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HomeMy WebLinkAboutR-2008-009 Habitat for Humanity ContractRESOLUTION NO. R-2008-09 A RESOLUTION authorizing the City Manager to execute a Contract with Habitat for Humanity for the use of $38,700 in 2007 HOME funds to be used for the purchase and preparation of Tots for two new homes for low income persons. WHEREAS, the City of Yakima is the annual recipient of federal HOME funds; and WHEREAS, by federal regulation the City is required to make available at least fifteen percent (15%) of HOME funds to local Community Housing Development Organizations (CHDO's); and WHEREAS, Habitat for Humanity - Yakima Valley Partners is a long time local CHDO with an excellent record of providing affordable new homes to local residents; and WHEREAS, Habitat for Humanity has requested $38,700 in 2007 HOME CHDO funds to assist in the purchase of land for the construction of two new homes; and WHEREAS, the Yakima City Council finds it in the best interest of the community and its citizens to continue to assist in the good works of our local Habitat for Humanity chapter; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute the attached and incorporated City of Yakima Office of Neighborhood Development Services Contract between the City of Yakima and Habitat for Humanity. ADOPTED BY THE CITY COUNCIL this 15th day of January,. 2008. ATTEST City Clerk David E •ter, Mayor CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization: Habitat for Humanity (hereinafter "Contractor") 2. Address: 2500 S. 26th Ave. , Yakima, WA. 98909-0007 3. Phone: (509) 453-8077 4. Contact Person: Michael Nixon 5. Title of Service or Program being Funded:Acquisition of two contiguous parcels of property. 6. Amount of Contract Award: $ 38,700 Grant (HOME) 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight, December 31; 2008, unless sooner terminated byeither 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-zcc4-177, 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 _p rties have executed this Contract as of the day and year indicated below. j Wi am Cook, at' D Direc R.A. Zais, Jr., City actor Title:C-` .- l _- _I ATTEST: City Clerk City Contract No.: AO /f / 5d/cj/4) l_ o20DS- /./ -yore.) 3/DLA Date 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 $ 38,700.00 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 1/15/08 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 1/15/08 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 1/15/08 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 1/15/08 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 1/15/08 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 aright 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 1/15/08 Code -Secured Transactions" as codified iri 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 1/15/08 C. D. E. 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. 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. 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 be 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 offic als from any and all liability, loss, fines, penalties or damage, indcludeing 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, orjare 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: 9 of 13 1/15/08 1. The lack of compliance with the provisions of this Contract are of such scope 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 10 of 13 1/15/08 Yakima or its designee. 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: 11 of 13 . 