HomeMy WebLinkAboutAgreement for the Development of Affordable Rental Housing (2)AGRE�EWIENT FOR THE DEVELOPM�1�IT OF
AFFORDABLE RENTAL HOUSING
THIS AGREEMENT is made and entered into this z9th day of March , 1994, by
and between the City of Arroyo Grande, a political subdivision of the State of California,
hereinafter referred to as "City," and South Bay Improvement Association, a California non-
profit corporation, hereinafter referred to as "SBIA," as follows:
WHEREAS, the City and State Department of Housing and Community Development
(HCD) entered into a Grant Agreement for the distribuUOn and use of Community
Development Block Grant (hereinafter referred to as "CDBG") funds awarded to the City, as
Grantee under provisions of Tide I of the Federal Housing and Community Development Act
of 1974 and Title IX of the National Affordable Housing 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 rental housing; and
WHEREAS, SBIA is a Community Housing Development Organization formed for
the purpose of promoting better living conditions for low-income persons through the
development of new housing and acquisition and repair of existing housing; and
NOW, THEREFORE, TT IS AGREED by and between the parties as follows:
1. Scope of Activities
SBIA will cooperate with the City and Peoples' Self-Help Housing Corporation to
carry out the 1993 CDBG Program Activity as follows:
f,� 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).
(b) Pursuant to the application, the City of Arroyo Grande as recipient of
Community Development Block Grant funds shall provide said funds to South
Bay Improvement Association (SBIA) aad SBIA shall use said funds for
property acquisition, demolition, off-site improvements, and other related
expenses associated with CDBG program implementation.
2. Citv Responsibilities
The City shall:
(a) Cooperate with $BIA in establishing and implementing a Grant Management
system.
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(b) Be respons�Jle for timely submittal of drawdown reyuests to the State
Department of Housing and Community Development and for the timely
distribution to SBIA of funds requested.
(c) Retain all pertinent books, records, and documents to reflect all costs incurred
by SBIA 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 fulfilling responsibilities of the Grantee pursuant to the
City's agreement with the State under Grant Number 93-STBG-694.
Reportin¢
(a) SBIA shall submit monthly nanative progress reports to the Planning
D'uector's office describing the progress made towazd accomplishing the
project objectives.
4. Term of Agreement
The term of this Agreement shail commence on the date of execution of this
agreement and shall terminate on March 31, 1996 unless earlier terminated as
hereinafter provided.
5. State of Compliance
No provision in this agreement shall be intended 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. Compensation
Subject to the terms and conditions of this agreement, including the availability of
CDBG funds, City shall compensate SBIA the amounts specified in the 1993 CDBG
program budget attached hereto as Exhibit A and incorporated herein by this reference
(hereinafter refeaed to as the "budgeY') to enable SBIA 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 ineligible costs. SBIA shall not obligate or
expend CDBG funds for purposes other than those shown in the budget and shall be
limited in maldng expenditures or incurring obligations 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) Payment to SBIA may be by way of advance or reimbursement. Payment for
property acquisition, escrow and related costs may be advanced directly into
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escrow, an�may not exceed 30 day cash need. �
(b) SBIA 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 [he 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 but not limited to, books,
documents, papers, and records of SBIA 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 Department 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 SBIA in a manner or for a purpose not
authorized or prohibited by said Act or regulations adopted pursuant thereto SBIA
shall, 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
SBIA 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
SBIA'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 additiona( insured and shall provide that City
shall be given at least ten (10) days advance notice of cancellation or reduction
in coverage.
(b) Worker's Compensation Insurance -- In accordance with the provisions of
Labor Code Section 3700, SBIA is required to insured against liability for
worker's compensation, or to undertake self-insurance.
(c) SBIA and any subcontractors shall also maintain unemployment insurance and
State disability insurance as required by the State
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(d) If SBIA fa�s or refuses to procure or maintain the msurance required by this
agreement, or refuses to furnish 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
SBIA shall defend, indemnify and save harmless the 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 [heories 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 SB[A or of agents, employees, or independent contractors directly
responsible to SBIA.
11. State of California Contract Requirements
During the performance of this agreement, SBIA agrees as follows:
(a) The Civi] Ri�hts, HCD. A�e Discrimination, and Rehabilitation Acts
Assurance
During the performance of this contract, SBIA 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,
Title 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. Emplovment, and Contractin�Opportunities 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
the project be awarded to business concerns which are located in, or owned in
substantial part by persons residing in the area 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
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execution ar'this agreement. The parties to this agr6ement certify and agree
that they are under no contractual or other disabi]ity which would prevent
them from complying with these requirements.
(iii) SBIA 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 that the subcontractor is in violation of regulations
issued by the Secretary of Housing and Urban Development, 24 CFR Part 135
and will not let any subcontract unless the subcontractor has first provided it
with a preliminary statement of ability to comply with the requirements of
these regulations.
(iv) SBIA will send to each labor organization or representative 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
shall post copies of the notice in conspicuous places available to employees
and applicants for employment or training.
