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HomeMy WebLinkAboutR-2005-172 Yakima Valley Partners Habitat for Humanity Grant RequestRESOLUTION NO. R-2005-172 A RESOLUTION approving a $142,000 grant request from 2005-2006 Federal HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties for construction of five single- family 3 or 4 bedroom homes and authorizing and directing the City Manager and the City Clerk to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Yakima Valley Partners Habitat for Humanity. WHEREAS, the City of Yakima is a recipient of 2005 Federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, the City of Yakima is required by the HOME program regulations to make at least 15% of its annual HOME allocation available to local CHDOs; and WHEREAS, Yakima Valley Partners Habitat for Humanity is requesting a grant of $142,000 in HOME funds for acquisition of two properties for construction of five 3 or 4 bedroom homes and connection fees for four of those homes; and WHEREAS, at the October 24, 2005, City Council Neighborhood Development Sub -committee meeting, the sub -committee recommended to forward the proposal to full council; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the $142,000 grant request from Yakima Valley Partners Habitat for Humanity for the acquisition of these two properties, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $142,000 in HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties to construct five single-family homes hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and Yakima Valley Partners Habitat for Humanity. • Yakima Valley Partners Habitat for Humanity will inform neighborhood businesses and residents about their plans for the project, and invite public comment. 2. The City Manager is hereby authorized and directed to execute all necessary grant documents between the City of Yakima and Yakima Valley Partners Habitat for Humanity. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 1st day, of November, 2005. ATTEST: ( ,,g C Paul P. George, Mayor kliz_,,, ,ef 1/2e4 -e -i—) City Clerk BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT L Item No. For Meeting of November 1, 2005 ITEM TITLE: 2005 Community Housing Development Organization (CHDO) Request for HOME funding to purchase building lots by Yakima Valley Partners Habitat for Humanity. SUBMITTED BY: Bill Cook, Director of Community and Economic Development (509) 575-6113. CONTACT PERSON/TELEPHONE: Bill Cobabe, Manager of Office of Neighborhood Development Services (509) 575-6101. SUMMARY EXPLANATION: The City of Yakima receives an annual allocation of HOME Investment Partnership funds from the Federal government. These organizations are known as Community Housing Development Organizations (CHDOs). CHDOs are entitled to receive at least 15% of a jurisdiction's allocated Federal HOME monies. HOME Program funds may be used by the CHDO's for housing development, which is sponsored and/or owned by the CHDO. Eligible activities include pre -development costs and the acquisition, rehabilitation and new construction of rental housing, homeownership, and rental assistance. Yakima Valley Partners Habitat for Humanity is requesting a grant of $142,000 of HOME CHDO funds from the 2005-2006 Federal allocations for two separate projects. The first project requests $28,000 for acquisition, lot cleanup, and preparation of a single lot at 1314 Jerome Avenue, to provide a building site for one 3 or 4 bedroom home. The second project requests $114,000 for acquisition of three existing lots at the intersection of Pacific & So. 7th Street and short plat for four single-family 3 or 4 bedroom homes as well as water and sewer connection fees. This proposal was discussed at a meeting of the City Council's Neighborhood Development Sub -Committee on October 24, 2005; the committee recommended that this proposal be forwarded to the full Council for approval. Approval of this resolution will authorize and direct the City Manager to execute and contract with Yakima Valley Partners Habitat for Humanity, which will include a project description and a work plan with identification of funding sources. Resolution X Ordinance Contract Other (Specify) Funding Source 2005-2006 HOME CHDO Funds APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff recommends approval BOARD/COMMISSION RECOMMENDATION: Recommended for full Council consideration by the Council's Neighborhood Development Subcommittee COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2005-172 CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization:Yakima Valley Partners Habitat for Humanity (hereinafter "Contractor") 2. Address: PO Box 9007, Yakima, WA. 98909-0007 3 Phone: (509)-453-8077 4. Contact Person:Michael R. Nixon 5. Title of Service or Program being Funded: Acquisition of three existinq Tots at Pacific & So. 7th Street for short plat for four single-family homes 6. Amount of Contract Award: $ $114,000.00 (HOME) 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight May 31,2006, unless sooner terminated by either party in accordance with Section XXII of incorporated Exhibit "A". 8. This contract award and the rights and obligations of both parties hereto shall be subject to and govemed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including sources and uses statement, work plan and all attached hereto as Exhibit "B" and incorporated herein by this reference. 3) City of Yakima Resolution No.R-2005- 172 , a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of project described in Exhibit B, Contractor/Subcontractor lien releases, and. satisfaction of all contract terms and conditions as stated in Exhibit "A" and Exhibit "C". This written document and incorporated exhibits constitutes the entire Contract between the parties. IN WITNESS THEREOF the parties have executed this Contract as of the day and year indicated below. JI Co -.ractor Title: ATTEST: -w p .,o City Clerk City Contract No.: ?005=//.3 "lLL'1 as D e 1-//3/os— Date 1211/0`cate EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B", Scope of Work. II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS). ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58. B. AMOUNT OF GRANT The City hereby sub -grants to the Contractor $ $114,000.00 for said project. III GENERAL BUDGET PROVISIONS The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligation of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the HOME Program" and come within the Project Budget. B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. 2 of 13 8/30/05 C. 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more in an approved budget subject category. Written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget sub -object categories. 2. When the revision of the Contractor budget does not exceed ten percent (1 0%) of an approved budget sub -object category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS. V BILLING PROCEDURES A. The Contractor shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus at the end of the project within the budget of this Contract will be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future Contracts. VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 1. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited). 2. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 3 of 13 . 8/30/05 3. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570.604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010-.090 (Protection of Archaeological Resources), and RCW 43.51.750-.820 (Preservation of Historic Properties). 4. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70.92 RCW. 5. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40 CFR Part 15. 6. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons). 7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 8. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 —12 (Prevailing Wage Rates). 9. Attachment 0 of the Office of management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 11. Title VI of the Civil Rights Act of 1964 (RL. 88-352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 12. Age Discrimination Act of 1975 (24 CFR 146). 13. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 14. Housing Quality Standards (24 CFR 882.109). 15. WBE/MBE (24 CFR 85.36 (e)). 16. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contractor to furnish data, information and assistance for the City's 4 of 13 8/30/05 review and assessment in determining whether the City must prepare an Environmental Impact Statement. B. SEPA The Contractor retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE -CONDITION Performance by either the City of Yakima ONDS or the Contractor under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON-DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. The Contractor agrees that it shall not discriminate against any employee or applicant on the grounds of race, creed, color, religion, national origin, sex, marital status, age, or the presence of any sensory, mental or physical handicap. Such action shall include, but not be limited to: employment, upgrading, demotion or transfer; recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and programs for training including apprenticeships. The Contractor specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to affirmatively market units made available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 1. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any service(s) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and/or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each Contractor or Subcontractor. The Contractor shall take 5 of 13 8/30/05 such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. XI LICENSING AND PROGRAM STANDARDS The Contractor agrees to comply with all applicable Federal, State, County and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B. At any reasonable time and as often as City may deem necessary, Contractor shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and/or copies of same. Contractor records shall include, but shall not be limited to, the following: payroll, personnel and employment records; procurement bidding documents; contracts; sales closing statements; and invoices. C. The Contractor shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information conceming a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND/OR SUBCONTRACTING The Contractor shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City. All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS", as issued by the Office of State 6 of 13 8/30/05 Auditor, State of Washington. The Contractor further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contractor shall retain all books, records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S. Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for. A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property fumished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial 7 of 13 . 8/30/05 Code -Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal govemment (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be retumed to the City of Yakima ONDS or federal govemment in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor/city relationship will be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor will be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, Subcontractors, or otherwise during the performance of this Contract. XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due. XIX QUARTERLY REPORT The Contractor agrees to submit a written quarterly report outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima. XX INSURANCE A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and/or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of thjs Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. 8 of 13 . 8/30/05 C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00) combined single limit bodily injury and property damage. Automobile liability will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents, and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company or companies rated A VII or higher in Best's Guide and admitted in the State of Washington. D. WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractors workers' compensation coverage will be fumished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services to rendered or performed under this Contract will be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, inducing reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. A. TERMINATION FOR CAUSE if the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract are of such scope 9 of 13 8/30/05 and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non -beneficial to the public interest; 2. The Contractor has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contractor has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then: The City of Yakima ONDS may terminate this Contract in whole or in part, and thereupon shall notify the Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. After this effective date, no charges incurred under any terminated portions are allowable. B. TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, nonwithstanding any other termination provision of this Contract. If the level of funding so reduced or limited is so great that the City of Yakima ONDS deems that the continuation of the program covered by this Contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this Contract in whole nonwithstanding any other termination provisions of this Contract. Termination under this Section shall be effective upon receipt of written notice by the Contractor or its representative. The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials. The Contractor agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This Contract may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand. D. CLOSE-OUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2. The Contractor shall submit within thirty (30) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee. 10 of 13 . 8/30/05 3. In the event a financial audit has not been performed prior to close-out of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. XXIII COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. XXV RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The Contractor hereby grants to the City of Yakima, a royalty -free, non-exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this Contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data fumished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause. The Contractor shall report to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVI RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD 11 of 13 8/30/05 Home Regulations. 2. General Terms and Conditions (Exhibit A). 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4. City of Yakima Resolution No. R-2005-172(Exhibit C), and 5. Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVII GOVERNING LAW This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance. )(XVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision. XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF HOME FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1. The Contractor materially changes the primary purpose and scope of the HOME Project as described on Exhibit "B" to the Contract; or 2. The Department of Housing and Urban Development requires a 20 year "Affordability Period" from the date of execution of the Contract, and if the real property that is the 12 of 13 8/30/05 subject of the HOME Project described on Exhibit "B" to the Contract is sold or transferred in any way by the Contractor. XXXIII PROJECT PROCEEDS HOME funds provided by the City of Yakima to the Contractor shall be repaid to the City at no interest from project cash flow if and to the extent that annual net operating income to the Contractor (after project operating expense and first lien debt service) exceeds ten (10) percent of the Contractors investment in the project (including equity and private lending) in any of the first five (5) years after issuance of a Certificate of Occupancy. 13of13 • 8/30/05 BUSINESS '()Fn -THE-CITY CO:UNCIL 'YAKEVIA, 'WASHINGTON AGENDA -STATEMENT 12) IteniNo. .Foriieetingof November 1,2005 ITEM TITLE: 2005 Community Housing Development Organi7Ation (CHDO) Request for HOME funding to purchase building lots by Yakima Valley_Partners Habitat for Humanity. SUBMITTED BY: Bill Cook, Director of Community andEconomic Development (509) 575-6113. CONTACT PERSON/TELEPHONE: Bill Cobabe, Manager of Office of Neighborhood Development 'Services (509) 575-6101. SUMMARY EXPLANATION: The iCity of 1Yakma receives an -:annual -allocation of HOME Investment Partnership funds -from the IFederal -,gOvemment These 'organizations are -known as Community Housing Development -Organizations r_(CIADOS). ':CHDOs :areentitled to receive at least 15% of a allo-Cated:FederaLHOME 'monies. 1-10ME Programfimds may_ beiused_bythe ,C1 --11)0's for housing :development, which is sponsored--,andior:owned by the 'CliDO.Ehgible = activities include pre -development Cost and the acquisition, rehabilitation and new ;construction of rentalhouSing,lmineownerSliii, andrental assistance _ = • Yalciina Valley Partners Habitat for Humanity is requesting a grant of $142,000 of HOME CHDO funds fromthe2005-2006 Federal allocations for two separate projects The first project requests $28,000 for acquisition, lotcleanup, and -preparation of a. 'single lot -at 1314 Jerome Avenue, to - provide a building site for one 3 or 4 bedroom home. The second project requests $114,000 for acquisition oftliree existing _lots at the intersection,ofPaCific & So. '7'11 -Street and short plat for four single-family 3 or 4 'bedroom homes as well as water and sewer connection fees This proposal Was discussed at a meeting of the City Council's Neighborhood Development Sub-Commiltee on October 24, 2005; the committee recommended that this proposal be forwarded to the full Council for approval. Approval of this resolution will authorize and direct the City Manager to execute and contract with Yakima Valley Partners Habitat for Humanity, which will include a project description and a work plan with identification of funding sources. Resolution- X Ordinance Contract Other (Specify) Funding Source - 2005-2006 HOME CHDO Funds APPROVED FOR.SUBM1TTAL: City Manager STAFF RECOMMENDATION: Staffrecommends approval BOARD/COMMISSION RECOMMENDATION: Recommended for full Council consideration by the Council's Neighborhood Development Subcommittee COUNCIL ACTION: RESOLUTION NO. R-2005 1 72 A RESOLUTION approving a $142,000 grant request from 2005-2006 Federal HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties for construction of five single- family 3 or 4 bedroom homes and authorizing and directing the City Manager and the City Clerk to execute all necessary grant documents, including a grant agreement, between the City of Yakima and Yakima Valley Partners Habitat for Humanity. WHEREAS, the City of Yakima is a recipient of 2005 Federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, the City of Yakima is required by the HOME program regulations to make at least 15% of its annual HOME allocation available to local C.HDOs;vandu WHEREAS, Yakima Valley Partners Habitat for Humanity is requesting a grant of $142,000 in HOME funds for acquisition of two properties for construction of five 3 or 4 bedroom homes and connection fees for four of those homes; and WHEREAS, at the October 24, 2005, City Council Neighborhood Development Sub -committee meeting, the sub -committee recommended to forward the proposal to full council; and WHEREAS, the City Council has determined that it is in the best interest of the City to approve the $142,000 grant request from Yakima Valley Partners Habitat for Humanity for the acquisition of these two properties, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $142,000 in HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties to construct five single-family homes hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and Yakima Valley Partners Habitat for Humanity. Yakima Valley Partners Habitat for Humanity will inform neigh_b_ o_r_h__ o- o- d_ _bu�sine_s_s�p�cn,.�rem.s�idwemmnts about their the project, and invite public comment. p1CII 10 ILAr 2. The City Manager is hereby authorized and directed to execute all necessary grant documents between the City of Yakima and Yakima Valley Partners Habitat for Humanity. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 1st day, of November, 2005. ATTEST: 8/ PAUL GEORGE raw r. VCulye, ivlayaf is/ KAREN S. ROBERTS City Clerk 11/15/2005 15:50 5094538190 City of Yakima Office of Neighborhood Development Services (ONDS) Community Housing Development Organizations (CHDO) Project Application Yakima Valley Partners Habitat for Humanity Short Plat 7th Street and Pacific Avenue October 24, 2005 11/15/2005 15:bb bl'J74�,7o1?u PROJECT' DESCRIPTION 1.fr LICANT Name of Applicant Organization: Yakima V Address: Telephone Number: Contact Person: Position with Organization; 0Box 9017 Yaki = W 1' ll 1 0 1 �., -453-8077 Mich: R Nixon Jxccutive Direct° -0007 t for 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: 902-908 S 7th et Yakim W City Target Neighborhood: s _ theast Yakima 3. SITE CONTR . ('Provide Copies of Site Control Documents) Owned Under Option X No Site Control 4. SITE OCCUPANCY: Are there currently buildings on the site: Are the buildings occupied? # of occupied apartments , # of commercial tenants # of tenants to be displaced by project implementation: Yes No Yes No Families 0 City of Udine Office of Nei;hbothood Development Services 2005 CHDO Applici'rtion 2 X Commercial Tenants 0 11/15/2005 15:50 5094538190 ES TION O PROP PROJE a„ Multi -family Single -Family 1 .l b. Rental I J Sales I41 c. Efficiency L1 mom Ej2 Bedroom 6, ZO INO: Current zoning of site: Sin 1- E ...0'lies Does current zoning permit proposed use? 7. NATOR + OF, VAI D PROJI CTt Rehabilitation Single Room Occupancy L Lease/Purchase mm l 3 Bedroom. gt 111 4 Bedroom Yes FTC No New Construction 8. NUMBER OF IUQj SING UN[TS: Total number of apartments 0 Total number of Single -Family Homes 4 Total number of SRO Rooms . 0 Number of units reserved for HOME families at 60% to 80% of median income Number of units reserved for HOME families at 50% to 60% of median income Number of units reserved for HOME families at 50% of median income 9 (at least 20% of HOME assisted units) Number of units reserved for HOME families at 25%-50% of median income City of Yakima Office ofNeigtibottood Development Services 2005 CHDO Application 3 11/15/2005 15:50 bby4Oitsl-nu 9. P ; ' . RAM ,. ' ' TIVE ! ESCI%IPT DTETN HBO' N NVOL 1T [(describe in detail) use additional sheets if necessary] �EsnE . The.ro'Ject involves acquisition of thin lots (Parcels 191330-11004, 19`13d30-0-1100 F our pand 191330-11564) suitable for short platting to provide four 50'x family 135' indi3 or 4 bedroom houses are to be constructedby Yakima Valley alleys o�p� els Habitat ath r is at 902-908 S 7 Street and no Humanity. The targeted property . existing structures. Actual construction of the homes will take place in 2006 and 2007. 07 Curhousew th ly weadi are nal egotiating with several Yakima churches to be the primary sponsors for sponsorships sought from local service clubs and business s.O tioa� thee off General lots lC retrt likel ibe used for our 2006 Builders Blitz which will involve the As a two week blitz build house during June 2006, The specific project that this application refers to is typical of the normal Yakima Valley Partners Habitat for Humanity process detailed below. Volunteers account for a majority of all labor needed on a Habitat job site, Volunteers for this project will be comprised of people from local churches and civic organizations as well as Habitat for Humanity families and friends working to complete their "sweat equity" hours. Often we have volunteers from adjacent henries in the immediate neighborhood. Volunteers will be involved in all areas of the organization including: committee work, job site volunteers and office assistants. Yakima Valley Partners - Habitat for Humanity is a non-profit, non -denominational Christian housing organization that builds homes in partnership with qualified low-income families in the Yakima Valley. Our families' incomes are within 25-50% of the interestd an on inc me for gam This in Yakima County. We charge no profit for construction, andno approach makes decent, affordable housing a reality for many families. Yakima Valley Partners Affiliate is comprised of an Affiliate Board of Directors that governs the board, Millard and Linda Fuller founded Habitat for Humanity International in 1976. In the past 28 years, HFHI has completed over 200,000 homes in 100 different countries around the world, Founded in 1986, Yakima Valley Partners Habitat for Humanity has completed 105 new homes during its first 20 year. Those 105 homes represent nearly 600 individual family members whose lives have been changed through this partnership. Also, nearly 1,000 volunteers, both locally and from all over the nation, work on YVP-HFH homes each year. Those 105 homes also represent nearly $8,500,000 of additional property value added to the local tax rolls. This is yet another way Habitat for Humanity has aided in stimulating the local economy. City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 4 11/15/2005 15:50 5094538190 Yvr lin moi, „ How It Works Each year our Board of 'Directors determines where and how ailabil toany homes the dwll table to buuild the following year. This is based °n budget and lam► av unities. We seek to build 50% of our homes in Yakima and 50% in the Mid and Lower comm Valley. r We then advertise an application meeting for those Who would like to apply for oo on r a habitCriteaat t fofo It Humanity home. At this meeting we explain the process and the Family as follows: 1. Ability to Repay: no interest Although YVP-HFH charges no profit in the construction of the home,fiosdt of xnaterial� the mortgage we hold, the families are responsible for repayment which includes the supervision, land and overhead of the project. The mortgagepayment, in rent. The principal, taxes and insurance, is often less than the family is currently paying mortgage money that is repaid revolves into the construction of addi ionalifieal homees, This s maearkes Habitat for Humanity a self-perpetuating home ownership program. between 25% and 50% of the median area income. 2. Willingness to Partner; into their The chosen family must be willing to invest at least 500 hours of sweat equity" home, or other Habitat homes. They must also attend home ownership classes that are sponsored by YVP_HFH. These classes cover topics such as, home ownership responsibilities, home maintenance, financial planning, etc. 3. Current Living Conditions The current living conditions of a family must create a burden in at .least one of the following areas: Health and Safety Over Crowding Financial Hardship A follow-up meeting is held two weeks later at the same time and location. At this meeting the applications are returned and reviewed for completeness. The applications then go to the Family Nominating Committee for verification of the family selection criteria. When this is complete the families are presented to the Affiliate Board of Directors for approval. The family selection profess was initiated for this coming year at our first meeting on October 4m, At that meeting over 120 people were present representing 71 families interested in Yakima housing. Funding The majority of funding for YVP-HFH projects is from foundations, local businesses, churches and individuals. Government grants, when available, are used for land acquisition, infrastructure (sewer, water, etc,) development, and administration costs. City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 5 11/15/2005 15: 50 50945381yb PROJECT FINANCIAL INFORMATION 10. PROSECT INANCIN - Total Cost: CHDO request: $ 373,200 $ 114,000 CHDO request as % of total cost 30.1 % CHDO Cost/Unit Other financing: $ 259,200 Total Cost/Unit $ 93,300 CHDO request From the City: Loan:$ $ 28,500 Grar;t:$ 114000 Funds to be returned to the City: Yes ❑ No If yes, amount to be returned to the Ci r , $ or $ ter unit 11. NON-CHDO FINANCING TERMS: Total Amount: $ 259,200 Cash by Applicant: $ 95,200 Loan Amount: Interest ate: $ 164,000 4.85% Term: 15 Years Source of Loan: Yakima Federal Savings and Loan Commitment Status: Source of Funds Contact Person: Yakima Federal — Buddy Cluck Telephone Number: Buddy Cluck — (509) 248-2648 City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 6 11/15/2005 15:50 5094538190 Grant Amount $ Source of Grant: Commitment Status: Source of Funds Contact Person: PROJECT COSTS (1) TOTAL COSt: ---.� .- COST/CTNIT: ACQUdS1WN 100,000 25,000 Land Land and Existin l3uildi Title and Recording_ Other; (specify) ILU1D COST: Demolition Site Work Rehabilitation Construction Other (specify) Building Permits, Water/Sewer Hookup LOCATION: SOFT COSTS: Legal Fees Survey 228,000 17,200 57,000 -4,300 Architect Uesign ree Architect Inspection Fee Engineering Fees . ,,.-.,.„. Appraiser W Accounting. w .. . Other Professional Fees Insurance Marketing ,.mm . . FINANCING COSTS: Credit Report .... ... Loan Origination Fee -- Points Points ...._, •-, Legal - - -- Other: Prepaid Interest RESERVES: Rent U . Reserve O enation Reserve ....,—,,,, City of Yakima Offiee of Neighborhood ;development Services 2005 CHDO AppJicaion 7 11/15/2005 15:50 5n45aa1iu Maintenance Reserve Replacement Reserve DEVELOPER FEES: TOTAL PROJECT COST: (1) Please note: The above analysis does not include operating Hands. 