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HomeMy WebLinkAboutR-2004-044 OIC of Washington Grant RequestRESOLUTION NO. R-2004 - 44 A RESOLUTION approving a $75,000 grant request from 2004 federal HOME funds to OIC of Washington to construct five (5) single-family homes located within the target area 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 OIC of Washington. WHEREAS, the City of Yakima is a recipient of 2004 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, OIC of Washington is requesting a grant of $75,000 in HOME funds to construct five (5) new single-family homes located in the target area; and WHEREAS, at March 1, 2004, 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 $75,000 grant request from OIC of Washington for the construction of five (5) new homes, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $75,000 in HOME funds to OIC of Washington to construct five new single-family homes is hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and OIC of Washington. • OIC of Washington 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 and OIC of Washington. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 16th day of March, 2004. ATTEST: Paul P. George, Mayor City Clerk CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization: OIC of Washington (hereinafter "Contractor") 2. Address: 815 Fruitvale Blvd., Yakima, WA 98902 3. Phone: (509) 452-2235 4. Contact Person: Chris Link 5. Title of Service or Program being Funded: Five New Single -Family Homes 6. Amount of Contract Award: $ 75,000 (HOME) 7. The term o this Contract shall commence upon execution hereof and shall terminate at midnight 31/OS , 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.2004-44 , 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 WITNES THEREOF the parties have, executed this Contract as of the day and year indicated below. 3/24.64 D City Contract No.: CITY CONTRACT NO:, RESOLUTION NO' Date 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. I! 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 $ 75,000 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 shalt 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. 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 of 13 05-22-04 2. When the revision of the Contractor budget does not exceed ten percent (1 O%) 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. 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). 3 of 13 05-22-04 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 review and assessment in determining whether the City must prepare an Environmental Impact Statement. 4 of 13 05-22-04 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 such action as may be required to ensure full compliance with the provisions of this clause, including sanctions for noncompliance. 5 of 13 05-22-04 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 attomey or his/her responsible parent or guardian or as otherwise provided by taw. 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 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 6 of 13 05-22-04 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 andtor 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 Code -Secured Transactions" as codified in Article 9A of RCW Chapter 62A. 7 of 13 05-22-04 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 this Contract. The policy shall name the City, its elected officials, officers, agents and employees as additional insured's, 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 05-22-04 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 insured's, 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 alt 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 05-22-04 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 05-22-04 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 05-22-04 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. 2004- 44 (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 12 of 13 05-22-04 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 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 05-22-04 EXHIBIT "B" PROJECT DESCRIPTION 1. APPLICANT Name of Applicant Organization: OIC of Washington Address: 815 Fruitvale Blvd Yakima, Washington 98902 Telephone Number: (509) 452-2235 Contact Person: Chris Link Position with Organization: Housing Director 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: The proposed location consists of five (5) sites with the following addresses: 716 South 6th Street 801 south 6th Street 508 East Adams Street (change to 802 South 6th Street) 804 South 6th Street 806 South 6th Street City Target Neighborhood: Yes or No (circle one) 3. SITE CONTROL: (Provide Copies of Site Control Documents) Owned X Under Option No Site Control 4. SITE OCCUPANCY: Are there currently buildings on the site: Are the buildings occupied? Yes No Yes No X X # of occupied apartments 0 # of commercial tenants 0 # of tenants to be displaced by project implementation: Families 0 Commercial Tenants 0 Neighborhood Dev. HOME Invitation for Proposals 10/27/03 1 5. DESCRIPTION OF PROPOSED PROJECT: a. Multi -Family b. Rental c. Efficiency 6. ZONING: Single -Family Sales 1 Bedroom X X 2 Bedroom Single Room Occupancy Lease/Purchase 3 Bedroom X Current zoning of site: R-1 Single Family Residential Bedroom Does current zoning permit proposed use? Yes X No 7. NATURE OF PROPOSED PROJECT: Rehabilitation 8. NUMBER OF HOUSING UNITS: Total number of apartments Total number of Single -Family Homes 5 Total number of SRO Rooms Number of units reserved for HOME families at 60% to 80% of median income 5 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 New Construction (at least 20% of HOME assisted units) Number of units reserved for HOME families 5 Neighborhood Dev. HOME Invitation for Proposals 8/27/03 2 9. PROGRAM NARRATIVE DESCRIPTION AND TARGET NEIGHBORHOOD RESIDENT INVOLVEMENT [(describe in detail) use additional sheets if necessary] OIC of Washington, a certified CHDO non-profit corporation, proposes to construct five (5) single-family homes for homeownership as an in -fill project on properties located within the City of Yakima's CDBG Target Area. The property lot locations are as follows; (716 South 6th Street, 802 South 6t"Street, 804 South 6thStreet, 806 South 6thStreet and 801 South 6thStreet). This will be OIC of Washington's second joint CHDO project with the City of Yakima's Office of Neighborhood Development Services (ONDS). The first project was Baker Court, a six (6) home single-family affordable housing development located on a cul-de-sac between South Ninth (9th) Street and the 1200 block of South Tenth (10th) Street also known as Fair Avenue. Each of the lots will have city sewer, water and existing sidewalks, telephone, natural gas and cable availability. The lots are within two blocks of Adams Elementary School and blocks from Washington Middle School. Access to Yakima's Metro bus line is within 300 feet of the homes to be constructed. The five affordable single-family housing units proposed to be constructed will range in size from 1349 square feet to 1568 square feet. Four (4) of the homes to be constructed will be three (3) bedrooms with detached two car garages. The fifth (5th) unit will be a four (4) bedroom, two-story home without a garage due to lot size restrictions. All of the homes will have finished landscaping which includes lawns and perimeter fencing and if possible underground timed irrigation systems. The homes have been designed to blend in with the existing neighborhood and housing stock adding aesthetic value of the area. Once again OIC of Washington will partner with Washington State Service Corps "Americorps" program and other job training programs to provide volunteer participants in the construction of the in -fill CHDO project. These "Americorps" volunteers will consist of men and women who have agreed to volunteer approximately one (1) year of service to their community to strengthen neighborhood bonds and enhance community involvement. OIC of Washington has entered into a contractual relationship with Washington State Service Corps to train ten (10) men and women in the construction of affordable housing projects. The participants will be under the direct supervision of OIC's Americorps Program Manager and while on the construction site OIC's Construction Manager. OIC is required, as a contractual match obligation, to pay Washington State Service Corps $1,500 per participant. This equates to $15,000 for ten (10) participants in the program and will be included in the total development costs. After reviewing the construction cost on Baker Court and comparing proposed construction cost for the five (5) in -fill homes located on 700 & 800 block of South 6111 Street, we anticipate similar construction costs and project a total development budget of $488,495. Projected sales price for the units to be constructed will be based on appraised value with the following sales prices listed below and a total sales proceeds of $490,000. This will have a net proceeds from sales of $1,505. 