HomeMy WebLinkAbout2010 Ordinance No. 027•
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ORD INANCE No.J2
SERIES OF 20 10
BY ,\UTHORITY
9 b iii
CONTRACT NO. fo'i-,,/.p/o
COUNCIL BILL NO. 23
INTRODUCED BY COUN n.,
MEMBER JEFFERSON
AN ORDINANCE AME~;DING A STATE OF COLORADO DEPARTMENT OF LO CAL
AF FAIRS NEIGHBORHOOD STABILIZATIO PROGRAM (NS Pl) GRANT BUDGET AND
DECLARING AN EMERGENCY .
WHEREAS, 1he Hous in g and Economic Recovery Acl (1-IBRA) approprialcd $3 .92 bill io n for
1he Neighborhood Stabiliza1ion Program (NSP I) 10 support the acq ui silion , rehab ili1 a1ion , or
demo lition of foreclo sed and abandoned properties; and
WHEREAS , the City Council of th e Ci ty of Englewood , Colo rado authorized the Cit:r's
ap plication for Federal funding through the Neighborhood Slabili zation Pro gram (N~~l ; by the
passage of Reso lution 34, Series of 2009; and
WHEREAS , the Colorado State Housi ng Board approved the Proj ec1 Rebuild ·.,SPI app li cat ion
on Jul y 14, 2009 and awarded 1he Ci1y of Englewood $1,253,379; ond
WJ-IBREAS , th e Cil y Council of the Ci1 y of Englewood , Co lorado authorized Ute exec uti on of
an in tergovernmenlal contracl for Neighbo rhood S1nbi lizati on Program granl funding belween the
Co lorado Departmenl of Loca l Affairs and 1he Ci ty of Englewood, Co lorado by the passage of
Ordinance No . 37, Series of2009; and
WHEREAS, Project Rebuild will purch ase and rehabi litate abandoned or forec losed single-
fami ly properti es in Eng lewood's 1en eligibl e cen sus lracls; and
Wl{EllEAS , the Cily Co un cil oflhe Cily of Eng lewood authorized the acq ui siti on oflen (10)
si ngl e-fami ly vaca nl fo recl osed properti es loca led in 1he len (10) eli gibl e cens us 1rnc1s by
Ordinance No. 49 , Series of2009; and
WHEREA S, lhe ndd ilional NSP I gra nl fw1di ng from lh e Co lorado Department of Loca l Affai rs,
Divisi on of Housin g wi ll all ow for lh e acq ui si ti on of up 10 lhree (3) addit ioual sin glc-liunil y vaca nl
foreclo sed properti es;
OW , THEREFORE, BE IT ORDAINE D BY Tl-IE CITY COUNC IL OF THE CITY OF
E GLEW OO D, COLO RADO, AS FOLLOWS :
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Sectio n I. An emergency is hereby dec la red rcqumng 1mnk·dim c pa ss age of thi s Ord1nn ncc •
b) reason of 1hc September 10. 2010 funcling obl iga ti on deadlin e imposed on all recipients of
thc!)c funds by 1h c federal I lou sing nnd Economic Recovery Act of :!008 , Failure to o bli gate
th ese fund s hy 1h:11 deadli ne co uld result in th e loss of the se ad dn ional fund s, loss of funds
illrca,:ly o bligated. as well as pen alties ai. clclincd 111 th e Ar.t. Accordmgly, 1he < '11y L'0unc1I linci.,
,m e! de tennmcs that an emerge ncy ex ists an I that 1hc pn ssagc ,f thi s Ordina nce is necessary for
the imm cdia 1c preserrn li on of pub li c property. hea lth . peace, a1Ld s=ifc ty, and Sdid Ordinnncc :,;hall
he effective upon it s r-na l passage.
f 1..:.i;t1on ~-I ltc Ma;or is authorized to execut e the lntcrgcw~mmcntal Grant Agreement
ntachcd as·· '.Hn chmc nt J" fo r am'. on behalf of the Cit y of Englewood, Colorado.
