HomeMy WebLinkAboutReso 96-119 - Approving agreement between COR & the Habitat for Humanity Shasta County for the Acquisition of a Lot in the COR and Authorize CM to Sign Same �
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RESOLUTION NO._�'lG � /��J
A RESOLiTTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE AGREEMENT BETWEEN THE CITY OF REDDING AND THE
HABITAT FOR HUMANITY SHASTA COUNTY FOR THE ACQUISITION OF A
LOT IN THE CITY OF REDDING,AND AUTHORIZING THE CITY MANAGER TO
SIGN SAME.
I3E IT RESOLVED by the City Council of the City of Redding as follows:
1. The City Council of the City of Redding hereby approves the Agreement between the City of Redding
and the Habitat for Humanity Shasta County providing a single-family unit to be sold to low-income citizens of
the City of Redding.
2. The City Manager of the City of Redding is hereby authorized and directed to sign all necessary
documents on behalf of the City of Redding, and the City Clerk is hereby authorized and directed to attest the
signature of the City Manager and to impress the official seal of the City of Redding on the aforesaid documents,
when appropriate. .
3. A true copy of the Agreement referred to herein is attached hereto and made a part hereof.
I HEREBYCERTIFYthat the foregoing resolution was introduced and read at a regulaY meeting of the
City Council of the Ciry of Redding on the 18th day of June, 1996,and was duly adopted at said meeting by the
following vote:
AYES: COIJNCIL MEMBERS: P. Anderson, R. Anderson, I�ehoe , Murray and McGeorge
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: ilone
ABSTAIN: COUNCIL MEMBERS: None
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DAVID . EOR , ay�
ATTEST: City of Redding
CONNIE ST OHMAYE i Clerk �
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FORM APPROVED: �
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��1✓ - L.�'7,r��f��� r.�<.
W. LEONARD WINGA ity Attorney
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AGREEMENT BETWEEN CITY OF REDDING
AND HABITAT FOR HUMANITY SHASTA COUNTY
FOR USE OF CDBG FUNDS
THIS AGREEMENT, made and entered into this day of , 1 9 , by
and between the CITY OF REDDING, a municipal corporation, hereinafter called "CITY" and
the HABITAT FOR HUMANITY SHASTA COUNTY, a non-profit corporation, hereinafter
called "PROVIDER;" and
RECITALS
WHEREAS, the CITY has allocated Community Development Block Grant (CDBG)
funds to PROVIDER for the specific purposes set forth herein; and
WHEREAS, said funds are provided to the CITY through the Community Development
Block Grant Program of the U.S. Department of Housing and Urban Development (HUD);
and
WHEREAS, the CITY has allocated said funds for the sole purpose of supporting
PROVIDER's delivery of services and programs to CITY's residents as set forth herein.
NOW, THEREFORE, it is mutually agreed by PROVIDER and CITY as follows:
I. PROVISIONS AND SERVICES.
PROVIDER will render to residents of the City of Redding services as set forth in
attached Exhibit "A," and as represented in the application dated February 8, 1995,
and which is hereby incorporated by reference as if set forth in full.
I I. TERM.
The term of this Agreement shall be from June 18, 1996, and shall continue until all
requirements set forth herein have been fulfilled or June 18, 1998, whichever occurs
first.
III. AMOUNT AND USE OF FUNDS.
Use of CITY's funds allocated hereunder to PROVIDER shall be subject to the
following terms and conditions:
A. The CITY shall pay to the PROVIDER a sum not to exceed 510,000.00, for the
purposes set forth in Section III B of this Agreement and Exhibit "A" Scope of
Work.
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 2
B. PROVIDER shall use the funds provided pursuant to this Agreement for the
acquisition of a lot to be used for the construction of one single-family unit to be
made available for purchase to eligible low-income City of Redding households,
i.e., persons living within the corporate limits of the CITY.
C. The real property must be located within the jurisdictional boundaries of the City
of Redding. ,
D. PROVIDER shall be responsible for all sums necessary to purchase said property
and construct a single-family residential unit in excess of the CITY grant.
E. The real property must be purchased within 6 months of the execution date of
this Agreement. The housing unit must be developed and occupied no later than
24 months following execution date of this Agreement.
F. PROVIDER shall setl completed unit, for which funds paid by the CITY were
utilized hereunder, only to households meeting appropriate eligibility criteria under
CDBG guidelines, as identified in Exhibit "B."
G. Upon purchase of unit by eligible low-income household, a security agreement
shall be recorded against said property, specifying that upon subsequent transfer
of title, CDBG funds provided under this agreement will be returned to PROVIDER
to be reinvested on additional affordable housing projects. Proof of said
agreement shall be provided. Such funds shall be considered "Program Income"
and shall be subject to all conditions outlined in Section VII.
