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HomeMy WebLinkAbout2011/07/12 Item 11CITY COUNCIL AGENDA STATEMENT ~~ .~ ~~Vi _. 1 '=~`CHUhAF VISTA JULY 12, 2011, Item ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (I) APPROVING AN AMENDMENT TO THE FISCAL YEAR 2011/2012 HUD ANNUAL ACTION PLAN TO RE-ALLOCATE $205,379 OF HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS TO AN ELIGIBLE PROJECT; (2) AUTHORIZING THE CITY MANAGER TO ALLOCATE $205,379 IN HOME INVESTMENT PARTNERSHIP FUNDS FOR USES PREVIOUSLY APPROVED BY CITY COUNCIL AND; (3) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND COMMUNITY HOUSINGWORKS FOR THE FIRST TIME HOMEBUYER ASSISTANCE PROGRAM SUBMITTED BY: ASSISTANT CITY MANAGERv'V/ DIRECTOR OF DEVELOPMENT SERVICES REVIEWED BY: CITY MANAGER /~ S~ (J 4/STHS VOTE: YES ~ NO ^X SUMMARY At this time the City needs to allocate HOME Investment Partnership Program (HOME) funds to first time home buyer activities as well as amend the relevant contract with Community HousingVJorks, clarifying the programmatic use and level of HOME funds for homebuyer assistance activities. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed action for compliance with the National Environmental Protection Act (NEPA) due to the use of Federal funds and has determined that pursuant to Section 58.30 (b), Subpart D, Title 24 of the Code Federal Regulations, further review and environmental determination as appropriate, will be required for each project as it is identified. Thus, no further NEPA environmental review or documentation is necessary at this frme. RECOMMENDATION Council adopt the resolution. 11-1 JULY 12, 2011, Item Page2of2 BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION City staff is recommending additional Council actions to ensure that the City's First Time Homebuyer Program has enough funding to carry the program through the 2011-2012 fiscal yeaz. Staff is also bringing forward an amendment (Attachment A) to Community Housing Works (CHW) first time homebuyer program agreement to increase the amount of HOME funds available ($205,379), changes in the use of HOME funds for eligible properties, and to update the expenditure deadlines listed in the Agreement with CHW. HOME Investment Partnership Program (HOME) funds After yeaz-end close out, the City has $205,379 of unencumbered HOME funds to reallocate to eligible projects. City staff is recommending an additional $205,379 in HOME funds be allocated to the First Time Homebuyer program for fiscal yeaz 2011- 2012 to be used city wide. This re-allocation will satisfy the Department of Housing and Urban Development's requirement to commit $89,845 in HOME funds to an eligible project by July 31, 2011. This allocation will allow low income first time homebuyers to purchase properties throughout the City. In the most recent contract with CHW, HOME funds were limited in providing homebuyer assistance know as "gap financing" for eligible bank owned properties within eligible census tracts. This programmatic change through this allocation of HOME funds will allow the City's low-income First Time Homebuyers to purchase properties in all azeas of the City. DECISION MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500 foot rule found in California Code of Regulations section 18704.2(a)(1) is not applicable to this decision. CURRENT FISCAL IMPACT There is no current fiscal impact as HOME program is revenue offset by the grant funds. The use of the grant funds was already approved by City Council. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as the program is revenue offset by the grant funds. Prepared by: Jose Dorado, Project Coordinator 77, Development Services Department, Housing Division ATTACHMENT Attachment 1: Fourth Amendment to Agreement with Community HousingWorks 11-2 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~~ Glen R. Googins City Attorney Dated: ~ FOURTH AMENDMENT TO THE AGREEMENT BETWEEN COMMUNITY HOUSING WORKS FOR FIRST TIME HOMEBUYER DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM 11-3 FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DOWN PAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM RECITALS A. The City of Chula Vista ("City") and Community HousingWorks ("Consultant") (collectively, the "Parties") entered into an initial agreement, dated August 23, 2007, a First Amendment on June 19, 2008, Second Amendment on Mazch 17, 2009, and a Third Amendment on November 17, 2010, for Management of a First Time Homebuyer Downpayment and Closing Cost Assistance Program (collectively and hereinafter the ``Agreement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Investment Partnership Program funds loan (HOME) program and Neighborhood Stabilization Program (NSP) funds in accordance with HOME and NSP requirements including, but not limited to, underwriting loans for first-time homebuyers, servicing the loans, and providing monitoring and reporting services. C. The City amended its 2011-2012 Annual Action Plan to allocate and appropriate $205,379 of unencumbered HOME funds for a City of Chula Vista First Time Homebuyer Program (FTHB). HUD approved the City's Action Plan amendment. D. Given the related nature of the Third Amendment, there is a need to make amendments to CHW agreement to ensure clazity to the use of HOME funds and to update the terms and/or expenditure requirements. This Fourth Amendment is intended to make changes to the Agreement. E. The City wishes to make programmatic changes to the HOME funded First Time Homebuyer Program Scope of Work under the Agreement and extend the Agreement term through September 30, 2012. F. The Catalog of Federal Domestic Assistance number for HOME funding is 14.239 AGREEMENT The Parties agree as follows: 1. This Fourth Amendment is contingent on the City appropriating the necessary iunds to continue the administration of the FTHB program using HOME funds 1 11-4 2. This Fourth Amendment shall be effective on the later of the following dates: (i) execution of this Fourth Amendment by the City; or (ii) satisfaction of the contingencies set forth in paragraph 1, above. 