HomeMy WebLinkAboutR-2022-127 Resolution authorizing a contract with Yakima Housing Authority, in the amount of $300,000 of HOME Investment funds for acquisition reimbursement for the construction of a 54-unit low income affordable housing project located at 1116 FruitvaleRESOLUTION NO. R-2022-127
A RESOLUTION authorizing an agreement with Yakima Housing Authority in the
amount of up to Three Hundred Thousand dollars ($300,000) in
Federal Housing and Urban Development HOME funds for
acquisition reimbursement for construction of 54 low-income
housing units.
WHEREAS, the city received money from the federal government's HOME
funding program under CFDA Contract # 14.239 in the amount of $300,000 which
must be used to invest in affordable housing in the City of Yakima; and
WHEREAS, Yakima Housing Authority owns, operates and manages
numerous low to moderate income housing units within the City of Yakima, including
a series of multi -family housing units for low to moderate income persons and families;
and
WHEREAS, Yakima Housing Authority wishes to construct Fruitvale Housing,
a development consisting of 54 low income units for low income persons and seeks
funding for land acquisition, which is an eligible activity under the HOME program, and
WHEREAS, the City has available HOME funds to assist Yakima Housing
Authority to acquire the land for Fruitvale Housing, and
WHEREAS, pursuant to federal requirements, 2 of those units will be
monitored for HUD HOME Investment affordability beginning at the time of completion
as outlined in the contract, through a period of not less than twenty (20) years, and
WHEREAS, The City Council of the City of Yakima finds that it is in the best
interests of the City and its residents to enter into an agreement with Yakima Housing
Authority to provide funding for land acquisition for development of 54 units of low
income housing with federal monies provide 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 Housing
Authority in the amount of Three Hundred Thousand Dollars ($300,000) in Federal
Housing and Urban Development HOME Investment funds for land acquisition for
development of 54 units of affordable housing for low income persons and families,
two of which will be monitored for twenty years under the affordability requirements of
HUD HOME program requirements. A copy of the agreement is attached hereto and
incorporated herein.
ADOPTED BY THE CITY COUNCIL this 20th d- of September, 20 2
ATTEST: Janice Deccio, ayor
Sonya CIa
City Clerk
(7
CONTRACT BETWEEN THE CITY OF' YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND DEVELOPER - THE HOUSING AUTHORITY OF THE CITY OF' YAKIMA
CONTRACT NUMBER: 20 - Roc-
1. CF A: 14.239 HOME INVESTMENT PARTNERSHIP PROGRAM
2 DEVELOPER/AWARDEE: The Housing Authority of the C4 of Yakima
3. HUD Entity Type: DEVELOPER
4. Address: 810 N. 6`1' Avenue, Yakima, WA 98902 / P.O. Box 1447, Yakima, WA 98907
5. Phone: (509) 453-3106
6., Contact Person: Lowel Krueger, Executive Director, The Housing Authority of the City of
Yakima
Title of Service or Program being funded: YHA Fruitvale Housing
Awarding Federal Agency: U.S. Department of Housing and Urban Development
Unique Entity Identifier Number: MZMVAIYO6MS6
10. Federal Award Year and Federal Award Number: 2022
1 1 . Amount of Contract Award: $300,000
12. The term of this Contract shall commence upon the execution date of DEVELOPERS' receipt of
"Letter to Proceed" from City of Yakima Office of Neighborhood Development Services and the
project will begin construction within twelve months of entering this Contract and will be
completed by December 31, 2024 at midnight, unless sooner terminated by either party in
accordance with Section XXII of Exhibit "A", attached hereto and incorporated herein by this
reference. This Contract will be in effect throughout the affordability period established in
Exhibit "A".
13. 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-2022I a copy of which is
attached hereto as Exhibit "C" and incorporated herein by this reference.
14, 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", Exhibit "C" and Exhibit "D".
This written document, together with all of the incorporated Exhibits hereto, constitutes the entire
Contract and terms of Contract 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 Y
Robert Harrison, City Manager
City of Yakima
Joan D nport, Community tve1opment Director
Date:
ATTEST
Sonya Claar , City Clerk
City Contract No: '(.) a- t1S
DEVELOPER/AW
,
EE:
Lowe! Krueg r, xecutive oir tor
The Housing Authority of the City of Yakima
2 of 25 City of Yakima
EXHIBIT "A"
TERMS AND CONDITIONS
The City of Yakima, as a recipient of a housing and community development grant from the U.S.
Department of Housing and Urban Development (HUD), hereby designates AWARDEE/DEVELOPER
to undertake, and the AWARDEE/DEVELOPER hereby agrees to undertake, that certain community
development or housing assistance project described in Exhibit "B", Scope of Work (hereinafter
sometimes referred to as "the Project").
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 DEVELOPER agrees
to accept as payment in full for all the professional, technical and construction servicesrendered 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 herein and in the SCOPE OF WORK.
D. PROJECT — is defined in Section II below and Exhibit B attached hereto and fully incorporated
herein.
