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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. 2 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." 3 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. 4 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 5