1/15/08 1. Appropriate provisions of state and federal statutes and regulations including HUD 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 -21x1' J9 (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 12 of 13 1/15/08 Period" from the date of execution of the Contract, and if the real property that is the 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 1/15/08 EXHIBIT "B" Yakima Valley Partners ,�juildn�g houses, building • hope asitat for Humanity`' November 25, 2007 Bill Cobabe City of Yakima Office of Neighborhood Development 112 S. 8th St Yakima, WA 98%1-3022 Dear Bill, It is with great pleasure I submit this grant proposal for the acquisition of two contiguous parcels of property at the cornunon address of 305 S 4th Street in Yakima. The lots are currently vacant due to a fire which destroyed a large hone. The lots are zoned R-3 thus permitting the opportunity for Yakima Valley Partners to construct a shared wall housing unit. This would be the first opportunity we have had to build a multiple family unit. Many of the Habitat for Humanity affiliates are finding this is the only way they are able to construct homes that are affordable for our very low income families. Please let me know if there is additional information I need to submit. Michael R. Nixon Executive Director P(; Po; 906 250{ ' 26t6 Avenu< `�nitiiii V,!L. 93NY.--000 (=,09) z:5:—R0770h c ;f)9' L!;=.-5190 fa;. \'al(iI andtI<l; 01( Yakima Valley Partners habitat for Humanity CHDO 2007 Proposed Project Double Parcel Acquisition 1. APPLICANT Yakima Valley Partners Habitat for Humanity PO Box 9007 Yakima, WA 98909-0007 509-453-8077 Contact Person: Michael R. Nixon 2. LOCATION OF PROPOSED PROJECT: (See Attached Map) Parcels #191319-42421 #191319-42422 305 S 4th Street Yakima, WA 98901 City Target Neighborhood: Southeast Yakima Zoning: R-3(Multiple Families) 3. PROJECT NARRATIVE The project involves acquisition of two contiguous lots suitable to provide a building site for a shared wall construction two family homeownership project to be constructed by Yakima Valley Partners Habitat for Humanity. The targeted properties are at 305 S 4th Street, across the street from the Union Gospel Mission Youth House. One of the lots is a full lot 140' x 50' and the second is a contiguous parcel 140' x 17.5'. The two lots combined provide 9,540 sq. ft.. Actual construction of the building will take place in 2008. Currently we are negotiating with several Yakima churches to be the primary sponsors for the house. Site preparation will include completing the filling in of existing foundation removal cavity and potential soil compaction. Additionally water hookup will be necessary including new meter or meters. 4. PROPOSAL REQUEST Lot Acquisition: $28,500 Lot Cleanup and Preparation $ 1,000 Permits and hookups $ 9,200 Total $38,700 Michael R. Nixon Executive Director November 16, 2007 City of Yakima Office of Neighborhood Development. Services (ONDS) Community Housing Development Organizations (CHDO) Project Application Yakima. Valley Partners Habitat for Humanity Double Parcel Construction 305 S 4th Street, Yakima, WA 98901 November 16, 2007 PROJECT DESCRIPTION 1.. APPLICANT Name of Applicant Organization: Yakima Valley Partners Habitat for Humanity Address: PO Box 9007 Yakima, WA 98909-0007 Telephone Number: 509-453-8077 Contact Person: Michael R. Nixon Position with Organization: Executive Director 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: 305 S 7th Street, Yakima, WA 98901 City Target Neighborhood: Southeast Yakima 3. SITE CONTROL: (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 Yes No Yes No # of commercial tenants # of tenants to be displaced by project implementation: Families 0 City of Yakima Office of Neighborhood Development Services 2007 CHDO Application 2 X X Commercial Tenants 0 5. DESCRIPTION OF PROPOSED PROJECT: a. Multi -Family Single -Family b. Rental Sales c. Efficiency 1 Bedroom x 6. ZONING: 1 Bedroom Current zoning of site: R-3 (Multiple Families) Does current zoning permit proposed use? 7. NATURE OF PROPOSED PROJECT: Rehabilitation Single Room Occupancy Lease/Purchase X 3 Bedroom or X Yes U No New Construction 4 Bedroom X 8. NUMBER OF HOUSING UNITS: Total number of apartments: 0 Total number of Single -Family (Shared Wall) Homes: 2 Total number of SRO Rooms 0 Number of units reserved for HOME families at 60% to 80% of median income 0 Number of units reserved for HOME families at 50% to 60% of median income 0 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 2 City of Yakima Office of Neighborhood Development Services 2007 CHDO Application 3 9. PROGRAM NARRATIVE DESCRIPTION ANI) TARGET NE1GIIBORHOOD RESIDENT INVOLVEMENT [(describe in detail) use additional sheets if necessary] The project involves acquisition of a two contiguous parcels at 305 S 4t'' Street, Yakima to enable construction of either a shared wall multiple owner building or a single family residence. The two lots, one a full lot and the other a third of a lot will provide sufficient land for a two family shared wall construction residence to be constructed by Yakima Valley Partners Habitat for Humanity. Actual construction of the home will take place in 2008. 