HomeMy WebLinkAboutAgreement for the Development of Affordable Rental HousingAGR�fVIENT FOR THE DEVELOPM�IT OF
AFFORDABLE RENTAL HOUSING
THIS AGREEMENT is made and entered into this 29th day of rlarch , 1994, by
and between the City of Arroyo Grande, a political subdivision of the State of California,
hereinafter refened to as "City," and Peoples' Self-Help Housing Corporation, a Califomia
non-profit corporation, hereinafter referred to as "PSHHC," as follows:
WHEREAS, the City and State Department of Housing and Community Development
(HCD) entered into a Grant Agreement for the distribution and use of Community
Development Block Grant (hereinafter referred to as "CDBG") funds awazded to the City, as
Grantee under provisions of Title I of the Federal Housing and Community Development Act
of 1974 and Title IX of the National Affordable Aousing Act of 1990 (hereinafter refened to
as the "Acts") under Grant Number 93-STBG-694; and
WHEREAS, pursuant to and as more fully described in the Grant Agreement, the
grant funds to be received by the City are to be used for the expenses related to land
acquisition and off-site improvements for affordable rentai housing; and
WHEREAS, PSHHC was incorporated for the purpose of promoting better living
condidons for low-income persons through the development of new housing and acquisirion
and repair of existing housing; and
WHEREAS, PSHHC has the expertise and staff for carrying out the CDBG activities
necessary for the land acquisition and off-site improvements
NOW, THEREFORE, IT IS AGREED by and between the parties as follows:
1. Scope of Activities
PSHHC will provide Program Implementation services as follows:
(a) The program activity -- development of Elm Street Apartments
elderly/handicapped rental housing -- consists of land acquisition, demolition,
and off-site improvements of the properties described in the City's 1993
CDBG application (hereinafter referred to as the "application" and
incorporated by reference herein as though set forth in full).
Pursuant to the application, PSHHC will act as project sponsor and manage the
development activity, including finalizing the Regulatory Agreement,
acquisition and escrow proceedings, loan processing and closing for on and off
site improvements, coordination of design and construction, State-approved
procurement process for construction contractors, construction processing,
State and Federal program reporting and recordkeeping requirements, and
other related real estate, finance and technical aspects of the project which are
PSAHC's area of technical expertise. These professional services shall be
reimbursed through funds granted to the City by the State Department of
Housing and Community Development, and budgeted in the CDBG program activity.
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2. Citv Responsibili�i�s `-�
The City shall:
(a) Cooperate with PSHHC in establishing and implementing a Grant Management
system.
(b) Be responsible for timely submittal of drawdown requests to the State
Department of Housing and Community Development and for the timely
distribution to PSHHC of funds requested.
(c) Retain all pertinent books, records, and documents to reflect all costs incurred
by PSHHC for which reimbursement is sought.
(d) Be responsible for providing all local government fee waivers and services as
specified in the CDBG application.
(e) Be responsible for fuifilling responsibilities of the Grantee pursuant to the
City's agreement with the State under Grant Number 93-STBG-694.
3. Renorting
(a) PSHHC shall submit monthly narrative progress reports to the Planning
Director's office describing the progress made toward accomplishing the
project objectives.
4. Term of Agreement
The term of this Agreement shall commence on the date of execudon of this
agreement and shall terminate on March 31, 1996 unless earlier terminated as
hereinafter provided.
5. State of Comoliance
No provision in this agreement shall be inteoded to mitigate or alter the responsibility
of the City for the proper implementation of this program in compliance with all
applicable federal, state, and local regulations.
6. Com�ensation
Subject to the terms and conditions of this agreement, including the availability of
CDBG funds, City shall compensate PSHHC the amounts specified in the 1993
CDBG program budget attached hereto as Exhibit A and incorporated herein by this
reference (hereinafter refened to as the "budget") to enable PSHHC to conduct the
project. In no instance shall the City be liable for any CDBG costs for the project in
excess of this amount, nor for any unauthorized or ineligibie costs. PSHHC shall not
obligate or expend CDBG funds for purposes other than those shown in the budget
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and shali be limitZdin making expenditures or incurring �igations for purposes
shown in any budget category to the amounts budgeted for that category unless the
City Manager approves a budget modification. Payment for the foregoing shall be in
accordance with following procedures:
(a) PSHHC technical assistance shall be invoiced on a milestone basis as oudined
in Exhibit A.
(b) PSHHC shall submit invoices to the City in accordance with the budget
categories and amounts attached in Exhibit A of this agreement.