Sccllf'll ] Pursunn t '" ,. ·t1c·: \I, Sectio n 40. of 1hc Fnglc\\0od I lomc Rule Chnn cr. the Cit y
Coun cil ha s O::ctc nnin eJ th.,t l\tta chmcnt I. atrnc hccl to thi s Ordina nce . sh:111 not be pu blished
hcc::m:-.c of it:-; si1e. A .• •f\\ , ,~, 1tlnbl c in the office of the Engkwood Ci ty Clerk .
lnt rod m . ..:c: r. ,,{ ·: !J.11 .t s nn Fmcrgcn cy Bill for an r.::1dinancc nnd passed on fi rst rl•ad \1 1g 011
1hc 6th d.:1; •JI .,u ;:,, :n10 .
Pt1 bl1s·ncd a:-a11 E1nc.:rgcncy Bill for an Orclinnn cc 1n th e City's offic1:1I newspaper on th e 9111 da y of
July . 1010 .
Pu bh sl1cd as ,\II Emergen cy 13ill for an 1Jnhn:1n cc on the Ci ty's 111Tici:1l wr.:bsit r.: beginning on th e
0 th day of July. c0 I0 fo r th irt y (JO) da ys.
fka d h)' titl e a, an Fm ergcncy Or<hn :rn c·c .mcl pa ssed on fi nal remlmg on 1hc 1 lJ th clay Clf Jul y.
~t))(!.
Pu ~.\.l'u Uy 111 1c as an Eme rgen cy Ordinan ce in the City's ,,ffici al new spaper as Ordin an ce
J\ .,. q5j. Su ,cs lif 2()10. on the :23 rd d.1 y of Jul y. :2C iv.
Pubh shcd by ti tle a~ an Emcrge m:y Ord m1 111cc on the Ci1y ·s o fti c1n l wcbs ite hegmning 1'111 the '.! I ~1
day <>f July . 2010 frir thii1 y (JO) days.
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.\. Fl11s. C11y l'krk
I. I 11ucn,hia \. Fll 1s. (.'ity Cieri,. of the l'11 y of l:11 glt,\'Ol1d . lj)lo radn. hcn:hy cert ify That th e
.1bov1.: .111d fi."l 1eg~1111g 1:-a t111e cop ) o l tJ.!r l:.nh .. 1gcncy 01d111a1~ JM..'is1.:d 011 i~n.11 reading :111d
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(/ I ouc11 sl11a /\ I Ills
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CONTRACT AMENDMENT
Amendmen t #1 Original Co ntract CMS # 6488
Amendment CMS #
Encumbrance # H0NSP09 308
1) PARTIES
This Amendment to the above-refe renced Original Contract (hereinafter ca ll ed the Contract) is
entered in to by and between City of Engl ewood (he reina ft er ca ll ed "Co ntra ctor"), and th e STATE OF
COLORADO (hereina ft er ca lled ,he "S tat e") acting by and through th e De partment of Local Affaira,
Division cf Housing, (hereinafter ca ll ed the "C DO H ').
2) EFFEC rlVE DATE AND ENFORCEABILITY
This Am enrtm ent shall not be effec ti ve or en forcea ble until it is approved and signed by th e Colo rado
State Con,roller or desig nee (hereinafter ca ll ed th e "Effective Oat.~"). Th e State shall not be lia ble to
pay or relmburso Co ntractor for any perform ance hereunde r including , but not limited to, cos ts or
expt,n ses incurred, or be bound by any pro vision hereof prior lo th e Effec ti ve Date.
3) FACTUAL RECITALS
Th e Part,es entered Into th e Co ntract for/to purchase , rehab ilitate and res ale of 13 homeow ners hip
unit s.
4) CO NSIDERATION-COLORADO SPECIAL PROVISIONS
Th e Partie s a~knowledge th at th e mutual pro mises and covenants contain ed herei n and other good
and va luab le co ns ide ration are su fficient and adequate to support this Am end ment. The Parti es agree
to replacing th e Colo ra do Sp ecia l Provisi ons with the most recent version (if such hav e been updated
si nce th e Contra ct and any modifi ca tion thereto were effec tiv e) as part co nsidera tion for this
Amendm ent.