716 South 6th Street $96,000 801 South 6th Street $104,000 802 South 6th Street $99,000 804 South 6th Street $94,000 806 South 6th Street $97,000 OIC of Washington is certified with the Washington State Housing Finance Commission to provide Homebuyer Educational services to interested first time homebuyers. Our trained and certified staff will assist in qualifying interested first time homebuyers in the pre and post purchase process of the homes. Our experience in assisting families interested in the home buying process, in combination with the Office of Neighborhood Development Service's extensive history serving low-income families to obtain affordable housing, will add to the success of finding qualified families for the homes on South 6th Street. 010 of Washington has established sound partnerships with local lending institutions for mortgage financing, who have demonstrated an interest and willingness to expand affordable housing opportunities for low-income families, using sound and prudent underwriting criteria for low-income home buyers. OIC of Washington will use their portion of the project CHDO funds to provide the gap financing (silent second deferred loan) necessary to make the housing units affordable for the first time homebuyers. The gap financing will be the difference between the sales price and the first position mortgage obtained by the eligible homebuyer. Neighborhood Dev. HOME Invitation for Proposals 8/27/03 3 PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost: $ 488,495 CHDO request: $ 75,000 Other financing: $ 325,000 CHDO request as % of total cost 15% Total Cost/Unit $ 97,699 CHDO Cost/Unit $ 15,000 CHDO request from the City: Loan: $ Grant:$ 75,000 Funds to be returned to the City: Yes No (X) If yes, amount to be returned to the City: $ or $ per unit 11. NON-CHDO FINANCING TERMS: Total Amount: $ 325,000 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ Loan Amount: $ Interest Rate: $ Term: Years Source of Loan: $500,000 Line of Credit (Bank of America) Commitment Status: Continual Source of Funds Contact Person: Telephone Number: Grant Amount: $ Source of Grant: Commitment Status: Source of Funds Contact Person: Neighborhood Dev. HOME Invitation for Proposals 8/27/03 4 PROJECT COSTS (1) ACQUISITION: TOTAL COST: COST/UNIT: Land Land and Existing Building Title and Recording Other: (specify) HARD COST: Demolition Site Work Rehabilitation Construction $444,495 $ 88,899 Americorps Match Contrib. $15,000 $ 3,000 RELOCATION: SOFT COSTS: Legal Fees $2,000 $400 Survey Architect Design Fee Architect Inspection Fee Engineering Fees Appraiser $2,500 $500 Accounting $12,000 $2,400 Other Professional Fees Insurance Marketing $2,500 $500 FINANCING COSTS: Credit Report Loan Origination Fee Points Legal Other (specify) RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve DEVELOPER FEES: $10,000 $2,000 TOTAL PROJECT COST: $488,495 $97,699 (1) Please note: The above analysis does not include operating funds. Neighborhood Dev. HOME Invitation for Proposals 10/27/03 5 Income: Sales price per unit # of Units: 5 CASH FLOW SALES PROJECTS $ 94,000 to $104,000 Gross Income: $ 490,000 Expenses: Marketing $ 2,500 Financing $ 12,000 Construction $ 444,495 Soft Costs $ 14,500 Americorps Matching Contribution $ 15,000 Total Expenses: $ 488,495 Net Income for Sales: $ 1,505 Proposed Terms of Sale to First -Time Homebuyers: (loan, grant, forgivable loan, combination, interest rate loan, term of loan) Loan and Deferred Silent Second Mortgagge If CHDO funding will be transferred to First -Time Homebuyer as a loan: Annual Income from CHDO Loans: deferred income for 3 years( includes both interest and principal) Proposed use of Annual Income from Loans: (add extra pages if needed) Any additional income generated from the repayment of secondary loans will be used to expand additional single-family affordable homeownership projects 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 CHDO: N/A Neighborhood Dev. HOME Invitation for Proposals 10/27/03 6 CASH FLOW RENTAL PROJECTS INCOME: Unit Type # Rent/Unit Gross Income Efficiency $ $ 1 Bedroom $ $ 2 Bedroom $ $ 3 Bedroom $ $ 4 Bedroom $ $ Total $ Other Projected Income $ Gross Projected Income $ Vacancy Loss $ Net Income: $ EXPENSES: Management $ Water $ Electricity $ Gas $ Garbage/Trash $ Maintenance $ Exterminating $ Decorating $ Advertising $ Insurance $ Marketing $ Property Taxes $ Other (specify) $ Total % of Gross Income % Gross Rental Income $ Net Operating Expenses $ HOME Debt Service $ Non -HOME Debt Service $ Net Income After Debt Service $ Proposed Use of Net Income: (add extra pages if needed) 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 CDHO: Neighborhood Dev. HOME Invitation for Proposals 10/27/03 7 PROJECT SCHEDULE ACTION: Target Date in Months from Proiect Approval: Site: Option Acquisition NON-CHDO Financing: Application