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HomeMy WebLinkAboutAgreement A-23-107 No Relocation Certificate and Indemnification Agreement.pdf Agreement No. 23-107 Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement Crossroads Village Certification Regarding Non-Application of Relocation Benefits This document is used by the Sponsor(s) of a housing project to show and certify that no relocation plan was necessary for the project. The certification is regarding a certain project known as Crossroads Village on real property located at 3737 N. Blackstone Avenue, Fresno, CA 93726, and described in Exhibit A attached hereto (the "Project"). This Certification is made by UP Holdings, LLC, an Illinois limited liability company, dba UP Holdings California, LLC (the "UP Holdings"), Housing on Merit, a California nonprofit public benefit corporation (the "Housing on Merit), and County of Fresno, a California county (the "County" collectively with UP Holdings and Housing on Merit, the "Sponsor"), for the benefit of the Department of Housing and Community Development, a public agency of the State of California, its successors and assigns (the "Department"), and is dated as of February 17, 2023, for reference purposes. UP Holdings and Housing on Merit, through its organizational structure, controls Crossroad Village Fresno, L.P., a California limited partnership (the "Borrower"), which owns the aforementioned Project. In conducting its due diligence, the Department requested that the Sponsor provide any and all information relating to potential project relocation issues, under applicable relocation law, as defined herein. In response, Sponsor provided the Department the following information and documents supporting its position that a relocation plan is not required pursuant to relocation law. The documents listed below are incorporated by reference as Exhibit B: 1. Relocation Plan for Crossroad Village dated September 2022, prepared by AutoTemp. Crossroads Village is a 141-unit acquisition/rehabilitation project consisting of current interim housing units being converted into permanent housing units with 53 studio, 42 one- bedroom, 38 two-bedroom, and 8 three-bedroom units serving households with incomes ranging from 15-30 percent of Area Median Income (AMI). Each unit will have air conditioning, refrigerator, dishwasher, balcony, patio, and curtains/blinds. On-site amenities include laundry room, community room, community kitchen, computer room, high speed internet, and pool. Off-site amenities, located within two miles of the project include parks, employment, schools, shopping, transportation, public library, and health care services. Page 1 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing The Sponsor was awarded $20,000,000.00 No Place Like Home (NPLH) Program funds and $10,430,000.00 Housing for a Healthy California (HHC) program funds. The Sponsor was also awarded up to $38,338,375.00 in California Housing Accelerator (Accelerator) Tier 2 funds. All Department funding, including but not limited to those funds that are described above and any and all other HCD funding (loans or grants) that may not have been awarded or identified at the time of the execution of this document is collectively referred to as "Department Funding." The Sponsor fully warrants and represents, as detailed here, that the Project is not subject to Relocation Law as described below. Sponsor acknowledges the following: Relocation as a body of law is detailed under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 ("Federal Relocation Law"); California Government Code 7260 et seq, and the Relocation Regulations (Title 25 of the California Code of Regulations Section 6000 et seq) ("State Relocation Law"). Collectively "Federal Relocation Law" and "State Relocation Law" are referred to hereinafter as "Relocation Law". Sponsor acknowledges that Federal and State Relocation Assistance laws provide uniform, fair and equitable treatment for persons whose real property is acquired or who are displaced as a result of government or government-assisted programs or projects. Tenant occupants who are displaced as a result of the acquisition may be eligible for all applicable relocation benefits. A tenant-occupant who moves as a result of a voluntary acquisition for a government-assisted project may be eligible for relocation assistance as a displaced person. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable Relocation Law. Representations The Sponsor has represented to the Department the following: (a) previous relocation plan for Crossroad Village dated January 2021, prepared by AutoTemp, was accepted as "phase 1" of the Project which was awarded $15,329,402.00 in Department Homekey program funds; (b) The Sponsor will use the Property to temporarily house homeless individuals as interim housing with the goal of ultimately converting the building to permanent housing for very low-income persons; (c) The interim housing occupants at the project signed or will sign an Acknowledgment of Ineligibility prior to entering into an agreement to be become a tenant (Exhibit A of the Relocation Plan for Crossroad Village dated September 2022, prepared by AutoTemp). These Acknowledgements of Ineligibility provide notice that housing at Crossroads is not considered permanent housing and that interim housing tenants are not entitled to relocation benefits. The Sponsor fully warrants and represents, and