5) LIMITS OF EFFECT
Th is Am endm ent is inco rporated by refe rence into th e Co ntract , and th e Contrac t and all pr ior
am endm ents thereto, if any , remain in full for ce and effec t except as spec ifically modified herein .
6) MODIFICATIONS .
7he Am endm en t and all prio r ~m~n dm ents th ereto , if any, are modifi ed as follows:
A. §9. of Contl'act. Payments to l1i'a ntee , is revised to read :
"Grant ee shall he paid in th e ia lowing amo unts and man ners, subj ec t to ret urn of any unexpended Grant
Fu nds:
A. Maxi mu m Amo unt
The maximum amount payable under thi s Gra nt to Grantee by ·~e De,•artm '3 nl sha ll be $1 753 3~9.00, as
de termi ned by the Department from avail abl e funds . The Derartmen t sha ll reimbu rse Grant ee for cos ts
ap proved In th e Gra nt budrJet, set forth In Exhibit B. Satisfactory pe rfonna•1ce under th e term s of th is
Grant shall be a conditio n precedent to th e Department's obligatio n to reimburse Grantee . The maximum
amount of Grant Funds payab le as reimbursemeot unde r th is Gra nt , and any ex tension hereof . sh II
inclu de all Gran tee 's fees, cos ts and expenses.·
B. §1 .1 of Exhi bit B, Proj ect Descriptio n, is revised to:
"Th e Clly of Eng lewo od has bee n awa rded an NSP grant in th e amount uf $1,753,379.00 to purcnase,
rehab ilita te, and resa le 13 homeow nership un its. Th ese units will be sold lo households with Incomes at
or below 120% of Area Median In come (AMI). This Project will benefit th e State by sta bilizing com muniti es
through th e purchase, rehabili tati on and sale of aba nd oned or forec losed properties . Th o units will be
located within a Division of Housing (DOH) desig nated cens us block group(s) serving one 01 th e are3s o!
greatest need with in th e State . 30% of these funds will serve households with Incomes at or bel ow 50% of
AMI. The propertir s wi ll be purchased for an avera ge discou nt of at leas t 1% from th e appraised va lu e.
Homes will be rehabi litated to meet current local code and will use En ergy Star applianc es and upgrade s
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and will be sold for no more than the cost of th e pu rch ase and reh abilitation . A minimum or eight (8) hou rs
of home buyer counse ling will be provided to th e potential home buyers through this activity . The City or
Englewood may need to leave a portion or the NSP fundi ng in the property as a soft second for th e home • buyer. In Insta nces where NSP fund ing rema ins In the hom e after sa le to t~e homeow ner, the appropria te
affordab ility period and recapture provisions will be Included in the loan documents . This activity qualifies
unde r 24 CFR 570 .202 and 570 .20 1(a)."
C. §5 of Exhibit B, Paym ent is revised to read :
"Ps :me nts shall be made in accordan ce with the provisions set forth in §9 of th e Grant.
fl •_,1"e nt Sc he dul e. Grant ee shall dis burse Grant Fun ds received from the State wilhln fifteen day s of
t ,ll eioi. Excess fund s shall be re turn ed to th e Department.
Pavmen t Amount
Interim Payment(s) $1,752 ,379 .00 Paid upo n receipt of actual exoense documentation
and writt en requests from the Gran tee for
reimbu rse me nt of ellq ible aoo roved oroarem activities .
Fin al Payment $1,000.00 Paid upon substa nti al co mpl etio n or the Project ,
provided that the Grantee ha s submitted , and the I Deoartment has acceoted all reaul red reoo rts.
