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HomeMy WebLinkAboutResolution - 4146 - Agreement - LHFC - Federal Funds, HOPE 3 Program - 05_13_1993Resolution No. 4146 May 13, 1993 Item #38 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement with Lubbock Housing Finance Corporation to facilitate utilization of federal grant funds under the Home Ownership of Single Family Homes (HOPE 3) Program and to further the common goal of providing decent housing at affordable prices for low-income and moderate -income residents of the City of Lubbock. Said Agree- ment is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in -the -minutes of the Council. Passed by the City Council this 1 th day ot\, e.-----ma-y, 1993. ATTEST: B tty Ma Johnson,oCity Secretary APPROVED AS TO CONTENT: tA- San y Ogleee, ommunity Deve opment Administra or APPROVED AS TO FORM: Linda L. C ama es, Assistant City Attorney LLC:js/AG-E0PE3.RES D2-Agenda/April 27, 1993 Resolution No. 4146 May 13, 1993 Item #38 AGREEMENT BETWEEN CITY OF LUBBOCK AND LUBBOCK HOUSING FINANCE CORPORATION THIS AGREEMENT, entered this 13th day of May , 1993, by and between the CITY OF LUBBOCK (herein called "City") and LUBBOCK HOUSING FINANCE CORPORATION (herein called "LHFC"). WHEREAS, the City and LHFC share as a common goal the public purpose of providing decent housing at affordable prices for low-income and moderate -income residents of the City of Lubbock; and WHEREAS, the City has applied for and received federal grant funds under the Home Ownership of Single Family Homes (Hope 3) Program authorized by Title IV of the Cranston Gonzalez National Affordable Housing Act (NAHA) (Pub L. 101-625 enacted November 28, 1990) to purchase homes for resale to qualified applicants; and WHEREAS, the City is responsible for oversight and moni- toring of said federal funds under the Hope 3 program; and WHEREAS, the City has utilized a portion of the Hope 3 grant funds for the public purpose of purchasing homes from FHA; and WHEREAS! City is authorized under Texas Local Government Code, Section 272.001(g) to convey interest in land to an entity for the development of low-income or moderate income housing; and WHEREAS, the LHFC is an entity for the development of low- income or moderate income housing created under Chapter 394 of the Texas Local Government Code; and WHEREAS, title to the homes was transferred from FHA to LHFC for purchase by qualified applicants under the Hope 3 pro- gram; and WHEREAS, the City is responsible under Hope 3 for imple- menting and has implemented a plan for use of the sales proceeds from these homes for the continuing need of providing affordable housing; and WHEREAS, transferring the proceeds received by LHFC from the sale of these homes to City for the development of additional low income housing under the Hope 3 program will further LHFC's statutory purposes of development of affordable housing in Lubbock; and WHEREAS, the City has the personnel and ability to admin- ister these funds as required by federal regulations and in compliance with OMB Circulars A-122 "Cost Principles for Non - Profit Organizations" and the applicable sections of 24 CFR Part 85 "Uniform Administration Requirements for Grants and Co- operative Agreements to State and Local Governments"; NOW, THEREFORE, in consideration of the mutual promises set out in this document, it is agreed between the parties hereto that: I. SCOPE OF SERVICE A. LHFC agrees to transfer title of the properties described under this Agreement to qualified applicants under the Hope 3 Program as identi- fied by City in a timely and cooperative manner. B. LHFC agrees that in furtherance of their goal of providing affordable housing to low or moderate income citizens of Lubbock, the proceeds from the sale of these properties shall be trans- ferred to City for recommitment to the Hope 3 program and the purchase of additional housing. C. City agrees to administer the Hope 3 Program and perform the following tasks: 1. Identify qualified applicants for purchase of the properties under this Agreement; 2. Perform the Accounting and administrative functions necessary to administer the funds received as proceeds from the sale of the properties under this Agreement. 3. Make all determinations as to the use of funds received as proceeds from the sale of properties under this Agreement. AGREEMENTAUBBOCK HOUSING FINANCE CORP. --- PAGE 2 --- 4. Conduct all pre -purchase counselling and training classes. 5. Conduct all property management activities. 6. Conduct all Hope 3 Homeownership Orienta- tion meetings. 7. Conduct all open houses. 8. Conduct all Affirmative Fair Marketing re- lated to the Hope 3 Program. 9. Conduct all pre -closing conferences with selected people and all closings. 10. Maintain all program files for HUD inspec- tion and monitoring. 11. Do all reporting required on the program to HUD and to the City Council. 