Loading...
HomeMy WebLinkAboutReso. 1989-101 - Authorizing the execution of a standard agreement and other documents to secure a commitment of funds . I III . RESOLUTION NO.ff7/', A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING THE EXECUTION OF A STANDARD AGREEMENT AND OTHER DOCUMENTS TO SECURE A COMMITMENT OF FUNDS FROM THE DEFERRED PAYMENT REHABILITATION LOAN PROGRAM OF THE STATE OF ;' CALIFORNIA. ji WHEREAS, the State of California Department of Housing II ' , and Community Development is authorized to provide funds for the f rehabilitation of housing in designated areas, and II WHEREAS, the City of Redding as a local public agency organized under the statutes of the State of California, is eligible to receive said funds and has applied to the State for a commitment of said funds, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Redding approves the Standard Agreement with the State to accept a commitment in the total amount not to exceed $200,000 . 00, for purposes of lending deferred payment loans for housing rehabilitation, subject to the terms of said agreement and to the rules and regulations governing the use of said funds. BE IT FURTHER RESOLVED that the City of Redding shall enter into appropriate documents with the State, and that the City Manager is hereby authorized to execute said Standard Agreement on behalf of the City of Redding, and any other documents required to consummate this transaction. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of -- 1 N, • 4 XI I * • s the City of Redding on the 4th day of April , 1989, and was duly adopted at said meeting by the following vote: AYES: COUNCILMEMBER: Buffum, Carter, Fulton and Johannessen NOES: COUNCILMEMBER: None ABSENT: COUNCILMEMBER: Dahl ABSTAIN: COUNCILMEMBER: None •1 f %%% ,c/ / (-4;44;r 'I K. //,MAURICtE'. JOHANNESSEN, Mayor City c5'f Redding ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: R, tDALL A. HAYS, Ci Attorney • � I t ' - 2 - STATE ")F CALIFORNIA CONTRACT NUMBER AM. NO. ❑ CONTRACTOR STANDARD AGREEMENT A VEDNEY GENERBY THEAL 88-HRL-292 ❑ STATE AGENCY' A� CONTRACTOR'S STATE I. . UMBER El DEPT. OF GEN. SER. .STD.2(REV.wee) ❑ CONTROLLER THIS AGREEMENT, made and entered into this 6th day of February , 19 8.9, ❑ in the State of California, by and between State of California, through its duly elected or appointed, ❑ qualified and acting TITLE OF OFFICER ACTING FOR STATE AGENCY Department of -- - - Director Housing and Community Development hereafter called the State, and City of Redding hereafter called the Contractor: WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State hereinafter expressed, does hereby agree to furnish to the State services and materials, as follows: (Set forth service to be rendered by Contractor,amount to be paid Contractor,time for performance or completion,and attach plans and specifications,if any.) a. Pursuant to the criteria for eligibility and for the purposes authorized by Sections �. 50660-50670 of the California Health and Safety Code and the regulations published there- .I. I' under (at 25 Cal . Admin. C. Sections 7400-7436) , the Contractor has submitted to the State L it a Deferred Payment Rehabilitation Loan Program (DPRLP) application dated January 4, 1989, ' for program participation and a subsequent funding commitment, which is hereby incorporated by reference as if set forth in full. b. The State has approved the Contractor's eligibility for participation in the DPRLP and . I , has decided to enter into this Agreement with the Contractor according to the conditions hereinafter expressed. All references to the "Fund" shall refer to the Housing Rehabilitation Loan Fund of the Department of Housing and Community Development. This Agreement incorp- orates and is subject to the laws and regulations cited above. '11 ti 11, 1' CONTINUED ON LZ SHEETS, EACH BEARING NAME OF CONTRACTOR AND CONTRACT NUMBER. i, The provisions on the reverse side hereof constitute a part of this agreement. {' IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date first above written. If'! STATE OF CALIFORNIA CONTRACTOR � f AGENCY CONTRACTOR (IF OTHER THAN AN INDIVIDUAL STATE WHETHER A CORPORATION. PARTNERSHIP, ETC.) Department of Houisng and Community Development City of Redding BY (AUTHORIZED SIGNATURE) BY(AUTHORIZED SIGNATURE) IX X ! ! PRINTED NAME OF PERSON SIGNING PRINTED NAME AND TITLE OF PERSON SIGNING TITLE ADDRESS rhi Pf Arlmi ntF'ti np Division 760 parkview Avonue, RPridi ng ('A a6ff l-'?SAG AMOUNT ENCUMBERED BY PROGRAM/CATEGORY(CODE AND TITLE, FUND TITLE 11 THIS DOCUMENT Department of General Services $ ?