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, civic organizations, and businesses 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 construction 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 25-60% 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. Founded in 1986, Yakima Valley Partners Habitat for Humanity has completed 118 new homes during its first 22 year. Those homes represent nearly 650 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 118 homes also represent nearly $11,000,000 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. Tliis 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 Seryices 2007 CHDO Application 4 We then advertise an application meeting for those who would like to apply for a Habitat for 1-lumanity home. At this meeting we explain the process and the Family Selection Criterion. It is as follows: 1. Ability to Repay: Although YVP-I-IFH 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, land and overhead of the project. The mortgage payment, which includes 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 60% of the median area income. 2. Willingness to Partner: The chosen families 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 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 process for this coming year will commence on January 19, 2008. At that meeting we anticipate over 70 families will attend 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. We are recruiting sponsors for this particular project. Additionally Yakima Valley Partners will fund the project through income received from ReStore profits, general donations, and funds from house payments being made by earlier home owners. City of Yakima Office of Neighborhood Development Services 2007 CHDO Application 5 PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost: $ 168,806 CHDO request: $ 38,700 Other financing: $ 130,106 CHDO request as % of total cost 22.9 `%, Total Cost/Unit $ 84,403 Commitment Status: Tentative commitment has been given by Yakima Federal. Letter to be provided week of November 26-30. CHDO Cost/Unit $ 19,350 CHDO request from the City: Loan:$ Grant:$ 38,700 Funds to be returned to the City: Yes No IXI If yes, amount to be returned to the City: $ or $ per unit 11. NON-CHDO FINANCING TERMS: Total Amount: $ 130,106 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ 49,106 Loan Amount: $ 82,000 Yakima Federal Interest Rate: $ 5.3 % Term: 15 Years — Yakima Federal Source of Loan: Yakima Federal Savings and Loan Commitment Status: Tentative commitment has been given by Yakima Federal. Letter to be provided week of November 26-30. Source of Funds Contact Person: Yakima Federal Savings and Loan Buddy Cluck, Community Reinvestment Officer Telephone Number: (509) 248-2648 Grant Amount: $ Source of Grant: Commitment Status: . Source of Funds Contact Person: City of Yakima Office of Neighborhood Development Services 2007 CHDO .Application PROTECT COSTS (1) ACQUISITION: TOTAL COST: COST/UNIT: Land 27,500 13,750 Land and Existing Building Title and Recording 1,000 500 Other: (specify) HARD COST: Demolition Site Work 5,000 2,500 Rehabilitation Construction 138,606 62,203 Other (specify) Building Permits, Water/Sewer Hookup 9,200 4,600 RELOCATION: SOFT COSTS: Legal Fees Survey Architect Design Fee Architect Inspection Fee Engineering Fees Appraiser Accounting Other Professional Fees Insurance Marketing FINANCING COSTS: Credit Report Loan Origination Fee Points Legal Other: Prepaid Interest 1,700 850 RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve DEVELOI'ER FEES: TOTAL PROJECT COST: $168,806 $84,403 (1) Please note: The above analysis does not include operating