HomeMy WebLinkAboutCC RESO 14,810RESOLUTION ND. 14,810
RESOLUrICId OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA AUTHORIZING REVISIONS 10 THE QMIR/GRAMM
KREENENT
BETWEEN THE C1VMUNITY DEVEIAPMENF CMMISSION OF 1HE
CITY OF NATIONAL CITY, CALIFORNIA AND THE CITY OF
NATIONAL CITY, CALIFORNIA AND AITIHI IZING
EMI/PIM OF SAID ACC,
AS REVISED
WHEREAS, the U. S. Dept. of Housing & Urban Development (HUD)
has requested certain revisions to the Owner/Grantee Agreement for
Kimball Towers which Agreement was earlier executed by the Cb munity
Development Commission and by the City on August 27, 1985; and
WHEREAS, said revisions requested by HUD have been prepared
and the Executive Director of the Community Development Commission has
made a written report and has recommended approval of said Agreement, as
revised.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of National City, California that the Mayor is hereby authorized to
execute the Owner/Grantee Agreement between the Cb munity Development
Commission of the City of National City, California and the City of
National City, California, as revised to reflect the changes requested
by the U.S. Dept. of Housing & Urban Development, and the City Clerk is
authorized to attest thereto.
PASSED AND ADOPTED this 3rd day of December, 1985.
ATTEST:
Campbell, City ?lerk
APPROVED AS TO FORM:
4LL.
George H. Eiser, III - City Attorney
...COMMUNITY DEVELOPMENT COMMISSION
of the
CITY OF NATIONAL CITY
For December 3, 1985 City Council Meeting
TO: Mayor and City Council
through City Manager
FROM: ... Executive..Director
SUBJECT: `" `Revised Owner/Grantee Agreement
for Kimball Towers
V Chairman
KILE MORGAN
MARION F. COOPER
MICHAEL R. ()ALLA
JESS ,VAN DEVENTER
,GB3RGERANATERS
Executive D
&ARNOLD A. PETERSON
SIT u ATION:
HUD, by letter dated November 15, 1985, which is in response to my letter to
HUD dated October .22, ..:.1.985, has requested -revisions to the ,Owner/Grantee
Agreement which was ,earlier approved by the City .Council and the ..Community
Development Commission on August 27, 1985 and executed on that date.
The various revisions are technical. Nevertheless City Council approval is required
in order to make the required revisions.
I attach the HUD letter of November 15, 1985, my letter to HUD dated October
22, 1985, the Owner/Grantee Agreement, as revised, and Exhibit "D" 2 thereof.
_ The . items .in.. -my l... ere 22.,'1965 &tterz eh, ,resat i:`to-ihe Owner/Grantee
Agreement "are checkedin the `righteolumn.. Paragraphs 1n : the: •.Owner/Grantee
Agreement and Pachibit 12D" 2 which have been cheziged,are.:.LLalso :_checked in the
right column.
a The revisions do not : •change ,the ; previous ` agreements with _ HUD :.in any :substantive
way.
Respectfully submitted,
.Arnold. A. Peterson
AAP:sm
"Civic iCenter `+ '1243"°National City: Boulevard A 'National City, :Cali?U11iia .92050 •. 477=1181: Ext. 63
rs+•"'4•,;g• U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, D.C. 20410-8000
f
's 11tl11A F
OFFIGEOFTHE A531^.,TAHT tAPY'FOR
HOU ONER
Nov 15 ta-c
Mr. Arnold A. Peterson
Community Development Commission
1234 National City Boulevard
National City, CA 92050
Dear Mr. Peterson:
Enclosed please find a copy of the comments made by our legal counsel
on the Kimball Towers Housing Development Grant Evidentiary package. Please
respond accordingly.
'Pleasebe advised that an Amendment' to the Grant Agreement is being
prepared in accordance with Item 2.
We look forward to working with you to complete the Kimball Towers
project.