12. Negotiate with other governmental agencies for the acquisition of properties. 13. Conduct all follow-up inspections and all post homeownership training. 14. Approve all requests for the use of Re- placement Reserve Funds. 15. Conduct all environmental assessments as required by HUD and obtain approval. 16. Enforce the Deeds of Trust in the event of default by the purchasers under this pro- gram and return the property or proceeds thereof to the Hope 3 program. II. SPECIAL CONDITIONS City agrees to comply with the requirements of Title 24 Code of Federal Regulations, Subtitle A, Part 92 of the Housing and Urban Development regula- tions concerning the Hope 3 Program and all federal regulations and policies issued pursuant to these regulations. AGREEMENTAUBBOCK HOUSING FINANCE CORP. --- PAGE 3 --- III. GENERAL CONDITIONS A. General Compliance. Both parties agree to comply with all applicable federal, state and local laws and regulations govern- ing the funds provided under this Agreement. B. Mutual Cooperation Both parties agree to cooperate in the perfor- mance of the promises in this Agreement and work toward their mutual goals of providing affordable housing for low or moderate income individuals within the City of Lubbock. C. Hold Harmless The City shall hold harmless, defend and indemnify the LHFC, its directors and officers, from all claims, actions, suits, charges and judgments whatsoever that arise out of the City's performance or nonperformance of services or subject matter called for in this Agreement. D. Acknowledgements 1. City acknowledges that LHFC was formed for the statutory purpose of providing decent, safe, and sanitary housing at affordable prices for residents of the City of Lubbock. City further acknowledges that the purpose of the Hope 3 Home Ownership Program is to increase homeownership oppor- tunities for persons of low to moderate income, and that this Agreement is prepared in furtherance of these goals. 2. LHFC acknowledges receipt of a copy of the City of Lubbock Hope 3 Homeownership Pro- gram outlining the program for purchase of homes for low and moderate income housing, sale of the homes to qualified individuals, rehabilitation of said housing, and the re- cycling of the sales proceeds back into providing more low income housing programs. LHFC further acknowledges that the City will receive the sales proceeds on behalf of LHFC and utilize them in accordance with AGREEMENT/LUBBOCK HOUSING FINANCE CORP. --- PAGE 4 --- IV. the provisions of furtherance of th goal of providing able prices for Lubbock. ADMINISTRATIVE REQUIREMENTS A. Financial Management the Hope 3 grant and in a City's and LHFC's mutual decent housing at afford - residents of the City of 1. Accounting Standards The City agrees to comply with Attachment F of OMB Circular A-110 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. 2. Cost Principles The City shall administer it program in conformance with OMB Circulars A-122 "Cost Principles for Non -Profit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable; and the applicable sections of 24 CFR Part 85 "Uniform Administrative Requirements for grants and Cooperative Agreements to State and Local Governments" for all costs in- curred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping 1. Records to be Maintained The City shall maintain all records re- quired by the federal regulations specified in 24 CFR Part 92 and that are pertinent to the activities under this Agreement. AGREEMENTAUBBOCK HOUSING FINANCE CORP. --- PAGE 5 --- 2. Retention The City shall retain all records pertinent to expenditures incurred under this Agree- ment for a period of three (3) years after the termination of all activities under this Agreement. or after the resolution of all Federal audit findings, whichever oc- curs later. 3. Client data The City shall maintain client data demon- strating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligi- bility, and description of service provided. 4. Property Records City shall maintain real property inventory records which clearly identify properties purchased, improved, or sold under this Agreement. 5. Audits and Inspections All City and LHFC records with respect to any matters covered by this Agreement shall be made available to either agency, their designees or the Federal Government, at any time during normal business hours, as often as either agency deems necessary, to audit, examine, and make excerpts of all relevant data for the purpose of audit. AGREEMENT/LUBBOCK HOUSING FINANCE CORP. --- PAGE 6 --- IN WITNESS WHEREOF, the parties have executed this Agree - men this day of May , 1993. F LULUBBOCK HOUSING FINANCE _ M I Pa ATTEST: B tty Johnso City Secretary APPROVED AS TO CONTENT Sandy Og tr Community Development APPROVED AS TO FORM: Linda L. Chamales Assistant City Attorney LLC:js/K-HOPE3.DOC 1)6-ContsAgmts/March, 1993 Board of"Direct AGREEMENT/LUBBOCK HOUSING FINANCE CORP. --- PAGE 7 ---