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HomeMy WebLinkAboutC33390 - Res 2017-17 Home Funding Consortium CITY OF PALM DESERT STAFF REPORT REQUEST: ADOPT RESOLUTION NO. 2014-1L AUTHORIZING THE CITY OF PALM DESERT'S PARTICIPATION WITH THE COUNTY OF RIVERSIDE IN A HOME FUNDING CONSORTIUM AND APPROVING THE HOME CONSORTIUM AGREEMENT BETWEEN THE CITY AND THE COUNTY SUBMITTED BY: Janet Moore, Director of Housing DATE: March 13, 2014 CONTENTS: Resolution No 2014- 17 Draft Agreement Certificate of Interest Letter from the County Requesting Participation Recommendation: That the City Council, 1. Waive further reading and adopt Resolution No. 2014-�, authorizing the City's participation with the County of Riverside in a HOME Consortium and approving the HOME Consortium agreement, substantially as to form; 2. Authorize the City Manager and City Attorney to finalize the agreement, and the Mayor to execute the HOME Consortium Agreement. Executive Summary The HOME Investment Partnership Program, created under the Cranston-Gonzalez National Affordable Housing Act, was created to increase the supply of affordable housing units to low and very low income households. While Palm Desert does not meet the threshold to apply directly for HOME funding, the City may participate in a HOME consortium with other cities and the County in order to pursue funding so that the funds remain in the County. If successful, the County of Riverside would receive the participating cities share of HOME funding to be used for eligible projects within Riverside County on a first come first served basis. Discussion The City of Palm Desert's allocation for HOME funds is approximately $127,000 and on its own is not eligible to receive HOME funds directly as it does not meet the threshold of $750,000. Within the County of Riverside there are several jurisdictions that do not qualify for direct funding and have expressed an interest to the County to participate in a HOME Consortium in order to meet the minimum application threshold so that their HOME funding allocation can stay within the County. The County of Riverside would apply as the lead agency, receive the funds, allocate the funds to HOME eligible projects on a first come first served basis within Riverside County and complete all the reporting requirements. The funds can be used for any of the County's HOME fund eligible programs, including their first time homebuyer program. Staff Report HOME Consortium March 13, 2014 Page 2 of 2 If the consortium is not created, the funding allocated to the cities wishing to participate will revert to the State and then be made available to non-cooperating cities and non-consortium members on a competitive basis. If the City agrees to participate in the consortium we understand that the City relinquishes its ability to apply directly to the State for HOME funds during the County's three year Consolidated Plan cycle. The benefit of participating is that approximately $900,000 stays in the County. Therefore, staff recommends that the City Council adopt Resolution No. 2014-�L authorizing the City's participation with the County of Riverside in a HOME Consortium and approving the HOME Consortium agreement, substantially as to form, to allow the County to apply for HOME funding as a consortium and to utilize the funds within Riverside County on a first come first served basis. Fiscal Analysis There is no fiscal impact of this request since the County is the administrator of the consortium once it is formed. Submitted by: CiTY COUNCIL�CTION PPROVED DFNiF.D Jan Moore, D' e or of Housing RECEIVED OTHER � l�aS _�UI�/- i7 Reviewed: �3 - i,�-,2U1 MEETING DATE �., �G AYES:��J.i�41s(.'Yl,I--EQrni . �1��'c�l, � , �lTc.7f7rk'f �� � NOES: ��� Paul S. G b on Director of Finance BSENT: ��'��- ABSTAIN: u�1 " roval: VF,RIFIF,D BY: �� . Original on File with City Icrk's Oftice J n M. Wohlmuth, City Manager 1 � G:\HOUSING\PROGR.4MS\HOME Consortium w-County of Riverside\SR HOME Consortium agmt approval 3-13-14.docx RESOLUTION NO. 2014-�_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE PARTICIPATION IN A HOME CONSORTIUM WITH THE COUNTY OF RIVERSIDE AND NEIGHBORING CITIES AND AUTHORIZING THE EXECUTION OF A COOPERATION AGREEMENT FOR THE HOME CONSORTIUM RECITALS: A. WHEREAS, there has been enacted into law the Cranston-Gonzalez National Affordable Housing Act, as amended (42 U.S.C. 12701 et seq.) and Federal Regulations have been adopted pursuant thereto ("AcY'); B. WHEREAS, Title II of the Act creates the HOME Investment Partnership Program ("HOME"), the primary objective of which is to increase the supply of decent and affordable housing to low and very low-income households; C. WHEREAS, HOME allows for contiguous units of local government to form a consortium for the purpose of receiving and administering HOME funds, and carrying out purposes of the act; D. WHEREAS, the City Council desires that the City of Palm Desert partner with the County of Riverside and other neighboring cities to form a consortium as described in the Cooperation Agreement for HOME Consortium attached hereto as Exhibit "A" and incorporated herein by this reference. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. That the City Council authorize the City of Palm Desert to participate in the HOME Consortium with the County of Riverside and other neighboring cities. Section 3. That the City Council approves the Cooperation Agreement for the HOME Consortium attached hereto as Exhibit "A" and incorporated herein by this reference, and authorizes the City Manager, or his designee, to execute said agreement and to take all related actions which he deems necessary and advisable to implement said agreement. PASSED APPROVED AND ADOPTED this 13th day of March, 2014. AYES: NOES: ABSENT: ABSTAIN: VAN G. TANNER, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK Contract No. C33390 County of Riverside Economic Development Agency HOME Investment Partnership Program Cooperation Agreement for HOME Consortium This Cooperation Agreement for HOME Consortium ("Agreement") is made by and between the City of Lake Elsinore, City of Hemet, City of Indio, City of Temecula, City of Palm Springs and City of Palm Desert (individually referred to herein as a "CITY" and collectively referred to as the "CITIES"), and the County of Riverside, a political subdivision of the State of California("COiJNTY"), on , 2014. CITIES and COUNTY are individually referred to herein as a "Party" and collectively as the "Parties." RECITALS WHEREAS, there has been enacted into law the Cranston-Gonzalez National Affordable Housing Act, as amended(42 U.S.C. 12701 et seq.) and Federal Regulations have been adopted pursuant thereto, (collectively the "ACT"); and, WHEREAS, Title II of the ACT creates the HOME Investment Partnership Program ("HOME Program"), the primary objective of which is to increase the supply of decent and . affordable housing to low-and very low-income households; and WHEREAS, funds from Title II of the ACT are distributed to metropolitan cities, urban counties, states and consortia of local governments; and WHEREAS, the HOME Program allows contiguous units of local government to form a consortia for the purpose of receiving and administering HOME Program funds, and carrying out purposes of the ACT; and WHEREAS, the ACT requires that a consortium shall have one member unit of general local government authorized to act as the lead agency in a representative capacity for all - 1 - 72500.00001\8630524.1 members for the purposes of the ACT and to assume overall responsibility for ensuring that the consortium's HOME Program is carried out in compliance with the ACT, including requirements concerning all housing components of the COUNTIES' Consolidated Plan; and WHEREAS, the CITIES and the COUNTY desire to create a consortium, wherein the COLINTY shall serve as the lead agency and the CITIES shall serve as the consortium members along with the County, as more specifically set forth in the Agreement below. NOW THEREFORE, the Parties mutually agree as follows: 1. The purpose of this Agreement is to form a HOME Program consortium (the "CONSORTIUM"), between the cities of Lake Elsinor�, Hemet, Indio, Temecula, Palm Springs and Palm Desert and the County of Riverside. The Parties agree to cooperate to undertake or to assist in undertaking HOME Program-eligible housing activities pursuant to Title II of the ACT. 2. The COUNTY is hereby designated as the lead agency to administer and implement the HOME Program and is authorized to act in a representative capacity for all CITIES for the purposes of the HOME Program and to apply under the CONSORTIUM and receive federal funding under the HOME Program on behalf of the Consortium. The COUNTY will be the "Participating Jurisdiction" in the HOME Program and, as such, will be the sole point of contact with the U.S. Department of Housing and Urban Development ("HUD") on issues concerning the HOME Program. The COUNTY will be responsible for any reporting requirements relative to the HOME Program and will assume the overall responsibility to ensure that the CONSORTIUM'S HOME Program is carried out in compliance will all federal requirements of the HOME Program, including the requirements of 24 CFR parts 91 and 92, and the Consolidated Plan. 3. The CITIES hereby authorize the COiJNTY to establish a local HOME Investment Trust Fund for receipt of HOME Program funds and repayments as required by 24 CFR Part 92.503. 