Conditional Commitment Finn Commitment Design: Selection of Architect Preliminary Designs Final Designs Bidding: Advertise Open Bids Award Bids Construction: Begin Construction Complete Construction Rent Up/Sell Neighborhood Dev. HOME Invitation for Proposals 10/27/03 Completed Completed Completed Completed Revolving Line of Credit (Bank of America) Completed Completed Completed Completed Completed Completed January 2004 July 2005 May 2004 through July 2005 8 PROJECT NARRATIVE DESCRIPTION (use additional sheets if necessary) Repeat of # 3 OIC of Washington, a certified CHDO non-profit corporation, proposes to construct five (5) single-family homes for homeownership as an in -fill project on properties located within the City of Yakima's CDBG Target Area. The property lot locations are as follows; (716 South 6th Street, 802 South 6thStreet, 804 South 6thStreet, 806 South 6thStreet and 801 South 6thStreet). This will be OIC of Washington's second joint CHDO project with the City of Yakima's Office of Neighborhood Development Services (ONDS). The first project was Baker Court, a six (6) home single-family affordable housing development located on a cul-de-sac between South Ninth (9th) Street and the 1200 block of South Tenth (10th) Street also known as Fair Avenue. Each of the lots will have city sewer, water and existing sidewalks, telephone, natural gas and cable availability. The Tots are within two blocks of Adams Elementary School and blocks from Washington Middle School. Access to Yakima's Metro bus line is within 300 feet of the homes to be constructed. The five affordable single-family housing units propose to be constructed will range in size from 1349 square feet to 1568 square feet. Four (4) of the homes to be constructed will be a four (4) bedroom, two-story home without a garage due to lot size restrictions. All of the homes will have finished landscaping, which includes lawns and perimeter fencing and if possible underground timed irrigation systems. The homes have been designed to blend in with the existing neighborhood and housing stock adding aesthetic value of the area. Once again OIC of Washington will partner with Washington State Service Corps "Americorps" program and other job training programs to provide volunteer participants in the construction of the in -fill CHDO project. These "Americorps" volunteers will consist of men and women who have agreed to volunteer approximately one (1) year of service to their community to strengthen neighborhood bonds and enhance community involvement. OIC of Washington has entered into a contractual relationship with Washington State Service Corps to train ten (10) men and women in the construction of affordable housing projects. The participants will be under the direct supervision of OIC's Americorps Program Manager and while on the construction site OIC's Construction Manager. OIC is required, as.a contractual match obligation, to pay Washington State Service Corps $1,500 per participant. This equates to $15,000 for ten (10) participants in the program and will be included in the total development costs. After reviewing the construction cost on Baker Court and comparing proposed construction cost for the five (5) in -fill homes located on 700 & 800 block of South 6th Street, we anticipate similar construction costs and project a total development budget of $488,495. Projected sales price for the units to be constructed will be based on appraised value with the following sales prices listed below and a total sales proceeds of $490,000. This will have a net proceeds from sales of $1,505. 716 South 6th Street $96,000 801 South 6th Street $104,000 802 South 61" Street $99,000 804 South 6th Street $94,000 806 South 6th Street $97,000 OIC of Washington is certified with the Washington State Housing Finance Commission to provide Homebuyer Educational services to interested first time homebuyers. Our trained and certified staff will assist in qualifying interested first time homebuyers in the pre and post purchase process of the homes. Our experience in assisting families interested in the home buying process, in combination with the Office of Neighborhood Development Service's extensive history serving low-income families to obtain affordable housing, will add to the success of finding qualified families for the homes on South 6th Street. OIC of Washington has established sound partnerships with local lending institutions for mortgage financing, who have demonstrated an interest and willingness to expand affordable housing opportunities for low-income families, using sound and prudent underwriting criteria for low-income home buyers. OIC