HomeMy WebLinkAboutHUMANITY HOUSING, INC. (HABITAT FOR HUMANITY) CONDITIONAL CO CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
LETTER OF TRANSMITTAL OF ITEM APPROVED BY THE CITY COUNCIL/
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
DATE:
TO: /l76-z 0U-S11UA //t)G. ATTENTION: N ides
Name
. DEPARTMENT:
REGARDING:dh2ZVT1WA-e-amm rr-", r
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See Attached Action Agenda Item Date of Approval nd 3
Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item.
Remarks':
City Clerk
Attachments: Action Agenda Page ✓ Agreement _/' Bonds Insurance
RCA Deed Other
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N 'e De anment RCA Agreement Insurance Other
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Name Department RCA Agreement Insurance Other
Name Department RCA Agreement Insurance Other
Name Department RCA Agreement Insurance Other
Name Department RCA Insurance
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1 Tele phone:714-536-5227)
that any other insurance coverage which may be applicable to the PROJECT shall be deemed
excess coverage and that DEVELOPER's insurance shall be primary.
Under no circumstances shall said above-mentioned insurance contain a self-
insured retention, or a`'deductible" or any other similar form of limitation on the required
coverage.
11. NOTICES
All notices pertaining to this Agreement, an any communications from the parties may be
made by delivery of said notices in person or by depositing said notices in the U. S. Mail, b
registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
TO CITY: TO DEVELOPER:
Director of Economic Development Board President
Cite of Huntington Beach Humanity Housing, Inc.
2060 Main Street 2165 South Grand Avenue
Huntington Beach, CA 92648 Santa Ana, CA 92705
Any of the parties may cancel this Agreement by giving thirty (30) days written
notice of said cancellation to the other party hereto. In the event of termination or cancellation
for any reason, CITY shall be liable for services rendered up to such termination.
12. AFFORDABLE HOUSING AGREEMENT
Within 12 months from the date of the approval of this Agreement by CITY,
DEVELOPER shall enter into an Agreement with the Redevelopment Agency of the City of
Huntington Beach. Said Agreement shall set forth the nature and use of the PROJECT as
affordable residential housing. The specific affordability requirements, and duration thereof,
shall also be set forth in said Agreement.
03aercei'110%lEfundsi9!1-103 5
13. ENTIRE AGREEMENT
This document fully expresses all understandings of the parties concerning all matters
covered and shall constitute the total Agreement. No prior written or oral provisions or
understanding, between the parties shall have any force or affect. No addition to or alteration of
the terms of this Agreement shall be valid unless made in writing and formally adopted in the
same manner as this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by and through their authorized offices the day, month and year first above written.
DEVELOPER CITY OF HUNTINGTON BEACH, a
HUMANITY HOUSING, INC. municipal corporation of the State of
California
B. ,
r' name
VS. (circle one Chairman. resident/Vice President Mayor
AND ATTEST:
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City Clerk
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ITS: (circle one) Secrets EChiefinancial Office 'Asst. APPROVED AS TO FORM:
Secretary-Treasurer _ YZ2
ity Attorney r l03
REVIEWED AND APPROVED: INITIATED AND APPROVED:
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City dministrator Director of Economic Oevelopment.
03agre<<110-9Ffunds'9i2 03 6
Site Map
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City of Huntington Beach
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RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Approve a Conditional Commitment Agreement with Habitat
for Humani for 2502 Delaware Affordable Housing Project
COUNCIL MEETING DATE: I October 6, 2003
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Attached
Contract/Agreement (wlexhibits if applicable)
(Signed in full by the gity Attome Attached
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attome Not Applicable
Certificates of Insurance (Approved by the City Attome Not Attached (Explain)
Financial Impact Statement Unbud et, over$5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report If applicable) Not Applicable
Find in s/Conditions for Approval and/or Denial Not Applicalble
EXPLANATION FOR MISSING ATTACHMENTS
The City's insurance requirements are requested to be temporarily waived until the close
of escrow. At that time, insurance certificates will be obtained and approved.
