HomeMy WebLinkAbout; CATHOLIC CHARITIES, DIOCESE OF SAN DIEGO; 2010-0458854; Affordable Housing Agreement/ReleaseRECORDING REQUESTED BY:
City of Carlsbad
WHEN RECORDED MAIL TO:
City of Carlsbad
City Clerk's Office
Attn: City Clerk
1200 Carlsbad Village Drive
Carlsbad, Ca. 920108
DOC it 2010-0458854
SEP 01, 2010 1:11 PM
OFFICIAL RECORDS
SAN DIEGO COUNTY RECORDER'S OFFICE
DAVID L BUTLER, COUNTY RECORDER
FEES: 0.00
PAGES:12
(Space above for Recorder's Use)
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE
CATHOLIC CHARITIES, DIOCESE OF SAN DIEGO FOR 2010-2011
FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
THIS AGREEMENT, made and entered into as of this /cP1"' day of
2010, ("this Agreement") by and between the CITY OF CARLSBAD, a municipal corporation,
hereinafter referred to as "City", and the CATHOLIC CHARITIES, DIOCESE OF SAN DIEGO, a
non-profit corporation ("CATHOLIC CHARITIES"), hereinafter referred to as "Subrecipient".
RECITALS
WHEREAS, the City has applied for and received funds from the United States
Government under Title I of the Housing and Community Development Act of 1974, Public Law
93-383 as amended to fund eligible activities which benefit persons of low and moderate
income; and,
WHEREAS, the City wishes to provide assistance to non-profit public service providers
who offer services for lower income Carlsbad residents; and,
WHEREAS, the Subrecipient can provide these basic services for lower income persons
with some assistance from the City; and,
WHEREAS, the City has determined that the activity proposed by Subrecipient is
exempt from environmental review under 24 CFR Section 58.34(a)(12); and,
WHEREAS, the U.S. Department of Housing and Urban Development has approved the
City's Annual Consolidated Plan for Community Development Block Grant funds (hereinafter
referred to as the "Annual Consolidated Plan").
WHEREAS, HUD means the U.S. Department of Housing and Urban Development.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Subrecipient agree as follows:
i
City Attorney Approved: 10/31/08
1. STATEMENT OF WORK
The City has allocated 2010-2011 federal Community Development Block Grant
("CDBG") funds, in the amount of one hundred fifty thousand dollars ($150,000), to the
Subrecipient for predevelopment activities necessary to rebuild facilities at La Posada
de Guadalupe, a homeless shelter for men in Carlsbad. This funding shall be provided
in the form of a no interest, deferred, and forgivable loan to the Catholic Charities,
Diocese of San Diego. The purpose of the loan is to provide funds to be used
specifically for predevelopment costs related to rebuilding project that will be incurred
during the period beginning July 1, 2010 and ending June 30, 2011. The Subrecipient
agrees to use all federal funds provided by the City to the Subrecipient pursuant to the
provisions of this Agreement, the Scope of Work, attached hereto as Exhibit "A", and in
accordance with the terms of the Annual Consolidated Plan.
Every effort shall be made by the Subrecipient to expend the allocated funds in their
entirety by June 30, 2011. If the Subrecipient will be unable to expend all of the funds
allocated to the project by the noted date, the Subrecipient shall request an extension
from the City for continued use of the funds on the approved project based on progress
made by the Subrecipient towards completing the subject project. The City may agree
to grant the extension or notify the Subrecipient that in its sole discretion the funds must
be reallocated to another eligible activity due to slow project progress.
2. TERM OF LOAN
The term of this loan shall be for a period of twenty (20) years. The twenty year term of
the loan shall commence on the date the Promissory Note is executed and recorded and
expire twenty (20) years after the date of this agreement. Subrecipient acknowledges
that the subject loan is given in connection with predevelopment activities for the La
Posada de Guadalupe rebuilding project only. The loan is not assumable by transferees
of the property unless prior written approval is granted by the City Council. The loan
shall be due and payable in full upon 1) the date the property is first sold or transferred,
or, 2) upon failure of Subrecipient to operate a homeless shelter on the property, if they
occur prior to the expiration of the term of the loan. The loan shall be forgivable upon
expiration of the term of the loan if the property has been maintained and operated as a
homeless shelter consistent with the conditions as set forth within this Agreement, or
operated as another facility eligible for CDBG funds with prior approval from HUD and
the City of Carlsbad.