Sincerely,
sssica Franklin
cting Director
Development Grant Division
Enclosure
•
NOV .1 3 -1985
. NOTE TO: Jessica Franklin, Acting Director Housing Development
Grant Division, Th 3
RCM: George Weidenfeller, Attorney Advisor,
Assisted Housing Divison, OCH
SUBJFLT: National City, California
Supplemental Evidentiary Material
This Office .and.the..A.;.Field ..Counsel have reveiwed the additional
Inflammation .submitted :in- response .to- sur• omm nts•an: the learner sr -missions
of evidentiary material' and we have the following comments:
1. Covenants - Wien does the initial period discussed in paragraph 1.h.
of the definitions begin? The initial period should be the period between the
.time the units are initially available for occupancy and the time that 50
percent of the units are occupied. The paragraph should be clarified.
2. The grant agreement should be amended to reflect the accurate number
of units for which priority will be given .to lower income households, i.e. 120
units rather than all of the units as currently indicated in the grant
agreement. The amendment should also reflect the accurate dates in Exhibit E..
3. All documents submitted in draft must be executed and resunitted to
this Office and the L.A. Field Office.
4. The revised title policy, to be ubnitted after execution and
recordation of the revised HDG docume.ts, will require legal review. It
;should be.a-:cznnlete and 11.1-nding .polity, with a - legal descript ion matching
:that - contained :in ether documents,' -:It must further- indicate that :he - G 1 ed
Of ';Trust. is -a first lien. on the -property.
cc: Robert Eenison
Janine.Dolezel
disc#5
COMMUNITY DEVELOPMENT 'COMMISSION
`'I1'' '
�.�the
•1 �:4J NAT"IC NALC7 T
October 22, 1985
U. S. Department of Housing
do Urban Development
451 7th Street, SW
Washington, D.C. 20410-8000
Attention: George"Weidenfeller
Ladies and Gentlemen:
Re: :HODAG Project No. CA003HG401
Your review of Sept. 25, 1985
Ann. Danforth's review (by phone)
of early October, 1985
V Chairman
KILE MORGAN
MARION F. COOPER
MICHAEL R. DALLA
.SE5S VAN DEVENTER
GEORGE H.;WATERS
Executive Director
�\ RNOLD A. PETERSON/
Our responses deal 'first .with :George Weidenfe3ler . letter, then ; that, of. Ann
Danforth. Because of the two different reviewers and the large numbers of
corrections and re -drafts, all of the enclosed documents are drafts only. As soon
as you can approve these documents, we will execute them, and send them along
with the recorded deed (with covenants), the recorded lien and the ALTA policy.
1. Execution of Owner/Grantee Agreement. See above.
2. ;.Requirement tors .rovenaats. ..-We enclose 'sr draft _of .:regniremeats and
-restrictions :to ::be -made a Tart a .the ;.deed.
3a. Priority for low-income and very -low-income applicants. We have added a
paragraph 111 to 'Exhibit D-2 to :the Owner/Grantee Agreement,.. "Tenant
Eligibility." ; This paragraph spells out the "priorities requiredby. the Grant
Agreement and the HDG. application.
3b. Lower . Income Familie% Who Cease to be Lower Income.. We .:have eliminated
this separate . form and:: simply added a: sentence to paragraph "r of :.Exhibit D-2
of -.the Owner/Grantee Agreement, eliminating -the inconsistency with:: the
regulation.
4. We have added the $3,000,000 to the deed of trust.
5.. Opinions.. of, Counsel .relating to titleand debt are enclosed.
_ We .enclose a: letter Ilona ":Thomas ""Iioaores:.at:.-thee Los gTPs HUD afire
.showing` our AffirTruktive lair Trnrm ng Marketing Plan' :has been *approved.
Nationat 3.�ty..Eattlevard 41 "National 'City,''Ca1Iiotnia BZObU. + 477-1 i81. *Ext.'B3
Page Two
7. Priority of HODAG debt. The title policy will show priority.
. Vesting. The title policy will show title vesting in the Owner.
