HomeMy WebLinkAboutCity of Buena Park - 2009-06-01Council/Agency Meeting Held:
Deferred/Continued to:
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App ove ❑ C nditionally Approved ❑ Denied
�' Citty lerk' Signatu e
Council Meeting Date: 6/1/2009
Department ID Number: ED 09-28
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL
MEMBERS/REDEVELOPMENT AGENCY MEMBER
SUBMITTED BY: FRED A. WILSON, City Administrator/ Executive Dir
PREPARED BY: STANLEY SMALEWITZ, Director of Economic Devel ment/ Deputy %+
Executive Director
SUBJECT: Approve Joint Powers Agreement w/ City of Buena Park — NSP Funding
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue: A Joint Powers Agreement with the City of Buena Park is submitted
for consideration. The Joint Powers Agreement outlines each of the roles and
responsibilities between the Neighborhood Stabilization Program (NSP) partnership of
Huntington Beach (Lead Agency) and Buena Park (sub -recipient).
Funding Source: Redevelopment Housing Set -Aside Funds (30680301.89250) of
$1,050,000, an additional amount of $411,000 from Neighborhood Stabilization Funds will
also be received from the Federal Government as well as 5% of all NSP funds received
(including Buena Park's) will be retained for administrative expenses to be used for housing
purchase and rehabilitation expenses, and down payment assistance to eligible low and
moderate income home buyers.
Recommended Action: Motion to:
1. Authorize City Administrator to sign the Participating Public Jurisdiction Joint
Agreement to Participate in the Neighborhood Stabilization Program with the City of
Buena Park.
2. Approve the Agreement Between the City of Huntington Beach and the City Buena
Park For Allocation of Neighborhood Stabilization Funds. Authorize the Mayor or City
Clerk to sign the Agreement.
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 6/1/2009 DEPARTMENT ID NUMBER: ED 09-28
3. Approve Resolution of the City Council of the City of Huntington Beach Approving An
Application For Funding and the Execution Of A Grant Agreement And Any
Amendments Thereto From the State of California Neighborhood Stabilization
Program (NSP).
Alternative Action(s):
Do not authorize the Mayor and Clerk to sign Agreements and direct Staff to not proceed
with joint application for NSP funds with the City of Buena Park.
Analysis: The Housing and Economic Recovery Act of 2008 (H.R. 3221) includes $3.9
billion in U.S. Department of Housing and Urban Development (HUD) federal block grant
for the Neighborhood Stabilization Program (NSP) which addresses the housing crisis
through the provision of funds to purchase vacant and foreclosed properties. The City of
Huntington Beach did not receive a direct allocation of NSP funds, which HUD provided to
communities of greatest need based on rate of foreclosures. However, the City can access
funds through the State of California Housing and Community Development Department
(HCD), which received $145 million in NSP funds to assist cities, and counties that did not
receive direct allocations from HUD. HCD will allow these jurisdictions to apply for funds if
they combine with other jurisdictions through a joint agreement to reach a minimum
threshold of $1 million. The City of Huntington Beach, along with the City of Buena Park,
can enter into a joint agreement and file a joint application to the State for a combined total
of $1,000,132 in NSP grant funds. If approved, a joint agreement with the City of Buena
Park will be executed and an application will be submitted to the State for NSP funds.
Future NSP funding available through the American Recovery and Reinvestment Act of
2009, may be contingent upon successful implementation of a prior project funded under
this program.
The HCD has created a method where cities are broken into two categories, Tier 1
(receiving over $1 M) or Tier 2 (receiving less than $1 M). In Orange County, 17 cities
including Huntington Beach and the City of Buena Park were designated at Tier 2 cities. In
order to apply to the State for NSP funds, Tier 2 cities within the same county must enter
into joint agreement to reach the minimum threshold of $1 M. The Joint Agreement is
attached with the proposed Resolution to use these funds, along with another $1,050,000
in RDA funds, to implement a City-wide First -Time Homebuyer Downpayment Assistance
Program. If approved by Council, the City will enter into this Joint Agreement with the City
of Buena Park. Due to the application cutoff of June 15th, Buena Park will approve the
Agreement after Huntington Beach on June 9th. After approval of the Joint Agreement,
Huntington Beach will submit an application to the State for NSP funds on behalf of Buena
Park. The City of Huntington Beach will act as the lead entity and will become the direct
NSP grant recipient. Buena Park will become sub -recipient to the City of Huntington Beach
through the Joint Agreement. Consistent with HUD regulations, Huntington Beach must
assume responsibility for administering the State NSP grant on behalf of Buena Park in the
joint agreement and to comply with applicable program requirements. As the grant
-2- 5/27/2009 8:37 AM
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 6/1/2009 DEPARTMENT ID NUMBER: ED 09-28
recipient, Huntington Beach will apply to the State through a Notice of Funding Availability
(NOFA) application. The State requires that NSP funds be made available, as mandated
by HUD, to address the problem of abandoned and foreclosed homes and be targeted to
areas based on greatest need, including those with the greatest percentage of home
foreclosures, highest percentage of homes financed by a sub prime mortgage related loan,
and areas identified by the State as likely to face a significant rise in the rate of home
foreclosures. The Program will target individuals and families whose incomes do not
exceed 120 percent of area median income. The NOFA requires citizen input on what NSP
activities should be included in the funding process. Buena Park held their Design Phase
Public Participation meeting on May 20t". The City of Huntington Beach held theirs on May
215t. The activities that may be undertaken using NSP grant funds include:
1. The establishment of financing mechanisms for the purchase and redevelopment of
foreclosed homes and residential properties, including such mechanisms as soft -
seconds, loan loss reserves, and shared -equity loans for low-, moderate- andmiddle
income homebuyers;
2. The purchase and rehabilitation of homes and residential properties that have been
abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and
properties;
3. The establishment of land banks for homes that have been foreclosed upon;
4. The demolishment of blighted structures; and
5. The redevelopment of demolished or vacant properties.
The City of Huntington Beach will be creating a Down Payment Assistance Program and
focus on Activity #1, establishment of financing mechanisms. Eligibility will be determined
by the NSP guidelines which closely follow CDBG guidelines. Other eligibility criteria for
the Down Payment Assistance Program will include:
• Homes can only be purchased in certain, eligible census tracts and the buyer cannot
make more than 120% AMI.
• The eligible census tracts are located in the CDBG Target Area and are areas that
have been affected by multiple foreclosures.
• The City will give down payment assistance based on bedroom size: $50,000 1 BR,
$75,000 2BR, $100,000 3BR +
• The buyer must have good credit and be able to obtain a conventional mortgage as
we are not a lender.
• The buyer must attend a home buying education class
• Buyers may be eligible for the City's rehab loan program as well
• Priority given to HB residents or employees who work in HB.
• To meet matching funds requirement, the Agency will add $1,050,000 in set -aside
housing funds that can be used to purchase homes throughout the City.
If Buena Park cannot allocate all of their funds, as lead agency. HB will have first chance to
use the funds before they go to the State. If the City of Huntington Beach cannot obligate
their funds per the State's timelines, the City would only consider using the funds for
.3. 5/27/2009 8:37 AM
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
MEETING DATE: 6/1/2009 DEPARTMENT ID NUMBER: ED 09-28
Activity #5, the redevelopment of demolished or vacant properties. Finally, as lead
agency, HB gets 5% of all funds to use for Administrative costs.
Strategic Plan Goal: L-3 Preserve the quality of our neighborhoods, maintain open space,
and provide for the preservation of historic neighborhoods.
Environmental Status: Not applicable.
Attachment(s):
Page Nomber•
Destription
1
Participating Public Jurisdiction Joint Agreement to Participate in
the Neighborhood Stabilization Program
2
Agreement Between the City of Huntington Beach and the City
Buena Park For Allocation of Neighborhood Stabilization Funds
3
Resolution Approving An Application For Funding and Execution of A
Grant Agreement and Any Amendments Thereto From the State of
California Neighborhood Stabilization Program (NSP)
-4- 5/27/2009 2:59 PM
ATTACHMENT #1
PARTICIPATING PUBLIC JURISDICTION
JOINT AGREEMENT TO PARTICIPATE IN THE
NEIGHBORHOOD STABILIZATION PROGRAM
This Participating Public Jurisdiction Joint Agreement ("Agreement") t is made and
entered into as of this I st day of Jiinp , 2009, between . he Cities of
Huntington Beach and Buena Park (collectively referred to as the "Participating Public
Jurisdictions" and "Parties").