3. DISBURSEMENT OF FUNDS
The City shall reimburse Catholic Charities for necessary and reasonable costs related
predevelopment costs for rebuilding of La Posada de Guadalupe in Carlsbad. The
necessary and reasonable costs shall not exceed a total of $150,000.
Reimbursement shall not be made until all of the following conditions are completed to
the satisfaction of the City's Housing and Redevelopment Director:
City Attorney Approved: 10/31/08
a. Subrecipient shall provide construction estimates or other information deemed by
City to be necessary to document that Subrecipient will be providing matching funds of
one dollar for every two dollars of CDBG funding to be used on rebuilding La Posada de
Guadalupe.
b. Subrecipient shall execute and deliver to the City a Deed of Trust and Security
Agreement and Promissory Note, and any other documents and instruments required to
be executed and delivered to secure said loan, all in form and substance satisfactory to
the City Attorney for the City of Carlsbad. The Deed of Trust to secure the loan shall be
recorded against Subrecipient's fee interest in the Land described herein.
Upon completing the above conditions to the satisfaction of the Housing and
Redevelopment Director, the Subrecipient may submit reimbursement requests for the
CDBG funds anytime after this agreement is approved and shall include documentation
to verify that costs or expenditure of funds is consistent with this Agreement, the
Statement of Work, the Annual Consolidated Plan, and with all applicable Federal, state,
and local rules and regulations governing these funds. Receipts and paid invoices
including an itemized statement of all costs are samples of appropriate methods of
documentation.
4. PROGRAM INCOME
The Subrecipient shall report, to the City, any interest, or other income, earned as a
direct result of the use of federal CDBG funds for the program outlined within this
agreement. All reported program income may be retained by the Subrecipient for costs
related to the subject program activities. However, the program income, retained by the
Subrecipient, must be expended before additional funds are requested from the City.
The requirements are set forth in 24 CFR Section 570.504 which is incorporated herein
by reference. All CDBG funds shall be disbursed to Subrecipient prior to HUD being
required to disburse HUD Section 811 Capital Advance Funds to Subrecipient.
5. LABOR. MATERIALS AND SUPPLIES:
The Subrecipient or its agents, contractors, subcontractors, management agent or other
designees of Subrecipient shall furnish all labor, materials and services and bear all
expenses necessary to provide the subject program as outlined in this Agreement.
Under this Agreement, the City's only financial obligation to the Subrecipient is to
provide the CDBG funds of $150,000 as allocated by the City Council for program year
2010-2011.
6. RECORDS AND REPORTS
The Subrecipient shall maintain all records required by the Federal regulations specified
in 24 CFR Section 570.506 that are pertinent to the activities to be funded under this
Agreement. Such records shall include but not be limited to:
City Attorney Approved: 10/31/08
a. Records providing a full description of each activity undertaken;
b. Records demonstrating each activity undertaken meets one of the National
Objectives of the CDBG program;
c. Records required to determine the eligibility of activities;
d. Records demonstrating compliance with 24 CFR Section 570.505 regarding change
of use of real property acquired or improved with CDBG assistance;
e. Records demonstrating compliance with the requirements in 24 CFR Section
570.606 regarding acquisition, displacement, relocation, and replacement housing;
f. Records documenting compliance with the fair housing and equal opportunity
components of the CDBG program;
g. Documentation of all CDBG funds received from the City, eligible expenses incurred
for administration of each activity, and other financial records as required by 24 CFR
Section 570.502, and OMB (the United States Office of Management and Budget)
Circular A-110; and,
h. Any other related records as the City shall require to demonstrate compliance with
applicable Federal, state, and local rules and regulations governing these funds.
The Subrecipient shall submit quarterly "Progress Reports" within fifteen (15) calendar
days of the end of each quarter for the full term of this Agreement. The reports must
include sufficient information to assist the City in monitoring the Subrecipient's
performance. The Subrecipient must demonstrate satisfactory performance prior to
reimbursement for expenditures.
