HomeMy WebLinkAbout129491 FORT COLLINS HOUSING CORPORATION - CONTRACT - CONTRACT - 22883RECORDED AT REQUEST OF: The City of Fort Collins
WHEN RECORDED RETURN TO: Advance planning Department
City of Fort Collins
P. 0. Box 580
Fort Collins CO 80522-0580
(SPACE ABOVE THIS LINE FOR RECORDER'S USE)
AGREEMENT OF RESTRICTIVE COVENANTS AFFECTING REAL
PROPERTY
THIS AGREEMENT OF RESTRICTIVE COVENANTS AFFECTING REAL
PROPERTY ("Agreement") is executed this day of December, 2004 by and
between the CITY OF FORT COLLINS, a Colorado municipal corporation
("City"), and FORT COLLINS HOUSING CORPORATION ("Developer"), with
reference to the following:
A. Developer is the owner of that certain real property (the
"Property") located in the City of Fort Colins, County of Larimer, State of
Colorado, more particularly described in Exhibit "A" attached hereto and
incorporated herein by this reference (the "Property").
B. The City and Developer have entered into an Agreement (`HOME
Agreement") under the HOME Investment Partnership Program, dated
December, 2004, concerning the rehabilitation the Single -Room -
Occupancy (SRO) building at 300 First Street, ("Project"), with the
implementation of this Agreement to provide restrictive covenants far
affordable housing upon completion of construction.
NOW, THEREFORE, in consideration of the foregoing and for good and
valuable consideration, receipt and sufficiency of which is acknowledged by
the parties, the City and Developer hereby agree as follovs:
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RECIPIENT CONTRACT FOR
COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT
PARTNERSHIP FUNDING
THIS AGREEMENT is entered into by and between THE CITY OF FORT COLLINS,
COLORADO, a municipal corporation (hereinafter referred to as "the City") and FORT
COLLINS HOUSING CORPORATION (hereinafter referred to as "the Subrecipient").
WITNESSETH:
WHEREAS, the City has applied for and received funds from the United States
Government under Title 1 of the Housing and Community Development Act of 1974, Public Law
93-383 and under Title 11 of the Cranston -Gonzales National Affordable Housing Act; and
WHEREAS, the City wishes to engage the Subrecipient to assist the City in utilizing such
funds.
NOW, THEREFORE, in consideration of the mutual promises of the parties, it is agreed
as follows:
I. Scope of Services/Performance Monitoring.
A. The Scope of Services to be rendered by the Subrecipient is attached as Exhibit A
hereto and made a part of this Contract. Subrecipient agrees to perform the work
described in Exhibit A, Scope of Services, in compliance with all provisions of
this Contract. Subrecipient warrants and represents that it has the requisite
authority and capacity to perform all terms and conditions on Subrecipient's part
to be performed hereunder.
B. The City will monitor the performance of the Subrecipient against goals and
performance standards required herein. Substandard performance as determined
by the City will constitute noncompliance with this Contract. If action to correct
such substandard performance is not taken by the Subrecipient within a reasonable
period of time after being notified by the City, contract suspension or termination
procedures will be initiated.
II. Term of Contract.
Except as provided in Section VI, H, below, this Contract shall be in effect as long as the
Subrecipient retains control over Community Development Block Grant ("CDBG") and/or
HOME funds, including income generated from the funds. The City's obligation to provide
funding under this Contract shall be from December 15, 2004 to December 15, 2005 and shall be
contingent upon full compliance by Subrecipient with all terms and conditions set forth herein.
III. Payment.
If the Subrecipient is not in default hereunder, and subject to the City's receipt of the
Department of Housing and Urban Development CDBG and HOME funds, and provided that the
Contract and Scope of Services are eligible expenditures of CDBG and HOME funds, the City
agrees to pay the Subrecipient ONE HUNDRED THIRTY SIX THOUSAND FOUR
HUNDRED FIFTY FIVE AND NO/100 ($136,455) in HOME funding. Terms of the loan
are as follows: the funding is a due -on -sale loan with a 5% simple interest fee ($6,822.00)
included at time of repayment for a total due of ONE HUNDRED FORTH THREE
THOUSAND TWO HUNDRED SEVENTY SEVEN AND NO/100 ($143,277.00). Payment
shall be made upon presentation of invoices which Subrecipient certified are true and correct
copies of payments due on behalf of the Subrecipient, for an activity covered by this Contract and
made in accordance and compliance with the Scope of Services. In no event shall the City's
obligation to make payment to the Subrecipient hereunder exceed ONE HUNDRED THIRTY
SIX THOUSAND FOUR HUNDRED FIFTY FIVE AND N0/100 ($136,455) DOLLARS.
Payments may be made during the term of this Contract once a month in cases covering
reimbursement for operation costs, otherwise upon presentation of vouchers. Payment may be
suspended by the City in the event of nonperformance of Subrecipient. Payments may also be
contingent upon certification of the Subrecipient's financial management system in accordance
with the standards specified in Title 24, CFR, Part 85.
IV. Notices.
Communications and details concerning this Contract shall be directed to the following Contract
representatives:
City of Fort Collins:
CDBG/HOME Administrator
Advance Planning Department
City of Fort Collins
P.O. Box 580
Fort Collins, CO 80522-0580
(970)221-6758
V. Special Conditions.
Subrecipient:
Executive Director
Fort Collins Housing Corporation
1715 West Mountain
Fort Collins CO 80521
(970)416-2917
The Subrecipient agrees to comply with the requirements of Title 24 Code of Federal
Regulations, Part 570, of the Housing and Urban Development regulations concerning
Community Development Block Grants, Title II of the Cranston -Gonzales National Affordable
Housing Act and all federal regulations and policies issued pursuant to these regulations. The
Subrecipient further agrees to utilize funds available under this Contract to supplement rather
than supplant funds otherwise available.
VI. General Conditions.
A. General Compliance.
The Subrecipient agrees to comply with all applicable federal, state and local laws and
regulations governing the funds provided under this Contract.
