HomeMy WebLinkAbout0180.093I ,
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February 25, 1993
THE HONORABLE CITY COUNCIL
Palo Alto, California
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Approval of An Agrgement with communl~~_Housing, Inc.
to Carry Out Pre-Development Activities Funded by ___ the
community Development Block Grant (CDBG) Prog:[_!!~
the TNtton IV Senior Housing Pro;ect_
Mempers of the Council:
REPOP.T IN Bll.IEF'
Council action is requested to approve the attached agreement
with Community Housing, Inc. (CHI) for the
provision of $100,000 in COBG funds for pre-development expenses
associated with the new Lytton IV senior housing projec~ to be
constructed at 330 Everett in Palo Alto.
BACI(GROtlND
On May 26, 1992, Council adopted Resolution No. 7093 (Attachment
1) approving the use of commu~ity Development Block Grant (CDBG)
funds for fiscal year 1992/1993~ Item 16 of that Resolution
approved an allocation of $393,995 to a New Housing Development
fund. Appr-oximately $100.000 of those funds .... 'ere set aside for
senior hOllSi:1q.
On November 30, 1992, Council authori~ed the expenditure of
$100,000 from the fund to be used for pre-deveiopment costs
associated ~ith the Lytton IV senior housing project in
accordance ~ith all applicable federal requirements.
PROPOSED AGREEMENT
The agreement provides up'to a roay-imurn of $100,000 in CDBG funds
for architectural, engineering, and hO"..Jsing consultant expenses
related to ongoing project development. The agr~ement includes a
scope of Services and Proje"=t Budget {Exhibit A), Promissory Note
(Exhibit B}, Insurance Requirements (Exhibit C), and Federal
Assurances (Exhibit D).
CMR:180;93 2/25/93
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The City's CDBG contributions will be evidenced by a promissory
note. which "'"ill be recorded as a lien against the proposed
project at the close of the HUD Section 202 e3Cr'O ... ·• The $100,000
note may be forgiven following the cc~pletion of a five-year lien
period, p.I.-ovided thE:: project is used for the purpose of providing
affordable rental housing to income eligible clients. The
effective date of the lien period shall be the date ot the
commencement of rental activities at the proposed facility.
ENVIRONMENTAL REVIEW
For purposes or t.he California Environmental Qualit:t Act. (CEQA),
an environmental imt'act assessment was prepared and a negative
declar&ticn wa~ adopted at the time of the planned community zone
change. For purposes of the National Environmental Protection
Act (NEPA), the pre-development cost.:; covered by this agree:rr.ent
are exempt under 24 CPR 58.34 (6).
RECCMMEND.~TION
staff recommends that the city council appro .... e the agreement 'iJiith
community Housinq, Inc. and authorize the Mayor to execute the
appropriate documents and authorize the City Manager to
administer and execute the provisions of the agreement.
Respectfully submitted,
KENNETH R. SCHREIBER
Director of Planning and
Community Environm~nt
Attachments: 1)
2)
City council Resolution 7093
Agreement with CHI
cc: Community Housing, Inc.
CDBG Citiz:ens Committee.
CMR:180:93
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RESOLUTION NO. 7093
RESOUJ'l'ION OF THl! COUNCIL OF THE CI'l'~ OF PALO ALTO
APPROVI.NG THE USE OF COMMUNITY OE'VEUJPM£IIT BLOCK
GRANT FUNDS ?OR FISCAL YEAR 1992-1993
WHtPI~, on OCtober 21, 1991, the Palo Alto ~ity Council
adop-ted a five-year feceral Comprehensive Housing Affordability
Strategy; and
WHEREAS, the 1992-93 fed~ral Community Development Block
Gr&nt (-coac-J funds allocated to the City ot Palo Alto a.re
proposed to impl .... ent the following programs, and
WHEREAS, potential uses of COBG ~unda have baen evaluated
in light ot the need. of the community, as identified in the
Coaprchenaive Housi~g AZtordabillty strateqy, the recommendations
and c~_ent8 of the Citi~ens' Advisory Committe,a and oU .. er
interested citizensl and
WHtREAS, the Finance COlIIII.ittee and tl~e City Council have
held a4vertised public hearings on the proposed U •• ot the CDBG
funds for fiscal year 1992-93; and
HHEREAS, it 10 the int "r.t of this progr.... to give the
highe.t priority to activities which will benefit low and _cderate
income persons;
NOW" THEREFORE I the Council of the City ot Palo A1 to doea:
RESOLVE as follows,
SEctION 1. The use of CDBG funds for the 1992-93 fiscal
year-ia bereby approved and. authorized. for the followinq prcgrams:
~. catholic Charities of Santa Clara
county. Long Tera Care ombudsman
Prograa. Coaplaint investigation
and advocacy services to Palo AI to I s
elderly residents living in nursing
and residential ,care facilities.
Citywide. $
2. Innovative Rousing. Shared housing
proqram. Housing referral and counseling
for shared housing matches especially for
low income/previously homeless individuals
and families. Citywide.
3. Peninsula Area Information and Referral
Se.rvice. Rental tiousing information
regarding the rights and responsibilities
of both tenants and landlords~ Referral
to medi~tion services where appropriate.
citYliide.
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9,689
10,000
10,000
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4. senior Coordinatinq co~~il~ Sh6red
houainq program. Rouainq referral and
counseling for shared housing matches
especially tor seniors. city"i~e.
5. Orban Ministry. Homeless RUpport
.ervices and pr09r&llS. CO\lns.elinq,
ahelter services and qeneral assistance
to the hODel ••• population. Citywide.
6.
7.
8.
9.
Palo Alto Housing corporation. Intor
mation and referral servioes for
affordable housinq options. citywide.
Palo Alto Adolescent service., Inc.
Subsidy funds for low inca.e partici
pant. in new adolescent substance abuse
treatment proqr"". Ci ty'.ride.
Homeless Child Care. SUbsidy funds for
n6W program providinq chil~ care for
basales. familiea. Citywide.
city or Palo Alto. CDBG administration.
General a~inistrative axpenses for
operation of the CDBG prograa.
Citywide.
10. Mid-Peninsula Citizens for Fair Housing.
services to promote an envlro~ant ~t
fair housing including coaplaint
tnv8ati9atlon, counseling and advocacy.
citywi~ •.
ll. Senior Coor4inatinq Council. Rome
Repair Proqraa. Subsidized minor
home repairs tor lo~er income elderly
homeowners. citywide.
12. stevenson House.. Carpetinq.. Replace
~nt of wern carpeting to the tacility's
common areas. Housing project provides
135 senior adults with affordable housing.
455 E. Charleston Road.
13. social Advocates for youth. Rehabili
tation funding for a ne~ roof for a
qroup home tor at-risk adolescents.
509 View Street, Mountain View.
1... Second Harv:2st Food Bank. Furu:ling to
equip the new distribution centerts
storaqe area with pallet racks to allow
for maximum facility utilization and food
distribution. Agency provides food to
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10,000
33,000
28,000
10,000
10,000
173, JOO
~5,OOO
.10,000
20,000
1.0,000
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aoup kitchens, shelters, emerqency food
providers, and brown ba9 proqrams which
serve &rea homeless and lo~ income residents.