On July 30, 2008, the United States Congress passed the Housing and Economic
Recovery Act of 2008 ("HERA"). Among the Act's numerous provisions is the Neighborhood
Stabilization Program ("NSP"), which is expected to provide funds to state and local
governments to purchase abandoned and foreclosed homes and residential property. The NSP is
intended to rejuvenate neighborhoods and communities affected by the foreclosure crisis through
the renovation and rehabilitation of those homes, the elimination of blight and the reinvigoration
and stabilization of the affected neighborhoods. Specifically, the funds allocated by the NSP can
be used for the following -purposes:
1. Purchase and rehabilitate homes to sell, rent or redevelop;
2. Create land banks for homes that have been foreclosed upon;
3. Demolish blighted structures;
4. Redevelop demolished or vacant properties; and,
5. Establish financing mechanisms for purchase and redevelopment of foreclosed
upon homes and residential properties.
As part of the funding permitted under NSP, the United States Department of Housing
and Urban Development ("HUD") allocated funds to the State of California ("NSP Funds").
Consistent with HUD's guidelines, California must target the NSP Funds toward the areas of
greatest need, identified as those having the following conditions:
1. The greatest percentage of home foreclosures;
2. The greatest percentage of homes financed by a subprime mortgage related loan;
and
3. Likely to face a significant rise in the rate of home foreclosure.
The California Department of Housing and Community Development ("HCD") is
responsible for administering and implementing the NSP in California and distributing the NSP
Funds to eligible communities. HCD amended California's 2008-2009 Annual Plan Update of
the 2005-2010 Consolidated Plan, as provided for in HERA for the allocation and distribution of
the NSP funds. The California NSP is to be administered consistent with its Community
09-2055/34043
Development Block Grant ("CDBG") Entitlement Program Regulations, except as they are
inconsistent or modified by HUD.
As part of the implementation of the NSP and consistent with HUD's guidelines, HCD
has identified jurisdictions eligible to receive NSP funds in the following three tiers:
Tier 1 Direct Allocations — HCD will exclude those jurisdictions that received an allocation
from HUD either directly or indirectly through an Urban County agreement. All other
jurisdictions are eligible for consideration. However, HCD will limit the minimum
allocation under Tier 1 to $1 million.
Tier 2 Joint or Cumulative Allocations — HCD will allow jurisdictions that did not receive
allocations in Tier 1, due to the minimum threshold of $1 million, to apply for funds if
they combine with other jurisdictions through a joint agreement to meet this threshold.
Tier 3 Allocations for the 50-Percent Targeted Income Group — HCD will distribute 25
percent of the California allocation plus up to 5 percent for general administrative costs
to cities and counties that can meet HUD's requirement for housing targeted to
households at or below 50 percent of area median income, provided the applicant has
met the threshold of $1 million required under Tier 1 and Tier 2.
The Parties are located in Orange County and have been identified by HCD as an eligible
jurisdiction to receive a portion of the NSP Funds as follows:
ELIGIBLE
JURISDICTIONS
ELIGIBLE FUNDS
BY CITY
TIER 2 Cities
Huntington Beach
$411,123
Buena Park
$589.009
Total:
$1,001,032
The Parties desire to enter into this joint agreement to reach the minimum dollar
thresholds to participate in the NSP and receive the NSP Funds; identify the City of Huntington
Beach as the lead entity; identify the City of Buena Park as a subrecipient; document that the
subrecipient agrees to participate in the lead entity's NSP program; document that this
Agreement and the local entity's NSP program is covered by HCD's NSP requirements; and
ensure the Parties satisfy the State and Federal NSP requirements for the receipt and use of the
NSP Funds.
NOW THEREFORE, the Parties agree that the aforementioned recitals are true and
correct, and in recognition of the mutual consideration provided herein, further agree as follows:
09-2055/34043 2
PURPOSE
The Participating Public Jurisdictions desire to participate in the NSP to rejuvenate
neighborhoods and communities that are hardest hit by the foreclosure crisis. The Participating
Public Jurisdictions recognize that as a result of the foreclosure crisis they need to cooperate and
work regionally to promote affordable homeownership and rental opportunities in their
respective communities and the Orange County region as a whole.
The purpose of this Agreement is to satisfy the requirements of HCD for the Parties to
participate in the NSP and to combine their respective allocations to be eligible to participate in
the NSP. In addition, this Agreement is intended to identify the City of Huntington Beach as the
lead entity responsible for developing and administering a local NSP for the use and allocation of
the Parties' combined NSP Funds. This Agreement is further intended to confirm the
Participating Public Jurisdictions agreement that the City of Huntington Beach shall be: the
applicant to participate in California NSP; the recipient of the State NSP Funds identified by
HCD for all of the Participating Public Jurisdictions; responsible for administering and granting
the Local NSP Funds to the Parties as provided in this Agreement.
While this is a cooperative Agreement, it is not nor is it intended to be a joint powers agreement
pursuant to the Joint Exercise of Powers Act, Chapter 5 of Division 7 of Title 1 of the California
Government Code (commencing with Section 6500 et seq.)
IL ACTIVITIES
The Participating Public Jurisdictions shall be responsible for administering a portion of
Local NSP Funds in a manner satisfactory to HCD based upon HUD's requirements and
consistent with the standards, terms and conditions imposed by California's NSP and herein.
The Participating Public Jurisdictions shall only use the all NSP Funds to serve low-, moderate -
and idle -income households for the following activities eligible under the NSP program:
1. The purchase and rehabilitation of homes to sell, rent or redevelop;
2. The creation of land banks for homes that have been foreclosed upon;
3. The demolition of blighted structures;
4. The redevelopment of demolished or vacant properties; and,
5. The establishment of financing mechanisms for purchase and redevelopment of
foreclosed upon homes and residential properties
The Participating Public Jurisdictions shall comply with the affordability conditions
imposed by California's NSP.
III. CALIFORNIA'S NSP REQUIREMENTS
A. Lead Entity and Subrecipient Designations. The City of Huntington Beach is
hereby designated, and accepts the designation, as the "Lead Entity" under this joint Agreement,
and the City of Buena Park is hereby designated, and accepts the designation, as "Subrecipient."
09-2055/34043
B. Lead Entity Responsibilities. Consistent with 24 C.F.R. 570.308, the Lead Entity
hereby accepts responsibility for administering NSP Funds on behalf of the Parties in compliance
with the applicable program requirements. The Lead Entity shall execute the State of
California's NSP grant agreement, by way of a joint agreement or such other form as may be
prepared or negotiated with the State of California for the Parties to participate in the NSP. The
Lead Entity shall be the direct grant recipient of the NSP Funds to be allocated to the
Participating Public Jurisdictions. Based upon eligibility, the Lead Entity shall allocate the NSP
Funds to the Subrecipient by written agreement as described in 24 CFR 570.501(b) and 24 CFR
570.503. The Lead Entity shall be responsible for ensuring the NSP requirements (such as
program income and rent affordability) are complied with after grant closing. The Lead Entity
shall take all actions necessary to assure compliance with the certification required by section
104(b) of Title I of the Housing and Community Development Act of 1974, as amended,
including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 109 of Title I of
the Housing and Community Development Act of 1974, and other applicable laws. As required
by California NSP program, the Lead Entity shall develop and implement an NSP program
utilizing its CDBG program procedures and guidelines, as modified by California's NSP
program, for the granting of Local NSP Funds to the Subrecipient. Under the NSP program, the
Lead Entity is entitled to five percent (5%) of the NSP funds for program administration. In
recognition of the Lead Entity's role and administration of this Agreement and its NSP, the
Parties recognize and acknowledge the Lead Entity is entitled to the administrative fund portion
of the NSP funds. Nevertheless, Subrecipient may apply to the Lead Entity for up to one percent
(1%) of program funds for eligible staff costs associated with project administration.
