HomeMy WebLinkAboutReso 93-286 - Approve the agreement between COR, Catholic Charities, Inc., and North Valley Catholic Social Services for supportive housing facility site acquisition .i
*RESOLUTION NO. 93-286
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'i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE AGREEMENT
BETWEEN THE CITY OF REDDING, CATHOLIC CHARITIES, INC., AND
NORTHERN VALLEY CATHOLIC SOCIAL SERVICE FOR SUPPORTIVE HOUSING FACILITY SITE
ACQUISITION, AND AUTHORIZING THE MAYOR TO SIGN SAME.
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BE/T 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, Catholic Charities, Inc., and Northern Valley Catholic Social Service, providing for
i funds to acquire a site for a Supportive Service Facility for developmentally disabled adults of the
City of Redding.
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2. The Mayor 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 Mayor and to impress the official seal of the City of Redding
on the aforesaid documents, when appropriate.
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3. A true copy of the Agreement referred to herein is attached hereto and made a part
hereof.
/ HEREBY CERT/FY that the foregoing resolution was introduced and read at a regular
meeting of the City Council of the City of Redding on the 20th day of July, 1993, and was duly
adopted at said meeting by the following vote:
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AYES: COUNCIL MEMBERS: Anderson, Dahl, Kehoe, Moss and Arness
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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CARL ARNESS, Mayor
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ATTEST:
CONNIE STROHMAYER, City lerk
FORM APPROVED:
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RA DALL A. HAYS, pity Attorney
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AGREEMENT BETWEEN CITY OF REDDING AND CATHOLIC CHARITIES, INC.
THIS AGREEMENT, made and entered into this day of_,1993 by and
between the CITY OF REDDING, a municipal corporation (hereinafter referred to as "CITY")
and CATHOLIC CHARITIES, INC., a California Non-Profit Public Benefit Corporation
(hereinafter referred to as CCI).
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WITNESSETH:
WHEREAS, CITY has entered into a grant agreement with the Department of
;j Housing and Urban Development (hereinafter referred to as HUD) to carry out the Community
Development Block Grant (hereinafter referred to as CDBG) program with CITY; and
WHEREAS, CCI is a non-profit corporation organized under the laws of the State
of California and qualifying for Federal Tax Exempt Status; and
WHEREAS, NORTHERN VALLEY CATHOLIC SOCIAL SERVICE, (hereinafter
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referred to as "NVCSS") is a member organization of CCI; and
j� WHEREAS, CITY has allocated CDBG funds to NVCSS for the specific purposes
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WHEREAS, said funds are provided to CITY through the CDBG Program of
HUD; and
WHEREAS, to facilitate the provision of affordable low-income rental housing,
CITY has allocated said funds to NVCSS for the soleose ur of assisting NVCSS in the
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li acquisition of a site to be developed with approximately sixteen (16) units of residential
housing affordable to very low-income households; and
WHEREAS, in consideration of such a loan and in accordance with the terms
and conditions thereof, CITY and NVCSS now desire to enter into this Agreement setting forth
certain covenants, conditions, and restrictions regarding the manner in which NVCSS will hold
and use the NVCSS housing project;
NOW, THEREFORE, in consideration of the recitals and the mutual obligations
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of the parties as herein expressed, the parties hereto agree as follows:
I. ...............................................M. . > S" Q U,N,00 Use of CITY's funds allocated hereunder to NVCSS
shall be subject to the following terms and conditions:
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j� AGREEMENT BETWEEN CITY AND CCI Page 2
it A. CITY agrees to lend to NVCSS an amount not-to-exceed Fifty-five Thousand Four-
Hundred Thirty and no/100 Dollars ($55,430), at three percent (3%) per annum
simple interest for the first seven years and five percent (5%) per annum simple
interest thereafter until the loan is paid in full. The City loan will be used for the
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it purposes set forth in Section I.B of this Agreement and Exhibit "A," Scope of
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Services, attached hereto and made a part hereof.
B. NVCSS shall use the funds provided pursuant to this Agreement to finance the
purchase of property located at 580 Wilshire Drive, Redding, California
(AP# 070-280-35), as depicted in Exhibit "B," attached hereto and made a part
I hereof, for the purpose of developing approximately sixteen (16) rental units of
housing affordable to very low-income households. Said units shall be occupied in
accordance with affordability restrictions set forth in Section V of this Agreement.