3. The Agreement shall be amended as follows: a. The Third Amendment dated November 17, 2009 amended the initial Agreement dated March 23, 2007 by adding terms ("Terms") to the last pazagraph of the initial Agreement, Exhibit A, Paragraph 8, "Scope of Work and Schedule, A. Detailed Scope of Work." The aforementioned Terms aze hereby modified as follows: i. The third pazagraph is amended to now read as follows: "Consultant understands that an additional $205,379 in HOME funds aze available for assistance of up to $70,000 for each low- income homebuyer purchasing a REO foreclosed property using Home funds or up to $40,000 for purchasing anon-REO property. This allocation is in addition to the previous HOME fund allocations of $452,936 to assist low-income first time homebuyers." ii. The fifth pazagraph is amended to now read as follows: "Consultant shall commit and expend the additional allocation of HOME funds of $205,379, and expend the available balance of the $452,936 allocation in accordance with the Deliverables section of this agreement, unless mutually extended by both parties." b. The Third Amendment dated November 17, 2009 further amended the initial Agreement dated Mazch 23, 2007, the First Amendment and the Second Amendment dated June 28, 2008, and March 17, 2009, respectively by providing for specific deliverables ("Deliverables 1 through 3") in Exhibit A, Pazagraph 8, "Scope of Work and Schedule, C. Dates of Time Limits for Delivery of Deliverables." The aforementioned Deliverables 1 through 3 aze hereby modified to now read as follows: Deliverable No. 1: Consultant shall make reasonable efforts to close seven (7) First Time Homebuyer loans using HOME funds by June 30, 2012. Deliverable No. 2: Consultant shall commit and expend all remaining HOME funds by September 30, 2012." 2 1 1-5 Deliverable No. 3: Consultant shall work with the City to ensure that the HOME funds are expended timely as to not cause the City to have an expenditure deficiency with the Department of Housing and Urban Development. 4. Prior versions of "Exhibit B" are hereby replaced by the `'Amended Exhibit B," attached to this Fourth 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 Fourth Amendment and prior terms, the terms in this Fourth Amendment shall control. [Next Page is Signature Page.] 113 6 SIGNATURE PAGE To FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNPAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM 1N WITNESS WHEREOF, City and Consultant have executed this Fourth Amendment to the Agi~eement indicating that they have read and understood the Fotu~th Amendment and indicate their full and complete consent to its terms: Dated: , 2011 City of Chula Vista by: James D. Sandoval, City Manager Attest: Donna Norris; City Cleric Approved as to form: Glen R. Googins, City Attorney Community I-IousingWorlcs sy: ,l/JL~~ Su an .Reynolds, Pre: Attachments: 1. Exhibit A: Aa Bement between the City of Chula Vista and Community HousingWorks dated August 23, 2007, and First Amendment, Second Amendment, and Third Amendment dated June 17, 2008, March 17, 2009, and November l7, 2010, respectively 2. Exhibit B: HOME Im~estment Partnership Funds Source of Funds and general Homebuyer Assistance Requirements 4 11-7 Exhibit A AGREEMENT BETWEEN CITY OF CHULA VISTA AND COMMUNITY NOUSINGWORKS FOR MANAGEMENT OF A FIRST TIME HOMEBUYER DOWNPAYMENT AND CLOSING COST ASSISTANCE PROGRAM This agreement ("Agreement"), dated ~ ~~ dct~ for 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 facts: Recitals WHEREAS, the City is seeking professional consultant services to assist the City in managing a first time homebuyer downpayment and closing cost assistance program program; and WHEREAS, Community HousingWorks, was 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.) ii-a 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, Pazagraph 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 aze 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 Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services herein set forth, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Ser~zces"), and upon doing so in writing, if they aze 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 10(C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 2 11-9 E. Standard of Care Consultant, in performing any Services under this agreement, whether Defined Services or Additional Services, shall perform in a manner consistent with that level of 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 against claims for injuries to persons or damages to property that may arise from or in connection with the Performance of the work under the contract and the results of that work by the Consultant, his agents, representatives, employees or subcontractors and provide documentation of same prior to commencement of work. The insurance must be maintained for the duration of the contract. Minimum Scope of Insurance Coverage must be at least as broad as: (1) Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001). (2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). (3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. (4) Professional Liability or Errors 8s Omissions Liability insurance appropriate to the Consultant's profession. Architects' and Engineers' coverage is to be endorsed to include contractual liability. Minimum Limits of Insurance Contractor must maintain limits no less than: 1 000 000 er occurrence for bodily injury, personal 1. General Liability: $ P (Including operations, injury and property damage. If Commercial General products and Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply completed operations, as separately to this project/location or the general applicable) aggregate limit must be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and 3 11-10 property damage. 3. Workers' Compensation Employer's Liability: 4. Professional Liability or Errors 8s 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 Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declazed to and approved by the City. At the option of the City, either the insurer will reduce or eliminate such deductibles or self-insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Consultant will provide a financial guazantee 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 aze 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 sepazate 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. 4 11-11 (4) Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code. (5) Consultant's insurer will provide a Waiver of Subrogation in favor of the City for each required policy providing coverage during the life of this contract. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: (1j The "Retro Date° must be shown, and must be before the date of the 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) yeazs after completion of contract work. (4) A copy of the claims reporting requirements must be submitted to the City for review. Acceptability of Insurers Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ("LESLI") with a current A.M. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements aze to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. Subcontractors 5 11-12 Consultants must include all subconsultants as insureds under its policies or furnish separate certificates and endorsements far each subconsultant. All coverage for subconsultants aze subject to all of the requirements included in these specifications. G. Security for Performance {1) Performance Bond In the event that Exhibit A, at Pazagraph 18, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the pazenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which 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.fms.treas.gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Performance Bond", in said Exhibit A, Paragraph 18. {2) Letter of Credit 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 pazenthetical space immediately preceding the subpazagraph entitled "Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable by the City at their unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit", in said Exhibit A, Pazagraph 18. (3) Other Security In the event that Exhibit A, at Pazagraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Securi~"), then Consultant 11-13 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 Lcense from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. 2. Duties of the City A. Consultation and Cooperation City shall regularly consult the Consultant progress of the Defined Services and Schedule direction and guidance to achieve the objectives permit access to its office facilities, files and rec. term of the agreement. In addition thereto, City data, items and materials set forth on Exhibit A, understanding that delay i_n the provision of the: after authorization to proceed, shall constitute a Consultant's performance of this agreement. for the purpose of reviewing the therein contained, and to provide of this agreement. The City shall rrds by Consultant throughout the agrees to provide the information, Paragraph 9, and with the further e materials beyond thirty (30) days basis for the justifiable delay in the B. Compensation Upon receipt of a properly prepazed billing from Consultant submitted to the City periodically as indicated in Exhibit A, Pazagraph 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, Pazagraph 10; adjacent to the governing compensation relationship indicated by a "checkmazk" next to the appropriate arrangement, subject to the requirements for retention set forth in Pazagraph 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 malting 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 7 11-14 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 Defir_ed Services nail For eacheconsecutivecalendare day this Agreement shall result in the following p ty= 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 If Consultant is designated on Exhibit A, Paragraph 14, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the. City Clerk on the required Statement of Economic Interests in such reporting categories as aze specified in Pazagraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. B. Decline to Participate Regardless of whether Consultant is designate attem tt to use Consultant s position not make, or participate in making or in any y P knowlConsultant hasaefinancialsmterest thcer than uthencompensation promised by this Agreement. 11-15 C. Search to Determine Economic Interests Regazdless of whether Consultant is designated ntl an o ducted ea search and warrants and represents that Consultant has dilig Y inventory' of Consultant's economic interests, as the term iandshas determinadhthat promulgated by the Fair Political Practices Commission, 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 willmn Rta ;4llc~ ~v°ould constitutes an economic interest during the term of this Agr 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 os noo ~e t~ Politi ~ ~a~r es Act, and result in a conflict of interest for the pure 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 o any property which may be the subject matter of the Defined Seoiees, wluc ~Ya be the within 2 radial miles from the exterior b Pe hibited Interest")Pother than as listed in subject matter of the Defined Services, (" Exhibit A, Paragraph 14. Consultant further warrants atui epor otherhrewazdroellgain has rbe npm de to remuneration, consideration, gr tY Consultant or Consultant Associates in connection with C suchtaromise th~m Y be this Agreement. Consultant promiement,aor for tw~ e months th reafter. made during the Term of this Agr Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement, or for twelve months after the expiration of this Agreement, except with the wntten permission of City. 9 ~~-16 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 written 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 expense (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, sub esnonsible in other persons, agencies or firms for whom Consultant is legally P connection with the execution of the work covered by this Agreemwen~ollt elPmitanons, those claims, damages, liability, costs and expenses (including attorneys fees) arising from the sole negligencea os~ l~owil]fulo~e t d with, causedlby its officers, employees. Also covered is liabili assive ne li ent acts or omissions of the or claimed to be caused by the active or p g g 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) exts pofficersoor claims arising from the negligence or willful misconduct of City, 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 judgment or not. Consultant's obligations under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. For those professionals who are required to 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 S ~C snse~ ~edru~volving this employees, agents, and offire~ofansonal Services covered under Section 7.2, the project, except liability rotect, and hold harmless the City, its Consultant agrees to defend, indemnify, p 10 11-17 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 ache Co sultant's duty Consultant, its employees, agents or officers, or any third P~3'~ claims or liabilities to indemnify, protect and hold harmless shall not include any arising from the sole negligence or sole willful ~salters,ctaffectse orl modifiesen~e officers or employees. This section in no way Consultant's obligation and duties under Section Exhibit A to this Agreement. (2) Indemnification for Professional Services. As to the Consultant's professional obdefend andrhold harmless the Citytits Project, the Consultant agrees to indemnify, and all liability, claims, costs, agents, officers and employees from and against any 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 andoes agents in the performance of services under this agreement, but this ind tmm o e not apply liability for damages for death or bodily injury to persons, injury p P rty~ 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 ff Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5J days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of aama es Termination, not to exceed the amounts payable hereunder, and less any 6 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 e~~an would have resulteddif the1reA~remo suclr resulted in expense to City gr for any additional negligence, errors, omissions, Consult h Luau ~[~dedsto Clmit City's rights under expenses incurred by the City. Nothing other provisions of this agreement. 