(l Community Affairs (OPTIONAL USE) 929 HRI FUND Use Only -O- PRIOR AMOUNT ENCUMBERED 2500/21612 FOR THIS CONTRACT 1 -0- ITEM 2240-651-929 CHAPTER STATUTE FISCAL YEAR TOTAL AMOUNT ENCUMBERED 50400.5 H&S Code 1688 1984 1988/89 TO DATE OBJECT OF EXPENDITURE(CODE AND TITLE) , Local Assistance - Loans - 664731 I hereby certify upon my own personal knowledge that budgeted funds are T.B.A. No. B.R. NO. available for the period and purpose of the expenditure stated above. SIGNATURE OF ACCOUNTING OFFICER DATE X 88 49089 • • Contractor: City of Redding Contract No. 88-HRL-292 Page 3 of 18 8. PURPOSE The contractor agrees to expend all funds disbursed pursuant to this agreement only for the purposes and in the amounts that are set forth in all subsequent amendments and to the extent they have been approved by the State. Contractor further agrees to solicit and approve local borrowers in accordance with the laws and regulations governing this program. 9. AMOUNT AND DISBURSEMENT SCHEDULE a. Upon receipt of a certified resolution authorizing this agreement and the proper execution of the appropriate security instruments and other documents required by the State, the State agrees to disburse to the contractor or its authorized agent funds not to exceed a maximum of $200,000, subject to fund availability and approval of individual loan applications. b. The State further agrees to disburse said funds only for the approved purposes stated in Item I of Attachment A. c. Funds will be encumbered and disbursed in accordance with the following procedure: (i) Loan packages are accepted on a first come-first served basis. Notification of receipt will be sent to the Contractor after initial staff assessment of the loan package. Any deficiencies in the loan package will be noted. (ii) Loan applications found to be eligible and substantially complete will have the requested funds reserved for a maximum of 30 calendar days from the date on the contractor notification letter. Contractor will have 30 calendar days to submit all loan documentation required, as noted in the contractor notification letter. (iii) If the loan package is fully completed within the 30 day period, the approved loan amount will be encumbered. The Request for Funds and the Amendment to this Agreement reflecting the encumbered amount will be executed and funds disbursed. • Contractor: City of Redding Contract No. 88-HRL-292 ' Page 4 of 18 (iv) If the loan package is still incomplete or deficient after the 30-day period has expired, the loan fund reservation will expire. Contractor will be notified in writing by Department of expiration of fund reservation. The loan file will be inactivated by the Department. If, after expiration, the Contractor submits all required loan documentation needed for loan approval, the loan funds will be reserved for an additional 30-day period if there are unreserved funds available. If there are no funds available at the time the needed documentation is submitted, the funds cannot be reserved until additional funds become available. (v) Separate loan balances will be maintained for rental projects, and for owner-occupant loans. (vi) Department will notify contractor on a regular basis of available fund balances. When available funds from each category are expended, Department will notify Contractor and may refuse to accept further loan applications. 10. TERM The effective date of this agreement is the date of execution by the State. This agreement shall terminate whichever is sooner, either: a. Thirty (30) years after its effective date;. or b. Two (2) years after the end of the full loan term, including extensions, if any, for the loan to the borrower made pursuant to this agreement with the latest due date. Notwithstanding the above, this agreement shall be extended foradditional increments of not more than 60 months to the extent that loans to owner-occupants remain outstanding. I i .. • Contractor: City of Redding Contract No. 88-HRL-292 Page 5 of 18 11. PROMISSORY NOTE AND SECURITY a. The contractor agrees to execute an agreement to assign deeds of trust, promissory note and loan agreement, on a form approved by the State, for loans made pursuant to this agreement. b. Prior to lending funds received pursuant to this agreement, the contractor shall require the property owner to: (i) Execute a promissory note, at the appropriate rate of interest, and a loan agreement. Each document shall be in a form determined or approved by the State. (ii) Execute a deed of trust or other security instrument approved by the State to secure said note, which h shall be specifically assignable to the State. (iii) Obtain, at the expense of the property owner or contractor on loans to borrowers of $5,000 or more, a Preliminary Title Report or acceptable alternative and a standard CLTA Title insurance policy for the secured property, insuring the State's interest in said property. For loans under $5,000, a Preliminary Title Report or acceptable alternative shall be obtained for said property at the expense of the