HomeMy WebLinkAboutR-2024-058 Resolution authorizing a contract with Yakima Valley Partners Habitat for Humanity for the development of a new single-family home located at 2910 W Arlington Ave RESOLUTION NO. R-2024-058
A RESOLUTION authorizing an agreement with Yakima Valley Partners Habitat for Humanity
for up to Eighty-Seven Thousand Five Hundred Dollars ($87,500) in U.S.
Department of Housing and Urban Development (HUD), HOME Investment
Partnerships Program (HOME) funds for the construction of a low-income
housing unit at 2910 W. Arlington Avenue.
WHEREAS, the City received money from the HUD's HOME Program under CFDA
Contract# 14 239 in the amount of$573,858, which must be used to invest in affordable housing
in the City of Yakima and
WHEREAS, this proposal's existing lot of record will be developed with a single-family
home at 2910 W. Arlington Avenue, Yakima, WA 98902.
WHEREAS, Yakima Valley Partners Habitat for Humanity has a proven track record of
creating community-based housing for the benefit of low to moderate-income homeownership
units within the City of Yakima and
WHEREAS, Yakima Valley Partners Habitat for Humanity is a Certified Community
Housing Development Organization (CHDO) 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 seek funding for the land acquisition and development, which are eligible activities under the
HOME program, and
WHEREAS, pursuant to federal requirements, the newly constructed single-family
dwelling 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 fifteen (15) 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 Valley Partners Habitat for
Humanity to provide funding for land acquisition and development costs for an affordable housing
unit with federal monies provided by HUD through the HOME Investment 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 for Eighty-Seven Thousand Five Hundred Dollars ($87,500) in Federal
Housing and Urban Development HOME Investment funds to acquire land and construct a single-
family housing unit for a low—to moderate-income person within the City of Yakima. A copy of
the agreement is attached hereto.
ADOPTED BY THE CITY COUNCIL this 2nd day of April, 2024.
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Rosalinda Ibarra, City Clerk '4��\S,N1Nj��o?=
CONTRACT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND DEVELOPER —YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY
(2910 W. Arlington Ave.)
1. CFDA: 14.239 HOME INVESTMENT PARTNERSHIP PROGRAM
2. DEVELOPER/AWARDEE: Yakima Valley Partners Habitat for Humanity
3. HUD Entity Type: DEVELOPER
4. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902
5. Phone: (509) 453-8077
6. Contact Person: Meloney Rosen, Director of Yakima Valley Partners Habitat for
Humanity
7. Title of Service or Program being funded: New Construction of single-family
homes located at: 2910 W. Arlington Ave., Yakima, WA 98902.
8. Awarding Federal Agency: U.S. Department of Housing and Urban
Development.
9. Unique Entity Identifier Number: HU9AXMBCSDA2
10. Federal Award Year and Federal Award Number: 2020, 2021, & 2022; M20-
MC530203; M21-MC530203; M22-MC530203.
11. Amount of Contract Award: $$87,500 (HOME) CFDA Contract# 14.239
12. The term of this Contract shall commence upon the execution date of the
Developer's receipt of "Letter to Proceed" from the 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 April 2,
2025, at midnight, unless sooner terminated by either party in accordance with
Section XV of Exhibit "A," attached hereto and incorporated herein by this
reference.
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-2024- , a copy of which
is attached hereto as Exhibit "C" and incorporated herein by this reference.
14. Final Contract payment shall be subject to the 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
1 of 36 City of Yakima 4/2/2024
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.
IN WITNESS THEREOF the parties have executed this Contract as of the day and year
stated below.
CITY OF YAKIMA DEVELOPER: Habitat for Humanity
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Dave Zabell, Manag Meloney Rose I
1 Title: Execitive.Director
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Rosalinda Ibarra, City Clerk.' ?
City Contract No.:.741AA1-053
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2 of 36 City of Yakima 4/2/2024
EXHIBIT "A"
TERMS AND CONDITIONS
This Contract is to provide HOME Investment Partnerships Program (HOME)funding for
the construction of 1 new affordable homeownership units in the City of Yakima. All
housing developed with funding provided by this Contract shall be pursuant to the HOME
Program's and this Contract's regulations. The term of this Contract and the provisions
herein shall be extended to cover the affordability period hereby designated as fifteen
(15) years. The affordability period in this Project will be activated on the date after the
Developer has provided the City staff with a project completion report upon initial
occupancy of the units, and this information will be entered into H.U.D.'s Integrated
Disbursement Information System (IDIS) System.
All terms used in this Contract shall be consistent with the HOME Program and its
implementing regulations at 24 C.F.R. Part 92. Developer agrees to comply with all
requirements related to this Project as outlined in the Code for Federal Regulations listed
in 24 C.F.R. Part 92 and 24 C.F.R. Part 58 (as amended). In any instance where the City
requirements are more restrictive than the Code for Federal Regulations, the City
requirements shall take precedence over the Federal Regulations. The Developer, with
this Contract, intends, declares, and covenants that the regulatory and restrictive
covenants set forth herein governing the use, income, occupancy, sale, lease, or transfer
of the assisted HOME units shall be binding upon the Developer for such term, and are
not merely personal covenants of the Developer, but are contractual in nature.
WHEREAS, the City is the recipient of a U.S. Department of Housing and Urban
Development (H.U.D.) grant under the HOME Investment Partnership Provisions of the
Cranston-Gonzales National Affordable Housing Act (42 U.S. C 12742) and will
administer said grant; and
WHEREAS, the City of Yakima, as a recipient of HOME Investment Partnerships
Program Funds from the U.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 an eligible CHDO,
that maintains, develops, and constructs affordable housing in the State of Washington
and is eligible to participate in the City's service area(s) under the provisions of Section
212 of the Cranston-Gonzales Act (42 U.S. C 14742) as amended by the Housing and
Community Development Act of 1992; and
NOW, THERFORE the AWARDEE/DEVELOPER hereby agrees to undertake, that
certain community development or housing assistance project described in Exhibit"B",
Project Summary (hereinafter sometimes referred to as "the Project") for the following
locations:
1. 2910 W Arlington Avenue
pursuant to the terms and conditions of the Contract and its Exhibits.
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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 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 be rendered or provided by the DEVELOPER as described here.
D. PROJECT — is defined in Section II - Project 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.
Section II- Project
DEVELOPER's Project will develop one (1) single-family home that will be sold to low-
income, qualified first-time homebuyers.
Section III —Term
A. GENERAL
The DEVELOPER expressly agrees to complete all work required by this Contract in
accordance with the timetable set forth as follows:
Milestone Deadline
Project Start Date: Date of signature.
Project Completion Date: April 2, 2025
Duration of Contract: Through the end of the Affordability Period (see Section B)
The amount of grant funding that the City hereby sub-grants to the DEVELOPER is
Eighty Seven Thousand Five Hundred ($87,500.00) for the Proiect.
This Exhibit A consists of one (1) undeveloped lots in the City of Yakima owned by the
Developer. Public water and sewer are provided to the unit(s) and available from the City
of Yakima. Electrical service is also available at the sites.
The new affordable housing units will be designated HOME homeownership units and,
as such, shall only be sold to income-eligible buyers for the affordability period. The buyer
shall have an income at or below 80%A.M.I. (area median income) based on the current
4 of 36 City of Yakima 4/2/2024
H.U.D. limits at the time of execution of the sale. Income eligibility shall be determined
using the "Technical Guide for Determining Income and Allowance for the HOME
Program"provided by the U.S. Department of Housing and Urban Development(H.U.D.)
and shall include source documentation.
The sales price of each unit may not exceed 95 percent of the maximum purchase prices
for the area. The HOME-assisted unit(s) shall remain in compliance with the HOME
Program (24 C.F.R. Part 92.252(e)) for FIFTEEN (15) years after the Project is officially
completed. The Project is officially completed when the property construction is
completed, the property passes ongoing and final construction inspections by City staff,
a Certificate of Occupancy is issued by the jurisdictional building inspections department,
HOME-assisted units are occupied, and the required beneficiary data is submitted to the
City staff to enter into H.U.D.'s Integrated Disbursement Information System (IDIS)
System.
B. AFFORDABILITY
In addition, this project is subject to ongoing compliance requirements of HOME for
FIFTEEN (15) years from the date the project is completed. The project is considered
completed when the City draws the final drawdown of HOME funds. During this
compliance period, the DEVELOPER will ensure continued compliance with HOME
requirements. For homebuyer units, this includes monitoring units for principal residency
and recapture of funds at the time of resale. A restrictive covenant shall be executed for
the total amount of assistance and will include the applicable HOME requirements,
including resale/recapture provisions and property use restrictions, to ensure the
enforcement of the HOME requirements. These requirements, which pertain to
occupancy, income, and an affordability period, are required in order to maintain the
development subsidy investment as a forgivable loan in the affordable housing units for
the compliance period. The covenant shall be executed and attached to the property
prior to final payment being made with transfer of the property from DEVELOPER to a
third party.
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. The aforementioned document will be considered to be a part and
portion of this Contract by reference. The DEVELOPER will complete the construction of
the one (1) unit by April 2, 2025, including the sale of the units.
The DEVELOPER is required to submit performance reports on program/project status
and activities through project completion as requested by the City staff. The Developer
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will allow and help facilitate required inspections and monitoring of the Project by City
staff. The DEVELOPER agrees to execute the covenant and attach it the property prior
to final payment being made with transfer from DEVELOPER to a third party. Termination
of the Contract will occur automatically upon the expiration of the Contract period. Project
Extension Request must be approved by the CITY.
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 caused by 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 (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):
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 FIFTEEN (15) 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. The aforementioned Work tasks will be performed in essentially
the manner proposed in the DEVELOPER's proposal as received by the AGENCY on
November 2, 2022. The aforementioned document will be considered to be a part and
portion of this Contract fully incorporated herein.
1. Eligible Use of Funds. HOME funds available under this Contract will be used
for the construction of the property. Other eligible costs include the cost of
construction, legal and recording fees, environmental review costs, and survey
costs or associated costs for site review. Other eligible costs will be paid by the
DEVELOPER of the local match: Project Soft Costs must be "reasonable and
necessary." These costs may include the following:
Professional Related Costs:
• Loan origination fees
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• Credit reports fees
• Title report and update fees
• Recordation fees
• Preparation and filing of legal document fees
• Appraisal Report fees
• Market Study Report fees
• Attorney's fees
• Loan processing fees
• Developer fees
Construction Related Costs:
• Architectural fees
• Engineering fees
• Preparation of work write-ups/cost estimate fees
• Builder's fees
Other Costs:
• Project audit costs
• Affirmative marketing and fair housing costs
• Relocation costs
Eligible Hard Costs must be "reasonable and necessary." These costs may
include the following:
• Costs to meet the applicable building standards in effect at the
time a building permit is obtained from the locality
• Costs to make essential improvements, including the actual
costs of construction or rehabilitation
• Energy-related repairs or improvements
• Improvements necessary to permit use by handicapped persons
• Abatement of lead-based paint hazards
• Costs to repair or replace major housing systems in danger of
failure in existing structures
• Costs to demolish existing structures
• Costs for improvements to the project site and utility connections
• Costs to acquiring optioned improved or unimproved land for
new construction or rehabilitation projects
• Incipient repairs and general property improvements of a non-
luxury nature
2. Funded Amount and Other Funding Sources. The CITY is hereby providing
from the F.Y. 2020, F.Y. 2021, and F.Y. 2022 CHDO set aside funding in the
amount of up to eighty-seven thousand, five hundred dollars and 00/100
($87,500), for activities identified in this Contract and listed in the Project Budget.
The funds are granted to the Developer for the construction of one (jnew
affordable homeownership units in the City of Yakima. The Developer will provide
any additional funding necessary over and above the financial commitment to
complete the Project as approved in the application for HOME assistance. If the
Project comes in under budget, the Developer will only be reimbursed for actual
eligible costs. Also, volunteer hours and additional funding beyond HOME funds
will be counted as local matches.
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3. Maximum HOME Subsidy. H.U.D. requires that the maximum HOME per-unit
subsidy not be increased above 240 percent of the base limits authorized by
§211(d)(3)(ii) of the National Housing Act. HOME subsidy under this Contract is
$87,500 for 2910 W Arlington Avenue, and does not exceed this regulation.
The property is located within the City of Yakima limits.
Section V— Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses (excluding developer fees) 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 with 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 eligible 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 eligible 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. Pay requests with documentation/invoices for
requested costs may be submitted monthly during the Project. Exceptions to this
practice may be made based on the amount and frequency of requests based on
the financial needs of the contractors. 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.
The Developer must notify the City's Staff at the same time notification is made
to the local government for the following inspections (if applicable):
8 of 36 City of Yakima 4/2/2024
a) Foundation Inspection
b) Slab Inspection
c) Rough-In Inspection
d) Insulation Inspection
e) Final Inspection
Note: Failure to notify the City staff for inspections may result in work
having to be redone at the Developer's cost so that the inspection can be
completed.
C. CHANGE ORDERS
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.
Change orders may occur during the course of construction, either initiated by
the Developer. All change orders must be submitted for review to the City staff
prior to approval to ensure that the scope of the Project is not altered.
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 ONDS prior to the
submittal of claims against the budget.