11 11-18 10,Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to 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 finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this 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 aze personal to the City, and Consultant shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or notation), without prior written consent of City. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 16 to the subconsultants identified thereat as "Permitted Subconsultants'". 12.Ownership, Publication, Reproduction and Use of Material AIl 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 eement shall be ubje t~o private s eSCOPYn h a ° whole or in part under this Agr other country without the patent rights by Consultant in the i3nited States or in any express written consent of City. City shall h rovisions o ctthd aPublic Reco dsbAct , disclose (except as may be limited by the p an such distribute, and otherwise use, copyright or patent, in whole or in part, Y reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13.Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains o the Consultant's agents, accept Consultant's work products. Consultan uanod anyunder this Agreement, an employees or representatives are, for all p rp independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any 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 11-19 income taxi, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 14.Administrative Claims Requirements and Procedures No suit or arbitration shall be brought arising out of and famed withtth eCnty and City unless a claim has first been presented in writing acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which aze 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 weho isnawazded substantially the refief soug ?g paz~ shall be deemed to be the party 16. Statement of Costs In the event that Consultant prepares a report ortde Dmfin d Services7pConsultant prepazation of a report or document in performing numbersuand ~ost in dollar amounts of all on tracts and sub ontracts relating to the preparation of the report or document. 17. Miscellaneous A. Consultant not authorized to Represent Gity 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 15 is marked, the Consultant and/or their principals is/aze licensed with the State of California or some other state as a licensed Consultant, norktheir principals are liO nsed rreal estate brokers or salespersonsneither C. Notices 13 11-20 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 pers store SeI a aid deposited in the United States mail, addressed to such party, p g P P registered or certified, with return receipt requested, at the addresses identified herein as the places of business for each of the designated parties. p. 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 'T'his Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located 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 performance hereunder, shall be the City of Chula Vista. (End of page. Next page is signature page.) 14 11-21 AGREEMENT BETWEEN CITY OF CHULA V15TA AND COMMUNITY HOUSINGWORKS FOR . MANAG AND GOOSING COST ASSIOSTIANCE PROGRAMAYMENT IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: $,/ a3 p' Exhibit List to Agreement (X) Exhibit A. City of Chula Vista F By: ~~ a ~ °--- D°aGid R. Garcia, City Manager 15 11-22 Atte J~'~ Susan Bid ge~ , itY Jerk Exhibit A To AGREEMENT BETWEEN CITY OF GHULA 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] ("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 i`£ a [insert business 11-23 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 shalt further provide one-on-one in person client intake and applications for the Chula Vista down-payment assistance applicants. Consultant shalt 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 11-24 annual tax statements for interest paid, investor reporting and recording via Loan Base loan servicing software platform (exports to Excel as well). Consultant shall further provide annual monitoring and reporting for owner occupancy, as well as all pay-offs, subordinations, safe-deposit original documents and annual public/investor audits. Consultant shall service all other loans that the City forwards to the Consultant for an additional fee. Consultant shall provide quarterly reports on the outreach, education, and counseling services provided. B. Date 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 11-25 For performance of all of the Defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: Milestone or Event or Deliverable payable as follows: Amount or Percent of Fixed Fee () 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the 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 ident~ed 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 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 11-26 Setup fees 3. $ 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 spent 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 Arrangement At such time as Consultant shad have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be 20 11-27 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 ScheduleG Cateoory of Em~lovee 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 alI costs. Cost or Rote () Reports, not to exceed $ ~ $ () Copies, not to exceed $ $ () Travel, not to exceed $ ~ $ () Printing, not to exceed $ $ () Postage, not to exceed $ $ () Delivery, not to exceed $ $ This section should be completed in all cases-if the main compensation scheme is a "time ° . and materials arrangement" or for the purposes of requiring Additional Services. 21 11-28 () 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 ofi Lending 13. Liquidated Damages Rate: $ per day. Other: $ $ 14. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer.' ( )FPPC Filer ( )Category No. 1. Investments and sources of income. ( )Category No. 2. Interests in real property. ( )Category No. 3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( )Category No. 4. Investments in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. '. If Consultant, in the performance of its services under this agreement: (1) conducts research and arrives at conclusions with respect to its rendition of information, advice, recommendations or counsel independent of the control and direction of the City or of any City official, other than normal contract monitoring; and (2) possesses no authority with respect to any City decision beyond the rendition of information, advice, recommendations or counsel, Consultant should not be designated as an FPPC Filer_ 22 11-29 ( }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 far the following period of time: (X) Monthly ( )Quarterly ( )Other: _ B. Day of the Period for submission of Consultant's Billing: 23 11-30 ()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 