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HomeMy WebLinkAboutR-2004-139 Yakima Valley Partners Habitat for Humanity Grant RequestA RESOLUTION RESOLUTION NO. R-2004-139 approving a $67,000 grant request from 2004 federal HOME funds to Yakima Valley Partners Habitat for Humanity to construct two (2) 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 Yakima Valley Partners Habitat for Humanity. 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, Yakima Valley Partners Habitat for Humanity is requesting a grant of $67,000 in HOME funds to construct two (2) new single-family homes located in the target area; and WHEREAS, at August 19, 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 $67,000 grant request from Yakima Valley Partners Habitat for Humanity for the construction of two (2) new homes, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: 1. A grant of $67,000 in HOME funds to Yakima Valley Partners Habitat for Humanity to construct two (2) new single-family homes is hereby approved with the following conditions: • Execution of a formal grant agreement between the City of Yakima and Yakima Valley Partners Habitat for Humanity. • Yakima Valley Partners Habitat for Humanity will inform Neighborhood businesses and residents about their plans for the project, and invite public comment. 2. The City Manager is hereby authorized and directed to execute all necessary grant documents with Yakima Valley Partners Habitat for Humanity. The final form of these documents shall be reviewed and approved by the City Attorney. ADOPTED BY THE CITY COUNCIL this 7th day of September, 2004. ATTEST: Paul George, Mayor City Clerk CITY OF YAKIMA OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES 1. Contracting Organization: Yakima Valley Partners Habitat for Humanity (hereinafter "Contractor") 2. Address: P 0 Box 9007, Yakima, WA 98909 3. Phone: (509) 453-8077 4. Contact Person: Michael R. Nixon 5. Title of Service or Program being Funded: Construction of Two 3 or 4 -bedroom houses 6. Amount of Contract Award: $ 67,000 (HOME) 7. The term of this Contract shall commence upon execution hereof and shall terminate at midnight December 31, 2004unless sooner terminated by either party in accordance with Section XXII of incorporated Exhibit "A". 8. This contract award and the rights and obligations of both parties hereto shall be subject to and governed by the following: 1) "Terms and conditions" attached hereto as Exhibit "A" and incorporated herein by this reference; and 2) Operating budget including sources and uses statement, work plan and all attached hereto as Exhibit "B" and incorporated herein by this reference. 3) City of Yakima Resolution No.R-2004-139, a copy of which is attached hereto as Exhibit "C" and incorporated herein by this reference. 9. Final Contract payment shall be subject to satisfactory completion of project described in Exhibit B, Contractor/Subcontractor lien releases, and satisfaction of all contract terms and conditions as stated in Exhibit "A" and Exhibit "C". This written document and incorporated exhibits constitutes the entire Contract between the parties. IN WITNESS THEREOF the parties have executed this Contract as of the day and year indicated below. Date 9/ S/ C.)14C ntractor L - L ate Title: ATTEST: jalts City Clerk City Contract No.: o?ao,y ioy .(R•Kitv 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 $ 67.000 for said project. III GENERAL BUDGET PROVISIONS The Contractor agrees to the following provisions in satisfying the terms and conditions of this contract: A. PAYMENT AND DISBURSEMENTS Disbursements by the City of Yakima from this contract/grant award shall be on a reimbursement basis covering actual expenditures by the Contractor or obligation of the Contractor currently due and owing, but not paid. Disbursements shall be limited to allowable costs and so shall be made upon the occurrence of all the following, in addition to any other conditions contained herein or in the special conditions: 1. Receipt by the City of Yakima ONDS of a written reimbursement request on forms provided by the City of Yakima ONDS supported by copies of vouchers, invoices, salary and wage summaries, or other acceptable documentation; and 2. Determination by the City of Yakima ONDS that the expenditures or obligations for which reimbursement is sought constitute allowable costs under the principles set forth in Federal Management Circular 74-4 "eligible costs under the HOME Program" and come within the Project Budget. B. No payment shall be made for any service rendered by the Contractor except for services within the scope of a category set forth in the budget in Exhibit "B" of this Contract, and all funds received must be used for service as identified in Exhibit "B" of this Contract. 2 of 13 09-08-04 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 09-08-04 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 4 of 13 09-08-04 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. 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. 5 of 13 09-08-04 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. 