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HomeMy WebLinkAbout2012/06/12 Item 02CITY COUNCIL AGENDA STATEMENT - t ~~s~~ t ~~- '~"eHUiAV~srA JUNE 12, 2012, Item .. ITEM TITLE: RESOLUTION. OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO COMMUNITY HOUSING CORPORATION FOR THE ACQUISITION AND REHABILITATION OF ABANDONED OR FORECLOSED PROPERTIES USING ADDITIONAL NEIGHBORHOOD STABILIZATION PROGRAM FUNDS AND HOME INVESTMENT PARTNERSHIP FUNDS AS PREVIOUSLY APPROVED BY CITY COUNCIL, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY NECESSARY DOCUMENTS SUBMITTED BY: ASSISTANT CITY MANAGE DEVELOPMENT SERVICES DIRECT REVIEWED BY: CITY MANAGER 4/STHS VOTE: YES ~ NO SUMMARY This City Council action authorizes a contract amendment with San Diego Community Housing Corporation to include additional Neighborhood Stabilization Program and HOME Program funds for the acquisition and rehabilitation of abandoned or foreclosed properties for rental housing. On January 24, 2012, the City amended the 2008/2009 Annual Action Plan of the Neighborhood Stabilization Program (NSP) to allocate additional NSP resources for this purpose. That Annual Action Plan amendment was necessary to meet an updated program requirement that increased the income targeting to serve the very low income population. The City Council also allocated and appropriated HOME funds for the same purpose. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed action for compliance with the National Environmental Policy Act (NEPA) due to the use of Federal funds and 2-1 June 12, 2012, Item '~' Page 2 of 3 has determined that pursuant to Section 58.30 (b), Subpart D, Title 24 of the Code of 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 None. DISCUSSION BACKGROUND Per HUD's guidance, City Council approved the reallocation of $750,000 Neighborhood Stabilization Program (NSP) funds on January 24, 2012 for the purpose of purchasing abandoned or foreclosed properties to rent to low income households earning less than 50 percent of the Area Median Income (e.g. family of four $40,150). The program income was generated from the initial allocation of $2.8M of NSP funds received and approved by Council in November 2008 for eligible activities to help stabilize neighborhoods, including acquiring and reselling properties and providing rental opportunities to low income households. HOME funds in the amount of $700,000 have also been allocated and appropriated for this program increasing the total amount to $1.45M. City staff issued a Request for Qualifications (RFQ) to the two existing NSP contractors (San Diego Housing Corporation and Community HousingWorks) for additional acquisition and rehabilitation services utilizing NSP and HOME funds. Council authorization is necessary to amend the existing agreement to incorporate the use of HOME funds and necessary actions to implement the program. Based on the applications received, San Diego Community Housing Corporation was selected as an agency with extensive experience for this type of project and one that can best meet the goals and objectives of the City's NSP and HOME rental program. The City originally contracted with San Diego Community Housing Corporation for the purchase and rehabilitation of properties providing rental units using the initial allocation of NSP funding. Project Scope and Contractual Requirements As proposed, the services to be provided by San Diego Community Housing Corporation are generally performed in six phases: (1) identify properties that best meet the goals of the NSP and HOME program, (2) conduct financial feasibility, (3) submit to the City a pro forma for review and approval, (4) make an offer on a property and process due diligence during escrow, (5) complete acquisition, (6) complete any rehabilitation needed for occupancy. The City will retain ownership of the properties and rent the units to eligible 2-2 June 12, 2012, Item Page 3 of 3 households. Property management services will be contracted out via a request for Proposals (RFP} in the near future. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Councilmembers Castaneda, Ramirez, and Bensoussan have property holdings within 500 feet of the boundaries or within the target neighborhoods which are the subject of this action. Due to identified conflicts during the initial target area development, City staff requested a written opinion from the Fair Political Practices Commission ("FPPC") for Councilmembers Castaneda and McCann. In response, the FPPC opined that Councilmembers Castaneda and McCann could participate in the decision because, "it does not appear that the decision to appropriate HUD funds will have a material financial effect [on a council member]." Based on the information in said FPPC- letter Councilmember Castaneda may participate in this item. In addition, given that Councilmember Bensoussan and Ramirez stand in the same position as Councilmembers Castaneda and Mc Cann, Coucilmembers Bensoussan and Ramirez may also participate in this item. CURRENT YEAR FISCAL IMPACT There is no current year fiscal impact to the General Fund as expenditures are offset by the HUD grant funds. Budgetary changes necessary for the current fiscal year have already been included in the City's budget. ONGOING FISCAL IMPACT There is no ongoing fiscal impact to the General Fund as expenditures are offset by the HUD grant funds. Any additional appropriations necessary for future years will be included in proposed City Budgets. ATTACHMENT Attachment: Contact Amendment Prepared by.• Jose Dorado, Project Coordinator II, Development Services Department, Housing Division 2-3 RESOLUTION NO 2012 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AMENDMENT TO AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO COMMUNITY HOUSING CORPORATION FOR THE ACQUISITION AND REHABILITATION OF ABANDONED OR FORECLOSED PROPERTIES USING ADDITIONAL NEIGHBORHOOD STABILIZATION PROGRAM FUNDS AND HOME INVESTMENT PARTNERSHIP FUNDS AS PREVIOUSLY APPROVED BY CITY COUNCIL, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY NECESSARY DOCUMENTS WHEREAS, on January 24, 2012, pursuant to Resolution No. 2C12-003, the City Council approved an Amendment to the 2008/2009 Annual Action Plan of the Neighborhood Stabilization Program (NSP) to allocate NSP funds for the purpose of acquiring properties to meet the program requirement to use 25 percent of the revenue received for rental opportunities for low income households; and WHEREAS, in May 2010 and May 2011, pursuant to Council Resolution Numbers 2010- 098 and 2011-072, respectively, City Council approved the 2010/2011 and 2011 /2012 Annual - Actions for HOME Investment Partnership Program (HOME) that included funding for the production of affordable rental housing for low income households; and WHEREAS, the United States Department of Housing and Urban Development (HUD) notified the City that the City is eligible to receive approximately $2.8 million in one-time CDBG funds through the new Neighborhood Stabilization Program (NSP) in addition to its annual CDBG entitlement; and WHEREAS, on November 25, 2008, Council approved the submittal of an amendment of the Fiscal Year 2008/2009 Action Plan, HUD approved the amendment on January 13, 2009, and on March 24, 2009 Council appropriated $2,830,072 in CDBG NSP funds consistent with the approved plan; and WHEREAS, HUD approved a substantial amendment to the City of Chula Vista 2008/2009 Action Plan for the additional uses of program income not to exceed $1,750,000 for rental housing, of which $1,000,000 has already been expended; and WHEREAS, on March 23, 2010, pursuant to .Council Resolution 2010-059, Council authorized The City Manager to reallocate unobligated NSP funds with existing non-profit NSP contractors/developers. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista approves the amendment to the agreement between the City of Chula Vista and the San Diego Community Housing Corporation to provide permanent rental housing in accordance with NSP and HOME program requirements, and authorizes the City Manager to execute the amendment and any documents necessary to secure the City's financial interest. 