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)