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, 6 of 13 09-08-04 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 material relevant to the Contract for seven (7) years after settlement of this Contract. The Contractor agrees that the City of Yakima, the U.S. Department of Housing and urban Development, the Washington State Auditor, or their designees, shall have full access to and a right to examine any of said materials at all reasonable times during said period. B. The Contractor agrees that any contributions or payments made for services furnished under this Contract shall be used for the sole benefit of this program. XVI PROGRAM PROPERTY Any personal property having a useful life of more than one year and purchased wholly or in part with sub -grant funds at a cost of three hundred dollars ($300) or more per item, shall upon its purchase or receipt become the property of the City of Yakima and/or federal government. Final ownership and disposition of such property shall be determined under the provisions of Attachment N of OMB, A-102. The Contractor shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: 1. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of HOME funds used in the purchase of property; location, use, and condition of the property. 2. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property. 3. A control system shall be in effect to insure adequate safeguards to prevent lose, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. 4. Adequate maintenance procedures shall be implemented to keep the property in good condition. 5. If the Contractor elects to capitalize and depreciate such nonexpendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Contractor. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. 6. Nonexpendable personal property purchased by the Contractor under the terms of this Contract, in which title is vested in the City of Yakima or Federal Government shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the City of Yakima ONDS. 7. Any nonexpendable personal property furnished to, or purchased by, the Contractor, title to which is vested in the City of Yakima ONDS or federal government shall, unless otherwise provided herein or approved by the Contracting Officer, be used only for the performance of activities defined in this Contract. 8. As a condition prerequisite to reimbursement for the purchase of nonexpendable personal property, title to which shall vest in the City of Yakima ONDS or federal 7 of 13 09-08-04 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. 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 09-08-04 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 furnished to the City. The contractor holds the City harmless for any injury or death to the contractor's employees while performing this Contract. E. INSURANCE PROVIDED BY SUBCONTRACTORS The Contractor shall ensure that all subcontractors it utilizes for work/services rendered under this Contract shall comply with all of the above insurance requirements. XXI INDEMNIFICATION AND HOLD HARMLESS All services to rendered or performed under this Contract will be performed or rendered entirely to the Contractor's own risk and the Contractor expressly agrees to defend, indemnify and hold harmless the City of Yakima and all of its officers, agents, employees and elected officials from any and all liability, loss, fines, penalties or damage, inducing reasonable cost of defense, they may suffer as a result of claims, demands, actions, or damages to any and all persons or property, costs or judgments against the City of Yakima which result from, arise out of, or are in any way connected with the services to be preformed by the Contractor under this Contract. Nothing in this section of the Contract shall be construed to create a liability or a right of indemnification in any third party. XXII CONTRACT, TERMINATION AND CLOSE OUT If the Contractor fails to comply with the terms and conditions of this Contract, the City of Yakima ONDS may pursue such remedies as are legally available including but not limited to, the termination of this Contract in the manner specified herein. A. TERMINATION FOR CAUSE If the Contractor fails to comply with the terms and conditions of this Contract and any of the following conditions exist: 9 of 13 09-08-04 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 10 of 13 09-08-04 Contract, and in addition, will cooperate in a program audit by the City of 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 09-08-04 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. R-2004-139 (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: 12 of 13 09-08-04 1. The Contractor materially changes the primary purpose and scope of the HOME Project as described on Exhibit "B" to the Contract; or 2. The Department of Housing and Urban Development requires a 20 year "Affordability Period" from the date of execution of the Contract, and if the real property that is the 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 09-08-04 EXHIBIT "B" PROJECT DESCRIPTION 1. APPLICANT Name of Applicant Organization: Yakima Valley Partners Habitat for Humanity Address: PO Box 9007 Yakima, WA 98909-0007 Telephone Number: Contact Person: Position with Organization: 509-453-8077 Michael R. Nixon Executive Director 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: 814 S 8th 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? Yes X No Yes No # of occupied apartments # of commercial tenants # of tenants to be displaced by project implementation: Families 0 Commercial Tenants 0 X City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 2 5. DESCRIPTION OF PROPOSED PROJECT: a. Multi -Family b. Rental c. Efficiency Single -Family Sales 1 Bedroom (12 Bedroom 2 2 Single Room Occupancy n Lease/Purchase X 3 Bedroom or X 4 Bedroom 6. ZONING: Current zoning of site: R-1 (Single Families) Does current zoning permit proposed use? Yes X No 7. NATURE OF PROPOSED PROJECT: Rehabilitation 8. NUMBER OF HOUSING UNITS: Total number of apartments 0 Total number of Single -Family Homes 2 New Construction X Total number of SRO Rooms 0 Number of units reserved for HOME families at 60% to 80% of median income Number of units reserved for HOME families at 50% to 60% of median income Number of units reserved for HOME families at 50% of median income 0 0 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 2004 CHDO Application 3 9. PROGRAM NARRATIVE DESCRIPTION AND TARGET NEIGHBORHOOD RESIDENT INVOLVEMENT [(describe in detail) use additional sheets if necessary] The project involves acquisition of a double size lot suitable for division to provide for two 3 or 4 bedroom houses to be constructed by Yakima Valley Partners Habitat for Humanity. The targeted property is at 814 S 8th Street and consisted of a double lot with one concrete block two- bedroom house on one half of the property and a second half of the property that is vacant and suitable for separation into a second lot. Actual construction of the homes will take place in the spring of 2005. Currently we are negotiating with a Yakima area service club to be the primary sponsors for the two -house development. 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 these projects will be comprised of people from local churches and civic organizations as well as individuals from the immediate neighborhood. Their involvement will be in all areas of the organization including: committee work, job site volunteers and office assistants. Yakima Valley Partners - Habitat for Humanity is a non-profit, non -denominational, Christian housing organization that builds homes in partnership with qualified low-income families in the Yakima Valley. Our families' income is within 25-50% of the median income for families in Yakima County. We charge no profit for construction, and no interest on the mortgage. This approach makes decent, affordable housing a reality for many families. Yakima Valley Partners Affiliate is comprised of an Affiliate Board of Directors that governs the board. Millard and Linda Fuller founded Habitat for Humanity International in 1976. In the past 28 years, HFHI has completed over 150,000 homes in 93 different countries around the world. Founded in 1986, Yakima Valley Partners Habitat for Humanity has completed 100 new homes during its first 19 year. Those 100 homes represent nearly 600 individual family members whose lives have been changed through this partnership. Also, nearly 1,000 volunteers, both locally and from all over the nation, work on YVP-HFH home each year. Those 100 homes also represent over $7,500,000 of additional property value added to the local tax rolls. This is yet another way Habitat for Humanity has aided in stimulating the local economy. How It Works Each year our Board of Directors determines where and how many homes we will be able to build the following year. This is based on budget and land availability in the different communities. City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 4 We then advertise an application meeting for those who would like to apply for a Habitat for Humanity home. At this meeting we explain the process and the Family Selection Criterion. It is as follows: 1. Ability to Repay: Although YVP-HFH charges no profit in the construction of the home, and no interest on the mortgage we hold, the families are responsible for repayment of the actual cost of material, supervision, 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 50% of the median area income. 2. Willingness to Partner: The chosen family must be willing to invest at least 500 hours of "sweat equity" into their home, or other Habitat homes. They must also attend home ownership classes that are sponsored by YVP-HFH. These classes cover topics such as, home ownership responsibilities, home maintenance, financial planning, etc. 3. Current Living Conditions: The current living conditions of a family must create a burden in at least one of the following areas: Health and Safety Over Crowding Financial Hardship A follow-up meeting is held two weeks later at the same 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. 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.), and administration. City of Yakima Office of Neighborhood Development Services 2004 CHDO Applicauon 5 PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost: $ 242,010 CHDO request: $ 67,000 Other financing: $ 175,010 CHDO request as % of total cost 27.7 % Total Cost/Unit $ 121,005 (including finance costs) Source of Loan: Yakima Federal Savings and Loan Banner Bank Commitment Status: CHDO Cost/Unit $ 33,500 CHDO request from the City: Loan:$ Grant Amount: $ Grant:$ 67,000 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: $175,010 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ 85,010 Loan Amount: $ 45,000 Yakima Federal $ 45,000 Banner Bank Interest Rate: $ 5.00% $ 5.00% Term: 15 Years — Yakima Federal 20 Years — Banner Bank $ 90,000 Total Source of Loan: Yakima Federal Savings and Loan Banner Bank Commitment Status: Source of Funds Contact Person: Yakima Federal — Buddy Cluck Banner Bank — Loren Dixon Telephone Number: Buddy Cluck — (509) 248-2648 Loren Dixon — (503) 684-2309 Grant Amount: $ Source of Grant: Commitment Status: Source of Funds Contact Person: t �ry or Yakuna Office of Neighborhood Development Services 2004 CHDO Application 6 PROJECT COSTS (1) ACQUISITION: TOTAL COST: COST/UNIT: Land Land and Existing Building 67,000 33,500 Title and Recording 3,000 1,500 Other: (specify) HARD