RES-9254 Affordable Housing Agreement Approval 264-280 S. Esplanade StreetRESOLUTION NO. 9254
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING AN AFFORDABLE
HOUSING AGREEMENT BY AND BETWEEN THE
ORANGE REDEVELOPMENT AGENCY AND
ORANGE HOUSING DEVELOPMENT
CORPORATION REGARDING 264-280
SOUTH ESPLANADE STREET AND J\fAKING
CERTAIN FINDINGS AND APPROVING A
COMMUNITY DEVELOPMENT BLOCK GRANT
AGREEMENT WITH THE COUNTY OF ORANGE AND
A COOPERATION AGREEMENT WITH
THE ORANGE REDEVELOPMENT AGENCY
RELATING
THERETO.WHEREAS, pursuant to Section33334.2(a) and 33334.6(c) of theCommunityRedevdopmentLaw (commencing with Section 33000 of the Health and Safety Codeandhereinafterreferredtoasthe "CRL") not less than 20% of all taxes which are allocated totheOrangeRedevelopmentAgency ("Agency") are set aside by the Agency in its Low- andModerate-Income Housing Fund ("Housing Fund") and used by the Agency for the purpose ofincreasing,improving and preserving the community's supply of low- and moderate-incomehousingavailableataffordablehousingcoststopersonsandfamiliesoflow- and moderate income, including very low income persons and
families; and WHEREAS, pursuant to Section 33334.2(e) ofthe CRL, the Agency may exerciseanyandallofitspowerstocarryoutthis
purpose; and WHEREAS, pursuant to Section 33334.6(a) of the CRL, the CaliforniaStateLegislaturehasfoundanddeclaredthattheprovisionofaffordablehousingoutsideofredevelopmentprojectareascanbeofdirectbenefittothoseprojectsinassistingtheaccomplishmentofproject
objectives;and WHEREAS, pursuant toSection 33334.2(g) of the CRL, the Agency mayuseHousingFundstoassistintheprovisionofhousingforlowandmoderateincomehouseholds, including very low-income households, outside the boundaries of its redevelopment projectareasuponresolutionoftheCityCouncilandtheAgencythatsuchusewillbeofbenefittothe
redevelopment projects;and WHEREAS, Orange Housing Development Corporation, a California nonprofit corporation ("OHDC"), has entered into an agreement for the acquisition of
certain improved real property located at 264-280 South Esplanade Street (the "Site"), whichislocatedoutsidetheboundarilesoftheCity's
redevelopmentprojectareas; and
WHEREAS, the Site is improved with 27 dwelling units, which units OHDC has inspected
and believes to be suitable for the provision and maintenance of affordable housing; and
WHEREAS, OHDC has requested the assistance of the Agency to make available to
OHDC $1,153,360 in Housing Funds to be used to acquire and rehabilitate the Site and, thereafter,
to cause the dwelling units at the Site to be made available and rented to persons and families of
low income, including very low income, for fifty-five (55) years (the "Project"), as more fully
set forth in an Affordable Housing Agreement ("Agreement") to be entered into by and between
the Agency and OHDC in a form acceptable to the Agency;
and WHEREAS, the City Council desires to find and determine that the use of a portion of
the funds fi"om the Housing Fund outside the boundaries of the City's redevelopment project areas
for the Project in accordance with the terms and provisions of the Agreement, is for the benefit of
the City's redevelopment project areas and is in the vital and best interests of the City of Orange and
the health, safety and welfare of its residents, and in accord "vith the public purposes and provisions
of applicable federal, state and local laws and requirements;
and WHEREAS, the Project consists of the rehabilitation of dwelling units of a
previously existing low-rent housing project and is not, therefore, a "low rent housing project"
within the meaning of Article XXXN of the California Construction requiring voter approval at
an
election;and WHEREAS, the City Council and the governing board of the Agency
have duly considered all terms and conditions of the Agreement as set forth in the agenda report
presented to it and ,my testimony received at the meeting at which this matter was considered and
believes that the activities described therein are in the best interests of the City and health, safety,
morals and welfart: of its residents, and in accord with the public purposes and provisions of
applicable State and local law requirements, and that such activities promote the affordable housing
objectives of the CRL as well as the Redevelopment Plans for the Northwest, Southwest and
Tustin Street Redevelopment
Projects; and WHEREAS, the County of Orange ("County") has received funds from the
United States Department of Housing and Urban Development under the Community Development
Block Grant Program ("CDBG Program"), and has agreed to enter into that certain
Community Development Block Grant Agreement ("CDBG Agreement") with the City of Orange ("City"), pursuant
to which the County has agreed to set aside $500,000 in CDBG Program funds for use by the City
for the purposes of providing aflordable housing, and the City wishes to enter into the
CDBG Agreement and allocate the $500,000 of CDBG Program funds for property acquisition for the
Project; and Reso.
NJ.
WHEREAS, the City and Agency wish to coordinate the provision of Agency and City
assist~mce for the Project in one agreement, and propose to enter into an agreement (the
Cooperation Agreement") to provide for the disbursement and use of CDBG Program funds for
the Project pursuant to the terms and conditions set forth in the Agreement.