11-31 FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNTTY HOUSING WORKS For Management of a First Time Homebuyer Downpayment and Closing Costs Assistance Program 12ECITALS A. The City of Chula Vista ("City") and Community HousingWorks ('`Consultant") (collectively, the "Parties") entered into to an agreement, dated. August 23, 2007, for Management of a First Time Homebuyer Dowmpayment 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. Consultant offers an innovative pilot program that would provide an incentive for low-income families wishing to enter the homeownership mazket to purchase vacant foreclosed property. D. The City wishes to add this program to its scope of work under the Agreement The City and Consultant agree as follows: AGREEEMENT 1. Exhibit A, Pazagraph 7, General Duties. at the end of the pazagraph, add the following: "Consultant shall provide management for the Pilot Homeowner Prograni 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 of Work, after the last pazagraph, add the following: "Consultant shall administer the Pilot Homeowner Program for REO foreclosed properties using the similar guidelines as the City's Dow~npayment and Closing Cost Assistance Program. 1- 11-32 Consultant shall identify fast 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 HOME funds are available for assistance of up to $30,000 for each homebuyer purchasing an )3E0 foreclosed property. This allocation is in addition to the original program allocation of $500,000." 3. Exhibit A, Paragraph 8. Scope of W"ork and Schedule, B. Date for Commencement of Consultant Services, add the following: "The Effective Date of this First Amendment is June 17, 2008." 4. Exhibit A, Pazagraph 8. Scope of Work and Schedule, D. Date for completion of all Consultant services, delete "July 31, 2008" and replace with "June 30, 2009". Delete "This agreement may also be extended by mutual agreement for up to five years, in one- 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 fallowing: REO Program Set-Up $1,500. All other terms of the Agreement shall remain in full force and effect. [Next Page is Signature Page.] 11-33 SIGNATURE PAGE: FIRST AMENDMENTTO THE AGILEEMENT BETWEEN THE CTTY-OF CIIULA VISTA AND. COMMUNITY HOUSING WORKS ...... ........ . For Management of a Firsf Time Homebuyer IJownpaument and Closing Casts Assistance Program IN WITNESS VZI-IEREOF, City and Consultant have executed this First Amendment to the Agreement'ndicating that they have read and nndei•stoad the First Amendment and indicate their full and complete consenTto its termsr Dated: ~f~~ , 2~Q$ City of Chula Vista by: n Dav Gar a, Gty Ivlanaaer Attest .Donna .ores, Acting Ci .Clerk Ap~~pr~oved alto foim: ,_t~ ./ G~~ V'/l , Bart C. Miesfeld, Interim City Att ' t=5' Dated: ~i •'f'~j Exhibit List to First Amendment to Agreement: (X) Agreement between the City of Chula Vista and Community HousingWorks dated August 23, 2007 P1ACSmey\EL15A?P.GREEMEN25\Commnnity HausingVdarks First Amendmen[FIN.4L&I7-OS,dnc 11-34 SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA ~TSTA AND COMiVIUNtTY 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 Tune 19, 2008 for Management of a First Time Homebuyer Downpayment and Closing Cost Assistance Pro~nam (the "Agreement"). B. Pursuant to that Agreement, Consultant agreed to administer the City's HOME Investment Partnership Program funds loaa program in accordance with. HOME requirements including, but not limited to, underwriting loans for fsst-time homebuyers, servicing the loans, and providing monitoring and reporting services. C. The City amended its 2008-2009 Annual Action Plan to receive CDBG Neighborhood Stabilization Program (NSP) funds from the Department of Housing and Urban Development ("HUD") and desires to use a portion of the NSP funds for a Neighborhood Stabilization First Time Homebuyer (NS FTHB) Program. D. The City's Action Plan amendment has been approved by HUD. In anticipation of receiving the grant agreement from HUD, the City wishes to add administration of the NS FTHB Program to the scope of work under the Agreement. . T1te Parties agree as follows: AGREEMENT 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 set forth in paragraph 1., above. 3. The Agreement shalt be amended as follows: 11-35 a. Exhibit A, Paragraph 7, "General Duties," at the end of the paragraph, add the following: "Consultant shall provide management for the new Neighborhood Stabilization First Time Homebuyer (NS FTHB) Program for Real Estate Owned (REO) foreclosed properties in accordance with City and Deparhnent 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 FTHB Program for REO foreclosed properties using the City's NS First Time Homebuyer Program Guidelines, in compliance with HUD regulations of the Neighborhood Stabilization (NSP) funds and in accordance with the City's NSP requirements described in the 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 $1,541,064 in NSP funds and $452,936 in HOME funds are available for assistance of up to $40,000 for each moderate-income homebuyer purchasing an REO foreclosed property using NSP funds, and up to $70,000 for each low-income homebuyer purchasing an REO foreclosed property using HOME funds or NSP funds. This allocation is in addition to the previous HOME fund allocations of $500,000 azid $300,000 to assist low-income first time homebuyers. Consultant understands City's NSP and HOME funding requirements for First Time Homebuyer activities. City further describes the use of NSP and HOME funds, Program Requirements, and Duration of Agreement in Exhibit B, attached. Consultant shall identify and commit NSP funds for at ]east 40 Fh'st Time homebuyers. Consultant shall close 20 of those loans and/or expend 50% of the NSP funds by December 31, 2009; Consultant shall commit the remaining funds by August 31, 2010. Consultant shall conduct initial First Time Homebuyer Education Classes (Spanish and English), Realtor and Lender Training Classes as needed to meet the deliverable requirements in Paragraph 8. C. below. 