B. Independent Contractor.
Nothing contained in this Contract is intended to, or shall be construed in any manner, as
creating or establishing the relationship of employer/employee between the parties. The
Subrecipient shall at all times remain an independent contractor with respect to the
services to be performed under this Contract. The City shall be exempt from payment of
all Unemployment Compensation, FICA, retirement, life and/or medical insurance and
Workers' Compensation insurance as the Subrecipient is an independent Subrecipient.
C. Liability.
As to the City, Subrecipient agrees to assume the risk of all personal injuries, including
death resulting therefrom, to persons, and damage to and destruction of property,
including loss of use therefrom, caused by or sustained, in whole or in part, in connection
with or arising out of the performance or nonperformance of this Contract by
Subrecipient or by the conditions created thereby. Subrecipient further agrees to
indemnify and save harmless the City, its officers, agents and employees, from and
against any and all claims, liabilities, costs, expenses, penalties and attorney fees arising
from such injuries to persons or damages to property or based upon or arising out of the
performance or nonperformance of this Contract or out of any violation by Subrecipient
of any statute, ordinance, rule or regulation.
D. Workers' Compensation.
The Subrecipient shall provide Workers' Compensation insurance coverage for all
employees involved in the performance of this Contract.
E. Insurance and Bonding.
The Subrecipient shall carry sufficient insurance coverage to protect Contract assets from
loss due to theft, fraud and/or undue physical damage, and as a minimum, shall purchase
blanket fidelity bond covering all employees in an amount equal to cash advances from
the City.
F. Grantor Recognition.
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The Subrecipient shall ensure recognition of the role of the City in providing services
through this Contract. All activities, facilities and items utilizedpursuant to this Contract
shall be prominently labeled as to funding source. In addition, the Subrecipient will
include a reference to the support provided herein in all publications made possible with
funds made available under this Contract. Such labeling and/or reference shall include
the following credit line: "This project is partially supported by Community
Development Block Grant and/or HOME funds from the City of Fort Collins."
G. Amendments.
The City or Subrecipient may amend this Contract at any time, provided that such
amendments make specific reference to this Contract and are executed in writing, signed
by a duly authorized representative of both organizations. Such amendments shall not
invalidate this Contract, nor relieve or release the City or Subrecipient from its
obligations under this Contract, except as expressly provided therein.
The City may, in its discretion, amend this Contract to conform with federal, state or local
governmental guidelines, policies and available funding amounts, or for other reasons. If
such amendments result in a change in the funding, the Scope of Services, or schedule of
the activities to be undertaken as part of this Contract, such modifications will be
incorporated only by written amendment signed by both the City and Subrecipient.
H. Suspension or Termination.
l . Either party may terminate this Contract at any time by giving written notice to the
other party of such termination and specifying the effective date thereof at least
thirty (30) days before the effective date of such termination. Partial terminations
of the Scope of Service in Paragraph I above may only be undertaken with the
prior approval of City.
2. The City may also suspend or terminate this Contract, in whole or in part, if
Subrecipient materially fails to comply with any term of this Contract, or with any
of the rules, regulations or provisions referred to herein; and the City may declare
the Subrecipient ineligible for any further participation in City CDBG/HOME
contracts, in addition to other remedies as provided by law. In the event there is
probable cause to believe the Subrecipient is in noncompliance with any
applicable laws, rules, or regulations, the City may withhold up to one hundred
(100) percent of said Contract funds until such time as the Subrecipient is found
to be in compliance by the City or is otherwise adjudicated to be in compliance, or
to exercise the City's rights under any security interest of the City arising
hereunder.
3. In the event of any termination, all finished or unfinished documents, data,
studies, surveys, maps, models, photographs, reports or other materials prepared
by Subrecipient under this Contract shall, at the option of the City, become the
property of the City, and Subrecipient shall be entitled to receive just and
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equitable compensation for any satisfactory work completed on such documents
or materials prior to the termination.
4. This Contract, and the City's obligations under it, will automatically terminate in
the event of suspension or non -receipt of CDBG/HOME funds by the City.
VII. Administrative Requirements.
A. Financial Management.
1. Accounting Standards.
The Subrecipient agrees to comply with 24 CFR Part 85 and agrees to adhere to
the accounting principles and procedures required therein, utilize adequate
internal controls and maintain necessary source documentation for all costs
incurred.
2. Cost Principles.
The Subrecipient shall administer its program in conformance with OMB
Circulars A-122, "Cost Principles for Non -Profit Organizations", or A-21, "Cost
Principles for Educational Institutions", or A 87, "Cost Principles for State, Local,
and Indian Tribal Governments", as applicable; for all costs incurred whether
charged on a direct or indirect basis.
B. Documentation and Record -keeping.
1. Records to be Maintained.
The Subrecipient shall maintain all records required by the federal regulations
specified in 24 CFR Part 570.506 and that are pertinent to the activities to be
funded under this Contract. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. When applicable, records demonstrating that each activity undertaken
meets one of the National Objectives of the CDBG program;
C. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with CDBG/HOME
assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the CDBG/HOME program;
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f. Financial records as required by 24 CFR Part 570.502, and 24 CFR Part
85; and
g. Other records necessary to document compliance with Subpart K of 24
CFR 570.
2. Retention.
The Subrecipient shall retain all records pertinent to expenditures incurred under
this Contract for a period of five (5) years after the termination of all activities
funded under this Contract, or after the resolution of all Federal audit findings,
which ever occurs later. Records for non -expendable property acquired with
funds under this Contract shall be retained for five (5) years after final disposition
of such property. Records for any displaced person must be kept for five (5) years
after he/she has received final payment.
3. Client Data.
The Subrecipient shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to: client name,
address, income level or other basis for determining eligibility, and description of
service provided. Such information shall be made available to City monitors or
their designees for review upon request.
4. Property Records.
The Subrecipient shall maintain real property inventory records which clearly
identify properties purchased, improved or sold. Properties retained shall
continue to meet eligibility criteria and shall conform with the "changes in use"
restrictions specified in 24 CFR Parts 570.503(b)(8).
