HomeMy WebLinkAboutSTRAIGHT TALK CLINIC, INC. 2 -2015A- 2015 -051
GRANT AGREEMENT FOR ACQUISITION AND
REHABILITATION OF A SINGLE FAMILY HOUSE
(HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS)
(24 CFR Part 574)
As of this 7`h day of April, 2015, the CITY OF SANTA ANA, a charter city and municipal
corporation duly organized under the Constitution and laws of the State of California ( "City "),
k and STRAIGHT TALK CLINIC, INC. ( "Project Sponsor "), a 501(c) 3 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:
A. 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
j1 Housing Opportunities for Persons with AIDS Program (the " HOPWA Program ") Catalog of
{ Federal Domestic Assistance (CFDA) Number 14.241.
B. The City issued a Request for Proposals on February 6, 2015, and Project Sponsor was
selected to be awarded this grant.
C. Project Sponsor intends to enter into this Agreement with the City of Santa Ana, for the
acquisition and rehabilitation of real properly located at 1677 West Ord Way, Anaheim, California,
and more particularly described in Exhibit A to this Agreement (the "Property ") which shall be
operated as "Kairo's House ".
D. Project Sponsor intends to acquire and improve the Property which is a single family
house with at least five (5) bedrooms (the `Project") as defined in 24 CFR 574.340. The Project
will serve homeless individuals with a qualified disability to provide permanent housing with
supportive services for persons with human immunodeficiency virus ( "HIV ") or acquired
immunodeficiency syndrome ( "AIDS ") and related diseases.
E. 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 acquiring and
rehabilitating the single family home.
F. 'The parties mutually desire to comply with all applicable HOPWA Regulations.
NOW, THEREFORE, City agrees to make a grant of 14OPWA Funds to Project Sponsor in the
amount of SEVEN HUNDRED TWENTY THOUSAND DOLLARS ($720,000) (the "Grant "),
subject to the following terms and conditions:
1. Use of Grant 124 CFR 574.300(b)(3)1
The Grant shall be used exclusively for the payment of acquisition and rehabilitation costs
associated with the development of the Project. Grant funds shall be used as follows:
a. Acquisition and Rehabilitation of Five Bedroom Single Family House. The
HOPWA grant shall be used for the acquisition of a single family five bedroom house 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(s), 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.
b. Schedule. Project Sponsor shall close escrow thirty (30) days after the execution of
this Agreement. All funds must be returned to the City should Project Sponsor fail to acquire the
Property. Project Sponsor shall commence rehabilitation of the Property not later than ninety (90)
days after execution of this Agreement, and shall complete the work not later than 180 days after
commencement. This schedule may be modified with the consent of the City Manager, or his /her
designee.
C. Scone of Rehabilitation. The development of the Property shall be performed in a
manner consistent with the scope of rehabilitation to be provided to the City prior to any
rehabilitation work.
d. Inspections During Rehabilitation. The City 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.
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 an 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. 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 (to be in the form of Exhibit B attached hereto) 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 the items approved for by the 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
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below that needed to pay for the labor and materials necessary to complete the work
3. Minimum Use Period 124 CFR 574.310(c)] Project Sponsor agrees that all of the
bedrooms in the Property will be used to provide housing for individuals with HIV /AIDS or related
diseases for a period of not less than ten (10) years from the date of issuance of Certificate of
Occupancy or Notice of Completion of rehabilitation ( "Term ").
4. Eligible Occupants f24 CFR 574.3, 24 CFR 573.310(e)1
Occupancy of the Property shall be limited to Eligible Persons. For the purpose of this Agreement:
a. "Eligible Person" shall mean a person with HIV /AIDS or a related disease who is a
very low- income individual, and the person's Family.
b. "Very Low - Income Individual" mean any individual or family whose income does
not exceed 50% of the median income for the area, as determined by HUD, with adjustments for
household size.
5. Rental Payments 124 CFR 574.310(4), 24 CFR 574.430)1
The rent charged by Project Sponsor for any dwelling unit within the Property shall be
the product of 30% times 50% of the area median income adjusted for family size (less utility
allowance appropriate for the Unit). 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 124 CFR 574.310(a)1 Project Sponsor, either itself or through
qualified service providers in the area, shall 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 Ouality Standards 124 CFR 574.310(b)1 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 Exhibit C. Project Sponsor shall maintain the Property in compliance
with the housing quality standards for the entire Term of this Agreement.
8. Other Program Requirements
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(£). 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 nd Aee 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,
disability, 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. 2000(d), 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) Training, 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.
(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.
Project Sponsor shall report Section 3 quarterly on the form attached hereto and incorporated herein
as Exhibit D. 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 HIV /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 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. Waae 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 seq.) 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 Project.
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 Exhibit E, 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 Exhibit F, 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 seq.). 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 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 name 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 shall be delivered to the City as follows:
City of Santa Ana
20 Civic Center Plaza (M -25)
P.O. Box 1988
Santa Ana, California 92702
Attention: Community Development Agency
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 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 l24 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 file 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 Exhibit C;
(4) 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 (4) 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 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 agrees that if it expends Seven Hundred Fifty Thousand
($750,000) or more in federal funds, Project Sponsor shall have an annual audit conducted by a
certified public accountant in accordance with the standards set forth and published by the United
States Office of Management and Budget (2 CFR Part 200, et al). Project Sponsor shall provide
City with a copy of said audit by April 1 of the year following the program year in which this
Agreement is executed. Project Sponsor shall procure all materials, property, or services in
accordance with the requirements of 2 CFR 200.318 -326.
11. Enforcement 124 CFR 92.504(e)(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 Exhibit G hereto. The executed
and acknowledged Agreement Containing Covenants Affecting Real Property shall be 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:
Exhibit A -
Legal Description of Property
Exhibit B -
Draw Request
Exhibit C -
Housing Quality Standards (24 CFR 74.310(b))
Exhibit D -
Section 3 Report
Exhibit E -
Debarment Certification
Exhibit F -
Certification Regarding Lobbying
Exhibit G -
Agreement Containing Covenants Affecting Real Property
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 ten (10) years
from the date the Notice of Completion of rehabilitation or Certificate of Occupancy is filed /issued
and shall automatically terminate on the tenth (10h) anniversary from said date.