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II. .L.0 N'1"ERMS;AND;COND.ITIONS
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A. In consideration of the CITY loan, CCI and NVCSS shall execute a Residual Receipt
Note. During the term of the loan, payments of principal and interest shall only be
j+ required from residual receipts generated by the project. "Residual receipts" shall
be defined as surplus cash remaining after payments on all reasonable expenses
necessary to operate and maintain the project in habitable condition, debt service,
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taxes, and reasonable reserves. Determination of the residual receipts generated
by the property shall be made by NVCSS on or before August first of each year,
subject to review and audit by CITY of all relevant project income and operating
data and any other supporting documentation requested by CITY. Any payments
made to CITY must be approved in advance by the regional office of HUD, pursuant
to 24 CFR Part 890 regulating the HUD Section 811 Program.
B. NVCSS will execute a Deed of Trust on the property naming CITY as beneficiary.
Said Deed of Trust shall expressly name this Agreement and the Note as the obliga-
tion secured thereby. This transaction shall be completed through an escrow to be
established with First American Title Insurance Company (hereinafter referred to as
the "Escrow Agent") located at 1600 West Street, Redding, California. Each of the
!� parties shall execute and deliver to the Escrow Agent written instructions consistent
with the terms of this Agreement. CITY's Escrow instructions shall provide that:
1 . Escrow Agent shall record the Deed of Trust in the Shasta County Recorder's
Office pursuant to the escrow instructions of CITY, CCI and NVCSS.
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AGREEMENT BETWEEN CITY AND CCI Page 3
i 2. After recordation of the Deed of Trust, Escrow Agent shall issue a CLTA policy
j of Mortgage Title in the amount of the Note. Said Policy shall show title to the
II property vested in CCI and insure CITY as beneficiary.
3. Upon obtaining the HUD Section 811 financing, CITY loan shall be subordinated
to the HUD loan.
4. CITY loan shall not be subordinate to any other security document recorded on
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the property, other than the HUD loan.
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B. NVCSS shall provide CITY with a corporate resolution authorizing the execution of
this Agreement.
C. NVCSS shall be responsible for all sums necessary to purchase said property in
i excess of CITY loan.
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D. Disbursement of CITY loan funds is contingent upon NVCSS securing adequate
financing to complete the purchase of said property. Proof of such financing shall
be submitted in writing to CITY prior to disbursement of CITY funds. NVCSS will
I submit to CITY the following documents: (1) A true copy of said appraisal;
(2) statement detailing cost of performing appraisal; and -(3) statement of closing
costs from Escrow Agent. Upon receiving such documents, within fourteen (14)
II days thereafter, CITY will release its funds to the Escrow Agent in the form of a
CITY check payable to Escrow Agent.
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E. CITY loan will remain in effect as long as NVCSS continues to operate the facility
j as outlined in Exhibit "A" Scope of Services, or for other housing purposes which
'I are eligible under the CDBG Entitlement Grant regulations and acceptible to CITY.
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F. The full amount of the loan will be immediately due and payable if either of the
�i following occur:
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1 . The title to the property is transferred by sale.
2. NVCSS fails to utilize the property for the purpose of this Agreement.
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AGREEMENT BETWEEN CITY AND CCI Page 4
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`E I tlI. T1.0.t REEMENT.
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This Agreement shall be in force for a period of thirty years, or for the period of time
it that the Deed of Trust securing CITY loan is a lien on the property, whichever is longer.
In the event CCI or NVCSS violates the provisions of this Agreement for any reason
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other than occurrence of circumstances over which it can exercise no effective control
and such violation shall not be cured or remedied within ninety (90) days after notice
thereof by CITY, CITY shall be entitled to specifically enforce the covenants and
conditions of this Agreement in an action filed in any court of competent jurisdiction.
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IV TRAI $Fr=A OF PROPr:RT1
Neither CCI nor NVCSS shall cause or permit any sale, assignment, conveyance, lease
or transfer in any other form of or with respect to this Agreement, or the property
subject to this Agreement, or any part thereof or any interest therein, or contract, or
' agree to do any of the same, without the prior written approval of CITY. Any sale,
assignment, conveyance, lease,or transfer without CITY's written consent constitutes
a material breach of this Agreement.
