HomeMy WebLinkAboutSR - R24910 - PD HOME IMPRVMNT PRGMContract No. R24910
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: AUTHORIZATION TO ENTER INTO A PROFESSIONAL
SERVICES AGREEMENT WITH RANCHO HOUSING
ALLIANCE, INC., TO PROVIDE CONSULTING SERVICES
FOR THE PALM DESERT HOME IMPROVEMENT
PROGRAM.
CONTRACTOR: RANCHO HOUSING ALLIANCE, INC.
53-990 ENTERPRISE WAY, SUITE 1
COACHELLA, CA 92236
SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR
DATE: FEBRUARY 23, 2006
CONTENTS: AGREEMENT FOR PROFESSIONAL SERVICES
SCOPE OF SERVICES
CONSULTANTS PROPOSAL
HOME IMPROVEMENT GUIDELINES
Recommendation:
By minute motion that the Agency Board:
1) Authorize the Professional Services Agreement, attached hereto
and approved substantially as to form, between the Palm Desert
Redevelopment Agency and Rancho Housing Alliance for the
purposes of providing professional services in connection with the
Home Improvement Program on a fee per service basis as
proposed. Estimated fiscal year cost is $101,200.
2) Funds are available in the Home Improvement Program account
number 870- 4493-464-4001.
3) Authorize the Execute Director to execute the Contract.
Executive Summary:
Approval of this request will authorize Rancho Housing Alliance to provide professional
services in connection with the Palm Desert Home Improvement Program. By entering
into an agreement with "Rancho" for the professional services and increasing the scope
of services for Rancho, the program implementation will be streamlined and shorten the
overall processing time. Denial of the request will result in delays in the program
processes, which will ultimately affect the homeowner.
STAFF REPORT
Rancho Housing Alliance, Inc.
February 23, 2006
Page 2
Discussion:
Palm Desert's Home Improvement Program ("HIP") was created in 1997 to assist very
low, low and moderate -income homeowners improve their homes by providing grants
and low interest loans for improvements that are necessary in order to correct a
deteriorating condition, a health and safety concern or a code violation. Since that time,
we have successfully assisted approximately 190 single-family homeowners to improve
their homes. The program utilizes both Community Development Block Grant (CDBG)
funds as well as the Agency's 20% set aside funds.
Staff has been working with two professional service providers, Rancho Housing
Alliance and Crawford and Company ("Crawford"), for the last year on a limited
engagement basis to process the `work' write-ups and to ensure program compliance
with the homeowners and the contractors that they have contracted with. This provided
staff with the opportunity to work with the service providers in order to bring a
recommendation forward to the Agency as to which provider would be the best provider
to select to continue to assist the Agency with this program. Of the two consultants,
Rancho Housing Alliance ("Rancho") has additional training with respect to CDBG
funding constraints, income restrictions, and the document preparation for recording the
grants and loans that Crawford does not. Rancho has indicated they may sub -contract
with Crawford to provide support services directly to them.
Staff will continue to meet with potential applicants, send out applications, verify income
and determine program eligibility during the initial stage of the program process.
Rancho will pick up the completed income eligible application, process the work write-
up, the lien documentation, assist the homeowner to obtain competitive bids from
contractors and oversee the work to be done as a part of the funding. This will help to
alleviate a lengthy back and forth process. When the work is complete and all invoices
have been processed, Rancho will prepare the closing documents and return the
original working file including before and after pictures.
Rancho is currently managing a similar program in another valley city.
Staff is also preparing a revision to the HIP Program to increase the amounts that can
be provided in each component for assistance by grant and loan type. The limits have
not been changed since 2000. Based on the recent increase in construction costs, the
amounts are insufficient to accomplish what the program intends. Entering into this
professional services agreement for the HIP Program will leverage the Agency's ability
to add new programs while building capacity in a local non-profit.
STAFF REPORT
Rancho Housing Alliance, Inc.
February 23, 2006
Page 3
Fees for the professional services will be as follows:
Per Assignment:
• $2,000 per unit for cost estimation and contractor coordination (no annual
maximum)
$1,600 per unit for program management including coordination of owner
program requirements, document preparation, invoice processing for
payments by City/Agency, program compliance and reporting (annual
maximum $38,400*.)
$1,200 per unit flat fee for processing emergency grants requiring
substantially less work than a full application.
$1,000 per unit flat fee for work completed prior to a decline by the
homeowner or determination of work not being program eligible.
• Reimbursable costs as incurred but in no case will costs exceed $250 per
assignment.
Note: *Rancho also agrees to negotiate a reduced fee for program
management in the event that the assignments exceed 24 per fiscal year.
On the average 24 assignments have been completed each fiscal year. This does not
include those applicants or assignments that are declined either by staff or by the
homeowner. Staff estimates the annual cost to be $101,200 on a fiscal year basis,
which includes 24 assignments at $3,600 each ($86,400), 4 emergency assignments at
$1,200 each ($4,800), 4 declines at $1,000 each ($4,000), and reimburseable costs for
the 24 assignments at $250 ($6,000).
Staff is requesting authorization to enter into a professional services agreement with
Rancho Housing Alliance, Inc., to perform the services indicated in the Scope of
Services as well as their proposal dated January 27, 2006.
Submitted by:
n M. Moore
ousing Authority Administrator
Approval:
Department Head:
e Yrigoyen
Director of Redevelopment/Housing
opment Carlos Ortega, Executive Director
AGREEMENT FOR PROFESSIONAL SERVICES
This AGREEMENT is made and entered into this 23�d day of February, 2006,
("Effective Date") by and between the PALM DESERT REDEVELOPMENT AGENCY
("Agency") and RANCHO HOUSING ALLIANCE, Inc., a 501(c)(3) Community Housing
Development Organization certified in Riverside County, California ("Consultant")
(sometimes referred to individuaNy or collectively as "Party" or "Parties").
WITNESSETH
WHEREAS, Agency and the City of Palm Desert ("City") have established a
Home Improvement Program ("HIP"), a residential rehabilitation loan and grant program
designed to provide financial assistance to very low, low and moderate-income
homeowners in the City for the correction of existing code violations, health and safety
standards, and substandard conditions of the home; and
WHEREAS, Agency has promulgated Guidelines for the HIP ("Guidelines") that
outline the funding sources for the HIP, the nature of financial assistance avai�able
through the HIP, the homeowner and property eligibility requirements, the terms and
conditions for participating in the HIP, and the procedures for implementing the HIP; and
WHEREAS, in or about October 2004, following review of multiple statements of
qualification, Agency retained Consultant as an independent contractor to perform
certain technical and professional consulting services, on a limited-assignment basis, in
connection with the HIP and as called for in the Guidelines; and
WHEREAS, Consultant has proposed to continue to provide technical and
professional consulting services in connection with the HIP, as set forth in its Proposal
dated January 27, 2006, attached hereto as Exhibit A and incorporated herein; and
WHEREAS, Consultant represents that it is fully qualified to perform such
services by virtue of its experience and the training, education and expertise of its
principals and employees and that it desires to perform such services as provided
herein; and
WHEREAS, Agency desires to retain Consultant as an independent contractor to
perform certain technical and professional consulting services in connection with the
HIP and as called for in the Guidelines, subject to the terms and conditions specified
below, in the documents attached and incorporated herein, and applicable federal, state
and local law.
NOW, THEREFORE, in consideration of performance by the Parties of the
mutual promises, covenants, and conditions herein contained, the Parties hereto agree
as follows:
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1. Consultant's Services.
1.1 Scope of Services. Consultant shall provide professional and
technical services as generally proposed in Exhibit A and as more particularly
described in Exhibit B, attached hereto, and in the Guidelines, attached as Exhibit C.
All exhibits to this Agreement are incorporated herein as though fully set forth. In the
event of a discrepancy between this Agreement and its exhibits, this Agreement and the
Scope of Services set forth in Exhibit B shall be the governing documents, as may be
clarified or modified from time to time by Exhibit C.