5. National Objectives.
When CDBG funding is used, the Subrecipient agrees to maintain documentation
that demonstrates that the activities carved out with funds provided under this
Contract meet one or more of the CDBG program's national objectives: (1)
benefit low/moderate income persons, (2) aid in the prevention or elimination of
slums or blight, or (3) meet community development needs having a particular
urgency, as defined in 24 CFR Part 570.208, specific documentation of which
shall be maintained in the project file.
6. Close-outs.
Subrecipient obligation to the City shall not end until all close-out requirements
are completed. Activities during this close-out period shall include, but are not
limited to: making final payments, disposing of program assets (including the
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return of all unused materials, equipment, unspent cash advances, program
income balances, and receivable accounts to the City), and determining the
custodianship of records.
7. Audits and Inspections.
a. All Subrecipient records with respect to any matters covered by this
Contract shall be made available to the Subrecipient, the City, their
designee or the Federal Government, at any time during normal business
hours, as often as the Subrecipient or City deems necessary, to audit,
examine and make excerpts or transcripts of all relevant data. Any
deficiencies noted in audit reports must be fully cleared by the City within
thirty (30) days after receipt by the City. Failure of the Subrecipient to
comply with the above requirements will constitute a violation of this
contract and may result in the withholding of future payments.
b. Subrecipient acknowledges that the federal funds subgranted to it are
subject to the Single Audit of the City. The City, the U.S. Department of
Housing and Urban Development, the Comptroller General of the U.S. or
any of their duly authorized representatives or auditors, shall have access
to any books, documents, papers and records of the Subrecipient or its
auditors which are directly pertinent to the Contract for the purpose of the
City's Single Audit. All financial records pertaining to this Contract upon
completion shall remain the property of the City.
C. If Subrecipient expends $300,000 or more of federal awards (including,
but not limited to funds received from the City pursuant to this
Agreement), within any of its fiscal years during which this Agreement is
in force, Subrecipient agrees to have a Single Audit performed, at no cost
to the City, in accordance with the Single Audit Act Amendments of 1996
and OMB Circular A-133. In the event that the expenditures of $300,000
or more indicated above are all pursuant to this Agreement, Subrecipient
may elect to have a program -specific audit conducted in accordance with
said Act and Circular. Said audit shall be submitted to the Office of the
Controller of the City within nine (9) months after the end of
Subrecipient's fiscal year for which the audit is performed.
C. Monitoring and Evaluation.
The City reserves the right to monitor and evaluate the progress and performance of the
Subrecipient to assure that the terms of this Contract are being satisfactorily met in
accordance with City and other applicable monitoring and evaluating criteria and
standards. Subrecipient shall cooperate with City relating to such monitoring and
evaluation, and make available to the City any documents or other information requested
by the City or relevant to the City's monitoring and evaluation.
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D. Reporting and Payment Procedures.
1. Budgets.
A detailed contract budget for Subrecipient's proposed project, as described in
Exhibit C, and the specific use of the funds provided to Subrecipient under this
and other City grant programs, is included as Exhibit A, attached hereto and
incorporated herein by this reference.. The City and the Subrecipient may revise
the budget from time to time in accordance with existing City policies, by
amendment of this Agreement.
2. Program Income.
The Subrecipient shall report yearly all program income, as defined at 24 CFR
570.500(a) generated by activities carried out with CDBG and/or HOME funds
made available under this Contract, including, but not limited to, any rental
income or income derived from the sale of the property. The use of program
income by the Subrecipient shall comply with the requirements set forth at 24
CFR 570.504. By way of further limitations, the Subrecipient may use such
income during the Contract period for activities described in the attached Scope of
Services and shall report any such income received and allocated to the Work to
the City and reduce requests for additional funds by the amount of any such
program income balances on hand. All program income not used in accordance
with this Section shall be returned to the City at the end of the Contract period.
Any interest earned on cash advances from the U.S. Treasury is not program
income and shall be remitted promptly to the City.
3. Indirect Costs.
If indirect costs are charged, the Subrecipient will develop an indirect cost
allocation plan for determining the appropriate City share of administrative costs
and shall submit such plan to the City for approval prior to submission of requests
for any payments for the same.
4. Payment Procedures.
The City will pay to the Subrecipient funds available under this Contract based
upon information submitted by the Subrecipient and consistent with any approved
budget and City policy concerning payments. With the exception of certain
advances, payments will be made for eligible expenses actually incurred by the
Subrecipient, and not to exceed actual cash requirements. Payments will be
adjusted by the City in accordance with advance fund and program income
balances available in Subrecipient accounts. In addition, the City reserves the
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right to liquidate funds available under this Contract for costs incurred by the City
on behalf of the Subrecipient.
5. Progress Reports.
The Subrecipient shall submit regular Progress Reports to the City in the form,
content and frequency as required by the City.
E. Procurement.
1. Compliance.
The Subrecipient shall comply with current City policy concerning the purchase of
equipment and shall maintain an inventory record of all non -expendable personal
property as defined by such policy as may be procured with funds provided herein.
All program assets (unexpended program income, property, equipment, etc.) shall
revert to the City upon termination of this Contract, except as otherwise
specifically provided.
2. Applicable Standards.
The Subrecipient shall procure materials in accordance with the requirements of
24 CFR Part 85.36, covering procurement, and shall subsequently follow 24 CFR
Parts 85.31 and 85.32, covering utilization and disposal of property.
3. Relocation, Acquisition and Displacement.
The Subrecipient agrees to comply with 24 CFR 570.606 relating to the
acquisition and disposition of all real property utilizing grant funds and to the
displacement of persons, businesses, non-profit organizations and farms occurring
as a direct result of any acquisition of real property utilizing grant funds.