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
/1")
v
Space . Only)
RCA Author: HOLTZ(5901)
Council/Agency Meeting Held:
Deferred/Continued to: �.
p(Approved ❑ Conditionally Approved ❑ Denied City Clerk's Signatur
Council Meeting Date: October 6, 2003 Department ID Number: ED 03-25
ti
CITY OF HUNTINGTON BEACH P
REQUEST FOR COUNCIL ACTION 0 ,
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
D > :L;
SUBMITTED BY: RAY SILVER, City Administratora V
PREPARED BY: DAVID C. BIGGS, Director of Economic Development
SUBJECT: Approve a Conditional Commitment Agreement with Habitat for
Humanity for the Construction of an Affordable Single Family
Residence at 2502 Delaware Street
statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s)
State ent of Issue: The City Council is asked to approve a conditional commitment
agreement between the City and Habitat for Humanity (Humanity Housing, Inc.). This
agreement reserves up to $194,400 of HOME Investment Partnership program funds for
acquisition costs and development fees for a very low-income housing unit to be located at
2502 Delaware Street. The proposed funding is conditioned on the Redevelopment Agency
and Habitat for Humanity entering into an Affordable Housing Agreement within the next 12
months that will delineate the specific terms of this development project.
Funding Source: $194,400 from HOME Investment Partnership program funds (account
84980401).
Reco mended Action: Motion to:
City Council Action:
1. Temporarily waive the City's insurance requirements for the purpose of approving the
Conditional Commitment Agreement. Direct staff to ensure that insurance requirements
as described in the Conditional Commitment Agreement are met by Habitat for Humanity
(Humanity Housing, Inc.) by the close of escrow.
2. Approve a Conditional Commitment Agreement with Habitat for Humanity (Humanity
Housing, Inc.) for $194,400 of HOME Investment Partnership program funds for
acquisition costs and development fees for a very low-income housing unit to be located
at 2502 Delaware Street.
Analysis: Due to a pending October 31, 2003 deadline by which the City must commit
its federal HOME Investment Partnership program funds, and in anticipation of a future
QUEST FOR COUNCIL ACT&
MEETING DATE: October 6, 2003 DEPARTMENT ID NUMBER: ED 03-25
Habitat for Humanity affordable housing project at the corner of Yorktown Avenue and
Delaware Street, staff recommends approval of the attached conditional commitment
agreement between the City and Habitat for Humanity (Attachment 1). This agreement
provides the Redevelopment Agency and Habitat for Humanity one year to negotiate and
execute an affordable housing agreement for the development of a single-family residence
on a vacant lot currently owned by the City at 2502 Delaware Street (Site Map: Attachment
2).
The amount of HOME funds to be committed to Habitat for Humanity is $194,400. This
amount is restricted to affordable housing projects developed by specifically qualified
community housing development organizations (CHDO's), of which Habitat for Humanity
qualifies. Because no alternative project currently exists that meets the federal restrictions
for these funds, and because HOME funds not committed by the October 31, 2003 deadline
must be returned to HUD, the proposed development is the only available use of the City's
housing funds.
The Delaware Street Habitat for Humanity development is consistent with a 2001 project of
three affordable single-family homes built on surplus City-owned properties along Yorktown
Avenue. This fourth Habitat for Humanity home was contemplated at that time, but the
subject property was temporarily unavailable because it was needed as a staging area for
the Yorktown street widening project. Now that the street widening project is finished, the
Delaware Street property is available.
Approval of the recommended action will only reserve $194,400 of HOME funds for Habitat
for Humanity. It requires the Redevelopment Agency and Habitat for Humanity to negotiate
and execute an affordable housing agreement before the HOME funds can be disbursed.
This agreement will limit the project subsidy to land acquisition costs and development fees.