2-4 Resolution No. Page 2 Presented by Gary Halbert, AICP, PE Assistant City Manager/ Development Services Director Approved as to form by ~wwd'' ~ Glen R. Googins City Attorney 2-5 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Glen R. Googins City Attorney Dated: ~ ~ ~~~ 2- FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA, AND SAN DIEGO COl~~IlVIUNITY HOUSING CORPORATION FOR MANAGEMENT AND IMPLEMENTATION OF NEIGHBORHOOD STABILIZATION AND HOME INVESTMENT PARTNERSHIP PROGRAM 2-6 FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO COMMUNITY HOUSING CORPORATION FOR MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD STABILIZATION AND HOME INVESTMENT PARTNERSHIP PROGRAM This First Amendment (hereinafter "First Amendment") to the October 7, 2009 Agreement (Exhibit 1) between the City and the San Diego Community Housing Corporation, effective is between the City of Chula Vista ("City") and the San Diego Community Housing Corporation ("Contractor" [previously referred to as "Developer"]) (collectively the "Parties"), and is made with reference to the following facts: RECITALS A. The City Council of the City of Chula Vista approved a Developer Agreement on October 6, 2009 between the City of Chula Vista and San Diego Community Housing Corporation to acquire and rehabilitate foreclosed properties for the purposes of renting them to eligible low- income households for eligible households within Neighborhood Stabilization Program (NSP) eligible target areas. Contractor was referred to as "Developer." B. After Council approval, the City of Chula Vista and San Diego Community Housing Corporation entered into an agreement, dated October- 7, 2009 for Management and Implementation of a Neighborhood Stabilization Program (the "October 7, 2009 Agreement"), attached as Exhibit 1. C. Pursuant to the October 7, 2009 Agreement, Developer agreed to acquire, rehabilitate, and rent properties to eligible NSP low-income renters. D. Pursuant to Council Resolution 2012-003, the City wishes to allow San Diego Community Housing Corporation to use recaptured NSP funds to acquire and rehabilitate additional properties for low income rentals in accordance with NSP program requirements. E. Pursuant to Council Resolution 2012-098 and 2011-078, the City allocated HOME Investment Partnership fund for the production of housing that includes the creation of affordable rental opportunities. F. Pursuant to HOME Commitment requirements, the City must obligate said funds for uses that were previously approved by Council. G. The Catalog of Federal Domestic Assistance number for HOME funding is 14.239. H. The Catalog of Federal Domestic Assistance number for NSP funding is 14.218. First Amendment to Agreement Page 1 2-~ I. Pursuant to this First Amendment, San Diego Community Housing Corporation will be acting as a Contractor to acquire, rehabilitate properties for uses previously approved by Council using NSP and HOME funds (further described in Exhibit B). AGREEMENT The Parties, for valuable consideration, agree as follows: 1. This First Amendment is contingent on the City appropriating the necessary funds to continue the administration of the Neighborhood Stabilization Program and HOME Investment Partnership funds. 2. Contractor shall work with the City to ensure that the HOME and NSP funds are expended timely as to not cause the City to have an expenditure deficiency with the Department of Housing and Urban Development. 3. The First Amendment is contingent upon the City completing an environmental review for each property purchased using HUD funds (HOME and NSP). Notwithstanding any provision of this Agreement, the parties hereto agree and acknowledge that this Agreement constitutes a conditional commitment of HOME funds and does not constitute a full 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 Chula Vista (if needed) of a release of funds from the U.S. Department of Housing and Urban Development under 24 CFR Part §58. The parties further agree that the provision of any funds to the project is conditioned on the City's determination to proceed with, modify or cancel the project based on the results of a subsequent environmental review. 4. The Contractor shall not enter into a purchase agreement (undertaking or committing any funds to physical or choice-limiting actions, including property acquisition, demolition, movement, rehabilitation, conversion, repair or construction prior to the environmental clearance) without City approval. A violation of this provision may result in the denial of any funds under the agreement. Any work performed under this agreement requires an environmental clearance and advice from the City, before proceeding with the project and/or proceed with execution of a purchase contract. 5. This First Amendment shall be effective on the later of the following dates: (i) execution of this First Amendment by the City; or (ii) satisfaction of the contingencies set forth in paragraph 1, above. 6. The October 7, 2009 Agreement shall be amended as follows: a. In Paragraph 1 "Work to be Performed" the first two sentences shall be amended to add HOME funds (further described in Exhibit B) and San Diego Community Housing Corporation acting as a Contractor (instead of a Developer) and shall take the same obligations as the City as described in the City's Annual Funding Plan for the use of HOME funds. First Amendment to Agreement Page 2 2-$ b. In Paragraph 3, "Compensation," the Contractor shall earn reasonable fee not to exceed 5 percent for properties that need less than $10,000 in rehabilitation and up to 7% for properties that need over $10,001 in rehabilitation. c. In Paragraph 4, "Compensation," the following shall be added to the end of the paragraph: "Consultant will commit and expend the additional appropriation of anticipated revenue received from projects sold in an amount not to exceed $750,000 in NSP and $700,000 of HOME funds that must be committed and expended by June 30, 2014." d. In Paragraph 7, "Term," the services shall start on June 13, 2012 and end on June 30, 2014, unless all parties agree to an extended term. e. In Attachment A, the "Scope of Work" section shall now read as follows: Contractor (previously acting as Developer; • Shall utilize Neighborhood Stabilization Program (NSP) funding and HOME Investment Partnership Act funds for purchase and rehabilitation of foreclosed and abandoned properties for use of permanent rental housing in NSP eligible areas and Citywide for HOME funds and provide project management and oversight of services for certain aspects of the NSP and HOME until the City takes title to the property at escrow, hereinafter referred to as "Project(s)." • Shall perform a financial analysis to determine financial feasibility of the project factoring in affordability period and rent levels as described in the City NSP Plan and HOME Annual Funding Plan. • Submit information of each proposed property to be acquired with NSP and HOME funds for City review and approval prior to acquisition. • Shall negotiate a discount purchase price (minimum 1 % of appraised value) for certain identified abandoned and/or foreclosed residential properties from lenders/property owners in accordance with NSP guidelines, and shall perform due diligence to ensure that all properties acquired have clear marketable title. For properties acquired using HOME funds, purchase price shall not exceed fair market value. • Properties purchased, rehabilitated, and leased under this agreement may only be used to benefit eligible households earning less than fifty 50% (percent) of the Area Median Income (AMI) and at Home Investment Partnerships Program rent levels as defined in 24 CFR Part 92.252(a), (c), (e) and (f), and 92.254, as defined by the NSP and the City's Annual Funding Plans and Amendments. • The cost of acquisition and/or rehabilitation of properties purchased under the NSP and HOME funds are eligible expenses under this agreement. • Shall carry out the Project under this Agreement in accordance with the guidelines and regulations of the Neighborhood Stabilization Program as authorized under Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA), as amended and HOME Investment Partnership Act regulations found at 24 CFR Part 92, as