1.2 Personnel. Consultant represents that it has, or will secure at its
own expense, all personnel required to perform the services under this Agreement.
Consultant is hereby authorized to subco�tract with Crawford and Company, who
previously provided HIP consulting services directly to the Agency, in connection with
performance of items B.1 through B.8, inclusive, of Exhibit B. All of the services
required under this Agreement will be performed by Consultant, or by its employees or
by Crawford and Company, under its direct supervision, and all personnel engaged in
the work shall be qualified, and shall be authorized or permitted under state and local
law to perform such services.
1.3 Standard of Performance. Consultant shall perform all services
under this Agreement in accordance with the standard of care generally exercised by
like professionals under similar circumstances and in a manner reasonably satisfactory
to Agency.
1.4 Partv Representatives. For the purposes of this Agreement, the
Agency Representative shall be James Conway or such other person designated by the
Agency's Executive Director ("Agency Representative"). For the purposes of this
Agreement, the Consultant Representative shall be Jeffrey A. Hayes ("Consultant
Representative"}.
1.5 Time of Commencement.
A. Existina Assianments: Upon execution of this Agreement by the
Parties, Consultant shall continue to perform all services with respect to all on-
going or pending HIP assignments that were previously approved by Agency
("Existing Assignment") in accordance with the terms of this Agreement.
B. New Assiqnments: Upon execution of this Agreement by the
Parties, Consultant shall commence work immediately upon receipt of each new
assignment from Agency ("New Assignment") in accordance with the terms of
this Agreement.
1.6 Time of Performance/Time is of the Essence. Consultant shall
continue or commence, as applicable, the services contemplated under this Agreement
and shall prosecute to completion each task listed in Exhibit B in a timely and diligent
manner, for each Existing Assignment and New Assignment, within ninety (90)
calendar days of receiving such Assignment, or in accordance with a schedule to be
mutually agreed upon by Agency and Consultant.
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1.7 Compliance with Laws. Consultant shall at all times compiy with
applicable federal, state and local laws, ordinances, codes and regulations in the
performance of this Agreement, the Guidelines including any amendments thereto that
may occur after the execution of this agreement, and with all applicable Community
Development Block Grant ("CDBG") procurement guidelines and with applicable City or
Redevelopment Agency purchasing policies and guidelines.
2. Services by Agency: Pre-Qualification. Pre-qualification of eligible
homeowners and properties is required before Consultant is authorized to commence
work under this Agreement. Agency, and not Consultant, shall be responsible for the
Pre-Qualification phase, as generally outlined herein, and more specifically in the
Guidelines.
2.1 Processing HIP Applications. Agency shall review and process
applications for financial assistance submitted by homeowners ("HO") in connection with
the HIP.
2.2 Pre-Qualification. Agency shall determine HO and property
eligibility for financial assistance under the HIP in accordance with the Guidelines, and
applicable federaf, state and local {aws, including but not limited to policies and
guidelines of the CDBG, Department of Housing and Urban Development ("HUD"), and
applicable City and Agency policies and guidelines.
2.3 Approval/Denial of HIP Applications. Upon completion of the pre-
qualification phase, Agency shall either (1) approve the HO's application and forward
the New Assignment to Consultant, or (2) deny the application. If Agency denies a HIP
application, no compensation shall be paid to Consultant for such denied application.
3. Term of Agreement.
3.1 Current Term. The term of this Agreement shall commence on
March 1, 2006 and end on June 30, 2007, unless terminated as provided in Section 14,
below. If Consultant is working on an Assignment for which Consultant's services
necessarily extend beyond the expiration of the current term ("Overlapping
Assignment"), Consultant shall timely complete such Assignment through its conclusion,
and shall be compensated therefor, notwithstanding the expiration of the current term.
Such Overlapping Assignment shall not create, nor be deemed to create, any
entitlement to or expectation by Consultant for an extension of the current term, absent
a written agreement for such extension as provided in sub-section 3.2, below.
3.2 Extension/No Everareen Clause. This Agreement may be
extended for one or more one-year terms, or for periods of more or less than one year,
as may be mutually agreed to by Agency and Consultant, and upon execution of a
written agreement or addendum, signed by the Parties prior to the expiration of the term
specified in sub-section 3.1, above. Any such extension may, or may not, include
changes in the terms and conditions of Consultant's services, or changes in the HIP
program, or other modifications as may be necessary due to outside factors, and
mutually agreed to by the Parties. Unless such written agreement or addendum is
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executed by the Parties prior to the expiration of the current term specified in sub-
section 3.1, this Agreement shall automatically be deemed terminated at the end of the
current term specified in sub-section 3.1, above.
4. Compensation. Agency shall pay Consultant for the Services provided
under this Agreement on the following basis.
4.1 Per Assianment Fee. Consultant shall be compensated for its
services on a per-Assignment basis, also referred to as a per-unit basis in Exhibit A.
Compensation for each Assignment will be based on two phases:
(1) Cost estimation and contractor coordination services, including Exhibit
B, items B1 through 68, inclusive, at $2,000 per Assignment; and
(2) Property Management, Coordination, and Program Delivery services,
including Exhibit B, items B9 through B13, inclusive, at $1,600 per Assignment,
to a maximum of $38,400, subject to sub-section 4.6, below.
4.2 Emeraencv Reqairs. Cost Estimation, Construction and
Administrative services, subsumed within the generally applicable provisions of Exhibit
B, items B1 through 613, inclusive, at $1,200 per Assignment (inclusive).
4.2 No Withholdinq. Agency shall not withhold federal or state payroll
taxes, or any other deductions, from any payment made to Consultant. Consultant, as
an independent contractor, is solely responsible for all federal, state and local taxes that
may be due upon any compensation received under this Agreement.
4.3 Eliaible Cost/Extraordinary Expenses. Agency shall pay to
Consultant actual costs, subject to a per-Assignment cap not to exceed two hundred
and fifty dollars ($250.00): (1) Extraordinary copy costs over 250 pages per assignment
at $0.15 per page; (2) Mileage in excess of 100 miles per Assignment, as measured
from Palm Desert City Hall to the work site, at the City approved rate per mile; (3)
Sundry expenses as may be approved or required by Agency and incurred by
Consuftant.
4.4 Additional Costs. No claims for additional services, expenses or
costs incurred by Consultant will be allowed unless authorized by Agency in writing prior
to the performance or incurrence of such services, expenses or costs. Any additional
services, expenses or costs authorized by Agency shall be compensated at rates
mutually agreed upon by the Parties in writing.
4.5 No Minimum/Maximum Number of Assianments. This Agreement
is for an agreed upon sixteen month term, without guarantee of any minimum or
maximum number of Assignments. Nothing in this Agreement should be construed
as a guarantee of any minimum number of Assignments or any minimum contract
amount. In recent years, an average of 20-24 Assignments (or units) have been
approved per year and the Parties reasonably anticipate a similar volume during the
initial term of this Agreement. However, the volume of HIP applications that Agency
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may receive, the eligibility of HO's and their properties for HIP assistance, and other
factors outside the control of the Parties to this Agreement, will largely determine the
number of Assignments in a given year. Agency and Consultant agree to work in good
faith, respectively, to assign and to perform on Assignments as they arise, and to
address and resolve workflow issues as needed. Consultant agrees to negotiate a
reduced per-Assignment fee, to the mutual satisfaction of the Parties, should the
number of Assignments exceed 24 in any one-year period.
5. Method of Payment.
5.1 Invoices. Consultant shall submit invoices each month to Agency
for all services, if any, completed, and all expenses or costs incurred pursuant to this
Agreement during the preceding month. The invoices shall describe in detail the
services rendered during the period and shall show the days worked, number of hours
worked, the hourly rates charged, milestone achievements, and the services performed
for each day in the period. Copies of receipts for expenses or costs shall be submitted
with each invoice. Agency shall review such invoices and notify Consultant in writing
within fifteen (15) calendar days of any disputed amounts.