4. Property Acquired With Program Funds.
Subrecipient agrees to use all personal assets and all real property, acquired or
improved, in whole or in part, with CDBG/HOME funds, as set forth in Exhibit
A. In the event Subrecipient ceases to use a personal asset or real property
acquired or improved, with CDBG/HOME funds, in accordance with Exhibit A,
the Subrecipient shall return the personal asset or real property to the City, or pay
to the City a sum equal to its fair market value, less any portion of the value
attributable to expenditures of non-CDBG/HOME funds for the acquisition of, or
improvement to, the asset or property. The Subrecipient shall transfer to the City
any CDBG/HOME funds on hand at the time of expiration of this Contract and
any accounts receivable of CDBG/HOME funds.
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5. No Liens on Items or Property.
At the time of obtaining title or possession of any personal or real property listed
in Exhibit D, attached hereto and incorporated herein by this reference,
Subrecipient agrees to provide to the City, through an appropriate lien, deed of
trust, or other security instrument, such evidence of the security interest in said
property under this Agreement as the City may deem appropriate, based upon the
nature of the property, the Scope of Services, the potential term of the security
interest, and such other reasonable considerations as the City may deem
appropriate in protecting its interest in the funds provided hereunder.
Subrecipient further agrees that in addition to, or in lieu of the above, the City
may require the execution and recordation of Deed Restrictions on real property
purchased in connection herewith, in order to protect the City's interest in the
funds provided hereunder.
VM. Personnel and Participant Conditions.
A. Civil Rights.
Compliance.
The Subrecipient agrees to comply with Chapter 13, Article II, of the City Code
and Title 24, Article 34, Parts 3 through 7, C.R.S., and with Title VI of the Civil
Rights Act of 1964, as amended, Title VM of the Civil Rights Act of 1968, a,
amended, Section 109 of Title 1 of the Housing and Community Development
Act of 1974, Section 504 of the Rehabilitation Act of 1973, the Americans With
Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order
11063, and with Executive Order 11246, as amended by Executive Orders 11375
and 12086.
2. Nondiscrimination.
The Subrecipient will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national origin, sex,
disability or other handicap, age, marital status, or status with regard to public
assistance. The Subrecipient will take affirmative action to ensure that all
employment practices are free from such discrimination. Such employment
practices include but are not limited to the following: hiring, upgrading, demotion,
transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or
other forms of compensation and selection for training, including apprenticeship.
The Subrecipient agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the City setting forth the
provisions of this nondiscrimination clause.
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ARTICLE 1. DEFINITIONS
The definitions of terms in the HOME and/or CDBG Agreement (as
applicable) shall be used as definitions of terms in this Agreement.
ARTICLE 2. TERM; RECORDATION; BINDING EFFECT
The term of this Agreement shall be five (5) years, commencing upon
the Project Completion, unless such term is extended or earlier terminated.
This Agreement shall be recorded as a restrictive covenant in the Office of the
Larimer County, Colorado, Clerk and Recorder. This Agreement, and the
terms and conditions hereof, shall run with the land and shall be binding
upon and inure to the benefit of the parties hereto, and their respective
successors and assigns, as provided herein.
ARTICLE 3. RESTRICTED UNITS
a. During the Period of Affordability, all Project units will be held for
rental in a manner which qualifies the Project as affordable housing under the
HOME Program provisions of 24 CFR92.252 and 24 CFR 92.254, if
applicable.
b. During the Period of Affordability, the Developer will mmply with
24 CFR 92.252 and 24 CFR 92.254, if applicable, concerning tenant and
participant protections.
C. Notwithstanding anything contained in this Article to the
contrary, the Developer shall have the right to make the units subject to more
restrictive rental restrictions than those provided for in 24 CFR 92.252.
d. The foregoing references to HOME Program provisions and
requirements shall apply to the Project whether it receives HOME Program
Funding, CDBG Program Funding, or both.
ARTICLE 4. INSPECTION
The Developer shall cooperate fully with City in undertaking and
operating the Project and shall afford reasonable access to the Project during
normal working hours upon twenty four (24) hours written notice from the
City.
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3. Land Covenants.
This contract is subject to the requirements of Title VI of the Civil Rights Act of
1964 (P.L. 88-352) and 24 CFR 570 Part 1. In regard to the sale, lease or other
transfer of land acquired, cleared or improved with assistance provided under this
Contract, the Subrecipient shall cause or require a covenant running with the land
to be inserted in the deed or lease for such transfer, prohibiting discrimination as
herein defined, in the sale, lease or rental, or in the use or occupancy of such land,
or in any improvements erected or to be erected thereon, providing that the
Subrecipient and the United States are beneficiaries of and entitled to enforce such
covenants. The Subrecipient, in undertaking its obligation to carry the program
assisted hereunder, agrees to take such measures as are necessary to enforce such
covenant and will not itself so discriminate.
4. Section 504.
The Subrecipient agrees to comply with any federal regulations issued pursuant to
compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 706),
which prohibits discrimination against the handicapped in any federally -assisted
program. The contracting agency shall provide the Subrecipient with any
guidelines necessary for compliance with that portion of the regulations in force
during the term of this Contract.
B. Affirmative Action.
Approved Plan.
The Subrecipient agrees that it shall be committed to carry out pursuant to the
City's specifications an Affirmative Action Program in keeping with the principles
as provided in President's Executive Order 11246 of September 24, 1965. The
City shall provide Affirmative Action guidelines to the Subrecipient to assist in
the formulation of such program. The Subrecipient shall submit a plan for an
Affirmative Action Program for approval prior to the award of funds.
2. W/MBE.
The Subrecipient will use its best efforts to afford minority and women -owned
business enterprises the maximum practicable opportunity to participate in the
performance of this Contract. As used in this Contract, the term "minority and
female business enterprise" means a business at least fifty-one (51) percent owned
and controlled by minority group members or women. For the purpose of this
definition, "minority group members" are Afro-Americans, Spanish-speaking,
Spanish surnamed or Spanish -heritage Americans, Asian -Americans and
American Indians. The Subrecipient may rely on written representations by
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Subrecipients regarding their status as minority and female business enterprises in
lieu of an independent investigation.
3. Access to Records.
The Subrecipient shall furnish and cause each of its subSubrecipients to fumish
all information and reports required hereunder and will permit access to its books,
records and accounts by the City, HUD, or its agent, or other authorized federal
officials for purposes of investigation to ascertain compliance with the rules,
regulations and provisions stated herein.
