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HomeMy WebLinkAboutMERCY HOUSE LIVING CENTERS (3)INSUItANCE ON HU. WORK l�AY F*0GL.LJ &JKII. INSQK`wf 4� .. ..... . . ... . GRANT AGREEMENT FOR CONSTRUCTION OF CONGREGATE LIVING FACILITY AND THE REFURBISHING OF ONE UNIT IN A FIVE UNIT APARTMENT COMPLEX (HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS) (24 CFR Part 574) THE CITY OF SANTA ANA, CALIFORNIA ("City") and MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC. ("Project Sponsor"), a California rion-profit public benefit corporation, in furtherance of the regulations issued by the U.S. Department of Housing and Urban Development set forth in 24 CFR Part 574 (the "HOPWA Regulations"), hereby agree as follows: WHEREAS, City is responsible for administering the use of certain funds ("HOPWA Funds") made available by the United States Department of Housing and Urban Development ("HUD") under the Housing Opportunities for Persons With AIDS Program (the "HOPWA Program"); and WHEREAS, Project Sponsor intends to enter into a Disposition and Development Agreement with the Community Redevelopment Agency of the City of Santa Ana, for the real property located at 814-818 N. Garfield Street, Santa Ana, California, and more particularly described in Attachment No. 1 to this Agreement (the "Property") and WHEREAS, Project Sponsor intends to improve the properties through a four -person congregate living facility and the refurbishment of the five unit apartment complex as defined in 24 CFR 574.340 and use the Property to provide housing for persons with acquired immunodeficiency syndrome ("AIDS") and related diseases; and WHEREAS, City has determined that Project Sponsor and the Property are eligible to receive funds made available by HUD pursuant to the HOPWA Program for the purpose of constructing a four -person congregate living facility and the refurbishment of the five unit apartment complex; and WHEREAS, the par -Lies mutually desire to comply with all applicable HOPWA Regulations. NOW, THEREFORE, City agrees to make a grant of HOPWA Funds to Project Sponsor in the amount of $ 500,000 (the "Grant"), subject to the following terms and conditions: 1. Use of Grant. 24 CFR 574.300(b)(3)-. The Grant shall be used exclusively for the payment of a portion of the construction cost associated with the development of the Community ResJdence (sometimes referred to herein as the "Work") and for the payment of costs incurred in connection with approved relocation and predevelopment expenses. Grant funds shall be used as follows: Nip\staff\sk\agreement\ Page 1 of 31 Garfield HOPWA Agreement 11-07-01 a. New Construction of four -person congregate living facility and the refurbishment of one unit within the five unit apartment complex. The HOPWA grant shall be used for the development of a four -person congregate living facility and the refurbishment of one unit within the five unit apartment complex and for materials, supplies, labor and services that are an integral part of the project including but not limited to architecture and engineering, consulting, building permit, planning and other governmental fees, title and escrow fees and construction costs. Funds shall be disbursed in the amounts approved by City. All disbursements shall be made subsequent to Project Sponsor taking title to the Property, except for relocation and predevelopment expenses in an amount not to exceed $125,000. These approved expenses are identified in the Predevelopment Budget, Attachment No. 2, as amended from time to time. b. Schedule. Project Sponsor shall commence development of the Property not later than 270 days after execution of this Agreement, and shall complete the Work not later than 365 days after commencement. This schedule may be modified with the consent of the City Manager. C. Scope. The development of the Property shall be performed in a manner consistent with the plans attached to this Agreement as Attachment No. 3. d. Inspections_. Project Sponsor shall inspect any Work performed hereunder to ensure that the Work is being and has been performed in accordance with the applicable federal, state and/or local requirements and this Agreement. Project Sponsor agrees to require that all Work found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to the construction contractor or subcontractor until the Work has been corrected. The City reserves the right to inspect the Property at any time during the period of time set forth in Section 3 of this Agreement. Such inspection shall occur at least annually during said period of time. 2. Disbursement of Funds. 24 CFR 92.504(c)(10). Project Sponsor shall not request disbursement of any portion of the Grant until the funds are needed to pay eligible costs. The amount of each disbursement request shall be limited to the amount needed. The City shall have the right to disapprove any request if the City determines the request is for an ineligible item or is otherwise not in compliance with or is inconsistent with this Agreement. Grant proceeds used for actual costs shall be placed in a non - interest bearing escrow account with United States Escrow or at such other institution as City requires in compliance with federal regulations found at 24 CFR 511 (the "Escrow Account"). Upon written request of Project Sponsor, City will request disbursement of funds from the escrow account for fully completed work items. Nip\staff\sk\agreement\ Page 2 of 31 Garfield HOPWA Agreement 11-07-01 Such requests by City for payments for individual work items shall be made after inspection and acceptance of the work by City and City approval of Project Sponsor's requisitions and invoices and satisfactory proof that the Property, Project Sponsor and City are properly protected from liens or claims of liens for labor and materials. All funds disbursed to Project Sponsor shall be received by Project Sponsor in trust and Project Sponsor agrees that the same shall be used only for the payment of these items contemplated by the particular disbursement. City shall not be required to request disbursement of any amount which, in city's opinion, will reduce that portion of the undisbursed funds designated for the cost of completion of the project below that needed to pay for the labor and materials necessary to complete the work. 3. Minimum Use Period. 