COST: Demolition 4,000 2,000 Site Work 3,000 1,500 Rehabilitation Construction 114,000 57,000 Other (specify) Building Permits, Water/Sewer Hookup 4,720 2,360 RELOCATION: 0 SOFT COSTS: Legal Fees 0 Survey 0 Architect Design Fee 0 Architect Inspection Fee 0 Engineering Fees 0 Appraiser 300 150 Accounting 0 Other Professional Fees Insurance Marketing FINANCING COSTS: Credit Report Loan Origination Fee Points Legal Other: Prepaid Interest 46,000 23,000 RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve DEVELOPER FEES: TOTAL PROJECT COST: 242,020 121,010 (1) Please note: The above analysis does not include operating funds. City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 7 Income: Sales price per unit # of Units: 2 Gross Income: CASH FLOW SALES PROJECTS $ 80,000 $ 160,000 Expenses: Marketing $ Financing $ Other (specify) $ 0 0 0 Total Expenses: $ 242,010 Net Income for Sales: $ (82,010) Proposed Terms of Sale to First -Time Homebuyers: (loan, grant, forgivable loan, combination, interest rate loan, term of loan) Yakima Valley Partners Habitat for Humanity charges no profit in the construction of the home and charges zero interest on the mortgage we hold, but the home owner is responsible for the full repayment of the actual cost of the project. Actual cost is defined as subsidized land cost, infrastructure, supervision, administration and overhead. The mortgage is secured with two Promissory Notes. The First Promissory Note secures the actual sale price to the family that includes the items stated above. The Second Promissory Note secures the difference between the sale price and the appraised value of the home at the time of sale. The Second Promissory Note is a forgivable loan that is reduced by five percent per year for the twenty-year term of the mortgage. If the homeowner should sell, convey or refinance, the Second Promissory Note becomes due. Yakima Valley Partners Habitat for 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: $ 8,000 (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 the construction of other low-income housing. City of Yakima Office of Neighborhood Development Services 2004 CHDO 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 CHDO: Zero Profit on the Sale Zero Interest on the Mortgage Self -Help Opportunity (500 hours of "sweat equity") Home Owner Classes Home Maintenance Legal Aspects of Home Ownership Budgeting Assimilation into the Community Bi -annual Homeowner Meetings Monthly Furniture Sales of donated home furnishings After sales Home Owner Consultations City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 9 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 City of Yakima Office of Neighborhood Development Services 2004 CHDO Application Completed September 30, 2004 Pre -approved Loan Funding December 10, 2004 Completed Completed All Designs are on file in our office N/A N/A No bids awarded. All work is done by staff and volunteers 12/15/04 05/31/05 05/31/06 10 PROJECT DEVELOPMENT TEAM The following companies or individuals constitute the development team. Where individual members have not yet been identified, the City must be notified as they are selected. Staff Contact Person: Michael R. Nixon Consultant: Attorney: Bryan Myre Architect: Engineer: Appraiser: Other Financial Sources: Yakima Federal Savings and Loan, Buddy Cluck, CRO; Banner Bank, Loren Dixon, CRA Other (specify): Building Committee: Eric Miller, Chairman; David Picatti, Engineer; Scott Gust, Contractor; Ben Greco; John Wind; Ron Anderson, Realtor City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 11 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 Signed: August 11, 2004 Signature Date Michael R. Nixon Name Executive Director Title Yakima Valley Partners Habitat for Humanity Organization City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 12 EXHIBIT "C" 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 Signed: August 11, 2004 Signature Date Michael R. Nixon Name Executive Director Title Yakima Valley Partners Habitat for Humanity Organization City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 12 City of Yakima Office of Neighborhood Development Services (ONDS) Community Housing Development Organizations (CHDO) Project Application PROJECT DESCRIPTION 1. APPLICANT Name of Applicant Organization: Yakima Valley Partners Habitat for Humanity Address: PO Box 9007 Yakima, WA 98909-0007 Telephone Number: Contact Person: Position with Organization: 509-453-8077 Michael R. Nixon Executive Director 2. LOCATION OF PROPOSED PROJECT: (Provide Map Identifying Location) Address: 814 S 8th Street, Yakima, WA 98901 City Target Neighborhood: Southeast Yakima 3. SITE CONTROL: (Provide Copies of Site Control Documents) Owned I I Under Option X No Site Control 4. SITE OCCUPANCY: Are there currently buildings on the site: Yes l l No Are the buildings occupied? Yes No # of occupied apartments # of commercial tenants # of tenants to be displaced by project implementation: Families 0 City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 2 X Commercial Tenants 0 5. DESCRIPTION OF PROPOSED PROJECT: a. Multi -Family Single -Family b. Rental n Sales 2 2 c. Efficiency Ll Bedroom (T2 Bedroom 6. ZONING: Current zoning of site: R-1 (Single Families) Does current zoning permit proposed use? 7. NATURE OF PROPOSED PROJECT: Rehabilitation • Single Room Occupancy [j Lease/Purchase X 3 Bedroom or Yes X New Construction n X No X 4 Bedroom 8. NUMBER OF HOUSING UNITS: Total number of apartments 0 Total number of Single -Family 