property owner or contractor. c. Prior to lending funds received pursuant to this agreement, the contractor shall for each loan: (i) Ensure that all required documents are properly completed and executed; and the Deed of Trust, Notice of Default and Sale, and Memorandum of Rehabilitation Loan Agreement for Rentals are recorded; (ii) Ensure that the combined value of existing encumbrances and the cost of rehabilitation and related expenditures shall not exceed 90 percent of the anticipated post-rehabilitation value of the residential structure. An appraisal on the property shall be prepared by a qualified appraiser and at a minimum shall contain values of at least three comparable properties. No appraisal is necessary where the existing and proposed encumbrances do not exceed 50 percent of tax assessor's market value. Contractor shall provide adequate documentation of tax assessment information to the State; and 11 Contractor: City of Redding Contract No. 88-HRL-292 �I! Page 6 of 18 � f (iii) Provide a Truth-In-Lending Disclosure Statement to borrower, where required..by federal law. ,II 12. PROTECTION OF SECURITY h In addition to the purposes set forth in Section 8 above, contractor is authorized to utilize funds committed by this agreement and all subsequent amendments which have not been loaned to borrowers to protect the security interest of the State I ' 1 and/or the contractor with respect to loans previously made by the contractor under this program. Such use of funds may include the reinstatement or payment of defaulted obligations of borrowers under secured loans or liens senior in priority to the loan made under this program, including all payments necessary to avoid foreclosure sale, orthe purchase of the secured property where such is necessary to protect the interest of the State and/or the contractor. IJ Y The use of funds authorized by this sectionis subject to the following terms and conditions: a. All payments or use of funds under this section are subject to the control and prior, written approval of the State at its sole discretion. Contractor agrees to abide by all directions of the State with respect to funds utilized pursuant to this section. !N b. There must be on file a notice of default on a lien or loan, secured by the property improved by funds from this program, having priority to the loan made under this program. I 1. c. Contractor shall, at its discretion, make reasonable efforts including notices, advice and counseling to the borrower and discussions with lenders, to attempt to have the borrower reinstate the defaulted loan or make other satisfactory arrangements with lenders, prior to the use of funds authorized by this section. d. Contractor shall submit to the State all records or documents requested by the State in connection with the defaulted loan. { e. Upon payment or reinstatement of defaulted obligations of the borrower as provided herein, the contractor shall comply with instructions from the State with respect to the filing of a notice of default under the note and deed of trust securing the loan made by contractor under this program and such further action as may be required to protect the interest of the State. • Contractor: City of Redding Contract No. 88-HRL-292 Page 7 of 18 f. Funds for use pursuant to this section shall be disbursed upon the presentation by contactor to the State of an invoice which shall include: (i ) The proposed use of funds. (i i ) The total amount requested. (iii ) The name and address of the payee of the funds or the beneficiary under the defaulted loan. (i v) Such other information as required by the State. g. With regard to properties acquired by contractor through foreclosure or bid at a foreclosure sale utilizing the funds authorized by this section, contractor shall, at the direction of the State within thirty (30) days after such acquisition, either convey such acquired property to the State or commence the sale of such property. Any such sale shall, to the extent feasible, ensure that sufficient funds are generated to repay all amounts expended pursuant to this section plus the original loan made under this program. The thirty-day time period may be extended with the approval of the State. The State, at its discretion, may also approve an alternate plan for the disposition of the property at the request of the contractor. 