H. The full amount of the funds (S 10,000) will be immediately due and payable to
the City of Redding if either of the following occurs:
1 . If the single-family unit is not built within the time frame set forth in III E.
2. If a -security agreement as set forth in III G is not recorded against said
property at the time title is transferred.
IV. APPORTIONMENT OF FUNDS.
A. No allocated funds will be disbursed under this Agreement until final fund
drawdown authorization has been received by the City from HUD.
B. Prior to dispersement of CDBG funds, PROVIDER shall furnish proof that the
additional monies necessary to purchase the lot have been obtained.
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 3
V. TERMINA TION.
If PROVIDER breaches the provisions of this Agreement for any reason other than the
occurrence of circumstances over which it can exercise no effective control and such
violation shall not be cured or remedied within thirty (301 days after written notice
thereof by CITY, in addition to any other remedies provided for herein, CITY shall
have the right to terminate this Agreement by written notice duly served upon
PROVIDER. Furthermore, if CITY determines PROVIDER is unable to fulfill the
obligations as set forth in this Agreement, CITY shall have the right to terminate this
Agreement by written notice. PROVIDER may terminate Agreement at any time
subject to PROVIDER first complying with any and all of its provisions to that point
and upon PROVIDER serving thirty (30) days written notice to CITY of intent to
terminate services.
V I. REVERSION OF A SSETS.
Upon expiration of this Agreement, PROVIDER shall transfer to City of Redding any
CDBG funds on hand at the time of expiration and any accounts receivable
attributable to the use of CDBG funds. For purposes of this provision, accounts
receivable shall not include funds secured under a security agreement by a purchaser
of a housing unit, including agreements required under Section III G herein.
V II. PROGRAM INCOME.
A. "Program Income" means amounts received by PROVIDER generated from the
use of funds under the terms of this Agreement. It includes, but is not limited
to, the following:
1 . Proceeds from the disposition by sale or long-term lease of real property
purchased with CDBG funds;
2. Income from the temporary use, lease, or sale of properties acquired or
developed with CDBG funds;
3. Payments of principal and interest on loans made using CDBG funds;
4. Interest earned on CDBG funds held in a revolving fund account;
5. Interest earned on program income pending disposition of such income; and
B. Program income may be retained by PROVIDER and used for those activities as
set out in the "Scope of Work" section of this Agreement.
C. Program income earned shall be substantially disbursed to the approved activities
prior to requesting disbursement of additional funds from CITY. PROVIDER shall
show all program income generated using CDBG funds as adjustments on their
requests for funds submitted to CITY.
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 4
D. In the event that PROVIDER is unable to expend atl program income in the current
year, it will be considered as carryover funds available for successive CDBG grant
years. If the Agreement is terminated those funds shaii revert to CITY.
VIII. DOCUMENTS. REPORTS AND RECORDS.
A. PROVIDER shall at all times maintain a complete and current set of financial and
statistical records of all its activities, which shall include, but shall not be limited
to, those specifically set forth below or otherwise mentioned herein, and which
shall in particular reflect clearly the application and use of funds paid to it by the
CITY. All such records shall be in a form satisfactory to the CITY and shall be
subject to inspection or audit by CITY staff at any reasonable time during the
normal and usual business hours of PROVIDER. Any inspection or audit of both
financial and nonfinancial files shall be made by the Housing Administrator or
his/her designee.
B. Recognizing that PROVIDER may from time to time render services to recipients
which are highly personal and confidential in nature, the CITY shall only disclose
such information as required by law.
C. PROVIDER shall establish a Revolving Loan Program and maintain a financial
management system which identifies adequately the source and application of
funds for Revolving Loan Fund activities and provides effective control over and
accountability for all funds and other assets. PROVIDER shall adequately
safeguard all such funds and assets and shall assure that they are used solely for
authorized purposes under this Agreement.
IX. HOLD HARMLESS CLAUSE.
In providing its services, PROVIDER will act as an independent contractor and no
officer or employee of PROVIDER will be deemed a CITY officer or employee for any
purpose. PROVIDER shall hold the CITY, its officers, boards and commissions, and
members thereof, its employees and agents harmless of and free from any and all
liabilities which might arise out of or are related to the acts or omissions of the
PROVIDER in any way relating to the subject matter of this Agreement.
X. INSURA NCE PRO VlSIONS.
PROVIDER shall obtain comprehensive general liability insurance naming the CITY,
its officers, agents and employees as additional insured in the amount of S 1 ,000,000
combined single limits. A certificate of insurance evidencing such comprehensive
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 5
general liability insurance shall be furnished to the CITY guaranteeing CITY 10 days
notice of cancellation or reduction in coverage in a form approved by the CITY Risk
Manager.
