successors in
interest, promises to pay to the City of Pueblo, a Municipal Corporation, or order, hereinafter
referred to as the "Note Holder,"the sum of Five Hundred Thousand and No/100ths($500,000.00)
U.S. Dollars and interest on the principal balance outstanding from the date hereof until paid, at
the rate of zero percent (0%) per annum, provided payment is made in accordance herewith, and
payable at the Note Holder's office at 1 City Hall Place, Pueblo, Colorado, 81003, or such other
place as Note Holder may designate. A minimum annual payment of Five Hundred U.S. Dollars
($500.00) per year shall be due and payable by January 15, 2024 and each year thereafter for(20)
years. Additional payments made during the term are encouraged (but not required) and shall be
credited to the outstanding balance of the loan. However, such additional payments are subject to
a limitation equal to one hundred percent (100%) of the net cash flow from the Project, with any
payments or portion of payments that cannot be paid due to such limitation to be made at the time
of the next available net cash flow. As used herein, "net cash flow from the Project" means, with
respect to any fiscal year or applicable period,(a)all cash receipts of Crawford Townhomes, LLLP,
its successors and assigns (collectively the "Partnership") from operations (excluding proceeds
from Capital Transactions, Capital Contributions and the proceeds of any loan), subsidy payments,
or rental interruption insurance recoveries received by the Partnership during such period, plus (b)
any interest or like earnings of the Partnership and any amounts which the General Partners release
upon approval of the Investor Limited Partner as being no longer necessary to hold as part of such
reserve, less: (i) cash funds used to pay Project Expenses of the Partnership during the period,
including any fees and expenses paid to the Partners, (ii) all cash payments during such period to
discharge Partnership indebtedness,and(iii)any amounts added to Partnership reserves (other than
the Operating Reserves) during such period. If not sooner paid or accelerated as herein provided,
the entire principal amount of Five Hundred Thousand and No/100ths ($500,000.00) U.S. Dollars
outstanding, less payments, and accrued interest thereon, shall be due upon the end of the twenty
(20) year period of affordability pursuant to the Agreement (as defined below). The period of
affordability is estimated to conclude on January 15, 2044. Any such payments of net cash flow
shall be made in accordance with, at the times set forth in, and the priority set forth in the Amended
and Restated Agreement of Limited Partnership of Borrower dated as of July 1, 2022, attached
hereto as Exhibit B, where said priority may not be amended without Note Holder's prior written
consent.
The Loan evidenced by this Note is being made to finance a residential housing project
(hereinafter referred to as the "Project") in accordance with the Affordable Housing Development
Loan Agreement between Borrower and Note Holder dated of even date herewith (hereinafter
referred to as the "Agreement"). This Note and all principal and interest payable hereunder are
secured by a Deed of Trust of even date herewith upon real property, upon which the Project is
located or to be located, and all improvements thereon, situated in the County of Pueblo, State of
Colorado (hereinafter referred to as the "Property") and described more particularly as:
See Exhibit A
The terms, conditions, covenants, provisions, stipulations, and agreements of said Deed of Trust
and said Agreement are hereby made a part of this Note by reference in the same manner and with
the same effect as if they were fully set forth herein, and the Borrower hereby covenants and
promises to abide by and comply with each and every covenant and condition set forth in this Note,
the Deed of Trust, and the Agreement.
The Borrower reserves the right to prepay all or any part of the principal owing on this
Note at any time or times prior to maturity without notice and payment of any premium or penalty.
Upon the occurrence of any of the following events, the entire principal amount of Five
Hundred Thousand and No/100ths ($500,000.00) U.S. Dollars, or the unpaid principal thereof,
together with all accrued interest thereon, shall, at the option of the Note Holder, upon 20 days
written notice to Borrower by certified mail or commercial express courier, unless cured within
said 20 days, where Note Holder may require specific performance, become at once due and
payable and shall accrue interest at the default rate of four percent(4%)per annum thereafter until
paid in full, and no failure by the Note Holder to exercise such option shall be deemed or construed
as a waiver of the right or as a waiver of the right to exercise the same in the event of any
subsequent default or breach:
1. Any default in the payment when due, or any part of the principal or interest
hereunder.
