HomeMy WebLinkAboutMERCY HOUSE LIVING CENTERS (GREYSTONE HOMES 2005)
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Uf. flL INSuM".ct EXPIRES
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LLER~ OF COUNCIL
DATE: 1/17/'1'
N-2005-142
CONDITIONAL GRANT AGREEMENT
BETWEEN THE CITY OF SANTA ANA AND
MERCY HOUSE TRANSITIONAL LIVING CENTERS
THIS AGREEMENT, made and entered into this Uih day of 0i{~6~ 2005, by and
between THE CITY OF SANTA ANA, CALIFORNIA, a charter city and municipal
corporation, duly organized and existing under the Constitution and laws of the State of
California ("City"), and MERCY HOUSE TRANSITIONAL LIVING CENTERS, a
private nonprofit public benefit corporation (''the Developer") in furtherance of the
regulations issued by the U.S. Department of Housing and Urban Development set forth in
24 CFR Part 574 (the "HOPW A Regulations"), hereby agree as follows:
RECITALS:
A. The Developer is a private nonprofit public benefit corporation having
experience in successfully operating facilities for those living with HIV f AIDS, a shelter
and services for homeless women and their children and single men in the city of Santa
Ana.
B. With the assistance of the City and the Community Redevelopment
Agency of the City of Santa Ana, the Developer constructed two care facilities for low-
and moderate-income persons in need of affordable housing and who are chronically ill
due to the disease of acquired immunodeficiency syndrome, commonly known as AIDS,
(the "Project") located at 814 North Garfield and 818 North Garfield in the city of Santa
Ana, to be operated by the Developer.
C. Due to increases in the cost of construction materials and delays in
construction, Developer incurred additional costs. The City desires to partially fund said
unforeseen costs in return for Developer agreeing to certain terms and conditions.
D.
Regulations.
The parties mutually desire to comply with all applicable HOPW A
NOW, THEREFORE, City agrees to make a grant of HOPW A Funds to Developer in the
amount of $ 10,000 (the "Grant"), subject to the following terms and conditions:
I. Use of Grant.
The Grant shall be used exclusively for the payment of a portion of the unforeseen
construction costs associated with the development of the Project, as evidenced by the
letter from HomeAid Orange County, dated May 20, 2005, attached hereto and
incorporated herein as Exhibit A.
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2 . Use of the Propertv.
The Developer shall use the entire Property as affordable housing with five units
set aside for persons of low or moderate income (as defined in the Community
Redevelopment Law) who are suffering from AIDS for a period of ten (10) years
following Developer's acquisition of the Property from the Agency. The Developer shall
be duly licensed by the State of California to operate such a facility. In the event that a
cure is found for AIDS, the parties hereto shall meet and confer in good faith to agree
upon an alternative use of the Property.
3. Obligation to Refrain from Discrimination.
The Developer covenants and agrees for itself, its subcontractors and every
successor in interest to the Property or any party thereof, that there shall be no
discrimination against or segregation of any person, or group of persons, on account of
sex, marital status, race, color, religion, creed, national origin or ancestry in the sale,
lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall
be Developer itself or any person claiming under or through it, establish or permit any
such practice or practices of discrimination of segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees
of the Property.
4. Minimum Use Period. 24 CFR 574.31O(c).
Developer agrees that the Property will be used as a facility to provide housing or
assistance for individuals with AIDS or related diseases for a period of not less than 10
years. Upon expiration of the ten year period, the rent charged for the following 45 years, in
all ofthe units shall be the same amount as that charged for the Agency assisted units. Each
of the units shall be affordable to households whose incomes do not exceed 50% of the area
median income.
5. Eligible Occupants. 24 CFR 574.3. 24 CFR 573.31O(e).
Occupancy of the Property shall be limited to Eligible Persons and their Families. For the
purpose of this Agreement:
a. "Eligible Person" shall mean a person with AIDS or a related disease who is
a low-income individual, and the person's Family.
b. "Family" shall mean a household composed of two or more related persons.