amended. • Shall use the City of Chula Rehabilitation Standards and at a minimum comply with applicable laws, codes, and other requirements relating to health and safety, quality, and First Amendment to Agreement Page 3 2-9 habitability in order to rent such homes and properties. • Shall obtain any needed permits from the City of Chula Vista. • Will competitively bid the rehabilitation and submit a copy of the bid package and specifications for City review and approval for rehabilitation that exceeds $10,000 or at the request of the City. The project shall be advertised to solicit the most responsive and responsible bidder. Contractor shall notify potential bidders that this is a federally funded NSP project that includes local, Federal, and State requirements. The applicable Davis- Bacon decision rate shall be included in the bid package, if applicable. • Check the Excluded Parties List to ensure Contractors are not debarred or suspended. • Contractor shall incumber the title to the NSP eligible affordable housing project(s) using the City's Affordable Housing Agreement with a minimum affordability period of 15 years. C~tv • The City will provide Contractor with a reasonable fee (not to exceed 5% of total portfolio of assisted projects that need more than $10;000 in rehabilitation and not to exceed 7% for those properties that need over $10,001 in rehabilitation, as approved by the City}, related to NSP and HOME-assisted housing acquisition and rehabilitation activities, at a level approved by the City. • The City shall provide Contractor with an Affordable Housing Agreement to be recorded at close of escrow. • The City shall provide the Voluntary Acquisition form to acquire properties using NSP and HOME funds. • City shall provide Contractor with maps of NSP eligible areas as approved by the Department of Housing and Urban Development. • City shall provide technical assistance to Contractor to ensure NSP program is carried out successfully and in compliance with HUD regulations. Performance Measurement: Shall now read: Create a minimum of 6 to 8 rental units. Time Schedule: Shall now read: Contractor will make good faith efforts and reasonable efforts to fulfill the project by June 30, 2014, or earlier Budget: "In no case shall Contractor be entitled to, nor shall City reimburse Contractor, no more than $1,450,000 ($750,000 of NSP and $700,000 of HOME) has already been allocated for the purchase and rehabilitation of additional properties." All other terms of the Agreement shall remain in full force and effect. However, if a conflict exists between the terms in this First Amendment and prior terms, the terms in this First Amendment shall control. First Amendment to Agreement Page 4 2-~~ SIGNATURE PAGE TO FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO COMMUNITY HOUSING CORPORATION FOR MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD STABILIZATION PROGRAM AND HOME INVESTMENT PARTNERSHIP ACT PROGRAM IN WITNESS WHEREOF, City and Contractor have executed this First Amendment to the Agreement indicating that they have read and understood this Amendment and indicate their full and complete consent to its terms: Dated: , 2012 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: San Diego Community Housing Corporation By: ' ~~ J. R e $t. Germain, ief Executive Officer First Amendment to Agreement Signature Page 2-11 EXHIBIT 1 ~~~(/ ~~ ~~~ cnv o~ CH[~! VFSTA AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND SAN DIEGO COMMUNITY HOUSING CORPORATION FOR MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD STABILIZATION PROGRAM This Contract Number 4 1 2039 1 333 by and between San Diego Community Housing Corporation {hereinafter referred to as "Developer") and the City of Chula Vista {hereinafter referred to as "City") is effective on October 7, 2009 {"Effective Date"j. WITNESSETH: WHEREAS, the Neighborhood Stabilization Program {NSP), authorized underTitle III of Division B of the Housing and Economic Recovery Act of 2008 (HERAJ, is a special allocation of Community Development Block Grant {CDBG) funds targeted at acquisition, rehabilitation of foreclosed and abandoned properties in eligible neighborhoods; and WHEREAS, the Department of Housing and Urban Development described regulatory requirements in Federal Register Notice (FR-5255-N-Ol) dated October 6, 2008, and amended such requirements by Federal Register Notice (FR-5255-N-02j Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2x08; and WHEREAS, the City, is authorized to apply for and accept Neighborhood Stabilization Program Grant funds; and WHEREAS, City incorporated the use of Neighborhood Stabilization Program funds described in Attachment "A" hereof (hereinafter referred to as the "Project") into the City's Community Development Block Grant/HOME Investment Partnership/Emergency Shelter Grant Annual Funding Plan Amendment which was submitted to the U.S. Department of Housing and Urban Development {HUD); and WHEREAS, HUD has approved the City Annual Funding Plan Amendment for the Neighborhood Stabilization Program; and WHEREAS, Neighborhood Stabilization Program funds are generally construed as CDBG program funds, subject to CDBG program requirements (unless superseded by HERA) and is considered a special allocation of Fiscal Year (FY) 2008 CDBG funding; and, ............................. NSP Developer Agreement Page 1 of 1 1 2-12 WHEREAS, it is the desire of the Developer and the City that the Project be implemented by the Developer; and WHEREAS, the Developer chalk undertake the same obligations to the City with respect to the Project in the City's aforesaid Amendment to the Annual Funding Plan for participation in the Neighborhood Stabilization Program; NOW THEREFORE, IT IS AGREED AS FOLLOWS: 1. WORK TO BE PERFORMED: Developer shall implement the scope of work {"Scope of Work"} described in Attachment A, hereof fully and in accordance with the terms of the Annual Funding Plan Amendment approved by the City and submitted to HUD in application for NSP funds to carry out the Project and the Certifications which were submitted concurrently with the Annual Funding Plan Amendment. The Annual Funding Plan and Certifications form is hereby incorporated by reference into this contract fully as if set forth herein. Developer shall also undertake the same obligations to the City that the City has undertaken to HUD pursuant to said Annual Funding Pfau Amendment and Certifications. The obligations undertaken by Developer include, but are not limited to, the obligation as applicable comply with each of the following as may be amended from time to time and be amended for specific Neighborhood Stabilization Program activities described in Federal Register Notices FR-5255-N-O1 and FR-5255-N-02: a. HERA alternative requirements to provisions under Title I of the Housing and Community Development Act of 1974 {Public Law 93-383, as amended, 42 USC § 5301, et seq.}, as amended, except for requirements related to fair housing, nondiscrimination, labor standards, and the environmenta! (including lead-based paint}, in accordance with the terms of section 2301 of HERA and for the sole purpose of expending the use of grant funds; b. HUD regulations relating to Community Development Block Grants {24 CFR 570.1, et seq.} unless superseded by HERA; c. The regulations in 24 CFR Parf 58 specifying other provisions of the law that further the purposes of the National Environmental Policy Act of 1969 and the procedures by which grantees must fulfill their environmental responsibilities; d. Title VI of the Civil Rights Act of 1964 (42 USC § 2000d}; Title VII of the Civil Rights Act of 1964 {Public Law 88-352}; Title VIII of the Civil Rights Act of 19b8 {Fair Housing Act, 42 USC § 3b01, of seq.}; Section 109 of the Housing and Community Development Act of 1974; Executive Order 1 1246, as amended {equal employment opportunity); Executive Order 1 1063 (non-discrimination), as amended by Executive Order 12259; and any HUD regulations heretofore issued or to be issued to implement these authorities relating to civil rights; e. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u. NSP Developer Agreement Poge 2 of 11 2-13 All section 3 covered contracts shall include the following clause (referred to as the "section 3 clause"}: i. The work to be performed under this contract is subject to the requirements of section 3 of the Housing and Urban Development Act of 3 968, as amended, 12 U.S.C. 1741 u {section 3}. The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. ii. The parties to this contract agree to comply with HUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. iii. The Developer agrees to send to each labor organization or representative of workers with which the Developer -has a collective bargaihing agreement or other understanding, if any, a notice advising -the labor organization or workers' representative of the Develo-per's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. iv. The Developer agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the sub-contractor is in violation of the regulations in 24 CFR part 135. The Developer will not subcontract with any sub-contractor where the Developer has notice or knowledge that the sub contractor has been found in violation of the reguia#ions in 24 CFR part 135. v. The ©eveioper will certify that any vacant employment positions, including training positions, that are tiled (1) after the Developer is selected but before the contract is executed, and {2) with persons other than those. to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the Developer's obligations under 24 CFR part 135. vi. Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts. vii. With respect to work pertormed in connection with section 3 covered Indian housing assistance, section 7(b) of the Indian Self-Determination and Educa#ion Assistance Act (25 U.S.C. 450e1 also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible {i} preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and NSP Developer Agreement Page 3 of.l 1 2-14 Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of section 3 and section 7(b} agree to comply with section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1979, 42 USC § 4601, et seq., and regulations adopted to implement that Act in 49 CFR Parf 24; except as those provisions are modified by the Notice for the NSP Program published by HUD. g. Office of Management and Budget ("OMB"} Circular A-122 entitled "Cost Principles for Non-Profit Organizations"; OMB Circular A-133 entitled "Audits of States, Local Governments, and Non-Profit Organizations"; and OMB Circular A-110 entitled "Uniform Administrative Requirement for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non- ProfitOrganizations." h. Grant administration requirements as described in 24 CFR 570.504 and CDBG program income requirements at 24 CFR, Part 570.500(a} shall apply to the amounts received by the City. Developer shall equally share any net operating income earned (i.e. residual receipts} by Developer in carrying out the activities of this Contract with the City. Residual Receipts and Program Income must be used for a NSP eligible activity. Upon expiration of this Contract, Developer shall transfer to the City any Neighborhood Stabilization Community Development Block Grant funds on hand at the .time of expiration and any accounts receivable attributable to the use of Neighborhood Stabilization Community Development Block Grant funds. Any real property under Developer's control acquired or improved in whole or in part with Community Development Block Grant funds will be used to meet one of the Neighborhood Stabilization Program National Objectives, as defined in 24 CFR 570.208, and outlined in the City of Chula Vista Annual Funding Plan Amendment (i.e. NSP Plan); i. 24 CFR 570.505 concerning use of real property; j. The following laws and regulations relating to preservation of historic places: National Historic Preservation Act of 1966 (Public Law 89-665); the Historical and Archaeaiogical Preservation Act of 1974 (Public Law 93-291 }; and Executive Order 1 1593; k. The Labor Standards Regulations set forth in 24 CFR 570.603; Labor Code section 1771 concerning prevailing wages; m. The Hatch Act relating to the conduct of political activities (5 U.S.C. § 1501, et seq.); n. The Flood Disaster Protecfion Act of 1973 (42 U.S.C. § 4001, et seq., and the implementing regulations in 44 CFR Parts 59-78}; o. The Rehabilitation Act of 1973 (Public Law 93-112} as amended, including NSP Developer Agreement Page 4 of i 1 2-15 Section 504 which relates to nondiscrimination in federal programs and HUD 24 CFR Parf 8; p. The Clean Air Aci {42 U.S.C. § 7401, et seq.} and the Federal Water Pollution Control Act, as amended (33 U.S.C. § 1251, et seq.) and the regulations adopted pursuant thereto (40 CFR Parf 6); q. The Drug-Free Workplace Act of 1988 (Public i_aw 100-690}; r. The Lead-Based Paint Poisoning Prevention Act, the Residential Lead-Based Paint Hazard Reduction Act of 1992, and implementing regulations at 24 CFR Parf 35; No member, officer or employee of the Developer, or its designee or agents, no member of the governing body of the locality in which the program is situated, and no other pubiic official of such locality or localities who exercises any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, shall have any interest, direct, or indirect, in any contract or subcontract, or the process thereof, for work to be performed in connection with the program assisted under the Grant, and #hat it shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this certification. The Developer certifies, that in accordance with Section 319 of Public Law 101-121, to the best of his or her knowledge and belief that: No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee 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 cooperative contract, and the extension, continuation, renewals, amendment, or modifications of any federal contract, grant loan, or cooperative contract. ii. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative contract, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. u. The Architectural Barriers Act of 1968 (42 U.S.C. § 4151, et seq.}; v. The Americans with. Discsbilities Act (42 U.S.C. § 12101); and w. The bonding requirements described in 24 CFR Part 85.36 required for construction or facility improvement contracts or subcontracts that exceed the simplified acquisition threshold (defined at 41 U.S.C. 403(1 i }}. These requirements are further described in Attachment A, which is attached NSP Developer Agreement Page 5 of 11 2-16 hereto and incorporated by reference. x. Developer shall hold City harmless-and .indemnify City against any harm that it may suffer with respect to HUD on account of any failure on the part of the Developer to comply with the requirements of any such obligation. 2. COMPLIANCE WITH LAWS: Developer shall comply with all applicable local, state, and .federal laws, regulations, ordinances, and City Policies when performing the work required by this Contract. 3. COMPENSATION: City shall reimburse Developer up to 10% for a developer fee for the portfolio of projects (rental units) assistance and with reasonable gap financing expenses it incurs for work .performed under this Contract. Total reimbursement (developer fee and gap financing} shall not exceed S1,00~,000. Developer shall not submit claims to the City nor sha{i City reimburse Developer for costs for which Developer is reimbursed from a source other than the funds allocated fior work under this Contract. 4. COMPENSATION SCHEDULE: City sha#1 pay Developer monthly progress payments upon submittal by Developer of a certified statement of actual expenditures incurred, provided, however, that not more than 90% of the total agreed compensation will be paid during the performance of this Contract. The balance due shall be paid upon certification by Developer that all of the required services have been completed. Payment by City is not to be construed as final in the event HUD disallows reimbursement for the project or any portion thereof. The 10% retention will not apply to acquisition or service contracts. 5. INDIRECT COSTS: If indirect costs are charged, the Developer will develop an indirect cost allocation plan for determining the appropriate Developer's share of administrative costs and shall subm'rf such plan to the City for approval. 