the Department relies upon Sponsor's representation as detailed herein, that the Project is not subject to Relocation Law. This Page 2 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing Certification Regarding Non-Application of Relocation Benefits and Indemnification Agreement encumbers all Department Funding. Certification Sponsor certifies that the interim housing occupants at the Project signed, or will sign, an Acknowledgment of Ineligibility prior to entering into an agreement to be become a tenant for temporary housing as the Project will be converted to permanent housing for very low- income persons. The tenants have been provided with information as to their eligibility for relocation benefits and knowingly waived their rights to relocation. Sponsor certifies that besides the tenants that signed the Acknowledgements of Ineligibility notices, no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not intentionally vacated for the Project to circumvent Relocation Law. Sponsor certifies that pursuant to State relocation laws described in Chapter 16 of the California Government Code, commencing with Sections 7260, the Development is an existing property and that no displacement of tenants who are eligible for relocation benefits will occur as a result of the rehabilitation activity for a program or project undertaken by a public entity, which at minimum means: 1) No person has or will be caused to move from the real property, as a direct result of any rehabilitation, for a program or project undertaken by a public entity or by any person having an agreement with, or acting on behalf of, a public entity; 2) No person has or will be caused to move his or her personal property from the real property connected to the Development; 3) No person has or will be caused to move from the real property as a direct result of any rehabilitation, on which the person conducts a business or farm operation for a program or project undertaken by a public entity; 4) There is no displacement of any residential tenants in a hotel unit as defined by Section 50669 (b) of the Health and Safety Code or any occupant of employee housing as defined in Section 17008 of the Health and Safety Code; and 5) No people, no businesses and no farms are forced to move because of a government funded acquisition, demolition or rehabilitation project. Page 3 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing For the purposes of this Certification, the following definitions apply: a) "Public entity' includes the state, the Regents of the University of California, a county, city, city and county, district, public authority, public agency, and any other political subdivision or public corporation in the state or any entity acting on behalf of these agencies when acquiring real property, or any interest therein, in any city or county for public use, and any person who has the authority to acquire property by eminent domain under state law. (b) "Person" means any individual, partnership, corporation, limited liability company, or association. (c) "Business"means any lawful activity, except a farm operation, conducted for any of the following: (1) Primarily for the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; (2) Primarily for the sale of services to the public; (3) Primarily by a nonprofit organization; (4) Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display, whether or not the display is located on the premises on which any of the above activities are conducted. (d) "Farm operation"means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. The undersigned, the Sponsor, do hereby certify as follows: 1. The foregoing is true and correct; 2. The Sponsor is duly authorized to execute, in its name, all documents and certifications required by the Department in order for it to carry out any rehabilitation of the Development and Sponsor will comply with relocation law requirements; Page 4 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing 3. That the Department would not approve the rehabilitation of the Development without this certification; and 4. It is understood that if relocation benefits are found to be applicable then the Sponsor shall prepare a relocation plan and shall be solely responsible for providing the assistance and benefits as required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (California Government Code 7260 et seq), and the Relocation Guidelines (Title 25 of the California Code of Regulations Section 6000 et seq); and Sponsor shall indemnify and hold harmless the Department from any liabilities or claims for relocation-related costs; (see below Indemnity Agreement.). Sponsor certifies no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not vacated for the Department's Project. Sponsor certifies that as a result of construction of the Project, no housing, business nor farm will be affected, no personal property was required to be moved, and no households that are eligible for relocation benefits will have to be displaced without just compensation. [Remainder of the page left blank. Signatures follows on the next page of this Certification.] Page 5 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. SPONSOR: UP Holdings, LLC, an Illinois limited liability company, dba 110 Holdings Ca 'arnia, LLC By: I Date: Cullen Davis Manager AND Housing on Merit, a California nonprofit public benefit corporation By: Date: Jennifer Litwak Executive Director