E. HOME — is hereby defined as the HOME Investment Partnerships Program as described in 24 CFR
Part 92, under the authority of 42 U.S.C. 3535 (d) and 12701 - 12839.
F. DEVELOPER — is hereby defined as the AWARDEE/DEVELOPER listed on page 1 of this
Contract, the Housing Authority of the City of Yakima
Section II — Project
DEVELOPER's Project will develop 54 affordable housing units which will assist low-income
households at or below 60% of the area median income in the City limits of Yakima. Twenty-seven (27)
units will be set aside for homeless families or individuals, and twenty-seven (27) units will be targeted to
low-income families. More Project information is found in Exhibit B attached hereto. HOME funds shall
be used for the acquisition reimbursement of the property located at: 1116 Fruitvale Blvd., Yakima, WA
98902 for the development of the residential units of the Project.
Section III — Term
A. GENERAL
The DEVELOPER expressly agrees to complete all work required by this Contract in accordancewith the
timetable set forth.
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Milestone Deadlines
Project Start Date: Date of sigtttute
Anticipated Construction Start Date: November 30. 2022
Project Completion Date: December 31, 2024
Duration of Agreement: Through the end ()Idle Affordability Pi
Outlined (see Section B herein)
Tile Amount of th Grant that the City h
Thousand Dollars ($300,000.00) for the Project.
B. AFFORDABILITY
DEVELOPER is Three dred
The project is subject to an affordability compliance period of Twenty (20) years from the date the project
is completed. The project is considered complete or completed thirty days after the following have been
completed, as determined by the City:
1. A Certificate of Occupancy has been submitted to the City;
2. A final inspection has been done by the City's Office of Neighborhood Development
Services or its designee;
3. All required tenant information for the HOME affordable units is submitted to the City;
4. All units, including non -HOME affordable units, are leased;
5. Final reimbursement is submitted and approved; and
6. Final draw and all accomplishment data has been entered into the HUD IDIS system and the
activity is completed.
The project should be considered complete no later than February 29, 2025. The DEVELOPER will
assure continued compliance with HOME 92.504(c)(3)(vi), 92.504(d), requirements. For rental projects
this includes ongoing property standards inspections and occupancy requirements; rent limits established
by HUD; and income determinations annually reviewed by the City. For homebuyer units this includes
monitoring units for principal residency and recapture of funds at time of resale. HOME 92.504(c)(3)(ii)
specifies that a deed restriction will also be in place throughout the affordability period.
The DEVELOPER is undertaking a rental project. This affordable housing unit project will operate as
low-income housing restricted to qualified families or individuals at or below 80% of the area median
income. Initial rents will be at or below 80% of the HUD HOME established High/Low HOME rents
established.
2022 OBR
Low HOME 691
Rent Limit
High
HOME Rent
Limit
1BR
740
2BR 3BR 4BR 5BR 6BR
772
798
888 1026 1145 1263 1380
1050 1300 1431 1561 1690
Pursuant to the Affordability Covenant, DEVELOPER shall dedicate two (2) floating units at the
development to use by tenants whose gross household income does not exceed eighty percent (80%) of
the Area Median Income at the time the tenant(s) initially occupies the unit and will certify annually that
the tenant(s) continue to meet this income requirement.
The procedures for rent increases shall follow the Washington State Landlord -Tenant Act requirements
outlined in RCW 59.18 et.seq, and as amended in the future. State law currently requires a minimum of
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Sixty (60) days' notice to change any term of a rental contract, including the amount due and owing for
rent and any increase in the amount of rent may not become effective prior to the completion of the term
of the rental agreement; or, in the case of a subsidized tenancy where the amount of rent is based on the
income of the tenant or circumstances specific to the subsidized household, a landlord shall provide a
minimum of thirty (30) days' prior written notice of an increase in the amount of rent which will become
effective upon completion of the term of the rental agreement or sooner upon mutual consent RCW
59.18.140.
C. TIME IS OF THE ESSENCE
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 other
governmental 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.
D. COMMENCEMENT OF WORK
The City of Yakima, through ONDS, shall furnish the DEVELOPER with written notice to proceed upon
release of funds from HUD related to the Project pursuant to 24 CFR Part 58. No work on the Project
shall occur prior to the notice to proceed without written approval from the City of Yakima.
Section IV — Scope of Work
The DEVELOPER, in close coordination with the CITY, shall perform all professional services and
activities (the "WORK") necessary to complete the development and occupancy of the following project
in full compliance with the terms of this Contract, including, but not limited to, Exhibit "B" (Use of
HOME funds, property location, budget, completion schedule & compliance term):
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From the contract execution date to continue until the termination date as
specified within this contract, Yakima Housing Authority will construct fifty-
four units to provide low-income housing. Twenty-seven units will be set aside
for homeless families or individuals, and twenty-seven units will be rented to
qualified low-income tenants below 60% AMI. Two (2) of these units will be
HOME floating units that 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 allowable
costs/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. No payment will be made by the City
prior to receiving the working budget. The aforementioned Work tasks will be performed in essentially
the manner proposed in the DEVELOPER's proposal as received by the AGENCY on January 25, 2022.
