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HomeMy WebLinkAbout6506RESOLUTION NO. 6 5 0 6 A RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS AND DESIGNATING THE OFFICIAL AUTHORIZED TO APPROVE SUCH LOANS ON BEHALF OF THE PUBLIC BODY , under Section 312 of the Housing Act of 1964, as amended (herein referred to as Section 312), the Secretary of Housing and Urban Development is authorized, under the conditions and to the extent provided therein, to make loans (Section 312 loans) to owners and tenants of property in certain areas for the rehabilitation of their property and to delegate to or use as agent any local public agency or organization to the extent he determines appropriate and desirable to carry out the objectives of Section 312 in the areas involved; and Whereas, Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color or national origin under ahy program or activity receiving Federal financial assistance and Executive Order 11063 prohibits discrimination on basis of race, color, creed or national origin in sale, lease or other disposition of residential property (including land intended for residential use) or in the use or occupancy thereof; and Whereas, the City of Pueblo has responsibility and jurisdiction to carry out Community Development Block Grant Program in an area or areas delineated in the COMTUnity Development Block Grant Application and Grant Agreement in which Section 312 loans are authorized to be made; and Whereas, it is desirable and will significantly benefit the rehabilitation objectives of all such projects and programs administered by the City of Pueblo for the City Manager to have direct approval authority with respect to Section 312 loans; now therefore BE IT RESOLVED BY THE CITY OF PUEBLO, COLORADO, that: SECTION 1. That the City Manager is hereby authorized and directed to execute on behalf of the City of Pueblo and "Agreement for Public Body Approval of Section 312 Rehabilitation Loans," and to act as the authorized representative of the City of Pueblo in connection therewith. SECTION 2. That it is cognizant that under an "Agreement for Public Body Approval of Section 312 Rehabilitation Loans" Section 312 loans may be approved only in accordance with outstanding policy of the Department of Housing and Urban Development, as it exists from time to time, and subject to availability of funds therefor. SECTION 3. That the City Manager is hereby authorized to approve, on behalf of the City of Pueblo, Section 312 loans under the provisions of said Agreement, and such official is hereby directed to approve such loans only in accordance with the policy of the Department of Housing and Urban Development, and subject to availability of funds as determined by that Department. SECTION 4. That the United State of America and the Secretary of Housing and Urban Development be, and they hereby are, assured of full compliance by the City of Pueblo with regulations of the Department of Housing and Urban Development effectuating Title VI of the Civil Rights Act of 1964 and applicable Executive Orders. INTRODUCED February 26 19 By Samuel Corsentino CILMAN APPROVED • PRESIDENT OF COUNCIL ATTEST: J - g , Av,�� - CITY CLERK AGREEMENT FOR PUBLIC BODIES PARTICIPATING IN THE SECTION 312 REHABILITATION LOAN PROGRAM PART I - LOAN PROCESSING THIS AGREEMENT has been executed and entered into by and between City of Pueblo, a Municipal Corporation .(Fill i,n name of city, county, or other local governmental entity) (hereinafter referred to as the "Public Body "), and the United States of America, acting by and through the Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary ") for effect on the date specified in Section 7 below. IN CONSIDERATION OF THEIR MUTUAL COVENANTS, PROMISES, AND REPRESENTATIONS CONTAINED HEREIN, THE PARTIES DO AGREE AS FOLLOWS: Section 1. PURPOSE OF AGREEMENT The Public Body has responsibility and jurisdiction to carry out one or more local Community Development Block Grant (CDBG), Urban Development Action Grant (UDAG), or Urban Homesteading Programs with resources provided in part by the Secretary pursuant to applicable regulations, policies and requirements. In connection with such Program(s), this Agreement authorizes the Public Body to process, and to submit to the Secretary with the Public Body's recommendation to approve, applications by private property owners for rehabilitation loans under Section 312 of the Housing Act of 1964, as amended (42 U.S.C. 1452b, hereinafter referred to as "Section 312 loans "). This Agreement delineates the legal relationship between the Secretary and the Public Body with respect to the making of such loans. All Public Bodies authorized to process Section 312 loans for the Secretary's approval shall execute this PART I; Public Bodies which