15. Repayment of Grant: Project Sponsor shall not be obliged to make payments to City
during the Term of this Grant, which shall be ten (10) years (the "Term "); provided, however,
that in the event of default, the principal amount (as reduced pursuant to this Paragraph) shall
become due and payable in full. The preceding sentence to the contrary notwithstanding, the
principal amount shall be deemed repaid by the amount of ten percent (10 %), or Seventy Two
Thousand Dollars ($72,000.00) each annual anniversary during the Term commencing on the
date the Notice of Completion of rehabilitation or Certificate of Occupancy is filed /issued and
continuing on each anniversary thereafter until the last day of the ten -year Term.
16. Expiration of Repayment Obligation. In the event the Project Sponsor does not sell or
transfer the Property, fail to occupy, refinance, or discontinue the Project, or if the Project
Sponsor is not in material breach of any other provisions of this Agreement before the end of the
Term, the Project Sponsor shall have no obligation to make the repayment to City upon any later
sale, transfer, refinancing or termination of occupancy on the Property.
17, Non- Waiver. Failure to exercise any right City may have or be entitled to, in the event of a
default hereunder, shall not constitute a waiver of such right or of any other right in the event of a
subsequent default.
18. Indemnification. The Project Sponsor shall defend, indemnify and hold harmless the City
of Santa Ana and its officers, employees, representatives and volunteers from and against any
loss, liability, claim, or judgment relating in any manner to the Property referred to in this
Agreement. The Project Sponsor shall remain fully obligated for the payment of property taxes
and assessments related to the Property. There shall be no reduction in taxes for Project Sponsor,
nor any transfer of responsibility to City to make such payments, by virtue of the Grant.
19. Governing Law. This Agreement shall be governed by the laws of the State of California.
Any legal action brought under this Agreement must be instituted in the Superior Court of the
County of Orange, State of California, or in a Federal District Court in the Central District of
California.
20, Amendment of Agreement. No modification, rescission, waiver, release or amendment of
any provisions of this Agreement shall be made except by written agreement executed by the
Project Sponsor and City.
21, Project Sponsor Assignment Prohibited. In no event shall Project Sponsor assign or
transfer any portion of this Agreement without the prior express written consent of City, which
consent may be given or withheld in City's sole discretion. No assumption of the Grant shall be
permitted at any time.
22. Entire Agreement. This Agreement constitutes the entire understanding and agreement of
the parties and commemorates the agreement that was previously made between the City and
Project Sponsor. This Agreement integrates all of the terms and conditions mentioned herein or
incidental thereto, and supercedes all prior negotiations, discussions and previous agreements
between the City and the Project Sponsor concerning all or any part of the subject matter of this
Agreement.
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IN WITNESS WHEREOF, the City and Project Sponsor have executed this Agreement.
ATTEST:
�—v � � kh�—d
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
BY: /✓ Pei [i �� tJ °�'�
Lisa E. Storck
Assistant City Attorney
RECOMMEND APPROVAL:
4 i I W Q
K ly Reen ers3 xecu e Director
Community DbAopment Agency
THE CITY OF SANTA ANA ,
By:
David Cavazos
City Manager
STRAIGHT TALK CLINIC, INC., a 501(c)3
/1. Lummus; Ex6cutive Director
�
it//
Exhibit A
1677 W. Ord Way, Anaheim, CA 92802
The legal description requested is as follows
The land hereinafter referred to is situated in the City of Anaheim, County of Orange, State of CA, and is
described as follows:
Lot 13 of Tract 3688, City of Anaheim, County of Orange, State of California, as per map recorded in
Book 132 Page 17 of Miscellaneous Maps, in the Office of the County Recorder of said County.
Except therefrom all oil, gas, minerals and other hydrocarbon substances, lying below a depth of 500 feet,
without the right
of surface entry.
I,11►� R� I! I � S:3 c i S � F
EXHIBIT B
DRAW REQUEST
PAYMENT REQUEST
CITY OF SANTA ANA RESIDENTIAL REHABILITATION PROGRAM
HOMEOWNER: JOB ADDRESS:
RCS:
❑ PROGRESS PAYMENT NUMBER ❑ CHANGE ORDER # PAYMENT
❑ FINAL PAYMENT ❑ RELEASE OF RETENTION
❑ TERMITE PAYMENT ❑ OTHER:
PAYEE: PAYEE ADDRESS:
AMOUNT REQUESTED:
CONTRACTOR (PAYEE)
The undersigned CONTRACTOR: (1) Certifies that to the
best of their knowledge, information and belief, the work
covered by this Payment Request has been completed in
accordance with the approved Housing Rehabilitation Work
Contract; (2) Certifies that they have obtained all required
building permits, inspections and approvals for the work
covered by this Payment Request; (3) Certifies that they
have not promised or given the HOMEOWNER a cash
payment or rebate.
CONTRACTOR (PRINT NAME)
CONTRACTOR SIGNATURE DATE
CITY OF SANTA ANA (RCS)
Based on site observations, the undersigned Residential Construction
Specialist (RCS) certifies that to the best of their knowledge, information
and belief, the work covered by this Payment Request has been
completed in accordance with the approved Housing Rehabilitation
Work Contract and complies with program requirements.
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HOMEOWNER
The undersigned HOMEOWNER. (7) Certifies that to the best of the
information and belief, the work covered by this Payment Request has bi
to their satisfaction and in accordance with the approved Housing Reha
Contract, (2) Authorizes payment to the CONTRACTOR in the amount
Acknowledges and agrees that inspections by the Residential Construc
(RCS) are performed for financial purposes and to ensure compliance
requirements, and should not be relied upon as a surety that the work was
HOMEOWNER (PRINT NAME)
HOMEOWNER SIGNATURE
CITY OF SANTA ANA
The undersigned certify that to the best of their knowledge, information
Payment Request has been properly prepared and documented and
disbursement of funds to cover the amount requested.