The term "Family" also includes one or more Eligible Persons who are determined to be
important to their care or well-being, and the surviving member or members of any family
described in this paragraph who were living in a dwelling unit on the Property with the
person with AIDS at the time ofms or her death.
2
The surviving member or members of a Family who were living in a dwelling unit on the
Property at the time of the death of the person with AIDS may continue to occupy the
Property for a period of up to one year following the death of the person with AIDS.
6. Rental Payments. 24 CFR 574.310(d), 24 CFR 574.430.
A. Breakdown of Affordable Gross Starting Rents:
1. For the HOPW A assisted units, the rent charged by Developer shall be the
higher of: (a) 30% of the Family's monthly adjusted income (adjustment
factors include the age of the individual, medical expenses, size offamily
and child care expenses and are described in detail in 24 CFR 813-1020), or
(b) 10% ofthe Family's monthly gross income.
2. lfthe Family is receiving payments from welfare assistance from a public
agency and a part ofthe payments, adjusted in accordance with the Family's
actual housing costs, is specifically designated by the agency to meet the
Family's housing costs, the portion of the payments that is so designated.
3. For the Agency Assisted units, and for the HOPW A assisted units upon
termination of affordability under the HOPW A regulations, maximum
starting rents shall be as follows:
50% units = Studio
1 Bedroom
2 Bedroom
= $672
= $767
= $863
4. Upon expiration of the HOPW A term of affordability, all units shall be
rented at the current Agency rents at such time.
5. City and Developer agree that the above rent levels do not apply to units
occupied by households utilizing a Housing Choice Voucher or HOPW A
Tenant Based Assistance.
B. Number of Assisted Affordable Units:
Pursuant to this Agreement, Developer hereby guarantees that there shall be no less than
five (5) units between the two properties (814 N. Garfield and 818 N. Garfield). The
intent of the City was that there be five (5) assisted units which would float between the
two properties as needed in order to serve low and moderate income families.
C. Household Size: For purpose of calculating rent increases for the affordable
units, the assumed household size for each unit is as follows:
Studio = 2 persons
1 Bedroom = 3 persons
3
2 Bedrooms = 5 persons
D. Rent Escalation: For the purpose of calculating rent increases, for the units at
50%, the annual rent increase shall be the lesser of:
a. II12th of30% of 50% of AMI for the 50% units.
b. Upon termination of the HOPW A affordability term, all nine (9) units shall
remain affordable at 50% of the area median income for the remaining 45 year term
of affordability, with rents starting at the current Agency rents at such time.
Except for rent, Developer shall not charge any fee of any Eligible Person for any housing
or services provided with HOPW A Funds.
7. Suooortive Services. 24 CFR 574.310(a). Developer, either itself or through
qualified service providers in the area, shall make appropriate supportive services available
to the occupants of the Property. Supportive social services include but are not limited to,
health, mental health, assessment, permanent housing placement, drug and alcohol abuse
treatment and counseling, day care, personal assistance, nutritional services, intensive care
when required, and assistance in gaining access to local, State, and Federal government
benefits and services, except that health services may only be provided to individuals with
acquired immunodeficiency syndrome or related diseases and not to family members of
these individuals. For any individual with AIDS or a related disease who requires more
intensive care than can be provided at the Property, Developer shall locate a care provider
who can appropriately care for the individual and refer the individual to that care provider.
8. Housing Oualitv Standards. 24 CFR 574.31 O(b ). The Property shall be
maintained in compliance with the housing quality standards set forth in 24 CFR 574.31O(b)
for the duration ofthe term.
9. Comoliance with Law.
Developer shall not discriminate against persons with AIDS or related diseases
based on an additional handicap of such persons in violation of the Fair Housing Act or
section 504 of the Rehabilitation Act of 1973. Developer also shall comply with the
reasonable modification requirements of the Fair Housing Act, the reasonable
accommodation requirements of the Fair Housing Act and section 504 of the Rehabilitation
Act of 1973 and the Americans with Disabilities Act, and implementing regulations.