9. We have revised the start of construction date to Januyary 1986 and 'the
completion of construction date to January, 1987 on page 44 of the Grant
Agreement to conform to the Owner/Grantee Agreement and to reality.
10. We have eliminated paragraph 14 of "Kimball Towers Housing Development
Grant Grantee Rent Mechanism", Exhibit D-1 to the Owner/Grantee
.Agreement.
11. We have amended the Certification of Counsel as to availability of equity
funds and land to conform to Section 7.08 of the Grant Agreement.
12.... We have amended the Note tospecify the .point at which .the 20 year term
begins to run.
13. We:have made several .changes .to the .Owner/Grantee. Agreement, asfollows:
a. _• Paragraph 6: This paragraph, now irrevocably commits tire; Owner to
provide its equity in the Project.
b. Paragraph 8. This paragraph now reflects the Owner's obligations in
regard to the environment, as stated in Section 6.02 of the Grant
Agreement. -
c. Paragraph 11. We have added 24 CFR Part 8 to the list of laws and
rg nations here.
Paragraph 12(b)(4). :We have _corrected -the typo.
e. Exhibit . D:-2. We .,have _.added ...a_.paragraph. 11 .to. .require . the .Owner to
submit information on -very-low income .tenants as. required by Exhibit
D-V-4 of the Grant Agreement.
We en'In e:
(1) A_:revised draft of .the Note
(2) :.A _revised.draft:.of the:. Trust. Deed
(3) Covenants, Requiremeiand Restrictions, which will be incorporated
as attachment A to a newly recorded grant deed
(4). Revised ,Opinions of ".Counsel on the debt and a new Opinion on the
title
(5). .;A revised. Certification ofACounsel aura abfity:of equity.. funds
and land
y
v
Page Three
•
(6) A revised page 44 of the Grant Agreement
(7) A revised Owner/Grantee Agreement, including a revised -Exhibit D-2
reflecting the changes described above plus the changes made in
connection with our letter of September 25, 1985.
•(8) Letter from Thomas Honorer dated September 18, 1985.
We trust that these documents, together with the recorded trust deed and the
title policy, will satisfy all concerns of both George Weidenfeller and Ann Danforth.
:We., wll': send the, trust . -deed :and ."title policy as:xsoon_ `es _possrbie...:In the meantime,
we request that you review our revisions and quickly let us know if `"these are
acceptable.
Very truly yours,
_ Aye bV El 1L%
Arnold . A. .Peterson
Executive Director
AAP:LEHsm
Enclosures
cc: Ann Danforth, Office of HUD Counsel
U. S. Dept. of Housing & Urban Development
1615 W. Olympic Blvd.
Los Angeles, CA 90015-3801
OWNER/GRANTEE AGREEMENI BETWEEN THE
COMMUNITY _DEY;ELOPMENT COMMISSION OF THE CITY OF
-NATIONAL CITY, CALIFORNIA AND THE Crr x OF
NATIONAL CITY, CALIFORNIA
:.This Owner/Grantee Agreement is made and entered into this 27th day of
August, 1985, by and between the City of National City, California, acting by and
through the office of the Mayor of the City (the "Grantee") and the Community
Development Commission of the City of National City with offices at 1243
National City Blvd., National City, California 92050 (the "Owner").
WHEREAS, the Grantee has applied for and been .selected to receive a
Housing _Development Grant l"FIDG" pursuant Section 17ofthe United States
Housing Act of 1937 and the HDG regulations promulgated thereunder and contained
in 24 CFR Part 850 for the purpose of assisting the development of one hundred
fifty (150) one -bedroom apartments for elderly and disabled persons (Kimball
Towers) located in the City of National City, California (the "Project"); and
WHEREAS, the Grantee and HUD have entered into a Grant Agreement
dated August 27, _ 1985, (the "Grant Agreement") setting forth theterms of the
HDG which terms include the execution of this Agreement by. the Owner and .the
Grantee; and
WHEREAS, the Grantee and the Owner, pursuant to the terms of the Grant
Agreement, desire to enter into an Agreement providing for a grant by the Grantee
to the Owner of an amount not to exceed three million dollars ($3,000,000), upon
the terms and conditions hereinafter set forth.