373,200 CASH FLOW SALES PROJECTS Incomes Sales price per unit # of 1J iits;„___,4 _ Gross Income: Expenses: Marketing Financing Other (specify) Total Expenses: Net Income from Sales: $ Proposed Terms of Sale to First -Time Bon bu combination, interest rate loan, term of loan) _-- $ 240 000 240,000 en: (loan, grant, forgivable loan, Yakima Valley Partners Habitat for Humanity charges no profit in the construction of the home and charges zero interest on the mortgage we hold, but the home owner is responsible for the full repayment of the actual cost of the project. Actual cost is defined as subsidized land cost, infrastructure, supervision, administration and overhead. The mortgage is secured with two Promissory Notes. The First Promissory Note secures the actual sale price to the family that includes the items stated above, The Second Promissory Note secures the difference between the sale price and the appraised value of the home at the time of sale. The Second Promissory Note is a forgivable loan that is reduced by five percent per year for the twenty-year term of mortgage, If the homeowner should sell, convey or refinance, the Second Promissory Note becomes due, Yakima Valley Partners Habitat for Humanity has the Right of First Refusal should the homeowner decide to sell, City of Yakima Office of Neighborhood Development Services 2005 CHDO Application $ 11/15/2005 15:50 5094b.31di'dn If CHDO funding will be transferred to First -Time Homebuyer as a loan Annual Income from C}-IDO Loans: $ (include both interest and principal) Proposed use of Annual Inco>t romLima: (add extra pages if needed) All funds returned to Yakima Valley Partners Habitat for an omity ne thehoform of mortgage payments revolve into the construction o f other Seryiees inAdtiition to sign : (add extra pages if needed) Describe the services in addition to housing, to be provided to project residents by the CliDO: Zero Profit on the Sale Zero Interest on the Mortgage Self -Help Opportunity (500 hours of "sweat equity") Horne Owner Classes Home Maintenance Legal Aspects of Home Ownership Budgeting Assimilation into the Community Bi -annual Homeowner Meetings Monthly Furniture Sales of donated home furnishings After sales Home Owner Consultations City of Yakima Office ofNeighbothood Development Services 2005 CHDO Application 9 11/15/2005 15:50 5094538190 1,41 “4-1........... 11/15/2005 15:50 5b'.34nibi'Jti PROJECT SCH.LD1 TV, ACT ON: Site Option Acquisition NON-CHDO Financing; Application Conditional Commitment Firm Commitment Design: Selection of Architect Preliminary Designs Final Designs Bidding: Advertise Open Bids Award Bids Construction: Begin Construction Complete Construction Rent Up/Sell City of Yakima Office ofNeighborhood Development Services 2005 CkiDO Application Ta et Date i Mon s from Pro`ect A royal: Pre - Co .leted Novembe, 23 2005 roved Loan Fundin March 2006 Cormle,— Com i leed AllD N/A Si ns e on fi;l n our fftce N/A No bids awarded. All work is d ne b s and vol nteers t0 05/01/06 2006 �.- _... 08/2006 11/15/2005 15:50 biTd4odol rJ PROJECT DEVELOPMENT TEAM The following companies or individuals constitute the development team. Where individual members have not yet been identified, the City must be notified as they are Selected. Staff Contact Person: Michael R. Nixon Consultant: Attorney: Bryan Ntyre Architect: Engineer: Appraiser: Other Financial Sources: Yakima Federal Savings and Loan, Buddy Cluck, CRO; Other (specify): Building Committee: Erie Miller, Chairman; David Pieatti, Engineer; Scott Gust, Contractor; Ben Greco; John Wind; Ron Anderson, Realtor City of Yakima Office of Neighbohood Development services 2005 CHDO Application 11 11/15/2005 15:50 5by4n.ibi ei CER ii FICA` ON I hereby certify that the above statements are true; that I am authorized to sign this application and to make these statements, on behalf of the applicant organization; and that the organization understands that misrepresentation of any facts which leads to the improper allocation and expenditure of public funds may result in legal action against the organization for retrieval or any such funds and appropriate penalties Signed: // Michael R. Nixon ........- Signature M . Nixon Name Executive Director Title Yakima Valley Partners Habitat for Humanity Organization City of Yakima Office of Neigbborhoo4 Development Services 2005 C11DO Application 12 Detober 24, 2005 Date 11/15/2005 15: bb oryi4:J001,, Explanation of Leveraging Tool with Yakima Federal Savings Bank Yakima Federal Savings and Banner Banks provide below market rate tcons�� construction loans fis approximately $45,000 to Yakima Valley Partners Habitat for Humanity. completed the construction loan is converted to a permanent home loan with a term of twenty years at a rate of 5.5% interest, What is unique about the leveraging tool is the following: Yakima Valley Partners Habitat for Humanity uses donated funds to create a pre -paid interest account with the bank. The amount needed to pay the interest on a $45,000 loan for twenty years is approximately $23,000. When Yakima Valley Partners Habitat for Humanity sells the home to the low-income buyer on a Real Estate Contract, the homebuyer begins to make monthly principal payments to Yakima Valley Partners Habitat for Humanity. When we receive the principal payment we forward it to the bank. When they receive the principal payment from us they deduct the necessary interest from the pre -paid interest account. The advantages of this program are as follows: It allows us to leverage the donor's contribution at a rate of approximately 2:1. It provides a no -risk loan for the banks since the interest is pre -paid. The low-income homebuyer pays no interest, making home ownership possible. - It allows us meet the needs of a greater number of families. City of Yakima Office of Neighborhood Development Services 2005 CH1X) Applicncion 13 INVOICE WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 Invoice Date Appraisal Date 04/14/05 04/08/05 Client Case Number 1' ; I PERTY INFORMATI Purchaser/Borrower CITY OF YAKIMA - ONDS Property Address NKA S. 7TH ST. City YAKIMA County YAKIMA State WA Appraisal Office Tax ID Number 91-1361193 FILE NUMBER 2005178 Appraisal Office Phone Number (509) 248-2609 Subdivision Unit No, N/A Legal Description S 50 FT OF N 230 FT OF E 125 FT OF W 135 FT OF NE1/4 NE1/4 Zip Code 98901 Appraisal Fee Amount $ 300.00 Mail or Handling Fee $ Additional Charge No. 1 $ Additional Charge No. 2 $ Additional Charge No. 3 $ Sales Tax ( %) $ Total Amount of Invoice $ 300.00 Comments: Invoice Date 04/14/05 Appraisal Date 04/08/05 Client Case Number Appraiser's File Number 2005178 Client's Phone Number FROM CITY OF YAKIMA - ONDS 112 S. 8TH ST YAKIMA, WA 98901 WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 TERMS - Balance due upon receipt of Invoice. Please return this portion with your payment. Thank you! AMOUNT DUE 300.00 AMOUNT ENCLOSED Designed by United Systems Software Company (800) 969-8727 INVOICE WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 Invoice Date 04/14/05 Appraisal Date 04/08/05 Client Case Number ' ROPERTY INFORMATI ' 'I 1 VOICE INFORMA 1 ' Purchaser/Borrower CITY OF YAKIMA - ONDS Property Address 904 S. 7TH ST. City YAKIMA County YAKIMA Appraisal Office Tax ID Number 91-1361193 File No. 2005179 Page # FILE NUMBER 2005179 Appraisal Office Phone Number (509) 248-2609 Subdivision State WA Unit No, N/A Legal Description 3 125 FT OF W 135 FT OF N 180 FT OF NE1/4 NE1/4 EX N 30 FT FOR STREET Zip Code 98901 $ 200.00 ' Appraisal Fee Amount Mail or Handling Fee $ Additional Charge No. 1 Additional Charge No. 2 $ Additional Charge No. 3 . Sales Tax ( %) ' $ Total Amount of Invoice $ 200.00 Comments: Invoice Date 04/14/05 Appraisal Date 04/08/05 Client Case Number Appraiser's File Number 2005179 FROM CITY OF YAKIMA - ONDS 112 S. 8TH ST. YAKIMA, WA 98901 Client's Phone (lumber TO WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 TERMS - Balance due upon receipt of invoice. Please return this portion with your payment. Thank you! AMOUNT ENCLOSED Designed by United Systems Software Company (800) 969-8727 50924E5792 WESTERN APPRAISALS CJG Fit NL, 200517c Fach', WESTERN APPRAISERS, IN:. 1024 I., 2N9 WA 98901 (509) 248-260E, CrrY OF YA1QMA MIAS 112 5. EM -1 ST: YAKIMA, WA 98901 ii=21111 200517 mince Date Appraisal Bate Client Ca.S U1ffl praisal (au, lax 113 thintliet 04/14/05 04/08/05 purcnaser/is arrok,veOL i CITY 0= YAKIMA - (-)No; ) F'fooeri, 9()-1 171-1 YA111,4/ Appraisal OffiCe PIIINIte 1H 91-1361193 (509) 248-2609 (..ounk YAM NI/ (.,iatt• Loo. 98901 opt', I.Je:ICTI pi ior : 125 FT 0= ill' =7 2, 1..P' 3,811 0= NE]. in F.: f :3017 FD1' :11"RE-a- 200.0r, Appraisal Feu ArnounL Mail or Handling Fee . Additional Charge No 1 , $ Additional Charge No 2 „ Additional Charge No, Sales Tax ( %) , Total Amount of Invoice $ Comments: 200.0( 5092485792 WES IbiN HrrKH15HL� rua No. 200517E Page #' FILE NUMBEF; WESTERN APPRAISERS, INC. 1024 5.2.N0 AVL., YAKIMA, WA 98902 (5Q9) 248-2609 111111111111111111111111011.1111111111111111111111111111.111111111111111 CITY OF YAKIMA - ONDS 112S. 8TH ST. YAKIMA, WA 98901 Appraisiit Date 04/14/05 04/08/05 Chem Cast: tharnhet Appri�isat Office Tax ID limber Appraisal Utfice: Phone Number Purchaser/Borrower CITY OF YAKIMA - ONDS Properly A(iare r NKA 5. 7TH S"' :',11\ YAKIMA _ SubdIivlSinu _.__.. 91-1361193 (509) 248-2609 Unit Nc ruA County YAKIMA Stale Wa-_ . Zip Ude! 98901 Leoal Ue:iCripti0I i S 5O F" OF N 230 FT OF E_125 FT Cr W 135 r; OF NE1/4 NS.114 Appraisal Fee Amount Mail or Handling Fee Additional Charge No 1 Additional Charge No 2 Additional Charge No. 3 . Sales Tax ( %) Comments: $ 300.009 $ $. Total Amount of Invoice $ 300.00 File No. 2005178 Page # INVOICE WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 1 CE INFORMATI 1 �' Invoice Date 04/14/05 Appraisal Date 04/08/05 Client Case Number Appraisal Office Tax ID Number 91-1361193 FILE NUMBER 2005178 Appraisal Office Phone Number (509) 248-2609 Purchaser/Borrower CITY OF YAKIMA - ONDS Property Address NKA S. 7TH Si City YAKIMA County YAKIMA Subdivision State WA Unit No. N/A Legal Description 5 50 FT OF N 230 FT OF E 125 FT OF W 135 FT OF NE1/4 NE1/4 Zip Code 98901 Appraisal Fee Amount $ 300.00 Mail or Handling Fee $ Additional Charge No. 1 $ Additional Charge No. 2 $ Additional Charge No. 3 $ Sales Tax ( %) $ Total Amount of Invoice $ 300.00 Comments: Invoice Date 04/14/05 Appraisal Date 04/08/05 Client Case Number Appraiser's File Number 2005178 FROM CITY OF YAKIMA - ONDS 112 S. 8TH ST. YAKIMA, WA 98901 TO WESTERN APPRAISERS, INC. 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 TERMS - Balance due upon receipt of invoice. Please return this portion with your payment. Thank you! Client's Phone Number AMOUNT DUE 300.00 AMOUNT ENCLOSED Designed by United Systems Software Company (800) 969-8727 Property Address: NKA S. TT -I ST. YAKIMA, WA 98901 Prepared For: CITY OF YAKIMA - ONDS 112 S. 8TH Si YAKIMA, WA 98901 Prepared As Of: 04/08/05 Prepared By: JOHN F. TIMM, IFAS 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 Designed by United Systems Software Company (800) 989-8727 File No. 2005178 Page #; ' 04-14-05 Western Appraisers, Inc. 1024 S. 2nd Avenue Yakima, WA 98902 Attention: CITY OF YAKIMA - ONDS 112 S. 8TH ST. YAKIMA, WA 98901 Dear CITY OF YAKIMA-ONDS: In accordance with your request, I have personally inspected and appraised the real property located at: NKA S. 7TH ST. YAKIMA, WA 98901 The purpose of the appraisal was to estimate the market value of the property, as improved, in fee simple, unencumbered by liens. A legal description of the property will be found herein. In my opinion, the estimated market value of the property, as of 04-08-05, is: $21,500 The attached report contains the description, analysis and supportive data for the conclusions and final estimate of value together with descriptive photographs. as been a pleasure to assist you; if I may be of further service to you in the future, please let me know. erely F. MM AS State Certification # 1700335 Filename: 2005178 Designed by United Systems Software Company (800) 969-8727 Borrower CITY OF YAKIMA - ONDS LAND APPRAISAL REPORT Census Tract 0015.00 Map Reference 1-B File No. Property Address NKA S. 7TH ST. County YAKIMA City YAKIMA Legal Description S 50 FT OF N 230 FT OF E 125 FT OF W 135 FT OF NE1/4 NE1/4 Sale Price $ N/A Date of Sale N/A Loan Term yrs. Actual Real Estate Taxes $ N/A (yr) Loan charges to be paid by seller $ Lender/Client CITY OF YAKIMA - ONDS Address 112 S. 8TH 5T, YAKIMA, WA 98901 Occupant VACANT Appraiser JOHN F. TIMM, IFAS Instructions to Appraiser DETERMINE CURRENT MARKET VALUE File No. 2005178 Page #i 2005178 State WA Zip Code 98901 Property Rights Appraised IXI Fee n Leasehold n DeMinimus PUD Other sales concessions Location Built Up , Growth Rate Property Values Demand/Supply Marketing Time Present Land Use II X Urban F5-1< Over 75% Rapid Increasing II 11 X Suburban 25% to 75% Fully Developed Steady Stable n Shortage IXI In Balance U Over Supply Under 3 Mos. (XI 3-6 Mos. ri Over 6 Mos. 65 % 1 Family 15 % 2-4 Family 10 % Apts. % Condo 10 % Commercial % Industrial % Vacant II II IXI 11 II Rural Under 25% Slow IJ Declining II Change in Present Land Use IXI Not Likely (") From IXI Predominant Occupancy Owner Single Family Price Range $ 35 5 Single Family Age II Likely(*) rI Taking Place (") To X Tenant _ % Vacant to $ 135 Predominant Value $ 90 yrs. to 100 yrs. Predominant Age 60 yrs. Employment Stability Convenience to Employment Convenience to Shopping Convenience to Schools GoodAvec . Fair i Poor 11 11 II Adequacy of Public Transportation , . , n Recreational Facilities , , , , . .... . Adequacy of Utilities n U U X IXI u L_<1 IXI II I1 II 11 II Property Compatibility Protection from Detrimental Conditions Police and Fire Protection , General Appearance of Properties Appeal to Market 1I I1 II Ix' X IXI IXI n n u II II n n II n 1I bct is located within the city limits of Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise) The su ] approximatley 1 Homes in the area are considered compatible. The neighborhood is competitive in Yakima, approximately 12 blocks from the city center. Access to employment,services and schools is considered average. Subject is locatedpp Y mile from freeway access and is within 3 blocks of the market .lace. Dimensions 50' X 130' APX. = .14 ACRES Zoning Classification R-2 (TWO FAMILY RESIDENTIAL) Present Improvements I I Do the local city fairgrounds Highest and Best Use X Present Use Electricity Gas Water Public Other (Describe) IXI Ix' IXI San. Sewer U ri Underground Elec. & Tel 11 Other (specify) Sq. Ft. or Acres Corner Lot Do not conform to zoning regulations OFF SITE IMPROVEMENTS Street Access Surface PAVED IXI Public I 1 Private Maintenance IXI Storm Sewer Sidewalk Ix1 X Public 1 1 Private Curb/Gutter Street Lights Ix1 IXI Topo LEVEL AT GRADE Size TYPICAL FOR AREA Shape RECTANGULAR View AVG/NEIGHBORHOOD Drainage APPEARS ADEQUATE Is the property located in a HUD Identified Special Flood Hazard Area? I 1 No X Yes The subject is legally zoned for Two Family Comments (favorable or unfavorable including any apparent adverse easements, encroachments or other adverse conditions) Residential. No adverse easements, encroachments or conditions noted. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includes a dollar adjustment, reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than, the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to, or b' t t a lus (+ ad ustment is made thus increasing the indicated value of the subject. Comments on Market Data See attached addendum... Comments and Conditions of Appraisal See Attached Addenda. Final Reconciliatio the Income Ap I ESTIMATE TH e Market Approach is considered to be the best indicator of value for this property and is given greatest weight. The Cost Approach & have not bee on dered. Appraiser(s) . Certification/L Rev. 12/82 AL , AS DE NED, OF SUBJECT PROPERTY AS OF 04/08/05 to be $ 21500 Review Appraiser (if applicable) Nv'TIM , IFAS se # This corm was reproduced by United Systems Software Company (800) 969-8727 11 Did U Did Not Physically Inspect Property less favorable than, the su ITEM lec proper y, p , SUBJECT PROPERTY 1 COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 NKA S. 7TH ST. Address YAKIMA, WA 98901 1109 S. 8TH ST. YAKIMA, WA 1411 S. 16TH ST. YAKIMA, WA 1410 S. 17TH ST. YAKIMA, WA Proximity to Subject ° 0.22 MILES 0.82 MILES 0.86 MILES Sales Price $ N/A � ;;;ii;;,il;;r� $ 21500 ;i�' „I I, {„r '`la 1 11 � , $ 21500 i $ 24500;.. $ 102083.33 Price $ $ 179166.67 .. .; $ 76785.71 E. ca Data Source INSPECTION MLS/COUNTY RECORDS MLS/COUNTY RECORDS MLS/COUNTY RECORDS a c Date of Sale and Time Adjustment DESCRIPTION DESCRIPTION + (-) $ Adjustment DESCRIPTION + t-) Adjustment DESCRIPTION + () $ Adjustment 10/01/04 12/16/04 06/25/04 P— Location URBAN URBAN URBAN URBAN are SiteNiew .14 ACRES/AVG-NEI .12 ACRES/AVG NEI .28 ACRES/AVG-NEI .24 ACRES/AVG-NEI a E ZONING R-2 R-2 R-2 R-2 UTILITIES AT SITE AT SITE AT SITE AT SITE Sales or Financing Concessions Net Adj. (Total) Plus Minus Xp $ pPus Minus G11':.(100%, N. .,,..,,,.,,OA'0%' $ 21500 G w'i;'li N 1 4'00°/a "1- Pd% $ 21500 G' 0.00% N},; ,;;,;- 0.009A $ 2450( Indicated Value of Subject ;,,;,,; ;,,,,;, , Comments on Market Data See attached addendum... Comments and Conditions of Appraisal See Attached Addenda. Final Reconciliatio the Income Ap I ESTIMATE TH e Market Approach is considered to be the best indicator of value for this property and is given greatest weight. The Cost Approach & have not bee on dered. Appraiser(s) . Certification/L Rev. 12/82 AL , AS DE NED, OF SUBJECT PROPERTY AS OF 04/08/05 to be $ 21500 Review Appraiser (if applicable) Nv'TIM , IFAS se # This corm was reproduced by United Systems Software Company (800) 969-8727 11 Did U Did Not Physically Inspect Property File No. 2005178 Page #; TEXT ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address NKA S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA Unit No, N/A State WA Zip Code 98901 COMMENTS OF SALES COMPARISON After a thorough search of all available market data, the sales used are considered to by the best indicators of value. AD the sales were weighted similarly in the final reconciliation. Comparables used are closed sales and were selected due to their overall similarities to the subject for similar priced neighborhoods and zoning. Due to the limited sales in the immediate and surrounding subject area that would accurately reflect the subject property in terms of size, zoning & utility in the subjects immediate and surrounding area, additional comparables were researched and parameters were expanded. After a thorough search of all available market data over the last twelve month period, the sales used are considered to be the best indicators of value. Comparables used are closed sales and were selected due to their overall similarities to the subject. No evidence of comparable sale prices being influenced by financing terms. No more representative or more recent closed sales were known to the appraiser as of the effective date of this report. Appropriate adjustments have been made for all differences. All adjustments appear to be normal and in line for such differences. Many of the sales reviewed have new improvements since purchasing of the vacant sites. Mathematical weighting, based on percent for adjustments, was used as an aid in reconciling comparables, supporting a market value estimate of $21,500. COMMENTS ON CONDITION OF APPRAISAL This appraisal report has been completed with the subject property being in "as is" condition. No personal property included in the valuation. The function of this report is for loan underwriting purposes and has been prepared specifically for CITY OF YAKIMA. It may not be used or relied upon by any other person or entity. Any other person or entity who uses or relies upon any information in this report, without the preparer's written consent, does so at his own risk. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment. This appraisal report is incomplete and cannot be relied upon without the cover letter. Unless otherwise stated in this report, the appraiser has no knowledge of the existence of hazardous substances, including without limitation to asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals which may or may not be present on the property, or of other environmental conditions which were not called to the attention of nor did the appraiser become aware of during the inspection of the subject property. The appraiser, however, is not qualified to test such substances or conditions. The presence of substances such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may effect the value of the property. The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibilty is assumed for any such condition, nor for any expertise or engineering knowledge required to discover them. The subject property was physically inspected on 04-08-05, which is the effective date of the appraisal. The appraiser is not aware of or been advised of any detrimental conditions (physical, functional, external) to the subject property and/or local market area. The market value estimated at the conclusion of this appraisal is predicated on the assumption that the subject property meets same conditions as originally noted during inspection and on the completion date of 04-14-05. This is a typical Vacant Land Appraisal Form, generally accepted as a Summary Appraisal Report. Designed by United Systems Software Company (800) 969-8727 SUBJECT PHOTOGRAPH ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address NKA 5. 7TH 5T City YAKIMA Lender/Client CIN OF YAKIMA - ONDS County YAKIMA State WA Unit No. N/A Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 Front View Street View File No. 2005178 Page #7 PLAT MAP Borrower/Client CITY OF YAKIMA - ONDS Address NKA S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA Unit No, N/A State WA Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 File No. 2005178 Page #8 LOCATION MAP Borrower/Client CITY OF YAKIMA - ONDS Address NKA S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA Unit No. N/A State WA Zip Code 98901 Ho . Acras. Road ., Scale:1. 4m les Radius: 0.86 Miles ,EASt Chestnut A?a F. nton St Spruce St 13.k!y!Saile. Nwaos nkk EMa le St t Subject NKA S. 7TH ST. ainier S R -infer t E Arlingto Sale 1 1109 S. 8TH ST. 0.22 Miles SSE Dalton Roa PobHill B We t.R rchtieid Road Sale 3 1410 S. 17TH ST. 0.86 Mlles SE gave.. E Vila Ave S 13aaant Lane Ui,d Lane 'Awe." , pson Son.L j s Lanevp Mtonetr Ave E.Pierce St' Lakeata Lilac:l_aria: Country Cuter Designed by United Systems Software Company (800) 969-8727 COMPARABLE PHOTOGRAPH ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address NKA S. 7TH ST City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA State WA Unit No. N/A Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 Sales Comparable 1 Front View Address: Prox. to Subject: Sales Price: $ Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: 1109 S. 8TH ST. 0.22 MILES 21500 URBAN Sales Comparable 2 Front View Address: 1411 S. 16TH ST. Prox. to Subject: 0.82 MILES Sales Price: $ 21500 Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: URBAN Sales Comparable 3 Front View Address: 1410 S. 17TH ST. Prox. to Subject: 0.86 MILES Sales Price: $ 24500 Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: URBAN File No. 2005178 Page #12 Scanned Image with Header Borrower/Client CITY OF YAKIMA - ONDS Address NKA S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA Unit No. N/A State WA Zip Code 98901 STATE OF WASHINGTON 'DEPARTMENT OF LICENSING — BUSINESS AND PROFESSIONS DIVISION THIS CERTIFIES THAT THE 'PERSON NAMED HEREON 15 AUTHORIZED, AS. PROVIDED BY CAW, AS A CERTIFIED RESIDENTIAL REAL ESTATE APPRAISER TIMM,JOHN F 521 PRAIRIE ROAD MOXEE CITY WA 98936-9777 •ttu tti 1 t'ta.itir VMI, Reference CertjLic Number issued :Date' 270:i 7 .: :�5�28�91• Expiration Date 1:11=14-05 • 4 9 1 . kiit imoti.• e'ws ti.,a.wriAi.eiww .i,Ati eli iM atNoki woln.144.1!i 41•V• iii,: isr:.•wwniii:s .4a-lemweYe+i9iY't,+i*iaora' " Designed by United Systems Software Company (800) 969-8727 File No. 2005178 Page #10 File No. 2005178 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions, Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession, but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3 The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer, consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 (6/93, 10/98) Page 1 of 2 This form was reproduced by United Systems Software Company (800) 969-8727 Fannie Mae Form 1004B (6/93; File No. 2005178 Page #11 File No. 2005178 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. l have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated, in the appraisal report, only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. 1 did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. 1 further certify that 1 have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: 1 directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADORES OF ' ROPERTY APPRA ED: NKA S. 7TH Si, YAKIMA, WA 98901 APPRAI ER: SUPERVISORY APPRAISER (only if required): Signature. / Signature. Name: JOH Date Sign 04/14/05 State Cert cation #: 1700335 or State License #: State. WA Expiration Date of Certification or License. 07/14/05 Name. Date Signed. State Certification #• or State License #: State: Expiration Date of Certification or License: LJ Did LJ Did Not Inspect Property Freddie Mac Form 439 (6/93, 10/98) Page 2 of 2 This form was reproduced by United Systems Software Company (800) 969-8727 Fannie Mae Form 1004B (6/93) Property Address: 904 S. 7TH 5T YAKIMA, WA 98901 Prepared For: CrfY OF YAKIMA - ONDS 112 S. 8TH ST. YAKIMA, WA 98901 Prepared As Of: 04/08/05 Prepared By: JOHN F. TIMM, IFAS 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 Designed by United Systems Software Company (800) 989-8727 File No. 2005179 Page h 04-14-05 Western Appraisers, Inc. 1024 S. 2nd Avenue Yakima, WA 98902 Attention: CITY OF YAKIMA - ONDS 112 S. 8TH ST. YAKIMA, WA 98901 Dear CITY OF YAKIMA-ONDS: In accordance with your request, I have personally inspected and appraised the real property located at: 904 S. 7TH ST. YAKIMA, WA 98901 The purpose of the appraisal was to estimate the market value of the property, as improved, in fee simple, unencumbered by liens. A legal description of the property will be found herein. In my opinion, the estimated market value of the property, as of 04-08-05, is: $43,500 The attached report contains the description, analysis and supportive data for the conclusions and final estimate of value together with descriptive photographs. t h4\ been a pleasure to assist you; if I may be of further service to you in the future, please let me know. Since -ly MM, IFAS Certification #1700335 Filename: 2005179 Designed by United Systems Software Company (800) 969-8727 File No. 2005179 Page # LAND APPRAISAL REPORT File No. 2005179 2 a 1- 2 14ttI TIEDQ'L 1- Borrower CITY OF YAKIMA - ONDS Census Tract 0015.00 Map Reference 1-B Property Address 904 S. 7TH ST City YAKIMA County YAKIMA State WA Legal Description 3 125 FT OF W 135 FT OF N 180 FT OF NE1/4 NE1/4 EX N 30 FT FOR STREET Sale Price $ N/A Date of Sale N/A Loan Term __ yrs. Property Rights Appraised n Fee n Leasehold DeMinimus PUD Actual Real Estate Taxes $ N/A (yr) Loan charges to be paid by seller $ Other sales concessions Lender/Client CITY OF YAKIMA - ONDS Address 112 S. 8TH ST., YAKIMA, WA 98901 Occupant VACANT Appraiser JOHN F. TIMM, IFAS Instructions to Appraiser DETERMINE CURRENT MARKET VALUE Zip Code 98901 Location , . IXI Urban Built Up , , , .. ] Over 75% Growth Rate I Fully Developed ri Rapid Properly Values . , n Increasing Demand/Supply Shortage Marketing Time Present Land Use 65 % 1 Family % Industrial Change in Present Land Use n Suburban n 25% to 75% X Steady U Stable In Balance X . Li Under 3 Mos. X, 3-6 Mos. 15 % 2-4 Family 10 % Apts. % Condo % Vacant IXI Rural Under 25% L_J Slow - Declining — Over Supply Over 6 Mos. 10 % Commercial Not Likely I 1 Likely(") n Taking Place (*) (*) From To Predominant Occupancy X OwnerI_xl Tenant % Vacant Single Family Price Range $ 35 to $ 135 Predominant Value $ 90 Single Family Age 5 yrs. to _- 100 yrs. Predominant Age 60 yrs. Employment Stability Convenience to Employment Convenience to Shopping Convenience to Schools Adequacy of Public Transportation Recreational Facilities Adequacy of Utilities Property Compatibility Protection from Detrimental Conditions , n Police and Fire Protection , Good II n n n n n General Appearance of Properties Appeal to Market ,,,,,,, C Avc. Fair Poor XnFl on ❑ 54 ri n❑ nLJ El LI n a❑ n n unE n ❑ X X X X X X Comments including those factors, favorable or unfavorable, affecting marketability (e.g. public parks, schools, view, noise) The subject is located within the city limits of Yakima, approximately 12 blocks from the city center. Access to employmentLservicesand schools is considered average. Subject is located approximatley 1 mile from freeway access and is within 3 blocks of the local city fairgrounds. Homes in the area are considered compatible. The neighborhood is competitive in the market place. Dimensions 150' X 130' APX. = .55 ACRES Sq. Ft. or Acres C Corner Lot Zoning Classification R-2 (TWO FAMILY RESIDENTIAL) Present Improvements I Do n Do not conform to zoning regulations Highest and Best Use X Present Use 1 1 Other (specify) Electricity Gas Water San. Sewer Pub is Other (Describe) X X Underground Elec. & Tel. OFF SITE IMPROVEMENTS Street Access X Public n Private Surface PAVED Maintenance jZI Public n Private X XI Storm Sewer IXI Curb/Gutter Sidewalk AXI Street Lights Topo LEVEL AT GRADE Size TYPICAL FOR AREA Shape RECTANGULAR View AVG/NEIGHBORHOOD Drainage APPEARS ADEQUATE Is the property located in a HUD Identified Special Flood Hazard Area? n No n Yes Comments (favorable or unfavorable including any apparent adverse easements, encroachments or other adverse conditions) The subject is legally zoned for Two Family Residential. Presently the site has an old garage building that has no contributory value. No adverse easements, encroachments or conditions noted. The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description Includes a dollar adjustment, reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more favorable than, the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in the comparable is inferior to, or less favorable than, the subject property, a plus(+) adjustment is made thus increasing the Indicated value of the subject Appraiser(s) J� F. TIMM, IFAS Certification/Li . se # Rev 12/82 UE, FINE OF.,SUBJECT PROPERTY AS OF 04/08/05 Review Appraiser (if applicable) to he $ 43500 This form was reproduced by United Systems Software Company (800) 969-8727 ❑ Did ❑ Did Not Physically Inspect Property ITEM SUBJECT PROPERTY COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3 904 S. 7TH ST. Address YAKIMA, WA 98901 1407 S. 16TH ST. YAKIMA, WA 1411 S. 16TH ST. YAKIMA, WA 0.82 MILES 1410 S. 17TH ST. YAKIMA, WA 0.86 MILES Proximity to Subject 0.81 MILES Sales Price $ N/A $ 42000 '° i' '............... :`... $ 21500 !' q. ?:.;.!. $ 24500 z a c W Price $ $ 100000.00 $ 76785.71 102083.33 Data Source INSPECTION MLS/COUNTY RECORDS MLS/COUNTY RECORDS Date of Sale and Time Adjustment DESCRIPTION DESCRIPTION Adjustment DESCRIPTION 12/16/04 Adjustment DESCRIPTION 06/25/04 Adjustment Location URBAN URBAN URBAN URBAN a 2 SjteNiew .55 ACRES/AVG/NEI .42 ACRES/AVG NEI .28 ACRES/AVG-NEI 21000 .24 ACRES/AVG-NEI 22000 ZONING R-2 R-2 R-2 R-2 UTILITIES AT SITE AT SITE AT SITE AT SITE Sales or Financing Concessions Net Adj. (Total) UPlus I 1 Minus $ 0 n Plus ❑ Minus $ 21000 U Plus Minus $ 22000 Indicated Value of Subject , $ 42000 .1:,, $ 42500 _ 'i'::ill,.' �� -:,: $ 46500 2 a0 Comments on Market Data See attached addendum... Comments and Conditions of Appraisal See Attached Addenda. ..d z Wthe CC Final Reconcilia ' n he Market Approach is considered to be the best indicator of value for this property and is given greatest weight. The Cost Approach & Income proac have not been considered. ... Z.1- -1� ••"••••• ••••,.. .._ ... ..