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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.N.
For Meeting of: December 10, 2019
ITEM TITLE: Resolution authorizing execution of two contracts with Yakima Valley
Partners Habitat for Humanity in the amount of $97,269 of HOME
Investment funds to assist with acquisition and construction of two
new single-family homes to be sold to qualified low to moderate
income first-time homebuyers located at 704 North 20th Avenue
and 1013 Pleasant Avenue
SUBMITTED BY: Joan Davenport, Community Development Director
Archie Matthews, O N D S Manager(509) 575-6101
SUMMARY EXPLANATION:
Yakima Valley Partners Habitat for Humanity as a qualified CHDO is requesting $97,269 in
HOME funds from the City of Yakima to assist with acquisition and construction of two new single-
family low-income housing units to be located at 704 North 20th Avenue and 1013 Pleasant
Avenue.
As the annual recipient of HOME Investment funds from the Department of Housing and Urban
Development (HUD), the City of Yakima must invest these funds for Affordable Housing within its
jurisdiction. The City of Yakima, in granting available HOME funds, allows for continued decent,
safe, and affordable housing within the City of Yakima that serves low to moderate income
citizens.
Projects that receive funding from the City of Yakima HOME program must be consistent with the
City Consolidated Plan, which guides HOME funding, as well as the City Comprehensive Plan.
Funding through HOME program requires the applicant to have a HUD compliant Management
Plan and ensure the housing units meet affordability requirements for a minimum of 20 years.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Neighborhood and Community Building
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
2
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
o Rec,thitionAuillonzing Contract ‘iliith vaterna\fancy
11/252010 Resolution
Rarincr u. Habitat for Humanity
Contract vath Yakima Valley Rarinnru. Habitat for
D Humanity Iry 704 N 20th Avenue Jim a single family 11/252010 Centract
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Contract with Yakima Valley Partners Habitat for
D Humanity Iry 1013 Pleacant Auenue fur a single family 11/252010 Centract
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3
RESOLUTION NO. R-2019-
A RESOLUTION authorizing an agreement with Yakima V alley Partners Habitat for
Humanity in the amount of $97,269 Dollars ($97,269) in federal Housing
and Urban Development HOME funds under CFDA Contract#14.239 for
property acquisition for low income housing units in the City of Yakima.
WHEREAS, the City received money from the federal government's HOME funding
program under CFDA Contract#14.239 which must be used to invest in affordable housing in the
City of Yakima; and
WHEREAS, the two existing lots of record subject to this proposal will be developed with
single family homes at 704 N 20'h Avenue, and 1013 Pleasant Avenue, both within the City of
Yakima; and
WHEREAS, The Yakima Valley Partners Habitat for Humanity has a proven track record
of creating community based housing for the benefit of low to moderate income home ownership
units within the City of Yakima; and
WHEREAS, Yakima Valley Partners Habitat for Humanity is a certified Community
Housing Development Organization (CHODO), and is eligible to receive funding for projects
under the terms of HOME contracts for units dedicated to low to moderate income persons and
families and seeks funding for the land acquisition and development, which are eligible activities
under the HOME program; and
WHEREAS, the City Council of the City of Yakima finds that it is in the best interests of its
residents to enter into an agreement with Yakima Valley Partners Habitat for Humanity to provide
funding for land acquisition and development costs for 2 units of affordable housing with federal
monies provided by HUD through the HOME Investments program; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute an Agreement with Yakima Valley Partners
Habitat for Humanity in the amount of $97,269 dollars ($97,269) in federal Housing and Urban
Development HOME Investment funds for acquisition and land development costs for
construction of 2 single family housing units for low to moderate income persons within the City
of Yakima. A copy of the agreements are attached hereto.
ADOPTED BY THE CITY COUNCIL this day of , 2019.
ATTEST: Kathy Coffey, Mayor
Sonya Clear Tee, City Clerk
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CONTRACT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND DEVELOPER—YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY
(704 N 20TH AVE.)
1. DEVELOPER: Yakima Valley Partners Habitat for Humanity
2. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902
3. Phone: (509) 453-8077
4. Contact Person: Meloney Rosen, Director
5. Title of Service or Program being funded: New Construction of a single family
home located at: 704 N 20'h Ave., Yakima, WA 98902.
6. Amount of Contract Award: $60,201 (HOME) CFDA Contract# 14.239
7. The term of this Contract shall commence upon the execution date of Developer's
receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood
Development Services and the project will begin construction within twelve
months of entering this Contract and will be completed by December 31, 2020 at
midnight, unless sooner terminated by either party in accordance with Section
XIV of Exhibit "A", attached hereto and incorporated herein by this reference.
8. This contract award and the rights and obligations of both parties hereto shall be
subject to and governed by the following:
(a) "Terms and Conditions" attached hereto as Exhibit "A" and
incorporated herein by this reference; and
(b) Operating budget including the funding sources and uses
statement and the work plan, attached hereto as Exhibit "B" and incorporated
herein by this reference.
(c) City of Yakima Resolution No. R-2019- , a copy of which
is attached hereto as Exhibit "C" and incorporated herein by this reference.
8. Final Contract payment shall be subject to satisfactory completion of the project
described in Exhibit "B", and satisfaction of all contract terms and conditions,
including, but not limited to, the submission of the final report and billing invoice
information within thirty (30) days of the contract closing date, and as stated in
Exhibit "A", Exhibit "B" and Exhibit "C".
This written document, together with all of the incorporated exhibits hereto, constitutes
the entire Contract and terms of agreement between the parties hereto.
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IN WITNESS THEREOF the parties have executed this Contract as of the day and year
stated below.
CITY OF YAKIMA DEVELOPER: Habitat for Humanity
By:
Alex Meyerhoff, Interim City Manager Meloney Rosen
Title: Executive Director
Date:
Date:
Joan Davenport, CDD Director
Date:
ATTEST
Sonya Claar Tee, City Clerk
City Contract No.:
EXHIBIT "A'
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TERMS AND CONDITIONS
WITNESSETH
WHEREAS, the CITY is the recipient of HOME Investment Partnerships Program Funds
from theU.S. Department of Housing and Urban Development (HUD), including funds
that are reserved for the use of Community Housing Development Organizations
(CHDOs); and
WHEREAS, the DEVELOPER has been certified with the CITY as a CHDO, and has
submitted a proposal for use of CH DO funds for a CHDO-eligible project under HOME
regulations;
NOW, THEREFORE in consideration of the mutual covenants and obligations herein
contained, including the Attachments, and subject to the terms and conditions hereinafter
stated, the parties hereto understand and agree as follows:
Section I — Definitions
A. AGENCY — is hereby defined as the Office of Neighborhood Development Services,
the HOMEProgram administering agency of the City of Yakima. For the purpose of this
Contract and all administration of HOME funds, the AGENCY shall act on behalf of the
CITY in the execution and fiscal and programmatic control of this contract. The term
"Approval by the CITY" or like term used in this Contract shall in no way relieve the
DEVELOPER from any duties or responsibilities under the terms of this Contract, or
obligation State or local law or regulation.
B. FEE — is hereby defined as the amount of money the CITY agrees to pay and the
DEVELOPERagrees to accept as payment in full for all the professional, technical and
construction services rendered pursuant to this Contract to complete the WORK as
further defined in Section III -SCOPE OF WORK, hereof.
C. WORK—is hereby defined as all the professional, technical and construction services
to berendered or provided by the DEVELOPER as described here.
D. PROJECT— is defined in Section IV below.
E. HOME — is hereby defined as the HOME Investment Partnerships Program as
described in24 CFR Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 -
12839.
Section II —Term
The DEVELOPER expressly agrees to complete all work required by this contract in
accordancewith the timetable set forth.
Milestone Deadline
Project Start Date: Date of signature.
Project Completion Date.:December 10, 2020
Duration of Contract: Through the end of the Affordability Period.
In addition, this project is subject to ongoing compliance requirements of HOME for
TWENTY (20) from the date the project is completes. The project is considered
completed when the final drawdown of HOME funds have been drawn by the City. During
this compliance period, the DEVELOPER will assure continued compliance with HOME
requirements. For homebuyer units this includes monitoring units for principal residency
and recapture of funds at time of resale. For rental units, this includes ongoing property
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standards, occupancy and rent limits compliance. Timely completion of the work
specified in this contract is an integral and essential part of performance. The expenditure
of HOME funds is subject to Federal deadlines and could result in the loss of the Federal
funds. By the acceptance and execution of this contract, it is understood and agreed by
the DEVELOPER that the PROJECT will be completed as expeditiously as possible and
that the DEVELOPER will make every effort to ensure that the project will proceed and
will not be delayed. Failure to meet these deadlines can result in cancellation of this
contract and the revocation of HOME funds. Since it is mutually agreed that time is of
the essence as regards this contract, the DEVELOPER shall cause appropriate
provisions to be inserted in all contracts or subcontracts relative to the work tasks
required by this contract, in order to ensure that the PROJECT will be completed
according to the timetable set forth. It is intended that such provisions inserted in any
subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit
of the CITY and enforceable by the CITY against the DEVELOPER and its successors
and assigns to the project or any part thereof or any interest therein.
In the event the DEVELOPER is unable to meet the above schedule or complete the
above services because of delays resulting from Acts of God, untimely review and
approval by the CITY and othergovernmental authorities having jurisdiction over the
PROJECT, or other delays that are not causedby the DEVELOPER, the CITY shall grant
a reasonable extension of time for completion of the WORK. It shall be the responsibility
of the DEVELOPER to notify the CITY promptly in writing whenever a delay is anticipated
or experienced, and to inform the CITY of all facts and details related to the delay.
Section III — Scope of Work
The DEVELOPER, in close coordination with the CITY, shall perform all professional
services (the 'WORK") necessary to complete the development and occupancy of the
following project in fullcompliance with the terms of this Contract, including, but not
limited to, Exhibit "B" (Use of HOME funds, property location, budget, completion
schedule & compliance term):
From the contract execution date to continue until the termination date as
specified within this contract, building and constructing a new home and will be
monitored for a twenty (20) year affordability period per HUD regulations
governing HOME Investment funded projects.