C. Subrecipient Responsibilities. The Subrecipient agrees to participate in the Lead
Entity's NSP. Said participation consists of, but is not limited to, identifying eligible projects
within their respective jurisdictions and applying to the Lead Entity for a grant of NSP funds
from the Lead Entity for that project. Subrecipient may also work jointly to identify and use the
NSP funds for regional projects. The Subrecipient agrees to enter into a Subrecipient Agreement
with the Lead Entity's based on standard CDBG grant agreements as modified consistent with
the State of California's NSP grant agreement and the requirements of California's NSP. The
Subrecipient shall be responsible for using and administering any and all NSP Funds from the
Lead Entity in a manner consistent with State of California's NSP grant agreement and the
requirements of California's NSP.
D. No Termination or Withdrawal. As required by State and Federal NSP
requirements, once this Agreement is executed, the Participating Public Jurisdictions may not
withdraw from or terminate this Agreement until its terms and conditions are fully completed.
E. Program Income. Program income will belong to the Lead Entity's NSP even if it
is generated from activities undertaken within or by a Subrecipient.
F. Prohibited Use of NSP Funds. The NSP funds shall not be used in, or in support
of, any activities by a Party that does not affirmatively further fair housing within its jurisdiction
or that impedes the Lead Entity's actions to comply with its fair housing certification.
G. Environmental Compliance. The Parties agree to satisfy all requirements of the
National Environmental Policy Act (NEPA) and the California Environmental Quality Act
09-2055/34043 4
(CEQA). The Parties agree that the lead agency for any activities constituting a "project" under
CEQA or NEPA shall be that party in whose jurisdiction the "project" assisted with NSP funds is
located.
H. Policy Adoption. The Parties have adopted and are enforcing the following
policies within their respective jurisdictions:
A policy prohibiting the use of excessive force by law enforcement agencies
within its jurisdiction against any individuals engaged in nonviolent civil rights
demonstrations; and,
2. A policy of enforcing applicable State and local laws against physically barring
entrance to or exit from a facility or location, which is the subject of such
nonviolent civil rights demonstrations within jurisdictions.
I. No Veto Authority. During the term of this Agreement, the Subrecipient may not
veto or otherwise obstruct the Lead Entity's implementation of the approved State NSP
application during the period covered by the Lead Entity's NSP agreement with the State.
J. Written Agreement. Pursuant to 24 CFR 570.501(b), the Parties are subject to the
same requirements applicable to CDBG subrecipients, including the requirement of a written
agreement as described in 24 CFR 570.503.
IV. DISTRIBUTION OF NSP FUNDS
The Parties agree that the Lead Entity shall be the direct grant recipient of the NSP Funds
to be allocated to the Participating Public Jurisdictions. Subrecipient shall participate in the Lead
Entity's NSP program and shall apply to the Lead Entity for a grant of NSP Funds. The Lead
Entity shall evaluate Subrecipient's grant application and based upon eligibility, the Lead Entity
shall allocate the NSP Funds to Subrecipient by written agreement as described in 24 CFR
570.501(b) and 24 CFR 570.503 to perform Activities consistent with the terms and conditions
of this Agreement and the Lead Entity's CDBG Program. The Lead Entity shall not
unreasonably withhold the allocation of NSP Funds. The Lead Entity shall likewise apply and
execute an agreement for the grant of any NSP Funds for eligible projects and activities it intends
to perform in its jurisdiction.
Each Participating Public Jurisdiction is eligible to apply to the Lead Entity to receive
that portion of the NSP Funds it was determined to be eligible for by HCD, less 5% for
administration which shall be delivered to the Lead Entity. However, a Participating Public
Jurisdiction does not need to apply to the Lead Entity if that jurisdiction does not want to receive
or use any NSP Funds. However, the Participating Public Jurisdictions shall only be entitled to
that portion of the NSP Funds commensurate with the Activities provided and approved by the
Lead Entity, and the Lead Entity shall only make payments for those Activities that comply with
the terms and conditions of this Agreement and are in compliance with the regulations of the
CDBG Entitlement Program Regulations, 24 CFR Part 570. However, in the event Subrecipient
does not utilize the full amount of its eligibility for NSP Funds, the unused amount of its
09-2055/34043
eligibility shall be used by the Lead Entity or granted to another Subrecipient for use consistent
with California's NSP and this Agreement.
Payments of eligible expenses shall be made against the Funds and in accordance with
terms and conditions of this Agreement, the NSP Program, and applicable statutory regulations
including but not limited to 24 CFR Part 570.
The Lead Entity shall make payments to the Subrecipient, and shall not process any
request for payment of the NSP Funds, until the Subrecipient's financial management system is
certified by the Lead Entity in accordance with the standards specified in OMB Circular A-110
and its attachments, as may be modified by HUD.
The NSP Funds for the Activities are to be administered under the direction of the
Subrecipient's City Manager.
The Lead Entity shall monitor the Subrecipient's performance against goals and
performance standards as outlined in the Subrecipient's application.
V. TERM
This Agreement shall remain in full force and effect until the grant close out, and in no
event shall this Agreement expire prior to receipt and expenditure of the NSP funds and program
income received, and the completion of all Activities.
VI. NOTICES
Any notice required or permitted under the terms of this Agreement shall be effective
upon receipt in writing either by personal service upon the authorized agent for the party, or by
mailing the notice via U.S. Mail to the party at the address set forth in Attachment "A".
VII. AUTHORITY
Each person executing this Agreement on behalf of a Participating Public Jurisdiction
represents that he or she is the City Manager or City Administrator for, and has been duly
authorized by the City Council for, that Participating Public Jurisdiction and has full authority to
execute the Agreement on its behalf.
VIII. INDEMNITY
Subrecipient agrees to defend, indemnify, and hold the Lead Entity and its elected
officials, officers, directors, employees, agents, and designated volunteers harmless from and
against any and all loss, liability, damage, including reasonable attorney's fees and/or court
costs, arising out of or related to, and to the extent proximately caused by, the negligent acts or
omissions of the Subrecipient, or by the willful misconduct of Subrecipient, its elected officials,
officers, directors, employees, agents, and designated volunteers related to this Agreement and
the Subrecipient's use of any NSP Funds awarded by the Lead Entity under this Agreement.
09-2055/34043 6
Furthermore, each Party agrees to defend, indemnify, and hold all other Participating
Public Jurisdictions and their respective elected officials, officers, directors, employees, agents,
and designated volunteers harmless from and against any and all loss, liability, damage,
including reasonable attorney's fees and/or court costs, arising out of or related to, and to the
extent proximately caused by, the negligent acts or omissions of that Party, or by the willful
misconduct of that Party, its elected officials, officers, directors, employees, agents, and
designated volunteers related to this Agreement and that Party's use of any NSP Funds awarded
under this Agreement.
IX. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement shall
not be affected thereby and all other parts of this Agreement shall nevertheless be in full force
and effect.
X. WAIVER
The Lead Entity failure to act with respect to a breach by Subrecipient does not waive its
right to act with respect to subsequent or similar breaches. The failure of the Lead Entity to
exercise or enforce any right or provision shall not constitute a waiver of such right or provision.
XI. ENTIRE AGREEMENT
This Agreement constitutes the entire agreement between the Participating Public
Jurisdictions which shall be supplemented, but not modified, by a separate written agreement
between the Lead Entity and the Parties for the grant of NSP Funds through the Lead Entity's
NSP program.
XII. SIGNED IN COUNTERPART
This Lease Agreement may be executed in multiple counterparts, each of which shall be
deemed an original and all of which together shall constitute but one and the same instrument.
(Signature pages to follow)
09-2055/34043 7
IN WITNESS THEREOF, the Parties have executed this Agreement as of the date first
written above.