2 11-36 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 Homebuyer Program guidelines, City's NSP Plan submitted to the Department of Housing and Urban Development, Neighborhood Stabilization Program regulations found in Title III of Division B of the Housing and Economic Recovery Act of 2008, and 24 CFR Part 570 Community Development Block 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 Deliverables," 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 I, Paragraph 8, "Scope of Work and Schedule, D. Date for Completion of all Consultant Services," replace with the following: "August 31, 2010 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 11-37 Agent is authorized to negotiate and enter into such extensions to this Agreement on behalf of the City". e. Exhibit A, Para,aph 10. "Compensation, B. Phased Fixed Fee Arrangement3.," add the following: "a REO Program Set-Up and Closing Fee: $1,500 per Loan Closing. b. NSP Program Set-Up and Closing Fee: $1,500 per Loan Closing. c. Annual Fee of $9,000 to administer all of the City's Fust Time Homebuyer Programs including HOME and NSP, beginning with the I sc Amendment through August 31, 2010". f. Delete paragraph 5., of the First Amendment. A11 other terms of the Agreement shall remain in full force and effect. [Next Page is Signature Page.] 4 11-38 SIC.NATIi22E PAGE SECO'VD A119E1t'DMENT TO THE AGREEMENT BETWEEN TAE CITY OF GHULA VISTA A1VD COMMITNITY HOUSING WORKS For Management of a First Time Homebuyer Doa~npa}nn~t and Closing Costs Assistance Proms am 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 fixll and complete consent to its terms: Dated: J`"~~ f 7 , ?Od9 Attes . Donna Norris, City Clerk City of CImIa Vista ~~ ff/~J,r'}~'! .ia es .Sandoval, City Manager Community HousingWorks A VW president & CEO Dated:~~~`a~~Q°~~ . Exhibit List to Second Amendment to Agreement: Exlvbit :4; Agreement between the Ctry of Chula Vista and Conununity HousingV/orl~s dated August 23, 2007, and Amendment dated 3une 17, 204&. Exhibit B: Neighborhood StabiIizat~on Funds and HOIVIE Investment Partnership Funds Source of Funds Stde by Side Comparison ofHomeb¢yer Assistance Requirements 5 11-39 EXHIBIT B (Continued) Must commit and Must commit and expend NPS funds ;expend NSP funds Must commit HOME ~ EXPENDITURE within 18 months i within 18 months funds within 12 REQU`IREMEN"TS (i.e. have (i.e. have months homebuyers close i homebuyers close escrow escrow) I Subject to City s Subject to Cit 's Subject to City's ASSISTAI~TCE CAPS NSP maximum 'NSP maximum HOME program (CALCULATE i subsidy of up to subsidy of up to limit of up to «GAp NCING" $70.000 (of which $40 000 (of which ~ be used $24 999 ma $70,000 for a REO } FINA . y 999 may be used i $24 and $40,000 for any NEEDED TO UII2E/REHABI AC , , for rehabilitation for rehabilitation assistance) other property. Q LITATE . i Assistance). cannot Assistance cannot Assistance cannot ~ PROPERTY exceed 40% of ~ exceed 40% of exceed 40 /o of purchase price urchase rice purchase price DOWNPAY"MENT 3% of buyers funds ' 3% ofbuyers funds 3% buyers funds REQUIRED URA VOLUNTARY ACQUISTIONS Subject to URA4 !Subject to URA Subject to URA ONLY PROGRAM Retained by the City i Retained by the City Retained by the City s INCOME of Chula Vistas ', 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, correlated eligible ', correlated eligible Office of REGULATIONS activities for the activities for-the Management and CDBG entitlement !CDBG entitlement Budget (OMB regulations, as f regulations, as Circulazs) b ° appropriate. ;appropriate. 2008 Action Plan ' 2008 Action Pian 2008 Action Plan Amendment Amendment address the use of CONSOLIDATED addressed the use of addressed the use of HOME funds for the PLAN these FY 2008 NSP ~ these FY 2008 NSP Production of funds I funds Affordable Housing .First Time Homebuyer is defined as not havin_s owned real property within the last three years. Home Program Regulations se[ these maximum value and are updated periodically. 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 2005 for direct homeownership assistance under 570201(n) allows NSP (CDBG) funding to: Provide up to 50°/ of required downpayment; pay reasonable closing costs, provide principal elite-down assistance; subsidize interest rates; finance acquisition; and assist homebuyers with private mortgage insurance. Exhibit B Page &-2 of 3 Community Housing Works Second Contract Amendment 11-40 EXHIBIT B NEIGHBORHOOD STABILIZATION PROGRAM (NSP) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) SOURCE OF FUNDS SIDE-BY-SIDE COMPARISON OF HOMEBUYER ASSISTANCE PROGRAM REQUIREMENTS CITY HOME CITY NEIGHBORHOOD PROGRAM STABILIZATION PROGRAM 81-120% of the Area '; INCOME LIMITS Median Income ', Below 80% of the Below 80% of the (USING STATE OF (using State of ,Area Median Income Area Median Income CALIFORNIA) California income limits) ELIGIBLE Must be "first-time" I Must be "first-time" Must be "first-time" HOMEBUYERS homebuyer ~i, homebuyer homebuyer Must attend a HUD ;Must attend a HUD Must attend a HUD HOMEBUYER approved 8 hour I approved 8 hour approved 8 hour EDUCATION homebuyer ~ homebuyer homebuyer education course i education course education course Vacant Foreclosed ', Vacant Foreclosed Vacant Property ELIGIBLE Property (townhome, ;Property (towmhome, (townhome, PROPERTY condominium, or ~, condominium; single condominium, single single famil ~ home ~ family home famil home). Shared Equity fora ', Shared Equity fora Shazed Equity for a AFFORDABILITY min;mum of I S yeazs ''; minimum of I S years minimum of 15 years (must be repaid} + (must be repaid) (must be repaid) NSP eligible target I NSP eligible target Cit ide }"'`' TARGET AREAS areas areas Subject to HOME Subject to 95% of 'Subject to 95% of pro~am 45% of PURCHASE PRTCE Median value as Median value as : Median value as determined by HUDZ ', determined by HUD determined b HUDz PURCHASE In accordance with 1 In accordance with ' ' Not subject to DLSCOUNT s approved City City's approved discount methodology :methodology Must meet URA I Must meet URA Appraisal obtained ~ APPRAISAL requirements at 49 i requirements at 49 by Lender CFR Part 24.103 'CFR Part 24.103 ~ Direct I Direct Downpayment Assistance (no ELIGIBLE USE(S) homeownership 'homeownership 3 rehabilitation) OF FUNDS 3 assistance ~ assistance 92.254 Exhibit B Page B-1 of 3 Community HousinaWorks Szcond Contract Amendment 11-41 E~IIBIT B (Continued} URA is defined as Uniform RelocationAct of 1970, as amended. s Program Income is defined as any recapture of the initial City Investment plus shared eouih. and~or interest due per the promissory note and Deed of Trust. 6NSP funds were allocated per the Housing and Economic Recovery Act 2008 Neighborhood Stabilization Program Regulations 73 FR 58330. Correlated eligble activities for the CDBG entitlement regulations aze found at 24 CFR Part 570 & subparts A, C, D, J, K, and O, 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 A{]ocations, Application Procedures, Regulatory R'aivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing and Economic Recover}- Act, 2008: Notice City's First Time Homebuyer Program Manual for NSP and HOME describes the program requirements. Exhibit B Page B-3 of 3 Community HousingWorks Second Contract Amendment 11-42 THIRD AMENDMENT TO THE AGREEMENT BETWEEN THE CTTY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUYER DO WN 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 1eighborhood 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 of Chula Vista also approved a Developer Agreement on Mazch 23, 2010 between the City of Chula Vista and Community HousingV/orks to acquire and rehabilitate foreclosed properties for the purposes of reselling them to eligible low- and moderate- income households within NSP eligible tazget azeas 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 Mazch 24, 2010 (hereinafter "Mazch 24, 2010 Agreement"). E. Given the rela#ed 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 August 31, 2011. 