NOW, THEREFORE, the City Council of the City of Orange resolves, on the basis of the
facts set forth in the agenda report presented to it and any testimony received at the meeting at
which this matter was considered, as follows:
Section 1. That the Agency's use of funds from the Housing Fund in the amount of
1,153,360 for the Project will be of benefit to the City's redevelopment projects.
Section 2. That the provision of affordable housing pursuant to the Agreement is of benefit
to each of the following redevelopment projects and their project areas: the Tustin Street
Redevelopment Project; the Southwest Redevelopment Project; and the Northwest Redevelopment
Project.
Section 3. The City Council approves the CDBG Agreement between the City and the
County in accordance with terms and provisions set forth in the CDBG Agreement, attached hereto
as Exhibit "A" and made a part hereof by reference, and hereby authorizes and directs the Mayor,
or designee, to execute the CDBG Agreement on behalf ofthe City.
Section 4. The City Council approves the preparation of the Agreement between OHDC
and the Agency in accordance with the terms and provisions set forth in the agenda report presented
to the City Council and any testimony received at the meeting at which this matter was considered
and hereby authorizes and directs the Chairman of the Agency to execute the Agreement on behalf
of the Agency in a form to be prepared by the General Counsel of the Agency (or his designee)
upon consultation with the City Attorney and to take all steps and sign all documents and
instruments to carry out the Agreement on behalf ofthe Agency.
Section 5. The City Council approves the preparation of the Cooperation Agreement
between the Agency and the City in accordance with the terms and provisions set forth in the
agenda report presented to the City Council and any testimony presented at the meeting at which
this matter was considered and hereby authorizes and directs the Mayor, or designee, to execute the
Cooperation Agreement on behalf of the City upon consultation with the City Attorney and to take
all steps and sign all documents and instruments to carry out the Cooperation Agreement on behalf
of the City.
Reso. No. 9254
3-
ADOPTED this ~ day of April ,2000.
lL----11 tj< ;
f/ ;
r /ntz,Mayorofthe . of
Orange 1/
V
I i,
j
ATTEST:d?/~p;
t-Cassandra J. Ca , CIty Clerk of the CIty of
Orange hereby certify that the foregoing Resolution was duly and regularly adopted by the
City Council of the City of Orange at a regular meeting thereof held on the .JJ..!!!.. day of Apr
il 2000, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAlN:CO~CIL~11BERS: MURPHY, SLATER, COONTZ, SPURGEON,
ALVAREZ CO~CILME11BERS:
NONE CO~CILME11BERS:
NONE CO~CILME11BERS:
NONE Cassandra 1. Cat ,CIty Clerk of the CIty of
Orange Reso. No.
9254
Contract No. KC98085
EXHIBIT "A"
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8 TITLE OF PROJECT: Acquisition of Affordable Housing
COUNTY OF ORANGE
HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
COMMUNITY DEVELOPMENT BLOCK GRANT
Program Year 1999-
2000)
9 10 MEMORANDUM OF CONTRACT entered into
on
11 12 BY AND BETWEEN City of Orange, a municipal
corporation,in the State of California, and
hereinafter referred to as "
CITY".
13
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15 16 AND COUNTY OF ORANGE, a political
subdivision of the State of California and recognized
Urban County under the Federal Housing
and Community Development Act of 1974 (
Public Law 93-383), as amended,
hereinafter
referred
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19 20 21 to
as "COUNTY".
22 RECITALS 23 This Contract is made with reference to the following facts,
among others:24 WHEREAS, the COUNTY had applied for and received funds from the
United States 25 Department of Housing and Urban Development (HUD) under Title I of the
Housing and 26 Community Development Act of 1974 (Public Law 93-383, as amended) for
the purpose of 27 funding projects meeting one of the HUD
national objectives; and 28 WHEREAS, COUNTY, by virtue of the July 21, 1995 Stipulation and
Judgement in Case 29 No. BS029472 (City of Orange vs. Orange County Sheriff/Coroner's
Department; Orange County 30 Board of Supervisors) relating to the expansion of the Theo Lacy detention facility,
agreed to set 31 aside $500,000 (five hundred thousand dollars and 00 cents) in
Community Development Block 32 (CDBG) Grant funds for use by the CITY for the purpose of providing
affordable housing (24 33 CFR Part 570.
201(a)); and
Contract No. KC98085
WHEREAS "CITY acknowledges and agrees that the $500,000 contribution being made
2 by COUNTY pursuant to this Agreement fully satisfies COUNTY'S obligation contained in
3 Paragraph 25 of the Stipulation and Judgment filed July 21, 1995 in the City of Orange v. Orange
4 County Sheriff/Coroner's Department, et al. Case No. BS029472."
5 WHEREAS, CITY has located a potential site for acquisition and has requested that the
6 aforementioned set aside funds be made available; ana
7 WHEREAS, COUNTY has an adopted Annual Action Plan, including any mid-
year 8 amendments, which sets forth the project described herein;
and 9 WHEREAS, HUD has accepted and certified the aforementioned Annual Action
Plan.10 NOW, THEREFORE, the parties enter into the
following:
11
AGREEMENT 12 I.CONTRACT
FORM 13 This Contract consists
of:14 A. The following
provisions;15 B. All related Federal Regulations, including 24 CFR
570;16 C. Appropriate State and County laws and regulations;
and,17 D. The attached CITY SCOPE OF SERVICES, which is incorporated as if fully
set 18 forth herein;
and,
19 20 II.
