Housing - Item 2B - Review and Approval of Contract with City Rosemead For Implementation of Certain Home Funded ProgramsROSEMEAD HOUSING
DEVELOPMENT CORPORATION
STAFF REPORT
TO: THE HONORABLE PRESIDENT AND DIRECTORS
FROM: JEFF ALLRED, EXECUTIVE DIRECTORECT
I~/~'I
DATE: JUNE 23, 2009 fill
SUBJECT: REVIEW AND APPROVAL OF CONTRACT WITH CITY OF ROSEMEAD
FOR IMPLEMENTATION OF CERTAIN HOME FUNDED PROGRAMS
SUMMARY
The City is required to commit its HOME funds for particular affordable housing
activities within 24 months after HUD's appropriation of the entitlement allocation. To
comply with this requirement, the City desires to contract with the Rosemead Housing
Development Corporation (RHDC) to administer certain HOME funded programs.
Staff Recommendation
Staff recommends that the Board take the following actions:
1. Approve a contract with the City of Rosemead for the implementation of:
Owner-Occupied Rehabilitation Loan Program, and
Mortgage Assistance Program; and
2. Authorize the Mayor to execute the contract on behalf of the City.
ANALYSIS
The City of Rosemead is required to commit 90% of its annual HOME allocations for
particular affordable housing activities within 24 months after HUD's appropriation of the
entitlement allocation.
The City desires to contract with RHDC to administer the HOME funded Owner-
Occupied Rehabilitation Loan Program and Mortgage Assistance Program. By
contracting with RHDC for the implementation of these programs, the City's HOME
funds would be committed and the City would avoid the risk of losing any funds. The
programs would still be implemented by City staff.
LEGAL REVIEW
The attached Contract has been reviewed and approved by the RHDC Attorney.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
ITEM NO. _2 Z~
APPROVED FOR CITY COUNCIL AGENDA:
City Council Report
June 23, 2009
Pape 2 of 2
Prepared by:
U"W l7
Michelle G. Ramirez
Economic Development ministrator
y:
SUnaeki
B Assistant City Manager
Attachment A - Proposed Contract
ATTACHMENT "A"
CITY OF ROSEMEAD AND
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
HOME FUNDS COMMITMENT AGREEMENT
FOR IMPLEMENTATION OF CERTAIN PROGRAMS
THIS HOME FUNDS COMMITMENT AGREEMENT (this "Agreement") is
entered into as of June 26, 2009, by and between the CITY OF ROSEMEAD, a
municipal corporation (hereinafter referred to as the "City"), and ROSEMEAD
HOUSING DEVELOPMENT CORPORATION, a California non-profit corporation
(hereinafter referred to as "RHDC").
RECITALS:
A. Pursuant to the HOME Investment Partnerships Act, the Department of
Housing and Urban Development ("HUD") has allocated regular HOME funds to the City
for the purpose of expanding the City's supply of decent, safe, sanitary and affordable
housing for low to moderate-income families.
B. The City receives annual HOME allocation from HUD and desires to
commit a portion of its HOME funds for implementation of certain HOME funded
programs providing affordable housing opportunities.
C. The City desires to commit $1,294,932 of its HOME funds, as well as any
carryover funds prior to FY 2008-09, to RHDC and RHDC desires to accept such
commitment of funds for the implementation of the City's Owner-Occupied
Rehabilitation Loan Program and Mortgage Assistance Program (collectively
"Programs") in conformance with HUD rule 24 CFR Part 92.
NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS
Section 1. Purpose of this Agreement
The City and RHDC desire to enter into this Agreement to acknowledge the
above recitals and to provide for the commitment of a portion of its HOME funds by the
City to RHDC and the acceptance of such commitment by RHDC consistent with HUD
rule 24 CFR Part 92.
Section 2. Commitment of Funds
Under HUD guidelines and subject to the terms of this Agreement, the City
agrees to provide to RHDC and RHDC agrees to accept from the City regular HOME
funds, totaling $1,294,932, as well as any carryover funds prior to FY 2008-09, for the
following HUD compliant Programs:
Owner-Occupied Rehabilitation Loan Program
• Mortgage Assistance Program
Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 2 of 5
Section 3. Expenditure of Funds
A. RHDC agrees to expend the funds received pursuant to Section 2 for the
purpose of increasing, improving, or preserving affordable housing in the City by
providing the Programs in full compliance with the requirements of the HOME
Investment Partnerships Act (at Title II of the Cranston-Gonzalez National Affordable
Housing Act, as amended, 42 U.S.C. 12701 et seq.) and HUD Regulations (at 24 CFR
Part 92), as now in effect and as may be amended from time to time, and all other
applicable laws and regulations, including without limitation, the Davis-Bacon Act (40
U.S.C. 276a-276a-5), the Contract Work Hours and Safety Standards Act (40 U.S. C.
327-332), the Federal requirements set forth in 24 CFR Part 5, Subpart A, applicable
provisions of the Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d-4), the
Fair Housing Act (42 U.S.C. 3601 et seq.), E.O. 11063 (3 CFR, 1959-1963 Comp., p
652) and HUD regulations issued pursuant thereto. RHDC agrees to expend at least
the stated amount of funds for the above listed programs by the following dates:
$324,453
by July 31, 2010
$237,334
by July 31, 2011
$347,305
by July 31, 2013
$385,840
by July 31, 2014
B. RHDC shall maintain and, at reasonable times and places, make available
to the City such records, accounts, including property, personnel, and financial records,
the City and/or State and Federal agencies deem necessary to assure a proper
accounting for all HOME Program Funds.