Dated: June 01, 2009 CITY OF HUNTINGTON BEACH,
A Municipal Corporation
"Lead Entity'%
Dated:
-
Administrator
APPROVED AS TO FORM:
BY:
�ennifer cGrath
City Attorney 5 •
CITY OF BUENA PARK
A Municipal Corporation
"Subrecipient"
Rick Warsinski
City Manager
COUNTERPART APPROVED AS TO FORM:
:•
City Attorney
09-2055/34043 8
IN !� �.; `& TILE EO , the Partieshave executed this Agreement as of t?ie date first
written above.
Dated:-- CITY
^ N q, g
A Municipal Corporation
"Lead Entity"
mm
BY:
Fred Wilson
City Ai infi i tnto
City Attt?mey
Dated: June _.9, 2009 CITY F BUENA PAR
, r pie t,
Y: 11
is Waysi ski
City Manager
APPROVED AS TO I-ORIM:
:
9,2035,@!_ (AI
Attachment A
NOTICES
Lead Entity: City of Huntington Beach
Attn: City Administrator
PO BOX 190
2000 Main Street
Huntington Beach, CA 92646
Subrecipient: City of Buena Park
Attn: City Manager
6650 Beach Blvd.
P. O. BOX 5009
Buena Park, CA 90622-5009
09-2055/34043
ATTACHMENT #2
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND THE CITY OF BUENA PARK FOR ALLOCATION
OF NEIGHBORHOOD STABILIZATION FUNDS
THIS AGREEMENT, entered this 1st day of June , 2009 by and
between the City of Huntington Beach (herein called the "Lead Entity") and the City of Buena
Park (herein called the "Subrecipient").
WHEREAS, On July 30, 2008, the United States Congress passed the Housing and
Economic Recovery Act of 2008 ("HERA"). Among HERA's numerous provisions is the
Neighborhood Stabilization Program ("NSP"), which is expected to provide funds to state and
local governments to purchase abandoned and foreclosed homes and residential property; and
WHEREAS, as part of the funding permitted under the NSP, the United States
Department of Housing and Urban Development allocated funds to the State of California.
The California Department of Housing and Community Development ("HCD") is responsible
for administering and implementing the NSP in California and distributing NSP funds to
eligible communities; and
WHEREAS, Lead Entity and Subrecipient have both been identified as communities
that are eligible to receive an allocation of NSP funds and the State of California's Substantial
Amendment to the Annual Plan for NSP states that units of general local, government may
create joint agreements in order to reach the minimum dollar threshold established for these
NSP funds; and
WHEREAS, Lead Entity and the Subrecipient have entered into a "Participating
Public Jurisdiction Joint Agreement to Participate in the Neighborhood Stabilization
Program," in order to identify the Lead Entity as being responsible for developing and
administering a local NSP for the use and allocation of the Lead Entity's and Subrecipient's
combined NSP Funds to serve low and moderate -income households; and
WHEREAS, Lead Entity is required to allocate the NSP Funds to Subrecipient by
written agreement and the Lead Entity and Subrecipient intend for this agreement to satisfy
this requirement.
NOW, THEREFORE, it is agreed between the parties hereto that;
I. STATEMENT OF WORK
A. Activities
Subrecipient has been allocated $589,009 and may use up to $559,558.55 to
implement the following activities within the City of Buena Park:
09-2055/34189
1. Establish financing mechanisms for the purchase and redevelopment of foreclosed
homes and residential properties, including such mechanisms as soft -seconds, loan
loss reserves, and shared -equity loans for low- and moderate -income homebuyers;
2. Establish land banks for homes that have been foreclosed upon;
3. Redevelop demolished or vacant properties;
4. Demolish blighted structures; and
5. Purchase and rehabilitate homes to sell, rent, or redevelop.
The Subrecipient will be responsible for participating in the Lead Entity's NSP by identifying
eligible projects and applying to the Lead Entity for an allocation of local NSP funds for
projects. The Subrecipient agrees to execute the State of California's NSP grant agreement
and satisfy the requirements of California's NSP. The Subrecipient shall be responsible for
using and administering any and all local NSP Funds from the Lead Entity in a manner
consistent with State of California's NSP grant agreement and the requirements of
California's NSP; administering the funds in a manner satisfactory to the Lead Entity and
consistent with any standards required as a condition of providing these funds.
If Subrecipient fails to obligate Seventy-five percent (75%) of all funds granted by Lead
Entity to Subrecipient by December 31, 2009, and/or fails to expend the remainder by March
31, 2010, Lead Entity may withhold allocation of NSP funds.
II. NOTICES
Notices required by this Agreement shall be in writing and delivered via mail (postage
prepaid), commercial courier, or personal delivery or sent by facsimile or other electronic
means. Any notice delivered or sent as aforesaid shall be effective on the date of delivery or
sending. All notices and other written communications under this Agreement shall be
addressed to the individuals in the capacities indicated below, unless otherwise modified by
subsequent written notice.
Communication and details concerning this contract shall be directed to the following
contract representatives:
Lead Entity
City of Huntington Beach
NSP Administrator
Economic Development Department
2000 Main Street
Huntington Beach, CA 92648
Telephone — (714) 536-5529
Fax Number — (714) 375-5087
09-2055/34189 2
Subrecipient
City of Buena Park
NSP Administrator
Attn: City Manager
6650 Beach Boulevard
P.O.Box 5009
Buena Park, CA 90622-5009
III. GENERAL. CONDITIONS
A. General Compliance
The Lead Entity and Subrecipient agree that each are responsible for ensuring that
NSP funds are used in accordance with all NSP program requirements. The Lead Entity is
responsible for applying the same requirements to itself as are applicable to the Subrecipient.
The Subrecipient agrees to comply with all other applicable Federal, state and local laws,
regulations, and policies governing the funds provided under this contract.
B. Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Lead Entity from any
and all claims, actions, suits, charges and judgments whatsoever that arise out of the
Subrecipient's performance or nonperformance of the services or subject matter called for in
this Agreement.
C. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all of
its employees involved in the performance of this Agreement.
D. Insurance & Bonding
The Subrecipient shall carry sufficient insurance coverage to protect contract assets
from loss due to theft, fraud and/or undue physical damage, and as a minimum shall purchase
a blanket fidelity bond covering all employees in an amount equal to cash advances from the
Lead Entity.
The Subrecipient shall comply with the bonding and insurance requirements of 24
CFR 84.31 and 84.48, Bonding and Insurance.
E. Lead Entit. Recognition
The Subrecipient shall insure recognition of the role of the Lead Entity in providing
services through this Agreement. All activities, facilities and items utilized pursuant to this
Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient
will include a reference to the support provided herein in all publications made possible with
funds available under this Agreement.
F. Amendments
The Lead Entity or Subrecipient may amend this Agreement at any time provided that
such amendments make specific reference to this Agreement, and are executed in writing,
signed by a duly authorized representative of each organization, and approved by the Lead
09-2055/34189
Entity's governing body. Such amendments shall not invalidate this Agreement, nor relieve
or release the Lead Entity or Subrecipient from its obligations under this Agreement.
The Lead Entity may, in its discretion, amend this Agreement to conform with
Federal, state or local governmental guidelines, policies and available funding amounts, or for
other reasons. If such amendments result in a change in the funding, the scope of services, or
schedule of the activities to be undertaken as part of this Agreement, such modifications will
be incorporate only by written amendment signed by both Lead Entity and Subrecipient.
G. Suspension or Termination
The Lead Entity may suspend or terminate this Agreement if the Subrecipient
materially fails to comply with any terms of this Agreement, which include (but are not
limited to) the following:
1. Failure to comply with any of the rules, regulations or provisions referred to
herein or such statutes, regulations, executive orders, and HUD guidelines,
policies or directive as may become applicable at any time.
2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper
manner its obligations under this Agreement;
3. Improper use of funds provided under this Agreement; or
4. Submission by the Subrecipient to the Lead Entity reports that are incorrect or
incomplete in any material respect.
IV. ADMINISTRATIVE REQUIREMENTS
Subrecipient agrees to comply with applicable uniform administrative requirements
described in 24 CFR 570.502.
