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HomeMy WebLinkAboutResolution - 4809 - Funding Agreement - CHRB - Affordable Rental Housing-8 Unit Rental Complex, HOME - 04_13_1995Resolution No. 4809 April 13, 1995 Item #39 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 a Funding Agreement with the Community Housing Resource Board under the HOME Program for the provision of funding for the acquisition of an eight (8) unit rental complex to provide affordable rental housing. Said Agreement 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 13th April , 1995. ATTEST: etty M. Johns , City Secretary APPROVED AS TO CONTENT: Doug GoqaViaT, Managing Director for Health & Ummunity Services APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney LLC js/A-CHRB2.RES ccdocs/rev. March 31, 1995 Resolution No. 4809 April 13, 1995 Item #39 HOME PROGRAM FUNDING AGREEMENT BETWEEN THE CITY OF LUBBOCK AND COMMUNITY HOUSING RESOURCE BOARD STATE OF TEXAS § COUNTY OF LUBBOCK § This Agreement entered into this 13th day of April , 1995, by and between the CITY OF LUBBOCK (herein called "City") and COMMUNITY HOUSING RESOURCE BOARD (herein called "Grantee"). WHEREAS, City is required to set aside a portion of their HOME grant to a Community Housing Development Organization (CHDO) pursuant to the HOME Investment Partnerships Act, 42 U.S.C. 12701 et. seq., and 24 CFR Subtitle A Part 92 et. seq.; and WHEREAS, the Grantee is a nonprofit corporation offering services to families through- out Lubbock; and WHEREAS, Grantee proposes to provide a program called "Affordable Rental Housing Program" which addresses the needs of many potential renters in need of affordable rental housing; and WHEREAS, the services provided by the Grantee benefit residents of the area and constitute a valuable public service; and WHEREAS, the City Council of the City of Lubbock has declared the services provided by the Grantee to be a public purpose; and WHEREAS, the Grantee and the services it provides have been found to meet the criteria for funding under 24 CFR Subtitle A Part 92, Subpart E; and WHEREAS, the accomplishment of the above public purpose is the predominate purpose of this transaction; continuing supervision by the City together with statutory and contractual re- quirements provide sufficient assurance that the public purpose will be accomplished; the City Council has found that the Grantee has the special expertise, knowledge and experience necessary for the operation of the Affordable Rental Housing Program and that the City will re- ceive adequate consideration in the form of substantial public benefit; and WHEREAS, the City desires to contract with the Grantee to make available assistance for the acquisition of a rental complex; NOW THEREFORE, it is agreed between the parties hereto that: SCOPE OF SERVICE A. City Responsibilities City agrees to provide Grantee assistance from HOME program funds in an amount not to exceed SEVENTY-FIVE THOUSAND AND N0/100 DOLLARS ($75,000.00) plus up to THREE THOUSAND SEVEN HUNDRED FIFTY AND NO/100 DOLLARS ($3,750.00) for administrative expenses, in return for Grantee performing the activities set forth in this Agreement as consideration for said funds. 2. City's financial assistance will be limited to the following: a. The assistance made available through this Agreement shall be used by the Grantee for the purpose of acquisition as a Community Housing Development Organization under the HOME program; and b. The assistance made available through this Agreement shall be used to acquire a property in the census tract area (eligible Community Development area); and C. The property purchased under the HOME program shall be rented exclusively to low and moderate income families whose gross household income does not exceed the income eligibility requirements as established by the Department of Housing and Urban Development. B. Grantee's Responsibilities 1. Grantee agrees to use the SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($75,000.00) made available through this Agreement solely for the purpose of purchasing the property; and 2. Grantee agrees to use the THREE THOUSAND SEVEN HUNDRED FIFTY AND NO/100 DOLLARS ($3,750.00) provided from the administrative portion of the City's general HOME grant for administrative costs under this Agreement at the rate of five percent (5%) of the funds actually utilized under Section I.B.1. above; and 3. Grantee agrees to provide written progress reports to the City every thirty (30) days beginning thirty (30) days from the date of this Agreement and continuing until Grantee's responsibilities under this Agreement are completed; and 4. Upon completion of this project, if the entire funded amount is not used, Grantee agrees to refund any unused portion to the City within thirty (30) days; and Grantee agrees to abide by the "Affordable Rental Housing Program" (a copy of which is attached hereto as Exhibit A and incorporated herein) as proposed by Grantee, in fulfillment of this Agreement, unless prior written consent for any deviation is obtained from the City's Managing Director for Health & Community Services. HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 2 II. TIME OF PERFORMANCE This Agreement shall commence on April 13 , 1995, and shall terminate on May 6 , 19938 The term of this Agreement and the provisions herein shall be extended to cover any additional time period during which Grantee remains in control of HOME funds or other assets including program income. III. PAYMENT City will pay up to SEVENTY-FIVE THOUSAND AND NO/100 DOLLARS ($75,000.00) to Grantee based upon the receipt of requests for funds for the purchase of the property under the CHRB/HOME "Affordable Rental Housing Program" plus up to THREE THOUSAND SEVEN HUNDRED FIFTY AND NO/100 DOLLARS ($3,750.00) for administrative expenses, to be provided out of the administrative portion of the City of Lubbock HOME grant. IV. NOTICES Communication and details concerning this Agreement shall be directed to the following contract representatives: Tony Reyes Yolanda Jimenez Housing Rehabilitation Coordinator Executive Director City of Lubbock Community Housing