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HomeMy WebLinkAbout2011/11/01 Item 05CITY COU NCI L AGENDA STATEMENT ~„~„ clrv of --- CHULAVISfA NOVEMBER 1, 2011, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (I) APPROPRIATING $205,379 OF HOME INVESTMENT PARTNERSHIP FUNDS FOR USES PREVIOUSLY ALLOCATED BY CITY COUNCIL AND; (2) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A FIFTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND COMMUNITY HOUSINGWORKS FOR THE FIRST TIME HOMEBUYER ASSISTANCE PROGRAM // SUBMITTED BY: ASSISTANT CITY MANAGEIC~/ DIRECTOR OF DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGER c~~ 4/STHS VOTE: YES ^X NO SUMMARY This item appropriates HOME Investment Partnership (HOME) funds allocated for the first-time homebuyer program on July 19, 2011 in the amount of $205,379, and amend the related contract with Community HousingWorks to add $208,000 previously appropriated in the fiscal year (FY 11/12) annual budgeting process for a total amount of $413,379 for first-time homebuyer gap financing for the remainder the fiscal yeaz. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed action for compliance with the National Environmental Protection Act (NEPA) due to the use of Federal funds and has determined that pursuant to Section 58.30 (b), Subpart D, Title 24 of the Code Federal Regulations, further review and environmental determination as appropriate, will be required for each project as it is identified. Thus, no further NEPA environmental review or documentation is necessary at this time. RECOMMENDATION Council adopt the resolution. BOARDS/COMMISSION RECOMMENDATION Not applicable. 5-1 NOVEMBER 25, 2011, Item Page 2 of 2 DISCUSSION City staff is recommending additional Council actions to ensure that the City's First Time Homebuyer Program has enough funding to carry the program through FY 11/12. On July 19, 2011 Council approved and allocated an additional $205,379 in HOME funds to the First Time Homebuyer program for fiscal yeaz 2011-2012 to be used city wide. This re-allocation was necessary to move funds previously designated for general affordable housing use and to satisfy the Department of Housing and Urban Development's requirement to commit $89,845 in HOME funds to an eligible project by July 31, 2011. At this time staff is requesting these funds be appropriated. Staff is also bringing forward an amendment (Attachment 1) to Community Housing Works (CHW) first time homebuyer program agreement to increase the amount of HOME funds available to coincide with $208,000 previously appropriated and approved in the annual FY 11/12 budget process for the first-time homebuyer program. This appropriation and contract amendment will provide a total of $413,379 funds for the remainder of this fiscal year and allow low income first-time homebuyers to continue to purchase properties throughout the City. The program has seen great success over the past six months due to low interest rates and higher purchase offer acceptance rates of pre-committed buyers, with nearly all previously allocated balances being expended to date and creating over ten (10) new HOME homeowners in the City since November 2010. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT FISCAL IMPACT There is no current fiscal impact as HOME program is revenue offset by the grant funds. The use of the grant funds was already approved by City Council. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as the program is revenue offset by the grant funds. Prepared by: Stacey Kurz, Senior Project Coordinator, Development Services Department, Housing Division ATTACHMENT Attachment 1: Fifth Amendment to Agreement with Community HousingWorks 5-2 ATTACHMENT 1 FIFTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM RECITALS A. The City of Chula Vista ("City") and Community HousingWorks ("Consultant") (collectively, the "Parties") entered into an initial agreement, dated August 23, 2007, a First Amendment on June 19, 2008, Second Amendment on March 17, 2009, a Third Amendment on November 17, 2010, and a Fourth Amendment on July 19, 2011 for Management of a First Time Homebuyer Downpayment and Closing Cost Assistance Program (collectively and hereinafter the "Agreement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Investment Partnership Program funds loan (HOME) program and Neighborhood Stabilization Program (NSP) funds in accordance with HOME and NSP requirements including, but not limited to, underwriting loans for first-time homebuyers, servicing the loans, and providing monitoring and reporting services. C. The City amended its 2011-2012 Annual Action Plan to allocate and appropriate $208,000 of unencumbered HOME funds for a City of Chula Vista First Time Homebuyer Program (FTHB). HUD approved the City's Action Plan amendment. D. This Fifth Amendment is only intended to increase the amount of eligible HOME funds for the program, no other changes are being made at this time. E. The City wishes to add HOME funding to the Eirst Time Homebuyer Program Scope of Work under the Agreement in the amount of $208,000. F. The Catalog of Federal Domestic Assistance number for HOME funding is 14.239 AGREEMENT The Parties agree as follows: 1. This Fifth Amendment is contingent on the City appropriating the necessary funds to continue the administration of the FTHB program using HOME funds. 2. This Fifth Amendment shall be effective on the later of the following dates: (i) execution of this Fifth Amendment by the City; or (ii) satisfaction of the contingencies set forth in paragraph 1, above. 1 5-3 3. The Agreement shall be amended as follows: a. The Fourth Amendment dated July 19, 2011 amended the initial Agreement dated March 23, 2007 by adding terms ("Terms") to the last pazagraph of the initial Agreement, Exhibit A, Pazagraph 8, ``Scope of Work and Schedule, A. Detailed Scope of Work." The aforementioned Terms are hereby modified as follows: The third pazagraph is amended to now read as follows: "Consultant understands that an additional $208,000 in HOME funds are available for assistance of up to $70,000 for each low- income homebuyer purchasing a REO foreclosed property using HOME funds or up to $40,000 for purchasing anon-REO property. This allocation is in addition to any remaining balance in the previous HOME fund allocation of $205,379 to assist low-income first time homebuyers." ii. The fifth pazagraph is amended to now read as follows: "Consultant shall commit and expend the additional allocation of HOME funds of $208,000, and expend any remaining balances in accordance with the Deliverables section of this agreement, unless mutually extended by both parties." b. The Fourth Amendment dated July 19, 2011 further amended the initial Agreement dated March 23, 2007, the First Amendment, Second Amendment, and Fourth Amendment dated June 28, 2008, Mazch 17, 2009, and July 19, 2011 respectively by providing for specific deliverables ("Deliverables 1 through 3") in Exhibit A, Paragraph 8, ``Scope of Work and Schedule, C. Dates of Time Limits for Delivery of Deliverables." The aforementioned Deliverables I through 3 are hereby modified to now read as follows: Deliverable No. 1: Consultant shall make reasonable efforts to close five (5) First Time Homebuyer loans using HOME funds by June 30, 2012. Deliverable No. 2: Consultant shall commit and expend all remaining HOME funds by September 30, 2012." Deliverable No. 3: Consultant shall work with the City to ensure that the HOME funds are expended timely as to not cause the City to have an expenditure deficiency with the Department of Housing and Urban Development. 5-4 4. All other terms of the Agreement shall remain in full force and effect. However, if a conflict exists between the terms in this Fifth Amendment and prior terms, the terms in this Fifth Amendment shall control. [Next Page is Signature Page.] 3 5-5 SIGNATURE PAGE To FIFTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNPAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM IN WITNESS WHEREOF, City and Consultant have executed this Fifth Amendment to the Agreement indicating that they have read and understood the Fifth Amendment and indicate their full and complete consent to its terms: Dated: , 2011 City of Chula Vista By: James D. Sandoval, City Manager Attest: Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney Dated: Community HousingWorks By: Susan M. Reynolds, President & CEO Attachments: 1. Exhibit A: Agreement between the City of Chula Vista and Community HousingWorks dated August 23, 2007, and First Amendment, Second Amendment, Third Amendment, and Fourth Amendment dated June 17, 2008, Mazch 17, 2009, November 17, 2010, and July 19, 2011 respectively 4 5-6 Exhibit A AGREEMENT BENVEEN CITY OF CHULA VISTA AND COMMUNITY HOU5INGWORKS FOR MANAG AND C OSING COS ASS STIANCE PROGRAMAYMENT This agreement ("Agreement"), dated ~~ drn for the purposes of reference only, and effective as of the date last a cuted unless another date is otherwise specified in Exhibit A, Paragraph 1, is between the City-related entity as is indicated on Exhibit A, Paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, Paragraph 3, and the entity indicated on the attached Exhibit A, Paragraph 4, as Consultant, whose business form is set forth on Exhibit A, Paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, Paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals WHEREAS, the City is seeking professional consultant services to assist the City in managing a first time homebuyer downpayment and closing cost assistance program program; and WHEREAS, Community HousingWorks, was seiected as Consultant due to it's intimate knowledge of administering downpayment programs and servicing loans, their extensive experience, and their ability to complete the services in a timely manner; and WHEREAS, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; (End of Recitals. Next Page starts Obligatory Provisions.) 