1 11-43 AGREEMENT The Parties agree as follows: This Third Amendment is contingent on the City appropriating the necessary funds to continue the administration of the FTHB program using HOME and N SP funds. 2. This Third Amendment shall be effecflve on the later of the following dates: (i} execution of this Third Amendment by the City; or (ii) satisfaction of the contingencies set forth in paragraph 1, above. 3. The Agreement shall be amended as follows: a. The Second Amendment dated March 17, 2009 amended the initial Agreement dated March 23, 2007 by adding terms ("Terms") to the Iast pazagraph of the initial Agreement, Exhibit A, Paragraph 8, "Scope of Work and Schedule, A. Detailed Scope of Work." The aforementioned Terms aze hereby modified as follows: i. The third pazagraph is amended to now read as follows: "Consultant understands that $452,936 in HOME funds aze available for assistance of up to $70,000 for each low-income homebuyer purchasing a REO foreclosed property using Home funds. This allocation is in addition to the previous HOME fund allocations of $500,000 and $300,000 (which have already been committed) to assist low-income first time homebuyers." ii. The fifth pazagraph is amended to now read as follows: "Consultant shall commit and expend the additional allocation of $452,936 in HOME funds as stated in Schedule, C. Dates of Time Limits for Delivery of Deliverables, unless mutually extended by both parties." iii. The following paragraph shall be added to the end of the Terms and shall read as follows: "Consultant understands earmarks for the expenditure and commitment of NSP funds are now covered under a separate Management and Implementaflon Agreement for a Neighborhood Stabilization Program dated March 24, 2010. As such, $1,547,064 in NSP funds aze no longer available in this Agreement." b. The Second Amendment dated March 17, 2009 further amended the initial Agreement dated Mazch 23, 2007 by providing for specific deliverables ("Deliverables 1 through 3") in Exhibit A, Paragraph 8, "Scope of Work 2 11-44 and Schedule, C. Dates of Time Limits for Delivery of Deliverables." 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 Mazch 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 August 31, 2011: ' 4. Prior versions of "Exhibit B" aze 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.] 3 11-45 SIGNATURE PAGE To TI IIRD AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND COMMUNITY HOUSING WORKS For MANAGEMENT OF A FIRST TIME HOMEBUI'ER DO WNPAYMENT AND CLOSING COSTS ASSISTANCE PROGRAM IN WITNESS WHEREOF, City and Consultant have executed this Third Amendment to the Agreement indicating that they have read and understood the Third Amendment and indicate their full and complete consent to its terms: Dated: f~ ~ , 2010 City of Chula V ista i / / City Manager Attest ~-{.tCl ~ Donna Norris, City Clerc Approved as to form: Bart C. Miesfeld, City Attorney Dated:©/. I ~~O/ C) Community HousingWorks B S a .Reynolds, Pres nt & 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 $," consisting of updated Neighborhood Stabilization Funds and HOME Investment Partnership Funds Source of Funds Side by Side Comparison of Homebuyer Assistance Requirements 11-46 AMENDED EXHIBIT B NEIGHBORHOOD STABILIZATION PROGRAM (NSP) AND HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) SOURCE OF FUNDS SIDE-BY-SIDE COMPARISON OF HOMEBUYER ASSISTANCE PROGRAM REQUIREMENTS CITY NEIGHBORHOOD CITY HOME STABILIZATION PROGRAM PROGRAM 81-120% ofthe Area INCOME LIMITS Median Income Below 80% of the Below 80% of the (USING STATE OF (using State of Area Median Income Area Median Income CALIFORNIA) California income limits) ELIGIBLE Must be "first-time" Must be "first-time" Must be "first-time" HOMEBUYERS homebuyer) homebuyer homebuyer Must attend a HUD Must attend a HUD Must attend a HUD HOMEBUYER approved 8 hour approved 8 hour approved 8 hour EDUCATION homebuyer homebuyer homebuyer education course education course education course Vacant Foreclosed Vacant Foreclosed Vacant Property ELIGIBLE Property (townhome, Property (townhome, (townhome, PROPERTY condominium, or condominium, single condominium, single sin le famil home famil home) famil home . Shared Equity fora Shared Equity fora 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 NSP eligible target NSP Target Areas areas areas j Subject to HOME Subject to 95% of > ect to 95% of Sub > program 95% of PURCHASE PRICE Median value as ~ Median value as Median value as determined by HUD i determined by HUD determined b 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 by Lender CFR Part 24.103 CFR Part 24.103 Acquisition/Rehabilit Acquisition/Rehabilit Direct homebuyer ation for resale by ation/Resale by City assistance including ELIGIBLE USE(S) CiTy approved NSP approved NSP rehabilitation OF FUNDS Developer or direct Developer or Direct homeownership/rehab homeownership/rehab assistance 3 3 assistance assistance Exhibit B Page B-1 of 3 Community Housing Works Third Contract Amendment 11-47 EXHIBIT B (Continued) Must commit and Must commit and expend NSP funds expend NSP funds within the terms within the terms Must commit and included in said included in said expend HOME funds EXPENDITURE Management and Management and within the term REQUIREMENTS Implementation ~ Implementation stated in this Agreement of a Agreement of a agreement Neighborhood Neighborhood Stabilization ~ Stabilization Pro ram I Pro am Subject to City's Subject to City's HOMEBUYER Subject to City's NSP maximum HOME program ASSISTANCE CAPS NSP maximum subsidy of up to limit of up to (CALCULATE subsidy of up to 000 (of which $70 $70,000 for a REO "GAP $40,000 (of which , 999 may be used $24 and $40,000 for a FINANCING") $24,999 may be used , for rehabilitation HOME eligible NEEDED TO for rehabilitation assistance). property (within ACQUIRE/REHABI Assistance). cannot Assistance cannot NSP target areas). LITATE exceed 40% of exceed 40% of Assistance cannot PROPERTY purchase price purchase price exceed 40% of urchase rice DOWNPAYMENT 3% of buyers funds 3% of buyers funds 3% buyers funds RE UH2ED URA VOLUNTARY ACQUISTIONS Subject to URA Subject to URA4 Subject to URA ONLY PROGRAM Retained by the City Retained by the City Retained by the City INCOME of Chula Vista 5 of Chula Vistas of Chula Vista 5 Housing and Housing and Economic Recovery Economic Recovery 24 CFR part 92 Act 2008 and Act 2008 and HOME regulations, correlated eligible correlated eligible Office of REGULATIONS activities for the activities for the Management and CDBG entitlement CDBG entitlement Budget (OMB regulations, as regulations, as Circulars) 6 amended. 