are also authorized to approve certain Section 312 loans on behalf of the Secretary shall in addition separately execute PART II -LOCAL LOAN APPROVAL, which shall be deemed incorporated by reference in this Agreement after its execution by the parties thereto. Section 2. COMPLIANCE WITH PROGRAM REQUIREMENTS In carrying out loan processing or approval activities under this Agreement, the Public Body shall comply with all applicable laws (including Section 312), the Secretary's Section 312 regulations at 24 CFR Part 510, all other applicable Federal regulations, this Agreement, and the Secretary's additional requirements, policies, and procedures in the Section 312 Rehabilitation Loan Program Handbook (HUD- 7375.01 REV -2), the Cash Management System Notice (CPD 86 -13), and any applicable successor or additional issuances ( herainafter collectively referred to as "Program Requirements "). Under this Agreement, and in accordance with such Program Requirements, the Public Body's loan processing duties generally include, but are not limited to, the followings a. Accepting Section 312 inquiries and initially screening prospective borrowers to check whether they may qualify for a Section 312 loan; b. Assisting prospective borrowers in completing the HUD application forms; c. Obtaining and verifying information on the prospective borrower's credit, finances and property; d. Inspecting the property that is the subject of a Section 312 application and assuring that work write -ups and cost estimates are prepared in accordance with Program Requirements; e. Assisting the prospective borrower to obtain a contractor; f.. Determining whether the prospective borrower, his or her property, and the proposed work meet the eligibility requirements of the Section 3.12 Rehabilitation Loan Program; g. Determining whether the borrower is an acceptable credit risk, and certifying the loan to HUD as approvable under all Program Requirements, which includes certifying that the rehabilitation is a part of, or is necessary or appropriate to the execution of, a CDBG, UDAG, or Urban Homesteading Program; h. Arranging for loan settlement, including assuring that the loan is made using the appropriate HUD loan documents, correctly completed; i. Conducting construction inspections, requesting loan disbursements from HUD on behalf of the borrower, using such disbursements to make progress and final construction payments to the borrower (or to the contractor on behalf of the borrower), and assisting in resolving disputes concerning construction, in accordance with the Program Requirements; and J. Implementing the other requirements of the Cash Management System Notice (CPD 86 -13 or successor issuance); The foregoing brief enumeration of the Public Body's duties shall not be construed to expand, define or limit the duties of the Public Body described in the Program Requirements. In the event of any conflict between the foregoing description and the Program Requirements, the Program Requirements shall be controlling. SECTION 3. EFFECT OF PUBLIC BODY'S FAILURE TO COMPLY a. Government Actions Against Public Bodies The Secretary reserves the right to take administrative corrective or remedial action, in accordance with Section 9 of this Agreement, against a Public Body which fails to comply with the Program Requirements. This Agreement sets forth only the Secretary's administrative remedies under the Section 312 Program, and nothing in this Agreement shall be construed as either expanding or limiting any otherwise available civil or criminal actions by the United States or the Secretary against the Public Body, or any employee or contractor of the Public Body, whether or not acting within the scope of their authority. b. Actions By Government Against Borrower or Third Parties The legal rights of the Government and a borrower with respect to any Section 312 loan are controlled by the loan documents executed with respect to that loan. Nothing in this Agreement shall be construed to impair the rights of the United States or the Secretary to collect a Section 312 loan in accordance with the loan documents, or to take any otherwise available civil or criminal action against a borrower or any third party in connection with a Section 312 loan. c. Actions by Borrower or Third Parties Against Government The Public Body acts as an independent contractor and not as the Secretary's agent in performing its functions under this Agreement. As stated in the Rehabilitation Loan Agreement between the Secretary and each borrower, the Secretary accepts no legal responsibility to the borrower to supervise the Public Body in performing any function under the Section 312 program. Although the Secretary mandates under the Program Requirements that the Public Body undertake