HomeMy WebLinkAbout2008 CON CDC Community Housing Works - First-Time Homebuyer ServicesAGREEMENT
BY AND BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF NATIONAL CITY
AND
COMMUNITY HOUSING WORKS, INCORPORATED
THIS AGREEMENT is entered into this 27th _ day of _August, 2008, by and
between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL
CITY, a community development commission (the "CDC"), and COMMUNITY HOUSING
WORKS, a 501 (c)(3) non-profit organization (the "CONTRACTOR").
RECITALS
WHEREAS, the CDC desires to employ a CONTRACTOR to provide First -Time
Homebuyer Services for 5 affordable For -Sale units located at Pacific View Estates, Fig Court
and Division Street, National City, CA..
WHEREAS, the CDC has determined that the CONTRACTOR is a non-profit
organization that provides a full range of housing services and is qualified by experience
and ability to perform the services desired by the CDC, and the CONTRACTOR is willing to
perform such services.
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR . The CDC hereby agrees to engage
the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services hereinafter
set forth in accordance with all terms and conditions contained herein.
The CONTRACTOR represents that all services required hereunder will be
performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR .
2. SCOPE OF SERVICES AND LOAN GUIDELINES. The CONTRACTOR
will perform services as set forth in the attached Exhibit "A".
The CONTRACTOR shall be responsible for all research and reviews related to
the work and shall not rely on personnel of the CDC for such services, except as authorized in
advance by the CDC. The CONTRACTOR shall appear at meetings cited in Exhibit "B" to keep
staff and City Council advised of the progress on the project.
The CDC may unilaterally, or upon request from the CONTRACTOR, from time to time
reduce or increase the Scope of Services to be performed by the CONTRACTOR under this
Agreement. Upon doing so, the CDC and the CONTRACTOR agree to meet in good faith and
confer for the purpose of negotiating a corresponding reduction or increase in the
compensation associated with said change in services, not to exceed a factor of 5% from the
base amount.
3. PROJECT COORDINATION AND SUPERVISION.
The Housing and Grants Division, Community Development Manager, hereby is
designated as the Project Coordinator for the CDC and will monitor the progress and execution
of this Agreement. The CONTRACTOR shall assign a single Project Director to provide
supervision and have overall responsibility for the progress and execution of this Agreement for
the CONTRACTOR. Gabe del Rio thereby is designated as the Project Director for the
CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be charged to the CDC for each purchase money loan. Billings shall
include labor classifications, respective rates, hours worked and also materials, if any. The total
cost for all work described in Exhibit "A" shall not exceed the schedule given in Exhibit "C" (the
Base amount) without prior written authorization from the CDC. Monthly invoices will be
processed for payment and remitted within thirty (30) days from receipt of invoice, provided that
work is accomplished consistent with Exhibit "A "as determined by the CDC.
The CONTRACTOR shall maintain all books, documents, papers, employee time
sheets, accounting records, and other evidence pertaining to costs incurred and shall make
such materials available at its office at all reasonable times during the term of this Agreement
and for three (3) years from the date of final payment under this Agreement, for inspection by
the CDC and for furnishing of copies to the CDC, if requested.
5. ACCEPTABILITY OF WORK. The CDC shall decide any and all
questions which may arise as to the quality or acceptability of the services performed and the
manner of performance, the acceptable completion of this Agreement and the amount of
compensation due. In the event the CONTRACTOR and the CDC cannot agree to the quality
or acceptability of the work, the manner of performance and/or the compensation payable to the
CONTRACTOR in this Agreement, the CDC or the CONTRACTOR shall give to the other
written notice. Within ten (10) business days, the CONTRACTOR and the CDC shall each
prepare a report which supports their position and file the same with the other party. The CDC
shall, with reasonable diligence, determine the quality or acceptability of the work, the manner
of performance and/or the compensation payable to the CONTRACTOR.
6. LENGTH OF AGREEMENT. Completion dates or time durations for
specific portions of the Project are set forth in Exhibit " D ".
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda,
Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the
CONTRACTOR for this Project, whether paper or electronic, shall become the property of the
CDC for use with respect to this Project, and shall be turned over to the CDC upon completion
of the Project, or any phase thereof, as contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONTRACTOR hereby
assigns to the CDC and CONTRACTOR thereby expressly waives and disclaims, any copyright
in, and the right to reproduce, all written material, drawings, plans, specifications or other work
prepared under this agreement, except upon the CDC's prior authorization regarding
reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR
shall, upon request of the CDC, execute any further document(s) necessary to further
effectuate this waiver and disclaimer.
The CONTRACTOR agrees that the CDC may use, reuse, alter, reproduce,
modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR
written work product for the CDC's purposes, and the CONTRACTOR expressly waives and
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disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to
intellectual property and artistic works.