SRCS SIGNATURE DATE
HOUSING MANAGER SIGNATURE DATE
OF;:7CE USE ONLY 0
SOURCE OF
FUNDS
AMOUNT
FUND CONTROL
CONTROL NUMBER
HOME
$
AMERICAN BANK
CDBG
$
IN -HOUSE
OTHER
$
TOTAL
$
❑ AMERICAN BANK - MAIL CHECK TO PAYEE, EMAIL COPY OF CHECK TO RCS
Revised 7 -31 -12
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EXHIBIT C
HOUSING QUALITY STANDARDS (24 CFR 574.310 (B)
TITLE 24-- HOUSING AND URBAN DEVELOPMENT
CHAPTER VIII -- OFFICE OF THE ASSISTANT SECRETARY FOR HOUSING -- FEDERAL HOUSING COMMISSIONER,
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (SECTION 8 HOUSING ASSISTANCE PROGRAMS AND
SECTION 202 DIRECT LOAN PROGRAM)
PART 882 -- SECTION 8 CERTIFICATE AND MODERATE REHABILITATION PROGRAMS- -Table of Contents
Subpart A-- Applicability, Scope and Basic Policies
Sec. 882.109 Housing quality standards.
Housing used in this program shall meet the Performance Requirements set forth in this section. In addition, the housing shall
meet the Acceptability Criteria set forth in this section except for such variations as are proposed by the PHA and approved by
HUD. Local climatic or geological conditions or local codes are examples which may justify such variations.
(a) Sanitary facilities
(1) Performance requirement. The dwelling unit shall include its own sanitary facilities which are in proper operating condition,
can be used in privacy, and are adequate for personal cleanliness and the disposal of human waste.
(2) Acceptability criteria. A flush toilet in a separate, private room, a fixed basin with hot and cold running water, and a shower
or tub with hot and cold running water shall be present in the dwelling unit, all in proper operating condition. These facilities shall
utilize an approved public or private disposal system.
(b) Food preparation and refuse disposal
(1) Performance requirement. The dwelling unit shall contain suitable space and equipment to store, prepare, and serve foods
in a sanitary manner. There shall be adequate facilities and services for the sanitary disposal of food wastes and refuse,
including facilities for temporary storage where necessary (e.g., garbage cans).
(2) Acceptability criteria. The unit shall contain the following equipment in proper operating condition: cooking stove or range
and a refrigerator of appropriate size for the unit, supplied by either the Owner or the Family, and a kitchen sink with hot and cold
running water. The sink shall drain into an approved public or private system. Adequate space for the storage, preparation and
serving of food shall be provided.
(c) Space and security
(1) Performance Requirement. The dwelling unit shall afford the Family adequate space and security.
(2) Acceptability criteria. The dwelling unit shall contain a living room, kitchen area, and bathroom. The dwelling unit shall
contain at least one bedroom or living /sleeping room of appropriate size for each two persons. Persons of opposite sex, other
than husband and wife or very young children, shall not be required to occupy the same bedroom or living /sleeping room.
Exterior doors and windows accessible from outside the unit shall be lockable.
(d) Thermal environment
(1) Performance requirement. The dwelling unit shall have and be capable of maintaining a thermal environment healthy for
the human body.
(2) Acceptability criteria. The dwelling unit shall contain safe heating and /or cooling facilities which are in proper operating
condition and can provide adequate heat and /or cooling to each room in the dwelling unit appropriate for the climate to assure a
healthy living environment. Unvented room heaters which burn gas, oil or kerosene are unacceptable.
(e) Illumination and electricity
(1) Performance requirement. Each room shall have adequate natural or artificial illumination to permit normal indoor activities
and to support the health and safety of occupants. Sufficient electrical sources shall be provided to permit use of essential
electrical appliances while assuring safety from fire.
15
(2) Acceptability criteria. living and sleeping rooms shall include at least one window. A ceiling or wall type light fixture shall be
present and working in the bathroom and kitchen area. At least two electric outlets one of which may be an overhead light, shall
be present and operable in the living area, kitchen area, and each bedroom area.
(f) Structure and materials
(1) Performance requirement. The dwelling unit shall be structurally sound so as not to pose any threat to the health and
safety of the occupants and so as to protect the occupants from the environment.
(2) Acceptability criteria. Ceilings, walls, and floors shall not have any serious defects such as severe bulging or leaning, large
holes, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or other serious
damage. The roof structure shall be firm and the roof shall be weather tight. The exterior wall structure and exterior wall surface
shall not have any serious defects such as serious leaning, buckling, sagging, cracks or holes, loose siding, or other serious
damage. The condition and equipment of interior and exterior stairways, halls, porches, walkways, etc., shall be such as not to
present a danger of tripping or falling. Elevators shall be maintained in safe and operating condition.
(g) Interior air quality
(1) Performance requirement. The dwelling unit shall be free of pollutants in the air at levels which threaten the health of the
occupants.
(2) Acceptability criteria. The dwelling unit shall be free from dangerous levels of air pollution from carbon monoxide, sewer
gas, fuel gas, dust, and other harmful air pollutants. Air circulation shall be adequate throughout the unit. Bathroom areas shall
have at least one openable window or other adequate exhaust ventilation.
(h) Water supply
(1) Performance requirement. The water supply shall be free from contamination.
(2) Acceptability criteria. The unit shall be served by an approved public or private sanitary water supply.
(i) Lead -based paint
(1) Purpose and applicablity. The purpose of this paragraph is to implement the provisions of section 302 of the Lead -Based
Paint Poisoning Prevention Act, 42 U.S.C. 4822, by establishing procedures to eliminate as far as practicable the hazards of
lead -based paint poisoning with respect to existing housing units for which Requests For Lease Approval are made under this
part. This paragraph is promulgated under the authorization granted in 24 CFR 35.24(b)(4) and supersedes, with respect to all
housing to which it applies, the requirements prescribed by subpart C of 24 CFR part 35. The requirements of paragraph (i)(4) of
this section are applicable to units for which initial inspection under Sec. 882.209(h)(1) or periodic inspection under Sec.
882.211(b) is made on or after May 1, 1987. The requirements of this paragraph do not apply to 0- bedroom units. The
requirements of subpart A of 24 CFR part 35 apply to all units constructed prior to 1978 covered by a Housing Assistance
Payments
Contract under this subpart.
(2) Definitions -- Applicable surface. All intact and nonintact interior and exterior painted surfaces of a residential structure.
Chewable surface. All chewable protruding painted surfaces up to five feet from the floor or ground, which are readily
accessible to children under seven years of age, e.g., protruding corners, windowsills and frames, doors and frames, and other
protruding woodworks.
Defective paint surface. Paint on applicable surfaces that is cracking, scaling, chipping, peeling or loose.