24 CFR 574.310(c). Project Sponsor agrees that the Property will be used as a facility to provide housing or assistance for individuals with AIDS or related diseases for a period of not less than 10 years. 4. Eligible Occupants. 24 CFR 574.3, 24 CFR 573.310(e). Occupancy of the Property shall be limited to Eligible Persons and their Families. �'or the purpose of this Agreement: a. "Eligible Person" shall mean a person with AIDS or a related disease who is a low-income individual, and the person's Family. b. "Family" shall mean a household composed of two or more related persons. The term "Family" also includes one or more Eligible Persons who are determined to be important to their care or well-being, and the surviving member or members of any family described in this paragraph who were living in a dwelling unit on the Property with the person with AIDS at the time of his or her death. G. "Low --Income Individual" mean any individual or family whose income does not exceed 800 of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 800 of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Notwithstanding the foregoing, the surviving member or members of a Family who were living in a dwelling unit on the Property at the time of the death of the person with AIDS may continue to occupy the Property for a period of up to one year following the death of the person with AIDS. Nip\staff\sk\agreement\ Page 3 of 31 Garfield HOPWA Agreement 11-07--01 5. Rental Pa ants. 24 CFR 574.310 d 24 CFR 574.430. The rent charged by Project Sponsor for any dwelling unit within the Property shall be the higher of: a. 300 of the Family's monthly adjusted income (adjustment factors include the age of the individual, medical expenses, size of family and child care expenses and are described in detail in 24 CFR 813-1020); or b. 100 of the Family's monthly gross income; or C. If the Family is receiving payments from welfare assistance from a public agency and a part of the payments, adjusted in accordance with the Family's actual housing costs, is specifically designated by the agency to meet the Family's housing costs, the portion of the payments that is so designated. Except for rent, Project Sponsor shall not charge any fee of any Eligible Person for any housing or services provided with HOPWA Funds. 6_. _.Supportive Services. 24 CFR 574.310(a). Project Sponsor, either itself or through qualified service providers in the area, sha11 make appropriate supportive services available to the occupants of the Property. Supportive social services include but are not limited to, health, mental health, assessment, permanent housing placement, drug and alcohol abuse treatment and counseling, day care, personal assistance, nutritional services, intensive care when required, and assistance in gaining access to local, State, and Federal government benefits and services, except that health services may only be provided to individuals with acquired immunodeficiency syndrome or related diseases and not to family members of these individuals. For any individual with AIDS or a related disease who requires more intensive care than can be provided at the Property, Project Sponsor shall locate a care provider who can appropriately care for the individual and refer the individual to that care provider. 7. Housing ualit Standards. 24 CFR 574.310 b . The Property shall be rehabilitated to comply with the housing quality standards set forth in 24 CFR 574.310(b), a copy of which is attached to this Agreement as Attachment No. 4. Project Sponsor shall maintain the Property in compliance with the housing quality standards for the period set forth in Attachment No. 4 of this Agreement. $. Other Program Recruirements. Nip\staff\sk\agreement\ Page 4 of 31 Garfield HOPWA Agreement 11-07-01 Project Sponsor shall comply with all applicable federal requirements set forth in Subpart E, F and G of the HOPWA regulations, including the following: a. Relocation Assistance for Displaced Persons. 24 CFR 574.630. � � -- - The acquisition of the Property is subject to the Uniform Relocation Assistance and Real property Acquisition Policies Act of 1970 ("URA") (42 U.S.C. 4601-4655) and implementing regulations at 49 CFR part 24. For purposes of this Agreement, a "displaced person" is defined as set forth in 24 CFR 574.630(f). A displaced person must be provided relocation assistance at the levels described in, and in accordance with the requirements of, the URA and implementing regulations and the City"s relocation rules and policies. b. Confidentiality. 24 CFR 574.440. Project Sponsor shall ensure the confidentiality of the name of any individual assisted under the HOPWA Program and any other information regarding individuals receiving assistance. c. Equal Opportunity and Fair Housing. 24 CFR 574.600. (1) Civil Rights, Fair Housing, and Age Discrimination Acts Assurances: During the performance of this Agreement, Project Sponsor assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, familial status, sex, age, handicap, religion, or religious preference, under any program or activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964 942 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-19) and the Age Discrimination Act of 1975 (42 U.S.C. 6101-07), and all implementing regulations. (2) Traininq, Employment, and Contracting Opportunities for Business -and Low -Income Persons. (A) The Work to be performed under this Agreement is on a project assisted under a program providing direct federal financial assistance from HUD and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and implementing regulations. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given lower income residents of the project area and contracts for Work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. Nip\staff\sk\agreement\ Page 5 of 31 Garfield HOPWA Agreement 11-07-01 (B) The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of HUD set forth in 24 CFR Part 135, and all applicable rules and orders of the State issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. (C) Project Sponsor will include these Section 3 clauses in every contract and subcontract for Work in connection with the project and will, at the direction of the City, the State or HUD, take appropriate action pursuant to the contract upon a finding that Project Sponsor or any contractor or subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR Part 135, and will not let any contract unless Project Sponsor or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. (D) Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the City, the State and HUD issued thereunder prior to the execution of this Agreement shall be a condition of the federal financial assistance provided to the project, binding upon Project Sponsor, its successors, and assigns. Failure to fulfill these requirements shall subject Project Sponsor, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the contract through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. (3) MBE/WBE Affirmative Action Outreach Program. Project Sponsor hereby agrees to comply with the City's minority and women business outreach program in accordance with 24 CFR 574.600(d). (4) Affirmative Outreach. Project Sponsor shall adopt procedures to ensure that all persons who qualify for assistance under the HOPWA Program, regardless of their race, color, religion, sex, age, national origin, familial status, or handicap, know of the availability of the HOPWA Program, including facilities and services accessible to persons with a handicap, and maintain evidence of implementation of the procedures. (5) Disability Requirements. Project Sponsor shall not discriminate against persons with AIDS or related diseases based on an additional handicap of such persons in violation of the Fair Housing Act or section 504 of the Rehabilitation Act of 1973. Project Sponsor also shall comply with the reasonable modification requirements of the Fair Housing Ni.p\staff\sk\agreement\ Page 6 of 31 Garfield HOPWA Agreement 11-07-01 Act, the reasonable accommodation requirements of the Fair Housing Act and section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act, and implementing regulations. d. Wage___ Rates. 24 CFR 574.655. The provisions of the Davis -Bacon Act (40 U.S.C. 276a-276a-5) do not apply to the rehabilitation of the Property, unless Project Sponsor will, be using HOPWA Funds in combination with funds from other Federal programs that are subject to the Act. e. Lead -based Paint. 24 CFR 574.635. Housing assisted with HOPWA Funds constitutes HUD -associated housing for the purpose of the Lead -Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et sec.) and is, therefore, subject to.24 CFR part 35. Accordingly, and pursuant to 24 CFR 574.635, Project Sponsor hereby agrees to and shall be responsible for testing and abatement activities specified in the Lead -Based Paint Poisoning Prevention Act and the regulations set forth at 24 CFR part 35 with respect to the rehabilitation of the Unit. f. Conflict of Interest. 24 CFR 574.625, No person who is an employee, agent, consultant, officer or elected or appointed official of the City of Santa Ana or of Project Sponsor, who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOPWA Funds or who is in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from this Agreement, or have an interest in any contract, subcontract or agreement with respect hereto, either for himself or herself or those with whom he or she has family or business ties, during his or her tenure or for one year thereafter. g. Debarment and Suspension. 24 CFR 574.620. Concurrently with the execution of this Agreement, Project Sponsor has completed and delivered to the City the Certificate Regarding Debarment, Suspension, ineligibility, and Voluntary Exclusion -- Lower Tier Covered Transactions, attached hereto as Attachment No. 5, as required by 24 CFR 574.620. h. Lobbying._ __ 24 CFR 574.615. Concurrently with the execution of this Agreement, Project Sponsor has completed and delivered to the City the Certification Regarding Lobbying attached hereto as Attachment No. 6, as required by 24 CFR 574.615. i. Flood Insurance. 24 CFR 574.640. This Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 et sec.). No portion of the assistance provided under this Agreement is approved for acquisition, rehabilitation, or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Federal Emergency Management Agency as having special flood hazards which Nip\staf£\sk\agreement\ Page 7 of 31 Garfield HOPWA Agreement 11-07-01 is located in a community not then in compliance with the requirements for participation in the National Flood Insurance Program pursuant to Section 201(d) of said Act. The use of any assistance provided under this Agreement for such acquisition, rehabilitation, or construction in such identified areas in communities then participating in the National. Flood Insurance Program shall be subject to the mandatory purchase of flood insurance requirements of Section 102(a) of said Act. j. Coastal Barriers. 24 CFR 574.645. This Agreement is subject to the Coastal Barrier Resources Act (16 U.S.C. 3501). No financial assistance under the HOPWA Program may be made available within the Coastal Barrier Resources System. The use of any assistance provided under this Agreement within the Coastal Barrier Resources System shall be grounds for immediate termination of this Agreement. 