Section VI — Roles and Responsibilities
A. Incur Costs. The Developer will not incur costs, make any commitments, or take
any physical action on a property to be assisted with HOME funds until approved
by City staff. Environmental clearance of the sites and a Removal of Grant
Conditions and Authority of Use H.U.D. Funds must be in place prior to any
physical activity on the project site.
B. Eligible Applicant. The DEVELOPER commits to providing an eligible applicant
according to the recognized HOME guidelines for any HOME-assisted unit. The
occupant's/applicant's income will fall within the required H.U.D. guidelines for
L.M.I. persons to qualify for assistance. The DEVELOPER shall provide the
CITY's Office of Neighborhood Development Services staff with a copy of the
application and income verification of the proposed renters/occupants prior to the
occupancy of the units. Verification includes all third-party verification in order to
ensure that the low-to-moderate income requirements are met. All units funded
by this Contract are subject to the income guidelines.
The DEVELOPER shall provide the CITY copies of recorded mortgages, deeds,
and any other instruments executed related to the HOME-assisted property.
9 of 36 City of Yakima 4/2/2024
DEVELOPER agrees to provide the necessary personnel and equipment to
oversee, manage, and maintain any units for which HOME funds are provided.
The HOME units shall be inspected by the jurisdictional building inspector and
shall meet all local and state building codes as applicable for the City and/or City
of Yakima prior to occupancy. A copy of the permit to occupy the unit for each
structure will be submitted to the CITY prior to final payment. The City staff shall
provide guidance on HOME compliance and assist the Developer as needed in
the review of the applicant's application and verifications to ensure eligibility
within HOME income limits, providing a suggested language for inclusion of
HOME requirements in sales documents if applicable; and applicable
procurement of construction, materials, small purchases, and contract labor. The
staff will review and approve requests for payment and conduct site visits to
confirm construction progress. Payment will be made within twenty days of
approved invoices/pay requests.
C. Participating Jurisdiction. As a HOME Participating Jurisdiction, the CITY will
be primarily responsible for implementing this Contract and for day-to-day
communications with the Developer. As such, references to the"City HOME staff'
or "City Staff' within this Contract should be construed to indicate that the Office
of Neighborhood Development Services (ONDS) will communicate with the
DEVELOPER on behalf of the CITY and as its administrative agent relative to the
HOME program. In the event the CITY replaces or terminates ONDS as its
administrative agent for the HOME program, it will provide notice to the
DEVELOPER as provided for herein. The DEVELOPER further agrees to fully
cooperate with the ONDS staff or with any future administrative agent designated
by the CITY as the City's authorized agent for purposes of administering its
HOME Program.
D. Inspection of Records. The 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.
E. Audit of Records. The 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.
H. Unauthorized Use. 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.
Return of Funds 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 the
DEVELOPER is unable to continue and/or provide services as described in
Exhibit B.
Section VI — 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. Environmental Review
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No HOME project funds will be advanced, and no costs can be incurred, until the
City has conducted 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 the project. Notwithstanding any
provision of this Contract, the parties hereto agree and acknowledge that 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.
The DEVELOPER shall comply with all Federal, State, and Local Laws and
Regulations for the duration of this Project, including but not limited to the
Cranston-Gonzales Act, as amended by the Housing and Community
Development Act of 1992; regulations continued in 24 C.F.R. Part 92; Federal
O.M.B. Circular A-110 Attachments B, F, H (paragraph 2) and 0, O.M.B. Circular
A-122, zoning, building, housing and other codes and regulations of the
jurisdiction where Project is located; and such other Federal, State, and Local
Laws, rules and regulations as may apply to the Project including
Nondiscrimination and Fair Housing Laws.
The City of Yakima, through the AGENCY retains environmental review
responsibility for purposes of 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 completed on 2910 W Arlington Avenue —
04/28/2023. All mitigation if 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 XIV 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 Contract to the City and may result in termination of this Contract. The
DEVELOPER expressly agrees to do all things necessary and take all necessary
steps to facilitate the environmental review of the Project.
B. Property Standards.
According to 24 CFR 92.251 Property Standards, Housing that is purchased,
constructed, or rehabilitated with HOME funds must meet all applicable local,
state, and/or CITY construction standards, ordinances, and zoning ordinances at
11 of 36 City of Yakima 4/2/2024
the time of project completion and throughout the period of affordability. In the
absence of a local code for new construction or rehabilitation, HOME-assisted
new construction or rehabilitation must meet, as applicable, one of three model
codes: Uniform Building Code (ICBO), National Building Code (BOCA), Standard
(Southern) Building Code (SBCCI); or the Council of American Building Officials
(CABO) one or two family code; or the Minimum Property Standards (M.P.S.) in
24 CFR 200.925 or 200.926 and/or minimum property standards established by
the CITY on behalf of the HOME Program. All construction will be inspected by
the City staff prior to receipt of final payments.
The housing must meet the accessibility requirements at 24 C.F.R. part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).
Covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet
the design and construction requirements at 24 CFR 100.205, which implement
the Fair Housing Act (42 U.S.C. 3601-3619). The Fair Housing Act requires that
all multi-family dwellings must meet the design and construction requirements at
24 CFR 100.205. Refer to CABO/ANSI section A117.1 for specific requirements.
A Section 504 Physically handicapped person is defined as an individual who has
a physical impairment, including impaired sensory, manual, or speaking abilities,
that results in a function limitation in gaining access to and using a building or
facility. The housing provides accessibility, adaptability, and accessible routes.
1. 504 Requirements for New Construction Projects: Projects with (5) or
more units will have at least 5% of the units accessible to individuals with
mobility impairments AND at least 2% of the units accessible to individuals
with sensory impairments. As this Project only consists of one (1) units, 504
requirements do not apply.
2. Fair Housing Act: The Fair Housing Act requires seven basic requirements
that must be met to comply with the access requirements, which are:
• An accessible building entrance on an accessible route
• Accessible common and public use areas
• Usable doors (usable by a person in a wheelchair)
• Accessible route into and through the dwelling unit
• Light switches, electrical outlets, thermostats, and other
environmental controls in accessible locations
• Reinforced walls in bathrooms for later installation of grab bars
• Usable kitchens and bathrooms
An owner of rental housing assisted with HOME funds must maintain the
housing in compliance with all applicable State and local housing quality
standards and code requirements, and if there are no such standards or
code requirements, the housing must meet the housing quality standards
in 24 CFR 982.401, for the entire length of the affordability period.
C. Property Restrictions
1. Restrictions on the Sale or Transfer of Land and Improvements.
Developer agrees that throughout the term of this Contract, and in order to
satisfy the requirements of the HOME Program, the Developer will not sell or
transfer any part of the project premises or any interest in it without the City's
prior written consent, including a transfer of all or part of the project premises
to any person that does not use the project premises for"affordable housing"
within the meaning of the HOME Program. Upon the occurrence of any of the
12 of 36 City of Yakima 4/2/2024
above, the Developer will provide immediate payment in full of the entire
principal under this Contract.
2. Covenants to Run with Land. The Developer agrees to execute and record
a restrictive covenant instrument that is secondary to all other financing
and/or security instruments, any other use restrictions, easements, liens, or
other encumbrances of record, except for those previously disclosed on a
commitment for title insurance issued to the City or those explicitly approved
by the City and the City Attorney. Developer intends, declares, and
covenants, on its behalf and on behalf of all future holders of any interest in
and to the project premises described in "Exhibit A" during the term of this
Contract, that this Contract and the covenants and restrictions set forth in this
Contract regulating and restricting the use, occupancy, sale, lease or transfer
of the Premises (i) shall be and are covenants running with the land,
encumbering the land for the term of this Contract, binding upon the Grantee's
successors in title and all subsequent Grantees and tenants or transferee of
the premises, (ii) are not merely personal covenants of the Grantee, but are
contractual in nature and condition precedent to the Grantee obtaining the
HOME Grant, and (iii) shall bind the Grantee and the Grantee's grantees,
lessees, heirs, assigns, personal representatives for transferee during the
term of this Contract. The Grantee hereby agrees that any and all
requirements of the laws of the State of Washington to be satisfied in order
for the provisions of this Contract to constitute property use restrictions and
covenants running with the land shall be deemed to be satisfied in full, and
that any requirements or privileges of the estate are intended to be satisfied,
or in the alternative, that an equitable servitude has been created to ensure
that these restrictions run with the land. For the Term of this Contract, each
and every contract, deed, or other instruments hereafter executed conveying
the project premises described in "Exhibit A," or a portion thereof, shall
expressly provide that such conveyance is subject to this Contract provided;
however, the covenants contained herein shall survive and be effective
regardless of whether such contract, deed, or other instruments hereafter
executed conveying the project premises, or a portion thereof, specifically
provides that such contract, lease or conveyance is subject to this Contract.
3 Affordability Restrictions.Any unit constructed on this property assisted
with HOME funds must remain occupied by a low to moderate-income
family/person for a period of FIFTEEN (15) years to meet the affordability
required by the HOME investment in the Project. The Developer agrees
to enforce the affordability requirements under 24 CFR 92.252(e) as
applicable and agrees to repay the HOME funds if the housing does not
meet the affordability requirements for the specified time period.
For new construction homeownership projects, the period of affordability
is FIFTEEN (15) years. The affordability period in homeownership
projects will be activated on the date after the Developer provides the
City with a project completion report, and this form has been entered into
H.U.D.'s Integrated Disbursement Information System (IDIS) detailing
the following:
o Household size
o Gross annual household income
o Racial and ethnic characteristics
1. Property owner's name
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2. Whether any household member is disabled
3. Designation as a mobility or sensory-handicapped unit
4 Sales date
5 Bedroom Size
o Purchase Price
o Date of Certificate of Occupancy
Project completion reports are to be submitted by the Developer when the
HOME-assisted unit is purchased and occupied, no later than 90 days after
the issue of the Certificate of Occupancy. Developer agrees to execute the
Restrictive Covenant at or before the completion of the Project. If Developer
does not comply with providing project completion reports within the 90-day
period following the issuance of the Certificate of Occupancy, the
organization will be ineligible to apply for additional HOME funding, and any
current awards will be revoked.
The affordability period does not end upon early payoff of the HOME
assistance, if applicable.
4. Maintaining Homeownership Housing Affordability: CFR 92.254. The
income of each unit must be determined initially using Section 8 (Part 5)
definition of annual (gross) income.
5. Income Determinations. The Developer agrees to perform the income
determination requirements of 24 CFR 92.203.
Eligible Incomes: the Developer must determine that each family or individual
is income-eligible. The Developer is required to use third-party source
documents to evidence annual income (e.g., wage statement, interest
statement, and unemployment compensation statement) for the family or
individual. Owners must use the Part 5 definition as defined in the "Technical
Guide for Determining Income and Allowance for the HOME Program"
provided by the U.S. Department of Housing and Urban Development
(H.U.D.).
D. CHDO Responsibilities
1. Expenditure Requirements. The DEVELOPER will ensure that any
expenditure of HOME funds will be in compliance with the requirements
at 24 CFR 92.206, Eligible Costs, and acknowledges that HOME funds
will only be provided as reimbursement for eligible costs incurred,
including actual expenditures or invoices for work completed.
2. Owner-Occupied Qualifications. The DEVELOPER will ensure that all
HOME assisted units will be in compliance with 24 CFR 92.254
(Qualification as affordable housing, Homeownership), including
documenting that the property is eligible under 24 CFR 92.254(a)(1) —(2),
and will maintain compliance during the minimum compliance period.
3. Project Beneficiary Information. The designated HOME-assisted units
of this PROJECT will meet the affordability requirements as found in 24
CFR 92.254 (Qualification as affordable housing, Homeownership) as
applicable. The DEVELOPER shall collect and maintain Project
beneficiary information pertaining to household size, income levels, racial
characteristics, and the presence of Female-Headed Households in order
14 of 36 City of Yakima 4/2/2024
to determine low and moderate-income benefits in a cumulative and
individual manner. Income documentation shall be in a form consistent
with HOME requirements as stated in the H.U.D. Technical Guide for
Determining Income and Allowances Under the HOME Program.
4. Notes & Mortgages. If the Project is to be owner-occupied, the
DEVELOPER shall ensure 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)).
5. HOME Match. DEVELOPER will provide any documentation required by
the AGENCY regarding match as may be required to document match for
purposes of the HOME program.
6. Lease Purchase Option. If the property is sold through a lease-purchase
contract, the DEVELOPER will ensure compliance with 24 CFR
92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B.
7. Monitoring. DEVELOPER will be monitored by the AGENCY for
compliance with the regulations of 24 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
Five (5) years after completion and closeout of the CONTRACT.
E. Other Federal Requirements
1. H.U.D. Generally Applicable Definitions & Requirements; Waivers.
The Developer agrees to conform to all Federal and State regulatory
requirements, including the Federal requirements set forth in 24 C.F.R.
Part 5, Subpart A, those described in 24 C.F.R. Part 92, Subpart H,
Section 350-359, as well as the City's Housing and Property Standards
and the applicable Yakima Municipal Code sections. The Federal and City
requirements include nondiscrimination and equal opportunity; disclosure
requirements; debarred, suspended, or ineligible contractors; and drug-
free workplace.
