HomeMy WebLinkAboutAgreement A-17-390 with Habitat for Humanity Fresno Inc..pdf 17-0734
Agreement No. 17-390
1 AGREEMENT
2 THIS AGREEMENT ("Agreement") is made this 11th day of July
3 2017, by and between the COUNTY OF FRESNO, a political subdivision of the State of
4 California (hereinafter the "County") and Habitat for Humanity Fresno, Inc., a Domestic Non-
5 profit Corporation, whose mailing address is 4991 E. McKinley Suite 123, Fresno, California
6 93727, (hereinafter"Borrower").
7 WITNESSETH
8 WHEREAS, the County has been designated as a participating jurisdiction to administer
9 and implement the Federal HOME Investment Partnerships (HOME) Program activities of the
10 County in accordance with the Federal HOME regulations, and the laws of the State of
11 California; and
12 WHEREAS, Federal HOME regulations require the County set aside a minimum of
13 fifteen percent (15%) of the County's annual HOME allocation for eligible housing activities that
14 will be owned, developed or sponsored by a qualified Community Housing Development
15 Organization (CHDO); and
16 WHEREAS, the County has determined that Borrower has met the requirements for
17 designation as a County-certified CHDO; and
18 WHEREAS, the general purpose of the HOME Program is to strengthen public-private
19 partnerships and to expand the supply of decent, safe, sanitary and affordable housing for very
20 low-income and low-income households; and
21 WHEREAS, Borrower, a County-certified CHDO and the developer of the proposed
22 Habitat Riverdale Development (hereinafter "Project"), has requested a HOME Program loan
23 not to exceed Three Hundred Ninety Thousand Dollars ($390,000) via the CHDO set aside
24 funds to assist with the construction of two (2) single family residences for low-income families
25 in Riverdale, California, an unincorporated area of the County of Fresno, which will be
26 restricted and affordable to very low and low-income persons. The Borrower also requests that
27 the HOME funds be used as a construction loan and secondary mortgage financing for eligible
28 homebuyers; and
1
1 WHEREAS, the County has Three Hundred Ninety Thousand Dollars ($390,000)
2 available from its HOME funds to loan to the Borrower for the Project, which will be provided
3 firstly and primarily through the CHDO set-aside funds per the Federal HOME regulations; and
4 WHEREAS, the County has determined the Borrower has the capacity to develop the
5 Project and the Project has been determined to meet HOME requirements for funding; and
6 WHEREAS, the Project will increase the supply of affordable housing units in Fresno
7 County for households earning no more than eighty percent (80%) of the area median income
8 as reported annually by the U.S. Department of Housing and Urban Development (HUD); and
9 WHEREAS, the total estimated Project cost is Four Hundred and Seventy Eight
10 Thousand Dollars ($478,000), and the Borrower has or will obtain other funding commitments
11 apart from the County HOME loan to complete the financing for the Project; and
12 WHEREAS, the Project is consistent with the County's Consolidated Plan and the
13 County's General Plan which promotes compact growth by directing most new urban
14 developments to incorporated cities and existing unincorporated urban communities where
15 there is infrastructure to accommodate the growth.
16 NOW, THEREFORE, in consideration of their promises as hereinafter set forth, the
17 Borrower and the County agree as follows:
18 I. PROJECT DESCRIPTION, LOCATION, BUILDING REQUIREMENTS AND
19 BUDGET
20 A. DESCRIPTION:
21 1. The Project consists of the development of two (2) single family
22 residences which shall be HOME-assisted and shall satisfy HOME occupancy requirements for
23 no less than the required HOME Period of Affordability. The Period of Affordability will be a
24 maximum of fifteen (15) years beginning on the date the Project is completed and closed in
25 HUD's Integrated Disbursement & Information System (IDIS). The Project will consist of three
26 (3) and/or four (4) bedroom single family residences.
27 2. The Project will utilize a mutual self-help housing model in the
28 construction of the residences, whereby each homebuyer or volunteer will contribute labor in
2
1 the construction of the residence. The Borrower shall maintain and provide to the County
2 records of actual hours spent by each volunteer in performing voluntary labor, which shall be
3 credited as sweat equity. Such records can be used as one of the methods to calculate
4 compliance with the HOME match requirement.
5 3. The Project will provide new housing units that will be affordable to
6 households earning no more than eighty percent (80%) of area median income for Fresno
7 County, as reported annually by HUD.
8 B. LOCATION:
9 The Project will be developed on two (2) individual lots that are part of an
10 approximately 16.14 acre site (the "Property") located along Wilda, Pendleton and Earl Streets,
11 east of Troutdale Lane and north of Stathem Street, in the unincorporated community of
12 Riverdale, California and will consist of two (2) single family residences.
13 C. BUILDING REQUIREMENTS:
14 1. All aspects of the building construction will meet or exceed the
15 County's minimum building construction standards and the International Energy Conservation
16 Code, and must comply with all applicable local building codes.
17 2. Housing Quality Standards: The Project shall meet the requirements
18 of 24 CFR § 92.251 relating to property standards and all applicable local housing code
19 requirements for the duration of this Agreement, and any modifications or amendments or
20 successor agreements thereto.
21 D. BUDGET:
22 1. This Agreement does not provide the Borrower any legal claim to any
23 amount of HOME loan funds to be used for the specific Project at the site unless and until the
24 Property has received environmental clearance, received authorization from HUD to use grant
25 funds, and has met the other terms of this Agreement.
26 2. The total preliminary Project budget estimate is Four Hundred and
27 Seventy Eight Thousand Dollars ($478,000). The proposed work to be funded with County
28 HOME loan funds for the development of the two (2) single family residences is as follows:
3
1 Expenses to be paid with HOME loan funds:
2 Construction Costs $390,000
3 TOTAL HOME loan funds $390,000
4 Notwithstanding the estimates described in the above preliminary Project budget,
5 disbursements for the Project from HOME loan funds will be based on the actual costs and
6 shall not exceed the total amount of Three Hundred Ninety Thousand Dollars ($390,000).
7 Disbursement of HOME funds is subject to approval and execution of loan, security, and
8 related documents acceptable to the County, in its sole discretion.
9 E. FUNDING:
10 1. Notwithstanding any other provision of this Agreement, the parties
11 hereto agree and acknowledge that this Agreement does not constitute a commitment of loan
12 funds or site approval, and that such "commitment of loan funds" or approval may occur only
13 upon satisfactory completion of the environmental review and receipt by the County of a
14 Release of Funds from the U.S. Department of Housing and Urban Development under 24
15 CFR § 58. In addition, no commitment of loan funds will be made until all requirements
16 contained in this Agreement or any other loan, security or other related documents are met by
17 the Borrower, as determined by the County. The parties further agree that the loan of any
18 funds to the Project is conditioned upon the County's determination to proceed with, modify or
19 cancel the Project based on the results of the Project's environmental review as specified in
20 Section III of this Agreement. The County will give written notification to the Borrower when
21 these requirements have been met.
22 2. Attachment A to this Agreement, which is incorporated herein by
23 reference, lists the potential funding sources and proposed funding amounts for the Project.