10. Conflict of Interest - 24 CFR 574.625. No person who is an employee, agent,
consultant, officer or elected or appointed official of the City of Santa Ana or of Developer,
who exercises or has exercised any fimctions or responsibilities with respect to activities
assisted with HOPW A Funds or who is in a position to participate in a decision making
process or gain inside information with regard to these activities, may obtain a financial
interest or benefit from this Agreement, or have an interest in any contract, subcontract or
agreement with respect hereto, either for himself or herself or those with whom he or she
has family or business ties, during his or her tenure or for one year thereafter.
4
11. All-Risk and Liabilitv Insurance. Developer shall maintain, during the term of this
Agreement, (1) an all-risk property insurance policy insuring the Property in an amount
equal to the full replacement value of the structures on the Property, and (2) a
comprehensive general liability insurance policy with a $1,000,000 limit of liability. The
all-risk policy shall name the City as loss payee and the liability insurance policy shall name
the City as an additional insured. Each policy shall contain a statement of obligation on
behalf of the insurance carrier to notify the City of any material change, cancellation or
termination of coverage at least 30 days in advance of the effective date of such material
change, cancellation or termination. Developer shall deliver a copy of the certificate of
insurance for each policy and the loss payee or additional insured endorsement, as the case
may be, to the City at the close of escrow for the acquisition of the Property. Developer
shall annually deliver a copy of the certificate of insurance for each policy and the loss
payee or additional insured endorsement, as the case may be, to the City, signed by an
authorized agent of the insurance carrier and setting forth the general provisions of
coverage. The copies of the certificate of insurance and endorsements shall be delivered to
the City as follows:
The City of Santa Ana
20 Civic Center Plaza
P.O. Box 1988
Santa Ana, California 92702
Attention: Housing Development Services
Any certificate of insurance required by this Section must be in a form, content and with an
insurance company that is acceptable to the City in its sole discretion.
Any insurance proceeds shall, to the extent applicable, be paid to the additional insured and,
at the option of such additional insured, may be applied to any indebtedness owed to such
insured or released for repair or rebuilding of the Property. Surplus insurance proceeds
thereafter may be disbursed to the Developer.
12. Enforcement. 24 CFR 92.504(c)(l3). This Agreement shall be enforceable by City
in accordance with the terms hereof. Failure by Developer to comply with any material
provision hereof shall constitute a breach. In the event of a breach, City shall provide
written notice to Developer. City may terminate this Agreement in the event Developer fails
to cure any such default within 30 days after notice or in the event that Developer conveys
the Property to a person who does not agree to assume the obligations of Developer under
this Agreement. The foregoing provision does not apply to a transfer of the Property to
HUD or to a transferee ofHUD.
5
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
date and year first above written.
ATTEST:
Patricia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
JOSEPH W. FLETCHER
BY: (1J,;y [ ~
Lisa E. Storck
Assistant City Attorney
THE CITY OF SANTA ANA
~f2-
David N. Ream
City Manager
MERCY HOUSE
TRANSIT NAL LIVING CENTERS
aynes
6
pr ~OMEAID
IlL) ORANGE COUNTY
17744 Sky Park Circle, Suite 170
Irvine, CA 92614
(949) 553-9510 Phone
(949) 224-1855 Fax
E-mail: Info@homeaidoc.org
Website: www.homeaidoc.orl!