13. ACCOUNTS a. If requested by the State, the contractor agrees to deposit all funds received under this agreement and any amendments thereto in a segregated account in an institution with deposits insured by the Federal or the State government. b. The contractor further agrees to establish on its books a Deferred Payment Rehabilitation Loan Account which shall be maintained as long as the Fund Commitment obligation to the State remains unsatisfied. c. The contractor further agrees to maintain records that accurately and fully show the date, amount, purpose, and payee of all expenditures drawn on said account. All records shall be retained for three years after termination of the contract. d. The contractor further agrees to utilize a system by which all expenditures from said account will be authorized and documented. I • ' 1111 1111 Contractor: City of Redding Contract No. 88-HRL-292 Page 8 of 18 r e. The contractor further agrees to allow the State, on written request, to have reasonable access to and the right of inspecting all records that pertain to said account and agrees to submit to an independent audit, if this should be requested by the State, at the expense of the contractor. ' f. The contractor further agrees to adopt program. accounting procedures in order to ensure that contractor's disbursals are properly expended by or on behalf of the property owner including establishing on-site inspections of rehabilitation and repairs, using progress payments to owners and contractors, and incorporating other procedures commonly used by a reasonable and prudent lender. 14. REQUESTS FOR DISBURSALS OF FUNDS a. For each disbursal of funds from the State, the contractor shall submit, in duplicate and in a form determined by the State, a written Request for Disbursal and to attach to said request any documents required by the State. b. The contractor shall submit said request so as to be received by the State at least twenty (20) working days prior to the contractor's need for the funds. c. If the contractor is eligible to receive grant funds for administrative expenses, contractor shall utilize such funds only for the purposes permitted by 25 Cal. Administration Code Section 7415 and only in accordance with the annual i ; budget set forth in Item III of Attachment A. r d. Payment of the said grant shall be on an individual basis per approved loan. Amount of each grant shall not exceed the lesser of $1,000 or 15% of the approved owner-occupied project loan amount, or the lesser of $1,500 or 15% of the roved rental project loan amount. PP e. Payments made upon submission by contractor to the State of a Request for Administrative Grant Funds on a form provided by the State. Contractor shall make such reports on the use of Administrative Grant Funds as required by the State. 15. DISBURSALS � I a. The State agrees to provide disbursals based on requests from contractor, ., 1 on forms provided by the State. With each request, the Contractor shall certify that the funds requested shall be used only for the purposes 1 ; authorized by the statute, regulations, and the loan agreement. 1' • Contractor: City of Redding Contract No. 88-HRL-292 Page 9 of 18 b. The contractor shall provide disbursals to or on behalf of the borrower only to pay for activities which are proper pursuant to this agreement and the loan agreement with the borrower. 16. GENERAL TERMS OF USE OF FUNDS a. Contractor shall not lend more than $10,000 per dwelling unit repaired or rehabilitated, or $20,000 where there are eligible room additions in accordance with the State's regulations, or $5,000 per residential hotel room or $200,000 per housing development, subject to the above per unit limitations. Contractor may use its own funds or other funds, in addition to those from the Fund, if necessary to complete any rehabilitation or repair activity. The maximum deferred payment loan, plus other indebtedness • against the property, shall not exceed 90 percent of the anticipated after- rehabilitation value of the property, unless an exception is approved by an authorized state loan and grant committee. b. Loan funds shall be used only for actual approved rehabilitation and repair costs on each subject property and shall not be used for governmental administrative costs, overhead costs, costs of collection or foreclosure, or other non-rehabilitation or non-repair costs in accordance with the State regulations. c. To the extent feasible, funds from the Fund shall be used in conjunction with Federal, State, or other funds available for similar purposes. d. The contractor agrees to minimize the impact of physical rehabilitation activities on tenants in a subject property to the extent feasible. To the extent feasible and where necessary to minimize displacement of tenants, rehabilitation activities, for example, shall include phased repairs, temporary or permanent relocation, or other similar measures as required by Government Code Section 7265.3. e. The contractor agrees not to discriminate or permit discrimination on account of race, color, religion, ancestry, sex, age, national origin, marital status, and mental or physical handicap in accordance with local, State and Federal laws governing and restricting discrimination or requiring affirmative