24 Notwithstanding the funding sources and amounts identified in Attachment A, disbursements
25 for the Project from HOME loan funds will be contingent upon reliable evidence acceptable to
26 the County in its sole discretion that the Borrower has obtained all funding necessary to meet
27 the total Project cost. In addition, the Borrower may not advertise or award the Project until the
28 County has received authorization from HUD to use the grant funds, as described in Section I,
4
1 Part D-1.
2 F. CHANGES TO PROJECT:
3 The Borrower will give written notification to the County Department of
4 Public Works and Planning, Community Development Division of any event that changes the
5 scope of the Project and/or the funding sources. The Director of the Department of Public
6 Works and Planning, or his designee, at his discretion, is authorized to permit minor changes to
7 the scope of the Project and/or the funding sources, provided the Director or his designee
8 determines that such changes do not substantively alter the scope of the Project, the maximum
9 amount of HOME loan funds allocated to the Project or the Project's eligibility under the
10 Federal HOME regulations, as more fully set forth in Section VII, Paragraph K of this
11 Agreement.
12 II. OBLIGATIONS OF THE COUNTY
13 A. FUNDING:
14 1. The County shall reserve up to, but not more than, Three Hundred
15 Ninety Thousand Dollars ($390,000) from the County's allocation of Federal HOME Program
16 funds for the Project. All funds will be paid to the Borrower, in accordance with Section VII,
17 Paragraph A of this Agreement, subject to the requirements of all applicable Federal and State
18 statutory and regulatory requirements. Notwithstanding changes in the funding sources and
19 amounts identified in Attachment A, disbursements for the Project from HOME Program funds
20 will be contingent upon the County's receipt, review and approval of highly reliable evidence
21 acceptable to County in its sole discretion that the Borrower has obtained or will obtain all
22 funding to meet the Project development costs. Evidence may include, but not be limited to,
23 funding commitments and/or loan documentation from other lenders.
24 2. The County, at its sole discretion, may accept any of the following as
25 repayment of HOME funds disbursed to the Borrower for construction of the Project; a) cash
26 payments from the Borrower; b) secondary financing security documents in the form of
27 promissory notes and deed of trusts to eligible homebuyers in aggregate of Three Hundred
28 Ninety Thousand Dollars ($390,000); or c) a combination of these security documents and cash
5
1 payments from the Borrower in aggregate of Three Hundred Ninety Thousand Dollars
2 ($390,000). The County also agrees in the case that the total development cost exceeds the
3 sales price the County will provide a development subsidy in the amount not to exceed
4 $124,123 toward the project which will reduce the amount owed on the loan. The Borrower
5 agrees to sell the homes for no less than the appraised value of the maximum sales price
6 allowed by all funders.
7 B. APPROVAL OF HOMEBUYERS:
8 The County shall review information provided by the Borrower to ensure the
9 selected homebuyers for the two (2) HOME-assisted single family residences meet the
10 County's Homebuyer Assistance Program (HAP) requirements. The combined maximum
11 amount of the secondary loan assistance for the two (2) residences cannot exceed the Three
12 Hundred Ninety Thousand Dollars ($390,000) of HOME funds awarded to the Borrower. All
13 homebuyers must receive a secondary loan from the County. The County will provide to the
14 Borrower an approval letter that specifies the maximum amount of HOME subsidy available to
15 each homebuyer to aid in the purchase of a home. The Borrower must follow HUD's Part 5
16 definition of annual income as defined in 24 CFR § 5.609 to determine initial eligibility. Each
17 eligible homebuyer is required to invest, of their own funds, a minimum of one and a half
18 percent (1.5%) of the home sales price (total development cost) towards the purchase of their
19 home. The County may choose to credit the value of sweat equity earned by each homebuyer
20 as part of this required homebuyer investment. The County requires each HAP applicant
21 attend a sixteen-hour homeownership course comprised of an eight-hour pre-purchase course
22 and an eight-hour maintenance course. The County may allow eligible homebuyers, who
23 purchase homes in the Habitat Riverdale Development, to credit their construction labor
24 experience as a substitute for the eight-hour maintenance course requirement.
25 C. LOAN DOCUMENTS:
26 1. Promissory Note: The County will prepare a Promissory Note for
27 execution by the Borrower ("Note") in a form and content acceptable to the County, in the
28 County's sole discretion. Said Promissory Note will set forth the terms and conditions and plan
6
1 for repayment of the Three Hundred Ninety Thousand Dollars ($390,000) HOME loan and
2 other fees or charges, including but not limited to liquidated damages, if applicable. HOME
3 loan funds shall be utilized to assist with the construction of two (2) affordable single family
4 residences. The Borrower shall provide a performance bond and a labor and materials
5 (payment) bond or other equivalent security instrument approved by the County, as security for
6 the Note.
7 2. Homebuyer's Promissory Note: The County will prepare Promissory
8 Notes for execution by the each of the Project's homebuyers (Homebuyer's Note) in a form and
9 content acceptable to the County. Said Promissory Note will set forth the terms, conditions and
10 repayment of the secondary mortgage financing and will include affordability and residency
11 requirements. In addition to the Homebuyer's Note, each secondary mortgage shall be
12 secured with a Deed of Trust recorded against the property. Each Homebuyer's Note and
13 Deed of Trust will be executed concurrently upon the transfer of property ownership from the
14 Borrower to each individual homebuyer.
15 D. LABOR COMPLIANCE:
16 1. The County shall verify with the Labor Relations Division of HUD that
17 any contractor contracted for this Project has not been debarred or suspended from
18 participating in Federal projects in accordance with Section IV, Paragraph B-5 of this
19 Agreement. The County will provide Borrower with written notification that this requirement has
20 been met.
21 2. The County shall attend the pre-construction meeting between the
22 Borrower and any project or construction management company contracting with the Borrower
23 (whether those construction contractors are contracting directly with the Borrower or indirectly
24 through the Borrower's project or construction management company) to discuss labor
25 compliance requirements for the Project, monitor Project records. The County may conduct
26 field reviews to ensure that labor compliance and other conditions of the contract have been
27 met.
28
7
1 III. PROJECT SUBJECT TO ENVIRONMENTAL CLEARANCE and RELEASE OF
2 FUNDS
3 In accordance with Federal HOME regulations, the Borrower may not incur costs
4 to be paid with County HOME loan funds for this Project until the County notifies the Borrower
5 that it has received the Authorization to Use Grant Funds notice (i.e., release of funds) from
6 HUD. The County shall specify in a letter to the Borrower that such notice has been received.
7 Any costs incurred prior to the County's written notification to Borrower that grant
8 funds may be released shall not be reimbursed from the County HOME loan funds and may
9 jeopardize use of County HOME funds for the Project.
10 IV. OBLIGATIONS OF THE BORROWER
11 A. FUNDING:
12 1. The Borrower hereby certifies the authenticity and accuracy of the
13 information provided to the County with regards to the fiscal soundness of the Borrower and
14 Borrower's capacity to undertake the proposed Project. The Borrower further certifies that it
15 has examined the Project neighborhood market conditions and determined there is adequate
16 need for the Project.