NOW, THEREFORE, the parties hereto intending to be legally bound agree
as follows:
I. The .Owner hereby'acknowledges -receipt of:-a•ropy of _the :Grant
Agreement.
2. The Owner agrees to :construct` onehundred fifty (150) -one-bedroom
apartments. (including ; one hundred twenty (120) units for lower income tenants):' and
to provide site improvements, including parking for approximately 100 cars on an
approximately two -acre site located on the easterly side of "D" Avenue at 13th
Street, National . City, California 920.50.
. 3.. :'Subject = to`. the ° terms, and =nations hereinafter set-I.nrth, the. Grantee
agrees to make a grant to the Owner, in an amount not to exceed three -million
dollars ($3,000,000). .The purpose .ofthe grant is to .partially fund.. the development
of the Project.
•
4. The.. Granteeagreesto comply with. all •Grantee obligations set forth in
the Grant Agreement, _the .terms of which areincorporated herein by reference and
_ere ::enforceable :by. the Owner.
,.5. Project activities will be .begun and completed in :accordance with the
followingschedule: site preparation and., construction:. shall begin no later than
January 1, :1996, -and ' be .completedno no 'later ,::than J mTTRry 31: 19fl7, except as may
be :extended r by the parties in accordance with paragraph-:.29 of : this : Agreement.
6. The owner agrees to provide equity in the project in an amount
sufficient to construct the project as agreed upon. The Owner agrees to
irrevocably commit and provide cash in the amount of four million one hundred
ninety thousand dollars ($4,190,000), plus land valued by appraisal at eight hundred
• thousand dollars ($800,000), for a total commitment and obligation of four million
nine hundred ninety thousand dollars ($4,990,000). The parties intend that no
borrowing shall be necessary to construct the project. • •
7. The Owner warrants that it has obtained or has reasonable assurance
that it will obtain, all federal, state, and local governmental approvalsand reviews
required=by...law-to be ,obtained by the Owner lor the Project and that. the Project
shall be developed in accordance with applicable state and local building codes.
8. The Owner warrants that it has not and shall not take any action which
might have an adverse environmental effect, would limit the choices among
competingenvironmental alternatives or .might alter environmental premises on
which .the Grantee's environmental findings were based.
• The parties hereto agree that no activity having,: potential ..environmental
effects shall be undertakenuntil the Grantee has completed. an -environmental
assessment of; the :Project in accordance ' with 'HTJD' regulations contained in 24 CFR
Part 58.
9. The parties hereto agree that they will prepare, implement and
maintain a minority and women -owned business development plan, consistent with
Executive Orders 11625, 12432, and 12138, which shall contain specific measurable
goals and an affirmative strategy to promote awareness and participation by such
business in the contracting and procurement activities generated by the Project.
.She Plans are marked ,as Exhibit :!Ana 1, :and 'A",:2 .:to -this _Agreement.
AD. The Owner .agrees that 'any :duly ::authorized representative of HUD ..shall,
at all reasonable times during the Project Term, have access to any parts of the
Projectin which the. Owner is .involved.
11. The Owner agrees to comply with Title VIII of the Civil: Rights Act of
1968, 42 USC_3601-19 and implementing regulations; Executive Order 11063 and
regulations at -24 CFR Part:107;.. Title VI of the Civil Rights . Act of..1964 (Public
Law 88-352) and regulations;. at 24 CFR ..Part 1.; .the :Age :Discrimination Act of
1975, 42 .UFC 61111-97; Section 504 of ,the.. Rehabilitation .Act .of 1973, 29. USC 794
and implementing-regf*1-trons -at:: 24 .CFR Fart 8; :Executive Order` 11246 'and
regulations at.41:.CFR Chapter 69;:and .therequirements of Section 3 of the
Housing and Urban Development Act of 1968.