4. CITIES agree that COUNTY is hereby delegated the authority to carry out activities which will be funded under annual HOME Program appropriations from Federal Fiscal Years 15, 16 and 17, and from any program income generated from the expenditure of such funds within their jurisdiction in accordance with HOME Program regulations. 5. COLTNTY, as lead entity shall act in a representative capacity for all CITIES, and shall assume overall administrative responsibility for ensuring that the HOME Program is carried out in compliance with HOME Program regulations. COiJNTY responsibilities shall include, but not be limited to: - 2 - 72500.00001\8630524.1 a. Coordinate and submit to HUD the HOME Program application for all documents necessary to qualify as a Consortium and to receive HOME Program funding to carry out the purposes of this Agreement. b. Coordinate and submit to HUD the housing component of the Consolidated Plan. c. Compliance with all HOME Program regulations, including but not limited to, Community Housing and Development Organization (CHDO's) (as defined in the ACT) set aside, securing match and all monitoring requirements. Proposed CHDO's must be approved by the County. 6. The CITIES shall cooperate in the implementation and monitoring of the HOME Program. The COLTNTY shall assume the responsibility to monitor all HOME activities to assure compliance with all HOME Program requirements during both project implementation and any affordability period. 7. To carry out activities under this Agreement, COLTNTY shall allocate HOME Program funds received under the ACT to those HOME Program activities described in the Consolidated Plan. COUNTY shall fund HOME Program-eligible projects within CITIES boundaries on a first come first serve basis. 8. Subject to the administrative requirements of the HOME Program, the COLTNTY may utilize some HOME Program funds for administrative costs to the extent allowable by HUD. 9. This Agreement will be signed in counterparts and shall go into effect immediately upon execution of all signatories to the Agreement. CITIES and COLTNTY are required to participate in the Consortium for three (3) federal fiscal years 2015, 2016 and 2017. No Consortium member may withdraw from the Agreement in the middle of each three (3) year term. 10. With reference to any program income and repayment generated from HOME Program funds, federal regulations shall govern placement of program income generated from HOME Program funds and repayments into the local trust fund. HOME Program income and repayments on projects shall only be available for use on activities that are consistent with the Act, approved Consolidated Plan, and must be approved by the COiJNTY. 11. The CITIES and COiJNTY, as members of the CONSORTIUM, shall direct all activities with respect to the CONSORTIUM, to the alleviation of housing problems in Riverside County. 12. The CITIES agree to remain in the Consortium during the three federal fiscal years for which the Consortium qualifies to receive HOME Program funds, 2015, 2016 and 2017. Thereafter, each CITY shall continue to participate in the Consortium to the extent required by HUD regulations or other applicable laws or until all HOME Program allocations are - 3 - 72500.00001\8630524.1 expended. The obligations of each of the CITIES shall remain in effect until all HOME Program allocations received by the Consortium are expended or such longer period as may be agreed to by the parties. 13. This Agreement will be automatically renewed for participation in successive three-year qualification periods, unless one of the CITIES or COUNTY provides 90 days prior written notice to the other party that it elects not to participate in the next three-year HOME Program Consortium period. Notice shall be provided no later than March 1 st of the last year of the successive three-year period. CITIES shall adopt any amendment to this Agreement necessary to incorporate changes to meet HUD requirements for consortium agreements in subsequent three year qualification periods. 14. All Consortium members will operate on the same program year for CDBG, HOME, ESG and HOPWA, which shall be July 1 through June 30. 15. By executing this Agreement CITIES understand that it may not apply for HOME Program funds through the California Department of Housing and Community Development (HCD), for fiscal years during which it participates in the HOME Program Consortium. 