HomeMy WebLinkAbout2010/11/09 Item 6
CITY COUNCIL
AGENDA STATEMENT
~ \ ft.. CITY OF
. -~ (HUlA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
SUMMARY
NOVEMBER 9,2010, ItemL
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) AUTHORIZING THE CITY MANAGER
TO APPROPRIA TE $1,470,000 IN NEIGHBORHOOD
STABILIZATION PROGRAM FUNDS AND $452,936 IN
HOME INVESTMENT PARTNERSHIP FUNDS FOR USES
PREVIOUSLY APPROVED BY CITY COUNCIL; (2)
AUTHORIZING THE CITY MANAGER TO EXECUTE A
FIRST AMENDMENT TO THE MARCH 24, 2010
AGREEMENT BETWEEN THE CITY OF CHULA VISTA
AND COMMUNITY HOUSINGWORKS FOR THE
MANAGEMENT AND IMPLEMENTATION OF A
NEIGHBORHOOD STABILIZATION PROGRAM; AND (3)
AUTHORIZING THE CITY MANAGER TO EXECUTE A
THIRD AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY AND COMMUNITY HOUSINGWORKS FOR
THE FIRST TIME HOMEBUYER ASSISTANCE PROGRAM
ASSISTANT CITY MANAGER$; DEVELOPMENT
SERVICES DIRECTOR
CITY MANAGER&-- S-r-
4/STHS VOTE: YES I X I NO D
This item will address some necessary administrative actions relating to the City's First
Time Homebuyer Programs. At this time the City needs to appropriate Neighborhood
Stabilization Program (NSP) and HOME Investment Partnership Program (HOME) funds
to first time home buyer activities as well as amend the relevant contracts with
Community HousingWorks, clarifying the programmatic use of HOME funds for
home buyer assistance activities, and to allow homebuyers to use part of the loan
assistance amount for rehabilitation when purchasing bank owned properties, and
increase the contract amount for the Management and Implementation of a Neighborhood
Stabilization Program. Some programmatic changes were authorized by the City Council
on March 23, 2010, which have atrected the administration of the program.
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NOVEMBER 9, 2010, Item~
Page 2 of 4
ENVIRONMENT AL REVIEW
The Environmental Review Coordinator has reviewed the proposed action for compliance
with the National Environmental Protection Act (NEP A) 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 NEP A environmental
review or documentation is necessary at this time.
RECOMMENDATION
Council adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
In March, 2010, City Council approved some programmatic changes for the City's First
Time Homebuyer Program using NSP funds because of the difficulty clients were having
using down payment assistance in the current foreclosure market and to address the grant
expenditure requirements. These changes allowed for the City and/or their Contractor to
purchase foreclosed properties and resell to pre-approved buyers. Under the Developer
Agreement with Community HousingWorks, the City uses NSP grant funds for the entire
purchase, and the homebuyer purchases the unit from Community HousingWorks. An
amount is allocated for homebuyer assistance with low income homebuyers eligible for
HOME or NSP funds not to exceed $70,000 and moderate income home buyers are
eligible for NSP homebuyer assistance not to exceed $40,000. The net proceeds (i.e
revenue) are then deposited back into the revolving loan fund for the next purchase. City
staff has learned that this method requires more appropriation in the budget than simply
the original amount of the grant funds since they are being recycled.
City staff is recommending additional Council actions to ensure that the City's FirstTime
Homebuyer Program has enough funding to carry the program through the 2010-2011
fiscal year. As part of the clean-up process, staff is also bringing forward an amendment
(Attachment A) to Community Housing Works first time homebuyer program agreement
to allow the use of HOME funds to rehabilitate properties purchased by first time
homebuyers and revise the expenditure deadlines per BUD's new standards and an
amendment to the Management and Implementation of a Neighborhood Stabilization
Program (Attachment B) to increase the budget amount to include the anticipated
revenue.
HO}vfE Investment Partnership Program (HO}'{E)
On November 25, 2008, the Chula Vista City Council allocated $452,936 of HOME
Investment Partnerships Program (HOME) funds to the pilot homeownership program to
assist first time home buyers to purchase real estate owned properties. The current
available balance appropriated to the First Time Homebuyer program is $200,000 and
will be depleted by the end of December 2010. Staff is now returning to City Council for
appropriation of these HOME funds.
In the past the HOME funds were used to provide homebuyer assistance know as "gap
financing." Staff is proposing using a portion of the HOME funds to be used for
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NOVEMBER 9, 2010, Ttem~
Page 3 of 4
rehabilitation costs if first time homebuyers are purchasing a bank owned foreclosure (up
to $24,999 in rehabilitation assistance, not to exceed total amount of "gap financing"
available up to $70,000), This programmatic change allows the City's First Time.
Homebuyer guidelines to be consistent with the NSP First Time Homebuyer Program that
includes a component for rehabilitation assistance,
Neighborhood Stabilizazion Program (NSP!
On March 23,2010, City Council amended Community HousingWorks' (CHW) contract
and appropriated $1,505,564 to directly acquire and rehabilitate NSP eligible properties
for the purpose of reselling to qualitied NSP participants, To date, Community
HousingWorks has purchased 7 properties and has depleted the appropriation of
$1,505,564. Any revenue generated from repayments will be reprogrammed by the City
to assist additional first time homebuyers per NSP regulations and may be leveraged with
City HOME funds. StatI is recommending appropriating $1,470,000 in anticipated
revenue to purchase approximately 7 additional properties to assist additional first time
homebuyers and amending CHW's contract to increase their initial budget amount of
$1,505,564.
DECISION MAKER CONFLICT
HOME funds
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 I 8704.2(a)(1 ! is not applicable to this decision.
NSP funds
Staff has reviewed the property holdings of the City Council and has found that
Councilmembers Castaneda, Bensoussan, and Mc Cann have property holdings in and/or
within 500 feet of the boundaries or within the target neighborhoods which are the
subj ect ofthis action.
Due to identified conflicts during the initial target area development, City staff requested
a written opinion from the Fair Political Practices Commission CFPPC"). In response,
the FPPC opined that Councilmembers could participate in the decision on this matter
because, "it does not appear foreseeable that the decision to appropriate HUD funds will
have a material financial etIect [on a council member]," Based on the information in said
FPPC letter, Councilmembers Castaneda, Bensousssan, and Mc Cann do not have a
conflict
FISCAL IMPACT
Current
There are no ongoing fiscal impacts as (1) HOME program is revenue offset by the grant
funds (2) NSP expenditures are offset by program revenue, The use of the grant funds
was already approved hy City Council, but adequate appropriations were not included in
the FY 20 II budget
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NOVEMBER 9, 2010, Item-L
Page 4 of 4
The grant funds will be appropriated in the FY 2010-2011 City Budget as follows:
NSP (33341)
Non-CIP Project
Expenditures
Non-CIP Project
Expenditures
$1,470,000
HOME (37140)
TOTAL
$452,936
$1,922,936
Ongoing
There are no ongoing fiscal impacts as the program is revenue offset by the grant funds,
A TT ACHMENTS
Attachment]: Third Amendment to Agreement with Community HousingWorks
Attachment 2: First Amendment to the March 24,2010 Agreement with Community
Housing Works Agreement for Management and Implementation of a Neighborhood
Stabilization Program
Prepared by: Jose Dorado, Project Coordinator IT. Development Services Department,
Housing Division
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Attachment 1
THIRD AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
For
MANAGEMENT OF A FIRST TIME I-IOMEBUYER DOW'N PAYMENT
AND CLOSING COSTS ASSISTANCE PROGR.AM
RECIT ALS
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, 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 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 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 Council of the City ofChula Vista also approved a Developer Agreement on
March 23, 2010 between 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 financing for first time homebuyers purchasing NSP eligible properties using
their own Realtor. The Parties entered into the Management and Implementation
Agreement dated in March 24, 2010 (hereinafter "March 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 requirements. 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
separate document.
F. The City wishes tq -make programmatic changes to the First Time Homebuyer
Program Scope of Work under the Agreement and extend the Agreement term through
June 30, 2011.
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AGREEMENT
The Parties agree as follows:
L 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 I, above.
3. The Agreement shall be amended as follows:
a. The Second Amendment dated March 17, 2009 amended the initial
Agreement dated March 23, 2007 by adding terms ("Terms") to the last
paragraph of the initial Agreement, Exhibit A, Paragraph 8, "Scope of
Work and Schedule, A. Detailed Scope of Work." The aforementioned
Terms are hereby modified as follows:
1. 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."
11. The fifth paragraph is amended to now read as follows:
"Consultant shall commit and expend the additional allocation of
$452,936 in HOME funds by June 30, 2011, unless mutually
extended by both parties."
111. The following paragraph shall be added to the end of the Terms
and shall read as follows: "Consultant understands earmarks for
the expenditure and commitment ofNSP funds are now covered
under a separate Management and Implementation Agreement for
a Neighborhood Stabilization Program dated March 24,2010. As
such, $1,547,064 in NSP funds are no longer available in this
Agreement. "
b. The SecoI\d 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, Paragraph 8, "Scope of Work
and Schedule, C. Dates of Time Limits for Delivery of Deliverables."
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The aforementioned Deliverables 1 through 3 are hereby moditled to now
read as follows:
"Deliverable No.1: Consultant shall expend NSP funds in accordance
with the Management and Implementation Agreement dated March 24,
2010.
Deliverable No.2: Consultant shall close five (5) First Time
Homebuyer loans using HOME funds by June 30, 2011.
Deliverable No.3: Consultant shall commit and expend all remaining
HOME funds by June 30, 2011."
4. Prior versions of "Exhibit B" are hereby replaced by the "Amended 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
connict exists between the terms in this Third Amendment and prior terms, the terms in
this Third Amendment shall controL
[Next Page is Signature Page.]
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SIGNATURE PAGE
To
THIRD AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
For
MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNP A YMENT
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:
,2010
City of Chula Vista
by:
James D. Sandoval, City Manager
Attest:
Donna Norris, City Clerk
Approved as to form:
Bart C. Miesfeld, City Attorney
Dated:
Community HousingWorks
By:
Susan M. Reynolds, President & CEO
Attachments:
1. Agreement between the City of Chula Vista and Community HousingWorks dated
August 23, 2007, and First Amendment and Second Amendment dated June 17,2008 and
March 17,2009, respectively
2. Amended "Exhibit B," consisting of updated Neighborhood Stabilization Funds and
HOME Investment Partnership Funds Source of Funds Side by Side Comparison of
Homebuyer Assistance Requirements
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Attachment 1
AGREEMENT
BETWEEN
CITY OF CHULA VISTA
AND
COMMUNITY HOUSINGWORKS
FOR
MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNPA YMENT
AND CLOSING COST ASSISTANCE PROGRAM
This agreement ("Agreement"), dated ~f J3, dW 7for the purposes of
reference only, and effective as of the date last e 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 faels: .
Recitals
WHEREAS, the City is seeking professional consultant services to assist the City
in managing a first time home buyer down payment and closing cost assistance program
program; and
WHEREAS, Community HousingWorks, was selected 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.)
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Obligatory Provisions Pages
NOW, THEREFORE, BE IT RESOLVED that the 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 8, within the time frames set
forth therein, .time being of the essence of this agreement. The General Duties and the
work 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 option 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 Defmed 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 require
Consultant to perform additional consulting services related to the Defined Services
("Additional Services"), and upon doing so in writing, if t..l1ey are within the scope of
services offered by Consultant, Consultant shall perform same on a time and materials
basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph lD(e),
unless a separate fixed fee is otherwise agreed upon. All compensation for Additional
Services shall be paid monthly as billed.
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E. Standard of Care
Consultant, in performing any Services under this agreement, whether Defined
Services or Additional Services, shall perform in a m=er consistent with that level of
care and skill ordinarily exercised by members of the profession currently practicing
under similar conditions and in similar locations.
F. Insurance
Consultant must procure insurance agai..'1st 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,
representatives, employees or subcontractors and provide documentation of same
prior to commencement of work. The insurance must be maintained for Ll-,e 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 eGOGOl).
(2) Insurance Services Office Form Number CA 0001 covering Automobile
Liability, Code I (any auto).
(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 ofInsurance
Contractor must maintain limits no less than:
1. General Liability:
(Including operations,
products and
completed
operations, as
applicable)
$1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General
Liability insurance with a general aggregate limit is
used, either the general aggregate limit must apply
separately to this project/location or the general
aggregate limit must be twice the required
occurrence limit.
2. Automobile Liability:
$1,000,000 .per accident for bodily injury and
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property damage.
4. Professional Liability
or Errors &
Omissions Liability:
Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
$1,000,000 each occurrence
3. Workers'
Compensation
Employer's Liability:
Deductibles and Self-Insured 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 [mandal guarantee
satisfactory to the City guaranteeing payment of losses and related investigations,
claim adnUnistration, 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 furnished 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 provide insurance.
(3) The insurance policy 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.
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(4) Coverage shall not extend to any indemnity coverage for the active
negligence of the additional insured L'1 any case where an agreement to
indemnilY 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 and/or Errors &
Omissions coverage are v.rritten on a claims-made form:
(1) The "Retro Date" must be shown, and must be before the date ofth,;
contract or the beginning of the contract work.
(2) Insurance must be maintained and evidence of insurance must be provided
for at least five (5) years after completion of the contract work.
(3) If coverage is canceled or non-renewed, and not replaced with another
claims-made policy form with a "Retro Date" prior to the contract effective
date, the Consultant must purchase "extended reporting" coverage for a
minimum of five (5) years after completion of contract work.
(4) A copy of the claims reportL'1g requirements must be submitted to the City
for review.
AcceDtabilitv of Insurers
Insurance is to be placed with licensed insurers admitted to transact business in
the State of Califomia 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
CaliIomia List of Eligible Surplus Lines Insurers ("LESLl") 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, inclucTh""1g
endorsements evidencing the coverage required by these specifications.
Subcontractors
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Consultants must include all subconsultants as insureds under its policies or
fumish separate certificates and endorsements for each sub consultant. All coverage
for subconsultants are subject to all of the requirements included in these
specifications.
G. Security for Perfonnance
(I) 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 mark in the
parenthetical space inunediately 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 are authorized to transact such business in the State of California,
listed as approved by the United States Department of Treasury Circular
570, http://www.frns.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 Attomey which amount is indicated in the space adjacent to the term,
"Performance Bond", in said Exhibit A, Paragraph 18.
(2) Letter of Credit
In 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 inunediately preceding the subparagraph 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 Attomey 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
Consultfu'1t to provide security other than a Performance Bond or a Letter of
Credit (indicated by a check mark in the parenthetical space inunediately
preceding the subparagraph entitled "Other Security"),' then Consultant
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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 ,vith 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 Defmed Services a..TJ.d 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 with the further
understanding that delay in the provision of these materials beyond thirty (30) days
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
periodically 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 all services rendered by Consultant according to the terms
and conditions set forth in Exhibit A, Paragraph 10, adjacent to the governing
compensation relationship indicated by a "checkmark" next to the appropriate
arrangement, 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, Paragraph 11.
All 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 account number
indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment.
3. Administration of Contract
Each party designates the individuals ("Contract Administrators") indicated on
Exhibit A, Paragraph 12, as said party's contract administrator who is authorized by
said party to represent'"them in the routine administration of this agreement.