It is understood that the DEVELOPER will provide a specific working budget and realistic
timetable as relates to: acquisition, construction/rehabilitation, soft costs, development
fees and other allowablecosts/activities prior to any fund usage. Said budget shall identify
all sources and uses of funds, and allocate HOME and non-HOME funds to activities or
line items. The aforementioned Work tasks will be performed in essentially the manner
proposed in the DEVELOPER's proposal as received by the AGENCY on August 5,
2019. The aforementioned document will be considered to be a part and portion of this
Contract fully incorporated herein.
Section IV— Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses (excluding developer fee) shall be paid based on vouchers for
actual expensesincurred or paid. Requests for payment must be submitted by the
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DEVELOPER on forms specified by the CITY, with adequate and proper
documentation of eligible costs incurred in compliance with 92.206 and
necessary for HUD IDIS disbursement requirements. All such expenses shall be
in conformance to the approved project budget. Budget revision and approval
shall be required prior to payment of any expenses not conforming to the
approved project budget.
The City reserves the right to hold payment until adequate documentation has
been provided by the Developer and reviewed by the City. The Developer agrees
to the following provisions in satisfying the terms and conditions of this contract:
B. 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 Developer or
obligations of the Developer 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 HOME Program and also fall within the
applicable Project Budget.
The Developer shall submit written claims for reimbursement of services
performed under this Contract. The DEVELOPER may not request disbursement
of funds under this Contract until the funds are needed for payment of eligible
costs. The amount of each request must be limited to the amount needed.
C. No payment shall be made for any service rendered by the Developer 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.
D. 1. The Developer 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 per home,from what has been
set forth in the approved budget subject category. The City's written budget
revision approval must be received by the Developer prior to the Developer
incurring any expenditures against the revised budget subject categories.
2. When the revision of the Developer budget does not exceed ten percent
(10%) of an approved budget subject category, the Developer must submit a
revised budget to the City of Yakima ON DS prior to the submittal of claims against
the budget.
E. CITY reserves the right to inspect records and project sites to determine that
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reimbursement and compensation requests are reasonable. The CITY also
reserves the right to hold payment until adequate documentation has been
provided and reviewed.
F. DEVELOPER may submit a final invoice within (30) days upon completion. Final
payment shall be made afterthe CITY has determined that all services have been
rendered, files and documentation delivered, and unit(s) have been placed in
service in full compliance with HOME regulations, including submission of a
completion report and documentation of eligible occupancy, property standards
and long-term use restrictions.
G. CITY shall have the right to review and audit all records of the DEVELOPER
pertaining toany payment by the CITY. Said records shall be maintained for a
period of the HOME required affordability period.
Section V— Project Requirements
The DEVELOPER agrees to comply with all requirements of the HOME Program as
stated in 24 CFR Part 92, including but not limited to the following.
A. No HOME project funds will be advanced, and no costs can be incurred, until the City
hasconducted an environmental review of the proposed project site as required under
24 CFR Part 58. The environmental review may result in a decision to proceed with,
modify or cancel theproject. Notwithstanding any provision of this Contract, the parties
hereto agree and acknowledgethat this Contract does not constitute a commitment of
funds or site approval, and that such commitment of funds or approval may occur only
upon satisfactory completion of environmental review and receipt by the CITY of a
release of funds from the U.S. Department of Housing and Urban Development [or the
State of Washington] under 24 CFR Part §58. Further, the DEVELOPER will not
undertake or commit any funds to physical or choice-limiting actions, including property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior
to the environmental clearance, and must indicate that the violation of this provision may
result in the denial of any funds under the contract.
B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage,
and inthe case of a rental project, a deed covenant as required by 24 CFR Part 92.
C. The DEVELOPER will ensure that any expenditure of HOME funds will be in
compliance with therequirements at 92.206, and acknowledges that HOME funds will
only be provided as reimbursement for eligible costs incurred, including actual
expenditures or invoices for work completed.
D. If the project is to be owner-occupied, the DEVELOPER will ensure that all HOME
assisted unitswill be in compliance with 24 CFR 92.254, including documenting that the
property is eligible under 92.254(a)(1) — (2), and will maintain compliance during the
minimum compliance period. (If the property also contains a rental unit assisted with
HOME funds, the DEVELOPER will ensure that occupancy complies with the
requirements of 92.254(a)(6).) If the project is to be a rental,the DEVELOPER will ensure
that that project is eligible under 92.214, and that it will meet the applicable standards of
24 CFR 92.252 253 at occupancy and for the minimum compliance period.
E. The designated HOME-assisted units of this PROJECT will meet the affordability
requirements as found in 24 CFR 92.252 (rental) or 92.254 (owner-occupied) as
applicable. The DEVELOPER shall collect and maintain Project beneficiary information
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pertaining to household size, income levels, racial characteristics, and the presence of
Female Headed Households in order to determine low and moderate-income benefit in
a cumulative and individual manner. Income documentation shall be in a form consistent
with HOME requirements as stated in the HUD Technical Guide for Determining
Income and Allowances Under the HOMEProgram.
F. In the selection of occupants for PROJECT units, the DEVELOPER shall comply with
all nondiscrimination requirements of 24 CFR 92.350. If the project consists of 5 or more
units, the DEVELOPER will implement affirmative marketing procedures as required by
24 CFR 92.351. Such procedures are subject to approval of the AGENCY.
G. If the PROJECT is occupied at the time of this commitment, the DEVELOPER will
comply with the relocation requirements of 24 CFR 92.353.
H. DEVELOPER shall assure compliance with 24 CFR 92.251 as relates to Property
Standardsand Housing Quality Standards (HQS), Accessibility Standards under 24 CFR
92.251(a)(3) asapplicable, and Lead Based Paint Requirements as found in 24 CFR
92.355 and 24 CFR Part 35.
I. If the PROJECT is to be owner-occupied, the DEVELOPER shall assure that any
NOTES and MORTGAGES recorded for homebuyers shall be in compliance with 24
CFR 92.254 and that the DEVELOPER will monitor each unit for principal residency
(under 92.254(a)(3)) and resale/recapture (under 92.254 (a)(4) — (5)).
J. DEVELOPER will provide any documentation required by the AGENCY regarding
match as may be required to document match for purposes of the HOME program.
K. If any project under this contract involves the construction or rehabilitation of 12 or
more HOME-assisted units, the DEVELOPER shall comply with the provisions of the
Davis-Bacon Act(40 U.S.C. 276 a to a - 7) as supplemented by AGENCY of Labor
regulations (29 CFR, Part 5),as amended.
L. If the property is sold through a lease-purchase contract, the DEVELOPER will ensure
compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B.
M. DEVELOPER will be monitored by the AGENCY for compliance with the regulations
of24 CFR 92 for the compliance period specified above. The DEVELOPER will provide
reports andaccess to project files as requested by the AGENCY during the PROJECT
and for Five (5) yearsafter completion and closeout of the CONTRACT.
Section VI — Repayment of Loan
A. All HOME funds are subject to repayment in the event the PROJECT does not meet
the Project._. as outlined above.
B. It is understood that upon the completion of the PROJECT, any HOME funds reserved
but notexpended under this contract will revert to the CITY.
C. If the PROJECT is for owner-occupancy, the DEVELOPER shall lend the HOME
funds to the individual buyers in an amount sufficient to make the purchase affordable.
Any HOME funds that reduce the price of the property below the fair market value of the
property shall be secured by a HOME note and mortgage as required in 92.254(a)(5)(ii),
using the note and mortgage prescribed or approved by the AGENCY (and consistent
with the method of recapture identified in the CITY's "Consolidated Plan"). All net sales
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proceeds from the sale of units are considered to be CDHO proceeds that may be
retained by the DEVELOPER and used in conformance with 24 CFR 92.300(a)(2), to be
retained by the CDHO and used to further affordable housing for qualified first-time home
buyers within the City of Yakima.
Section VII — CHDO Provisions
It is understood that the DEVELOPER has certified that it is and will maintain CHDO
(Community Housing Development Organization) status for the term of the
PROJECT/CONTRACT in accordancewith 24 CFR 92. The DEVELOPER agrees to
provide information as may be requested by the AGENCY to document its continued
compliance, including but not limited to an annual board roster and certification of
continued compliance. Any funds advanced as CHDO pre-development funds must be
in compliance with 92.301, and are forgivable only under the terms in 92.301.
Any funds advanced to the CH DO as CH DO Operating Expenses must be expended in
compliancewith 24 CFR 92.208.Any funds that the CH DO is permitted to retain as CH DO
proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2) or as
specified in this Contract. If the project is rental, the DEVELOPER will create and follow
a tenant participation plan as required in 24 CFR 92.303.
Section VIII — Procurement Standards
The DEVELOPER shall establish procurement procedures to ensure that materials and
services are obtained in a cost-effective manner. When procuring for services to be
provided under this contract,the DEVELOPER shall comply at a minimum with the
nonprofit procurement standards at 24 CFR 84.40 - .48.
In addition, the following requirements are imposed on any procurement under this
PROJ ECT:
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 Developer 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.
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5. If the Developer 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 Developer. 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 Developer 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
Developer, 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 Developer 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 Developer 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 Developer 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.
In addition, it is understood that any DEVELOPER that can be considered to be a
religious organization shallabide by all portions of 24 CFR 92.257.
Section IX—Conflict of Interest Provisions
The DEVELOPER warrants and covenants that it presently has no interest and shall not
acquire anyinterest, directly or indirectly, which could conflict in any manner or degree
with the performanceof its services hereunder. The DEVELOPER further warrants and
covenants that in the performanceof this contract, no person having such interest shall
be employed. HOME conflict of interest provisions, as stated in 92.356, apply to the
award of any contracts under the contract and the selection of tenant households to
occupy HOME-assisted units. No employee, agent, consultant, elected official, or
appointed official of the DEVELOPER may obtain a financial interest or unit benefits from
a HOME-assisted activity, either for themselves or those with whom they have family or
business ties, during their tenure or for one year thereafter. This prohibition includes the
following:
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• Any interest in any contract, subcontract or agreement with respect to a HOME-
assisted project or program administered by the DEVELOPER, or the proceeds
thereunder; or
• Any unit benefits or financial assistance associated with HOME projects or
programs administered by the DEVELOPER, including:
Occupancy of a rental housing unit in a HOME-assisted rental project;
Receipt of HOME tenant-based rental assistance;
Purchase or occupancy of a homebuyer unit in a HOME-assisted project;
Receipt of HOME homebuyer acquisition assistance; or
Receipt of HOME owner-occupied rehabilitation assistance.