of Washington will use their portion of the project CHDO funds to provide the gap financing (silent second deferred loan) necessary to make the housing units affordable for the first time homebuyers. The gap financing will be the difference between the sales price and the first position mortgage obtained by the eligible homebuyer. Neighborhood Dev. HOME Invitation for Proposals 10/27/03 9 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: Chris Link Consultant: Attorney: Joe F. Falk Jr. Architect: Engineer: DEC Engineering Services, Denny Covell Thomas F. Upton Surveying, Tom Upton Appraiser: Western Appraisals John Timms Other Financial Sources: Yakima Federal Savings & Loan Other (specify) Bank of America Neighborhood Dev. HOME Invitation for Proposals 10/27/03 10 10/27/03 10 CERTIFICATION 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 Name: (typed or printed) Executive Director Title: (position) OIC of Washington Name or Organization Neighborhood Dev. HOME Invitation for Proposals 10/27/03 11 1/4/2004 Date EXHIBIT "C" City of Yakima Office of Neighborhood Development Services (ONDS) Community Housing Development Organizations (CHDO) Project Application PROJECT DESCRIPTION 1. APPLICANT Name of Applicant Organization: OIC of Washington Address: 815 Fruitvale Blvd Yakima, Washington 98902 Telephone Number: (509) 452-2235 Contact Person: Chris Link Position with Organization: Housing Director 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: The proposed location consists of five (5) sites with the following addresses: 716 South 6th Street 801 south 6th Street 508 East Adams Street (change to 802 South 6th Street) 804 South 6th Street 806 South 6th Street City Target Neighborhood: Yes or No (circle one) 3. SITE CONTROL: (Provide Copies of Site Control Documents) Owned IX Under Option No Site Control 4. SITE OCCUPANCY: Are there currently buildings on the site: Are the buildings occupied? Yes Li No Yes No X # of occupied apartments 0 # of commercial tenants 0 # of tenants to be displaced by project implementation: Families 0 Commercial Tenants 0 Neighborhood Dev. HOME Invitation for Proposals 10/27/03 1 5. DESCRIPTION OF PROPOSED PROJECT: a. Multi -Family b. Rental c. Efficiency 6. ZONING: Single -Family Sales 1 Bedroom X Single Room Occupancy Lease/Purchase 2 Bedroom X 3 Bedroom 1 X14 Bedroom Current zoning of site: R-1 Single Family Residential Does current zoning permit proposed use? 7. NATURE OF PROPOSED PROJECT: Rehabilitation Yes X No New Construction 8. NUMBER OF HOUSING UNITS: Total number of apartments Total number of Single -Family Homes 5 Total number of SRO Rooms Number of units reserved for HOME families at 60% to 80% of median income 5 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 (at least 20% of HOME assisted units) Number of units reserved for HOME families 5 Neighborhood Dev. HOME Invitation for Proposals 8/27/03 2 9. PROGRAM NARRATIVE DESCRIPTION AND TARGET NEIGHBORHOOD RESIDENT INVOLVEMENT [(describe in detail) use additional sheets if necessary] OIC of Washington, a certified CHDO non-profit corporation, proposes to construct five (5) single-family homes for homeownership as an in -fill project on properties located within the City of Yakima's CDBG Target Area. The property lot locations are as follows; (716 South 6th Street, 802 South 6thStreet, 804 South 6thStreet, 806 South 6thStreet and 801 South 6thStreet). This will be OIC of Washington's second joint CHDO project with the City of Yakima's Office of Neighborhood Development Services (ONDS). The first project was Baker Court, a six (6) home single-family affordable housing development located on a cul-de-sac between South Ninth (9th) Street_ and the 1200 block of South Tenth (10th) Street also known as Fair Avenue. Each of the lots will have city sewer, water and existing sidewalks, telephone, natural gas and cable availability. The Tots are within two blocks of Adams Elementary School and blocks from Washington Middle School. Access to Yakima's Metro bus line is within 300 feet of the homes to be constructed. The five affordable single-family housing units proposed to be constructed will range in size from 1349 square feet to 1568 square feet. Four (4) of the homes to be constructed will be three (3) bedrooms with detached two car garages. The fifth (5th) unit will be a four (4) bedroom, two-story home without a garage due to lot size restrictions. All of the homes will have finished landscaping which includes lawns and perimeter fencing and if possible underground timed irrigation systems. The homes have been designed to blend in with the existing neighborhood and housing stock adding