HomeMy WebLinkAboutCarlsbad Redevelopment Agency; 1994-03-29;c 0 tAHltSlI i e
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REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF CARLSBAD
AND CARLSBAD REDEVELOPMENT AGENCY
FOR ACQUISITION OF AFFORDABLE HOUSING PROPERTY
FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
THIS AGREEMENT, made and entered into as of this &f@ day of b , 194y and between the CITY OF CARLSBAD, a municipal
corporation, hereinafter referred to as "City", and CARLSBAD REDEVELOPMENT
AGENCY, a Community Redevelopment Agency organized and existing under
Community Redevelopment Law, Health and Safety Code Section 33000, et.seq.,
hereinafter referred to as "Agency".
RECITALS
WHEREAS, the City has the need to provide at least 1400 units of affordable
housing for low and very low income families within Carlsbad; and,
WHEREAS, on October 26, 1993, after making the required findings, the Agenc)
agreed to assist in providing interim financing in the amount of $2 million to acquire rea
property outside the Redevelopment Area for the purposes of developing affordable
housing for persons/ families within low and very low income households; and,
WHEREAS, the City acquired real property at 91 56 El Camino Real, through USE
of the Agency's Low and Moderate Income Housing Set-Aside funds, on November 15
1993 for the purposes of developing the approved Villas at El Camino Real Affordable
Housing Project; and,
WHEREAS, the City agreed to reimburse the Agency for the interim financia
assistance when feasible and appropriate through the City's Community Developmen
Block Grant (CDBG) Program; and,
WHEREAS, the U.S. Department of Housing and Urban Development ha!
provided the City with environmental clearance to release CDBG funds for the purpose!
of financing the acquisition of property for the Villas at El Camino Real Affordablf
Housing project.
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NOW, THEREFORE, in consideration of these recitals and the mutual covenant:
contained herein, City and Agency agree as follows:
I. STATEMENT OF WORK
The City shall reimburse the Agency for two (2) million dollars in financial
assistance provided through the use of the Agency’s Low and Moderate Income
Housing Set-Aside funds to acquire a twenty-one (21) acre vacant parcel 01
property located adjacent to and west of El Camino Real between Camino Vida
Roble and Alga Road. The property acquisition price was based on two (2) third
party, formal appraisals. The parcel number for the subject property is 215-020-1E
and the street address is 9156 El Camino Real within the city limits of Carlsbad
The City shall reimburse the Agency for the entire two (2) million dollars provided
to finance acquisition of said property. The reimbursement shall be made with
eight hundred thousand dollars ($800,000) in CDBG funds previously allocated
specifically for the acquisition of property for affordable housing purposes. In
addition, the City shall use funds from a $1.2 million Section 108 CDBG Loan to
complete the reimbursement transaction outlined within this agreement.
The subject property shall be used by the City for a rental housing project which
will provide 344 units of housing affordable to households of low and very low
income. As approved by the City on October 26, 1993, the subject affordable
housing project includes one, two, and three bedroom apartment units with rents
affordable to households at 50% to 60% of the San Diego County Median.
The City shall work with the development team for the subject project to produce
said affordable housing units. The development team includes Hillman Properties
(private local developer), BRIDGE Housing Corporation (private non-profit
affordable housing developer), and KruerIPicerne Partnership (private local
d eve I o pe r/ b u i I d e r) .
The City shall enter into an agreement to lease the subject property to the
BRIDGE Housing Corporation for development of the identified affordable housing
project.
Every effort shall be made by the City to provide full reimbursement to the Agency
for acquisition funds for the subject property by September 30, 1994. If the City
will be unable to fully reimburse the Agency by the noted date, the City shall
request an extension of this reimbursement agreement.
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2. SCHEDULE OF PAYMENTS
The City shall make two (2) lump sum payments for reimbursement to the
Agency. The first reimbursement payment in the amount of $800,000 shall be
made no later than April 30, 1994. The second reimbursement payment in the
amount of $1.2 million shall be made no later than September 30, 1994. The
funds used to make said reimbursement payments shall be drawn down from the
City’s Letter of Credit with the United States Department of Housing and Urban
Development (HUD) as appropriate and consistent with federal regulations for the
CDBG Program.