6. EXPENDITURE STANDARD: To insure effective administration and performance of approved Neighborhood Stabilization Program projects and to meet HUD performance standards, Developer shall demonstrate reasonable progress on implementation of the project, expending all contracted funds within the term of the contract. In the event all funds are not. expended within the term period, the City shall notify the Developer of the expenditure deficiency. Developer will have a total of 30 days from the date of the City's written notification to correct the deficiency. If the deficiency is not corrected within that time, Developer agrees that the City may reallocate the amount of the expenditure deficiency. 7. TERM: This contract shall commence when executed by the parties and sha[I continue in effect until terminated as provided herein or until Developer has carried out all its obligations under the contrdct. Services of the Developer shall start on the 1~ day of Sep#ember 2009 and end on the 30"' day of June of 2010. With City approval, the term of this Agreement and the provisions herein shall be extended to cover any additional time period during which the Developer remains in control of NSP/CDBG funds or other NSP/CDBG assets, including program income. 8. TERMINATION FOR CONVENIENCE: The City may permit the agreement to be NSP Developer Agreement Page 6 of 11 2-17 terminated for convenience in accordance with 24 CFR 85.44. 9. AUTOMATIC TERMINATION: This Contract shall terminate at the discretion of the City if the United States Government terminates the Neighborhood Stabilization Community Development Block Grant Program or terminates the Project that is the subject of this Contract. 10. TERMINATION OF CONTRACT FOR CAUSE: Developer and City recognize that the City is the governmental entity which executed the grant agreement received pursuant to the City's application and that City is responsible for the proper performance of the Project. If Developer fails to fulfill in a timely and proper manner its obligations under this Contract to undertake, conduct or perform the Project identified in this Contract, or if Developer violates any state laws or regulations or local ordinances or regulations applicable to implementation of the Project, or if Developer violates any provisions of this contract, City shall have the right to terminate this contract by giving at least five days written notice to Developer of the effective date of termination. Even if City terminates the Contract, Developer shall remain liable to .City for all damages sustained by City due to Developer's failure to fulfill any provisions of this Contract, and City may withhold any reimbursement payments form Developer for the purpose of set-off until the exact amount of damages due to City from Developer is determined. Developer hereby expressly waives any and all claims for damages for compensation arising under this contract except as set forth in this section in the event of such termination. The City may also, in lieu of termination and at its discretion, take any action, as stated in 24 CFR 85.43, subdivision (a7, sections 1 to 5, to enforce this Agreement. 1 1. CONTRACT ADMINISTRATION: The Housina Manager of the City of Chula Vista shall administer this Contract on behalf of the City. The Chief Executive Officer of the San Diego Community Housina Corporation shall administer this contract on behalf of the Developer. Within a reasonable time after the City makes a request, Developer shall give the City progress reports or other documentation as required by the City's Administrator to audit Developer's performance of this Contract. 12. RECORDS AND REPORTS: The Developer shall maintain records and make such reports as required by the City of Chula Vista to, but not limited to, enable the City to analyze Developer's project. All records of the Developer related to this Contract or work performed under the Contract shall be open and available for inspection by HUD and/or City monitors and auditors-during normal business hours. 13. RETENTION: The Developer shall retain -all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5} years. The retention period begins on the date of the submission of the Grantee's annua# performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before fihe expiration of the five-year period, then such records must be retained NSP Developer Agreement Page 7 of 1 1 2-18 until completion of the actions and resolution of all issues, or the expiration of the five-year period, whichever occurs later. 14. DATA: The Developer shall maintain data demonstrating eligibility (iow- moderate locations) for services provided. Such data shall include, but not be limited to exact location of the work performed, and a description of service provided. Such information shall be made available to City monitors or their designees for review upon request. 15. DISCLOSURE: The Developer understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the City's or Developer's responsibilities with respect to services provided under this cantract; is prohibited by the state of Federal law privacy laws unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. _ 16. QUARTERLY REPORTS/ANNUAL REPORT: Developer shill provide the City with a quarterly report, submitted no later than 15 days after the last day of the previous quarter, which includes a narrative of the services provided, progress Towards meeting the timeline goals stated in the cantract, and an itemized accounting of the expenditures of CDBG funds during the previous quarter. Fai-ure to submit quarterly reports in a timely manner will result in withholding of CDBG funds until the report has been submitted. Quarterly Performance Reports are due October 15 {15t Quarter), January 15 {2~d Quarter}, April 15, {3~d Quarter) and July 15 (4th Quarter). The Annual Performance Report will also be due July 15. 17. INDEMNIFICATION: City shall not be liable for, and Developer shall defend, indemnify, and hold the City, ifs, officers, agents, employees and volunteers harmless from and against any and all claims, deductibles, self-insured retentions, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys' fees and court costs by this Contract arising either d"irectly or indirectly from any act, error, omission or negligence of Developer or its officers, employees, agents, Developers, licensees or servants, .contractors or subcontractors, including without limitation, claims caused by the concurrent act, error, omission or negligence, whether active or passive, of City, and/or its agents, officers, employees or volunteers. However, Developer shall have no obligation to defend or indemnify City from a claim if it is determined by a court of competent jurisdiction that such claim was caused by the sole negligence or willful misconduct of City or its agents or employees. Developer and its successors, assigns, and guarantors, if any, jointly and severally agree to indemnify, defend (with counsel selected by City) reimburse and hold City and its officers, employees and agents harmless from any claims, judgments, damages, penalties, fines, costs, liabilities (including sums paid in settlement .of claims} or loss, including attorneys' fees, consultant's fees, and experts' fees which arise during or after the contract term for any losses incurred in connection with investigation of site conditions, or any cleanup, remedial, removal or restoration work required by any hazardous materials laws because NSP Developer Agreement Page 8 of 11 2-19 of the presence of hazardous materials, in the soil, ground water or soil vapors on the premises, and the release or discharge of hazardous materials by Developer during the course of any alteration or improvements of the Premises by Developer, unless hazardous materials are present solely as a result of the gross negligence or willful misconduct of City, its officers, employees or agents. The indemnification provided by this section shall also specifically cover costs incurred in responding to: a. Hazardous materials present or suspected to be present in the soil, ground water to or under the Property before the commencement date; b. Ffazardous materials that migrate, flow, percolate, diffuse, or in any way move on to or under the Property following the commencement date; c. Hazardous materials present on or under the Property as a result of any discharge, release, dumping, spilling {accidental or_ otherwiseJ, onto the Property during or after the term of this Contract by any person, corpo-ration, partnership or entity other than City. Funding from this program is a result of a Federal Grant, should Federal funding be terminated for any reason, City is not liable for any consequence of any type resulting directly or indirectly from the termination of federal funding and Developer agrees, in addition to any other indemnification provision set forth in this agreement, to indemnify, hold harmless, and defend the City against any claim, cause of action, or any form of liability as a result of, directly or indirectly, funding termination. The foregoing indemnities shrill survive the expiration or termination of the contract any or any transfer of all or any portion of the Premises, or of any interest in this Contract and shall be governed by the laws of the State of California. 