HomeMy WebLinkAboutReso 93-323 - Approve the agreement between the COR & Shasta Housing Dev Corp for Senior Housing Facility Pre-Development Cost {
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE AGREEMENT
BETWEEN THE CITY OF REDDING AND THE SHASTA HOUSING DEVELOPMENT CORPORATION
i FOR SENIOR HOUSING FACILITY PRE-DEVELOPMENT COSTS,
AND AUTHORIZING THE CITY MANAGER TO SIGN SAME.
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 and Shasta Housing Development Corporation providing for funds for pre-
development costs related to a Supportive Service Facility for very low-income elderly individuals of
the City of Redding.
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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.
/ 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 7th day of September 1993 and was duly
adopted at said meeting by the following vote:
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
j ATTEST:
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CONNIE STROHMAYER, Citxffied
FORM APPROVED:
RA ALL A. HAYS, Cify Attorney �j
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AGREEMENT BETWEEN CITY OF REDDING AND
SHASTA HOUSING DEVELOPMENT CORPORATION
THIS AGREEMENT, made and entered into thisday of ,1993 by and
between the CITY OF REDDING, a municipal corporation (hereinafter referred to as "CITY")
and SHASTA HOUSING DEVELOPMENT CORPORATION,a California Non-Profit Public Benefit
Corporation (hereinafter referred to as SHDC).
WITNESSETH:
WHEREAS, CITY has entered into a grant agreement with the Department of
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, SHDC is a non-profit corporation organized under the laws of the
State of California and qualifying for Federal Tax Exempt Status; and
WHEREAS, CITY has allocated CDBG funds to SHDC for the specific purposes
set forth herein; and
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 SHDC for the sole purpose of assisting SHDC with the pre-
development costs of residential housing, which will provide affordable housing units to very
low-income households; and .
WHEREAS, in consideration of such a loan and in accordance with the terms
and conditions thereof, CITY and SHDC now desire to enter into this Agreement setting forth
certain covenants, conditions, and restrictions regarding the manner in which SHDC will hold
j and use the SHDC housing project;
NOW, THEREFORE, in consideration of the recitals and the mutual obligations
of the parties as herein expressed, the parties hereto agree as follows:
Use of CITY's funds allocated hereunder to SHDC
shall be subject to the following terms and conditions:
A. CITY agrees to lend to SHDC an amount not-to-exceed Sixty Thousand Eight-
Hundred Sixty and no/100 Dollars ($60,860), at three percent (3%) per annum
simple interest for the first seven years and five percent (5%) per annum simple
interest thereafter until the loan is paid in full. The City loan will be used for the
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'! AGREEMENT BETWEEN CITY AND SHDC Page 2
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purposes set forth in Section I.B of this Agreement and Exhibit "A," Scope of
Services, attached hereto and made a part hereof.
B. SHDC shall use the funds provided pursuant to this Agreement to finance the pre-
development costs for a purpose of developing approximately seventy-nine (79)
rental units of housing affordable to very low-income households. Said units shall
be occupied in accordance with affordability restrictions set forth in Section V of
this Agreement.
1111$ LAI11O CON011 IONS
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A. In consideration of the CITY loan, SHDC shall execute a Residual Receipt Note.
During the term of the loan, payments of principal and interest shall only be 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, taxes, and
' reasonable reserves. Determination of the residual receipts generated by the
property shall be made by SHDC on or before August thirty-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 889 regulating the HUD Section 202 Program.
B. SHDC 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 Chicago Title Insurance Company (hereinafter referred to as the
"Escrow Agent") located at 1647 Court 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 and SHDC.
2. After recordation of the Deed of Trust, Escrow Agent shall issue a CLTA policy
of Mortgage Title in the amount of the Note. Said Policy shall show title to the
property vested in SHDC and insure CITY as beneficiary.
3. Upon obtaining the HUD Section 202 financing, CITY loan shall be subordinated
to the HUD loan.
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AGREEMENT BETWEEN CITY AND SHDC Page 3
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4. CITY loan shall not be subordinate to any other security document recorded on
the property, other than the HUD loan.
C. SHDC shall provide CITY with a corporate resolution authorizing the execution of
this Agreement.
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;I D. SHDC shall be responsible for all sums necessary to develop said property in excess
of CITY loan.
E. CITY loan will remain in effect as long as SHDC continues to operate the facility as
outlined in Exhibit "A" Scope of Services, or for other housing purposes which are
eligible under the CDBG Entitlement Grant regulations and acceptable to CITY.
F. The full amount of the loan will be immediately due and payable if either of the
following occur:
1. The title to the property is transferred by sale.
2. SHDC fails to utilize the property for the purpose of this Agreement.
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This Agreement shall be in force for a period of forty years, or for the period of time
that the Deed of Trust securing CITY loan is a lien on the property, whichever is longer.
In the event SHDC violates the provisions of this Agreement for any reason 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.