DEFINITIONS 21 For the purposes of this Contract the following definitions shall
apply:22 A. HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT (H&
CD):23 The County department designated as the Lead Agency for the development and
implementation 24 of the County of Orange Urban County Program's Consolidated
Plan.25 B. DIRECTOR: Director of the Orange County Housing and
Community 26 Development Department, or
designee.27 C. DEVELOPER: The CITY will enter into a separate agreement with an
independent 28 party who shall be responsible for the oversight and administration of the PROJECT.
The 29 independent party is herein referred to as the
DEVELOPER.30 D. PROGRAM INCOME: The gross income received by the CITY directly
generated 31 from the use of the subj ect program
funds.32 E. CONSTRUCTION BID PACKAGE: A package of bidding documents
which 33 includes the proposal, bidding instructions, contract documents, detailed estimated costs,
and 2 -
Ul1l1d\;L l"U. ~~70VOJ
plans and specifications for a construction project, all prepared in accordance with applicable
2 Federal regulations.
3 F. GRANTEE PERFORMANCE REPORT (GPR) INFORMATION FORM: A
4 project activity data document provided by COUNTY to CITY used to monitor and track the
5 performance of CITY.
6 G. HOUSING AND COMMUNITY DEVELOPMENT (H&CD) POLICY ON
7 DOCUMENTING SUBRECIPIENT COSTS: A County document setting policies regarding types
8 of documentation required to support the costs incurred and paid (including but not limited to
9 copies of paid invoices, payroll registers, bank: statements, etc.).
10 H. PROJECT: The County is proposing to provide the CITY $500,000 as settlement
11 to be used for affordable housing as defined under Community Development Block Grant (CDBG)
12 regulations at 24 CFR Part 570.20l(a). CITY has verified to COUNTY that funds will be used for
13 acquisition of property consisting of one twenty-seven (27) unit facility on certain property
located 14 at 264 through 280 South Esplanade Street, in the City of Orange, California, and when
completely 15 rehabilitated, will lease such units to persons of very low, low and moderate income at
an 16 affordable rent rate, as provided in separate agreements between the CITY and DEVELOPER (
as 17 the term is defined
herein).
18 19 III.CONDITIONS OF
FUNDING 20 A. This Contract is conditional upon COUNTY being funded by HUD and the
release 21 of funds to
COUNTY.22 B. Eligible costs related to services provided by CITY must be incurred during
the 23 period beginning Aprill, 2000. The Project shall be completed and all funds provided
through 24 this contract shall be expended on eligible project activities prior to June 30,
2000.25 C. CITY shall comply with all federal regulations governing CDBG
funds.
26 27 IV.
AMENDMENTS 28 A. COUNTY and SUBRECIPIENT may amend this Contract at any time provided
that 29 any such amendment does not alter the scope of activity (i.e. acquisition) to this Contract,
is 30 executed in writing, and signed by a duly authorized representative of each organization.
Such 31 amendment shall not invalidate this Contract, nor relieve or release COUNTY or
SUBRECIPIENT 3 -
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Contract No. KC98085
from their respective obligations under this Contract. Any proposed amendment to this Contract
2 shall be submitted to, and approved by, the COUNTY prior to commencement of any activity
3 covered by said amendment.
4 B. COUNTY may, at its sole discretion, amend this Contract to conform with federal, state
5 or local governmental guidelines, policies and available funding amounts.
6 C. Contract Extension
7 1. The term of this Contract and the provisions herein may be extended to
8 cover an additional time period as specified herein.
9 2. Prior to the DIRECTOR authorizing any Contract extension, the COUNTY
10 must receive a written request from a duly authorized representative of the CITY to
11 extend this Contract.
12 3. The date for PROJECT completion and expenditure of all funds may be
13 extended by the DIRECTOR for a period not to exceed twelve (12) months from June 30, 2000.
14 Any such extension must be in writing and signed by the DIRECTOR. In the event of such
15 extension, the deadline for submittal of invoices shall be 60 days after the new expiration date.
16 4. Any request for the extension of this Contract must be received by the
17 DIRECTOR at least 45 days from this contract's expiration date.
18
19 V.PAYMENTS
20 Funds shall not be disbursed for any costs incurred prior to the certification by COUNTY and/or
21 HUD of environmental compliance, as further defined in Section XII of this Contract.
22 A. Contract Amount
23 It is expressly agreed and understood that the total amount to be paid by the
24 COUNTY under this Contract shall not exceed $500,000. Furthermore, disbursement of funds
25 shall be made in accordance with the budget specified in Section II of the CITY SCOPE OF
26 SERVICES.
27 B. Payment of Project Activities
28 1. The COUNTY will disburse fimds to the City's escrow account for eligible
29 project related costs only. The CITY will request disbursement of funds from the COUNTY on a
30 timely basis and provide adequate documentation as required by the COUNTY. In addition, CITY
31 will provide a progress performance report (i.e. Grantee Performance Report (GPR) Information
32 foml) for the time period and activities covered.