5.2 Pavment. Agency shall pay all undisputed portions of the invoice
within thirty (30) calendar days after receipt of the invoice up to the maximum amounts
set forth in Section 4.
5.2 Audit of Records. At any time during regular working hours, all
records, invoices, time cards, cost control sheets and other records maintained by
Consultant shall be available for review and audit by the Agency.
6. Ownership of Work Product.
6.1 Propertv of Apencv. All file documents including but not limited to
plans, bids, proposals, correspondence, permits, certificates, contracts, change orders,
invoices, receipts, or other written material developed or obtained by Consultant in the
performance of this Agreement ("Work Product"), shall be and remain the property of
Agency without restriction or limitation upon its use or dissemination by Agency.
Promptly upon the completion of each Assignment, or at any other time upon
reasonable notice to Consultant by Agency, Consultant shall deliver all Work Product to
Agency.
6.2 Re-Use of Work Product. Agency and Consultant agree that all
documents, other than invoices, prepared by Consultant pursuant to this Agreement
shall be used exclusively for the HIP, and shall not be used for any other work without
the mutual agreement of the Parties. Such material shall not be the subject of a
copyright application by Consultant. In the event Consultant permits the re-use or other
use of such Work Product, Agency shall require the party using them to indemnify and
hold harmless Agency and Consultant regarding such re-use or other use, and Agency
shall require the party using them to eliminate any and all references to Consultant from
such Work Product. In the event Agency re-uses such Work Product on any project
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other than the project for which they were prepared, such re-use shall be at the sole risk
of Agency unless Agency compensates Consultant for such reuse.
7. Conflict of Interest/Prohibited Conduct and Interests
7.1 Conflict of Interest. Consultant and its officers, employees,
associates and sub consultants, if any, will comply with all conflict of interest statutes of
the State of California applicable to Consultant's services under this Agreement,
including, but not limited to, the Political Reform Act (Government Code Sections
81000, et seq.) and Government Code Section 1090. During the term of this
Agreement, Consultant shall retain the right to perform similar services for other clients,
but Consultant and its officers, employees, associates and sub consultants shall not,
without the prior written approval of the Agency Executive Director, perform work for
another person or entity for whom Consultant is not currently performing work that
would require Consultant or one of its officers, employees, associates or sub
consultants to abstain from a decision under this Agreement pursuant to a conflict of
interest statute.
7.2 No Solicitation. Consultant, on behalf of itself and its officers,
employees, agents and representatives, warrants that it has not employed or retained
any company or person, other than a bona fide employee working solely for Consultant,
to solicit or secure this Agreement, and that it has not paid or agreed to pay any
company or person, other than a bona fide employee working solely for Consultant, any
fee, commission, percentage, brokerage fee, gifts, or any other consideration,
contingent upon or resulting from the award or making of this Agreement. For breach or
violation of this warranty, Agency shall have the right to annul this Agreement without
liability, or in its discretion to deduct from the contract price or consideration, or
otherwise recover, the full amount of such fee, commission, percentage, brokerage fee,
gift or contingent fee.
7.3 No Financial {nterest - Aqencv. No officer, member or employee of
Agency during his or her tenure or one year thereafter shall have any interest, direct or
indirect, in this Agreement or the proceeds thereof. The Parties hereto covenant and
agree that to their knowledge no member of the Agency Board, or officer or employee of
Agency, has any interest, whether contractual, non-contractual, financial or otherwise, in
this Agreement, or the subject matter thereof, nor any business or financial relationship
with Consultant, and that if any such interest comes to the knowledge of either Party at
any time a full and complete disclosure of all such information will be made in writing to
the other Party or Parties, even if such interest would not be considered a conflict of
interest under applicable laws.
7.4 No Financial Interest — Consultant. Consultant hereby covenants,
on behalf of itself, and its officers, employees, agents and representatives, that at the
time of executing this Agreement it has no interest, and that it shall not acquire any
interest in the future, direct or indirect, which would conflict in any manner or degree
with the performance of services required to be performed pursuant to this Agreement.
Consultant further covenants that in the performance of this Agreement, no person
having any such interest shall be employed by Consultant.
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8. Indemnification. To the fullest extent permitted by law, Consultant
agrees, at its sole cost and expense, to indemnify, defend and hold harmless Agency,
and City, and their respective elected and appointed officials, officers, attorneys, agents,
employees, designated volunteers, successors and assigns, from any and all liability or
financial loss, including legal expenses and costs of expert witnesses and consultants,
resulting from any suits, claims, losses or actions brought by any person or persons, by
reason of injury to persons or property arising or claimed to arise, directly or indirectly,
from the negligent acts, errors or omissions of Consultant, including its officers, agents,
employees, subcontractors or any person employed by Consultant, in the performance
of this Agreement. Consultant agrees that Consultant's covenant under this
Section 8 shall survive the termination of this Agreement.
9. Cooperation. In the event any claim or action is brought against Agency
or City, or their respective officials or employees, relating to Consultant's performance
or services rendered under this Agreement, including but not limited to any claim
relating to a HO-Contractor Contract prepared or approved by Consultant pursuant to
this Agreement, Consultant shall render any reasonable assistance and cooperation
which Agency or City might require.
10. Insurance.
10.1. Consultant shall at all times during the term of this Agreement
carry, maintain, and keep in full force and effect, with an insurance company autho�ized
to do business in California, rated "A" or better in the most recent Best's Key Insurance
Rating Guide, and approved by Agency, (1) a policy or policies of broad-form
commercial general liability insurance with minimum fimits of $1,000,000 combined
single limit coverage against any injury, death, loss or damage as a result of wrongful or
negligent acts by Consultant, its officers, employees, agents, and independent
contractors in performance of services under this Agreement; (2) automobile liability
insurance, with minimum combined single limits coverage of $1,000,000; (3)
professional liability (errors and omissions) insurance, with minimum combined single
limits coverage of $1,000,000, on a form approved by the Agency; and (4) workers'
compensation insurance with a minimum limit of $1,000,000 or the amount required by
law, whichever is greater. Agency, City, and each of their officers, employees,
attorneys, and designated volunteers shall be added as additional insureds on the
policy(ies) as to commercial general liability bodily injury and property damage
coverages and automobile coverages with respect to liabilities arising out of
Consultant's work under this Agreement.
10.2 Each insurance policy required by this Section 10 shall be
endorsed as follows: (1) the insurer waives the right of subrogation against Agency and
City and their respective officers, employees, agents and representatives; (2) the
policies are primary and non-contributing with any insurance that may be carried by
Agency or City; and (3) the policies may not be canceled or materially changed except
after thirty (30) days prior written notice by insurer to Agency. The endorsement
requirements set forth in this subsection shall not apply to the professional liability policy
required by this Section 10.
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10.3 All insurance coverages shall be confirmed by execution of
endorsements on the forms attached hereto and incorporated herein as Exhibit D.
Consultant is required to file the comp{eted policy endorsements with Agency on or
before the Effective Date of this Agreement, and to thereafter maintain current
endorsements on file with Agency. The completed endorsements are subject to the
approval of Agency. If for any reason it shall not be possible to obtain endorsements on
Agency's forms, the underlying insurance policies are nonetheless required to include
the terms and conditions set forth on Agency's forms unless otherwise agreed by
Agency.
11. Status as Independent Contractor. Consultant is, and shall at al1 times
remain as to Agency, a wholly independent contractor. Consultant shall have no power
to incur any debt, obligation, or liability on behalf of Agency. Neither Agency nor any of
its officials, employees or agents shall have control over the conduct of Consultant or
any of ConsultanYs employees, except as set forth in this Agreement.
12. Non-Assignability; Subcontracting. Consultant shall not assign or
subcontract all or any portion of this Agreement, except as specifically permitted in
Section 1.2, above. Any attempted or purported assignment or sub-contracting by
Consultant shall be null, void and of no effect.