-- Appraiser(s) J� F. TIMM, IFAS Certification/Li . se # Rev 12/82 UE, FINE OF.,SUBJECT PROPERTY AS OF 04/08/05 Review Appraiser (if applicable) to he $ 43500 This form was reproduced by United Systems Software Company (800) 969-8727 ❑ Did ❑ Did Not Physically Inspect Property File No, 2005179 Page # TEXT ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7TH ST. City YAKIMA _ County YAKIMA Unit No, N/A Lender/Client CITY OF YAKIMA - ONDS State WA Zip Code 98901 COMMENTS OF SALES COMPARISON After a thorough search of all available market data, the sales used are considered to by the best indicators of value. All the sales were weighted similarly in the final reconciliation. Comparables used are closed sales and were selected due to their overall similarities to the subject for similar priced neighborhoods and zoning. Due to the limited sales in the immediate and surrounding subject area that would accurately reflect the subject property in terms of size, zoning & utility in the subjects immediate and surrounding area, additional comparables were researched and parameters were expanded. After a thorough search of all available market data over the last twelve month period, the sales used are considered to be the best indicators of value. Comparables used are closed sales and were selected due to their overall similarities to the subject. No evidence of comparable sale prices being influenced by financing terms. No more representative or more recent closed sales were known to the appraiser as of the effective date of this report. Appropriate adjustments have been made for all differences. All adjustments appear to be normal and in line for such differences. Many of the sales reviewed have new improvements since purchasing of the vacant sites. Mathematical weighting, based on percent for adjustments, was used as an aid in reconciling comparables, supporting a market value estimate of $43,500. COMMENTS ON CONDITION OF APPRAISAL This appraisal report has been completed with the subject property being in "as is" condition. No personal property included in the valuation. The function of this report is for loan underwriting purposes and has been prepared specifically for CITY OF YAKIMA. It may not be used or relied upon by any other person or entity. Any other person or entity who uses or relies upon any information in this report, without the preparer's written consent, does so at his own risk. Neither all nor any part of the contents of this report shall be conveyed to any person or entity, other than the appraiser's or firm's client, through advertising, solicitation materials, public relations, news, sales, or other media without the written consent and approval of the authors, particularly as to valuation conclusions, the identity of the appraiser or firm with which the appraiser is connected. Further, the appraiser or firm assumes no obligation, liability, or accountability to any third party. If this report is.placed in the hands of anyone but the client, client shall make such party aware of all the assumptions and limiting conditions of the assignment. This appraisal report is incomplete and cannot be relied upon without the cover letter. Unless otherwise stated in this report, the appraiser has no knowledge of the existence of hazardous substances, including without limitation to asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals which may or may not be present on the property, or of other environmental conditions which were not called to the attention of nor did the appraiser become aware of during the inspection of the subject property. The appraiser, however, is not qualified to test such substances or conditions. The presence of substances such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions may effect the value of the property. The value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibilty is assumed for any such condition, nor for any expertise or engineering knowledge required to discover them. The subject property was physically inspected on 04-08-05, which is the effective date of the appraisal. The appraiser is not aware of or been advised of any detrimental conditions (physical, functional, external) to the subject property and/or local market area. The market value estimated at the conclusion of this appraisal is predicated on the assumption that the subject property meets same conditions as originally noted during inspection and on the completion date of 04-14-05. This is a typical Vacant Land Appraisal Form, generally accepted as a Summary Appraisal Report. Designed by United Systems Software Company (800) 969-8727 SUBJECT PHOTOGRAPH ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7TH ST City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA Unit No. N/A State WA Zip Code 98901 Front View Street View Designed by United Systems Software Company (800) 969-8727 Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7Th ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS PLAT MAP County YAKIMA Unit No. N/A File No, 2005179 Page # State WA Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 File No. 2005179 Page #1 LOCATION MAP Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7TI1 ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS Unit No. N/A County YAKIMA State WA Zip Code 98901 [Radius: 0.86 milts Seale: 1.17 Miles jWii Pul k E Maple St E Beech t (.4 E Race St Subject 904 S. 7TH ST. 01 5 0) Pacific Avt Inier $'t Rainiet $t Walker St La Salle S La Salle St e Arlington St e rural Av Central Ave 8 ger Road Dalton Road lch Rite Roa fiNh-jjII Blvd on ane 1407 S. 16TH ST. 0.81 Miles SE Sale 2 1411 S. I6TH ST. 0.82 Mile s SE Sale 3 1410 8. 17TH ST. 0.86 Miles SE urwell WO St Tennant Lindy Lane GI 6.11104:ail , Sim CO her E Mead Ave Designed by United Systems Software Company (800) 969-8727 CareJ Str E St oss COMPARABLE PHOTOGRAPH ADDENDUM Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS County YAKIMA State WA Unit No. N/A Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 Sales Comparable 1 Front View Address: 1407 S. 16TH ST. Prox. to Subject 0.81 MILES Sales Price: $ 42000 Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: URBAN Sales Comparable 2 Front View Address: 14115. 16TH ST. Prox. to Subject: 0.82 MILES Sales Price: $ 21500 Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: URBAN Sales Comparable 3 Front View Address: Prox. to Subject: Sales Price: $ Gross Living Area: Total Rooms: Total Bedrooms: Total Bathrooms: Location: 1410 S. 17TH ST. 0.86 MILES 24500 URBAN ..+i,YL+i+fi�n4i4iii�Ylil4.C.ib'a.fi�c4G.:.�.,i�rr.��iFviiiwG'sGCr'rw�+eiR*FYi�iA�xvrvGwtirt„NGiu STATE OF WASHINGTON DEPARTMENT OF LICENSING -- BUSINESS AND PROFESSIONS DIVISION 1I -B5 CERTIFIES THAT THE PERSON NAMED HEREON IS AUTHORIZED. AS PROVIDED BY LAW, AS A CERTIFIED RESIDENTIAL REAL ESTATE APPRAISER TIMM,JOHN F 521 PRAIRIE ROAD MOXEE CITY WA 98936-9777 File No. 2005179 Page #1; Scanned Image with Header Borrower/Client CITY OF YAKIMA - ONDS Address 904 S. 7TH ST. City YAKIMA Lender/Client CITY OF YAKIMA - ONDS Unit No. N/A County YAKIMA State WA Zip Code 98901 •Reference Carill.,ic Number 'issued:Date: .Expiration Date • 27017 71700313 :,.;, ' , <05�28�91 Q' -S;4 p .•; tormfelie Designed by United Systems Software Company (800) 969-8727 File No. File No. 2005179 Page #1 2005179 DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he considers his own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession, but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1 The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist the reader of the report in visualizing the property and understanding the appraiser's determination of its size. 3 The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used. 6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc ) that would make the property more or less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an environmental assessment of the property. 7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other parties. 8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice. 9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that completion of the improvements will be performed in a workmanlike manner. 10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage insurer, consultants; professional appraisal organizations; any state or federally approved financial institution, or any department, agency, or instrumentality of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. Freddie Mac Form 439 (6/93, 10/98) Page 1 of 2 Fannie Mae Form 1004B (6/93 This form was reproduced by United Systems Sollware Company (800) 969-8727 File No. 2005179 Page #1 File No 2005179 APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made a positive adjustment to increase the adjusted sales price of the comparable. 2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the appraisal report are true and correct. 3. I stated, in the appraisal report, only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent and limiting conditions specified in this form. 4. I have no present or prospective interest in the property that is the subject of this report, and I have no present or prospective personal interest or bias with respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property. 5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this appraisal is contingent on the appraised value of the property. 6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate, the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal I did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan. 7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the reconciliation section. 8 I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report. I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property. 9, I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take no responsibility for it. SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that: I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser, agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report. ADDRESS 0 PRQPERT ' PPRAI ED: 904 S. 7TH ST., YAKIMA, WA 98901 6 APPRAISER. Signature: 1Al 1, Name: 30 Date Sig e'P' 04/14/05 State Cer [cation #: 1700335 or State License #: State: WA Expiration Date of Certification or License: Freddie Mac Form 439 (6/93, 10/98) 07/14/05 SUPERVISORY APPRAISER (only if required): Signature. Name' Date Signed: State Certification #• or State License #: State: Expiration Date of Certification or License: ❑ Did I I Did Not Inspect Property This form was reproduced by United Pae 2 of 2 Systems Software Company (800) 969-8727 Fannie Mae Form 1004B (6/93) CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization. Yakima Valley Partners Habitat for Humanity (hereinafter "Contractor") 2. Address: PO Box 9007, Yakima, WA. 98909-0007 3. Phone. (509)-453-8077 4 Contact Person:Michael R. Nixon 5. Title of Service or Program being Funded:Acquisition, cleanup and preparation of a single lot at 1314 Jerome Avenue, to probide a building site for one single-family home. 6. Amount of Contract Award: $ $28,000. (HOME) 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight May 31, 2006, unless sooner terminated by either party in accordance with Section XXII of incorporated Exhibit "A". 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including sources and uses statement, work plan and all attached hereto as Exhibit "B" and incorporated herein by this reference 3) City of Yakima Resolution No.R-2005-172 , a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9 Final Contract payment shall be subject to satisfactory completion of project described in Exhibit B, Contractor/Subcontractor lien releases, and satisfaction of all contract terms and conditions as stated in Exhibit "A" and Exhibit "C". This written document and incorporated exhibits constitutes the entire Contract between the parties. IN WITNESS THEREOF the parties have executed this Contract as of the day and year indicated below. DdteDAte Date /-V7/0 S— Con ractor 1 , Date Title: GX•e.0-o,-r) CTOR ATTEST: City Clerk City Contract No.: 46v,"--::// 7 EXHIBIT "A" TERMS AND CONDITIONS DESIGNATION The City of Yakima, as recipient of a housing and community development grant from the U.S. Department of Housing and Urban Development, hereby designates Contractor to undertake, and the Contractor hereby agrees to undertake that certain community development or housing assistance project described in Exhibit "B", Scope of Work. II SUB -GRANT A. NOTICE TO PROCEED No work on the project shall occur prior to or without written approval from the City of Yakima Office of Neighborhood Development Services (ONDS). ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project pursuant to 24 CFR Part 58. B. AMOUNT OF GRANT The City hereby sub -grants to the Contractor $$28,000. for said project. III GENERAL BUDGET PROVISIONS The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligation of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the HOME Program" and come within the Project Budget. B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. 2 of 13 8/30/05 C. 1. The Contractor shall submit to the City of Yakima ONDS a written request for approval of budget revision when a proposed revision would result in an increase or decrease of ten percent (10%) or more in an approved budget subject category. Written budget revision approval must be received by the Contractor prior to the Contractor incurring any expenditures against the revised budget sub -object categories. 