5-7 Obligatory Provisions Pages NOW, THEREFORE, BE IT RESOLVED that Lhe City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties A. General Duties Consultant shall perform all of the services described on the attached Exhibit A, paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph $, within the time flames set forth therein, time being of the essence of tbis agreement. The General Duties and the wark and deliverables required in the Scope of Work and Schedule shall be herein referred to as the "Defined Services". Failure to complete the Defined Services by the times indicated does not, except at the opfion of the City, operate to terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may requrre Consultant to perform additional consulting services related to the Defined Services ("Additional Services ), and upon doing so in writing, if they are withm the scope of services offered by Consultant, Consultant shaIl perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 10(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 2 5-8 E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of Gaze and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. F. Insurance Consultant must procure insurance against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under the contract and the results of that work by the Consultant, his agents, prior to commencempent of work. The msurance ma P be maintained forhthe duraoln of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). {2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any autoJ. (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability or Errors & Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. Minimum Limits of Insurance Contractor must maintain limits no less than: General Liability: 1 $1,000,000 per occurrence for bodily injury, personal . (Including operations, injury and property damage. If Commercial General ance with a general aggregate limit is i products and nsur Liability either the general aggregate limit must apply used completed , separately to this project/location or the general operations, as applicable) aggregate limit must be take the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury .and 5-9 property damage. 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors 8s Omissions Liability: Deductibles and Self-Insurec Statutory $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee $1,000,000 each occurrence Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. Other Insurance Provisions The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: (1) The City of Chula Vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment famished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the contractor's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. (2) The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance of the contractor and in no way relieves the contractor from its responsibility to pravide insurance. (3) The insurance po&cy required by this clause must be endorsed to state that coverage will not be canceled by either party, except after thirty (30) days' prior written notice to the City by certified mail, return receipt requested. 4 5-10 (4) Coverage shall not ea'tend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. (5) Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If General Liability, Pollution and/or Asbestos Pollution Liability andJor Errors Sv Omissions coverage are written on a claims-made form: (1) The "Retro Date° must be osh~e c antr m work. before the date of the contract or the beginning (2) Insurance must be m~ ~ I completion of the ontract workst be provided for at least five (5) y (3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the c coves of orae date, the Consultant must purchase °extended reporting" g _m;nimum of five (5) years after completion of contract work. (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors 5-11 Consultants must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subconsultants are subject to all of the requirements included in these specifications. G. Security for Performance (1) Performance Bond In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mazk in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which aze authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circulaz 570, http:/ /www-fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. (2) Letter of Credit lrr the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subpazagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Paragraph 18. (3) Other Security In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to pro~~ide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant 6 5-12 shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. H. Business License Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the agreement. In addition thereto, City agrees to provide the information, data, items and materials set forth on Exhibit A, Paragraph 9, and vnth th30 daes understanding that delay in the provision of these materials beyond thirty ( ) Y after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance of this agreement. B. Compensation Upon receipt of a properly prepared billing from Consultant submitted to the City periodicaIly as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly, on the day of the period indicated in Exhibit A, Paragraph 17, City shall compensate Consultant for aA services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Pazagraph 10, adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate azrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Pazagraph 11. AIl billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's such at enmber indicated on Exhibit A, Paragraph 17(G) to be charged upon making P Ym 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 12, as said parry's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 4. Term 7 5-13 This Agreement shall terminate when the Parties have complied with all executory provisions hereof. 5. Liquidated Damages The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. It is acknowledged by both parties that tirrie is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in performance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. Failure to complete the Defined Services within. the allotted time period specified in this Agreement shall resnlt~ d oz fthe compet n of the respective work assignmenaor in excess of the time sp Deliverable, the Consultant shall pay to the City, or have wi~hheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated Damages Rate"j. Time extensions for delays beyond the Con t 1~ tCi ° snContracteAdministrators caused by the City, shall be requested in writing t3'~ or designee, prior to the expiration of the specified time. Extensions of tune, when granted, will be based upon the effect of delays to the work and 'will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. 6. Financial Interests of Consultant A. Consultant is Designated as an FPPC Filer If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform. Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultanosi~dmesi wa e attempto use Consultant s position not make, or participate in making Y Y to influence a governmental decision in which Consultant knows or has reason to know Cons•:zltant has a_financial interest other than the compensation promised by this Agreement. 