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HomeMy WebLinkAboutResolution - 011278B - Agreement - HUD - Public Body Approval Of Section 312 Rehabilitation Loans - 01_12_1978611ZQ9 a RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK AUTHORIZING EXECUTION OF AN "AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS" AND DESIGNATING OFFICIALS AUTHORIZED TO APPROVE SUCH LOANS ON BEHALF OF THE PUBLIC BODY WHEREAS, 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 any program or activity receiving Federal financial assistance and Executive order 11063 prohibits discrimination on the 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 Lubbock has responsibility and jurisdiction to carry out the Community Development Program in which Section 312 loans are authorized to be made and has delegated the responsibility for rehabilitation assistance, including the processing and submission of 312 loans, to the Urban Renewal Agency of the City of Lubbock; and WHEREAS, it is desirable and will significantly benefit the rehabilitation objectives of the City -of -Lubbock -administered Community Development Program for the Urban Renewal Agency of the City of Lubbock to have direct approval authority with respect to Section 312 loans; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. THAT the Mayor be and is hereby authorized and directed to execute on behalf of the City of Lubbock an "Agreement for Public Body Approval of Section 312 Rehabilitation Loans", and to act as the authorized representative of the City of Lubbock 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 Real Estate Director and the Assistant Executive Director for Planning and Operations of the Urban Renewal Agency of the City of Lubbock be and are hereby authorized to approve, on behalf of the City of Lubbock and the Urban Renewal Agency of the City of Lubbock, Section 312 loans under the provisions of said Agreement, and such officials be and are 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. (Page Two SECTION 4. THAT the United States of America and the Secretary of Housing and Urban Development be, and they hereby are, assured of full compliance by the City of Lubbock and the Urban Renewal Agency of the City of Lubbock with regulations of the Department of Housing and Urban Development effectuating Title VI of the Civil Rights Act of 1964 and applicable Executive Orders. Passed by the City Council this 12tfi day of January , 1978 1ATTEST: r TREVA PHILLIPS, C7 SECRETARY -TREASURER APPROVED AS TO FORM: 7G✓ Q�- �W'E_D'6 SENTER, JR., CITYATTORNEY ROY BA , MAYOR AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS THIS AGREEMENT, made and entered into on the date hereinbelow specified, by and between the City of Lubbock (the Public Body), and the Urban Renewal Agency of the City of Lubbock (the Agency), and the United States of America (the Government), acting by and through the Secretary of Housing and Urvan Development (the Secretary). WITNESSETH: In consideration of the mutual covenants, promises, and representa- tions contained herein, the parties do agree as follows: SECTION 1. PURPOSE OF AGREEMENT The Public Body has responsibility and jurisdiction to carry out the Community Development Program in areas delineated in the applicable Community Development Block Grant Contract. The Agency, by agreement with the Public Body, has been delegated the jurisdiction and responsibility for rehabilitation assistance in such Community Development Areas and has the responsibility for rehabilitation assistance in the Lubbock NDP area. The processing by the Public Body as delegated to and performed by the Agency, and submission by the Agency to the Department of Housing and Urban Development for approval, of rehabilitation loans under Section 312 of the Housing Act of 1964, as amended (Section 312 loans) is presently authorized with respect to one or more of the areas covered by such programs. The purpose of this Agreement is to extend to the Public Body, through the Agency, authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called regulations) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of fund availability for an approved loan. SECTION 2. APPLICABILITY OF APPROVAL AUTHORITY During the term of this Agreement, the Public Body, through the Agency, shall have final authority to approve applications for Section 312 loans with respect to residential and mixed -use property, which will contain one to four dwelling units after rehabilitation, and which is located In an area with respect to which the Public Body, through the Agency, has authority to process such loans, as described in Section 1 hereof. The Public Body, through the Agency, shall exercise such loan approval authority with respect to property in all such areas which come under it5— jurisdiction during the term of this Agreement. However, no loan approval under authority of this Agreement shall be valid until the Secretary has