13. Non-Discrimination and Equal Employment Opportunity. In the
performance of this Agreement, Consultant shall not discriminate against any employee,
subcontractor, or applicant for employment because of race, color, creed, religion, sex,
marital status, national origin, ancestry, age, physical or mental handicap, medical
condition, or sexual orientation. Consultant will take affirmative action to ensure that
subcontractors and applicants are employed, and that employees are treated during
employment, without regard to their race, color, creed, religion, sex, marital status,
national origin, ancestry, age, physical or mental handicap, medical condition, or sexual
orientation. This clause shall be included in any contract prepared or approved by
Consultant in connection with performance of its services under this Agreement.
14. Termination. Either Party may terminate this Agreement for any reason
without penalty or obligation with thirty (30) calendar days written notice to the other
Party except in the case of non-compliance with any condition hereof the Agency at its
sole discretion may provide notice to terminate without penalty or obligation with seven
(7) calendar days with written notice. Consultant shall be paid for services satisfactorily
rendered to the last working day the Agreement is in effect, and Consultant shall deliver
all Work Product compiled through the last working day the Agreement is in effect.
Neither Party shall have any other claim against the other party by reason of such
termination.
15. Notices. Any notices, bills, invoices, or reports required by this
Agreement shall be given by first class U.S. mail or by persona{ service. Notices shal{
be deemed received on (a) the day of delivery if delivered by hand or overnight courier
service during Consultant's and Agency's regular business hours or by facsimile before
or during Consultant's regular business hours; or (b) on the third business day following
deposit in the United States mail, postage prepaid, to the addresses heretofore set forth
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in the Agreement, or to such other addresses as the Parties may, from time to time,
designate in writing pursuant to the provisions of this section. All notices shall be
delivered to the Parties at the following addresses:
Agency: Jim Ferguson, Chairman
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
With a copy to: James Conway
Project Coordinator
Palm Desert Redevelopment Agency
73-510 Fred Waring Drive
Palm Desert, California 92260-2578
Tel: (760) 346-0611
Fax: (760) 341-6372
Consultant: Jeffrey A. Hays
Executive Director
Rancho Housing Alliance, Inc.
53-990 Enterprise Way, Suite 1
Coachella, California 92236
Tel: (760) 391-5050
Fax: (760) 391-5100
16. Non-Waiver of Terms, Rights and Remedies. Waiver by either Party of
any one or more of the conditions of performance under this Agreement, or a breach or
default of any term or provision thereof, sha{I not be a waiver of any other condition of
performance under this Agreement. In no event shall the making by Agency of any
payment to Consultant constitute or be construed as a waiver by Agency of any breach
of covenant, or any default which may then exist on the part of Consultant, and the
making of any such payment by Agency shall in no way impair or prejudice any right or
remedy available to Agency with regard to such breach or default.
17. Attorney's Fees. ln the event that either Party to this Agreement shall
commence any legal action or proceeding to enforce or interpret the provisions of this
Agreement, the prevailing party in such action or proceeding shall be entitled to recover
its costs of suit, including reasonable attorney's fees.
18. Exhibits; Precedence. All documents referenced as exhibits in this
Agreement are hereby incorporated in this Agreement. In the event of any material
discrepancy between the express provisions of this Agreement and the provisions of
any document incorporated herein by reference, the provisions of this Agreement and
Exhibit B shall prevail.
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19. Entire Agreement. This Agreement, and any other documents
incorporated herein by specific reference, represents the entire and integrated
agreement between Consultant and Agency. This Agreement supersedes all prior oral
or written negotiations, representations or agreements. This Agreement may not be
amended, nor any provision or breach hereof waived, except in a writing signed by� the
Parties which expressly refers to this Agreement.
20. Partial Invalidity. In case any provision of this Agreement should be
deemed by a court of competent jurisdiction to be invalid, illegal or unenforceable in any
respect, the validity, legality or enforceability of the remaining provisions shall not be
affected or impaired thereby.
21. Successors. This Agreement shall bind and inure to the benefit of the
respective heirs, personal representatives, successors and assigns of the parties to this
Agreement.
22. Construction. Section headings in this Agreement are solely for the
convenience of the Parties and are not a part of and shall not be used to interpret this
Agreement. This Agreement shall not be construed as if it had been prepared by one of
the Parties, but rather as if both Parties have prepared it. Unless otherwise indicated,
all references to Sections are to this Agreement.
23. Authorization. The Parties represent and warrant that each of the
individuals signing this Agreement on behalf of any Party has authority to sign on behalf
of the entity for which they have signed as signatory. Two signatures are required for a
California corporation.
24. Facsimile and Counterparts This Agreement may be executed in one or
more original or facsimile counterpart originals, each of which shall be deemed to be the
original, but which together will constitute one and the same instrument.
Palm Desert RDAIHIP\ConsuftanYs Agreement 10
872558
IN WITNESS WHEREOF, said parties have executed this Agreement effective
as of the Effective Date above.
RANCHO HOUSING ALLIANCE INC.
By:
Its:
[signatures continued overj
RANCHO HOUSING ALLIANCE INC.
By:
its:
PALM DESERT REDEVELOPMENT AGENCY
Jim Ferguson, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
APPROVED AS TO FORM
Dave Erwin, City Attorney
William L. Strausz, Agency Attorney
Palm Desert RDAIHIP\ConsultanYs Agreement 11
872558
EXHIBIT A
CC)NSULTANT'S PROPCiSAL
[Letter dated January 27, 2006]
Palm Desert RDAIHIPIConsuftanYs Agreement 12
872558
i�
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��.
Hoaoin� Alliarea I�o.
January 27, 2006
53-990 E[v�t�E�RISE WAY, SUrrE i,
COACHEc,Va, CA 92236
(760) 391-5050
Tou. F'FtEE (866) 266-3223
F�►x: (760) 39 i -� 100
RECEIVED
FEB 0 3 2006
Janet Moore, Housing Authority Administrator
Palm Desert Redevelopment Agency �� Desert RD�.
73-510 Fred Waring Drive
Palm Desert, CA 92260
Subject: Proposal for Manaqement of Housin4 Imarovement Proaram
Dear Ms Moore:
Rancho Housing Alliance, Inc. is excited about the opportunity to continue our
partnership with your Agency for the management of your Housing lmprovement
Program (HIP).
RANCHQ, a 501 (c)(3} Community Housing Development Organization certified in
Riverside County, has successfully grown its Nousing Preservation and Rehabilitation
program over the past year. We are currently committed to provide similar program
management for the City of Coache(la and ready to increase our staff capacity to
implement the desired management and coordination of the Palm Desert HIP.
The management and provision of the Housing Rehabilitation Program will be staffed by
RANCHO Project Manager-Construction and a Program Coordinator. We will also
contract with Crawford & Company to complete inspection and work estimates to extend
our technical capacity.
Upon receipt of an income qualified applicant from the City, manage and coordinate all
aspeets of program management as follows:
• Perform inspections of existing home to assess rehabilitatioNupgrade needs;
prepare written description of desired work to be completed to include discussion
and submission of copy to owner.
Discuss necessary and eligible repair work with home owner and match the
scope of work with the appropriate funding altemative; i.e. grant versus loan.
Explain all covenant restrictions.
• Conduct a competitive bid process for contractors that would incorporate as
many of the desired jobs by type and complexity to achieve the greatest
economies of scale. This bid process wil! also incorporate the City of Palm
Desert's bidding policies.
HIP MGT PROPOSAL
PAGE 2
1/27/2006
• Prepare alt grantlloan and {ien documents and secure owner's execution, record
with Riverside County for return and retention by the City's Redevelopment
Agency.
• Prepare written agreements between contractor and homeowner for performance
of the work designated.
• Conduct inspections to verify all work has been completed satisfactorily
• Provide oversight of Contractors to insure oompliance, performance, complexity
of work, and rates are consistent with industry standards.