funds. City of Yakima Office of Neighborhood Development Services 2007 CHDO Application 7 CASH FLOW SALES PROJECTS Income: Sales price per unit 83,000 4 of Units: 2 Gross Income: $ 166,000 Expenses: Marketing $ 0 Financing $ 0 Other (specify) $ 0 $ Total Expenses: $ 0 Net Income from Sales: $ 166.000 Proposed Terms of Sale 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 actnal 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 Humanity 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 from CHDO Loans: $ (include both interest and principal) Proposed use of Annual Income from Loans: (add extra pages if needed) All funds returned to Yakima Valley Partners Habitat for Humanity in the form of mortgage payments revolve into construction of additional very low-income homeownership housing. City of Yakima Office ofNeighborhood Development Services 2007 C1-IDO Application 8 Services in Addition to Housing: (add extra pages if needed) Describe the services in addition to housing, to be provided to project residents by the CI-IDO: 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 -sale Home Owner Consultations City of Yakima Office ofNeighborhood Development Services 2007 CKDO Application 9 PROJECT SCHEDULE ACTION: Target Daft in Months from Project Approval: Site: Option Acquisition NON-CHDO Financing: Application Conditional Commitment Film 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 of Neighborhood Development Services 2007 CHDO Application Completed December 15, 2007 Pre -approved Loan Funding December 15, 2007 July 1, 2008 Completed — Yakima Valley Partners February 29, 2008 May 1, 2008 N/A N/A No bids awarded. All work is done by staff and volunteers 10/01/08 02/28/08 Families selected before construction 10 PROJECT DEVELOPMENT TEAM The following companies or individuals constitute the development team. Where individual members have not yet been identified, the City must he notified as they are selected. Staff Contact Person: Michael R. Nixon Consultant: Attorney: Kevin Naught Architect: Engineer: Appraiser: Other Financial Sources: Yakima Federal Savings and Loan, Buddy Cluck, CRO; Other (specify): Building Committee: Eric Miller, Chairman; David Picatti, Electrical Engineer; Scott Gust, Contractor; Ben Greco; Brian McGuire, AGC; Ron Anderson, Realtor City of Yakima Office of Neighborhood Development Services 2007 CFIDO Application 1! CERTIFICATION I hereby certify that the above statements are true; that l 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: November 16, 2007 Signature Date Michael R. Nixon Name Executive Director Title Yakima Valley Partners Habitat for Humanity Organization City of Yakima Office of Neighborhood Development Services 2007 CHDO Application 12 LOCATION MAP 305 S 4th Street Yakima, WA 98901 Y alama County U15 Yakima County - Washington Land Information Portal [Print Map] [Close Map] Page 1 of I cc arn 3A5' 3't61:' +s 474-f sVi� .. ✓ Z 3'\' ,ay -to-'61 4.. ,A244�' �5 ' ' �,-/____,V642453 42q,5 % 5A0 _ \ _ 42 \ +z 42A52 42g4b �' 1 t p24-51 �" 42 - 1 Map Center: Range:1 9 Township:13 Section:1 9 City Limits Sections WWVII.YAKIMAP.COM Yakima County GIS 128 N 2nd Street Yakima, WA 98901 (S09)574-2990 One Inch = 300 Feet Feet 200 400 MAP AND PARCEL DATA ARE BELIEVED TO BE ACCURATE, BUT ACCURACY IS NOT GUARANTEED: THIS 15 NOT A LEGAL DOCUMENT AND SHOULD NOT BE SUBSTITUTED FOR A TITLE SEARCH. APPRAISAL, SURVEY, FLOODPLAIN OR ZONING VERIFICATION Copyright (C) 2006 Yakima County Pnmed On 11/2512007 417:51 PM Yakuna (;ounty liL� Yakima County - Washington Land Information Portal c.r,nr.,, er_ I lalnu:, LOU., I `Jy" - First American Title www.yakimatitfe.com 500.240.7550 Assessor IPlanntng Real Estate I FAQ Help Levet cl Search Tools I Overview Search By: Parcel Number. Parcel P. ' Enter n complain nr pnrlral PARCEL NUMBER Parcel Numbers roust be at least It characters Click the Search brown la canlume, • :Search) ['age 1 01_ 1 MapScale: 1inch=:501tt. 