This prohibition does not apply to an employee or agent of the DEVELOPER who
occupies a HOME assisted unit as the on-site project manager or maintenance worker.
In addition, no member of Congress of the United States, official or employee of HUD,
or official or employee of the Participating Jurisdiction shall be permitted to receive or
share any financial or unit benefits arising from the HOME-assisted project or program.
Prior to the implementation of the HOME-assisted activity, exceptions to these provisions
may be requested by the DEVELOPER in writing to the Participating Jurisdiction. The
DEVELOPER must demonstrate and certify that the policies and procedures adopted for
the activity will ensure fair treatment of all parties, and that the covered persons
referenced in this policy will have no inside information or undue influence regarding the
award of contracts or benefits of the HOME assistance. The Jurisdiction may grant
exceptions or forward the requests to HUD as permitted by24 CFR 92.356, 85.36 and
84.42, as they apply.
Section X— City Responsibilities
CITY shall furnish the DEVELOPER with the following services and information from
existing CITY records and CITY files:
A. CITY shall provide to the DEVELOPER information regarding its requirements for the
PROJ ECT.
B. CITY will provide the DEVELOPER with any changes in HOME regulations or program
limitsthat affect the project, including but not limited to income limits, property value limits
and rent limits.
C. CITY will conduct progress inspections of work completed to protect its interests as
lender and regulatory authority for the project, and will provide information to the
DEVELOPER regarding any progress inspections or monitoring to assist it in ensuring
compliance. CITY's review and approval of the WORK will relate only to overall
compliance with the general requirements of this Contract and HOME regulations, and
all CITY regulations and ordinances. Nothing contained herein shall relieve the
DEVELOPER of any responsibility as provided under this Contract.
Section XI — Equal Employment Opportunity
During the performance of this contract, the DEVELOPER agrees as follows:
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A. DEVELOPER will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin(s). The DEVELOPER will take
affirmative action to ensure the applicants are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex or national origin(s).
Such action shall include, but not be limited to, the following: employment, upgrading,
demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training, including
apprenticeship. The DEVELOPER agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the contracting
officer of the CITY setting forth the provisions of this nondiscrimination clause.
B. DEVELOPER will, in all solicitations or advertisements for employees placed by or on
behalfof the DEVELOPER, state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex, or national origin.
C. DEVELOPER will send to each labor union or representative of workers with which
he has acollective bargaining agreement or other contract or understanding, a notice to
be provided by the CITY's contracting officer, advising the labor union or worker's
representative of the DEVELOPER's commitments under Section 202 of Executive
Order No. 11246 of September 24, 1965, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
D. DEVELOPER will comply with all provisions of Executive Order 11246 of September
24,1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
E. DEVELOPER will furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary
of Labor, or pursuant thereto, and will permit access to its books, records, and accounts
by the AGENCY and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and order.
F. In the event the DEVELOPER is found to be in noncompliance with the
nondiscrimination clausesof this contract or with any of such rules, regulations or orders,
this contract may be canceled, terminated or suspended in whole or in part and the
DEVELOPER may be declared ineligible for further Government contracts in accordance
with procedures authorized in Executive Order 11246 of September 24, 1965, and such
other sanctions may be imposed and remedies invoked as provided in Executive Order
11246 of September 24, 1965 or by rule, regulations, or order of the Secretary of Labor
or as otherwise provided by law.
G. DEVELOPER will include the provisions of paragraphs (a) through (g) of this contract
in every subcontract or purchase order unless exempted by rules, regulations, or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of
September 24, 1965, so that such provisions will be binding upon each subcontractor or
vendor. The DEVELOPER will take such action with respect to any subcontract or
purchase order as the AGENCY may direct as a means of enforcing such provisions,
including sanctions for noncompliance; provided, however, that in the event the
DEVELOPER becomes involved in, or is threatened with litigation with a subcontractor
or vendor as a result of such direction by the AGENCY, the DEVELOPER may request
the United States to enter into such litigation to protect the interest of the United States.
Section XII — Labor, Training & Business Opportunity
DEVELOPER agrees to comply with the federal regulations governing training,
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employment andbusiness opportunities as follows:
A. It is agreed that the WORK to be performed under this contract is on a project assisted
undera program providing direct Federal financial assistance from the US Department of
Housing and Urban Development and is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, as well
as any and all applicable amendments thereto. Section 3 requires that, to the greatest
extent feasible, opportunities for training and employment be given low- and moderate-
income residents of the project area, and that contracts for work in connection with the
project be awarded to business concerns which are located in, or owned in substantial
part by persons residing in the project area.
B. DEVELOPER shall comply with the provisions of said Section 3 and the regulations
issuedpursuant thereto by the Secretary of Housing and Urban Development set forth in
24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of
Housing and Urban Development issued thereunder as well as any and all applicable
amendments thereto prior to the execution of this contract as well as during the term of
this contract. The DEVELOPER certifies and agrees that it is under no contractual or
other disability, which would prevent it from complying with these requirements as well
as any and all applicable amendments thereto.
C. DEVELOPER will include this Section 3 clause in every subcontract for work in
connection with the project and will, at the direction of the CITY, take appropriate action
pursuant to the subcontractor upon a finding that the subcontractor is in violation of
regulations issued by the Secretary of Housing and Urban Development, in 24 Code of
Federal Regulations. The DEVELOPER will not subcontract with any subcontractor
where it has notice or knowledge that the latter has been found in violation of regulations
under 24 code of Federal Regulations and will not let any subcontract unless the
subcontractor has first provided it with a preliminary statement of ability to comply with
these requirements as well as with any and all applicable amendments thereto.
D. Compliance with the provisions of Section 3, the regulations set forth in 24 Code of
Federal Regulations and all applicable rules and orders of the AGENCY of Housing and
Urban Development issued thereunder prior to the execution of the contract shall be a
condition precedent to federal financial assistance being provided to the PROJECT as
well as a continuing condition, binding upon the applicant or recipient for such assistance,
its successors, and assigns. Failure to fulfill these requirements shall subject the
DEVELOPER or recipient, its contractors and subcontractors, its successors, and
assigns to those sanctions specified by 24 Code of Federal Regulations as well as with
any and all applicable amendments thereto.
Section XIII —Compliance with Federal, State & Local Laws
A. GENERAL. The DEVELOPER covenants and warrants that it will comply with
all applicable laws, ordinances, codes, rules and regulations of the state local and federal
governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil
Rights Act of 1968 PL.90-284; Executive Order 11063 on Equal Opportunity and Housing
Section 3 of the Housing and Urban Development Act of 968; Housing and Community
Development Act of 1974, as well as all requirements set forth in 24 CFR 92 of the HOME
INVESTMENT PARTNERSHIP PROGRAM. The DEVELOPER covenants and warrants
that it will indemnify and hold the City forever free and harmless with respect to any and
all damages whether directly or indirectly arising out of the provisions and maintenance
of this contract. DEVELOPER agrees to comply with all applicable standards, orders, or
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section
508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental
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Protection Agency regulations (40 CFR part 15). DEVELOPER further warrants and
agrees to include or cause to be included the criteria and requirements of this section in
every non-exempt subcontract in excess of$100,000. DEVELOPER also agrees to take
such action as the federal, state or local government may direct to enforce aforesaid
provisions.
B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT
REQUIREMENTS.
The following federal provisions may apply, among others, to this Contract:
1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR
INELIGIBILITY AND VOLUNTARY EXCLUSION—PRIMARY AND LOWER
TIER COVERED TRANSACTIONS
(a) DEVELOPER, defined as the primary participant and its principals,
certifies by signing these General Terms and Conditions that to
the best of its knowledge and belief that they:
(b) Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from covered
transactions by any Federal department or agency.
(c) Have not within a three-year period preceding this Contract, been
convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public or private
contract or transaction, violation of Federal or State antitrust
statutes or commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements,
tax evasion, receiving stolen property, making false claims, or
obstruction of justice;
(d) Are not presently indicted for or otherwise criminally or civilly
charged by a governmental entity (Federal, State, or local) with
commission of any of the offenses enumerated in paragraph
(1)(b) of this section; and
(i) Have not within a three-year period preceding the signing
of this Contract had one or more public transactions (Federal,
State, or local) terminated for cause of default.
(ii) Where the DEVELOPER is unable to certify to any of the
statements in this Contract, the DEVELOPER shall attach an
explanation to this Contract.
(iii) The DEVELOPER agrees by signing this Contract that it
shall not knowingly enter into any lower tier covered transaction
with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction.
(iv) The DEVELOPER further agrees by signing this Contract
that it will include the clause titled "Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion-
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Lower Tier Covered Transaction," as follows, without
modification, in all lower tier covered transactions and in all
solicitations for lower tier covered transactions:
(e) LOWER TIER COVERED TRANSACTIONS
(i) Each lower tier contractor certifies, by signing this Contract
that neither it nor its principals is presently debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal
department or agency.
(ii) Where the lower tier contractor is unable to certify to any
of the statements in this Contract, such contractor shall attach an
explanation to this Contract.
2. 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).
3. 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.
4. 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).
5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et
seq., implementing regulations, and Chapter 70.92 RCW.
6. Accessibility Standard as set forth in 92.251(a)(3).
7. 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.
8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC
Section 1701 u) and 24 CFR Part 135 (Employment opportunities for project area
businesses and low-income persons).
9. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333,
(Overtime Compensation).
10. Davis-Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and
RCW Chapter 3— 12 (Prevailing Wage Rates).
11. 2 CFR Part 200 (Procurement Standards) and Federal Management
Circular, FMC 74-4.