2. Nondiscrimination & Equal Opportunity: The Contract is made
available in conformity with the non-discrimination and equal opportunity
requirements set forth in 24 C.F.R. Part 511.10(m), as follows: The
requirements of Executive Order 11063, and with Title VI of the Civil
Rights Act of 1964, 42 U.S.C. 2000d as amended by Executive Order
12259 (3 C.F.R., 1959- 1963 Comp., p. 652 and 3 C.F.R., 1980 Comp.,
p. 307). The Act prohibits discrimination against individuals on the basis
of race, color, religion, sex, or national origin in the sale, rental, leasing,
or other disposition of residential property or in the use or occupancy of
housing assisted with Federal funds. The prohibitions against
discrimination on the basis of age under the Age Discrimination Act of
1975, 42 USC 6101-07, and the prohibitions against discrimination
against handicapped individuals under Section 504 of the Rehabilitation
Act of 1973, 29 USC 794. The nondiscrimination requirements in Section
282 of the Act are applicable.
15 of 36 City of Yakima 4/2/2024
3. Fair Housing: The Fair Housing Act (42 U.S.C. 3601-19) and
implementing regulations at 24 C.F.R. part 100 et seq.; The Act prohibits
discrimination in the sale of housing, the financing of housing, or the
provisions of brokerage servers against any person on the basis of race,
color, religion, sex, national origin, handicap, or familial status.
4. Disclosure & Anti-Lobbying Requirements: The Developer assures
that no Federal funds have been or will be paid by or on behalf of the
Developer to any person for influencing or attempting to influence an
officer or employee of an agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
Contract or any modification of any Federal contract, grant loan, or
Contract. If any other funds other than Federal funds have been paid or
will be paid to persons for influencing any above-named persons in
connection with this Project, the Developer shall complete and submit the
"Disclosure Form to Report Lobbying" in accordance with its instructions.
5. Affirmative Marketing (required for projects with five or more HOME-
assisted units): The Developer will follow an affirmative marketing plan
approved by the City. This affirmative marketing plan consists of the steps
of actions to provide information and otherwise attract eligible persons in
the housing market area to the available housing without regard to race,
color, national origin, sex, religion, familial status, or disability. (The
affirmative marketing procedures do not apply to families with Section 8
Tenant-Based Rental Housing assistance or families with Tenant-Based
Rental Assistance provided with HOME funds.)The Affirmative Marketing
Plan will include:
• Methods for informing the public, owners, and potential tenants
about Federal Fair Housing Laws and the County's Affirmative
Marketing Policy (e.g., the use of the Equal Housing Opportunity
logotype or slogan in press releases and solicitations for owners
and written communication to fair housing and other groups);
• Requirements and practices each owner must adhere to in order
to carry out the Affirmative Marketing Procedures and
Requirements (e.g., use of commercial media, use of community
contacts, use of the Equal Housing Opportunity logotype or
slogans, and display of Fair Housing poster);
• Procedures to be used by owners to inform and solicit applications
from persons in the housing market area who are not likely to
apply for the housing without special outreach (e.g., use of
community organizations, places of worship, employment centers,
Fair Housing groups, or housing counseling agencies);
• Records that will be kept describing actions taken by the owners
to affirmatively market units and records to assess the results of
these actions; and
• A description of how the Developer will annually assess the
success of affirmative marketing actions and what corrective
actions will be taken where affirmative marketing requirements are
not met.
6. Minority outreach: The Developer will take necessary affirmative steps
to ensure that minority firms and women's business enterprises are used
16 of 36 City of Yakima 4/2/2024
whenever possible. Because this is a certified Community Housing
Development Organization, Procurement does not apply. Procurement
regulations at 24 C.F.R. Part 85.36(e) specify that MBE/WBE outreach
activities apply to all contracting opportunities facilitated by HOME-funded
activities, including contracts related to construction, rental assistance,
and HOME program administration. There are no monetary thresholds
that trigger MBE/WBE outreach requirements. They apply to all contracts
awarded in conjunction with HOME-assisted projects. The HOME
Construction Performance Standards Manual provides complete details
of the requirements that will be followed. HOME regulations require that
the following minimum affirmative steps are taken to ensure MBE/WBE
are afforded every opportunity to participate in HOME-generated
contracts.
• Placing minorities and women on solicitation lists;
• Assuring that M.B.E. and WBE firms are solicited whenever they
are potential sources;
• Dividing the total requirements, when economically feasible, into
smaller tasks or quantities to permit maximum participation by
small and minority business enterprises and women business
enterprises;
• Where the requirement permits, establishing delivery schedules
that encourage participation by small and minority business
enterprises and women business enterprises;
• Using the services and assistance of the Small Business
Administration and the Minority Business Development Agency of
the Department of Commerce and
• Requiring the prime contractor, if subcontractors are to be let, to
take all the same actions.
7. Religious Activities: The Developer agrees, as directly funded under the
HOME program, not to engage in inherently religious activities, such as
worship, religious instruction, or proselytization, as part of the assistance
funded under the HOME program. The Developer also agrees that
religious activities such as worship, religious instruction, or proselytization
will be offered separately, in time and location, and it is the beneficiary's
voluntary decision to participate. These separate religious activities
cannot be funded by the HOME program. Religious organizations
providing HOME assistance will not discriminate against program
beneficiaries based on religious character, belief, or affiliation. HOME
funds may not be used for the acquisition, construction, or rehabilitation
of structures to the extent that those structures are used for inherently
religious activities.
8. Davis Bacon. 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 C.F.R.,
Part 5), as amended.
Section VII — Repayment of Loan
A. Repayment. 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
17 of 36 City of Yakima 4/2/2024
and/or HUD requirements.
B. Reversion. 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. Owner Occupancy. 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 24 CFR 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").
D. Program, CHDO Proceeds. No program income or CHDO proceeds are
anticipated for this Project. However, if CHDO proceeds are determined by
H.U.D. and/or the City to have been received, 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. The Developer must submit a CHDO Program
Income Plan to the City for approval. Program Income must be used for HOME-
eligible activities or other approved affordable housing activities. Income from the
sale, rental, or use of real estate by the project owner, Developer, or sponsor is
not treated as program income
Section VIII —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 in
accordance with 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 24 CFR 92.301,
and are forgivable only under the terms in 24 CFR 92.301.
Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in
compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as
CHDO proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2)
or as specified in this Contract.
Section IX — 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.
The Developer agrees to conform to all Federal and State regulatory requirements,
including the Federal requirements set forth in 24 C.F.R. 5, Subpart A, as well as the
City's municipal code, and Housing and Property Standards. The Federal and City
requirements include nondiscrimination and equal opportunity; disclosure requirements;
debarred, suspended, or ineligible contractors; and drug-free workplace.
18 of 36 City of Yakima 4/2/2024
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 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 ensure adequate safeguards to
prevent lose, damage, or theft to the property. Any loss, damage, or theft
of the property shall be investigated and fully documented.
4. Adequate maintenance procedures shall be implemented to keep the
property in good condition.
5. If the 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.
19 of 36 City of Yakima 4/2/2024
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 shall abide by all portions of 24 CFR 92.257.
Section X— 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 24 CFR 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
20 of 36 City of Yakima 4/2/2024
award of contracts or benefits of the HOME assistance. The Jurisdiction may grant
exceptions or forward the requests to HUD as permitted by 24 CFR 92.356, 85.36 and
84.42, as they apply.
Section XI — City Responsibilities
The CITY shall furnish the DEVELOPER with the following services and information from
existing CITY records and CITY files:
A. Requirements. The CITY shall provide to the DEVELOPER information
regarding its requirements for the PROJECT.
B. Regulation Updates. The CITY will provide the DEVELOPER with any
changes in HOME regulations or program limits that affect the project,
including but not limited to income limits, property value limits and rent
limits.
C. Progress Inspections. The 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 XII — Equal Employment Opportunity
During the performance of this contract, the DEVELOPER agrees as follows:
A. Nondiscrimination. The 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. Solicitation/Advertisement. The DEVELOPER will, in all solicitations or
advertisements for employees placed by or on behalf of the DEVELOPER, state
that all qualified applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.
C. Labor Unions. The DEVELOPER will send to each labor union or representative
of workers with which it has a collective bargaining agreement or other contract
or understanding, a notice to be provided by the DEVELOPER'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,
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1965, and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
D. Executive Order 11246. The 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.
• 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.
• 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.
• 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 XIII — Labor, Training & Business Opportunity
The DEVELOPER agrees to comply with the federal regulations governing training,
employment and business opportunities as follows:
A. Performance. 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. Compliance. The 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
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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. Subcontract. The 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. Conditions. 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 XIV—Compliance with Federal, State & Local Laws
A. Civil Rights Act. 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. The 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). The 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. The 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:
23 of 36 City of Yakima 4/2/2024
1. Certification Regarding Debarment, Suspension Or Ineligibility And
Voluntary Exclusion—Primary And Lower Tier Covered Transactions
a) The 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;
iv. 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;
v. Where the DEVELOPER is unable to certify to any of the
statements in this Contract, the DEVELOPER shall attach an
explanation to this Contract;
vi. 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; and
vii. 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 is presently debarred,
suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from participation in this transaction by
any Federal department or agency.
24 of 36 City of Yakima 4/2/2024
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. Affirmative Action & Nondiscrimination Obligations. 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. Lead Based Paint.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 Preservation. 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. Architectural Barriers Act of 1968 as amended, 42
USC Section 4151 et seq., implementing regulations, and Chapter 70.92
RCW.
6. Property Standards.Accessibility Standard as set forth in 24 CFR 92.251(a).
7. Clean Air & Other Environmental Protections. 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. Employment & Other Economic Opportunities. 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&Safety Standards. Contract Work Hours and Safety
Standards Act, 40 USC Chapter 5, Sections 327-333, (Overtime
Compensation).
10. Rate of Wages. Davis-Bacon Act, as amended, 40 USC Chapter 3, Sections
276a — 276a — 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates).
11. Procurement. 2 CFR Part 200 (Procurement Standards) and Federal
Management Circular, FMC 74-4.
12. Relocation & Acquisition. The Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended, and regulations
contained in 24 CFR Parts 42 and 570.
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13. Nondiscrimination in Federally Assisted Programs. 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. Nondiscrimination Based on Age. Age Discrimination Act of 1975 (24 CFR
146).
15. Nondiscrimination in Housing. Fair Housing Act (24 CFR 100, CFR 107
and 24 CFR 1).
16. State Housing Standards. Washington State/Local Building Codes/Housing
Quality Standards (24 CFR 882.109).
17 Minority &Women Owned Businesses. WBE/MBE (24 CFR 85.36 (e)).
C. Applicable Licensing & Certifications. The 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. Taxes & Other Insurances. The 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, the DEVELOPER shall pay the same before it becomes due.
Section XV— 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 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 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
26 of 36 City of Yakima 4/2/2024
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 XVI —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.
Section XVII — 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 proceed with the work with such diligence as will ensure 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.
Section XVIII—Close Out
Within thirty (30) days of the contract closing date, the 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
27 of 36 City of Yakima 4/2/2024
documentation delivered (including the final invoices and final report), covenants are
recorded against the property, 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.
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 XIX— Reporting Responsibilities
DEVELOPER agrees to submit any and all quarterly reports required by HUD or the CITY
to the AGENCY on the following due dates: October 1, January 1, April 1, and July 1,
next following the date 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 XX - Inspection, Monitoring & Access to Records
A. The CITY reserves the right to inspect, monitor, and observe work and services
performed by the DEVELOPER at any and all reasonable times. The 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.
28 of 36 City of Yakima 4/2/2024
B. The records relating to this Contract shall be promptly furnished to the City upon
request. Until the expiration of six (6) years after the termination date of this Contract,
or for a longer period of time if required by law or the Washington State Secretary of
State's record retention schedule, DEVELOPER shall retain and provide the City access
to all of the DEVELOPER's books, documents, papers and records which are related to
this Contract. If any litigation, claim, or audit is started before the expiration of the six-
year period or retention schedule time period, the records shall be retained until all
litigation, claims, or audit findings involving the records have been resolved.
C. All records relating to the DEVELOPER and this Contract must be made available
to the City and produced to third parties, if required, pursuant to the Washington State
Public Records Act, Chapter 42.56 RCW, or by law. All records relating to this Contract
must be retained by DEVELOPER for the minimum period of time required pursuant to
the Washington State Secretary of State's records retention schedule.
D. The terms and conditions of this section shall survive any expiration or
termination of this Contract.
Section XXI — 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
additional insured endorsements as proof of liability insurance in the minimum
amount of Two Million Dollars ($2,000,000.00) that clearly states who the
provider is, the amount of coverage, the policy number, and when the policy and
provisions provided are in effect (any statement in the certificate to the effect of
"this certificate is issued as a matter of information only and confers no right upon
the certificate holder" shall be deleted). Said policy shall be in effect for the
duration of this Contract. The certificate of insurance and additional insured
endorsements shall name the City of Yakima, its elected 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. 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 requirements contained herein, as well as the City of Yakima's
review or acceptance of insurance maintained by the DEVELOPER, is not
intended to and shall not in any manner limit or qualify the liabilities or obligations
assumed by the DEVELOPER under this Contract.