action. • Ii Il Contractor: City of Redding Contract No. 88-HRL-292 , Page 10 of 18 f. The contractor agrees not to discriminate in the use of funds from the Fund due, in whole or in part, to the considerations, characteristics, or trends in the neighborhood surrounding the property to be rehabilitated with funds from the Fund unless the contractor can demonstrate that such consideration in the particular case is required to avoid an unsafe and unsound business practice. The contractor also agrees to comply with applicable truth-in-lending disclosure requirements. g. Properties rehabilitated with loans pursuant to this agreement must be located in CHFA Concentrated Rehabilitation Areas designated pursuant to Section 51302 of the Health and Safety Code; a Marks- Foran rehabilitation area designated pursuant to the Health and Safety Code commencing with Section-37910; an..area in which CHFA has allocated funds pursuant to Section 51311 of the Health and Safety Code; a CHFA Mortgage Assistance Area (MAA), provided such area is located in a rural area; or, for low II income households only, areas in which contractor is undertaking a rehabilitation or code enforcement program for which Federal funds are, or will be, used in connection with funds from the Fund. h. No more than one loan of funds from the Fund shall be made for any one }44 residential unit. Loans from the contractor to the borrower shall bear simple interest at the W I rate of 3 percent per annum on the principal balance from the time of p'. disbursal by the contractor until repayment to the contractor. j. Loans to borrowers shall be for a term of five years or until sale or transfer of the property, whichever occurs first. Borrower may repay the entire amount of the loan earlier at his or her discretion with no penalty for prepayment. No partial repayments are permitted. k. Loans to borrowers may be used to finance innovative and/or cost- efficient methods of rehabilitation including "self-help," rehabilitation with trainee labor, etc. Where self-help is being conducted, a self-help contract shall be executed between the contractor and the borrower. This contract must include provisions for: scope of work, time of completion, city/county code requirements, inspections, progresspayments, contractor obligations, amount, q P � and remedies for ensuring completion of rehabilitation. Said contract shall be submitted to the State for its review and approval. a i N. � • Contractor: City of Redding Contract No. 88-HRL-292 Page 11 of 18 1. The contractor shall establish procedures to monitor and service the loans herein, including but not limited to: (i) Enforcing conditions of this agreement and the loan agreement between contractor and the local borrower; (ii) Assuring that real estate taxes and assessments are paid on time and that fire and extended coverage insurance is in effect at all times; (iii) Assuring that flood insurance is in effect at all times if property is located in a flood plain. (iv) Preventing or rectifying waste or abnormal deterioration of the security property; (v) Assuring proper notification to the State in matters of loan repayment, defaults and other requirements of this agreement; (vi) Processing, investigating, and making recommendations to the State with respect to local borrowers' requests for extensions of loans; and (vii) Preparing and reporting to the State recommendations with respect to assumptions of loans by an eligible owner to whom the improved property is transferred or conveyed. m. Prior to making a loan commitment to a local borrower, contractor shall forward the loan application and loan document package to the State's coordinator for approval. Each such loan, assumption, or extension of a rental loan must be approved by the State prior to a loan commitment, assumption, or rental extension being made by the contractor to the borrower. n. Contractor agrees to inspect property to be rehabilitated to ensure proper code compliance and construction work performance. o. Within 10 days of completion of rehabilitation, contractor shall require that the borrower execute and record a Notice of Completion. p. Contractor shall not approve or permit loans to be assumed, transferred, subordinated or refinanced without prior written approval by the State. I; I . • II Contractor: City of Redding Contract No. 88-HRL-292 Page 12 of 18 17. TERMS OF LOANS TO OWNER-OCCUPANTS 1I1 a. The contractor shall only lend funds pursuant to this agreement to low- or moderate income owner occupants of the residential unit to be rehabilitated except that loans for property located in areas where only Federal funds are being used will be restricted to low- income households. b. Loans shall be limited to the amount necessary to cover the cost of meeting rehabilitation standards which