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Contract No. KC98085
C. Program Income
1. The CITY shall comply with regulations set forth in 24 CFR 570.504, as
well as all applicable State or County regulations concerning the reporting and payment procedures
for program income.
2. All Program Income accrued shall remain with the CITY and shall be
expended on eligible Program costs and expenses as defined under 24 CFR 570.
VI. GENERAL ADMINISTRA nON
A. CITY shall provide the oversight, administration and project management necessary
to accomplish all contracted activities in a timely manner. The CITY also agrees to comply with
all applicable federal, state and local laws and regulations governing the funds provided under this
Contract.
B. Independent Contractor
Nothing contained in this Contract is intended to, or shall be construed in any
marmer, as creating or establishing the relationship of employer/employee between the parties.
The CITY shall at all times remain an independent contractor with respect to the services to be
performed under this Contract. The COUNTY shall be exempt from payment of any
Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers'
Compensation Insurance as the CITY is an independent contractor.
C. Hold Harmless
The CITY shall hold harmless, defend and indemnify the COUNTY from any and
all claims, actions, suits, charges, and judgments whatsoever that arise out of the
CITY's performance or nonperfomlance of the project and/or scope of work called for in this
Contract.
D. Assignability
The CITY shall not assign or transfer any interest in this Contract without the prior
writ1ten consent of the COUNTY.
E. Subcontracts
1. The CITY shall submit all subcontract agreements to COUNTY for review
and consent.
2. The CITY shall assume responsibility for all subcontracted services to
assure Contract compliance.
5 -
Contract No. KC98085
3. The CITY shall cause all this Contract in its entirety to be included in and
2 made a part of any subcontract executed in the performance of this Contract.
3 F. Relocation
4 The CITY shall, in all matters relating to the project:
5 1. Take all reasonable steps to minimize displacement by providing tenants
6 reasonable opportunity to lease and occupy dwelling units in the project being improved; and,
7 2. Submit to COUNTY a Plan outlining financial and advisory assistance in
8 securing temporary housing for any eligible tenant who is temporarily or permanently relocated
9 due to the project; and,
10 3. Comply with the Uniform Relocation Assistance and Real Property
11 Acquisition Policies Act of 1970 and 49 CFR 24 in providing relocation assistance for persons
12 displaced by the project.
13 4. Comply with the California Relocation Assistance Law, Government Code
14 Section 7260, et seq., in providing relocation assistance for persons displaced by the project.
15 G. Insurance
16 1. CITY shall maintain, during the term of this Contract, the following
17 insurance with terms satisfactory to the COUNTY. Proof of such insurance acceptable to
18 COUJ'-.JTYshall be submitted to the COUNTY within thirty (30) days of the effective date of this 19
Contract or this Contract will be terminated. The CITY shall provide COUNTY thirty (30) days 20
written notice of any reduction in the amount of such j,nsurance.21 (
a) Worker's Compensation Insurance as prescribed by applicable law 22
and Employer's Liability Insurance, including waiver of subrogation.23 (
b) Comprehensive General Liability Insurance (bodily injury and 24
property damage), in the amount of$1,000,000 per occurrence and annual aggregate. This policy 25
shall name the COUNTY as additional insured.26 (
c) Automobile bodily injury and property damage liability insurance,27
the limits of which shall not be less than $1,000,000 per occurrence and annual aggregate. This 28
policy shall name the County as additional insured.29
2. CITY shall submit to the COUNTY certificates of insurance 30
necessary to satisfy the COUNTY that such insurance provisions have been complied with, and 31
shall keep such insurance in effect throughout the term of this Contract.32
3. Required limits may be satisfied by a combination of primary and excess 33
policies.6 -
Contract No. KC98085
H. Grantor Recognition
2 The CITY shall insure recognition of the role of the grantor agency in providing
3 services through this Contract. All activities, facilities and items utilized pursuant to this Contract
4 shall be prominently labeled as to funding source. In addition, the CITY will include a reference
5 to the support provided herein in all publications made possible with funds made available under
6 this Contract.
7 I. Records to be Maintained
8 The CITY shall maintain all records required by the Federal regulations specified in
9 24 CFR 570.503(b)(2), 570.506,570.507 and 570.508 that are pertinent to the activities to be
10 funded under this Contract. Such records shall include, but not be limited to:
11 1. Records providing a full description of each activity undertaken;
12 2. Records demonstrating that each activity undertaken meets one ofthe National
13 Objectives of the CDBG program;
14 3. Records required to determine the eligibility of activities;
15 4. Records required to document the acquisition, improvement, use or disposition
16 of real property acquired or improved with CDBG assistance;
17 5. Records documenting compliance with the fair housing and equal opportunity
18 components of the CDBG program;
19 6. Financial records as required by 24 CFR 570.502, and OMB Circular
20 A-lID;
and 21 7. Other records necessary to document compliance with Subpart K of 24 CPR
