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HomeMy WebLinkAbout108913 FORT COLLINS HOUSING AUTHORITY - CONTRACT - AGREEMENT MISC - FORT COLLINS HOUSING AUTHORITYRECIPIENT CONTRACT FOR COMMUNITY DEVELOPMENT BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP FUNDING THIS RECIPIENT CONTRACT ("Contract") is entered into by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (hereinafter referred to as the . "City") and the HOUSING AUTHORITY OF THE CITY OF FORT COLLINS a body corporate and politic under the laws of the State of Colorado, (hereinafter referred to as the "Subrecipient"), and shall be effective on the date last signed below. WITNESSETH: WHEREAS, the City has applied for and received funds from the United States Government under Title i of the Housing and Community Development Act of 1974, Public Law 93-383 and under Title II 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. WHEREAS, the Subrecipient wishes to loan the City funds to REDTAIL PONDS PERMANENT SUPPORTIVE HOUSING, LLLP, a Colorado limited liability limited partnership(the "Sub-subrecipient'�, which will be the owner of the proposed project; and WHEREAS, as of the date of this Agreement, the Sub-Subrecipient is a wholly -owned subsidiaries of the Sub -recipient; and NOW, THEREFORE, in consideration of the mutual promises of the parties, it is agreed as follows: I. Scope of Services/Performance Monitoring. A. The Sub-subrecipient will develop REDTAIL PONDS PERMANENT SUPPORTIVE HOUSING, (the "Project") on the "Project Property" as described in Exhibit A. The Scope of Services to be performed by Sub-Subrecipient, and monitored by the Subrecipient as a developer, as a condition of receiving funds for the Project pursuant to this Contract, is attached as Exhibit A hereto and made a part of this Contract. Subrecipient agrees to perform, and/or to require Sub- subrecipient 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 Subrecipient will incorporate the terms and conditions of this Contract by reference into any loan agreement for the funds provided hereunder, and make FY12, Redtail Ponds Permanent Supportive Housing 1 compliance with such terms and conditions an obligation of the Sub-subrecipient under such loan agreement. The Sub-subrecipent must comply with all terms and conditions of this Contract unless a particular requirement is not applicable to the Sub-subrecipient because the Sub-subrecipient is not engaged in an activity to which the requirement applies. Subrecipient shall also make the Sub-subrecipient's failure to comply with the applicable terms of this Contract grounds for default under any promissory note and deed of trust securing such loan, if not cured. C. The City will monitor the performance of the Subrecipient and Sub-subrecipient against goals and performance standards required herein. Substandard performance as determined by the City will constitute non-compliance with this Contract. If action to correct such substandard performance is not taken by the Subrecipient or Sub-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, the term of this Contract begins July 12013, and shall continue as long as the Subrecipient or Sub-subrecipient retains control over properties which utilize Community Development Block Grant ("CDBG") and/or HOME funds provided pursuant to this Contract for acquisition, construction or rehabilitation of affordable housing, including income generated from the funds. The City's obligation to provide funding under this Contract shall be effective from JULY , 2013 to JUNE 30, 2015, unless the City grants an extension pursuant to Exhibit A-2, and shall be contingent upon full compliance by Subrecipient and Sub-subrecipient with all terms and conditions set forth herein. III. Payment. I Ste0&y9, If the Subrecipient and Sub-subrecipient are not in default hereunder, and subject to the City's receipt of the Department of Housing and Urban Development CDBG funds, and provided that the Contract and Scope of Services are eligible expenditures of CDBG funds, the City agrees to pay the Subrecipient CDBG funding of THREE HUNDRED TWENTY THREE THOUSAND ONE HUNDRED EIGHT AND N0/100 DOLLARS($323,108.00) and AFFORDABLE HOUSING PROGRAM funding of ONE HUNDRED THIRTY ONE THOUSAND EIGHT HUNDRED NINETY TWO AND N0/100 DOLLARS ($131,892.00) for a total of FOUR HUNDRED FIFTY FIVE THOUSAND AND NO/100 DOLLARS ($455,000.00). The Subrecipient may in turn loan those funds to the Sub-subrecipient, subject to the security requirements described in section VII.E.S.. A one-time payment of $295,351 shall be wired to the title company designated by Subrecipient upon receipt by the City of a properly completed HUD-1 form, for an activity covered by this Contract and done in accordance and compliance with the Scope of Services. The City will withhold a retainage of 5%0 of the CDBG funds until the Subrecipient verifies that the Sub- subrecipient has successfully completed development of the Project through receipt of all temporary certificates of occupancy and submittal to the City of all required documentation, including verification of occupancy of 51% (31) of the affordable rental units. The City will then consider CDBG Requirements to be met and will issue final payment. FYI 2, Redtail Ponds Permanent Supportive Housing 2 