4. Term
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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 time 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 result in the following penalty: For each consecutive calendar day
in excess of the time specified for the completion of the respective work assignment or
Deliverable, the Consultant shall pay to the City, or have withheld from monies due,
the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13 ("Liquidated
Damages Rate").
Time extensions for delays beyond the Consultant's control, other than delays
caused by the City, shall be requested in writing to the City's Contract Administrator,
or designee, prior to the expiration of the specified time. Extensions of time, 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
1f Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC flier",
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 determii,ed by the City Attomey.
B. Decline to Participate
Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall
not make, or participate in making or in any way attempt to use Consultant's position
to influence a gove=ental decision in which Consultant knows or has reason to
know Consultant has a financial interest other than the compensation promised by
this Agreement.
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C. Search to Determine Economic Interests
Regardless of whether Consultant is designated as an FPPC Filer, Consultant
warrants and represents that Consultant has diligently conducted a search and
inventory of Consultant's economic interests, as the term is used in the regulations
promulgated by the Fair Political Practices Commission, and has determined that
Consultant does not, to the best of Consultant's knowledge, have an economic interest
which would conflict with Consultant's duties under this agreement.
D. Promise Not to Acquire Conflicting Interests
Regardless of whether Consultant is designated as an FPPC Filer, Consultant
further warrants and represents that Consultant "ill not acquire, obtain, or assume
an economic interest during the term of this Agreement which would constitute a
conflict of interest as prohibited by the Fair Political Practices Act.
E. Duty to Advise of Conflicting Interests
Regardless of whether Consultant is designated as an FPPC Filer, Consultant
further warrants and represents that Consultant will immediately advise the City
Attorney of City if Consultant learns of an economic interest of Consultant's that may
result in a conflict of interest for the purpose of the Fair Political Practices Act, and
regulations promulgated thereunder.
F. Specific Warranties Against Economic Interests
Consultant warrants and represents that neither Consultant, nor Consultant's
immediate family members, nor Consultant's employees or agents ("Consultant
Associates") presently have any interest, directly or indirectly, whatsoever in any
property which may be the subject matter of the Defmed Services, or in any property
within 2 radial miles from the exterior boundaries of any property which may be the
subject matter of the Defmed Services, ("Prohibited Interest"), other than as listed in
Exhibit A, Paragraph 14.
Consultant further warrants and represents that no promise of future employment,
remuneration, consideration, gratuity or other reward or gain has been made to
Consultant or Consultant Associates in connection with Consultant's performance of
this Agreement. Consultant promises to advise City of any such promise that may be
made during the Term of this Agreement, or for twelve months thereafter.
Consultant agrees that Consultant Associates shall not acquire any such
Prohibited Interest v..'i,thin the Term of this Agreement, or for twelve months after the
expiration of this Agreement, except with the written permission of City.
9
6-17
Consultant may not conduct or solicit any business for any party to this
Agreement, or for any third party that may be in conflict with Consultant's
responsibilities under this Agreement, except with the ",Titten permission of City.
7. Hold Harmless
Consultant shall defend, indemnify, protect and hold harmless the City, its elected
and appointed 'officers and employees, from and against all claims for damages,
liability, cost and eXl'ense (including without limitation attorneys fees) arising out of or
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, subcontractors or
other persons, agencies or firms for whom Consultant is legally responsible in
connection with the execution of the work covered by this Agreement, except only for
those claims, damages, liability, costs and expenses (including without limitations,
attorneys fees) arising from the sole negligence or sole willful misconduct of the City,
its officers, employees. 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 acts or omissions of the Consultant, its employees, agents or officers,
or any third party.
With respect to losses arising from Consultant's professional errors or omissions,
Consultant shall defend, indemnify, protect and hold harmless the City, its elected
and appointed officers and employees, from and against all claims for damages,
liability, cost and expense (including without limitation attorneys fees) except for those
claims arising from the negligence or willful misconduct of City, its officers or
employees.
Consultant's indemnification shall include any and all costs, expenses, attorneys
fees and liability incurred by the City, its officers, agents or employees in defending
against such claims, whether the same proceed to judgrllent 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 be licensed by the state (e.g. architects,
landscape architects, surveyors and engineers), the following indemnification
provisions should be utilized:
(1) Indemnification and Hold Harmless Agreement
With respect to any liability, including but not limited to claims asserted or
costs, losses, attorney fees, or payments for injury to any person or property caused or
claimed to be caused by the acts or omissions of the Consultant, or Consultant's
employees, agents, and officers, arising out of any services performed involving this
project, except liability for Professional Services covered under Section 7.2, the
Consultant agrees to defend, indemnify, protect, and hold harmless the City, its
10
6-18
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 acts or omissions of the
Consultant, its employees, agents or officers, or any third party. The Consultant's duty
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 obligation, work or services involving this
Project, the Consultant agrees to indemnify, defend and hold harmless the City, its
agents, officers and employees from and against nny and all liability, claims, costs,
and damages, including but not limited to, attorneys fees, that arise out of, or pertain
to, or relate to the negligence, recklessness or willful misconduct of Consultant and its
agents in the performance of senices under this agreement, but this indemnity does
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 fulfill in a timely and proper manner
Consultant's obligations under this Agreement, or if Consultant shall violate any of the
covenants, agreements or stipulations of this Agreement, City shall have the right to
terminate this Agreement by giving 'NTItten notice to Consultant of such termination
and specifying the effective date thereof at least five (5) days before the effective date of
such termination. In that event, all fmished or unfmished 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
completed on such documents and other materials up to the effective date of Notice of
Termination, not to exceed the amounts payable hereunder, and less any 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 omissions in the performance of work under this Agreement has
resulted in expense to City greater than would have resulted if there were no such
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 prm,isions of this agreement.
11
6-19
.' _..,._.,...~-"~....."~'"
10. Termination of Agreement for Convenience of City
City may terminate this Agreement at any time and for any reason, by glVll1g
specific written notice to Consultant of such termination and specifying the effective
date thereof, at least thirty (30) days before the effective date of such termination. In
that event, all fll1ished and unfmished 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 paragraph, 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 Su bconsultants" .
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 produced under this Agreement shall be
the sole and exclusive property of City. No such materials or properties produced in
whole or in part under this Agreement shall be subject to private use, copyrights 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 Records Act),
distribute, and otherwise use, copyright or patent, in whole or in part, any such
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 Vvith sole control of the manner and means of performing the
services required under this Agreement. City maintains the right only to reject or
accept Consultant's work products. Consultant and any of the Consultant's agents,
employees or repre~entatives are, for all purposes under this Agreement, an
independent contractor and shall not be deemed to be an employee of City, and none
of them shall be entitled to any benefits to which City employees are entitled including
but not limited to, overtime, retirement benefits, worker's compensation benefits,
injury leave or other leave benefits. Therefore, City will not withhold state or federal
12
6-20
income tax, social security tax or any other pay Toll tax, and Consultant shall be solely
responsible for. the payment of same and shall hold the City hannless with regard
thereto.
14.Administrative Claims Requirements and Procedures
No suit or arbitration shall be brought arising out of this agreement, against the
City unless a claim has first been presented in writing and filed with the City and
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 Agreement result in litigation, it is agreed that
the prevailing party shall be entitled to a judgment against the other for an amount
equal to reasonable attorney's fees and court costs incurred. The "prevailing party"
shall be deemed to be the party who is awarded substantially the relief sought.
16. Statement of Costs
In the event that Consultant prepares a report or document,' or participates in the
preparation of a report or document in performing the Defined Services, Consultant
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 no
authority to act as City's agent to bind City to any contractual agreements whatsoever.
B. Consultant is Real Estate Broker and/or Salesman
If the box on Exhibit A, Paragraph IS is marked, the Consultant and/or their
principals is/ are licensed \Vith 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
6-21
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 shall be deemed to have been properly given or served if personally served or
deposited in the United States mail, addressed to such party, postage prepaid,
registered or certified, with rerum 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 govemed 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 in 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 perfonnance hereunder, shall be the City of Chula
Vista.
(End of page. Next page is signature page.)
14
6-22
AGREEMENT
BETWEEN
CITY OF CHULA VISTA
AND
COMMUNITY HOUSINGWORKS
FOR ,
MANAGEMENT OF A FIRST TIME HOMEBUYER DOWN PAYMENT
AND CLOSING COST ASSISTANCE PROGRAM
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: ! /
1 ~3/D7
,
~ .
~ ~!.J.P?
Susan Bigelow.'tity lerk
!r
(01.'
Dated: J /
8 If D'J-
I .
/l~ ~'-
unity Housing
Exhibit list to Agreement
(X) Exhibit A.
15
6-23
~~_.~
Exhibit A
To
AGREEMENT
BETWEEN
CITY OF CHULA VISTA
AND.
COMMUNITY HOUSINGWORKS
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:
form]
, a [insert business
("City")
3. Place of Business for City:
City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
4. Consultant:
Community HousingWorks
5. Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
(X) Corporation
16
6-24
6. Place of Business, Telephone and Fax Number of Consultant:
4305 University Avenue, Suite 550
San Diego, California 92105
Voice Phone: (619) 282-6647
Fax Phone: (619) 640-7119
7. General Duties:
Consultant shall provide management of the City's First Time Homebuyer
Downpayment and Closing Cost Assistance Program in accordance with
HOME Investment Partnership Program City requirements. Consultant shall
additionally set-up and service loans under the program.
8. Scope of Work and Schedule:
A. Detailed Scope of Work:
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 all Chula Vista loan
program portfolio clients and provide specialized outreach for loss
mitigation and homeownership preservation.
Consultant 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: monthly/annual statements to borrowers,
17
6-25
" ~--._,,__ ___=..". "". '",.,c.:_'~,::,--,,--,,- ,.-C"~r:::::;
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-ofts, 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 for 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 NO.3:
D. Date for completion of all Consultant services:
July 31,2008
This agreement may also be extended by 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. ( ) Single 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
6-26
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:
, payable as follows:
Milestone or Event or Deliverable
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 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 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 City shall have issued a notice to
proceed to Consultant as to said Phase.
Phase
Fee for Said Phase
1.
Loan closing
$ 1,250
subsequent phases, so that the compensation is due just for the phase of work required,
and not for the total amount.
19
6-27
.__r__~.."..~..._ _....._.....;...,
2.
3.
Setup fees
$ 250
$
( ) 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 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 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.
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 sRent by Consultant in the
performance of said Services, at the rates or amounts set forth in the Rate
Schedule herein below according to the following terms and conditions:
(1) ( ) 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
Arr<mgement
At such time as Consultant shall have incurred time and materials equal to
("Authorization Limit"), Consultant shall not be
20
6-28
entitled to any additional compensation 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'
Cateqorv of Emolovee
Name of Consultant
Hourly Rate
$
$
$
$
$
( ) Hourly rates may increase by 6% for services rendered after [month], 20_,
if delay in providing services is caused by City.
11. Materials Reimbursement Arrangement
For the cost of out of pocket expenses incurred by Consultant in the performance of
services herein required, City shall pay Consultant at the rates or amounts set forth
below:
(x) None, the compensation includes all costs.
Cost 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 $
4 This section should be .completed in all cases-if the main compensation scheme is a "time
and materials arrangement" or for the purposes of requiring Additional Services.
21
6-29
- - ~. .~_.--.-~,---
() 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:
( )
( )
$
Other:
per day.
14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of
Interest Code:
(X) Not Applicable. Not an FPPC Filer.7
( ) 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 .
7
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 the rendITion of information, advice, recommendations
or counsel, Consultant should not be designated as an FPPC Filer.
22
6-30
) 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.
) 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 Billing:
23
6-31
.~~~,~
( ) 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
6-32
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
Al'lD
COMMUNITY HOUSING WORKS
For
Management of a First Time Homebuyer Dovmpayment
and Closing Costs Assistance Program
RECITALS
A. The City ofChula Vista ("City") and Community HousingWorks ("Consultant")
(collectively, the "Parties") entered into to an agreement dated August 23,2007, for
Management of a First Time Homcbuyer Dovmpayment and Closing Cost Assistance
Program (the "Agreemenf').
B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME
Investment 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. Consultant offers an innovative pilot program that would provide an incentive for
low-income families wishing to enter the homeownership market to purchase vacant
foreclosed property.
D. The City wishes to add this program to its scope of work under the Agreement
TI1e 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 Homeovmer Program for
Real Estate Owned (REO) foreclosed properties in accordance with HOME Investment
Partnership Program City requirements."
2. Exhibit A. Paragraph 8. Scope of Work and Schedule, A. Detailed Scope ofWark,
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 Dovmpayment and Closing Cost
Assistance Program.
6-j3
- -"~...=
Consultant shall identify first time low-income homebuyers (those families earning less
than 80% of the Area Median Income) that wish to purchase vacant foreclosed properties
at a negotiated price.
Consultant understands that $300,000 in HOl'vfE funds are available for assistance of up
to $30,000 for each homebuyer purchasing an REO 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, Paragraph 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-
year 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: REO Program Set-Up $1,500.
All other terms of the Agreement shall remain in full force and effect.
[Next Page is Signature Page.]
2
6-34
SIGNA TlJ'REP AGE.
FIRST AMEi'I'Dl\ffiNT TO. uiE AGR}:.El'ilENTBETWEEN
THE CITY OF CIIULA VISTA' "
AND
coMi\rrJNT[Y HOU"SING WORKS
For
Managel'nent Of a Fir'st Tim..c HomebuycrDow'npaymeilt
an.<l Closing Costs AssistariceProgram
TN WITNESS WHEREOF; CitY and Consultant .have executed this First Amendnienf to
theAgreeinent indicatingthat they have read and.understood the.FirstAp1endmcnt and
indicate their full and coniplete consent'to its terms:
Dated:
rb ;19 ,.20Q8
,
CitY of C:hulaVista
, ..~
. Gar" ia, -City M~nagef
Approved as to forni:
.i n ,- /. ..":"9 ..
i:....-(70"~ C~.J (L/( /v- _~':t-'J ~''-
Bart G, Miesfeld, Interim.City Art ' ey
'Dated:
,( if
~ Fy/IJ
(c:J; 1.1 '
(
.ExhibltListto First ',<\rnendmentto Agreement:
(X) Agreerrierit 'between the City of Qhula Vista and Community HousingWqrksdated
AiJgust 23, 2001'
J:\Altorney\ruSAIA.GREEMENTS\Community Housin'gWO'rks FirSt AmendmentFrNAL6-1 r..O.8,doc
3
6-35
-
SECOND AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COlVIMUNITY HOUSING 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 an initial agreement, dated August 23,2007, and
a First Amendment on June 19, 2008 for Management of a First Time Homebuyer
Downpayment 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
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 CDBO
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 agreement from HUD, the City wishes to add administration of the
NS FTHB Program to the scope of work under the Agreement.
AGREEMENT
The Parties agree as follows:
1. This Second Amendment is contingent on: (i) the City entering into a grant
agreement with HUD for the NSP Program; and (ii) 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 City; or (ii) satisfaction of the
contingencies se,t forth in paragraph 1., above.
3. The Agreement shalt be amended as follows:
1
6-36
a. Exhibit A, Paragraph 7, "General Duties," at the end of the paragraph, add
th~ following: "Consultant shall provide management for the new
Neighborhood Stabilization First Time Homebuyer (NS FTHB) Program
for Real Estate Owned (REO) foreclosed properties in accordance with
City and Department of Housing and Urban Development Department
("HUD") requirements."
b. Exhibit A, Paragraph 8. "Scope of Work and Schedule, A. Detailed Scope
of Work.,: after the last paragraph, add the following:
"Consultant shall administer the City's NS FTHE 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 NSP 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 HO!vlE 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 homebnyers.