16. This Agreement authorizes the COUNTY as the lead entity to amend the Agreement on behalf of the entire Consortium to add new members to the Consortium. Any other amendments to this Agreement will be made in writing and approved by all Parties. 17. COLTNTY shall indemnify and hold harmless the other CITIES and their respective directors, officers, elected and appointed officials, employees, agents and representatives (individually and collectively hereinafter referred to as Indemnitees) from (1) any liability whatsoever, based or asserted upon COUNTY acts, errors, or omissions, and for any costs or expenses incurred by another CITY on account of any claim therefore, except where such indemnifications is prohibited by law, (2) any acts of such COLTNTY, its officers, employees, subcontractors, agents or representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, or death or any other element of any kind or nature whatsoever arising from the performance of indemnifying COUNTY, its officers, employees, subcontractors, agents ar representatives from this Agreement. COLTNTY shall defend, at its sole expense, all costs and fees including, but not limited, to attorney fees, cost of investigation, defense and settlements or awards, the Indemnitees in any claim or action based upon such alleged acts or omissions. Each Party shall promptly notify the other Party in writing of the occurrence of any such claims, actions, losses, damages and/or liability. Each CITY shall indemnify and hold harmless the other CITIES, the COUNTY and their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents and representatives (individually and collectively hereinafter referred to as Indemnitees) from (1) any liability whatsoever, based or asserted upon an indemnifying CITY'S acts errors, or omissions, and for any costs or expenses incurred by another CITY and/or the COLTNTY on account of any claim therefore, except where such indemnifications is prohibited by law, (2) any acts of such indemnifying CITY, its officers, employees, subcontractors, agents or - 4 - 72500.00001\8630524.1 representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, or death or any other element of any kind or nature whatsoever arising from the performance of indemnifying CITY, its officers, employees, subcontractors, agents or representatives from this Agreement. Each indemnifying CITY shall defend, at its sole expense, all costs and fees including, but not limited, to attorney fees, cost of investigation, defense and settlements or awards, the Indemnitees in any claim or action based upon such alleged acts or omissions. Each Party shall promptly notify the other Party in writing of the occurrence of any such claims, actions, losses, damages and/or liability. With respect to any action or claim subject to indemnification herein by COUNTY, such CITIES shall, at their sole cost, have the right to use counsel of their own choice and shall have the right to adjust, settle, or compromise any such action ar claim without the prior consent of the other CITIES or COLTNTY. 18. By executing this Agreement, the Parties hereby certify that they will adhere to and comply with all federal, state and local laws, regulations and ordinances. 19. All members of the CONSORTIUM shall affirmatively further fair housing within their respective jurisdictions and any member of the CONSORTIUM that does not affirmatively further fair housing within its own jurisdiction shall be prohibited from receiving HOME Program funds. 20. Any waiver by the COLTNTY of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term of this Agreement. Failure on the part of the COiJNTY to require exact, full and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms or preventing COLTNTY from enforcement of the terms of this Agreement. 21. It is expressly agreed that this Agreement embodies the entire Agreement of the Parties in relation to the subject matter hereof, and that no other Agreement or understanding, verbal or otherwise, relative to this subject matter, exists between the Parties at the time of execution. 22. Each paragraph and provision of this Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. 23. The Parties will not make any sale, assignment, conveyance or lease of any trust or power or transfer in any other form with respect to this Agreement, without prior written approval of the other Party. 24. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. Any legal action related to the performance or interpretation of this Agreement shall be filed only in the Superior Court of the - 5 - 72500.00001\8630524.1 State of California located in Riverside, California, and the Parties waive any provision of law providing for a change of venue to another location. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objective and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement, all parties have been represented by Counsel in the negotiation and preparation hereof. 25. This Agreement is subject to HUD approval and the CONSORTIUM's receipt of HOME Program funds. COUNTY COUNSEL STATEMENT: The terms and provisions of this Agreement are fully authorized under state and local law. This Agreement provides full legal authority for the Consortium to undertake or assist in undertaking housing assistance activities for the HOME Program. Pamela J. Walls County Counsel Date: Jhaila Brown, Deputy County Counsel [REMAINDER OF PAGE BLANK] [SIGNATURES ON FOLLOWING PAGE] - 6 - 72500.00001\8630524.1 County of Riverside Economic Development Agency HOME Investment Partnership Program Cooperation Agreement for HOME Consortium SIGNATURE PAGE This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed below. CITY OF Date: (Title, Name) Attest: Date: (City Clerk,Name) Approved as to Form: Date: (City Attorney, Name) - 7 - 72500.00001\8630524.1 County of Riverside Economic Development Agency HOME Investment Partnership Program Cooperation Agreement for HOME Consortium SIGNATURE PAGE This Agreement may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts must be construed together to constitute one (1) instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed below. COiJNTY OF RIVERSIDE Date: Assistant Director, Economic Development Agency Attest: Keisha Harper-Ihem, Clerk of the Board Approved as to Form: Pamela J. Walls County Counsel Jhaila Brown, Deputy County Counsel - 8 - 72500.00001\8630524.1 County of Riverside HOME Consortium Certificate of interest The City of Paim Desert does hereby state an interest in forming a HOME Consortium with the County of Riverside, beginning in Fiscal Year 2015. Execution of this Certificate of Interest in no way binds or commits the City to p�rticipate in the County HOME Consortiurri. �his Certificate of Interest is intended to satisfy the requirements necessary to notify the Housing and Urban Development of the County's intent to form a HOME Consortium Approved By: John M. Wohlmuth Print Name Ci Mana�er Titlr _ ,,-- ; . �� ,�) � c:� �___i ; L, .�...�_._�___,_ �-� ,� � � , S gnature Date � `�'� Please return the executed Certificate of Interest no later than February 13, 2014, to: County of Riverside Economic Development Agency/Housing Authority Attn:Stephanie Adams 5555 Arlington Avenue Riverside, CA 92504 An e-mail followed by a hard copy is acceptable: e-mail:sjadams�rivcoeda.org COUNTY OF RIVERSIDE ECONOMIC DfVEIOPMENT AGENCY City of Palm Desert Attention: Janet Moore E-mail:JMoore@cityofpalmdesert.org Re: County of Riverside HOME Consortium Dear Ms. Moore; The County of Riverside recently contacted the City of Palm Desert regarding forming a HOME Consortium. Since the City has expressed an interest in joining the HOME Consortium,the County would like to formally request that you sign the attached Certification of Interest Form on or before February 13, 2014. In order for the County to move forward with the Consortium we must notify the Department of Housing and Urban Development of our intent to form the Consortium by March 01, 2014. The execution of the Certificate of Interest Form notifies the County that the City of Palm Desert is moving forward with the approval of the Resolution and execution of the Consortium Agreement. The County understands that the City's commitment is not final until the Resolution is approved by the governing Council. Also, attached is a blanket Resolution and the Consortium Agreement. The resolution must be approved by the City's governing Council, authorizing the designee to sign the Consortium Agreement. If your Council will be executing the agreement, please have three originals executed, one for your records,the County of Riverside and the Department of Housing and Urban Development. Please return two originals of the executed Consortium Agreement along with a copy of the Resolution and Minutes approving the Resolution on or before April 15, 2014. Please note that the Resolution will need to be filled in authorizing the designee to execute the Consortium Agreement. If you should have any questions or need any assistance, I can be reached at(951)343-5455 or sjadams@rivcoeda.or� Sincerely, � Stephanie Adams Housing Specialist I11 . . � . . . � . �. . �, �". ,,� t ,,�,�. � � � i �• � ♦ • •'�. • • •� f � � ..k,