A. Documentation and Record Keeping
1. Records to be maintained
The Subrecipient shall maintain all records required by the Federal regulations
specified in 24 CFR 570.506 that are pertinent to the activities to be funded under
this Agreement. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one of the
objectives of the NSP program;
c. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with NSP assistance;
09-2055/34189 4
Records documenting compliance with the fair housing and equal
opportunity components of the NSP program;
f. Financial records as required by CFR 570.502; and
g. Other records necessary to document compliance the NSP funding program.
2. Retention
The Subrecipient shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Agreement for a period of four (4)
years. The retention period begins on the date of the submission of the Lead Entity's
annual performance and evaluation report to HUD in which the activities assisted
under the Agreement are reported on for the final time. Notwithstanding the above,
if there is litigation, claims, audits, negotiations or other actions that involve any of
the records these must be retained until completion of the actions and resolution of
all issues, or the expiration of the four-year period, whichever occurs later.
3. Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client name,
address, income level or other basis for determining eligibility, and description of
service provided. Such information shall be made available to Lead Entity monitors
or their designees for review upon request.
4. Disclosure
The Subrecipient understands that client information collected under this contract is
private and the use or disclosure of such information, when not directly connected
with the administration of the Lead Entity's or Subrecipient's responsibilities with
respect to services provided under this contract, is prohibited by the California law
or Federal Law unless written consent is obtained from such person receiving
service and, in the case of a minor, that of a responsible parent/guardian.
5. Close-outs
The Subrecipient's obligation to the Lead Entity shall not end until all close-out
requirements are completed. Activities during this close-out period shall include,
but are not limited to: making final payments, disposing of program assets
(including the return of all unused materials, equipment, unspent cash advances,
program income balances, and accounts receivable to the Lead Entity), and
determining the custodianship of records. Not withstanding the foregoing, the terms
of this Agreement shall remain in effect during any period that the Subrecipient has
control over NSP funds, including program income.
6. Audits & Inspections
09-2055/34189 5
All Subrecipient records with respect to any matters covered by this Agreement shall
be made available to the Lead Entity, grantor agency, and the Comptroller General
of the United States or any of their authorized representatives, at any time during
normal business hours, as often as deemed necessary, to audit, examine, and make
excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by the Subrecipient within 30 days after receipt by the
Subrecipient. Failure of the Subrecipient to comply with the above audit
requirements will constitute a violation of this contract and may result in the
withholding of future payments. The Subrecipient hereby agrees to have an annual
agency audit conducted in accordance with current Lead Entity policy concerning
Subrecipient audits and OMB Circular A-133.
B. Reportingand Procedures
1. Program Income
The Subrecipient shall report quarterly any program income (as defined at 24 CFR
570.500(a)) generated by activities carried out with NSP funds made available under
this contract. The use of program income by the Subrecipient shall comply with the
requirements set forth at 24 CFR 570.504. By way of further limitations, the
Subrecipient may use such income during the contract period for activities permitted
under this contract and shall reduce requests for additional funds by the amount of
any such program income balances on hand. All unexpended program income shall
be returned to the Lead Entity at the end of the contract period. Any interest earned
on cash advances from the U.S. Treasury and from funds held in a revolving fund
account is not program income and shall be remitted promptly to the Lead Entity.
2. Indirect Costs
If indirect costs are charged, the Subrecipient will develop an indirect cost allocation
plan for determining the appropriate Subrecipient's share of administrative costs and
shall submit such plan to the Lead Entity for approval, in a form specified by the
Lead Entity.
3. Payment Procedures
The Lead Entity will pay to the Subrecipient funds available under this Agreement
based upon information submitted by the Subrecipient and consistent with any
approved budget and Lead Entity policy concerning payment. With the exception of
certain advances, payments will be made for eligible expenses actually incurred by
the Subrecipient, and not to exceed actual cash requirements. Payments will be
adjusted by the Lead Entity in accordance with advance fund and program balances
available in Subrecipient accounts. In addition, the Lead Entity reserves the right to
liquidate funds available under this contract for costs incurred by the Lead Entity on
behalf of the Subrecipient.
09-2055/34189 6
4. Progress Reports
The Subrecipient shall submit regular Progress Reports to the Lead Entity in the
form, content, and frequency as required by the Lead Entity.
C. Use and Reversion of Assets
The use and disposition of real property and equipment under this Agreement shall
be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502,
570.503, and 570.504, as applicable, which include but are not limited to the
following:
1. The Subrecipient shall transfer to the Lead Entity any NSP funds on hand and
any accounts receivable attributable to the use of funds under this Agreement
at the time of expiration, cancellation, or termination.
2. Real property under the Subrecipient's control that was acquired or improved,
in whole or in part, with funds under this Agreement in excess of $25,000 shall
be used to meet one of the NSP funding objectives until five (5) years after
expiration of this Agreement [or such longer period of time as the Lead Entity
deems appropriate]. If the Subrecipient fails to use NSP-assisted real property
in a manner that meets a NSP objective for the prescribed period of time, the
Subrecipient shall pay the Lead Entity an amount equal to the current fair
market value of the property less any portion of the value attributable to
expenditures of non-NSP funds for acquisition of, or improvement to, the
property. Such payment shall constitute program income to the Lead Entity.
The Subrecipient may retain real property acquired or improved under this
Agreement after the expiration of the five-year period [or such longer period of
time as the Lead Entity deems appropriate].
3. In all cases in which equipment acquired, in whole or in part, with funds under
this Agreement, is sold, the proceeds shall be program income (prorated to
reflect the extent that funds received under this Agreement were used to
acquire the equipment). Equipment not needed by the Subrecipient for
activities under this Agreement shall be (a) transferred to the Lead Entity for
the NSP program or (b) retained after compensating the Lead Entity [an
amount equal to the current fair market value of the equipment less the
percentage of non-NSP funds used to acquire the equipment].
V. PERSONNEL & PARTICIPANT CONDITIONS
A Compliance
Subrecipient agrees to carry out each activity in compliance with all Federal laws
and regulations described in Subpart K of Part 5701 of Chapter V of Title 24 of the Code of
Federal Regulations.
09-2055/34189 7
B. Access to Records
The Subrecipient shall furnish and cause each of its own subrecipients or
subcontractors to furnish all information and reports required hereunder and will permit
access to its books, records and accounts by the Lead Entity, HUD or its agent, or other
authorized Federal officials for purposes of investigation to ascertain compliance with the
rules, regulations and provisions stated herein.
C. Conduct
1. Assignability
The Subrecipient shall not assign or transfer any interest in this Agreement without
the prior written consent of the Lead Entity thereto; provided, however, that claims
for money due or to become due to the Subrecipient from the Lead Entity under this
contract may be assigned to a bank, trust company, or other financial institution
without such approval. Notice of any such assignment or transfer shall be furnished
promptly to the Lead Entity.
VI. SEVERABILITY
If any provision of this Agreement is held invalid, the remainder of the Agreement
shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full
force and effect.
VIL SECTION HEADINGS AND SUBHEADINGS
The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit or otherwise affect the terms of this Agreement.
VIII. WAIVED
The Lead Entity's failure to act with respect to a breach by the Subrecipient does not
waive its right to act with respect to subsequent or similar breaches. The failure of the Lead
Entity to exercise or enforce any right or provision shall not constitute a waiver of such right
or provision.
IX. ENTIRE AGREEMENT
This agreement constitutes the entire agreement between the Lead Entity and the
Subrecipient for the use of funds received under this Agreement and it supersedes all prior or
contemporaneous communications and proposals, whether electronic, oral, or written between
the Lead Entity and the Subrecipient with respect to this Agreement.
09-2055/34189 8
IN WITNESS WHEREOF, the Parties have executed this contract as of the date first
written above.