9. All -Risk and Liability Insurance. Project Sponsor shall maintain, during the term of this Agreement, (1) an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property, and (2) a comprehensive general liability insurance policy with a $1,000,000 limit of liability. The all-risk policy shall name the City as loss payee and the liability insurance policy shall naive the City as an additional insured. Each policy shall contain a statement of obligation on behalf of the insurance carrier to notify the City of any material change, cancellation or termination of coverage at least 30 days in advance of the effective date of such material change, cancellation or termination. Project Sponsor shall deliver a copy of the certificate of insurance for each policy and the loss payee or additional insured endorsement, as the case may be, to the City at the close of escrow for the acquisition of the Property. Project Sponsor shall annually deliver a copy of the certificate of insurance for each policy and the loss payee or additional insured endorsement, as the case may be, to the City, signed by an authorized agent of the insurance carrier and setting forth the general provisions of coverage. The copies of the certificate of insurance and endorsements shalt be delivered to the City as follows: The City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 Attention: Housing Development Services Any certificate of insurance required by this Section 9 must be in a form, content and with an insurance company that is acceptable to the City in its sole discretion. Any insurance proceeds shall, to the extent applicable, be paid to the additional insured and, at the option of such additional Nip\staff\sk\agreement\ Page $ of 31 Garfield HOEWA Agreement 11-07-01 insured, may be applied to any indebtedness owed to such insured or released for repair or rebuilding of the Property. Surplus insurance proceeds thereafter may be disbursed to the Project Sponsor. 10. Records and Reports. 24 CFR 92.504(c)(12). Project Sponsor shall prepare, maintain and submit to the City, as appropriate, the following records and reports: a. Annual Reports. Project Sponsor shall fife with the City an Annual Report (herein referred to as the "Annual Report") within sixty (60) days following the end of each calendar year, commencing with the end of the calendar year during which the rehabilitation is completed. The Annual. Report shall include, and shall contain a certification with regard to, the rental rate and the income and family size of the occupants for each dwelling unit on the Property who have inhabited the Property during the previous calendar year. Project Sponsor shall obtain the income information required to be included in the Annual Report from the occupants of the Property. Any lease or other agreement that Project Sponsor requires occupants of the dwelling units on the Property to execute shall require the occupants to provide such income information upon the request of the Project Sponsor. The Annual Report shall contain a certification by Project Sponsor as to such other information as the City Manager may reasonably require. b. Records. Project Sponsor shall maintain records relating to the rehabilitation of the Property and make them available for inspection by the City, the State or HUD, upon request, including the following: (1) current and accurate data on the race and ethnicity of the occupants of the Property; (2) records which demonstrate compliance with the requirements set forth in Sections 8.a., 8.c., and 8.e., above; (3) records which demonstrate compliance with the property standards set forth in Attachment No. 4; (A) certifications given by contractors and subcontractors given pursuant to Sections 8.g. and 8.h., above. (5) statement of income to Project Sponsor from tenants pursuant to Section 10.a., above. Project Sponsor shall retain all books and records relevant to this Agreement for a minimum of four years after the expiration of this Agreement and any and all amendments hereto, or for four years after the conclusion or resolution of any and all audits or litigation relevant to this Agreement, whichever is later. The Nip\staff\sk\agreement\ Page 9 of 31 Garfield HOPWA Agreement 11-07-01 City, the State, HUD, and/or their representatives shall have unrestricted reasonable access to all locations, books, and records for the purpose of monitoring, auditing, or otherwise examining said locations, books, and records with or without prior notice. If so directed by the City, the State or HUD upon termination of this Agreement, Project Sponsor shall cause all records, accounts, documentation and all other materials relevant to the Work to be delivered to the City, the State or HUD, as depository. C. Audits. Project Sponsor shall be subject to periodic audits pursuant to 24 CFR Part 45. Project Sponsor shall reasonably cooperate with City in performing such audit. 11. Enforcement. 24 CFR 92 .504 (c) (13) . This Agreement and all of its attachments, shall be enforceable by City in accordance with the terms hereof. Failure by Project Sponsor to comply with any material provision hereof shall constitute a breach. In the event of a breach, City shall provide written notice to Project Sponsor. City may terminate this Agreement in .the event Project Sponsor fails to cure any such default within 30 days after notice or in the event that Project Sponsor conveys the Property to a person who does not agree to assume the obligations of Project Sponsor under this Agreement. The foregoing provision does not apply to a transfer of the Property to HUD or to a transferee of HUD. 12. Agreement Containing Covenants. Concurrently with the execution of this Agreement, City and Project Sponsor shall execute and acknowledge an Agreement Containing Covenants Affecting Real Property substantially in the form and substance of Attachment No. 7 hereto. The executed and acknowledged Agreement Containing Covenants Affecting Real Property shall he recorded against the Property at the time of the acquisition of the Property by Project Sponsor. 