7. Inspections
(a) The State reserves the right to inspect any work performed hereunder to see
that the work is being and has been performed in accordance with the
applicable federal, State, and/or local requirements, and this agreement.
(b) The City may inspect any work, including bu[ not limited to, books,
documents, papers, and records of PSHHC for a period of not less than three
(3) years from the date of termination of this agreement, to ensure that the
work is in accordance with the applicable Federal, State, and local
requirements.
8. Reimbursement
If at any time within applicable statutory periods of limitation it is determined by
City, or by the State Departmen[ of Housing and Community Development, or its
duly authorized representatives, that funds provided for under the terms of this
agreement have been used by or on behalf of PSHHC in a manner or for a purpose
not authorized or prohibited by said Act or regulations adopted pursuant thereto
PSHHC shail, at City's request, pay to the City an amount equal to one hundred
percent (100%) of any amount expended in violation of said Act or said regulations.
9. Insurance
PSHHC shall maintain for the entire term of this agreement the following insurance
policies:
(a) Liability Insurance -- This comprehensive general and automobile liability
insurance shall include, but not be limited to, protection against claims arising
from bodily and personal injury, including death resulting therefrom, and
damage to property, resulting from any act or occurrence arising out of
PSHHC's operations in the performance of this agreement. The amount of
insurance shall be not less than one million dollars ($1,000,000) per
occurrence for both bodily injury and property damage. The certificate of
insurance shall name City as an additional insured and shall provide that the
City shall be given at least ten (10) days advance notice of cancellation or
reduction in coverage.
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(b) Worker's C Insurance -- In accordance with the provisions of
Labor Code Section 3700, PSHHC is required to insured against liability for
worker's compensation, or to undertake seif-insurance.
(c) PSHHC and any subcontractors shall also maintain unemployment insurance
and State disability insurance as required by the State
(d) If PSHHC fails or refuses to procure or maintain the insurance required by
this agreement, or refuses to fumish the City upon request with required proof
that insurance is in force and paid for, the City shall have the right, at City's
election, to forthwith terminate this agreement.
10. Indemnification
PSHHC shall defend, indemnify and save harmless [he City, its officers, agents and
employees from any and all claims, demands, damages, costs, expenses, judgments,
or liability occasioned by the performance or attempted performance of the provisions
hereof, or in any way arising out of this agreement, including, but not limited to,
those predicated upon theories of violation of statute, ordinance or regulation,
violation of civil rights, or any wrongful act or any negligent act or omission to act
on the part of PSHHC or of agents, employees, or independent contractors directly
responsible to PSHHC.
11. State of California Contract Requirements
During the performance of this agreement, PSHHC agrees as follows:
(a) The Civil Ri�hts. HCD, A�e Discrimination, and Rehabilitation Acts
Assurance
During the performance of this contract, PSHHC assures that no otherwise
qualified person shall be excluded from participation or employment, denied
program benefits, or be subjected to discrimination based on race, color,
national origin, sex, age, or handicap, under any program or activity funded
by this agreement, as required by Title VI of the Civil Rights Act of 1964,
TiUe 1 of the Housing and Community Development Act of 1974, as amended,
the Age Discrimination Act of 1975, and the Rehabilitation Act of 1973, and
implementing regulations.
(b) The Training, Employment. and ContractingOpportunities for Business and
Lower-Income Persons Assurance of Compliance:
(i) The work to be performed under this agreement is on a project assisted
under a program providing direct federal financial assistance from the
Department of Housing and Urban Development and is subject to the
requirements of Section 3 of the Housing and Urban Development Act of
1968, as amended, 12 U.S.C., 1701u. 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
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. the project�de awarded to business concerns which�'�re located in, or owned in
substantial part by persons residing in the azea of the project.
(ii) The parties to this agreement will comply with the provisions of said
Section 3 and the regulations issued pursuant thereto by the Secretary of
Housing and Urban Development set forth in 24 CFR Part 135, and all
applicable rules and orders of the Department issued thereunder prior to the
execution of this agreement. The parties to this agreement certify and agree
that they are under no contractual or other disability which would prevent
them from complying with these requirements.
(iii) PSHHC will include this Section 3 clause in every subcontract for work
in connection with the project and will, at the direction of the applicant for or
recipient of federal financial assistance, take appropriate action pursuant to the
subcontract upon a finding thatthe subcontractor is in violation of regulations
issued by the Secretary of Housing and Urban Development, 24 CFR Part 135
and will not let any subcontrac[ unless the subcontractor has first provided it
with a preliminary statement of ability to comply with the requirements of
these regulations.