cannot be financed by a combination of funds otherwise available without exceeding the borrower's ability to afford shelter costs. c. Notwithstanding paragraph 16 j. of this agreement, loans to elderly owner-occupant borrowers or to those who become elderlyduring the term of the loan shall be repayable to the contractor upon sale or transfer of the property securing the loan. d. If title of a unit occupied by a non-elderly owner is transferred, the loan shall either be repaid or under certain circumstances, may be assumed until the end of the loan term, with prior approval by the State, by a person who meets the eligibility requirements of this program. e. Notwithstanding paragraph 16 j. of this agreement, the contractor may renew a loan for an additional five-year term, which may be again renewed as necessary by the contractor upon a determination-that the original borrower continues to occupy the property and the borrower's income and assets are such that the deferred payment loan could not be . feasibly repaid by refinancing from other sources. Contractor shall renew loans subject to this I I I! paragraph only for one five-year term at a time. f. Borrowers shall agree that units other than that occupied by the borrower shall be rented in accordance with the requirements of Paragraph 18, of this agreement. 18. TERMS OF LOANS TO OWNERS OF RENTAL UNITS a. The contractor shall only lend funds from the Fund to owners of rental units who agree to rent 100 percent of such units to low- income households, except where it is necessary to preserve the economic feasibility of the development or avoid displacement. In such cases, the Department may approve a lower percentage, but in no case shall less than 50 percent of the u I units be designated for low income households. • ii. d�, • Contractor: City of Redding Contract No. 88-HRL-292 Page 13 of 18 b. Loans of funds from the Fund shall be limited to that amount necessary to avoid increases in debt service which would either cause rents to be not affordable to low-income tenants residing on the premises, thereby resulting in permanent displacement, or make it infeasible to use rent subsidies in order to provide affordable rents to low-income households. c. The property owner receiving funds from the Fund shall agree, on a form approved by the State, prior to receiving funds, to limit rents and rent increases and to abide by the Tenancy Standards and Procedures set forth at Sections 7412 (c) and 7416, as amended from time-to-time, of the Program Regulations for the term of the original loan agreement. Said requirements shall be set forth in the loan agreement between the contractor and the local borrower and shall be approved by the State. d. Loans of funds from the Fund shall have five-year terms unless the contractor and the Department determine that a longer term is required to ensure the economic feasibility of obtaining other rehabilitation financing or accepting subsidies. e. Notwithstanding paragraph 16 j. of this agreement, the contractor, with approval from the State, may renew the loan for a five-year period if the contractor reasonably determines that low-income occupant households will continue to receive affordable rents and otherwise benefit from residency in the rehabilitated units. Contractor shall only renew such loans for one five-year term at a time unless multiple five-year periods are essential to the feasibility of continuing benefits to low-income households. A maximum of five, five-year renewal periods are permitted. f. In cases where non-residential structures are converted to residential use, the local borrower shall agree to ensure that units created will be reserved for occupancy by low-income households for a period of at least 15 years by agreeing to extend the loan after each five-year period. g. If property with assisted rental units is transferred, the transferee may assume the loan. In all cases, the transferee shall take the property subject to the restrictions of the loan agreement between the contractor and the original borrower. . . .O Contractor: City of Redding11, Contract No. 88-HRL-292 Page 14 of 18 19. REPAYMENT a. Any loan repaid by or on behalf of a local borrower to the contractor shall be repaid promptly by the contractor to the State. b. Any loan funds disbursed to contractor and not loaned to a local borrower within three months after disbursal to the contractor, shall be repaid to the State. c. The contractor agrees that neither failure to obtain any required permits, necessary subsidies, services, or financing, nor any other cause, releases the contractor from its obligations to the State to pursue all appropriate remedies, including foreclosure, in the event of default under the note or loan agreement by the local borrower. In the event of foreclosure, repayment to the State shall be limited to proceeds available from the sale of the property benefiting from funds from the Fund after repayment of superior encumbrances. 