8 5-14 C. Search to Determine Economic Interests Regardless of whether Consultant is designated ntl an onduct d a search and warrants and represents that Consultant has dilig Y inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair' Political Practices Commission, h ve an econom~iclinterest Consultant does not, to the best of Consultant's knowledge, which would conflict with Consultant's duties under trus agreement. D. Promise Not to Acquire Conflicting Interests Regardless of whether Consultant is designated as an FPPC Filer, or assume further warrants and represents that Consultant willm nt ~~ 1i'would constitute a an economic interest during the term of this Agr conflict of interest as prohibited by the Fair Pohtrcal Practices Act. E. Duty to Advise of Conflicting Interests Regardless of whether Consultant is designated as an FPPC Frler, Consultant further warrants and represents that Consultant will immediately advise the City Attorney of City if Consultant Teams of an ose of the Fair Political Practices Act, and result in a conflict a attheteunder.e purp regulations promulg F. Specific Warranties Against Economic Interests Consultant warrman~band nor eContsultant's eemployeessuor agents (' Consulanant immediate family interest, directly or indirectly, whatsoever in any Associates') presently have any property which may be the subject matter of the Defimed Sa o i ees, wluc anmaPrbe the within 2 radial miles from the exterior boP hibrted Interes ")pother than as listed in subject matter of the Defined Services, (" Exhibit A, Paragraph 14. Consultant further warrants and represents that no promise of ha rbe mpmade to remuneration, consideration, gratuity or other reward or gain Consultant or Consultant Associates in connection with C su htarormse th~m Y be this Agreement. Consultant promises to advise City of any P made during the Term of this Agreement, or for twelve months thereafter. Consultant agrees that Consultant Associates shaIl not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except v<~ith the wntten permission of City. 9 5-15 ' Consultant may not conduct or solicit any business for any Party LO this Agreement, or for any thud Parts' that may be in conflict with Consultant's I responsibilities under this Agreement, except with the written permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect and hold harmless the City, its elected '' and appointed officers and employ~~ou{ lirmantation a ~srneys feesarising ~a° e°S liability, cost and expense (including alleged by third parties to be the result of the negligent acts, errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, sub esnons ble in other persons, agencies or firms for whom Consultant is e mom{ ex cpt only for connecfion with the execution of thostsoandoexpen s s (inc uding without limitations, those claims, damages, liability, ence or sole willful misconduct of the City, attorneys fees) arising from the sole neglig arisin from, connected with, caused by its officers, employees. Also covered is liability g or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any thud party With respect to losses arising from Consultant's professional errors or tanelect d Consultant shall defend, indemnify, protect and hold harmless the City, and appointed officers and employees, from and against aIl claims for damages, '' liability, cost and expense (including wrthout limitation attorneys fees) e LS po~°cersoor claims arising from the negligence or willful misconduct of City, employees. Consultant's indemnificatio~e C~ ~tsuofficers, agentlls or emgloyees ein defending fees and liability incurred by tY~ against such claims, whether the same proceed to judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. For those professionals who are required to eer cen~d bf ll ~g e~~elanifi~atiorl landscape architects, surveyors and engin )> provisions should be utilized: (1) Indemnification and Nold Harmless Agreement With respect to any liability, including but not limited to claims a caused or costs, losses, attorney fees, or payments for injury to any Person or property claimed to be caused by the acts or omissions of the Consultant, or Consultant's emgloyees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section 7.2, the ees to defend, indemnify, protect, and hold harmless the City, its Consultant agr 10 5-16 agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent ac The Consultant's duty Consultant, its employees, agents or officers, or any third party. to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. (2) indemnification for Professional Services. As to the Consultant's professional obdefend andrhold harmless the City~its Project, the Consultant agrees to indemnify, agents, officers and employees from and against any and all liabi&ty, claims, costs, and damages, including but not limited to, attorneys fees, that arise out o£, or pertain to, or relate to the negligence, recldessness or willful misconduct of Consultant andoes agents in the Performance of services under this agreement, but this indemnity not apply liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by City or the agents, servants, or independent contractors who are directly responsible to City, or arising from the active negligence of City. 8. Termination of Agreement for Cause If, through any cause, Consultant shall fail to fu]fill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant shall violate any of the covenants, agreements or stipul`'ation~~etlunoh~e to Consultant of such termination terminate this Agreement by gi g and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily Temrminationn not to exceed theanamounts payables h~ eunder, fiend le datanY damages caused City by Consultant's breach. 9. Errors and Omissions In the event that the City Administrator determines that the Consultants' negligence, errors, or omissionea ~~an would have wresult da f thereA~re no such resulted in expense to City gr negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing herein is intended to limit City's rights under other pro~risions of this agreement. 11 5-17 10.Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Co30 lda s befor the effective date o f uch lermination~In date thereof, at least thirty ( ) Y that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this pazagraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. 11. Assignability The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified thereat as "Permitted Subconsultants". 12.Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties groduced under this Agreement shall be the sole and exclusive property of City. No such materials or properties prpoSd g ed in whole or in part under this Agreement shall be subject to private use co hts or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public R~ecoazrds succh distribute, and otherwise use, copyright or patent, in whole or in p Y reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13.Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole e ment.oCity maintainsnthenght onlY~°~ )egt or services required under this Agr ~ of the Consultant's agents, accept Consultants work products. Consuttan nano ans Yunder this Agreement, an employees or representatives are, for all p rp independent contractor and shall not be deemed to be an employee of City and none of them shall be entitled to any betir fimt ent benefits1 w rket'se compensation bel eft s but not limited to, overtime, injury leave or other leave benefits. There~f2re, City will not withhold state or federal 5-18 income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14.Administrative Cfaims Requirements and Procedures No suit or azbitration shall be brought arising out of and filed with the ity and City unless a claim has first been presented in writing acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees Should a dispute arising out of this Agreemenen~ sul~st the other for an amount the prevailing party shall be entitled to a judgm ag shall be deemed tolbe the party who isn warded substantially the relief sought.g ply 16. Statement of Costs In the event that Consultant prepares a report ortde pmfined Serv cesl Consutant preparation of a report or document in performing shall include, or cause the inclusion of, in said report or document; a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent City Unless specifically authorized in writing by City, Consultant shall have nc authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker andlor Salesman Tf the box on Exhibit A, Paragraph 15 is marked, the Consultant and/or their principals is/aze licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. Notices 13 5-19 All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any party shaIl be deemed to have been properly given or served if persosta e Seree azd, deposited in the 1Snited States mail, addressed to such party, p g P P registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. D. Entire Agreement This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. E. Capacity of Parties Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located iri San Diego County, State of California, and if applicable, the