12. The Uniform Relocation Assistance and Real Property Acquisition
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Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42
and 570.
13. 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 Contract, and Developer 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 Developer, the County, and the United States are beneficiaries of and entitled
to enforce such covenant. The Developer, 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.
14. Age Discrimination Act of 1975 (24 CFR 146).
15. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1).
16. Washington State/Local Building Codes/Housing Quality Standards (24
CFR 882.109).
17. WBE/MBE (24 CFR 85.36 (e)).
Section XIV—Suspension & Termination
In accordance with 24 CFR 85.43, suspension or termination may occur if the
DEVELOPER materiallyfails to comply with any term of the award, and that the award
may be terminated for convenience in accordance with 24 CFR 85.44.
If, through any cause, the DEVELOPER shall fail to fulfill in timely and proper manner its
obligationsunder this contract, or if the DEVELOPER shall violate any of the covenants,
agreements, or stipulationsof this contract, the CITY shall thereupon have the right to
terminate this contract by giving written notice to the DEVELOPER of such termination
and specifying the effective date thereof, at least five (5) days before the effective date
of such termination. In such event, the DEVELOPER shall be entitled to receive just and
equitable compensation for any work satisfactorily completed hereunder to the date of
said termination. Notwithstanding the above, the DEVELOPER shall not be relieved of
liability to the CITY for damages sustained by the CITY by virtue of any breach of the
contract by the DEVELOPER and the CITY may withhold any payments to the
DEVELOPER for the purpose of setoff until such time as the exact amount of damages
due the CITY from the DEVELOPER is determined whether by court of competent
jurisdiction or otherwise.
Section XV— Termination for Convenience of the CITY
The CITY may terminate for its convenience this contract at any time by giving at least
thirty (30) days notice in writing to the DEVELOPER. If the contract is terminated by the
CITY, as provided herein, the City will reimburse for any actual and approved expenses
incurred, including those costs involved in terminating the contracts and shutting down
the work as of the date of notice, and the DEVELOPER will be paid as a FEE an amount
which bears the same ratio to the total compensation as the services actually performed
bear to the total service of the DEVELOPER covered by this contract, less payments of
compensation previously made. Claims and disputes between the parties will be
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submitted to the American Arbitration Association for resolution. Award or judgment may
be entered in any court having jurisdiction thereof.
Section XVI — Default-Loss of Grant Funds
If the DEVELOPER fails in any manner to fully perform and carry out any of the terms,
covenants,and conditions of the contract, and more particularly if the DEVELOPER
refuses or fails to proceedwith the work with such diligence as will insure its completion
within the time fixed by the schedule set forth in Exhibit B of this contract, the
DEVELOPER shall be in default and notice in writing shall be given to the DEVELOPER
of such default by the AGENCY or an agent of the AGENCY. If the DEVELOPER fails to
cure such default within such time as may be required by such notice, the CITY, acting
by and through the AGENCY, may at its option terminate and cancel the contract. In the
event of such termination, all grant funds awarded to the DEVELOPER pursuant to this
contract shall be immediately revoked and any approvals related to the PROJECT shall
immediately be deemed revoked and canceled. In such event, the DEVELOPER will no
longer be entitled to receive any compensation for work undertaken after the date of the
termination of this contract, as the grant funds will no longer be available for this project.
Such termination shall not effect or terminate any of the rights of the CITY as against the
DEVELOPER then existing, or which may thereafter accrue because of such default, and
the foregoing provision shall be in addition to all other rights and remedies available to
the CITY under the law and the note and mortgage (if in effect), including but not limited
to compelling the DEVELOPER to complete the project in accordance with the terms of
this contract, in a court of equity. The waiver of a breach of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent breach of the same or
any other term, covenant, or condition hereof.
Section XVII — Reporting Responsibilities
DEVELOPER agrees to submit any and all quarterly reports required by HUD or the CITY
to theAGENCY on the following due dates: October 1, January 1, April 1, and July 1,
next following thedate of this contract. The AGENCY will send the DEVELOPER one
reminder notice if the quarterly report has not been received fourteen (14) days after the
due date. If the DEVELOPER has not submitted a report fourteen (14) days after the
date on the reminder notice, the CITY will have the option to terminate the contract as
described in this contract. In addition, the DEVELOPER agrees to provide the AGENCY
information as required to determine program eligibility, in meeting national objectives,
and financial records pertinent to the project. Additional reporting requirements are
included in Exhibit B.
Section XVIII — Inspection, Monitoring & Access to Records
CITY reserves the right to inspect, monitors, and observe work and services performed
by theDEVELOPER at any and all reasonable times. CITY reserves the right to audit the
records of the DEVELOPER any time during the performance of this Contract and for a
period of five years after final payment is made under this Contract. If required, the
DEVELOPER will provide the AGENCY with a certified audit of the DEVELOPER's
records representing the Fiscal Year during which the PROJECT becomes complete
whenever the amount listed in SECTION VII is at or exceeds $300,000, pursuant to the
requirements of OMB Circular A-133. Access shall be immediately granted to the CITY,
HUD, the Comptroller General of the United States, or any of their duly authorized
representatives to any books, documents, papers, and records of the DEVELOPER or
its contractors which are directly pertinent to that specific contract for the purpose of
making audit, examination, excerpts, and transcriptions.
Section XIX—General Conditions
A. All notices or other communication which shall or may be given pursuant to this
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Contractshall be in writing and shall be delivered by personal service, or by registered
mail addressed tothe other party at the address indicated herein or as the same may be
changed from time to time. Such notice shall be deemed given on the day on which
personally served; or, if by mail, on the fifth day after being posted or the date of actual
receipt, whichever is earlier.
City address: City Manager
Yakima City Hall
129 North 2' Street
Yakima, Washington 98901
Copy To: Office of Neighborhood Development Services
City of Yakima
112 South 8'h Street
Yakima, Washington 98901
DEVELOPER address: Yakima Valley Partners Habitat for Humanity
21 W. Mead Ave. Ste # 110
Yakima, Washington 98902
B. Title and paragraph headings are for convenient reference and are not a part of this
Contract.
C. In the event of conflict between the terms of this Contract and any terms or conditions
contained in any attached documents, the terms in this Contract shall rule.
D. No waiver or breach of any provision of this Contract shall constitute a waiver of a
subsequentbreach of the same or any other provision hereof, and no waiver shall be
effective unless made in writing.
E. The parties hereto agree that this Contract shall be construed and enforced according
to thelaws of the State of Washington.
F. Should any provisions, paragraphs, sentences, words or phrases contained in this
Contract be determined by a court of competent jurisdiction to be invalid, illegal or
otherwise unenforceableunder the laws of the State of Washingtonor the City of Yakima,
such provisions, paragraphs, sentences, words or phrases shall be deemed modified to
the extent necessary in order to conform with such laws, or if not modifiable to conform
with such laws, then same shall be deemed severable, and in either event,the remaining
terms and provisions of this Contract shall remain unmodified and in full force and effect.
G. DEVELOPER shall comply with the provisions of the Copeland Anti-Kick-Back Act(18
U.S.C. 874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), as
amended.
H. DEVELOPER shall comply with the provisions of sections 103 and 107 of the Contract
WorkHours and Safety Standard Act (40 U.S.C. 327-330) as supplemented by AGENCY
of Labor regulations (29 CFR, Part 5), as amended.
I. DEVELOPER further warrants and agrees to include or cause to be included the criteria
and requirements of paragraphs (G) through (H) of this section in every nonexempt
subcontract. The DEVELOPER also agrees to take such action as the federal, state or
local government may directto enforce aforesaid provisions.
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J. The obligations undertaken by DEVELOPER pursuant to this Contract shall not be
delegated orassigned to any other person or agency unless CITY shall first consent to
the performance orassignment of such service or any part thereof by another person or
agency.
K. This Contract shall be binding upon the parties hereto, their heirs, executors, legal
representative, successors and assigns.
L. DEVELOPER shall indemnify and save CITY harmless from and against any negligent
claims,liabilities, losses and causes of action which may arise out of DEVELOPER's
activities under thisContract, including all other acts or omissions to act on the part of
DEVELOPER, including anyperson acting for or on its behalf, and, from and against any
orders, judgments, or decrees which may be entered, and from and against all costs,
attorneys fees, expenses and liabilities incurred in the defense of any such claims, or in
the investigation thereof.
M. DEVELOPER and its employees and agents shall be deemed to be independent
contractors, andnot agents or employees of the CITY, and shall not attain any rights or
benefits under the civil service or pension ordinances of the CITY, or any rights generally
afforded classified or unclassified employee; further they shall not be deemed entitled to
state Compensation benefits as an employee of the CITY.
N. Funding for this Contract is contingent on the availability of funds and continued
authorization for program activities and is subject to amendment or termination due to
lack offunds, or authorization, reduction of funds, and/or change in regulations.
Exhibit "B"
Yakima Valley Partners Habitat for Humanity
A.) PROPOSAL SUMMARY/PROJECT ABSTRACT
Yakima Valley Partners Habitat for Humanity will construct a single-family home
located at 704 N. 20'h Ave and sell it to a qualified low income,first time homebuyer
and monitor the "Affordability Period"for a period of no less than twenty (20) years,
after which all net proceeds shall be granted to Habitat.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
Yakima Valley Partners Habitat for Humanity will provide the construction of a
single-family dwelling to be sold to a qualified low to moderate-income first-time
homebuyer and monitor the project for a period of no less than Twenty (20) year
affordability period in exchange for all net proceeds redeemed from the sale of the
home located at 704 N. 20'h Ave.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create another affordable single-family residence within in the City of Yakima.
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Objectives
1. Prepare site for construction.
2. Construct a new single-family dwelling.
3. Sell the new single-family home to a qualified low to moderate first-time
homebuyer.
D.) METHODOLOGY
From the contract execution date to continue until the termination date as specified
within this contract, Yakima Valley Partners Habitat for Humanity will construct a
new single-family dwelling to be sold to a qualified low to moderate first time
homebuyer to be monitored for a Twenty (20) year affordability period per HUD
regulations governing HOME Investment funded projects.