17 2. The Borrower will provide any and all sums of money in excess of
18 Three Hundred Ninety Thousand Dollars ($390,000) that may be necessary to complete the
19 Project. Prior to disbursement of County HOME loan funds, the Borrower shall secure or
20 obtain firm commitments from other funding sources for any and all sums of money in excess
21 of Three Hundred Ninety Thousand Dollars ($390,000) that may be necessary to complete the
22 Project. The Borrower will provide evidence of such commitments of funds satisfactory to the
23 County, as specified in Section I, Paragraph E-2 of this Agreement. The failure to secure all
24 sums of money in excess of Three Hundred Ninety Thousand Dollars ($390,000) that may be
25 necessary to complete the Project, shall be deemed a material breach of this Agreement as
26 discussed in Section VII, Paragraph E of this Agreement.
27 3. Borrower, as the Developer of the Project, is responsible to acquire
28 financing for the Project's construction, arrange for payment of construction costs, ensure the
8
1 Project is built within plans and specifications, provide required insurance coverages, select
2 eligible homebuyers to build and purchase the two single-family residences and ensure those
3 homebuyers are able to acquire permanent financing.
4 4. Prior to any disbursement of funds, the Borrower shall provide to the
5 County file documentation for each selected homebuyer to include verification of such
6 homebuyer's income eligibility, credit history and verification of income source(s). All selected
7 homebuyers must also meet the requirements for the County's Homebuyer Assistance
8 Program.
9 5. The Borrower shall require that all documents with other lenders to the
10 Project include a clause stating that all Notice of Default statements be provided to the County
11 and any and all other interested parties, including all co-owners, all limited partners, and all
12 senior lenders of the Project; who shall all have thirty (30) days, or such longer applicable cure
13 period as set forth in the Promissory Note, to cure said default. During said cure period, the
14 County shall forebear from taking any action to perfect its default remedies.
15 6. The Borrower agrees to provide the County a summary of the total
16 Project expenses, within ninety (90) days of Borrower's receipt of Certificates of Occupancy for
17 the two (2) residences, outlining the total development cost associated with Habitat Riverdale
18 Development. In the event the total Project cost is less than the current estimated total Project
19 cost of Four Hundred and Seventy Eight Thousand Dollars ($478,000), the Borrower will notify
20 the County of such saving. The County may at its sole discretion, reduce the County's
21 contribution equal to the amount saved. If the County contribution is reduced, each individual
22 homebuyer's amount of secondary financing will be reduced to reflect the actual development
23 cost for the residence. The repayment of the funds not provided as secondary financing must
24 be paid back to the County within ninety (90) days of Borrower's receipt of the Certificate of
25 Occupancy.
26 7. The Borrower will provide to the County a final accounting of all funds
27 utilized for Project completion for the purpose of documenting matching funds to HUD (i.e.,
28 twenty-five percent (25%) of the County's HOME loan) to the Project from other non-Federal
9
1 sources in accordance with 24 CFR § 92.220. There is no matching funds requirement under
2 this project agreement.
3 B. DEVELOPMENT:
4 1. The Borrower is prohibited from undertaking or committing any funds
5 to physical or choice-limiting actions, including property acquisition, demolition, movement,
6 rehabilitation, conversion, repair or construction prior to the environmental clearance. A
7 violation of this provision will result in the denial of HOME loan funds under this Agreement.
8 2. For acquisition of raw land, prior to the execution of loan documents,
9 the Borrower will provide the County with a copy of the appraisal establishing the fair market
10 value of the land on which the Project is to be built. Such appraisal shall be performed by a
11 State certified real estate appraiser or other appraiser acceptable to the County.
12 3. The Borrower shall develop and construct the Project as new
13 construction single-family residences for households earning no more than eighty percent
14 (80%) of the Area Median Income (AMI) for Fresno County, as defined by HUD at time of initial
15 occupancy. Additionally, Borrower shall develop the Project in accordance with 24 CFR §
16 92.254, qualifications for affordable housing, home ownership projects. The sales price of each
17 home shall not exceed ninety five percent (95%) of the area median purchase price as
18 established annually by HUD. The Borrower will provide the County a copy of an appraisal
19 establishing the fair market value for each house after construction. Such appraisal shall be
20 performed by a state certified residential real estate appraiser. The Project will adhere to 24
21 CFR § 92.250, which requires that all residences not exceed the maximum subsidy amount per
22 unit as established under section 221(d)(3)(ii) of the National Housing Act. Additionally, the
23 County will perform a subsidy layering analysis of the Project for each selected homebuyer
24 prior to the commitment of HOME funds.
25 4. Prior to award of the construction contract, the Borrower will provide
26 the County an independent cost-estimate for the Project to determine cost-reasonableness in
27 order to obtain from the County written approval of the contractor, the award, amount of the
28 contract, and the final Project budget. Prior to the date the construction is to begin, the
10
1 Borrower will provide both the contractor and the County with a copy of the Notice to Proceed.
2 5. Prior to award of contracts, the Borrower will furnish the name of each
3 contractor selected for the Project to the County so that the County can verify with the HUD
4 Labor Relations Division that the contractor has not been debarred or suspended from
5 participating in Federal projects.
6 6. To the extent contractors and/or subcontractors are utilized on this
7 Project, the Borrower will conduct outreach to minority- and women-owned business
8 enterprises (MWBE), and ensure that contractors/subcontractors are informed of the
9 requirements of Section 3 of the Housing and Urban Development Act of 1968 (hereinafter
10 "Section 3") applicable to the Project and are licensed in accordance with the regulations of the
11 Contractors State License Board.
12 7. The Borrower will conduct a pre-construction meeting with the
13 contractor and will notify the County at least five (5) working days prior to the meeting, so that a
14 representative of the County can be in attendance to discuss HOME labor compliance
15 requirements and the applicable Section 3 and MWBE policies for the Project. Attachment B to
16 this Agreement, which is incorporated herein by reference, provides the required Section 3
17 compliance forms to be provided by the County to the Borrower and the contractor to complete
18 and return to the County.
19 8. Prior to the start of construction, the Borrower will secure all required
20 permits from the County of Fresno. The Borrower will provide to the County copies of all such
21 permits.
22 9. The Borrower shall comply with the mitigation measures and
23 conditions identified in Environmental Assessment No. 6904, which is incorporated herein by
24 reference.
25 C. DISBURSEMENT:
26 1. The Borrower may not request disbursement of loan funds under this
27 Agreement until all conditions stated under Section III, Section IV, Section V and Section VI of
28 this Agreement have been satisfied. HOME loan funds will be distributed to the Borrower on a
11
1 reimbursement basis for actual eligible costs.
2 D. LOAN DOCUMENTS:
3 1. Prior to execution of the County's loan documents, the Borrower shall
4 submit for the County's review all loan documents and related security documents, and any
5 and all other related documents, and any amendments thereto, including the required deed
6 restrictions from other funding sources.
7 2. The Borrower will select and use a title company acceptable to the
8 County for title work.
9 3. The Borrower will record a Notice of Completion and will provide the
10 County a copy of the Notice of Completion after recordation.
11 E. COMPLIANCE:
12 1. The Borrower will provide the County with copies of all potential
13 homebuyers to be approved for the purchase of a home for County's review and approval.