aesthetic value of the area. Once again OIC of Washington will partner with Washington State Service Corps "Americorps" program and other job training programs to provide volunteer participants in the construction of the in -fill CHDO project. These "Americorps" volunteers will consist of men and women who have agreed to volunteer approximately one (1) year of service to their community to strengthen neighborhood bonds and enhance community involvement. OIC of Washington has entered into a contractual relationship with Washington State Service Corps to train ten (10) men and women in the construction of affordable housing projects. The participants will be under the direct supervision of OTC's Americorps Program Manager and while on the construction site OIC's Construction Manager. OIC is required, as a contractual match obligation, to pay Washington State Service Corps $1,500 per participant. This equates to $15,000 for ten (10) participants in the program and will be included in the total development costs. After reviewing the construction cost on Baker Court and comparing proposed construction cost for the five (5) in -fill homes located on 700 & 800 block of South 6th Street, we anticipate similar construction costs and project a total development budget of $488,495. Projected sales price for the units to be constructed will be based on appraised value with the following sales prices listed below and a total sales proceeds of $490,000. This will have a net proceeds from sales of $1,505. 716 South 6th Street $96,000 801 South 6th Street $104,000 802 South 6th Street $99,000 804 South 6th Street $94,000 806 South 6th Street $97,000 OIC of Washington is certified with the Washington State Housing Finance Commission to provide Homebuyer Educational services to interested first time homebuyers. Our trained and certified staff will assist in qualifying interested first time homebuyers in the pre and post purchase process of the homes. Our experience in assisting families interested in the home buying process, in combination with the Office of Neighborhood Development Service's extensive history serving low-income families to obtain affordable housing, will add to the success of finding qualified families for the homes on South 6th Street. OIC of Washington has established sound partnerships with local lending institutions for mortgage financing, who have demonstrated an interest and willingness to expand affordable housing opportunities for low-income families, using sound and prudent underwriting criteria for low-income home buyers. OIC of Washington will use their portion of the project CHDO funds to provide the gap financing (silent second deferred loan) necessary to make the housing units affordable for the first time homebuyers. The gap financing will be the difference between the sales price and the first position mortgage obtained by the eligible homebuyer. Neighborhood Dev. HOME Invitation for Proposals 8/27/03 PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost: $ 488,495 CHDO request: $ 75,000 Other financing: $ 325,000 CHDO request as % of total cost 15% Total Cost/Unit $ 97,699 CHDO Cost/Unit $ 15,000 CHDO request from the City: Loan: $ Grant:$ 75,000 Funds to be returned to the City: Yes No (X) If yes, amount to be returned to the City: $ or $ per unit 11. NON-CHDO FINANCING TERMS: Total Amount: $ 325,000 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ Loan Amount: $ Interest Rate: $ Term: Years Source of Loan: $500,000 Line of Credit (Bank of America) Commitment Status: Continual Source of Funds Contact Person: Telephone Number: Grant Amount: $ Source of Grant: Commitment Status: Source of Funds Contact Person: Neighborhood Dev. HOME Invitation for Proposals 8/27/03 4 PROJECT COSTS (1) ACQUISITION: TOTAL COST: COST/UNIT: Land Land and Existing Building Title and Recording Other: (specify) HARD COST: Demolition Site Work Rehabilitation Construction $444,495 $ 88,899 Americorps Match Contrib. $15,000 $ 3,000 RELOCATION: SOFT COSTS: Legal Fees $2,000 $400 Survey Architect Design Fee Architect Inspection Fee Engineering Fees Appraiser $2,500 $500 Accounting $12,000 $2,400 Other Professional Fees Insurance Marketing $2,500 $500 FINANCING COSTS: Credit Report Loan Origination Fee Points Legal Other (specify) RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve DEVELOPER FEES: $10,000 $2,000 TOTAL PROJECT COST: $488,495 $97,699 (1) Please note: The above analysis does not include operating funds. Neighborhood Dev. HOME Invitation for Proposals 10/27/03 5 Income: Sales price per unit # of Units: 5 Gross Income: Expenses: Marketing Financing Construction Soft Costs Americorps