SUBRECIPIENT
CITY OF BUENA PARK
City Manager
City Clerk
APPROVED AS TO FORM:
City Attorney
09-2055/34189 9
LEAD ENTITY
CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California
Ole
Mayor
JCity Clerk
INITIATED APDAPPROVED:
Director of Economie-D&,v,�Iopment
City
AS TO FORM:
TVED
ity Attorney
III WITM'ASS' WHEIRIEW, the Panies have exemited this contract as of thy; date first
mntte , above,
SM4,71,MPIENT LEAD ENTITY
CITY OF BUENAPARK CITE' OF HII. `:I`l ,']'ON BEACH, a
m1midpai corporation of tlhe taste of
t: li orni
laity l,t a ex Mayor
OLZ
City, Clerk 1-1 *11
C;ty At-tomc%y uI11.ctlw 1- Inc no is Dev l pme>nt
: V X .ANDAPPROVED: �.w � Ewa
VETS A S I° � X
City . ttozey
9
ATTACHMENT #3
RESOLUTION NO. 2009-29
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH APPROVING AN APPLICATION
FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT
AND ANY AMENDMENTS THERETO FROM THE STATE OF CALIFORNIA
NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
WHEREAS, On July 30, 2008, the United States Congress passed the Housing and
Economic Recovery Act of 2008 ("HERA"). Among the Act's numerous provisions is the
Neighborhood Stabilization Program ("NSP"), which is expected to provide funds to state and
local governments to purchase abandoned and foreclosed homes and residential property. The
NSP is intended to rejuvenate neighborhoods and communities affected by the foreclosure crisis
through the renovation and rehabilitation of those homes, the elimination of blight and the
reinvigoration and stabilization of the affected neighborhoods. Specifically, the funds allocated
by the NSP can be used for the following purposes:
l . Purchase and rehabilitate homes to sell, rent or redevelop;
2. Create land banks for homes that have been foreclosed upon;
Demolish blighted structures;
4. Redevelop demolished or vacant properties; and,
Establish financing mechanisms for purchase and redevelopment of foreclosed
upon homes and residential properties; and
The State of California has received One Hundred Forty -Five Million Dollars
($145,000,000) in NSP funding to address abandoned and foreclosed homes; and
The State has announced that the City of Huntington Beach is eligible to receive up to
Four Hundred Eleven Thousand One Hundred Twenty -Three Dollars ($411,123.00) in NSP
funding; and
The City desires to allocate Redevelopment Agency Housing Set Aside funds in the
amount of One Million Fifty -Thousand Dollars ($1,050,000.00) as additional monies to fund
activities authorized by this resolution; and
The City of Huntington Beach considered this resolution at a public meeting that
provided the public with an opportunity to review and comment on this resolution;
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
09-2055/34034
Resolution No. 2009-29
SECTION 1: The City Council of the City of Huntington Beach has reviewed and
hereby approves an application (and its contents) for up to Four Hundred Eleven Thousand One
Hundred Twenty -Three Dollars ($411,123) for the following activities:
• Establish financing mechanisms for the purchase and redevelopment of foreclosed homes and
residential properties, including such mechanisms as down -payment assistance, soft -seconds,
loan loss reserves, and shared -equity loans for low- and moderate income homebuyers;
• Establish land banks for homes that have been foreclosed upon;
• Redevelop demolished or vacant properties.
SECTION 2: If any additional NSP funding becomes available at a later date, the City
of Huntington Beach is authorized to apply for, and/or accept funding, up to the maximum
amount available under the NSP Allocation. Any additional NSP funding will be used in'
accordance with funding requirements established by the State of California Neighborhood
Stabilization Program.
SECTION 3: The City of Huntington Beach hereby approves and directs the allocation
of Redevelopment Agency Housing Set Aside funds in the amount of One Million Fifty -
Thousand Dollars ($1,050,000.00) to be combined with allocated NSP funds that are received by
the City.
SECTION 4: The City Administrator is hereby authorized and directed to act on the
City of Huntington Beach's behalf in all matters pertaining to this application.
SECTION 5. If the application is approved, the City Administrator is authorized to enter
into and sign the grant agreement, and any subsequent amendments thereto, with the State of
California for the purposes of this grant.
SECTION 6. If the application is approved, the City Administrator is authorized to sign
funds requests and other required reporting forms.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 1 s t -day of u n e 12009.
a.4-� —
Mayor
REVIE D APPROVED: INI=AAPPROVED:
City mi strator Direlopment
PPROVED AS TO FORM:
Attorn y U -;57")
09-2055/34034 2
Res. No. 2009-29
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH j
I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of
Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby
certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a regular meeting thereof held on June 1, 2009 by the following vote:
AYES:
Carchio, Dwyer, Bohr, Coerper, Hardy, Hansen
NOES:
None
ABSENT:
Green
ABSTAIN: None
y Clerk and ex-officiVClerk of the
City Council of the City of
Huntington Beach, California
0 J
CITY F TIN TBEACH
�� Interdepartmental Memo
TO: Honorable Mayor and M mbers of the City Council
VIA: Fred A. Wilson, City A i trator
FROM: Stanley Smalewitz, Dire for of Economic Development Sj)2�
DATE: June 1, 2009
SUBJECT: Late Communication — Consent Calendar Item 11 — Agreement
with Buena Park for Neighborhood Stabilization Program
Attached is a matrix of all Orange County NSP recipients and funding amounts. Three
cities received money directly from HUD, one city received Tier I funding (over $1 million)
and 17 cities received Tier II funding. As stated in the Agenda report, Tier II cities are
required to combine with other cities to reach an amount of $1 million of NSP funding.
The City of Huntington Beach wil receive $411,123, which can be used to purchase
foreclosed homes within certain census tracts. Attached is a map of qualified areas within
Huntington Beach.
If you have any questions, please call me at extension 5909.
Attachments
Z-119`/Z -- -
/7-7 �—c Cam'/ �� c3.✓
ED 09-28 - 2 Late Communication -1- 6/1/2009 11:24:00 AM
Orange County NSP
Recipients
Tier Level
Dollar Amount
Garden Grove
Tier 1
$1,180,823
Buena Park
Tier 2
$589,009
Costa Mesa
Tier 2
$303,749
Fountain Valley
Tier 2
$123,469
Fullerton
Tier 2
$608,623
Yorba Linda
Tier 2
$154,129
Huntington Beach
Tier
$411,123
Irvine
Tier 2
$321,001
La Habra
Tier 2
$457,482
Laguna Niguel
Tier 2
$190,966
Lake Forest
Tier 2
$365,229
Mission Viejo
Tier 2
$351,961
Orange City
Tier 2
$560,583
Westminster
Tier 2
$340,641
Rancho Santa Margarita
Tier 2
$223,313
San Clemente
Tier 2
$133,431
San Juan Capistrano
Tier 2
$364,053
Tustin
Tier 2
$369,907
Santa Ana
Direct from HUD
$5,795,151
Orange County
Direct from HUD
$3,285,926
Anaheim
Direct from HUD
$2,653,455
Direct from HUD Total
$11,734,532
Tier 1 Total
$1,180,823
Tier 2 Total
$5,868,670
Total Orange County NSP
Allocations
$18,784,025
y
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City of Huntington MAJOR NAMES �•� �`
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City use only. Huntington Beach does not guarantee its Washington
completeness or accuracy. Goldenwest e
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TO:
VIA:
FROM:
DATE:
CITY OF �HUNTINGTON BEACH.
Interdepartmental Memo
Honorable Mayor and Member of the City Council
Fred A. Wilson, City Administ
Stanley Smalewitz, Director of Economic Development
June 1, 2009
SUBJECT: Late Communication — Consent Calendar Item 1.1 - Approve Joint
Powers Agreement w/ City of Buena Park and Matching Funds Resolution/ NSP
Funding
The Redevelopment Agency has received additional comments from the City of Buena
Park regarding the Participating Public Jurisdiction Joint Agreement and the Agreement.
between the. City of Huntington Beach and the City Buena Park For Allocation of
Neighborhood Stabilization Funds. Those comments include adding back eligible
activities that were deleted from the sub -recipient agreement and changing the signature
approval from Mayor to City Manager. The City Attorney's office has reviewed the
changes and finds that they are not substantive to the intent of the agreements.