determined that funds are available therefor and has notified the Public Body, through the Agency, thereof. SECTION 3. NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Secretary's regulations to be submitted with respect to Section 312 loans approved by the Public Body, through the Agency, the Secretary shall promptly notify the Public Body, through the Agency, In writing whether sufficient funds are available for the approved loan. SECTION 4. COMPLIANCE WiTH GOVERNMENT REGULATIONS The loan approval authority granted by this Agreement shall be exercised in accordance with the procedures and requirements established by the applicable regulations of the Secretary in effect from time to time. In particular, the Public Body, through the Agency, shall not notify an applicant of loan approval until receipt of notice of availability of funds for the loan from the Secretary. SECTION 5. EFFECT OF FAILURE TO COMPLY a. Grounds for Termination. Failure of the Public Body, through the Agency, to comply with the procedures and requirements of the Secretary with respect to loan approval, or with respect to other aspects of the Section 312 loan program, are grounds for termination of this Agreement at the option of the Secretary. However, such failure shall not create or justify any claim against the Governmen on the part of any third person, and shall not constitute grounds for any third person to contest the validity of any Section 312 loan approved by the Public Body, through the Agency, under authority of this Agreement and during its term. b. Defend and Hold Harmless. The Public Body, through the Agency, will warrant, defend, and hold harmless the Government with respect to all claims and losses caused by its failure to comply with the.regulations of the Secretary and the requirements of applicable State and local law in its approval of Section 312 loans under authority of this Agreement, and in the subsequent settlement and administration of loans so approved. In the event the Secretary's regulations and the requirements of State and local law are inconsistent, the Public Body, through the Agency, shall request advice from the Secretary prior to approval of the Section 312 loan. SECTION 6. RESTRICTION ON OFFICIALS AUTHORIZED TO APPROVE LOANS The Public Body, through the Agency, 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 exercises any duties or responsibilities in the administration of the Public Body's Section 312 Loan Program, including, without limitation: a. Preparation of rehabilitation work writeups or cost estimates, or of construction contract documents; - b. Obtaining information with respect to, completing with the borrower, or processinc a Section 312 loan application or any of the related documents constituting the loan application file; C. Selection of or negotiation with contractors to perform the rehabilitation work; I. d. Authorization of disbursements from the rehabilitation escrow account, or signing or countersigning of checks drawn on the rehabilitation escrow account; e. Inspection of the rehabilitation work to ascertain whether the work is completed or for the purpose of authorizing any partial payment requested by a contractor; or f. Authorization of signing or signing of Form HUD-6245, Certificate of Final Inspection. SECTION 7. SUBMISSION OF DOCUMENTATION I Promptly upon approval of a Section 312 loan by an appropriate official of the Agency, . the Agency shall assemble and transmit to the Secretary the documentation required to be submitted with respect to a Section 312 loan approved by a Public Body, in accordance with such requirements and regulations of the Secretary as shall be in j effect from time to time. The Agency shall also promptly submit copies as required of any resolutions affecting the identity of Agency officials authorized to approve Section 312 loans under the Agreement, any notices of the Public Body's determination to cancel this Agreement,,and any other required documentation or reports, in accordance with such requirements and regulations. SECTION 8. SUPERVISION, ADMINISTRATION, AND INSPECTION The Public Body, through the Agency, shall at all proper times provide or cause to be provided competent and adequate architectural, engineering, financial and other technical supervision and inspection of rehabilitation work financed by Section.312 loans approved under this Agreement. The Public Body, through the Agency, shall keep full and accurate books and records with respect to Section 312 loans approved under this Agreement, and with respect to its administration of the Section 312 loan program, and shall maintain them in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The Agency shall, at any time during normal business hours, and as often as the Secretary or the Government may deem necessary, permit the Secretary or any other representative of the Government to inspect, make excerpts or transcripts of, copy, and audit such books and