570.22 J.
Retention
23 The CITY shall retain all records pertinent to expenditures incurred under this
24 Contract for a period of five (5) years after the termmation of all activities funded under
25 this Contract, or after the resolution of all Federal audit findings, which ever occurs later. Records
26 for non-expendable property acquired with funds under this Contract shall be retained for five (
5)27 years after final disposition of such property. Records for any displaced person must be kept
for 28 five (5) years after he/she has received final
payment.29 K. Client
Data 30 The CITY shall maintain client data demonstrating client eligibility for
services 31 provided for a period of five (5) years after the termination of all activities funded under
this 32 Contract, or after the resolution of all Federal audit findings, which ever occurs later. Such
data 33 shaD include, but not be limited to, client name, address, verifiable income level (as
documented 7 -
Contract No. KC98085
by income tax returns, employee payroll records, retirement statements, etc. or other
2 third party documentation acceptable to COUNTY, for determining eligibility), and description of
3 service provided. Such information shall be made available to HUD representatives, COUNTY
4 monitors, or their designees, for review upon request.
5 L. Property Records
6 The CITY shall maintain real property inventory records which clearly identify
7 properties purchased, improved or sold. Properties retained shall continue to meet eligibility
8 criterla, rental limitations, health, safety and building codes, etc., and shall conform with the
9 "changes in use" restrictions specified in 24 CFR 570505.
10 M. Close-
Out 11 CITY's obligation to the COUNTY shall not end until all close-out
requirements are 12 completed. Activities during this close-out period shall include, but are not
limited to: making 13 final payments, disposing of program assets (including the return of all
unused materials and 14 equipment), program income balances, and receivable accounts to the
COUNTY and determining 15 the
custodianship of records.16 N.
Year 2000 Compliance 17 CITY represents and warrants fault-free performance in processing
of date and date-related 18 data, including but not limited to, calculating, comparing,
and sequencing, by all hardware,19 software, and firmware products that are used, individually and in
combination, in the provision of 20 or that in any way impact the delivery of services by
CITY under this Agreement. Fault-free 21 includes the manipulation of this data with dates prior to,
through, and beyond January 1,2000,22 and shall be transparent to the user. CITY further
represents and warrants fault-free performance of 23 facility related systems that impact the
delivery of services by CITY under this 24 Agreement, including but not limited
to security systems, fire alarm systems, elevator 25 systems, heating/air
conditioning
systems, or any
other computer-controlled system.26 27 VII. PERFORMANCE 28 A. CITY shall
comply with all applicable HUD regulations concerning administrative 29 requirements and maintain records as to
services provided and total number of persons served 30 through the project, including
but not limited to, population-served analysis (i.e.31 extremely-low income
persons, very-low income persons and low-income persons as defined by 32
HUD). Such information shall be available for periodic monitoring by representatives of 33
COUNTY or
Contract No. KC98085
B. CITY assures COUNTY that the project described herein will be operated for the
2 purpose specified in the City Scope of Services. Furthermore, CITY agrees to provide COUNTY
3 with documentation that CITY has placed long teml affordability restrictions on the property being
4 acquired.
5 C. CITY shall complete and submit a Year-End Grantee Performance Report (
GPR)6 Infi:mnation Form by July 15, following the fiscal year in which this Contract is in force.
Said 7 GPR Information Form shall consist ofa cumulative reporting of project related
accomplishments 8 relative to the attached CITY SCOPE OF
SERVICES.9 D. CITY acknowledges that the GPR Form is a monitoring tool that will be
reviewed 10 and evaluated to determine CITY's level of accomplishments relative to this
Contract.
11 12 VIII. PERFORMANCE
MONITORING 13 A. The COUNTY shall monitor the performance of the CITY against the goals
and 14 performance standards required herein. Substandard performance, as determined
by 15 COUNTY, will constitute non-compliance with this Contract for which the
COUNTY may 16 terminate
the Contract.17 B. COUNTY may periodically evaluate the CITY's progress in complying
with the 18 terms of this Contract. CITY shall cooperate fully during such monitoring. COUNTY
may report 19 the findings of each monitoring to
the
CITY.20 21 IX. MODIFICATIONS/TRANSFERS OF
REAL PROPERTY 22 A. Any proposed modification or change in use of real property acquired
or improved,23 in whole or in part, by CDBG funds from the use planned at the time of the
acquisition or 24 improvement, including disposition, is
expressly prohibited.25 B. The CITY shall ensure that any real property under the CITY's control
that was 26 acquired or improved in whole or in part with CDBG funds in excess of$25,000
is either:27 1. Used to meet one of the national objectives in 24 CFR 570.208
until five 28 years, or for such period of time as detennined to be appropriate by COUNTY, after
expiration of 29 the Contract and close-out of the CITY's participation in the CDBG
Program, or, until 30 five years after the close-out of the grant from which the assistance to
the property was provided,31
whichever occurs first; or,32 2. Disposed of in a manner which results in the
COUNTY being reimbursed in 33 an amount equal to the current fair market value of the property less any
portion of
thevalue
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Contract No. KC98085
attribmable to expenditures of non-CDBG funds for acquisition of, or improvement to,
the 2 property. Such reimbursement is not required after the period of time specified in accordance
with 3 IX. B. 1.
above.