Therefore, please change recommended actions 1 and 2 on RCA ED 09-28, Approve
Joint Powers Agreement w/ City of Buena Park and Matching Funds Resolution -NSP
Funding, to (changes in italics):
1. Authorize: City Administrator to sign the Participating Public Jurisdiction Joint
Agreement to Participate in the: Neighborhood Stabilization Program with the City of
Buena Park, in its substantial form.
2. Approve the Agreement Between the City of Huntington Beach and -the City Buena
Park For Allocation of Neighborhood Stabilization Funds, in its substantial form.
The City Attorney's office will incorporate the changes into the final documents before
. they are sent to. the City of Buena Park for signature.
AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH
AND THE CITY OF BUENA PARK FOR ALLOCATION
OF NEIGHBORHOOD STABILIZATION FUNDS
THIS AGREEMENT, entered this day of
between the City of Huntington Beach (herein called the "Lead Entity")
Park (herein called the "Subrecipient").
/% 20 by and
the City of Buena
WHEREAS, On July 30, 2008, the United States Congress Iiassed the Housing and
Economic Recovery Act of 2008 ("HERA"). Among HERA's numerous provisions is the
Neighborhood Stabilization Program ("NSP"), which is expected,t!0 provide funds to state and
local governments to purchase abandoned and foreclosed homes/and residential property; and
WHEREAS, as part of the funding permitted under the NSP, the United States
Department of Housing and Urban Development allocateA funds to the State of California.
The California Department of Housing and Community/Development ("HCD") is responsible
for administering and implementing the NSP in California and distributing NSP funds to
eligible communities; and
WHEREAS, Lead Entity and Subrecipient have both been identified as communities
that are eligible to receive an allocation of NS,P�funds and the State of California's Substantial
Amendment to the Annual Plan for NSP states that units of general local government may
create joint agreements in order to reach tfe minimum dollar threshold established for these
NSP funds; and �!
WHEREAS, Lead Entity and the Subrecipient have entered into a "Participating
Public Jurisdiction Joint Agreement to Participate in the Neighborhood Stabilization
Program," in order to identify the Lead Entity as being responsible for developing and
administering a local NSP for t/e/ use and allocation of the Lead Entity's and Subrecipient's
combined NSP Funds to serve row and moderate -income households; and
WHEREAS, Lead l ntity is required to allocate the NSP Funds to Subrecipient by
written agreement and the Lead Entity and Subrecipient intend for this agreement to satisfy
this requirement.
NOW, THEREFORE, it is agreed between the parties hereto that;
I. STATE
FA
Subreci
implement the
OF WO
has been allocated $589,009 and may use up to $559,558.55 to
ing activities within the City of Buena Park:
09-2055/34189
1. Establish financing mechanisms for the purchase and redevelopment of foreclosed
homes and residential properties, including such mechanisms as soft -seconds, loan
loss reserves, and shared -equity loans for low- and moderate -income homebuyers;
2. Establish land banks for homes that have been foreclosed upon;
3. Redevelop demolished or vacant properties.
The Subrecipient will be responsible for participating in the Lead Entity's NSP by identifying
eligible projects and applying to the Lead Entity for an allocatifen of local NSP funds for
projects. The Subrecipient agrees to execute the State of Cali dmia's NSP grant agreement
and satisfy the requirements of California's NSP. The Subrecipient shall be responsible for
using and administering any and all local NSP Funds from the Lead Entity in a manner
consistent with State of California's NSP grant agreement and the requirements of
California's NSP; administering the funds in a mannevsatisfactory to the Lead Entity and
consistent with any standards required as a condition of/providing these funds.
If Subrecipient fails to obligate Seventy-five perccent (75%) of all funds granted by Lead
Entity to Subrecipient by December 31, 2009, and//or fails to expend the remainder by March
31, 2010, Lead Entity may withhold allocation gfNSP funds.
II. NOTICES
Notices required by this Agre
prepaid), commercial courier, or pet
means. Any notice delivered or sent
sending. All notices and other w
addressed to the individuals in the c
subsequent written notice.
ne . t shall be in writing and delivered via mail (postage
7o 1 delivery or sent by facsimile or other electronic
aforesaid shall be effective on the date of delivery or
tten communications under this Agreement shall be
)acities indicated below, unless otherwise modified by
Communication and de ails concerning this contract shall be directed to the following
contract representatives: %`
Lead Entity % Subrecipient
City of Hunt
NSP Admini
Economic D
2000 Main S
Huntington I
Telephone —
Fax Number
Department
ich, CA 92648
14) 536-5529
(714) 375-5087
City of Buena Park
NSP Administrator
Attn: City Manager
6650 Beach Boulevard
P.O.Box 5009
Buena Park, CA 90622-5009
09-2055/34189 2
III. GENERAL CONDITIONS
A. General Compliance
The Lead Entity and Subrecipient agree that each are responsible for ensuring that
NSP funds are used in accordance with all NSP program requirements The Lead Entity is
responsible for applying the same requirements to itself as are applicable to the Subrecipient.
The Subrecipient agrees to comply with all other applicable Federal, state and local laws,
regulations, and policies governing the funds provided under this contract.
B. Hold Harmless
The Subrecipient shall hold harmless, defend and indemnify the Lead Entity from any
and all claims, actions, suits, charges and judgments whatsoever that arise out of the
Subrecipient's performance or nonperformance of the services or subject matter called for in
this Agreement.
C. Workers' Compensation
The Subrecipient shall provide Workers' Compensation Insurance coverage for all of
its employees involved in the performance o this Agreement.
D. Insurance & Bonding
The Subrecipient shall carry/§ufficient insurance coverage to protect contract assets
from loss due to theft, fraud and/or physical damage, and as a minimum shall purchase
a blanket fidelity bond covering adl employees in an amount equal to cash advances from the
Lead Entity.
The Subrecipient shall comply with the bonding and insurance requirements of 24
CFR 84.31 and 84.48, Bonding and Insurance.
E. Lead Entitv Recognition
The Subrecipient shall insure recognition of the role of the Lead Entity in providing
services through thWAgreement. All activities, facilities and items utilized pursuant to this
Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient
will include a reference to the support provided herein in all publications made possible with
funds available under this Agreement.
F.
The Lead Entity or Subrecipient may amend this Agreement at any time provided that
such amendments make specific reference to this Agreement, and are executed in writing,
signed by a duly authorized representative of each organization, and approved by the Lead
Entity's governing body. Such amendments shall not invalidate this Agreement, nor relieve
or release the Lead Entity or Subrecipient from its obligations under this Agreement.
09-2055/34189 3
The Lead Entity may, in its discretion, amend this Agreement to conform with
Federal, state or local governmental guidelines, policies and available funding amounts, or for
other reasons. If such amendments result in a change in the funding, the scope of services, or
schedule of the activities to be undertaken as part of this Agreement, such modifications will
be incorporate only by written amendment signed by both Lead Entity and Subrecipient.
G. Suspension or Termination
The Lead Entity may suspend or terminate this Agreement if the Subrecipient
materially fails to comply with any terms of this Agreement, which include (but are not
limited to) the following: ,
1. Failure to comply with any of the rules/regulations or provisions referred to
herein or such statutes, regulations, executive orders, and HUD guidelines,
policies or directive as may become applicable at any time.
2. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper
manner its obligations under this/Agreement;
3. Improper use of funds
4. Submission by the
incomplete in any
IV.
Subrecipient agrees to
described in 24 CFR 570.502.
0
under this Agreement; or
pient to the Lead Entity reports that are incorrect or
respect.
ly with applicable uniform administrative requirements
The Subrecipient shall maintain all records required by the Federal regulations
specified in 24 CFR 570.506 that are pertinent to the activities to be funded under
this Agreement. Such records shall include but not be limited to:
a. Records providing a full description of each activity undertaken;
b. Records demonstrating that each activity undertaken meets one of the
,objectives of the NSP program;
c. Records required to determine the eligibility of activities;
d. Records required to document the acquisition, improvement, use or
disposition of real property acquired or improved with NSP assistance;
e. Records documenting compliance with the fair housing and equal
opportunity components of the NSP program;
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f. Financial records as required by CFR 570.502; and %
g. Other records necessary to document compliance the NSP fundi 9 program.