C. Commercial Automobile 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 additional insured endorsements as proof of
commercial automobile liability insurance with minimum liability limit of Two
Million Dollars ($2,000,000.00) combined single limit bodily injury and property
damage. Automobile liability will apply to "Any Auto" and be shown on the
certificate. The certificate shall clearly state who the provider is, the amount of
29 of 36 City of Yakima 4/2/2024
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
certificate of insurance and additional insured endorsements shall name the City
of Yakima, its elected 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. 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 requirements contained herein,
as well as the City of Yakima's review or acceptance of insurance maintained by
the DEVELOPER, is not intended to and shall not in any manner limit or qualify
the liabilities or obligations assumed by the DEVELOPER under this Contract.
D. Workers' Compensation. DEVELOPER and all subcontractor(s) shall at all
times 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 $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 subcontractor(s). DEVELOPER is responsible to ensure subcontractor(s)
have insurance as needed. Failure of subcontractors(s)to comply with insurance
requirements does not limit DEVELOPER's liability or responsibility.
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.
F. Insurance Coverage. 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 neither the City nor its
insurance providers shall contribute to any settlements, defense costs, or other
payments made by DEVELOPER's insurance. All additional insured
endorsements required by this Section shall include an explicit waiver of
subrogation.
G. Maintenance of Insurance. If at any time during the life of this Contract, or any
extension, DEVELOPER fails to maintain the required insurance in full force and
effect, all services or requirements under this Contract shall be discontinued
immediately. Any failure to maintain the required insurance may be sufficient
cause for the City to terminate the Contract.
H. Verification of Coverage. Failure of the City to demand verification of coverage
with the insurance requirements outlined in this Section, or failure of the City to
identify a deficiency from the insurance documentation provided, shall not be
construed as a waiver of DEVELOPER's obligation to maintain such insurance.
30 of 36 City of Yakima 4/2/2024
Section XXII —General Conditions
A. Notice & Communications. All notices or other communication which shall or
may be given pursuant to this Contract shall be in writing and shall be delivered
by personal service, or by registered mail addressed to the 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"d Street
Yakima, Washington 98901
Copy To: Office of Neighborhood Development Services
City of Yakima
129 N 2"d Street
Yakima, Washington 98901
DEVELOPER address: Yakima Valley Partners Habitat for Humanity
21 W. Mead Ave. Ste # 110
Yakima, Washington 98902:
B. Title & Headings. Title and paragraph headings are for convenient reference
and are not a part of this Contract.
C. Contract Conflict. In the event of conflict between the terms of this Contract and
any terms or conditions contained 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. Wavier & Breaches. No waiver or breach of any provision of this Contract shall
constitute a waiver of a subsequent breach of the same or any other provision
hereof, and no waiver shall be effective unless made in writing.
E. Contract Enforcement. The parties hereto agree that this Contract shall be
construed and enforced according to the laws 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.
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F. Modified to the Extent Necessary. 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 unenforceable under
the laws of the State of Washington or 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. Anti-Kickbacks. The 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. Contract Work Hours&Safety Standards.The 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. Inclusion of Anti-Kickbacks & Contract Work Hours and Standards —
Subcontracts. The 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. Delegation of Duties. The obligations undertaken by the 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 or assignment of such service
or any part thereof by another person or agency. The City has sole discretion in
determining whether to provide its consent.
K. Binding &Modifications. 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.
L. Indemnify & Hold Harmless. DEVELOPER agrees to release, defend,
indemnify and hold harmless the City, its elected and appointed officials, officers,
employees, agents, representatives, insurers, attorneys, and volunteers from any
and 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 Association, or any of Association's agents,
subcontractors, volunteers, or participants in performance of this Contract.
Nothing contained in this Section of this Contract shall be construed to create a
liability or a right of indemnification in any third party.
The provisions of this Section regarding indemnification and the Section above
regarding insurance coverage shall survive the termination of this Contract.
M. Independent Contractors. The DEVELOPER and its employees and agents
shall be deemed to be independent contractors, and not agents or employees of
32 of 36 City of Yakima 4/2/2024
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. Availability of Funds. 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. Disclosure of Confidential Information. The use or disclosure by any party of
any confidential information concerning a recipient or client for any purpose not
directly connected with the City's or the 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. Reassignment of Services. The 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, at its sole discretion. All terms and conditions
of this Contract shall apply to any approved subcontract or assignment related to
the Contract.
Q. Illegal Provisions. 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.
R. Survival. Any provision of this Contract which imposes an obligation after
termination or expiration of this Contract shall survive the term or expiration of
this Contract and shall be binding on the parties to this Contract.
33 of 36 City of Yakima 4/2/2024
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 2910 W. Arlington Ave. and sell it to a qualified low-income, first-time
homebuyer and monitor the "Affordability Period" for a period of no less than
FIFTEEN (15) 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 FIFTEEN (15) year
affordability period in exchange for all net proceeds redeemed from the sale of the
home located at 2910 W. Arlington Ave.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create another affordable single-family residence within in the City of Yakima.
Objectives
1. Prepare the 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 FIFTEEN (15) 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 290 W. Arlington Ave. for a period of no less than a
FIFTEEN (15) year affordability period as per HOME Investment requirements.
F.) BUDGET
Yakima Valley Partners Habitat for Humanity will be reimbursed up to $87,500
between the contract execution date and end upon completion of construction, for
eligible activities, subject to the terms and conditions of the Contract.
34 of 36 City of Yakima 4/2/2024
Exhibit "C"
(THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION")
35 of 36 City of Yakima 4/2/2024
Exhibit "D"
Subrecipient Request for Funding Application
Is the attached proposal as submitted to the City of Yakima on November 2, 2022.
36 of 36 City of Yakima 4/2/2024
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 7.H.
For Meeting of:April 2, 2024
ITEM TITLE: Resolution authorizing a contract with Yakima Valley Partners
Habitat for Humanity for the development of a new single-family
home located at 2910 W Arlington Ave
SUBMITTED BY: Rosylen Oglesby,Assistant City Manager
SUMMARY EXPLANATION:
As the annual recipient of HOME Investments funds from the U.S. Department of Housing and
Urban Development (HUD), the City of Yakima must invest these funds in affordable housing
within its jurisdiction. By granting available HOME funds, the City of Yakima allows for continued
decent, safe, and affordable housing within the City of Yakima that serves low-to-moderate-
income citizens.
Yakima Valley Partners Habitat for Humanity, as a Qualified CHDO, is requesting Eighty-Seven
Thousand Five Hundred Dollars ($87,500.00)to assist with the construction of a new Single-
Family low-income housing unit.
Projects that receive funding from the City of Yakima HOME program must be consistent with the
City Consolidated Plan, which guides HOME funding, and the City Comprehensive Plan.
ITEM BUDGETED: Yes
STRATEGIC PRIORITY: Economic Development
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution.
ATTACHMENTS:
Description Upload Date Type
2
RESOLUTION NO. R-2024-
A RESOLUTION authorizing an agreement with Yakima Valley Partners Habitat for Humanity
for up to Eighty-Seven Thousand Five Hundred Dollars ($87,500) in U.S.
Department of Housing and Urban Development (HUD), HOME Investment
Partnerships Program (HOME) funds for the construction of a low-income
housing unit at 2910 W. Arlington Avenue.
WHEREAS, the City received money from the HUD's HOME Program under CFDA
Contract# 14.239 in the amount of$573,858, which must be used to invest in affordable housing
in the City of Yakima and
WHEREAS, this proposal's existing lot of record will be developed with a single-family
home at 2910 W. Arlington Avenue, Yakima, WA 98902.
WHEREAS, Yakima Valley Partners Habitat for Humanity has a proven track record of
creating community-based housing for the benefit of low to moderate-income homeownership
units within the City of Yakima and
WHEREAS, Yakima Valley Partners Habitat for Humanity is a Certified Community
Housing Development Organization (CHDO) 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 seek funding for the land acquisition and development, which are eligible activities under the
HOME program, and
WHEREAS, pursuant to federal requirements, the newly constructed single-family
dwelling 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 fifteen (15) 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 Valley Partners Habitat for
Humanity to provide funding for land acquisition and development costs for an affordable housing
unit with federal monies provided by HUD through the HOME Investment 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 for Eighty-Seven Thousand Five Hundred Dollars ($87,500) in Federal
Housing and Urban Development HOME Investment funds to acquire land and construct a single-
family housing unit for a low—to moderate-income person within the City of Yakima. A copy of
the agreement is attached hereto.
ADOPTED BY THE CITY COUNCIL this 2nd day of April, 2024.
Patricia Byers, Mayor
ATTEST:
Rosalinda Ibarra, City Clerk
3
CONTRACT BETWEEN THE CITY OF YAKIMA
OFFICE OF NEIGHBORHOOD DEVELOPMENT SERVICES
AND DEVELOPER—YAKIMA VALLEY PARTNERS HABITAT FOR HUMANITY
(2910 W. Arlington Ave.)
1. CFDA: 14.239 HOME INVESTMENT PARTNERSHIP PROGRAM
2 DEVELOPER/AWARDEE: Yakima Valley Partners Habitat for Humanity
3. HUD Entity Type: DEVELOPER
4. Address: 21 W. Mead Ave. Ste 110, Yakima, WA. 98902
5. Phone. (509) 453-8077
6. Contact Person: Meloney Rosen, Director of Yakima Valley Partners Habitat for
Humanity
7. Title of Service or Program being funded: New Construction of single-family
homes located at: 2910 W. Arlington Ave., Yakima, WA 98902.
8. Awarding Federal Agency: U.S. Department of Housing and Urban
Development.
9. Unique Entity Identifier Number: HU9AXMBCSDA2
10. Federal Award Year and Federal Award Number: 2020, 2021, & 2022; M20-
MC530203; M21-MC530203; M22-MC530203.
11. Amount of Contract Award: $$87,500 (HOME) CFDA Contract# 14.239
12. The term of this Contract shall commence upon the execution date of the
Developer's receipt of "Letter to Proceed" from the 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 April 2,
2025, at midnight, unless sooner terminated by either party in accordance with
Section XV of Exhibit "A," attached hereto and incorporated herein by this
reference.
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-2024- , a copy of which
is attached hereto as Exhibit "C" and incorporated herein by this reference.
14. Final Contract payment shall be subject to the 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
1 of 36 City of Yakima 4/2/2024
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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.
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:
Dave Zabell, Interim City Manager Meloney Rosen
Title: Executive Director
Date:
Date:
ATTEST
Rosalinda Ibarra, City Clerk
City Contract No.:
2 of 36 City of Yakima 4/2/2024
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EXHIBIT "A"
TERMS AND CONDITIONS
This Contract is to provide HOME Investment Partnerships Program (HOME)funding for
the construction of 1 new affordable homeownership units in the City of Yakima. All
housing developed with funding provided by this Contract shall be pursuant to the HOME
Program's and this Contract's regulations. The term of this Contract and the provisions
herein shall be extended to cover the affordability period hereby designated as fifteen
(15) years. The affordability period in this Project will be activated on the date after the
Developer has provided the City staff with a project completion report upon initial
occupancy of the units, and this information will be entered into H.U.D.'s Integrated
Disbursement Information System (IDIS) System.
All terms used in this Contract shall be consistent with the HOME Program and its
implementing regulations at 24 C.F.R. Part 92. Developer agrees to comply with all
requirements related to this Project as outlined in the Code for Federal Regulations listed
in 24 C.F.R. Part 92 and 24 C.F.R. Part 58 (as amended). In any instance where the City
requirements are more restrictive than the Code for Federal Regulations, the City
requirements shall take precedence over the Federal Regulations. The Developer, with
this Contract, intends, declares, and covenants that the regulatory and restrictive
covenants set forth herein governing the use, income, occupancy, sale, lease, or transfer
of the assisted HOME units shall be binding upon the Developer for such term, and are
not merely personal covenants of the Developer, but are contractual in nature.
WHEREAS, the City is the recipient of a U.S. Department of Housing and Urban
Development (H.U.D.) grant under the HOME Investment Partnership Provisions of the
Cranston-Gonzales National Affordable Housing Act (42 U.S. C 12742) and will
administer said grant; and
WHEREAS, the City of Yakima, as a recipient of HOME Investment Partnerships
Program Funds from the U.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 an eligible CHDO,
that maintains, develops, and constructs affordable housing in the State of Washington
and is eligible to participate in the City's service area(s) under the provisions of Section
212 of the Cranston-Gonzales Act (42 U.S. C 14742) as amended by the Housing and
Community Development Act of 1992; and
NOW, THERFORE the AWARDEE/DEVELOPER hereby agrees to undertake, that
certain community development or housing assistance project described in Exhibit "B",
Project Summary (hereinafter sometimes referred to as "the Project") for the following
locations:
1. 2910 W Arlington Avenue
pursuant to the terms and conditions of the Contract and its Exhibits.
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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 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 be rendered or provided by the DEVELOPER as described here.
D. PROJECT — is defined in Section II - Project 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.
Section II- Project
DEVELOPER's Project will develop one (1) single-family home that will be sold to low-
income, qualified first-time homebuyers.