Resource Board P. O. Box 2000 5302 Avenue Q, South Drive Lubbock, Texas 79457 Lubbock, Texas 79412 V. SPECIAL CONDITIONS Grantee agrees to comply with the requirements of Title 24, Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations concern- ing the HOME program and all Federal regulations and policies issued pursuant to these regulations. VI. GENERAL CONDITIONS A. General Compliance Grantee agree to comply with all applicable Federal, State and local laws and regulations governing the funds provided under this Agreement which were avail- able under City's Home Investment Partnership Program. B. Independent Contractor Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. Grantee shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. City shall be HOME PROGRAM FUNDING AGREEMENTICHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 3 exempt from pay of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Worker's Compensation Insurance as the Grantee is an independent Grantee. C. Hold Harmless Grantee shall hold harmless, defend and indemnify City from any and all claims, actions, suits, charges and judgments whatsoever that arise out of Grantee's per- formance or nonperformance of the services or subject matter called for in this Agreement. D. Workers Compensation Grantee shall carry sufficient insurance coverage to protect contract assets from due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. E. Insurance and Bonding Grantee shall carry sufficient insurance coverage to protect contract assets from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase a blanket fidelity bond covering all employees in an amount equal to cash advances from City. F. City Recognition Grantee shall insure recognition of the role of City's HOME program in providing funding through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, Grantee will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement. G. Amendments City or Grantee may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and area executed in writing, signed by a duly authorized representative of both organizations and approved by the City Council if required by law. Such amendments shall not in- validate this Agreement, nor relieve or release City or Grantee from its obligations under this Agreement. City may, in its discretion, amend this Agreement to conform with Federal, State or local governmental guidelines, policies and available funding amounts, or for other reasons. if such amendments result in a change in the funding, the scope of services, or the activities to be undertaken as part of this Agreement, such modifi- cations will be incorporated only by written amendment signed by both City and Grantee. H. Suspension or Termination Either party may terminate this Agreement at any time by giving written notice to the other parry of such termination and specifying the effective date thereof at least thirty (30) days before the effective date of such termination. Partial HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 4 termination of the Scope of Service in Paragraph I.B above may only be undertaken with the prior approval of City. In the even of any termination for convenience, all finished or finished documents, data, studies, surveys, maps, models, photographs, reports, or other materials prepared by Grantee under this Agreement shall at the option of the City, become the property of City, and Grantee shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents or materials prior to the termination. City may also suspend or terminate this Agreement, in whole or in part, if Grantee materially fails to comply with any term of this Agreement, or with any of the rules, regulations, or provisions referred to herein; and the City may declare the Grantee ineligible for any further participation in City contracts, in addition to other remedies as provided by law. In the event there is probable cause to believe Grantee is in noncompliance with any applicable rules or regulations, City may withhold up to fifteen percent (15%) of said Contract funds until such time as Grantee is found to be in compliance by City or is otherwise adjudicated to be in compliance. VII. ADMINISTRATIVE REQUIREMENTS A. Financial Management Accounting Standards Grantee 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 Grantee shall administer its program in conformance with OMB Circular A-122, "Cost Principles for Nonprofit Organizations," or A-21, "Cost Principles for Educational Institutions," as applicable, for all costs incurred whether charged on a direct or indirect basis. B. Documentation and Record -Keeping Records to be Maintained Grantee shall maintain all records required by the federal regulations specified in 24 CFR 570.506, and that are pertinent to the activities to be funded under this Agreement. 2. Retention Grantee shall retain all records pertinent to expenditures incurred under this Agreement for a period of fifteen (15) years after the termination of all activities funded under this Agreement, or after the resolution of all Federal audit findings, whichever occurs later. HOME PROGRAM FUNDING AGREEMENT/CURB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 5 3. Client Data Grantee shall maintain client data demonstrating client eligibility for serv- ices provided. Such data shall include, but not be limited to, client name, address, income level other basis for determining eligibility, and description of service provided. Such information shall be made available to City monitors or their designees for review upon request. 4. Audits and Inspections All Grantee records with respect to any matters covered by this Agreement shall be made available to City, their designees or the Federal Government, at any time during normal business hours, as often as City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by Grantee within thirty (30) days after receipt by the Grantee. Failure to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments. VIII. PERSONNEL AND PARTICIPANT CONDITIONS A. Civil Rights Compliance Grantee agrees to comply and to require all subcontractors to comply with Title VI of the Civil Rights Act of 1964, as amended, Title VIII of the Civil Rights Act of 1968, as amended, Section 109 of Title I of the Housing and Community Development Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age of Discrimination Act of 1975, Executive Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375 and 12086. 