13. Attachments. Project Sponsor has reviewed and, if appropriate, agrees to execute and acknowledge the following documents in substantially the form as attached to this Agreement prior to receiving the Grant, and any other documents or instruments reasonably required by the City or a participating entity to complete the transaction contemplated herein: Attachment No. 1 Attachment No. 2 Attachment No. 3 Attachment No. 4 Attachment No. 5 Attachment No. 6 Attachment No. 7 Nip\staff£\sk\agreement\ Garfield HOPWA Agreement 11-07-01 Legal Description of Properties Predevelopment Budget Conceptual Project Plans Property Standards (24 CFR 74.310(b)) - Debarment Certification Certification Regarding Lobbying Agreement Containing Covenants Affecting Real Property Page 10 of 31 Project. Sponsor agrees and. acknowledges that the Agreement Containing Covenants Affecting Real Property shall be recorded against the Property with the County Recorder of the County of Orange and shall. appear of record with respect to and as an encumbrance against the Property. 14. Duration of this Agreement. This Agreement shall remain in effect for 1.0 years from the date of this Agreement and shall automatically terminate on the tenth anniversary of the date of this Agreement. IN WITNESS WHEREOF, the City and Project Sponsor have executed. this Agreement. MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC., a California non-profit public benefit corporation Date: By: Date: THE CITY,, OF SANTA ANA U Date: By: i� David N. Ream City Manager APPROVED AS TO CONTENT: Jo P. Reekstin e E ecutive Director Community Development Agency APPROVED AS TO FORM: By: neph W. Fletcher City Attorney ATTEST _ Patricia E. Hea1 y Da e Clerk of the Council Nip\staff\sk\agreement\ Page 11 of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 1 LEGAL DESCRIPTIONS PARCEL 1, AS SHOWN ON EXHIBIT "B" ATTACHED TO LOT LINE ADJUSTMENT LL 97-017 RECORDED OCTOBER 6, 1997 AS INSTRUMENT NO. 19970497390 OF OFFICIAL RECORDS OF ORANGE COUNTY CALIFORNIA. ALSO REFERENCED TO AS 814 N. GARFIELD - APN 398-042--09 LOT 24 AND THE SOUTHERLY HALF OF LOT 25 IN BLOCK 74 OF THE TOWN OF SANTA ANA EST, AS SHOWN ON MAP RECORDED IN BOOK 10, PAGES 42 AND 44 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA. ALSO REFERENCED TO AS 818 N. GARFIELD - APN 298-042-10 Nip\staff\sk\agreement\ Page 12 of 31 Garfield HOPWA Agreement 11.-07-01 ATTACHMENT NO. 2 APPROVED PREDEVELOPMENT BUDGET FOR MERCY HOUSE GARFIELD STREET PROJECT Fees Sanitation $ 5,000.00 School $ 5,598,55 Contingency (20%) $ 2,119.71 Total Fees $ 12,718.26 Other Relocation $ 75,000.00 Contingency (20%) $ 15,000.00 Total Other $ 90,000.00 Professional Fees BAST; $ 3,250.00 SoilslGeotech $ 2,000.00 Structural Engineer $ 5,000.00 Utility Consultant $ 1,000,00 Re production/Delivery $ 2,000.00 Other $ 6,000,00 Contingency (-15.75%) $ 3,031.74 Total Professional Fees $ 22,281.74 Grand Total $ 125,000.00 Nip\staff\sk\agreement\ Page 13 of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 3 APPROVED CONCEPTUAL PLANS Project Plans approved by the City of Santa Ana's Planning Commission on November 26, 2001 as Neighborhood Project Review Numbers 01-06-FP & 01-OV-TP incorporated herein by reference. Nip\staff\sk\agreement\ Page 14 of 31 Garfield HOPWA Agreement 11-07--01 ATTACHMENT NO. 4 PROPERTY STANDARDS (24 CFR 574.310 (B) INCORPORATED HEREIN BY REFERENCE. Nip\staff\sk\agreement\ Page 15 of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 5 CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION - LOWER TIER COVERED TRANSACTIONS 24 CFR Part 24, Appendix B Instructions for Certification 1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of charged circumstances. 4.. The terms covered transaction, debarred, suspended, ineligible, lower tier covered transaction, participant, person, primary covered transaction, principal, proposal, and voluntarily excluded, as used in this clause, have the meanings set out in the Definitions and Coverage sections of rules implementing Executive Order 12549. You may contact the person to which this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this proposal that it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. 7. A participant in a covered transaction may Nip\staff\sk\agreement\ Page 16 of 31 Garfield HOPWA Agreement 11-07-01 rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to check the Nonprocurement List (Tel #). 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions (1) The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. (2) Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal. [PROJECT SPONSOR] Dated: By: Nip\staff\sk\agreement\ Page 17 of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 6 CFRTTFICATION REGARDING LOBBYING 24 CFR Part 87, Appendix A Certification for Contract, Grants, Loans and Cooperative Agreements The undersigned certifies, to the best of his or her knowledge and belief, that: (1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. (2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer of employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress, in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. NiP\staff\sk\agraement\ Page 18 of 31 Garfield HOPWA Agreement 11-07-01 This certification is a which reliance was placed entered into. Submission of for making or entering into 13521, title 31, U.S. Code. required certification shall less than $10,000 and not failure. Dated: material representation of fact upon when this transaction was made or this certification is a prerequisite this transaction imposed by section Any person who fails to file the be subject to a civil penalty of not more than $100,000 for each such [PROJECT SPONSOR] Nip\staff\sk\agreement\ Page 19 of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 7 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: The City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 FREE RECORDING REQUESTED (Gov't Code Section 6103) AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY THIS AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (the "Agreement Containing Covenants") is entered into this _ day of , 2003, by and between MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC. ("Project Sponsor"), a California non-profit public benefit corporation, and THE CITY OF SANTA ANA, a municipal