CC - Item 5C - HOME Investment Partnerships Funds Commitment Agreement Between the City of Rosemead and The Rosemead Housing Development Corporation for the Implementation of Certain Home Funded ProgramsROSEMEAD CITY COUNCIL
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
STAFF REPORT
TO: THE HONORABLE MAYOR AND CITY COUNCIL
FROM: GLORIA MOLLEDA, CITY MANAGER/EXECUTIVE DIRECTOR " a,`v 1
DATE: JUNE 19, 2018
SUBJECT: HOME INVESTMENT PARTNERSHIPS (HOME) FUNDS
COMMITMENT AGREEMENT BETWEEN THE CITY OF ROSEMEAD
AND THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION
(RHDC) FOR THE IMPLEMENTATION OF CERTAIN HOME FUNDED
PROGRAMS
SUMMARY
The City is required to commit its HOME Investment Partnerships (HOME) funds for particular
affordable housing activities within 24 months after the U.S. Department of Housing and Urban
Development's (HUD's) appropriation of the entitlement allocation. To comply with this
requirement, staff recommends that the City commit $258,128 of FY 2018-19 HOME funds, plus
unspent carried over funds of approximately $510,500 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 City Council and the RHDC take the following actions:
1. Approve a HOME Funds Commitment Agreement between the City Council and the
RHDC for the implementation of the City's Owner -Occupied Rehabilitation Loan
Program in the amount of $578,628 (approximately) and Mortgage Assistance Program
in the amount of $190,000;
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 NO. 5.0
City Council Meeting
June 19, 2018
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.
FISCAL IMPACT - None
STRATEGIC PLAN IMPACT —None
LEGAL REVIEW
The attached Contract has been reviewed and approved by the City Attorney and the RHDC
Attorney.
PUBLIC NOTICE PROCESS
This item has been noticed through the regular agenda notification process.
Prepared by:
<�; —� .
MichMe Ramirez, Director of Public Works
Attachment A — HOME Funds Commitment Agreement (FY 2018-19)
Attachment A
Home Funds Commitment Agreement
FY 2018/19
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 19, 2018, 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 $258,128 of its FY 2018-19 HOME funds, as well as
approximately $510,500 of carryover funds prior to FY 2018-19 plus all loan payoffs received
during the FY 2018-19 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 $258,128 of its FY 2018-19 HOME
funds, as well as approximately $510,500 of carryover funds prior to FY 2018-19 plus all loan
payoffs received during the FY 2018-19) for the Programs:
• Owner -Occupied Rehabilitation Loan Program (approximately $578,628)
• Mortgage Assistance Program (approximately $190,000)
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-
Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 2 of 4
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 $310,000 by July 31, 2021.
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."
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.
2
Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 3 of 4
Section 7. Supersedes Prior Aereement
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.
IN WITNESS WHEREOF, the CITY and RHDC have executed this Agreement to be
executed by their duly authorized representatives. This Agreement is effective as of July 1,
2018.
CITY OF ROSEMEAD
BY:
Steven Ly
Mayor
Attest:
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
BY:
Steven Ly
President
Attest:
By: By:
Ericka Hernandez Ericka Hernandez
City Clerk Secretary
Rosemead Housing Development Corporation
HOME Funds Commitment Agreement
Page 4 of 4
Approved as to Form:
Rachel Richman
Burke, Williams & Sorensen, LLP
City Attorney
Approved as to Form:
Rachel Richman
Burke, Williams & Sorensen, LLP
Corporation Attorney