12. (a) In order to secure compliance; by the Owner with the requirements
of.liIID?s HDG regulation 24 CFR 850.151(b), (c), (d), and (e), the Owner shall
execute _.a : Nate_to the..: Grantee..in. .the amount ..of..the HDG. (not to exceed three
min= dollars"($3,990,000), which -is marked as Exhibit''nir to this Agreement. She
,debt -shall besecured .by a real estate -trust deed:-oir .the Project,; which is. marked
as Exhibit TMC".to this Agreement. The .security interest of the Grantee may be
subordinated only to any lien securing funds borrowed to _complete the project. No
.such.. borrowing.. is now :contemplated .
(b) ' 'The Owner shall -repay- the above debt :upon . any .uncorrected
.substantive violation .of the following, obligations:
(1-)'; The Owner =agrees .:'not=to convert any units ..in":the Project to
condominium 'ownership or to a form of °cooperative ownership that is not eligible
to receive a HDG during the period beginning on the date on which units in the
Project are available for occupancy and continuing for the twenty-year period
. beginning from the date on which 50 percent of the total units in the Project are
occupied (The "Project Term")
(2) The Owner agrees that during the Project Term the Owner
will not discriminate against prospective tenants on the basis of their receipt of or
eligibility for housing assistance under any Federal, State, or local housing
assistance program or, except for units specifically identified in this Agreement as
designated for the elderly and for units that are too small for the intended
icy, onrhe,hasis.that .they. have .a,..minor: rhi1d or children: who will he living
with °them.
(3) The Owner agrees that 120 of the 150 units to be built
under this agreement will be Lower Income Units, to be occupied solely by lower
income households during the Project Term.
(4) The Owner acknowledges that rents for Lower Income Units
are _limited by HDG regulation_24 'CFR. 850.151, that rents aresubject to the
approval of the Grantee, as more specifically described in the Rent Mechanism
marked as Exhibit "D" to this Agreement and incorporatedherein, and: that lower
income rents and tenant income shall be determined in accordance with HUD
regulations at 24 CFR Part 850, Subpart F.
(5) The Owner agrees to lease Lower Income Units only to
tenants who are lower income at the time of initial occupancy. Furthermore, the
Owner agrees to reexamine the income of each tenant household living in Lower
Income Units at least once a year. When a tenant occupying a Lower Income Unit
ceases' to be lower income, _the .Owner.: agrees to :take. .the_:.appropriate ..actions
,desoribed ui aIDO regulation .34 CF.tt 851115.2(f). The: proeedures :to.he..o loweli
imgip rrting this provision are- .dwgcribed .in an attachment- to 'this Aveement
marked F-xhihit "E".and incorporated herein.
(6) The Owner agrees to provide 60 of the 120 _ Lower . Income
Units on a priority basis to households with incomes less than 50percent of the
area median (i.e., below the Section 8 limits for very low income .families). The
Owner agrees to charge rent for such very low income .families of no more than
thirty (30) .percent of -their respective adjusted incomes or the HUD maximum,
whichever is less.
(7) e Owner agrees . to _ recale>;lcite lower :income rents .at. _least
annually, in accordance with the terms of the Rent Mechanism, and to submit the
first rent recalculation to the Grantee no later than 60 days prior to initial
occupancy.
(8) _The 'Owner agrees to -provide ..:tenants occupying:Lower
Income Volts' at -least 30 days :prior -written :notice before ` :riptemPating .any
increase.. in rents.