certain functions in processing, approval, settlement and disbursement of Section 312 loans, the Secretary does so for the financial benefit of the United States and in furtherance of national program objectives, not for the direct benefit of the individual borrower. The failure of the Public Body properly to perform any of the Program Requirements shall not create or Justify any claim against the Secretary on the part of a Section 312 borrower, or any other person (including any rehabilitation contractor or supplier or a tenant in an assisted property), and it shall not constitute grounds for the borrower or any third party to contest the validity of any Section 312 processed or approved by the Public Body under this Agreement. d. Action by Borrower or Third Parties Against Public Body The extent of liability, if any, of the Public Body to the borrower or any third party with respect to any function performed by the Public Body under this Agreement or the Program Requirements shall be determined in accordance with applicable State and local law. Nothing in this Agreement shall be construed to mandate liability, or create a cause of action of any kind, by the borrower or any third party against the Public Body or by the Public Body against the borrower. e. Defend and Hold Harmless Notwithstanding any other provision of this Agreement, including Section 3.c. above, the Public Body will warrant, defend and hold harmless the Government with respect to any and all claims and losses caused by its failure to comply with the Program Requirements or the requirements of applicable State and local law in its processing or approval of Section 312 loans under this Agreement, or in the subsequent settlement and administration of loans. SECTION 4. PROGRAM ADMINISTRATION AND RECORD- KEEPING a. The Public Body agrees that it will, at all proper times, provide or cause to be provided competent and adequate architectural, engineering, financial, legal and other technical skills needed in administering the Section 312 program, complying with the Program Requirements, and supervising and inspecting rehabilitation work financed by Section 312 loans processed or approved under this Agreement. The Public Body may retain employees to carry out its duties under this Agreement, or (as permitted by State and local law) it may enter into one or more services contracts with individuals or private nonprofit or for - profit organizations, including financial institutions, to perform all or any of its functions in connection with the Section 312 loan program, except for loan approval. If any such contract for services is funded in whole or in part by CDBG funds pursuant to 24 CPR 570.202(b)(9) or 570.206, all applicable requirements of 24 CPR Part 570 apply to the selection of the contractor (if selected by the Public Body, rather than a borrower) and the performance of the services rendered under the contract, as further explained in the Program Requirements. If any such contract for services will be funded with Section 312 funds by inclusion of an amount in an approved loan to compensate the contractor for the contractor's services, the contractor (if selected by the Public Body, rather than a borrower) shall be selected in accordance with Section 6 -5.b. of the current Section 312 Rehabilitation Loan Program Handbook, or comparable provisions of any successor issuance, in addition to all other requirements flowing from the use of Section 312 funds, such as equal opportunity and minority and women's business enterprise requirements. Notwithstanding the existence of any such contract for services, HUD will hold the Public Body responsible for compliance with the Program Requirements, as fully as if the Public Body itself had performed the contracted services. Wherever the tern "Public Body" is used in this Agreement, it includes any of the Public Body's employees or contractors who perform services related to the Section 312 program. b. The Public Body shall keep and maintain full and accurate books and records with respect to its administration of the Section 312 loan program. At a minimum, "full and accurate books and records" shall include the specific items, which shall be retained for the specific periods, set forth in Section 13 of the current Section 312 Rehabilitation Loan Program Handbook, or comparable provisions of any successor issuance. The Public Body shall, at any time during normal business hours, and as often as the Secretary or the Comptroller General of the United States may deem necessary, permit the-Secretary or Comptroller General or their representatives to inspect, make excerpts or transcripts of, copy, and audit, any and all of its books and records related to the Section 312 program. SECTION S. MAKING AND TERMINATING LOAN