14 2. The Borrower will comply with all Federal regulations (including, but
15 not limited to: 24 CFR Parts 91, 92 and 135) governing the use of HOME funds and 24 CFR
16 Parts 91 and 92, and specifically Sections 92.203 Income Determinations, 92.205 Eligible
17 Activities-General, 92.206 Eligible Project Costs, 92.207 Eligible Administrative and Planning
18 Costs, 92.214 Prohibited Activities, Sec. 92.250 Maximum Per-Unit Subsidy Amount and
19 Subsidy Layering, , 92.350 Other Federal Requirements and Nondiscrimination, 92.202, and
20 92.250 Fair Housing and Equal Opportunity, 92.351 Affirmative Marketing; Minority Outreach
21 Program, 92.353 Displacement, Relocation, and Acquisition, 92.356 Conflict of Interest, 92.503
22 Program Income, Repayments, and Recaptured Funds, 92.505 Applicability of Uniform
23 Administrative Requirements and 92.354 Labor Provisions; Borrower to comply with all
24 prevailing wage requirements, as they may apply. Borrower to provide access to all original
25 documents and provide copies as requested by the County and HUD.
26 V. CONFORMANCE WITH APPLICABLE LAWS AND REGULATIONS
27 The Borrower, its consultants, contractors, and subcontractors will comply with all
28 applicable State and Federal laws and regulations governing projects that utilize Federal funds.
12
1 Whenever the Borrower uses the services of a contractor, realtor, or property
2 management company, either directly or indirectly, the Borrower shall require that the
3 contractor or property management company comply with all Federal, State and local laws,
4 ordinances, regulations, this Agreement and Fresno County Charter provisions applicable in
5 the performance of their work.
6 Because the Borrower will borrow at least One Hundred Thousand Dollars
7 ($100,000) for the Project from the County's HOME Program under this Agreement, the
8 Borrower will complete and submit to the County a "Certification for Contracts, Grants, Loans
9 and Cooperative Agreements" form and a "LLL-Disclosure of Lobbying Activities" form.
10 Likewise, before the Borrower awards a contract using at least One Hundred Thousand Dollars
11 ($100,000) of such HOME loan funds, the Borrower will require the consultant and/or contractor
12 and all their sub-consultants and/or subcontractors to complete and submit the two (2) forms
13 described hereinabove to both the Borrower and the County.
14 VI. INSURANCE
15 Without limiting the County's right to obtain indemnification from the Borrower or
16 any third parties, the Borrower, at its sole expense, will maintain in full force and affect the
17 following insurance policies throughout the term of this Agreement:
18 A. PROPERTY INSURANCE:
19 A policy of Property Insurance to the extent of not less than one hundred
20 percent (100%) of the actual full replacement cost (without depreciation) of all buildings and
21 improvements located on the Property, insuring against loss or damage by fire, extended
22 coverage perils and such other hazards, casualties or other contingencies (other than damage
23 from earthquakes) as from time to time may be reasonably required by the County of Fresno.
24 The Borrower will obtain endorsements to the Property Insurance naming
25 the County of Fresno, its officers, agents, and employees, individually and collectively, as
26 additional insured, but only insofar as the operations under this Agreement are concerned.
27 Such coverage for additional insured will apply as primary insurance and any other insurance,
28 or self-insurance, maintained by the County, its officers, agents and employees shall be excess
13
1 only and not contributing with insurance provided under the Borrower's policies herein. This
2 insurance shall not be cancelled or changed without a minimum of thirty (30) days advance
3 written notice given to the County.
4 B. COMMERCIAL GENERAL LIABILITY INSURANCE:
5 Commercial General Liability Insurance with limits of not less than One
6 Million Dollars ($1,000,000) per occurrence and an annual aggregate of Two Million Dollars
7 ($2,000,000). This policy will be issued on a per occurrence basis. The County may require
8 specific coverage including completed operations, product liability, and contractual liability,
9 Explosion-Collapse-Underground, fire, extended coverage, legal liability or any other liability
10 insurance deemed necessary because of the nature of this Agreement.
11 The Borrower will obtain endorsements to the Commercial General Liability
12 Insurance, fire, and extended coverage, naming the County of Fresno, its officers, agents, and
13 employees, individually and collectively, as additional insured, but only insofar as the
14 operations under this Agreement are concerned. Such coverage for additional insured will
15 apply as primary insurance and any other insurance, or self-insurance, maintained by the
16 County, its officers, agents and employees shall be excess only and not contributing with
17 insurance provided under the Borrower's policies herein. This insurance shall not be cancelled
18 or changed without a minimum of thirty (30) days advance written notice given to the County.
19 C. AUTOMOBILE LIABILITY INSURANCE:
20 Comprehensive Automobile Liability Insurance with limits for bodily injury of
21 not less than Two Hundred Fifty Thousand Dollars ($250,000) per person, Five Hundred
22 Thousand Dollars ($500,000) per accident and for property damages of not less than Fifty
23 Thousand Dollars ($50,000) or such coverage with a combined single limit of Five Hundred
24 Thousand Dollars ($500,000). Coverage should include owned and non-owned vehicles used
25 in connection with this Agreement.
26 D. PROFESSIONAL LIABILITY INSURANCE:
27 If the Borrower employs licensed professional staff (e.g., Ph.D., R.N.,
28 L.C.S.W., M.F.C.C., Engineer, Architect) in providing services, Professional Liability Insurance
14
1 with limits of not less than One Million Dollars ($1,000,000) per occurrence, Two Million Dollars
2 ($2,000,000) annual aggregate is required.
3 E. WORKER'S COMPENSATION INSURANCE:
4 A policy of Worker's Compensation Insurance as may be required by the
5 California Labor Code.
6 Within thirty (30) days of the date the Borrower signs this Agreement, the
7 Borrower will provide certificates of insurance and endorsement as stated above for all of the
8 listed policies, as required herein, to the County of Fresno, Community Development Division,
9 Affordable Housing Programs Manager, 2220 Tulare Street, 6th Floor, Fresno, CA 93721,
10 stating that such insurance coverages have been obtained and are in full force; that the County
11 of Fresno, its officers, agents and employees will not be responsible for any premiums on the
12 policies; that such Commercial General Liability Insurance names the County of Fresno, its
13 officers, agents and employees, individually and collectively, as additionally insured, but only
14 insofar as the operations under this Agreement are concerned; that such coverage for
15 additional insured shall apply as primary insurance and any other insurance, or self-insurance,
16 maintained by the County, its officers, agents and employees, shall be excess only and not
17 contributing with insurance provided under the Borrower's policies herein; and that this
18 insurance shall not be cancelled or changed without a minimum of thirty (30) days advance,
19 written notice given to the County.
20 In the event the Borrower fails to keep in effect at all times insurance
21 coverage as herein provided, the County may, in addition to other remedies it may have,
22 suspend or terminate this Agreement upon the occurrence of such event.