Elevated blood lead level or EBL. Excessive absorption of lead, that is, a confirmed concentration of lead in whole blood of 25
ugldl (micrograms of lead per deciliter of whole blood) or greater.
Lead -based paint. A paint surface, whether or not defective, identified as having a lead content greater than or equal to 1
mglcm121.
(3) Defective paint. In the case of a unit, for a Family which includes a child under the age of seven years, which was
constructed prior to 1978, the initial inspection under Sec. 882.209(h)(1), and each periodic inspection under Sec. 882.211(b),
shall include an inspection for defective paint surfaces. If defective paint surfaces are found, treatment as required by 24 CFR
35.24(b)(2)(ii) shall be required in accordance with Sec. 882.209(h) or Sec. 882.211(b) -(c), as appropriate. Correction of
defective paint conditions discovered at periodic inspection shall be completed within 30 days of PHA notification to the Owner.
When weather conditions prevent completion of repainting of exterior surfaces within the 30 -day period, repainting may be
delayed, but covering or removal of the defective paint must be completed within the prescribed period.
(4) Chewable surfaces. In the case of a unit constructed prior to 1978, for a Family which includes a child under the age of
seven years with an identified EBL condition, the initial inspection under Sec. 882.209(h)(1), or a periodic inspection under Sec.
882.21l(b), shall include a test for lead -based paint on chewable surfaces. Testing shall be conducted by a Slate or local health
or housing agency, an inspector certified or regulated by a State or local health or housing agency or an organization recognized
by HUD. Lead content shall be tested by using an X -ray fluorescence analyzer (XRF) or other method approved by HUD. Test
readings of 1 mglcm <SUP >2<ISUP> or higher using an XRF shall be considered positive for presence of lead -based paint.
16
Where lead -based paint on chewable surfaces is identified, covering or removal of the paint surface in accordance with 24 CFR
35.24(b)(2)(0) shall be required in accordance with Sec. 882.209(h) or Sec. 882.211 (b) and (c), as appropriate, and correction
shall be completed within the time limits set forth in paragraph (1)(3) of this section.
(5) Abatement without testing. In lieu of the procedures set forth in (4) above, the PHA may at its discretion, forego testing and
require the owner to abate all interior and exterior chewable surfaces in accordance with the method set out at 25 CFR
35.24(b)(2)(ii).
(6) Tenant protection. The owner shall take appropriate action to protect tenants from hazards associated with abatement
procedures.
(7) Records. The PHA shall keep a copy of each inspection report for at least three years. If a unit requires testing or if the unit
requires treatment of chewable surfaces based on the testing, the PHA shall keep indefinitely the test results and, if applicable,
the owner certification of treatment. The records shall indicate which chewable surfaces in units have been tested and which
chewable surfaces in the units have been treated. If records establish that certain chewable surfaces were tested or tested and
treated in accordance with the standards prescribed in this section, such chewable surfaces do not have to be tested or treated
at any subsequent time.
(j) Access
(1) Performance requirement. The dwelling unit shall be useable and capable of being maintained without unauthorized use of
other private properties, and the building shall provide an alternate means of egress in case of fire.
(2) Acceptability criteria. The dwelling unit shall be useable and capable of being maintained without unauthorized use of other
private properties. The building shall provide an alternate means of egress in case of fire (such as fire stairs of egress through
windows).
(k) Site and neighborhood
(1) Performance requirement. The site and neighborhood shall be reasonably free from disturbing noises and reverberations
and other hazards to the health, safety, and general welfare of the occupants.
(2) Acceptability criteria. The site and neighborhood shall not be subject to serious adverse environmental conditions, natural
or manmade, such as dangerous walks, steps, instability, flooding, poor drainage, septic tank back -ups, sewage hazards or
mudslides; abnormal air pollution, smoke or dust; excessive noise, vibration or vehicular traffic; excessive accumulations of trash;
vermin or rodent infestation; or fire hazards.
(1) Sanitary condition
(1) Performance requirement. The unit and its equipment shall be in sanitary condition.
(2) Acceptability criteria. The units and its equipment shall be free of vermin and rodent infestation.
(m) Congregate Housing
(1) Performance requirement. The foregoing standards shall apply except for paragraph (b) of this section and the requirement
in paragraph (c)(2) of this section for a kitchen area. In addition, the following standards shall apply:
(1) The unit shall contain a refrigerator of appropriate size.
(2) The sanitary facilities described in paragraph (a) of this section shall be contained within the unit.
(3) The central dining facility and central kitchen shall be located within the building or housing complex and be accessible to
the occupants of the congregate units, and shall contain suitable space and equipment to store, prepare and serve food in a
sanitary manner by a food service or persons other than the occupants and shall be for the primary use of occupants of the
congregate units and be sufficient in size to accommodate the occupants. There shall be adequate facilities and services for the
sanitary disposal of food wastes and refuse, including facilities for temporary storage where necessary (e.g., garbage cans).
(n) Independent Group Residence
(1) Performance requirement. The foregoing standards shall apply except for paragraphs (a), (b), (c), (f), (k), and (m) of this
section. In addition, the following standards shall apply:
(1) The unit shall contain and have ready access to a flush toilet which can be used in privacy, a fixed basin with hot and cold
running water, and a shower and /or tub equipped with hot and cold running water all in proper operating condition and adequate
for personal cleanliness and the disposal of human wastes. These facilities shall utilize an approved public or private disposal
system, and shall be sufficient in number so that they need not be shared by more than four occupants. Those units
accommodating physically handicapped occupants with wheelchairs or other special equipment shall provide access to all
sanitary facilities, and shall provide, as appropriate to needs of the occupants, basins and toilets of appropriate height; grab bars
to toilets, showers and /or bathtubs; shower seats; and adequate space for movement.
(2) The unit shall contain suitable space to store, prepare and serve foods in a sanitary manner. A cooking stove or range, a
refrigerator(s) of appropriate size and in sufficient quantity for the number of occupants, and a kitchen sink with hot and cold
running water shall be present in proper operating condition. The sink shall drain into an approved private or public system.
Adequate space for the storage, preparation and serving of food shall be provided. There shall be adequate facilities and
17
services for the sanitary disposal of food wastes and refuse, including facilities for temporary storage where necessary (e.g.,
garbage cans).