The aforementioned document will be considered to be a part and portion of this Contract fully
incorporated herein Exhibit "D".
Section V — Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses (excluding developer fee) shall be paid based on vouchers for actual expenses
incurred or paid. Requests for payment must be submitted by the DEVELOPER on forms
specified by the CITY, with adequate and proper documentation of eligible costs incurred in
compliance with 24 CFR 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 Contractor and reviewed by the City. The Contractor 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:
L 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
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
6 of 25 City of Yakima
limited to the amount needed.
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.
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 unit 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.
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
ONDS prior to the submittal of claims against the budget.
E. CITY reserves the right to inspect records and project sites to determine that reimbursement and
compensation requests are reasonable. The CITY also reserves the right to hold payment until
adequate documentation has been provided and reviewed.
Within thirty (30) days of the contract closing date, DEVELOPER shall submit a final invoice
that includes all unpaid invoices and a final report. Final payment shall be made only after the
CITY has determined that all services have been rendered, files and documentation delivered
(including the final invoices and final report), and units 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. If the
final invoices and report are not received within thirty (30) days of the contract closing date,
DEVELOPER understands and agrees that it will not receive any payment for any final pending
unpaid invoices. The City will retain ten percent (10%) until City has determined that all services
have been rendered.
CITY shall have the right to review and audit all records of the DEVELOPER pertaining to any
payment by the CITY. Said records shall be maintained for a period of the HOME required
affordability period.
This grant shall not be utilized to substantially reduce the amount of local financial support for
community development activities below the level of such support prior to the availability of such
assistance.
The DEVELOPER shall return to the City all monies provided by the City if any of the following
occur: the DEVELOPER materially changes the primary purpose and scope of the Project as
described in Exhibit B; or DEVELOPER is unable to continue and/or provide services as
described in Exhibit B.
Section VI — Project Requirements and Compliance with Laws
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. Environmental Review
The City of Yakima, through the AGENCY retains environmental review responsibility for purposes of
7 of 25 City of Yakima
fulfilling requirements of the National Environmental Policy Act, under which the City of Yakima may
require the DEVELOPER to furnish data, information and assistance for the City's review and assessment
in determining whether the City must prepare an Environmental Impact Statement.
The Environmental Review was submitted to the U.S. Department of Housing and Urban Development
(HUD) on May 25, 2022 for review. The Environmental Review was approved by HUD on June 26,
2022. All mitigation required in the Environmental Review shall be completed by DEVELOPER as part
of the Project.
The DEVELOPER retains responsibility for fulfilling the requirements of the State Environmental Policy
Act (SEPA) and regulations and ordinances adopted thereunder.
In addition to the requirements of Section XIII below, in the event DEVELOPER fails to furnish any data,
information, forms, or documents requested by the City to fulfill its obligations under the National
Environmental Policy Act or any other federal or state environmental policy, law, or regulation, Failure to
furnish data, information, forms or documents shall result in a withholding of funds for payment and, if
funds have been disbursed, a requirement to repay all funds associated with this Agreement to the City
and may result in termination of this Agreement. The DEVELOPER expressly agrees to do all things
necessary and take all necessary steps to facilitate the environmental review of the Project.
B. Any HOME funds advanced to the PROJECT will be secured by a note and mortgage or deed of trust,
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 the
requirements 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 units will
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 pertaining to household size, income levels, racial
characteristics, the presence of Female Headed Households, and any other beneficiary information
required by HUD 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 HOME Program.
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 Standards and
Housing Quality Standards (HQS), Accessibility Standards under 24 CFR 92.251(a)(3) asapplicable, and
8 of 25 City of Yakima
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 and access to project
files as requested by the AGENCY during the PROJECT and for the length of the HOME required
affordability period.
Section VII — Repayment
A. All HOME funds are subject to repayment in the event the PROJECT does not meet the Project
Requirements as outlined above, or if DEVELOPER violates any provisions of this Contract with regards
to HOME and/or HUD requirements.
B. It is understood that upon the completion of the PROJECT, any HOME funds reserved but not
expended 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").
For Contracts involving CHDOs, all net sales proceeds from the sale of units are considered to be CHDO
proceeds that may be retained by the DEVELOPER and used in conformance with 24 CFR 92.300(a)(2),
to be retained by the CHDO and used to further affordable housing for qualified first time home buyers
within the City of Yakima.
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 PROJECT:
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
9 of 25 City of Yakima
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 2 CFR Part 200. The
DEVELOPER shall be responsible for all such property, including its care and maintenance, and shall
comply with the following procedural requirements:
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.
A control system shall be in effect to insure adequate safeguards to prevent loss, damage,
or theft to the property. Any loss, damage, or theft of the property shall be investigated
and fully documented.
Adequate maintenance procedures shall be implemented to keep the property in good
condition.
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.
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.
Any nonexpendable personal property furnished to, or purchased by, the DEVELOPER,
title to which is vested in the City of Yakima or federal government shall, unless
otherwise provided herein or approved by the City of Yakima ONDS be used only for the
performance of activities defined in this Contract.