'Overlaye: Aerial Pnotography: • ❑FEMn Eltynflce/nr0.0s" ❑ Contours ❑ Ufilifies ' :MapSlze: Large (1260x102.1) .Maps brought to you -by: Valley Title Guarantee T110, insurance F. [� •:(.. Escrow SOrvicfr (509) 248-4442 Copyright (C) 2006 Yakima n t y Eeslrng(n) 1 Nonnrng(a) Longnude(E)1 Laatude(N) cllcic Map to: Recenter Map One Inch =50Feel . Feet '20 -40 60 B0. .Report '-, CONSTRUCTION ESTIMATES ESTIMATED PER UNIT COSTS FOR A 2 FAMILY SHARED WALL CONSTRUCTION RESIDENCE TWO 3 or 4 BEDROOM, 1 1/2 BATH UNITS YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY Building Permit $ 950.00 Equipment Water Hook-up $ 1,850.00 Range $ 325.00 Excavating & Grading $ 2,000.00 Hood $ 140.00 Concrete Refrigerator $ 798.00 Foundation $ 1,475.00 Landscaping $ 1,500.00 Walks & Steps $ 1,050.00 Fence $ 1,200.00' Porch $ 350.00 Miscellaneous Driveway Clearing Lot $ 500.00 Gravel $ 300.00 Shed $ 800.00 Lumber Site Supervisor $ 9,000.00 Rough $ 5,700.00 Finish $ 5,700.00 Subtotal Basic Costs $ 60,668.00 Sanitation Overhead $ 8,635.00 Plumbing $ 2,800.00 SUB -TOTAL $ 69,303.00 Sewer $ 1,800.00 Roof Land $ 13,750.00 Trusses $ 2,200.00 Title and Recording $ 500.00 Composition $ 1,100.00 Financing Cost $ 850.00 Wall & Ceiling Drywall $ 1,600.00 TOTAL $ 84,403.00 Electric Tape & Texture $ 945.00 Wiring $ 2,600.00 Fixtures $ 500.00 Insulation $ 2,000.00 Hardware Heating Millwork Glass Painting Floors Rough $ 300.00 Finish $ 325.00 Electric $ 950.00 Trim $ 800.00 Cabinets $ 2,500.00 Doors $ 1,500.00 Glazing $ 850.00 Bath Cabinet $ 350.00 Exterior $ 585.00 Interior $ 825.00 Vinyl $ 300.00 Carpeting $ 1,200.00 Laminate $ 1,000.00 Yakima Valley Partners Habitat for Humanity 2007 YAKIMA FEDERAL SAVINGS AND LOAN LETTER OF COMMITMENT November 12,2007 Mike Nixon Yakima Valley Partners Habitat for Humanity 2500 S. 26th Ave. Yakima WA 98907 Dear Mike, Thank you again for allowing Yakima Federal Savings & Loan to participate in your mission of eliminating poverty housing in the Yakima Valley. For several years now, our partnership has proven to be very beneficialto not only the individual families who help build and then purchase the homes, but also for the entire community in which they are located. In the past Yakima Federal has provided a loan to Yakima Valley Partners in the amount of $41,000.00 for each of the homes that have been built. We have provided this loan at one percent (1%) below what ever our thirty year fixed rate is at the time the loan is originated and also waive the one and a half percent (1.5%)origination fee, $400.00 appraisal fee and $250.00 underwriting fee. Based on the great success this partnership has generated, please accept this letter as our commitment to continue providing this program in the future. It goes without saying that should your family selection, construction process or loan servicing changes; we will need to review the program to determine if any modifications will need to be made. Please pass on our appreciation to your staff for the great work you are doing in our community. Sincerely, f,g,f Buddy Cluck CRA Officer/Assistant Secretary OFFICES • DOWNTOWN • 118 E. YAKIMA AVE.- 248-2634 • STADIUM • 3910 TIETON DRIVE - 965-5042 • ORCHARD PARK - 7105 TIETON DRIVE • 965-6080 "ASCO - 3604 WEST COURT - 547-7574 • RICHLAND - SWIFT & JADWIN • 943-3144. KENNEWICK - 3350 WEST CLEARWATER AVE - 783-1474 • GAGE • 8909 W. GAGE BLVD. • 735-6696 PROSSER • 601 MARKET STREET- 786-2366 • SUNNYSIDE • 801 EAST EDISON - 837-4555. ELLENSBURG - 5TH & PINE - 925-5338 2007 FISCAL YEAR FINANCIAL STATEMENT 3:17 PM 11/13/07 AccruaI Basis Yakima Valley Partners Habitat for Humanity Statement of Financial Position As of June 30, 2007 ASSETS Current Assets Checking/Savings 1000 • Cash - Operating Account 1005 • Cash - Homeowner Reserve 1006 • Banner Bank 1010 • Petty Cash 1020 • Cash -ReStore Account 1021 • Restore Credit Card Account 1022 • Restore Petty Cash 1023 • Restore Cash Drawer 1024 • ReStore Certificate of Deposit Jun 30, 07 149, 576.53 63,167.25 4,999.75 150.00 195, 801.65 27,869.81 200.00 750.00 20,265.89 Total Checking/Savings 462,780.88 Other Current Assets 1100 • AIR from ReStore 2,235.31 1101 • AIR -Restore Customers 726.45 1250 • Prepaid Insurance 7,757.39 1255 - Prepaid Vacation, Holiday, Sick 1,517.34 1400 • Inventory 5,855.61 1403 • Land Held for Construction 126,454.67 1405 • Construction In Progess 438,035.98 1410 • Finished Goods 1,054,973.18 14208 • Banner Bank Pre -Paid Interest 21,351.87 1488 • M/C Transfers from Cash Two -124,395.33 1489 • M/C Transfers to Cash One 124,395.33 1490 • FFH Transfers from Cash Two -62,488.29 1491 FFH Transfers to Cash One 62,488.29 1492 • Transfer funds from Restore to 169,002.94 1493 • Transfer to Gen. acct from rest -169,002.94 1498 • Undeposited Funds -Restore -1,167.57 Total Other Current Assets 1,657,740.23 Total Current Assets 2,120,521.11 Fixed Assets 1500 • Land 1505 • Buildings 1510 • Equipment 1515 • Accumulated Depreciation 1520 • Equipment -Restore 1521 • Accum Depr, Equipment -Restore Total Fixed Assets Other Assets 1800 • Mortgage Receivable 1900 • Unamortized Loan Discount 223,040.60 416,002.33 57,927.68 -85,589.00 71,121.93 -8,156.00 674,347.54 2,156,168.10 -1,082,876.85 Total Other Assets 1,073,291.25 TOTAL ASSETS 3,868,159.90 LIABILITIES 8 EQUITY Liabilities Current Liabilities Accounts Payable 2000 • Accounts Payable 16,492.26 Total Accounts Payable 16,492.26 Other Current Liabilities 2002 • Restore Accounts Payable 3,179.78 2003 • ReStore-Short-Term Defer'd Rev. 25.00 2040 • Sales Tax Payable 2,927.35 2050 • Insurance Payable 7,222.03 2090 • Accrued Comp. Time Pay 33.82 2091 • Accrued Vacation Pay 9,442.03 2092 • Accrued Holiday Pay -Program 'ee 720.00 2093 • Accrued Sick Pay 12,656.18 Page 1 3:17 PM 11/13/07 Accrual Basis Yakima Valley Partners Habitat for Humanity Statement of Financial Position As of June 30, 2007 2100 • Payroll Liabilities 2211 • Refundable Deps Presson Leases 2285 • Yak Fed Passthrough 2300 • Reserves Payable 2400 • Home Deposits & Downpayments Jun 30, 07 6,351.24 1,800.00 280.96 56,505.05 59,000.00 Total Other Current Liabilities 160,143.44 Total Current Liabilities Long Tenn Liabilities 2800 • N\P - Neighborhood Housing 2806 • N/P Yak Fed 2 2807 • N/P Buehler 2850 • Yak. Fed. Construction Loans 2850B • Banner Bank Construction Loans 176,635.70 12,375.00 23,554.07 420,000.00 951,493.27 42,733.33 Total Long Term Liabilities 1,450,155.67 Total Liabilities 1,626,791.37 Equity 3000 • Retained Earnings 1,932,900.16 Net Income 308,468.37 Total Equity 2,241,368.53 TOTAL LIABILITIES & EQUITY 3,868,159.90 Page 2 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No 6 For meeting of January 15, 2008 ITEM TITLE A resolution authorizing execution of a Contract with Habitat for Humanity for the use of $38,700 in 2007 HOME funds to be used for the purchase and preparation of lots for two new homes for low income persons. SUBMITTED BY William R. Cook, Director, Community and Economic Development CONTACT PERSON/TELEPHONE. Bill Cobabe, ONDS Manager/575-6101 SUMMARY EXPLANATION Each year the City of Yakima receives HOME funds from the federal government to assist with affordable housing in our community One part of this grant requires that the City make available at least fifteen percent (15%) of the HOME funds to local non-profit housing organizations designated by the City as Community Housing Development Organizations (CHDO's) for use in their programs. This item concerns a request for 2007 HOME funds by Habitat for Humanity, a local CHDO Habitat for Humanity has been constructing new homes for very low-income families throughout the Yakima Valley for many years. They have partnered with the City and its HOME funds to build several homes in the City They are now requesting $38,700 in HOME funds to purchase land in the southeast section of Yakima for the construction of two new homes. These homes will be built in part with the labor of the new owners, who will be selected by Habitat for Humanity The buyers will repay the price of the homes to Habitat, who will use theserepayments to continue to build affordable homes. Resolution X Ordinance Contract X Mail to (name and address) Funding Source 2007 HOME funds APPROVED -FOR SUBMITTAL. City Manager STAFF RECOMMENDATION Adopt resolution BOARD/COMMISSION RECOMMENDATION The Council Neighborhood Development Committee reviewed this request on December 12, 2007 The committee recommended that the request be presented to the full Council COUNCIL ACTION