23 All policies will be with admitted insurers licensed to do business in the State of California.
24 Insurance purchased will be purchased from companies possessing a current A.M. Best, Inc.
25 rating of A FSC VII or better.
26 F. BOND INSURANCE:
27 Borrower acknowledges as a condition of receiving County HOME funds
28 that the Borrower shall provide a performance bond and a labor and materials (payment) bond
15
1 or other equivalent security instrument approved by the County, as security for the Note.
2 Borrower understands and acknowledges that the aforementioned
3 requirements are a condition precedent to Borrower's receipt of any County HOME funds and
4 that Borrower's failure to obtain a performance bond and/or a payment bond or other equivalent
5 security instrument approved by the County shall be considered a material breach of this
6 Agreement.
7 VII. GENERAL REQUIREMENTS AND POLICIES
8 A. LOAN DISBURSEMENT:
9 1. Amount: The total amount of HOME funds available to be loaned for
10 the Project shall not exceed the total sum of Three Hundred Ninety Thousand Dollars
11 ($390,000).
12 2. Disbursement Requests
13 a. The Borrower will submit written requests to the County
14 for loan disbursements to pay actual costs incurred in the performance of this Agreement. Any
15 such request for disbursement from HOME loan funds will be accompanied by a written
16 certification from the Borrower that the request for disbursement is consistent with the amount
17 of work that has been completed and that to the best of the Borrower's knowledge, the work is
18 in accordance with this Agreement.
19 b. Requests for disbursement shall be accompanied by
20 supporting documentation acceptable to the County detailing the items comprising the total
21 sought to be reimbursed, such as invoices or vouchers for services or materials purchased,
22 contractors' costs or other costs chargeable to the Project. After appropriate review and
23 progress inspection, the County shall make disbursements to the Borrower from HOME loan
24 funds provided in this Agreement for all verified eligible costs specified herein. The Project's
25 proposed disbursement schedule is provided in Attachment C to this Agreement, which is
26 incorporated herein by reference.
27
28
16
1 C. All requests for disbursement and supporting
2 documentation shall be sent to:
3 Affordable Housing Programs Manager
Department of Public Works and Planning
4 Community Development Division
2220 Tulare Street, 6th Floor
5 Fresno, CA 93721
6
d. The County shall not be obligated to make any
7
disbursement of funds for the Project under this Agreement if the request for disbursement is
8
submitted by the Borrower more than sixty (60) days after the Notice of Completion has been
9
filed with the County Recorder's Office. The Director of the Department of Public Works and
10
Planning, or his designee, prior to the deadline, may grant an extension to the sixty (60) day
11
period if the Borrower can demonstrate just cause for the delay.
12
3. All requests for disbursements will be processed via Special Run
13
check processing or a wire transfer as determined by the County and processed by the
14
County's Auditor-Controller-Treasurer/Tax Collector ("ACTTC").
15
4. Outside Agreements: The County will not be bound by any agreement
16
between the Borrower and any of its partners, agents, employees or subcontractors. The
17
County will be bound only by the terms of this Agreement. It is understood and agreed by the
18
parties hereto that no third party beneficiary status or rights are created by or under this
19
Agreement and that no other person, firm, corporation, or entity shall be deemed a third party
20
beneficiary of this Agreement.
21
22 5. Generally Accepted Accounting Principles: The Borrower will establish
23 accounting and bookkeeping procedures in accordance with Generally Accepted Accounting
24 Principles (GAAP) and standard bookkeeping practices, including, but not limited to, employee
25 timecards, payrolls and other records of all transactions to be paid with HOME loan funds in
26 accordance with the performance of this Agreement. All records and accounts will be available
27 for inspection by the County, the State of California, the Federal government and if applicable,
28 the Comptroller General of the United States or any of their duly authorized representatives, at
17
1 all reasonable times for a period of at least five (5) years following the termination or expiration
2 of this Agreement or the closure of all other related pending matters, whichever is later. The
3 Borrower will certify accounts when required or requested by the County.
4 B. AUDITS:
5 The Borrower is required to comply with the provisions of the Single Audit
6 Act of 1984 (31 USC Sections 7501 et seq.), as amended. Whenever the Borrower receives
7 HOME loan funds from the County for a project, a copy of any audit performed by the Borrower
8 in accordance with said Act will be forwarded to the Affordable Housing Programs Manager
9 within nine (9) months of the end of any fiscal year in which loan funds were distributed,
10 borrowed, and/or outstanding for the Project. Failure to perform the requisite audit functions as
11 required by this paragraph may result in the County performing any necessary audit task or, at
12 the County's option, in the County contracting with a public accountant to perform the audit. All
13 audit costs related to the Borrower's failure to perform the requisite audit are the sole
14 responsibility of the Borrower and such audit work costs incurred by the County shall be billed
15 to the Borrower as determined by the County's ACTTC. The Borrower agrees to take prompt
16 and appropriate corrective action on any instance of material non-compliance with applicable
17 laws and regulations.
18 C. INDEMNIFICATION:
19 The Borrower will indemnify, save, hold harmless, and at the County's
20 request, defend the County, its partners, officers, agents, and employees from and against any
21 and all costs and expenses, damages, liabilities, claims and losses whatsoever, occurring or
22 resulting to the County in connection with the performance, or failure to perform, by the
23 Borrower, its partners, officers, agents, employees, or any persons, firms, or corporations
24 furnishing or supplying work, services, materials, or supplies in connection with the
25 performance of this Agreement, and from any and all claims and losses occurring or resulting
26 to any person, firm, or corporation who may be injured or damaged, including damage, injury,
27 or death arising out of or connected with the performance, or failure to perform, of the
28 Borrower, its partners, officers, agents or employees under this Agreement.
18
1 D. TIME OF PERFORMANCE:
2 1. The term of this Agreement will commence on the date upon which this
3 Agreement is executed by the County and will expire when the Period of Affordability ends
4 fifteen (15) years after the date the Project is completed and closed in IDIS, or when the loan of
5 Three Hundred Ninety Thousand Dollars ($390,000) and such other amounts, including but not
6 limited to liquidated damages, if applicable, as set forth in the Promissory Note, have been
7 repaid.
8 2. The Project as described in Section I of this Agreement will commence
9 on the day the Agreement is executed by the County and will be completed with construction
10 within twelve (12) months of the construction start date.
11 3. The following schedule shall apply to the Project:
12 a. Homebuyers secured by: October, 2017
13 b. All other funding sources secured by: October, 2017
14 C. Provide all necessary documents to execute loan
15 documents by: October, 2017
16 d. Begin Construction by: October, 2017
17 e. Record Notice of Completion by: May, 2018
18 4. The Borrower will give immediate written notification to the Director of
19 the County Department of Public Works and Planning, or his designee, of any events that
20 occur, which may affect the Project Schedule and completion date noted above, or any event
21 that may have significant impact upon the Project or affect the attainment of the Project's
22 objectives. The Project's proposed schedule is provided in Attachment D to this Agreement,
23 which is incorporated herein by reference. The Director of the County Department of Public
24 Works and Planning, or his designee, is authorized to make adjustments in the Project
25 schedule if, in the Director's or his designee's judgment, the delays are beyond the control of
26 the parties involved.