2. Any breach or failure of the Borrower to perform within the allotted time any term
or condition of the Agreement, the Deed of Trust, or any other instrument securing
to the Note Holder payment or performance of any obligation of the Borrower.
3. If the Borrower shall be involved in financial difficulties as evidenced: (i) by an
admission in writing of the Borrower's inability to pay its debts generally as they
become due; (ii) by filing a petition in bankruptcy or for the adoption of an
arrangement under the federal Bankruptcy Code (as now or in the future amended)
or an admission seeking the relief therein provided; (iii) by making an assignment
for the benefit of creditors; (iv) by consenting to the appointment of a receiver or
trustee for all or a substantial part of the Borrower's assets or to the filing of a
petition against the Borrower under said Bankruptcy Code;(v)by being adjudicated
as bankrupt; (vi)by the entry of a court order appointing a receiver or trustee for all
or a substantial part of the assets of the Borrower or approving as filed in good faith
a petition filed against the Borrower under said Bankruptcy Code; (vii) by the
assumption of custody or sequestration by a court of competent jurisdiction of all
or substantially all of the assets of the Borrower; (viii) by an attachment for an
amount in excess of$25,000 on any substantial part of the assets of the Borrower
which shall not be discharged within thirty (30) days from the making thereof; or
(ix) by a judgment or decree for the payment of money in excess of$25,000 being
entered against the Borrower, or if an attachment, execution or levy is made upon
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any of the Borrower's assets and the judgment, execution or levy, as the case may
be, is not discharged or stayed within thirty(30)days from the date of the judgment,
attachment, execution or levy as the case may be.
4. If the Borrower shall have made any misrepresentation of a material nature in its
application for the Loan, or in any document furnished by it to the Note Holder
relative to the Project.
5. If there is pending or threatened litigation with respect to the Loan or the
performance by the Borrower of any of its duties or obligations hereunder.
6. If the Project cannot proceed because of inability to continue land option or secure
zoning or due to any action by any branch of government which impairs use of the
Property herein described for proposed Project purposes.
7. If the Note Holder determines that the Borrower has abandoned or discontinued the
initiation, construction, rehabilitation or completion of the Project.
8. Any breach of the affordability requirements detailed in the Agreement, Deed of
Trust, or as otherwise may be required pursuant to 24 C.F.R. Part 92. In the event
the Borrower should sell or voluntarily transfer title to the Project, the Property, or
other real property or improvements constructed or improved with funds provided
pursuant to the Agreement, within 20 years after substantial completion of the
Project or said improvements, the entire indebtedness under this Note shall
immediately become due and payable and shall be collected and repaid to Note
Holder.
RIGHT TO CURE: Note Holder shall use best efforts to provide a courtesy copy of all
notices sent to Borrower hereunder to RBC Community Investments, LLC, Attention: President
and General Counsel, 600 Superior Avenue, Suite 2300, Cleveland, Ohio 44114, and Applegate
& Thorne-Thomsen, P.C., Attention: Bennett P. Applegate, Esq., 425 S. Financial Place, Suite
1900, Chicago, Illinois 60605. Any failure to deliver such courtesy copy shall not be deemed a
failure to provide notice to the Borrower. Notwithstanding anything to the contrary contained in
this Note, Borrower's Investor Partner and/or Special Limited Partner shall have the right, but not
the obligation, to cure defaults of Borrower.
The Borrower, and any and all endorsers, sureties, guarantors and assumers hereof, hereby
jointly and severally waive presentment, protest, notices of dishonor and of protest, and all
defenses whatsoever on the ground of any extension(s) of the time of payment or of the due dates
of this Note, in whole or in part, before or after maturity, with or without notice, it being further
agreed by the Borrower and all such parties that they will pay all collection expense, court costs,
and reasonable attorneys' fees which may be incurred in the collection or enforcement of this Note
or any part hereof.
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The loan evidenced by this Note is a recourse obligation of Borrower.