20. DEFAULT � f a. In the event the contractor, for any reason, is unable to proceed with the u j rehabilitation activities approved by the State, the State may declare this agreement to have been breached and shall be released from any further performance hereunder. Upon notice of cancellation, the contractor shall have a right to a hearing before the Loan Committee. The Loan Committee shall consider the appeal at its next regularly scheduled meeting and make a recommendation to the Director, whose decision shall be final. b. In the event of any default or breach of the agreement by the contractor, the State may declare any disbursements to contractor from the State to be immediately due and payable. In said event, the contractor agrees to convey to the State all its rights, title, and interest in any property securing the note and further agrees to convey all rights, title, and interest in all repor.s, tests, surveys, drawings, plans, maps, and other documents which are the product of funds disbursed under this agreement. c. Notwithstanding paragraph 19 c., if the State must undertake the foreclosure of security or other reasonable collection activities, contractor shall be liable for any such costs not reimbursed by the security or the borrower. gu la • • Contractor: City of Redding Contract No. 88-HRL-292 Page 15 of 18 d. In the event there is a default in repayment by a local borrower or a violation by the local borrower of the loan agreement between a local borrrower and contractor, contractor shall act promptly to ensure repayment or compliance with the loan agreement between the local borrower and the contractor. Any costs thus incurred by contractor shall not affect contractor's duty of repayment to the State of any disbursements made herein, subject to proceeds obtained from the borrower or the security. 21. REPORTING a. As requested by the State, the contractor agrees to submit information to the State which details the number of units assisted with the loans, the estimated rehabilitation costs, the units' costs, and other relevant information requested by the State. b. Contractor agrees to grant the State permission and to obtain borrower and occupant permission in each instance to enter and inspect properties subject to this agreement and to inspect all records of the contractor relating to compliance with this agreement. c. Contractor shall retain originals of all records related to use of funds from the Fund. Copies only shall be forwarded to the State when required or requested. All records shall be retained for three years after termination of the contract and shall be made available for inspection or audit by the State. 22. SPECIAL CLEARANCE a. Contractor shall ensure compliance with local, State, or Federal laws, ordinances, and regulations applicable to proposed loans, rehabilitation, and use of premises, including zoning ordinances,building codes,planning, historic preservation, environmental, and relocation regulations. b. To the extent necessary, the contractor shall satisfy the State that all of the requirements of the California Environmental Quality Act have been fulfilled and that appropriate permits from the California Coastal Commission have been obtained when required on local rehabilitation activities. c. The contractor agrees that satisfaction of the requirements of this paragraph shall be preconditions for any disbursal of funds hereunder. r in . 'h t Contractor: City of Redding Contract No. 88-HRL-292 Page 16 of 18 I f + I 23. APPEALS a. The contractor may appeal in writing any action by the Department staff on applications for loans to borrowers to the Loan Committee. The Loan Committee shall make a recommendation on the appeal to the Director, whose decision shall be final. b. A borrower, tenant, or tenant applicant may appeal in writing any program-related matter to the contractor. Contractor shall investigate the appeal and render a decision within 60 days from its receipt. After exhausting the contractor appeal procedure, the aggrieved party may appeal in writing to the Director of the Department. The decision of the Director shall be final. 24. TECHNICAL ASSISTANCE In the event the contractor experiences difficulty in progressing with the rehabilitation activities approved by the State, the contractor agrees to notify the State promptly of the difficulty and to accept whatever technical assistance the State may, at its option, be able to provide. 25. NONDISCRIMINATION CLAUSE The contractor agrees to comply with all the conditions required by the w Nondiscrimination Clause, Standard Form 17B,which is identified as Attachment B, attached hereto and made a part hereof. 