MIT Sj::RICTIONS.4.
A. NVCSS represents and agrees that the affordability restrictions of this Section will
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remain in full force and effect for the Term of this Agreement.
j B. Sixteen units developed on the property during the term of this Agreement shall be
occupied by very low-income households. For purposes of this Agreement very
low-income is defined as follows: Household gross annual income from all sources
may not exceed fifty percent (50%) of the area median income further adjusted by
family size, as most recently published by the U.S. Department of Housing and
Urban Development (HUD).
C. NVCSS agrees to maintain the rents for sixteen units at affordable levels for very
low-income households, for the term of this Agreement. For the purpose of this
Agreement, affordable rents shall mean an amount paid for rent, utilities, and
related services by the tenant(s) not in excess of thirty percent (30%) of the
adjusted gross income of the tenant(s). Such determination shall be made at the
time of initial occupancy by the tenant(s).
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',I AGREEMENT BETWEEN CITY AND CCI Page 5
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A. "Program Income" is defined as gross income earned by NVCSS from the low-
income housing development supported by CDBG funds. The revenue earned from
the operation of the low-income housing development which will be considered
Program Income will be in direct proportion to the amount of funds that were
contributed to the low-income housing development from the CDBG program. Rules
on Program Income are established in the Consolidated Community Development
Block Grant Regulations (24 CFR Part 570), OMB Circular No A-21 , and OMB
Circular No A-1 10.
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B. NVCSS agrees that all Program Income from whatever source shall be used by
NVCSS is compliance with both the purposes and ojective delared by HUD.
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C. Program Income may be retained by NVCSS and used for those activities as set out
in Exhibit "A."
�f D. Program Income on hand at the time of expiration of this Agreement must be
returned to CITY along with any accounts receivable attributable to the use of
CDBG funds.
J E. If NVCSS disposes of the property subject to this Agreement, NVCSS shall pay in
full the loan amount plus accrued interest.
VII. Ht7AM > $ 1=.
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A. In providing its services, NVCSS will act as an independent contractor and no
officer or employee of NVCSS will be deemed a CITY officer or employee for any
purpose.
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li B. CCI and NVCSS shall hold CITY, its officers, boards and commissions and members
ii thereof, its employees and agents harmless of and free from any and all liabilities
which might arise out of or are related to acts of omissions of CCI or NVCSS in any
way relating to the subject matter of this Agreement.
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C. CITY shall hold CCI and NVCSS, its officers, boards and commissions, and
members thereof, its employees or agents, harmless of and free from any and all
j� liabilities which arise out of or are related to the acts or omissions of CITY in any
way relating to the subject matter of this Agreement.
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AGREEMENT BETWEEN CITY AND CCI Page 6
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j D. CCI and NVCSS shall indemnify CITY, its officers, boards and commissions, and all
members thereof, its employees and agents, from any judgment rendered against
them or any sums paid out in settlement, or otherwise arising out of any act or
omission of NVCSS in any way relating to the subject of this Agreement.
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E. CITY shall indemnify CCI and NVCSS, its officers, boards and commissions, and all
ij members thereof, its employees and agents, from any judgment rendered against
them or any sums paid out in settlement, or otherwise arising out of any act or
omission of CITY in any way relating to the subject of this Agreement.
VIII C01VIPLIi4C StUITN LAWSy
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A. NVCSS shall comply at all times during the term of this Agreement with all
applicable laws and requirements, including any applicable Federal, State or City
regulations, and shall secure at its full cost and expense any and all permits,
applications or other requirements in connection therewith.
it B. NVCSS covenants that there will be no discrimination against or segregation of any
person or groups of persons on account of race, color, national origin, age, sex,
,i creed, religion, physical handicap, pregnancy, parenthood, or marital status in the
lease, sublease, use, occupancy, or enjoyment of the units subject to this
Agreement.
C. NVCSS shall comply with the requirements of Title 24, Part 135, Employment
j Opportunities for Businesses and Lower-Income Persons in Connection with
Assisted Project.