City of Chula Vista,. or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) 74 5-20 AGREEMENT BETWEEN CITY OE CHULA VISTA AND COMMUNITY HOUSINGWORKS FOR , MANAG AND CLOSING COST ASS STIANCE PROGRAMAYMENT IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: g/a3 ( 07 City of Chula Vista By: i ~ " . ~ Da ~d R. Garcia, City Manager Atte J~'~ Susan Bi itY Perk f~~~ Exhibit List to Agreement (X) Exhibit A. 15 5-21 Exhibit A To AGREEMENT BETWEEN CITY OF CHULA VISTA AND COMMUNITY NOUSWGWORKS 1. Effective Date of Agreement: August 1, 2007 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( )Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California ()Industrial Development Authority of the City of Chula Vista, a ( )Other. , a [insert business form] ("City") 3. Place of Business for City: City of Chula Vis#a 276 Fourth Avenue Chula Vista, CA 91910 4. Consultant Community HousingWorks 5. Business Form of Consultant: ()Sole Proprietorship ( )Partnership (X) Corporation 16 5-22 6. Place of Business, Telephone and Fax Number of Consultant: 4305 University Avenue, Suite 550 San Diego, California 92105 Voice Phone: (619) 282-5547 Fax Phone: (619) 640-7119 7. General Duties: Consultant shall provide management of the City's First Downpayment and Closing Cost Assistance Program in HOME Investment Partnership Program City requirements. additionally set-up and service loans under the program. 8. Scope of Work and Schedule: A. Detailed Scope of Work: Time Homebuyer accordance with Consultant shall Consultant shall provide neighborhood outreach via flyers and brochures in various locations of high civic traffic in the City of Chula Vista on a quarterly basis. In addition, the consultant shall include materials on the Chula Vista program in their County-wide marketing materials, event participation and orientation seminars. Consultant shall continue to provide their 8+hour HUD and Neighborworks Certified Home Buyer Education in English and Spanish for interested residents of Chula Vista, with an increase of at least two classes per year in a Chula Vista location. Consultant shall continue to provide Pre and Post-Purchase Counseling to residents of Chula Vista. The consultant shall monitor al[ Chula Vista loan program portfolio clients and provide specialized outreach for loss mitigation and homeownership preservation. Consultan# shall administer the Chula Vista HOME funds loan program according to the program guidelines, including but limited to: ranking applications for the program, underwriting, loan document preparation and loan closing. The consultant shall further provide one-on-one in person client intake and applications for the Chula Vista down-payment assistance applicants. Consultant shall service the loans made on behalf of Chula Vista through this program according to standard loan servicing policies and procedures, including but not limited to: monthlylannual statements to borrowers, 17 5-23 annual tax statements for interest paid, investor reporting and recording via Loan Base loan servicing software platform (exports to Excel as well). Consultant shall further provide annual monitoring and reporting for owner occupancy, as well as all pay-offs, subordinations, safe-deposit original documents and annual public/investor audits. Consultant shall service all other loans that the City forwards to the Consultant for an additional fee. Consultant shall provide quarterly reports on the outreach, education, and counseling services provided. B. Date tar Commencement of Consultant Services: (X) Same as Effective Date of Agreement ( )Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Deliverable No. 2: Deliverable Na 3: D. Date for completion of all Consultant services: July 31, 2008 This agreement may also be extended 6y mutual agreement for up to five years, in one-year increments. 9. Materials Required to be Supplied by City to Consultant: List of applicants on the waiting list, existing application, program guidelines, and all public information documentation. 10. Compensation: A. () 5ingie Fixed Fee Arrangement.3 3. The difference between a single fixed fee amount with phased payments and a phased fixed fee amount is that, in a single fixed fee amount all of the work is required for all of the compensation. Payments are phased to help with consultant cash flow. In a phased fixed fee arrangement, the City has the authority to cancel or require performance under 18. 5-24 For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount Milestone or Event or Deliverable payable as follows: Amount or Percent of Fixed Fee () 1. interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the ehd of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the Gity shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. (X) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Gity shall have issued a notice to proceed to Consultant as to said Phase. Phase Loan closing Fee for Said Phase $ 1,250 subsequent phases, so that the compensation is due just for the phase of work required, and not for the total amount. 19 5-25 2. Setup fees 3. $ 250 () T. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 79 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sale and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. ()Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the. performance of said Services, at the rates or amounts set fiorth in the Rate Schedule herein below according to the following terms and conditions: ('I) ( }Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will-perform all of the Defined Services herein required of Consultant for $ ,including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ()Limitation without Further Authorization on Time and Materials Arrangement At such time as Gonsultant shall have incurred time and materials equal to {"Authorization Limit"), Consultant shall not be 20 5-26 entitled to any additional compensafion without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule" Category of Employee Name of Consultant Hourly Rate ()Hourly rates may increase by 6% for services rendered after [month], 2D_ 'rf delay in providing services is caused by City. i 1. Materials Reimbursement Arrangement For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shat! pay Consultant at the rates or amounts set forth below: (x) None, the compensation includes aIl costs. Cosf or Rate () Reports, not to exceed $ $ () Copies, not to exceed $ $ () Travel, not to exceed $ ~ $ () Printing, not to exceed $ ~ $ () Postage, not to exceed $ $ () Delivery, not to exceed $ $ This section should be completed in all cases-if the main compensation scheme is a "time 4 . and materials arrangement" or for the purposes of requiring Additional Services. 21 5-27 () Long Distance Telephone Charges, not to exceed () Other Actual Identifiable Direct Costs: not to exceed $ not to exceed $ 12. Contract Administrators: City: Amanda Mills, Housing Manager, Consultant: Gabe del Rio, Vice President of Lending 13. Liquidated Damages Rate: $ per day. Other: $ 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer.' O FPPC Filer Category No. 1. Investments and sources of income. ( )Category No. 2. Interests in real property. ( )Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( )Category No. 4. Investments in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. '. If Consultant, in the performance of its services under this agreement: (1) conducts research and arrives at conclusions with respect to its rendition of information, advice, recommendations or counsel independent of the control and direction of the City or of any City official, other than normal contract monitoring; and (2) possesses no authority with respect to any City decision beyond tha rendition of information, advice, recommendations or counsel, Consultant should not be designated as an FPPC Filer. 22 5-28 ( )Category No. 5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ( )Category No. 6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. F ( )Category No. 7. Business positions. ( )List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 15. ( )Consultant is Real Estate Broker and/or Salesman 16. Permitted Subconsultants: 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: (X) Monthly ( )Quarterly ( )Other: _ B. Day of the Period for submission of Consultant's Silting: 23 5-29 ( )First of the Month ( ) 15th Day of each Month {X) End of the Month ( )Other: C. City's Account Number: 18. Security for Performance Performance Bond, $ ' )Letter of Credit, $ Other Security: Type: Amount: $ Retention. if this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount"' until the City determines that the Retention Release Event, listed below, has occurred: ( )Retention Percentage: ( )Retention Amount: $_ Retention Release Event: ( )Completion of All Consultant Services ( )Other. 