4. Notifications.
The Subrecipient will send to each labor union or representative of workers with
which it has a collective bargaining agreement or other contract or understanding,
a notice, to be provided by the agency contracting officer, advising the labor union
or workers' representative of the Subrecipient's commitments hereunder, and shall
post copies of the notice in conspicuous places available to employees and
applicants for employment.
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5. EEO/AA Statement.
The Subrecipient will, in all solicitations or advertisements for employees placed
by or on behalf of the Subrecipient, state that it is an Equal Opportunity or
Affirmative Action employer.
6. Subcontract Provisions.
The Subrecipient will include the provisions of Paragraphs VIII A, Civil Rights,
and B, Affirmative Action, in every subcontract or purchase order, specifically or
by reference, so that such provisions will be binding upon each subSubrecipient or
vendor.
C. Employment Restrictions.
Prohibited Activity.
The Subrecipient is prohibited from using funds provided herein or personnel
employed in the administration of the program for political activities; s ctarian or
religious activities; lobbying, political patronage and nepotism activities.
2. OSHA.
Where employees are engaged in activities not covered under the Occupational
Safety and Health Act of 1970, they shall not be required or permitted to work, be
trained or receive services in buildings or surroundings or under working
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conditions which are unsanitary, hazardous or dangerous to the participants' health
or safety.
3. Right to Know.
Participants employed or trained for inherently dangerous occupations, e.g., fire or
police jobs, shall be assigned to work in accordance with reasonable safety
practices. The Subrecipient will comply with all applicable "Right to Know"
Acts.
4. Labor Standards.
a. The Subrecipient agrees to comply with the requirements of the Secretary
of Labor in accordance with the Davis -Bacon Act as amended, the
provisions of Contract Work Hours, the Safety Standards Act, the
Copeland "Anti -Kickback" Act (40 U.S.C. 276, 327-333) and all other
applicable federal, state and local laws and regulations pertaining to labor
standards insofar as those acts apply to the performance of this Contract.
The Subrecipient shall maintain documentation which demonstrates
compliance with hour and wage requirements of this part. Such
documentation shall be made available to the City for review upon requtst.
b. The Subrecipient agrees that, except with respect to the rehabilitation or
construction of residential property designed for residential use for less
than eight (8) units, all contractors engaged under contracts in excess of
Two Thousand Dollars ($2,000) for construction, renovation or repair of
any building or work financed in whole or in part with assistance provided
under this Contract, and/or with respect to the rehabilitation a
construction of residential property where there are more than 12 HOME -
assisted units, the Subrecipient shall comply with federal requirements
adopted by the City pertaining to such contracts and with the applicable
requirements of the regulations of the Department of Labor, under 29 CFR
Parts 3, 1, 5 and 7 governing the payment of wages and ratio of
apprentices and trainees to journeymen; provided, that if wage rates higher
than those required under the regulations are imposed by state or local law,
nothing hereunder is intended to relieve the Subrecipient of its obligation,
if any, to require payment of the higher wage.
5. "Section 3" Clause.
a. Compliance.
Compliance with the provisions of Section 3 of the Housing and Urban
Development Act of 1968, as amended, 12 U.S.C. 1701, the regulations
set forth in 24 CFR 135, and all applicable rules and orders issued
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hereunder prior to the execution of this Contract, shall be a condition of
the federal financial assistance provided under this Contract and binding
upon the City, the Subrecipient and any subSubrecipients. Failure to fulfill
these requirements shall subject the City, the Subrecipient and any
subSubrecipients, their successors and assigns, to those sanctions specified
by the Contract through which federal assistance is provided. The
Subrecipient certifies and agrees that no contractual or other disability
exists which would prevent complaint with these requirements.
The Subrecipient further agrees to comply with these "Section 3"
requirements and to include the following language in all subcontracts
executed under this Contract:
The work to be performed under this contract is a project
assisted under a program providing direct federal financial
assistance from HUD and is subject to the requirements of
Section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C. 1701. Section 3 requires that
to the greatest extent feasible opportunities for training and
employment be given to lower income residents of the
project area and contracts for work in connection with the
project be awarded to business concerns which are located
in, or owned in substantial part by persons residing in the
areas of the project.
The Subrecipient certifies and agrees that no contractual or other disability
exists which would prevent compliance with the requirements.
b. Notifications.
The Subrecipient agrees to send to each labor organization or
representative of workers with which it has a collective bargaining
agreement or other contract or understanding, if any, a notice advising said
labor organization or workers' representative of its commitments under
this Section 3 clause and shall post copies of the notice in conspicuous
places available to employees and applicants for employment or training.
C. Subcontracts.
The Subrecipient will include this Section 3 clause in every subcontract
and will take appropriate action pursuant to the subcontract upon a finding
that the Subrecipient is in violation of regulations issued by the City. The
Subrecipient will not subcontract with any subSubrecipient where it has
notice or knowledge that the latter has been found in violation of
regulations under 24 CFR 135 and will not let any subcontract unless the
14
subSubrecipient has first provided it with a preliminary statement of
ability to comply with the requirements of these regulations.
D. Conduct.
1. Assignability.
The Subrecipient shall not assign or transfer any interest in this Contract or any
property obtained using the funds provided under this Contract without the prior
written consent of the City thereto; provided, however, that claims for money due
or to become due to the Subrecipient from the City under this Contract may be
assigned to a bank, trust company or other financial institution without such
approval. Notice of any such assignment or transfer shall be furnished promptly
to the City.
2. Conflict of Interest.
The Subrecipient agrees to abide by the provisions of 24 CFR 570.611 with
respect to conflict of interest, and covenants that it presently has no financial
interest and shall not acquire any financial interest, direct or indirect, which would
conflict in any manner or degree with the performance of services required under
this Contract. The Subrecipient further covenants that in the performance of this
Contract, no person having such a financial interest shall be employed or retained
by the Subrecipient hereunder. These conflict of interest provisions apply to any
person who is an employee, agent, consultant, officer or elected official or
appointed official of the City, or of any designated public agencies or
subrecipients which are receiving funds under the HOME and/or CDBG
Entitlement program.