6 amended. 2008 Action Plan 2008 Action Plan 2008 Action Plan Amendment Amendment address the use of CONSOLIDATED addressed the use of addressed the use of HOME funds for the PLAN these FY 2008 NSP these FY 2008 NSP Production of funds funds Affordable Housing .First Time Homebuyer is defined as not having owned real property within the last three years. z Home Program Regulations set these maximum value and aze updated periodically. httn'Owww hud Gov/offices/cod/affordablehousine/nroarams/home/limits/maxorice.cfin Exhibit B Page B-2 of 3 Community Housing Works Third Contract Amendment 11-48 EXHIBIT B (Continued) ;Direct Homeownership Assistance refers to the City's Shared Equity Loam Silent Soft Second Assistance program eligible under Financing Mechanism under the Housing Emergency Recovery Act (HERA) of 2008 for direct homeownership assistance under 570201(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, finance acquisition; and assist homebuyers with private mortgage insurance. a URA is defined as Uniform Relocation Act of 1970, as amended. s Program Income is defined as any recapture of the initial City Investment plus shared 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 O, as appropriate. NOTE: They City's Neighborhood Stabilization First-Time Homehuyer 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 Page B-3 of 3 Community Housing Works Third Contract Amendment 11-49 Exhibit B AMENDED EXHIBIT B HOME INVESTMENT PARTNERSHIPS PROGRAM (HOME) HOMEBUYER ASSISTANCE PROGRAM REQUIREMENTS CITY OF CHULA VISTA FIRST TIME HOMEBUYER PROGRAM USING HOME INVESTMENT PARTNERSHIP FUNDS INCOME LIMITS (USING STATE OF Below 80% of the Area Median Income CALIFORNIA) ELIGIBLE Must be "first-time" homebuyer HOMEBUYERS HOMEBUYER Must attend a HUD approved 8 hour homebuyer education EDUCATION course ELIGIBLE Vacant Property (townhome, condominium, single family PROPERTY home). No Mobilehomes AFFORDABILITY Shared Equity for a minimum of 15 years (must be repaid) TARGET AREAS City Wide Subject to HOME program 95% of Median value as PURCHASE PRICE = determined by HUD PURCHASE Consistent with City of Chula Vista Homebuyer Program DISCOUNT Guidelines APPRAISAL Appraisal obtained by Lender ELIGIBLE USE(S) s Direct homebuyer assistance (no rehabilitation assistance) OF FUNDS EXPENDITURE Must commit and expend HOME funds within the term REQUIREMENTS stated in this agreement Exhibit B Page B-1 of 3 Community HousingWorks Fourth Contract Amendment 11-50 EXHIBIT B (Continued) HOMEBUYER ASSISTANCE CAPS (CALCULATE Subject to City's HOME program limit of up to $70,000 for "GAP a REO and $40,000 for a HOME eligible property (City- FINANCING") Wide). NEEDED TO Assistance cannot exceed 40% of purchase price ACQUIRE/REHABI LITATE PROPERTY DOWNPAYMENT 3%buyers funds REQUIRED URA VOLUNTARY ACQUISTIONS a Subject to URA ONLY PROGRAM 5 Retained by the City of Chula Vista INCOME 24 CFR part 92 HOME regulations, Office of Management REGULATIONS and Budget (OMB Circulars) CONSOLIDATED 2011-2012 Action Plan address the use of HOME funds for PLAN the Production of Affordable Housing .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. http //www hud oov/offices/cod/affordablehousina/programs/home/limits/maxurice.cfm 3 Direct Homeownership Assistance refers to the City's Shared Equity Loan/ Silent Soft Second Assistance program a URA is defined as Uniform Relocation Act of 1970, as amended. s Program Income is defined as any recapture of the initial City Investment plus shared equity and/or interest due per the promissory note and Deed of Trust. NOTE: 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://hometa.info/index.cfm?do=viewabouthometa Exhibit B Page B-2 of 3 Community HousingWorks Fourth Contractl~rl~en~nlent EXHIBTT B (Continued) City's First Time Homebuyer Progam Manual for HOME describes the program requirements and may be more restrictive than the minimum HLJD requirements. Exhibit B Page B-3 of 3 Community HousingWorks Fourth Contract P~r~en~rPent RESOLUTION NO.2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROVING AN AMENDMENT TO THE FISCAL YEAR 2011/2012 HUD ANNUAL ACTION PLAN TO RE-ALLOCATE $205,379 OF HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS TO AN ELIGIBLE PROJECT; (2) AUTHORIZING THE CITY MANAGER TO ALLOCATE $205,379 IN HOME INVESTMENT PARTNERSHIP FUNDS FOR USES PREVIOUSLY APPROVED BY CITY COUNCIL AND; (3) AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A FOURTH AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND COMMUNITY HOUSINGWORKS FOR THE FIRST TIME HOMEBUYER ASSISTANCE PROGRAM WHEREAS, on August 23, 2007, the City entered into an Agreement (as previously amended) with Community HousingWorks for the management of a first time homebuyer down payment and closing cost assistance program (hereinafter Agreement); and WHEREAS, on November 25, 2008, Council approved amending the fiscal year 2008/2009 Annual Action Plan to allocate $452,936 of HOME Investment Partnership Funds for first time homebuyer activities; and WHEREAS, on March 3, 2009, Council approved a Second Amendment to Community HousingWorks First Time Homebuyer Agreement for underwriting services for a first time homebuyer assistance program to include the use of $452,936 in HOME Investment Partnership Funds subject to Council appropriation; and WHEREAS, on November 9, 2010, the City Council of the City of Chula Vista approved a Third Amendment to the Agreement between the City of Chula Vista and Community HousingWorks for underwriting services for homebuyers wishing to acquire and rehabilitate foreclosed properties using HOME Investment Partnership Funds, including an appropriation of the aforementioned $452,936 in HOME Investment Partnership Funds; and WHEREAS, the Catalog of Federal Domestic Assistance number for HOME funding is 14.239 and shall be communicated to all Contractors and included in all contracts and subcontracts related to the use of HOME funds; and WHEREAS, the City Council of the City of Chula Vista wishes to approve a Fourth 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 appropriating $205,379 in HOME Investment Partnership Funds for eligible properties Citywide. 11-53 Resolution No. 2011- Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby (1) amends the 2010/2011 Annual Action Plan and authorizes the submission of the Amendment to the United States Department of Housing and Urban Development; (2) authorizes a reallocation of $205,379 in HOME Investment Partnership Funds to an eligible project; and (3) authorizes the City Manager or his designee to execute a Fourth Amendment to the Agreement between the City of Chula Vista and Community HousingWorks for the First Time Homebuyer Program for underwriting services. Presented by: Gary Halbert, P.E. AICP Assistant City Manager/ Development Services Director ~~ 11-54