Total $ 1 753 ,379 .00
D. §7. of Exh ibit B, Proj ect Budge t, Is rev ised lo read:
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l'i6il!ll",IJ,?J.9J@s!:e&,tJ~!l!§r.1.l.'(!iL l,\',10!!]1!~0.11iit? 91J tiic!r..tt,IJ,tijJ!~~ •!Qlj)J [il~.il!i.~~ li,~M?I!lt,t·F-flJJ.!th~S.U,!OJl ,iJ\~
Prooertv Acouisitlon $1,603 500 .00 $1 303 500 .00 $300,000 .0D Develooer
Aooraisals $4 ,550.00 $4 ,550 .00 Sales Proceeds
Prooertv lnsoeclio n / Estimales $3 900 .00 $3 900 .00 Deve looer • Buildi na Permils and Fees $19,500.00 $19 500.00 Deve looer
Rehabilitation $650 ODO .OD $650 ,000.0D Deve looer ·-
Rehabilitation Conlinnencv $65 000 .'lO $65 000 .0D Develooer
Pre-Purchase Cou nselina $3,250 .00 $3 ,2 50 .00 Sa les Proceeds
Prope rty Carrying Cas is $18,000 .00 $18,000 .00 Sa les Proceed s
Financing Fe es $55 ,000 .00 $55,000 .00 Sales Proceeds
Markelina $130 ,000 .00 $130,000 .00 Sales Proceeds
Leaa l $10 000 .00 $10 ,000 .00 Sales Pro ceeds
Develoaer Fee $408 ,500 .00 $408,500 .00
Proiecl Deliverv Casi s $55 ,379 .00 $5 379 .00 $50 ,000.0D Sa les Proceeds
Slart ua Costs $6,000 .00 $6,000 .00 Sales Proceeds
Oiher Project Activity Cas is $100,000 .00 $100 ,000.00 Sales Proceeds
NSP Adminis~alian $100 000 .00 $350 000 ,00 $65 000 .0D Sa les Proceeds
CDO H Final Pavmenl $1,000 .00 $1,000.00
Tota l $3 ,23 3,579 .00 $1,75 3,379 .00 11 ,480 ,200.0C
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E. §8 .1.1 NSP Assisted Unit Identi ficati on , is revised to read:
"Gran tee shall designate 13 unlUs\ as NSP -assis ted units. The units sha ll be made up of ll-three bedroom . As
these units will be floating unit s over the period of affordability, as described in §8 .1.3 below, Grantee shall •
ensu re th at lhe deslgna led units will be compara bl e in tarms of size, fea ture s, and number of bedrooms to th e
originally designa ted NSP units ."
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Effective Ont o l>/9/0£1 I
F §8 5 of Ex h1 b1 t B, Rent al Proiect Elig ible Bene f1r.1anes, 1s revised lo rea d:
HGran tee sh::::1 11n~'.ure that 11 hous in g uni ts shal l be o-::c up1e d by LMM I households whose income does not
ex ceed the follow ing :
Typ e of Units
Num be~
Un its Max imum income fo r a four-p ers on family ·
NSP-Ass 1sled U11 1ts
(5) single farnil y un its 5 :,_50% AMI ($37,950 )
(8) single fam,I1• umt s 8 :;:120% AMI (S9 1,080)
Total Units 13
7) ST ART DA TE
Thi s Amendment sha ll take effect on 11,e later of ils Effective Date or July 15, 2010 .
8) ORDER OF PRECEDEN C E
Ex cep t for th e Special Provisions , in the even t of nny con fli ct , in consis tenc y, varia n ce, or co ntradiction
be tween the provisions of th is Amendment and any of th e provis ions of the Con tr act. the provisions of
this Amend ment shall in all respects supersede , govern , and contro l. Th e most recen t version of the
Spcr.ial Provisions incorporated into the Con tr act or ar,, amendment shall al ways con trol other
prov ision s ,n th e Contract or any am endm ent s.
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9) AVAILABLE FUNDS
Fin ancial obli gation s of the sta te payable after the current fiscal year are contin gent u pon funds for 4 th at p urpose bei ng appropriated, budgeted, or o therwise made available . I
I THE PARTl !:;!,l !jERETO HAVE EXECUTED THIS AMENDMENT
L=n• s ign i ng for Contractor hereby s w oar and alflnn that they are autho rized to act on Contractor's
behalf und acknowledge that 1,0 S Qt• Is rolylng on their ropro se ntatlons to that offect.
