CC - Item 5E - Home Funds Commitment Agreement Between the City of Rosemead and the Rosemead Housing Development Corporation for the Implementation of Certain Home Funded Programs E M
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° ROSEMEAD HOUSING
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/NOOPORATED 9c'0 ROSEMEAD CITY COUNCIL
STAFF REPORT
TO: THE HONORABLE PRESIDENT AND DIRECTORS
THE HONORABLE MAYOR AND CITY COUNCIL
FROM: JEFF ALLRED, EXECUTIVE DIRECTOR/CITY MANAGER 441;
DATE: MAY 12, 2015
SUBJECT: HOME FUNDS COMMITMENT AGREEMENT BETWEEN THE CITY OF
ROSEMEAD AND THE ROSEMEAD HOUSING DEVELOPMENT
CORPORATION FOR THE 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, staff recommends that the City commit $148,857 of FY
2015-16 HOME funds, plus unspent carried over funds from prior FY's, by contracting
with the Rosemead Housing Development Corporation (RHDC) to administer certain
HOME funded programs.
Staff Recommendation
It is recommended that the Rosemead Housing Development Corporation and the City
Council take the following actions:
1. Approve a HOME Funds Commitment Agreement between the Rosemead
Housing Development Corporation and the City Council for the implementation of
the City's Owner-Occupied Rehabilitation Loan Program and Mortgage
Assistance Program;
2. Authorize the Mayor to execute the contract on behalf of the City; and
3. Authorize the President to execute the contract on behalf of the RHDC.
ANALYSIS
The City 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 balance of the allocation (10%) is to be used for
administrative services and is not required to be committed.
ITEM NUMBER: 5
City Council Report
May 12,2015
Page 2 of 2
To comply with this requirement, it is recommended that the City contract with the
RHDC to administer the HOME funded Owner-Occupied Rehabilitation Loan Program
and Mortgage Assistance Program. By contracting with RHDC for the implementation
of these particular programs, the funds would be committed within the 24-month
requirement 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 and
City Attorney.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
(Stiteitio' a• ittATC.A.,
Michelle G. Ramirez
Community Development Director
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 May 12, 2015, 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 $148,857 of its HOME funds, as well as any
carryover funds prior to FY 2015-16, 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").
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.
Section 2. Commitment of Funds
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 $148,857, as well
as any carryover funds prior to FY 2015-16, for the Programs:
• Owner-Occupied Rehabilitation Loan Program
• Mortgage Assistance Program
Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 2 of 4
Section 3. Expenditure of Funds
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 $148,857 by July 31,
2020.
Section 4. Non-liability of Officials and Employees
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."
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Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 3 of 4
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."
Section 6. 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 7. Supersedes Prior Agreement
This Agreement supersedes all prior agreements or understandings between the
City and RHDC regarding the subject matter of this Agreement.
Section 8. 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 9. Law Governments
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 10. Amendments
This Agreement may be amended at any time, and from time to time, by an
agreement executed by both parties to this.Agreement.
Section 11. Termination
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 upon forty-eight (48) hours prior
written notice to RHDC.
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Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 4 of 4
IN WITNESS WHEREOF, the CITY and RHDC have executed this Agreement
on May 12, 2015.
CITY OF ROSEMEAD ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
BY: BY:
Margaret Clark Margaret Clark
Mayor President
Attest: Attest:
By: By:
Gloria Molleda Gloria Molleda
City Clerk Secretary
Approved as to Form: Approved as to Form:
By: By:
Rachel Richman Rachel Richman
Burke, Williams & Sorensen, LLP Burke, Williams & Sorensen, LLP
City Attorney Corporation Attorney
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