(3) The dwelling unit shall afford the Family adequate space and security. A living room, kitchen, dining area, bathroom, and
other appropriate social, recreational or community space shall be within the unit, and the unit shall contain at least one bedroom
of appropriate size for each two persons. Exterior doors and windows accessible from outside each unit shall be capable of being
locked. An emergency exit plan shall be developed and occupants shall be apprised of the details of the plan. All emergency and
safety features and procedures shall meet applicable State and local standards.
(4) The unit shall be structurally sound so as not to pose any threat to the health and safety of the occupants and so as to
protect the occupants from the environment. Ceilings, walls and floors shall not have any serious defects such as severe bulging
or leaning, large holes, loose surface materials, severe buckling or noticeable movement under walking stress, missing parts or
other serious damage. The roof structure shall be firm and the roof shall be weather tight. The exterior wall structure and exterior
wall surface shall not have any serious defects such as serious leaning, buckling, sagging, cracks or holes, loose siding, or other
serious damage. The condition and equipment of interior and exterior stairways, halls, porches, walkways, etc., shall be such as
not to present a danger of tripping or falling. Elevators shall be maintained in safe and operating condition. Units accommodating
physically handicapped occupants with wheelchairs and other special equipment shall not contain architectural barriers which
impede access or use, and handrails and ramps shall be provided as appropriate.
(5) The site and neighborhood shall be reasonably free from disturbing noises and reverberations and other hazards to the
health, safety, and general welfare of the occupants, and shall not be subject to serious adverse environmental conditions,
natural or manmade, such as dangerous walks, steps, instability, flooding, poor drainage, septic tank back -ups, sewage hazards
or mudslides; abnormal air pollution, smoke or dust; excessive noise, vibrations or vehicular traffic; excessive accumulations of
trash; vermin or rodent infestation; or fire hazards. The unit shall be located in a residential setting and be similar in size and
appearance to housing generally found in the neighborhood, and be within walking distance or accessible via public or available
private transportation to medical and other appropriate commercial and community service facilities.
(6) Supportive services.
(i) A planned program of adequate supportive services appropriate to the needs of the occupants shall be provided on a
continual basis by a qualified ResidentAssistant(s) residing in the unit, or other qualified person(s) not residing in the unit, who
will provide such services on a continual, planned basis. Supportive services which are provided within the unit may include the
following types of services: Counseling; social services which promote physical activity, intellectual stimulation and/or social
motivation; training or assistance with activities of daily living including housekeeping, dressing, personal hygiene and /or
grooming; provision of basic first aid skills in case of emergencies; supervision of self- administration of medications, diet and
nutrition; and assurance that occupants obtain incidental medical care, as needed, by facilitating the making of appointments at,
and transportation to, medical facilities. Supportive services provided within the unit shall not include the provision of continual
nursing, medical or psychiatric care.
(ii) The provision and quality of the planned program of supportive services, including the minimal qualifications, quantity and
working hours of the Resident Assistant(s) living in the unit or other person(s) providing continual supportive services, shall be
initially determined by the Service Agency in accordance with the standards established by the State. Compliance with these
standards by the Service Agency shall be regularly monitored throughout the term of the Contract by the PHA and the State
(e.g., Department of Human Resources, Mental Health, Mental Retardation, Social Services, etc.), or a local authority (other than
the Service Agency providing services) designated by the State to establish, maintain and enforce such standards.
(iii) A written Service Agreement, approved by the State and in effect between the Owner and the Service Agency and /or the
entities which provide the necessary supportive service, shall be submitted to the PHA with the request for Lease approval. The
Lease between the eligible individual and the Owner shall set forth the Owner's obligation for and means of providing these
services. If the lessor provides the supportive services, a Service Agreement is not required and the provision of these services
shall be incorporated into the Lease and shall be approved by the State. (See Sec. 882.2090) (2).) (7) State approval.
Independent Group Residences shall be licensed, certified or otherwise approved in writing by the State (e.g., Departments of
Human Resources, Mental Health, Retardation, Social Services, etc.) prior to the execution of the initial Contract. This approval
shall be reexamined periodically based on a schedule established by the State. To assure that facilities and the supportive
services are appropriate to the needs of the occupants, the State shall also approve the written Service Agreement (or Leases, if
the provider of services is the lessor) for each Independent Group Residence. (See Sec. 882.2090)(2).)
(o) Manufactured Home
(1) Performance requirement. A Manufactured Home unit, whether owner or renter occupied, shall comply with the foregoing
standards except for paragraph (m) of this section, Congregate Housing, and paragraph (n) of this section, Independent Group
Residences. In addition, a Manufactured Home unit shall: (a) Meet the definition of a Manufactured Home set forth in Sec.
1s
882.102, (b) Be equipped with at least one smoke detector in working condition, and (c) Must be placed on the site in a stable
manner and be free from hazards such as sliding or wind damage.
(2) Acceptability criteria. A Manufactured Home must be securely anchored by a tie -down device which distributes and
transforms the loads imposed by the unit to appropriate ground anchors to resist wind overturning and sliding.
(p) Single Room Occupancy (SRO) Unit
(1) Performance requirements. The foregoing standards shall apply except for paragraphs (a), (b), (c),
(m), (n), and (o).
(2) Each SRO unit shall be occupied by no more than one person.
(3) Exterior doors and windows accessible from outside the SRO unit must be able to be locked.
(4) Sanitary facilities, space and security shall meet local code standards for single room occupancy housing. In the absence
of applicable local code standards, the requirements for habitable rooms used for living and sleeping purposes contained in the
American Public Health Association's Recommended Housing Maintenance and Occupancy Ordinance shall be used.
(q) Shared Housing
(1) Applicability of housing quality standards to entire unit. The entire unit must comply with the Performance
Requirements and Acceptability Criteria, as provided in paragraphs (a) and (b) of this section and in paragraphs (d) through (1) of
this section.
(2) Facilities available for Family. The facilities available for the use of each assisted Family in Shared Housing under the
Family's Lease must include (whether in the Family's Private Space or in the Common Space) a living room, sanitary facilities in
accordance with paragraph (a), and food preparation and refuse disposal facilities in accordance with paragraph (b).
(3) Space and security.
(i) Inapplicability of paragraph (c). Paragraph (c) of this section does not apply to Shared Housing.