At a minimum, the performance reports shall include the following information:
a. Total number of persons/households participating in the program during reported
period;
b. Total number of participants from Carlsbad;
c. Number of low/moderate income Carlsbad persons/households participating in
the program during the reporting period;
d. Age and ethnic background of Carlsbad participants; and,
e. Summary of program(s) provided to Carlsbad participants.
The Subrecipient shall maintain client data demonstrating client eligibility for services
provided. Such data shall include at the minimum client name, address, ethnicity,
income level or other basis for determining eligibility, and a description of the service
provided. This data shall assist the Subrecipient in completing the required quarterly
progress reports to be submitted to the City.
The Subrecipient shall maintain separate accounting records for the federal CDBG
funds provided by the City. The City, Federal Grantor Agency, Comptroller General of
the United States, or any of their duly-authorized representatives shall have access to all
books, documents, papers and records maintained by the Subrecipient which directly
pertain to the above project for the purpose of audit, examination, excerpts and
transcriptions.
City Attorney Approved: 10/31/08
Unless otherwise notified by the City, the Subrecipient shall retain all financial records,
supporting documents and statistical reports related to the project identified under this
Agreement for a period of five (5) years after the termination of all activities funded
under this Agreement. All records subject to litigation, claims, audit findings,
negotiations, or other actions must be retained for five (5) years from the date such
action commenced or until completion of the action and resolution of all issues by the
appropriate officials and verified by official written notice to the Subrecipient, whichever
occurs later. .
If the Subrecipient shall receive more than $300,000 in total federal funds in one
fiscal year from the City of Carlsbad and/or any other city or agency, the Subrecipient is
required to submit a Single Audit Report. As required by the Federal Single Audit Act,
the Subrecipient shall be required to submit, to the City, a comprehensive financial audit
prepared by an independent, neutral third-party auditor. The audit shall cover financial
operations of the Subrecipient for the term of this Agreement and is due not later than
one year after expiration of the Agreement. The Subrecipient shall also be required to
submit a second audit for the following period covered under the fiscal year beginning
July 1, 2011 and ending June 30, 2012 for any funds received in fiscal year 2011-2012
per this Agreement.
7. PROGRAM REQUIREMENTS
The Subrecipient agrees to comply with the requirements of Title 24 of the Code of
Federal Regulations, Part 570 (the Housing and Urban Development regulations
concerning Community Development Block Grants). The Subrecipient also agrees to
adhere to the terms of the City's CDBG Application and Subrecipient Agreement on file
at the Housing and Redevelopment Department and with assurances and agreements
made, by the City to the United States Department of Housing and Urban Development
of which the Subrecipient is given notice.
The Subrecipient shall comply with applicable Uniform Administrative Requirements as
described in 24 CFR Section 570.502, the federal regulations for the CDBG Program;
the federal requirements are set forth, by reference, as a provision of this Agreement.
The Subrecipient shall carry out all activities in compliance with all Federal laws and
regulations as described in Subpart K of the CDBG Program Regulations, such as
affirmatively furthering fair housing, labor standards (Davis Bacon Act), displacement,
relocation and acquisition, and employment and contracting opportunities, except that:
a. The Subrecipient will not assume the City's environmental responsibilities as
described in 24 CFR Section 570.604; and
b. The Subrecipient will not assume the City's responsibility for initiating the review
process required under the provisions of 24 CFR Section 52.
The provisions of Subpart K, of the CDBG Program Regulations, incorporated herein by
reference, are a condition of this Agreement.
City Attorney Approved: 10/31/08
8. CHANGES IN USE OF FUNDS
Changes in the use of CDBG funds must be approved by the City Council and the U.S.
Department of HUD. If the Subrecipient desires a change in the use of the CDBG funds
following approval of this Agreement, a written request must be submitted to the City for
review by the City Council. No change in use of the CDBG funds will be permitted
without prior approval of the City Council.
9. CHANGES IN USE OF PROPERTY
Subrecipient shall use the subject property for a homeless shelter for men in Carlsbad.
Any change in use for the subject property shall require approval of the City Council and
the U.S. Department of HUD.
10. NONDISCRIMINATION CLAUSE
The Subrecipient shall comply with all state and federal laws regarding
nondiscrimination in the provision of services and the equal opportunity employment of
personnel.