Section III —Term
A. GENERAL
The DEVELOPER expressly agrees to complete all work required by this Contract in
accordance with the timetable set forth as follows:
Milestone Deadline
Project Start Date: Date of signature.
Project Completion Date: April 2, 2025
Duration of Contract: Through the end of the Affordability Period (see Section B)
The amount of grant funding that the City hereby sub-grants to the DEVELOPER is
Eighty Seven Thousand Five Hundred ($87,500.00) for the Project.
This Exhibit A consists of one (1) undeveloped lots in the City of Yakima owned by the
Developer. Public water and sewer are provided to the unit(s) and available from the City
of Yakima. Electrical service is also available at the sites.
The new affordable housing units will be designated HOME homeownership units and,
as such, shall only be sold to income-eligible buyers for the affordability period.The buyer
shall have an income at or below 80%A.M.I. (area median income) based on the current
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H.U.D. limits at the time of execution of the sale. Income eligibility shall be determined
using the "Technical Guide for Determining Income and Allowance for the HOME
Program"provided by the U.S. Department of Housing and Urban Development(H.U.D.)
and shall include source documentation.
The sales price of each unit may not exceed 95 percent of the maximum purchase prices
for the area. The HOME-assisted unit(s) shall remain in compliance with the HOME
Program (24 C.F.R. Part 92.252(e)) for FIFTEEN (15) years after the Project is officially
completed. The Project is officially completed when the property construction is
completed, the property passes ongoing and final construction inspections by City staff,
a Certificate of Occupancy is issued by the jurisdictional building inspections department,
HOME-assisted units are occupied, and the required beneficiary data is submitted to the
City staff to enter into H.U.D.'s Integrated Disbursement Information System (IDIS)
System.
B. AFFORDABILITY
In addition, this project is subject to ongoing compliance requirements of HOME for
FIFTEEN (15) years from the date the project is completed. The project is considered
completed when the City draws the final drawdown of HOME funds. During this
compliance period, the DEVELOPER will ensure continued compliance with HOME
requirements. For homebuyer units, this includes monitoring units for principal residency
and recapture of funds at the time of resale. A restrictive covenant shall be executed for
the total amount of assistance and will include the applicable HOME requirements,
including resale/recapture provisions and property use restrictions, to ensure the
enforcement of the HOME requirements. These requirements, which pertain to
occupancy, income, and an affordability period, are required in order to maintain the
development subsidy investment as a forgivable loan in the affordable housing units for
the compliance period. The covenant shall be executed and attached to the property
prior to final payment being made with transfer of the property from DEVELOPER to a
third party.
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. The aforementioned document will be considered to be a part and
portion of this Contract by reference. The DEVELOPER will complete the construction of
the one (1) unit by April 2, 2025, including the sale of the units.
The DEVELOPER is required to submit performance reports on program/project status
and activities through project completion as requested by the City staff The Developer
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will allow and help facilitate required inspections and monitoring of the Project by City
staff. The DEVELOPER agrees to execute the covenant and attach it the property prior
to final payment being made with transfer from DEVELOPER to a third party. Termination
of the Contract will occur automatically upon the expiration of the Contract period. Project
Extension Request must be approved by the CITY.
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 caused by 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 (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):
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 FIFTEEN (15) 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. The aforementioned Work tasks will be performed in essentially
the manner proposed in the DEVELOPER's proposal as received by the AGENCY on
November 2, 2022. The aforementioned document will be considered to be a part and
portion of this Contract fully incorporated herein.
1. Eligible Use of Funds. HOME funds available under this Contract will be used
for the construction of the property. Other eligible costs include the cost of
construction, legal and recording fees, environmental review costs, and survey
costs or associated costs for site review. Other eligible costs will be paid by the
DEVELOPER of the local match: Project Soft Costs must be "reasonable and
necessary." These costs may include the following:
Professional Related Costs:
• Loan origination fees
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• Credit reports fees
• Title report and update fees
• Recordation fees
• Preparation and filing of legal document fees
• Appraisal Report fees
• Market Study Report fees
• Attorney's fees
• Loan processing fees
• Developer fees
Construction Related Costs:
• Architectural fees
• Engineering fees
• Preparation of work write-ups/cost estimate fees
• Builder's fees
Other Costs:
• Project audit costs
• Affirmative marketing and fair housing costs
• Relocation costs
Eligible Hard Costs must be "reasonable and necessary."These costs may
include the following:
• Costs to meet the applicable building standards in effect at the
time a building permit is obtained from the locality
• Costs to make essential improvements, including the actual
costs of construction or rehabilitation
• Energy-related repairs or improvements
• Improvements necessary to permit use by handicapped persons
• Abatement of lead-based paint hazards
• Costs to repair or replace major housing systems in danger of
failure in existing structures
• Costs to demolish existing structures
• Costs for improvements to the project site and utility connections
• Costs to acquiring optioned improved or unimproved land for
new construction or rehabilitation projects
• Incipient repairs and general property improvements of a non-
luxury nature
2. Funded Amount and Other Funding Sources. The CITY is hereby providing
from the F.Y. 2020, F.Y. 2021, and F.Y. 2022 CHDO set aside funding in the
amount of up to eighty-seven thousand, five hundred dollars and 00/100
($87,500), for activities identified in this Contract and listed in the Project Budget.
The funds are granted to the Developer for the construction of one (knew
affordable homeownership units in the City of Yakima. The Developer will provide
any additional funding necessary over and above the financial commitment to
complete the Project as approved in the application for HOME assistance. If the
Project comes in under budget, the Developer will only be reimbursed for actual
eligible costs. Also, volunteer hours and additional funding beyond HOME funds
will be counted as local matches.
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3. Maximum HOME Subsidy. H.U.D. requires that the maximum HOME per-unit
subsidy not be increased above 240 percent of the base limits authorized by
§211(d)(3)(ii) of the National Housing Act. HOME subsidy under this Contract is
$87,500 for 2910 W Arlington Avenue, and does not exceed this regulation.
The property is located within the City of Yakima limits.
Section V— Reimbursement of Expenses & Developer Fees
A. GENERAL.
Project expenses(excluding developer fees) 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 with 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 eligible 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 eligible 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. Pay requests with documentation/invoices for
requested costs may be submitted monthly during the Project. Exceptions to this
practice may be made based on the amount and frequency of requests based on
the financial needs of the contractors. 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.
The Developer must notify the City's Staff at the same time notification is made
to the local government for the following inspections (if applicable):
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a) Foundation Inspection
b) Slab Inspection
c) Rough-In Inspection
d) Insulation Inspection
e) Final Inspection
Note: Failure to notify the City staff for inspections may result in work
having to be redone at the Developer's cost so that the inspection can be
completed.
C. CHANGE ORDERS
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.
Change orders may occur during the course of construction, either initiated by
the Developer. All change orders must be submitted for review to the City staff
prior to approval to ensure that the scope of the Project is not altered.
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 ONDS prior to the
submittal of claims against the budget.
Section VI —Roles and Responsibilities
A. Incur Costs. The Developer will not incur costs, make any commitments, or take
any physical action on a property to be assisted with HOME funds until approved
by City staff. Environmental clearance of the sites and a Removal of Grant
Conditions and Authority of Use H.U.D. Funds must be in place prior to any
physical activity on the project site.
B. Eligible Applicant. The DEVELOPER commits to providing an eligible applicant
according to the recognized HOME guidelines for any HOME-assisted unit. The
occupant's/applicant's income will fall within the required H.U.D. guidelines for
L.M.I. persons to qualify for assistance. The DEVELOPER shall provide the
CITY's Office of Neighborhood Development Services staff with a copy of the
application and income verification of the proposed renters/occupants prior to the
occupancy of the units. Verification includes all third-party verification in order to
ensure that the low-to-moderate income requirements are met. All units funded
by this Contract are subject to the income guidelines.
The DEVELOPER shall provide the CITY copies of recorded mortgages, deeds,
and any other instruments executed related to the HOME-assisted property.
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DEVELOPER agrees to provide the necessary personnel and equipment to
oversee, manage, and maintain any units for which HOME funds are provided.
The HOME units shall be inspected by the jurisdictional building inspector and
shall meet all local and state building codes as applicable for the City and/or City
of Yakima prior to occupancy. A copy of the permit to occupy the unit for each
structure will be submitted to the CITY prior to final payment. The City staff shall
provide guidance on HOME compliance and assist the Developer as needed in
the review of the applicant's application and verifications to ensure eligibility
within HOME income limits, providing a suggested language for inclusion of
HOME requirements in sales documents if applicable; and applicable
procurement of construction, materials, small purchases, and contract labor. The
staff will review and approve requests for payment and conduct site visits to
confirm construction progress. Payment will be made within twenty days of
approved invoices/pay requests.
C. Participating Jurisdiction. As a HOME Participating Jurisdiction, the CITY will
be primarily responsible for implementing this Contract and for day-to-day
communications with the Developer. As such, references to the"City HOME staff'
or "City Staff'within this Contract should be construed to indicate that the Office
of Neighborhood Development Services (ONDS) will communicate with the
DEVELOPER on behalf of the CITY and as its administrative agent relative to the
HOME program. In the event the CITY replaces or terminates ONDS as its
administrative agent for the HOME program, it will provide notice to the
DEVELOPER as provided for herein. The DEVELOPER further agrees to fully
cooperate with the ONDS staff or with any future administrative agent designated
by the CITY as the City's authorized agent for purposes of administering its
HOME Program.
D. Inspection of Records. The 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.
E. Audit of Records. The 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.
H. Unauthorized Use. 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.
Return of Funds 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 the
DEVELOPER is unable to continue and/or provide services as described in
Exhibit B.
Section VI — 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. Environmental Review
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No HOME project funds will be advanced, and no costs can be incurred, until the
City has conducted 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 the project. Notwithstanding any
provision of this Contract, the parties hereto agree and acknowledge that 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.
The DEVELOPER shall comply with all Federal, State, and Local Laws and
Regulations for the duration of this Project, including but not limited to the
Cranston-Gonzales Act, as amended by the Housing and Community
Development Act of 1992, regulations continued in 24 C.F.R. Part 92; Federal
O.M.B. Circular A-110 Attachments B, F, H (paragraph 2)and 0, O.M.B. Circular
A-122, zoning, building, housing and other codes and regulations of the
jurisdiction where Project is located; and such other Federal, State, and Local
Laws, rules and regulations as may apply to the Project including
Nondiscrimination and Fair Housing Laws.
The City of Yakima, through the AGENCY retains environmental review
responsibility for purposes of 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 completed on 2910 W Arlington Avenue —
04/28/2023. All mitigation if 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 XIV 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 Contract to the City and may result in termination of this Contract. The
DEVELOPER expressly agrees to do all things necessary and take all necessary
steps to facilitate the environmental review of the Project.
B. Property Standards.
According to 24 CFR 92.251 Property Standards, Housing that is purchased,
constructed, or rehabilitated with HOME funds must meet all applicable local,
state, and/or CITY construction standards, ordinances, and zoning ordinances at
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the time of project completion and throughout the period of affordability. In the
absence of a local code for new construction or rehabilitation, HOME-assisted
new construction or rehabilitation must meet, as applicable, one of three model
codes: Uniform Building Code (ICBO), National Building Code(BOCA), Standard
(Southern) Building Code (SBCCI); or the Council of American Building Officials
(CABO) one or two family code; or the Minimum Property Standards (M.P.S.) in
24 CFR 200.925 or 200.926 and/or minimum property standards established by
the CITY on behalf of the HOME Program. All construction will be inspected by
the City staff prior to receipt of final payments.
The housing must meet the accessibility requirements at 24 C.F.R. part 8, which
implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).
Covered multifamily dwellings, as defined at 24 CFR 100.201, must also meet
the design and construction requirements at 24 CFR 100.205, which implement
the Fair Housing Act (42 U.S.C. 3601-3619). The Fair Housing Act requires that
all multi-family dwellings must meet the design and construction requirements at
24 CFR 100.205. Refer to CABO/ANSI section A117.1 for specific requirements.
A Section 504 Physically handicapped person is defined as an individual who has
a physical impairment, including impaired sensory, manual, or speaking abilities,
that results in a function limitation in gaining access to and using a building or
facility. The housing provides accessibility, adaptability, and accessible routes.
1. 504 Requirements for New Construction Projects: Projects with (5) or
more units will have at least 5% of the units accessible to individuals with
mobility impairments AND at least 2% of the units accessible to individuals
with sensory impairments. As this Project only consists of one (1) units, 504
requirements do not apply.
2. Fair Housing Act: The Fair Housing Act requires seven basic requirements
that must be met to comply with the access requirements, which are:
• An accessible building entrance on an accessible route
• Accessible common and public use areas
• Usable doors (usable by a person in a wheelchair)
• Accessible route into and through the dwelling unit
• Light switches, electrical outlets, thermostats, and other
environmental controls in accessible locations
• Reinforced walls in bathrooms for later installation of grab bars
• Usable kitchens and bathrooms
An owner of rental housing assisted with HOME funds must maintain the
housing in compliance with all applicable State and local housing quality
standards and code requirements, and if there are no such standards or
code requirements, the housing must meet the housing quality standards
in 24 CFR 982.401, for the entire length of the affordability period.