This instrument shall be governed by the laws of the State of Colorado and any dispute
regarding its terms and conditions shall be resolved in the District Courts of the State of Colorado.
Executed and delivered this Q(c) day of , 2022.
BO ROWER:
CRAWFORD TOWNHOMES, LLLP, a
Colorado limited liability limited
partnership
By: Crawford MM, LLC,
a Colorado limited liability company, its
general partner
By: El Centro Pueblo Development
Corporation, Inc., a Colorado non-
profit corporation, its sole member
By: I1
Steven L. Trujillo, Seers!:ry/Treasurer
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Exhibit A
To
Promissory Note
LEGAL. DESCRIPTION
(2)TWO PARCELS OF LAND BEING A PORTION OF HOUSING SUBDIVISION RECORDED ON MAY 24, 1952 IN THE
OFFICE OF THE CLERK AND RECORDER OF THE COUNTY OF PUEBLO UNDER RECEPTION NUMBER 913457(BOOK 16,
PAGE 3),A PORTION OF LOT 13, BLOCK 23 OF UPLANDS PARK RECORDED ON FEBRUARY 19, 1886 IN SAID RECORDS
IN BOOK 2B AT PAGES 33-34 AND A PORTION OF UPLANDS TOWNHOMES FILING NO.2 RECORDED ON DECEMBER
6, 2019 IN SAID RECORDS UNDER RECEPTION NUMBER 2161535; LOCATED IN THE NORTHWEST ONE-QUARTER OF
SECTION 11,TOWNSHIP 21 SOUTH, RANGE 65 WEST OF THE 6TH PRINCIPAL MERIDIAN; MORE PARTICULARLY
DESCRIBED AS FOLLOWS WITH BEARINGS REFERENCED TO THE NORTH LINE OF SAID HOUSING SUBDIVISION,
MONUMENTED ON THE WEST END BY A FOUND 1-1/2"ALUMINUM TAG STAMPED"MANGINI REEVES INC, PLS
22101"AND ON THE EAST END BY A FOUND 1"YELLOW PLASTIC CAP STAMPED "CARDINAL, PLS 22101"(A 1-FOOT
WITNESS CORNER),AND IS ASSUMED TO BEAR NORTH 88°54'18" EAST 1253.48 FEET.
PARCEL 1
COMMENCING AT THE WEST END OF SAID NORTH LINE;SAID POINT BEING ALSO THE NORTHWEST CORNER OF
SAID HOUSING SUBDIVISION AND A POINT ON THE EAST RIGHT-OF-WAY LINE OF SOUTH PRAIRIE AVENUE;THENCE
NORTH 88°54'18" EAST, ON SAID NORTH LINE OF HOUSING SUBDIVISION,A DISTANCE OF 381.43 FEET TO THE
POINT OF BEGINNING;
THENCE CONTINUE NORTH 88°54'18" EAST ON SAID NORTH LINE,A DISTANCE OF 230.44 FEET TO THE
NORTHWESTERLY CORNER OF SAID UPLANDS TOWNHOMES FILING NO.2;
THENCE ON THE EXTERIOR OF SAID UPLANDS TOWNHOMES FILING NO.2 THE FOLLOWING (4) FOUR COURSES:
1. THENCE SOUTH 01°05'42" EAST,A DISTANCE OF 178.95 FEET;
2. THENCE SOUTH 89°26'28"WEST,A DISTANCE OF 32.02 FEET;
3. THENCE SOUTH 01°06'56" EAST,A DISTANCE OF 60.09 FEET;
4. THENCE SOUTH 44°14'08"WEST,A DISTANCE OF 41.63 FEET TO A 184.06 FOOT RADIUS NON-TANGENT
CURVE WHOSE CENTER BEARS NORTH 13°35'26" WEST, BEING ALSO THE NORTHERLY RIGHT-OF-WAY LINE
OF TRIBAL NATIONS AVENUE,AS SHOWN ON THE PLAT OF SAID UPLANDS TOWNHOMES FILING NO. 2;
THENCE ON SAID EXTERIOR THE FOLLOWING(4) FOUR COURSES:
1. THENCE WESTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 05°56'58",AN ARC DISTANCE OF
19.11 FEET TO A 28.73 FOOT RADIUS NON-TANGENT CURVE WHOSE CENTER BEARS NORTH 07°32'42"
WEST;
2. THENCE WESTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 51°19'09",AN ARC DISTANCE OF
25.74 FEET;
3. THENCE NORTH 46°13'38"WEST,A DISTANCE OF 64.92 FEET;
4. THENCE SOUTH 43°46'26"WEST,A DISTANCE OF 2.99 FEET TO THE NORTHEASTERLY CORNER OF SITTER
PLACE,AS SHOWN ON THE PLAT OF SAID HOUSING SUBDIVISION;
THENCE NORTH 46°05'32" WEST ON THE NORTHERLY RIGHT-OF-WAY LINE OF SAID SITTER PLACE,A DISTANCE OF
22.57 FEET;
THENCE NORTH 48°21'35" EAST,A DISTANCE OF 17.11 FEET;
THENCE NORTH 01°06'04" WEST,A DISTANCE OF 47.47 FEET;
THENCE SOUTH 88°53'56"WEST,A DISTANCE OF 76.58 FEET;
THENCE NORTH 00°38'19"WEST,A DISTANCE OF 144.77 FEET TO THE POINT OF BEGINNING.
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INA L.DOCN
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 47,937 SQUARE FEET OR(1.10048 ACRES),
MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
PARCEL 2
COMMENCING AT THE WEST END OF SAID NORTH LINE OF HOUSING SUBDIVISION;SAID POINT BEING ALSO THE
NORTHWEST CORNER OF SAID HOUSING SUBDIVISION AND A POINT ON THE EAST RIGHT-OF-WAY LINE OF SOUTH
PRAIRIE AVENUE;
THENCE SOUTH 01°05'45" EAST ON SAID EAST RIGHT-OF-WAY LINE,A DISTANCE OF 477.95 FEET TO THE POINT OF
BEGINNING;
THENCE NORTH 88°53'56" EAST,A DISTANCE OF 260.82 FEET;
THENCE NORTH 01°06'02"WEST,A DISTANCE OF 83.87 FEET;
THENCE NORTH 88°54'36" EAST,A DISTANCE OF 178.06 FEET;
THENCE NORTH 00°50'50" WEST,A DISTANCE OF 49.79 FEET;
THENCE NORTH 89°45'13" EAST,A DISTANCE OF 22.78 FEET;
THENCE NORTH 01°06'04" WEST,A DISTANCE OF 46.64 FEET TO THE EXTERIOR OF SAID UPLANDS TOWNHOMES
FILING NO. 2, BEING ALSO THE SOUTHERLY RIGHT-OF-WAY LINE OF SITTER PLACE,AS SHOWN ON THE PLAT OF
SAID UPLANDS TOWNHOMES FILING NO. 2;
THENCE ON SAID EXTERIOR,SAID SOUTHERLY RIGHT-OF-WAY LINE,AND THE SOUTHERLY RIGHT-OF-WAY LINE OF
TRIBAL NATIONS AVENUE, AS SHOWN ON THE PLAT OF SAID UPLANDS TOWNHOMES FILING NO.2,THE
FOLLOWING (2)TWO COURSES:
1. THENCE SOUTH 46°13'38" EAST,A DISTANCE OF 15.21 FEET TO A 72.76 FOOT RADIUS NON-TANGENT
CURVE WHOSE CENTER BEARS NORTH 43°46'21" EAST;
2. THENCE SOUTHEASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 15°53'10",AN ARC DISTANCE
OF 20.17 FEET TO A 75.64 FOOT RADIUS NON-TANGENT CURVE WHOSE CENTER BEARS NORTH 27°59'04"
EAST;
THENCE CONTINUE ON SAID SOUTHERLY RIGHT-OF-WAY LINE OF TRIBAL NATIONS AVENUE THE FOLLOWING(7)
SEVEN COURSES:
1. THENCE EASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 23°09'13",AN ARC DISTANCE OF
30.57 FEET TO A 300.00 FOOT RADIUS REVERSE CURVE;