AND County of Fresno, a California county By: _ Date: _ 3 -a-3 al Qui ro Chair n, Board of Supervisors [Remainder of the page left blank. Indemnification Agreement follows on the next page of this Certification.] ATTEST: BERNICE E.SEIDEL Clerk of the Board of Supervisors County of Fresno;State of California By Deputy Page 6 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project:Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. SPONSOR: UP Holdings, LLC, an Illinois limited liability company, dba UP Holdings California, LLC By: Date: Cullen Davis Manager AND Housing on Merit, a California nonprofit public benefit corporation By: 4A4Date: 2/17/2023 Je nif r Litwak Executive Director AND County of Fresno, a California county By: Date: Sal Quintero Chairman, Board of Supervisors [Remainder of the page left blank. Indemnification Agreement follows on the next page of this Certification.] Page 6 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing Indemnification Agreement The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from the Sponsor that permanent or temporary relocation was not necessary under Relocation Law. As part of the construction of the Project, Sponsor agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees, committees, successors and assignees from any and all claims, liabilities, damages, losses, attorney fees, expenses, costs, actions, or proceedings threatened, asserted, or brought against any of the foregoing individuals or entities related to or arising from Relocation Law with respect to the Project. This indemnification shall include, but not be limited to, all damages, liabilities, claims, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Sponsor, except loss or liability suffered by the Department caused solely by the Department's sole negligence or willful misconduct. If, for any reason any portion of this Indemnification Agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect. The obligations of the Sponsor under this Indemnification Agreement shall be absolute and unconditional and shall survive the construction of the Project and all Department funding. NOTE: The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from Sponsor that no relocation plan was necessary. [Remainder of the page left blank. Signatures follows on the next page of this Indemnification Agreement.] Page 7 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 ( Type of Construction: Rehabilitation of Interim Housing E t SPONSOR: UP Holdings, LLC, an Illinois limited liability company, dba UP Holdings California, LLC By: Date: 62 Cullen Davis Manager AND Housing on Merit, a California nonprofit public benefit corporation By: Date: Jennifer Litwak Executive Director AND County of Fresno, a California county By: _ Date: SDI in ro hairman, Board of Supervisors ATTEST: BERNICE E.SEIDEL Clerk of the Board of Supervisors County of Fresno,State of California By_ �� l F'i�— Deputy i Page 8 of 10 Template Date: October 18, 2022 Date: February 17,2023 Project:Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing SPONSOR: UP Holdings, LLC, an Illinois limited liability company, dba UP Holdings California, LLC By: Date: Cullen Davis Manager AND Housing on Merit, a California nonprofit public benefit corporation By: Date: 2/17/2023 Je ni r Litwak Executive Director AND County of Fresno, a California county By: Date: Sal Quintero Chairman, Board of Supervisors Page 8 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing Exhibit A Legal Description of the Property The land referred to is situated in the County of Fresno, City of Fresno, State of California, and is described as follows: Parcel A of Lot Line Adjustment No. 2018-08, recorded May 9, 2018, as Document No. 2018-0054790 of Official Records of Fresno County, and more particularly described as follows: The North one-half of the Northeast quarter of the Southeast quarter of Section 21, Township 13 South, Range 20 East, Mount Diablo Base and Meridian, in the City of Fresno, County of Fresno State of California, according to the official Plat thereof. Excepting therefrom the East 55 feet thereof, Also excepting therefrom the North 183.41 feet of the East 397.00 of the North one-half of the Northeast quarter of the Southeast quarter of said Section 21. Also excepting therefrom the South 63.00 feet of the North 246.41 feet of the East 325.00 feet of the North one-half of the Northeast quarter of the Southeast quarter of said Section 21. Also excepting therefrom any portion lying within the West 20 acres of the East three quarters of the North one-half of the North one-half of the Southeast quarter of the said Section 21. Also excepting therefrom the South 205 feet of the East 230 feet thereof. Together with Easterly 30.00 feet of the West 20 acres of the East three quarters of the North one half of the North one half of the Southeast quarter of Section 21 , Township 13 South, Range 20 East, Mount Diablo Base and Meridian. APN: 435-020-09 and 435-020-12 Page 9 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing Exhibit B Consists of the following documents: 1. Relocation Plan for Crossroad Village dated September 2022, prepared by AutoTemp. Page 10 of 10 Template Date: October 18, 2022 Date: February 17, 2023 Project: Crossroads Village, 3737 N. Blackstone Avenue, Fresno, CA 93726 HCD Program Awards: 20-NPLH-16215, 21-HHC-00001, and 22-ACC-17427 Type of Construction: Rehabilitation of Interim Housing