Any modification or reuse by the CDC of documents, drawings or specifications
prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14
but only with respect to the effect of the modification or reuse by the CDC, or for any liability to
the CDC should the documents be used by the CDC for some project other than what was
expressly agreed upon within the Scope of this project, unless otherwise mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance
of this Agreement will be acting in an independent capacity and not as agents, employees,
partners or joint venturers with one another. Neither the CONTRACTOR nor the
CONTRACTOR'S employees are employee of the CDC and are not entitled to any of the rights,
benefits, or privileges of the CDC's employees, including but not limited to retirement, medical,
unemployment, or workers' compensation insurance.
This Agreement contemplates the personal services of the CONTRACTOR and
the CONTRACTOR's employees, and it is recognized by the parties that a substantial
inducement to the CDC for entering into this Agreement was, and is, the professional reputation
and competence of the CONTRACTOR and its employees. Neither this Agreement nor any
interest herein may be assigned by the CONTRACTOR without the prior written consent of the
CDC. Nothing herein contained is intended to prevent the CONTRACTOR from employing or
hiring as many employees, or subCONTRACTORs, as the CONTRACTOR may deem
necessary for the proper and efficient performance of this Agreement. All agreements by
CONTRACTOR with its subCONTRACTOR(s) shall require the subCONTRACTOR to adhere
to the applicable terms of this Agreement.
9. CONTROL. Neither the CDC nor its officers, agents or employees shall
have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR's
employees except as herein set forth, and the CONTRACTOR expressly agrees not to
represent that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are
in any manner agents, servants or employees of the CDC, it being understood that the
CONTRACTOR, its agents, servants, and employees are as to the CDC wholly independent
CONTRACTORs and that the CONTRACTOR's obligations to the CDC are solely such as are
prescribed by this Agreement.
10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the
performance of the services to be provided herein, shall comply with all applicable State and
Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City
of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each
of its subCONTRACTORs, shall obtain and maintain a current City of National City business
license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and
covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that
are legally required to practice its profession. The CONTRACTOR represents and covenants
that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the
term of this Agreement, any license, permit, or approval which is legally required for the
CONTRACTOR to practice its profession.
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12. STANDARD OF CARE.
A. The CONTRACTOR, in performing any services under this
Agreement, shall perform in a manner consistent with that level of care and skill ordinarily
exercised by members of the CONTRACTOR'S trade or profession currently practicing under
similar conditions and in similar locations. The CONTRACTOR shall take all special precautions
necessary to protect the CONTRACTOR's employees and members of the public from risk of
harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this agreement, the
CONTRACTOR warrants to the CDC that it is not now, nor has it for the five (5) years
preceding, been debarred by a governmental agency or involved in debarment, arbitration or
litigation proceedings concerning the CONTRACTOR's professional performance or the
furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any unique
products, treatments, processes or materials whose availability is critical to the success of the
project the CONTRACTOR has been retained to perform, within the time requirements of the
CDC, or, when no time is specified, then within a commercially reasonable time. Accordingly,
unless the CONTRACTOR has notified the CDC otherwise, the CONTRACTOR warrants that
all products, materials, processes or treatments identified in the project documents prepared for
the CDC are reasonably commercially available. Any failure by the CONTRACTOR to use due
diligence under this sub -paragraph will render the CONTRACTOR liable to the CDC for any
increased costs that result from the CDC's later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time frame
specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not
discriminate against any employee or applicant for employment because of age, race, color,
ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. The CONTRACTOR will take positive action to insure that applicants are
employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation,
marital status, national origin, physical handicap, or medical condition. Such action shall
include but not be limited to the following: employment, upgrading, demotion, transfer,
recruitment or recruitment advertising, layoff or termination, rates of pay or. other forms of
compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees
to post in conspicuous places available to employees and applicants for employment any
notices provided by the CDC setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATION. The CDC may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR
shall treat all such information as confidential and shall not disclose any part thereof without the
prior written consent of the CDC. The CONTRACTOR shall limit the use and circulation of such
information, even within its own organization, to the extent necessary to perform the services to
be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any
part of the information that (i) has been disclosed in publicly available sources of information; (ii)
is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of
information; (iii) is already in the possession of the CONTRACTOR without any obligation of
confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a
third party, but only to the extent that the use or disclosure thereof has been or is rightfully
authorized by that third party.
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The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CDC. In its performance hereunder, the
CONTRACTOR shall comply with all Legal obligations it may now or hereafter have respecting
the information or other property of any other person, firm or corporation.
CONTRACTOR shall be liable to CDC for any damages caused by breach of this
condition, pursuant to the provisions of Section 14.