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 corrunit NSP funds for at least 40 First 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, 20]0.
Consultant shall conduct initial FiTst Time Homebuyer Education Classes
(Spanish and English), Realtor and Lender Training Classes as needed to
meet the deliverable requirements in Paragraph 8. C. below.
2
6-37
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
Alternative Requirements for Emergency Assistance for Redevelopment
of Abandoned and Foreclosed Homes Grantees under the Housing and
. Economic Recovery Act of 2008, the City of Chula Vista's NS First Time
Hornebuyer 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 Grant program for Entitlement
Communities.
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 funds
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 A, Paragraph 8. "Scope of Work and Schedule, C. Dates of Time Limits
for Delivery of Deliver ables," add the following:
"Deliverable No.1: Consultant shall close 20 First Time Homebuyer
loans and/or commit and expend 50% of the NSP funds by December 31,
2009.
Deliverable No.2: Consultant shall commit and expend all remaining
NSP funds by August 31,2010.
Deliverable No.3: Consultant shall commit and expend all HOME
funds within 24 months of the date of appropriation."
d. Exhibit 1, Paragraph 8, "Scope of Work and Schedule, D. Date for Completion of
all Consultant Services," replace with the following:
"August 31, 20'10 This Agreement may also be extended by mutual agreement of
the Parties for up to five years in one year increments. The City's Purchasing
3
6-38
Agent is authorized to negotiate and enter into such extensions to this Agreement
on behalf of the City".
e. Exhibit A, Paragraph lO. "Compensation, B. Phased Fixed Fee ,A,rrangemcnt.3.,"
add the following:
"a. REO Program Set-Up and Closing Fee: $1,500 per Loan Closing.
b. NSP Program Set-Up and Closing Fee: $],500 per Loan Closing.
c. Annual Fee of $9,000 to administer all ofthe City's First Time
Hornebuyer Programs including HOI\1E and NSP, beginning with the
I" Amendment through August 31, 20 I 0".
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
6-39
SIGNATURE PAGE
SECOND A.iVIEl'mMENT TO'rnE AGREEMENT BETWEEN
THE CITY OFCHULAVISTA
A1~D
COMM1JNITY HOUSING WORKS
For
Management ofa FirstTime Homebu'yer Downpaymerit
and Clo~ing Costs, Assistance Program
IN WITNESS WHEREOF, City and Consultant have executed this Second Amendment
to the Agreement indicating that they have read and understood the Second Amendment
and indicate their full and complete~OIisentto its terms:
Dated: ~l 17 ,2009
City ofChula Vista "
W:'tC'rt(JJrf/
Attesy.;
/11!~ Jf{~
, Sandoval, City Manager
Donna Noms, City Clerk
"
ApEToved as to, om1!\" fi )
/'''''''\ . ,,'J iA//.4L,
, ' ':. j- i\I/CV:-
rBfu1'-C.iM1es)g'JI I'" Attotney.
\1,1'\. 'r '" V 'J "
Dated: (9-( ;;-<; !J,OoCt.-
Exhibit List to Second Amendment to Agreement:
pxhibit A: Agreement; betWeen the City orChula, Vistagnd Community Housing\y(jrks
dated August 23, 2007, and Amendment dated June 17,2008.
ExhilJit B:Neighborhood Stabilization Funds and HOME Investment I'arm,:rship Funds
SOurce of Funds, Side by Side COInparison bfHomebuyet Assistance Requirements
5
6-40
EXHIBIT B
J\"EIGHBORHOOD STABILIZATION PROGRAM (NSP) A1'<D HOIVTE
INVESTlVlENT PARTNERSHIPS PROGRAM (HOrvIE)
SOURCE OF FUNDS SIDE-BY-SlDE COMYARlSON OF HOMEBUYER
ASSISTA1"iCE PROGRAM REQUJRE1VlENTS
I CITY !\'EIGHBORHOOD CITY HOiVTE
, STABiLIZATION PROGRAM PROGRAM
81-120% ofthe Area ,
i
INCOME LIMITS Median Income ,
(USING STATE OF (using State of I Below 80% oftbe Below 80% ofthe
i Area Median Income Area Median [ncome
CALIFORi\'1A) California income !
limits) i
i
ELIGIBLE Must be "first-time'l i Must be "first-time" Must be "first-tin1e"
HOMEBUYERS 1 I 1 1
bomebuyer !. bomebuyer bomebuyer
,
Must attend a HUD Must attend a HUD Must attend a HUD
i HOMEBUYER approved 8 bour approved 8 hour approved 8 hour
EDUCATION bomebuyer bomebuyer homebuyer
education course education course education course
Vacant Foreclosed ! Vacant Foreclosed Vacant Property
ELIGIBLE Property (townhome, I Property (townhome, (townhome,
PROPERTY condominium, or i condominium, single condominium, single
i single family home) i family bome) . family home).
Shared Equity for a ! Shared Equity for a Shared Equity for a
AFFORDABILITY minimum of 15 years i minimum of 15 years minimum of 15 years
(must be repaid) ! (must be repaid) (must be repaid)
TARGET AREAS NSP eligible target I NSP eligible target Citywide
,
areas i areas
Subject to 95% of Subject to 95% of Subject to HOME
PURCIL\SE PRICE Median value as Median value as program 95% of
1 2 Median value as
determined by HUD detemlined by HUD 2
determined bv HUD
PURCHASE In accordance with ! In accordance 'Wi th Not subj ect to
City's approved ! City's approved
DISCOUNT methodology i methodology discount
Must meet ORA i Must meet URA Appraisal obtained
APPRAISAL requirements at 49 I requirements at 49
CFR Pat1 74.103 i CPR Part 24.103 by Lender
Direct i . Downpayment
I Direct
ELIGIBLE USE(S) homeoM1ersbip i bomeoM1ership Assistance (no
OF FUNDS . rehabilitation)
3 i. J
assistance I aSSistance 92.754
Exhibit 8
Communiiy HousingWorks Second Contract Amendment
Page B-1 of 3
6-41
EXHIBIT B (Contil)ued)
Must commit and Must commit and
expend NPS funds expend NSP funds Must commit HOME
EXPEl'.'DITURE within 18 months within 18 months funds within] 2
REQUJREMEl'.'TS (i.e. have (i.e. have months
homebuyers close homebuyers close
escrow) escrow)
Subject to City's Subjectto City's Subject to City's
ASSISTANCE CAPS NSP maximum
(CALCULATE NSP maximum subsidy of up to HOME program
subsidy of up to limit of up to
"GAP $40,000 (of which $70,000 (of which $70,000 for a REO
FINANCING") $24,999 may be used $24,999 may be used and $40,000 for any
NEEDED TO for rehabilitation for rehabilitation other property. I
ACQUffiE/REHABl Assistance). cannot assistance). Assistance cannot
Assistance cannot I
LITATE ,
PROPERTY exceed 40% of exceed 40% of exceed 40% of
purchase price i purchase price purchase price
DOWNPAYMENT 3% of buyers funds i 3 % of buyers funds 3% buyers funds
REQulRED
URA VOLUNTARY ,
4 4 4
ACQUJSTTONS Subject to URA Subject to URA Subject to URA
ONLY
PROGRAM Retained by the City Retained by the City Retained by the City
, 5 ,
INCOME of Chula Vista of Chula Vista of Chula Vista
Housing and Housing and
Economic Recovery Economic Recovery 24 CFR part 92
Act 2008 and Act 2008 and HOME regulations,
REGULATIONS correlated eligible correlated eligible Office of
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
CONSOLIDATED Amendment Amendment address the use of
addressed the use of addressed the use of HOME funds for the
PLAi" these FY 2008 NSP these FY 2008 NSP Production of
funds funds Affordable Housing
I
.First Time Homebuyer is defined as not having owned real property within the last three years.
z
Home Program. Regulations set these maximum value and are updated periodically.
hno-:!/www.h ud. ~ov loffices/cpd/affordablehousinajprollTams/hornellimits/maxnrice.cfm
3
Direct Homeownership Assrstance refers to the City's Shared Equity Loan/ Silent Soft Second Assistance
program eligible under Financing Mechanism tmder the Housing Emergency Recovery Act (HERA) of
2008 for direct bomeownership assistance under 570.201(n) allows NSP (CDBG) funding ro: Provide up to
50% of required downpa)TIlent; pay reasonable closing costs, provide principal VtrIte-down assistance;
subsidize interest rates; finance acquisition, and assist homebuyers with private mortgage
insurance.
Exhibit B
Community HousingWorks Second Contract Amendment
6-42
Page B-2 of 3
ExrUBIT B (Continued)
4
URA is defined as Ulliform Relocation Act of 1970. as amended.
. .
Program Income is defined a.o;; any recapture of the initial City Investment pius shared equity and/or
imerest due per the promissory note and Deed of Trust.
6
NSP funds were allocated per the Housing and Economic Recovery Act 2008 Neighborhood Stabilization
Program Regulations 73 FR 58330. Correlated eiigible activities for the CDBG entitlement regulations are
found at 24 CFR Part 570 & subparts A, C. D, J, K. and 0, as appropriate.
NOTE: They City's Neighborhood Stabilization First-Time Hornebuyer Program was desib'11ed using the
Department of Housing and Urban Development Federal Register Vol. 73 No. 104 Monday:
October 6, 2008 Notjce of Allocations, Appllcation Procedures, Regulator:' \Vajver~ Granted to
and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and
Foreclosed Homes Grantees Under the Housing and Economic Recovery Act, 2008; Notice
City's First Time Homebuyer Program Manual for }JSP a..'1d HOIvfE describes the program
requirements.
Exhibit B
Community HousingWorks Second Contract Amendment
Page B-3 of 3
6-43
__,,_'.u_.~.-=oo-.:""""
Attachment 2
AMENDED EXHIBIT B
NEIGHBORHOOD STABILIZATION PROGRAJYI (NSP) AND HOME
INVESTMENT PARTNERSHIPS PROGRAM (HOME)
SOURCE OF FUNDS SIDE-BY-SIDE COIVIPARISON OF HOMEBUYER
ASSISTANCE PROGRAM REQUIREMENTS
CITY NEIGHBORHOOD CITY HOME
ST ABILIZA nON PROGRAM PROGRAM
81-120% of the Area
INCOME LIMITS Median Income Below 80% of the Below 80% of the
(USING STATE OF (using State of I Area Median Income Area Median Income
CALIFORNIA) California income
limits)
ELIGIBLE Must be "first-time" Must be "first-time" Must be "first-time"
HOMEBUYERS 1 1 I
homebuyer homebuyer home buyer
Must attend a HOD Must attend a HUD Must attend a HOD
HOMEBUYER approved 8 hour approved 8 hour approved 8 hour
EDUCATION homebuyer home buyer homebuyer
education course I education course education course
Vacant Foreclosed Vacant Foreclosed Vacant Property
ELIGIBLE Property (townhome, Property (townhome, (townhome,
PROPERTY condominium, or condominium, single condominium, single
single family home) , family home) family home).
Shared Equity for a Shared Equity for a Shared Equity for a
AFFORDABILITY minimum of 15 years minimum of 15 years minimum of 15 years
(must be repaid) (must be repaid) (must be repaid)
TARGET AREAS NSP eligible target I NSP eligible target NSP Target Areas
areas areas
Subject to 95% of Subject to 95% of Subject to HOME
PURCHASE PRICE Median value as Median value as program 95% of
, , Median value as
determined by HUD determined by HUD ,
determined by HUD
PURCHASE In accordance with In accordance with Consistent with NSP
DISCOUNT City's approved City's approved Program Guidelines
methodology methodology
Must meet URA Must meet URA Appraisal obtained
APPRAISAL requirements at 49 requirements at 49
CFR Part 24.103 CFR Part 24.1 03 by Lender
Acqu is iti 0 nlRe habil i t AcquisitionlRehabilit Direct home buyer
.ation for resale by ationlResale by City
ELIGIBLE USE(S) City approved NSP approved NSP assistance including
OF FUNDS Developer or direct Developer or Direct rehabilitation
homeownership/rehab homeownership/rehab assistance
3 3
assistance assistance
Exhibit B
Community HousingWorks Third Contract Amendment
Page B-1 of 3
6-44
EXPEND fTURE
REQUIREMENTS
HOMEBUYER
ASSISTANCE CAPS
(CALCULATE
"GAP
FINANCfNG")
NEEDED TO
ACQUlRE/REHABI
LIT A TE
PROPERTY
DOWNPAYMENT
REQUfRED
URA VOLUNTARY
ACQUfSnONS
ONLY
PROGRAM
INCOME
REGULA nONS
CONSOLfDATED
PLAN
EXHIBIT B (Continued)
Must commit and
expend NSP funds
within the terms
included in said
Management and
Implementation
Agreement of a
Neighborhood
Stabilization
Program
i Must commit and
I expend NSP funds
i wi thin the terms
,
I included in said
I Management and
I' Implementation
i Agreement of a
I Neighborhood
I
i Stabilization
\ Program
i Subject to City's
Subject to City's NSP maximum
NSP maximum
b'd f t subsidy of up to
su Sl Y 0 up 0 i .
$40,000 (of which I $70,000 (of which
$74999 b d i $24,999 may be used
-, may e use '" h b'l" .
" h b"l" I lor re a I ItatlOn
lor re a I ItatlOn ! . t
. ! assls ance).
Assistance). cannot i .
d 400/ f I ASSistance cannot
excee /0 0 i
h' I exceed 40% of
purc ase pnce purchase price
I
3% of buyers funds 13% of buyers funds
I '
I Subject to URA
I
,
Subject to URA
Retained by the City
5
of Chula Vista
Housing and
Economic Recovery
Act 2008 and
correlated eligible
activities for the
CDBG entitlement
regulations, as
6
amended.
2008 Action Plan
Amendment
addressed the use of
these FY 2008 NSP
, funds
Retained by the City
5
of Chub Vista
I Housing and "
i Economic Recovery
I Act 2008 and
I correlated eligible
i activities for the
I CDBG entitlement
I regulation;, as
I amended.
,
[ 2008 Action Plan
I Amendment
, addressed the use of
these FY 2008 NSP
funds
Must commit and
expend HOME funds
within the term
stated in this
agreem en t
Subject to City's
HOME program
limit of up to
$70,000 for a REO
and $40,000 for a
HOME eligible
property (within
NSP target areas).
Assistance cannot
exceed 40% of
ourchase price
3% buyers funds
,
Subject to URA
Retained by the City
5
of Chula Vista
24 CFR part 92
HOME regulations,
Office of
Management and
Budget (OMB
Circulars)
2008 Action Plan
address the use of
HOME funds for the
Production of
Affordable Housing
I
.First Time Homebuyer is defined as not having owned real property within the last three years.
Horne Program Regulations set these maximum value and are updated periodically.
htto:! /www.hud.gov/offices! cod/affordab lehousing/Drograms/home/lim its/maXDrice. c fm
Exhibit B
Community HousingWorks Third Contract Amendment
6-45
Page B-2 of 3
EXHIBIT B (Continued)
3
Direct Homeownership Assistance refers to the City's Shared Equity Loan! Silent Soft Second Assistance
program eligible under Financing Mechanism under 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 required downpayment(buyer required to put 3% down); pay reasonable closing costs, provide
principal write-down assistance; subsidize interest rates; fmance acquisition; and assist homebuyers with
private mortgage
insurance.