3. Subcontracts.
a. Approvals.
The Subrecipient shall not enter into any subcontracts with any agency or
individual in the performance of this Contract without the written consent
of the City prior to the execution of such contract.
b. Monitoring.
The Subrecipient will monitor all subcontracted services on a regular basis
to assure compliance with both this Contract and the applicable
subcontract. Results of monitoring efforts shall be summarized in written
reports and supported with documented evidence of follow-up actions
taken to correct areas of noncompliance.
15
C. Content.
The Subrecipient shall cause all of the provisions of this Contract in its
entirety to be included in and made a part of any subcontract executed in
the performance of this Contract.
d. Selection Process.
The Subrecipient shall undertake to ensure that all subcontracts let in the
performance of this Contract shall be awarded in a fair and open
competition basis. Executed copies of all subcontracts shall be forwarded
to the City, along with documentation concerning the selection process.
4. Copyright.
If this Contract results in any copyrightable material, the City reserves the right to
royalty -free, non-exclusive and irrevocable license to reproduce, publish or
otherwise use and to authorize others to use, the work for government purposes.
5. Religious Organization.
The Subrecipient agrees that funds provided under this Contract will not be
utilized for religious activities, to promote religious interests, or for the benefit of
a religious organization in accordance with the federal regulations specified in 24
CFR 570.2000).
IX Environmental Conditions.
No funds shall be obligated or expended until an Environmental Review is completed and
accepted by the City of Fort Collins.
A. Air and Water.
The Subrecipient agrees to comply with the following laws and regulations, along with
any other environmental or public health related laws or regulations, insofar as they apply
to the performance of this Contract:
• Clear Air Act, 42 U.S.C., 1857, et seq.;
• Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et seq., as
amended 1318 relating to inspection, monitoring, entry, reports and information, as
well as other requirements specified in said Section 114 and Section 308, and all
regulations and guidelines issued thereunder;
• Environmental Protection Agency (EPA) regulations pursuant to 40 CFR, Part 50, as
amended;
• National Environmental Policy Act of 1969; and
16
HUD Environmental Review Procedures (24 CFR Part 58).
B. Flood Disaster Protection.
The Subrecipient agrees to comply with the requirements of the Flood Disaster Protection
Act of 1973 (P.L. 2234) in regard to the sale, lease or other transfer of land acquired,
cleared or improved under the terms of this Contract, as it may apply to the provisions of
this Contract. Compliance measures may include, but are not limited to, maintaining
flood insurance, structural adaptation or other mitigation as required.
C. Lead -based Paint.
The Subrecipient agrees that any construction or rehabilitation of residential structures
with assistance provided under this Contract shall be subject to HUD Lead -based Paint
Regulations at 24 CFR 570.608, and 24 CFR Part 35, and in particular Subpart B thereof.
Such regulations pertain to all HUD -assisted housing and require that all owners,
prospective owners, and tenants or properties constructed prior to 1978 be properly
notified that such properties may include lead -based paint, and shall be inspected for lead
hazards prior to purchase or rehabilitation.
D. Historic Preservation.
The Subrecipient agrees to comply with the Historic Preservation requirements set forth
in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the
procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation
Procedures for Protection of Historic Properties, insofar as they apply to the performance
of this Contract.
In general, this requires concurrence from the State Historic Preservation Officer for all
rehabilitation and demolition of historic properties that are fifty (50) years or older or that
are included on a federal, state or local historic property list.
X. Entire Agreement/Governing Law.
The provisions set forth in Items I -IX, and all attachments of this Contract constitute the
entire agreement between the parties hereto and no statement, promise, conditions,
understanding, inducement or representation, oral or written, express or implied, which is not
contained herein shall be binding or valid. This Contract shall be governed under the laws of the
State of Colorado. The application for funding received on August 8, 2004 is hereby
incorporated by reference.
17
IN WITNESS WHEREOF, the parties have executed this Contract as of the date of the
most recent signatory.
ATTEST( q
City Clerk
APPROV � AS FORM:
Deputy City Attorn y
ATTEST:
az.slAeTreiaij
(Corporate Seal)
THE CITY OF FORT COLLINS, COLORADO
A Municipal Corporation
By: Date 4 5 Q�
Darin A. Atteberry, City Nf anager
FOWeo0ardLPresidentINS HOUSING CORPORATION
ByDate y
Tit
Fed. I.D. Number: 74-2177138
18
EXHIBIT A
SCOPE OF SERVICES
1. Project Description and Objectives: The Fort Collins Housing Corporation will receive a
loan of $136,455 for the rehabilitation of Single -Room -Occupancy units located at 300 First
Street (see Exhibit C for list of approved rehabilitation items).
2. Terms of the Loan: The loan is due and payable upon sale or transfer. The amount due will
be the principle ($136,455) plus a 5% simple interest fee ($6,772.00) also due on sale or
transfer for a total due of $143,277.00.
3. Affirmative Marketing: Projects with five (5) or more units must have an Affirmative
Marketing Plan submitted to and approved by the City of Fort Collins prior to the release of
funds.
4. Low and Moderate Income Benefit. The units are currently occupied by households with
income at or less than 50% of the area median income. Income limits are attached to this
document as Exhibit `B-1" and may be amended as necessary. The grantee shall determine
annual income of the Project beneficiaries using Section 8 Housing Program income
definitions as per 24 CFR Part 813 and shall ensure that the property continues to benefit
only low-income residents.
5. Affordability —Area median incomes and Fair Market Rents are annually adjusted by the
department of Housing and Urban Development (HUD). Rent and income levels must be
reviewed annually for compliance with the above requirements. The Fair Market Rent
schedule, as set forth in Exhibit `B-2" is attached hereto and is incorporated herein by
reference, or as subsequently promulgated in writing by the City. The Grantee shall ensure
that all of the units in the Project continue to be used to provide housing for low and
moderate income persons at affordable rents in compliance with HOME regulations. One
SRO unit will be designated a "HOME -assisted unit" and will be monitored for compliance
with HOME rents during the 5-year affordability period.