• Coordinate vendor/contractor draws for payment by City's Finance Department,
after verification of work progress and owner's concurrence.
• Provide regular reports per requirements/requests the of Redevelopment Agency
on program progress, proposed changes, or issues ident�ed in the provision of
the program
• Maintenance of client files, writteNtelephone communications with
owners/contractors, bid documentation and before/after digital photos.
• Researching opportunities for home refrigeratioNheating units, materials, and
utility programs that may become available to program participants.
Assumptions:
As DACE & RANCHO are annually audited for complianoe to Federal Programs
under OMB circular A-122 and A-133, we can meet all necessary audit
documentation and compliance for funding sources to the H{P.
Program activity is estimated at 20-24 homes a year initially, with the intent to
grow and expand the volume and services associated with the HIP.
Any sundry expenses outside of the program scope and mandated by the City,
will be reimbursed separately from the fee structure provided.
l4ANCHO HOUS/NG ALLIANCE /S A EQUAL OPPORTUN/TY PROYIDER
SERY/NG EASTERN RNERS/DE COUNTY
HIP MGT PROPOSAL
Fee Structure:
PAGE 3
1 /27/2006
RANCHO proposes a fee structure based in part on current programs activity with the
City and expanded management services:
Cost estimation and contractor coordination by either
RANCHO or contracted provider; i_e. Crawford & Co.
Program Management- Coordination of owner and program delivery,
Document preparation, execution and recordation, fiscal
coordination of contractor/vendor draws to City,
program compliance and reporting.
For Emergency Repairs-which require substantially less
Cost Estimation, Construction and Administrative work.
$2,000 /unit
$1,600 /unit
up to Max of
$38,400
$1,200/ unit
(inclusive)
In situations of estimation/administrative services are provided to the owners and either
they decline to proc�ed or the work is not program eligible, a flat fee of $1,000 will be
paid to offset expenses incurred.
Fees have been based on a average of 20-24 units per year. If the program activity
increases and is estimated to exceed the estimate of 24 unitslyear, RANCHO agrees to
negotiate a reduce any additional fee for management_
I hope that you find this proposal satisfactory. If you have any questions regarding the
scope of services or fees, please contact me at (760} 391-5043.
Sincerely
�
JEF R A. HAYS �
E cu � e Director
RANCHO HOUS/NG AL!_l.4NCE /S A EQllAL OPPORTUNl7'}' PROV/DER
SERY/NG EASTERN R/VERS/DE COUNTY
EXHIBIT B
CONSULTANT'S SCOPE OF SERVICES
Consultant's Scope of Work. Consultant shall immediately commence
work pursuant to this Agreement for all Existing Assignments and for each New
Assignment referred by the Agency. Consultant's scope of work shall consist of the
services described herein and as may be more fully described in the Guidelines or any
amendment to the Guidelines that may be implemented in the future
B.1 Initial Meetinq with Homeowner. Consultant shall meet with HO to
determine the nature and extent of the scope of improvements, construction or repairs
(collectively "HIP work") desired by HO and consistent with the Agency's Pre-
Qualification, make appropriate recommendations to HO regarding eligible HIP work,
and setting priorities.
B.2 Work Write-Uq. Consultant shall prepare a written Work Write-Up
detailing the scope of HIP work to enable contractors to provide bids/proposals, and
revise and finalize the Work Write-Up in consultation with the HO, as appropriate.
Copies of all work Write-Ups shall be provided to the Agency.
6.3 Photoqraphs. Consultant shall take "before" and "after" digital
photographs for each New Assignment and, to the extent possible, for each Existing
Assignment. All photographs shall be maintained as part of the permanent file for each
Assignment.
B.4 Multiple Contractor Bids. Consultant shall prepare necessary
documents to solicit and obtain a minimum of three (3) bids or proposals by California
licensed general or special contractors, as appropriate, maintain accurate records of all
efforts to solicit and obtain bids, organize and evaluate all bids, and prepare a"Proposal
Comparison" form by contractor or HIP work category. In the event Consultant is
unable to obtain three (3) bids, despite good faith efforts to solicit same, Consultant
shall accurately record all efforts to obtain bids and the specific outcome of those
efforts, if unsuccessful. In the event of emergency HIP work, Consultant may proceed
with only one (1) estimate with the Agency's approval, which approval shall be in
writing, signed by the Agency before or as soon as practicable after commencement of
the work.
B.5 Selection of Contractor. Consultant shall work with HO to discuss
the bids and Proposal Comparison form, make recommendations as appropriate for
modification or deletion of HIP work, and assist HO in selecting, negotiating with and
retaining one or more contractors to perform such work. Consultant shall conduct due
diligence background checks for each contractor, including but not limited to verification
of contractor's license status and insurance policies/certificates, and checking available
online resources (e.g. California Contractor's Licensing Board, Better Business Bureau).
Where necessary, Consultant shall participate directly in negotiations between HO and
contractor to facilitate the process. In the event HO requests approval to be deemed
qualified to perform the work him/herself, and Consultant approves the request, HO
shall be eligible to receive HIP financial assistance for materials, but not labor,
Paim Desert RDA1HIPlConsultanYs Agreement 13
872558
associated with such HIP work, and may be paid directly for the actual cost of such
materials, nofinrithstanding Exhibit B, Item B.11, below.
B.6 HO-Contractor Contract. Consultant shall review and approve all
written contracts submitted by contractors for the HIP work, or portions thereof, to be
performed by each contractor. In the event the HIP work involves multiple contractors,
separate contracts shall be prepared for each. The contracts shall be between, and
executed by, the HO and the contractor exclusively ("HO-Contractor Contract").
Agency and City shall not be a party to the HO-Contractor contracts and
Consultant shall ensure that each HO-Contractor Contract shall contain an
indemnification provision, whereby HO and contractor expressly agree to hold
harmless, defend and indemnify Agency and City for all liability arising out of the
performance or failure to perform under the HO-Contractor Contract.
B.7 Contractor pocumentation. For each contractor who enters into a
HO-Contractor Contract for HIP work that exceeds five hundred dollars ($500) gross,
Consultant shall obtain the following: Certification of Liability Insurance for a minimum of
$1,000,000; Certificate of Workers' Compensation Insurance; Copy of Palm Desert
business license; Copy of Contractor's license and print-out of state computer database;
completed Taxpayer ldentification Number request form. Consultant shall ensure that
all such documentation is current. Contractors will obtain all necessary approvals
including but not limited, permits, city approvals, public utilities approvals, and Home
Improvement Association approvals.
B.8 Use of Subcontractors. In the event a contractor selected to
perform HIP work, or a portion thereof, seeks to retain one or more subcontractors to
perForm such work, such retention shall be permitted only upon the express consent of
Consultant in the exercise of Consultant's best judgment and after performing a due
diligence background check. In such event, Consultant shall ensure that the HO-
Contractor Contract and any other applicable contract documentation provide that the
Contractor shall be solely responsible for the acts or omissions of its subcontractor.
B.9 Preparation of Loan Documents. Consultant shall prepare all
necessary loan, grant and other financial documentation for each New Assignment,
and shall process all such documents, obtain all necessary signatures and, where
applicable, record such documents with the Riverside County Recorder's Office.
B.10 HIP Work Oversiqht. Upon completing the contract documentation
requirements, Consultant shall notify contractors to proceed with work and monitor the
progress of the HIP work. Consultant shall make necessary arrangements with City or
other government agencies to schedule inspections as required by faw. Consultant
shall prepare or review and approve Change Orders, or other modifications to the HO-
Contractor Contract, as needed, to be signed by HO and Contractor. Consultant shall
act as liaison between HO and contractor, as needed, throughout the course of
construction or repair through completion af each Assignment.
6.11 Contractor Pavments. Consultant shall obtain properly prepared
invoices from contractors for HIP work, including invoices for progress payments as
appropriate, determine whether each invoice is appropriate for approval and if so,
forward such invoice directly to Agency Representative. All payments for HIP work shall
Palm Desert RDA1iiIP\Consultant's Agreement 14
872558
be made directly by Agency to the contractor, in accordance with applicable federal,
state and local guidelines.