As a condition prerequisite to reimbursement for the purchase of nonexpendable personal
property, title to which shall vest in the City of Yakima or federal government, the
DEVELOPER agrees to execute such security Contracts and other documents as shall be
necessary for the City of Yakima 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.
The DEVELOPER shall be responsible for any loss or damage to the property of the City
of Yakima 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
or federal government in like condition to that in which condition the property was
acquired by purchase, fair wear and tear excepted.
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Section IX — Conflict of Interest Provisions
The DEVELOPER warrants and covenants that it presently has no interest and shall not acquire any
interest, directly or indirectly, which could conflict in any manner or degree with the performance of its
services hereunder. The DEVELOPER further warrants and covenants that in the performance of 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:
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 PROJECT.
B. CITY will provide the DEVELOPER with any changes in HOME regulations or program limits that
will 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
11 of 25 City of Yakima
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
The City of Yakima is an Equal Opportunity Employer. During the performance of this contract, the
DEVELOPER agrees as follows:
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 clauses of
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,
12 of 25 City of Yakima
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, employment andbusiness
opportunities as follows:
A. It is agreed that the WORK to be performed under this Contract is on a project assisted under a
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 issued pursuant
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
13 of 25 City of Yakima
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 1968; 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, defend, and hold
the City, its elected and appointed officials, officers, employees, agents, representatives, insurers,
attorneys, and volunteers forever free and harmless with respect to any and all damages,
liabilities, losses and expenses related to all claims, suits, arbitration actions, investigations, and
regulatory or other governmental proceedings, whether directly or indirectly arising out of the
provisions and maintenance of this Agreement or the acts, failures to act, errors or omissions of
the DEVELOPER, or any of DEVELOPER's agents or subcontractors, in performance of this
Agreement, except for claims caused by the City's sole negligence. The City's right to
indemnification includes attorney's fees and costs associated with establishing the right to
indemnification hereunder in favor of the City. 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 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.
PROCUREMENT AND i ONmmS1 RUC l IC N OR REPAIR PROJECT REQUIRE IRE IEN S.
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:
(i)
Are not presently debarred, suspended, proposed for debarment, declared
ineligible or voluntarily excluded from covered transactions by any Federal
department or agency.
(ii) 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;
(iii) 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
(1) Have not within a three-year period preceding the signing of this
Contract had one or more public transactions (Federal, State, or local)
14 of 25 City of Yakima
terminated for cause of default..
(2) Where the DEVELOPER is unable to certify to any of the
statements in this Contract, the DEVELOPER shall attach an explanation to this
Contract.
(3) 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.
(4) The DEVELOPER further agrees by signing this Contract that it
will include the clause titled "Certification Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion -Lower Tier Covered Transaction," as
follows, without modification, in all lower tier covered transactions and in all
solicitations for lower tier covered transactions:
(b) LOWER TIER COVERED TRANSACTIONS
(i) Each lower tier contractor certifies, by signing this Contract that neither
it nor its principals are 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 24 CFR 92.251(a)(3).
7. Clean Air Act as amended, 42 USC Section 1857 et seq; Water Pollution Control Act, as
amended, 33 USC Section 1251 et seq.; and Environmental Protection Agency regulations, 40
CFR Part 15.
15 of 25 City of Yakima
8. Section 3 of the Housing and Urban Development Act of 1968 (12 USC Section 1701u)
and 24 CFR Part 135 (Employment opportunities for project area businesses and low income
persons).
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 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,
Contractor shall cause or require a covenant running with the land to be inserted in the deed or
lease for such transfer, prohibiting discrimination upon the basis of race, color, religion, sex, or
national origin, in the sale, lease or rental, or in the use or occupancy of such land or any
improvements erected or to be erected thereon, and providing that the Contractor, the County, the
City, and the United States are beneficiaries of and entitled to enforce such covenant. The
Contractor, in undertaking its obligation in carrying out the program assisted hereunder, agrees to
take such measures as are necessary to enforce such covenant and will not itself so discriminate.
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)).
C. DEVELOPER agrees to comply with all applicable Federal, State, City and Municipal standards for
licensing, certification and operation of facilities and programs, and accreditation and licensing of
individuals, and any other standards or criteria as described in the Contract to assure quality of services.
D. DEVELOPER shall be solely responsible for and shall pay all taxes, deductions, and assessments,
including but not limited to, sales tax, federal income tax, FICA, social security tax, assessments for
unemployment and industrial injury insurance, and other deductions from income which may be required
by law or assessed against either party as a result of this Contract. In the event the City is assessed a tax
or assessment as a result of this Contract, DEVELOPER shall pay the same before it becomes due.
Section XIV — Suspension & Termination
In accordance with 24 CFR 85.43, suspension or termination may occur if the DEVELOPER materially
fails 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 obligations
under this contract, or if the DEVELOPER shall violate any of the covenants, agreements, or stipulations
16 of 25 City of Yakima
of 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 may be entitled to receive
just and equitable compensation for any work satisfactorily completed hereunder to the date of said
termination if all necessary documentation is provided to the CITY. 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
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.