Site is located at the southeast corner of
the Al.aden Expressway/CUrtner AVenue
interchanqe in sari" Jose. 25,000
15. Nev ~ildr.n'. Shelter Pund~ Pundinq for
design and construction coat. a.~oclat.d
with a nev santa Clara County Children'.
shelter to be located near the intersec
tion of Camden and Union in San Jose.
16. New Bouainq oevelopment FUnd.. Funding
for projects Which would preserve or
increase the nuaber of affordable housinq
units in the city of Palo Alto. Funds are
reserved W"ltil Oecem})er 31, 1992 for projects
addressing either sinqle room occupancy (SaO)
bou.ing or senior housinq in a ratio of 3:1,
respectivel}". Ther-eafter, My unspent funds
vill be available for projects meetii~ the
City'. CDBG housinq priorities on a first
72,500
cOJae, first serve~ bao,sis. 393,995
Total $845,484
SEmON 2 ~ The total lJIIount set forth in Section 1 hereby
represents the proposed allocation fro. the tederal Oepartaent of
BouBinq an4 Urban Development ("HOD") tor fiscal year 1992-93 of
$640,000 in CDBG funds, $2C3,451 in program income an4 $2,033 in
reallocated funds from a prior program year.
SECTION 3 ~ The City Kanager is hereby authorized to expend
the money in the $10,000 CDBG emergency contingency account crea-ted
under Resolution No. 6897, on an e.erqency besis in his discretion
tor existinq or additional CDBG-eliqible programs or projects and
is directed to report to the City Council on any such e.~itures.
SECTION 4. city staff is hereby authorized to submit the
appropriate application foras to BUD for the 1992-93 COBG funds,
with sLlch aoney to be used as .et forth in this resolution, and the
Hayor, City MAnaqer ana any other appropriate City staf.f or
ot.ficials are authorized to execute such application terms and any
other necessary documents to secure the funds.
SECT!ON s. The City Council hereby finds that the 1992-93
COBG progr&ll authorized in Section 1 will have no significant
environmental effect tor PUrpoS4S of the california Environmental
Quality Act <-CEQA-), as shown in the neqative declaration approved
in connection with the aaoption of this resolution. The council
further authorizes and directs City staff to prepare any addit.ional
environmental assessments and certifications that may be required
undar CEQA and the National Environmental Policy Act for each
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prcjact und.er t,.he ~992-Si3 CDBG prQ9TftlII prior to the rele.aa. af
turut. fer •• ch .uch project.
IN'I'ROOOCED AliI) i'ASSEC:
ArES:
NOES:
ABSTElITIONS:
ABSENT:
ATTEST: APPROVED:
city Clerk !!ayor
city Hana'l'er
APPROVED AS TO FORM:
Director of Finance
Benior Ass~. City Attorney
Direotor ot Community Services
Huaan Services Administrator
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AGREEXEJrlT BY" AND BETWEEN THE CITY OF PALO ALTO
AND COMMUNITY HOUSING, INC. TO CARRY OOT PRE-DEVELOPMENT
ACTIVITIES FOR A NEW SENIOR RO~SrNG PROJECT UTILI2IHG
~UNOS FROM THE ~9g~-t3 YEARS COMMUNITY ~EVELOPMENT
BLOC~ GRANT PROGRAM PURSUANT TO ~KE HOUSING AND
COMMUNITY DevELOPMENT AC~ OF 197.,
PUBLIC LAW '3-383, AS ~~ENDEO
THIS AGREEMENT ,herein "AGREEMENT I' ), is :made and entered into or:
the ___ day of , 1993, (herein the IIEffective
DateN) by ~nd ~etween the C1T~ OF PALO ALTO, a municipal
corporation (herein "eII"':-"), and COMMT..,J'NIT'{ HOUSrNG, INC., 211
Cali~ornia non-profit corporation organized and existing by
virtue or the laws of the state of California (herein
'"CONTRACTORn). CIT'i and CONTRACTOR may herein be referred to
individually as a JlPartyn or collectively as ttparties".
RECrTALS~
WHEREAS, CONTRACTOR has applied to CITi' for assistance ... ith -t:.he
pre-development expenses for a proposed 10'''' income senior rental
hoasinq development on a parcel of land within the city of Palo
Alto known as 330 Everett Avenue~ commonly referred to as Lytton
IV; and
WHEREAS, said development is to be subsidiz~d by the United
States Department of Housing and U~ban Development (HUD) under
Section 202, of the Housing Act of .1959; and
WHEREAS, CONTRACTOR received a section 202 Fund RE"ser-vation from
HUD on March 26, 1992; and
J\j"HE~F.AS, pursuant to the provisions of TiLle: I of the Housing and
cO!it!!'.unity Development Act of 1974, as amended, CITY has
appropriated COm.1O.unity Development Bl-ock Grant (CDBG) funds in an
amount not to ex~eed ONE HUNDRED THOUS~~D DOLLARS {$100 1 000) to
CONTRACTOR to defray a portion of the pre-development expenses to
be incurred prior-to the construction of the proposed projecti
and
WHEREAS, CITY has appropriated said funds for the: purpose of
meeting the goals and objectives of developir,g 3 ne ....... rental
housing' project 'Which 'Will bE:n~fit and be affordable to very low
and low incQme seniors; and
WHEHEJ.~S, the proposed project is an cligibJ.e actlvit,y ur,der the
COl11."'Tlunity Development Block Grant PrograrrL, and is consistent 'w'ith
the affordable housing goals for the city of Palo Alto as
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outlined in the City's Comprehensiv2 Ho~sing Affordability
Strategy (CHAS);
NOW, THEREFCRE, in consideration of the mut\.,j;al covlE'nants and
agreements specified herein, -and subject to its terms and
provisjons, the parties agree as foll~ws;
AGREEMENT PROVISIONS
I. DEFINITION OF TE~~S
Clients -Senior individuals or heads of households whose
household incom€s are less than the low inc~!!1e limits, as
adjusted for family siz.e, a5 determined by the U.S. De.partment of
HUD for Santa Clara county.
AffordGlble Rents -Combined rent and utility payments which do
not exceed thirty (30) percent of the income eligible household's.
actual monthly income.
Fropo§._~_P.roj ect -Development of a ne .... · senior residential
building 'With related facilities and services as described in
Planned community (PC) Zone 4053. an.:! as it may be ame:-.ded,
located on property known as 330 E-verett }.venu€. Palo Alto.
Califo:>rniC!4
Lien Period_ -The five (5) year period during which the Lytton IV
project must he used for the purpose of providing affordable
rental h~using to inco~e eligible clients. The effective date of
the Lien Period shall be th~ date of the commencement of rental
activities at the proposed Project. During this period,
CONTRACTOR'S obligation to repay CITY funds shall be evidenced by
a Promissory Note.
II. DESCRIPTION OF ACTIVITIES
'With funds p~ovided under this }o.GREENENT, CONTRJI..CTOR shall pay
for a ·portion of the archltect~ral~ engir,eerlng and consultant
fees, soils and related tests, fees and reports, and other pre
development expenses which mal' be incurred prior to the actual
construction of the Proposed Project, and "Which are reasonable
and necessary in order to sec~re development and/or financing
approvals for the proposed Project, and which are more fully
described in Exhibit A, SCOPE OF SERVICES AND PROJECT BUDGET,
attached hereto and incorpcrated herein by reference.