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D. NVCSS shall comply with the requirements and standards of OMB Circular
!� No. A-122, A-1 10, and A-21 , including all stated restrictions on the use of
appropriated funds for lobbying purposes in connection with a specific contract,
grant, or loan. To this effect, NVCSS further agrees to execute Exhibit "C," Anti-
Lobbying Certification, attached hereto.
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E. NVCSS will comply with the requirements of Section 504 of the Rehabilitation Act
of 1973 as amended by 29 USC 794.
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F. 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 BETWEEN CITY AND CCI Page 7
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Ir G. 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
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Agreement.
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H. 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
it 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.
I. In addition to, and not in substitution for, other provisions of this Agreement
regarding the provision of public services with CDBG funds, pursuant to Title I of
li the Housing and Community Development Act of 1974, as amended, NVCSS:
1 . Represents that it is, or may be deemed to be, a religious or denominational
institution or organization or an organization operated for religious purposes
which is supervised or controlled by or in connection with a religious or
denominational institution or organization;
j 2. Agrees that, in connection with such public services, it will not discriminate
against any employee or applicant for employment on the basis of religion
and will not limit employment or give preference in employment to persons
on the basis of religion; nor, will it discriminate against any person applying
itfor such public services on the basis of religion.
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A. NVCSS shall purchase and maintain comprehensive general liability insurance for
bodily injury and property damage in an amount of not les's than $1,000,000
,j combined single limits throughout the term of this Agreement.
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AGREEMENT BETWEEN CITY AND CCI Page 8
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B. NVCSS shall further obtain and maintain in full force and effect throughout the term
'I of this Agreement, while used by NVCSS, insurance policies to protect against
ii financial loss by reason of destruction or damage of the facility by fire or other
'I hazards naming CITY, its officers, agents, and employees as additional insureds.
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C. NVCSS shall provide evidence annually that real estate taxes and assessments are
paid on time.
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D. NVCSS shall promptly notify CITY if any default in payment takes place which
j affects title or ownership of the property.
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ENTIRE,AC�REMEITf AMENDINE)11TS
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This Agreement sets forth the entire understanding of the parties hereto in the matters
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set forth herein. Moreover, this Agreement may be modified or amended only in
writing duly authorized and executed by CITY, CCI and NVCSS.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date and year first set out above.
ATTEST: CITY OF REDDING
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By: By:
CONNIE STROHMAYER, City Clerk CARL ARNESS, Mayor
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FORM APPROVED: CATHOLIC CHARITIES, INC.
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RANDALL A. HAYS, City Attorney t By:
JOSEPH C. LAHARTY, M.S.W.,
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Executive Director
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(I NORTHERN VALLEY CATHOLIC SOCIAL
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SERVICE
By:
PATRICIA MODRZEJEWSKI
Executive Director
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D:\D1\wilshire.cd
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EXHIBIT "A"
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Scone of Work
The Scope of Work under this Activity shall consist of construction of a sixteen-unit housing
facility for the purpose of providing very low-income developmentally disabled households
affordable rental housing. The project will address the needs of those developmentally
disabled persons who have the ability to live independently with a small amount of supportive
services. This development will provide adequate affordable housing for many
developmentally disabled individuals who are now institutionalized or living in supervised care
facilities.
Community Development Block Grant funds will be utilized to assist in the acquisition of the
land on which the facility will be constructed.
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The housing project will provide supportive services that address the residents individual
needs, provide optimal independent living, and provide access to the community and provide
opportunities for job training and employment services.
The development of this project will provide opportunities for independent living in a clustered,
nurturing atmosphere. It will allow the supportive services to be provided in a cost effective
manner because those needing the services will be at the same location.
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NVCSS anticipates serving a minimum of 16 developmentally disabled households. Assuming
an average two year stay, it is estimated that 240 families and individuals would benefit over
I� thirty years.
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EXHIBIT "C"
ANTI-LOBBYING CERTIFICATION
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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, grant, 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 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 this Federal contract, grant, loan, or
cooperative agreement,the undersigned shall complete and submit Standard Form-LLL,
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"Disclosure Form to Report Lobbying," in accordance with its instructions.
3. The undersigned shall require that the language of this certification be included in the
award documents for all subawards at all tiers (including subcontracts, 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
II than $10,000 and not more than $100,000 for each such failure.
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DATE: SIGNATURE:
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