18. AUDIT COSTS: Developer shall reimburse City for all costs incurred to investigate and audit Developer's performance of its duties under the Contract if Developer is subsequently found to have violated the terms of the Contract. Reimbursement shalt include ail direct and indirect expenditures incurred to conduct the investigation or audit. City may deduct all such costs from any amount due Developer under this Contract. 19. ENTIRE AGREEMENT: This Contract and referenced Attachments and Exhibits constitutes the entire agreement of the parties and supersedes any previous oral or written understandings or contracts related to the matters covered herein. 20. MODIFICATION. This Contract may not be modified except by written amendment executed by each party. 21. ACKNOWLEDGEMENT OF FUNDING: Developer shall identify the City of Chula Vista as the source of funding, or, if applicable, one of the sources of funding in public announcements that are made regarding the .Project. Acknowledgement of the City's funding roles, for example, should be included in publicity materials related to the Project. In addition, Developer agrees that the NSP Developer Agreement Page 9 of 1 1 2-20 City shall be apprised of any special events finked to the Project so that a review can be made on what role, if any, the City would assume. 22. INSURANCE: Developer agrees to comply with the insurance requirement set forth in Attachment "B" and/or any additional insurance requirements requested by the City, as the City deems appropriate. Failure to acquire and maintain the required insurance is a basis to take an enforcement action, or terminate this agreement. 23. NO WAIVER: No failure, inaction, neglect or delay by City in exercising any of its rights under this Contract shall operate as a waiver, forfeiture or abandonment of such rights or any other rights under this Contract. 24. NOTICE: Any notice or notices required or permitted to be given pursuant to this Contract shall be personally served by the party giving notice or shall be served by certified mail. Notices shall be sufficient if personally served on or if sent by. certified mail, postage prepaid, addressed to: Developer: City: San Diego Community Housing Corp. City of Chula Vista Chief Executive Officer Housing Manager b160 Mission Gorge Road., Suite 204 27b Fourth Avenue San Diego, CA 92120 Chula Vista, CA 91910 NSP Developer Agreement Page 10 of 1 1 2-21 Attachment 1: IN WITNESS VdHEREOF,, the Parties have executed this contract as of the dafe fist written alao~e: CITY O# CHllLA VISTA ~, ,~' Jarr.=tes D Sandoval, C,ify Manager, City of Chula Vista .~' APPR VED AS TO FORM Bart Miesfeld City Attorney ATTEST E Cit Glerk SAN D1EG0 CQMMWN(TY HQUSING CORPORATION.. ~. J. -Bert St. Germain, Chief ecu Eve Officer- Attachment A: Scope of Work:- Attachment B: Insurance Requirern'ents Attachment C: Income .Limits Attachment a: Disclosure Form Exhibit 1: Deed of Trust Exhibit :2: Promissory Note Exhibit3: Covenant 2-22 ATTACHMENT "A" SCOPE OF WORK SAN DIEGO COMMUNITY HOUSING CORPORATION (DEVELOPER} has a certain project to be implemented with Neighborhood Stabilization Program (NSP) Community Development Block Grant (CDBG) Program funds. The work to be accomplished includes the following: Developer: • Shall utilize Neighborhood Stabilization Program (NSP} funding for purchase and rehabilitation of foreclosed and abandoned properties tar use of permanent rental housing in NSP eligible areas and provide project management and oversight of services for certain aspects of the NSP, including management and maintenance of affordable rental properties, hereinafter referred to as "Project(s}." • Shall perform a subsidy I~ryering analysis to determine-financial feasiieility of the project factoring in affordability period and rent revels as described in the City NSP Plan. • Obtain additional financing to finance the acquisition and/or rehabilitation. • NSP funds will be avai{able for gap financing. • Submit information of each proposed property to be acquired with NSP funds for City review and approval prior to acquisition. • Shall negotiate a discount purchase price (minimum 1 % of appraised value) for certain identified abandoned and/or foreclosed residential properties from lenders/property owners in accordance with NSP guide€ines, and shall perform due diligence to ensure that all properties acquired have clear marketable title. • Properties purchased, rehabilitated, and leased under this agreement may only be used to benefit eligible households earning less than fifty 50% [percent) of the Area Median Income (AMI) and at Home Investment Partnerships Program rent levels as defined in 24 CFR Part 92.252(a}, [c), (e} and (f}, and 92.254, as defined by the NSP and the City's Annual Funding Plan Amendment. • The cost of acquisition and/or rehabilitation of properties purchased under the NSP are eligible expenses under this agreement. • Shall carry out the Project under this Agreement in accordance with the guidelines and regulations of the Neighborhood Stabilization Program as authorized under Title Ili of Division B of the Housing and Economic Recovery Act of 2008 (HERA), as amended. • Shall use the City of Chula Rehabilitation Standards and at a minimum comply with applicable laws, codes, and other requirements relating to health and safety, quality, and habitabiiity in order to rent such homes and properties. • Shall obtain any needed permits from the City of Chula Vista. Will competitively bid the rehabilitation and submit a copy of the bid package and specifications for City review and approval. The project shall be advertised to solicit the most responsive and responsible bidder. Developer shall notify potential bidders that this is a federally funded NSP project that includes local, Federal, and Slate requirements. The applicable Davis-Bacon decision rate shall be included in the bid package, if applicable. • Check the Excluded Parties List to ensure Contractors are not debarred or NSP Developer Agreement Attachment "A" f3 2-23 Pagel o suspended. Developer shall incumber the title to the NSP eligible affordable housing projects} using the City's Deed of Trust (Exhibit 1), Note Secured By Deed of Trust {Exhibit 2), and Declarations of Covenants, Conditions and Restrictions (Exhibit 3) to be recorded at time of escrow securing the City's financial and property interest in the project{s) and affordability period {minimum 55 years). With regard to the NSP eligible affordable housing project(s), Developer shall execute and use, be bound by and abide by the terms of, and cause to be encumbered the title of property acquired under the Project(s) as stated in the attached City's Deed of Trust (Exhibit 1),' Note Secured By Deed of Trust [Exhibit 2), and Declarations of Covenants, Conditions and Restrictions {Exhibit 3) to be recorded at time of escrow securing the City's financial interest in the project(s) and affordability period (minimum 55 years). Exhibits 1 to 3 are hereby incorporated by reference into this agreement. Ci • The City will provide Developef with a reasonable