C. Property Restrictions
1. Restrictions on the Sale or Transfer of Land and Improvements.
Developer agrees that throughout the term of this Contract, and in order to
satisfy the requirements of the HOME Program, the Developer will not sell or
transfer any part of the project premises or any interest in it without the City's
prior written consent, including a transfer of all or part of the project premises
to any person that does not use the project premises for"affordable housing"
within the meaning of the HOME Program. Upon the occurrence of any of the
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above, the Developer will provide immediate payment in full of the entire
principal under this Contract.
2. Covenants to Run with Land. The Developer agrees to execute and record
a restrictive covenant instrument that is secondary to all other financing
and/or security instruments, any other use restrictions, easements, liens, or
other encumbrances of record, except for those previously disclosed on a
commitment for title insurance issued to the City or those explicitly approved
by the City and the City Attorney. Developer intends, declares, and
covenants, on its behalf and on behalf of all future holders of any interest in
and to the project premises described in "Exhibit A" during the term of this
Contract, that this Contract and the covenants and restrictions set forth in this
Contract regulating and restricting the use, occupancy, sale, lease or transfer
of the Premises (i) shall be and are covenants running with the land,
encumbering the land for the term of this Contract, binding upon the Grantee's
successors in title and all subsequent Grantees and tenants or transferee of
the premises, (ii) are not merely personal covenants of the Grantee, but are
contractual in nature and condition precedent to the Grantee obtaining the
HOME Grant, and (iii) shall bind the Grantee and the Grantee's grantees,
lessees, heirs, assigns, personal representatives for transferee during the
term of this Contract. The Grantee hereby agrees that any and all
requirements of the laws of the State of Washington to be satisfied in order
for the provisions of this Contract to constitute property use restrictions and
covenants running with the land shall be deemed to be satisfied in full, and
that any requirements or privileges of the estate are intended to be satisfied,
or in the alternative, that an equitable servitude has been created to ensure
that these restrictions run with the land. For the Term of this Contract, each
and every contract, deed, or other instruments hereafter executed conveying
the project premises described in "Exhibit A," or a portion thereof, shall
expressly provide that such conveyance is subject to this Contract provided;
however, the covenants contained herein shall survive and be effective
regardless of whether such contract, deed, or other instruments hereafter
executed conveying the project premises, or a portion thereof, specifically
provides that such contract, lease or conveyance is subject to this Contract.
3. Affordability Restrictions.Any unit constructed on this property assisted
with HOME funds must remain occupied by a low to moderate-income
family/person for a period of FIFTEEN (15) years to meet the affordability
required by the HOME investment in the Project. The Developer agrees
to enforce the affordability requirements under 24 CFR 92.252(e) as
applicable and agrees to repay the HOME funds if the housing does not
meet the affordability requirements for the specified time period.
For new construction homeownership projects, the period of affordability
is FIFTEEN (15) years. The affordability period in homeownership
projects will be activated on the date after the Developer provides the
City with a project completion report, and this form has been entered into
H.U.D.'s Integrated Disbursement Information System (IDIS) detailing
the following:
o Household size
o Gross annual household income
o Racial and ethnic characteristics
1. Property owner's name
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2. Whether any household member is disabled
3 Designation as a mobility or sensory-handicapped unit
4 Sales date
5 Bedroom Size
o Purchase Price
o Date of Certificate of Occupancy
Project completion reports are to be submitted by the Developer when the
HOME-assisted unit is purchased and occupied, no later than 90 days after
the issue of the Certificate of Occupancy. Developer agrees to execute the
Restrictive Covenant at or before the completion of the Project. If Developer
does not comply with providing project completion reports within the 90-day
period following the issuance of the Certificate of Occupancy, the
organization will be ineligible to apply for additional HOME funding, and any
current awards will be revoked.
The affordability period does not end upon early payoff of the HOME
assistance, if applicable.
4. Maintaining Homeownership Housing Affordability: CFR 92.254. The
income of each unit must be determined initially using Section 8 (Part 5)
definition of annual (gross) income.
5. Income Determinations. The Developer agrees to perform the income
determination requirements of 24 CFR 92.203.
Eligible Incomes: the Developer must determine that each family or individual
is income-eligible. The Developer is required to use third-party source
documents to evidence annual income (e.g., wage statement, interest
statement, and unemployment compensation statement) for the family or
individual. Owners must use the Part 5 definition as defined in the"Technical
Guide for Determining Income and Allowance for the HOME Program"
provided by the U.S. Department of Housing and Urban Development
(H.U.D.).
D. CHDO Responsibilities
1. Expenditure Requirements. The DEVELOPER will ensure that any
expenditure of HOME funds will be in compliance with the requirements
at 24 CFR 92.206, Eligible Costs, and acknowledges that HOME funds
will only be provided as reimbursement for eligible costs incurred,
including actual expenditures or invoices for work completed.
2. Owner-Occupied Qualifications. The DEVELOPER will ensure that all
HOME assisted units will be in compliance with 24 CFR 92.254
(Qualification as affordable housing, Homeownership), including
documenting that the property is eligible under 24 CFR 92.254(a)(1)—(2),
and will maintain compliance during the minimum compliance period.
3. Project Beneficiary Information. The designated HOME-assisted units
of this PROJECT will meet the affordability requirements as found in 24
CFR 92.254 (Qualification as affordable housing, Homeownership) as
applicable. The DEVELOPER shall collect and maintain Project
beneficiary information pertaining to household size, income levels, racial
characteristics, and the presence of Female-Headed Households in order
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to determine low and moderate-income benefits in a cumulative and
individual manner. Income documentation shall be in a form consistent
with HOME requirements as stated in the H.U.D. Technical Guide for
Determining Income and Allowances Under the HOME Program.
4. Notes & Mortgages. If the Project is to be owner-occupied, the
DEVELOPER shall ensure 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)).
5. HOME Match. DEVELOPER will provide any documentation required by
the AGENCY regarding match as may be required to document match for
purposes of the HOME program.
6. Lease Purchase Option. If the property is sold through a lease-purchase
contract, the DEVELOPER will ensure compliance with 24 CFR
92.254(a)(7), as modified by the 1999 Appropriations Act, Section 599B.
7. Monitoring. DEVELOPER will be monitored by the AGENCY for
compliance with the regulations of 24 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
Five (5) years after completion and closeout of the CONTRACT.
E. Other Federal Requirements
1. H.U.D. Generally Applicable Definitions & Requirements; Waivers.
The Developer agrees to conform to all Federal and State regulatory
requirements, including the Federal requirements set forth in 24 C.F.R.
Part 5, Subpart A, those described in 24 C.F.R. Part 92, Subpart H,
Section 350-359, as well as the City's Housing and Property Standards
and the applicable Yakima Municipal Code sections.The Federal and City
requirements include nondiscrimination and equal opportunity; disclosure
requirements; debarred, suspended, or ineligible contractors; and drug-
free workplace.
2. Nondiscrimination & Equal Opportunity: The Contract is made
available in conformity with the non-discrimination and equal opportunity
requirements set forth in 24 C.F.R. Part 511.10(m), as follows: The
requirements of Executive Order 11063, and with Title VI of the Civil
Rights Act of 1964, 42 U.S.C. 2000d as amended by Executive Order
12259 (3 C.F.R., 1959- 1963 Comp., p. 652 and 3 C F.R., 1980 Comp.,
p. 307). The Act prohibits discrimination against individuals on the basis
of race, color, religion, sex, or national origin in the sale, rental, leasing,
or other disposition of residential property or in the use or occupancy of
housing assisted with Federal funds. The prohibitions against
discrimination on the basis of age under the Age Discrimination Act of
1975, 42 USC 6101-07, and the prohibitions against discrimination
against handicapped individuals under Section 504 of the Rehabilitation
Act of 1973, 29 USC 794. The nondiscrimination requirements in Section
282 of the Act are applicable.
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3. Fair Housing: The Fair Housing Act (42 U.S.C. 3601-19) and
implementing regulations at 24 C.F.R. part 100 et seq.; The Act prohibits
discrimination in the sale of housing, the financing of housing, or the
provisions of brokerage servers against any person on the basis of race,
color, religion, sex, national origin, handicap, or familial status.
4. Disclosure & Anti-Lobbying Requirements: The Developer assures
that no Federal funds have been or will be paid by or on behalf of the
Developer to any person for influencing or attempting to influence an
officer or employee of an agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
Contract or any modification of any Federal contract, grant loan, or
Contract. If any other funds other than Federal funds have been paid or
will be paid to persons for influencing any above-named persons in
connection with this Project, the Developer shall complete and submit the
"Disclosure Form to Report Lobbying" in accordance with its instructions.
5. Affirmative Marketing(required for projects with five or more HOME-
assisted units): The Developer will follow an affirmative marketing plan
approved by the City. This affirmative marketing plan consists of the steps
of actions to provide information and otherwise attract eligible persons in
the housing market area to the available housing without regard to race,
color, national origin, sex, religion, familial status, or disability. (The
affirmative marketing procedures do not apply to families with Section 8
Tenant-Based Rental Housing assistance or families with Tenant-Based
Rental Assistance provided with HOME funds.)The Affirmative Marketing
Plan will include:
• Methods for informing the public, owners, and potential tenants
about Federal Fair Housing Laws and the County's Affirmative
Marketing Policy (e.g., the use of the Equal Housing Opportunity
logotype or slogan in press releases and solicitations for owners
and written communication to fair housing and other groups);
• Requirements and practices each owner must adhere to in order
to carry out the Affirmative Marketing Procedures and
Requirements (e.g., use of commercial media, use of community
contacts, use of the Equal Housing Opportunity logotype or
slogans, and display of Fair Housing poster);
• Procedures to be used by owners to inform and solicit applications
from persons in the housing market area who are not likely to
apply for the housing without special outreach (e.g., use of
community organizations, places of worship, employment centers,
Fair Housing groups, or housing counseling agencies);
• Records that will be kept describing actions taken by the owners
to affirmatively market units and records to assess the results of
these actions; and
• A description of how the Developer will annually assess the
success of affirmative marketing actions and what corrective
actions will be taken where affirmative marketing requirements are
not met.
6. Minority outreach: The Developer will take necessary affirmative steps
to ensure that minority firms and women's business enterprises are used
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whenever possible. Because this is a certified Community Housing
Development Organization, Procurement does not apply. Procurement
regulations at 24 C.F.R. Part 85.36(e) specify that MBE/WBE outreach
activities apply to all contracting opportunities facilitated by HOME-funded
activities, including contracts related to construction, rental assistance,
and HOME program administration. There are no monetary thresholds
that trigger MBE/WBE outreach requirements. They apply to all contracts
awarded in conjunction with HOME-assisted projects. The HOME
Construction Performance Standards Manual provides complete details
of the requirements that will be followed. HOME regulations require that
the following minimum affirmative steps are taken to ensure MBE/WBE
are afforded every opportunity to participate in HOME-generated
contracts.
• Placing minorities and women on solicitation lists;
• Assuring that M.B.E. and WBE firms are solicited whenever they
are potential sources;
• Dividing the total requirements, when economically feasible, into
smaller tasks or quantities to permit maximum participation by
small and minority business enterprises and women business
enterprises;
• Where the requirement permits, establishing delivery schedules
that encourage participation by small and minority business
enterprises and women business enterprises;
• Using the services and assistance of the Small Business
Administration and the Minority Business Development Agency of
the Department of Commerce and
• Requiring the prime contractor, if subcontractors are to be let, to
take all the same actions.
7. Religious Activities: The Developer agrees, as directly funded under the
HOME program, not to engage in inherently religious activities, such as
worship, religious instruction, or proselytization, as part of the assistance
funded under the HOME program. The Developer also agrees that
religious activities such as worship, religious instruction, or proselytization
will be offered separately, in time and location, and it is the beneficiary's
voluntary decision to participate. These separate religious activities
cannot be funded by the HOME program. Religious organizations
providing HOME assistance will not discriminate against program
beneficiaries based on religious character, belief, or affiliation. HOME
funds may not be used for the acquisition, construction, or rehabilitation
of structures to the extent that those structures are used for inherently
religious activities.
8. Davis Bacon. 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 C.F.R.,
Part 5), as amended.
Section VII — Repayment of Loan
A. Repayment. 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
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and/or HUD requirements.
B. Reversion. 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. Owner Occupancy. 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 24 CFR 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").
D. Program, CHDO Proceeds. No program income or CHDO proceeds are
anticipated for this Project. However, if CHDO proceeds are determined by
H.U.D. and/or the City to have been received, 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. The Developer must submit a CHDO Program
Income Plan to the City for approval. Program Income must be used for HOME-
eligible activities or other approved affordable housing activities. Income from the
sale, rental, or use of real estate by the project owner, Developer, or sponsor is
not treated as program income.
Section VIII —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 in
accordance with 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 24 CFR 92.301,
and are forgivable only under the terms in 24 CFR 92.301.
Any funds advanced to the CHDO as CHDO Operating Expenses must be expended in
compliance with 24 CFR 92.208. Any funds that the CHDO is permitted to retain as
CHDO proceeds from this project shall be used in compliance with 24 CFR 92.300(a)(2)
or as specified in this Contract.
Section IX— 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.