Matching Contribution CASH FLOW SALES PROJECTS $ 94,000 to $104,000 $ 490,000 $ 2,500 $ 12,000 $ 444,495 $ 14,500 $ 15,000 Total Expenses: $ 488,495 Net Income for Sales: $ 1,505 Proposed Terms of Sale to First -Time Homebuyers: (loan, grant, forgivable loan, combination, interest rate loan, term of loan) Loan and Deferred Silent Second Mortgagge If CHDO funding will be transferred to First -Time Homebuyer as a loan: Annual Income from CHDO Loans: deferred income for 3 years( includes both interest and principal) Proposed use of Annual Income from Loans: (add extra pages if needed) Any additional income generated from the repayment of secondary loans will be used to expand additional single-family affordable homeownership projects 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 CHDO: N/A Neighborhood Dev. HOME Invitation for Proposals 10/27/03 6 CASH FLOW RENTAL PROJECTS INCOME: Unit Type # Rent/Unit . Gross Income Efficiency $ $ 1 Bedroom $ $ 2 Bedroom $ $ 3 Bedroom $ $ 4 Bedroom $ $ Total $ Other Projected Income $ Gross Projected Income $ Vacancy Loss $ Net Income: $ EXPENSES: Management $ Water $ Electricity $ Gas $ Garbage/Trash $ Maintenance $ Exterminating $ Decorating $ Advertising $ Insurance $ Marketing $ Property Taxes $ Other (specify) $ Total % of Gross Income % Gross Rental Income $ Net Operating Expenses $ HOME Debt Service $ Non -HOME Debt Service $ Net Income After Debt Service $ Proposed Use of Net Income: (add extra pages if needed) 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 CDHO: Neighborhood Dev. HOME Invitation for Proposals 10/27/03 7 PROJECT SCHEDULE, ACTION: Target Date in Months from Project 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 Neighborhood Dev. HOME Invitation for Proposals 10/27/03 Completed Completed Completed Completed Revolving Line of Credit (Bank of America) Completed Completed Completed Completed Completed Completed • January 2004 July 2005 May 2004 through July 2005 8 PROJECT NARRATIVE DESCRIPTION (use additional sheets if necessary) Repeat of # 3 OIC of Washington, a certified CHDO non-profit corporation, proposes to construct five (5) single-family homes for homeownership as an in -fill project on properties located within the City of Yakima's CDBG Target Area. The property lot locations are as follows; (716 South 6th Street, 802 South 6thStreet, 804 South 6thStreet, 806 South 6thStreet and 801 South. 6thStreet). This will be OIC of Washington's second joint CHDO project with the City of Yakima's Office of Neighborhood Development Services (ONDS). The first project was Baker Court, a six (6) home single-family affordable housing development located on a cul-de-sac between South Ninth (9th) Street and the 1200 block of South Tenth (10th) Street also known as Fair Avenue. Each of the lots will have city sewer, water and existing sidewalks, telephone, natural gas and cable availability. The lots are within two blocks of Adams Elementary School and blocks from Washington Middle School. Access to Yakima's Metro bus line is within 300 feet of the homes to be constructed. The five affordable single-family housing units propose to be constructed will range in size from 1349 square feet to 1568 square feet. Four (4) of the homes to be constructed will be a four (4) bedroom, two-story home without a garage due to lot size restrictions. All of the homes will have finished landscaping, which includes lawns and perimeter fencing and if possible underground timed irrigation systems. The homes have been designed to blend in with the existing neighborhood and housing stock adding aesthetic value of the area. Once again OIC of Washington will partner with Washington State Service Corps "Americorps" program and other job training programs to provide volunteer participants in the construction of the in -fill CHDO project. These "Americorps" volunteers will consist of men and women who have agreed to volunteer approximately one (1) year of service to their community to strengthen neighborhood bonds and enhance community involvement. OIC of Washington has entered into a contractual relationship with Washington State Service Corps to train ten (10) men and women in the construction of affordable housing projects. The participants will be under the direct supervision of OIC's Americorps Program Manager and while on the construction site OIC's Construction Manager. OIC is required, as a contractual match obligation, to pay Washington State Service Corps $1,500 per participant. This equates to $15,000 for ten (10) participants in the program and will be included in the total development costs. After reviewing the construction cost on Baker Court and comparing proposed construction cost for the five (5) in -fill homes located on 700 & 800 block of South 6th Street, we anticipate similar construction costs and project a total development budget of $488,495. Projected sales price for the units to be constructed will be based on appraised value with the following sales prices listed below and a total sales proceeds of $490,000. This will have a net proceeds from sales of $1,505. 