In the event that these costs directly related to the 2502 Delaware Street project are less
than the $194,400 conditional commitment, the affordable housing agreement may add an
additional housing unit on another surplus City property for the remaining available HOME
funds. Within the next 12 months, this affordable housing agreement will be forwarded to the
Redevelopment Agency for approval.
The proposed condition commitment of HOME funds for Habitat for Humanity was reviewed
by the Council's Economic Development Committee on September 8, 2003 and was
recommended for the consideration of the full City Council.
Environmental Status: Categorically excluded under the National Environmental
Protection Act (NEPAF Categorically exempt under the California Environmental Quality Act
(CEQA), Section 15061(b)(3).
RCA for 2502 Delaware Loan Agreement .2. 9/22/2003 10:29 AM
*QUEST FOR C06NCIL ACAN
MEETING DATE: October 6, 2003 DEPARTMENT ID NUMBER: ED 03-25
Attachment
(s]:
City Clerk's
Page Number No. Description
1. Agreement between the City of Huntington Beach and Humanity
Housing, Inc. for the Conditional Commitment of Federal HOME
Funds.
2. 1 Site Map.
RCA Author: HOLTZ (5901)
RCA for 2502 Delaware Loan Agreement.doc -3- 9/22/2003 5:29 PM
Agreement between the City of Huntington Beach
and Humanity Housing, Inc. for the
Conditional Commitment of Federal HOME Funds
AGREEMENT BETWEEN THE CITY OF HUNTfNGTON BEACH
AND HUMANITY HOUSING, INC. FOR THE CONDITIONAL
COMMITMENT OF FEDERAL HOME FUNDS.
THIS AGREEMENT is entered into this &"� day of 2003,
between the CITY OF HUNTINGTON BEACH, a municipal corporation of the State of
California, hereinafter referred to as "CITY," and HUMANITY HOUSING, INC., a non-profit
public benefit corporation of the State of California, hereinafter referred to as 'DEVELOPER"
for the conditional commitment of HOME funds; and
Federal law mandates that an Agreement be executed between the CITY and
DEVELOPER in order that such funds be utilized by the parties hereto; and
NOW, THEREFORE, in consideration of the respective and mutual covenants and
promises hereinafter contained and made, and subject to all the terms and conditions hereof, the
parties hereto agree as follows:
1. AMOUNT OF GRANT
The total amount conditionally committed to the DEVELOPER is $194,400 to be used
for land acquisition, development fees and other project related costs for a very low income
housing project, hereinafter to be known as the "PROJECT", to be located at 2502 Delaware
Street in Huntington Beach, California.
2. COMPLIANCE WITH FEDERAL REGULATIONS
DEVELOPER agrees to conduct all activities of the organization, whether funded in
whole or in part by HOME funds from CITY, in accordance with the provisions contained in all
applicable federal, state and local laws and regulations.
03agreel1-10M E funds/9/V03 1
i •
3. COMPLIANCE WITH FEDERAL REGULATIONS-PENALTY
The CITY shall have the right to recapture all or a portion of HOME funds disbursed to
DEVELOPER should the DEVELOPER fail to comply with all of the terms and conditions of
this Agreement or refuse to accept any conditions which may subsequently be imposed by the
U. S. Department of Housing and Urban Development for the operation of the HOME Program.
4. DISPOSITIOI\ OF PROPERTY
DEVELOPER shall not dispose of any real or personal property acquired in full or in part
with HOME funds through sale, use, or relocation without the express and prior written
permission of the City, and agrees to maintain program records for a minimum of three years
after the conclusion of the PROJECT and to make such records available for onsite monitoring
by CITY not less than annually and to periodic inspections by federal officials during this three-
year period. CITY will provide seven (7) days prior notice of inspection/monitoring.