OBLIGATIONS a. Upon receipt of the documentation required by the Program Requirements to be submitted to the Secretary for loan approval, the Secretary will review the loan for compliance with all such Requirements and will advise the Public Body whether or not the loan is approved by sending the Public Body written notification of loan approval followed by one or more validated copies of the approved application. Until both the written notification and validated application(s) are received, the Public Body is not authorized to advise any potential borrower that his or her loan application has been approved by the Secretary. The Secretary is not legally committed to make a Section 312 loan to any borrower until the written notification of approval is sent to the Public Body after recordation of the loan obligation by the applicable HUD Regional Accounting Division. b. After notification of loan approval as described in Section 4.a. above and before loan settlement (closing), the Secretary and /or the Public Body may cancel an approved Section 312 loan only for the following reasons: (i) Failure of the borrower and the public Body to pay the required application fee and any escrow amounts, provide any necessary Supplemental Financing, and close the loan in accordance with the Program requirements and within the time period specified (see Paragraphs 2 -3.b and 9 -1 to 9 -5 of current Handbook, HUD - 7375.01 REV -2, or comparable provisions of any successor issuance); (ii) The loan is cancelled with the consent of the borrower pursuant to procedures in the above - cited Handbook or any successor issuance (see Paragraph 9 -7 of current Handbook); (iii) The loan is rescinded by a borrower in accordance with Truth -in- Lending procedures (see Paragraph 9 -2.d. of current Handbook, or comparable provisions of any successor issuance); (iv) Any reason stated in Paragraphs 6.a.(5) through (8) of the Rehabilitation Loan Agreement required to be executed between the borrower and the Secretary at loan closing (see Exhibit 9 -11 to the above cited Handbook), or comparable provisions in any successor form of Agreement. c. After loan settlement, the Secretary and /or the Public Body may cancel or terminate the loan only for the reasons set forth in Paragraph 6 of the Rehabilitation Loan Agreement between the Secretary and the borrower with respect to the approved loan. SECTION 6. RIGHTS UNDER OTHER CONTRACTS The rights of the parties under this Agreement shall be in addition to, and not in derogation of, the rights of the same parties under the separate contract for Federal assistance for any of .the Public Body's programs described in Geation 1 hereof. SECTION 7. EFFECTIVE DATE AND TERM OF AGREEMENT a. This Agreement shall take effect on 3V Aac� 1 or on the date of its execution by the last of the parties Hereto to execute this Agreement, whichever date is later. b. This Agreement shall remain in effect until suspended or terminated in accordance with Section 8 or 9 of this Agreement. As long as this Agreement is in effect, the Public Body may process and submitSection 312 loans to the Secretary for approval, subject to the availability of Section 312 funds for obligation SECTION S. VOLUNTARY SUSPENSION OR TERMINATION. a. Suspension at Public Body Request. Whenever the Public Body believes that it lacks the capacity to process or approve loans in accordance with the Program Requirements, as applicable, it shall give the Secretary notice that it is temporarily suspending both Parts I and II of this Agreement, or only Part II of this Agreement, as applicable. In addition, the Public Body may, in its discretion, give the Secretary notice for any other. reason that it is temporarily suspending Parts I and II, or Part II only, at any other time. Any such suspension shall be effective immediately when sent or at any later time specified by the Public Body, up to thirty (30) calendar days after the notice is sent, provided that the Secretary may require the Public Body to continue under Part II for a specified period, not to exceed sixty (60) days, in order to accommodate the additional loan approval workload if the Public Body has elected to suspend its functions only under Part II of this Agreement. After a suspension at the Public Body's request under this Section 8.a., the suspended functions under this Agreement may not be reinstated except with the written consent of both parties. b. Termination Parts I and II of this Agreement, or Part II only, shall terminate without any further action by either party hereto after _1r consecutive calendar months of suspension, unless earlier terminated for cause or convenience by the Secretary. In addition, the Public Body may give the Secretary notice that it is terminating this Agreement at any time