2. When the revision of the Contractor budget does not exceed ten percent (10%) of an approved budget sub -object category, the Contractor must submit a revised budget to the City of Yakima ONDS prior to the submittal of claims against the budget. IV COMMENCEMENT OF WORK The City of Yakima ONDS shall furnish the Contractor with written notice to proceed upon release of funds from HUD related to the project. No work on the project shall occur prior to the notice to proceed without written approval from the City of Yakima ONDS. V BILLING PROCEDURES A. The Contractor shall submit monthly written claims for reimbursement of services performed under this contract in the manner prescribed in paragraph III above, and as prescribed by the City of Yakima ONDS. VI LOCAL FINANCIAL SUPPORT The sub -grant shall not be utilized to reduce substantially the amount of local financial support for community development activities below the level of such support prior to the availability of such assistance. VII BUDGET SURPLUS The Contractor agrees that funds determined by the City of Yakima ONDS to be surplus at the end of the project within the budget of this Contract will be subject to cancellation by the City of Yakima ONDS and may be negotiated if they are to be included in future Contracts. VIII COMPLIANCE WITH LAWS A. GENERAL The Contractor, in performance of this Contract, agrees to comply with all applicable Federal, State and Local Laws and ordinances, and the rules and regulations promulgated by the U.S. Department of Housing and Urban Development, including, but not limited to, Federal HOME Regulations and other policies and guidelines established by the City of Yakima ONDS. B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT REQUIREMENTS The following federal provisions may apply, among others, to this Contract: 1. Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and 24 CFR 570.601 (Discrimination prohibited). 2. The Lead Based Paint Poisoning Prevention Act, 42 USC Section 4831 et seq., and HUD regulations implementing the Act, 24 CFR Part 35, where, residential structures are involved. The Contractor shall provide whatever assistance is necessary to enable the City of Yakima's Building Official to carry out its inspection and certification responsibility under those regulations. 3 of 13 8/30/05 3. Historic and Archaeological Preservation requirements as set forth in 24 CFR Section 570 604.36 CFR Part 800, RCW 27.44.010 (Native American Burial Law), RCW 27.53.010-.090 (Protection of Archaeological Resources), and RCW 43.51.750-.820 (Preservation of Historic Properties). 4 Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et seq., implementing regulations, and Chapter 70.92 RCW. 5. Clean Air Act as amended, 42 USC Section 1857 et weq; Water Pollution Control Act, as amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40 CFR Part 15. 6. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u) and 24 CFR Part 135 (Employment opportunities for project area businesses and low income persons) 7. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333, (Overtime Compensation). 8. Davis -Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and RCW Chapter 3 —12 (Prevailing Wage Rates). 9. Attachment 0 of the Office of management and Budget Circular, A-102 (Procurement Standards) and Federal Management Circular, FMC 74-4. 10. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42 and 570. 11. Title VI of the Civil Rights Act of 1964 (P.L. 88-352) as amended, and HUD regulations with respect thereto including the regulations under 24 CFR Part 1. In the sale, lease or other transfer of land acquired, cleared or improved with assistance provided under this Agreement, and Contractor shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or national origin, in the sale, lease or rental, or in the use or occupancy of such land or any improvements erected or to be erected thereon, and providing that the Contractor, the County, and the United States are beneficiaries of and entitled to enforce such covenant. The Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant and will not itself so discriminate. 12. Age Discrimination Act of 1975 (24 CFR 146). 13. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1). 14. Housing Quality Standards (24 CFR 882.109). 15. WBE/MBE (24 CFR 85.36 (e)). 16. ENVIRONMENTAL REVIEW A. NEPA The City of Yakima ONDS retains environmental review responsibility for purposes of fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima ONDS may require the Contractor to furnish data, information and assistance for the City's 4 of 13 8/30/05 review and assessment in determining whether the City must prepare an Environmental Impact Statement. B. SEPA The Contractor retains responsibility for fulfilling the requirements of the State Environmental Policy Act and regulations and ordinance adopted thereunder. C. COMPLIANCE AS PRE -CONDITION Performance by either the City of Yakima ONDS or the Contractor under this Agreement shall be contingent upon satisfaction of all applicable requirements of the National and State Environmental Policy Acts. IX NON-DISCRIMINATION IN EMPLOYMENT A. The City of Yakima is an Equal Opportunity Employer. B. The Contractor agrees that it shall not discriminate against any employee or applicant on the grounds of race, creed, color, religion, national origin, sex, marital status, age, or the presence of any sensory, mental or physical handicap. Such action shall include, but not be limited to: employment, upgrading, demotion or transfer; recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and programs for training including apprenticeships. The Contractor specifically agrees to abide by the Office of Federal Contract Compliance Programs regulations, 41 CFR Part 60, Executive Order 11246 as amended by Executive Order 12086, and HUD Anti Discrimination Requirements, 24 CFR 570.601. X NON-DISCRIMINATION IN CLIENT SERVICES A. The Contractor agrees to affirmatively market units made available through this contract (24 CFR 92.352), and shall not, on the grounds of race, color, sex, religion, national origin, creed, marital status, or age: 1. Deny a qualified individual any facilities, financial aid, services or other benefits provided under this Contract; 2. Provide any service(s) or other benefits to a qualified individual which are different, or are provided in a different manner, from those provided to others under this Contract; separate treatment in any manner related to his receipt of any services) or other benefits provided under this Contract; 3. Deny any qualified individual an opportunity to participate in any program provided by this Contract through the provision of service(s) or otherwise, or will afford him an opportunity to do so which is different from that afforded others under this Contract. B. The Contractor shall abide by all provisions of Section 504 of the HEW Rehabilitation Act of 1973 prohibiting discrimination against handicapped individuals either through purpose or intent. C. If assignment and/or subcontracting has been authorized, said assignment or subcontract shall include appropriate safeguards against discrimination in client services binding upon each Contractor or Subcontractor. The Contractor shall take 5 of 13 8/30/05 such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. XI LICENSING AND PROGRAM STANDARDS The Contractor agrees to comply with all applicable Federal, State, County and Municipal standards for licensing, certification and operation of facilities and programs, and accreditation and licensing of individuals, and any other standards or criteria as described in the Contract to assure quality of services. XII MONITORING AND ACCESS TO RECORDS A. Contractor agrees that City may carry out monitoring and evaluation activities so as to ensure compliance by Contractor with this Contractor agreement, with the HOME Compliance Documents, and with all other laws, regulations, and ordinances related to the performance hereof. Contractor agrees to provide City with any data determined by City to be necessary for its effective fulfillment of its monitoring and evaluation responsibilities. B. At any reasonable time and as often as City may deem necessary, Contractor shall make all of its records available to City, HUD, the Comptroller General of the United States, or any of their authorized representatives, and shall permit City, HUD, the Comptroller General of the United States, or any of their authorized representatives to audit, examine, and make excerpts and/or copies of same. Contractor records shall include, but shall not be limited to, the following: payroll, personnel and employment records; procurement bidding documents; contracts; sales closing statements; and invoices. C. The Contractor shall be required to make reasonable changes in the services as completed or to be completed if said services fall below the standards and specifications set forth in the Special Terms and Conditions, Project Description, or Statement of Work. XIII SAFEGUARDING OF CLIENT INFORMATION The use or disclosure by any party of any confidential information concerning a recipient or client for any purpose not directly connected with the City's or the Contractor's responsibilities with respect to services provided under this Contract is prohibited except on written consent of the recipient or client, his/her attorney or his/her responsible parent or guardian or as otherwise provided by law. XIV ASSIGNMENT AND/OR SUBCONTRACTING The Contractor shall not assign or subcontract any portion of the services provided within the terms of this Contract without obtaining prior written approval from the City. All terms and conditions of this Contract shall apply to any approved subcontract or assignment related to the Contract. XV STANDARDS FOR FISCAL ACCOUNTABILITY A. The Contractor agrees to provide project line item draw requests, annual verification of rents, annual audited financial statement to compare income and expenses, records, documents and accounting procedures which accurately reflect all direct and indirect costs related to the performance of this Contract. Such fiscal books, records, documents, reports and other data shall be retained in a manner consistent with the "Budgeting, Accounting, Reporting System for Counties and Cities, and Other Local Governments", hereinafter referred to as "BARS", as issued by the Office of State 6 of 13 8/30/05 Auditor, State of Washington. The Contractor further agrees that the City of Yakima ONDS shall have the right to monitor and audit the fiscal components of the organization to insure that actual expenditures remain consistent with the terms of this Contract. The Contractor shall retain all books, records, documents and other material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S. Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3 A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal government, the Contractor agrees to execute such security agreements and other documents as shall be necessary for the City of Yakima ONDS or federal government to perfect its interest in such property in accordance with the "Uniform Commercial 7 of 13 8/30/05 Code -Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 9. The Contractor shall be responsible for any loss or damage to the property of the City of Yakima ONDS or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Contractor to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City of Yakima ONDS or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted. XVII RELATIONSHIP OF THE PARTIES The parties intend that an independent contractor/city relationship will be created by this Contract. The City of Yakima ONDS is interested only in the results to be achieved, the implementation of services will lie solely with the Contractor. No agent, employee, or representatives of the Contractor shall be deemed to be an employee, agent, servant or representative of the City of Yakima for any purpose, and the employees of the Contractor are not entitled to any of the benefits the City of Yakima provides for City Employees. The Contractor will be solely and entirely responsible for its acts and for the acts of its agents, employees, servants, Subcontractors, or otherwise during the performance of this Contract. XVIII TAXES AND ASSESSMENTS Contractor shall be solely responsible for and shall pay all taxes, deductions, and assessments, including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for unemployment and industrial injury insurance, and other deductions from income which may be required by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax or assessment as a result of this Contract, Contractor shall pay the same before it becomes due. XIX QUARTERLY REPORT The Contractor agrees to submit a written quarterly report outlining the progress towards completion of activities included in Exhibit B, to the City of Yakima. XX INSURANCE A. NO INSURANCE It is understood that the City does not maintain liability insurance for the Contractor and/or its employees, agents, officers, and subcontractors. B. COMMERCIAL LIABILITY INSURANCE On or before the effective date of this Contract, the Contractor shall provide the City with a certificate of insurance as proof of liability insurance in the amount of One Million Dollars ($1,000,000.00) that clearly states who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of thjs Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initiated by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. 