111. SECURITY
A Promissory Note in the amount 0: ONE HUNDRED THOUSAND DOLLARS
($lOO~OOO) I shall be signed by CONTRACTOR and attached hereto as
Exhibit B. The Promissory Note shall be recorded as a lien
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against the Propo~ed ~~oject at the cl~se of the HUD Section 202
eSlcroy. The Promissory Note shall~ at the option of CITY, becomE:
inur.ediately dl1e and payable up \: (a) failure of CONTR.b.C'rOR to
comple-,te construct.ion of t~e P~oposed Projectj (b) failure of
CONTRACTOR to commence renting to Clients at Affordable Re_rlts;
(c) th~ sale, transfer, lease, or other disposition by CONTRACTOR
of the Building Site for a purpose other t~an the Proposed
Project; (d) the sale, transfer. lease, or other disposition of
the Froposed Project prior to five years after COW:R,a.C'i'C'R
commences renting to Clients; (e) a change in the use of the
Proposed project .... 'hich violates applicable CITY regulations and
ordinances, or wttich is not an :oIeligible activity" under the COSG
program of the Housing and Community Development Acts of 1974 and
1977, as amendedj and (f) failure of CONTRACTOR to perform any
obligation under this AGREEMENT.
The entire principal balance shall be considered paid in full if
none of the contingencies set forth in (a). (b), (e), (dJ, (c)
and Cf) above have occurred ,., .. ithin the Lien Period.
IV. TIME OF PERFORMANCE
Services of CONTPACTOR shall be performed ~ithin a two year
period commencing on the 1st day of January, 1993. The term may
be extended for an additional period net tv exceed one year, but
this IE'xtension shall b.g granted on bahalf of CITY by the City
Manager or his/her designee only upon the submission of
satisfactory ~ritten evidence that reasonable progress in the
implementation of the development of said senior rental hou~ing
project has been made. The te;r'm of the AGREE~ENT and the
provisions herei.n shall be extended to cove.r any additionill time
period during which CONTRACTOR remains in control of CDBG funds
or other assets including program income.
v. PAYMENT
It is expressly agreed and understood that the total a~ount to be
paid by CITY under the contract shall not exceed ONE HUNDRED
THOUSAND OOLLA....'RS ($100,000). DrawdQl,.iI1s for the payment of
eligib16 expenses shall be requested by CON7RACTOR against the
item.s specified in Exh ibit A herein and jn accordance ... i t~
performanr.e. Payments may be ~ade contingent upon certification
by CONTRACTOR that CONTRAcTOR'S financial management syste11l is in
accordance 'With the standards sp~cified in Attachment F of 011B
circular A-]lO.
VI. NOTICES
Any notice which may be or is required to be givs:n under this
AGREEMENT shall be suLJrr.-itted in wr-iting, postage prepaid. to the
following representatives:
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CITY: City Manager
250 Hamilton Avenue
Palo Alto, CA 94301
CONTRACTOR; Blair StClr,ra.rt, Pres.
Board of Directors
COMMlnHT'l::' HOUSING, INC.
656 Lytton Avenue
Palo Alto, CA 94301
A copy of all notices and cor-respondence to CrTi' must also be
sent to:
Director, Planning & community Envirom!tent
City of Palo Alto
250 Hamilton Avenue
Palo Alto, CA 94301
VII. GENERAL CONDITIONS
1. Compliance
CONTRACTOR agrees to comply with the requirements of Title
24 Code of Federal Regul:c:.tions t Part 5,0 of the Ilol.!sing and
Urban Development regulations concerr.ing COIr\!!l1.mity
Develop:rnent Block: Grants (CORGi i and all federal reg1..l1ations
and policies issued pursuant to these regulations.
CONTRACTOR furth~r agrees to utilize funds available under
this AGREEMENT to supple~ent rather than supplant :funds
otherwise available. CONTRACTOR, in the performance of its
obligations under this AGREEMENT~ shall ccmply with all
applicable laws 1 ordinances, rules and regulations.
2. Independent Contractor
CONTRACTOR shall maintain its nonprofit corporate statl.lS as
defined by California Cc,J;poratio!ls Code Section 5060, as
amended, during th€ Li~n Period set forth above. Nothi.ng
contained in this AGREEMENT is intended to, ot' shall be
const~rued in al"'ly manner, as creating or establis;)ing the
relationship of ernployerjempl':j}'ee betioo'een the parties.
CONTRACTOR shall at all times remain an independent
contractor with respect to the services to be performed
under this AGREEMENT.
3. Indemnification
CONTRACTOR ~hi:::lll indemnif:::r, defend and hold CITY harmless
from: and against any and all clains, actions. suits,
charges, and judgmenb;; \.,ihatsoever that arise out of
CONTRACTOR'S perfer-mance or :r.onperformance cf the services
or subject matter called for In t.his AGREEMENT.
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"'. InsuL'ance
CONTRACTOR, at its sole cost and expense, shall maintain
work.ers' compensation, public 1 iabi li t}', personal injury and
property damage insurance .. insuring agajnst ail liability of
CONTP~CTOR and its authorized representatives arising out of
or in connectio.n ...... ith CONTRAcfOR'S performance under this
AGREEMENT. CONTRACTOR and any subcontractors assigned to
the perform~nce of the terms and conditions of this
AGREEMENT shall comply · .... ith coverage amounts. required
endorsements, certificctes of insurance and coverage
verifications as defined in EXHIBIT C, INSURANCE
RE(lUTREMENTS, attached hereto and incorporated herein by
reference.
5. Assignment
All rights granted hereunder are personal to CONTRACTOR, and
a.re not assignable or tr.ansferabl.t; absent the prior 'Written
consent hr the CITY MANAGER on behalf of CITY, and any
attempteQ assignment thereof shall be void.
6. Suspension and/or Termination
Consistent 'With 24 eFR Secticl"'. 85.44, e.ither party may
terminate this AGREEMENT at any time by giving ~ritten
notice to the other party of such termination and specifying
the effect t ve date thereof at least 3D da}'s be.fere the
effective date of such termination. Partial terminations of
the Scope of Service in Exhibit A may only be undertaken
with the prior written approval of the City Manager on
behalf of CI'l'Y. In the event of any termination for
convenience t all finished or unfinished documents or
materials prepareQ by CONTRACTOR ~nder this AGREEMENT shall,
at the option of CITY, bpcome the property of CITY, and
CONTRACTOR shall be entitled to receive reasonable
compensation fer any .... ork completed on such documents or
fr'.aterials to the satisfaction of the C} 1'1 MA..~AGER prior to
the termination..
Thh; AGREEMENT is governed by applicable fe_deral statutes
and regulations, as referred to elsewhere herein. Any
material deviation by CONTPACTOR for any reason from the
requirements thereof, or from any other provision of this
AGREEMENT, shall constitute a breach of this AGREEMENT and
Tr.ay be cause for termination at the election of CITY or upon
the direction of HUD. In accordance ~ith 24 CFR Section
85. '" 3, CITY may terminate this Jl..GREEMENT I for cause, by
giving seven days notice to COFTRACTOR. In the event of
termination, all finished and unfinished work shall become
the propert}' of CITY.