(iv) PSHHC will send to each labor organization or representadve of
workers with which they have a collective bargaining agreement or other
contract or understanding, if any, a notice advertising the said labor
organization or worker's representatives of their commitments under this
Section 3 clause and shail post copies of the notice in conspicuous places
available to employees and applicants for employment or training.
(v) Compliance with the provisions of Secdon 3, the regulations set forth
in 24 CFR Part 135, and all applicable rules and orders for the Department
issued thereunder prior to the execution of the agreement shall be a condition
of the federal financial assistance provided to the project, binding upon the
applicant or recipient for such assistance, its successors, and assigns. Failure
to fulfill these requirements shall subject the applicant or recipient, its
contnctors and subcontractors, its successors, and assigns to those sections
specified by the grant or loan agreement or contract through which Federal
assistance is provided, and to such sections as are specified by 24 CFR Part
135.
(c) State Nondiscrimination Clause
(i) During the performance of this agreement, PSHHC and its
subcontractors shall not lawfully discriminate against any employee or
applicant for employment because of race, religion, color, national origin,
ancestry, physical handicap, medical condition, marital status, age (over 40),
or sex. Contractors and subcontractors shall ensure that the evaluation and
treatment of their employees and applicants for employment are free from such
discrimination. Contractors and subcontractors shall comply with the
provisions of the Fair Employment and Housing Act (Government Code
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Section 129Z70 et seq.) and the applicable regulations promulgated thereunder
(Califomia Administrative Code, TiUe 2, Section 7285.0 et seq.). The
applicable regulations of [he Fair Employment and Housing Commission
implementing Government code Section 12990, set forth in Chapter 5 of
Division 4 of Tifle 2 of the California Administrative Code, are incorporated
into this agreement by reference and made a part hereof as if set forth in full.
PSHHC and its subcontractors shall give written notice of their obligations
under this clause to labor organizations with which they have a collective
bargaining or other agreement.
(ii) PSHHC shall include the nondiscrimination and compliance provisions
of this clause in all subcontrac[s to perform work under the agreement.
(iii) PSHHC shall take affirmative actions to assure that small,
disadvantaged, women, and minority business enterprises are utilized when
possible as contractors for supplies, equipment, construc[ion, and services.
(d) Assurance of Compliance with Requirements Placed on Rehabilitation
Contracts/Subcontracts in Excess of $10.000:
In addition to the requirements above, if the contracdsubcontract is for housing
rehabilitation costing more than $10,000 and is between a property owner and
a contractor, PSHHC shall inser[ in the solicitation for bid and contract the
following phrase: "The contractor hereby agrees to abide by the requirements
of Executive Order 11246 and all implementing regulations of the Department
of Labor. "
(e) Labor Standards
(i) State Labor Standards Provisions -- PSHHC shall give the following
certification to the city and forward this certification to the City wi[hin ten (10)
days after the execution of this contract. PSHHC will further agree that these
certifications will be required of all subconuactors.
"I am aware of the provisions of Section 1720 et seq. of the California Labor
Code which requires that the state prevailing wage rate shall be paid to
employees where this rate exceeds the federal wage rate."
"I am aware of the provisions of Section 3700 of the Labor Code which
requires every employee to be insured against liability for workers
compensation or to undertake self-insurance in complying with such provisions
before commencing the performance of the work of this contract."
"It is further agreed that, except as may be provided in Section 1815 of the
California Labor Code, the maximum hours a worker is to be employed is
limited to eight hours a day and 40 hours a week and the subcontract shall
forfeit, as a penalty, $25 for each worker employed in the execution of the
subcontract for each calendar day during which a worker is required or
permitted to labor more than eight hours in an calendar day or more than 40
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hours in a�r� calendar week." �
(ii) Federal Labor Standards Provision (Davis-Bacon and Related Acts) --
Except with respect to the rehabilitation of residential property designed for
residential use for less than eight families, PSHHC and all contractors and/or
subcontractors of PSHHC engaged under contracts in excess of $2,000 for the
construction, prosecution, completion or repair of any building or work
financed in whole or in part with assistance provided under this agreement,
shall comply with the HUD requirements pertaining to such contracts and the
applicabie of the regulations of the Department of Labor under 29 CFR Parts
3, 5, and Sa, governing the payment of wages and the ratio of apprentices and
trainees to journeyman: provided, that if wage rates higher than those
required under such regulations are imposed by state or local law, nothing
hereunder is intended to relieve their obligation, if any, to require payment of
the higher rates. PSHHC shall cause or require to be inserted in full, in all
such contracts subject to such regulations, provisions meeting the requirements
of 29 CFR 5.5 and, for such contracts in excess of $10,000, 29 CFR Sa.3.
