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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 � ' �' • � 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 � �' l DAVID . EOR , ay� ATTEST: City of Redding CONNIE ST OHMAYE i Clerk � � FORM APPROVED: � � � �� ��1✓ - L.�'7,r��f��� r.�<. W. LEONARD WINGA ity Attorney . : .. ::::::... ..:: :: .: : .:: ............. .... ..: .. proj\cdbgUesos.cc ...... ._._._.. .. ... ......... ' ' • • 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. . . . � 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. ' ' • � 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. ' ' � • 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 �� � �� � i i 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. ' ' • • 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. ' • . 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 ' ' � • 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. ' ' � • 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. ...... ....... :.,. .: ::_�,:::, . ; , . , ._ PROJICDBG\EXH.B :';; • ' � .. , ' • • 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: -, PROJ\CDBG\EXH.E . . '. � • • � 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