This Contract may also be terminated in whole or in part by mutual agreement of the parties.
Section XVI — Termination for Cause Including Loss of Grant Funds
A. TERMINATION FOR CAUSE
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 affect 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.
This Contract may further be terminated by the City upon written demand by the City or AGENCY for
assurances that the terms of the Project description are not being timely complied with, if such assurances
are not made to the City's satisfaction within thirty (30) days of the date of such written demand.
B. TERMINATION FOR LOSS OF FUNDING
In the event that funding from the Federal government is withdrawn, reduced or limited in any way after
the effective date of this Contract, and prior to its normal completion, the City of Yakima or AGENCY
17 of 25 City of Yakima
may summarily terminate this Contract as to the funds reduced or limited, notwithstanding any other
termination provision of this Contract. If the level of funding so reduced or limited is so great that the
City of Yakima or AGENCY deems that the continuation of the program or project covered by this
Contract is no longer in the best interest of the public, the City or AGENCY may summarily terminate
this Contract in whole notwithstanding any other termination provisions of this Contract. Termination
under this Section shall be effective upon receipt of written notice by the DEVELOPER or its
representative.
The City and AGENCY agree to promptly notify the DEVELOPER of any proposed reduction in funding
by Federal or other officials. DEVELOPER agrees that upon receipt of such notice it shall take the
appropriate and reasonable action to reduce its spending in the affected funding area so that expenditures
do not exceed the funding level which would result if said proposed reduction became effective.
Section XVII — Close Out
In the event this Contract is terminated in whole or in part for any reason, the following provisions shall
apply:
A. Upon written request by the DEVELOPER, the City shall make or arrange for payment to the
DEVELOPER of allowable reimbursable costs not covered by previous payments.
B. DEVELOPER shall submit within fifteen (15) days after the date of expiration of this Contract, all
financial, performance and other reports required by this Contract, and in addition, will cooperate in a
program audit by the City or its designee.
C. In the event a financial audit has not been performed prior to close out of this Contract, the City and
AGENCY retain the right to withhold a just and reasonable sum from the final payment to the
DEVELOPER until the final audit is performed, submitted to, and reviewed by the City and AGENCY.
Section XVIII — Reporting Responsibilities
DEVELOPER agrees to submit any and all quarterly reports requested by HUD or the CITY following
the date of this Contract. The CITY will send the DEVELOPER one reminder notice if the requested
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
financialrecords pertinent to the project. Additional reporting requirements are included in Exhibit B.
Section XIX — Inspection, Monitoring & Access to Records
A. CITY reserves the right to inspect, monitor, and observe work and services performed by the
DEVELOPER 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 ten (10) 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 $500,000, pursuant to
the requirements of 2 CFR Part 200. 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.
DEVELOPER records shall include, but not be limited to, the following: payroll, personnel and
employment records, procurement bidding documents, contracts, sales closing statements, and invoices.
18 of 25 City of Yakima
B. DEVELOPER agrees that the City may carry out monitoring and evaluation activities so as to ensure
compliance by DEVELOPER with this Contract, with HOME compliance documents, and with all other
laws, regulations, and ordinances related to the performance hereof. DEVELOPER agrees to provide the
City with any data determined by the City to be necessary for its effective fulfillment of its monitoring
and evaluation responsibilities. Failure to provide such data is a breach of this Contract and may result in
termination of this Contract.
C. Any program income shall be accounted for by the DEVELOPER, over the Contract time period, and
shall be reported to the City. Income is to be used to continue or benefit the program, as determined by
the intent and purpose of the Project.
Section XX — Insurance
A. NO INSURANCE
It is understood that the City does not maintain liability insurance for the DEVELOPER and/or its
employees, agents, officers, and subcontractors.
B. COMMERCIAL LIABILITY INSURANCE
On or before the effective date of this Contract, the DEVELOPER shall provide the City with a
certificate of insurance and endorsement as proof of liability insurance in the amount of Two
Million Dollars ($2,000,000.00) per occurrence, combined single limit bodily injury and property
damage, and Two Million Dollars ($2,000,000.00) general aggregate. If DEVELOPER carries
higher coverage limits, such limits shall be shown on the Certificate of Insurance and
Endorsements and the City, its elected and appointed officials, employees, agents, attorneys and
volunteers shall be named as additional insureds for such higher limits. The certificate shall
clearly state who the provider is, the amount of coverage, the policy number, and when the policy
and provisions provided are in effect (any statement in the certificate to the effect of "this
certificate is issued as a matter of information only and confers no right upon the certificate
holder" shall be deleted). Said policy shall be in effect for the duration of this Contract. The
policy shall name the City of Yakima, its elected and appointed officials, officers, agents,
employees and volunteers as additional insureds, and shall contain a clause that the insurer will
not cancel or change the insurance without first giving the City thirty (30) calendar days prior
written notice. The insurance shall be with an insurance company or companies rated A-VII or
higher in Best's Guide and admitted in the State of Washington. The requirements contained
herein, as well as City of Yakima's review or acceptance of insurance maintained by
DEVELOPER is not intended to and shall not in any manner limit or qualify the liabilities or
obligations assumed by DEVELOPER under this Contract.