11. SUSPENSION AND TERMINATION OF AGREEMENT
In accordance with 24 CFR Sections 85.43 and 85.44, this Agreement may be
suspended or terminated if the Subrecipient fails to comply with any term(s) of the
award. 24 CFR Sections 85.43 and 85.44 are incorporated herein by reference, as
provisions of this Agreement.
12. REVERSION OF ASSETS
Upon expiration of the Agreement, the Subrecipient shall transfer to the City any CDBG
funds on hand at the time of expiration and any accounts receivable attributable to the
use of CDBG funds. The Subrecipient shall be required to use any real property under
the Subrecipient's control that was acquired or improved in whole or in part with CDBG
funds in excess of $25,000 to either be:
a) Used to meet one of the national objectives in 24 CFR Section 570.208 of the
federal regulations until five (5) years after expiration of the Agreement; or,
b) Disposed of in a manner that results in the City being reimbursed in the amount
of the current fair market value of the property less any portion of the value
attributable to expenditures of non-CDBG funds for acquisition, or improvement
to, the property. Reimbursement is not required after the period of time specified
in paragraph (a) of this section.
City Attorney Approved: 10/31708
13. HOLD HARMLESS AGREEMENT
The City, its officers, and employees shall not be liable for any claims, liabilities,
penalties, fines, or any damage to goods, or real or personal property of any person
whatsoever, nor for personal injuries or death caused by, or claimed to have been
caused by, or resulting from, any intentional or negligent acts, errors or omission of
Subrecipient or Subrecipient's agents, employees, or representatives arising directly or
indirectly out of performance of the project outlined in this Agreement.
Subrecipient agrees to defend, indemnify, and hold free and harmless the City, its
officers, employees and agents against any of the foregoing liabilities or claims of any
kind and any cost or expenses incurred by the City including attorneys' fees, on account
of any of the foregoing liabilities, including liabilities or claims arising out of alleged
defects in any plans or specifications for the project or facility.
14. ASSIGNMENT OF AGREEMENT
Subrecipient shall not assign this Agreement or any monies due thereunder without the
prior written consent of the City Council.
15. SUCCESSORS OR ASSIGNS
Subject to the provisions of this Subrecipient Agreement Paragraph 13, "Hold Harmless
Agreement", all terms, conditions, and provisions hereof shall inure and shall bind each
of the parties hereto, and each of their respective heirs, executors, administrators,
successors, and assigns.
16. INSURANCE
The Subrecipient shall obtain and maintain policies of Commercial General Liability
insurance and a combined policy of worker's compensation and employers liability
insurance in an insurable amount of not less than one million dollars ($1,000,000) each,
unless a lower amount is approved by the City Attorney or the City Manager. The
insurance will be obtained from an insurance carrier admitted and authorized to do
business in the State of California. The insurance carrier is required to have a current
Best's Key Rating of not less than "A-:VM" or have a surplus line insurer which is on the
State of California's List of Eligible Surplus Line Insurers with a current Best's Key
Rating of not less than "A:X".
This insurance shall be in force during the term of this Agreement and shall not be
canceled or materially changed without ten (10) days prior written notice to the City sent
by certified mail.
The City shall be named as an additional insured on these policies. The Subrecipient
shall furnish certificates of insurance and required endorsements to the Housing and
Redevelopment Director before commencement of work.
City Attorney Approved: 10/31/08
Executed by Subrecipient this_
SUBRECIPIENT:
Catholic Charities. Diocese of San Diego
(name of Subrecipient)
(_^^*i~*— /Jf. a
day of mines ,2010.
CITY OF CARLSBAD, a municipal corporation
of the State of California
B
By;
(sign here)
City Manager or Mayor
(print name/title
By:
ATTEST:
(sign here)
(print nam HJSa^Tfc
L
City Clerk' 1
. CiUeciient(Proper notarial acknowledgment of execution by Subrecipient must be
Agreement must be signed by one corporate officer from each of the following^
*Group A.
Chairman,
President, or
Vice-President
**Group B.
Secretary,
Assistant Secretary,
CFO or Assistant Treasurer
Otherwise, the corporation must attach a resolution certified by the secretary or assistant
secretary under corporate seal empowering the officer(s) signing to bind the corporation.