4 5 X.
AUDITS 6 If CITY expends Federal funds in any fiscal year which equal or exceed $300,000 (
three 7 hundred thousand dollars and no cents) as specified in Office of Management
and 8 Budg(:t Circulars A-128 and A-133, CITY shall cause an audit to be performed
in accordance with 9 Federal laws and regulations governing the programs in which they participate.
If applicable, the 10 CITY shall submit two (2) copies of such audit report to COUNTY within six months of
the end of 11 each fiscal year in which the CITY has received federal funding. If CITY is
exempt from statutory 12 audit requirements then it shall maintain records which are available for review
by COUNTY or
13
Federal officials.14 15 XI.
FEDERAL ADMINISTRATIVE REQUIREMENTS 16
A. Financial Management 17
1. Accounting Standards 18 The CITY agrees to comply with Attachment C ofOMB
Circular A-l10 and 19 agrees to adhere to the accounting principles and procedures
required therein, utilize adequate 20 internal controls, and maintain necessary source documentation
for all costs incurred.
21 2. Cost Principles 22 The CITY shall administer its program in
confonnance with OMB Circulars 23 A-122, "Cost Principles for Non-Profit Organizations,"
or A-21, "Cost Principles for Educational 24 Institutions," (and if the CITY is
a governmental or quasi-governmental agency, the applicable 25 sections of 24 CFR
85, "Uniform Administrative Requirements for Grants and Cooperative 26 Agreements to State and Local Governments,")
as applicable. These principles shall be applied for 27 all costs incurred
whether charged on a
direct or indirect
basis.28 B. Civil Rights 29 1. Compliance 30 The CITY agrees to comply with Title VI
of the Civil Rights Act of 1964, as 31 amended, Title VIII of the Civil Rights Act of 1968, as amended,
Section 109 of the Title I of the 32 Housing and Community Development Act of
1974,
Section 504
Contract No. KC98085
973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
2 Order 11063, and with Executive Order 11246, as amended by Executive Orders 11375 and 12086.
3 2. Nondiscrimination
4 The CITY shall not discriminate against any employee or
5 applicant for employment because ofrace, color, creed, religion, ancestry, national origin, sex,
6 disability or other handicap, age, marital status, or status with regard to public assistance. The
7 CITY will take affirmative action to insure that all employment practices are free from such
8 discrimination. Such employment practices include, but are not limited to, the following: hiring,
9 upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of
10 payor other forms of compensation, and selection for training, including apprenticeship. The
11 CITY agrees to post in conspicuous places, available to employees and applicants for employment,
12 notices to be provided by the contracting agency setting forth the provisions of this
13 nondiscrimination clause.
14 3. Rehabilitation Act
15 The CITY agrees to comply with any federal regulations issued pursuant to
16 compliance with Section 504 of the Rehabilitation Act of 1973, (29 D.S.C. 706) which prohibits
17 discrimination against the handicapped in any federally assisted program. The COUNTY
18 shall provide the CITY with any guidelines necessary for compliance with that portion of the
19 regulations in force during the term of this Contract.
20 C. Affirmative Action
21 The CITY agrees that it shall be committed to carry out an Affirmative Action
22 Program that encompasses the principles provided in President's Executive Order 11246 of
23 September 24, 1965.
24 D. Employment Restrictions
25 1. Prohibited Activity
26 The CITY is prohibited from using funds provided herein, or personnel
27 employed in the administration of the program, for: political activities, sectarian or religious
28 activities, lobbying, political patronage, and nepotism activities.
29 2. OSHA
30 Where employees are engaged in activities not covered under the
31 Occupational Safety and Health Act of 1970, they shall not be required or permitted to work, be
32 trained, or receive services in buildings or surroundings or under working conditions which are
33 unsanitary, hazardous or dangerous to the participants' health or safety.
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Contract No. KC98085
3, Economic Opportunities
2 (a) Compliance
3 Compliance with the provisions of "Section 3" of the Housing and
4 Urban Development Act of 1968, as amended, 12 U.S.c. 1701 et. seq., the regulations set forth in
5 24 CFR 135, and all applicable rules and orders issued hereunder prior to the execution ofthis
6 Contract, shall be a condition ofthe federal financial assistance provided under this Contract.
7 Failure to fulfill these requirements shall subject the CITY and any subrecipients, their successors
8 and assigns, to those sanctions specified by the Contract through which federal assistance is
9 provided. The CITY certifies and agrees that no contractual or other disability exists which would
10 prevent compliance with requirements.
11 The CITY further agrees to comply with these "Section 3" requirements and to include
12 the following language in any subcontract executed under this Contract:
13 "The work to be performed under this Contract is a project assigned under a program
14 roviding direct federal financial assistance from HUD and is subject to the requirements of
15 Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 u.s.e. 1701.