5. CONFLICT OF INTEREST
DEVELOPER agrees that no officer, employee, agent, or assignee of CITY having direct
or indirect control of HOME funds granted to the CITY shall serve as an officer of
DEVELOPER. Further, any conflict or potential conflict of interest of any officer of
DEVELOPER shall be fully disclosed to the CITY prior to the execution of this Agreement and
shall be attached to and become a part hereof.
6. EARNED INTEREST ON INCOME
DEVELOPER agrees that any earned interest income on funds generated through the use
or investment of funds received from CITY shall be used in conformance with program income
requirements set forth in Code of Federal Regulations. The DEVELOPER shall disclose to the
CITY all program income received utilizing HOME funds administered under this Agreement.
03 ureell 10N]E funds,9003 2
7. DISBURSEMENT OF FUNDS
DEVELOPER acknowledges that the CITY shall disburse funds to DEVELOPER only
upon execution of this Agreement, and CITY is empowered only to provide funds to
DEVELOPER pursuant to the provisions of this Agreement.
8. INDEMNIFICATION DEFENSE HOLD HARMLESS
DEVELOPER hereby agrees to protect, defend, indemnify and hold harmless CITY, its
officers, elected or appointed officials, employees, agents, and volunteers from and against any
and all, claims, damages, losses, expenses,judgments, demands defense costs, and consequential
damage or liability of any kind or nature, however caused, including those resulting from death
or injury to DEVELOPER's employees and damage to DEVELOPER's property, arising directly
or indirectly out of the obligations or operations herein undertaken by DEVELOPER, caused in
whole or in part by any negligent act or omission of the DEVELOPER, any subcontractors,
anyone directly or indirectly employed by any of them or anyone for whose acts any of them
may be liable, including but not limited to concurrent active or passive negligence, except where
caused by the active negligence, sole negligence, or willful misconduct of the CITY.
DEVELOPER will conduct all defense at its sole cost and expense and CITY shall approve
selection of DEVELOPER's counsel. This indemnity shall apply to all claims and liability
regardless of whether any insurance policies are applicable. The policy limits do not act as a
limitation upon the amount of indemnification to be provided by DEVELOPER.
9. WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY
INSURANCE
Pursuant to California Labor Code Section 1861, DEVELOPER acknowledges
awareness of Section 3700 et seq. of this Code, which requires every employer to be insured
03 fwee?HOM 1::funds/W2/03 3
against liability for workers' compensation; DEVELOPER covenants that it will comply with
such provisions prior to commencing performance of the work hereunder.
DEVELOPER shall obtain and furnish to City workers' compensation and
employer's liability insurance in an amount of not less than the State statutory limits.
DEVELOPER shall require all subcontractors to provide such w-orkers'
compensation and employer's liability insurance for all of the subcontractors' employees.
DEVELOPER shall furnish to CITY a certificate of waiver of subrogation under the terms of the
workers' compensation and employer's liability insurance and DEVELOPER shall similarly
require all subcontractors to waive subrogation.
10. GENERAL LIABILITY INSURANCE
In addition to the workers' compensation and employer's liability insurance and
DEVELOPER's covenant to defend, hold harmless and indemnify CITY, DEVELOPER shall
obtain and furnish to CITY, a policy of general public liability insurance, including motor
vehicle coverage covering the PROJECT. This policy shall indemnify DEVELOPER. its
officers, employees and agents while acting within the scope of their duties, against any and all
claims arising out or in connection with the PROJECT, and shall provide coverage in not less
than the following amount: combined single limit bodily injury and property damage, including
products/completed operations liability and blanket contractual liability, of One Million Dollars
($1,000,000) per occurrence. If coverage is provided under a form which includes a designated
general aggregate limit, the aggregate limit must be no less than One Million Dollars
(S1,000,000) for this PROJECT. This policy shall name CITY, its officers, elected or appointed
officials, employees, agents, and volunteers as Additional Insureds, and shall specifically provide
03agree HOMEfunds.91.'U3 4