The Developer agrees to conform to all Federal and State regulatory requirements,
including the Federal requirements set forth in 24 C.F.R. 5, Subpart A, as well as the
City's municipal code, and Housing and Property Standards. The Federal and City
requirements include nondiscrimination and equal opportunity; disclosure requirements;
debarred, suspended, or ineligible contractors; and drug-free workplace.
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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 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 ensure adequate safeguards to
prevent lose, damage, or theft to the property. Any loss, damage, or theft
of the property shall be investigated and fully documented.
4. Adequate maintenance procedures shall be implemented to keep the
property in good condition.
5. If the 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.
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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 shall abide by all portions of 24 CFR 92.257.
Section X—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 24 CFR 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
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award of contracts or benefits of the HOME assistance. The Jurisdiction may grant
exceptions or forward the requests to HUD as permitted by 24 CFR 92.356, 85.36 and
84.42, as they apply.
Section XI —City Responsibilities
The CITY shall furnish the DEVELOPER with the following services and information from
existing CITY records and CITY files.
A. Requirements. The CITY shall provide to the DEVELOPER information
regarding its requirements for the PROJECT.
B. Regulation Updates. The CITY will provide the DEVELOPER with any
changes in HOME regulations or program limits that affect the project,
including but not limited to income limits, property value limits and rent
limits.
C. Progress Inspections. The 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 XII — Equal Employment Opportunity
During the performance of this contract, the DEVELOPER agrees as follows:
A. Nondiscrimination. The 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. Solicitation/Advertisement. The DEVELOPER will, in all solicitations or
advertisements for employees placed by or on behalf of the DEVELOPER, state
that all qualified applicants will receive consideration for employment without
regard to race, color, religion, sex, or national origin.
C. Labor Unions. The DEVELOPER will send to each labor union or representative
of workers with which it has a collective bargaining agreement or other contract
or understanding, a notice to be provided by the DEVELOPER'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,
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1965, and shall post copies of the notice in conspicuous places available to
employees and applicants for employment.
D. Executive Order 11246. The 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.
• 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.
• 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.
• 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 XIII —Labor, Training & Business Opportunity
The DEVELOPER agrees to comply with the federal regulations governing training,
employment and business opportunities as follows:
A. Performance. 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. Compliance. The 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
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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. Subcontract. The 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. Conditions.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 XIV—Compliance with Federal, State & Local Laws
A. Civil Rights Act. 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. The 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). The 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. The 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:
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1. Certification Regarding Debarment, Suspension Or Ineligibility And
Voluntary Exclusion—Primary And Lower Tier Covered Transactions
a) The 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;
iv. 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;
v. Where the DEVELOPER is unable to certify to any of the
statements in this Contract, the DEVELOPER shall attach an
explanation to this Contract;
vi. 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; and
vii. 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 is presently debarred,
suspended, proposed for debarment, declared ineligible, or
voluntarily excluded from participation in this transaction by
any Federal department or agency.
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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. Affirmative Action & Nondiscrimination Obligations. 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. Lead Based Paint.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 Preservation. 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. Architectural Barriers Act of 1968 as amended, 42
USC Section 4151 et seq., implementing regulations, and Chapter 70.92
RCW.
6. Property Standards.Accessibility Standard as set forth in 24 CFR 92.251(a).
7. Clean Air &Other Environmental Protections. 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. Employment & Other Economic Opportunities. 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&Safety Standards. Contract Work Hours and Safety
Standards Act, 40 USC Chapter 5, Sections 327-333, (Overtime
Compensation).
10. Rate of Wages. Davis-Bacon Act, as amended, 40 USC Chapter 3, Sections
276a—276a— 5, and RCW Chapter 3 — 12 (Prevailing Wage Rates).
11. Procurement. 2 CFR Part 200 (Procurement Standards) and Federal
Management Circular, FMC 74-4.
12 Relocation & Acquisition. The Uniform Relocation Assistance and Real
Property Acquisition Policies Act of 1970, as amended, and regulations
contained in 24 CFR Parts 42 and 570.
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13. Nondiscrimination in Federally Assisted Programs. 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. Nondiscrimination Based on Age. Age Discrimination Act of 1975 (24 CFR
146).
15. Nondiscrimination in Housing. Fair Housing Act (24 CFR 100, CFR 107
and 24 CFR 1).
16. State Housing Standards.Washington State/Local Building Codes/Housing
Quality Standards (24 CFR 882.109).
17. Minority &Women Owned Businesses. WBE/MBE (24 CFR 85.36 (e)).
C. Applicable Licensing & Certifications. The 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. Taxes & Other Insurances. The 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, the DEVELOPER shall pay the same before it becomes due.
Section XV—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 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 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
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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 XVI —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.
Section XVII — 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 proceed with the work with such diligence as will ensure 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.
Section XVIII—Close Out
Within thirty (30) days of the contract closing date, the 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
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documentation delivered (including the final invoices and final report), covenants are
recorded against the property, 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.
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 XIX— Reporting Responsibilities
DEVELOPER agrees to submit any and all quarterly reports required by HUD or the CITY
to the AGENCY on the following due dates: October 1, January 1, April 1, and July 1,
next following the date 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 XX - Inspection, Monitoring &Access to Records
A. The CITY reserves the right to inspect, monitor, and observe work and services
performed by the DEVELOPER at any and all reasonable times. The 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.
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B. The records relating to this Contract shall be promptly furnished to the City upon
request. Until the expiration of six (6) years after the termination date of this Contract,
or for a longer period of time if required by law or the Washington State Secretary of
State's record retention schedule, DEVELOPER shall retain and provide the City access
to all of the DEVELOPER's books, documents, papers and records which are related to
this Contract. If any litigation, claim, or audit is started before the expiration of the six-
year period or retention schedule time period, the records shall be retained until all
litigation, claims, or audit findings involving the records have been resolved.
C. All records relating to the DEVELOPER and this Contract must be made available
to the City and produced to third parties, if required, pursuant to the Washington State
Public Records Act, Chapter 42.56 RCW, or by law. All records relating to this Contract
must be retained by DEVELOPER for the minimum period of time required pursuant to
the Washington State Secretary of State's records retention schedule.
D. The terms and conditions of this section shall survive any expiration or
termination of this Contract.
Section XXI — 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
additional insured endorsements as proof of liability insurance in the minimum
amount of Two Million Dollars ($2,000,000.00) that clearly states who the
provider is, the amount of coverage, the policy number, and when the policy and
provisions provided are in effect (any statement in the certificate to the effect of
"this certificate is issued as a matter of information only and confers no right upon
the certificate holder" shall be deleted). Said policy shall be in effect for the
duration of this Contract. The certificate of insurance and additional insured
endorsements shall name the City of Yakima, its elected 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. 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 requirements contained herein, as well as the City of Yakima's
review or acceptance of insurance maintained by the DEVELOPER, is not
intended to and shall not in any manner limit or qualify the liabilities or obligations
assumed by the DEVELOPER under this Contract.
C. Commercial Automobile 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 additional insured endorsements as proof of
commercial automobile liability insurance with minimum liability limit of Two
Million Dollars ($2,000,000.00) combined single limit bodily injury and property
damage. Automobile liability will apply to "Any Auto" and be shown on the
certificate. The certificate shall clearly state who the provider is, the amount of
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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
certificate of insurance and additional insured endorsements shall name the City
of Yakima, its elected 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. 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 requirements contained herein,
as well as the City of Yakima's review or acceptance of insurance maintained by
the DEVELOPER, is not intended to and shall not in any manner limit or qualify
the liabilities or obligations assumed by the DEVELOPER under this Contract.
D. Workers' Compensation. DEVELOPER and all subcontractor(s) shall at all
times 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 $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 subcontractor(s). DEVELOPER is responsible to ensure subcontractor(s)
have insurance as needed. Failure of subcontractors(s)to comply with insurance
requirements does not limit DEVELOPER's liability or responsibility.
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.
F. Insurance Coverage. 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 neither the City nor its
insurance providers shall contribute to any settlements, defense costs, or other
payments made by DEVELOPER's insurance All additional insured
endorsements required by this Section shall include an explicit waiver of
subrogation.
G. Maintenance of Insurance. If at any time during the life of this Contract, or any
extension, DEVELOPER fails to maintain the required insurance in full force and
effect, all services or requirements under this Contract shall be discontinued
immediately. Any failure to maintain the required insurance may be sufficient
cause for the City to terminate the Contract
H. Verification of Coverage. Failure of the City to demand verification of coverage
with the insurance requirements outlined in this Section, or failure of the City to
identify a deficiency from the insurance documentation provided, shall not be
construed as a waiver of DEVELOPER's obligation to maintain such insurance.
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Section XXII —General Conditions
A. Notice & Communications. All notices or other communication which shall or
may be given pursuant to this Contract shall be in writing and shall be delivered
by personal service, or by registered mail addressed to the 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 2nd Street
Yakima, Washington 98901
Copy To: Office of Neighborhood Development Services
City of Yakima
129 N 2nd Street
Yakima, Washington 98901
DEVELOPER address: Yakima Valley Partners Habitat for Humanity
21 W. Mead Ave. Ste# 110
Yakima, Washington 98902:
B. Title & Headings. Title and paragraph headings are for convenient reference
and are not a part of this Contract.
C. Contract Conflict. In the event of conflict between the terms of this Contract and
any terms or conditions contained 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. Wavier & Breaches. No waiver or breach of any provision of this Contract shall
constitute a waiver of a subsequent breach of the same or any other provision
hereof, and no waiver shall be effective unless made in writing.
E. Contract Enforcement. The parties hereto agree that this Contract shall be
construed and enforced according to the laws 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.
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F. Modified to the Extent Necessary. 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 unenforceable under
the laws of the State of Washington or 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. Anti-Kickbacks. The 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. Contract Work Hours&Safety Standards.The 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. Inclusion of Anti-Kickbacks & Contract Work Hours and Standards —
Subcontracts. The 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. Delegation of Duties. The obligations undertaken by the 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 or assignment of such service
or any part thereof by another person or agency. The City has sole discretion in
determining whether to provide its consent.
K. Binding&Modifications.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.
L. Indemnify & Hold Harmless. DEVELOPER agrees to release, defend,
indemnify and hold harmless the City, its elected and appointed officials, officers,
employees, agents, representatives, insurers, attorneys, and volunteers from any
and 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 Association, or any of Association's agents,
subcontractors, volunteers, or participants in performance of this Contract.
Nothing contained in this Section of this Contract shall be construed to create a
liability or a right of indemnification in any third party.
The provisions of this Section regarding indemnification and the Section above
regarding insurance coverage shall survive the termination of this Contract.
M. Independent Contractors. The DEVELOPER and its employees and agents
shall be deemed to be independent contractors, and not agents or employees of
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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. Availability of Funds. 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. Disclosure of Confidential Information. The use or disclosure by any party of
any confidential information concerning a recipient or client for any purpose not
directly connected with the City's or the 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. Reassignment of Services. The 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, at its sole discretion. All terms and conditions
of this Contract shall apply to any approved subcontract or assignment related to
the Contract.
Q. Illegal Provisions. 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.
R. Survival. Any provision of this Contract which imposes an obligation after
termination or expiration of this Contract shall survive the term or expiration of
this Contract and shall be binding on the parties to this Contract.
33 of 36 City of Yakima 4/2/2024
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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 2910 W. Arlington Ave. and sell it to a qualified low-income, first-time
homebuyer and monitor the "Affordability Period" for a period of no less than
FIFTEEN (15) 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 fora period of no less than FIFTEEN (15) year
affordability period in exchange for all net proceeds redeemed from the sale of the
home located at 2910 W. Arlington Ave.
C.) PROGRAM GOAL AND OBJECTIVES
Goal
Create another affordable single-family residence within in the City of Yakima.
Objectives
1. Prepare the 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 FIFTEEN (15) 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 290 W. Arlington Ave. for a period of no less than a
FIFTEEN (15) year affordability period as per HOME Investment requirements.
F.) BUDGET
Yakima Valley Partners Habitat for Humanity will be reimbursed up to $87,500
between the contract execution date and end upon completion of construction, for
eligible activities, subject to the terms and conditions of the Contract.
34 of 36 City of Yakima 4/2/2024
37
Exhibit "C"
(THIS PAGE LEFT BLANK INTENTIONALLY FOR "EXHIBIT C RESOLUTION")
35 of 36 City of Yakima 4/2/2024
38
Exhibit "D"
Subrecipient Request for Funding Application
Is the attached proposal as submitted to the City of Yakima on November 2, 2022.
36 of 36 City of Yakima 4/2/2024
39
EXHIBIT D
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Office of Neighborhood Development Services (ONDS)
Yakima Valley Partners
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Yakima Valley Partners
Habitat for Humanity
Single Family Dwelling Construction
2910 W Arlington, Yakima WA 98902
November 2, 2022
40
Yakima County Projected Need for New Housing Units-2015-2040
2015 2040 2040
Population Population Projected Average New
Estimates Projected Projected New Housing Units
New Persons Per Housing Needed
Residents Household Units Annually
Yakima Co 249,970 318,494 68,524 3.0 22,841 914
Yakima City 93,220 117,608 24,388 2.6 9,380 375
Toppenish 8,965 10,377 1,412 3.7 382 15
Sunnyside 16,280 19,578 3,298 3.4 970 39
Granger 3,640 4,816 1,176 4.4 267 11
Grandview 11,200 19,578 8,378 3.4 2,464 99
Source:Based on OFM Median Population Projections&2015 OFM Actuals
Yakima Valley Partners Habitat for Humanity is proposing build sites in 3 locations
throughout the city of Yakima in the next 18 months. Our program specifically targets and
serves households earning low to very low income according to HUD median annual
household income.