C. COMMERCIAL AU°I"OMOBILE LIABILITY INSURANCE
On or before the date this Contract is fully executed by the parties, DEVELOPER shall provide
the City with a certificate of insurance and endorsement as proof of commercial automobile
liability insurance with minimum liability limit of Two Million Dollars ($2,000,000.00) per
occurrence. If DEVELOPER carries higher coverage limits, such limits shall be shown on the
Certificate of Insurance and Endorsements and the City, its elected and appointed officials,
officers, employees, agents, attorneys and volunteers shall be named as additional insureds for
such higher limits. Automobile liability will apply to "Any Auto" and be shown on the
certificate. The certificate shall clearly state who the provider is, the amount of coverage, the
policy number, and when the policy and provisions provided are in effect (any statement in the
certificate to the effect of "this certificate is issued as a matter of information only and confers no
right upon the certificate holder" shall be deleted). Said policy shall be in effect for the duration
of this Contract. The policy shall name the City of Yakima, its elected and appointed officials,
officers, agents, employees and volunteers as additional insureds, and shall contain a clause that
19 of 25 City of Yakima
the insurer will not cancel or change the insurance without first giving the City thirty (30)
calendar days prior written notice. The insurance shall be with an insurance company or
companies rated A-VII or higher in Best's Guide and admitted in the State of Washington. The
requirements contained herein, as well as the City's review or acceptance of insurance maintained
by DEVELOPER is not intended to and shall not in any manner limit or qualify the liabilities or
obligations assumed by DEVELOPER under this Contract. The business auto liability shall
include Hired and Non -Owned coverage if necessary.
WORKERS' COMPENSATION/EMPLOYER'S LIABILITY (Stog_Gap)
The DEVELOPER and all subcontractors shall at all time comply with all applicable workers'
compensation, occupational disease, and occupational health and safety laws, statutes, and
regulations to the full extent applicable, and shall maintain Employer's Liability insurance with a
limit of no less than One Million Dollars ($1,000,000.00). The City shall not be held responsible
in any way for claims filed by DEVELOPER or its employees for services performed under the
terms of this Contract. DEVELOPER agrees to assume full liability for all claims arising from
this Contract, including claims resulting from negligent acts of all subcontractors. DEVELOPER
is responsible to ensure subcontractors have insurance as needed. Failure of subcontractors to
comply with insurance requirements does not limit DEVELOPER's liability or responsibility.
The DEVELOPER holds the City harmless for any injury or death to the contractor's employees
while performing this Contract.
E. INSURANCE PROVIDED BY SUBCONTRACTORS
The DEVELOPER shall ensure that all subcontractors it utilizes for work/services rendered under
this Contract shall comply with all of the above insurance requirements. In all cases,
DEVELOPER's insurance coverage shall be primary insurance with respect to those who are
Additional Insureds under this Contract. Any insurance, self-insurance or insurance pool
coverage maintained by the City shall be in excess of the DEVELOPER's insurance and shall not
contribute to it.
Section XXI — General Conditions
A. All notices or other communication which shall or may be given pursuant to this 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:
Copy to:
City Manager
Yakima City Hall
129 North 2nd Street
Yakima, Washington 98901
Office of Neighborhood Development Services
City of Yakima
112 South 8''' Street
Yakima, Washington 98901
DEVELOPER: Yakima Housing Authority
Physical address: 810 N. 6'1' Ave
Yakima, WA 98902 or
Mailing address: P.O. Box 1447
Yakima, Washington 98907
20 of 25
City of Yakima
B. Title and paragraph headings are for convenient reference and are not a part of thisContract.
C. In the event of conflict between the terms of this Contract and any terms or conditionscontained in any
attached documents, a conflict or inconsistency shall be resolved by giving precedence in the following
order:
1. Appropriate provisions of state and federal statutes and regulations including HUD regulations
governing this Project.
2. Terms and Conditions (Exhibit A).
3. Those attachments incorporated by reference herein, including the statement of work and/or
project description, and approved HUD grant budget, in the order in which they are attached.
4. City of Yakima Resolution authorizing this Contract.
5. Any other provisions whether incorporated by reference herein or otherwise, provided that
nothing herein shall be construed as giving preference to provisions of this Contract and/or grant
award over any provisions of law.
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. The venue for any action to enforce or interpret this Contract shall lie in the
Superior Court of Washington for Yakima County.
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), asamended.
H. DEVELOPER shall comply with the provisions of sections 103 and 107 of the Contract Work Hours
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 direct to
enforce aforesaid provisions.
J. The obligations undertaken by DEVELOPER pursuant to this Contract shall not be delegated or
assigned 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. Modifications to this Contract shall be in writing and executed by both parties,
except for budget adjustments which process is specified above.