27
28
19
1 E. BREACH OF AGREEMENT:
2 In the event the Borrower fails to comply with any of the terms of this
3 Agreement, the County may, at its option, deem the Borrower's failure to be a material breach
4 of this Agreement and utilize any of the remedies set forth in 24 CFR § 85.43 or that it deems
5 appropriate. Should the County deem a breach of this Agreement to be a material breach; the
6 County will immediately be relieved of its obligations to make further loan disbursements as
7 provided herein. Termination of this Agreement due to breach will not, in any way whatsoever,
8 limit the rights of the County in seeking any other legal relief in a court of law or equity,
9 including the recovery of damages. In addition to the Agreement being terminated by the
10 County in accord with a material breach of this Agreement by the Borrower, the County in
11 accord with 24 CFR § 85.44 may also terminate this Agreement for convenience.
12 F. TERMINATION:
13 1. Non-Allocation of Funds: The terms of this Agreement, and the funds
14 provided thereunder, are contingent on the award and/or commitment of funds by HUD to the
15 County, and to the award and/or commitment of funds to the Project by the Sources of Funds
16 identified in Attachment A of this Agreement. Should HUD fail to award County funds, or
17 should the County determine in its sole discretion that sufficient funds have not been allocated
18 by other sources to complete the development of the two (2) single family residences
19 comprising the Project, the County may terminate this Agreement by giving the Borrower thirty
20 (30) days advance written notice, and the Borrower shall promptly repay to the County any and
21 all HOME loan funds previously paid, pursuant to all applicable laws and regulations.
22 2. Termination for Convenience: This Agreement may also be terminated
23 for convenience by the County or HUD in accordance to the requirements of 24 CFR § 85.44.
24 In addition, HUD has the ability to terminate this Agreement for convenience under 24 CFR §
25 85.44. In the event the County or HUD terminates this Agreement solely for convenience, the
26 Borrower promptly shall repay to the County any and all HOME loan funds, pursuant to all
27 applicable laws and regulations. However, in the event of termination, the County, at its sole
28 discretion, may negotiate with the Borrower alternate terms of repayment of HOME loan funds.
20
1 3. For Cause: The County may elect to terminate this Agreement for
2 cause as set forth in Paragraph E of this Section VII.
3 G. VENUE; GOVERNING LAW:
4 Venue for any action arising out of or relating to this Agreement shall only be
5 in Fresno County, California. The rights and obligations of the parties and all interpretation and
6 performance of this Agreement shall be governed in all respects by the laws of the State of
7 California.
8 H. INDEPENDENT CONTRACTOR:
9 In performance of the work, duties, and obligations assumed by the
10 Borrower under this Agreement, it is mutually understood and agreed that the Borrower,
11 including any and all of the partners, officers, agents and employees, will at all times be acting
12 and performing as an independent contractor, and shall act in an independent capacity and not
13 as an officer, agent, servant, employee, joint venture, partner, or associate of the County.
14 Furthermore, the County shall have no right to control, supervise or direct the manner or
15 method by which the Borrower shall perform its work and function. However, the County shall
16 retain the right to administer this Agreement so as to verify that the Borrower is performing its
17 obligations in accordance with the terms and conditions thereof. The Borrower and the County
18 shall comply with all applicable provisions of law and the rules and regulations, if any, of
19 governmental authorities having jurisdiction over matters of the subject thereof.
20 Because of its status as an independent contractor, the Borrower shall have
21 absolutely no right to employment rights and benefits available to County employees. The
22 Borrower shall be solely liable and responsible for providing to, or on behalf of, its employees
23 all legally required employee benefits. In addition, the Borrower shall be solely responsible and
24 save the County harmless from all matters relating to payment of the Borrower's employees,
25 including compliance with Social Security withholding, and all other laws and regulations
26 governing such matters. It is acknowledged that during the term of this Agreement, the
27 Borrower may be providing services to others unrelated to the County or to this Agreement.
28
21
1 I. MODIFICATION:
2 Any matters of this Agreement may be modified from time to time by the
3 written consent of the parties without, in any way, affecting the remainder.
4 J. NON-ASSIGNMENT:
5 Neither party shall assign, transfer or sub-contract this Agreement nor their
6 rights or duties under this Agreement without the written consent of the other party. Any
7 transfer or assignment without the County's prior consent shall be voidable and, at the County's
8 sole discretion, shall constitute a material breach of this Agreement. No consent to any
9 assignment shall constitute a further waiver of the provisions of this Section.
10 K. AUTHORIZATION AND NOTICES:
11 1. County Authority: The Director of the County's Department of Public
12 Works and Planning, or his duly authorized designee, at his discretion, is hereby authorized to
13 enter into and sign in the name of the County, all loan documents, security documents and
14 other related documents, and any amendments thereto, subject to the prior review and
15 approval of County Counsel and the Auditor-Controller/Treasurer-Tax Collector, as shall be
16 necessary for the purpose of developing the Project as described in Section I of this
17 Agreement. Additionally, in the County's experience, changes in circumstances frequently
18 occur that require a quick response from the County, lest the project and/or its financing fail. In
19 such cases, where the County's response is time-sensitive, the Director, or his duly authorized
20 designee, hereby is authorized, but not required, to consent to the following below-noted
21 matters in the name of the County, subject to the prior review and approval of County Counsel
22 and the Auditor-Controller/Treasurer-Tax Collector: (1) changes to Attachments to this
23 Agreement that do not alter the terms of the Agreement or substantively alter the scope of the
24 Project; (2) non-substantive changes to the scope of the Project, so long as the Director or his
25 designee determines that the Project remains eligible under the Federal HOME regulations; (3)
26 changes of funding sources from those specific other entities named in Attachment A, so long
27 as the Director or his designee determines that the Project remains eligible under the Federal
28 HOME regulations and this Agreement; (4) changes of the specific dollar amounts set forth in
22
1 Attachment A coming from other entities, or the total thereof, provided the total monies coming
2 from the County under this Agreement does not increase and further provided that the Director
3 or his designee determines that the Project remains viable, is fully funded and eligible under
4 the Federal HOME regulations and this Agreement; (5) to sign subordination documents solely
5 in order to facilitate the placement of permanent financing, and only within the first two years
6 after the Notice of Completion is recorded; and (6) to terminate the Agreement if it has been
7 determined that the Borrower is not able to acquire the funds necessary to meet the terms
8 described in the Agreement.
9 2. Borrower Authority: The Executive Director/CEO of Habitat for
10 Humanity Fresno, Inc. has authority to enter into and sign this Agreement, and the loan,
11 security and all other related documents, and any amendments thereto on behalf of the
12 Borrower, as shall be necessary for the purpose of borrowing the funds to develop the Project
13 as described in Section I of this Agreement.