PROVIDER shall obtain insurance coverage as primary insurance as respects the
CITY, its officers, officials, employees and volunteers. Any insurance or self-
insurance maintained by the CITY, its officers, officials, employees or volunteers shall
be excess of your insurance and shall not contribute with it.
XI. LEGAL COMPLIANCES.
PROVIDER shall at all times during the term of this Agreement comply with all legal
requirements, including any applicable Federal, State or City regulations, and shall
secure at its full cost and expense any and al� permits, applications or other
requirements in connection therewith.
X I I. CONTROL OF CITY. ,
CITY shall retain ultimate control over matters involving the exercise of judgement
and discretion in carrying out the intended program provided for by CDBG funds to
ensure compliance with CDBG requirements.
XIII. UNIFORM ADMINISTRATIVE REQUIREMENTS
A. PROVIDER shall comply with the requirements of Title 24, Part 135, Employment
Opportunities for Businesses and Lower-Income Persons in Connection with
Assisted Project.
B. PROVIDER shall comply with the requirements and standards of OMB Circular No.
A-122, A-110, and A-21 , including all stated restrictions on the use ot
appropriated funds for lobbying purposes in connection with a specific contract,
grant, or loan.
To this effect, PROVIDER further agrees to execute Exhibit "E," Anti-Lobbying
Certification, attached hereto.
C. PROVIDER will comply with the requirements of Section 504 of the Rehabilitation
Act of 1973 as amended by 29 USC 794.
D. No member of or Delegate to the Congress of the United States and no Resident
Commissioner shall be admitted to any share or part of this Agreement or to any
benefit to arise from the same.
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 6
E. No member, officer or employee of the City of Redding, or its designees or
agents, no members of the governing body of the City of Redding, and no other
public official of the City of Redding who exercises any functions or
responsibilities with respect to the program during his tenure or for one year
thereafter shall have any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for work to be performed in connection
with the program assisted under this Agreement.
F. The assistance provided under this Agreement shall not be used in the payment
of any bonus or commission for the purpose of obtaining HUD approval of the
application for such assistance, or HUD approval of applications for additional
assistance, or any other approval or concurrence of HUD required under this
Agreement, Title I of the Housing and Community Development Act of 1974 or
HUD regulations with respect thereto; provided, however, that reasonable fees
or bona fide technical, consultant, managerial or other such services other than
actual solicitation, are not hereby prohibited if otherwise eligible as program
costs.
G. PROVIDER shall comply with the prevailing wage provisions of the Davis - Bacon
Act on any project costing in excess of 52,000.00 when 25 percent or more of
the costs of such project are paid with Community Development Block Grant
funds. This provision shall only apply to compensated employees and not
volunteers.
H. PROVIDER shall pay individuals employed in jobs financed in whole or in part
with CDBG funds not less than the prevailing rates of pay for such jobs. This
provision does not apply to an employee or employees in any program category
who are being paid in whole, or in part with CDBG funds unless 25 percent or
more of the total wages paid to all employees in that category are paid from
CDBG funds.
I. Except as provided in section 12940 et seq. of the Government Code, PROVIDER
shall not discriminate against any person because of his/her race, religious creed,
color, national origin, ancestry, physical disability, mental disability, medical
condition, mental status, age, or sex nor refuse to hire or employ the person or
to refuse to select the person for a training program leading to employment, or
to bar or to discharge the person from employment, or from a training program
leading to employment, or to discriminate against the person in compensation or
in terms, conditions or privileges of employment. The PROVIDER shall insert in
all subcontracts for any work covered by this Agreement this nondiscrimination
provision.
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AGREEMENT WITH HABITAT FOR HUMANITY
SHASTA COUNTY Page 7
CITY OF REDDING
ATTEST: By
MICHAEL WARREN, City Manager
CONNIE STROHMAYER, City Clerk
HABITAT FOR HUMANITY SHASTA COUNTY
FORM APPROVED:
By
�Exec iv irector
W. LEONARD WINGATE, City Attorney �'
By �
Presi en of the Boa
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EXHIBIT "A"
Scope of Work
The Scope of Work under this Activity shall consist of the provision of a lot and the
construction of a single-family housing unit to be made available for purchase by an eligible,
low-income family.
Community Development Block Grant funds will be applied toward acquisition of a lot in the
City of Redding on which the unit will be constructed. All construction costs will be met
by private charitable gifts of funds, materials, and labor.