15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR
agrees to defend, indemnify, and hold harmless the Community Development Commission of
the City of National City, its officers and employees, against and from any and all liability, loss,
damages to property, injuries to, or death of any person or persons, and all claims, demands,
suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or
nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or
arising out of the CONTRACTOR's negligent performance of this Agreement.
16. WORKERS' COMPENSATION. The CONTRACTOR shall comply with
all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of
California, the applicable provisions of Division 4 and 5 of the California Government Code and
all amendments thereto; and all similar state or Federal acts or laws applicable; and shall
indemnify, and hold harmless the CDC and its officers, and employees from and against all
claims, demands, payments, suits, actions, proceedings and judgments of every nature and
description, including reasonable attorney's fees and defense costs presented, brought or
recovered against the CDC or its officers, employees, or volunteers, for or on account of any
liability under any of said acts which may be incurred by reason of any work to be performed by
the CONTRACTOR under this Agreement.
17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall
purchase and maintain, and shall require its subCONTRACTORs, when applicable, to purchase
and maintain throughout the term of this agreement, the following insurance policies:
® A. If checked, Professional Liability Insurance (errors and omissions) with
minimum limits of $1,000,000 per occurrence.
B. Automobile insurance covering all bodily injury and property damage
incurred during the performance of this Agreement, with a minimum coverage of $1,000,000
combined single limit per accident. Such automobile insurance shall include owned, non -
owned, and hired vehicles ("any auto").
C. Commercial general liability insurance, with minimum limits of $1,000,000
per occurrence/$2,000,000 aggregate, covering all bodily injury and property damage arising
out of its operations under this Agreement.
D. Workers' compensation insurance in an amount sufficient to meet
statutory requirements covering all of CONTRACTOR'S/CONSULTANT'S [CHOOSE ONE]
employees and employers' liability insurance with limits of at least $1,000,000 per accident. In
addition, the policy shall be endorsed with a waiver of subrogation in favor of the CDC. Said
endorsement shall be provided prior to commencement of work under this Agreement.
E. The aforesaid policies shall constitute primary insurance as to the CDC,
its officers, employees, and volunteers, so that any other policies held by the CDC shall not
contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior
written notice to the CDC of cancellation or material change.
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F. Said policies, except for the professional liability and workers'
compensation policies, shall name the CDC and its officers, agents and employees as
additional insureds, and separate additional insured endorsements shall be provided.
G. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years
after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date
must be on or before the date of this Agreement.
H. Any aggregate insurance limits must apply solely to this Agreement.
I. Insurance shall be written with only California admitted companies which
hold a current policy holder's alphabetic and financial size category rating of not less than A VIII
according to the current Best's Key Rating Guide, or a company equal financial stability that is
approved by the National City Risk Manager. In the event coverage is provided by non -admitted
"surplus lines" carriers, they must be included on the most recent California List of Eligible
Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements.
J. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with and approved by
the National City Risk Manager. If the CONTRACTOR does not keep all of such insurance
policies in full force and effect at all times during the terms of this Agreement, the CDC may
elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and
terminate the Agreement as provided herein.
K. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by the CDC.
18. LEGAL FEES. If any party brings a suit or action against the other party
arising from any breach of any of the covenants or agreements or any inaccuracies in any of
the representations and warranties on the part of the other party arising out of this Agreement,
then in that event, the prevailing party in such action or dispute, whether by final judgment or
out -of -court settlement, shall be entitled to have and recover of and from the other party all
costs and expenses of suit, including attorneys' fees.
For purposes of determining who is to be considered the prevailing party, it is
stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall
not be considered in determining the amount of the judgment or award. Attorney's fees to the
prevailing party if other than the CDC shall, in addition, be limited to the amount of attorney's
fees incurred by the CDC in its prosecution or defense of the action, irrespective of the actual
amount of attorney's fees incurred by the prevailing party.
19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this
Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the
dispute by mediation in San Diego, California, in accordance with the Commercial Mediation
Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The
costs of mediation shall be borne equally by the parties. Any controversy or claim arising out
of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be
settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration
Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the
parties, and a judgment thereon may be entered in any court having jurisdiction over the subject
matter of the controversy. The expenses of the arbitration shall be borne equally by the parties
to the arbitration, provided that each party shall pay for and bear the costs of its own experts,
evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part
thereof against a specified party as part of the arbitration award.
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20. TERMINATION. A. This Agreement may be terminated with or without
cause by the CDC. Termination without cause shall be effective only upon 60-day's written
notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all
services in accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CDC for
cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance of
services, or the failure to perform services as directed by the CDC.
C. Termination with or without cause shall be effected by delivery of written
Notice of Termination to the CONTRACTOR as provided for herein.