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 Number of units reserved for HOME families at 50% of median income 0 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 2004 CHDO Application 3 9. PROGRAM NARRATIVE DESCRIPTION AND TARGET NEIGHBORHOOD RESIDENT INVOLVEMENT [(describe in detail) use additional sheets if necessary] The project involves acquisition of a double size lot suitable for division to provide for two 3 or 4 bedroom houses to be constructed by Yakima Valley Partners Habitat for Humanity. The targeted property is at 814 S 8th Street and consisted of a double lot with one concrete block two- bedroom house on one half of the property and a second half of the property that is vacant and suitable for separation into a second lot. Actual construction of the homes will take place in the spring of 2005. Currently we are negotiating with a Yakima area service club to be the primary sponsors for the two -house development. 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 these projects will be comprised of people from local churches and civic organizations as well as individuals from the immediate neighborhood. Their involvement will be in all areas of the organization including: committee work, job site volunteers and office assistants. Yakima Valley Partners - Habitat for Humanity is a non-profit, non -denominational, Christian housing organization that builds homes in partnership with qualified low-income families in the Yakima Valley. Our families' income is within 25-50% of the median income for families in Yakima County. We charge no profit for construction, and no interest on the mortgage. This approach makes decent, affordable housing a reality for many families. Yakima Valley Partners Affiliate is comprised of an Affiliate Board of Directors that governs the board. Millard and Linda Fuller founded Habitat for Humanity International in 1976. In the past 28 years, HFHI has completed over 150,000 homes in 93 different countries around the world. Founded in 1986, Yakima Valley Partners Habitat for Humanity has completed 100 new homes during its first 19 year. Those 100 homes represent nearly 600 individual family members whose lives have been changed through this partnership. Also, nearly 1,000 volunteers, both locally and from all over the nation, work on YVP-HFH home each year. Those 100 homes also represent over $7,500,000 of additional property value added to the local tax rolls. This is yet another way Habitat for Humanity has aided in stimulating the local economy. How It Works Each year our Board of Directors determines where and how many homes we will be able to build the following year. This is based on budget and land availability in the different communities. City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 4 We then advertise an application meeting for those who would like to apply for a Habitat for Humanity home. At this meeting we explain the process and the Family Selection Criterion. It is as follows: 1. Ability to Repay: Although YVP-HFH charges no profit in the construction of the home, and no interest on the mortgage we hold, the families are responsible for repayment of the actual cost of material, supervision, 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 50% of the median area income. 2. Willingness to Partner: The chosen family must be willing to invest at least 500 hours of "sweat equity" into their home, or other Habitat homes. They must also attend home ownership classes that are sponsored by YVP-HFH. These classes cover topics such as, home ownership responsibilities, home maintenance, financial planning, etc. 3. Current Living Conditions: The current living conditions of a family must create a burden in at least one of the following areas: Health and Safety Over Crowding Financial Hardship A follow-up meeting is held two weeks later at the same 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. 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.), and administration. City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 5 PROJECT FINANCIAL INFORMATION 10. PROJECT FINANCING: Total Cost: $ 242,010 CHDO request: $ 67,000 Other financing: $ 175,010 CHDO request as % of total cost 27.7 % Total Cost/Unit $ 121,005 (including finance costs) CHDO Cost/Unit $ 33,500 CHDO request from the City: Loan:$ Grant:$ 67,000 Funds to be returned to the City: Yes ❑ Source of Funds Contact Person: Yakima Federal — Buddy Cluck Banner Bank — Loren Dixon Telephone Number: Buddy Cluck — (509) 248-2648 Loren Dixon — (503) 684-2309 No x If yes, amount to be returned to the City: $ or $ per unit 11. NON-CHDO FINANCING TERMS: Total Amount: $175,010 Cash by Applicant: (provide signed commitment of funds, with statement of source) $ 85,010 Loan Amount: $ 45,000 Yakima Federal $ 45,000 Banner Bank Interest Rate: $ 5.00% $ 5.00% Term: 15 Years — Yakima Federal 20 Years — Banner Bank $ 90,000 Total Source of Loan: Yakima Federal Savings and Loan Banner Bank Commitment Status: Source of Funds Contact Person: Yakima Federal — Buddy Cluck Banner Bank — Loren Dixon Telephone Number: Buddy Cluck — (509) 248-2648 Loren Dixon — (503) 684-2309 Grant Amount: $ Source of Grant: Commitment Status: Source of Funds Contact Person: n:._. _cv''-:-- Office of Neighborhood Development Services 2004 CHDO Application 6 PROJECT COSTS (1) ACQUISTITON: TOTAL COST: , COST/UNIT: Land Land and Existing Building 67,000 33,500 Title and Recording 3,000 1,500 Other: (specify) HARD COST: Demolition 4,000 2,000 Site Work 3,000 1,500 Rehabilitation Construction 