(ii) Performance requirement. The entire unit must provide adequate space and security for all its occupants (whether assisted
or unassisted). The total number of occupants in the unit may not exceed 12 persons. Each unit must contain Private Space
containing at least one bedroom for each assisted Family, plus Common Space for shared use by the occupants of the unit. The
Private Space for each assisted Family must contain at least one bedroom for each two persons in the Family. (The two
preceding sentences do not apply to the case of two individuals sharing a one - bedroom unit. However, in that situation, no other
persons may occupy the unit.) Common Space must be appropriate for shared use by the occupants. If any members of the
Family are physically handicapped (as of the time of lease approval), the unit's Common Space and the Family's Private Space
must be accessible and usable by them.
(iii) Acceptability criteria. The unit must contain a living room, a kitchen, bathroom(s), and bedroom(s). Persons of opposite
sex, other than husband and wife or very young children, may not be required to occupy the same bedroom. Exterior doors and
windows accessible from outside the unit must be lockable.
(r) Smoke detectors
(1) Performance requirement. After October 30, 1992, each dwelling unit must include at least one battery- operated or hard-
wired smoke detector, in proper working condition, on each level of the unit. If the unit is occupied by hearing- impaired persons,
smoke detectors must have an alarm system, designed for hearing- impaired persons, in each bedroom occupied by a hearing -
impaired person.
(2) Acceptability criteria. The smoke detector must be located, to the extent practicable, in a hallway adjacent to a bedroom,
unless the unit is occupied by a hearing- impaired person, in which case each bedroom occupied by a hearing- impaired person
must have an alarm system connected to the smoke detector installed in the hallway.
[Code of Federal Regulations]
[Title 24, Volume 4, Parts 700 to 16991
[Revised as of April 1, 19981
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR882.109]
[43 FR 61246, Dec. 29, 1978, as amended at 44 FR 21630, Apr. 11, 1979;
44 FR 65364, Nov. 9, 1979; 49 FR 12237, Mar, 29, 1984; 50 FR 9269, Mar.
7, 1985; 50 FR 38794, Sept. 25, 1985; 51 FR 21309, June 11, 1986; 51 FR
24324, July 3, 1986; 52 FR 1893, Jan. 15,1987; 52 FR 9828, Mar, 27,
1987; 53 FR 4388, Feb. 16, 1988; 53 FR 7734, Mar. 10, 1988; 53 FR 20801,
June 6,1988; 57 FR 33851, July 30,1992]
19
EXHIBIT D
SECTION 3 REPORT
20
Section 3 Summary Report
Economic Opportunities for
Low — and Very Low - Income Persons
See page 2 for Public Reporting Burden statement
U.S. Department of Housing
and Urban Development
Office of Fair Housing
And Equal Opportunity
OMB Approval No: 2529 -6043
(exp.8/31/2007)
77e:7_
OPoce:
1. Recipient Name & Address: (street, city, state, zip) 2. Federal Identification: (contract /award no.)
A, Contact Person
6. Reporting Period:
3. Dollar Amount of Award:
5. Phone: (Include area code)
7. Date Report Submitted:
8. Program Coma' (Use a separate S. Program Name:
sheet for each
program code)
Part .Em 14?yment and Training { ** Include New Hires in columns E & F.
A
Job Category
B
Number of
New Hires
C D
Number of New % of Aggregrate Number
Hires that are of Staff Hours of New Hires
Sac. 3 Residents that are Sec. 3 Residents
E"
% of Total Staff Hours
for Section 3 Employees
and Trainees
F.
Number of Section
Employees
and Trainees
Professionals
Technicians
_
Office/Clerical
_
Construction by Trade (List)
Trade
Trade
Trade
Trade
Trade
Other List
_,
m
Total
*Program Codes 3= PuNefirdtan Housing A= Forceless Assaushoe
1 =amino Subsidy A= Devoiogr:mny 5 =HOME
2 = Section 2021811 B = Operation S = HOME State Administered
C= Modernomflon 7= CORD Entitlement
Page 1 of 2
8 = CDBG State Administered
3 =OTW CD Programs
10 =Other Housing Programs
form Hill 60002 (6/2001)
Ref 24 CFR 135
Part lb Contracts Awarded
1. Construction Contracts:
A. Total dollar amount of all contracts awarded on the project $
B. Total dollar amount of contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses
D. Total number of Section 3 businesses receiving contracts
2. Non- Construction Contracts:
A. Total dollar amount all non - construction contracts awarded on the projecuactivity $
B. Total dollar amount of non - construction contracts awarded to Section 3 businesses $
C. Percentage of the total dollar amount that was awarded to Section 3 businesses -
D. Total number of Section 3 businesses receiving non- construction contracts
Part III: Summary
Indicate the efforts made to direct the employment and other economic opportunities generated by HUD financial assistance for housing
and community development programs, to the greatest extent feasible, toward low -and very low- Income persons, particularly those who
are recipients of government assistance for housing. (Check all that apply.)
_ ❑_ Attempted to recruit low- income residents through: local advertising media, signs prominently displayed at the project site,
contracts with community organizations and public or private agencies operating within the metropolitan area (or
nonmetropolitan county) in which the Section 3 covered program or project is located, or similar methods.
_ ❑_ Participated in a HUD program or other program which promotes the training or employment of Section 3 residents.
_ ❑_ Participated in a HUD program or other program which promotes the award of contracts to business concerns which meet the
definition of Section 3 business concerns.
_ ❑_ Coordinated with Youthbuild Programs administered in the metropolitan area in which the Section 3 covered project is located.
❑ Other; describe below.
Public reporting for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
Searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
This agency may not collect this information, and you are not required to complete this form, unless It displays a currently valid OMB
number.
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 u, mandates that the Department ensure that
employment and other economic opportunities generated by its housing and community development assistance programs as directed
toward low- and very-low Income persons, particularly those who are recipients of government assistance housing. The regulations are
found at 24 CFR Part 135. The information will be used by the Department to monitor program recipients' compliance with Section 3, to
assess the results of the Department's efforts to meet the statutory objectives of Section 3, to prepare reports to Congress, and by
recipients as self- monitoring tool. The data is entered into a database and will be analyzed and distributed. The collection of information
involves recipients receiving Federal financial assistance for housing and community development programs covered by Section 3. The
information will be collected annually to assist HUD in meeting its reporting requirements under Section 808(e)(6) of the Fair Housing Act
and Section 916 of the HCDA of 1992. An assurance of confidentiality is not applicable to this form. The Privacy Act of 1974 and OMB
Circular A -108 are not applicable. The reporting requirements do not contain sensitive questions. Data is cumulative; personal identifying
information is not included.