D. In the event of termination, all finished or unfinished Memoranda Reports,
Maps, Drawings, Hans, Specifications and other documents prepared by the CONTRACTOR,
whether paper or electronic, shall immediately become the property of and be delivered to the
CDC, and the CONTRACTOR 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 the Notice of Termination, not to exceed the amounts payable hereunder, and less any
damages caused the CDC by the CONTRACTOR's breach, if any. Thereafter, ownership of
said written material shall vest in the CDC all rights set forth in Section 6.
E. The CDC further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a
reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization, change in business name or change in business status of the CONTRACTOR.
21. NOTICES. All notices or other communications required or permitted
hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail
(Federal Express or the like); or sent by registered or certified mail, postage prepaid, return
receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or
delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the
earlier of (i) if personally delivered, the date of delivery to the address of the person to receive
such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight
mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if
the address is outside the State of California) after the date of deposit in a post office, mailbox,
mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if
given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or
(v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand,
direction or other communication delivered or sent as specified above shall be directed to the
following persons:
To the CDC:
To the CONTRACTOR:
Community Development Manager
Community Development Commission
of the City of National City
1243 National City Boulevard
National City, CA 91950-4301
Vice President
Lending and Homeownership
Community Housing Works
4350 University Avenue, Suite 550
San Diego, CA 92105
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Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver because
of changed address of which no notice was given shall be deemed to constitute receipt of the
notice, demand, request or communication sent. Any notice, request, demand, direction or
other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within
forty-eight (48) hours by letter mailed or delivered as specified in this Section.
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform
services of any kind for any person or entity whose interests conflict in any way with those of
the CDC. The CONTRACTOR also agrees not to specify any product, treatment, process or
material for the project in which the CONTRACTOR has a material financial interest, either
direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR
shall at all times comply with the terms of the Political Reform Act and the National City Conflict
of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its
official position to influence in any way any matter coming before the CDC in which the
CONTRACTOR has a financial interest as defined in Government Code Section 87103. The
CONTRACTOR represents that it has no knowledge of any financial interests that would require
it to disqualify itself from any matter on which it might perform services for the CDC.
❑ If checked, the CONTRACTOR shall comply with all of the reporting
requirements of the Political Reform Act and the National City Conflict of Interest Code.
Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk
of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain
from the City Clerk.
The CONTRACTOR shall be strictly liable to the CDC for all damages, costs or
expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by the
CONTRACTOR.
23. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in
this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such
date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a
Saturday, Sunday or federal, state or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one
and the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are
hereby incorporated herein by this reference for all purposes.
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
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G. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
H. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between
the parties as to the subject matter hereof. No subsequent agreement, representation, or
promise made by either party hereto, or by or to an employee, officer, agent or representative
of any party hereto shall be of any effect unless it is in writing and executed by the party to be
bound thereby.
J. Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the successors and assigns of the parties hereto.
K. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation
and negotiation of this Agreement, (iii) each such party has consulted with or has had the
opportunity to consult with its own, independent counsel and such other professional advisors
as such party has deemed appropriate, relative to any and all matters contemplated under this
Agreement, (iv) each party and such party's counsel and advisors have reviewed this
Agreement, (v) each party has agreed to enter into this Agreement following such review and
the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are
to be resolved against the drafting party shall not apply in the interpretation of this Agreement,
or any portions hereof, or any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date and year first above written.
COMMUNITY DEVELOPMENT COMMISSION COMMUNITY HOUSING WORKS
OF THE CITY OF NATIONAL CITY (Corporation — signatures of two corporate
officers)
B
aulston, Executive Director
By:
APPROVED AS TO FORM: By:
George H. Eiser, III
Legal Counsel
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9
EXHIBIT A
Scope of Services and Loan Guidelines
CONTRACTOR will provide full -cycle -lending, that will promote,
educate, counsel and assist first time homebuyers through the
entire process. Services to be delivered are out outlined below:
• Waiting List: CONTRACTOR shall contact, in chronologcal
order, each potential first-time owner to determine program
interest and begin the loan origination process.
• Outreach: If needed, CONTRACTOR will provide neighborhood
outreach via flyers and brochures in various locations of
high civic traffic in the City of National City.
• Education: CONTRACTOR will provide an 8+hour HUD and
NeighborWorks Certified Home Buyer Education in English and
Spanish for interested residents prior to pre -qualification.
• Pre -qualification: CONTRACTOR will pre -qualify each
homebuyer that has completed an 8+ hour HUD and
NeighborWorks Certified Home Buyer Education course.