developer fee (not to exceed 10% of total portfolio of assisted projects}, related to NSP-assisted housing rehabilitation or construction activities, at a level approved by the City. • The City shalt provide Developer with Deed of Trust {Exhibit 1 }, Promissory Note (Exhibit 2), and Covenant Agreement (Exhibit 3) to be recorded at time of escrow securing the City's financial interest in the project(s) and affordability period {minimum 55 years}. • The City shall provide the Voluntary Acquisition form to acquire properties using NSP funds. • City shall provide Developer with maps of NSP eligible areas as approved by the Department of Housing and Urban Development. • City shall provide technical assistance to Developer to ensure NSP program is carried out successfully and in compliance with HUD regulations. The Scope of Services outlined above shall not be altered without written approval of the City. Performance Measurement: Create a minimum of 4 rental units serving households earning less than 50% of the Area Median Income for the City of Chula Vista. CDBG National Objective: Very Low Income Residents at or below 50 (~o} Percent Area Median Income A. T{ME SCHEDULE: DEVELOPER will make all good faith and reasonable efforts to fullfill the project by June 30, 2010, or earlier. B. BUDGET: DEVELOPER shall make all good faith- and, reasonable efforts to complete the work under this Contract within the following budget. In no case shall DEVELOPER be entitled to, nor shall City reimburse DEVELOPER, more than 10% developer fee and not more than $1,000,000 for work performed under this Contract. Attachment "A" -Scope of Work 2-24 Page 2 of 3 In addition to the required quarterly reports identified in Section 12 of this CONTRACT, the Developer shalt document all clients served to ensure that at least 51 percent of those served are at or below 50 percent of the Area Median Income as established by the U.S. Department of Housing and Urban Development (HUD}. This information is to be collected and compiled semi-annually and submitted to the City each January 15 and July 7 5 during the affordability period and shall be submitted to the City of Chula Vista Development Services Department -Housing Division upon receipt of a written request and at the time of any monitoring of project records. Developer shall also submit to the City in a timely manner other reports as requested/required by HUD and/or the City including, but not limited to Contractor/Subcontractor: Semi-Annual Labor Standards Enforcement Reports {HUD- 4710), Annual Minority Business Enterprise Activity Reports {HUD-2516}, Section 3 Reports {HUD-60002} and provide, as requested by HUD and/or the Cit=y, information necessary to prepare the Grantee Consolidated Annual Performance and Evaluation Report {CAPER}, Consolidated Plan, Annual Plan and other such reports and/ar plans. Attachment "A" -Scope oT vvorK 2-25 Page 3 of 3 ATTACHMENT "B" INSURANCE REQUIREMENTS Contractor/Developer 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 Deve}oper/Contractor, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement or work. The insurance must be maintained for the duration 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 C GOOO l j 2. insurance Services Office Form Number CA 0001 covering Automobiie Liability, codel (any au#a). 3. Workers' Compensation insurance as required by the State of California and Employer's Liability insurance. Minimum Limits of Insurance Developer/Contractor must maintain limits no less than: 1. General Licibility: $1,000,000 per occurrence for bodily injury, personal injury and (Including operations, property damage. It Commercial General Liability insurance products and completed with a general aggregate limit is used, either the general operations, as applicable.) aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. 2. Automobiie Liability: $1,000,000 per accident for bodily injury and property damage. 3. Workers' Compensation Statutory Employer's Liability: $1,000,000 each accident $1,000,000 disease-policy limit $1,000,000 disease-each employee Deductibles and Self-Insured Refenfions Any deductibles orself-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 orself-insured retentions as they pertain to the City, its offscers, officials, employees and volunteers; or the Developer/Contractor 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: 7. 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 Developer/contractor, where applicable, and, with respect #o liability arising out of work or operations performed by or on behalf of the Developer/contractor including providing materials, parts or equipment furnished in connection with such work or operations. The general liability addifionat insured coverage must be provided in the form of an endorsement to fhe Attachment "B" -Insurance Requirements Page 1 of 2 2-26 peveloper'sJconfracfor's insurance using 1S0 CG 2010 {11 /8SJ or its equivalent. Specifically, the endorsement must not exclude Producfs /. Completed Operations coverage. 2. The Developer's/contractor's insurance coverage must be primary insurance as if 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 Developer/contractor and in no way relieves the Developer/contractor from its responsibility to provide insurance. Each insurance policy required by this clause must be endorsed to state that coverage will not be canceled by either party, except offer thirty (30) days' prior written notice to the City by certified mail, return receipt requested. 4. Coverage shall not extend to any indemnity coverage for the active neg-igence of fhe 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. Developers/Contractor'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. Acceptability of Insurers Insurance is fo be placed with licensed insurers admitted to transact business in the Sfafe of California with a current A.M. 8esf'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 Califomia 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 Sfafe Compensation Fund when not specifically rated. Verification of Coverage Developer/Contractor 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 conform to the contract requirements. Al! certificates and endorsements are to be received and approved by the Cify 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 DeveloperJContractor must include a(I subcontractors as insureds under its policies or furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors are subject to all of fihe requirements included in these specifications. Attachment "B" -Insurance Requirements Page 2 of 3 2-27 Bonding Requirements Prior to commencement of rehabilitation, Developer shall file with the City on the approved forms, the surety bonds in the amounts and for the purposes noted below. The surety must posses a minimum rating from A.M. Best Company of A-VII. and be fisted as an acceptable surety on federal bonds by the United States Department of the Treasury. Developer shall pay all premiums and costs thereof and incidental thereto, as security for payment of persons named in California Civil Code Section 3181 or amounts due under Unemployment Insurance Code with respec# to Work or Labor performed by any such claimant. A!I alterations, time extensions, extra and additional work, and other changes authorized by the Specifcations, or any part of the Contract, may be made without securing consent of the surety or sureties on the contract bonds. Each bond shall be signed by both Developer and the sureties. Should any surety or sureties be deemed unsatisfactory at any time by the City, notice will be given Developer to that effect, and Developer shall forthwith substitute a new surety or sureties satisfactory to the Dev~lop~r. No further payment shall be deetiied due or will be made under the Contract un#il the new sureties qualify -and are accepted by the City. i. A bid guarantee from each bidder equivalent to five percent of the bid price. The ~~bid guarantee" shall consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of his bid, execute such contractual documents as may be required within the time specified. ii. A performance bond on the part of the developer for 100 percent of the contract price, as determined from the prices in the bid form, and shall insure the faithful performance by developer of all work under the Contract. It shall also insure the replacing of, or making acceptable, any defective materials or faulty workmanship. iii. A payment bond on the par# of the contractor for 100 percent of the contract price, as determined from the prices in the bid form, and sha!