21 of 25 City of Yakima
L. DEVELOPER agrees to release, indemnify, defend, and hold harmless the CITY, its elected and
appointed officials, officers, employees, agents, representatives, insurers, attorneys, and volunteers from
all liabilities, losses damages and expenses related to all claims, suits, arbitration actions, investigations,
and regulatory or other governmental proceedings arising from or in connection with this Contract or the
acts, failures to act, errors or omissions of the DEVELOPER, or any of DEVELOPER'S agents or
subcontractors, in performance of this Contract, except for claims caused by the CITY'S sole negligence.
The CITY's right to indemnification includes attorney's fees and costs associated with establishing the
right to indemnification hereunder in favor of the CITY.
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 of funds, or authorization,
reduction of funds, and/or change in regulations.
O. The use or disclosure by any party of any confidential information concerning a recipient or client for
any purpose not directly connected with the City's or the DEVELOPER'S responsibilities with respect to
services provided under this Contract is prohibited except on written consent of the recipient or client,
their attorney or their responsible parent or guardian or as otherwise provided by law.
P. DEVELOPER shall not assign or subcontract any portion of services provided within the terms of this
Contract without obtaining prior written approval from the City. All terms and conditions of this Contract
shall apply to any approved subcontract or assignment related to the Contract.
Q. It is understood and agreed by the parties hereto that if any part, term, or provision of this Contract is
held by the courts to be illegal, the validity of the remaining provisions shall not be affected; and the
rights and obligations of the parties shall be construed and enforced as if the Contract did not contain the
particular provision held to be invalid. If it should appear that any provision hereof is in conflict with any
statutory provision of the United States or the State of Washington, said provisions which may conflict
therewith shall be deemed modified to conform to such statutory provision.
22 of 25 City of Yakima
EXHIBIT "B"
THE HOUSING AUTHORITY OF THE CITY OF YAKIMA
A.) PROPOSAL SUMMARY/PROJECT ABSTCT
Development of fifty-four (54) affordable housing units which will assist low-income
households at or below 60% area median income in the city limits of Yakima.
B.) ASSESSMENT OF NEED/PROBLEM STATEMENT
Due to the City of Yakima's need for affordable housing especially the need for homeless
housing, this 54-unit affordable housing rental project will be developed, and targeted to
qualified low to moderate -income tenants. The property will include 23 studios, 23 one -
bedroom units, and eight two -bedroom dwellings. Fourteen (14) Studio and one -bedroom units
at 30% AMI will receive project -based rental assistance in the form of Project Based Vouchers,
which will have a twenty (20) year term, this will allow the tenants to occupy these units by
contributing 30% of their incomes towards rent and utilities. Twenty-seven (27) of the units
will be designated as Permanent Supportive Housing (PSH) units and will be restricted to the
homeless and formerly homeless. These units include all at 30% AMI and include the fourteen
(14) deeply —subsidized dwellings at the project. Due to their PSH designation, these units will
be restricted to this population, with or without rental assistance in place.
C.) PROG ` =M GOAL AND OBJECTIVES
Goal
Develop 54 affordable housing units for formerly homeless and low-income tenants at 60%
AMI or lower.
Objectives
1. Construct 54 affordable housing units.
2. Rent the affordable housing units to qualified tenants below 60% of the Area Median
Income. (AMI) through the mandated twenty (20) year affordability period.
D.) METHODOLOGY
From the contract execution date to continue until the termination date as specified within this
contract, the Housing Authority of the City of Yakima will construct new dwelling units to
provide 54 affordable housing units. These units will be rented to qualified low and very low-
income farmworker tenants below 60% AMI. Two (2) of these units will be HOME floating units
and monitored for a twenty (20) year affordability period per HUD regulations governing HOME
Investment funded projects.
E.) OUTCOMES & EVALUATION
As a condition of reimbursement, the Housing Authority of the City of Yakima will,
1. Construct 54 affordable housing units.
2. Rent the affordable dwelling units to qualified low and very low-income tenants.
3. Monitor the property at 1116 Fruitvale Boulevard, Yakima, WA 98902. and two (2)
floating HOME units for a period of no less than the twenty (20) year affordability period
as per HUD regulations concerning HOME Investment funded properties.
F.) BUDGET
The Housing Authority of the City of Yakima will be reimbursed up to three hundred thousand
($300,000.00) dollars between the contract execution date and end upon completion of
construction and rent of the fifty-four (54) units to qualified low income tenants as subject to the
terms and conditions of the Contract.
23 of 25 City of Yakima
EXHIBIT "C"
RESOLUTION
24 of 25 City of Yakima
RESOLUTION NO. R-2022-127
A RESOLUTION authorizing an agreement with Yakima Housing Authority in the
amount of up to Three Hundred Thousand dollars ($300,000) in
Federal Housing and Urban Development HOME funds for
acquisition reimbursement for construction of 54 low-income
housing units.