• Lending: CONTRACTOR will administer the Pacific View
homeownership loan program according to the program
guidelines provided in the Loan Guidelines described in this
Exhibit. This will include taking applications for the
program, underwriting, loan document preparation and loan
closing. CONTRACTOR will provide one-on-one in person client
intake and applications for the Pacific View Estate first-
time purchasers, while leveraging the City's funds by pre -
qualifying the client for any and all other assistance
possible through CONTRACTOR. Pre -qualification appointments
will be made after a client has graduated any 8-hour HUD
certified Home Buyer Education course offered by most HUD
approved agencies. CONTRACTOR shall bill the city at the end
of each month for the loans closed during the month.
LOAN GUIDELINES
The purpose of these program guidelines is to describe the City's
program requirements for 5 affordable For -Sale units located at
Pacific View Estates, Fig Court and Division Street, National
City, CA. This document contains a description of the CDC's
requirements, processing procedures and program administration.
Participating lenders are expected to be well informed about all
the HOME Investment Partnership restrictions so that applicants
are aware of these restrictions before application is accepted.
The lender will reject those applications when the information
submitted indicates that the applicant does not qualify for the
program.
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GOAL
The goal of the Pacific View First -Time Homebuyers Programs is to
make home ownership a reality for low income families in the City
of National. City.
BORROWER ELIGIBILITY REQUIREMENTS
Both federal and state law set borrower eligibility requirements.
Income guidelines are modified based on federal directives every
twelve to eighteen months.
A. Eligible Borrower
1. Qualified applicants must be first-time homebuyers. The
applicant may not have held an ownership interest in his/her
Principal Residence within the past three years. This
timeframe includes those 36 months previous to the date the
mortgage is executed. In the case of a married couple, both
parties must meet this requirement. The buyer, spouse and
any other parties who will be listed on the title must meet
this requirement. The Lender must verify this through
his/her examination of the applicant's federal tax returns
for the preceding three years. The Applicant(s) cannot have
claimed a deduction for mortgage interest or taxes on real
property claimed as a Principal Residence.
2. To demonstrate compliance with this requirement, Applicants
must complete and sign the First-time Homebuyer Application
and provide copies of their last two (2) years signed
federal tax returns (or acceptable alternative exhibits).
a) The applicant(s) can provide the signed 1040A or
1040EZ or 1040 federal income tax forms for the
preceding years, including all schedules. These
forms shall be submitted to the lender and forwarded
to the City with the completed loan application.
The tax returns must be signed and dated in blue ink
by the applicants.
b) If the Applicant(s) has/have filed the short, 1040A,
1040EZ for the last two (2) years, completes and
signs the required affidavits, but is unable to
produce copies of the signed returns, the City will
accept a completed copy of the IRS Letter Form1722
in lieu of actual returns. The Applicant my request
this letter, free of charge, from the local IRS
Office. The Letter 1722 must include the signature
of a representative of the IRS. Letter Form 1722
should include the following information.
i. Name and social security number
ii. Type of return filed
iii. Marital status
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iv. Tax shown on return
v. Adjusted gross income
vi. Taxable income
vii. Self-employment tax
viii. Number of exemptions
c) In the event the Applicant(s) was not obligated to
file federal income tax returns for any of the
preceding two (2) years, it will be necessary for
the Lender to obtain a completed and signed income
Tax Affidavit, which is required in place of the
above. This document is to be forwarded to the City
with application package.
d) If neither copies of the required tax returns or the
1722 Form can be obtained, the Lender may be able to
help the Applicant establish first-time homebuyer
status with copies of utility bills and a signed and
notarized statement from the Applicants landlords
for the previous two (2) years.
e) When the Commitment issued during the period between
January 1 and February 15 and the Applicant has not
yet filed his/her/their Federal Income Tax Return
for the preceding year, the City may rely on an
affidavit. The affidavit must affirm that the
Applicant is not entitled to claim deductions for
taxes or interest on a principal residence for the
preceding year. After February 15, a tax return
will be required.
3. Upon close of escrow, the buyer must occupy the home as
their Principal Residence.
4. Applicant(s) need not be a U.S. Citizen. Legal resident
aliens are eligible to apply but must show proof of status.
B. Income Criteria
1. Income - Income must be at or below 80% of the currently
published San Diego County median income, adjusted for
household size. Income limits have been established by the
U.S. Department of Housing and Urban Development and are
adjusted annually. In accordance with this requirement,
applicants may not obtain "stated income" loans. The true
income must be a qualifying factor in loan approval.
Household
1
2
3
4
5
6
7
$78,
Size
Annual
Income
$44,250
$50,550
$56,900
$63,200
$68,250
$73,300
350
$83,400
2 Gross Income is calculated by taking the Applicant's
anticipated adjusted gross monthly income, at the time of
application, and multiplying it by twelve. Adjusted gross
12
income includes the gross amount of all taxable income,
before payroll deductions of: wages, salaries, commissions,
fees, tips and bonuses, alimony, public assistance, etc.