CONTRACTOR STATE OF COLORADO
City of Englewood BIii Ritter, J r. GOVERN OR
De pa rtment of Local Affairs
By: James K. Wo od wa rd
Tlt!e: Ma yor
Dy·
Susan E. Ki rkpatrick , Execulive O:rector
"S ig natu re
PRE-APPROVED FORM CON TRACT REVIE WER
By: t t
Ali son A. George , H ousi ng Programs Manager
ALL CONTRACTS REQUIRE APPROVAL BY THE ST ATE CONTROLLER
CRS §24-30-202 requires the State Controller to approve all State Contracts. This Contract Is not valid until
signed and dated below by the State Controller or delegate. Contractor Is not authorized to begin
perfonnance until such time . If Contractor begins performing prior thereto , the State of Co lorado Is not
obllAated to pay Con tractor for s uch performance or for anv ooods and/or services provided hereunder.
STATE CONTROLLER
Da vid J . McDermott, CPA
By:
Barbara M. Casoy, Con lroller Delegate
Date:
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Effochvo Dato , 6/9/09 1
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COUNCIL COMMUNICATION
Date : Agenda Item : ~Jbject :
Jul y 6, 20 10 1 1 a iii An Emerge ncy Bill fo r an Ordinance am ending
N eighborhood Stabili u ti on Program Grant Bud ge t
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Initiated By: I Staff Source :
Communi ry D evelopment Department Janet G rimm ett, Housing Finan ce Spec iali st
COU ,CIL GOAL AND PREVIOUS COUNC IL ACTION
Ciry Council approved Resolution 34, Se ri es of 2009 on March 23, 2009 auth oriz ing th e
Community Development D epartment to file an appli ca ti on for Federal funding thro ugh th e
Neighborhood Stabi lization Program (NSPl ), Ordinance 37, Se ri es of 2009 approved on
Septembe r 21 , 2009 authorizing th e N eighborhood Stabilization Prog ram (N SPl ) Gran t
Agree m ent, an d Ordinance 49 , Series of 2009 approved on Nove mber 2, 2009 authorizing th e
purchas e of ten propert ies in fulfillm ent of th e NSPl contract, and Reso luti on 35, Seri es of 2010
approving a transfer and supplem ental appropriation of long term asse t reseive funds (LTA R) to
fund improvem ents rela ted to the Federa l Neighborho od Stabi li za tion Pr ogram (N SPl) project.
RECOMMENDED ACTION
Staff recommends th at Co un ci l approve an emergency bill for an ordin ance au th orizing th e
execution of an amendment to the budget of the N eighborhood Stabilization Program grant in the
amount of $500,000 and auth orizing th e purchase of up to three additional unidentifi ed bank-
owned foreclos ed single fam il y res id~nc ;s, This emergency ordinance is necessary due to th e
fundin g obligation dea dlin e of Sep tember 10, 20 10 impose d by th e Fede ral H ousing and Econon,ic
Re covery Act of 2008 (HE RA). Fai lure to obliga te th ese fund s by th at dea dline c0uld reso lt in th e
loss of th ese addi ti o nal :'Jnds, loss of funds already ob li ga ted, as well as p enalti es as defin ed in th e
Act.
BACKGROUND, ANA LY SIS , AN D ALTERNATIVES ID ENTIFI ED
In 2008, th e Fed~ral government pa sse d th e H ousing and Economi c Recovery Ac t (H ERA), the first
new legislati on in a gen eration for ho usin g ancl eco nomic deve lopment. HtRA appropria ted $3.92
bi llion fo r th e N eighborh ood Stabi li za ti on Pro gram (NSP l ) to supp ort th e acq uisiti on, rehabi litati on,
o r dem oliti on of foreclosed and aba ndon ed properti es . Th e State of Colora do 1cceived a total $53
million in NSP l fu nds of w hi ch $37.9 is direc tl y ad mini stered by th e St ate.