4
URA is defined as Uniform Relocation Act of 1970, as amended.
5
Program Income is defmed as any recapture ofthe initial City Investment plus sbared equity and/or
interest due per the promissory note and Deed of Trust.
6
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 0, as appropriate.
NOTE: They City's Neighborhood Stabilization First-Time Homebuyer Program was designed using the
Department of Housing and Urban Development Federal Register Vol. 73 No. 104 Monday,
October 6, 2008 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, 2008; Notice.
NSP regulations updated April 9, 2010 (FR 5321-N-03) Notice of Change in Definitions and
Modification to Neighborhood Stabilization Program.
NSP regulations updated June 19, 2009-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,
2008; Revisions to Neighborhood Stabilization Program (NSP) and Technical Corrections FR-
5255-N-02. "Bridge Notice"
Protections Tenants at Foreclosure: Notice of Responsibilities Placed on Immediate Successors in
Interest Pursuant to Foreclosure of Residential Property," 74 FR 30106 (June 24, 2009).
Resource Links are available on the U.S Department of Housing and Urban Development Office
of Block Grant Assistance website at http://hudnsphelp.info/
City's First Time Homebuyer Program Manual for NSP and HOME describes the program
requirements.
Exhibit B
Community HousingWorks Third Contract Amendment
6-46
Page B-3 of 3
Attachment 2
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
FOR
MANAGEMENT AND IMPLEMENT A TION OF A NEIGHBORHOOD
STABILIZATION PROGRAM
RECITALS
A, The City Council of the City of Chula Vista approved a Developer Agreement on
March 23, 2010 between 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 and/or provide "gap" financing
for eligible households within Neighborhood Stabilization Program (NSP) eligible
target areas,
B. After Council approval, the City of Chula Vista ("City") and Community
HousingWorks ("Consultant") (collectively, the "Parties") entered into an
agreement, dated March 24, 2010 for Management and Implementation of a
Neighborhood Stabilization Program (the "March 24, 2010 Agreement"), attached
as Attachment L '
C. Pursuant to the March 24, 2010 Agreement, Consultant agreed to acquire,
rehabilitate, and resell properties to eligible NSP First Time Homebuyers and any
proceeds recaptured through the resale of said properties be repaid to the City of
Chula Vista to be used for additional NSP activities,
D, The City wishes to allow Community HousingWorks to use the recaptured NSP
funds to acquire, rehabilitate, and resell additional properties,
AGREEMENT
The Parties 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 funds
2, 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,
3, The March 24, 2010 Agreement shall be amended as follows:
a, In Paragraph 3, "Compensation," the tinal two sentences shall be amended to
now read: "Total reimbursement (for project costs) shall not exceed $300,000
1
6-47
per property, unless approved by the City, and $2,975,564 for the total
program, of which $1,505,564 has already been allocated."
b. In Paragraph 3, "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 $1,470,000 in NSP funds and must be committed and expended
by June 30, 2011."
c. In Paragraph 7, "TERM," after the last paragraph, the following shall be
added: "After initial NSP project funds are spent, Developer agrees to
commit and expend additional NSP appropriations of up to $1,470,000 by
June 30, 2011."
d. In Attachment A, "BUDGET," the second sentence shall now read as follows:
"In no case shall Developer be entitled to, nor shall City reimburse Developer,
more than the initial $2,975,564 for work performed under this agreement, of
which $1,505,564 has already been allocated."
e. In Attachment A, "BUDGET," after the last paragraph, the following shall be
added: "After initial NSP project funds are spent, Developer agrees to commit
and expend additional NSP appropriations of up to $1,470,000 by June 30,
2011."
4. 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.
[Next Page is Signature Page.]
2
6-48
SIGNATURE PAGE
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
FOR
MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD
STABILIZATION PROGRAM
IN WITNESS WHEREOF, City and Consultant have executed this First 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:
,2010
City of Chula Vista
by:
James D. Sandoval, City Manager
Attest:
Donna Norris, City Clerk
Approved as to form:
Bart C. Miesfe1d, City Attorney
Dated:
Community HousingWorks
By:
Susan M. Reynolds, President & CEO
Attachments:
1. March 24, 2010 Community HousingWorks Management and Implementation of a
Neighborhood Stabilizati.on Program Agreement
3
6-49
&'..--~' .,~.,,,..
Attachment 1
~!~
-,-
r ~ _
CllY OF
CHULA VISTA
AGREEMENT
BY AN!) BETWEEN THE
CITY OF CHULA VISTA
AND
COMMUNITY HOUSINGWORKS
FOR MANAGEMENT AN!) IMPLEMENTATION OF
A NEIGHBORHOOD STABILIZATION PROGRAM
This Contract Number 4129390333 by and between Community HousingWorks
(hereinafter referred to as "Developer") and the City of Chula Vista (hereinafter referred
to as "City") is effective on March 24.2010 ("Effective Date").
WITNESSETH:
WHEREAS, the Neighborhood Stabilization Program (NSP), authorized under
Title III of Division B of the Housing and Economic Recovery Act of2008 (HERA), is a
special allocation of Community Development Block Grant (CDBG) funds targeted at
acquisition and 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-0 I) dated October 6,
2008, and amended such requirements by Federal Register Notice (FR-5255-N-02)
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, 2008;
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
PartnershiplEmergency Shelter Grant Annual Funding Plan Amendment which was
submitted to the U.S. Department of Housing and Urban Development (BUD); and
WHEREAS, H1JD has approved the City Annual Funding Plan Amendment for
the Neighborhood Stabilization Program; and
NSP Developer Agreement
Page 1 of 13
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\VHEREAS, 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
WHEREAS, it is the desire of the Developer and the City that the Project be
implemented by the Developer; and
WHEREAS, the Devcloper shall 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 thc Neighborhood Stabilization Program; and
WHEREAS, the City seeks to utilizc the services of Developer to administer the
above referenced NSP program to purchase and rchabilitate foreclosed and abandoned
properties as permitted by the NSP program guidelines and this Agreement for the
purchasc and resale of those foreclosed and abandoned properties; and
WHEREAS, Developer warrants and represents that they experienced and staffed
in a manner such that they are and can deliver the services required of Developer to City
within thc timc framcs herein provided all in accordance with the terms and conditions of
this Agreement.
NOW THEREFORE, IT IS AGREED AS FOLLOWS:
1. WORK TO BE PERFORL\1ED: Developer shall implement the scope of work
("Scope of Work") describcd in Attachment A, hereof fully and in accordance
with the terms ofthe Annual Funding Plan Amendment approved by the City and
submitted to !-IUD 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 BUD pursuant to said Annual Funding Plan 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-O I 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 S 5301, et seq.), as amended, except for requirements related to fair
housing, nondiscrimination, labor standards, and the environmental
(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;
NSP Developer Agreement
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......
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 Part 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 S 2000d); Title VII of the
Civil Rights Act of 1964 (public Law 88-352); Title VBI of the Civil Rights
Act of 1968 (Fair Housing Act, 42 USC S 3601, et seq.); Section 109 of the
Housing and Community Development Act of 1974; Executive Order 11246,
as amended (equal employment opportunity); Executive Order 11063 (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. 1701u.
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
1968, as amended, 12 U.S.C. 170lu (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 bargaining
agreement or other understanding, if any, a notice advising the labor
organization or workers' representative of the Developer'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)
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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 applicahle 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 regulations in 24 CFR part 135.
v. The Developer will certify that any vacant employment positions,
including training positions, that are filled (I) after the Developer is
se lected 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 HOO'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 performed in connection with section 3 covered
Indian housing assistance, section 7(b) of the Indian Self-Determination
and Education Assistance Act (25 U.S.C. 450e) also applies to the work
to be performed under this contract. Section 7(b) requires that to the
greatest extent fcasible (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
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).
f. The Uniform Relocation Assistance and Rcal Property Acquisition Policies
Act of 1979,42 USC S 4601, et seq., and regulations adopted to implement
that Act in 49 CFR Part 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"; 01Y1B Circular A- I 33 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-Profit Organizations."
h. Grant adrninistration requirements as described in 24 CFR 570.504 and
CDBG program income requirements at 24 CFR Part 570.500(a) shall not
apply to the amounts received by the City ("Proceeds"), as allowable under
NSP Developer Agreement
Page 4 of 13
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Section 2301 (d)(4). 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
ofChula Vista Annual Funding Plan Amendment (i.e. NSP Plan);
i. 24 CFR 570.505 concerning use of rea I 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 Archaeological Preservation Act of 1974 (Public Law 93-291);
and Executive Order 11593;
k. The Labor Standards Regulations set forth in 24 CFR 570.603;
1. Labor Code section 1771 concerning prevailing wages;
m. ,The Hatch Act relating to the conduct of political activities (5 D.S.C. 9 1501,
et seq.);
n. The Flood Disaster Protection Act of 1973 (42 D.S.C. 9 4001, el seq., and the
implementing regulations in 44 CFR Parts 59-78);
o. The Rehabilitation Act of 1973 (Public Law 93-112) as amended, including
Section 504 which relates to nondiscrimination in federal programs and HUD
24 CFR Part 8;
p. The Clean Air Act (42 D.S.C. 9 7401, el seq.) and the Federal Water
Pollution Control Act, as amended (33 D.S.C. 9 1251, et seq.) and the
regulations adopted pursuant thereto (40 CFR Part 6);
q. The Drug-Free Workplace Act of 1988 (public Law 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
CFRPart35;
s. No member, officer or employee ofthe Developer, or its designee or agents,
no member of the governing body of the locality in which the program is
situated, and no other public 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 that
it shall incorporate, or cause to be incorporated, in all such contracts or
NSP Developer Agreement
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subcontracts a provision prohibiting such interest pursuant to the purposes of
this certification.
t. The Developer certifies, that in accordance with Section 319 of Public Law
10] -121, to the best of his or her knowledge and belief that:
I. 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.
11. 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 0 f 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. S 415 I, el seq.);
v. The Americans with Disabtlities Act (42 U.S.c. S 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 Attaclunent A, which is attached 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 palt ofthe
Developer to comply with the requirements of any such obligation.
2. COMPLIANCE WITH LA WS: 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 for normal costs associated
with acquisition, rehabilitation and resale of properties, including but not limited
to and as approved by the City and in compliance with Section 230] (d)(2): initial
acquisition and "Activity Delivery Costs" including real estate commissions (not
to exceed 5% per property), environment and inspection costs (not to exceed $200
NSP Developer Agreement
Page 6 of 13
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per property), recordation fees as applicable, rehabilitation c.osts as approved by
the City (including a not to exceed $500 administrative oversight fee), and
underwriting fees as allowable under the existing agreement between the City of
Chula Vista and Community HousingWorks for "Management of a First Time
Homebuyer Down Payment and Closing Costs Assistance Program"
("Homebuyer Agreement") dated August 27,2006 and amended on June 19, 2008
and March 24, 2009. Total reimbursement (for project costs) shall not exceed
$300,000 per property, unless approved by the City, and $1.505.564 for the total
program. Developer shall not submit claims to the City nor shall City reimburse
Developer for costs for which Developer is reimbursed from a source other than
the funds allocated for work under this Contract.
4. COMPENSATION SCHEDULE: City shall pay Developer monthly progress
payments upon submittal by Developer of a certified statement of actual
expenditures incurred and/or upon Developer request a minimum of five days
prior to estimated escrow close, the City shall wire funds to escrow for the
acquisition of propertics. Payment by City is not to bc construed as fmal in the
event HUD disallows reimbursement for the project or any portion thereof.
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 submit 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 reas?nable
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: The term of this Agreement shall be from March 24, 2010 and shall end
June 30, 2011, unless extended by the City. Developer shall make all good faith
and reasonable efforts to expend the initial NSP project funds that are available
($1,505,564) by June 30, 2010. If Developer fails to expend the aforementioned
initial NSP project funds by June 30, 20 I 0, such failure shall constitute "cause" to
terminate this Agreement and the City may terminate the Agreement at any time
thereafter pursuant to Section 10. After the aforementioned initial NSP project
funds are expended, Developer shall expend any and all NSP funds, including, but
not lirrtited to, funds not previously expended and monies acquired ITom the sale
of the rehabilitated homes until the Agreement ends on June 30, 20 II. With City
approval, the term of this Agreement may be extended to cover any additional
time period required to expend funds subject to this Agreement.
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8. TERMINATION FOR CONVENIENCE: The City may terminate the agreement
for convenience in accordance with 24 CFR 85.44. In that event, all finished and
unfinished documents and other materials, and properties owned or possessed by
Developer, at the option of the City, become City's sole and exclusive property. If
the Agreement is terminated by City as provided in this paragraph, Developer
sball be entitled to receive just and equitable compensation, in an amount not to
exceed that payable under this Agreement, for any satisfactory work completed on
such documents and other materials and properties to the effective date of such
termination. Developer hereby expressly waives any and all claims for damages
or compensation arising under this Agreement except as set forth herein.
9. AUTOMATIC TERMINATION: This Contract shall terminate at the discretion
of the City if the United States Government terminates the Nelghborhood
Stabilization Community Development Block Grant Program or terminates the
Project that is the subject of this Contract Developer hereby expressly waives any
and all claims for damages or compensation arising under this Agreement for
termination under this basis.
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 fullill 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 live
days written notice to Developer of the effective date oftcrmination.
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 Jor 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 (a), sections j to 5, to enforce this Agreement.
II. CONTRACT ADMINISTRATION: The Housing Manager cfthe Citv ofChula
Vista shall administer this Contract on behalf of the City. The Chief Executive
Officer of the Communitv HousingWorks 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.
NSP Developer Agreement
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12. RECORDS AND REPORTS: The Developer shall maintain records and malce
such reports as required by the City of Chula Vista to, but not limited to, enable
the City to analyze Developer's project and to comply with any and all reporting
requirements required under the grant. All records of the Developer related to this
Contract or work performed under the Contract shall be open and available for
inspection by BUD 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 annual 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
the expiration of the five-year period, then such records must be retained 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 contract, 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. OUARTERL Y REPORTS/ANNUAL REPORT: Developer shall provide the
City with a quarterly report, submitted no later than IS days after the last day of
the previous quarter, which includes a narrative of the services provided, progress
towards meeting the time line goals stated in the contract, and an itemized
accounting of the expenditures of COSG funds during the previous quarter.
Failure to submit quarterly reports in a timely manner will result in withholding of
CDSG funds until the report has been submitted. Quarterly Performance Reports
are due October 15 (l" Quarter), January 15 (2nd Quarter), April 15, (3'd
Quarter) and July 15 (4tl' Quarter). The Annual Performance Report will also be
due .July 15.
NSP Developer Agreement
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17. fNDEMNIFlCATION: City shall not be liable for, and Developer shall defend,
indemnify, and hold the City, its officers, agents, employees and volunteers
hannless from and against any and all claims, deductibles, sclf-insured retentions,
demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor
d.isputes, losses, damages, expenses, charges or costs of any kind or character,
including attorneys' fees and court costs by this Contract arising either directly 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 detemlined 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 counscl sclected by City) reimburse and hold
City and its officers, employees and agents harmless from any claims, judgments,
damages, penalties, fmes, 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 of the
presence of hazardous materials, in the soil, ground water or soil vapors on the
premises, and the rclease 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 soi~ ground
water to or under the Propelty before the commencement date;
b. Hazardous matcrials 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 otherwise), onto the
Property during or after the term ofthis Contract by any person, corporation,
pattnel'ship or entity other than City.