B.12 Certifcation. Consultant shall prepare and provide to contractor
when appropriate, a Certification of Satisfactory Completion of Work and Conditional
Lien Release, which shall be signed by HO and contractor, as applicable.
B.13 Reportinq & Record Keeping. To assist Agency in the performance
of its financial administration obligations under the HIP and applicable federal, state and
local law, Consultant shall, throughout the term of this Agreement, keep Agency
reasonably informed of progress on each Assignment, and of any problems or delays,
anticipated or otherwise, associated with each Assignment. Consultant shall promptly
respond to any request by Agency for information, progress reports, or documentation.
Consultant shall maintain accurate records of all work performed for each Assignment
under this Agreement, including but not limited to originals or copies, as applicable, of
all documents described in Section 3 herein. Upon the completion of an Assignment,
Consultant shall deliver to Agency the originals of all HIP work documentation for that
Assignment, and may retain copies of such documentation, at Consultant's election.
Palm Desert RDA1HIPtConsultant's Agreement 15
872558
EXHIBIT C
H.I P. GUIDELINES
Palm Desert RDAIHIP\ConsultanYs Agreement 16
872558
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PALM DESERT REDEVELOPMENT
"MAKE A DIFFERENCE" HOME IMPROVEMENT PROGRAM (HIP)
The intent of this documer�t is to describe all components of the Home Improvement Program (HIP)
I. PURPOSE - WHY DO WE HAVE THTS PROG�RAM?
A. To specifically identify and address the housing needs of our community pursuant
to California Redevelopment Law (Health and Safety Code Section 33000, et sea.)
and policy 5.2 of the Redevelopment City's Housing Compliance Program for very
low and low income families within our community.
B. To improve and stabilize the quality of life for neighborhoods and residents.
C. To instill a sense of community among the residents.
II. FUNDING SOURCES - WHERE DOES THE MONEY COME FROM?
A. County of Riverside County-wide Community Development Block Grant (CDBG);
B. 20% Tax Increment Housing Set-aside Funds;
C. Housing Mitigation Funds.
III. ELEMENTS - WHAT IS THE PROGRAM?
A. The MAKE A DIFFERENCE program is a home improvement program designed for
Palm Desert residents based on the needs of individual homes and neighborhoods.
B. The MAKE A DIFFERENCE program consists of the following components
COMPONENT NO.1- EMERGENCY GRANT COMPONENT (EGC)
a. Covers emergency occurrences, as determined by staff; up to
maximum grant amount of $3,000.00.
b. For very low and low income households whose income does not
exceed 80% of the County of Riverside Median Income as
established by the Department of Housing and Urban Development
(HUD). (See Chart)
c. Application and supporting documentation must be submitted. Staff
at their discretion, may streamline verifications and proceed with only
one conshuction proposal.
d. Available citywide.
2. COMPONENT NO. 2-REHABILITATION GRANT COMPONENT
(RCG)
a. Maximum grant amount of $12,500.
b. For very low income households whose income does not exceed 50%
of the County of Riverside Median Income as established by the
Department of Housing and Urban Development (HLTD). (See Chart)
c. Covenant and Lien recorded that proportionally forgives lien over ten
years. (For example, with a grant of $5,000 then $S00 is forgiven
annually) No repayment is required unless property is sold or
transferred to a household that exceeds 80% of the median income.
d. Available citywide.
e. All health and safety and code violations (if any) must be addressed
first.
f. Available once per household in a three-year period.
3. COMPONENT NO. NO. 3- MATCHING FUND COMPONENT (MFG�
a. Matches expenditures of an eligible household up to a maximum
grant of $2,500.
b. For very low, low, and median income households whose income
does not exceed 100% of the County of Riverside Median Income as
established by the Department of Housing and Urban Development
(HUD). (See Chart) The City will match funds dollar for dollar with
the homeowner (For example, the homeowner has a City approved
project done that costs $3,000.00. The homeowner pays $1,500.00
and the City will pay $1,500.00).
c. Covenant and Lien recorded that proportionally forgives lien over
three years. No repayment is required unless properiy is sold or
transferred to a household that exceeds 100% of inedian income.
d. Available citywide.
e. All health and safety and code violations (if any) must be addressed
first.
f. Available once per household in a three-year period.
4. COMP'ONENT NO. 4- REHABILITATION LOAN COMPONENT
(RLC)
COMPONENT NO 4A - REHABILITATION LOAN FOR LOW
INCOME HOUSEHOLDS
a. Maacimum loan amount of $20,000.
b. For very low and low income households whose income does not
exceed 80% of the County. of Riverside Median Income as
established by the Department of Housing and Urban Development
(HUD). (See Chart)
c. Deed of Trust with ten (10) year occupancy restriction recorded
securing note at 3%* simple interest rate fully amortized over (a) ten
(10) yeazs if less than $10,000; or (b) fifteen (15) years if $10,000 or
more. Note and Deed of Trust may be assumed if property is sold or
transferred to a household that does not exceed 80% of the median
income.
d. Available citywide.
e. All health and safety and Code violations (if any) must be addressed
first.
�
f. Available once per household in a three-year period
* For very low income households (0-50% of inedian) interest
will be set at 0% or, if staff determines that a disproportionate
financial hardship will occur for low income households (51-
80% of inedian), interest can be set at 0%.
COMPONENT NO. 4B - REHABILITATION LOAN FOR MEDIAN
INCOME HOUSEHOLDS
a. Maximum loan amount of $20,000.
b. For median income households whose income is between 81-100%
of the County of Riverside Median income as established by the
Department of Housing and Urban Development (HUD). (See Chart)
c. Deed of Trust with ten (10) year occupancy restriction recorded
securing note at 5%* simple interest fully amortized over (a) ten (10
years if less than $10,000; or (b) fifteen (15) years if $10,000 or more.
Note and Deed of Trust may be assumed if property is sold or
transferred to a household that does not exceed 100% of the median
income. �
d. Available citywide.
e. All health and safety and code violations (if any) must be addressed
first.
f. Available once per household in a three year period.
* If staff determines that a disproportionate financial hardship
will occur, interest can be set at 3%.
COMPONENT NO. 4C - DEFERRED LOAN WITH 30 YEAR
AFFORDABILITY COVENANT
a. Maximum loan amount of $25,000.
b. For very low, low, and median income households whose income
does not exceed 100% of the County of Riverside Median income as
established by the Depariment of Housing and Urban Development
(HUD). (See Chart)
c. Deed of Trust recorded securing note at 3% simple interest requiring
no payments. Note and Deed of Trust may be assumed if property is
sold or transferred to a household that does not exceed 100% of the
median income. Deferred loan forgiven after 30 years if property
remains in compliance ("Silent Second").
d. Recordation of 30 Year Affordability Covenant as part of Deed of
Trust in conformity with mitigation measures established by the
pertinent stipulation(s) with the Western Center on Law and Poverty.
e. Available citywide.
f. All health and safety and code violations (if any) must be addressed
first.
g. Available once per household or residence while loan is outstanding.
5. COMPONENT NO. 5- COUNTY OF RIVERSIDE ECONOMIC
DEVELOPMENT AGENCY LOAN PROGRAM - HOME
IMPROVEMENT PROGRAM (COUNTY FUNDS)
a. The County of R.iverside EDA administers a county-wide Home
Improvement Loan Program available to Pa1m Desert residents.
Funding is provided from Community Development Block Grant
Funds.
b. Loan amount up to $30,000.00.
c. 2% simple interest rate.
d. For owner-occupied single family households whose income does not
exceed 80% of the County of Riverside Median Income as
established by the Department of Housing and Urban Development
(HUD). (See Chart).
e. 30 year term.