WHEREAS, the city received money from the federal government's HOME
funding program under CFDA Contract # 14.239 in the amount of $300,000 which
must be used to invest in affordable housing in the City of Yakima; and
WHEREAS, Yakima Housing Authority owns, operates and manages
numerous low to moderate income housing units within the City of Yakima, including
a series of multi -family housing units for low to moderate income persons and families;
and
WHEREAS, Yakima Housing Authority wishes to construct Fruitvale Housing,
a development consisting of 54 low income units for low income persons and seeks
funding for land acquisition, which is an eligible activity under the HOME program, and
WHEREAS, the City has available HOME funds to assist Yakima Housing
Authority to acquire the land for Fruitvale Housing, and
WHEREAS, pursuant to federal requirements, 2 of those units will be
monitored for HUD HOME Investment affordability beginning at the time of completion
as outlined in the contract, through a period of not less than twenty (20) years, and
WHEREAS, The City Council of the City of Yakima finds that it is in the best
interests of the City and its residents to enter into an agreement with Yakima Housing
Authority to provide funding for land acquisition for development of 54 units of low
income housing with federal monies provide 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 Housing
Authority in the amount of Three Hundred Thousand Dollars ($300,000) in Federal
Housing and Urban Development HOME Investment funds for land acquisition for
development of 54 units of affordable housing for low income persons and families,
two of which will be monitored for twenty years under the affordability requirements of
HUD HOME program requirements. A copy of the agreement is attached hereto and
incorporated herein.
ADOPTED BY THE CITY COUNCIL this 20th d
ATTEST:
Sonya Clear Tee, City Clerk
of September, 29 2.
Janice Deccio, Mayor
EXHIBIT "D"
SUBSIDY ANALYSIS
25 of 25 City of Yakima
SUBSIDY ANALYSIS
PROJECT NAME: Fruitvale Housing
Project Address. TBD Fruitvale BLVD - Yakima WA 98902
Parcel#
Project Type: (check box) New Construction [71 Rehabilitation
When was property acquired if Rehab? n/a
Funding Year 2022
How much Funding is being requested?
What will proposed funding be used for? New Construction
18131331516
300 000 00
When will project begin? (Estimated) I 0/1/2022
Additional Funding Sources if any?
Acquisition Funding
Funding Source:
Number of Parcels:
Appraisal Amount:
Purchase Price:
Demolition Costs
Funding Source:
Estimated Demolition Costs:
$16,318,992.00
HTF:3,500,000 - Ecology:$100,000 - City CHIP Grant:$720,634
LIHTC $11.867,358 - YHA Deferred Fee - $131,000
HousingTrust Fund
1
$272,600 00
$276,689.00
Housing Trust Fund
$24,557.00
Lot Breakdown
Estimated available building lots: 0.88 acres
Estimated Lot Cost: $276,689.00
SUBSIDY ANALYSIS
Estimated Demolition Cost per lot: $24,557.00
Estimated Total Lot Cost: $301,246,00
Construction Fundinq
Funding Source:
Address. -
Parcel:
Estimated Construction Amount:
SUBSIDY TOTALS
Acquisition:
Demolition:
Construction. -
Rehabilitation:
HTF.L\HTC.HOME, Ecology, City ofYakima CHIP
18131331516
$16.317.746.00
$276.688.00
.0]
Estimated Appraised Value: $16,618,992.00
Maximum Per Unit Subsidy Limits for Yakima
O8edrooms
1Bedmom
28edroonno
3Bednooma
4+Bedroomo
$159.754
$183.132
$222,694
$288,094
$303,489
Project Justification Summary
Fruitvale Housing is reauestina $300 OOOin subsidy from HOME to support 2% of the total residential construction
cost of the clevelopmernt. In total, a,sjn_qle, four story building will house 54 units, consisting ofJZ2)_stuidos, 23) 1
bedroom and (8 2 bedroom units. 50% ' forgeneral low i.n.come familes and 50% for homeless at entry. The HOME
funds support the construction of 2 units,
1
ITEM TITLE:
SUBMITTED BY:
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.H.
For Meeting of: September 20, 2022
Resolution authorizing a contract with Yakima Housing Authority, in
the amount of $300,000 of HOME Investment funds for acquisition
reimbursement for the construction of a 54-unit low income
affordable housing project located at 1116 Fruitvale Blvd.
Joan Davenport, Community Development Director
Archie Matthews, ONDS Manager (509) 575-6101
SUMMARY EXPLANATION:
The Yakima Housing Authority has requested HOME funds from the City of Yakima for acquisition
reimbursement for the construction of a 54 unit multifamily affordable housing project known as
Fruitvale Housing, located at 1116 Fruitvale Blvd. This project will assist low income families 50%
of which will be homeless at entry. This project completed zoning and environmental review
necessary for site development. The approval process took approximately 6 months.
The project, known as "Fruitvale Housing" is estimated to be over 16.5 Million dollars in project
development costs. Funding is from a partnership including Housing Trust Fund ($3,500,000),
Dept. of Ecology ($100,000), LIHTC ($11,867,358), and YHA Deferred fee of ($131,000).
As the annual recipient of HOME Investments 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 the 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
2
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
0 Resoldon 9/8/2022 Resoldon
0 YHA Fruitvale Housing Contract 9/8/2022 Contract