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program .IncC)me
CONTPACTOR shall return to CITY any program income as
defined at 24 eFR Section 570.500(a) generated by activities
carried out with CDBG funds made available unde.r thj s
AGREEMEN,!,. Shculd CONTP.ACTOR sell, lease 1 rent .. transfer,
dispose of, or use the facility tor a purpose other tha~ the
Proposed Proj cct dur ing th? Lien Per iod, Cml'TRACTOR ag!"ees
to rei!T'tburse CITY' the full amount paid under this ACREEMENT.
Such amount ~hall be paid at the time of sale l transf€r,
lease, rental or other disposition.
~endme!lts
Amendments to the terms and conditic,ns of this AGREEMENT
shall be requested in writing by the Party desiring such
revision, and any such adjustment to this AGREEMEN'T shall be
determinad and be effective only upon the ~utual agreem~nt
in writing of the Parties. Ar:lendments made by HUD, or any
authorized Federal official, will deemed to be incorporated
herein~
9. Subcrdination
It is understood and agreed that. the t~r~s aHd conditions of
this AGREEM~£ are subject and subordinate to the provisions
of Section 202 of the Housing Act of 1959 and all applicable
HUD regulations and administrative requirements. In the
event of any conflict between the provisions of this
document and the provisions of any applicable HUD
regulations, relatt:ld HUD administrative requirements I or the
HUn loan documents, the HUD regulations, related
administrative requirements or loan documents shall control.
VII!. OBLIGATIONS OF CONTRACTOR
1. CONTRACTOR shall maintain no me:r.lbeL-of its Board af
Directors or staff a~ ~interested pecscns~ under the
.AGREEHENT~ For the purposes of this AGREt.:MENT, ~inte.rested
persons n means either:
a) _~y person currently being compensated by CONTK\CTOR for
services rendered to it within the previous t .. 'elve (12)
months, 'Whether as a full-time or part-time e!!1plc:tee,
independent contractor or other ...... is~, excluding any
reasonable cornpensat";"on to a Board member as a Board
member; or
b) Any brother, sister, ancestor, descendant I spouse I
brother-in-law, sister-in-law, 50n-in-la'",', daughter-in
law, mothar-in-law, or father-in-law of any such person
described in paragraph ILl.a}, above.
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CONTRACTOR shall utilize '!!linot"ity and/or 'Jcmen-o'.med
businesses I vendors, suppliers, and contractors to the
maximum e>cter-.t feasible for iteros funded under this
AGREEMENT.
CONTRACTOR shall certify to CITY that all funds expended
under this AGREEMENT shall adhere to all federal
requirements of the cornmunit~· Development Block.. Grant {CDBG)
Program as l't'.ore fully described in Exhibit D, FEDERAL
REQUIREMENTS, attached hereto and incorporated herein by
reference.
CONTRACTOR shall/ prior to requesting disbursement of any
funds under this AGREEMENT, silbmit to CITY copies of all of
its subcontracts with consultants (i.e. architect, engineer,
etc.) covering work to be paid under this AGRER~ENT. Said
contracts shall clearly state the ~ork to be performed and
the basis for the payment. All such costs shall be
reasonable and necessary in order to secure development
and/or financing appro ..... als for the Proposed project.
S. CONTRACTOR shall monitor the .o:-k performance of
subcontractors under this AGREEMENT and submit to CITY
performance criteria and a schedule of activitjes describing
measurable progress of the proposed Project as set forth in
Exhibit A.
5. CONTaACTOR shall, fallowing initial occupancy of the
proposgd Project, file annual reports (on forms approved by
CITY) with CITY on the number of Clients receiving services
in the Proposgd Project through the operation of the
building as a seni0r residential facility, and the number of
those Clients 'Who are of very 101tr.' Cl.nd 10\11 in~ame.
7~ CONTRACTOR shall document all costs by maintaining complete
and accurate records of all financial transactions,
including, but not limited to, contracts, invoices, time
cards, cash ree. ipts, vouchers, cancelled checks, bank
statements, and/or other official documentation evidencing
in prcper detail the nature and propriety of all charges~
8. CONTRACTOR shall be liable for the repayment of disallowed
costs. Disallowed costs may be identified through audits,
monitoring, or other sources. CONTRACTOR shall be afforded
the opportunity to respond to any adverse findings ,".hich may
lead to a determination of disallo .. ed cc.sts. CITY s.hall
make the firlal oeterrr,inatjon of disallo .... 'ed costs.
9. CONTRACTOR shall subrni t for approva 1 by CITY any lease
agreement either proposed or in effect, which may affect
directly the Proposed Project constructE'd llnder this
AGREEMENT during t.he Lien Per j ad.
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10. CONtRACTOR shall maintain records, incl ud iog but nc·t lirr.i ted
to booits, financial records, supporting docul':lents.
$tatistical records, personnel, property ~nd all other
pertinent records suffici~nt to reflect properly:
a.) all direct and ir.direct costs of .... ho:tever nature claimed
to have he€:"J. incurred and anticipated t.:-be incurred to
perform this AGREENENT; and
b) all other If,att.ers covered by th is A.GRE£HE:NT.
11. CONTRACTOR shall preserve its records and make them
available for review by ClTY:
3} For e period of three (3) years from the date of the
submission of the final expenditure report; or,
b) For such longer period, if any, as is required by
applicable law; or,
c) If this AGREEMENT is terminated, the records relating to
the work terminated shall he preserved and made aVailable
for & period of three (3) years from the date of any
resulting final settleroent; and
d) For a period of three (3) years from the date of the
completion of the Lien period, for these rec~rds related
to the annual reports; desscribed above.
12. CONTRACTOR agrees that~ at any time during normal bUsineGs
hours, and as often as may pe deemed necessar:r', CITY and/or
any duly autnorized :cepresentatives shall, until expiration
of Ca) three (3) years after fj.nal payment under this
AGREJ...:MENT, or (b) such longer per ied as m.3y be prescribed,
have access to and tbe right to exa::l1ine all of its records
'With respect to all matters coveTed by this AGREEMENT.
CQNTAACTOR also agrees that CITY, or any duly authorized
representatives, hocv€ the right to auditj E;)':a1T'.ir.e and mai<".e
~xcerpts O~ transcripts of and from, such records, and to
make audits of all contracts and subcontracts, invoices,
payrolls, records of personnel, conditions cf e.mp1 oymer.t,
lTtate.rials and all other data relating to matters covered by
this .AGREEMEN'1'.