716 South 6th Street $96,000 801 South 6th Street $104,000 802 South 6th Street $99,000 804 South 6th Street $94,000 806 South 6th Street $97,000 OIC of Washington is certified with the Washington State Housing Finance Commission to provide Homebuyer Educational services to interested first time homebuyers. Our trained and certified staff will assist in qualifying interested first time homebuyers in the pre and post purchase process of the homes. Our experience in assisting families interested in the home buying process, in combination with the Office of Neighborhood Development Service's extensive history serving low-income families to obtain affordable housing, will add to the success of finding qualified families for the homes on South 6th Street. OIC of Washington has established sound partnerships with local lending institutions for mortgage financing, who have, demonstrated an interest and willingness to expand affordable housing opportunities for low-income families, using sound and prudent underwriting criteria for low-income home buyers. OIC of Washington will use their portion of the project CHDO funds to provide the gap financing (silent second deferred loan) necessary to make the housing units affordable for the first time homebuyers. The gap financing will be the difference between the sales price and the first position mortgage obtained by the eligible homebuyer. Neighborhood Dev.. HOME Invitation for Proposals 10/27/03 9 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: Chris Link Consultant: Attorney: Joe F. Falk Jr. Architect: Engineer: DEC Engineering Services, Denny Covell Thomas F. Upton Surveying, Tom Upton Appraiser: Western Appraisals John Timms Other Financial Sources: Yakima Federal Savings & Loan Other (specify) Bank of America Neighborhood Dev. HOME Invitation for Proposals 10/27/03 10 10/27/03 10 CERTIFICATION 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 Name: (typed or printed) Executive Director Title: (position) OIC of Washington Name or Organization Neighborhood Dev. HOME Invitation for Proposals 10/27/03 11 1/4/2004 Date BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. Cr For Meeting of March 16, 2004 ITEM TITLE: Consideration of a Resolution approving a $75,000 grant request from 2004 federal HOME funds to OIC of Washington to construct five (5) single- family ingle- family homes located within the target area. SUBMITTED BY: ram Cook, Community & Economic Development Director CONTACT PERSON/TELEPHONE: Bill Cobabe, Neighborhood Development Manager (575-6101) SUMMARY EXPLANATION: The City of Yakima receives an annual allocation of HOME Investment Partnership funds from the Federal government. HOME funds may only be used for housing activities. This program requires that the City form partnerships with local housing developers and providers. These organizations are known as Community Housing Development Organizations (CHDO's). CHDO's 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 predevelopment costs and the acquisition, rehabilitation and new construction of rental housing, homeownership, and rental assistance. OIC of Washington is requesting a grant of $75,000 of HOME CHDO funds from the 2004 Federal allocations to construct five (5) new single-family homes located in the target area at 716, 801, 804, 806 South 6th Street, and 508 E. Adams Street (will be changed to 802 So. 6th St.) Yakima, Washington. The homes will be sold to qualified low -to -moderate income families using sound and prudent underwriting criteria. This proposal was discussed at a meeting of the City Council's Neighborhood Development Sub -Committee on March 1, 2004, and 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 OIC of Washington, which will include a project description and a work plan with identification of funding sources. Resolution X Ordinance Contract Other (Specify) Funding Source 2004 HOME CHDO Funds APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff recommends approval BOARD/COMMISSION RECOMMENDATION: On March 1, 2004, Council's Neighborhood Development Sub -Committee recommended this proposal be forwarded to the full Council for approval. COUNCIL ACTION: Resolution adopted. REOLUTION NO. R-2004-44