for any reason. Any such termination shall be effective immediately when sent, provided that the Secretary may require the Public Body to continue under Part II for a specified period, not to exceed sixty (60) days, in order to accommodate the additional loan approval workload if the Public Body has elected to terminate its functions only under Part II of this Agreement. In addition, if the Secretary should decide for the convenience of the Government to discontinue permitting Public Bodies to process and approve, or only to approve, Section 312 loans, the Secretary may give the Public Body (together with other Public Bodies participating in the Section 312 program) notice of termination of Part I and Part II, or only Part II, of this Agreement, as of the date specified by the Secretary. c., Effect of Suspension or Termination. While Parts I and II of this Agreement are suspends or term hated under Section 8 or 9 hereof, the Public Body is not authorized to submit additional loans to the Secretary for approval, or to approve additional loans, and it shall incur no additional costs under the CDBG program for processing or approving Section 312 loans, unless otherwise specifically authorized in writing by the Secretary. However, unless otherwise specifically directed by the Secretary in writing. the Public Body shall continue to take all actions necessary to comply with the Program Requirements with respect to all loans approved by the Secretary or the Public Body, as applicable, prior to the notice of suspension or termination, including the performance of affirmative activities such as closing approved loans, inspecting properties being rehabilitated, and requesting disbursement of loan funds on behalf of the borrower; and it may continue to incur costs under the CDBG program (in accordance with all CDBG requirements) for those continuing loan administration activities. If only Part II of this Agreement is suspended or terminated under Section 8 or 9 hereof, the Public Body may continue to process and submit loans to the Secretary for approval, and it may incur costs .under the CDBG program for that activity (in accordance with all CDBG requirements), but it may not approve the Section 312 loans under Part II, nor may it incur CDBG program costs for that function. SECTION 9. CORRECTIVE OR REMEDIAL ACTIONS The Secretary may take corrective or remedial actions against the Public Body if the Secretary determines, in his or her sole judgment, that the Public Body has failed to comply with one or more of the Program Requirements. Prior to initiating any corrective or remedial actions under Paragraphs c. through j. of this Section, the Secretary shall give the Public Body thirty (30) days advance notice in writing of the Secretary's specific findings of noncompliance with Program Requirements and of the proposed corrective or remedial action(s). The Public Body may submit information to mitigate or rebut the Secretary's findings during such thirty day period and the Secretary will consider such information, but the corrective or remedial action(s) will remain in effect unless modified or withdrawn by the Secretary. Corrective or remedial actions may include one or more of the following: a. Directing the Public Body to submit to additional information on their Section 312 Loan Program activities and /or progress schedules or other types of reports; b. Issuing a letter of warning advising the Public Body of the specific program deficiency(s) of further actions which will be taken if the appropriate corrective action(s) are not taken; c. Reducing the internal HUD Section 312 loan fund assignment (if any) for the Public Body for the current fiscal year or reducing any such assignment for the next fiscal year; d. Suspending Parts I and II, or only Part II, of this Agreement, for a succeeding fiscal year subject to correction of specific deficiencies noted by the Secretary (conditional suspension); e. Requesting the Public Body to voluntarily make local public funds available to a borrower to complete the rehabilitation of his or her property where HUD determines that the Public Body's deficient administration resulted in rehabilitation that did not meet both the requirements of the rehabilitation contract and reasonable standards of quality for the work involved; f. Advising the Public Body that it may no longer process certain classes of Section 312 loan applictions until specific deficiencies in the processing of such applications are corrected by the Public Body; provided that the Public Body shall continue to administer already approved loans of the affected classes unless otherwise specified in writing by the Secretary; g. Advising the Public Body that it may no longer approve certain classes of Section 312 loan applications