The adjusted gross income also includes the income earned on
assets, such as dividends earned on stock and interest
earned on savings and checking. The adjusted gross income
qualification is pursuant to the 24 CFR 92.203 (b)(3) for
reporting under the IRS Form 1040 series for individual
federal annual income tax purposes. Gross income includes
the combined taxable adjusted gross income of all mortgages
and all other adult members of the households.
a. Self- Employed or Seasonal Employees: The formula
that the Lender uses to determine the anticipated gross
monthly income of self-employed and /or seasonal
workers is acceptable provided that all income as
described in this manual is included in the
calculation.
b. Co-Borrower/Co-Mortgage: If a co -borrower or co -
mortgagor will be on both the title and the deed of
trust, his/her income must be included in determining
eligibility for the program. The IRS regulation states
"income to be taken into account in determining gross
income is income of the mortgagor(s) and any other
person who is expected to both live in the residence
being financed and to be secondarily liable on the
mortgage.
c. Spouses: Married couples are treated as co -
applicants, whether: 1) they are separated; 2) either
spouse is applying for the loan; or 3) either spouse
plans to be named on title.
d. Computing Income:
i. Program computation vs. Mortgage Underwriter
Computation: The city loan figure represents
Anticipated income, while the Lender's figure
represents income AVERAGE overt he last few years
and the City program requires that every source of
taxable and non-taxable income be listed on the
Income Computation Worksheet, however, non-taxable
income should be bracketed and not added in to the
maximum annual family income calculation.
ii. Income Parameters: See Appendix A of this
Exhibit for examples of sources of income, which
must be considered in computing buyer income.
iii. Self -Employed: Year-to-date profit and loss
statement and three prior year's tax returns are
required.
iv. Other income: Sources of income other than wages
must be documented by third party verifications.
In cases where the third party fails to respond,
acceptable alternative sources of documentation
can be determined on a case -by -case basis and
13
should follow standard FNMA income verification
guidelines.
v. Documentation: In cases where the Applicant is
employed, acceptable sources of documentation used
to verify income include a recent pay stub with
year-to-date earnings and an employer Verification
of earnings statement (VOE). If the application
is taking place during the first four months of
the year, a year-to-date total may be
insufficient. The Lender must supplement the pay
stub information with the prior year W-2 statement
and /or tax returns. On some pay stubs, the year-
to-date earnings include pay from the last part of
the prior year. If this is determined to be the
case, request that the employer submit a signed
statement of verification of exact year-to-date
income. Miscalculation can result in the
determination of excess income and
disqualification of the buyer.
vi. Income Verification: The Lender bears the burden
of proving that the Buyer's income is within the
program guidelines. The computation should be
clear, complete, and documentation by third party
verifications, to the greatest extent possible.
vii. No Income: Adult members, 18 years and older, of
the household who have no income must complete and
sign the Declaration of No Income Form.
viii. Applicants must have a FICA score at 640 or above.
C. Household
Households shall have sufficient income and credit-
worthiness to qualify for primary financing from a
participating lender.
Calculation of Income?
3. First- time homebuyers. Applicants must not have had an
ownership interest in residential property within the last
three (3) years. In the case of married couples, both
parties who will be listed on title must meet this
requirement. Other parties to be listed on title must also
meet this requirement.
4. Homebuyer Education. After pre -qualification, the homebuyer
must attend homebuyer education, and orientation counseling.
Homebuyer Education - This 8--hour, HUD certified class for
first-time homebuyers qualifies graduates for various local
14
and state loans, reduced rates with some lenders, and pre -
qualification counseling. Classes are offered several times
a month in both English and Spanish across San Diego
County.
Pre -qualification sessions - This session allows the
applicant to meet with bank partners who will review an
applicants credit report, income and current situation and
let them know what they can afford to purchase.
Eligible Properties
1 Properties must be specific lots located within the Pacific
View LLC single family development located adjacent to Fig
Court and National City, CA as identified by the CDC.
Maximum Purchase Price
The purchase price must not exceed HUD Section 203(b) maximum
single family mortgage limits ($362,790). The maximum purchase
price may be adjusted by HUD from time to time.
Loan Terms
All applicants must meet bank qualification standards, but must
not pay more than 35% in housing related and 42% in total debt.
Non -occupied co --borrowers will not be allowed.
The financing structure must follow Appendix A of this agreement.
Modifications to Exhibit A are allowed provided the CDC staff
approves changes and will be used as a working document.