(v) Compliance with the provisions of Section 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 fulfili these requirements shall subject the applicant or recipient, its
contractors and subcontnctors, 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, SBIA 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. Contrac[ors and subcontrac[ors shall comply with the
provisions of the Fair Employment and Housing Act (Government Code
Section 12900 et seq.) and the applicable regulations promulgated thereunder
(California Administrative Code, Title 2, Section 7285.0 et seq.). The
applicable regulations of the Fair Employment and Housing Commission
implementing Government code Section 12990, set forth in Chapter 5 of
Division 4 of Tide 2 of the California Administrative Code, are incorporated
into this agreement by reference and made a part hereof as if set forth in full.
SBIA and its subcontractors shall give written notice of their obligations under
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this clause to labor organizations with which they �ve a collective bargaining
or other aareement.
(ii) SBIA shall include the nondiscrimination and compliance provisions of
this clause in all subcontracts to perform work under the agreement.
(iii) SBIA shall take affirmative actions to assure that small, disadvantaged,
women, and minority business enterprises are utilized when possible as
contractors for supplies, equipment, construction, 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 contract/subcontract is for housing
rehabilitation costing more than $10,000 and is between a property owner and
a contractor, SBIA shall insert 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 regulaUOns of the Department
of Labor."
(e) Labor Standards
(i) State Labor Standazds Provisions -- SBIA shall give the following
certification to the city and forward this certification to the City within ten (10)
days after [he execution of this contract. SBIA will further agree that these
certifications will be reauired of all subcontractors.
"I am aware of the provisions of Section 1720 et seq. of the Califomia 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 calendaz day during which a worker is required or
permitted to labor more than eight hours in an calendar day or more than 40
hours in any 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 ei;ht families, SBIA and all contractors and/or
subcontractors of SBIA engaged under contracts in excess of $2,000 for the
construction, prosecution, completion or repair of any building or work
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financed in whole or in part with assistance provide�under this agreement,
shall comply with the HUD requirements pertaining to such contracts and the
applicable of [he 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. SBIA shall cause or require to be inserted in full, in all such
contncts 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.
(� Other Reyuired Federal Provisions:
(i) Flood Disaster Protection -- This agreement is subjec[ 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 then 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 construction 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 area identified by the Secretary as
having special flood hazards and in which the sale of flood insurance has been
made available under the National Flood Insurance Act of 1968, as amended,
42 U.S.C. 4001 et seq., provisions obligating the uansferee and its successors
or assigns to obtain and maintain, during the ownership of such land, such
flood insurance as required with respect to financial assistance for acquisition
or constniction 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) L.ead-based Paint Hazards -- The construction or rehabilitation of
residential suuctures 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 SBIA for the rehabilitation of residential structures with
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 SBIA 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
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Federal Wat`er Pollution Control Act, as amended, � U.S.C. 1251 et seq.,
and the regulations of the Environmental ProtecUOn Agency with respect
thereto, at 40 CFR Part 15, as amended, from time to time.
In compliance with said regulations, SBIA shall cause or require to be inserted
in full in all contracts and subcontracts with respect to any non-exempt
transaction thereunder funded with assis[ance provided under this agreement,
the following requirements:
A stipulation by the contractor or subcontrac[or that any facility to be utilized
in the performance of any nonexempt contract or subcontract is not 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 Section
114 of the Clean Air act, as amended (42 U.S.C. 1857c-8), and Section 308 of
the Pederal Water Pollution Control Act, as amended (33 U.S.C. 1318),
relating to inspection, monitoring, entry, reports, and information, as well as
al] 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 assistance 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 Section 309(c) of the Federal Water
Pollution Control Act.
(iv) Obligations of Grantee with Respect to Certain Third Party
Relationships -- SBIA 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 SBIA. SBIA shall comply with all
lawful reyuirements of the state necessary to ensure that the program with
respect to which assistance is being provided under this agreement by SBIA is
carried out in 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
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Congress o� the United States, and no resident co missioner, shall be admitted
to any share or part of this agreement or to any benefit 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 SBIA, or its designees or agents, no member of the goveming
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 [he agreement. SBIA 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 concunence of HCD required under this
agreement, Title 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 wri[ing, 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
Arroyo Grande, 214 East Branch Street, Arroyo Grande, CA 93420. Notices to be
given to SBIA shall be addressed as follows: Executive Director, South Bay
Improvement Association, 1411 Marsh Street, Suite 103, San Luis Obispo, CA
93401.
Provided that any party may change such address by notice in writing to the other
parties and thereafter notices shall be transmitted to the new address.
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ATTEST:
/ I�,n.u,, Q. k2t,�,oe,� a a9/9�
Nancy Davi , City Clerk � Date
South Bay Improvement Association
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�`'' AGREEMENT FOR THE�
DEVELOPMENT OF
AFFORDABLE RENTAL HOUSING
F�hibit A
BUDGET
Land Acquisition
Demolition and Off-site improvements
TOTAL
$220,850
] 08 750
$329,600
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