(� O[her Rec�iired Federal Provisions:
(i) Flood Disaster Protection -- This agreement is subject to the
requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234). No
portion of the assistance provided under this agreement is approved for
acquisition or construction purposes as defined under Section 3(a) of said Act,
for use in an area identified by the Secretary has having special flood hazards
which is located in a community not [hen in compliance with the requirements
of Section 102(a) of said Act; and the use of any assistance provided under
this agreement for such acquisition and conswction under such identified areas
in communities then participating in the national flood insurance program shall
be subject to the mandatory purchase of flood insurance of Section 102(a) of
said act.
Any contract or agreement for the sale, lease, or other transfer of land
acquired, cleared or improved with assistance provided under this agreement
shall contain, if such land is located in an azea identified by the Secretary as
having spec;ial flood hazards and in which the sale of flood insurance has been
made available under the National Flood Ins�rance Act of 1968, as amended,
42 U.S.C. 4001 et seq., provisions obligating the transferee and its successors
or assigns to obtain and maintain, during the ownership of such ]and, such
flood insurance as required with respect to financial assistance for acquisition
or construction purposes under Section 102(a) of the Flood Disaster Prevention
Act of 1973. Such provisions shall be required notwithstanding the fact that
the construction on such land is not itself funded with assistance provided
under this agreement.
(ii) Lead-based Paint Hazards -- The construction or rehabilitation of
residentiai structures with assistance provided under this agreement is subject
to the HUD Lead-based Paint regulations, 24 CFR Part 35. Any grants or
loans made by PSHHC for the rehabilitation of residential structures with
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assistance provided under this agreement shall be made subject to the
provisions for the elimination of lead-based paint hazards under subpart B of
said regulations, and PSHHC shall be responsible for the inspections and
certifications required under Section 35.14(� thereof.
(iii) Compliance with Air and Water Acts -- This agreement is subject to the
requirements of the Clean Air Act, as amended, 42 U.S.C. 1251 et seq., the
Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.,
and the regulations of the Environmental Protection Agency with respect
thereto, at 40 CFR Part 15, as amended, from time to time.
In compliance with said regulations, PSHHC shall cause or require to be
inserted in full in all contracts and subcontracts with respect to any non-exempt
transaction thereunder funded with assistance provided under this agreement,
the following requirements:
A stipulation by the contractor or subcontractor that any facility to be utilized
in the performance of any nonexempt contract or subcontract is no[ listed on
the List of Violating Facilities issued by the Environmental Protection Agency
(EPA) pursuant to 40 CFR 15.20.
Agreement by the contractor to comply with all the requirements of Secdon
114 of the Clean Air act, as amended (42 U.S.C. 1857c-8), and Section 308 of
the Federa] Water Pollution Control Act, as amended (33 U.S.C. 1318),
relaung to inspection, monitoring, entry, reports, and information, as well as
all other requirements and guidelines issued thereunder.
A stipulation that as a condition for the award of the contract, prompt notice
will be given of any notification received from the Director, Office of Federal
Activities, EPA, indicating that a facility utilized or to be utilized for the
contract is under consideration to be listed on the EPA List of Violating
Facilities.
Agreement by the contractor that he will include or cause to be included the
criteria and requirements in paragraphs (a) through (d) of this section in every
non-exempt subcontract and requiring that the contractor will take such action
as the government may direct as means of enforcing such provisions.
In no event shall any amount of the assisrance provided under this agreement
be utilized with respect to a facility which has given rise to a conviction under
Section 113(c)(1) of the Clean Air Act or Secdon 309(c) of the Federal Water
Pollution Control Act.
(iv) Obligations of Gnntee with Respect to Certain Third Party
Relationships -- PSHHC shall remain fully obligated under the provisions of
the agreement notwithstanding its designation of any third party or parties for
the undertaking of all or any part of the program with respect to which
assistance is being provided under this agreement to PSHHC. PSHHC shall
comply with all lawful requirements of the state necessazy to ensure that the
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program w�i respect to which assistance is being provided under this
agreement by PSHHC is carried outin accordance with the state's assurance
certifications, including those with respect to the assumption environmental
responsibilities of the state under Section 104(h) of the Housing and
Community Development Act of 1974.