Funding from this program is a result of a Federal Grant, should Fedel'3l funding
be terminated for any reason, City is not liable for any consequence of any type
resulting dil'ectly or indirectly from the termination of federal funding and
Developer agrees, in addition to any other indemnification provision set fonh in
NSP Developer Agreement
Page 10 of 13
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this agreement, to indemnify, hold harmless, and defend the City against any
claim, cause of action, or any form ofliability as a result of, directly or indirectly,
funding termination.
The foregoing indemnities shall 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. ADlvfINISTRATIVE CLAIMS REOUIREMENTS AND PROCEDURES. No
suit or arbitration shall be brought arising out ofthis Agreement, against the City
unless a claim has first been presented in writing and filed with the City and acted
upon by the City in accordance with the procedures set forth in Chapter 1.34 of
thc 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, Developer shall meet and confer in good faith with City
for the purpose ofrcsolving any dispute over the terms of this Agreement.
19. 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 shall include all 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.
20. ENTIRE AGREEMENT: This Contract and referenced Attachments and Exhibits
constitutes the entire agreement ofthe parties and supersedes any previous oral or
written understandings or contracts rclated to the matters covered hercin.
21. MODIFlCATION. This Contract may not be modified except by written
amendment executed by each party.
22. ACKNOWLEDGEMENT OF FUNDING: Developer shall identiJy 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 rcgarding the Project.
Acknowledgement ofthe City's funding roles, for example, should be included in
publicity materials related to the Project. In addition, Developer agrees that the
City shall be apprised of any special events linked. to the Project so that a review
can be made on what role, if any, the City would assume.
23. 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.
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24. 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.
25. 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:
Community Housing Works
President & CEO
4345 University A venue, Suite 550
San Diego, CA 92 LOS
City:
Ciry ofChula Vista
Housing Manager
276 Fourth Avenue
Chula Vista, CA 91910
(End of page. Next page is signature page.)
NSP Developer Agreement
Page 12 of 13
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Signature Page
to
Agreement between
City of Chula Vista and
Community Housing Works
IN WITNESS WHEREOF, the Parties have executed this contract as of the date first
written above.
Dated:
3/28/Je'/'v
t .
City ofChula Vista
By:
~
J mes . Sandoval,
ity Manager, City of Chula Vista
Attest:
)
,
I
Approved as to form:
/;1/"/h/Y:J7! /~
Bart Miesfeld, City Attorney
Dated: ,="~5;(c?
I
~"-",.
Susan M. Reynold
President and CEO
Attachment A: Scope of Work
Attachment B: Insurance Requirements
Attachment C: Income Limits
Attachment 0: Disclosure Form
Exhibit I: Deed of Trust
Exhibit 2: Note Secured by Deed of Trust
NSP Developer Agreement
Page 13 of 13
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ATTACH!vlENT "A"
SCOPE OF WORK
COMMUNITY HOUSINGWORKS (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 acquisition
and rehabilitation of foreclosed and abandoned single-family residential
properties for re-sale to eligible homebuyers (as approved by the City) in NSP
eligible areas and provide project management and oversight of services for
certain aspects of the NSP, hereinafter referred to as "Project(s)."
. Shall submit information of each proposed property to be acquired with NSP
funds for City review and approval prior to acquisition, including but not limited
to:
o Itemized cost for acquisition and rehabilitation with estimated resale price
within price range of pre-committed buyers;
o Proof of due diligence that property meets NSP eligibility (i.e. target area
and vacancy requirements); and
o Property age, location, and owner contact information.
o Work with the City to conduct all required environmental review of properties in
compliance with regulations at 24 CFR Part 58, and include appropriate language
in purchase contracts for a conditional contract.
. Shall conduct appraisals in accordance with NSP guidelines and the NS FTHB
Program Guidelines.
. Shall negotiate a discount purchase price (minimum I % 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.
. Properties purchased, rehabilitated, and resold under this agreement may only be
used to benefit eligible households earning less than one hundred twenty 120%
(percent) of the Area Median Income (A1\1J), as defmed by the NSP and the
City's Annual Funding Plan Amendment using 24 CFR Part 5 definition of
income.
. The cost of acquisition and/or rehabilitation and resale of properties purchased
under the NSP are eligible expenses under this agreement.
o 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 sample City's Deed of Trust (Exhibit I) and Nore Secured By Deed of
Trust (Exhibit 2) to be recorded at time of escrow securing the City's [mancial
interest in the project(s) and affordability period. These documents may be
altered prior to close of escrow at the discretion of the City.
. Shal1 carry out the Projed under this Agreement in accordance with the guidelines
and regulations of the Neigbborhood Stabilization Program as authorized under
Attachment "A"-Scope of Work
Page 1 of3
6-63
ATTACHMENT "A"
SCOPE OF WORK
Title ill of Division B of the Housing and Economic Recovery Act of 2008
(HERA), as amended.
. Shall use the City of Chula Vista Rehabilitation Standards and at a minimum
comply with applicable laws, codes, and other requirements relating to health and
safety, quality, and habitability in order to sell such properties, including but not
limited to:
o Shall obtain any needed permits from the City of Chula Vista.
o Ensure all rehabilitation work is in compliance with OMB Circular A-122
for cost reasonableness and administrative requirements found in 24 CFR
84 for non-profrt organizations.
o Will competitively bid any rehabilitation work exceeding $10,000 per
property, in compliance with City procurement standards, and submit a
copy of the bid package and specifrcations for City review and approval.
The project shall be adveliised 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 State
requirements. The applicable Davis-Bacon decision rate shall be included
in the bid package, if applicable.
o Check the Excluded Parties List to ensure Contractors are not debarred or
suspended.
. Screen and determine eligibility for homebuyers in compliance with the
Neighborhood Stabilization First-Time Homebuyer (NS FTHB) Program
Guidelines and the existing Homebuyer Agreement, including the recordation of
home buyer loan documents.
. Shall conduct open houses on all NSP properties for pre-committed eligible
buyers in cooperation with the City.
. Shall work with the City prior to the initial open house to establish a priority point
system for accepting offers.
. Final resale prices to eligible buyers shall be in an amount equal to or less than the
cost to acquire, rehabilitate, and resell such property, including related Activity
Delivery Costs (as defrned under Section 3 above) in compliance with Section
2301 (d)(2).
. Proceeds recaptured through first mortgages on the resale of the Projects shall be
repaid to the City for additional acquisition, rehabilitation, and resale activities in
ChuIa Vista, as allowable in Section 2301(d)(4) and/or for gap fmancing under
the City's Neighborhood Stabilization First-Time Homebuyer (NS FTHB)
Program, meeting NSP guidelines. Community HousingWorks shall ccnduct
such activities under this contract until funds have been extinguished or
terminated in writing by the City.
Citv:
. The City shall provide Developer with Deed of Trust (Exhibit 1) and Promissory
Note (Exhibit 2) to be recorde<:l at time of escrow securing the City's financial
interest in the project(s).
Attachment "A"-Scope of Work
Page 2 of3
6-64
ATTACHMENT "A"
SCOPE OF WORK
. The City shall provide the Voluntary Acquisition form to acquire properties using
NSP funds.
. City shall providc Developer with maps ofNSP eligible areas as approved by the
Department of Housing and Urban Development.
. City shall provide technical assistance to Dcveloper 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 milllillum of 6 resale units serving households
earning less than 120% ofthc Area Median Income for the City ofChula Vista with the
initial NSP funds of S1.505.564.
CDSG National Objective: NSP Low and Moderate Income (LMH) Residents at or
below 120 (%) Percent Area Median Income
TIME SCHEDULE: Developer shall make all good faith and reasonable efforts to
expend the initial NSP project funds that arc available ($1,505,564) by June 30, 2010 or
earlier. After the aforementioned initial NSP project funds are expended, Developer shall
expend any and all NSP funds, including, but not limited to, funds not previously
expended and monies acquired from the sale of the rehabilitated homes until the
Agreement ends on June 30, 2011.
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 $1,505,564 for work
performed under this Contract.
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 (BUD-G0002) and provide, as requested by BUD and/or the City, information
necessary to prepare the Grantee Consolidated Annual Performance and Evaluation
Report (CAPER), Consolidated Plan, Annual Plan and other such reports and/or plans.
(End of page.)
.,
Attachment "A"-Scope of Work
Page 3 00
6-65
ATTACHMENT "8"
INSURANCE REQUIREMENTS
ContractorlDeveloper 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 Developer/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:
]. Insurance Services Office Commercial General Liability coverage (occurrence Form
CGOOOI)
2. Insurance Services Office Form Number CA 000 I covering Automobile Liability, codel
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's
Liability Insurance. '
Minimum Limits ofInsurance
Developer/Contractor must maintain limits no less than:
1. General Liability:
(Including operations,
products and completed
operations, as applicable.)
2. Automobile Liability:
3. Workers' Compensation
Employer's Liability:
$1,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability insurance
with a general aggregate limit is used, either the general
aggregate limit must apply separately to this project/location or
the general aggregate limit must be twice the required
occurrence limit.
$1,000,000 per accident for bodily injury and property damage.
Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee
Deductibles and Self-Insured 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
Developer/Contractor will provide a [mancial 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 resped to liability arising out of automobiles
owned, leased, hired or borrowed by or on behalf of the Developer/contractor, where
Attachment "B" -Insurance Requirements
Page I of 3
6-66
applicable, and, with respect to liability arising out of work or operations performed by
or on behalf of thc Developer/contractor including providing materials, parts or
equipment furnished in connection with such work or operations. The general liability
additional insured coverage must be provided in the form of an endorsement to the
Developer's/contractor's insurance using ISO CG 2010 (11/85) 01' its equivalent.
Specifically, the endorsement must not exclude Products / Completed Operations
coverage.
2. The Developer's/contractor's insurance coverage must be prinwry 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 Developer/contractor and in no
way relieves the Developer/contractor ITom its responsibility to provide insurance.
3. Each insurance policy required by this clause must be endorsed to state that coverage
will not be canceled by eitlter party, except after tltirty (30) days' prior written notice
to the City by certified mail, return receipt requested.
4. Coverage shall not extend to any indemnity coverage for tlte active negligence of the
additional insured in any case whcre an agreement to indemnify the additional insurcd
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 ofInsurers
Insurance is to be placed with licensed insurers admitted to transact business in the State of
California witlt 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.
V eriflea tion 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.
All certificates and endorsements are to be received and approved by tlte City before work
commences. The City reserves thc right to require, at any time, complete, certificd copies of all
required insurance po licies, including endorsements evidencing the coverage required 'by these
specifications.
Attachment "B" -Insurance Requirements
Page 2 of 3
6-67
Subcontractors
Developer/Contractor must include all subcontractors as insureds under its policies or furnish
separate certificates and endorsements for each subcontractor. All coverage for subcontractors
are subject to all of the requirements included in these specifications.
I
I
I
I
I
I
I
I
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 listed 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 respect to Work or Labor performed by any such claimant. All altetations, time
extensions, extra and additional work, and other changes authorized by the Specifications, or
any part ofthe Contract, may be made without securing consent ofthe 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 Developer. No further payment shall be deemed due or will be made under
the Contract until 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 ofhis"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
shaH 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.
ili. A payment bond on the part of the contractor for 100 percent of the
contract price, as determined from the prices in the bid form, and shall
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 tbe City, and until all claims for materials
and labor have been paid.
Attachment "8" -Insurance Requirements
Page 3013
6-68
80%
LOW INCOME
ANNUAL MONTHLY
INCOME* INCOME
$46,250 $3,854
$52,900 $4,408
$59,500 $4,958
$66,100 $5,508
$71,400 $5,950
$76,700 $6,392
$81,950 $6,829
$87,250 $7,271
A TT ACHMENT "c"
2009 San Diego Income Limits
Median Income: $74,900
120%
MODERATE INCOME
ANNUAL MONTHLY
INCOME INCOME
$62,950 $5,246
$71,900 $5,992
$80,900 $6,742
$89,900 $7,492
$97,100 $8,092
$104,300 $8,692
$111,500 $9,292
$118,650 $9,888
*Income Limits 80% and Below are Based on HUD Formula Income Limits Adjusted for High
Housing Cost Area
6-69
Attachment "e" - Income Limits
Page 1 of 1
ATTACHMENT "D"
Redevelopment and Housing
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 ownership of financial interests, payments, or campaign
contributions for a City ofChula Vista election must be filed. The following information must be
disclosed:
I. List the names of all persons having a [mancial interest in the project that is the
subject of the application or the contract. e.g., owner, applicant, contractor,
subcontractor, material supplier.
2. If any person' identified pursuant to (1) above is a corporation or partnership, list the
names of all individuals witb a $2000 investment in the business
(corporation/partnership) entity.
3. Ifany person* identified pursuant to (1) above is a non-profit organization ortrus!,
list the names of any person serving as director of the non-profit organization or as
trustce or beneficiary or trustor of the trust.
4. Please identify every persall, including any agents, employees, consultants, or
independent contractors you have assigned to represent you before the City in this
matter.
5. Has any person* associated with this contract had any [mancial dealings with an
official*" of the City ofChula Vista as it relates to this contract within the past 12
montbs?Yes_No_
JfY~" hriefly r/p<;;r:rihe: the: n~ture oflhe tin~nci~l intpref':t the ('\ffir.i~l** may have in
Attachment "D" - Disclosure Form
Page 1 at 2
6-70
this contract.
6. Have you made a contribution of more than $250 within the past twelve (12) months
to a current member of the Chula Vista City Council? No_ Yes_ rfyes, which
Council member?
7. Have you provided more than $340 (or an item of equivalent) to an official" of the
City ofChula Vista in the past twelve (12) months? (This includes being a source of
income, money to retire a legal debt," gift, loan, etc.)
Yes No
TfYes, which official'* and what was the nature ofitcmprovided?
Date:
Signature of Developer
Print or type name of Developer
*
Person is defmed as: any individual, firm, co-partnership, joint venture, association,
social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other
county, city, municipality, district, or other political subdivision, -or any other group or
combination acting as a unit.
**
Official includes, but is not limited to: Mayor, Council member, Planning
Commissioner, Member ofa board, commission, or committee of the City, employee, or
staff members.
Attachment "D" - Disclosure Form
Page 2 of 2
6-71
._.~.
EXHIBIT 1
NO. CHARGE o.N TIllS Do.CUMENT
Fo.R THE BENEFIT o.F A PUBLIC
AGENCY
Recording Requested By:
City Clerk
City of Chula Vista
276 Fourth Avenue
Chula Vista, California 91910
And When Recorded Mail To:
City Clerk
City ofChula Vista
276 Fourth Avenue
Chula Vista, California 91910
DEED o.F TRUST
TillS DEED OF TRUST is dated as of the of _,20--, by Community
HousingWorks, A California Non-Profit ("Trustor"), whose address is 4345 University Avenue, Suite
550, San Diego, CA 92105, Attention: Susan M. Reynolds, and THE CITY OF CHULA VISTA, a
publie body, corporate and politic (the "Beneficiary" and "Trustee"), whose address is 276 Fourth
Avenue, ChuJa Vista, California, 91910.