24 5-30 FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY SOUSING WORKS For Management of a First Time Homebuyer Downpayment and Closing Costs Assistance Program RECITALS A. The City of Chula Vista ("City"} and Community HousingWorks ("Consultant") (collectively, the "Parties") entered into to an agreement, dated August 23, 2007, for Management of a First Time Homebuyer Dovmpayment and Closing Cost Assistance Program (the "Agreement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Investment Partnership Program funds loan program in accordance with HOME requu•ements including, but not limited to, underwriting loans for first-time homebuyers, sen+iciug the Ioans, and providing monitoring and reporting services. C. Consultant offers an innovative pilot program that would provide an incentive for low-income fanvlies wishing to enter the homeownership mazket to purchase vacant foreclosed property. D. The City wishes to add this program to its scope of work under the Agreement The City and Consultant agree as follows: AGREEEMENT 1. Exhibit A, Paragraph 7, General Duties; at the end of the paragraph, add the following: "Consultant shall provide management for the Pilot Homeowner Progranr for Real Estate Owned (REO) foreclosed properties in accordance with HOME Investment Partnership Program City requirements." 2. Exhibit A, Paragraph S. Scope of Work and Schedule, A. Detailed Scope of Work, after the Last paragraph, add the following: "Consultant shall administer the Pilot Homeowner Program for REO foreclosed properties using the similar guidelines as the City's Downpayment and Closing Cost Assistance Program. 1 5-31 Consultant shall identify fvst time low-income homebuyers (those families earning less than 80°/a of the Area Median Income) that wish to purchase vacant foreclosed properties at a negotiated price. Consultant understands that $300,000 in HOME funds are available for assistance of up to $30,000 for each homebuyer purchasing an 1tE0 foreclosed property. This allocation is in addition to the original program allocation of $500,000." 3. Exhibit A, Paragraph 8. Scope of Work and Schedule, B. Date for Commencement of Consultant Services, add the following: "The Effective Date of this First Amendment is June 17, 2008." 4. Exhibit A, Pazagraph 8. Scope of Work and Schedule, D. Date for completion of all Consultant services, delete "July 31, 2008" and replace with "June 30, 2009". Delete "This agreement may also be extended by mutual agreement for up to five years, in one- yeaz increments." and replace with "This Agreement may be extended by mutual agreement, and upon the written approval of the City Manager, for up to four additional one-year terms," 5. Exhibit A, Paragraph 8. Scope of Work and Schedule, B.3. Compensation, add the following: ItEO Program Set-Up $1,500. All other terms ofthe Agreement shall remain in full force and effect. [Next Page is Signature Page.] 5-32 SIGNATU32E PAGE :FIRST AD~NDIl1ENT 7'O THE AGREEMEIST BETWEEiV THE CLTl' OF C73TI,A VLSTA AND colvrn~nv>1 ~ xausnva wo~uc~ For Maztagement of a First Tune Homebuyer Dovmpayment and Closing Costs Assistance Program iN WITNESS WHEREOF, City and. Consultanthave executed this First funendment to the Agreement. indicating,thatthcy have read and understood the First Amendment and indicate than frill and complete consent to its terms: /~ 2ppg City ofChula Vista Dated: by; Da~ . Caar~ia,'City Manager Attest:. Donna. arras, Acting City Cl Approved as to f~im: /y f~ Bart C. MiesFeld, Interim City Att ey ~ ~d Dated; ~ ~/ ~i' ~ anxzumty Housing ~~. tV~-. CEO Exhibit Lisftu First Amendment.to Agreement:.. (X) Agreement between the City of Chula Vista and Community HotisingWorics dated August .3, 2007 '.`.4ttnrneytEL15R\AGREEMENTS\CammimitY AousingWorks'First AmendmentTlNfil,6-7 DOfl.duc 3 5-33 SECOND AMENDMENT TO THE AGREEMENT BETR'EEN THE CITY OF CHULA vTSTA AND COA4MUNITY HOUSING R~ORKS For Management of a First Time Homebuyer Downpayment and CIosing Costs Assistance Program RECITALS A. The City of Chula Vista ("City") and Community HousingWorks ("Consultant") (collectively, the "Parties") entered into an initial agreement, dated Auawst 23, 2007, and a First Amendment on June 19, 2008 for Management of a First Time Homebuyer Downpayment and Closing Cost Assistance Program {the "Ab~reement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Inv°strnent Partnership Program funds loan program in accordance with HOME requirements including, but not limited to, underwriting loans for first-time homebuyers, servicing the loans, and providing monitoring and reporting services. C. The City amended its 2008-2009 Annual Action Plan to receive CDBG Neighborhood Stabilization Program (NSP) funds from the Department of Housing and Urban Development ("HUD") and desires to use a portion of the NSP funds for a Neighborhood Stabilization First Time Homebuyer (NS FTHB) Program. D. The City's Action Plan amendment has been approved by HUD. In anticipation of receiving the grant agrcement from HUD, the City wishes to add administration of the NS FTHB Program to the scope of work under the Agreement. The Parties agree as follows: AGREEMENT 1. This Second Amendment is contingent on: (i) the City enterittg into a grant agreement with HUD for the NSP Program; and (i3) the City appropriating the necessary funds to administer the NSP Program 2. This Second Amendment shall be effective on the later of the following dates: (i) execution of this Second Amendment by the Ciry; or (ii) satisfaction of the contingencies sef forth in paragraph 1., above, 3. The Agreement shall he amended as fo[Iows: 5-34 a. Exhibit A, Paragraph 7, "General Duties," at the end of the paragraph, add the following: "Consultant shall provide management for the new Neighborhood Stabilization First Time Homebuyer (NS FTHB} Program for Real Estate Ovvned (REO) foreclosed properties in accordance with City and Department of Housing and Urban Development Department ("HUD")requirements." b. Exhibit A, Pazagraph 8. "Scope of Work and Schedule, A. Detailed Scope of Work,: after the last paragraph, add the following: "Consultant shall administer the City's N$ FTHB Program for REO foreclosed properties using the City's NS First Time Homebuyer Program Guidelines, in compliance with HUD regulations of the Neighborhood Stabilization (NSP) funds and in accordance with the City's NSP requirements described in the N SP Manual, NSP Amendment to the City's 2008!2009 Action Plan, as well as the regulatory requirements of Federal Registry Notice 73 FR 58330. Consultant shall process applications for City loans for first time low- income and moderate income homebuyers (those families earning less than 120% of the Area Median Income) that wish to purchase vacant foreclosed REO properties at a discounted negotiated price. Consultant understands that an additional $1,547,064 in NSP funds and $452,936 in HOME funds are available for assistance of up to $40,000 for each moderate-income homebuyer purchasing an REO foreclosed property using NSP funds, and up to $70,000 for each low-income homebuyer purchasing an REO foreclosed property using HOME funds or NSP funds. This allocation is in addition to the previous HOME fund allocations of $500,000 and $300,000 to assist low-income first time homebuyers. Consultant understands City's NSP and HOME funding requirements for First Time Homebuyer activities. City further describes the use of NSP and HOME funds, Program Requirements, and Duration of Agreement in Exhibit B, attached. Consultant shall identify and commit NSP funds for at least 40 Fu•st Time homebuyers. Consultant shall close 20 of those loans and/or expend 50% of the NSP funds by December 31, 2009; Consultant shall commit the remaining funds by August 31, 2010. Consultant shall conduct initial First Time Homebuyer Education Classes (Spanish and English), Realtor and Lender Training Classes as needed to meet the deliverable requirements in Paragraph 8. C. below. 