(9) , In conformity with :section_.5_0,4(p) of the Grant Agreement
:between the U. S..Department, of Housing and "Urban Development and Grantee, :the
Owner ::agrees that, 'upon completes of the Project and; resolution :of any findings of
the 'fina3.:audit, the .Owner ;shall. 'submit to the Grantee, .:a written certification,
executed by an authorized representative of .the Owner, stating that all
development related activities required to be completed by the Owner in
accordance with Exhibit C of the Grant Agreement have been completed consistent
with the terms of this Grant Agreement, and specifying the date of completion and
. the actual cost to the Owner of labor, materials and necessary services for the
construction of physical improvements for the Project in the format prescribed by
HUD. -
(c) (1) The Grantee agrees that upon a determination of a
substantive violation by the Owner of its obligations under this paragraph, the
Grantee shall notify the Owner in writing (A) of the details of the violation, (B)
actions -to be taken :and the: remedies .:to be : applied to.; cure ..the violations, and ..(C) .a
reasonable .time. (at least thirty days) for ;the. Owner either to : contest the
determination of a violation or to take actions to cure the violation.
(2) If the Owner does not correct a substantive violation, the
amount of. the. Note shall become immediatelydueand payable plus simple interest
accrued at a ratedetermined by .HUD by adding two percent to the average yield
on outstanding marketable long-term .obligations of the United States during the
monthpreceding the . date on which the initial HDG funds were re1Pppd. The
prineippi amount: anti :accrued :interest to be repaid shallbe reduced by:ten .percent
for each full year in excess of ten :years that :intervened between the beginningof
the term of this Agreement and the violation.
13. The Owner agrees to market units in the Project in accordance with
the HUD -approved Affirmative Fair Housing Marketing Plan, Form HUD-935.2 and
all fair housing and equal opportunity requirements. The Affirmative Fair Housing
Marketing Plan is marked as Exhibit "F" to this Agreement.
14-...Me._pa:rt es.hereto_.acknowledge-that. local_ residency regiiirsmpnts shRtt
TICrt be meted.. with respect :to :the :occupancy -of :the : Project, -but that local
:residency preferences are ':perm7 perms' to the extent :that they _are, not_inconsistent
with: affirmative fer housing marketing objectives and the Owner's HUD -approved
Affirmative Fair Hanging -Marketing Plan. Persons ..expected .to .residein the
community . as ".a.. result :of current or, p7A-rtied employment will be :treatedas
residents for purposes of a residency preference.
15. The :Owner, agrees that all _management and maintenance functions will
be performed incompliance with applicable equal opportunity.: requirements.
36.:The Owner ::agrees :to absorb -without assistance from_ MID or
the Grantee any -loss' in revenue resulting from the payment of tenant rents which
are less than the HIID-imposed maximum rents. The amount of such loss is
estimated by the parties to be $72,000 per year. The Owner hereby commits 20%
of surplus _taxincrement funds to .provide. the $72,1100 or any _subsidy that may .be
required by,. the .Project :shtring the Project term.
17. The parties hereto acknowledge that nothing contained :in this
Agreement shall preclude <enforcement:. by the Federal Government of this
Agreement, civil. sights :statutes, :or, other=provisions of: law that apply to <the FAG
program.
18. The Owner acknowledges that HUD, in electing the Grantee for the
award of the HDG, has relied in material part. upon the assured completion of the
Project. The Owner assures the Grantee that it will complete the activities to be
undertaken by it.
19. The Owner agrees to keep and maintain books, accounts, reports, files,
records, and other documents relating to the receipt and disbursement of funds
from the Grantee. Furthermore, any duly authorized representative of HUD or the
Comptroller General of the United States shall, at all reasonable times, have access
to and the right to inspect, copy, audit, and examine all such books, records, and
other: docurneuLin accordance :with .HUD guidelines, until: the eampiation of all
close-out procedures respect the "FIDG and the final settlement and °con..lusion of
all issues arising out of the HDG.
20. The Owner acknowledges and agrees that no transfer of funds under
this Agreement shall be or be deemed to be an assignment - of HDG :funds, : and that
the Owner shall neither succeed to any rights, benefits or advances of the Grantee
under the Grant Agreement, nor attain privileges, _authorities,interests, or rights in
or under the Grant Agreement.