until specific deficiencies in the approval of such applications are corrected by the Public Body; provided that the Public Body shall continue to administer already approved loans of the affected classes unless otherwise specified in writing by the Secretary; h. Giving the Public Body written notice of suspension of Part I and Part II, or only Part II, of this Agreement for specified cause for a specified period; provided that such suspension shall have the effect set forth in Section 8.c. of this Agreement unless otherwise specified in writing by the Secretary; i. Giving the Public Body written notice of termination of Part I and Part II, or only Part II, of this Agreement for specified cause; provided that such termination shall have the effect set forth in Section 8.c. of this Agreement unless otherwise specified in writing by the Secretary; J. Declaring an area or a locality ineligible for further Section 312 lending; provided that the Public Body shall continue to administer Section 312 loans already approved in the area or locality unless otherwise specified in writing by the Secretary. SECTION 10. ACKNOWLEDGEMENT OF RECEIPT By causing this Agreement to be duly executed and its seal to be hereunto affixed and attested, the Public Body acknowledges that it has received a copy of the current Section 312 Rehabilitation Loan Program Handbook (HUD - 7375.01 REV -2) and the Cash Management System Notice (CPD Notice 86 -13). The Public Body further acknowledges that it will inform the applicable HUD Field Office, in writing, if there is any change in the Public Body Contact Person listed in Section 11 of this Agreement, so that the Secretary may notify the Public Body of any revisions to the Program Requirements. SECTION 11. PUBLIC BODY CONTACT The following is the name, title, address and telephone number of the primary Public Body contact person. This is the person to whom the Secretary will direct all notices under this Agreement and all issuances or other information or requirements from the Secretary concerning the Section 312 Loan Program. The Public Body agrees that it will immediately inform the Secretary if the name, title, address or telephone number of the Public Body contact changes. Tony Berum Name _Director Title City of Pueblo Housinc & Community DPVP1nnmPnt Department or Agency P. 0. Box 1427 Street Address or P.O. Box Pueblo, Colorado 81002 City, State and Zip Code (719) 545 -9870 Telephone Including Area Code IN WITNESSETH WHEREOF, the Public Body has caused this Agreement to de duly executed in its behalf and its seal to be hereunto affixed and attested; and, thereafter, the Secretary has caused the same to be duly executed in its behalf on the dates respectively specified below. [SEAL] City of Pueblo - City Council Name of Public B y (Signature Michael A. Occhiato Name of Public Body Official) President of Cit Council Title February 13. 1990 (Date) UNITED STATES OF AMERICA Secretary of Housing and Urban Development BY �: -' e Z A -, ��C � (Signatur (Field Office Manager) �sw- /q 90 (Date) AGREEMENT FOR PUBLIC BODIES PARTICIPATING IN SECTION 312 REHABILITATION LOAN PROGRAM PART II - LOCAL LOAN APPROVAL SECTION 1. PURPOSE Upon execution, this PART II is hereby incorporated by reference within the AGREEMENT FOR PUBLIC BODIES PARTICIPATING IN THE SECTION 312 REHABILITATION IRAN PROGRAM, PART I - LOAN PROCESSING, also executed by the parties hereto. The purpose of this PART II is to extend to the Public Body authority to approve certain applications for Section 312 loans processed by the Public Body under PART I, subject to verification by the Secretary of fund availability for an approved loan. SECTION 2. APPLICABILITY OF LOCAL APPROVAL AUTHORITY During the term of this Agreement, the Public Body shall have final authority to approve or disapprove, in accordance with this Agreement and the Program Requirements (including the loan underwriting criteria in Chapter 7 of the Section 312 Rehabilitation Loan Program Handbook), applications for Section 312 * loans which have been processed by the Public Body under Part I, which will contain one -to four - residential dwelling units after rehabilitation and no nonresidential leasable space and which do not involve refinancing of existing debt (as described in Section 3 -3 of the HUD Section 312 Rehabilitation Loan Program Handbook). Loans involving refinancing shall be processed by the Public Body but must be submitted to HUD for final approval. While this Part II is in effect, the Public Body shall not submit to HUD for approval Section 312 loans that the Public Body is authorized to approve under this Agreement. SECTION 3. BUD NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Program Requirements (see Section 8 -3 of the HUD Section 312 Rehabilitation