Page 2 of 2 form HUD 60002 (612001)
Ref 24 CFR 135
Form HUD - 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low - Income Persons.
Instructions: This form is to be used to report annual
accomplishments regarding employment and other economic
opportunities provided to low- and very low- income persons under
Section 3 of the Housing and Urban Development Act of 1968. The
Section 3 regulations apply to any Public and Indian Housing
programs that receive: (1) development assistance pursuant to
Section 5 of the U.S. Housing Act of 1937; (2) operating assistance
pursuant to Section 9 of the U.S. Housing Act of 1937; or (3)
modernization grants pursuant to Section 14 of the U.S. Housing Act
of 1937 and to recipients of housing and community development
assistance in excess of $200,000 expended for: (1) housing
rehabilitation (including reduction and abatement of lead -based paint
hazards); (2) housing construction; or (3) other public construction
projects; and to contracts and subcontracts in excess of $100,000
awarded In connection with the Section -3- covered activity.
Form HUD -60002 has three parts which are to be completed for
all programs covered by Section 3. Part I relates to employment
and training, The recipient has the option to determine numerical
employment/training goals either on the basis of the number of hours
worked by new hires (columns B, D, E and F). Part 11 of the form
relates to contracting, and Part III summarizes recipients' efforts to
comply with Section 3.
Recipients or contractors subject to Section 3 requirements must
maintain appropriate documentation to establish that HUD financial
assistance for housing and community development programs were
directed toward low- and very low- Income persons.* A recipient of
Section 3 covered assistance shall submit two copies of this report to
the local HUD Field Office. Where the program providing assistance
requires an annual performance report, this Section 3 report Is to be
submitted at the same time the program performance report is
submitted. Where an annual performance report is not required, this
Section 3 report is to be submitted by January 10 and, If the project
ends before December 31, within 10 days of project completion. Only
Prime Recipients are required to report to HUD. The report must
include accomplishments of all recipients and their Section 3
covered contractors and subcontractors.
HUD Field Office: Enter the Field Office name forwarding the
Section 3 report.
1. Recipient: Enter the name and address of the recipient
submitting this report.
2. Federal Identification: Enter the number that appears on the
award form (with dashes). The award may be a grant,
cooperative agreement or contract.
3. Dollar Amount of Award: Enter the dollar amount, rounded to the
nearest dollar, received by the recipient.
4 & 5. Contact Person /Phone: Enter the name and telephone number
of the person with knowledge of the award and the recipient's
implementation of Section 3.
6. Reporting Period: Indicate the time period (months and year)
this report covers.
7. Date Report Submitted: Enter the appropriate date.
Submit one (1) copy of this report to the HUD Headquarters Office of
Fair Housing and Equal Opportunity, at the same time the
performance report is submitted to the program office. The Section 3
report Is submitted by January 10. Include only contracts executed
during the period specified in item 8. PHAs /IHAs are to report all
contracts /subcontracts.
The terms "low- income persons" and very low- income persons" have
the same meanings given the terms in section 3 (b) (2) of the United
States Housing Act of 1937. Low - Income persons mean families
(including single persons) whose incomes do not exceed 80 per
centum of the median income for the area , as determined by the
Secretary, with adjustments for smaller and larger families, except that
8. Program Code: Enter the appropriate program code as listed at
the bottom of the page.
9. Program Name: Enter the name of HUD Program corresponding
with the "Program Code" in number 8.
Part l: Employment and Training Opportunities
Column A: Contains various job categories. Professionals are
defined as people who have special knowledge of an occupation (i.e.
supervisors, architects, surveyors, planners, and computer
programmers). For construction positions, list each trade and provide
data In columns B through F for each trade where persons were
employed. The category of "Other' includes occupations such as
service workers.
Column B: Enter the number of new hires for each category of
workers identified in Column A In connection with this award. New
Hire refers to a person who is not on the contractor's or recipient's
payroll for employment at the time of selection for the Section 3
covered award or at the time of receipt of Section 3 covered
assistance.
Column C: Enter the number of Section 3 new hires for each
category of workers identified in Column A In connection with this
award. Section 3 new hire refers to a Section 3 resident who is not on
the contractor's or recipient's payroll for employment at the time of
selection for the Section 3 covered award or at the time of receipt of
Section 3 covered assistance.
Column D: Enter the percentage of all the staff hours of new hires
(Section 3 residents) in connection with this award.
Column E: Enter the percentage of the total staff hours worked for
Section 3 employees and trainees (including new hires) connected
with this award. Include staff hours for part -time and full -time
positions.
Column F: Enter the numbers of Section 3 residents that were
employed and trained In connection with this award.
Part II: Contract Opportunities
Block 1: Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project/program that were awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this project/program awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Block 2: Non - Construction Contracts
Item A: Enter the total dollar amount of all contracts awarded on the
project/program.
Item B: Enter the total dollar amount of contracts connected with this
project awarded to Section 3 businesses.
Item C: Enter the percentage of the total dollar amount of contracts
connected with this projectlprogram awarded to Section 3 businesses.
Item D: Enter the number of Section 3 businesses receiving awards.
Part Ill: Summary of Efforts — Self - explanatory
The Secretary may establish income ceiling higher or lower than 80 per
centum of the median for the area on the basis of the Secretary's findings
such that variations are necessary because of prevailing levels of
construction costs or unusually high- or low- income families. Very low -
income persons mean low- income families (including single persons)
whose incomes do not exceed 50 per centum of the median family income
area, as determined by the Secretary with adjustments or smaller and larger
families, except that the Secretary may establish income ceilings higher or
lower than 50 per cent of the median for the area on the basis of the
Secretary's findings that such variations are necessary because of unusually
high or low family incomes.
Page i form HUD 60002 (6/2001)
Ref 24 CFR 135
EXHIBIT E
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, perso n, primary covered transaction, rip ncipal, rp oposal, 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 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
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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.
Dated:
[PROJECT SPONSOR]
22
EXHIBIT F
CERTIFICATION REGARDING LOBBYING
2 CFR Part 200.450
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.