5-35 Consultant understands that it is subject to the requirements of Department of Housing and Urban Development (Federal Register) Notice of Allocations, Applications Procedures, Regulatory Waivers Granted to and Alternaflve Requirements fot Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Crrantees under the Housing and Economic Recovery Act of 2008, the City of Chula Vista's NS First Time Homebuyer Program guidelines, City's NSP Plan submitted to the Department of Housing and Urban Development, Neighborhood Stabilization Program regulations found in Title III of Division B of the Housing and Economic Recovery Act of 2008, and 24 CFR Part 570 Community Development Block Crrant proa~r-am for Entitlement Cotnmuniti es. Consultant shall administer the City's First Time Homebuyer Program for low-income families in accordance with the City's HOME requirements and regulatory requirements at 24 CFR Part 92. Consultant will commit and expend the initial $800,000 of HOME feuds within 24-months after original agreement date of August 23, 2007. The additional allocation of $452,936 in HOME funds must be committed and expended within 24 months of the date of appropriation, Consultant understands that it is subject to requirements of the City of Chula Vista's HOME First Time Homebuyer Program guidelines, and 24 CFR Part 92 HOME Investment Partnership Program" c. Exhibit?., Paragraph 8. "Scope of Work and Schedu]e, C. Dates of Time Limits for Delivery of Deliverables," add the following: "Deliverable No. 1: Consultant shall close 20 First Time Homebuyer loans and/or commit and expend 50°io of the NSP funds by December 31, 2009. Deliverable No. 2: Consuitant shall commit and expend all remaining NSP funds by August 31, 2010. Deliverable No. 3: Consultant shall coconut and expend alI HOME funds within 24 months of the date of appropriation." d. Exhibit I, Paragraph 8, "Scope of Work and Schedule, D. Date for Completion of all Consultant Services," replace with the following: "August 31, 2010 This As~eement may also be extended by mutual agreement of the Parties for up to five years in one year increments. The City's Purchasing 5-36 Agent is authorized to negotiate and enter into such extensions to this Agreement on behalf of the City". e. Exhibit A, Paragraph 10. "Compensation, B. Phased Fixed Fee Arrangement.3.," add the following: "a REO Proe ~am Set-Up and Closing Fee: $1,00 per Loan Closing. b. NSP Program Set-Up and Closing Fee: $1,00 per Loan Closing. c. Annual Fee of $9,000 to administer all of the City's First Time Homebuyer Programs including HOME and NSP, beginning with the 1'~ Amendment through August 31, 2010". f Delete paragraph 5., of the First Amendment. All other terms of the Agreement shall remain in full force and effect. [Next Page is Signature Page.] 4 5-37 SIGNATURE. PAGE SECOND AMENDNLENT TO TKB AGREEMENT BETWEEN THE CITY 0i" CHiJLA S~STA _?;ND COM]t4U1`IITY EIOIISING WORKS For ]vIaua~ement o£ a FLrst Time 73omebuyer Downpa3~nezit: and Closing Costs Assistance Program II*I WtINESS WHEREOF, City and Consultant fiave executed this Second Amendment to the Agreement indicating that they have read gad understood the Second Amendment and indicate their full. and complete consentto its :terms: Dated; ,/`~~' 1 V , ?009 City afChula Vista 3 ~ .Sando^.a1,CityManager Community Hqusit~gWorks Suse~ M. Reynolds, resident & CEO ~~;; Dated; ~~~~~~-~ -f~ Exhibit List to Secand Amendment to Agreement: Exhibit A: Aneetnent hetweei the City of Chula Vista and Community HousingPJorks dated August.?"3, 2D07; and. Amendment dated June 17;,200E. Exhibit B: Neighborhood Stabilization Funds and HOME Investment Partnership Funds Source ofrunds Side by Side Comparison ofHomebuyerAssistance Requirements 5 5-38 Attes . ~-"~ /tv~yly~ Abmia Noms, City Cletle E.KIiIIiIT B (Continued) Must commit and ;Must commit and expend NPS funds i expend NSP funds Must commit HOME EXPENDTTURE ~7thin l8 months within 18 months ~~ wdthin 12 REQUIIZEMElv"TS (i.e. have (i.e. have months homebuyers close homebuyers close escrow !, escrow+) Subject. to Cinr's Subject to City's Subject to Ci s J tY ASSISTANCE CAPS NSP maximwn ;NSP maximum HOME program (CALCULATE subsidy of up to subsidy of up to limit of up to ==GAp FINANCING") ' $70,000 (of which $40,000 (of which ~ $24,999 maybe used $70,000 for a REO $24,999 maybe used rehabilitation :f and $40,000 for any NEEDED TO or for rehabilitation assistance other property. ACQUIRF_./REHABI . Assistance). cannot I Assistance cannot LITATE Assistance cannot exceed 40% of exceed 40% of PROPERTY exceed 40% of purchase price urchase rice p p urchase rice DOWNPAYMENT 3% of buyers funds ' 3% of buyers funds 3% buyers funds REQUIRED URA VOLUNTARY 4 , ACQUISTIONS Subject to URA4 Subject to URA Subject to URA O1VZY ~ PROGRAM Retained by the City ;Retained by the City Retained by the City s INCOME of Chula Vista 5 ', of Chula Vistas of Chula Vista Housing and i Housing and Economic Recovery !, Economic Recovery 24 CFR part 92 Act 2008 and .Act 2008 and HOME regulations, correlated eligible ~ correlated eligible Office of REGULATIONS activities for the !activities for the Management and CDBG entitlement !, CDBG entitlement Budget (OMB regulations, as !regulations, as Circulars) 6 ~ appropriate. ;appropriate. 2008 Action Plan ! 2008 Action Plan 2008 Action Plan Amendment 'Amendment address the use of CONSOLIDATED addressed the use of ;addressed the use of HOME funds for the PLAN these FY 2008 NSP :these FY 2008 NSP Production of funds 'funds Affordable Housing First Time Homebuyer is defined as not having Domed real properiy+ witluu the last three years. Home Program Regulations set these maximum value and are updated periodically. httn~rhvww hod got offices/cpdiaffordabiehonsinabro~ams'homeAimits/maxnrice cfm Direct Homeoumership Assistance refers to the City's Shared Equity Loan' Silent Soft Second Assistance program eligible under Financing Mechanism tinder the Housing Emergency Recovery Act (HERA) of 2008 for direct homeownership assistance under 570.201(n) allows NSP (CDBG) funding to: Provide up to 50% of requved don+npayment; pay reasonable closing costs, provide principal unite-down asistance; subsidize. interest rates; finance acquisition; and assist homebuyers with private mortgage insurance. Exhibit E Page B-2 of 3 Community NousingVVerks Second Contract Amendment 5-39 ExxIBIT B NEIGHBORHOOD STABILIZATION PROGRAM (NSP) AND HOME INVESTA'LENT PARTNERSHIPS PROGRA111(HOME) SOURCE OF FUNDS SIDE-BY-SIDE COMPARISON OF HOMEBUYER ASSISTANCE PROGRAM REQUIREMENTS CITY NEIGHBORHOOD CITY HOME STABILIZATION PROGRAAR PROGRAAg 81-120% of the Area INCOME LIIVIITS Median Income Below 80% of the Below 80% of the (USING STATE OF (using State of ~ ,grea Median Income Area Median Income CALIFORNIA) California income !! limits} ~ ELIGIBLE Must be "first-time" ~ Must be "first-time'' Must be "first-time" HOMEBUYERS homebuyer ~ homebuyer homebuyer Must attend a HUD 'Must attend a HUD Must attend a HUD HOMEBUYER approved 8 hour ~ approved 8 hour approved 8 hour EDUCATION homebuyer :homebuyer homebuyer education course ': education course education course Vacant Foreclosed Vacant Foreclosed Vacant Property ELIGIBLE Property (townhome, Property (tow~rlhome, (townhome, PROPERTI' condominium, or ~ condominium, singe condominium, single sin >le family home family home fami] ~ home . Shared Equity fora i Shared Equity fora Shared Equity for a AFFORDABILITY minimum of 15 years I minimum of I S years minimum of 1 ~ years (must be repaid) ; (must be repaid) (must be repaid) TARGET AREAS NSP eligible target NSP eligible tazget ; Citywide areas areas Subject to 95% of ;Subject to 95% of Subject to HOME of o ram 95 / PURCHASE PRICE Median ~ralue as i Median value as o g Pr Median value as determined by HU D1 i deternined by HUD determined by HUDz PURCHASE In accordance with In accordance with ' Not subject to DISCOUNT s approved City's approved ,City discount methodology I methodology Must meet URA Must meet URA ' Appraisal obtained APPRAISAL , requirements at 49 requirements at 49 ' by Lender ' CFR Part 24.103 CFR Part 24.103 Direct Direct Downpayment ELIGIBLE USE(5} homeownership homeownership !Assistance (no OF FUNDS 3 3 rehabilitation) assistance assistance ! 92.254 Exhibit B Page B-1 of 3 Community HousingWorfcs Second Contract Amendment 5-40 E~ XHTBIT B (Continued) 4 URA is defined as Uniform Relocation Act of 1970, as amended. 