Loan Program Handbook and Section C -1 of the Section 312 Cash Management System Notice) to be submitted with respect to Section 312 loans approved by a Public Body, the Secretary shall promptly notify the Public Body in writing whether sufficient funds are available for the approved loan. No loan approval under this Agreement shall be valid until the Secretary (through the applicable Regional Accounting Division) has determined that funds are available therefor and has notified the Public Body thereof, in accordance with Section 8 -3 of the HUD Section 312 Rehabilitation Loan Program Handbook and Section C -1 of the Section 312 Cash Management System Notice. The Public Body shall not notify any prospective borrower of loan approval until receipt of such notice of availability of funds for the loan from the Secretary. Once a Section 312 loan has been approved and the Public Body has been notified of fund availability as set forth in this Section, it may not be disapproved, cancelled, or modified by the Public Body or the Secretary except for the reasons stated in Sections'S.b. and c. of Part I of this Agreement. SECTION 4. OFFICIALS AUTHORIZED TO APPROVE LOANS a. Criteria Persons selected as Approving Officers for the Section 312 loans approved under this Agreement shall have supervisory or executive level responsibilities within the Public Body and must have total familiarity with Section 312 requirements and policies,.as well as rehabilitation standards and financing and underwriting principles common in the industry. However, the Public Body shall not initially, or at any time during the term of this Agreement, confer its authority to approve Section 312 loans under this Agreement upon any officer or employee who personally and regularly exercises any direct responsibilities in the administration of individual Section 312 loans handled under the Public Body's Section 312 Loan Program, including, without limitation: 1. Preparing rehabilitation work write -ups or cost estimates, or construction contract documents; 2. Completing with the borrower, verifying information with respect to, or processing a Section 312 loan application or any of the related documents constituting the loan application file, up to the point of approval; 3. Assisting the borrower to select or negotiate with contractors to perform the rehabilitation; 4. Inspecting the rehabilitation work to ascertain whether the work is completed or for the purpose of authorizing any partial payment requested by a contractor; or 5. Authorizing signing or signing Certificates of Final Inspection. b. Designation Lewis A. Quigley (Name) City of Pueblo - City Manager an employee of the (Title) Public Body, is hereby designated as the Approving Officer authorized to approve Section 312 loans for the Public Body pursuant to this Agreement. Lewis A. Quigley , Name (Title) City Mananger , an employee of the Public Body is hereby designated as Alternate Approving Officer authorized to approve Section 312 loans for the Public Body pursuant to this Agreement in the absence of the Approving Officer. c. Changing Approving Officers The Public Body shall promptly transmit to the Secretary a proposed amendment to this Agreement executed by the Chief Executive Officer of the Public Body whenever it wishes to change the identity of Public Body Officials authorized to approve Section 312 loans under this Agreement. The amendment must be agreed to by the Secretary before the new officials are authorized to approve Section 312 loans. A loan submitted to HUD for funding and purporting to be approved by an Approving Official who is not authorized to approve Section 312 loans will be summarily returned to the Public Body without action. SECTION 5. TERM AND EFFECTIVE DATE a. This Part II shall take effect on or on the date of its execution by the last of the parties to execute this Agreement, whichever date is later. b. This Part II shall remain in effect until suspended or terminated in accordance with Section 8 or 9 of Part I of this Agreement. Any corrective and remedial actions affecting this Part II, including suspension or termination for cause, shall be taken in accordance with Section 9 of Part I and shall have the effect stated therein. IN WITNESSETH WHEREOF, the Public Body has caused this Attachment to be duly executed in its behalf and its seal to be hereunto affixed and attested; and, thereafter, the Secretary has caused the same to be duly executed in its behalf this day of 1 . [SEAL] City of Pueblo - City Coun (Name of Publi Body ignature Michael A. Occhiato (Name of Public Body Official President of City Counci (Title) February 13, 1990 (Date) 19, D' sm .�. .:,.l UNITED STATES OF AMERICA Secretary of Housing and Urban Development BY (Signature) (Title of Officer) (Date)