114,000 57,000 Other (specify) Building Permits, Water/Sewer Hookup 4,720 2,360 RELOCATION: 0 SOFT COSTS: Legal Fees 0 Survey 0 Architect Design Fee 0 Architect Inspection Fee 0 Engineering Fees 0 Appraiser 300 150 Accounting 0 Other Professional Fees Insurance Marketing FINANCING COSTS: Credit Report Loan Origination Fee Points Legal Other: Prepaid Interest 46,000 23,000 RESERVES: Rent Up Reserve Operation Reserve Maintenance Reserve Replacement Reserve DEVELOPER FEES: TOTAL PROJECT COST: 242,020 121,010 (1) Please note: The above analysis does not include operating funds. City of Yalama Office of Neighborhood Development Services 2004 CHDO Application 7 Income: Sales price per unit # of Units: 2 Gross Income: CASH FLOW SALES PROJECTS $ 80,000 • $ 160,000 Expenses: - Marketing $ Financing $ Other (specify) $ 0 0 0 Total Expenses: $ 242,010 Net Income for Sales: $ (82,010) Proposed Terms of Sale to First -Time Homebuyers: (loan, grant, forgivable loan, combination, interest rate loan, term of loan) Yakima Valley Partners Habitat for Humanity charges no profit in the construction of the home and charges zero interest on the mortgage we hold, but the home owner is responsible for the full repayment of the actual cost of the project. Actual cost is defined as subsidized land cost, infrastructure, supervision, administration and overhead. The mortgage is secured with two Promissory Notes. The First Promissory Note secures the actual sale price to the family that includes the items stated above. The Second Promissory Note secures the difference between the sale price and the appraised value of the home at the time of sale. The Second Promissory Note is a forgivable loan that is reduced by five percent per year for the twenty-year term of the mortgage. If the homeowner should sell, convey or refinance, the Second Promissory Note becomes due. Yakima Valley Partners Habitat for 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: $ 8,000 (include both interest and principal) Proposed use of Annual Income from Loans: (add extra pages if needed) All funds retumed to Yakima Valley Partners Habitat for Humanity in the form of mortgage payments revolve into the construction of other low-income housing. City of Yakima Office of Neighborhood Development Services 2004 CHDO 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 CHDO: Zero Profit on the Sale Zero Interest on the Mortgage Self -Help Opportunity (500 hours of "sweat equity") Home Owner Classes Home Maintenance Legal Aspects of Home Ownership Budgeting Assimilation into the Community Bi -annual Homeowner Meetings Monthly Furniture Sales of donated home furnishings After sales Home Owner Consultations City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 9 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 City of Yakima Office of Neighborhood Development Services 2004 CHDO Application Completed September 30, 2004 Pre -approved Loan Funding December 10, 2004 Completed Completed All Designs are on file in our office N/A N/A No bids awarded. All work is done by staff and volunteers 12/15/04 05/31/05 05/31/06 10 PROJECT DEVELOPMENT TEAM The following companies or individuals constitute the development team. Where individual members have not yet been identified, the City must be notified as they are selected. Staff Contact Person: Michael R. Nixon Consultant: Attorney: Bryan Myre Architect: Engineer: Appraiser: Other Financial Sources: Yakima Federal Savings and Loan, Buddy Cluck, CRO; Banner Bank, Loren Dixon, CRA Other (specify): Building Committee: Eric Miller, Chairman; David Picatti, Engineer; Scott Gust, Contractor; Ben Greco; John Wind; Ron Anderson, Realtor City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 11 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 Signed: 2 August 11, 2004 Signature Date Michael R. Nixon Name Executive Director Title Yakima Valley Partners Habitat for Humanity Organization City of Yakima Office of Neighborhood Development Services 2004 CHDO Application 12 YAKJMA, WA Map Themes F City Limits E Contours r Critical Areas f Floodplains E Parcel Text 1- Plan 2015 F Relief Map I— Urban Areas ME E Zoning None a 4 f10` 1410e44 • Choose Location to: r Zoom in r Zoom Out r Pan r Identify Grandview Granger Harrah Moxee Naches Selah Sunnvside Tieton Toppenish UnionGap Wapalo Yakima Zill Refresh 1 Parcel Number: 19131944425 Situs Address: 814 S 8th St Owner Name: Carl & Arizona Falls Misc Codes: 333-TCA/Levy Assessed Values: 36400 -improvement value 15000 -land Parcel Size: Characteristics: FAIR -quality 1967 -year effective 1 -stories 824sqft-Main floor UAZO Zoning: R-1 - Single -Family Residential Plan 2015: Urban (City Limits) Urban Growth Area: Urban Growth Area Plan Jurisdiction: Yakima Floodplain: Floodplain data not available Critical Areas: http: //www. pan. co. yakima. wa. us/scripts/esrimap. dl l?name=YakgisH&THM=CL &THM=R... 08/11/04 REAL ESTATE PURCHASE AND SALE AGREEMENT (Residential) (WITH EARNEST MONEY PROVISION) THIS ISA LEGALLY BINDING CONTRACT, READ BOTH FRONT AND BACK CAREFULLY BEFORE SIGNING. �/ sotto of �IA6i,k, A%w rDl..l The undersigned Purchaser r •�4't M -A t"t'L£ y t��a�r ti S t; om. r �: �U y ,},LL.t : . T./ agrees to purchase and the undersigned Seller agrees to sell. on the following terms. the real estate commonly known asV""‘t v , / S v t -+t• Street in the City of l County, State of L (L J I%. legal description must be inserted prior to execution by parties): legally described as (full and complete _J ,7-104 : '-or "7 f ISL L . 