14 3. The persons and their addresses having authority to give and receive
15 notices under this Agreement include the following:
16 County:
17
County of Fresno
18 Department of Public Works and Planning
Community Development Division
19 Attention: Affordable Housing Programs Manager
2220 Tulare Street, 6th Floor
20 Fresno, CA 93721
21
22 Borrower:
23
24 Habitat for Humanity Fresno, Inc.
Attention: Executive Director/CEO
25 4991 E. McKinley, Suite 123
Fresno, CA 93727
26
L. ENTIRE AGREEMENT:
27
28 This Agreement constitutes the entire Agreement to date between the
23
1 Borrower and the County with respect to the subject matter hereof and supersedes all previous
2 discussions, negotiations, proposals, commitments, writings, advertisements, publications and
3 understandings of any nature whatsoever unless expressly included in this Agreement.
4 M. EFFECTIVE DATE:
5 The effective date of this Agreement shall be the date upon which it is
6 executed by the County. The County shall place the day and month upon which it signs this
7 Agreement on Page 1 in the space provided.
8 N. DISCLOSURE OF SELF-DEALING TRANSACTIONS:
9 This provision is only applicable if the Borrower is operating as a corporation
10 (a for-profit or non-profit corporation) or if during the term of this Agreement, the Borrower
11 changes its status to operate as a corporation.
12 Members of the Borrower's Board of Directors shall disclose any self-dealing
13 transactions that they are a party to while the Borrower is providing goods or performing
14 services under this Agreement. A self-dealing transaction shall mean a transaction to which
15 the Borrower is a party and in which one or more of its directors has a material financial
16 interest. Members of the Board of Directors shall disclose any self-dealing transactions that
17 they are a party to by completing and signing a Self-Dealing Transaction Disclosure Form
18 (Exhibit 1) and submitting it to the County prior to commencing with the self-dealing transaction
19 or immediately thereafter.
20
21
22
23
24
25
26
27
28
24
1 IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth
2 above.
3 HABITAT FOR HUMANITY FRESNO, INC. COUNTY OF FRESNO
a Domestic Non-profit Corporation
4 c
5 \ �
y.
6 w rundy, Executive Director/CEO Brian Pacheco, Chairman
Board of Supervisors
7
8 Date: 1 Date: <7t_� 11 b 1n
9
ATTEST: Bernice E. Seidel, Clerk
10 Board of Supervisors
11 By:
12 By: �--
Randy kamr4drer, Board President APPROVED AS TO ACCOUNTING FORM
13 Oscar J. Garcia, CPA
Auditor-Controller/Treasurer- Tax
14 —�'
Date:
Deputy
16
17 REVIEWED AND RECOMME D APPROVED AS TO LEGAL FORM
FOR APPROVAL Daniel C. Cederborg, County Counsel
18
19 By:
By: uty
20 Steven E. White,,"'Director
Department of Public Works and
21 Planning
REMIT TO:
22
FUND NO: 0001 Habitat for Humanity Fresno, Inc.
23 SUBCLASS NO: 10000 Attention: Executive Director/CEO
ORG NO: 55122008 4991 E. McKinley, Suite 123
24 ACCOUNT NO: 7295 Fresno, CA 93727
Telephone: (559) 237-4102
25
26 sw va tc
G\7205ComDev\-Agendas-Agreements\2017\0711_HabitatRiverdaleDevelopment_AGT doc
June 5,2017
27
28
25
EXHIBIT 1
SELF-DEALING TRANSACTION DISCLOSURE FORM
In order to conduct business with the County of Fresno (hereinafter referred to as "County"),
members of a contractor's board of directors (hereinafter referred to as "County Contractor"),
must disclose any self-dealing transactions that they are a party to while providing goods,
performing services, or both for the County. A self-dealing transaction is defined below:
"A self-dealing transaction means a transaction to which the corporation is a party and in
which one or more of its directors has a material financial interest"
The definition above will be utilized for purposes of completing this disclosure form.
INSTRUCTIONS
(1) Enter board member's name, job title (if applicable), and date this disclosure is
being made.
(2) Enter the board member's company/agency name and address.
(3) Describe in detail the nature of the self-dealing transaction that is being
disclosed to the County. At a minimum, include a description of the following:
a. The name of the agency/company with which the corporation has the
transaction; and
b. The nature of the material financial interest in the Corporation's transaction that
the board member has.
(4) Describe in detail why the self-dealing transaction is appropriate based on
applicable provisions of the Corporations Code.
(5) Form must be signed by the board member that is involved in the self-dealing
transaction described in Sections (3) and (4).
(1)Company Board Member Information:
Name: Date:
Job Title:
(2)Company/Agency Name and Address:
(3) Disclosure(Please describe the nature of the self-dealing transaction you are a party to):
(4) Explain why this self-dealing transaction is consistent with the requirements of Corporations Code 5233(a):
(5)Authorized Signature
Signature: Date:
ATTACHMENT A
Sources and Uses of Funds are anticipated as follows:
1. County of Fresno (HOME Loan Funds) $390,000
2. Self-Help Enterprises (Loan) 60,000
3. Habitat for Humanity Fresno, Inc. 28,000
Total Sources $478,000
Uses of Funds:
1. Land Cost $60,000
2. Construction Cost $418,000
Total Project Cost $478,000
B-1
ATTACHMENT B
SECTION 3 REQUIREMENTS
A. The work to be performed under this contract is subject to the requirements of
Section 3 of the Housing and Urban Development Act of 1968, as amended, 12
U.S.0 170lu ("Section 3"). The purpose of Section 3 is to ensure that employment
and other economic opportunities generated by HUD assistance or HUD-assisted
projects covered by Section 3, shall to the greatest extent feasible, be directed to
low- and very low-income persons, particularly persons who are recipients of HUD
assistance for housing.
B. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part
135, which implement Section 3. As evidenced by their execution of this contract,
the parties to this contract certify that they are under no contractual or other
impediment that would prevent them from complying with part 135 regulations.
C. The Contractor agrees to send to each labor organization or representative of
workers with which the Contractor has a collective bargaining agreement or other
understanding, if any, a notice advising the labor organization or workers'
representative of the Contractor's commitments under this Section 3 clause, and will
post copies of the notice in conspicuous places at the work site where both
employees and applicants for training and employment positions can see the notice.
The notice shall describe the Section 3 preference, shall set forth minimum number
and job titles subject to hire, availability of apprenticeship and training positions, the
qualifications for each; and the name and location of the person(s) taking
applications for each of the positions, and the anticipated date the work shall begin.
D. The Contractor agrees to include this Section 3 clause in every subcontract subject
to compliance with regulations in 24 CFR part 135, and agrees to take appropriate
action, as provided in an applicable provision of the subcontract or in this Section 3
clause, upon a finding that the subcontractor is in violation of the regulations in 24
CFR part 135. The Contractor will not subcontract with any subcontractor where the
Contractor has notice or knowledge that the subcontractor has been found in
violation of the regulations in 24 CFR Part 135.
E. The Contractor will certify that any vacant employment positions, including training
positions, that are filled (1) after the Contractor is selected but before the contract is
executed, and (2) with persons other than those to whom the regulations of 24 CFR
part 135 require employment opportunities to be directed, were not filled to
circumvent the Contractor's obligations under 24 CFR part 135.
F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions,
termination of this contract for default, and debarment or suspension from future
HUD-assisted contracts.