16 Section 3 requires that to the greatest extent feasible opportunities for training and employment be
17 given to lower income residents of the project area and contracts for work in connection with the
18 roject be awarded to business concerns which are located in, or owned in substantial part by
19 ersons residing in the areas of the project. "
20 (b) Notifications
21 The CITY agrees to send to each labor organization or representative
22 of workers with which it has a collective bargaining agreement or other contract or understanding,
23 if any, a notice advising said labor organization or worker's representative of its commitments
24 under this "Section 3" clause and shall post copies of the notice in conspicuous places available to
25 employees and applicants for employment or training.
26 ( c) Subcontracts
27 The CITY will include "Section 3" clause in every subcontract and
28 will take appropriate action pursuant to the subcontract upon a finding that a subrecipient is in
29 violation of regulations issued by the Grantor Agency. The CITY will not subcontract with any
30 subreeipient where it has notice or knowledge that the latter has been found in violation of
31 regulations under 24 CFR 135 and will not let any subcontract unless the subrecipient has first
32 provided it with a preliminary statement of ability to comply with the requirements of these
33 regulations.
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4. Hatch Act
2 The CITY agrees that no funds provided, nor personnel employed under this
3 Contract, shall be in any way or to any extent engaged in the conduct of political activities in
4 violation of the Hatch Act, 5 U.S.c. Section 1501 et seq.
5 5. Conflict of Interest
6 The CITY agrees to abide by the provisions of24 CFR 570.611 with respect
7 to conflicts of interest, and covenants that if presently has no financial interest and shall not
8 acquire any financial interest, direct or indirect, wh:ich would conflict in any manner or degree with
9 the performance of services required under this Contract. The CITY further covenants that in the
10 performance of this Contract no person having such a financial interest shall be employed or
11 retained by the CITY hereunder. These conflict of interest provisions apply to any person who is
12 an employee, agent, consultant, officer, or elected official or appointed official of the COUNTY or
13 CITY, or any designated public agencies which are receiving funds under the CDBG Entitlement
14 program.
15 E. Copyright
16 If this Contract results in any copyrightable material, the COUNTY and/or grantor
17 agency reserves the right to royalty-free, non-exclusive and irrevocable license
to reproduce,18 publish or otherwise use and to authorize others to use, the work for
government purposes.19 F.
Religious Organization 20 The CITY agrees that funds provided under this Contract will not be
utilized for 21 religious activities, to promote religious interest, or for the benefit of a religious
organization in 22 accordance with the federal regulations specified in 24 CFR570.
200(
j).23 24 XII.
ENVIRONMENTAL CONDITIONS 25 CITY shall comply with HUD Environmental Review ~nder HUD regulations at
24 CFR 26 58, which implement the National Environmental Policy Act (NEPA); and,
the California 27 Environmental Quality Act (CEQA). No costs shall be incurred and no funds shall
be disbursed 28 prior to certification by COUNTY and/or HUD of
environmental compliance.29 A. CITY shall incur no costs for any project related activity defined in
CITY SCOPE 30 OF SERVICES and COUNTY shall not disburse funds until the COUNTY and/or HUD
certify the 31
environmental compliance.32 B. CITY shall provide requested materials to COUNTY for the
Environmental Review 33 process required by
applicable regulations.Contract
No. KC98085
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Contract No. KC98085
C. Air and Water
2 The CITY agrees to comply with the following regulations insofar as they apply to
3 the performance of this Contract:
4 1. Clean Air Act, 42 U.S.c., 1857, et seq.
5 2. Federal Water Pollution Control Act, as amended, 33 U.S.c. 1251, et seq..
6 3. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR 50
7 and 58, as amended.
8 D. Flood Disaster Protection
9 The CITY agrees to comply with the requirements of the Flood Disaster Protection
10 Act of 1973 (P.L. 2234), including as applicable any regulations setforth in 24 CFR 55
11 (implementing Executive Order 11988), in regard to the sale, lease or other transfer of land
12 acquired, cleared or improved under the terms of this Contract, as it may apply to the provisions of
13 this Contract.
14 E. Lead-Based
Paint 15 The CITY agrees that any construction or rehabilitation of
residential 16 structures with assistance provided under this Contract shall be subject to HUD Lead-
Based Paint 17 Regulations at 24 CFR 570.608, and 24 CFR 35, and in particular Sub-Part
B thereof. Such 18 regulations pertain to all HUD-assisted housing and require that
all owners, prospective owners,19 and tenants or properties constructed prior to 1978 be properly notified
that such properties may 20 include lead-based paint. Such notification shall point out the
hazards of lead-based paint and 21 explain the symptoms, treatment and precautions that should
be taken when dealing
with lead-22 based
paint poisoning 23 F. Historic Preservation 24 The CITY agrees to comply with the
Historic Preservation requirements set forth in 25 the National Historic Preservation Act of 1966, as amended (16 U.S.