E.) OUTCOMES & EVALUATION
As a condition of reimbursement, Habitat for Humanity will,
1. Prepare the site for construction.
2. Construct a new Single-family dwelling.
3. Sell the property and dwelling to a qualified low to moderate-income first-time
homebuyer.
4. Monitor the property at 704 N. 20'h Ave for a period of no less than a Twenty (20)
year affordability period as per HOME Investment requirements.
F.) BUDGET
Yakima Valley Partners Habitat for Humanity will be reimbursed up to $60,201
between the contract execution date and end upon completion of construction, for
eligible activities, subject to the terms and conditions of the Contract.
Exhibit "C"
(THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION")
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Exhibit "D"
Is the attached proposal as submitted to the City of Yakima on August 5, 2019
20 of 21 City of Yakima 11/25/2019
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CONTRACT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND DEVELOPER—YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY
(1013 Pleasant Ave.)
1. DEVELOPER: Yakima Valley Partners Habitat for Humanity
2. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902
3. Phone: (509) 453-8077
4. Contact Person: Meloney Rosen, Director
5. Title of Service or Program being funded: New Construction of a single family
home located at: 1013 Pleasant Ave., Yakima, WA 98902.
6. Amount of Contract Award: $37,068 (HOME) CFDA Contract# 14.239
7. The term of this Contract shall commence upon the execution date of Developer's
receipt of "Letter to Proceed" from City of Yakima Office or Neighborhood
Development Services and the project will begin construction within twelve
months of entering this Contract and will be completed by December 31, 2020 at
midnight, unless sooner terminated by either party in accordance with Section
XIV of Exhibit "A", attached hereto and incorporated herein by this reference.
8. This contract award and the rights and obligations of both parties hereto shall be
subject to and governed by the following:
(a) "Terms and Conditions" attached hereto as Exhibit "A" and
incorporated herein by this reference; and
(b) Operating budget including the funding sources and uses
statement and the work plan, attached hereto as Exhibit "B" and incorporated
herein by this reference.
(c) City of Yakima Resolution No. R-2019- , a copy of which
is attached hereto as Exhibit "C" and incorporated herein by this reference.
8. Final Contract payment shall be subject to satisfactory completion of the project
described in Exhibit "B", and satisfaction of all contract terms and conditions,
including, but not limited to, the submission of the final report and billing invoice
information within thirty (30) days of the contract closing date, and as stated in
Exhibit "A", Exhibit "B" and Exhibit "C".
This written document, together with all of the incorporated exhibits hereto, constitutes
the entire Contract and terms of agreement between the parties hereto.
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IN WITNESS THEREOF the parties have executed this Contract as of the day and year
stated below.
CITY OF YAKIMA DEVELOPER: Habitat for Humanity
By:
Alex Meyerhoff, Interim City Manager Meloney Rosen
Title: Executive Director
Date:
Date:
Joan Davenport, CDD Director
Date:
ATTEST
Sonya Claar Tee, City Clerk
City Contract No.:
EXHIBIT "A'
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TERMS AND CONDITIONS
WITNESSETH
WHEREAS, the CITY is the recipient of HOME Investment Partnerships Program Funds
from theU.S. Department of Housing and Urban Development (HUD), including funds
that are reserved for the use of Community Housing Development Organizations
(CHDOs); and
WHEREAS, the DEVELOPER has been certified with the CITY as a CHDO, and has
submitted a proposal for use of CH DO funds for a CHDO-eligible project under HOME
regulations;
NOW, THEREFORE in consideration of the mutual covenants and obligations herein
contained, including the Attachments, and subject to the terms and conditions hereinafter
stated, the parties hereto understand and agree as follows:
Section I — Definitions
A. AGENCY — is hereby defined as the Office of Neighborhood Development Services,
the HOME Program administering agency of the City of Yakima. For the purpose of this
Contract and all administration of HOME funds, the AGENCY shall act on behalf of the
CITY in the execution and fiscal and programmatic control of this contract. The term
"Approval by the CITY" or like term used in this Contract shall in no way relieve the
DEVELOPER from any duties or responsibilities under the terms of this Contract, or
obligation State or local law or regulation.
B. FEE — is hereby defined as the amount of money the CITY agrees to pay and the
DEVELOPERagrees to accept as payment in full for all the professional, technical and
construction services rendered pursuant to this Contract to complete the WORK as
further defined in Section III -SCOPE OF WORK, hereof.
C. WORK—is hereby defined as all the professional, technical and construction services
to berendered or provided by the DEVELOPER as described here.
D. PROJECT— is defined in Section IV below.
E. HOME — is hereby defined as the HOME Investment Partnerships Program as
described in24 CFR Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 -
12839.
Section II —Term
The DEVELOPER expressly agrees to complete all work required by this contract in
accordancewith the timetable set forth.
Milestone Deadline
Project Start Date: Date of signature.
Project Completion Date.:December 10, 2020
Duration of Contract: Through the end of the Affordability Period.
In addition, this project is subject to ongoing compliance requirements of HOME for
TWENTY (20) from the date the project is completes. The project is considered
completed when the final drawdown of HOME funds have been drawn by the City. During
this compliance period, the DEVELOPER will assure continued compliance with HOME
requirements. For homebuyer units this includes monitoring units for principal residency
and recapture of funds at time of resale. For rental units, this includes ongoing property
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standards, occupancy and rent limits compliance. Timely completion of the work
specified in this contract is an integral and essential part of performance. The expenditure
of HOME funds is subject to Federal deadlines and could result in the loss of the Federal
funds. By the acceptance and execution of this contract, it is understood and agreed by
the DEVELOPER that the PROJECT will be completed as expeditiously as possible and
that the DEVELOPER will make every effort to ensure that the project will proceed and
will not be delayed. Failure to meet these deadlines can result in cancellation of this
contract and the revocation of HOME funds. Since it is mutually agreed that time is of
the essence as regards this contract, the DEVELOPER shall cause appropriate
provisions to be inserted in all contracts or subcontracts relative to the work tasks
required by this contract, in order to ensure that the PROJECT will be completed
according to the timetable set forth. It is intended that such provisions inserted in any
subcontracts be, to the fullest extent permitted by law and equity, binding for the benefit
of the CITY and enforceable by the CITY against the DEVELOPER and its successors
and assigns to the project or any part thereof or any interest therein.
In the event the DEVELOPER is unable to meet the above schedule or complete the
above services because of delays resulting from Acts of God, untimely review and
approval by the CITY and othergovernmental authorities having jurisdiction over the
PROJECT, or other delays that are not causedby the DEVELOPER, the CITY shall grant
a reasonable extension of time for completion of the WORK. It shall be the responsibility
of the DEVELOPER to notify the CITY promptly in writing whenever a delay is anticipated
or experienced, and to inform the CITY of all facts and details related to the delay.
Section III — Scope of Work
The DEVELOPER, in close coordination with the CITY, shall perform all professional
services (the 'WORK") necessary to complete the development and occupancy of the
following project in fullcompliance with the terms of this Contract, including, but not
limited to, Exhibit "B" (Use of HOME funds, property location, budget, completion
schedule & compliance term):
From the contract execution date to continue until the termination date as
specified within this contract, building and constructing a new home and will be
monitored for a twenty (20) year affordability period per HUD regulations
governing HOME Investment funded projects.
It is understood that the DEVELOPER will provide a specific working budget and realistic
timetable as relates to: acquisition, construction/rehabilitation, soft costs, development
fees and other allowablecosts/activities prior to any fund usage. Said budget shall identify
all sources and uses of funds, and allocate HOME and non-HOME funds to activities or
line items. The aforementioned Work tasks will be performed in essentially the manner
proposed in the DEVELOPER's proposal as received by the AGENCY on August 5,
2019. The aforementioned document will be considered to be a part and portion of this
Contract fully incorporated herein.
Section IV— Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses (excluding developer fee) shall be paid based on vouchers for
actual expensesincurred or paid. Requests for payment must be submitted by the
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DEVELOPER on forms specified by the CITY, with adequate and proper
documentation of eligible costs incurred in compliance with 92.206 and
necessary for HUD IDIS disbursement requirements. All such expenses shall be
in conformance to the approved project budget. Budget revision and approval
shall be required prior to payment of any expenses not conforming to the
approved project budget.
The City reserves the right to hold payment until adequate documentation has
been provided by the Developer and reviewed by the City. The Developer agrees
to the following provisions in satisfying the terms and conditions of this contract:
B. 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 Developer or
obligations of the Developer 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 HOME Program and also fall within the
applicable Project Budget.
The Developer shall submit written claims for reimbursement of services
performed under this Contract. The DEVELOPER may not request disbursement
of funds under this Contract until the funds are needed for payment of eligible
costs. The amount of each request must be limited to the amount needed.
C. No payment shall be made for any service rendered by the Developer 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.
D. 1. The Developer 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 per home,from what has been
set forth in the approved budget subject category. The City's written budget
revision approval must be received by the Developer prior to the Developer
incurring any expenditures against the revised budget subject categories.
2. When the revision of the Developer budget does not exceed ten percent
(10%) of an approved budget subject category, the Developer must submit a
revised budget to the City of Yakima ON DS prior to the submittal of claims against
the budget.
E. CITY reserves the right to inspect records and project sites to determine that
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reimbursement and compensation requests are reasonable. The CITY also
reserves the right to hold payment until adequate documentation has been
provided and reviewed.
F. DEVELOPER may submit a final invoice within (30) days upon completion. Final
payment shall be made afterthe CITY has determined that all services have been
rendered, files and documentation delivered, and unit(s) have been placed in
service in full compliance with HOME regulations, including submission of a
completion report and documentation of eligible occupancy, property standards
and long-term use restrictions.
G. CITY shall have the right to review and audit all records of the DEVELOPER
pertaining toany payment by the CITY. Said records shall be maintained for a
period of the HOME required affordability period.
Section V— Project Requirements
The DEVELOPER agrees to comply with all requirements of the HOME Program as
stated in 24 CFR Part 92, including but not limited to the following.