'21.:During the term of .the Grant Agreement, this Agreement shall not be
amended in any ,material respect without the prior written approval of HUD. An
Amendment shall be deemed to be "material" if, within the control of the Owner
or the Grantee, it cancels or reduces any developmental or financial obligation by
more than ten percent,. changes the sites or character of any development activity,
or increases any time for performance by more than thirty days.
22. The Owner acknowledges that nothing contained in the Grant
Agreement, or in this Agreement, nor : any act. of HUD, or of . any _af the partrPs
hereto, shall be deemed -or 'construed -by .the Owner, or. y -third -pers , ,to .create
any .relationship :of :third -party. -beneficiary, principal and -agent, limited . r : general
partnership, joint venture, or any association or relationship involving HUD.
23. The parties hereto . warrant that no person (1) - who is an employee,
agent, consultant, officer or elected or appointed official of the Grantee who
exercises or has exercised any functions or responsibilities with respect to the
Project or (2) who is in a position to participate in a decision making process or
gain inside .information with regard to such Project, may obtain _personal or
rrnsacial interest or benefit from` the Project, or have an interest in: any contract,
subcontract or agreement with 'respect thereto, °or' -the `proceeds thereunder, either
for themselves or those . with whom.. they have 'family or businpss ties, during their
tenure or for one year. thereafter.
24. The Owner and Grantee acknowledge that the ...Davis -Bacon Act, 40UBC
279a-276a-5: and the Contract .Work Hours and: Safety Standards Act, 40 USC 327
333 apply to: the :Project _The Owner _ and Grantee .`acknowledge that said acts and
Code :sections .are binding upon :the Grantee, all participating parties,
contracti..a` and subcontractors, 3nei+ii,rg the Owner. The-Owuer:.agrees = comply
with those Acts and regulations issued thereunder and with other Federal laws and
regulations pertaining to labor stanc1Rrds.
25. Disbursement of :funds :under this: Agreement shall be :on: the basis of
vouchers submitted by the Owner which ::shall ,.-be verifiedby th.e_, Owner's . chief
;:financial officer and" approved by: the Ma.yar of the.'City of ::National City: co behalf
of :the Grantee. I rsemients shall not be made ° at 'a rate .in~ excess of that
contained in the approved leveraging ratio for the Project, as specifiedin section
1.01(f) of the Grant Agreement.
• 26. The parties hereto acknowledge that the Grantee is obligated under the
Grant Agreement to monitor the Owner's performance under this Agreement and to
take legal action, as appropriate, to enforce compliance with the Owner's
responsibilities under this Agreement.
27. In the event the Grantee defaults hereunder or under the Grant
Agreement, the Grantee will forthwith take such steps as are necessary to correct
such default. The Grantee shall send to the Owner copies of any notices it
receives _from _MID .of any : violation .or .aiieged. 'violation of the Grant Agreement.
28. This Agreement may be amended only in writing, executed by the
Grantee and the Owner.
29. This Agreement :shA11 be binding upon_ and inure to .the benefit: of the
Grantee, the Owner and their. respective successors and assigns, except that the
Owner may net assign or transfer its rights hereunder to any party without the
written consent , of :the :Grantee.
30. This Agreement may be executed in as many counterparts as may be
deemed necessary and convenient, each of which shall be regarded for all purposes
as an original, but such counterparts shall constitute but one and the same
instrument.
Executed as of this 27th day of August, 1985.
CITY'"1TP_:NA GNAI Lair, r, A
ATTEST:
lone . Campell, _ City Clerk Kile Morgan, Mayor
ATTEST:
COMMUNITY _ITEi LOPMENT COM MI755TON
OP Tut, .'CITY OP` NA.TIONAL
Arnold A. Peterson Kite Morgan, (hnirman
• Secretary
• Tenant Eligibility
•
tr--.7.\ 1. The Owner may lease a Lower Income unit only to atnanttha is..a Lnwer
inraneJbauselhold at the:time of Its. initial inccuparicy.
