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HomeMy WebLinkAboutCarlsbad, City of; 1994-03-29;3 tAIlIDl e 0 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 +'y6 day of L& , 1 &by and between the CITY OF CARLSBAD, a municip2 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 affordabl 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 re, property outside the Redevelopment Area for the purposes of developing affordabl 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 us of the Agency's Low and Moderate Income Housing Set-Aside funds, on November I! 1993 for the purposes of developing the approved Villas at El Camino Real Affordabl Housing Project; and, WHEREAS, the City agreed to reimburse the Agency for the interim financi assistance when feasible and appropriate through the City's Community Developmei Block Grant (CDBG) Program; and, WHEREAS, the U.S. Department of Housing and Urban Development h2 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 Affordab Housing project. h 0 a NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Agency agree as follows: 1. STATEMENT OF WORK The City shall reimburse the Agency for two (2) million dollars in financia 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 oi property located adjacent to and west of El Camino Real between Camino Vid; Roble and Alga Road. The property acquisition price was based on two (2) thirc party, formal appraisals. The parcel number for the subject property is 215-020-I! 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 provide( to finance acquisition of said property. The reimbursement shall be made witt eight hundred thousand dollars ($800,000) in CDBG funds previously allocate( specifically for the acquisition of property for affordable housing purposes. It addition, the City shall use funds from a $1.2 million Section 108 CDBG Loan tc complete the reimbursement transaction outlined within this agreement. The subject property shall be used by the City for a rental housing project whict will provide 344 units of housing affordable to households of low and very lov income. As approved by the City on October 26, 1993, the subject affordabll housing project includes one, two, and three bedroom apartment units with rent 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 product said affordable housing units. The development team includes Hillman Propertie (private local developer), BRIDGE Housing Corporation (private non-prof affordable housing developer), and KruerjPicerne Partnership (private locz developer/builder) . The City shall enter into an agreement to lease the subject property to th BRIDGE Housing Corporation for development of the identified affordable housin project. Every effort shall be made by the City to provide full reimbursement to the Agenc for acquisition funds for the subject property by September 30, 1994. If the Ci will be unable to fully reimburse the Agency by the noted date, the City shz request an extension of this reimbursement agreement. 2 0 e 2. SCHEDULE OF PAYMENTS The City shall make two (2) lump sum payments for reimbursement to thl Agency. The first reimbursement payment in the amount of $800,000 shall bl made no later than April 30, 1994. The second reimbursement payment in thl amount of $1.2 million shall be made no later than September 30, 1994. Thl funds used to make said reimbursement payments shall be drawn down from thl City’s Letter of Credit with the United States Department of Housing and Urba Development (HUD) as appropriate and consistent with federal regulations for thl CDBG Program. 3. RECORDS AND REPORTS The City shall maintain all appropriate records to account for the expenditure o 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 abovc 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 unde this agreement until September 30, 1997. All records subject to an audit findins shall be retained for three (3) years from the date the finding is made or until the finding has been cleared by appropriate officials and the City has been given official written notice. As required by the Federal Single Audit Act, the City shall be required to have a comprehensive financial audit prepared by an independent, neutral third-party auditor for the use of CDBG funds. The audit shall cover financial operations oi the City’s CDBG program for the period beginning July 1, 1993 and ending June 30, 1994. The City shall also ensure that an audit is completed for the period covered under fiscal year beginning July 1, 1994 and ending June 30, 1995 for 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 Loan application and with assurances and agreements made to the United States Department of HUD. 3 c 0 0 i The City shall comply with applicable Uniform Administrative Requirements E described in Section 570.502 of the federal regulations for the CDBG Progran the federal requirements are set forth, by reference, as a provision of th agreement. The City shall carry out all activities in compliance with all Federal laws an regulations as described in Subpart K, such as labor standards and fair housin requirements. The provisions of Subpart K, of the CDBG Program Regulations, are set forth, t reference, as a condition of this reimbursement agreement. CHANGES IN USE OF FUNDS This agreement allows the City to reimburse the Agency for interim financi: assistance provided to acquire property for the purpose of developing th identified affordable housing project only. No other use of said funds is permittel without proper public review and City action. 5. 6. NONDISCRIMINATION CLAUSE The City shall comply with all state and federal laws regarding nondiscriminatio in the provision of services and the equal opportunity employment of personne 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 fail! 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 thi! 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 a manner that results in the federal government being reimbursed in the full amounl of the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvemeni to, the property. 4 0 e 9. ASSIGNMENT OF AGREEMENT The Agency shall not assign this agreement or any monies due thereunde 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 tion of the State of California ATTEST: ED AS TO FORM: -0 eG;LC3-a, 3/ 3 f /w . RON BALL, CITY ATTORNEY 5