SHELTER PROJECTS
Anaheim Inteifallh Shelter
Anchor House
Beacon House
Boys Hope.Girls Hope
Ca.m Teresa J & 1J
E! Modena She/rer
Forni/ie:. Forward
Irvine Farmhouse
FriendshIp Sheller
Laguna Beach
Henderson House
Fullerton/lIterfaUh
New Vista Sheila
Grace House
Habitat for Humanity
HIS. House
HO,M.E.5;. 1&11
Human Options / & If
Hunlingron Youth Shelter
In/en'a/ Hm.l.H! I, fI & 111
Laura's House I
Mary'sShelterl&!1
Mercy House
Regina House
Emmanuel House
San Miguel Res/den('e
Orange County Rescue MiSSIOn
House ojHope
Village of Hope
Hope Family Housing - Buena Park
Orangewood Children's Home I
Prl!ciousLifeShellerl,IJ&1I!
She/fer jor the Homeless
Thoma~ H01He
IV.TLC.
EXHIBIT A
May 20, 2005
Scott Kutner
South coast District Manager
City of Santa Ana - Community Development Agency
P.O. Box 1988, (M-37)
Santa Ana, CA 92702
Dear Scott:
This letter is in follOW-lip to the previous discussions on the need to potentially request the
additional $10,000 offered as a result of the delay in the construction with Greystone Homes
of the multifamily building at the San Miguel Residence. As discussed in the development
team meetings, during the delay, building materials (concrete, lumber, insulation, steel,
drywall) increased significantly. Fortunately, Greystone Homes was able to have a
significant amount of these materials donated and/or reduced in cost.
In working with Cathy Nesheim on the final invoices for the HOPW A budget submissions
we are finding the need for the additional $ I 0,000 to balance the revenue and expenses for
the project. As requested, I have identified three key areas where the project incurred
additional costs due to the delay. They are:
Framing (materials) Budget: $25,000. Actual cost from Grove Lumber: $37,920.
Difference: $12,920
Trusses (materials) Budget: $5,000. Actual cost from James Truss: $10,201. Difference:
$5,201
Windows (materials) Budget: $11,450. Actual cost from San Diego Mirror: $22,699.
Difference $11,249
Total difference: $29,370
I will call you to follow-up on this request and to answer any questions you might have.
Thank you.
Executive Director
cc: Larry Haynes
HomeAid Orange County is a SOl (c)3 non-profit organization established by the leadership of the Orange County Chapter of the
Building Industry Association of Southern California, which builds and renovates shelters for the temporarily homeless in the community.
(Non-profit Tax ID #33~0568079)
n
BIR
.
~COHD CERTIFICATF4F LIABILITY INSURAN~ I DATE (MM/DD/YYYY)
T. 07/27/2005
PRODUCER Schweickert & Company THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
15 Peters Canyon Road HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
Irvine CA 92606 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
INSURERS AFFORDING COVERAGE NAICt#
INSURED Mercy House INSURER" Great American Insurance Company
P.O, Box 1905 INSURER B:
Santa Ana CA 92702 INSURER c:
INSURER 0:
INSURER E:
COVERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMEOABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR
MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH
POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS,
I~~: 1:.'1.'1:~ ~D.n.' POLICY NUMBER POLICY EFFECnve POUCY EXPIRATION LIMITS
~NERAL LIABILITY PAC5373885 05/02/2005 05/02/2006 EACH OCCURRENCE $ 1,000,000
A X X COMMERCIAL GENERAL LIABILITY Sex Abuse Aggregate limit is DAMAGE T9,,~ENTED $ 100,000
I CLAIMS MADE [K] OCCUR $1.000,000 MED EXP A'i'" one ....rson\ $ 5,000
X Professional Liability PERSONAl & ADV INJURY $ 1,000,000
'x Abuse & Molestation No deductible or SIR 2,000,000
GENERAL AGGREGATE $
- 1,000,000
-j[l'L AGG~EnE LIMIT APflS PER: PRODUCTS. CQMP/OP AGO $
X POLICY ~~9,: LOC
.M!TOMOBILE LIABILITY PAC5373885 05/02/2005 05/02/2006 COMBINED SINGLE LIMIT $ 1,000,000
ANY AUTO (Eaaccident)
-
- ALL OWNED AUTOS BODilY INJURY
(Per person) .