159 5e tt�a-c{ ` 1. PURCHASE PRICE. ThetotalPPurcS t Jew-. -i�.a�,^4hase price is c.-r.� ,^4V, Dollars (S (GS 7 VO U ) payable as follows: 4 o' lora- rt- ca,s-b a r. ed b2&w c-- 2. FINANCING. The offer 1 is 'Js is not. conditioned upon Purchaser obtaining a purchase loan. 0 it is. this agreement shall he null and void unless on or before Purchaser obtains Lender's approval Fora. conventional " FHA !'i VA loan of not less than 5 payable over not less than years. (IF FHA OR VA ARE CHECKED, THE FHANA PROVISIONS ON THE REVERSE SIDE HEREOF ARE PART OF THIS AGREEMENT.) Purchaser agrees to pay the credit report and appraisal charges. 2t3len-a3•��f 3. CONTINGENCIES. This agreement is conditioned on: ! sale of Purchaser's present bora at St. 4c other. sot e- a. � cd an or before 4. CONDm0NOFTITLE.Titletotheproperyistobefreeofallencunbrancesordefects,exceptasnotedinparagraph8below,andexceptfor Rights reserved in federal patents or state deeds: building or use restrictions general to the area. other than platting and subdivision requirements utility easements; other easements not inconsistent with Purchaser's intended use: and reserved oil and/or mineral rights; shall not be deemed encumbrances or defects. Encumbrances to be discharged by Seller shall be paid from the purchase money at the date of closing, including any Venable association or condominium dues. charges or assessments. 5. UTELTTIES, Seller warrants that the property is connected to a: 1"' public water main well yt public sewer main L septic tank ' None of the foregoing. (IF WELL OR SEPTIC TANK ARE CHECIOED. THE WELL OR SEPTIC TANK PROVISIONS ON THE REVERSE SIDE HEREOF ARE PART OF THIS AGREEMENT.)' G. LEASED FIXTURES AND CONSTRUCTION. THE FOLLOWING FIXTURES ARE LEASED: _I! furnace i gas conversion burner hot water heater These leased fixtures are included it the sale and the SELLER AGREES TO ACQUIRE TITLE TO THE SAME PRIOR TO CLOSING. If this sale involves new construction. F.T.C. regulations require disclosure of the following: Wall insulation type thickness R -value Ceiling insulation: type thickness R -value Other insulation: _' Nat yet selected but Seller shall furnish Purchaser with this information in writing promptly. 7. CLOSING OF SALE. This sale shall be dosed on or before Sa9l"'t ^"-6'^ 0 , Z:A`4 Notwithstanding the foregoing date. if paragraph 3 above ('Contingencies") is applicable, and is met or waived riLoi or to the fpregoing date. then s sale shall„be closed within 90 days after itis met or waived. This sale shall be dosed by I -u r 7'r M M2J r c I , k L- ' .,y -,w.,, or such other Closing Agent as Purchaser shall designate. Purchaser and Seller will. immediately on demand. deposit t4ith Closing Agent all instruments and monies required to complete the purchase in accordance with this Agreement. a. CLOSING COSTS & PRO -RATION. Seller and Purchaser shall each pay one-half of escrow fee unless this sale is FHA or VA financed, in which case the appropriate party according to FHAIVA regulations shall pay the same. Seller shall pay real estate excise tax and revenue stamps. Taxes for the current year. insurance acceptable to the Purchaser, rents. interest. mortgage reserves. and water and other utilities constituting liens. shall be pro -rated as of dosing. Purchaser agrees to pay for remaining oil in fuel tank provided that. prior to dosing, Seller obtains a written statement as to the quantity and price thereof from the supplier. Seller isxis not a "foreign person" subject to tax withholding pursuant to Foreign Investment In Real Property Tax Act. 9. POSSESSION. Purchaser shall be entitled to possession on dosing: "Closing" means the date on which all documents are recorded and the sale proceeds are available to Seller. 10. DEFAULTANDREFUND.Ifeither party defaults (that is. failure to perform the acts required of him) in his contractual performance herein. thenon-defaulting party may seek specific performance pursuant to the terms of this agreement, damages, or rescission. lithe non -defaulting patty is the Purchaser and elects rescission only the earnest money deposit shall be refunded upon demand less any charges required as initial loan fees attributable to Purchaser's financing. if the non -defaulting party is the Seller and the Purchaser has failed, without legal excuse, to complete the purchase of the property. the Seller may elect forfeiture of the earnest money deposit as the sole and exclusive remedy available to the Seller for such failure, and the earnest money deposit shall be paid to Seller in such event, upon demand. provided that the total earnest money forfeited shall not exceed five percent of the purchase price. Seller's initials Purchaser's initials In the event of litigation or this agreement is otherwise placed with an attorney for action, then the prevailing patty shall be awarded all reasonable attorney's fees. litigation costs and expenses. title report fees and other expenses incident to enforcement of rights hereunder. If financing is required. the parties agree to refund earnest money (less credit report fee. appraisal fee, and other loan charges, if any) in the event financing contemplated by the Purchaser is not obtainable. if financing is required, the parties agree to refund earnest money (less credit report fee. appraisal fee. and other loan charges. if any) in the event financing contemplated by the purchaser is not obtainable 11. SPECIAL PROVISIONS. In addition to FHA/VA or CONTINGENCY Provisions, if called for above, THE FOLLOWING PROVISIONS ON THE REVERSE SIDE HEREOF ARE PART OF THIS AGREEMENT: INSPECTIONS: INCLUDED ITEMS; TITLE INSURANCE; CONVEYANCING: GENERAL PROVISIONS: CASUALTY; UNDERLYING FINANCING. 