corporation ("City"). WHEREAS, City is responsible for administering the use of certain funds ("HOPWA Funds") made available by the United States Department of Housing and Urban Development ("HUD") under the Housing Opportunities for Persons With AIDS Program (the "HOPWA Program"); and WHEREAS, for the purpose of effectuating the HOPWA Program, the City and Project Sponsor have entered into that certain AIDS Community Residence Grant Agreement, dated —, (the "Grant Agreement"), pursuant to which City made a grant to Project Sponsor for the new construction of an AIDS Community Residence located in the City of Santa Ana, California, and more particularly described in Exhibit A attached hereto and incorporation hereby by this reference (the "Property"); and WHEREAS, with the funds made available to Project Sponsor by City pursuant to the Grant Agreement, Project Sponsor will develop the Property; and WHEREAS, the Grant Agreement contains certain provisions relating to the use of the Property with respect to which the parties have agreed to execute and record this Agreement Containing Covenants. NOW, THEREFORE, CITY AND PROJECT SPONSOR COVENANT AND AGREE AS FOLLOWS: Nip\staff\sk\agreemant\ Page 20 of 31 Garfield HOPWA Agreement 11-07-01 1. Project ,Sponsor covenants and agrees (for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof) that Project Sponsor, such successors, and such assigns shall devote the Property (or any part thereof), to the uses specified therefor in the Grant Agreement, the project plans approved pursuant to the Grant Agreement, and this Agreement Containing Covenants. 2. Project Sponsor shall assure that the Property shall be used only for housing for Eligible Persons and their Families. . a. "Eligible Person" shall mean a person with AIDS or a related disease who is a low-income individual, and the person's Family. b. "Family" shall mean a household composed of two or more related persons. The term "Family" also includes one or more Eligible Persons who are determined to be important to their care or well. -being, and the surviving member or members of any family described in this paragraph who were living in a dwelling unit on the Property with the person with AIDS at the time of his or her death. c. "Low -Income Individual" mean any individual or family whose income does not exceed 800 of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80% of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Notwithstanding the foregoing, the surviving member or members of a Family who were living in a dwelling unit on the Property at the time of the death of the person with AIDS may continue to occupy the Property for a period of up to one year following the death of the person with AIDS. 3. The rent charged by Project Sponsor for any dwelling unit within the Property shall be the higher of: a. 300 of the Family's monthly adjusted income (adjustment factors include the age of the individual, medical expenses, size of family and child care expenses and are described in detail in 24 CFR 81.3-1020); or b. 100 of the Family's monthly gross income; or C. If the Family is receiving payments from welfare assistance from a public agency and a part of the payments, adjusted in accordance with the Family's actual housing costs, is specifically designated by the agency to meet the Family's housing Nip\staff\sk\agreement\ Page 21 of 31 Garfield HOPWA Agreement 11-07-01 costs, the portion of the payments that is so designated. Except for rent, Project Sponsor shall not charge any fee of any Eligible Person for any housing or services provided with HOPWA Funds. 4. Project Sponsor covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, religion, national origin, sex, age, disability, marital status, sexual preference, creed, ancestry, medical condition, Acquired Immune Deficiency Syndrome (AIDS), acquired or perceived, or retaliation for having filed a discrimination complaint, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property nor shall Project Sponsor itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. 5. Project Sponsor shall file with City an Annual Report (herein referred to as the "Annual Report") within sixty (60) days following the end of each calendar year, commencing with the end of the calendar year during which the rehabilitation of the Property is completed. The Annual Report shall include, and shall contain a certification with regard to, the rental rate and the income and family size of the occupants for each dwelling unit on the Property who have inhabited the Property during the previous calendar year. Project Sponsor shall obtain the income information required to be included in the Annual Report from the occupants of the Property. Any lease or other agreement that Project Sponsor requires occupants of the dwelling units on the Property to execute shall require the occupants to provide such income information upon the request of Project Sponsor. The Annual Report shall contain a certification by Project Sponsor as to such other information as the City Manager may reasonably require. Nip\staff\sk\agreement\ Page 22 of 31 Garfield HOPWA Agreement it-o7-01 6. In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that City shall be deemed a beneficiary of the covenants and agreements provided hereinabove both for and in its own right and also for the purposes of protecting the interests of the community. All covenants without regard to technical classification or designation shall be binding for the benefit of City, and such covenants shall run in favor of City for the entire period during which such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. City shall have the right, in the event of any breach of any such covenant or agreement, to exercise all the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach of covenant or agreement. 7. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Agreement Containing Covenants shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest on the Property, provided, however, that any subsequent owner of the Property shall be bound by such remaining covenants, conditions, restrictions, limitations, and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. S. Only City, its successors and assigns, and Project Sponsor and successors and assigns of Project Sponsor in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or other restrictions contained in this Agreement Containing Covenants, or to subject the Property to additional covenants, easements or other restrictions. City, its successors and assigns, and Project Sponsor and the successors and assigns of Project Sponsor in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or restrictions contained in this Agreement Containing Covenants or to subject the Property to additional covenants, easements, or other restrictions without the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust, or any other person or entity having any interest less than a fee in the Property. 9. The covenants established in this Agreement Containing Covenants, shall, without regard to technical classification and designation, be binding on Project Sponsor and any successor in interest to the Property or any part thereof for the benefit and in favor of City, its successors and assigns, and City. The Flip\staff\sk\agreement\ Page 23 of 31 Garfield HOPWA Agreement 11-07-01 covenants contained in this Agreement Containing Covenants shall remain in effect for ten (10) years from the date on which this Agreement Containing Covenants was recorded. IN WITNESS WHEREOF, City and Project Sponsor have executed this Agreement Containing Covenants. Date: Date: Date: APPROVED AS TO CONTENT: David N. Ream City Manager APPROVED AS TO FORM: BE Joseph W. Fletcher City Attorney MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC., a California non-profit public benefit corporation THE CITY OF SANTA ANA Miguel A. Pulido Mayor ATTEST Patricia E. Healy Date Clerk of the Council Nip\staff\sk\agreement\ Page 24 of 31 Garfield HOPWA Agreement 11-07-01 EXHIBIT A LEGAL DESCRIPTION All that land situated in the City of Santa Ana, County of Orange, State of California described as follows: PARCEL 1, AS SHOWN ON EXHIBIT "B" ATTACHED TO LOT LINE ADJUSTMENT Lip 97-017 RECORDED OCTOBER 6, 1997 AS INSTRUMENT NO. 19970497390 OF OFFICIAL RECORDS OF ORANGE COUNTY CALIFORNIA. ALSO REFERENCED TO AS 814 N. GARFIELD - APN 398-042-09 Nip\staff\sk\agreement\ Page 25 Of 31 Garfield HOPWA Agreement 11-07-01 ATTACHMENT NO. 8 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: The City of Santa Ana 20 Civic Center Plaza P.O. Box 1988 Santa Ana, California 92702 AGREEMENT CONTAINING COVENANTS AF FREE RECORDING REQUESTED (Gov't Code Section 6103) TING REAL PROPERTY THIS AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY (the "Agreement Containing Covenants") is entered into this _ day of , 2003, by and between MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC. ("Project Sponsor"), a California non-profit public benefit corporation, and THE CITY OF SANTA ANA, a municipal corporation ("City"). WHEREAS, City is responsible for administering the use of certain funds ("HOPWA Funds") made available by the United States Department of Housing and Urban Development ("HUD") under the Housing Opportunities for Persons With AIDS Program (the "HOPWA Program"); and WHEREAS, for the purpose of effectuating the HOPWA Program, the City and Project Sponsor have entered into that certain AIDS Community Residence Grant Agreement, dated _, (the "Grant Agreement"), pursuant to which City made a grant to Project Sponsor for the new construction of an AIDS Community Residence located in the City of Santa Ana, California, and more particularly described in Exhibit A attached hereto and incorporation hereby by this reference (the "Property"); and WHEREAS, with the funds made available to Project Sponsor by City pursuant to the Grant Agreement, Project Sponsor will develop the Property; and WHEREAS, the Grant Agreement contains certain provisions relating to the use of the Property with respect to which the parties have agreed to execute and record this Agreement Containing Covenants. NOW, THEREFORE, CITY AND PROJECT SPONSOR COVENANT AND AGREE AS FOLLOWS: Nip\staff\sk\agreement\ Page 26 of 31 Garfield HOPWA Agreement 11-07-01 1. Project Sponsor covenants and agrees (for itself, its successors, its assigns, and every successor in interest to the Property or any part thereof) that Project Sponsor, such successors, and such assigns shall devote the Property (or any part thereof), to the uses specified therefor in the Grant Agreement, the project plans approved pursuant to the Grant Agreement, and this Agreement Containing Covenants. 2. Project Sponsor shall assure that the Property shall be used only for housing for Eligible Persons and their Families. a. "Eligible Person" shall mean a person with AIDS or a related disease who is a low --income individual, and the person's Family. b. "Family" shall mean a household composed of two or more related persons. The term "Family" also includes one or more Eligible Persons who are determined to be important to their care or well-being, and the surviving member or members of any family described in this paragraph who were living in a dwelling unit on the Property with the person with AIDS at the time of his or her death. C. "Low -Income Individual" mean any individual or family whose income does not exceed 80% of the median income for the area, as determined by HUD, with adjustments for smaller and larger families, except that HUD may establish income ceilings higher or lower than 80% of the median for the area on the basis of HUD findings that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes. Notwithstanding the foregoing, the surviving member or members of a Family who were living in a dwelling unit on the Property at the time of the death of the person with AIDS may continue to occupy the Property for a period of up to one year following the death of the person with AIDS. 3. The rent charged by Project Sponsor for any dwelling unit within the Property shall be the higher of: a. 300 of the Family's monthly adjusted income (adjustment factors include the age of the individual, medical expenses, size of family and child care expenses and are described in detail in 24 CFR 813-1020); or b. 1Co of the Family's monthly gross income; or C. If the Family is receiving payments from welfare assistance from a public agency and a part of the payments, adjusted in accordance with the Family's actual housing costs, is specifically designated by the agency to meet the Family's housing Nip\staff\sk\agreement\ Page 27 of 31 Garfield HOPWA Agreement 11-07-01 costs, the portion of the payments that is so designated. Except for rent, Project Sponsor shall not charge any fee of any Eligible Person for any housing or services provided with HOPWA Funds. 