5 Program Income is defined as any recaptwe of the initial City Investment plus shared equiti+ andlor interest due per the promissoq~ note and Deed of Trust. a NSP funds were allocated per the Housing and Economic Recovery Act 2008 Neighborhood Stabilization Program Regulations 73 FR 58330. Con•elated eli~ble activroes for the CDBG entitlement reeulations aze found at 24 CFR Part 57D & subparts A, C, D, 1, K, and Q as appropriate. NOTE: They City's Neighborhood Stabilization First-Time Homebuyer Program was desi®ed using the Deparhnent of Housing and Urban Development Federal Register V ol. 73 No. 104 Monday; October 6; 2008 Notice of Allocations; Application Procedures, Rebulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing anal Economic Recover} Aa, 2008; Notice City's First Time Homebuyer Program Manua] for NSP and HOME describes the program requirements. Exhibd B Page B-3 of 3 Community Hous'mgWorks Second Contract Amendment 5-41 THIRD AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM RECITAI..S A. The City of Chula Vista ("Cit}~') and Community HousingWorks ("Consuttaut") {collectively, the "Parties") entered into an initial agreement, dated August 23, 2007, a First Amendment on June 19, 2008, and. a Second Amendment on March 17, 2009 for Management of a First Time Homebuyer Downpayment and Closing Cost Assistance Program (collectively and hereinafter the "Agreement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Investment Partnership Program funds loan program and Neighborhood Stabilization Program funds in accordance with ROME and NSP requirements including, but not limited to, underwriting loans for first-time homebuyers, servicing the loans, and providing monitoring and reporting services. C. The City amended its 2008-2009 Annual Action Plan to receive CDBG Neighborhood Stabilization Program (NSP} funds from the Department of Housing and Urban Development and allocated- $452,936 in HOME funds for a First Time Homebuyer Program (FTHB}. HUD approved the City's Action Plan amendment. D. The City Comicil of the City of Chula Vista also approved a Developer Agreement on March 23, 2010 beriveen the City of Chula Vista and Community HousingWorks to acquire and rehabilitate foreclosed properties for the purposes of reselling them to eligible low- and moderate- income households within NSP eligible target areas and/or provide gap &nancing for first fime homebuyers purchasing NSP eligible properties using thew 'own Realtor. The Parties entered into the Management and Implementafion Agreement dated in Mazch 24, 2010 (hereinafter "Mazch 24, 2010 Agreement"). E. Given the related nature of the Agreement and March 24, 2010 Agreement, there is a need to make amendments to each agreement to ensure clarity and to avoid duplicative terms and/or requiremen#s. This Third Amendment is intended to make changes to the Agreement. A First Amendment to the March 24, 2010 Agreement will be made on a sepazate document. F. The City wishes to, make programmatic changes to the First Time Homebuyer Program Scope of Work under the Agreement and extend the Agreement term through August 31, 20I L 5-42 AGREEMENT The Parties ogee as follows: 1. This Third Amendment is contingent on the City appropriating the necessary funds to continue the administration of the FTHB program using HOME and NSP funds. 2. This Third Amendment shall be effective on the later of the following dates: (i) execution of this Third Amendment by the City; or (ii) satisfaction of the contingencies set forth in paragraph 1, above. 3. The Agreement shall be amended as follows: a. The Second Amendment dated March I7, 2009 amended the initial Agreement dated Mazch 23, 2007 by adding terms ("Terms") to the last paragraph of the initial Agreement, Exhibit A, Paragraph 8, "Scope of Worlt and Schedule, A. Detailed Scope of Work." The aforementioned Terms are hereby modified as follows: The third paragraph is amended to now read as follows: "Consultant understands that $452,936 in HOME funds are available for assistance of up to $70,000 for each low-income homebuyer purchasing a REO foreclosed property using Home funds. This allocation is in addition to.the previous HOME fund allocations of $500,000 and $300,000 (which have already been committed) to assist low-income first time homebuyers." ii. The fifth paragraph is amended to now read as follows: "Consultant shall commit and expend the additional allocation of $452,936 in HOME funds as stated in Schedule, C. Dates of Time Limits for Delivery of Deliverables, unless mutually extended by both parties: ' iii. The following pazagraph shall be added to the end of the Terms and shall read as follows: "Consultant understands earmazks for the expenditure and commiianent of NSP funds are now covered under a separate Management and Implementation Agreement for a Neighborhood StabilizadonProgram dated Mazch 24, 2010. As such, $1,547,064 in NSP funds are no longer available in this Agreement." b. The Second Amendment dated March 17, 2009 further amended the initial Agreement dated March 23, 2007 by providing for specific deliverables ("Deliverables 1 through 3") in Exhibit A, Pazagraph 8, "Scope of Work 2 5-43 and Schedule, C. Dates of Time Limits for Delivery of Deliverables." The aforemenfioned Deliverables 1 through 3 aze hereby modified to now read as follows: "Deliverable No. l: Consultant shall expend NSP funds in accordance with the Management and Implementafion Agreement dated March 24, 2010. Deliverable No. 2: Consultant shall close five (5) First Time Homebuyer loans using HOME fiords by Tune 30, 2011. Deliverable No. 3: Consultant shall commit and expend aI1 remaining HOME funds by August 31, 2011." 4. Prior versioivs of "Exhibit B" are hereby replaced by the "Amettded Exhibit B," attached to this Third Amendment to the Agreement as Attachment 2. 5. All other terms of the Agreement shall remain in full force and effect. However, if a conflict exists between the terms in this Third Amendment and prior terms, the terms in this Third Amendment shall control. [Next Page is Signature Page.] . 3 5-44 SIGNATURE PAGE To THIRD AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBiTYER DO WNPAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM IN WITNESS WHEREOF, City and Consultant have executed this Third Amendment to the Agreement indicating that they have read and understood the Third Amendment and indicate their full and complete consent to its terms: Dated: I~ 2010 City of Chula Vista /~ i / / City Manager Attest• t-~.(GL ~ Donnaldorris, City Cler Approved as to form: iG~~ Bart C. Miesfeld, City Attorney Dated: /(~©/. I ? 'LOl ~ Attachments: Cormnunity HousingWorks B S a .Reynolds, Pres nt & CEO 1. Agreement between the City of Chula Vista and Community HousingWorks dated August 23, 2007, and First Amendment attd Second Amendment dated Tune 17, 2008 and March 17, 2009, respectively 2. Amended "Exhibit B," consisting of updated Neighborhood Stabilization Funds and HOME Investment Parinerslup Funds Source of Funds Side by Side Comparison of Homebuyer Assistance Requirements 4 5-45 FOURTH AMENDhQENT Tt3 THE AGREEMENT BET\?,'EEN THE CITY OF CHULA VISTA AND COMIviUNITY HOUSING WORKS For MANAO`rEMENT OF A FIRST' 1"1ME T-IONiEBUYERDOV~TN;'AYIiTENT' AND CLOSING COSTS ASSISTANCE PROGRAA~I RECITALS A. The City of Chula Vista ("City") and Cormnunit}= Housing~>.~orks ("ConsulfanY') (collectively, the "Parties") entered into an Initial agreement, dated August 23, 300; a First Amendment on June I9, 2008, Second Airleudruent on March 17, 2009, and a Third Amendment. oir November 17, 2010; for 3vlanagement of a .First Time Homebuyer Do«=npa}=menu and Closing Cost Assistance Pragr•am (collectix=ely and hereinafter-the "Agreement"). B. Pu-suani to that Agreement, Consultant agreed. to administer the City's HOME Im=estmenY Partnership Program. t'iinds loan (HQit~) program and. NeighUorlood Stabilization Program. (NSI?) funds in accordance with HOME and NSP requirements including, but not limited to, underwriting locus foi• first-tone hon~ebug=ers, servicing the loans, and proi~iding inoiiitoring and>•epditing sen~ices: C. The City amended its 201.1--2012 Annual Action Plan to allocate and appropriate $205,379 of unencurirbered HOME funds for a City of Chula Arista Fast Time Homebu;=et Pragi`ain (FTI•IB). HUD appro~=ed the City's Aetioai Plan atiieudnrent. D, Giz=en the related nature of the Third Amendment, there is a -need to snake amend!nents to CHW agreement: to ensure clarity to the. use of HOME fiords •and o update the teams and(or expendihue requirements. This Fourth,.~unendnrent is intended !.o-.make changes to the Agreement. E. The Cit}= wishes to make programmatic changes to the HOT\~IE fiinded First Tune Homebuyer Program Scope of ~rork under the Agreement and extend the Agreement term tluough September 30, 2012. T'. The Catalog of Federa] Domestic Assistance nuulber for HOME funding is 14.239. AGREEME1tiT The'Parties agree as fallot~~s: I. This Fom2h Aaiiendinent is contingent on the Cit}= appropriating tl~e necessary 'funds Lo cor2limie the adnunistration of the FTHB program using HOA4E futads 5-46 Z. This Fom~di Amendment shall be effectit'e on flee later of the Following dates: O execution of this Fourth Amendment by t}te: Cit}~; or (iij satisfaction of the contingenoies set fnrth in paragraph 1, abode. 