In no event shall the City's obligation to make -payment to the Subrecipient hereunder exceed FOUR HUNDRED FIFTY FIVE THOUSAND AND N0/100 DOLLARS ($455,000.00) Payment may be suspended by the City in the event of nonperformance of Subrecipient or Sub- subrecipient. Payment may also be contingent upon certification of the Subrecipient's financial management systems in accordance with the standards specified in Title 24, CFR, Part 85. All funds are provided as a "due -on -sale loan" at five (5) percent simple interest unless otherwise specified in the Scope of Services. Loans also require payment of five percent of the total loan amount to cover the cost of administering the loan, which payment shall be made to the City at the pay-off of the loan. All loans are due in full upon sale or transfer of the Project Property by Sub-subrecipient, unless such sale or transfer is to another qualified entity approved in advance by the City in its reasonable discretion, and this Contract is assigned to and assumed by such entity. All loans are also due in the event the property fails to meet eligibility requirements or a national objective, the applicant commits fraud, deceit or misrepresentation in obtaining funding. IV. Notices. Communications and details concerning this Contract shall be directed to the following Contract representatives: City of Fort Collins: CDBG/HOME Administrator Social Sustainability Dept. City of Fort Collins P.O. Box 580 Fort Collins, CO 80522-0580 (970) 221-6758 Subrecipient: Executive Director HOUSING AUTHORITY OF THE CITY OF FORT COLLINS. 1715 West Mountain Avenue Fort Collins CO 80521 (970) 416-2917 V. Special Conditions. The Subrecipient agrees to comply with, and to require the Sub- subrecipient to comply with, the requirements of this Section'V. A. Compliance with Federal Regulations. 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. B. Compliance with Laws The Subrecipient; in performance of this Agreement, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and other policies and FYI 2, Redtail Ponds Permanent Supportive Housing 3 IN WITNESS WHEREOF, the parties have executed this Contract as of the date of the most recent signatory. �4T C()-Cr� THE CITY OF FORT COLLINS, COLORADO s a Municipal Corporation iV By: p ian-eJones, e tyCity Manager • •O© ATTEST: OLO City Clerk APPRO D ' S TO FORM: Sr. Ass' ant ty Attorney HOUSING AUTHORITY OF THE CITY OF FORT COLLINS a body corporate and politic y% Date 71ds/exx Boar president Date /�; UI� i •e i�ire�tn V v: Fed. I.D. Number: 84-0691948 ATTEST: /J .\. Board SecAtary (Corpora eal) FYI 2, Redtail Ponds Permanent Supportive Housing 23 co' IZ 0 �� Q�-7 RECIPIENT CONTRACT FOR COMMUNITY DEVELOPMENT • BLOCK GRANT AND HOME INVESTMENT PARTNERSHIP FUNDING THIS RECIPIENT CONTRACT ("Contract") is entered into by and between THE CITY OF FORT COLLINS, COLOR -ADO, a municipal corporation (hereinafter referred to as the "City") and the HOUSING AUTHORITY OF THE CITY OF FORT COLLINS a body corporate and politic under the laws of the State of Colorado, (hereinafter referred to as the "Subrecipient"), and shall be effective on the date last signed below. WITNESSETH: WHEREAS, the City has applied for and received funds from the United States Government under Title I of the Housing and Community Development Act of 1974, Public Law 93-383 and under Title II 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. WHEREAS, the Subrecipient wishes to loan the City funds to REDTAIL PONDS PERMANENT SUPPORTIVE HOUSING, LLLP, a Colorado limited liability limited partnership(the "Sub-subrecipient" ), which will be the owner of the proposed project; and, WHEREAS, as of the date of this Agreement, the Sub-subrecipient is a wholly -owned subsidiaries of the Sub -recipient; and NOW, THEREFORE, in consideration of the mutual promises of the parties, it is agreed as follows: I. Scope of Services/Performance Monitoring. A. The Sub-subrecipient will develop REDTAIL PONDS PERMANENT SUPPORTIVE HOUSING, (the "Project") on the "Project Property" as described in Exhibit A. The Scope of Services to be performed by Sub-subrecipient, and monitored by the Subrecipient as a developer, as a condition of receiving funds for the Project pursuant to this Contract, is attached as Exhibit A hereto and made a part of this Contract. Subrecipient agrees to perform, and/or to require Sub- subrecipient 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 Subrecipienes part to be performed hereunder. B. The..Subrecipient will incorporate the terms and conditions of this Contract by reference into any loan agreement for the funds provided hereunder, and make FYI 1, Redtail Ponds Permanent Supportive Housing V compliance with such terms and condition's an obligation of the Sub-subrecipient under such loan agreement. The Sub-subrecipent must comply with all terms and 'conditions of this Contract unless 'a 'particular requirement' is not applicable to the . Sub-subrecipient because the Sub-subrecipient is not engaged in an activity to which the requirement applies. Subrecipient shall also make the Sub-subrecipient's failure to comply with the applicable terms of this Contract grounds for default under any promissory note and deed of trust securing such loan, if not cured. . C. The City will monitor the performance