2. Retention
The Subrecipient shall retain all financial records, supporting documents, statistical
records, and all other records pertinent to the Agreement for a period of four (4)
years. The retention period begins on the date of the submission of the Lead Entity's
annual performance and evaluation report to HUD in which the activities assisted
under the Agreement are reported on for the final time./Notwithstanding the above,
if there is litigation, claims, audits, negotiations or other actions that involve any of
the records these must be retained until completion of the actions and resolution of
all issues, or the expiration of the four-year period,,�whichever occurs later.
3. Client Data
The Subrecipient shall maintain client data demonstrating client eligibility for
services provided. Such data shall include, but not be limited to, client name,
address, income level or other basis forketermining eligibility, and description of
service provided. Such information shall be made available to Lead Entity monitors
or their designees for review upon request.
4. Disclosure
The Subrecipient understands that client information collected under this contract is
private and the use or disclosure of such information, when not directly connected
with the administration of the Lead Entity's or Subrecipient's responsibilities with
respect to services provided under this contract, is prohibited by the California law
or Federal Law unless/written consent is obtained from such person receiving
service and, in the case.{of a minor, that of a responsible parent/guardian.
5. Close-outs
The Subrecipient's obligation to the Lead Entity shall not end until all close-out
requirements are completed. Activities during this close-out period shall include,
but are not limited to: making final payments, disposing of program assets
(including the return of all unused materials, equipment, unspent cash advances,
program income balances, and accounts receivable to the Lead Entity), and
determine> g the custodianship of records. Not withstanding the foregoing, the terms
of this Agreement shall remain in effect during any period that the Subrecipient has
control over NSP funds, including program income.
6. Audits
All Subrecipient records with respect to any matters covered by this Agreement shall
be made available to the Lead Entity, grantor agency, and the Comptroller General
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of the United States or any of their authorized representatives, at any time during
normal business hours, as often as deemed necessary, to audit, examine/ nd make
excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports
must be fully cleared by the Subrecipient within 30 days after eceipt by the
Subrecipient. Failure of the Subrecipient to comply with/the above audit
requirements will constitute a violation of this contract and/may result in the
withholding of future payments. The Subrecipient hereby agrees to have an annual
agency audit conducted in accordance with current Lead Entity policy concerning
Subrecipient audits and OMB Circular A-133.
B. Reporting and Payment Procedures
1. Program Income
The Subrecipient shall report quarterly any program income (as defined at 24 CFR
570.500(a)) generated by activities carried out with NSP funds made available under
this contract. The use of program income byZhe Subrecipient shall comply with the
requirements set forth at 24 CFR 570.504. By way of further limitations, the
Subrecipient may use such income during`the contract period for activities permitted
under this contract and shall reduce requests for additional funds by the amount of
any such program income balances owhand. All unexpended program income shall
be returned to the Lead Entity at the�end of the contract period. Any interest earned
on cash advances from the U.S. Treasury and from funds held in a revolving fund
account is not program income and shall be remitted promptly to the Lead Entity.
2. Indirect Costs
If indirect costs are charged/the Subrecipient will develop an indirect cost allocation
75
plan for determining the appropriate Subrecipient's share of administrative costs and
shall submit such plan to the Lead Entity for approval, in a form specified by the
Lead Entity.
3.
The Lead Entity will pay to the Subrecipient funds available under this Agreement
based upon inf rmation submitted by the Subrecipient and consistent with any
approved budget and Lead Entity policy concerning payment. With the exception of
certain advances, payments will be made for eligible expenses actually incurred by
the Subrecipient, and not to exceed actual cash requirements. Payments will be
adjusted by/the Lead Entity in accordance with advance fund and program balances
available in Subrecipient accounts. In addition, the Lead Entity reserves the right to
liquidate funds available under this contract for costs incurred by the Lead Entity on
behalf of the Subrecipient.
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4. Progress Reports
The Subrecipient shall submit regular Progress Reports to the Lead�Entity in the
form, content, and frequency as required by the Lead Entity.
C. Use and Reversion of Assets
The use and disposition of real property and equipment under i his Agreement shall
be in compliance with the requirements of 24 CFR Part 84,and 24 CFR 570.502,
570.503, -and 570.504, as applicable, which include but are not limited to the
following:
The Subrecipient shall transfer to the Lead EntityAany NSP funds on hand and
any accounts receivable attributable to the use of funds under this Agreement
at the time of expiration, cancellation, or termination.
2. Real. property under the Subrecipient's control that was acquired or improved,
in whole or in part, with funds under this A/greement in excess of $25,000 shall
be used to meet one of the NSP funding objectives until five (5) years after
expiration of this Agreement [or such longer period of time as the Lead Entity
deems appropriate]. If the Subrecipient fails to use NSP-assisted real property
in a manner that meets a NSP objective for the prescribed period of time, the
Subrecipient shall pay the Lead Entity an amount equal to the current fair
market value of the property less any portion of the value attributable to
expenditures of non-NSP funds/for acquisition of, or improvement to, the
property. Such payment shall constitute program income to the Lead Entity.
The Subrecipient may retain real property acquired or improved under this
Agreement after the expiration of the five-year period [or such longer period of
time as the Lead Entity deems appropriate].
3. In all cases in which equipment acquired, in whole or in part, with funds under
this Agreement, is sold, the proceeds shall be program income (prorated to
reflect the extent that funds received under this Agreement were used to
acquire the equipment). Equipment not needed by the Subrecipient for
activities under thislAgreement shall be (a) transferred to the Lead Entity for
the NSP program/or (b) retained after compensating the Lead Entity [an
amount equal tothe current fair market value of the equipment less the
percentage of non-NSP funds used to acquire the equipment].
V. PERSONNEL. & PARTICIPANT CONDITIONS
ft
Subrecipient agrees to carry out each activity in compliance with all Federal laws
and regulations described in Subpart K of Part 5701 of Chapter V of Title 24 of the Code of
Federal Regulations.
09-2055/34189 7
B. Access to Records
The Subrecipient shall furnish and cause each of its own subre6pients or
subcontractors to furnish all information and reports required hereunder and/will permit
access to its books, records and accounts by the Lead Entity, HUD or its went, or other
authorized Federal officials for purposes of investigation to ascertain compliance with the
rules, regulations and provisions stated herein.
C. Conduct
1. Assi nability
The Subrecipient shall not assign or transfer any in
the prior written consent of the Lead Entity thereto
for money due or to become due to the Subrecipie��n.
contract may be assigned to a bank, trust compat
without such approval. Notice of any such assgnm
promptly to the Lead Entity. y/
VI. SEVERABILITY
-r st in this Agreement without
provided, however, that claims
from the Lead Entity under this
y, or other financial institution
:nt or transfer shall be furnished
If any provision of this Agreement is held invalid, the remainder of the Agreement
shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full
force and effect.
VII. SECTION HEADINGS ANDSUBHEADINGS
The section headings and subheadings contained in this Agreement are included for
convenience only and shall not limit/Or otherwise affect the terms of this Agreement.
VIII. WAIVER
The Lead Entity's failure to act with respect to a breach by the Subrecipient does not
waive its right to act with respect to subsequent or similar breaches. The failure of the Lead
Entity to exercise or enforce any right or provision shall not constitute a waiver of such right
or provision. ,
IX.
This agreement constitutes the entire agreement between the Lead Entity and the
Subrecipient for the use of funds received under this Agreement and it supersedes all prior or
contemporaneous communications and proposals, whether electronic, oral, or written between
the Lead Entity and the Subrecipient with respect to this Agreement.
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IN WITNESS WHEREOF, the Parties have executed this contract of the date first
written above.
SUBRECIPIENT LEAD ENTITY
CITY OF BUENA PARK CITY OF HUNTINGTON BEACH, a
municipal corporation of the State of
California^
Y.
Mayor
Mayor
City Clerk
City Clerk
INITIATED D PPROVED:
Director of Economic Development
APPROVED:
City
PPROVED AS TO FORM:
City Attorney,
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