13. For funds e;)l.pended imder this AGREEMENT ~ CO:JTRA.Cl'OR shall
comply 'With the uniform adrr:inistrative requ.ir-eTIlents and, cost
principles set forth in:
a) OMS Circular A-122 "Cast Principles for Non-Profit
Org-anizatlons";
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b) OM~ Circular A-t:l) "Audits of Instit.utions of :-{igher
Ectuc:ation and other N~n-Profit Institutions 't ; ;;ond
c) Attachments A,B,C1F1H1N and 0 to OMS Circular A-1IO,
dealing with cash depositories, bonding and insurance~
records,-standards fer financial rnanag.:·ment systems"
IDonitoring and reporting proqra~ performance~ property
1lU\r:ag.ement standards and proc\,Jrement standards as
modified by 24 CFR section 570.502(b)
14. CONTRACTOR agrees that t in connection ... ·ith the activit.ies
author ized under this AGREEMENT and the publ ic:: s~rvices
provided in the Proposed project
a) It. !,rill not discriminate against any employee or
applicant tor employment on the basis of religion and
will not limit employment or give preference in
employment to persons on the_ basis of religion;
b) It will not discri~inate against any person applying for
p1lblic services on the basis c·f religion and ..... il1 not
limit such serv-ices or-give preference to persons on the
basis of religion;
c) It will provide no religious instruction or counselin9,
conduct no reliqious worship or services, engage in no
reli9io~s proselytizing, and e~ert no other religious
influencE in the provision of public services; and,
d) The portion of a facility used to provide public services
in the proposed Project shall contain no sectarian or
religious symbols or decorations.
This AGREEMENT constitutes the sole agreement of the parties
hereto relating to said PROJECT and fully stat~s the rights,
duties, and obligations of each party as of the date of this
AGR.EEMENT. Any prier agr€:-elTlent. promises, nC90tiations, or
representations between the parties not expressly stated in this
AGREEMENT are not binding. All subsequent ~odifications shall be
in w-riting4
A. No Third Par_ll_ Beneficiary -This AGREEMENT shall not be
construed or deemed to be an agrecl'l'.ent for the benefit of
any third party or pa.rties, and no third party or parties
sh~l] have any claim or right of action hereunder for any
cause whatsoever.
B. Severability Clause -In case anyone or more of the
provisions contained herein shall, for any reason, be
held invalid, illeg~l, or unenforceable in any respect,
it shall Tiot affect the validity of the other provisions
~hich shall remain in full force and effect.
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C. N-:) PIe_dging mQf CITY's Credit -Hilder no circumstances
soall CONTRACTOR have the authority or power to pl~~dge
the credit of CIT'i or incur any obligation in the n,'Hl'.€ of
CITY.
IN 'WITNESS WHEREOF. t:'e: parties have execut.ed this AGP.EEMEIU' on
the date first above written.
CITY OF PALO ALTO
A'M'EST:
City clerk
APPROVED AS TO FORM:
APPROVED:
clty Manager
DIrector of r inanee.
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Director of Planning and
Community Environ~ent
Cit_y Auditor
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CITY OF PALO ALTO
Mayc.r
Adrlress: 250 Hamilton Avenue
Palo Alto, CA 94301
Telephone: 415/329-24£8
Fax: 415/329-2240
COMMUNITY HOOSING, INC.
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EXHIBIT A
BCOPB OF SERVICES AND PROJECT BUDGET
Activities tc be Performed
A. Direct Services
The Project ~il1 consist of pre-development activities
which are reasonable and necessary in order to commence
site preparation a~d cQnstr~ction of t~e Proposed
Project. These activities include# but are not limited
to: architectural, engineering, arborist, housing
consultant fees and services.
Architect, Engineering, Arborist, and
Housing Consultant Fees and Expen~es
B. Reports and Submittals
100,000
During the Project, COll'i'RA.CTOR shall provide CITY with
peri~dic invoices and cost reimbu~sement statements with
documentation of actual costs incurred.
CONTRACTOR shall submit a final cost reimbursement
statement for the Project, indicating the amount of
revenue received and applied, itemized for each funding
source.
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EXHIBL B
PROMISSORY NOTE
SECUREO !lY
8HO~T PORK DEED OF TRUST ~~ A6SIG~~ENT OF RENTS
Date: FebrLIary 2'5~ 1993 ---'-'--
Palo Alto l California
FOR VALUE FECEIVED r COMMUNITY HOUSING, INC., a corporation
organized under the Ncnprofit Public Benefit Corporation Law of thE
State of Californta, promises to pay to the oruer of the CITY OF
P)'....LO ALTO., a charter city and a municipal corporation (neITY "), the
principal sum of One Hund:re~ Thousan~ t'Iollars ($100, DOC. OOl at t,ne
office of Revenue collections of the city of Palo Alto, 250 Hanil
ton Avenue, P.o. Box 10250, Palo Alto l CA 94301, or at such other
place as CIT~ may fro~ time to time designate, with interest from
the date of this PROMISSORY NOTE SECURED BY SHORT FORM DEED OF
TRUST AND ASSI{.NMENT CF RENTS ("Note"), until paid, at the rate of
zero percent (ol) per year on the unpaid principal balance.
This Nute is secured by a deed of trust entitled ·~HORT FORM DEED
OF 'I'RUST AND ASSIGNMENT OF RENTS'" (nOeed of 'rrust") of even date
herewith on BORROWER's property loc3ted at 330 Everett Avenue, Palo
Alto, cali~ornia (RFacility").
This Note is made in connection ~ith an agreement entitled
-AGREEMENT BY AND BETWEEN THE CITY OF PALO ALTO A.~D CO~1MUNITl'
HOUSING, INC. TO CARRY OUT PRE-DEVELOPMENT ACTIVITIES FOR A NEW
SENIOR HOUSING PROJECT UTILIZING FUNDS .FROM THE 1992 -33 ":IF..AR.S
COMMUNITY DEVELOPMENT BLOCK GRANT' PROGRAM PURSUANT TO TEl:: HOUSING
AND COMMU1'iiTl' DEVF.LOPMENT ACT OF' 1'374, PUBLIC LAW 9J-JB3, AS
AMeNDED" ("Agreement"). The Agree~ent provides that BORROWER is
the recipient of certain Co:rrtl!1u-'''lity Development Block Grant ("CDGB"')
funds designated for ce.rtain costs, including, .... ithout limitation~
architectural~ engineering, plan revie-.", and development fees and
related costs for the development of the Lytton IV Senior Housing
Project~
}~y amounts advanced under this ~ote shall r at the option of CITY,
become immediately due and payable upon the occurrence of any of
the following: (a) the failure by BORROWER to COT,1:mence. the scope
of services or to complete the scope of services set forth in the
Agreement 'Within the tilT'.@. permitted; (b) the sale, transfer, or
other disposition b)~ BORROWER of the Faci I i ty -without the prior
written eonspnt of CITY pr ior to the expirdt.ion of the Lien Period;
(e) a use by BORROWER of the Facility, prior to the expiration of
the Lien Period, 'Which violates the a.pplicable provisions of CITY's
Charter, ordinances, or regUlations, or which is not an "eligible
activit.y" under the eDGS Progra!T1 of the Housing and Com;r,unity
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Devel~pment Acts of 1974 and 1977, a~ amen~ed, and the regulations
issued pursuant thereto by the United States Cepartment of Housing
and Urban Developrnent~ Or' su-:'cessor agency; ar.d (d) an uncured
defaul t under the Agreement, this Note, or the OeEld of TCllst.
Subject to the terms of the Agr-ee~ent, the entire pr-i:1cipzl balance
shall be considered paid in full if. at the expiration of the.' Lien
Per lad, the contingencies set forth in suhparagraphs (a), (b} I (c)
and Cd) above have not occurred.