Habitat pre-qualifies program applicants based on willingness to partner, need, current
living situation, and ability to pay for the Habitat home. Once selected for our program, we
provide housing counseling focused on credit management and or repair, budgeting, and
pre-purchase education. Applicants are referred to other community non-profit agencies
for first time home buyer education &other additional assistance as deemed necessary.
Yakima Valley Partners Habitat for Humanity (YVPHFH) is seeking assistance in building
affordable housing on a lot owned by YVPHFH. We are proposing construction of a single-
family home on Voelker Ave in Yakima utilizing HOME funds. In partnership with the Office
of Neighborhood Development Services (ONDS), YVPHFH will build a 3 bedroom 1-1/2-
bathroom 1080 square foot home. The proposed home will serve a low to very low-income
family. This family will be pre-qualified, first-time home buyers, whose income is between
30%-80% of the Area Median Income (AMI) for Yakima County.
Market Assessment-Housing Needs
Yakima Valley Partners Habitat for Humanity has identified three Key Factors driving
Affordable Housing Needs in Yakima County, specifically within the city of Yakima:
1. Low Wages - The proposed projects target households whose incomes are at or
below 80% Area Median Income for Yakima County. These include agricultural workers,
service employees, medical clinic employees, school district employees and other
professionals. Typically, these households cannot afford full market rate homes and
financing for the acquisition of a new home.
2. Aging Housing Stock - There are pre-existing homes in the City and County,
available for purchase, however; most of these homes are older and in need of considerable
HOME funds CHDO Application 2
41
repair and/or rehabilitation. In addition, the age of the homes may either require additional
mitigation costs for asbestos and/or lead-based paint or expose new unsuspecting
homebuyers and their households to dangerous toxins should they do the repairs
themselves.
3. Housing Shortage - There are semi-new and new construction homes on the market
for sale. With the current shortage, the demand for new homes has increased the average
market price and limits options for households with fewer resources and lower income.
Program Purpose and Projected Outcome
YVPHFH's intent is to build and provide affordable housing opportunities to low-income
households in Yakima County. Our proven partnership over the years shows the value and
impact we create when working together.
The project involves development of a single parcel number 181326-23557 at 2910 West
Arlington Ave., Yakima to enable construction of a single-family residence. This parcel
provides enough land for a single-family construction residence to be constructed by
YVPHf H. Actual construction of the home will take place in 2022-2023.
The specific project that this application refers to is typical of the Yakima Valley Partners
Habitat for Humanity process detailed below.
Volunteers account for most of all labor needed on a Habitat job site. Volunteers for this
project will include students in the Perry Tech Electrical program, Habitat for Humanity
households, & friends working to complete their "sweat equity" hours. Volunteers will be
involved in all areas of the organization including committee work, job site construction, and
office assistants.
Yakima Valley Partners Habitat for Humanity is a non-profit, non-denominational Christian
housing organization that builds homes in partnership with qualified low-income households
in the Yakima Valley. Our households' incomes are within 30-80% of the median income for
households in Yakima County. We offer two funding options for program participants: One
- a zero-interest mortgage funding by YVPHfH; Two - for higher AMI applicants we offer 3rd
party funding through Yakima Federal Savings & Loan, with a low interest mortgage
program designed specifically for our participants, which closely mirrors the USDA 502
Loans. This funding approach makes decent, affordable housing a reality for more
households than we would be able to serve if we only used in house funding.
Yakima Valley Partners Habitat for Humanity's Affiliate is governed by an Affiliate Board of
Directors. This board is comprised with a minimum of 1/3 of the members being
representatives of the communities we serve.
Founded in 1984, Yakima Valley Partners Habitat for Humanity has completed 196 new
homes, representing nearly 850 individuals whose lives have been changed through our
program. These homes represent nearly $20,000,000 in property value added to the local
tax rolls. This is yet another way Habitat for Humanity has aided in stimulating the local
HOME funds CHDO Application 3
42
economy. Additionally, we have several hundred volunteers, both locally and from all over
the nation, provide thousands of hours of volunteer work for our program each year.
How It Works
Each year our Board of Directors determines where and how many homes we will be able
to build the following year. This is based on budget and land availability in the different
communities. We seek to build 40% of our homes in Yakima and 60% in the mid and Lower
Valley.
We then advertise an application meeting for those who would like to apply for a Habitat for
Humanity home. At this meeting we explain the process and the Family Selection Criterion.
It is as follows:
1. Ability to Repay:
YVPHfH's program is a self-help program which requires participants to purchase
their home. Our pricing process is layered to achieve maximum affordability for our
participants. We set the purchase price at fair market value based on a 3rd party appraisal.
We then determine the participants affordable mortgage limit. YVPHf H then assists the
participants with grants and in most cases a forgivable 2nd mortgage to meet the
affordability needs and requirements of participants and our funding terms. This process
helps us accomplish an affordable mortgage payment (not to exceed 30°A) of the
household's income). Our participants' mortgage payments (include principal, taxes, and
insurance) are typically less than their current rent. All funds received from 1st mortgages of
our homes are used for the construction of future homes. This makes Habitat for Humanity
a self-perpetuating home ownership program. Qualified households earn between 30%
and 80% of the median area income.
2. Willingness to Partner:
The chosen households must be willing to invest at least 500 hours of "sweat equity"
with YVPHf H. Sweat equity hours must include a minimum of 125 hours of construction on
their home or other Habitat homes and 75 hours in approved "Homeowner Education"
courses. This includes a financial literacy program, currently using LOVE Inc.'s program and
a "First time home buyer" class.
3. Current Living Conditions:
The current living conditions of a family must create a burden in at least one of the
following areas:
- Health and Safety
Over Crowding
Financial Hardship
Applications are accepted in person at our administration office. Applicants who meet the
above criteria are then reviewed by the Homeowner Selection Committee for verification of
the participant selection criteria. When this is complete the households are presented to
the Affiliate Board of Directors for approval.
HOME funds CHDO Application 4
43
The homeowner selection process is ongoing until all current projected homes are matched
with a family.
Funding
Most of the funding for YVPHFH projects is from foundations, local businesses, churches,
and individuals. Government grants, when available, are used for land acquisition,
infrastructure (sewer, water, etc.) development, and administration costs.
Additionally, Yakima Valley Partners will fund the project through income received from
Habitat Store profits, general donations, and funds from principal payments being made by
current homeowners paying their monthly mortgage payment.
PROJECT FINANCIAL INFORMATION
Total Cost: CHDO request: Other financing:
$ 265,725 $ 87,500 $ 178,225
CHDO request as % of total cost 32.9 %
CHDO request from the City: Loan: $ Grant: $ 87,500
Funds to be returned to the City: Yes No El
See attached Subsidy Analysis and Cost Estimate
PROJECT SCHEDULE
ACTION: Target Date in Months from Project Approval:
Site:
Option Completed
Acquisition February 3, 2021
NON-CHDO Financing:
Application Pre-approved Loan Funding
Conditional Commitment January 1, 2022
Firm Commitment June 1, 2022
Design:
Selection of Architect Completed-Yakima Valley
Partners
Preliminary Designs April 2018
Final Designs June 2022
Bidding:
Advertise N/A
Open Bids N/A
Award Bids N/A. All work is done by staff and volunteers
Construction:
Begin Construction March 2024
Complete Construction 12/31/2024
Occupancy:
HomeTransfer to low income family January 2025
PROJECT DEVELOPMENT TEAM
The following companies or individuals constitute the development team. Where individual
members have not yet been identified, the City must be notified as they are selected.
HOME funds CHDO Application 5
44
Staff Contact Person: Meloney Rosen
Other Financial Sources: Yakima Federal Savings and Loan, Enero Macias
Other Partnerships: Perry Tech, Electrical,Programs
Other: Building Committee: Chair - Darin Peters, Regional Project Manager for Pontifex,
Charlie Eglin-Contractor, Jeff Swan, County Judge, Rip Hollingbery, Retired Architect, Gus
Carvajal, Dynamic Solar, Habitat Staff - Greg Rapp, Construction Manager, David Reeder &
Gary Green site supervisors.
CERTIFICATION
I hereby certify that the above statements are true; that I am authorized to sign this
application and to make these statements, on behalf of the applicant organization; and that
the organization understands that misrepresentation of any facts which leads to the
improper allocation and expenditure of public funds may result in legal action against the
organization for retrieval or any such funds and appropriate penalties.
Signed:
February 16, 2024
Si ture Date
Meloney Rosen
Name
Executive Director
Title
Yakima Valley Partners Habitat for Humanity
Organization
HOME funds CHDO Application 6
SUBSIDY ANALYSIS 45
PROJECT NAME: Yakima Valley Partners Habitat for Humanity
Project Address: 2910 Arlington Ave., Yakima WA 98902
Parcel# 181326-23557
Project Type. (check box) New Construction E Rehabilitation ❑
When was property acquired if Rehab? N/A
Funding Year 2023
How much Funding is being requested? $87,500 00
What will proposed funding be used for? New Construction
Construction $87,500
When will project begin? (Estimated) June 23-Dec 23
Additional Funding Sources if any? None at this time
Acquisition Funding
Funding Source: City of Yakima HOME
Number of Parcels: 1
Appraisal Amount: $73,700 00
Purchase Price. $67,500
Demolition Costs
Funding Source: N/A
Estimated Demolition Costs: N/A
Lot Breakdown
Estimated available building lots' 1
Estimated Lot Cost: $67,500
SUBSIDY ANALYSIS 46
Estimated Demolition Cost per lot:
Estimated Total Lot Cost:
Construction Funding
Funding Source: City HOME, &YVP-HFH
Address: 2910 Arlington Ave., Yakima WA 98902
Parcel: 181326-23557
Estimated Construction Amount: 87,500; 78,225, 100,00
SUBSIDY TOTALS
Acquisition:
Demolition:
Construction. $87,500
Rehabilitation
Estimated Appraised Value. $313,000
Maximum Per Unit Subsidy Limits for Yakima
0 Bedrooms $144,050
1 Bedroom $165,134
2 Bedrooms $200,800
3 Bedrooms $259,773
4+ Bedrooms $285,148
Project Justification Summary
Habitat plans to build a 3 bedroom 2 car garage home in central Yakima. This home will be energy efficient,
solar ready, and built to Habitat, City, &County standards
Our program focuses on affordable housing for low and very low-income households. We have selected a
participant for this home; the applicant meets all our eligibility criteria:
AMI 47%
Household Size 1 Adult, 3 children
Citizen or Resident US Citizen
The applicant is not currently living in subsidized housing or receiving any other financial assistance
Construction Cost Breakdown 47
Building Permit $2,075.00 Walls&Ceiling Equipment
Water Hook-up $3,000.00 Sheetrock $4,500.00 Range $700 00
Well Tape&Texture $4,600 00 Oven
Excavation&Grading $7,500.00 Wallpaper Hood $500.00
Concrete Paneling Dishwasher $70000
Foundation $10,000.00 Electric Disposal
Floors Wiring $11,000.00 Garage Door $2,000.00
Walls&Steps $7,500.00 Fixtures $1,000.00 Central Vac
Patio $1,000.00 Insulation $7,500.00 Surround Sound
Driveway Hardware Security System
Concrete $2,500.00 Rough $300.00 Refrigerator $1,050.00
Asphalt Finish $500.00
Masonry Heating
Concrete Block Gas/Oil/Propane
Brick/Stone Electric Landscaping
Fireplace Heat Pump $6,500.00 Topsoil $1,000.00
Chimney Air Conditioning Lawn $2,800.00
Lumber Millwork Fence $2,800.00
Rough $19,100.00 Trim $2,300.00
Finish $4,500.00 Cabinets $4,300.00 Site Prep $20,000.00
Carpentry Labor Frames
Rough $7,000.00 Doors $2,800.00
Finish $3,000.00 Garbage Dumpster $500.00
Sanitation $6,500.00 Glass Miscellaneous
Plumbing Windows $1,900.00 PP&L Fees $2,000 00
Sewer Mirrors $75.00 Temp Toilet $40000
Septic Tank&Drain field Painting
Metal Work Exterior $2,000 00
Structural Steel Interior $1,600.00
Sheet Metal Tile Work
Ornamental Iron Counter Tops
Roof Laminate $950.00 Subtotal
Trusses $15,000.00 Tile Profit&Overhead $10,000.00
Glulam $600 00 Hard Surfaces Sales Tax
Composition $8,500.00 Floors Total Construction Costs
Shakes Hardwood Plans&Services
Hot Mop Linoleum $725 00 Financing Costs
Gutters Carpet $1,250 00 Sales Costs
Siding Laminate $2,200.00 Subtotal
Cement/Stucco/Brick Tile Land $67,500.00
Trim/Soffits/Fascia Grand Total $265,725.00
Borrower Signature Date
Borrower Signature Date Builder Signature Date