6. COMPONENT NO. 6- MAKE A DIFFERENCE VOLUNTEER
COMPONENT
The Make a Difference Volunteer Component is very important. This
component is designed to elicit the involvement of volunteers to assist with
special neighborhood clean-up events within Focus Areas. In addition, staff
will solicit donations of material to defray the cost of improvements.
HOW WILL IT WORK:
Housing Staff and Code Enforcement will identify properties in the Focus
Area in need of repairs and clean-up and whose owner is willing to
participate in a special event clean-up program. Staff will prepare a clean-
up/repair work program. An event date will be selected and solicitation of
both volunteers and donations will begin.
With the help of community organizations and Code Enforcement, the
Volunteer Program will be echoing the purpose, goals and objectives of the
Make a Difference Home Improvement Program.
7. COMPONENT NO. 7- ACQUISITION/REHABILITATION/RESALE
COMPONENT (ARRC) ($500,000 PROGRAM BUDGET)
a. For very low and low income households whose income does not
exceed 80% of the County of Riverside Median Income as
established by the Department of Housing and Urban Development
(HUD). (See Chart)
b. First-time Home Buyer Program.
c. Anticipated cost per home $75,000-$85,000.
4
d. Anticipated rehabilitation cost $10;000/home.
e. Second TD will be made available as required from 20% Housing
Set-aside Funds.
PROPERTY ACQUISITION PROCEDURES
1. Staff, working through local realtors, will identify homes that are for sale both inside
and outside the Focus Areas.
(It is Staffs intent to purchase selected properties at the lowest possible purchase
price to provide affordable housing to lower income families.)
2. Make offers through local broker.
3. Enter purchase escrow.
4. Staff will accomplish due diligence and define renovation costs via the preparation
of a Scope of Work analysis to include costs of rehabilitation.
5. Staff will prepare work write-up.
6. Identify and contract with local general contractor for rehabilitation and commence
work.
7. Staff will monitor and inspect project throughout rehab phase.
8. Staff will identify and work with conventional lending institutions to qualify and
finance prospective buyers and establish a waiting list of qualified very low and low
income families.
9. Enter sales escrow and work with a local broker for the sale of properties.
10. The Agency will provide, as necessary, a silent second TD mortgage to reduce the
mortgage amount and make a grant to cover closing costs.
IV. PRIORITIES - WHAT ARE THE GUIDELINES?
A. The MAKE A DIFFERENCE program shall be for owner-occupied single-family
residential properties including planned unit developments.
B. Home Improvement assistance shall be made available to eligible properties within
the territorial jurisdiction. The City may, from time to time, designate certain
neighborhoods as priority focus areas.
C. The MAKE A DIFFERENCE program guidelines shall provide abasis for reviewing,
analyzing and prioritizing certain rehabilitation projects. Emphasis will be placed
on achieving improvements that will address health and safety issues, eliminate blight
conditions and make a positive dramatic impact upon the appearance and econrnnic
viability of the neighborhood.
D. The City of Palm Desert will not pay for improvements that have been completed or
started prior to the date of the release of the "Authorization to Proceed". The City
reserves the right to establish the type, nature and scope of improvements that it will
finance.
V. ELIGIBILITY - WHO AND WHAT QUALIFIES?
A. The program is available for owner-occupants of single family residential units that
demonstrate that the household income does not exceed the very low, low, or median
income percentage standards of the current County ofRiverside Median Income (See
Chart) as appropriate for whichever program component is used.
5
B. Home in need of repair must be owner occupied and applicants sole and primary
residence.
C. Authorized improvements that improve the appearance of the dwelling and property
from the public right-of-way and interior repairs needed to provide safe and sanitary
living conditions which include but are not limited to the following:
a. Any items to correct Health and Safety and Code violations have first
priority.
b. Landscaping
(1) Removal of rock, vegetation, walls, etc.
(2) Trimming of vegetation
(3) Repair and installation of sprinkler systems
(4) Installation of landscaping including grass, shrubs, trees, rocks, etc.
c. Walls and Fences
(1) Repair of existing walls and fences
(2) Installation of new concrete block walls, wooden fences, and
"ornamental iron" fences (No chainlink fencing)
d. Walks and Driveways
(1) Repair of existing asphalt and concrete walks and driveways
(2) Installation of public right-of-way concrete sidewalks
(3) Installation of on-site concrete walks, driveways etc. including
removal of existing asphalt driveways
e. Sewer and Septic
(1) Repair of existing septic and sewer lines
(2) Installation of new on-site sewer lines and sewer lateral lines
including "sanitation capacity charge" and other fees required by
Coachella Valley Water District (CVWD)
f. Roofs
(1) Repair of leaks if balance of roof acceptable
(2) Elastomeric coating of applicable roofs
(3) Rigid insulation to roofs without attics
(4) Replacement of defective sheathing
(5) Build up flat roofs to provide drainage
(6) Replacement of roofs complete
g. Heating, Cooling, and Fixtures
(1) Repair or replacement of wall furnaces
(2) Repair or replacement of furnaces, air conditioners, and forced air
units
(3) Repair, replacement, or addition of evaporative coolers
(4) Repair or replacement of water heaters
(5) Repair or replacement (if functionally obsolete) built-in stoves and
ovens
(6) Electrical, gas, plumbing, etc. required for above
Q
h. Exterior Painting and Patching Complete
Defective Structural Elements Repaired or Replaced
j. Door, Window, and Insulation
(1) Repair broken windows
(2) Repair or replace screens
(3) Replace deteriorated exterior doors and required hardware
(4) Replace broken interior doors and required hardware
(5) Installation of insulation and other energy conservation measures if
staff determines it is cost effective
k. Garages and Carports
(1) Replace garage doors and install automatic openers
(2) Convert carports to garages
(3) Build carports and garages
1. Stucco and Exterior Siding
(1) Repair of existing stucco and siding
(2) Lathe, plaster and stucco complete
m. Interior Repairs Needed to Provide Safe and Sanitary Living Conditions
n. Bedroom and/or Bathroom Additions
(1) Bedroom addition to mitigate crowded or unsatisfactory living
arrangements
(2) Bathroom addition to mitigate functional obsolescence or
unsatisfactory living arrangements
D. Staff shall establish the work and expenditure priority of all improvements.
VI. GOALS - WHAT DO WE WANT TO ACHIEVE?
The results we want are primarily related to the residents having a positive experience from
their neighborhoods and community. We want the residents of Palm Desert to take pride in
their neighborhoods and express that pride by improving and maintaining their own
properties and by helping others so that everyone can live safely and securely in clean, well-
kept neighborhoods.
VII. OBJECTIVES - WHAT'S IN IT FOR YOU?
By providing both financial and volunteer assistance to homeowners to improve their
properties, the MAKE A DIFFERENCE program hopes to provide Palm Desert residents
with:
A. An increased quality of life - a robust and enriching quality of life is almost always
tied to a richly fulfilling network of neighborhood relationships.
7
B. A stronger sense of community - when present, it is so interwoven into one's daily
patterns of living that it is normally thought of as a general contentment with where
one lives.
The four characteristics of a sense of community are:
1. A sense of belonging to the neighborhood
2. A sense of mattering to other neighbors
3. A shared faith that all neighbors' needs wi11 be met
4. A commitment to be together
C. A measure of success for residents through their participation in neighborhood home
improvement progams
D. A program to address health and safety issues
E. Assistance through volunteer programs
VIII. PROGRAM APPROACH
The City of Palm Desert may provide financial assistance for the rehabilitation of specified
property improvements in the manner provided below. The City will make payments
directly to the designated contractor. In certain cases, the City may provide a two-party
check, made payable to the applicant and the designated contractor. All payments will be
made upon completion and verification of the approved home improvements.
A. General Reauirements
1. All eligible owners of property located in the territorial jurisdiction of Palm
Desert may file an application for assistance.
The City will assign a priority number to each application based on the date
and time that it is received. The application for assistance will be reviewed
on "First Come First Served" basis or as otherwise described herein.