BOR..~Oi-l·ER, any endorser of this Note, and any others · .. ·ho roa~{ bp-corne
liable for all or any part of the Obligations evidenced by this
Note may prepay all or any portion of the principal sum of this
Note, without pe~alty. Any and all pa~~ents ~ade hereunder shall
be credited, first, or. the interest then due and, the remainder, on
the principal balance, and interest on the principal balance so?
credited shall thEreupon cease.
BORROWER, any e.ndorser of this Note, and any others ... 'ho may become
liable for C'l;ll or aT'.~~ part cf the obligations evidenced by this
Note or this Note, as amended, hereby individually ~aive demand,
presentment for payment, demand and protest, notice of protest,
demand. and of dishonor and non-payment, and consent to any number
of extensions or renewals of time hereof. Any such extensions or
rene~als may be made ~ithout notice to any of the obligated parties
and without affecting their liability. The pleading of any statute
of limitations <:liS a defense to any deIl'~3.nd against BoRROWER is
expressed 'Waived by BOP~'ROWER. If BORROH'ER consists of more than
one person or individual, each person or individual shall be
jointly and sever-ally liable under this Note.
BORROWER shall not further encumber, mortgage or subject the
Facility. or the real property on · ... hich it is located, or any
interest therein, to a deed of trust, mortgage, indenture, or other
docwnent of legal encumbrance (individua lly, n Encumhrance tl and
jointly, "'Encumbrances lt ) without the prior written consent of CIT!'.
Unless CITY shall Expressly ."lgree other"'ise, in writ_ing, any
Encumbrance affecting the Facility shall provid~' that, in the event
of any default or breach by BORROWER under any Encumbrance
entitling any party thereunder to accelerate the indebtedness
secured thereb}' and foreclose upon the Facility, (1) CITi:' shall
have the right, but not the obligation, to cure the default prior
to the completion of any foreclosure and reinstate the Encumbrancej
or (2J pay ~he total unpaid indebtedness secured by such
Encumbrance. in which event, such Encumbrance s!1a 11 be released,
canceled, or otherwise reconveyed.
Any 3mounts expended by CITY under the cont ingencies set. forth j n
(1) or (2) of the preceding paragraph shall be re:imbursed by
BORROWER upon demand of CITY therefor, and, in any event, shall
bear interest at the :ma .. dmum rate pen11itted by Article XV, section
1(2) of the California Constitution, as Il',ay be amended from time to
time, from the date such amounts were a::]vanced by CI':i'Y until paid
by BORROWER in full. J..ll such ar.;ounts, including int.erest and any
penalty authorized under the Agreenent, this Note, or the Deed of
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Trust, shall be added to the pcincipal of this Note. The approval
by BCRROWER of any Encumbrance, and the placing of a sec-..:rity
interest therefcr on the facility, or anjt portion thereof I not
containing the provisions of the preceding paraqraph and th is
paragraph shall constitute a default under this Note.
If any default is made hereunder, BOP~0WER further promises to pay
reasonable attorneys' fees and costs and e>.:penses incurred by CITY
i~ connection with any such default or any ether action or oth~r
proceeding brought te enforce any of the provisions of this note.
CITY's right to such fees shall not be limited to .or by its
represe--':'ation by staff attorneys of CITY's Office of the City
AttoLnei, and such representation shall be valued at the customary
and reasonable rate~ for p~ivate sector legal services.
The relationship of CITY and BOR.~OWER evidenced by this Note shall
be deemed to be one of creditor and debtor and not of partnership
or joint venture.
This Note may not be modified or amended except by an instrument in
writing which expresses such intention of the parties sought to be
bound ther-eby, and such writhlg shall be firmly attached to this
Note and made a part thereof.
~-q failure of CITY or other holder to exercise any rights under
this Note shall not con3titute a ~aiver of such rights or of any
other ri~~ts under this Note.
This Note shall be governed by :Jnd construed in accordance wi th the
laws of the State of California.
To the extent assignment of this Note is penni tted by CITY, the
terms of this Note shall apply to, inure to ~he benefit of, and
bind all of the parties thereto, their heirs, 5I.JCCesso!'s and
a~si9ns.
EXECUTED BY BORROWER on the date first aboVB written.
COMMUNITY HOUSING, INC~
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tAHltil T l
r, City of Palo Alto .1""\ --Insurance Requirements for Contractors
COM!1UNIU HDJ$rr~G. HK.
CONTRACT CO-OROINATOR
CONTRACT CESCRlpnOt-~ PRE-DE~ELO~f1ENT COSTS FO~ LYTTON IV. SENIOR RE51DENTI~L FACIL1T¥
CONTRACIDOO 1'0 iKE CIT'( OF PALO M.iO, A;r i KEIR SOt E EXPE ItSE, SHALL OB":'A1N .... ND MA\:HAIN INSUI:VJ'-tCE fOP, n~E T E.,M
OF THE c..ONTRAC1'. CCWTAACTDAS WILl BE FlEOU~RED 10 PRO/IDE A CERTrF:CATE F."DENC'NG THE INSURANCE AND NAMING
THE CIlY AS AN ADDrTlONAL INSU RED
THE CERl1F1CATE OF INSURANCE MUST 2E COMPl ETEO AND EXE:CU~ED BY AN AUTHORiZeD nEPRf.S[NTATrVE OF THE COMPANY
PROVIDING II'iSU~CE, FJLEO WITH THE CITY, ,~ND APFROV'=::D BY THE CITY'S R~SK "~ANA.GE:.R S!:FORE THE CONTRACT WIi.L
; : BE CONSIDERED COMPLETE AS AESPt:CTS jfl.·SURANGE
THiS INSTRlJCTlON SHEET SHOULD BE GIVEN TO ~'OUR INSURANCE AGENTIBRGKEA WITH THE Fl,EOUIAED CERTlFICATE ~ORM
RETURN THE COMPLETED CERTIFICATE: TO THE ern OF PALO ALTO CONTRACTmG DEPARTMENT.
THE lN$URANCE CQV'ERAGES CH~CKEO BELOW ARE REQUIRED FOR nilS CONTRACT.
~ OEHtAAL UA!lILITY IIICllJOIH(I,
• PEfISON..I\l. 1N-JUR'r'
~ BROot.O ~ P~R'TY CM.~A.;::.E
• Bl/lM(!IT ~l!AL
• FrFiE lSJAL l!A.BlUTY
~ UABIUn' I'Ncwn'~G'
• E'lROM ....... O ~'SSIONS
• MAlPRACTICE ilF Af'F'UCAalF)
THE CfTl' Of' N.lO .t.lTO 18 TO BE NAMED AS lUI .lDDJ T-.oNAL INSUREC
lifO IHSUU.NCE: C£RT'~ REaUlA[C
"""""
A.. roe Cit)' d Pale ~ ftI! Qfflc-e .... ~1I!rrt9 ar.d 3mplOJI!IllS BrEI n.;o.m..-,;l ilI50 Bdditior,;ar "w~Ji!d, t:-ut oro!.\' .a S ~ WOl'~ PErlcrmGd l.md'St co-r'rlrac1 Said CO\'EJ~g'it
as ~ the CIty Of P-alo Alto, iric., !!'ia,1 be primll1y coveriJ9l1, ";Ihou~ ~'511!1 Elsal"'SI C I~y"$ e~iSI ,I1g 1M L11 ance lind a"i o/I'II!" inSLmilnCB canlll'd by tn8 CI!~
being ~ fr-!:srance only.
a Whare '[he worlI: 11l'YC~ ptad1n{l. pa--,'IilQ, B)(CBvaJirg, drilliJ!:~. ¢r 011'8'1 ur>d"'~'.;J<J"~ ... ·1;")0;., the por.c:y ir,C!iJt:&S (l8&,rLJetion of 'I':rn, CQnduiLs, pipes, mains,
I)( 0111« tlmll-ar prCJpeft)' 0( any apparaJUS in cormudiQn Iher"",itn tl~;c,,,, 1r.9 $!Jr'e.c~ oll"~ ground Wh€~"9r "..nE'd by Ihild partlE!'~ or Ihe Cit)' ¢I Paf'O AIL':.