(v) Interest of Certain Federal Officials -- No member of or delegate to the
Congress of the United States, and no resident commissioner, shall be admitted
to any share or part of this agreement or to any benefi[ to arise from the same.
(vi) Interest of Members, Officers, or Employees of Contractors, Members
of Local Governing Body, or Other Public Officials -- No member office, or
employee of PSHHC, or its designees or agents, no member of the governing
body of the locality in which the program is situated, and no other public
official of such locality or localities who exercise any functions or
responsibilities with respect to the program during his tenure or for one year
thereafter, shall have any interest, direct or indirect, in any contract or
subcontract, or the proceeds thereof, for work to be performed in connection
with the program assisted under the agreement. PSHHC shall incorporate, or
cause to be incorporated, in all such contracts or subcontracts a provision
prohibiting such interest pursuant to the purposes of this section.
(vii) Prohibition Against Payments of Bonus or Commission -- The
assistance provided under this agreement shall not be used in the payment of
any bonus or commission for the purpose of obtaining HCD approval of the
application for such assistance, or HCD approval of applications for additional
assistance, or any other approval or concurrence of HCD required under this
agreement, Tide I of the Housing and Community Development Act of 1974,
or HCD regulations with respect thereto: provided, however, that reasonable
fees or bona fide technical, consultant, managerial or other such services,
other than actual solicitation, are not hereby prohibited if otherwise eligible as
program costs.
12. Termination
This agreement may be terminated by either party by the giving of thirty (30) days
written notice to the other if one party determines that the other has failed to comply
with any term or condition of this agreement. Upon receipt of the notice the other
party shall prepare and submit within thirty (30) days a proposal for the correction of
all conditions. In the event the party fails to submit such a proposal or otherwise fails
to properly perform this agreement after notification as hereinafter set forth, the
initiating party may serve the other with written notice of termination of this
agreement.
13. Notices
Unless otherwise provided, all notices herein required shall be in writing, and
delivered in person or sent by United States first class mail, postage prepaid. Notices
required to be given to the City shall be addressed as follows: City Manager, City of
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Arroyo Grande, 2I�"Fast Branch Street, Arroyo Grande, � 93420. Notices to be
given to PSHHC shall be addressed as follows: Executive Director, Peoples' Self-
Help Housing Corporation, 1411 Marsh Street, Suite 103, San Luis Obispo, CA
93401.
Provided that any party may change such address by notice in wridng to the other
parties and thereafter notices shall be transmitted to the new address.
This agreement shall inure to the benefi[ of and be binding upon the parties hereto,
their heirs, successors, survivors and assigns.
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� CITY OF ARROYO GRAN�SE
�
�� ,� 3 _
Chris Christia ' Date
City Manager
ATTEST:
�Q.vu,u. Q � �caJ a�a9/9�
Nancy Dav , City Clerk ate
PEOPLES' SELF-HELP HOUSING CORPORATION
By: � /��°''-ti� 2/21/94
�-deanette Duncan Date
Executive Director
�
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` �
AGREEMENT FOR TFIE
DEVELOPMENT OF
AFFORDABLE RENTAL HOUSING
EXHIBIT A
BUDGET
Invoice schedule for activity requirements necessary to achieve program milestones:
1. PSHAC Technical Assistance
(To be paid on a work completed basis in
accordance with the following milestones)
a. Land Acquisition' $19,000
b. City Approval of Project� $19,000
Development Plan Application
c. Off-Site Improvements 20 000
TOTAL: $58,000
Note 1. Research appraisers for bid list, prepare State-approved procurement, negotiate with
successful bidder, prepare appraisal contract, appraisal orientation and supervision; draft and
finalize Regulatory Agreement ensuring long-term affordability of Real Property; open
escrow, and facilitate the negotation of escrow instructions; orientation of escrow officer,
supervise tiUe work with title officer; and facilitate escrow closing process as required
Note 2. Preparation of City Development Plan Application for 28 apartments. Process and
obtain approval of Application from City, including the appropriate public bodies such as
architectural review committee, planning commission, and/or City Council.
Note 3. Prepare bid documents; research construction conuactors, prepare State-approved
procurement process; negotiate with successful bidder, verify licensing and bonding, prepare
construction contract, contractor orientation; supervise and inspect construction activities,
monitoring escrow account and release of payment process; monitor labor standards; file
Notice of Completion, supervise lien review and release of retention payments.
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