4. Project Sponsor covenants and agrees for itself, its successors, its assigns and every successor in interest to the Property or any part thereof, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, religion, national origin, sex, age, disability, marital status, sexual preference, creed, ancestry, medical condition, Acquired Immune Deficiency Syndrome (AIDS), acquired or perceived, or retaliation for having filed a discrimination complaint, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property nor shall Project Sponsor itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. 5. Project Sponsor shall file with City an Annual Report (herein referred to as the "Annual Report") within sixty (60) days following the end of each calendar year, commencing with the end of the calendar year during which the rehabilitation of the Property is completed. The Annual Report shall include, and shall contain a certification with regard to, the rental rate and the income and family size of the occupants for each dwelling unit on the Property who have inhabited the Property during the previous calendar year. Project Sponsor shall obtain the income information required to be included in the Annual Report from the occupants of the Property. Any lease or other agreement that Project Sponsor requires occupants of the dwelling units on the Property to execute shall require the occupants to provide such income information upon the request of Project Sponsor. The Annual Report shall contain a certification by Project Sponsor as to such other information as the City Manager may reasonably require. Nip\staff\sk\agzeement\ Page 28 of 31 Garfield HOPWA Agreement 11--07-01 6. In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that City shall be deemed a beneficiary of the covenants and agreements provided hereinabove both for and in its own right and also for the purposes of protecting the interests of the community. All covenants without regard to technical classification or designation shall be binding for the benefit of City, and such covenants shall run in favor of City for the entire period during which such covenants shall be in force and effect, without regard to whether City is or remains an owner of any land or interest therein to which such covenants relate. City shall have the right, in the event of any breach of any such covenant or agreement, to exercise all the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach of covenant or agreement. 7. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Agreement Containing Covenants shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest on the Property, provided, however, that any subsequent owner of the Property shall be bound by such remaining covenants, conditions, restrictions, limitations, and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 8. Only City, its successors and assigns, and Project Sponsor and successors and assigns of Project Sponsor in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or other restrictions contained in this Agreement Containing Covenants, or to subject the Property to additional covenants, easements or other restrictions. City, its successors and assigns, and Project Sponsor and the successors and assigns of Project Sponsor in and to all or any part of the fee title to the Property shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or restrictions contained in this Agreement Containing Covenants or to subject the Property to additional covenants, easements, or other restrictions without the consent of any tenant, lessee, easement holder, licensee, mortgagee, trustee, beneficiary under a deed of trust, or any other person or entity having any interest less than a fee in the Property. 9. The covenants established in this Agreement Containing Covenants, shall, without regard to technical classification and designation, be binding on Project Sponsor and any successor in interest to the Property or any part thereof for the benefit and in favor of City, its successors and assigns, and City. The Nip\staff\sk\agreement\ Page 29 of 31 Garfield HOPWA,Agreement 11-07-01 covenants contained in this Agreement Containing Covenants shall remain in effect for ten (10) years from the date on which this Agreement Containing Covenants was recorded. IN WITNESS WHEREOF, City and Project Sponsor have executed this Agreement Containing Covenants. Date: Date: Date: =1 APPROVED AS TO CONTENT: David N. Ream City Manager APPROVED AS TO FORM: Joseph W. Fletcher City Attorney MERCY HOUSE TRANSITIONAL LIVING CENTERS, INC., a California non-profit public benefit corporation THE CITY OF SANTA ANA Miguel A. Puli Mayor ATTEST Patricia E. Healy Date Clerk of the Council Nip\staff\sk\agreement\ Page 30 of 31 Garfield HOPWA Agreement 11-07-01 EXHIBIT A LEGAL DESCRIPTION All that land situated in the City of Santa Ana, County of Orange, State of California described as follows: LOT 24 AND THE SOUTHERLY HALF OF LOT 25 IN BLOCK 74 OF THE TOWN OF SANTA ANA EST, AS SHOWN ON MAP RECORDED IN BOOK 10, PAGES 42 AND 44 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CAIIFORNIA. ALSO REFERENCED TO AS 818 N. GARFIELD - APN 298-042-10 Nip\staff\sk\agreement\ Page 31 of 31 Garfield HOPWA Agreement 11-o7-01.