SCHEDULED AUTOS
A X X HIRED AUTOS
X BODilY INJURY
A X (Per accident) $
- NON-QWNED AUTOS
- PROPERlY DAMAGE $
(Peraccidenl)
~~.E UABIUTY AUTO ONLY. EAACCIDENT $
ANY AUTO OTHER THAN EAACC $
AUTO ONLY: AGG $
3~SS/UMBRELLA LIABILITY EACH OCCURRENCE .
OCCUR D CLAIMS MADE AGGREGATE $
.
~ ~EOUCTIBLE $
RETENTION $ $
WORKERS COMPENSATION AND APPROVED AS TO FO ~"~l I T'X~Jm~~ I IOJ~-
EMPLOYERS' L1ABIUTY
'-fi~ ' n~ "Iz-. E.L. EACH ACCIDENT $
ANY PROPRIETORI?ARTNERJEXECUTIVE
OFFICER/MEMBER EXCLUDED? EL DISEASE - EA EMPLOYEE $
~~~ describe under E.L. DISEASE. POLICY LIMIT $
OTHER ~a ra lee ~" "
Assistant ~ity Atlorney
DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS
The City of Santa Ana, its officials, employees, representatives, and volunteers are hereby named as Additional Insureds as
respects the operations of or on behalf on Mercy House Transitional Living Center, performed under contract with The City of
.:' ,;:., ,,',1
Santa Ana,' """,
CERTIFICATE HOLDER
CANCELLATION
City of Santa Ana
20 Civic Center Plaza
PO Box 1988
Santa Ana
CA
92702
SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEF~ THE EXPIRATION
DATE THEREOF, mE ISSUING INSURER W1LC~"'O MAlL _ DAYS WRITTEN
NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT,1JOIFAtLDREitrU<TSU'SRALL
-TJII1'CSE"NC"'OIr\.1~T1OfQ'"tJR'1.DtBIIJ1T'OF~N'f'"KIND-D'PCrrTHE1NSD'RER,-TTS"')\UENTS OR
-'REPRDErmmvES.
AUTHORIZED REPRESENTATIVE
ACORD 25 (2001/08)
@ACORD CORPORATION 1988
,25/1~<2005 13:49 FAX
SPECIALTY....BUllAN_SERVI CES
Tal 003/003
..--"',
eG 20 :t.
(Ed. 11 851
,
THIS ENDORSeMENT CHANGES THE POLICY. PLEASE READ ,IT CAREFULLY.
ArlDIT I(WM, INIlIIED--DES I CIlIATED PEUON OR ORGAN I ZA TrCIN
Thia endor.ement modi fie. inauranoe provided under the following: POliCy#PAC537388
CONMeI'lCIAL,GENEPlAL LIABILITY COVERAGE PART fo('MERCY HOUSE, P.O. Box 1905,
Santa An~, CA, 92702.
SCHEDULE
Heme of Person or Organization: The City of Santa Ana, its officials, elTlPloyees,
rep resentati ves, and volunteers are herebY named as Add i tiona 1 I nsu reds as
respects the operations of or on behalf of Mercy House Transitional Living
Center, ,performed undercontract'WHh. The Ci ty of Santa Ana.
II f no entry appa.ra above,' information (.qul red to complete this endoraement
wi II be shown In ,the Oeel.rafions IS .ppl iceble to this sndors..ment.)
WHO IS AN INSURED' (Section III is amended to include 'IS In Insured tha parson
or organization shown in the Sohedule as an insured but only with reapect to
I labll ity Irising out o,f your operations or premises owned by or rentad to
you.
APPROVED ~liWFrilEORM3"O Pti':::;'
, ~~' ~/h
LIl fa Stitt Sheedy
Assistant City Attorney
Copyright, Insurance Services Office, Ine.. 1984
CG 20 26 {Received Time FMaY, 17. 11 :42AM(Pag" I of II