APPROVED AS TO FORM:
RONALD R. BALL, City Attorney
BY:
City Attorney Approved: 10/31/08
State of California
County of J/W
On before me,I.. Notary
Public, personally appearedS\$Rfc£pifl\QtiO*J>Vl/PU.t A/V/A/ TfrrAAf, who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) j«^^)subscribed to the
within instrument and acknowledged to me that he/she^Ee^ executed the same in feis/her/Jhei?
authorized capacity(ies), and that by Ms/her<|Iiej2fcignature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California
County o a u
I?,before me ce/T NotaryOn
Public, peVsonally appeared (J^fSl^Lce^ fftL0-A , who proved to me on
the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signatu:
1010\13\530682.1
(Seal)SHERRY A.
CommlMton* 1727044
Notary Public. California
San Dtooo County
I
I
GOVERNMENT CODE 27361.7
I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT
TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS:
Name of the Notary: Liberata R. Herrera
Commission Number: 1807960 Date Commission Expires: Jul 31. 2012
County Where Bond is Filed: San Diego
Manufacturer or Vendor Number: NNA1
(Located on both sides of the notary seal border)
Signature: \/J^\. c—* "V City of Carlsbad
Place of Execution: Office of the City Clerk/City of Carlsbad Date: 8/20/10
Rec. Form #R10 (Rev.7/96)
EXHIBIT "A"
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
SCOPE OF WORK
Contract Term: July 1, 2010 to June 30, 2011
Subrecipient Name: CATHOLIC CHARITIES, DIOCESE OF SAN DIEGO
Address: 349 Cedar Street, San Diego, CA 92101
Project Description: Funds are to be provided to assist with the costs of predevelopment
activities related to rebuilding of La Posada de Guadalupe, a homeless
men's shelter in Carlsbad.
Project Goals & Objectives: (Please Attach Additional Sheets As Necessary.)
1. CDBG funds will be used to fund the following activities in compliance with the project
description outlined and in conformance with the Federal regulations for the CDBG
program: (Please specify if CDBG funds will be used to fund costs associated with staffing,
rents, utilities, supplies, etc.)
Funds are to be provided to assist with the costs of predevelopment activities related to
rebuilding of La Posada de Guadalupe, a homeless men's shelter in Carlsbad.
Predevelopment activities may include preparation of plans, engineering studies, payment
of permit fees and other non-construction activities necessary to rebuild shelter facilities.
2. Project objectives to be accomplished during the contract period: (Please describe the
specific services or activities to be provided to low/moderate income residents with the
CDBG funds awarded. If applicable, please provide a target objective for the number of
persons/households to benefit from the Subrecipient's services/project.)
Conduct eligible predevelopment activities necessary to rebuild La Posada de Guadalupe
homeless shelter.
3. Project objectives performance measures:
a. Provide quarterly performance reports to the City of Carlsbad, Housing and
Redevelopment Department on the CDBG Quarterly Performance Report form as
provided.
b. Maintain records, invoices, and relevant statistics supporting the quarterly reports.
c. Provide a final performance report, including an evaluation report of the program's
success in meeting established goals, to the City of Carlsbad Housing and
Redevelopment Department within 15 days of termination of the contract date on the
CDBG Annual Performance Report form as provided.
d. Provide notification to the City of any audits or investigations including results, findings,
and/or liens.
Contract Term:
EXHIBIT "B"
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
BUDGET
July 1,2010 to June 30, 2011
Subrecipient Name: CATHOLIC CHARITIES, DIOCESE OF SAN DIEGO
Address: 349 Cedar Street, San Diego, CA 92101
Project Description: Funds are to be provided to assist with the costs of predevelopment
activities related to rebuilding of La Posada de Guadalupe, a homeless
men's shelter in Carlsbad.
The total grant amount of $150,000 will be used to assist with the costs of
predevelopment activities related to rebuilding of La Posada de
Guadalupe, a homeless men's shelter in Carlsbad. Predevelopment
activities may include preparation of plans, engineering studies, payment
of permit fees and other non-construction activities necessary to rebuild
shelter facilities. Subrecipient shall provide estimates and other
information deemed necessary by the Housing and Redevelopment
Director to document that Subrecipient will be providing matching funds
of one dollar for every two dollars of CDBG funds available for
reimbursement.
10