26. STATE COORDINATOR The State coordinator for this agreement is Robert Stone, Deferred Payment 1! Rehabilitation Loan Program Manager, or his designee or successor. 27. SPECIAL CONDITIONS a. In addition to the general provisions of this agreement, the special conditions { set out in Item II of Attachment A must be satisfied before the State will advance any funds hereunder. b. Satisfaction of the aforesaid special conditions must be in a manner specified by or acceptable to the State. Ih • Ill • Contractor: City of Redding Contract No. 88-HRL-292 Page 17 of 18 28. AMENDMENT This agreement shall not be altered or amended except: (1) in writing, executed between the parties, or (2) as provided in paragraph 29 below. No oral understanding or agreement not incorporated therein shall be binding on any of the parties hereto. 29. DISENCUMBRANCE OF FUNDS In the event that funds authorized under this agreement and all subsequent amendments, or any portion thereof, have not been utilized by the Contractor in accordance with the provisions of this agreement, and the Department, at its sole discretion, determines that such funds, or any portion thereof, are not necessary for the Contractor's performance thereunder, then the Department may disencumber from this agreement the amount of such funds determined to be unnecessary upon written notice to the Contractor, indicating the effective date and the amount of such disencurnbrance. On said effective date, the amount so disencumbered shall no longer be authorized for use under this agreement. This disencumbrance process is subject to the appeal procedure set forth in the program regulations, Title 25, Section 7430 or 7472. 30. NLRB Certification The Contractor warrants by execution of this Agreement and does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a Federal Court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of a Federal Court which orders the Contractor to comply with an order of the National Labor Relations Board. • 1111 • •, CONTRACTOR: City of Redding CONTRACT NO: 88-HRL-292 PAGE 18 OF 18 ATTACHMENT A ITEM I Authorized Purposes (Paragraph 9b) Purpose Contractor to make Deferred Payment Rehabilitation Loans in accordance with the program regulations 25 Admin. C. Sections 7400-7436, as may be amended from time-to-time, and contractor's approved application for funding commitment, which is on file at the Department of Housing and Community Development, Division of Community Affairs, 921 Tenth Street, Sacramento, California. ITEM II Special Conditions (Paragraph 27a) A. Contractor shall submit an executed copy of a Resolution of the contractor's governing body, authorizing the execution of a Standard Agreement, an Agreement to Assign Deeds of Trust, Promissory Note and Loan Agreement, and other documents to secure a Deferred Payment Rehabilitation Loan Program fund commitment from the State of California and appointing an individual authorized to execute all documents on the contractor's behalf. l is B. Contractor shall comply with HCD housing element requirements, as stated: Funds may not be reserved until a draft, updated Housing Element in compliance with Article 10.6 of the Government Code is submitted to the Department of Housing and Community Development (HCD); H HCD's 90-day review period has passed; HCD's comments have been considered; and the adopted Housing Element is submitted to HCD. C. Contractor shall administer the DPRLP as set forth in the DPRLP Administrative Guidelines and shall attend workshops offered by DPRLP staff. ITEM III Nonprofits and Grantees of Administrative Funds Submit for Department review and approval, an Administrative Grant Budget on the attached Form. No administrative grant funds shall be disbursed to h contractor unless and until the Administrative Grant Budget is approved by the Department. DPBP214.2 ii 88-HRL-292 . • • • , Attachment B . Page 1 of 1 NONDISCRIMINATION CLAUSE (ocP - 2) 1 . During the performance of this contract, the recipient, contractor and its subcontractors shall not deny the contract' s benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age or sex. Contractor shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination . 2. Contractor shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq. ), the regulations promulgated thereunder (California Administrative Code, Title 2, Section 7285,0 et seq. ), the provisions of Article 9. 5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Government Code, Sections 11135-11139. 5) and the regulations or stand- ards adopted by the awarding State agency to implementsuch article. 3 .. Recipient, contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement , 4. The contractor shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under the contract . STD. 17B (NEW 5-83 )