records. The Agency will cooperate in any inspection of rehabilitation work financed by Section 312 loans approved under this Agreement, as deemed necessary by the Secretary or the Government. SECTION 9. COMPLIANCE WITH CIVIL RIGHTS ACT OF 1964 The Public Body, through the Agency, will perform its activities under this Agreement in accordance with all requirements imposed by, or pursuant to regulations of the Secretary effectuating, Title VI of the Civil Rights Act of 1964. SECTION 10. CANCELLATION OF APPROVED LOANS The Secretary reserves the right to cancel Section 312 loans approved by the Public Body, through the Agency, in accordance with the requirements and regulations of the Secretary in effect from time to time. Upon receipt by the Public Body and by the Agency of such notice of cancellation, the Public Body, through the Agency, shall promptly submit to the Secretary any documentation requested by him, and shall promptly refund the amount of the loan to the Secretary, on account of the Section 312 Loan Revolving Fund. SECTION 11. 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 parties under any contract for federal assistance with respect to any of the Projects or Programs described in Section 1 hereof under the jurisdiction of the Public Body and the Agency. SECTION 12. TERM OF AGREEMENT This Agreement shall be effective from the date hereinbelow specified untilterminated in accordance with Section 13 hereof. SECTION 13. TERMINATION OF AGREEMENT a. Automatic Termination. This Agreement shall automatically terminate on the official date of closeout of the last project or program (as described In Section 1 hereof) under the jurisdiction of the Public Body and the Agency, in the area of which Section 312 loans are authorized. b. Termination by Parties. This Agreement shall terminate 30 days after written notice of intent to terminate is sent by one party to the other, except that, when the Public Body and the Agency give notice of their intent to terminate the Agreement, the Secretary may require the Public Body and the Agency to continue under the Agreement for a specified additional period of time, not to exceed 60 days, in order that arrangements may be made to accommodate the workload resulting from the Public Body's termination. Notice of termination under this subsection may be given by either party for cause or convenience. C. Suspension or Termination for Cause. The Secretary may, for cause, by written notice to the Public Body and to the Agency, require that the Public Body, through the Agency, discontinue immediately the approval of loans under this Agreement pending completion of specified corrective action by the Public Body, through the Agency, or termination of this Agreement. SECTION 14. EFFECTIVE DATE This Agreement shall be effective the day of , SECTION 15. COUNTERPARTS OF AGREEMENT This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute.one and the same instrument. IN WITNESS WHEREOF, the Public Body and the Agency have caused this Agreement to be duly executed in their behalf and their seals to be hereunto affixed and attested; and, thereafter, the Government has caused the same to be duly executed in its behalf this day of 19 CITY OF LUBBOCK BY: ROY BASS, MAYOR ATTEST: TREVA PHILLIPS, CITY SECRETARY -TREASURER URBAN RENEWAL AGENCY OF THE CITY OF LUBBOCK, TEXAS BY: BE TY AN ER ON, CHAIRMAN BOARD OF COMMISSIONERS . ATTESTc H..,O. LDERSON, SECRETARY — UNITED STATES OF AMERICA Secretary of Housing E Urban Developmei BY: Title of Officer Authorized to Execu MEMORANDUM TO: Treva Phillips, City Secretary DATE: April 7, 1978 FROM: H. 0. Alderson, Director of Urban Renewal SUBJECT: Agreement for Public Body Approval of Section 312 Rehabilitation Loans Attached is an original executed copy of the Agreement for Public Body Approval of Section 312 Rehabilitation Loans for your files. H. 0. Alderson jes Attachment v AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS THIS AGREEMENT, made and entered into on the date hereinbelow specified, by and between the City of Lubbock (the Public Body), and.the Urban Renewal Agency of the City of Lubbock (the Agency), and the United States of America (the Government), acting by and through the Secretary of Housing and Urban Development (the Secretary). WITNESSETH: In consideration of the mutual covenants, promises, and representa- tions contained herein, the parties do agree as follows: SECTION 1. PURPOSE OF AGREEMENT The Public Body has responsibility and jurisdiction to carry out the Community Development Program in areas delineated in the applicable Community Development Block Grant Contract. The Agency, by agreement with the Public Body, has been delegated the jurisdiction and responsibility for rehabilitation assistance in such Community Development Areas and has the responsibility for rehabilitation assistance in the Lubbock NDP area. The processing by the Public Body as delegated to and performed by the