C Wheol the ~ i~ «J\~ElW1g, oollapse covsrage rs plo .. "dllj in H'r!! I!<r::>un!~ atJ~'.e
D, The policy 1nc!1J(I9S 6 "Severatl:lily elr In~'f!:«I:" provl$ton.
E, DeductibIes over ~.()OI'J mus! be Indir;atw er.d ere slJbjac1 \0 approv-al
F. 1I,ucl1 poIIdM ~1r9 cancelled OJ chas;ged durin.; the period 01 Cej'lerilQE' as 5lill",d ~'ElrtliJ1 '" sLoch a rl"'O;]r'l&r.as t(!o a"e(;1lhis Cer<.llic8Ie, th'rI)' 130) dill'S
wrTIlan nolioe flll.Jl be I'MlTed w the Gil)! cl Falo Mo, R:v. M811i1~"r, "'0 Sox 10250. Palo Alto, CarillJlllia 94303
G. Thill ijah~ity lr'\$urancEI polley incl .... dn a =nLraclIJal ii8lblriiJl 91'dors.omar,r 1"0111;:;11'111 insurance c01Ierag,. fur conl,;acIQr's 81gf!!'('O", &r·1 IV Il'Idamn'l~ 11l€ CI'~
H. Trnl C~1tV8 IIfliXded under IhE! pc~cla$ is SLobJ&ct 10 '1M It~ I.rm~ 01 1J'1.e-pcl;ci~~ (fe>:lIn"l~ r,arain .en(J ~o:!et~ 8111 Il1e pr<:'vl~:r,ns ca~r""d Illr hl.",,;n
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EXHIBIT D
COM}t"ONITY DEVELOPMEN"r »LCC~ PROGRAM
ASSURANCES
In provlding tile services and work set ':orth in the .Agree~entl
BORROWER covenants and agrees to ""xecute ~he rehabilit~tion and
construction work on the Facility in a ltlanne-r -which ..... il1 penni t
CIT~ to fully comply with. and BOFROWER shall strictly adhere to,
comply 'With, and take all necessary measures to effectuate l the
following covenants and CDGS aS$'.lrances;
1. civil rights and non-discrimin&tion la ..... s.
a. Title VI of the Civil Rights Act of 1964, as amended I and
regulations issued pursuant to 24 CFR P~rt lr ~hich provides
that no person in the United states shall on the ground of
race J color.l or national origin, bE'! excluded from
participation inr be denied the benefits of, or be otherwise
subjected to disc-rimi!"lation under any program or activity
funded, in whole or in part l lllith federal finar.cial
assistance.
b. Title VIII of the Civil Rights Act of 1968, as amended,
and implementing r-egulations lJhen pub} ished, which provides
for the administration of all programs and activities relating
to housing and community development in a manner to
affirmatively further fair housing.
c. Section 109 of the Housing and community Dcvelop~ent Act
of 1974, as amanded, and regulations issued pursuant to ~4 CFR
Part 570, ".,hich provides tha't. no persor, in the United States
shall on the ground of race, color, national origin or sex, be
excluQed from participa~ion in, be denied the ~enefits of r or
be subjected to discrimination under, any p:::ogram or activity
funded, in 'Whole or in part, · ... ith federal fir,ancial
assistance.
d. Section J of the Housing and Urban Development Act ot
1968, as amended, and regulatior.s issued pursuant to 24 CFR
Part 35, which requires that to the greatest extent feasible
opportunities for training and employment be given to persons
'With low and moderate incomes rE:siding in the Project area
benefittea by federal financial assistance, and con~racts for
work in connection wi th the Project sha 11 be a-",'arded to
e.li'9ible busine.ss concerns · ... 'hic:,h are located in, or 0\Jned in
substantial part by persons residing in, the vicinity of the
P"(oje.ct.
e. Sect.ion 504 of the P.e-habilit.ation Act of 1973, as
amended, and implementing regulations .... 'hen published.
f. ThE: Age Discrimination Act of 1975 1 as amended, and
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implementing regulations .... 'hen p1..lblished.
9. The Americans .. o'ith Disabilities Act of 1990, as amended,
and implementing regulations when published.
h. The "'Alnerican Standard Specifications for Making
Buildings and Facilities Ac~sssible to and Usable by, the
Physically Handicapped," Number .h-ll?l-R 1971 1 subject to the
exceptions contained in 41 erR S 101-19.604, which requires
every building or f3cility (otheT thar. a privately owned
residential structural) designed~ ccnstructed, or ~ltered .... 'ith
funds provided under 24 CfR 57D to be accessible to persons
with physical disabilities.
i. The Housing and Community DevelopIllent Act of 1977, as
amended, and the Uniforn Relocation Assistance and Real
Property AcqUisition Policies Act of 1970, as amended. arid the
implementing regulztions yhen published.
j. The uniform adrninistrati ve require:men'ts (including the
cost and procurement principles) set forth in 24 CFR Part 85
and OMS Circulars A-87, A-1I0, A-122 1 A-12B and A-133 t which
re!ate to the acceptance and use of federal funds by non
profit organizations, 3.nd which require an agency receiving in
excess of $25 1 000 in HUD grants to obtain at its ow~ expense
an audit that complies with the requirements of OMB Circular
A-133.
)c. Executive Order 11063 and regulations iss.ued pursuant to
24. ern Part ~07 I lo.'hich provides for equal opportunity in
hO'Jsing and nondiscril'l",ination in the sale, leasing, rental or
other disposition of housing built 'With ied~ral financial
assistance.
1. Executive Order 11246, as amended by Executive Order
11375 and Executive Oreer 12086, and reg'J.lations issued
pursuant to 24 eFR Part 130 and 41 erR Part Ml, 'Which provide
that no person shall be discrimir,ated rtg-ainst on the -pasis of
race, color, religion, sex, or national orlgin in all phases
of ereplcyment during the performance of federally-assisted
construction contracts.
BORROWER further cover.ants W'i t.h respect to the foregoing
aSSU£nJ"lces that "!
A. In the sale, lease, rental. transfer or other disposition
of any real property on l,oIhich the FaCility is located,
BORROWER shall include or cause to be included in any deed 0f
trust, mortgage, indenture, or other instrument of legal
encumbrance ("Encumbrance ") a covenant running vith the land,
prohibit.ing discrimination upon the 'oasis of rac€1 color,
religion, sex, or national origin, in the sale, lease, re~tall
transfer or ot.her disposition of Euch land or any irnprQveme.nts
ere;:ted or to be erected thereon, and pr-oviding that BORROWER
and the: United stat~s of America (HUD) are beneficiaries of
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and entitled to enfor~e such covenant.