The City will offer equity sharing loans for low income (80% AMI)
first-time homebuyers. Payment will be deferred until resale of
the home, upon the refinancing of the home, or upon the transfer
of the title. The property must remain owner -occupied during the
term of the loan.
Applicant must assume proportionate share of principal and
interest as described in Exhibit E.
The program may provide up to 100% (L/V) financing and utilize
other local, federal and state resources as needed. The borrower
must meet credit requirements imposed by a City of National City
approved lender.
Loans shall be secured by Deed of Trust and a Promissory Note.
Reserve/Down Payment Requirement
15
All buyers must have at least a 2% reserve in a savings account
and/or provide a 2% down payment using their own personal money
(not a gift).
Property Values
Type of Housing Unit
Properties must be maintained during the term of the loan.
Properties must meet all applicable State and local housing
quality standards and code requirements during the term of the
loan.
Resale Or Recapture Provisions
Repayment of the loan shall be triggered by sale, refinance for
cash -out or debt consolidation purposes, renting of the unit, or
transfer or change of title to the property.
INCOME
GROSS ANNUAL INCOME
Gross annual income is defined as the anticipated annualized
gross taxable income of a mortgagor (or mortgagors) and adult
members of the household. Annualized income is the sum of
monthly gross taxable income multiplied by twelve (12). Gross
monthly income includes all taxable sources of income derived
from: gross pay, overtime compensation, part-time employment
earning, bonuses, dividends, interest, royalties, pensions,
Veterans Administration (VA) compensation, net rental income,
alimony, public assistance payments, sick pay, social security
benefits, unemployment compensation, income received from trusts,
income received from business activities or investments, and any
other source of taxable income not listed above.
Information regarding income must be current within the most
recent 30-day period preceding loan closing. Income not included
by the Lender, but listed above, must be added to the Lender's
income total on the "Income' Computation Worksheet" income
eligibility calculation for the City loan program. Income of the
mortgagor (or mortgagors) and any other adult who is expected to
live in the residence being financed must also be included in the
household income calculation. All non-taxable income must be
listed and bracketed on the "Income Computation Worksheet", but
not counted when calculating the annual gross family income.
In summary, income of all mortgagors (on both title and deed of
trust) shall be included in the gross income calculation for the
16
program. Additionally, the income of any adult who will live in
the residence should be included. For married couples, income
includes the income of both spouses, whether or not on title.
MILITARY PAY
For purposes of computing the buyer's gross monthly income, the
monthly income is the "total entitlement" shown on the
applicant's most recent monthly Leave and Earnings Statement and
includes all regular pay, special pay and allowances. Non -taxed
income, such as a housing allowance is not counted as income, but
must be listed and bracketed. Certain categories of pay, which
may be received only sporadically, may need to be considered on a
case -by -case basis.
17
EXHIBIT B
Meeting Schedule and Reports
The Contractor agrees to meet on an as needed basis and to
provide information covering the Scope of Work. Contractor
further agrees to provide updated monthly written reports to
demonstrate progress made toward achieving their stated goals:
o Outreach and Waiting List
o Home Buyer Education Graduates
o National City FTHB HOME Funds Pipeline Report
o Loan Servicing Report for Loan Portfolio
Outreach, Education, and HOME funds pipeline reports shall cover
each month until all five homebuyer sites are closed and due no
later than 10 days after the end of each month. Loan Service
reports shall continue until such time that all loans are paid in
full.
18
EXHIBIT C
Fees for Services
Fee Type
Amount
Frequency
Description of Work
Underwriting Fee
$650
employee
performance
evaluation
join us on
either
August 5,
2008 at 2
p.m. and
August 7,
2008 at 11
a.m.
Per Loan
Closed
Includes compliance,
credit, asset, income,
appraisal, and final
disposition of file to
close.
First Time
Homebuyer Class
$40
Per pre-
qualified
applicant
_
Includes all materials
and can include other
family members up to
four (4) .
Loan Origination
and Education
1%
Origination
Fee
($1,772)
Per City
Loan
Closing
For loan origination
services on each loan,
pre -purchase
counseling, post -
purchase counseling,
education and all
other services
provided to clients by
CONTRACTOR.
Processing Fee
$350
Collection of
documentation,
application, and
initial compliance.
Total per Loan
(approximate)
(5 loans
maximum)
$2,812
14,060
Killing sent monthly along with reporting and backup
19
EXHIBIT D
Length of Agreement and Goals
The term of this Agreement shall be six (6) months commencing August 15,
2008 and ending February 15, 2003. This agreement maybe extended for an additional six (6)
months if warranted. CONTRACTOR shall begin providing services by the dates mentioned
below and will continue throughout the term of this contract.