TRUSTo.R HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with
power of sale, all that property in the City ofChula Vista, County of San Diego, State of California
(the "Property"), described as:
(See Legal Description - Exhibit "A")
Fo.R THE PURPo.SE o.F SECURING:
(I) Payment of the indebtedness evidenced by a promissory note of even date herewith
executed by Trustor, in the principal sum of Do.LLARS
($XX:X,)()CX), and any renewal, extension, or modification of the promissory note (the "NSP Loan");
Pursuant to the terms of the NSP Developer Agreement, dated (the
"Agreement"), providing the following:
Neighborhood Stabilization Program
Cily CUlIllcilR.e:ii<lIUlion No. Z:lJ11J.._
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The NSP Loan will accrue interest at a rate ofzero percent (0%) per annum. The NSP Loan shall be
due and payable on the earliest of: (a) the date the Assisted Unit is sold; or (b) an Event of Default by
Trustee which has not been cured as provided for in the Note. Notwithstanding the ahove, it is
intended that the full amount ofthe NSP Loan for the Assisted Unit will be reduced by the following:
(a) Homebuyer Subsidy. The Homebuyer Subsidy is the amount of the Selling Price minus the
principal balance of the "Qualified Homebuyer's" (households at or below one hundred and
twenty percent (120%) ofthe area median income) home loan (the "Homebuyer Loan"). The
Homebuyer Subsidy is limited to forty 'percent (40%) of the Selling Price and capped for a
maximum amount of $70,000. The Homebuyer Subsidy is an amount assumed in the form of
silent second mortgage assistance to Qualified Homebuyer in compliance with the
Neighborhood Stabilization First-Time Homebuyer Program Guidelines; and
(b) Closing Costs. Closing Costs for the sale ofthe Assisted Unit to Qualified Homebuyer.
The NSP Loan, less the sum of the Homebuyer Subsidy and Closing Costs shall be repaid to Trustee
upon the sale of the Assisted Unit. Upon the repayment of the NSP Loan, Trustee shall be released
fi'om its repayment obligations. At the time ofthe sale of the Assisted Unit to Qualified Homebuyer,
Trustee shall cause to be delivered to Trustor a reconveyance of the Deed of Trust from such
Assisted Unit and a termination of the Agreement as a lien on such Assisted Unit.
Upon transfer oftitle to the Qualified Homebuyer, a "Homebuyer Deed of Trust" and "Homeowner's
Regulatory Agreement for Neighborhood Stabilization Program Participation" shall be recorded to
secure the Homebuyer Subsidy ("Second Mortgage Loan"), and to require its repayment if the
Assisted Unit is no longer the principal residence and upon sale, rental, refinance, conveyance,
transfer or change in title ofthe Assisted Unitprior to the expiration of the affordability period.
Sale, rental, refmance, conveyance, transfer or change in title of the Assisted Unit prior to the
expiration of the affordability period will cause the shared equity in addition to the principal as
provided in the Homebuyer Deed of Trust.
(2) Any additional sums and interest that may hereafter be loaned to the then record owner of the
Property by Trustee, when evidenced by another note or notes reciting that it or they are so secured;
(3) The performance of each agreement contained in this Deed of Trust, the terms being
synonymous, and the Notc refcrenced in Paragraph (I) above; and
(4) The performance of each agreement of Trustor under that certain "Developer Agreement"
dated March 24, 20 I 0, terms and conditions of which bind the Property and run with the land and
which are being assumed by Trustor. Notwithstanding anything set forth herein to the contrary this
Deed of Trust expressly does not secure any obligations, covenants, indemnities or other agreements
of the Trustor, Community HousingWorks, - or their successors or assigns, under: (i) that certain
Developer Agreement between Community HousingWorks and Trustee.
2
Neighborhood Stabilization Program
Cily CouncilR=>lulion:No. 2010-_
6-73
A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
Maintenance and Repair
(1) To keep the Property in good condition and repair; not to remove or demolish any buildings
on the Property; to complete or restore promptly and in good and workmanlike manner any building
that may be constructed, damaged, or destroyed on the Property; to pay when due all claims for labor
performed and materials furnished tor the Property; to comply with all laws affecting the Property or
requiring any alterations or improvements to be made on the Properly; not to commit or permit waste
of the Properly; not to commit, suffer, or permit any act upon the Property in violation onaw; and to
cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use ofthe
Property may be reasonably necessary.
Fire Insurance
(2) To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to and with loss
payable to Beneficiary as its interest may appear. Subject to the rights of any senior lenders, the
amount collected under any fire or other insurance policy may be applied by Beneficiary upon any
indebtedness secured by this Deed of Trust and in any order determined by Beneficiary, or at the
option of Beneficiary the entire amount so collected or any part of that amount may be released to
Trustor. This application or release shall not cure or waive any default or notice of default under this
Deed of Trust or invalidate any act done pursuant to such a notice.
Notwithstanding the foregoing, in the event of any fire or other casualty to the Property,
Trustor shall have the right to rebuild the Property, and to use all available insurance proceeds
therefor, provided that (a) such proceeds are sufficient to rebuild the Property in a manner that
provides adequate security to Beneficiary for repayment of the indebtedness secured hereby or if such
. proceeds are insufficient then Trustor shall have funded any deficiency, (b) Beneficiary shall have the
right to approve (which shall not be unreasonably withheld or delayed) plans and specifications for
any major rebuilding and the right to approve (which shall not be unreasonably withheld or delayed)
disbursements of insurance proceeds for rebuilding under a construction escrow or similar
arrangement, and (c) no material default then exists hereunder or under the Note. If the casualty
affects only part of the Property and total rebuilding is not feasible, then proceeds may be used for
partial rebuilding and partial repayment of the indebtedness secured hereby in a manner that provides
adequate security to Beneficiary for repayment of the remaining indebtedness secured hereby.
Defense of Security
(3) To appear in and defend any action or proceeding purporting to affect the security of this
Deed of Trust or the rights or powers of Beneficiary, or Trustee; and to pay all costs and expenses,
including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or
3
Neighborhood Stabilization Program
elly COUflcl R~luljon No. 2010-_
6-74
proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to
foreclose this Deed of Trust.
Payment of Liens and Taxes
(4) To pay, at least ten (10) days before delinquency, all taxes and assessments affecting the
Propelty, including assessments on appurtenant water stock, all encumbrances, charges, and liens,
with interest, on the Propetiy or any part of the Property, which appear to be prior or superior to this
Deed of Trust; and all costs, fees, and expenses of this Trust.
I f Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then
Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required
manner and to the extent deemed necessary by Beneficiary or Trustee to protect the security of this
Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to
or demand upon Trustor and shall not release Trustor from any obligation under this Deed of Trust.
Beneficiary or Trustee shall also have the foHowing related rights and pcwers: to enter upon the
Property for the foregoing purposes; to appear in and defend any action or proceedrng purporting to
affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; to pay,
purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either
appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary
expenses and costs, including reasonable attorneys' fees.
Reimbursement of Costs
(5) To pay immediately and without demand all sums expended by Beneficiary or Trustee
pursuant to this Deed of Trust, with interest from date of expenditure at the amount allowed by law in
effect at the date of this Deed of Trust, and to pay any amount demanded by Beneficiary (up to the
maximum allowed by law at the time of the demand) for any statement regarding the obligation
secured by this Deed of Trust.
(6) That it will pay the City Note at the time and in the manner provided therein.
(7) That it will not permit or suffer the use of any of the Property for any purpose other than the use
for which the same was intended at the time this Deed of Trust was executed.
(8) Th~t the Note, the Loan Agreement, Memorandum of First Right of Refusal, Affordable Housing
Agreement and the Declaration of Covenants and Restrictions are incorporated herein by reference
and made a part of this Deed of Trust, although not attached. Copies are on file in the office of the
Redevelopment Agency and Housing Authority of the City of Chula Vista.
(9) To perform, in a timely manner, each agreement and covenant by and between Trustor on any
and all notes, loans and deeds oftrust that are senior and/or junior to this Deed of Trust. A default in
any ofthese obligations and the expiration of any applicable notice or cure periodshall constitute a
default under this Deed of Trust.
4
Neighoorhood Stabilization "Program
CilyCotlncilR:sollltioll s,. !01Q. ~
6'-75
Affordable Housing Resale Restrictions
(10) To market the property for sale to households at or below one hundred and twenty percent
(120%) of the area median income in accordance with the Developer Agreement and Neighborhood
Stabilization Program (NSP) regulations.
(11) To provide the City with written notice of the eligible household and record all required
documents in compliance with the Trustees Neighborhood Stabilization First-Time Homebuyer
Program Guidelines.
B. THE PARTIES AGREE THAT:
Condemnation Award
(1) Any award of damages in connection with any taking or condemnation, or for injury to the
Property by reason of public use, or for damages for private trespass or injury to the Property, is
hereby assigned and shall be paid to Beneficiary (subject to the rights of any senior lenders), as its
interest may appear as further security for all obligations secured by this Deed ofT rust. Upon receipt
of such proceeds, Beneficiary may hold the proceeds as further security, or apply or release them in
the same manner and with the same effect as provided in Paragraph A(2) ofthis Deed of Trust for the
disposition of proceeds of fire or other insurance.
Waiver of Late Payments
(2) By accepting payment of any sum secured by this Deed of Trust after its due date, Benefieiary
does not waive its right either to require prompt payment when due of all other sums so secured or to
declare default for failure to pay any indebtedness secured by this Deed of Trust.
Trustee's Powers
(3) Upon written request of Beneficiary and presentation of this Deed of Trust and the Note far
endorsement, Trustee may (a) reconvey all or any part of the Property; (b) consent to the making and
recording, or either, of any map or plat of all or any part of the Property; (c) join in granting any
easement on the Property; or (d) join in or consent to any extension agreement or any agreement
subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide
Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper
performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the
personal liability of any person for payment afthe indebtedness secured by this Deed of Trust, or the
lien of this Deed of Trust on the remaining property as security for the repayment of the full amount
secured by this Deed of Trust. .
5
Neighborhood StabiliZ3tion Program
CjlyC"une>lResohllioo No_ 2010-_
6-76
Full Reconveyance
(4) Upon ,witten request of Beneficiary stating that all sums secured by this Deed of Trust have
been paid, surrender of this Deed of Trust, the Note, and any other notes secured by this Deed of
Trust to Trustee for cancellation and retention, and payment of Trustee's fees and charges, Trustee
shall reconvey, without warranty, the Property then subject to this Deed of Trust. The recitals in the
reconveyance shall be conclusive proofofthe truthfulness ofthc recitals, The grantee in the recon-
veyance may be described as "the person or persons legally entitled thereto," Five years after
issuance of the full reconveyance, Trustee may destroy the Note and this Deed of Trust, unless
directed in the request to retain them,
Assignment of Rents
(5) As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power,
and authority during the continuance of these Trusts, to collect the rents, issues, and profits of the
Property, but reserves the right, prior to any default, which shall continue beyond any applicable
notice and cure periods, by Trustor in payment of any indebtedness secured by this Deed of Trust or
in the performance of any agreement under this Deed of Trust, to collect and retain these rents,
issues, and profits as they become due and payable. Upon any such default, Beneficiary may, without
notice and without regard to the adequacy ofthe security for the indebtedness secured by this Deed of
Trust, either personally or by agent or court-appointed receiver, do the following: enter upon and
take possession of the Property or any part of the Property; sue for or otherwise collect all rents,
issues, and profits, including those past due and unpaid; and apply these rents, issues, and profits, less
costs and expenses of operation and collection (including reasonable attorneys' fees), upon any
indebtedness secured by this Deed of Trust, in any order determined by Beneficiary, The exercise of
the foregoing rights by Beneficiary shall not cure or waive any default or notice of default under this
Decd of Trust or invalidate any act done pursuant to such a notice.
Default in Foreclosure
(6) Upon default by Trustor in the payment of any indebtedness secured by this Deed of Trust or
in the performance of any material obligation under this Deed of Trust, and the expiration of any and
all applicable notice or cure periods, Beneficiary may declare all sums secured by this Deed of Trust
immediately due and payable by delivering to Trustee a written declaration of default and demand for
sale and a written notice of default and election to sell the Property, Trustee shall cause the notice of
default and election to sell to be recorded, Beneficiary also shall deposit with Trustee this Deed of
Trust, the Note, and all documents evidencing any additional expenditures secured by this Deed of
Trust,
After the required time period has lapsed following the recordation ofthe notice of default, and after
notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell the
Property at the time and place specified in the notice of sale, either as a whole or in separate parcels,
and in any order determined by Trustee, at public auction to the highest bidder for cash in lawful
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_ .~.W'
money of the United States, payable at the time of sale. Trustee may postpone sale of all or any
portion of the Property by public announcement at the time and place of sale, and from time to time
thereafter may postpone the sale by public announcement at the time fixed by the preceding
postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property
sold, but without any covenant or warranty, express or implied. The recital in the deed of any matter
or fact shall be conclusive proof of the truthfulness ofthe recita!. Any person, including Trustor,
Trustee, or Beneficiary, may purchase at the sale.
After deducting all costs, fees, and expenses of Trustee and Beneficiary under this paragraph,
including costs of procuring evidence oftitle incurred in connection with sale, Trustee shall apply the
proceeds of sale to payment of: all sums expended under the terms of this Deed of Trust, not then
repaid, with accrued interest at the amount allowed by law in effect at the date ofthis Deed of Trust;
all other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons
legally entitled to the remaining proceeds.
(7) Should the undersigned agree to or actually sell. convey, transfer, or dispose of, or further
encumber the real property described in this deed of trust securing the Promissory Note, or any part
orit, or any interest in it, without first obtaining the written consent of the Holder of the Note, then
all obligations secured hy the Note and trust deed may be declared due and payable, at the option of
the Holder. Consent to one transaction of this type will not constitute a waiver of the right to require
consent to future or successive transactions.
General Provisions
(8) This Deed applies to, inures to the benefit of, and binds all parties to this Deed of Trust and
their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term "Benefici-
ary" shall mean the holder and owner, including pledgee, of the Note secured by this Deed of Trust,
whether or not named as a beneficiary in this Deed of Trust, and the heirs, legatees, devisees,
administrators, executors, and assigns of any such person. In this Deed, whenever the context so
requires, the masculine gender includes the feminine and/or neuter, and the singular number includes
the p Iura!.
Acceptance by Trustee
(9) Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public
record as provided by law. Trustee is not obligated to notiiy any party to this Deed of Trust of
pending sale under any other deed of trust or of any action or proceeding in which Trustor,
Beneficiary, or Trustee shall be a party unless brought by Trustee.
Su bstitution of Trustees
(l0) Beneficiary, or any successor in ownership of any indebtedness secured by this Deed of Trust,
may from time to time, by written instrument, substitute a successor or successors to any Trustee
named in or acting under this Deed of Trust. The substitution instrument shall contain the name of
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the original Trustor, Trustee, and Beneficiary under this Deed of Trust, the book and page where this
Deed is recorded, and the name and address ofthe new Trustee. When executed by Beneficiary and
duly aclmowledged and recorded in the office of the recorder of the county or counties where the
Property is situated, the substitution instrument shall be conclusive proof of proper substitutionoftbe
successor Tmstee or Trustees. Any successor Trustee or Trustees shall, without conveyance from
the predecessor Trustee, succeed to all its title, estate, rights, powers, and duties.