On M o•~'' 30, 2009, the Community D evelopment Departm ent submitted an ap ,,li ca tion to the
Colorado Department of Local Affa irs, D ivision of H ous in g fo r NSPl funding for P1oject Rebu ild.
Proje c t Rebu ild w ill p urchase and rehabilitate aba ndoned o r foreclosed single-fa mill' prop erti es in
th e City's ten eligible census trac ts.
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The State H ousing Boa rd approved th e Project Rebuild NSPl application o n Jul y 14, 2009. The •
B"ard aw arded th e Citv $1 ,1 53,379.
Key NSP requirem ests incl ude.:
NS P funds must be expend(•d w1tlu n 18 mo nth s of th e date th e State received funding
(March 2009).
• A multi-year reinves.ment peri od w i1 !1 a term endin g March 10, 20 13.
• H o useholds pu;ct,as in g p ro p ertier ,_,.,;1 undergo a mini mum o f eight hours of HUD·
approved homeoVl nership counsel in,·.
• 100% of ail funds shall b e usoJ to se fVe families whose in come does no t escee d 1 20% of
Area Median In come (AMI).
25% of all funds shall b e used t(, serve fami li es whose Income does not exceed 50% of
AMI.
• ~ehabilitati o n Stand ard s m~st be esta blished (minimum of H ousi ng Quality Standards and
local co des, w ith green building and ene rgy and water efficien c, en couraged).
-Sa le prices o f abandoned or foreclose d ho mes purchased or redeveloperl and so ld to
in dividuals, as a pri mary residen ce, shall be equal to o r less th an th e cos t to acquire and
redeve lop th e hom e.
Purchase prites of ho mes ca n include closing cos ts .
• Appraisa ls are required on all acq uisi ti ons using NSPl funds.
• Foreclose d homes shall be purchased at a di scoo,it of at lea st 1 % fro m th e current market•
app raised va lu e. •
Administrati ve fees up to 2% for n o n-D irect and reaso nable d evelo p er fees to o perate th e
NSPl program are all owed.
The Colo rad o Division of Housing (DOH ) has requ,•s ted th at Commun ity D evelo pment H o using
staff prov irl e a p roposed revised NSPl budget deta:lin g how additi o nal NSPl funds could b e
utilized before program fund in g obli ga ti on dead lin e. Th e HERA bi ll th at autho rized NSPl requires
th at all DOH fun ds be obliga ted b y September 10, 2010. Thi s revis ed budget was requ es ted by
DOH in anticipati o n of redis tributing unspent NSPl funds in ea rl y Jul y.
DOH has commi tt ed an addi ti onal $500,000 for property acq uisiti o n. Thi s am o unt will cover th e
cos t of purch 1sing three more bank owned for eclosed ho mes. To dat e, Proj ect Rebui ld has
acquired eight sing le-fa mil)' vaca nt fo reclosed p ro perties loca ted in the eli gible census trac ts wi th
two more u nde r contract. Re hab is almos t compl ete o n th e firs t th ree p roperties w ith work to start
o n the nex t two by early Jul y. Th e current N SPl proj ec t ca ll ed fo r th e acquisitio n, rehab, and sa le
of ten ( 10) foreclosed single-famil y propert ies. This now ca n be in crease d up to a total of thirtee n
( 13) properti es. This additio nal funding w ill in crease th e to tal Proj ec t Rebui ld budget to
$1 ,752,379.
FINANCIAL IMPACT
Ex isti ng Community Development sta ff has th e required expert ise to ac qu ire foreclose d properti es,
p rov id e rehab ilitation, and se ll th e p roperties to eli gibl e bu yers. As approved by Council, Ci ty funds •
w il l be use d to cover th e rehab costs o f each pro p erty . All o th er expen ses w ill be covered by th e
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NSP l grant. A ll Ci ty funds will be reimburs ed through th e sa le of th ese prope rt ies. In addition,
app roxi mately $40,000 w ill b e reimbursed to the Ge11e ral Fund for adminis tra ti ve and general
project cos ts .
UST OF ATTACHME NTS
Emergency Bill for an Ordinance