8 of 13 8/30/05 C. COMMERCIAL AUTOMOBILE LIABILITY INSURANCE On or before the date this Contract is fully executed by the parties, Contractor shall provide the City with a certificate of insurance as proof of commercial automobile liability insurance with minimum liability limit of One Million Dollars ($1,000,000.00) combined single limit bodily injury and property damage. Automobile liability will apply to "Any Auto" and be shown on the certificate. The certificate shall clearly state who the provider is, the amount of coverage, the policy number, and when the policy and provisions provided are in effect (any statement in the certificate to the effect of "this certificate is issued as a matter of information only and confers no right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The policy shall name the City, its elected officials, officers, agents, and employees as additional insureds, and shall contain a clause that the insurer will not cancel or change the insurance without first giving the City thirty (30) calendar days prior written notice (any language in the clause to the effect of "but failure to mail such notice shall impose no obligation or liability of any kind upon the company" shall be crossed out and initialed by the insurance agent). The insurance shall be with an insurance company or companies rated A -VII or higher in Best's Guide and admitted in the State of Washington. D. WORKERS' COMPENSATION The Contractor agrees to pay all premiums provided for by the Workman's Compensation Act of the State of Washington. Evidence of the contractors workers' compensation coverage will be furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services to rendered or performed under this Contract will be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, inducing reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. A. TERMINATION FOR CAUSE If the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 1. The lack of compliance with the provisions of this Contract are of such scope 9 of 13 8/30/05 and nature that the City of Yakima ONDS deems continuation of this Contract to be substantially non -beneficial to the public interest; 2. The Contractor has failed to take satisfactory corrective action as directed by the City of Yakima ONDS or its authorized representative within the time specified by same; 3. The Contractor has failed within the time specified by the City of Yakima ONDS or its authorized representative to satisfactorily substantiate its compliance with the terms and conditions of this Contract, then: The City of Yakima ONDS may terminate this Contract in whole or in part, and thereupon shall notify the Contractor of the termination, the reasons therefore and the effective date provided such effective date shall not be prior to notification to the Contractor. After this effective date, no charges incurred under any terminated portions are allowable. B TERMINATIONS ON OTHER GROUNDS This Contract may also be terminated in whole or in part by mutual agreement of the parties. C. TERMINATION FOR WITHDRAWAL, REDUCTION OR LIMITATION OF FUNDING In the event that funding from the Federal government is withdrawn, reduced or limited in any way after the effective date of this Contract, and prior to its normal completion, the City of Yakima ONDS may summarily terminate this Contract as to the funds reduced or limited, nonwithstanding any other termination provision of this Contract. If the level of funding so reduced or limited is so great that the City of Yakima ONDS deems that the continuation of the program covered by this Contract is no longer in the best interest of the public, the City of Yakima ONDS may summarily terminate this Contract in whole nonwithstanding any other termination provisions of this Contract. Termination under this Section shall be effective upon receipt of written notice by the Contractor or its representative. The City of Yakima ONDS agrees to promptly notify the Contractor of any proposed reduction in funding by Federal or other officials. The Contractor agrees that upon receipt of such notice it shall take appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures do not exceed the funding level which would result if said proposed reduction became effective. This Contract may further be terminated by the City of Yakima upon written demand by the City of Yakima ONDS for assurances that the terms of the Project Description are being timely complied with, if such assurances are not made to the City's satisfaction within thirty (30) days of the date of such written demand. D. CLOSE-OUT In the event that this Contract is terminated in whole or in part for any reason, the following provisions shall apply: 1. Upon written request by the Contractor, the City of Yakima shall make or arrange for payment to the Contractor of allowable reimbursable costs not covered by previous payments. 2. The Contractor shall submit within thirty (30) days after the date of expiration of this Contract, all financial, performance and other reports required by this Contract, and in addition, will cooperate in a program audit by the City of Yakima or its designee 10 of 13 8/30/05 3. In the event a financial audit has not been performed prior to close-out of this Contract, the City of Yakima ONDS retains the right to withhold a just and reasonable sum from the final payment to the Contractor after fully considering the recommendation on disallowed costs resulting from the final audit. XXIII COVENANT AGAINST CONTINGENT FEES The Contractor warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees or bona fide established commercial or selling agency maintained by the Contractor for the purpose of securing business. The City of Yakima ONDS shall have the right, in the event of breach of this clause by the Contractor, to annul this Contract without liability or, in its discretion, to deduct from the Contract price or consideration or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. XXIV CONFLICT OF INTEREST The City may, by written notice to the Contractor: A. Terminate this Contract if it is found, after due notice and hearing, by the City that gratuities in the form of entertainment, gifts, or otherwise offered or given by the Contractor, or agent or representative of the Contractor, to any officer or employee of the City of Yakima, with a view towards securing this Contract or securing favorable treatment with respect to the awarding or amending or the making of any determinations with respect to this contract. B. In the event this Contract is terminated as provided in (A) above, the City of Yakima shall be entitled to pursue the same remedies against the Contractor as it could pursue in the event of a breach of the Contract by the Contractor. The rights and remedies of the City of Yakima provided for in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law. XXV RIGHTS IN DATA The City of Yakima ONDS may duplicate, use and disclose in any manner and for any purposes whatsoever, and have others so do, all data delivered under this agreement. The Contractor hereby grants to the City of Yakima, a royalty -free, non-exclusive, and irrevocable license to publish, translate, reproduce, deliver, perform, dispose of, and to authorize others to do so, all data now or hereinafter covered by copyright: Provided, that with respect to data not originated in the performance of this Contract such license shall be only to the extent that the Contractor has the right to grant such license without becoming liable to pay compensation to others because of such grant. The Contractor shall exert all reasonable effort to advise the City of Yakima ONDS, at the time of delivery of data furnished under this agreement, of all invasions of the right of privacy contained therein and of all portions of such data copied from work not composed or produced in the performance of this agreement and not licensed under this clause. The Contractor shall report to the City of Yakima ONDS, promptly and in written detail, each notice or claim of copyright infringement received by the Contractor with respect to all data delivered under this agreement. The Contractor shall not affix any restrictive markings upon any data, and if such markings are affixed, the City of Yakima ONDS shall have the right at any time to modify, remove, obliterate, or ignore such markings. XXVI RULE OF CONSTRUCTION In the event of an inconsistency in this contract/grant award unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: 1. Appropriate provisions of state and federal statutes and regulations including HUD 11 of 13 8/30/05 Home Regulations. 2. General Terms and Conditions (Exhibit A) 3. Those attachments incorporated by reference herein, including the statement of work/project description, approved HUD grant budget, in the order in which attached, (Exhibit B), 4. City of Yakima Resolution No. R-2005-172 (Exhibit C), and 5. Any other provisions whether incorporated by reference herein or otherwise provided that nothing herein shall be construed as giving preference to provisions of this contract/grant award over any provisions of law. XXVII GOVERNING LAW This Contract has been and shall be construed as having been entered into and delivered within the State of Washington, and it is mutually understood and agreed by each party hereto that this Contract shall be governed by laws of the State of Washington, both as to interpretation and performance. XXVIII VENUE The venue for any action to enforce or interpret this Contract shall lie in the Superior Court of Washington for Yakima County, Washington. XXIX MODIFICATION Either party may request changes in this Contract, however, no change or addition to this Contract shall be valid or binding upon either party unless such change or addition be in writing, and executed by both parties, except budget adjustments as specified in Section IV of this Contract. XXX SEVERABILITY It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any statutory provision of the United States or the State of Washington, said provision which may conflict, therewith, and shall be deemed modified to conform to such statutory provision XXXI PROGRAM INCOME Any program income shall be accounted for by the Contractor, over the contract time period, and shall be reported to the City. Income is to be used to continue or benefit the program, as determined by the intent and purpose of the project. XXXII RETURN OF HOME FUNDS The Contractor shall return to the City all monies provided hereunder by the City to the Contractor if any of the following occur: 1. The Contractor materially changes the primary purpose and scope of the HOME Project as described on Exhibit "B" to the Contract; or 2. The Department of Housing and Urban Development requires a 20 year "Affordability Period" from the date of execution of the Contract, and if the real property that is the 12 of 13 8/30/05 subject of the HOME Project described on Exhibit "B" to the Contract is sold or transferred in any way by the Contractor. XXXIII PROJECT PROCEEDS HOME funds provided by the City of Yakima to the Contractor shall be repaid to the City at no interest from project cash flow if and to the extent that annual net operating income to the Contractor (after project operating expense and first lien debt service) exceeds ten (10) percent of the Contractors investment in the project (including equity and private lending) in any of the first five (5) years after issuance of a Certificate of Occupancy. 13 of 13 8/30/05 BUSINESS OF THE 'CITY COUNCIL A;WASHINGTON AGENDA rSTATEMNT Item No. 411-f 6 For Meeting of November 1, .2005 HEM TIT.LE: 2005,Community Housing DevelopmentOrganization (CHDO) Request .for HOME -.funding -to Turehase .bnilding lots by Yakima 'Valley Partners:Habitat .for Humanity. SUBMITTED BY: Bill Cook, Director of Community and Economic Development s(509)S75-61113.. CONTACT PERSON/TELEPHONE: Bill-Cobabe, Manager of Office ofNeighborhood Developme-nt 'Services (509)575-6101. SUMMARY EXPLANATION: The City sof 'Yakima receives san annual -allocation of HOME Investment -Partnership funds from the federal goverrunent. These organizations _are known as Community Housing Development -Organizations (CHD0s). 'CILDOs are entitled to receive sat lleast 15% ofejnrisdiction's allocated..Federal_HOME -moniesf.HOME:Programiundsrnay be used by the CHDO's for 'housing development, which is _sponsored- and/or owned -by the CHDO. Eligible activities include pre -development costs .and _the acquisition, rehabilitation and new construction of rental housing, homeownership, and rental asSistance. YakimaVlley TartnersiFlabitat for Hu -inanity is requesting :a grant ,of $142;000 of HOME CHDO funds from the 2005-2.006 Federal allocations Sor two .separate project. The first project requests $28,000 for acquisition, lot cleanup, and preparation of a 'single lot at 1314 Jerome Avenue, to provide :a buiding :Site for -one 3 or 4 bedroom home. The -second .project :requests $114,000 for acqdisition of three !existing lots .at the intersection:of Pacific & So. -7th Street and short plat for four single-family 3 sor 4 bedrOom homes sas well as water and sewer -connection fees. This proposal was discussed at ameeting e the City CounciPs ilq6ighborhood Development Sub -Committee -on October 24, 2005; the committee recommended that this proposal be forwarded to the full 'Council for approval. Approval sofThis resolution Will authorize and direct =the City Manger to execute and contract with Yakima Valley Partners Habitat for liumanity, which Will include a project description and a work plan with identification of funding Sources. Resolution X Ordinance -_ Contract .Other(Specify) Funding Source 2005-2006 HOME CHDO Funds APPROVED FOR SUBMITTAL,: City Manager STAFF RECOMMENDATION: Staff recommends approval BOARD/COMMISSION RECOMMENDATION: Recommended for full Council consideration by the Council's Neighborhood Development Subcommittee COUNCIL ACTION: RESOLUTION NO. R-2005 1 7 2 A RESOLUTION approving a $142,000 grant request from 2005-2006 Federal HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties for construction of five single- family 3 or 4 bedroom homes and authorizing and directing the City Manager and the City Clerk to execute all necessary grant documents, including a .grant agreement, between the City of Yakima and Yakima Valley Partners Habitat for Humanity. WHEREAS, the City of Yakima is a recipient of 2005 Federal HOME funds which may be used, among other things, for Community Housing Development Organization Programs; and WHEREAS, the City of Yakima is required by the HOME program regulations to make at least 15% of its annual HOME allocation available to local C:1-1 DO -S; WHEREAS, Yakima Valley Partners Habitat for Humanity is requesting a grant of $142,000 in HOME funds for acquisition of two properties for construction of five 3 or 4 bedroom homes and connection fees for four of those homes; and WHEREAS, at the October 24, 2005, City Council Neighborhood Development Sub -committee meeting, the sub -committee recommended to forward the proposal to full council; and = 1{' WHEREAS, the City Council has determined that it is in the best interest of the City to approve the $142,000 grant request from Yakima Valley Partners Habitat for Humanity for the acquisition of these two properties, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $142,000 in HOME funds to Yakima Valley Partners Habitat for Humanity for acquisition of two properties to construct five single-family homes hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and Yakima Valley Partners Habitat for Humanity. ® Yakima Valley Partners Habitat for Humanity- will inform nP_ighborhoofi b11sin0sse- and residents about their ---�-------.���m_ev*�ov residents plans for the project, and invite public comment. 2. The City Manager is hereby authorized and directed to execute all necessary grant documents between the City of Yakima and Yakima Valley Partners Habitat for Humanity. The final form of these documents shall be reviewed and approved by the City Attomey. ADOPTED BY THE CITY COUNCIL this 1st day, of November, 2005. AtIEST: Si PAUL GEORGE Paul P. George, Mayor fsI KAREN S. ROBERTS City Clerk 11/1b/200b 15:50 bby4b381.JU City of Yakima Office of Neighborhood Development Services (ONDS) Community Housing Development Organizations (CHDO) Project Application Yakima Valley Partners Habitat for Humanity Single Family Home 1314 Jerome IJ/Ib/415 15: nu niTi4Oib17YJ Tyr nFlnl 1-11 PROJECT DESCRIPTION 1. t.PPLij ANT Name of Applicant Organization: Yakima Valley ershabitat for HHumanity. Address: POItoo 9007 Telephone Number: Contact Person: 509-45 -8077 rc Nixon �„� Position with Organization: E ecutive D' ctor 2, LOCATION OF PROPOSED !ROJECT: (Provide Map Identifying Location) Address: 1314 Jt.e Avenue Xakima 98902 City Target Neighborhood: Nort ntrai y izna 3, MITE CONTROL: (Provide Copies of Site Control Documents) Owned Under Option X No Site Control f l 4. SITEOCCUPANCX: Are there currently buildings on the site: Are the buildings occupied? # of occupied apartments Yes No [j Yes Ei No X # of commercial tenants # of tenants to be displaced by project implementation: Families 0 Commercial Tenants 0 City of Yakima Office of Neighborhood Development Services 2005 ClIDO Application 2 11/15/2005 15:50 bn4b38i iU yvr fl- JIAt 5. AESCRIP ' QN nF RO S D PROJECTj. a. Multi -Family b. Rental c. Efficiency Single -Family L i P1 Sales [f1 1 Bedroom I I2 Bedroom 6. ZONING: Current zoning of site: B-1 (Sin a Families) Does current zoning permit proposed use? 7. V. TURE OF PROPOSED. ?RODE Rehabilitation Single Room Occupancy Lease/Purchase X 3 Bedroom or P1 X Yes L X l No New Construction 4 Bedroom 8. 