2. Land Covenants This Agreement is subject to the requirements of Title VI of the Civil Rights Act of 1964 and 24 CFR 670 Part I. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance pro- vided under this Agreement, Grantee shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination in the sale, lease, or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the City and the United States are beneficiaries of and entitled to enforce such covenants. Grantee also agrees to take such measure as are necessary to enforce such covenant and will not itself so discriminate. HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 6 B. Employment Restrictions Labor Standards Grantee agrees to comply and require all subcontractors to comply with the requirements of the Secretary of Labor in accordance with the Davis - Bacon Act, as amended, the provisions of Contract Work Hours, the Safety Standards Act, the Copeland "Anti -Kickback" Act and all other applicable Federal, State and local laws pertaining to labor standards inso- far as those acts apply to the performance of this Agreement. Grantee will maintain documentation which demonstrates compliance with hour and wage requirements of this part; this documentation shall be made available to the City to the City for review upon request. Grantee agrees that all contractors engaged under contracts in excess of TWO THOUSAND AND NO/100 DOLLARS ($2,000.00) for construc- tion, renovation or repair of any building or work financed in whole or in part which assistance provided under this Agreement shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 1, 3, 5 and 7 governing payment of wages and ratios of apprentices and trainees to journeymen; provided, that if water rates higher than those required under the regulations are imposed by State or local law, nothing hereunder is intended to relieve Grantee of its obliga- tion, if any, to require payment of the higher wage. Grantee shall cause or require to be insured in full, in all such contracts subject to such regulation, provisions meeting the requirements of this paragraph for contracts in excess of TEN THOUSAND AND NO/100 DOLLARS ($10,000.00). 2. "Section 3" Clause Grantee agrees to comply with the provisions of Section 3 and to include the following clause in all subcontracts executed under this Agreement: "The Work to be performed under this Contract is a project assisted under a program providing direct federal finance assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended. Section 3 requires that to the greatest extent feasible opportunities for training and employment be given to lower income residents of the project area and contracts for work in connection with the project be awarded to business concerns which are located in or owned in substantial part by persons residing in the areas of the project." HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 7 C. Conduct 1. Prohibited Activity Grantee is prohibited from using funds provided herein or personnel employed in the administration of the program for political activities; sec- tarian, or religious activities; lobbying, political patronage, and nepotism. 2. Conflict of Interest Grantee and City agree to abide by the provisions of 24 CFR 570.611 with respect to conflicts of interest, and Grantee covenants that it presently has no financial interest, direct or indirect, which would conflict in any manner or degree with the performance of the services required under this Contract and that no person having such an interest will be employed as or by the subcontractor carrying out this Agreement. IX. ENVIRONMENTAL CONDITIONS A. Air and Water Grantee agrees to comply with the following regulations insofar as they apply to the performance of this contract: Clean Air Act, 42 U.S.C. 1857, et. seq., Federal Water Pollution Control Act, as amended 33 U.S.C. 1251, et.5gq. and all regula- tions and guidelines issued thereunder; Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, National Environmental Policy Act of 1969, and HUD Environmental Review Procedures (24 CFR Part 58). B. Flood Disaster Protection Grantee agrees to comply with the requirements of the Flood Disaster Protection Act of 1973 in regard to the sale, lease, or other transfer of land acquired, cleared or improved under the terms of this Agreement, as it may apply to the provisions of this Agreement. C. Lead -Based Paint Grantee agrees that any construction or rehabilitation of residential structure with assistance provided under this contract shall be subject to HUD Lead -Based Paint Regulations at 24 CFR 570.608 and 24 CFR Part 35 and in particular Sub -part B thereof. Such regulations pertain to all HUD assisted housing and require that all owners, prospective owners, and tenants or properties constructed prior to 1978 be properly notified that such properties may include lead -based paint. Such notification shall point out the hazards of lead -based paint and explain the symp- toms, treatment and precautions that should be taken when dealing with lead -base paint poisoning. D. Historic Preservation Grantee agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preser- HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 8 vation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty (50) years old or older or that are included on a Federal, State, or local historic property list. IN WTTNF.RS WHF.RFOF_ the Parties have executed this Agreement as of the date first ATTEST: �� C�OL Betty M. JohnsonVCity Secretary APPROVED AS TO CONTENT: Doug Goo , Managing Director for Housing & mmunity Services APPROVED AS TO FORM: Linda L. Chamales, Assistant City Attorney LLC.js/A-CHRB.DOC D-7/Contracts,Agreements COMMUNITY HOUSING RESOURCE BOARD i e,IANDA JIMENE, EXECUTIVE DOR HOME PROGRAM FUNDING AGREEMENT/CHRB AFFORDABLE RENTAL HOUSING PROGRAM ---- PAGE 9