6. Deed Restriction: The City shall be responsible for executing a deed restriction that will
ensure that the property will remain affordable without regard to the term of any mortgage or
the transfer of ownership for not less than five years.
7. Tenant and Participants Protection: The lease between a tenant and an owner of rental
housing must be for not less than one year, unless by mutual agreement between the tenant
and the owner. The lease may not contain any of the prohibited lease terms listed in 24 CFR
Part 92.
S. Program Income: All revenues received by the grantee which result directly from an
assisted activity shall be considered program income. Program income includes, but is not
limited to, principal and interest payments and proceeds from the sale of acquired assets. All
program income is subject to all federal requirements: however, it is agreed that program
income resulting from the above rehabilitation may be used to further enhance the property.
9. Contract Administration. Fort Collins Housing Corporation shall be responsible for the
administration of the contract.
10. City Monitoring. The City of Fort Collins CDBG Program will monitor this project.
1
11. Housing Standards. These units will, at a minimum, meet the HUD Section 8 Housing
Quality Standards for Existing Housing contacted in 24 CFR 882.109, incorporated by
reference, and all applicable local and state building codes and standards.
12. Environmental Standards. Prior to release of funds, the property must undergo an
environmental review.
13. Lead Paint Hazards. The property was built after January 1, 1978 and lead paint
regulations are not applicable.
14. Davis -Bacon Fair Labor Standards: The grantee shall comply with all the requirements of
the Davis -Bacon Fair Labor Standards Act
15. Time of Performance. The Project shall commence upon the full and proper execution of
this Contract and shall be completed on or before December 31, 2005. However, the Project
time of Performance may be extended by letter, subject to mutual agreement of the City and
the Contractor. To initiate this process, a written request shall be submitted to the City by the
Contractor at least sixty (60) days prior to December 31, 2005 and shall include a full
justification for the extension request.
ARTICLE 5. DEFAULT/ENFORCEMENT
Failure or delay by the Developer to perform any term or provision of
this Agreement constitutes a default under this Agreement provided, however,
the Developer shall not be deemed to be in default if the Developer cures,
corrects or remedies such default within sixty (60) days after receipt of a
notice from the City of the default. The City may not institute proceedings
against the Developer in default until the time for cure, correction, or remedy
of a default has expired. Subject to the obligations of the City to first provide
the notice of default and allow the opportunity to cure as provided above, in
the event of a default, the City may declare the Developer ineligible for any
further participation in future City HOME and/or CDBG Agreements, in
addition to other remedies as provided by law; and may withhold the Grant
and/or Loan funds until such time as the default is cured. Upon any default
of the Developer under this Agreement, the City may seek specific
performance of this Agreement
ARTICLE 6. EFFECT OF COVENANTS
The City is deemed beneficiary of the terms and provisions of this Agreement
and of the restrictions and covenants running with the land for and in its own
right and for the purpose of protecting the interests of the community and other
parties, public or private, in whose favor and for whose benefit the covenants
running with the land have been provided. The covenants in favor of the City
shall run without regard to whether the City has been, remains, or is an owner d
any land or interest therein in the Project.
ARTICLE 7. GENERAL PROVISIONS.
a. Concurrent Remedy. No right or remedy herein conferred on or
reserved to City is exclusive of any other right or remedy herein or by law or equity
provided or permitted; but each shall be cumulative of every other right or remedy
given hereunder or now or hereafter existing by law or in equity or by statute or
otherwise, and may be enforced concurrently therewith or from time to time.
b. Waiver. No covenant or condition of this Agreement can be waived
except by the written consent of the party to be charged, signed by the appropriate
authorities of that party. Forbearance or indulgence by one party in any regard
3
EI Mrr A 2
SCHEDULE FOR COMPLETION
The project shall be completed on or before December 31, 2005.
EXHIBIT B-1
INCOME MARTS
2004 Income Limits
Income Limits (as of 211/04)
2004 Median Income for a Family of 4: S66,500
(Fort Collins/Loveland Metropolitan Statistical Area)
14nusphnid Mpmhprc
Income
04
04, 31,
Nails"
'ON ret 4"'SMN
tilrgoisos
V"
:VP
1000/0 of
median
46,562
53,187
59,875
66,500
71.812
77,125
82,437
87,750
80% of median
-
37,250
42,550
47,900
53,200
57,450
61,700
65,950
70,200
60% of
median
27,937
31,912
35,925
39,900
43,087
46,275
49,462
52,650
50% of
median
23,300
26,600
29,950
33,250
35,900
38,550
41 1 250
43,900
30% of
median
13,950 1
15,950 1
17,950 1
19,950 1
21,550
23,150 1
24,750 1
26,350
EXHIBIT B-2
HOME Rents (3/10/04) (includes utilities)
Fair Market Rents as of 11 /04/2004
Rent
0 bdrna ;:
1 bdrm -'
2dnn
3 bdun`-
4 bdrin-
5 bdrtii ;,,
6-bcirin
484
597
739
864
963
1064
1163
Low
HOME
484
597
739
1026
1196
1301
1407
High
HOME
516
619
750J8(64
92
1273
FAIR
MARKET
�0�°iRent
582
623
748
963
1064
1163
�5%iRent
736
790
95090
1196
1301
1407
5
Funding Available:
EXHIBIT C
PROJECT BUDGET
HOME
$1369455
Eligible Costs: Rehabilitation Detail by order of priority:
Work Items Estimated Cost
Replace Roofing
$ 49500
Replace vinyl siding
79500
Replace/Remove Concrete
1,800
Add Manager Apartment
239450
Replace Interior Doors
39500
Replace Locks
1,750
Reconstruct Foundation
129000
Professional Engineering
2,500
Architectural Services
29500
Replace heating equipment/AC
159000
Replace water heaters
19500
Kitchen upgrades
39400
Repair drywall
29800
Repaint interior
19800
Security lighting
19000
Pruning/tree removals
59000
Resurface Parking Lot
49500
Landscape for positive drainage
39000
Replace gutters and downspout
1,200
Replace flooring
4,500
New windows
89500
Entry doors
700
Electrical updating
39500
Irrigation
49500
Tub surrounds/plumbing
3,600
Admin fee 10%
129405
TOTAL
$136,455
C
EXHIBIT D
Legal Description
Lots Thirteen (13) and Fourteen (14), Block Eight (8), BUCKINGHAM PLACE, Fort
Collins, Larimer County.