of the Subrecipient and Sub-subrecipient against goals and performance standards required herein. Substandard performance as determined by the City will constitute non-compliance with this Contract. If action to correct such substandard performance is not taken by the Subrecipient or Sub-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, the term of this Contract begins July 2013, and shall continue as long as the Subrecipient or Sub-subrecipient retains control over properties which utilize Community Development Block Grant ("CDBG") and/or HOME funds provided pursuant to this Contract for acquisition, construction or rehabilitation of affordable housing, including income generated from the funds. The City's obligation to provide funding under this Contract shall be effective from JULY , 2013 to JUNE 30, 2015, unless the City grants an extension pursuant to Exhibit A-2, and shall be contingent upon full compliance by Subrecipient and Sub=subrecipient with all terms and conditions set forth herein. III. Payment. If the Subrecipient and Sub-subrecipient are not in default hereunder, and subject to the City's receipt of the Department of Housing and Urban Development HOME funds, and provided that the Contract and Scope of Services are eligible expenditures of HOME funds, the City agrees to pay the Subrecipient HOME funding of FOUR HUNDRED EIGHTY EIGHT THOUSAND FIVE HUNDRED FIFTY THREE AND N0/100 DOLLARS($488,553.00) and AFFORDABLE HOUSING PROGRAM funding of NINETY SEVEN THOUSAND FIVE HUNDRED TWENTY FOUR AND NO/100 DOLLARS ($97,524.00) for a total of FIVE HUNDRED EIGHTY SLY THOUSAND SEVENTY SEVEN AND N0/100 DOLLARS '($58G,077.00). The Subrecipient may in turn loan those funds to the Sub-subrecipient, subject to the security requirements described in section VII.E.5. Z�l, uz 9, A one-time payment of $561,649 shall be wired to the title company designated by Subrecipient upon receipt by the City of a properly completed HUD-1 form, for an activity covered by this Contract and done in accordance and compliance with the Scope of Services. The City will withhold a retainage of 5% HOME and/or CDBG funds until the Subrecipient verifies that the Sub-subtecipient has successfully completed development of the Project through receipt of all temporary certificates of occupancy and submittal to the City of all required documentation, including verification of occupancy of the four (4) HOME Assisted affordable rental units. The City will then consider HOME Requirements to be met and will issue final payment. FYI 1, Redtail Ponds Permanent Supportive Housing 2 In no event shall the City's obligation to make payment, to the Subrecipient hereunder exceed FIVE HUNDRED EIGHTY SLY THOUSAND SEVENTY SEVEN AND,NO/100 DOLLARS ($586,077.00). Payment may be suspended by the City in the event of nonperformance of Subrecipient or Sub-subrecipient. Payment may also .be contingent upon certification of the Subrecipient's financial management systems in accordance with the standards specified in Title 24, CFR, Part 85. All funds are provided as a "due -on -sale loan" at five (5) percent simple interest unless otherwise specified in the Scope of Services. Loans also require payment of five percent of the total loan amount to cover the cost of administering the loan, which payment shall be made to the City at the pay-off of the loan. All loans are due in full upon sale or transfer of the Project Property by Sub-subrecipient, unless such sale or transfer is to another qualified entity approved in advance by the City in its reasonable discretion, and this Contract is assigned to and assumed by such entity. All loans are also due in the event the property fails to meet eligibility requirements or a national objective, the applicant commits fraud, deceit or misrepresentation in obtaining funding. IV. Notices. Communications and details concerning this Contract shall be directed to the following Contract representatives: City of Fort Collins: CDBG/HOME Administrator Social Sustainability Dept. City of Fort Collins P.O. Box 580 Fort Collins, CO 80522-0580 (970) 221-6758 Subrecipient: Executive Director HOUSING 'AUTHORITY OF THE CITY OF FORT COLLINS. 1715 West Mountain Avenue Fort Collins CO 80521 (970) 41 G-2917 V. Special Conditions. The Subtecipient agrees to comply with, and to require the Sub- subrecipient to comply with, the requirements of this Section V. A. Compliance with Federal Regulations. The Subrecipient agrees to comply with the requirements of Tide 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. , B. Compliance with Laws The Subrecipient, in performance of this Agreement, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and other policies and FYI 1, Redtail Ponds Permanent Supportive Housing 1 IN WITNESS WHEREOF, the parties have executed this Contract as of the date of the most recent signatory. �A QRT caf"s ATTEST: City Clerk APPROV D ASUO FORM: /q '. I A Sr. Assis ant _ , Attorney THE CITY OF FORT COLLINS, COLOR -ADO a Municipal Corporation Byz Date.07 . �D/3 Diane Jones, C9 uty City Manager HOUSING AUTHORITY OF THE CITY OF.. . FORT COLLINS a body corporate and politic 60 Date / --5s &/3 Date`1f t. /- ATTEST: � )r- v -$oardcretagll (Corpo to Seal) Fed. I.D. Number: 84-0691948 FYI 1, Redtail Ponds Permanent Supportive Housing 23.