Approval of applications shall be based on the final action by staff. The
priority ofthe work to be completed shall be determined by the City Housing,
Building and Safety, and Code Compliance staffs.
2. Applicants may combine County and City programs. If the subject property
is eligible for more than one type of assistance, separate application must be
filed with both City and County.
3. In the public interest, employees, officials, or consultants of the City of Palm
Desert who exercise decision-making functions or responsibilities in
connection with the administration of the Home Improvement Program shall
not be eligible for assistance.
Eligible City officials or employees not directly involved in the operational
responsibility of the Home Improvement Program may be granted assistance
in accordance with the procedures and regulations of this program.
4. Home improvement assistance will only be provided once, within a three-
year period, to each authorized household or owner occupied residence.
Requests for additional assistance may be submitted to the City only after
three (3) years have elapsed as measured from the date of final "Certification
of Satisfactory Completion of Work" for the previous Home Improvement
assisted project, except for EmerQencv Grants.
B. Particinant Apnlication Process: (City Programs)
1. Eligible individuals seeking assistance from the City of Palm Desert must
submit an application (Staff will assist with completion and submittal). The
application will be processed in the order received.
Eligible individuals seeking assistance from the County of Riverside EDA
must file separate County application to be processed by the County. -
2. Applicant will be required to submit income verification and any additional
pertinent documentation as required by staff. In the event of an emer�encv
situation staff may streamline verifications and documents.
3. Staff will meet with the prospective participant(s) to explain the program
and determine eligibility.
4. Staff will visit the subject property and will prepare a"Work Write-Up"
which enumerates the home improvement work inclusive of health and safety
corrections to be completed through the City's Home Improvement Program.
Photographs shall be taken of the existing conditions.
5. The "Work Write-up", including Code issues, will be reviewed with the
applicant.
6. Staff will assist applicant with seeking competitive bids from licensed
contractors for the designated construction activity. In the event that the
applicant cannot obtain construction proposals from at least three
independent contractors, staff may authorize the applicant to proceed if
adequate documentation has been supplied to indicate that there has been
sufficient effort expended to obtain construction bids and that the required
number of qualified contractors have not responded. In any event, staffmust
determine that the anticipated construction costs are reasonable. In the event
of an emer�encv situation, staff may authorize the applicant to proceed with
one proposal if it is reasonable.
a. Contractor eligibility criteria:
(1) Contractor must have a state license
(2) Contract must have a City business license
(3) Contractor must have general liability insurance; personal
injury insurance; and property damage insurance
(4) Contractor must have Workers' Compensation insurance as
required by the State of California
b. Applicant may begin the home improvement work after:
(1) Eligibility has been determined by staff and required
documents executed by applicant.
(2) A valid construction contract has been executed by the
applicant(s) and the selected contractor and approved by staff
(3) The required building and development permits have been
obtained from the City if any required.
Q
NOTE: THE CITY OF PALM DESERT IS NOT A PARTY TO THE
CONSTRUCTION CONTRACT.
C. Pavrnent Process
1. When all the work is completed, the applicant must submit the contractor's
itemized invoice to the City for payment along with any additional
documentation required by staff. Applicant must sign the "Certification of
Satisfactory Completion of Work" stating that the work has been completed
to his/her satisfaction. If the work is governed by a building permit, then the
work must be finaled by the City's Building and Safety Department.
2. Upon completion of the construction work, City staff will verify:
a. That all permits have been property processed;
b. All program documents have been submitted and properly filed;
c. All labor and/or material lien releases have been obtained;
d. Post-work photographs have been taken.
3. Upon the completion of the specified work items, City staff, at its discretion,
may make disbursements directly to the applicant, the contractor, or the
applicant and the contractor.
4. Payment will be made after the City staff verifies that the designated work
has been completed in accordance with the approved plans, notice of
completion has been filed (if necessary), all conditional waivers of inechanic
liens released, and homeowner certification of satisfactory completion of
work has been signed. Payment will be made in a timely manner following
submission of a completed request for payment.
IX. PROMOTION
A. Staff is currently working with the Director of Community Affairs to publicize the
Home Improvement Program with the intent of continued growth in the number of
participants.
B. Some additional promotional ideas will inclnde:
► Television spots to run public service informational items on HIP
► Radio spots to run public service informational items on HIP
► Human interest stories in the local newspaper as well as other papers such as
Palm Desert Post and Que Nuevas
► Door-to-door approaches by staff
► Fliers included in utility bills
► Community meetings in Focus Areas
► Neighborhood Watch and other organizations solicited for volunteers
► Code Enforcement given flyers and applications for HIP
► Kick-off clean-up events - each Focus Area
► Will have an event to start and celebrate their status as a"Make A Difference
Neighborhood"
► Contact Visitors Center, Chamber of Commerce, Library, YMCA to leave
flyers for public distribution
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► Contact Joslyn Cove Communities Senior Center and Board of Realtors to:
► Leave flyers for public distribution
► Seek to make presentation at meetings
► Contact churches and other charitable organization to disseminate
information
► Attach boxes for HIP flyers to "Make a Difference" signs posted on
participanYs property
► Discuss with City's marketing firm suggestions for Marketing Plan
► Seek approval from Desert Sands Unified School District to distribute "take
home" flyers to students at Palm Desert schools
► Seek approval from nursery schools to distribute flyers to client households
► Consideration of paid advertisement if insufficient response to above efforts
X. ROLES AND RESPONSIBILITIES
A. Citv Staff
The Palm Desert Redevelopment Agency and appropriate city staff are responsible for
ensuring that the home improvement activity meets state guidelines and the City's adopted
guidelines. The City Council or its designee shall:
1. Establish regulations and policies necessary to implement the rehabilitation of
eligible properties.
2. Approve funding limits and payment ofwarrants necessary to fund the rehabilitation
of eligible properties.
3. Approve a process whereby an applicant may appeal a decision that he/she feels is
contrary to the intent of the program.
The HIP will be implemented by PALM DESERT REDEVELOPMENT AGENCY Staff as
follows:
► Housing Manager shall oversee and monitor all administrative and promotional
activities of all program components.
► Housing Rehabilitation Construction Specialist shall implement all program
components including processing application; prepare work write-up; assist applicant
with bid process and selection of contractor; monitor all phases of construction and
assist Code Enforcement with inspections; authorize partial payrnents through the
course of construction. Housing Rehabilitation Construction Specialist sl�all also
distribute program information; contact prospective homeowners and explain
Program and eligibility criteria; assist applicant with preparation of application;
verify applicant's information; and maintain program files.
B. Housin� Commission
1. The Palm Desert Housing Commission shall be comprised of the following
members:
a. A seven-member committee appointed by the City Council to serve as an
advisory committee on housing.
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2. The responsibilities of the Housing Commission with regard to the Home
Improvement Program include the following:
a. Act on matters relating to the Home Improvement Program that do not
require City Council action.
b. Review and make recommendations to the City Council relative to the Home
Improvement Program.
e. Review programmatic and financial status of the program and provide
periodic reports to the City Council and Executive Director.
f. Monitor and evaluate Home Improvement Program on a continuing basis.
XI. APPEAL PROCEDURES
If an applicant is denied program participation or is not satisfied with the assistance provided
to accomplish the home improvement project, an appeal may be filed with the Housing
Commission in accordance with the following procedures:
A. The applicant may file a written notification within ten days of receiving written
notification of application denial or within ten days of notifying staff of the problem.
The applicants' notification shall identify the problem and /or request an appeal.
B. The applicant shall be allowed to present all pertinent facts to the Commission that
may have a bearing on the particular issue to be resolved.
C. The decision of the Housing Commission shall be final unless appealed to the City
Council within ten (10) days after a decision has been rendered by the Housing
Commission.
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EXHIBIT D
INSURANCE ENDORSEMENTS
Palm Desert RDAIHIP1ConsultanYs Agreement 17
872558