Upon completion, the house will be sold to a previously selected household with an annual
income at or below area lower-income guidelines as set forth by HUD. A down payment
will not be required nor will interest be applied to the mortgage. Mortgage payments will
become part of a Revolving Loan Program Fund and utilized in the building of more houses.
Pio visions
1 . Submission of Exhibit "D," Report for Use of City of Redding CDBG Funds, to the City.
2. Proof of acquisition of the property.
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EXHIBIT "B"
CDBG income Guidelines:
Ml�ucimum Mn�a�l income
Very Lrnw Low
F�mil Si�e Ve�r Mi�n4�r Ye�r RAon4h
1 11,950 996 19,150 1,596
2 13,700 1,142 21,900 1,825
3 15,400 1,283 24,600 2,050
4 17,100 1,425 27,350 2,279
5 18,450 1,538 29,550 2,463
6 19,850 1,654 31,750 2,646
7 21,200 1,767 33,950 2,829
8 22,550 1 ,879 36,100 3,008
CDBG guidelines include all sources of income in the determination of Adjusted Gross
Income except for the following:
a. Income from employment of children;
b. Payment received for the care of foster children;
c. Amounts specifically excluded by any Federal statute from consideration as income for
purposes of determining efigibility or benefits under a category of assistance programs
that includes assistance under the 1937 Act;
d. Casual, sporadic, or irregular gifts;
e. Amounts that are specifically for or in reimbursement of the cost of inedical expenses;
f. Lump-sum additions to family assets, such as inheritances, insurance payments
(including payments under health and accideni insurance and worker's compensation),
capital gains and settlement for personal or property losses; and
g. Amounts of education scholarships paid directly to the studeni or to the education
institution, and amounts paid by the government to veteran, fo� use in meeting the
costs of tuition, fees, books and equipment.
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EXHIBIT "C"
ANTI-LOBBYING CERTIFICATION
The undersigned certifies, to the best of his or her knowledge and belief, that:
1 . No Federal appropriated funds have been paid or will be paid, by or on behalf of
the undersigned, to any person for influencing or attempting to influence an
officer or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in connection
with the awarding of any Federal contract, the making of any Federal grant, the
making of any Federal loan, the entering into of any cooperative agreement, and
the extension, continuation, renewal, amendment, or modification of any Federal
contract, g�ant, loan, or cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an office� or employee of
any agency, a Member of Congress, an officer or employee of Congress, or an
employee of a Member of Congress in connection with this Federal contract,
grant, loan, or cooperative agreement, the undersigned shall complete and submit
Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its
instructions.
3. The undersigned shall require that ihe language of this certification be included in
the award documents for all subawards at all tiers (including subcont�acts,
subgrants, and contracts under grants, loans, and cooperative agreements) and
that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed
when this transaction was made or entered into. Submission of this certification is a
prerequisite for making or entering into this transaction imposed by section 1352,
title 31 , U.S. Code. Any person who fails to file the required certification shall be
subject to a civil penalty of not less than S 10,000 and not mo�e than S 100,000 for
each such failure.
DATE: (��7 /C(,� SIGNATURE:
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PROJ\CDBG\EXH.E
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• � EXHIBIT "D" .
CITY OF REDDING CDBO FUNOS
NAME OF PROVIDER: PROGRAM:
Contect Perso�/Title: Phone:
Accountinp Period to�thio Report: throuQh
I. FINANCIAL STATUS
A. Total Proprem Budpet (ell tunds) S
8. Totel CDBG Funds Alloceted tor Operation of this ProAram: S
C. Total proes expe�diture4: S
D. CDBG funds due at end ot this accountinp period (G- H!: S
II. SERVICE LEVELS IYea�-To-Date)
A. Total 1 Fbuseholds
Total i Households Totd I Households Totd I Households Total i�Housaholds th�t ars COR Reside�ts
Servsd To Date at Low-Incoms Lovel Very low•Income that xe COH Reside�ts at Lowd�eome Levsl
Level Served to Oats
B. Race of Head of Household: lA�Househows se�vedl Native Ame�icen Asian
White (Non•Hispanic OriQin)_ Black (Non-Hispanic OriQin) • Hispanic_
C. A' Femele Head of Household_
IF THIS IS A HOUSING RELATEO ACTIVITY, PLEASE PROVI�E TNE FOILOWING:
D. � Eldetly Households(F]aay=A�oi.rLo{d.r6ae.c ka�c one m�mber i�w«60 yeu+oN)
E. A� Disebled Households
F. X Small Families(t-�)
G. �1 Larpe Femiliea(S+Pt,�oe.)
I hereby certify the ebove to be true end correct, to the best of my knowledee.
(Sipnatu�e) (Date)
ype or nnte ame (Title)
PROJ\CDBG\EXH-D.94