12. AGENCY DISCLOSURE At the signing of this agreement. the selling agent » (Hama of agent). represented (name of party): and the listing agent (name of agent). represented (name of party). Each party signing this document confirms that. pursuant to R.C.W.16.86.03o(1)(g), prior oral and/or written disclosure of agency was provided to him/her itt this transaction. 13. MONEY RE . Undersigned acknowledges receipt from Purchaser of 5 I C 00 in the form of t� cash C personal check cashier's check +10 0' rt% (j tirrk Z. ,.2.co 1- as earnest money in partial payment of the purchase price to be held in selling agent'spooledtrustaccountwithout mtetesttaPurchaser_Iother Agent Company By 14. AGREEMENT TO PURCHASE - AND TIME LIMIT FOR ACCEPTANCE. Purchaser offers to purchase the property on the terms and conditions noted herein and acknowledges that he has read all terms and conditions above and on the reverse side hereof. Seller shall have until midnight of to accept this offer by delivering a si '1 copy hereof to the Purchaser or Agent If this offer is not so accepted, it shall lapse and the Seller or Agent shall refund the earnest money to the Purchaser. ZSOO s ?� Are- -.(6..)G.-tu. LuPt QR03 PUR %..`l 4,..:,_+-\ ‘JAL -1..i7 1'41' s b�2 Es PURCHASER's ADDRESS f ' 1 3 •-• g+07 7 HOME PURCHASEROFFICE "�� PURCHASER'S PHONE 15. SELLER'S ACCEPTANCE AND AGENT'S AGREEMENT. Seller agrees to sell the property on the terms and conditions specified herein and further agrees to pay a commission of N Dollars (5 ) to the agent for services rendered. Seller ackpowledges a receipt of a copy of this agreement. signed by both parties. having read the terms and conditions above and on the reverse side hereof. Dated: '51 -/ 0 * C' - SELLER n / \. n SELLER'S ADDRESS 'IY r /—'J lC/�/ /� HOME q OctS n 6e 1.t cE SELLER SELLER'S PHONE ''. .. ... 7..5.37 16. PURCHASER «ah• . P r ackn es receipt of a Seller signed copy of this agreement on OsE fin 11PURCHASER 1 PURCHASER Date: August 10, 2004 Addendum to Purchase and Sale Agreement 814 S 8th Street Contingencies: 1. This offer is contingent upon funding approval from the City of Yakima's Office of Neighborhood Development for site acquisition and site improvements. chael R Nixon, Executive Director Date Yakima Valley Partners Habitat for Humanity Carl Falls Date (4a,e,(,a) Arizona Falls Date Property Address: 814 S. 8TH ST. YAKIMA, WA 98901 Appraisal Prepared For: CITY OF YAKJKA/ONDS 112 S. 8TH ST., YAKIMA, WA 98901 Prepared As Of: 05/26/04 Prepared By: JOHN F. TIMM, IFAS 1024 S. 2ND AVE., YAKIMA, WA 98902 (509) 248-2609 This form was reproduced by United Systems Software Company (800) 969-8727 File No. 2004277 Page #2 File No. 2004277 Page #3 06-04-04 Western Appraisers, Inc. 1024 S. 2nd Avenue Yakima, WA 98902 Attention: CITY OF YAKIMA/ONDS 112 S. 8TH ST. YAKIMA, WA 98901 Dear CITY OF YAKIMA/ONDS: In accordance with your request, I have personally inspected and appraised the real property located at: 814 S. 8TH ST. YAKIMA, WA 98901 The purpose of the appraisal was to estimate the market value of the property, as improved, in fee simple, unencumbered by liens. A legal description of the property will be found herein. In my opinion, the estimated market value of the property, as of 05-26-04, is: $71,500. The attached report contains the description, analysis and supportive data for the conclusions and final estimate of value together with descriptive photographs. as been a pleasur- to assist you; if I may be of further service to you in the future, please let me know. OHN F. TIMM, IFAS State Certification #1700335 Filename: 2004277 Designed by United Systems Software Company (800) 969-8727 PLAT MAP File No, ?001277 _fagg 13 File No. 2004277 Borrower/Client _CARLFALLS-----'--- ----- — Address 814.S. 814.SL8TH_ST.--_—__-_—___---- --- - State WA Zip Code 98901 Designed by United Systems Software Company (800) 969-8727 BUSINESS OF THE CITY COUNCIL YAKEVIA, WASHINGTON AGENDA STATEMENT Item No. if" 14 For Meeting of September 7, 2004 ITEM TUJ F: 2004 Community Housing Development Organization (CHDO) Request SUBMITTED BY: Bill Cobabe, Office of Neighborhood Development Services Manager CONTACT PERSON/TELEPHONE: Bill Cobabe, Neighborhood Development Manager (575-6101) SUMMARY EKPLANAIION: The City of Yakirna receives an annual allocation of HOME Investment Partnership funds from the Federal goverrunent. HOME funds may only be used for housing activities. This program requires that the City fowl 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 CHDOs 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. Yakima Valley Partners Habitat for Humanity is requesting a grant of $67,000 of HOME CHDO funds from the 2004 Federal allocations to construct two (2) new single-family homes located in the target area at 814 & 816 So. 8th Street, 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 Committee on August 19, 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 a grant agreement with Yakima Valley Partners Habitat for Humanity, which will include a project description and a work plan with identification of funding sources. Resolution X Ordinance Contract Other (Specify) Funding Source 2004 HOME CHDO Funds APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff recommends approval BOARD/COIVMSSION RECOMMENDATION: Recommended for approval by the Council's Neighborhood Development Committee. COUNCIL ACTION: Resolution adopted. RESOLUTION NO.2004-139