IV. ' +
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Neither SHDC 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.
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AGREEMENT BETWEEN CITY AND SHDC Page 4
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i V. �.lT IESTRIOTIONS
A. SHDC represents and agrees that the affordability restrictions of this Section will
remain in full force and effect for the Term of this Agreement.
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B. Seventy-nine 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 recent)
� y y published by the U.S. Department of
Housing and Urban Development (HUD).
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C. SHDC agrees to maintain the rents for 79 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).
VI-
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A. "Program Income" is defined as gross income earned by SHDC 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-
110.
B. SHDC agrees that all Program Income from whatever source shall be used by SHDC
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is compliance with both the purposes and objective declared by HUD.
C. Program Income may be retained by SHDC and used for those activities as set out
j in Exhibit "A."
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.
E. If SHDC disposes of the property subject to this Agreement, SHDC shall pay in full
the loan amount plus accrued interest.
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AGREEMENT BETWEEN CITY AND SHDC Page 5
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VII. IE I H RRMEES t rA J3E
A. In providing its services, SHDC will act as an independent contractor and no officer
or employee of SHDC will be deemed a CITY officer or employee for any purpose.
B. SHDC shall hold 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 acts of omissions of SHDC in any way relating
to the subject matter of this Agreement.
C. CITY shall hold SHDC, its officers, boards and commissions, and members thereof,
its employees or agents, harmless of and free,from any and all 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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D. SHDC 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
SHDC in any way relating to the subject of this Agreement.
E. CITY shall indemnify SHDC, 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 CITY
in any way relating to the subject of this Agreement.
V1101.
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A. SHDC 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.
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B. SHDC covenants that there will be no discrimination against or segregation of any
person or groups of persons on account of race, color, national origin, sex, 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. SHDC shall comply with the requirements of Title 24, Part 135, Employment
Opportunities for Businesses and Lower-Income Persons in Connection with
Assisted Project.
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AGREEMENT BETWEEN CITY AND SHDC . Page g
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D. SHDC 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, SHDC further agrees to execute Exhibit "C," Anti-
Lobbying Certification, attached hereto.
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E. SHDC will comply with the requirements of Section 504 of the Rehabilitation Act
of 1973 as amended by 29 USC 794.
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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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
j 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.
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
HUD regulations with respect thereto; provided, however, that reasonable fees or
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bona fide technical,consultant, managerial or other such services other than actual
solicitation, are not hereby prohibited if otherwise eligible as program costs.
A. SHDC shall purchase and maintain comprehensive general liability insurance for
bodily injury and property damage in an amount of not less than $1,000,000
combined single limits throughout the term of this Agreement.
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} B. SHDC shall further obtain and maintain in full force and effect throughout the term
i of this Agreement, while used by SHDC, insurance policies to protect against
financial loss by reason of destruction or damage of the facility by fire or other
hazards naming CITY, its officers, agents, and employees as additional insurers.
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AGREEMENT BETWEEN CITY AND SHDC Page 7
C. SHDC shall provide evidence annually that real estate taxes and assessments are
paid on time.
D. SHDC shall promptly notify CITY if any default in payment takes place which
affects title or ownership of the property.
R. :...:. SR W. AWROMEIN'�°S
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This Agreement sets forth the entire understanding of the parties hereto in the matters
set forth herein. Moreover, this Agreement may be modified or amended only in
writing duly authorized and executed by CITY and SHDC.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date and year first set out above.
ATTEST: CITY OF REDDING
By: By:
CONNIE STROHMAYER, City Clerk ROBERT A. CHRISTOFFERSON, City Manager
FORM APPROVED: SHASTA HOUSING DEVELOPMENT CORPORATION
RANDALL A. HAYS, City Attorney MARIE RITUCCI, Executive Director
D:\CD\SHDC2.AGM
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EXHIBIT "A"
Scope of Work
The Scope of Work under this activity shall consist of construction of a seventy-nine unit
housing facility for the purpose of providing very low-income households affordable rental
housing. The project will address the needs of those seniors persons who have the ability
to live independently with a small amount of supportive services. This development will
provide adequate affordable housing for many seniors who currently are living in units not
suitable for those with physical disorders that require the use of wheelchairs and walkers.
Community Development Block Grant funds will be utilized to assists SHDC with such
pre-development costs as: the appraisal, architectural fees and legal fees, engineering
costs, City fees, Escrow fees and option fees, carrying charges for capital investment.
The housing project will provide supportive services that address the residents individual
needs such as: food, transportation, medical and legal aid to residents who are unable to
obtain these services independently.
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EXHIBIT "B"
ANTI-LOBBYING CERTIFICATION
The undersigned certifies to the best of his or her knowledge and belief, h
9 g , that:
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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
ior 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, "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 than $10,000 and not more than $100,000 for each such failure.
DATE: %3 SIGNATURE: �.ti,
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