c. 470) and the procedures set 26 forth in 36 CFR 800, Advisory Council on
Historic Preservation Procedures for Protection of 27 Historic Properties, insofar as they apply
to the performance of this contact.28 In general, this requires concurrence
from the State Historic Preservation Officer 29 for all rehabilitation and demolition of historic properties that are fifty years
old or older or that are 30 included on a Federal,
State,
or
local
historic property
XIII. NOTICES
2 Any communication with the COUNTY and CITY concerning this Contract shall be
3 directed as follows:
4 COUNTY:
5 County of Orange
6 Housing and Community Development Department
7 1770 North Broadway
8 Santa Ana, California 92706
9 Attention: Housing Development Manager
10 CITY:
11 City of Orange
12 300 East Chapman Avenue
13 Orange, California 92666
14 Attention: Housing Manager
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Contract No. KC98085
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Contract No. KC98085
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3 IN WITNESS WIIEREOF, CITY has caused this Contract to be executed by its
4 Mayor and attested by its City Clerk; COUNTY has caused this Contract to be executed by the
5 Director of the Housing and Community Development Department; all having been duly
6 authorized by the City Council of Orange and the Orange County Board of Supervisors.
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9 CITY:ATTEST:
City of Orange, a municipal corporation
in the State of California
By:
Name:
By:Title: City Clerk
Name:
Date:
Title: Mayor
Date:
COUNTY OF ORANGE, a political
subdivision of the State of California
By:
Director
Housing and Community
Development Department
Date:
I I II I I I I I I I I I I I II I I II I II I II I II I I I I I I / I I /1 I I I II 1/1 II I II / I I Ii I I I I I I I I I I I I II I I I I II I II II I I I I I I I I I I I I I I I I I I I II 1/1 I I I I I I I /1 II I I I I I I I I II I II I I I I III/I
ORIGINAL FORM CONTRACT
APPROVED AS TO FORM:
Date: March 27, 2000
COUNTY COUNSEL
ORANGE COUNTY, CALIFORNIA
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Contract No. KC98085
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COMMUNITY DEVELOPMENT BLOCK GRANT
CITY SCOPE OF SERVICES
4
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8 This Scope of Services is part of the Contract between the County of Orange and
9 City of Orange, CITY, dated . It is incorporated into that
10 Contract as though fully set forth therein:
11
12 TITLE OF PROJECT: Acquisition of Affordable Housing
13 CITY: City of Orange
14 ACTIVITY: Acquisition - 24 CFR Part 570.201(a)15
Restriction on Location of Activities -- 24 CFR Part 570.309 16 I.
SCOPE OF SERVICES A. Activities
17 18CITY
will be responsible for acquisition of a 27 unit apartment project described as 19 follows
in a manner satisfactory to the COUNTY and consistent with any standards required as a 20 condition
of providing these funds:21 Proj
ect Description 22 By
virtue of the court settlement regarding the expansion of the Theo Lacy Detention 23 Facility,
the County agreed to establish a special H&CD fund, in the amount of $500.000, for the 24 benefit
of the City of Orange to develop eligible projects under the regulations of the funding 25 program
from which the funds originated. The City of Orange has notified the County that it is 26 prepared
to acquire and rehabilitate a 27-unit apartment to provide additional affordable housing.27
28
The apartment complex is located at 264 through 280 South Esplanade Street, in the City of 29
Orange. Nineteen (19) of the 27 units (i.e. 70%) will be rented to current tenants who have been 30
certified by the City as being very-low income. The remaining eight (8) households have not been
31 certified, but are believed to be within the low income criteria.
32
33 B. In addition to the normal administrative services required as part ofthis Contract,
34 the CITY agrees to meet the following level(s) of accomplishment:
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Contract No. KC98085
2
3 Scope of Work
4 Use of Funds
5 No.1: Acquisition of Property
6
Level of Accomplishment
Purchase of property for the purpose of
providing affordable housing units
8
No.2: N/A
No.3: N/A
C.National Objective
The subject activities are consistent in complying with the following national
7
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11 objective as set forth in Title 24 CFR Part 570.208(3) .
12 Direct Benefit - Low and Moderate Income: Housing 13
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II. BUDGET 15
A. This contract is in an amount not to exceed $500,000 (Five hundred thousand 16
dollars and 00 cents).17
B Project Funding Budget 18
1. The subject proposal will be financed under this contract as follows:19
Acquisition 570.201(a))500,00.00 20
21
Total 500,000.00 22
23
2. Funds shall be used for the following items: Costs relating to the acquisition 24
of property for the purpose of providing affordable housing.25
3. Line items identified in Section II.B.I. above are to be considered as 26
estimates. Compensation for costs incurred during the life ofthis contract may be reallocated 27
between said line items. Upon written request by CITY and written approval by the DIRECTOR,28
compensation may be reallocated to address any costs incurred for previously unbudgeted uses 29
eligible under the applicable State and Federal regulations, particularly the Federal regulations at 30
24 CFR Parts 570.201(a)) and 24 CFR Part 570.309.31
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LomraCI NO. l\..L~bVbJ
CITY CONTACT
City of Orange
300 East Chapman Avenue
Orange, California 92666
Attention: Mary Ellen Laster
Phone: (714) 744-7211 FAX: (714)
288-2598 As the duly authorized representative of the CITY, I certify that the above information is
true and accurate, and, that the source of documentation is available for review by both the
Countyof Orange/Housing and Community Development Department and the United States
Department of Housing and
Urban
Development.
By:
Name:
Title:
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