2. THENCE EASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 10°01'39",AN ARC
DISTANCE OF 52.50 FEET TO A 39.00 FOOT RADIUS COMPOUND CURVE;
3. THENCE SOUTHEASTERLY ON SAID CURVE, THROUGH A CENTRAL ANGLE OF 25°37'02",AN ARC DISTANCE
OF 17.44 FEET TO A 63.17 FOOT RADIUS REVERSE CURVE;
4. THENCE EASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 83°11'16",AN ARC
DISTANCE OF 91.72 FEET TO A 38.83 FOOT RADIUS REVERSE CURVE;
5. THENCE NORTHEASTERLY ON SAID REVERSE CURVE,THROUGH A CENTRAL ANGLE OF 25°31'58",AN ARC
DISTANCE OF 17.30 FEET TO A 301.18 FOOT RADIUS COMPOUND CURVE;
6. THENCE EASTERLY ON SAID CURVE,THROUGH A CENTRAL ANGLE OF 08°14'17",AN ARC DISTANCE OF
43.30 FEET;
7. THENCE NORTH 88°54'27" EAST,A DISTANCE OF 527.92 FEET TO THE EXTERIOR OF SAID UPLANDS
TOWNHOMES FILING NO. 2, BEING ALSO THE WESTERLY RIGHT-OF-WAY LINE OF ACERO AVENUE;
THENCE SOUTH 01°05'33" EAST ON SAID EXTERIOR AND SAID WESTERLY RIGHT-OF-WAY LINE,A DISTANCE OF
31.69 FEET TO THE SOUTHEASTERLY CORNER OF SAID UPLANDS TOWNHOMES FILING NO. 2, BEING ALSO THE
NORTHEASTERLY CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK;
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THENCE CONTINUE SOUTH 01°05'33" EAST ON SAID EXTERIOR AND SAID WESTERLY RIGHT-OF-WAY LINE,A
DISTANCE OF 297.23 FEET TO THE SOUTHEASTERLY CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK, BEING
ALSO THE INTERSECTION OF SAID WESTERLY RIGHT-OF-WAY LINE WITH THE NORTHERLY RIGHT-OF-WAY LINE OF
SPRAGUE AVENUE;
THENCE SOUTH 88°54'57"WEST ON SAID EXTERIOR AND SAID NORTH RIGHT-OF-WAY LINE,A DISTANCE OF 626.63
FEET TO THE SOUTHWEST CORNER OF SAID LOT 13, BLOCK 23 OF UPLANDS PARK AND THE SOUTHEAST CORNER
OF BLOCK 3 OF SAID HOUSING SUBDIVISION;
THENCE CONTINUE SOUTH 88°54'57"WEST ON THE EXTERIOR OF SAID HOUSING SUBDIVISION AND SAID NORTH
RIGHT-OF-WAY LINE,A DISTANCE OF 626.81 FEET THE SOUTHWEST CORNER OF SAID HOUSING SUBDIVISION,
BEING ALSO THE INTERSECTION OF SAID NORTH RIGHT-OF-WAY LINE WITH SAID EAST RIGHT-OF-WAY LINE OF
SOUTH PRAIRIE AVENUE;
THENCE NORTH 01°05'45"WEST ON SAID EXTERIOR AND SAID EAST RIGHT-OF-WAY LINE,A DISTANCE OF 181.65
FEET TO THE POINT OF BEGINNING.
THE ABOVE PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 359,855 SQUARE FEET OR(8.26114 ACRES),
MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
THE OVERALL PARCEL DESCRIPTION CONTAINS A CALCULATED AREA OF 407,792 SQUARE FEET OR(9.36162
ACRES), MORE OR LESS,AND IS DEPICTED ON THE ATTACHED GRAPHICAL EXHIBIT FOR REFERENCE.
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Exhibit B
To
Promissory Note
Amended and Restated Agreement of Limited Partnership of Borrower
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