A. No HOME project funds will be advanced, and no costs can be incurred, until the City
hasconducted an environmental review of the proposed project site as required under
24 CFR Part 58. The environmental review may result in a decision to proceed with,
modify or cancel theproject. Notwithstanding any provision of this Contract, the parties
hereto agree and acknowledgethat this Contract does not constitute a commitment of
funds or site approval, and that such commitment of funds or approval may occur only
upon satisfactory completion of environmental review and receipt by the CITY of a
release of funds from the U.S. Department of Housing and Urban Development [or the
State of Washington] under 24 CFR Part §58. Further, the DEVELOPER will not
undertake or commit any funds to physical or choice-limiting actions, including property
acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior
to the environmental clearance, and must indicate that the violation of this provision may
result in the denial of any funds under the contract.
B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage,
and inthe case of a rental project, a deed covenant as required by 24 CFR Part 92.
C. The DEVELOPER will ensure that any expenditure of HOME funds will be in
compliance with therequirements at 92.206, and acknowledges that HOME funds will
only be provided as reimbursement for eligible costs incurred, including actual
expenditures or invoices for work completed.
D. If the project is to be owner-occupied, the DEVELOPER will ensure that all HOME
assisted unitswill be in compliance with 24 CFR 92.254, including documenting that the
property is eligible under 92.254(a)(1) — (2), and will maintain compliance during the
minimum compliance period. (If the property also contains a rental unit assisted with
HOME funds, the DEVELOPER will ensure that occupancy complies with the
requirements of 92.254(a)(6).) If the project is to be a rental,the DEVELOPER will ensure
that that project is eligible under 92.214, and that it will meet the applicable standards of
24 CFR 92.252 253 at occupancy and for the minimum compliance period.
E. The designated HOME-assisted units of this PROJECT will meet the affordability
requirements as found in 24 CFR 92.252 (rental) or 92.254 (owner-occupied) as
applicable. The DEVELOPER shall collect and maintain Project beneficiary information
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pertaining to household size, income levels, racial characteristics, and the presence of
Female Headed Households in order to determine low and moderate-income benefit in
a cumulative and individual manner. Income documentation shall be in a form consistent
with HOME requirements as stated in the HUD Technical Guide for Determining
Income and Allowances Under the HOMEProgram.
F. In the selection of occupants for PROJECT units, the DEVELOPER shall comply with
all nondiscrimination requirements of 24 CFR 92.350. If the project consists of 5 or more
units, the DEVELOPER will implement affirmative marketing procedures as required by
24 CFR 92.351. Such procedures are subject to approval of the AGENCY.
G. If the PROJECT is occupied at the time of this commitment, the DEVELOPER will
comply with the relocation requirements of 24 CFR 92.353.
H. DEVELOPER shall assure compliance with 24 CFR 92.251 as relates to Property
Standardsand Housing Quality Standards (HQS), Accessibility Standards under 24 CFR
92.251(a)(3) asapplicable, and Lead Based Paint Requirements as found in 24 CFR
92.355 and 24 CFR Part 35.
I. If the PROJECT is to be owner-occupied, the DEVELOPER shall assure that any
NOTES and MORTGAGES recorded for homebuyers shall be in compliance with 24
CFR 92.254 and that the DEVELOPER will monitor each unit for principal residency
(under 92.254(a)(3)) and resale/recapture (under 92.254 (a)(4) — (5)).
J. DEVELOPER will provide any documentation required by the AGENCY regarding
match as may be required to document match for purposes of the HOME program.
K. If any project under this contract involves the construction or rehabilitation of 12 or
more HOME-assisted units, the DEVELOPER shall comply with the provisions of the
Davis-Bacon Act(40 U.S.C. 276 a to a - 7) as supplemented by AGENCY of Labor
regulations (29 CFR, Part 5),as amended.
L. If the property is sold through a lease-purchase contract, the DEVELOPER will ensure
compliance with 92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B.
M. DEVELOPER will be monitored by the AGENCY for compliance with the regulations
of24 CFR 92 for the compliance period specified above. The DEVELOPER will provide
reports andaccess to project files as requested by the AGENCY during the PROJECT
and for Five (5) yearsafter completion and closeout of the CONTRACT.
Section VI — Repayment of Loan
A. All HOME funds are subject to repayment in the event the PROJECT does not meet
the Project._. as outlined above.
B. It is understood that upon the completion of the PROJECT, any HOME funds reserved
but notexpended under this contract will revert to the CITY.
C. If the PROJECT is for owner-occupancy, the DEVELOPER shall lend the HOME
funds to the individual buyers in an amount sufficient to make the purchase affordable.
Any HOME funds that reduce the price of the property below the fair market value of the
property shall be secured by a HOME note and mortgage as required in 92.254(a)(5)(ii),
using the note and mortgage prescribed or approved by the AGENCY (and consistent
with the method of recapture identified in the CITY's "Consolidated Plan"). All net sales
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proceeds from the sale of units are considered to be CDHO proceeds that may be
retained by the DEVELOPER and used in conformance with 24 CFR 92.300(a)(2), to be
retained by the CDHO and used to further affordable housing for qualified first-time home
buyers within the City of Yakima.
Section VII — CHDO Provisions
It is understood that the DEVELOPER has certified that it is and will maintain CHDO
(Community Housing Development Organization) status for the term of the
PROJECT/CONTRACT in accordancewith 24 CFR 92. The DEVELOPER agrees to
provide information as may be requested by the AGENCY to document its continued
compliance, including but not limited to an annual board roster and certification of
continued compliance. Any funds advanced as CHDO pre-development funds must be
in compliance with 92.301, and are forgivable only under the terms in 92.301.
Any funds advanced to the CH DO as CH DO Operating Expenses must be expended in
compliancewith 24 CFR 92.208.Any funds that the CH DO is permitted to retain as CH DO
proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2) or as
specified in this Contract. If the project is rental, the DEVELOPER will create and follow
a tenant participation plan as required in 24 CFR 92.303.
Section VIII — Procurement Standards
The DEVELOPER shall establish procurement procedures to ensure that materials and
services are obtained in a cost-effective manner. When procuring for services to be
provided under this contract,the DEVELOPER shall comply at a minimum with the
nonprofit procurement standards at 24 CFR 84.40 - .48.
In addition, the following requirements are imposed on any procurement under this
PROJ ECT:
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 Developer 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.
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5. If the Developer 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 Developer. 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 Developer 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
Developer, 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 Developer 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 Developer 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 Developer 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.
In addition, it is understood that any DEVELOPER that can be considered to be a
religious organization shallabide by all portions of 24 CFR 92.257.
Section IX—Conflict of Interest Provisions
The DEVELOPER warrants and covenants that it presently has no interest and shall not
acquire anyinterest, directly or indirectly, which could conflict in any manner or degree
with the performanceof its services hereunder. The DEVELOPER further warrants and
covenants that in the performanceof this contract, no person having such interest shall
be employed. HOME conflict of interest provisions, as stated in 92.356, apply to the
award of any contracts under the contract and the selection of tenant households to
occupy HOME-assisted units. No employee, agent, consultant, elected official, or
appointed official of the DEVELOPER may obtain a financial interest or unit benefits from
a HOME-assisted activity, either for themselves or those with whom they have family or
business ties, during their tenure or for one year thereafter. This prohibition includes the
following:
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• Any interest in any contract, subcontract or agreement with respect to a HOME-
assisted project or program administered by the DEVELOPER, or the proceeds
thereunder; or
• Any unit benefits or financial assistance associated with HOME projects or
programs administered by the DEVELOPER, including:
Occupancy of a rental housing unit in a HOME-assisted rental project;
Receipt of HOME tenant-based rental assistance;
Purchase or occupancy of a homebuyer unit in a HOME-assisted project;
Receipt of HOME homebuyer acquisition assistance; or
Receipt of HOME owner-occupied rehabilitation assistance.
This prohibition does not apply to an employee or agent of the DEVELOPER who
occupies a HOME assisted unit as the on-site project manager or maintenance worker.
In addition, no member of Congress of the United States, official or employee of HUD,
or official or employee of the Participating Jurisdiction shall be permitted to receive or
share any financial or unit benefits arising from the HOME-assisted project or program.
Prior to the implementation of the HOME-assisted activity, exceptions to these provisions
may be requested by the DEVELOPER in writing to the Participating Jurisdiction. The
DEVELOPER must demonstrate and certify that the policies and procedures adopted for
the activity will ensure fair treatment of all parties, and that the covered persons
referenced in this policy will have no inside information or undue influence regarding the
award of contracts or benefits of the HOME assistance. The Jurisdiction may grant
exceptions or forward the requests to HUD as permitted by24 CFR 92.356, 85.36 and
84.42, as they apply.
Section X— City Responsibilities
CITY shall furnish the DEVELOPER with the following services and information from
existing CITY records and CITY files:
A. CITY shall provide to the DEVELOPER information regarding its requirements for the
PROJ ECT.
B. CITY will provide the DEVELOPER with any changes in HOME regulations or program
limitsthat affect the project, including but not limited to income limits, property value limits
and rent limits.
C. CITY will conduct progress inspections of work completed to protect its interests as
lender and regulatory authority for the project, and will provide information to the
DEVELOPER regarding any progress inspections or monitoring to assist it in ensuring
compliance. CITY's review and approval of the WORK will relate only to overall
compliance with the general requirements of this Contract and HOME regulations, and
all CITY regulations and ordinances. Nothing contained herein shall relieve the
DEVELOPER of any responsibility as provided under this Contract.
Section XI — Equal Employment Opportunity
During the performance of this contract, the DEVELOPER agrees as follows:
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A. DEVELOPER will not discriminate against any employee or applicant for employment
because of race, color, religion, sex, or national origin(s). The DEVELOPER will take
affirmative action to ensure the applicants are employed, and that employees are treated
during employment, without regard to their race, color, religion, sex or national origin(s).
Such action shall include, but not be limited to, the following: employment, upgrading,
demotion, or transfer, recruitment or recruitment advertising; layoff or termination; rates
of pay or other forms of compensation; and selection for training, including
apprenticeship. The DEVELOPER agrees to post in conspicuous places, available to
employees and applicants for employment, notices to be provided by the contracting
officer of the CITY setting forth the provisions of this nondiscrimination clause.