Agency, and submission by the Agency to the Department of Housing and Urban Development for approval, of rehabilitation loans under Section 312-of the Housing Act of 1964, as amended (Section 312 loans) is presently authorized with respect to one or more of the areas covered by such programs. The purpose of this Agreement Is to extend to the Public Body, through the Agency, authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called regulations) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of fund availability for an approved loan. SECTION 2. APPLICABILITY OF APPROVAL AUTHORITY During the term of this Agreement, the Public Body, through the Agency, shall have final authority to approve applications for Section 312 loans with respect to residential and mixed -use property, which will contain one to four dwelling units after rehabilitation, and which is located in an area with respect to which the Public Body, through the Agency, has authority to process such loans, as described In Section 1 hereof. The Public Body, through the Agency, shall exercise such loan approval authority with respect to property _in all such areas which come under its jurisdiction during the term of this Agreement. However, no loan approval under authority of this Agreement shall be valid until the Secretary has determined that funds are available therefor and has notified the Public Body, through the Agency, thereof. SECTION 3. NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Secretary's regulations to be submitted with respect to Section 312 loans approved by the Public -Body, through the Agency, the Secretary shall promptly notify the Public Body, through the Agency, in writing whether sufficient funds are available for the approved loan. SECTION 4. COMPLIANCE WITH GOVERNMENT REGULATIONS The loan approval authority granted by this Agreement shall be exercised in accordance with the procedures and requirements established by the applicable regulations of the Secretary in effect from time to time. In particular, the Public Body, through the Agency, shall not notify an applicant of loan approval until receipt of notice. of availability of funds for the loan from the Secretary. SECTION 5. EFFECT OF FAILURE TO COMPLY a. Grounds for Termination. Failure of the Public Body, through the Agency, to comply with the procedures and requirements of the Secretary with respect to loan approval, or with respect to other aspects of the Section 312 loan program, are grounds for termination of this Agreement at the option of the Secretary. However, such failure shall not create or Justify any claim against the Government on the part of any third person, and shall not constitute grounds for any third person to contest the validity of any Section 312 loan approved by the Public Body, through the Agency, under authority of this Agreement and during its term. b. Defend and Hold Harmless. The Public Body, through the Agency, will warrant, defend, and hold harmless the Government with respect to all claims and losses caused by its failure to comply with the regulations of the Secretary and the requirements of applicable State and local law in its approval of Section 312 loans under authority of this Agreement, and in the subsequent settlement and administration of loans so approved. In the event the Secretary's regulations and the^requirements of State and local law are inconsistent, the Public Body, through the Agency, shall request advice from the Secretary prior to approval of the Section 312 loan. SECTION 6. RESTRICTION ON OFFICIALS AUTHORIZED TO APPROVE LOANS The Public Body, through the Agency, 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 exercises any duties or responsibilities in the administration of the Public Body's Section 312 Loan Program, including, without limitation: a. Preparation of rehabilitation work writeups or cost estimates, or of construction contract documents; b. Obtaining information with respect to, completing with the borrower, or processinc a Section 312 loan application or any of the related documents,constituting the loan application file; C. Selection, of or negotiation with contractors to perform the rehabilitation work; d. Authorization of disbursements from the rehabilitation escrow account, or signing or countersigning of checks drawn on the rehabilitation escrow account; e. Inspection of the rehabilitation work to ascertain whether the work is completed or for the purpose of authorizing any partial payment requested by a contractor; or f. Authorization of signing or signing of Form HUD-6245, Certificate of Final Inspection. SECTION 7. SUBMISSION OF DOCUMENTATION Promptly upon approval of a Section 312 loan by an appropriate official of the Agency, the Agency shall assemble and transmit to the Secretary the documentation required to be submitted with respect to a Section 312 loan approved by a Public Body, in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The Agency