Cumulative Powers and Remedies
(II) The powers and remedies conferred in this Deed of Trust are concun.ent and cumulative to all
other rights and remedies provided in this Deed ofTmst or given by law. These powers and remedies
may be exercised singly, successively, or together, and as often as deemed necessary.
Conclusiveness of Recitals
(12) The recitals contained in any reconveyance, trustee's deed, or any other instrument executed
by Trustee from time to time under the authority ofthis Deed of Trust or in the exercise of its powers
or the performance of its duties under this Deed of Trust, shall be conclusive evidence of their truth,
whether stated as specific and particular facts, or in general statements or conclusions. Further, the
recitals shall be binding and conclusive upon Trustor, its heirs, executors, administrators, successors,
and assigns, and all other persons.
Attorneys' Fees
(13) If any action is brought for the foreclosure ofthis Deed of Trust or for the enforcement of any
provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to pay all costs and
expenses of Beneficiary and Trustee, including reasonable attorneys' fees; and these sums shall be
secured by this Deed of Trust.
Co-trustees
(14) If two or more persons are designated as Trustee in this Deed of Trust, any, or all, power
granted in this Deed of Trust to Trustee may be exercised by any oHhose persons, if the other person
or persons are unable, for any reason, to act. Any recital 0 fthis inability in any instrument executed
by any oHhose persons shall be conclusive against Trustor and Tmstor's heirs and assigns.
Request for Notices of Default and Sale
(15) In accordance with Section 2924b of the California Civil Code, request is hereby made that a
copy of any Notice 0 fDefault and a copy of any Notice 0 f Sale under any Deeds ofT rust executed by
Trustor, and recorded in the Official Records of San Diego County, California, in which Beneficiary,
is named as beneficiary, be mailed to:
Beneficiary:
City of Chula Vista
276 Fourth Avenue
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Neighborllood Stabilization Program
e,l)' C(}\lDciI R~o\ulilXl No.. ::OUI.._
6-79
Chula Vista, CA 91910
Attention: Director of Redevelopment and Housing
Ifto Trustor:
Community HousingWorks
4345 University Avenue, Suite 550
San Diego, CA 92105
Attention: Susan M. Reynolds
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the
address contained in this recorded request. If your address changes, a new request must be
record ed.
I
The undersigned Trustor requests that a copy of any notice of default and of any notice of sale under
this Deed of Trust be mailed to Trustor at the address of Trustor set forth above.
(16) Trustor shall permit Beneficiary and its agents or representatives, to inspect the Property at
any and all reasonable times, upon prior written notice of not less than twenty-four (24) hours (unless
Trustor is in default under any of the Loan Documents). Inspections shall be conducted so as not to
interfere with the tenants' use and enjoyment of the Property and the general operation of the
Property.
(17) The City Loan provided for herein shall be subject to tbe restrictions set forth in the Loan
Agreement and Declaration of Covenants and Restrictions and Trustor hereby consents to such
restrictions and agrees to be bound thereby. Such restrictions shall be in addition to and not in
limitation of the rights of Beneficiary expressly set forth in this Deed of Trust.
(18) For purposes ofthis Deed of Trust, "Hazardous Materials" mean and include any hazardous,
toxic or dangerous waste, substance or material including, without limitation, flammable explosives,
radioactive materials, asbestos, hazardous wastes, toxic substances and any materials or substances
defined as hazardous materials, hazardous substances or toxic substances in (or for purposes of) the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as
amended (42 U.S.C. ~9601, ef seq.), the Hazardous Materials Transportation Act (49 U.S.c. ~180],
ef seq.), the Resource Conservation and RecovelY Act (42 U.S.C. ~6901, ef seq.), and those
substances defined as hazardous wastes in ~251l7 of the California Health and Safety Code or as
hazardous substances in ~25316 of the California Health and Safety Code or in any regulations
promulgated under either such law, any so-called "Superfund" or "Superlien" law, or any other
federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or
dangerous waste, substance or material, as now or at any time hereafter in effect.
(19) In addition to the general and specific representations, covenants and warranties set forth in
the Deed of Trust or otllerwise, Trustor represents, covenants and warrants, with respect to
Hazardous Materials, as follows:
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(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever
caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed
of on, under or at the Property or any part thereof, and neither the Property nor any part thereof, or
any propelty adjacent thereto, has ever been used (whether by Trustor or, to the best knowledge of
Trustor, by any other person) as a manufacturing site, dump site or storage slte (whether permanent
or temporary) for any Hazardous Materials. ''Hazardous Materials" for purposes ofthis Paragraph
19(a) shall not include substances typically used in the ordlnary course of developing, operating and
maintaining apartment complexes, provided that such substances are used in accordance wlth all
applicable laws.
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees, contractors
and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and
against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every
kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers, employees,
contractors or agents for, with respect to, or as a direct or indirect result of, the presence or use,
generation, storage, release, threatened release or disposal of Hazardous Materials on or under the
Property or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous
Materials from the Property (including, without limitation, any losses, liabilities, damages, injuries,
eo,'ts, expenses or claims asserted or arising under CERCLA, any so-called "Superfund" or
"Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation,
order or decree regulating, relating to or imposing llability or standards of conduct concerning any
Hazardous Materials) regardless of whether or not caused by or within the control of Trustor. The
foregoing indemnificarion shall not apply to any liabiliry resulting from (Q an event that occurs after a
transfer of the Property due to any foreclosure sale Gudicial or nonjudicial) or a deed in lieu of
foreclosure, or (ii) acts or omissions of Beneficiary or its agents.
(c) Trustor has not received any notice of (i) the happening of any event involving the use,
spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge") affecting Trustor
or the Property or (ii) any complaint, order, citation or notice with regard to air emlssions, water
discharges, noise emissions or any other environmental, health or safety matter affecting Trustor or
the Property ("Environmental Complaint") from any person or entity, including, without limitation,
the United States Environmental Protection Agency ("EP A"). If Trustor receives any such notice
after the date hereof, then Trustor will give, within seven (7) business days thereafter, oral and written
notice of same to Beneficiary.
(d) Without limitation of Beneficiary's rights under this Deed of Trust, Beneficiary shall
havc the right, but not the obligation; to enter onto the Property or to take such other actions as it
deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise
deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice
from any person or entity, including without limitation, the EP A, asserting the e>dstence of any
Hazardous Materials or an Environmental Complaint on or pertaining to the Property which, if true,
could result in an order, suit or other action against Trustor affecting any part of the Property by any
governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its
security under this Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the
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CilyCouoc,1Rcl;olution~o.2016-_
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exercise of any such rights shall be secured by this Deed of Trust and shall be payable by Trustor
upon demand together with interest thereon at a rate equal to the highest rate payable under the note
secured hereby.
(e) The foregoing representation, covenants, indemnities and warranties shall be
continuing and shall be true and correct for the period from the date hereof to the release of this Deed
of Trust (whether by payment of the indebtedness secured hereby or foreclosure or action in lieu
thereof), and these representations, covenants, indemnities and warranties shall survive such release.
(20) Each successor owner of an interest in the Property other than through foreclosure or deed in
lieu of foreclosure of an interest superior to this Deed of Trust, shall take its interest subject to this
Deed ofTmst.
(21) This Deed of Trust shall be governed by and construed in accordance with the laws ofthe
State of California.
I
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(22) [f the Property is allocated to a low-income housing tax credits under the provisions of
sections 17058 and 23610.5 ofthe Revenue and Taxation Code of State of California and under the
Section 42 of the Interna] Revenue Code of ]986, as amended ("Code") then the Property will be
subject to certain requirements of Section 42 of the Code, including, but not limited to Section
42(h)(6)(e)(ii), which does not permit the eviction or termination oftenancy (other than for good
cause) of an existing tenant of any low- income unit or any increase in the gross rent with respect to
such unit not otherwise permitted under Section 42 for a period of three (3) years after the date the
Property is acquired by foreclosure or deed in lieu of foreclosure. Beneficiary acknowledges the
provisions of Section 42 of the Code and agrees that, if and to the extent applicable to Beneficiary in
connection with the Property, Beneficiary will comply therewith.
Recourse Durin!! Construction and Non-Recourse After Filin!! of Certificate of Completion.
(23) Following the timely completion of the construction of the Project, as defined in the Loan
Agreement, measured by the timely ftIing of a Certificate of Completion, nothing herein contained
shall be deemed to cause T rustor (or any of its partners, or any of their respective directors, officers,
employees, partners, principals or members) personally to be liable to payor perform any of its
obligations evidenced hereby, and the Beneficiary shall not seek any personal or deficiency judgment
on such obligations, and the sole remedy 0 f the Beneficiary with respect to the repayment ofthe loan
evidenced by this Note shall be against the Property; provided, however, that the foregoing shall not
in any way affect any rights the Beneficiary may have (as a secured party or otherwise) hereunder or
under this Deed of Trust, or any other rights the Beneficiary may have to: (a) recover directly from
the Trustor any funds, damages or costs (including, without [imitation, reasonable attorneys' fees and
costs) incurred by the Beneficiary as a result of fraud, intentional misrepresentation or intentional
waste by Trustor; or (b) recover directly from the Trustor any condenmation or insurance proceeds,
or other similar funds or paYments attributable to the Property which under the terms of this Deed of
Trust should have been paid to the Beneficiary, and any costs and expenses incurred by the
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Beneficiary in connection therewith (including, without limitation, reasonable attorneys' fees and
costs).
(24) All individuals signing this Deed of Trust for a party which is a corporation, a partnership or
other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in
any other legal capacity, covenant to the Beneficiary that they have the necessary capacity and
authority to act for, sign and bind the respective entity or principal on whose behalf they arc signing.
(25) This Deed of Trust is subordinate and subject to the Deed of Trust and Assigmnent of Rents
dated as of . , executed by Trustor for the benefit of
(the" Beneficiary") and recorded concurrently herewith, and the rights hereunder are otherwise
subject to the terms and conditions of that certain Subordination Agreement recorded concurrently
herewith and executed by the Trustor, and the Beneficiary, the City of Chula Vista.
[Signature Pages to Follow]
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Neighborhood Stabiliz:ltion Progrom
City C"",wl R<=>lulion No. 2(lJ(i.._
6-83
COMMUNITY HOUSINGWORKS, a California Non-Profit
By:
Susan M. Reynolds, President & Chief Executive Officer
CITY OF CHULA VISTA
By:
James D. Sandoval, City Manager
13
Neighborhood Stabilization Program
CitYCoUIlciIRC5<llutloIlNu.1010-_
6-84
REQUEST FOR FULL RECONVEYANCE
To be used only when note has been paid
Dated
TO
, Trustee:
The undersigned is the legal owner and holder of all indebtedness secured by the within
Deed of Trust. All sums secured by said Deed of Trust have been fully paid and satisfied; and you
are hereby requested and directed, on payment to you of any sums owing to you under the terms
of said Deed of Trust, to cancel all evidences of indebtedness, secured by said Deed of Trust,
delivered to you herewith together with the said Deed of Trust, and to reconvey, without
warranty, to the parties designated hy the terms of said Deed of Tmst, the estate now held by you
under the same.
By
By
By
By
NUULRECONVEYANCETO:
14
Neighborhood Stabihzation Program
City ClluncilResnluticn No. 2010._
6-85
ACKNOWLEDGMENT
State of California )
)
County of San Diego )
On , 200_, before me, personally appeared,
personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(ies),
and that by his/herltheir signature(s) on the instrument the person(s), or the entity on behalf of which
the person(s) acted, executed the instrument.
WITNESS my hand and 0 fficial sea!.
Signature
(Seal)
15
Neighborhood Stabilization Program
City CO""ClJResolurion No. 2010-_
6-86
ACKNO\VLEDGiHENT
STATE OF CALlFORJ'I1A )
) S.S.
COUNTY OF SAN DIEGO )
On , 20 before me, Donna Norris, City Clerk, personally appeared
, who proved to me on the basis of satisfactory evidence to be the person
whose name is subscribed to the within instrument and acknowledged to me that he executed the
same in his authorized capacity, and that by his signature on the instrument, the person, or the entity
upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of Cali fomi a that the foregoing
paragraph is true and correct
WITNESS my hand and official seal
Donna Norris, CMC
City Clerk of the City ofChula Vista
(SEAL)
16
Neighborhood Slabilintion Program
CityC"""cilResolution No.101Q-_
6-87
Exhibit "A"
Legal Description
All that certain real property situated in the City of Chula Vista, County of San Diego, State of
California, described as fo \lows:
INSERT LEGAL DESCRIPTION
APN:
17
Neighborhood Stabilization Program
CiryCo"n,~ Resolution No. 201~_
6-88
EXHIBIT 2
DONOT DESTROY THIS NOTE: WHEN PAID, THIS NOTE AND THE DEED OF TRUST
SECURING IT MUST BE SURRENDERED TO TRUSTEE FOR CANCELLATION
BEFORE RECOJ'I1VEY ANCE WILL BE ~MADE.
----------------------------------------------------------------------------------------------------------------
NOTE SECURED BY DEED OF TRUST
("Note")
San Diego, California
Month Day, 20 I 0
1. Principal and Interest.
FOR VALUE RECEIVED, and in consideration of thc Ncighborhood Stabilization Program (NSP)
Developer Agrccmcnt, datcd March 24, 20 I 0 (thc "Agreemcnt"), made by the City of Chula Vista, a
public body, corporate and politic ("City" and "Holder") and Community HousingWorks , A California
Non-Profit Organization ("Maker") promises to pay to City, or order, at 276 Fourth Avenue, Chula
Vista, California 91910, the sum of Dollars (U.S. $ ) (the "NSP Loan"),
at the rate of zero percent (0%) pcr annum, pursuant to the tcrms of the NSP Developer Agreement,
dated , for acquisition, rehabilitation and disposition of the "Assisted Unit" at
2. Affordable Housing Resale Restriction.
This Promissory Note (the "Promissory Note" or "Notc") is made and delivered pursuant to and in
implementation of the Developer Agreement by and between the Holder and the Maker dated March
24,2010 (the "Restriction"), a copy ofwhieh is on file as a public record with the Holder and is
incorporatcd hcrcin by reference. Unless dclinitions of terms have been expressly set out at length
herein, each term shall have the same definition as set forth in the Restriction.
3. Acceleration Upon Default.
In the event of any default under the terms of this Note after the expiration of all applicable cure
periods, as set forth in the Loan Agreement, of the Deed of Trust or security agreement securing this
Notc, or of the Loan Agreement, or any prior or subsequent loans, notes and/or deed oftrust, at the
option of the holder of this Note, and after written notice to Maker, with thirty (30) days in which to
curc any default, all principal and interest due under this Note and the Note shall immediately become
due and payable, without further notice. Failure to exercise such option shall not constitute a waiver of
the right to exercise it in tne event of any subsequent defauh. Without limiting any other events of
default contained herein, or in any ofthe Loan Documents, the failure to complete rehabilitation of the
Neighborhood Stabili7..ation Program
CityCouncil Resollrtlon No. 2010-_
6-89
Project within a reasonable period oftime shall be considered an event of default, entitling the City to
accelerate the payment of principal and interest hereunder, as provided in this Section 3.
4. Loan Terms.
,
I
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II
:'
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!