3. RECORDS AND REPORTS
The City shall maintain all appropriate records to account for the expenditure 0‘
the federal CDBG funds, including the Section 108 CDBG Loan funds, tc
reimburse the Agency for property acquisition as outlined within this agreement
The Federal Grantor Agency, Comptroller General of the United States, or any o
their duly-authorized representatives shall have access to all books, documents
papers and records maintained by the City which directly pertain to the above
project for the purpose of audit, examination, excerpts and transcriptions.
Unless otherwise notified by HUD, the City shall retain all financial records
supporting documents and statistical reports related to the project identified undei
this agreement until September 30, 1997. All records subject to an audit finding
shall be retained for three (3) years from the date the finding is made or until thc
finding has been cleared by appropriate officials and the City has been giver
official written notice.
As required by the Federal Single Audit Act, the City shall be required to have i
comprehensive financial audit prepared by an independent, neutral third-part!
auditor for the use of CDBG funds. The audit shall cover financial operations o
the City’s CDBG program for the period beginning July 1, 1993 and ending Junc
30, 1994. The City shall also ensure that an audit is completed for the perioc
covered under fiscal year beginning July 1, 1994 and ending June 30, 1995 fo
any reimbursement funds paid after June 30, 1994.
4. PROGRAM REQUIREMENTS
The City will adhere to the terms of the City’s CDBG and Section 108 Loa
application and with assurances and agreements made to the United State
Department of HUD.
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The City shall comply with applicable Uniform Administrative Requirements as
described in Section 570.502 of the federal regulations for the CDBG Program;
the federal requirements are set forth, by reference, as a provision of this
agreement.
The City shall carry out all activities in compliance with all Federal laws and
regulations as described in Subpart K, such as labor standards and fair housing
requirements.
The provisions of Subpart K, of the CDBG Program Regulations, are set forth, by
reference, as a condition of this reimbursement agreement.
CHANGES IN USE OF FUNDS
This agreement allows the City to reimburse the Agency for interim financial
assistance provided to acquire property for the purpose of developing the
identified affordable housing project only. No other use of said funds is permittec
without proper public review and City action.
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6. NONDISCRIMINATION CLAUSE
The City shall comply with all state and federal laws regarding nondiscriminatior
in the provision of services and the equal opportunity employment of personnel
7. SUSPENSION AND TERMINATION OF AGREEMENT
In accordance with Section 24, Parts 85.43 and 85.44 of the Code of Federa
Regulations, this agreement may be suspended or terminated if either party fail3
to comply with any term(s) set forth herein. Section 24, Parts 85.43 and 85.44 o
the Code of Federal Regulations are set forth, by reference, as provisions of this
agreement.
8. REVERSION OF ASSETS
The subject property shall be required to be used for the identified affordablc
housing project and/or an alternate CDBG eligible project, as approved by City
for a minimum of five (5) years. If the property is not used for the identified o
other eligible project for a minimum of five (5) years, it must be disposed of in i
manner that results in the federal government being reimbursed in the full amoun
of the current market value of the property less any portion of the valuc
attributable to expenditures of non-CDBG funds for acquisition of, or improvemer
to, the property.
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9. ASSIGNMENT OF AGREEMENT
The Agency shall not assign this agreement or any monies due thereundei
without the prior written consent of the City.
IO. SUCCESSORS OR ASSIGNS
Subject to the provisions of this Agreement, all terms, conditions, and provision:
hereof shall insure to and shall bind each of the parties hereto, and each of thei
respective, executors, administrators, successors, and assigns.
IN WITNESS WHEREOF the parties hereto have caused this agreement to bc
executed as of the day and year first written above.
CARLSBAD REDEVELOPMENT AGENCY, a Community Redevelopment Agency o
e State of California
APPROVED AS TO FORM:
RON BALL, CITY ATTORNEY 3/23 /sy;
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