This certification is a material representation of fact upon which reliance was placed when
this transaction was made or entered into. Submission of this certification is a prerequisite for
making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person
who fails to file the required certification shall be subject to a civil penalty of not less than $10,000
and not more than $100,000 for each such failure.
Dated:
[PROJECT SPONSOR]
23
EXHIBIT G
RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:
The City of Santa Ana
20 Civic Center Plaza (M -37)
P.O. Box 1988
Santa Ana, California 92702
FREE RECORDING REQUESTED
(Gov't Code Section 6103)
AGREEMENT CONTAINING COVENANTS
AFFECTING REAL PROPERTY
{1677 West Ord Way, Anaheim, CA)
THIS AGREEMENT CONTAINING COVENANTS AFFECTING REAL PROPERTY
(the "Agreement Containing Covenants ") is entered into this 7th day of April, 2015, by and between
STRAIGHT TALK CLINIC, INC. ( "Project Sponsor "), a 501(c)3 corporation, and the CITY OF
SANTA ANA, a charter city and municipal corporation ( "City ").
RECITALS:
A. 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 ").
B. For the purpose of effectuating the HOPWA Program, the City and Project Sponsor have
entered into that certain Grant Agreement for Acquisition and Rehabilitation of a Single Family
House, dated concurrently herewith (the "Grant Agreement "), pursuant to which City made a grant
to Project Sponsor for the acquisition and rehabilitation of a single family home of which all of the
bedrooms will be for individuals with human immunodeficiency virus ( "HIV ") or acquired
immunodeficiency syndrome ( "AIDS ") and related diseases located in the City of Anaheim,
California, and more particularly described in Exhibit A attached hereto and incorporation hereby
by this reference (the "Property").
C. Project Sponsor will use the funds provided by City pursuant to the Grant Agreement, to
acquire and rehabilitate the Property which will be operated as "Kairo's House ".
D. 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.
►S'!
NOW, THEREFORE, CITY AND PROJECT SPONSOR COVENANT AND AGREE AS
FOLLOWS:
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 scope of rehabilitation approved pursuant to the Grant Agreement, and this
Agreement Containing Covenants.
2. Project Sponsor shall assure that the Property shall be used only for rental housing
for Eligible Persons.
a. "Eligible Person" shall mean a person with AIDS or a related disease who is a very
low- income individual.
b. "Very Low - Income Individual' mean any individual or family whose income does
not exceed 50% of the median income for the area, as determined by HUD, with adjustments for
household size.
3. The rent charged by Project Sponsor for any dwelling unit within the Property shall
be the product of 30% times 50% of the area median income adjusted for family size (less utility
allowance appropriate for the Unit). 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,
HIV /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.
W
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 covenants contained in this Agreement Containing Covenants shall remain
in effect for ten (10) years from the date on which the Certificate of Occupancy or Notice of
Completion of rehabilitation is filed /issued.
10. Project Sponsor shall not be obliged to make payments to City during the Term of
this Grant, which shall be ten (10) years (the "Term "); provided, however, that in the event of
default, the principal amount (as reduced pursuant to this Paragraph) shall become due and
payable in full. The preceding sentence to the contrary notwithstanding, the principal amount
shall be deemed repaid by the amount of ten percent (10 %), or Seventy Two Thousand Dollars
($72,000.00) each annual anniversary during the Term commencing on the date on which the
Certificate of Occupancy or Notice of Completion of rehabilitation is filed /issued , and
continuing on each anniversary thereafter until the last day of the Term.
26
11. In the event the Project Sponsor does not sell or transfer the Property, fail to
occupy, refinance, or discontinue the Project, or if the Project Sponsor is not in material breach
of any other provisions of this Agreement before the end of the Term, the Project Sponsor shall
have no obligation to make the repayment to City upon any later sale, transfer, refinancing or
termination of occupancy on the Property.
12. Failure to exercise any right City may have or be entitled to, in the event of a
default hereunder, shall not constitute a waiver of such right or of any other right in the event of a
subsequent default.
13. The Project Sponsor shall defend, indemnify and hold harmless the City of Santa
Ana and its officers, employees, representatives and volunteers from and against any loss,
liability, claim, or judgment relating in any manner to the Property referred to in this Agreement.
The Project Sponsor shall remain fully obligated for the payment of property taxes and
assessments related to the Property. There shall be no reduction in taxes for Project Sponsor, nor
any transfer of responsibility to City to make such payments, by virtue of the Grant.
14. This Agreement shall be governed by the laws of the State of California. Any
legal action brought under this Agreement must be instituted in the Superior Court of the County
of Orange, State of California, or in a Federal District Court in the Central District of California.
15. No modification, rescission, waiver, release or amendment of any provisions of
this Agreement shall be made except by written agreement executed by the Project Sponsor and
City.
16. In no event shall Project Sponsor assign or transfer any portion of this Agreement
without the prior express written consent of City, which consent may be given or withheld in
City's sole discretion. No assumption of the Grant shall be permitted at any time.
17. This Agreement constitutes the entire understanding and agreement of the parties
and commemorates the agreement that was previously made between the City and Project
Sponsor. This Agreement integrates all of the terms and conditions mentioned herein or
incidental thereto, and supercedes all prior negotiations, discussions and previous agreements
between the City and the Project Sponsor concerning all or any part of the subject matter of this
Agreement.
27
IN WITNESS WHEREOF, City and Project Sponsor have executed this Agreement Containing
Covenants.
ATTEST:
Maria D. Huizar
Clerk of the Council
APPROVED AS TO FORM:
Sonia R. Carvalho
City Attorney
go
Lisa E. Storck
Assistant City Attorney
THE CITY OF SANTA ANA
By:
David Cavazos
City Manager
STRAIGHT TALK CLINIC, INC., a 501(c)3
28
Exhibit A
1677 W. Ord Way, Anaheim, CA 92802
The legal description requested is as follows
The land hereinafter referred to is situated in the City of Anaheim, County of Orange, State of CA, and is
described as follows:
Lot 13 of Tract 3688, City of Anaheim, County of Orange, State of California, as per map recorded in
Book 132 Page 17 of Miscellaneous Maps, in the Office of the County Recorder of said County.
Except therefrom all oil, gas, minerals and other hydrocarbon substances, lying below a depth of 500 feet,
without the right
of surface entry.
I_1,2 111110010W SF