B. BORROWER shall take action to affirmatively further fair
housing in the Eale, le3se, rental, tran~fer or ether
disposition of housing, the finarlcing of housing, and the
provision of brokerage services.
(1)
(2 )
BORROWER shall certif:f and agree that BDRROWER is under
no contractual or other disability 'Which ... ould pr~ven.t
BORROWER from complying ·""ith these r-equire!!1ents.
BORROWER shall send ~o each labor organization or
wor);;Elrs" representative '¥rith ,-'hich BORROWER has a collec
tive bargaining agreerr.ent or other sirr!ilar contract, if
any, a notice adviSing such organization or representa
tive of BORROWER's commjtment under Section 3 of the
Housing and Urban Dev~lopment Act of 1968, ~s amended~
and shall post copies of tho=a notice in consp~ .ous places
available to employees and applicants for er.iJlayment or
training.
C. BORROWER covenants to take affirmative action to er.suz.'e
fair treatment in all phases of employment, training, ap
prenticeships, promotion, demotion, and transfer, and re
cruitment or recruit.r.=e.,t advertisi:1g.
Federal political and conflict of interest laws.
a. The Anti··RacJ:eteering Act (also known as the Copeland
Jo.nti-Racketeerinq Act), as a1'!l.ended~ and regulations issued
under 29 CFR Part 3, which prohibits k.ickbacks in Gonstruction
work funded ... ·ith federal financial assistanCE!.
b. The Hatch Political Activity Act r as amended, and imple
menting regulatio)"1s when published, .... 'hich prohibits the llse of
federal funds for lobbying activities.
BORROWER further covenants t~at:
A.. BOF.ROWER will establish safeguards to prohibit employees
from using their positions for a purpose that is or gives the
appearance of being motivated by a desire for private gain for
themselves or others, particularly those .... ith 'Whorr. they have
family, business, or ather ties.
B. BORROWE~ ~il1 not use the assistance prcvided under the
Agreement in the payment of any bonus or commission for the
purposes of obtaining Hun approval of the application for such
assistaTlce, or HUD approval of appl ications for additional
assistancE t or any other approvctl or concurrence of HUD
required under this Agreement, Titl.,. 1 of the Housing and
community Development Act of 1974, as amended, or applicable
HUD regulatiQns~ Reasonable fees or bona fide. technical~ con
sultant, Dlanagerial or ot.her such services, ot.her than actual
soljcitation, are not herE'.by prohibit.r~d if their costs are
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otherwise eligible as a COGB Program cost.
C. DORROWER will not admit any member of or delegate to the
Congress ~f the united states or any Resident Corumissio~er to
any share or part of this Agr€e~eflt or to allow any benefjt to
arise from the same.
3. Federal labor and employment laws.
BORROWER covenants that:
A. BORROWER ~ill comply with all applicable federdl labor
1 a\\.'5 , regulations, a:1d standards ..... hich require contractors
engaged under contracts for the cOi1stru:;.ticn, completion, or
repair of any building or work financed, in ..... hole or in part,
with assistance provided under this Agreement, including all
HUD requirements pertaining to such contracts and the
applicable requirements of the regulation3 cf the United
States Department of Labor under 29 CFR Part J, 29 CFR Part 5,
:s.nd 29 CPR Part Sa, governing thE payment of 'Wages and the
ratio of apprentices and trainees to journeymen. If state or
local law wage rates are higher than those required under tbe
federal regulations, nothing hereunder is intended to relieve
BORROWER of its obliqation, if any, to require payment of the
higher rates. BORROWER shall cause or require to be inserte~
in full l in all such contracts subject to such regulations l
p!:ovisions meeting the requirements of 29 CFR Part 5.5 and,
for such contracts in excess of $10,000, 29 CFR Part 5a.3. NO
a'War-d of contract covered under the Agreement shall be :made to
any contractor .'ho is at the time ineligible to receive an
award of contract under the appl icable regUlations of the
Unit~d States Department of Labor.
4. Environmental and energy lawS.
a. Section 104 (h) of the Housi::1g and CO:7':!!'PJni tJl O.;velop:;lent
Act of 1974, which prohibits the release or co;nrnitment of
funds to any person, unless an appropriate en'liromneI".tal
review has been conducted for the activity or program being
funded, all otheI' environmental requirements for the conduct
of such activity or program have been satisfied, and all
proper authorizations to proceed "'ith such activity or program
have been received from HUO.
b. Section 106 of the National Historic Preservatioil !>,ct, as
amended, Executive Order 11593, and imp1eTIlenting regUlations
'When published, and the provisions of 16 U.S.C. § 4690.-1,
relating to the threat to prehi~torical, histo~ical, or
archeological data by federal construction projects, when
performing environmental assessments under the National Envi
ronmental Policy Act of 1969, as amended, and implementing
regulations when published.
c. Section 114 of the Clean Air Act, as amended, and
i~plementing regulations ~hen published.
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d. section JOB of the Water Polluticn control Act, as
allendec, and ir.lplernenting regulations .... 'hen published.
ea The provisions: of 24 erR Part 35/ as amended, which
prov1aes that nD lead-based paints she.ll be used in
construction or rehabilitation work performed under projects
funded .... :.th federal financial assi$tance~
f. The provisions of 24 eFR Part 39. as ame~ded: which pro
vides that the performance of rehapilitation .... ,rork shall
conform to RUD energy standards for cost-effectiveness~
g. 'E.y,:e.cutive Order 11296~ as
re~Jlations when publi~hed, which
f~o-::ld haz.ards..
amended j and implementing
relates to the evaluation of
h. Executive Orde-r 11288 I as at'.ende.d, and impleme.nting
regul~tions yhen publis.hed, W'hich rela~es to the prevention,
con~rol, and abat~ment of ~ater pollution .
.BOP.,RCWER further covenants that:
A. BORRGWER' s Facility "Will not be included on the I'List of
Violating Faci li ties ll issued by the ani ted states Environ
mental Protection Agency (EPA) pursuant to 40 C"FR S ~5.20.
B. BORROWER will give prompt not ice of any notif ication
received fro!1:l the Director, Office of Federal Activities, EPA,
that the Facility is under consideration to be listed on the
"List of Violating Facilities4" All nonexemp~ subcontracts
concerning the Facility shall include the provisions of this
paragraph4
C. BORRO",'ER \rr'ill cooperate fully in any federal enforcement
actions instituted purEuant to applicable statutes or regula
tions.
5. Miscellaneous provisions.
a. BORROWER "IoIill give HUD and the United States controller
General through ar.y authorized represent:atives access to and
the right to examine all records, books, papers, or documents
related to the receipt and use of CDCS grant funds under this
Agreement.
h. No officer, et';p!_oyee or agent of CIT'l "..-ho exe!:"ciscs any
functions or responsit'ili ties 'oli th respect to the services and
~ork to be provided by BORROWER pursuant to this Agreement
during his or her tenure or f..)r one elJ year thereafter, shall
have any in\.-erest, direct or ir.direct~ in this Agree.ment or
the proceeds thereof.
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