1VUMB .t OF 11_,QUSING, OITS: Total. number of apartments 0 Total number of Single -Family Homes 1 Total number of SRO Rooms 0 Number of units reserved for HOME families at 60% to 80% of median income Number of units reserved for HOME families at 50% to 60% of median income Number of units reserved for HOME families at 50% of median income 0 (at least 20% of HOME assisted units Number of units reserved for HOME families at 25%.50% of median income 1 City of Yakima 3 Office of Neighborhood .Development Services 2005 CHDO Application 11/15/2005 15:5b bby4,itii u Tyr 1 11-IJJJ. 1 n 1 9. RO . " I ARRAT1 A DESCR ' TI' m AN TARGET NEIGIIUO1illOO1 R SIDENT INVQI,VEN ENT [(describe in detail) use additional sheets if necessary] The project involves acquisition of a 40'x130" single lot suitable to provide a building for one 3 or 4 bedroom house to be constructed by Yakima Valley Partners Habitat for Humanity. The targeted property is at 1314 Jerome Avenue and consists of a single lot with an existing vacant fire damaged one -bedroom house. Actual construction of the home will take place in 2006. Currently we are negotiating with several Yakima churches to be the primary sponsors for the house. The specific project that this application refers to is typical of the normal Yakima Valley Partners Habitat for Humanity process detailed below. Volunteers account for a majority of all labor needed on a Habitat job site, Volunteers for this project will be comprised of people from local churches and civic organizations as well as Habitat for Humanity families and friends working to complete their "sweat equity" hours, Often we have volunteers from adjacent homes in the immediate neighborhood. Volunteers will be involved in all areas of the organization including: committee work, job site volunteers and office assistants, Yakima Valley Partners - Habitat for Humanity is a non-profit, non -denominational Christian housing organization that builds homes in partnership with qualified low-income families in the Yakima Valley, Our families' incomes are within 25-50% of the median income for families in Yakima County. We charge no profit for construction., and no interest on the mortgage. This approach makes decent, affordable housing a reality for many families. Yakima Valley Partners Affiliate is comprised of an Affiliate Board of Directors that governs the board. Millard and Linda Fuller founded Habitat for Humanity International in 1976. In the past 28 years, HFHI has completed over 200,000 homes in 100 different countries around the world. Founded in 1986, Yakima Valley Partners Habitat for Humanity has completed 105 new homes during its first 20 year. Those 105 homes represent nearly 600 individual family members whose lives have been changed through this partnership. Also, nearly 1,000 volunteers, both locally and from all over the nation, work on YVP-HFI-I homes each year. Those 105 homes also represent nearly $8,500,000 of additional property value added to the local tax rolls. This is yet another way Habitat for Humanity has aided in stimulating the local economy. How It Works Each year our Board of Directors determines where and how many homes we will be able to build the following year. This is based on budget and land availability in the different communities. We seek to build 50% of our homes in Yakima and 50% in the Mid and Lower Valley. City of Yakima Office of Neighborhood Development Services 2005 CH1)O Application 4 11/15%2l'Jl'15 15: nu �G74�.3 t317G 1 VI I IHLl 1 r11 We then advertise an application meeting for those who would like to apply for a Habitat for Humanity home, At this meeting we explain the process and the Family Selection Criterion. It is as follows: 1. Ability to Repay: Although YVP-HFH charges no profit in the construction of the home, and no interest on the mortgage we hold, the families are responsible for repayment of the actual cost of material, supervision, Iand and overhead of the project, The mortgage payment, whichincludes the principal, taxes and insurance, is often less than the family is currently paying in rent. The mortgage money that is repaid revolves into the construction, of additional homes, This makes Habitat for Humanity a self-perpetuating home ownership program. Qualified families earn between 25% and 50% of the median area income. 2. Willingness to Partner: The chosen family must be willing to invest at least 500 hours of"sweat equity" into their home, or other Habitat homes. They must also attend home ownership classes that are sponsored by YVP-HFH. These classes cover topics such as, home ownership responsibilities, home maintenance, financial planning, etc. 3. Current Living Conditions: The current living conditions of a family must create a burden in at least one of the following areas: - Health and Safety Over Crowding Financial Hardship A follow-up meeting is held two weeks later at the same tirne and location. At this meeting the applications are returned and reviewed for completeness. The applications then go to the Family Nominating Committee for verification of the family selection criteria. When this is complete the families are presented to the Affiliate Board of Directors for approval. The family selection process was initiated for this coming year at our first meeting on October 4th. At that meeting over 120 people were present representing 71 families interested in Yakima housing. Funding The majority of funding for YVP-HFH projects is from foundations, local businesses, churches and individuals. Government grants, when available, are used for land acquisition, infrastructure (sewer, water, etc.) development, and administration costs. City of Yakima (Vico of Neighborhood Development Scrvices 2005 CI DO Application 5 11/15/Lbbn OYJ74JJOl7CJ PROJECT FINANCIAL INFORMATION I.U. PROJECT FINANCING• Total Cost: $ 89,300 CHDO request: $ 28,000 Other financing: $ 61,300 CHDO request as % of total cost 31.4 Term: 15 Years — Yakima Federal Total Cost/Unit $ 89,300 Commitment Status: CHDO Cost/Unit $ 28,000 CHDO req uest from the Citi: Loan:$ Grant:$ 28,000 Funds to be returned to the City; Yes 11 No D If yes, amount to be returned to the City: $ or $ per unit l 1. N01ycHDO FINANCING ThRMS: Total Amount: $ 61,300 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ 20,300 Loan Amount; $ 41,000 Yakima Federal Interest Rate: $ 4.85% Term: 15 Years — Yakima Federal Source of Loan: Yakima Federal Savings and Loan Commitment Status: Source of Funds Contact Person: Yakima Federal — Buddy Cluck Telephone Number: Buddy Cluck — (509) 248.2648 Grant Amount: $ Source of Grant: City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 6 11/1b/2.bk1S 15: 5b 01374017U Commitment Status: 11,1,111-11 Source of Funds Contact Person: PROJECT, COSTS (1) AC t!ISITION: TOTAL COST: COST/UNIT: Land Land and ExistinBu g ilding 17,000 17 000 _ Titleand Recording 1,500 1,500 Other: (specify) BARD COST: Demolition 4,000 4000 Site Work 5500 5,500 Rehabilitation Construction 57,000 57_2000 Other (specify) Building Permits, Water/Sewer Hookup RELOCATION; 4,300 4,300 SOFT' COSTS: Legal Fees Survey Architect Design Fee Architect Inspection Fee EngineeringFees" Appraiser 300 300 Acco intin _ Other Professional Fees Insurance Marketing FINANCING COSTS: Credit Report Loan Ori it...._________ Fee Points Other: Prepaid Interest RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve -DEVELOPER FEES: TOTAL PROJECT COST: 89,300 89,300 City of Yakima Office of Neighborhood Development Services 2005 CH'DO Application 7 11/10/!UU 10:0U JUJ..+ J.301JU (1) Please note; The above analysis does not include operating funds, CASH FLOW SALES PROJECTS Income: Sales price per unit $ 80,000 # of units; 1 Gross Income: $ 80,000 Marketing $ 0 Financing $ 0 Other (specify) $ 0 Total Expenses: $ 0 Net Income froth, Sales: $ 80,000 FrQAosed Terstuotbale,to First -Time Homebuvers: (loan, grant, forgivable loan, combination, interest rate loan, term of loan) Yakima Valley Partners Habitat for Humanity charges no profit in the construction of the home and charges zero interest on the mortgage we hold, but the home owner is responsible for the full repayment of the actual cost of the project. Actual cost is defined as subsidized land cost, infrastructure, supervision, administration and overhead, The mortgage is secured with two Promissory Notes. The First Promissory Note secures the actual sale price to the family that includes the items stated above. The Second Promissory Note secures the difference between the sale price and the appraised value of the home at the time of sale. The Second Promissory Note is a forgivable loan that is reduced by five percent per year for the twenty-year term of the mortgage, If the homeowner should sell, convey or refinance, the Second Promissory Note becomes due. Yakima Valley Partners Habitat for Hutnanity has the Right of First Refusal should the homeowner decide to sell. If CHDO funding will be transferred to First -Time Homebuyer as a loan: Annual Income front CHDO Loans: $ (include both interest and principal) City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 11/1b/2iC1b 15: OU OITJ403017C1 1 V I I IPIlI l 1 P1 1 &nosed use of uall Inea ale from Loa> s: (add extra pages if needed) All funds returned to Yakima Valley Partners Habitat for Humanity in the form of mortgage payments revolve into the construction of other low-income housing. Services in Addition t, o fiousir►g: (add extra pages if needed) Describe the services in addition to housing, to be provided to project residents by the CHDO: Zero Profit on the Sale Zero Interest on the Mortgage Self -Help Opportunity (500 hours of "sweat equity") Home Owner Classes Home Maintenance Legal Aspects of Home Ownership Budgeting Assimilation into the Community Bi -annual Homeowner Meetings Monthly Furniture Sales of donated home furnishings After sales Home Owner Consultations City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 9 11/15/2005 15:bi bey45i.LiI1 !VI 1 In1J1 1 n 1 PROJECT SCHEDULE ACJ'jQN: Timet Date in Months from Prosect Approval: Site: Option Acquisition NON-CHDO Financing: Application Conditional Commitment Firm Commitment Design: Selection of Architect Preliminary Designs Final Designs Bidding: Advertise Open Bids Award Bids Construction: Begin Construction Complete Construction Rent Up/Sell City of Y*kime Office of Neighborhood Dcvelopment Services 2005 CHDO Appiieetion Completed Npvember 23, 2005 Pre -approved Loan Funding Completed April 1, 2006 Completed Cnraleted _._.... All Designs are on f le in our office N/A N/A No bids awarded. All worst is done by std and volunteers 10 05/01/06 _ _-- 07/31/06 09/01/06 11/1b/241k1b lb: bE7 ony4o�r�l�e� 1VI iina.,ilni PROJECT DEVELOPMENT TEAM The following companies or individuals constitute the development team. Where individual members have not yet been identified, the City must be notified as they are selected. Staff Contact Person: Michael R. Nixon Consultant: Attorney: Bryan Myre Architect: Engineer: Appraiser: Other Financial Sources: Yakima Federal Savings and Loan, Buddy Cluck, CRO; Other (specify): Building Committee: Eric Miller, Chairman; David Picatti, Engineer; Scott Gust, Contractor; Ben Greco; John Wind; Ron Anderson, Realtor City of Yakima Office of Neighborhood Development Services 2005 CHDO Application It 11/15/225 15:5e �by4hiii17YJ Y yr r1HDl i -1 I CER1114iCATION I hereby certify that the above statements are true; that .I am authorized to sign this application and to make these statements, on behalf of the applicant organization; and that the organization understands that misrepresentation of any facts which leads to the improper allocation and expenditure of public funds may result in legal action against the organization for retrieval or any such funds and appropriate penalties Signed: R. Nixon October 20, 3005 Signature Date Michael R. Nixon Name Executive Direc`or Title YakimaTallev Partners Habitat for Hum ' ani y Organization City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 12 11/15/2005 15:5U - 1 I VI i IHLl I P11 Explanation of Leveraging Tool with Yakima Federal Savings Bank Yakima Federal Savings and Banner Banks provide below market rate construction loans of approximately $45,000 to Yakima Valley Partners Habitat for Humanity, When construction is completed the construction loan is converted to a permanent home loan with a term of twenty years at a rate of 4.5% interest. What is unique about the leveraging tool is the following: Yakima Valley Partners Habitat for Humanity uses donated funds to create a pre -paid interest account with the bank. The amount needed to pay the interest on a $45,000 loan for twenty years is approximately $23,000. When Yakima Valley Partners Habitat for Humanity sells the home to the low-income buyer on a Real Estate Contract, the homebuyer begins to make monthly principal payments to Yakima Valley Partners Habitat for Humanity. When we receive the principal payment we forward it to the bank. When they receive the principal payment from us they deduct the necessary interest from the pre -paid interest account. The advantages of this program, are as follows: It allows us to Ieverage the donor's contribution at a rate of approximately 2;1. It provides a no -risk loan for the banks since the interest is pre -paid. The low-income homebuyer pays no interest, making home ownership possible. It allows us meet the needs of a greater number of families, City of Yakima Office of Neighborhood Development Services 2005 CHDO Application 13 Department or rroperty ttSSVSS111c111D Value History Information Year TCA Use Code Market Land Market Imp New Const CU Land CU Imp 2006 333 11 Single Unit 15000 1600 2005 333 11 Single Unit 17500 1500 2004 333 11 Single Unit 17500 15100 2003 333 I 11 Single Unit 17500 14100 2002 333 11 Single Unit 17500 14100 2001 333 11 Single Unit 13000 14100 0 2000 333 11 Single Unit 13000 34500 0 http://www.co.yakima.wa.us/assessor/propinfo/asr_info.asp 11/30/2005 t/epartment 01 rroperty 1 uE,v i J1 1 Parcel Number: 1 81 31 334475 Situs: 1314 Jerome Av, Yakima Size: 0.12 Acre(s) Owner(s): Sally Ann Maine Tax Code Area: 333 Property Use: 11 Single Unit Tax Breakdown Information" District Excess Tax Regular Tax Total 'County Emergency Sery $0.00 $4.64 $4 64 State School Levy $0.00 $51.99 $51.99 Yakima City Regular $1 45 $65.35 $66.80 Yakima County Flood Control $0.00 $1.85 $1 85 Yakima County Regular $1 47 $31 76 $33.23 Yakima Maintenance/Operations $55.86 $0.00 $55.86 Yakima School Bonds $34 14 $0.00 $34 14 `Because of the calculations used, some rounding errors may exist. Residence Information Quality Year Built/Eff Year Stories Main Sqft Upper Sqft Bsmt Sqft Bedrooms Bathrooms (fl 3/4,1/2) Garage (bsmt/att/bltin) Carport Low- Cost 1910/1953 1 600 0 0/0 2 1/0/0 0/0/0 0 Land Information Record # Class Value Size Value Method Water Sewer 1 1 Lot(s) Lot N/A N/A http://www. co.yakima.wa.us/assessor/propinfo/asr_info.asp 11/30/2005