Outreach and Waiting List: Immediately after execution of this agreement, CONTRACTOR
will begin contacting waiting list applicants. Should the waiting list become exhausted,
CONTRACTOR will begin outreach efforts via flyers and brochures immediately upon first
indications that waiting list will not be sufficient to approve the total amount of purchasers
needed.
Education: CONTRACTOR will begin to provide an 8+hour HUD and NeighborWorks
Certified Home Buyer Education in English and Spanish for interested families on the
waiting list within 15 days from the date of this agreement.
Lending: CONTRACTOR will administer the National City homeownership loan program
effort at Pacific View Estates according to the program guidelines provided on or before
August 15, 2008. CONTRACTOR will strive to close 5 homeownership loans by November,
2008.
20
Area Median Income for Family of 5
Total Units
Affordable
Size
$ 75,000
49 Single Family Units
5 Single Family Units
1500 Square Feet
APPENDIX A
Pacific View Estates 1
FAMILY LOAN ANALYSIS
Borrower
Market
Sales
Affordable
Sales
80% of AMI
Housing
Costs
Monthly
Utilities
Taxes
HOA
Insurance
Total Other Hsg
Cost*
Mortgage
Payment
Private Loan
CDC Loan
Purchase
Price
Family 1
$ 425,000'
$, 338,059
5 68,250
$ 20,475
$ 1,706
$ 162
$ 354
$ 123
$ 50
$ 689
$ 1,017
$ 160,914
$ 177,145
$ 338,059
Family 2
$ ;425,000;
$ 338,059
$ 68,250
$ 20,475
$ 1,706
$ 162
$ 354
$ 123
$ 50
$ 689
$ 1,017
$ 160,914
$ 177,145
$ 338,059
Family 3
$ 425,000
$ 338,044
$ 68,250
$ 20,475
$ 1,706
$ 162
$ 354
$ 123
$ 50
$ 689
$ 1,017
$ 160,914
$ 177,130
$ 338,044
Family 4
$ 425,000
$ 338,066
$ 68,250
$ 20,475
$ 1,706
$ 162
$ 354
$ 123
$ 50
$ 689
$ 1,017
$ 160,914
$ 177,153
$ 338,066
Family 5
$ 425,000
$ 338,066
$ 68,250
$ 20,475
$ 1,706
$ 162
$ 354
$ 123
$ 50
$ 689
$ 1,017
$ 160,914
$ 177,153
$ 338,066
CDC LOAN AND INDIVIDUAL LOAN CALCULATIONS
CDC LOAN
INDIVIDUAL LOANS
Loan DDA $ 810,000
Homeowner share $ 162,000
Interest 4.57%
November 29.2005
November 29. 2006
November 29. 2007
Balance
Family 1
Family 2
Family 3
Family 4
Family 5
Totals
Principal Interest P/I Balance
$ 810,000 $ -
$ 810,000 $ 37,017 $ 847,017
$ 38,709 $ 885,726
$ 810,000 $ 75,726 $ 885,726
$ 810,000 $
$ 648,000 $
$ 486,000 $
$ 324,000 $
$ 162,000 $
75,726 $
60,581 $
45,435 $
30,305 $
15,153 $
885,726
708,581
531,435
354,305
177,153
Principal Interest CDC Loan
$ 162,000
$ 162,000
$ 162,000
$ 162,000
$ 162,000
$ 810,000
$ 15,145
$ 15,145
$ 15,130
$ 15,153
$ 15,153
$ 75,726
$ 177,145
$ 177,145
$ 177,130
$ 177,153
$ 177,153
$ 885,726
KEY HUD TESTS
Section 203(b) Max Loan Limit
Actual Purchase Price
Maximum Per unit subsidy
$ 362,790
$ 338,066
$ 235,584
TRUE
TRUE
*OTHER HOUSING COSTS
Taxes Assessments
Mello Roos
Property Insurance
HOA Fees
Utility Costs
P and I
Total
Annual
$ 4,250
$
5
$
600
1,476
1,944
Monthly
$ 354
$ -
$ 50
$ 123
5 162
$ -
$ 689
ASSUMPTIONS
Interest
Term
Market Sales
Utilities
Taxes
Insurance
HOA
7%
30
$ 425,000
Section 8 /4bdrm
1% of Market Value
$600 per year
$ 123 per month
8/6/20084:36 PM
,�..� CA1.1FORNIA -
NATIONAL CITY
1'8
/NCORPCon ATED
OFFICE OF THE CITY CLERK
1243 National City Blvd., National City, CA 91950
619-336-4228 phone • 619-336-4229 fax
COMMUNITY HOUSING WORKS, INC.
First -Time Homebuyer Services for Units Located
at Pacific View Estates, Fig Court
and Division Street
Alfredo Ybarra (Housing & Grants) Forwarded
Copy of the Contract to the Vendor