B. DEVELOPER will, in all solicitations or advertisements for employees placed by or on
behalfof the DEVELOPER, state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, sex, or national origin.
C. DEVELOPER will send to each labor union or representative of workers with which
he has acollective bargaining agreement or other contract or understanding, a notice to
be provided by the CITY's contracting officer, advising the labor union or worker's
representative of the DEVELOPER's commitments under Section 202 of Executive
Order No. 11246 of September 24, 1965, and shall post copies of the notice in
conspicuous places available to employees and applicants for employment.
D. DEVELOPER will comply with all provisions of Executive Order 11246 of September
24,1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
E. DEVELOPER will furnish all information and reports required by Executive Order
11246 of September 24, 1965, and by the rules, regulations, and orders of the Secretary
of Labor, or pursuant thereto, and will permit access to its books, records, and accounts
by the AGENCY and the Secretary of Labor for purposes of investigation to ascertain
compliance with such rules, regulations, and order.
F. In the event the DEVELOPER is found to be in noncompliance with the
nondiscrimination clausesof this contract or with any of such rules, regulations or orders,
this contract may be canceled, terminated or suspended in whole or in part and the
DEVELOPER may be declared ineligible for further Government contracts in accordance
with procedures authorized in Executive Order 11246 of September 24, 1965, and such
other sanctions may be imposed and remedies invoked as provided in Executive Order
11246 of September 24, 1965 or by rule, regulations, or order of the Secretary of Labor
or as otherwise provided by law.
G. DEVELOPER will include the provisions of paragraphs (a) through (g) of this contract
in every subcontract or purchase order unless exempted by rules, regulations, or orders
of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of
September 24, 1965, so that such provisions will be binding upon each subcontractor or
vendor. The DEVELOPER will take such action with respect to any subcontract or
purchase order as the AGENCY may direct as a means of enforcing such provisions,
including sanctions for noncompliance; provided, however, that in the event the
DEVELOPER becomes involved in, or is threatened with litigation with a subcontractor
or vendor as a result of such direction by the AGENCY, the DEVELOPER may request
the United States to enter into such litigation to protect the interest of the United States.
Section XII — Labor, Training & Business Opportunity
DEVELOPER agrees to comply with the federal regulations governing training,
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employment andbusiness opportunities as follows:
A. It is agreed that the WORK to be performed under this contract is on a project assisted
undera program providing direct Federal financial assistance from the US Department of
Housing and Urban Development and is subject to the requirements of Section 3 of the
Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, as well
as any and all applicable amendments thereto. Section 3 requires that, to the greatest
extent feasible, opportunities for training and employment be given low- and moderate-
income residents of the project area, and that contracts for work in connection with the
project be awarded to business concerns which are located in, or owned in substantial
part by persons residing in the project area.
B. DEVELOPER shall comply with the provisions of said Section 3 and the regulations
issuedpursuant thereto by the Secretary of Housing and Urban Development set forth in
24 Code of Federal Regulations and all applicable rules and orders of the AGENCY of
Housing and Urban Development issued thereunder as well as any and all applicable
amendments thereto prior to the execution of this contract as well as during the term of
this contract. The DEVELOPER certifies and agrees that it is under no contractual or
other disability, which would prevent it from complying with these requirements as well
as any and all applicable amendments thereto.
C. DEVELOPER will include this Section 3 clause in every subcontract for work in
connection with the project and will, at the direction of the CITY, take appropriate action
pursuant to the subcontractor upon a finding that the subcontractor is in violation of
regulations issued by the Secretary of Housing and Urban Development, in 24 Code of
Federal Regulations. The DEVELOPER will not subcontract with any subcontractor
where it has notice or knowledge that the latter has been found in violation of regulations
under 24 code of Federal Regulations and will not let any subcontract unless the
subcontractor has first provided it with a preliminary statement of ability to comply with
these requirements as well as with any and all applicable amendments thereto.
D. Compliance with the provisions of Section 3, the regulations set forth in 24 Code of
Federal Regulations and all applicable rules and orders of the AGENCY of Housing and
Urban Development issued thereunder prior to the execution of the contract shall be a
condition precedent to federal financial assistance being provided to the PROJECT as
well as a continuing condition, binding upon the applicant or recipient for such assistance,
its successors, and assigns. Failure to fulfill these requirements shall subject the
DEVELOPER or recipient, its contractors and subcontractors, its successors, and
assigns to those sanctions specified by 24 Code of Federal Regulations as well as with
any and all applicable amendments thereto.
Section XIII —Compliance with Federal, State & Local Laws
A. GENERAL. The DEVELOPER covenants and warrants that it will comply with
all applicable laws, ordinances, codes, rules and regulations of the state local and federal
governments, and all amendments thereto, including, but not limited to; Title 8 of the Civil
Rights Act of 1968 PL.90-284; Executive Order 11063 on Equal Opportunity and Housing
Section 3 of the Housing and Urban Development Act of 968; Housing and Community
Development Act of 1974, as well as all requirements set forth in 24 CFR 92 of the HOME
INVESTMENT PARTNERSHIP PROGRAM. The DEVELOPER covenants and warrants
that it will indemnify and hold the City forever free and harmless with respect to any and
all damages whether directly or indirectly arising out of the provisions and maintenance
of this contract. DEVELOPER agrees to comply with all applicable standards, orders, or
requirements issued under section 306 of the Clean Air Act (42 U.S.C. 1857(h)), section
508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental
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Protection Agency regulations (40 CFR part 15). DEVELOPER further warrants and
agrees to include or cause to be included the criteria and requirements of this section in
every non-exempt subcontract in excess of$100,000. DEVELOPER also agrees to take
such action as the federal, state or local government may direct to enforce aforesaid
provisions.
B. PROCUREMENT AND CONSTRUCTION OR REPAIR PROJECT
REQUIREMENTS.
The following federal provisions may apply, among others, to this Contract:
1. CERTIFICATION REGARDING DEBARMENT, SUSPENSION OR
INELIGIBILITY AND VOLUNTARY EXCLUSION—PRIMARY AND LOWER
TIER COVERED TRANSACTIONS
(a) DEVELOPER, defined as the primary participant and its principals,
certifies by signing these General Terms and Conditions that to
the best of its knowledge and belief that they:
(b) Are not presently debarred, suspended, proposed for debarment,
declared ineligible, or voluntarily excluded from covered
transactions by any Federal department or agency.
(c) Have not within a three-year period preceding this Contract, been
convicted of or had a civil judgment rendered against them for
commission of fraud or a criminal offense in connection with
obtaining, attempting to obtain, or performing a public or private
contract or transaction, violation of Federal or State antitrust
statutes or commission of embezzlement, theft, forgery, bribery,
falsification or destruction of records, making false statements,
tax evasion, receiving stolen property, making false claims, or
obstruction of justice;
(d) Are not presently indicted for or otherwise criminally or civilly
charged by a governmental entity (Federal, State, or local) with
commission of any of the offenses enumerated in paragraph
(1)(b) of this section; and
(i) Have not within a three-year period preceding the signing
of this Contract had one or more public transactions (Federal,
State, or local) terminated for cause of default.
(ii) Where the DEVELOPER is unable to certify to any of the
statements in this Contract, the DEVELOPER shall attach an
explanation to this Contract.
(iii) The DEVELOPER agrees by signing this Contract that it
shall not knowingly enter into any lower tier covered transaction
with a person who is debarred, suspended, declared ineligible, or
voluntarily excluded from participation in this covered transaction.
(iv) The DEVELOPER further agrees by signing this Contract
that it will include the clause titled "Certification Regarding
Debarment, Suspension, Ineligibility and Voluntary Exclusion-
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Lower Tier Covered Transaction," as follows, without
modification, in all lower tier covered transactions and in all
solicitations for lower tier covered transactions:
(e) LOWER TIER COVERED TRANSACTIONS
(i) Each lower tier contractor certifies, by signing this Contract
that neither it nor its principals is presently debarred, suspended,
proposed for debarment, declared ineligible, or voluntarily
excluded from participation in this transaction by any Federal
department or agency.
(ii) Where the lower tier contractor is unable to certify to any
of the statements in this Contract, such contractor shall attach an
explanation to this Contract.
2. 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).
3. 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.
4. 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).
5. Architectural Barriers Act of 1968 as amended, 42 USC Section 4151 et
seq., implementing regulations, and Chapter 70.92 RCW.
6. Accessibility Standard as set forth in 92.251(a)(3).
7. 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.
8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC
Section 1701 u) and 24 CFR Part 135 (Employment opportunities for project area
businesses and low-income persons).
9. Contract Work Hours and Safety Standards Act, 40 USC Sections 327-333,
(Overtime Compensation).
10. Davis-Bacon Act, as amended, 40 USC Sections 276a — 276a — 5, and
RCW Chapter 3— 12 (Prevailing Wage Rates).
11. 2 CFR Part 200 (Procurement Standards) and Federal Management
Circular, FMC 74-4.
12. The Uniform Relocation Assistance and Real Property Acquisition
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Policies Act of 1970, as amended, and regulations contained in 24 CFR Parts 42
and 570.
13. 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 Contract, and Developer 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 Developer, the County, and the United States are beneficiaries of and entitled
to enforce such covenant. The Developer, 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.
14. Age Discrimination Act of 1975 (24 CFR 146).
15. Fair Housing Act (24 CFR 100, CFR 107 and 24 CFR 1).
16. Washington State/Local Building Codes/Housing Quality Standards (24
CFR 882.109).
17. WBE/MBE (24 CFR 85.36 (e)).
Section XIV—Suspension & Termination
In accordance with 24 CFR 85.43, suspension or termination may occur if the
DEVELOPER materiallyfails to comply with any term of the award, and that the award
may be terminated for convenience in accordance with 24 CFR 85.44.