# inure to the benefit of persons performing labor or furnishing materials in connection with the work of the proposed Contract. This bond shall be maintained in full force and effect until all work under the Contract is completed and accepted by the City, and until all claims for materials and labor have been paid. Attachment °B" -Insurance Requirements Page 3 of 3 2-28 ATTACHMENT "C" 2009 San Diego Income Limifs Median Income: $74,900 Exn'emely Low Income ~ ery Low Incc~nle Low )iicome ~~mts,• 3fl% 3a°~o ~fl% :?fl% Gfl°lo b~°lo 7fl°lo $fl°,fa size Income Income Income Inca~ne Income Iueome Income Income o]`~ 51"350 520 'Z{U fi23.154 528.900 534,680 53?.600 540.450 846,250 ~vo 519.850 523.100 526.4?U ~;3.05U 539,660 '542.950 546,2;4 55?,)00 ~E 52'.300 $26,000 5_9."50 $3".150 544,580 548.3{0 552,000 $59,00 FoL~IZ 524,800 528,900 S33,U~0 54I.?00 549.560 553.?00 X57.800 566,100 r=r~-> 526.800 531.200 53?.?00 $=14.600 54;,;0 558,000 562,400 $-1.40(1 sLx 528.750 5~33.4(IU S38.34U 54?.90U 54-480 562,300 S67,Oi0 $76.700 sE~~n 53(1,7?0 535,850 541.000 ${1.200 561.440 566.600 -S2I.650 $81.950 EIC<I3T S.i2,?50 5;8.150 ~43.6~0 $54,500 SE5,400 $"0,900 x'6.300 1i8-_L5t1 *Income Limits 80% and Below are Based on HUD Formula Income Limits Adjusted for High Housing Cost Area Attachment "C" -income Limits Page 1 of 1 2-29 ~1S/f ;~. C1iY OF cNUta visTn Disclosure Statement**'~ Pursuant to Council Policy 101-01, prior to any action upon matters that will reQuire discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownerships, financial interests, payments, or ca-npaign contributions must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the project that is the subject of the application or the contract (e.g., owner, applicant, contractor, subcontractor, material supplier). N/A 2. If any person* identified in section 1. above is a corporation or partnership, list the names of all individuals with an investment of $2000 or more in the business (corporation/partnership} entity. N/A 3. if any person* identified in section 1. above is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. N/A 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. ROBERT P. ITO CONSULTANT BOBBY SAITO VP ACQUISITION/PROJECT 5. Nas any person* identified in 1., 2., 3., or 4., above, or otherwise associated with this contract, project or application, had any financial dealings with an official** of the City of Chula Vista as it relates to this contract, project or application within the past 12 months? Yes No X 27b Fourth Avenue I Chula Vista I California l 91910 I (619) 585-5722 2-30 ~~i~r i~~ cnr of CFiULA V15TA _Di closure Statement**' if Yes, briefly describe the: nature of the financial interest the aft vial** tnay hay e in this contract:. 6, Has any person* anyorie identified in l., 2., 3., or 4;; above,. or otherwise associated with this contract, ;project or application, made a contribution of more than $250 within the past. twelve (12) months to a current member of the C}iula Vista City Council? NoX_ 'Yes ,lf yes; which. Council member? 7. Haas any person* identified it 1., 2., 3, or 4. above, or otherwise associated with this contract, project or application provided more than $420 (or an item of equi1Talent value) to an official** of the City of :Chula Vista in 'the past twelve (12) months'? (This includes being a source of income, money to retire-a legal debt, gift; loan, etc.} Yes Nom} _ If Yes.-which official** and what was the nature of item provided? $. Has any person* identified in l., 2;, 3.; or 4., above;. or otherwise associated with this contract, project or application, been a source of'ncome of $SOfl or mare to an official** of the City of Chula Vista in the past twelve (1.2) months`? Yes 7`rfo X If Yes, identify the official**-.and. the nature of the income. provided? K Date::: 8/2'q/09 5t ture of ContractorlApplcant ,~, ROBERT ST. GERMAIN Print or type tlan~e of ContractorfApplicant: '~ P'erson is tfefined as: any individual, firm; co-partnership; joint ver3ture, association, sa~iat club, fraternal'. organization;.. corporation, estate,. trust,. receiver, syndicate, any other county, city; municipality, district, or other political subdivision;.: or any other group or combination acting. as a unn. ** Official includes,.. but is not limited to: Iviayor, Council member, .Planning. Ccammissioner, Member of a board,. commission; or committee of the City, and City emptoyees or staff members. *~* "this Iaisclosure Statement must he completed at the"time the project application, or contract, is submitted to Gity staff far processing;,and updated within one week prior to consideration by the legislative body:. Last tipdated;lune 19,'ZQQ 27b Fourth Avenue ~ Chula Vista I California. , 91910 I {619) 5:85-5722_ 2-31 EXHIBIT 2 NEIGHBORHOOD STABILIZATION PROGRAM (NSP) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) SOURCE OF FUNDS SIDE-BY-SIDE COMPARISON OF PROGRAM REQUIREMENTS NSP Exhibit 2 San Diego Community Housing Corporation First Contract Amendment HOME INCOME LIMITS (USING HUD Less than 50% of the Below 60% of the PUBLISHED Area Median Income Area Median Income LIMITS) Acquisition and Acquisition and Rehabilitation of Rehabilitation of USE OF FUNDS Foreclosed or Foreclosed or Abandoned vacant Abandoned or vacant properties properties ELIGIBLE Must be meet NSP Must be meet RENTERS requirements) HOME requirements Vacant Foreclosed or Vacant Property ELIGIBLE Abandoned Property (townhome, PROPERTY (townhome, condominium, single condominium, or family home). single family home) AFFORDABILITY minimum of 15 years minimum of 15 years TARGET AREAS NSP eligible target Citywide areas Subject to HOME Subject to 95% of program 95 /o of PURCHASE PRICE Median value as Median value as determined by HUD determined by HUD 221 (d) (3) limit MAXIMUM UNIT Reasonable costs as effective each SUBSIDY allowed by NSP January Not subject to In accordance with discount (purchase PURCHASE City's approved price shall not DISCOUNT methodology exceed Fair Market Value) Must be meet HUD's Must be meet HUD's HQS Standards as HQS Standards as PROPERTY Fell all City and well all City and STANDARDS State Health and State Health and Safe Occu anc Safe Occu anc Page 1 of 2 2-32 ATTACHMENT 2 (Continued) Codes Codes Must meet URA Appraisal obtained APPRAISAL requirements at 49 by Contractor CFR Part 24.103 Acquisition and Acquisition and ELIGIBLE USE(S) Rehabilitation Rehabilitation OF FUNDS related costs related costs Must commit HOME Must commit and funds within 12 EXPENDITURE expend NPS funds months, as to meet REQUIREMENTS within 18 months HUD's expenditure standards URA VOLUNTARY ACQUISTIONS Subject to URA Subject to URA ONLY PROGRAM Retained by the City Retained by the City INCOME of Chula Vista of Chula Vista Housing and Economic Recovery 24 CFR part 92, as Act 2008, as amended and HOME amended and regulations, Office of REGULATIONS correlated eligible Management and activities for the Budget (OMB CDBG entitlement Circulars) regulations, as a propriate. 2010-2011 and 2008-2009 Action 2011-2012 Action CONSOLIDATED Plan Amendment addressed the use of plan address the use PLAN these FY 2008 NSP of HOME funds for the Production of funds Affordable Housing Must maintain all Must maintain all records for a period records for a period RECORD of 5 years after of 5 years after RETENTION project close out and project close out and provide all copies to provide all copies to the City upon request the City upon request 1 NSP funds were allocated per the Housing and Economic Recovery Act 2008 Neighborhood Stabilization Program Regulations 73 FR 58330. Correlated eligible activities for the CDBG entitlement regulations are found at 24 CFR Part 570 & subparts A, C, D, J, K, and O, as appropriate. Exhibit 2 Page-2 of 2 San Diego Community Housing Corporation ~on~r~ct Amendment