Section 4. Enforcement of the Agreement
A. RHDC shall provide a means of enforcement of the affordable housing
requirements that may include liens on real property, deed restrictions or covenants
running with the land.
B. Repayment of HOME funds must be made in full if the housing does not
meet the affordability requirements for the specified time period.
Section 5. Indemnification and Hold Harmless
RHDC agrees to indemnify, defend and hold harmless City, its officers, officials,
employees and agents ("City") from and against, any and all liabilities, claims, actions,
causes of action, proceedings, suits, damages, judgments, liens, levies, costs and
expenses of whatever nature, including reasonable attorneys' fees and disbursements
(collectively, "Claims"), which City may suffer or incur or to which City may become
subject by reason of or arising out of any injury to or death of any person(s), damage to
property, loss of use of property, economic loss or otherwise occurring as a result of any
negligent or willfully wrongful acts or omissions of RHDC, its officers, employees,
agents, or subcontractors committed arising under this Agreement.
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Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 3 of 5
Section 6. Non-Discrimination
RHDC covenants and agrees for itself, its successors and assigns that there
shall be no discrimination against or segregation of any person, or group of persons, on
account of race, color, creed, religion, marital status, sex, age, national origin or
ancestry in the sale, lease, sublease, transfer, use occupancy, tenure or enjoyment of
the lands, rights-of-way or implements finance pursuant to this Agreement, nor shall
RHDC, or any person claiming under or through it, establish or permit any such practice
or practices of discrimination or segregation with reference to the selection, location,
number use or occupancy of tenants, lessees, subtenants, sublessess, or vendees of
the lands, rights-of-way or improvements. RHDC shall refrain from restricting the rental,
sale, or lease of the lands, rights-of-way or improvements on the basis of race, color,
creed, religion, marital status, age, sex, national origin, or ancestry of any person. All
such deeds, leases or contracts for the sale, lease, sublease or other transfer of the
rights -of-way, lands or improvements shall contain or be subject to substantially the
following non-discrimination or non-segregation clauses:
A. In deeds: "The grantee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or thorough them, that there shall be
no discrimination against or segregation of, any person or group of person on
account of race, color, creed, religion, sex marital status, age, national origin,
or ancestry in the sale, lease, sublease, transfer, use occupancy, tenure or
enjoyment of the land herein conveyed, nor shall the grantee itself or any
persons claiming under or through it, establish or permit any such practice or
practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants,
sublessees, or vendees on the land herein conveyed. The foregoing
covenants shall run with the land."
B. In leases: "The lessee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, and this lease is
made and accepted upon and subject to the following conditions: That there
shall be no discrimination against or segregation of any person or group of
persons, on account of race, color, creed, religion, marital status, age, sex,
national origin, or ancestry, in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the land herein leased nor shall the lessee
itself, or any person claiming under or through it, establish or permit such
practice or practices of discrimination or segregation with reference to the
selection, location number, use or occupancy of tenants, lessees, sublessees,
subtenants, or vendees on the land herein leased."
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Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 4 of 5
Section 7. Termination and Reimbursement of Unexpended Funds
Either Party may terminate this Agreement with or without cause upon thirty (30)
days prior written notice to the other Party. At such time, City shall be entitled to
reimbursement for all unexpended Funds. To this end, RHDC shall maintain records of
all of its Eligible Expenses and the draw-down of the Funds to pay for such expenses.
City shall have a right to review all such records. RHDC shall be required to reimburse
the City for the use of funds that are not Eligible Expenses pursuant to Title 24 CFR
Part 92.
Section 8. Future Cooperation
The parties hereto agree to take all appropriate steps and execute any
documents which may reasonable be necessary or convenient to implement the intent
of this Agreement.
Section 9. Term
The term of this Agreement shall be from the date of execution until July 31,
2014, unless amended by written agreement of the parties or terminated as provided in
this Agreement
Section 10. Supersedes Prior Agreement
This Agreement supersedes all prior agreements or understandings between the
City and RHDC regarding the subject matter of this Agreement.
Section 11. Records
Each party shall maintain books and records regarding its duties pursuant to this
Agreement. Such books and records shall be available for inspection by the officers
and agents of the other party at all reasonable times.
Section 12. Law
This Agreement is made in the State of California under the constitution and laws
of the State of California, and is to be so construed.
Section 13. Amendments
This Agreement may be amended at any time, and from time to time, by written
agreement executed by both parties to this Agreement.
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Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 5 of 5
IN WITNESS WHEREOF, the CITY and RHDC have executed this Agreement
on June 26. 2009.
CITY OF ROSEMEAD
BY:
Margaret Clark
Mayor
Attest:
By:
Gloria Molleda
City Clerk
Approved as to Form:
By:
Joe Montes
Burke, Williams & Sorensen, LLP
City Attorney
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
BY:
Margaret Clark
President
Attest:
By:
Gloria Molleda
Secretary
Approved as to Form:
By:
Joe Montes
Burke, Williams & Sorensen, LLP
Corporation Attorney
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