If, through any cause, the DEVELOPER shall fail to fulfill in timely and proper manner its
obligationsunder this contract, or if the DEVELOPER shall violate any of the covenants,
agreements, or stipulationsof this contract, the CITY shall thereupon have the right to
terminate this contract by giving written notice to the DEVELOPER of such termination
and specifying the effective date thereof, at least five (5) days before the effective date
of such termination. In such event, the DEVELOPER shall be entitled to receive just and
equitable compensation for any work satisfactorily completed hereunder to the date of
said termination. Notwithstanding the above, the DEVELOPER shall not be relieved of
liability to the CITY for damages sustained by the CITY by virtue of any breach of the
contract by the DEVELOPER and the CITY may withhold any payments to the
DEVELOPER for the purpose of setoff until such time as the exact amount of damages
due the CITY from the DEVELOPER is determined whether by court of competent
jurisdiction or otherwise.
Section XV— Termination for Convenience of the CITY
The CITY may terminate for its convenience this contract at any time by giving at least
thirty (30) days notice in writing to the DEVELOPER. If the contract is terminated by the
CITY, as provided herein, the City will reimburse for any actual and approved expenses
incurred, including those costs involved in terminating the contracts and shutting down
the work as of the date of notice, and the DEVELOPER will be paid as a FEE an amount
which bears the same ratio to the total compensation as the services actually performed
bear to the total service of the DEVELOPER covered by this contract, less payments of
compensation previously made. Claims and disputes between the parties will be
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submitted to the American Arbitration Association for resolution. Award or judgment may
be entered in any court having jurisdiction thereof.
Section XVI — Default-Loss of Grant Funds
If the DEVELOPER fails in any manner to fully perform and carry out any of the terms,
covenants,and conditions of the contract, and more particularly if the DEVELOPER
refuses or fails to proceedwith the work with such diligence as will insure its completion
within the time fixed by the schedule set forth in Exhibit B of this contract, the
DEVELOPER shall be in default and notice in writing shall be given to the DEVELOPER
of such default by the AGENCY or an agent of the AGENCY. If the DEVELOPER fails to
cure such default within such time as may be required by such notice, the CITY, acting
by and through the AGENCY, may at its option terminate and cancel the contract. In the
event of such termination, all grant funds awarded to the DEVELOPER pursuant to this
contract shall be immediately revoked and any approvals related to the PROJECT shall
immediately be deemed revoked and canceled. In such event, the DEVELOPER will no
longer be entitled to receive any compensation for work undertaken after the date of the
termination of this contract, as the grant funds will no longer be available for this project.
Such termination shall not effect or terminate any of the rights of the CITY as against the
DEVELOPER then existing, or which may thereafter accrue because of such default, and
the foregoing provision shall be in addition to all other rights and remedies available to
the CITY under the law and the note and mortgage (if in effect), including but not limited
to compelling the DEVELOPER to complete the project in accordance with the terms of
this contract, in a court of equity. The waiver of a breach of any term, covenant or
condition hereof shall not operate as a waiver of any subsequent breach of the same or
any other term, covenant, or condition hereof.
Section XVII — Reporting Responsibilities
DEVELOPER agrees to submit any and all quarterly reports required by HUD or the CITY
to theAGENCY on the following due dates: October 1, January 1, April 1, and July 1,
next following thedate of this contract. The AGENCY will send the DEVELOPER one
reminder notice if the quarterly report has not been received fourteen (14) days after the
due date. If the DEVELOPER has not submitted a report fourteen (14) days after the
date on the reminder notice, the CITY will have the option to terminate the contract as
described in this contract. In addition, the DEVELOPER agrees to provide the AGENCY
information as required to determine program eligibility, in meeting national objectives,
and financial records pertinent to the project. Additional reporting requirements are
included in Exhibit B.
Section XVIII — Inspection, Monitoring & Access to Records
CITY reserves the right to inspect, monitors, and observe work and services performed
by theDEVELOPER at any and all reasonable times. CITY reserves the right to audit the
records of the DEVELOPER any time during the performance of this Contract and for a
period of five years after final payment is made under this Contract. If required, the
DEVELOPER will provide the AGENCY with a certified audit of the DEVELOPER's
records representing the Fiscal Year during which the PROJECT becomes complete
whenever the amount listed in SECTION VII is at or exceeds $300,000, pursuant to the
requirements of OMB Circular A-133. Access shall be immediately granted to the CITY,
HUD, the Comptroller General of the United States, or any of their duly authorized
representatives to any books, documents, papers, and records of the DEVELOPER or
its contractors which are directly pertinent to that specific contract for the purpose of
making audit, examination, excerpts, and transcriptions.
Section XIX—General Conditions
A. All notices or other communication which shall or may be given pursuant to this
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Contractshall be in writing and shall be delivered by personal service, or by registered
mail addressed tothe other party at the address indicated herein or as the same may be
changed from time to time. Such notice shall be deemed given on the day on which
personally served; or, if by mail, on the fifth day after being posted or the date of actual
receipt, whichever is earlier.
City address: City Manager
Yakima City Hall
129 North 2' Street
Yakima, Washington 98901
Copy To: Office of Neighborhood Development Services
City of Yakima
112 South 8'h Street
Yakima, Washington 98901
DEVELOPER address: Yakima Valley Partners Habitat for Humanity
21 W. Mead Ave. Ste # 110
Yakima, Washington 98902
B. Title and paragraph headings are for convenient reference and are not a part of this
Contract.
C. In the event of conflict between the terms of this Contract and any terms or conditions
contained in any attached documents, the terms in this Contract shall rule.
D. No waiver or breach of any provision of this Contract shall constitute a waiver of a
subsequentbreach of the same or any other provision hereof, and no waiver shall be
effective unless made in writing.
E. The parties hereto agree that this Contract shall be construed and enforced according
to thelaws of the State of Washington.
F. Should any provisions, paragraphs, sentences, words or phrases contained in this
Contract be determined by a court of competent jurisdiction to be invalid, illegal or
otherwise unenforceableunder the laws of the State of Washingtonor the City of Yakima,
such provisions, paragraphs, sentences, words or phrases shall be deemed modified to
the extent necessary in order to conform with such laws, or if not modifiable to conform
with such laws, then same shall be deemed severable, and in either event,the remaining
terms and provisions of this Contract shall remain unmodified and in full force and effect.
G. DEVELOPER shall comply with the provisions of the Copeland Anti-Kick-Back Act(18
U.S.C. 874) as supplemented in the AGENCY of Labor Regulations (29 CFR Part 3), as
amended.
H. DEVELOPER shall comply with the provisions of sections 103 and 107 of the Contract
WorkHours and Safety Standard Act (40 U.S.C. 327-330) as supplemented by AGENCY
of Labor regulations (29 CFR, Part 5), as amended.
I. DEVELOPER further warrants and agrees to include or cause to be included the criteria
and requirements of paragraphs (G) through (H) of this section in every nonexempt
subcontract. The DEVELOPER also agrees to take such action as the federal, state or
local government may directto enforce aforesaid provisions.
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J. The obligations undertaken by DEVELOPER pursuant to this Contract shall not be
delegated orassigned to any other person or agency unless CITY shall first consent to
the performance orassignment of such service or any part thereof by another person or
agency.
K. This Contract shall be binding upon the parties hereto, their heirs, executors, legal
representative, successors and assigns.
L. DEVELOPER shall indemnify and save CITY harmless from and against any negligent
claims,liabilities, losses and causes of action which may arise out of DEVELOPER's
activities under thisContract, including all other acts or omissions to act on the part of
DEVELOPER, including anyperson acting for or on its behalf, and, from and against any
orders, judgments, or decrees which may be entered, and from and against all costs,
attorneys fees, expenses and liabilities incurred in the defense of any such claims, or in
the investigation thereof.
M. DEVELOPER and its employees and agents shall be deemed to be independent
contractors, andnot agents or employees of the CITY, and shall not attain any rights or
benefits under the civil service or pension ordinances of the CITY, or any rights generally
afforded classified or unclassified employee; further they shall not be deemed entitled to
state Compensation benefits as an employee of the CITY.
N. Funding for this Contract is contingent on the availability of funds and continued
authorization for program activities and is subject to amendment or termination due to
lack offunds, or authorization, reduction of funds, and/or change in regulations.
Exhibit "B"
Yakima Valley Partners Habitat for Humanity
A.) PROPOSAL SUMMARY/PROJECT ABSTRACT
Yakima Valley Partners Habitat for Humanity will construct a single-family home
located at 1013 Pleasant Ave and sell it to a qualified low income, first time
homebuyer and monitor the "Affordability Period"for a period of no less than twenty
(20) years, after which all net proceeds shall be granted to Habitat.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
Yakima Valley Partners Habitat for Humanity will provide the construction of a
single-family dwelling to be sold to a qualified low to moderate-income first-time
homebuyer and monitor the project for a period of no less than Twenty (20) year
affordability period in exchange for all net proceeds redeemed from the sale of the
home located at 1013 Pleasant Ave.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create another affordable single-family residence within in the City of Yakima.
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Objectives
1. Prepare site for construction.
2. Construct a new single-family dwelling.
3. Sell the new single-family home to a qualified low to moderate first-time
homebuyer.
D.) METHODOLOGY
From the contract execution date to continue until the termination date as specified
within this contract, Yakima Valley Partners Habitat for Humanity will construct a
new single-family dwelling to be sold to a qualified low to moderate first time
homebuyer to be monitored for a Twenty (20) year affordability period per HUD
regulations governing HOME Investment funded projects.
E.) OUTCOMES & EVALUATION
As a condition of reimbursement, Habitat for Humanity will,
1. Prepare the site for construction.
2. Construct a new Single-family dwelling.
3. Sell the property and dwelling to a qualified low to moderate-income first-time
homebuyer.
4. Monitor the property at 1013 Pleasant Ave for a period of no less than a Twenty
(20) year affordability period as per HOME Investment requirements.
F.) BUDGET
Yakima Valley Partners Habitat for Humanity will be reimbursed up to $37,068
between the contract execution date and end upon completion of construction, for
eligible activities, subject to the terms and conditions of the Contract.
Exhibit "C"
(THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION")
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Exhibit "D"
Is the attached proposal as submitted to the City of Yakima on August 5, 2019
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