B-2
SECTION 3 ASSURANCES
[FORM MUST BE COMPLETED AND SUBMITTED PRIOR TO AWARD]
I/We, the undersigned Name (representative), as official representative of Contractor
Name (Contractor) agree to comply with Section 3 requirements for the Subject
Property (Project). It is understood that failure to comply may result in the following
sanctions: cancellation, termination, or suspension in whole or in part of this contract. A
copy of this executed form and the charts for hires and contractors will be provided to the
County along with any back up documentation requested prior to execution of contract.
Complete for Staffing:
A. How many new full time (permanent, temporary, seasonal) positions will be needed
on this project?
B. How many new employment training positions will be created?
C. If New Hires and Employment Training will take place, how many positions are
projected to be filled by local low income area residents? (see goal
below).
If new hires or employment training are anticipated then Contractor must provide
copies of outreach efforts, any preferences given, and any actual Section 3 hires
completed. If there were no Section 3 residents hired or the goals were not met, then
an explanation of why this happened will be provided.
D. If new hires or training were made available, did Contractor reach 30% Section 3
goal/target?
See attached chart with list of all New Hires /Transfers for this Project
Complete for construction subcontractors and non-construction contracts:
A. How many construction subcontractors will be utilized for this project?
B. Of these subcontractors, how many are Section 3 subcontractors?
1) Was the Section 3 Goal/target of 10% of project dollar amount reached?
C. How many non-construction contracts will be utilized?
D. Of these, how many are Section 3 businesses?
1) Was the Section 3 Goal/target of 3% of project dollar amount reached?
See attached chart with list of all Contractors hired for this Project
Authorized Signature Date:
B-3
Section 3 Resident Eligibility Certification
The U.S. Department of Housing and Urban Development (HUD) monitors our hiring
practices on Section 3-funded projects. It is important, therefore that the information below
be provided. Please be aware that your response, though needed, is voluntary and has
no effect on your employment status.
Because these questions are personal in nature, your answers will be treated with
confidentiality. Thank you for assisting us.
Sincerely,
Fresno County Community Development Division
1. Name:
Address:
2. Number of individuals living in your household (include yourself):
3. Total annual household income (please CIRCLE one):
Household 30% 50% 60% 65% 80% 100% 120%
Size
1 $ 12,400 $ 20,650 $ 24,780 $ 26,810 $33,000 $41,250 $ 49,500
2 $ 14,150 $ 23,600 $ 28,320 $ 30,630 $37,700 $47,120 $ 56,550
3 $ 15,900 $ 26,550 $ 31,680 $ 34,450 $42,400 $53,000 $ 63,600
4 $ 17,650 $ 29,450 $ 35,340 $ 38,260 $47,100 $58,870 $ 70,650
5 $ 19,100 $ 31,850 $ 38,220 $ 41,350 $50,900 $63,620 $ 76,350
6 $ 20,500 $ 34,200 $ 41,040 $ 44,400 $54,650 $68,310 $ 81 ,970
7 $ 21 ,900 $ 36,550 $ 43,860 $ 47,490 $58,450 $73,060 $ 87,670
8 $ 23,300 $ 38,900 $ 46,680 $ 50,530 $62,200 $77,750 $ 93,300
4. Are you currently employed? Yes No
I certify that the statements made on this sheet are true, complete and correct to be best of
my knowledge and belief, and made in good faith.
Signature Date:
B-4
Section 3 Business Eligibility Certification
The U.S. Department of Housing and Urban Development (HUD) monitors our hiring
practices on Section 3-covered projects. It is important, therefore that the information
below be provided. Please be aware that your response, though needed, is voluntary and
has no effect on your contracting.
Your answers will be treated with confidentiality. Thank you for assisting us.
Sincerely,
Fresno County Community Development Division
Business Name:
Address:
1. Are 51% of the business owners qualified Section 3 Residents?
If YES stop, if NO proceed.
2. Are at least 30% of the employees Section 3 Residents (or were they when they
started less three years ago)?
If YES then stop, if NO then proceed.
3. Will the business subcontract more than 25% of the proposed work under the contract
to business concerns that meet the qualification set forth in number 1 & 2 above?
If YES stop, if NO proceed.
We currently do not qualify as a Section 3 business
I certify that the statements made on this sheet are true, complete and correct to be best of
my knowledge and belief, and made in good faith.
Signature Date:
B-5
SECTION 3 Project Work Force Breakdown
Number
of
Total No. Positions Number of Positions
Job Occupied by filled
Category Positions Needed Permanent Positions not With
for Project Employees Occupied Section
3
residents
Supervisor
Professional
Technical
Office/Cleric.
Others
TRADE:
Journeyman
Apprentices
Trainees
Others
TRADE:
Journeyman
Apprentices
Trainees
Others
*Section 3 Resident:
Individual residing within the Section 3 Area Whose family income Company
does not exceed 80% of the median income in the Metropolitan
Statistical Area or the county if not within a MSA in which the Section
3 covered project is located. See attached income schedule. Project
Project Number
NOTE: This document must be submitted with bid documents.
Person Completing Form: Date:
B-6
SECTION 3 Contracts / Subcontracts Breakdown
Type of Contract Estimated No. of Estimated Dollar
(Business or Total Total Approx. Contracts to Amount to Sec. 3
Profession Number Dollar Amount Section 3 Businesses Businesses
NOTE: This document is to be submitted by the Contractor with
bid documents
Company
Project
Project Number
Person Completing Form: Date:
B-7
SECTION 3 BUSINESS UTILIZATION REPORT
Project No. : Total Dollar Amount of Contract: $
Federal ID No. : Address:
Name of Prime Contractor:
Trade/Service Contract Competitive or Federal
ation
Name of Subcontractor l,/N Sec 3 o.Address/Telephone or Supply Amount Award Date Negotiated Bid N Identification
Total Dollar Amount Awarded to Section 3 Businesses: Company
NOTE: This report must be completed and submitted by the Project
Contractor(monthly)with each payment request.
Project Number
Date Person Completing Form
B-8
ATTACHMENT C
Project Disbursement Schedule
Maximum
Draw Percentage of Funds Date of Amount Amount
No. Disbursement Remaining
Disbursed
1. Deposit at escrow N/A $0 $390,000
2. First construction draw By October 2017 $75,000 $315,000
3. Second construction draw By November $75,000 $240,000
2017
4. Third construction draw By January 2018 $75,000 $165,000
5. Fourth construction draw By March 2018 $75,000 $90,000
6. Final construction draw By May 2018 $90,000 $0
Total Amounts $390,000 $0
ATTACHMENT D
PROJECT TIMELINE
ACTION PROPOSED DATE
Site Control August 2017
All city Planning Approvals October 2017
Developer Application to County July 2017
Final loan docs to County September 2017
Building Permits October 2017
Purchase/Construction Loan Closing May 2018
Construction Start October 2017
Market Units July 2017
Construction Complete May 2018
Sale of Houses Complete August 2018
Permanent Loan Closing August 2018
G:\7205ComDev\-Agendas-Agreements\2017\0711_HabitatRiverdaleDevelopment_AGT.doc