shall also promptly submit copies as required of any resolutions affecting the identity of Agency officials authorized to approve Section 312 loans under the Agreement, any notices of the Public Body's determination to cancel this Agreement, and any other required documentation or reports, in accordance with such requirements and regulations. SECTION 8. SUPERVISION, ADMINISTRATION, AND INSPECTION The Public Body, through the Agency, shall at all proper times provide or cause to be provided competent and adequate architectural, engineering, financial and other technical supervision and inspection of rehabilitation work financed by Section 312 loans approved under this Agreement. The Public Body, through the Agency, shall keep full and accurate books and records with respect to Section 312 loans approved under this Agreement, and with respect to its administration of the Section 312 loan program and shall maintain them in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The Agency shall, at any time during normal business hours, and as often as the Secretary or the Government may deem necessary, permit the Secretary or any other representative of the Government, to inspect; make excerpts or transcripts of, copy, and audit such books and records. The Agency will cooperate in any inspection of rehabilitation work financed by Section 312 loans approved under this Agreement, as deemed necessary by the Secretary or the Government. SECTION 9. COMPLIANCE WITH CIVIL RIGHTS ACT OF 1964 The Public Body, through the Agency, will perform its activities under this Agreement in accordance with all requirements imposed by, or pursuant to regulations of the Secretary effectuating, Title VI of the Civil Rights Act of 1964. SECTION 10. CANCELLATION OF APPROVED LOANS The Secretary reserves the right to cancel Section 312 loans approved.by the Public Body, through the Agency, in accordance with the requirements and regulations of the Secretary in effect from time to time. Upon receipt by the Public Body and by the Agency of such notice of cancellation, the Public Body, through the Agency, shall promptly submit to the Secretary any documentation requested by him, and shall prompt] refund the amount of the loan to the Secretary, on account of the Section 312 Loan Revolving Fund. SECTION 11. 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 parties under any contract for Federal assistance with respect to any of the Projects or Programs described in Section 1 hereof under the jurisdiction of the Public Body and the Agency. SECTION 12. TERM OF AGREEMENT This Agreement shall be effective from the date hereinbelow specified until terminated in accordance with Section 13 hereof. SECTION 13. TERMINATION OF AGREEMENT a. Automatic Termination. This Agreement shall automatically terminate on the official date of closeout of the last project or program (as described In Section 1 hereof) under the jurisdiction of the Public Body and the Agency, in the area of which Section 312 loans are authorized. b. Termination by Parties. This Agreement shall terminate 30 days after written notice of intent to terminate is sent by one party to the other, except that, when the Public Body and the Agency give notice of their intent to terminate the Agreement, the Secretary may require the Public Body and the Agency to continue under the Agreement for a specified additional period of time, not to exceed 60 days, in order that arrangements may be made to accommodate the workload resulting from the Public Body's termination. Notice of termination under this subsection may be given by either party for cause or convenience. C. Suspension or Termination for Cause. The Secretary may, for cause, by written notice to the Public Body and to the Agency, require that the Public Body, through the Agency, discontinue immediately the approval of loans under this Agreement pending completion of specified corrective action by the Public Body, through the Agency, or termination of this Agreement. SECTION 14. EFFECTIVE DATE This Agreement shall be effective the loth day of April 1978 SECTION 15. COUNTERPARTS OF AGREEMENT This Agreement may be executed in 4 counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. t� IN VITNESS WHEREOF, the Public Body and the Agency have caused this Agreement to be duly executed in their behalf and their seals to be hereunto affixed and attested; and, thereafter, the Government has caused the same to be duly executed in its behalf this 28th day of March , 19 78 A TTE�ST: 'o A49&ei� EVA PHILLIPS, ClT SECRETARY -TREASURER ATTEST: AA� .'0. ALDERSON, SECRETA CITY OF LUBBOCK BY:�G ROY BASS, MAYOR Bp�as to form: Fred 0. scnWr, r,., .: 4 At�,.e3Y URBAN RENEWAL AGENCY OF THE CITY OF LUBBOCK, TEXAS BETTY A ERSON, HAIRMAN BOARD OF COMMISSIONERS UNITED STATES OF AMERICA Secretary of Housing & Urban Developm BY: Robert C. ry, Jr. Assistant Becretary for Commrnity Planning s Developmeffitle of Officer Authorized to Exec