3. The. Agreement sl3all be amended as folloavs: a. The Tlurd_Asnendtnent datedNovemher 17, 2009 amended the initial.. :4greemerit dated la!Iarch 23, 2407 by adding tem]s ("Terms") to the last ,paragraph of the initial Agreement, Exhibit A, Pa~:agraph ~, "Scope of tNork and Schedule; A. Detailed Scope of Wark:" The aforementioned Terms ate hereby modified as follows: i. Tlie third.. paragraph i amended to now read as follows: "Cousuitanf nntlerstan'ds that anadditioi~al $205,379 in HOME funds are available for assistance of up to $70,000 for eachlow- ncotiie hoxnebuyerpurchasing tr RB0 foreclosed property using I3omefunds or up to $40,000 for purchasing anon-REO property,. TTis allocation is in addition to the previous HOME fiend allocations of $452;936 to assist loti~~-income Srst time homebuyers." ii. The fifth paragraph hs amended :to noiv read as follows: "consultant shall coanniit and expend flre additional. alloca#on oi' FIOlvlE funds of$205379, axid expend the a~>ailable balance of-the $452,936 allocation iiraccordance with the IIeln>erables section of this agfieenient, unless mutually extended b5~ both pai~ies." b. The Third Amendnaenf dated Nouember 17, 2009 further amended the initial Agreement dated Ivlarcli23, 2007, the First Amendment and the Second. Amendment dated. June 28, 2008, and AZarch 17, 2009, respecti~'>ely by pro tiding for specific deliverahles ("Delia~eraUles 1 through 3") in Exhibit A, Paragraph $, "Scope of Work and Schedule, C. Rates of Time Limits for Delivery of DeliveraUles," . The. aforementioned Deliverables 1 through 3 are hereby modified to now read as follows Deliverable No. 1't consultant shall make reasonable efforts to close seuen :(7) Fu'st Time Homebuyer loans using H01~4E funds by .torte 30,. 2012. Deliverable No. 2: Consultant shall commit and e.pend all remaining I301VIE funds by September 30, 2012." 5-47 Delia+erable No, 3: Consultant shah] work ~a~ith the Cit}~ to ensure that the H~A1E fluids are expended tunely as to-:not cause the City fo ha~!e an eapendihtre deficiency ~~ith the Department of Housing and iJxban De~el4pment: 4, Prior ~~ersians of "Exkubt B" are hereby replaced by the "Anietded Exhifit B," attached to fhis:Fourth Atendment to the Agreement as Altachinent2. 5. All other tenus of the Agreement shall emain in full force and effect: Hou~etirer, if a conflict exists. between the teams in this Fourth Amendment and prior tenns~ the terms in this Fourth Amendment shall control: [TTexi Page is Signature Page.] 3 5-48 SIGNATURE PAGE To FOURTH AMEI~DMEA'T TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND GOMIvIU1vITI' HOUSINr WORKS Far MANAGEMENT QF A FIRST TIDE HOMEBUYER DOWNPAI'MENT AND CLOSING CASTS ASSISTANCE PROGRAM IN WITNESS WHEREOF, City and Consultant have execitted this Fourth Amendment to 'the Agreement indicating that they have read and understood the Fourth Amendment.and indicate their fu[1 and complete consent to its ferms: Dated: `~ 1 ' ~ 1~~- 2.v f _:20:11 .City of,iula`s`ta~` { '' F~.r'J ~7 F 7auies~r . Sandoical, City Manager Attesk! /i7 ~ I t:. .~~ ~Yir'11~t>tCc IL ; f Do `a Noiis, City Clerk Approved as to foLm: _- nr~ Gl n~, Googins, City Attorney Dated:~~~f~_ Community HowsutgWorks ~--~ , Actacluztents: L. £.~ltibit A: Agreement bety,=een the City of Chula Vista and Community HousingV,TOrks elated August 23; 2007, and First Amendment, Second Antendntent; and Third Amendment :dated June I7, 2Q08, :March 17, 20Q9, and November 17, 2010, respecti~~ely 2: Exhibit B: HOME Investment. Purtneiship Fiiitds Source of Funds and general Hontebuyer Assistance Ft.enuirements 4 5-49 Ex}iibit B AMENDED E~FIIBIT B :HOMEINVESTtI'LTJNTPARTNERSWPS PROGRA111(fiOME) HOAIEBUI'ER ASSISTANCE PROGRAM REQUIREMENTS CITY OF CHULA VISTA FIRST TIME HOMEBTJYER PROGRAM USING $OA7E INVESTMENT PARTNERSHIP FUNDS INCOME LIMITS (USING STATE OF Belo«~ SO% of the Area Median Income CALIFORNIA) ELIGIBLE IiOMEBU`YERS Must be "first-titue"bomebuyer FIOMEBUYER Must attend. a HIJD approved 8 hour hotnebuyei~ educaf"ton EDUCATION course ELIGIBLE V" avant Property {townhoine; condominium, single famil}~ PROPERTI' home). No Tvlobilehomes AFFORDABILITY Shared Equity for a rninimmsi of 15 years. (must ire repaid) TARGET AREAS City STTide Subject to HOME p 2~gram 95/0 of Median. value as PURCHASEPRICE detennuied by HUD PURCHASE Consistent with City of Chula Vista I3omebuyer Program DISCOUNT Guidelines APPRAISAL Appraisal otrtained b3> Lender ELIGIBLE USE{S) . 3 Direct h~mebuyer assistance (no rehabilitation assistance} OF FUNDS EX.PElYDITURE Must .commit and expend HOME funds ~n~ithin the term REQUIREMENTS stated in this agreement Exhibit B Page 3-1 of 3 Community Housing Works Fourth ContractAmendmcnt 5-50 EX:EIISITB (Continued) IG1MEI37Ji'ER ASSISTANCE CAPS {CALCULATE Svbjecf. to City's HODIB pI•ogi'am litni#' of up to ~ZO,000;far °GAP a-REO and $40,000 for a HOME eligible property (City- F'INANCI1tG") VTide). L Assistance cannot exceed 40% of purchase price ITII2EfREHABI ACQ LITA'I'E PROPERTY DOWNPAYMENT 3%buyersfitnds REQUIRED III2A VOLiTNTARY' ACQIJISTIONS Subjec# to URA ONLY PROGRAM Retained by the Git}= of Chnta Vista TNGOME 24 CF'R part 92 HOME regulations, Office of I+7anagement RECIILATIONS and Budget (OMB Circtalars) CONSC2LIDATED :2011-2012 Action Planaddress the use of HOME funds for PLAN tliePxoductionofAffordableHousing :First Time Homehirye; is defined as noihavini; owned real property wifhin. the last three years. i Home PrO~ram Regulations set these maximum value and atcupdated periodically.. Assistance refers to the City's Shared Equity Loan/ Silent SofiSecondAssistaatce pro~•ant URA is defitie~ a§.uirifoim Relocation Act of 197Q as amended. s Program Igconteis defined as anyreeapture of the initial City InVestmen[plus shared equity and/or interest due per the promissory note and Deed of Trust. NO LL--: protections Tenants. at Foreclosure: IQoticeof Rdsportsibilitie3I?}aced on Inmte3iate Successors in ]iterest Pm~suapt to )oreclosure of kesiden$al Property, " 74 PR 3D] O6 (June 24, 20D9). Resource Liitks are available ~oti the U:5 Department of IIausing and Urban Development Office ofBlock:GrantAssisTanaewebsiteat ht[p:fZhometa.infolindea.cfm?do=vtet~~abduthmneta .Exhibit B Fage 8-2 of :3 Community NousingVUocks Fourth Ccntract Amendment 5-51 EXI3IBIT B {Gonfinued} Cit~~'s First Time f3omebvyer Probrana Manual Sot HOME describes. the p~ro~ram requirements and may be mote restrictive Than theminuiium 33UD requirements. Ezhibif B Page B-3 of 3 Gomimunity H~usingWOrks Furth Canfracf Rmendment 5-52 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROPRIATING $205,379 OF HOME INVESTMENT PARTNERSHIP FUNDS FOR USES PREVIOUSLY ALLOCATED BY CITY COUNCIL AND; (2) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A FIFTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND COMMUNITY HOUSINGWORKS FOR THE FIRST TIME HOMEBUYER ASSISTANCE PROGRAM WHEREAS, on August 23, 2007, the City entered into an Agreement (as previously amended) with Community HousingWorks for the management of a first time homebuyer down payment and closing cost assistance program (hereinafter Agreement); and WHEREAS, on November 25, 2008, Council approved amending the fiscal year 2008/2009 Annual Action Plan to allocate $452,936 of HOME Investment Partnership Funds for first time homebuyer activities; and WHEREAS, on March 3, 2009, Council approved a Second Amendment to Community HousingWorks First Time Homebuyer Agreement for underwriting services For a first time homebuyer assistance program to include the use of $452,936 in HOME Investment Partnership Funds subject to Council appropriation; and WHEREAS, on November 9, 2010, the City Council of the City of Chula Vista approved a Third Amendment to the Agreement between the City of Chula Vista and Community HousingWorks for underwriting services for homebuyers wishing to acquire and rehabilitate foreclosed properties using HOME Investment Partnership Funds, including an appropriation of the aforementioned $452,936 in HOME Investment Partnership Funds; and WHEREAS, on July 19, 2011, the City Council of the City of Chula Vista approved a Fourth Amendment to the Agreement between the City of Chula Vista and Community HousingWorks allocating an additional $205,379 in HOME Investment Partnership Funds for underwriting services for the first time homebuyer assistance program; and WHEREAS, the Catalog of Federal Domestic Assistance number for HOME funding is 14.239 and shall be communicated to all Contractors and included in all contracts and subcontracts related to the use of HOME funds; and WHEREAS, the City Council of the City of Chula Vista wishes to approve a Fifth Amendment to the Agreement between the City of Chula Vista and Community HousingWorks for underwriting services for homebuyers wishing to acquire foreclosed properties using HOME Investment Partnership Fund for $208,000 previously budgeted and appropriated, and 5-53 Resolution No. 201 1- Page 2 appropriate $205,379 in previously approved HOME Investment Partnership Funds for eligible properties Citywide, for a total fiscal year budget of $413,379. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby (1) appropriate $205,379 in HOME Investment Partnership Funds to an eligible project; and (2) authorizes the City Manager or his designee to execute a Fifth Amendment to the Agreement between the City of Chula Vista and Community HousingWorks for the First Time Homebuyer Program for underwriting services. Presented by: Gary Halbert, P.E. AICP Assistance City Manager/ Development Services Director Approved as to form by: ~Cv~~ Glen R. Googins City Attorney 5-54