,
The NSP Loan will accrue interest at a rate of zero percent (0%) per annum. The NSP Loan shall
be due and payable on the earliest of: (a) the date the Assisted Unit is sold; or (b) an Event of
Default by Trustor which has not been cured as provided for in the Note. Notwithstanding the
above, it is intended that the full amount of the NSP Loan for the Assisted Unit will be reduced by
the following:
(a) Homebuyer Subsidy. The Homebuyer Subsidy is the amount of the Selling Price minus the
principal balance of the Qualified Homebuyer's (households at or below one hundred and
twenty percent (120%) of the area median income) home loan (the "Homebuyer Loan").
The Homebuyer Subsidy is limited to forty percent (40%) of the Selling Price and capped
for a maximum amount of$70,000. The Homebuyer Subsidy is an amount assumed in the
form of silent second mortgage assistance to Qualified Homebuyer in compliance with the
Neighborhood Stabilization First-Time Homebuyer Program Guidelines; and
(b) Closing Costs. Closing Costs for the sale of the Assisted Unit to Qualified Homebuyer.
The NSP Loan, less the sum of the Homebuyer Subsidy and Closing Costs shall be repaid to
Trustee upon the sale of the Assisted Unit. Upon the repayment of the NSP Loan, Trustee shall
be released from its repayment obligations. At the time of the sale of the Assisted Unit to
Qualified Homebuyer, Trustee shall cause to be delivered to Trustor a reconveyance of the Deed
of Trust from such Assisted Unit and a termination of the Agreement as a lien on such Assisted
Unit.
Upon transfer of title to the Qualified Homebuyer, a "Homebuyer Deed of Trust" and
"Homeowner's Regulatory Agreement for Neighborhood Stabilization Program Participation"
shall be recorded to secure the Homebuyer Subsidy ("Second Mortgage Loan"), and to require its
repayment if the Assisted Unit is no longer the principal residence and upon sale, rental, refinance,
conveyance, transfer or change in title of the Assisted Unit prior to the expiration of the
afford ability period.
Sale, rental, refinance, conveyance, transfer or change in title of the Assisted Unit prior to the
expiration of the affordability period will cause the shared equity in addition to the principal as
provided in the Homebuyer Deed of Trust.
Pursuant to the NSP Developer Agreement, the term of the NSP Note shall be twelve months
(12) from the Effective Date.
Should the undersigned sell, convey, transfer, further encumber, or dispose of the Property described in
the Deed of Trust securing this Note, or any part of it, or any interest in it, without first obtaining the
written consent of City, or the then holder of this Note, then all obligations secur~d by this Note may be
declared due and payable, at the option of City, or the then holder of this Note. City reserves the right
Neighborhood Stlbl!ization Program
Cj~y Council Resolution No. 2010-_
2
6-90
to approve all sales, transfers, conveyances, additional encumbrances, or dispositions o[the real
property which approval shall not be unreasonably withheld or delayed. Consent to one transaction of
this type will not constitute a waiver of the right to require consent to future or successive transactions.
5. Security for Note.
This Promissory Note is secured by a Deed of Trust of even date herewith, executed by Maker as
Trustor in favor of Holder as Beneficiary and Trustee.
6. Attornevs' Fees and Costs.
ln the event that any action is instituted to enforce payment under this Promissory Note, the parties
agree that the non-prevailing party shall be responsible for and shall pay to the prevailing party aU cnurt
costs and all attorneys' fees incurred in enforcing this Note.
7. Amendments.
This Note may not be modified or amended except by an instrument in writing expressing such intention
executed by the parties sought to be bound thereby, which writing must be so firmly attached to this Note
so as to become a permanent part thereof.
8. Maker's Waivers.
Maker waives any rights to require the Holder to: (a) demand payment of amounts due (known as
"presentment"), (b) give notice that amounts due have not been paid (known as "notice of dishonor"), and
(c) obtain an official certification of nonpayment (known as "protest").
8. Notice.
Any notice that must be given to Maker under this Note shall be given by personal delivery or by
mailing it by certified mail addressed to Maker at the Property address above or such other address as
Maker shall direct from time to time in writing. Failure or delay in giving any notice required hereunder
shall not constitute a waiver of any default or late payment, nor shaU it change the time for any default
or payment. Any notice to Holder shall be given by certified mail at Holder's address stated in the
preamble to this Note.
9. Successors Bound.
This Promissory Note shaU be binding upon the parties hereto and their respective heirs, successors
and assigns.
10. Catastroohic Event.
Neighborhood Stabilization Program
City Council Resolution No. 2010-_
3
6-91
In the event of a catastrophic event, which requires the sale ofthe Property, the Maker shall give
written notice to the City, which notice shall initiate the obligations ofthe City under the terms of the
Restriction to seck an Eligible Purchaser.
[Signature Page to Follow]
Neigh.borhood Stabilization Program
eit y Council Resolution No. 2010-_
4
6-92
Maker:
COMMUNITY HOUSINGWORKS
a California non-profit organization
By:
Susan M. Reynolds, President &, Chief Executive Officer
5
6-93
Exhibit "A"
Legal Description
6
6-94
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA (1) AUTHORIZrNG THE CITY MANAGER
TO APPROPRIATE $1,470,000 IN NEIGHBORHOOD
STABILIZATlON PROGRAM FUNDS AND $452,936 IN
HOME INVESTMENT PARTNERSHIP FUNDS FOR USES
PREVIOUSL Y APPROVED BY CITY COUNCIL; (2)
AUTHORIZING THE CITY MANAGER TO EXCUTE A
FIRST AMENDMENT TO THE MARCH 24, 2010
AGREEMENT BETWEEN THE CITY OF CHULA VISTA'
AND COMMUNITY HOUSINGWORKS FOR THE
MANAGEMENT AND IMPLEMENTATION OF A
NEIGHBORHOOD STABILIZATION PROGRAM; AND (3)
AUTHORIZING THE CITY MANAGER TO EXECUTE A
THIRD A.1\1ENDMENT TO THE AGREEMENT BETWEEN
THE CITY AND COMMUNITY HOUSINGWORKS FOR THE
FIRST TlME HOMEBUYER ASSISTANCE PROGRAM
WHEREAS, on March 24, 2010, the City, with Council approval, entered into an
agreement between Community HousingWorks and the City of Chula Vista for the use of
Neighborhood Stabilization Program funds to acquire, rehabilitate, and resell properties to first
time homcbuycrs (hereinafter March 24, 20 I 0 Agreement); and
WHEREAS, the City of Chula Vista may receive anticipated revenue from NSP
activities (acquisition/rehabilitation/resell) completed by Community HousingWorks under the
March 24, 2010 Agreement earmarked to assist low- and moderate-income households
purchasing foreclosed properties in Neighborhood Stabilization Program (NSP) target areas; and
WHEREAS, staff has identified up to $1,470,000 in revenue received from NSP
activities be earmarked to assist additional NSP eligible home buyers and establish a revolving
loan fund; and
WHEREAS, the City wishes to appropriate the $1,470,000 identified above to assist
additional NSP eligible homebuyers and establish a revolving loan fund and to enter a First
Amendment to the March 24, 2010 Agreement to effectuate the appropriation of such funds; and
WHEREAS, on August 23, 2007, the City also 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
6-95
Resolution No. 20 10-
Page 2
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, the City Council of the City of Chula Vista wishes to approve 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 the aforementioned $452,936
in HOME Investment Partnership Funds; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA HEREBY
DOES RESOLVES as follows:
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(l) The City Manager is authorized to appropriate revenue and establish a revolving loan
fund from NSP funds received in an amount not to exceed $1,470,000 with existing non-
profit NSP contractors/developers, including Community Housing Works to acquire and
rehabilitate properties under the NSP program to be sold to eligible first time
home buyers; and
(2) The City Manager is further authorized to appropriate HOME Investment Partnership
Funds in the amount of $452,936 for first time homebuyer assistance; and
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(3) A First Amendment to the March 24, 2010 Agreement between the City of Chula Vista
and Community HousingWorks for the Management and Implementation of a
Neighborhood Stabilization Program is approved and the City Manager is authorized to
execute such amendment; and
(4) The Third Amendment to the Agreement between the City of Chula Vista and
Community HousirigWorks for First Time Homebuyer Program for underwriting services
is approved and the City Manager is authorized to execute such amendment.
Presented by:
Approved as to form by:
James D. Sandoval
City Manager
.~ ftZ-
Bart C. Miesfeld
City Attorney
6-96
THE A TT ACHED AGREEMENT HAS BEEN REVIEWED
AND APPROVED AS TO FORt\tI BY THE CITY
A TTORt'\TEY'S OFFICE AND WILL BE
FORMALLY SIGNED UPON APPROVAL BY
THE CITY COUNCIL
~ft{
Bart C. Miesfeld
City Attorney
Dated:
11 ! 3//0
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
6-97
THIRD AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
For
MANAGEMENT OF A FIRST TIME HOMEBLJYER 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, 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 HOME and NSP requirements including, but not
limited to, underv'/Titing 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 allocatcd $452,936 in HOME funds for a First Time Homebuyer
Program (FTHB). HUD approved the City's Action Plan amendment.
D. The City Council of the City ofChula Vista also approved a Developer Agreement on
March 23, 2010 between 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 financing for first time homehuyers purchasing NSP eligible properties using
their own Realtor. The Parties entered into the Management and Implementation
Agreement dated in March 24, 20 I 0 (hereinafter "March 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 requirements. 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
separate 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
June 30. 2011.
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AGREEMENT
The Parties agree as follows:
I. 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 I, above.
3. The Agreement shall be amended as follows:
a. The Second Amendment dated March 17,2009 amended the initial
Agreement dated March 23, 2007 by adding terms ("Terms") to the last
paragraph of the initial Agreement, Exhibit A, Paragraph 8, "Scope of
Work and Schedule, A. Detailed Scope of Work." The aforementioned
Terms are hereby modified as follows:
1. 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
home buyer 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."
11. The fifth paragraph is amended to now read as follows:
"Consultant shall commit and expend the additional allocation of
$452,936 in HOME funds by June 30, 2011, unless mutually
extended by both parties."
Ill. The following paragraph shall be added to the end of the Terms
and shall read as follows: "Consultant understands earmarks for
the expenditure and commitment ofNSP funds are now covered
under a separate Management and Implementation Agreement for
a Neighborhood Stabilization Program dated March 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 I through 3") in Exhibit A, Paragraph 8, "Scope of Work
and Schedule, C. Dates of Time Limits for Delivery of Deliverables."
6399
The aforementioned Deliverables 1 through 3 are hereby modified to now
read as follows:
"Deliverable No.1: Consultant shall expend NSP funds in accordance
with the Management and Implementation Agreement dated March 24,
2010.
Deliverable No.2: Consultant shall close five (5) First Time
Homebuyer loans using HOME funds by June 30, 2011.
Deliverable No.3: Consultant shall commit and expend all remaining
HOME funds by June 30, 2011."
4. Prior versions of "Exhibit B" are hereby replaced by the "Amended 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.]
6-100
SIGNATURE PAGE
To
THIRD AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
For
MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNPA YMENT
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:
,2010
City of Chula Vista
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by:
James D. Sandoval, City Manager
Attest:
Donna Norris, City Clerk
Approved as to form:
Bart C. Miesfeld, City Attorney
Dated:
Community HousingWorks
By:
Susan M. Reynolds, President & CEO
Attachments:
1. Agreement between the City of Chula Vista and Community HousingWorks dated
August 23, 2007, and First Amendment and Second Amendment dated June 17,2008 and
March 17, 2009, respectively
2. Amended "Exhibit B," consisting of updated Neighborhood Stabilization Funds and
HOME Investment Partnership Funds Source of Funds Side by Side Comparison of
Homebuyer Assistance Requirements
4
6-101
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
~Y}/Ylv-n ~
Bmt C. Miesfeld
City Attorney
Dated:
il/3)/O
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
FOR
MANAGEMENT AND IMPLEMENTATION OF A
NEIGBORHOOD ST ABILIZA TION PROGRAM
6-102
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
FOR
MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD
STABILIZATION PROGRAM
RECITALS
A. The City Council of the City ofChula Vista approved a Developer Agreement on
March 23, 2010 between 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 and/or providing "gap"
financing for eligible households within Neighborhood Stabilization Program
(NSP) eligible target areas.
B. After Council approval, the City of Chula Vista ("City") and Community
HousingWorks ("Consultant") (collectively, the "Parties") entered into an
agreement, dated March 24, 2010 for Management and Implementation of a
Neighborhood Stabilization Program (the "March 24,2010 Agreement"), attached
as Attachment 1.
C. Pursuant to the March 24, 2010 Agreement, Consultant agreed to acquire,
rehabilitate, and resell properties to eligible NSP First Time Homebuyers and any
proceeds recaptured through the resale of said properties be repaid to the City of
Chula Vista to be used for additional NSP activities.
D. The City wishes to allow Community HousingWorks to use the recaptured NSP
funds to acquire, rehabilitate, and resell additional properties.
AGREEMENT
The Parties 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 funds
2. This First Amendment shall be effective on the later of the following dates: li)
execution of this First Amenchnent by the City; or (ii) satisfaction of the contingencies set
forth in paragraph 1, above.
3. The March 24, 2010 Agreement shall be amended as follows:
a. In Paragraph 3, "Compensation," the final two sentences shall be amended to
now read: "Total reimbursement (for project costs) shall not exceed $300,000
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6-103
per property, unless approved by the City, and $2,975,564 for the total
program, of which $1,505,564 has already been allocated."
b. In Paragraph 3, "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 $1,470,000 in NSP funds and must be committed and expended
by June 30, 20 II."
c. In Paragraph 7, "TERM," after the last paragraph, the following shall be
added: "After initial NSP project funds are spent, Developer agrees to
commit and expend additional NSP appropriations of up to $1,470,000 by
June 30, 2011."
d. In Attachment A, "BUDGET," the second sentence shall now read as follows:
"In no case shall Developer be entitled to, nor shall City reimburse Developer,
more than the initial $2,975,564 for work performed under this agreement, of
which $1,505,564 has already been allocated."
e. In Attachment A, "BUDGET," after the last paragraph, the following shall be
added: "After initial NSP project funds are spent, Developer agrees to commit
and expend additional NSP appropriations of up to $1,470,000 by June 30,
2011."
4. All other terms of the Agreement shall remain in full force and effect. However, if a
cont1ict exists between the terms in this First Amendment and prior terms, the terms in
this First Amendment shall control.
[Next Page is Signature Page.]
6-~ 04
SIGNATURE PAGE
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF CHULA VISTA
AND
COMMUNITY HOUSING WORKS
FOR
MANAGEMENT AND IMPLEMENTATION OF A NEIGHBORHOOD
ST ABILIZA TION PROGRAM
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:
IN WITNESS WHEREOF, City and Consultant have executed this First Amendment to
the Agreement indicating that they have tead and understood the Third Amendment and
indicate their full and complete consent to its terms:
Dated:
,2010
City of Chula Vista
by:
James D. Sandoval, City Manager
Attest:
Donna Norris, City Clerk
Approved as to form:
Bart C. Miesfeld, City Attorney
Dated:
Community HousingWorks
By:
Susan M. Reynolds, President & CEO
Attachments:
1. March 24, 2010 Community HousingWorks Management and Implementation of a
Neighborhood Stabilization Program Agreement
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6-105