whatsoever shall not constitute a waiver of the covenant or condition to be
performed by the other party. A waiver of one covenant or condition by one party
does not grant or imply a waiver of any other covenant or condition to be
performed by the other party. Each party shall be entitled to invoke any remedy
available to it under this Agreement or by law or in equity despite said forbearance
or indulgence.
C. Entire Agreement and Amendments. This Agreement integrates all of
the terms and conditions mentioned herein, or incidental hereto, and supersedes
all negotiations and previous agreements between the parties with respect to all or
any part of the subject matter hereof. All references herein to this Agreement
shall mean and include the Exhibits hereto unless the context otherwise requires.
All amendments and modifications hereto must be in writing and signed by the
appropriate authorities of the City and the Developer.
d. Severability. If any term, provision, covenant, or condition of this
Agreement is held by a court of competent jurisdiction to be iravalid, void, or
unenforceable, the remainder of this Agreement shall not be affected thereby to
the extent such remaining provisions are not rendered impractical to perform
taking into consideration the purposes of this Agreement. In the event that all or
any portion of this Agreement is found to be unenforceable, this Agreement or that
portion which is found to be unenforceable shall be deemed to be a statement of
intention by the parties; and the parties further agree that in such event, and to
the maximum extent permitted by law, they shall take all steps necessary to
comply with such procedures or requirements as may be necessary in order to
make valid this Agreement or that portion which is found to be unenforceable.
e. Venue. If either party to this Agreement initiates any legal or
equitable action to enforce the terms of this Agreement, to declare the rights of the
parties under this Agreement, or which relates to this Agreement in any manner,
City and the Developer agree that the proper venue for any such action is the
Larimer County, Colorado District Court.
f. Authority of Signatories to Bind Principals The persons executing
this Agreement on behalf of their respective principals represent that they have
been authorized to do so and that they thereby bind the principals to the terms
and conditions of this Agreement.
g. Notices and Demands Between the Parties All notices and demands
between the City and the Developer shall be in writing and shall be given either by
(i) personal service, (ii) delivery by reputable document delivery service such as
Federal Express that provides a receipt showing date and time of delivery, or (iii)
E
mailing in the United States mail, certified mail, postage prepaid, return receipt
requested, addressed to the Developer as follows:
Developer's Address:
Fort Collins Housing Corporation
1715 West Mountain Avenue
Fort Collins CO 80521
Notices personally delivered or delivered by document delivery service shall be
deemed effective upon receipt. Notices mailed shal be deemed effective on the
fifth business day following deposit in the United States mail. Such written
notices and demands shall be sent in the same manner to such other addresses
as either party may from time to time designate by mail.
h. Assignment and Transfer.
a. The Developer shall have the right to sell, transfer, convey and
assign the Project and its rights and obligations under this Agreement at
any time subject to the prior written consent of the City, which consent
shall not be unreasonably withheld, provided, however, that such City
consent shall not be required in connection with any of the following:
(1) The conveyance or dedication of any portion of the
Project to the City or other appropriate governmental agencies, or the
granting of easements or permits to public utilities to facilitate the
construction of the Project, or
(2) Subject to the rental and/or ownership restrictions set
forth in Article 3 hereof, the rental or sale to affordabilityqualified
buyers of units in the Project, or
(3) The encumbering of the Project by Liens and Mortgages if
subordinate to this Agreement and authorized in the HOME and/or
CDBG Agreement (as applicable) or this Agreement, or
(4) The replacement of personal property or fixtures.
b. All of the terms, covenants and conditions of this Agreement
shall be binding upon the Developer and the permitted successors and
assigns of the Developer. Whenever the term "Developer" is used in this
5
Agreement, such term shall include any other permitted successors and
assigns as herein provided.
h. Counterparts. This Agreement may be executed in counterparts, each
of which shall be deemed to be an original, and such counterparts shall constitute
one and the same instrument.
0
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the date first written hereinabove.
CITY: THE CITY OF FORT COLLIN, COLORADO,
a Municipal Corpor ion
Date: `( `I 05 By: 1 a/ � %A
Darin A. Atteberry
*PhRimCity Manager
ATTEST:
I
City Clerk
113 AV D) Ers) ;j --}.;
Date: a d�
APPRO Fr AS TO FORM:
�=
Deputy City Attorney
FORT COLLINS HOUSING CORPORATION
By:
Printed Name: '1 e fly Q�Sd.c/
Title: Board President
rFA
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
Subscribed and sworn to before me this yU' day of ��, I
f , by Darin A. Atteberry, ash City Manager and Wanda Krajicek, as
City Clerk of the City of Fbrt Collins, Colorado, a Colorado municipal corporation.
WITNESS MY HAND AND OFFICIAL SEAL.
My commission expires:
Notary Public
STATE OF COLORADO )
) ss.
COUNTY OF LARIMER )
[SEAL)
_
before me this / day of
XUV �j , by _ K Ll dam, (J (�
Board President of Developer.
WITNESS MY HAND AND OFFICIAL SEAL.
My commission expires:
0
Public
-,A A.
,ark 0 CA,q '�✓�
i
a
ri at` • F G0 '1�'
My Commission EYPires 02(06129007
/y0 ••''• F
.�rn
L/C ;' ZD
�DlORA��
as
EXHIBIT "A"
Legal Description
Lots Thirteen (13) and Fourteen (14), Block Eight (8) BUCKINGHAM PLACE,
Fort Collins, Larimer County.
4