2. In order to determine -whettin a prospective tenant or a tenant is a tower
• Income household, the Owner shall ascertain the annual incane of the family.
. Annual income is the anticipated total income .from all sources to be 'received
by the family head and spouse and by each additional member of the family,
including all net income derived from assets, for the 12-month period
following the effective date of initial determination or reexamination of incane,
exclusive of income that is temporary, nonrecurring or sporadic, as defined
in 24 CFR 813.106(c) and exclusive of certain other types of income specified
in 24 CFR 813.106(d). As necessary, the Owner will consult with the HUD
field office to obtain advice and guidance with respect to incane determinations.
The Owner must -verify all'incame. -assets, trouS.ehold -characteristics and
circumstances that affect eligibility. Written verification di rectly fran
the source must be obtained when possible. The Owner must maintain •
documentation of all verification efforts for ai least three years after the
effective date of the determinatinn.
4. In verifying incane the Owner shall to the extent feasible:
.„„
•
•(a) Maintain a checklist for each tenant, docurrenting verification -efforts
and tracking progress.
(b) Develop standard verification forms for all information that must be
verified. Such forms should: (1) explain why the information is
being requested; (2) contain the tenant's authorization to release -
information; and (3) ask specific questions that will solicit the
specific information requi red.
(z) Ask applicants/tenants to sign,ttio copies_ofach verification farm.
tct)' '.Senc1 self-adzfressed.,:itemped en_ve.lopes with -the request for
verification.
.(e) . Hake personal contacts with large elployers and otiblic agencies
from whom a large number of tenants receive -income. .
(f) Give the family an cpportUnity to explain any significint differences
• between the amounts they reported an their application and amounts
reported MI thirld-party verifications.
- S. The Owner shall reexamine the income of each tenant household living in
lower Inccrne units at least once a ,year.
L. The :Grantee•shall review the Owners verification efforts at least
annually to determine whether eligible families are occupying Lower
.units.
EXILIBIT 'lin 2
`7. :. 3n the event a tenant °is determined over -income, ,:the 'fawnerwill=. take ;pane of
the !allowing -actions,.; as:appropriate+. (a) :If the unit occupied by the tenant•;-m„st
be leased to a Lower Income household to maintain the percentage of Lower
Income units specified in the Grant Agreement, the Owner must notify the tenant
that it must move when the current lease expires or six months after the date of
the notification, whichever is later; (b) If the Owner can meet this percentage
without ..the unit occupied by the tenant (by leasing another unit to a Lower -Income
family at the appropriate schedule rent), the Owner may continue to lease to the
formerly Lower -Income family, but is free to renegotiate the rent at the expiration
of the current lease. Owner's actions in these cases shall be consistent with 24
CFR 850.151(e).
8.. The _.Owner ::shall .market .the ._units ...in...accordance _ with.. the HUD -approved
Affirmative :Fair :Homing Marketing :Plan, :and all fair ,housing and _equal;- pportunity
requirements.
9. With the exception of the income limit requirements the standards and
criteria for... tenant selection shall be .the .same .as.thosa.use,d for the market rent
units. J'
10. The Owner shall give priority in 120. of. the .150 units at Kimball . Towers to
Lower -Income- applicants and >priority in BD of the 120. Lower -Income units to very-, .0..444z,S1
low-income :applicants. ..:The Owner::si,AT1 undertake all .diligent. and :reasonable
efforts to find applicants meeting the proper income criteria.
11. The Owner shall annually submit information regarding very low income
tenants as needed for Grantee to review and approve changes in allowances for
utilities and other tenant paid services and for assuring that the rents charged and
collected by the Owner are in accordance with Exhibit B, item 2 of the Grant
Agreement. Evidence of this commitment shall be in accordance with Section 7.02
and Section 7.05 .of . the Grant Agreement.
Y