HomeMy WebLinkAboutCA DEPT HOUSING & C.D. 3 - 2005
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A-2005-311
CALHOME PROGRAM
REUSE ACCOUNT and LOAN SERVICING MONITORING AGREEMENT
Standard Agreement Number 05-CaIHome-147
THIS MONITORING AGREEMENT (hereinafter the "Agreement"), dated June 23,2006, for
reference purposes only, is made and entered into by and between the Department of Housing and
Community Development, a public agency of the State of California (the "Department"), and City of
Santa Ana, a local public agency (the "Recipient").
RECITALS
A. The Department and Recipient have entered into Standard Agreement No. 05-CaIHome-147,
dated June 19,2006 (the "Standard Agreement"), whereby the Department has made a
conditional commitment of $500,000.00 (the "Commitment") from the Department's
CalHome program (the "Program") to assist Recipient in the operation of a mortgage
assistance program and an owner-occupied rehabilitation program. The Program is established
by Chapter 6 (commencing with Section 50650 Part 2 of Division 31 of the Health and
Safety Code, the "CalHome Statutes") and is further governed by regulations issued by the
Department as further described in the Standard Agreement (the "Regulations").
B. In executing the Standard Agreement, Recipient has agreed to abide by the provisions of the
CalHome Statutes and the Regulations. The Regulations provide that all revenue generated
from use of CalHome funds, including loan repayments if any, are to be deposited into a local
reuse account and used as provided for in the Regulations and as described in a local reuse
account plan approved by the Department. The Standard Agreement contains additional
requirements pertaining to the reuse account and plan, and specifically requires Recipient to
enter into this Agreement. The Department has reviewed and approved the Reuse Account
Plan and Loan Servicing Plan submitted to the Department and copies are attached. Any
changes to either of these plans must be submitted to the Department for review and approval
prior to implementation.
C. In executing the Standard Agreement, Recipient also has agreed to service loans made with
Program funds in accordance with a loan-servicing plan approved by the Department.
D. The purpose of this Agreement is to set forth Recipient's obligations with respect to long-
term loan servicing and the administration of the local reuse account. A separate agreement
is necessary because Recipient's obligations for loan servicing and administration of its
local reuse account extend beyond the term of the Standard Agreement.
NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Recipient's execution of this Agreement is given in further consideration for receipt of
the Commitment.
2. The term of this Agreement shall commence on the Date of the Standard Agreement
June 19,2006, and remain in full force and effect for a period of twenty (20) years
unless terminated earlier by the Department.
3. Recipient shall administer its local reuse account in conformance with the reuse account
plan approved by the Department. The reuse account plan approved by the Department
Monitoring Agreement (April 2004)
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shall not be modified or amended except by the express written consent of the Recipient
and Department.
4. Recipient shall monitor and service loans made with CalHome funds or funds from the
local reuse account (hereinafter collectively referred to as "CalHome loans") in
conformance with the loan servicing plan approved by the Department. The loan
servicing plan approved by the department shall not be modified or amended except by
the express written consent of the Recipient and Department.
5. Recipient shall permit the Department, its employees, agents, or designees, upon
reasonable notice and at reasonable times, to enter Recipient's premises and inspect any
and all records pertaining to the local reuse account and Recipient's servicing of
CalHome loans. The Department may request any other information that it deems
necessary to monitor compliance with requirements set forth in this Agreement.
Recipient shall promptly provide such information.
6. Recipient shall file an annual report with the Department for the period July 1 through
June 30. This report shall be submitted no later than July 31 of each year. The report
shall provide information on the dollar amount of deposits to and withdrawals from the
local reuse account, and a description of the uses of funds withdrawn, including but not
limited to number and dollar amounts of loans made, expenses of providing homebuyer
education, and dollar amount of fees for loan servicing, loan processing or loan activity.
The annual report shall also provide information on Recipient's loan servicing activities
during the year including, but not limited to costs of loan servicing, loans in default,
remedial actions undertaken, foreclosures, bankruptcies.
7. In the event of a breach or violation of the provisions of this Agreement, the
Department may give written notice to the Recipient thereof by certified mail or any
express delivery service with a delivery receipt addressed to the Recipient at the address
stated in this Agreement. If the breach or violation is not cured to the satisfaction of the
Department within the time period specified in the notice, which shall not be fewer than
30 days, the Department may declare a default and may seek legal remedies including
specific performance of this Agreement, declaratory, and/or injunctive relief, or other
remedies as may be available at law or equity.
8. Recipient agrees and acknowledges that failure to cure a violation to the satisfaction of
the Department within the time allotted shall constitute grounds for denial of eligibility
for future CalHome funding due to lack of organizational capacity, and shall constitute
grounds under any other program administered by the Department for making a
determination that the Recipient lacks the capacity to administer the program funds
being applied for.
9. In the event that the breach or violation involves charges to individual homebuyers in
excess of those permitted under the Standard Agreement or Regulations, the
Department may demand, and seek as an additional remedy, the return of such excess
charges to the affected households.
10. The remedies 'of the Department hereunder are cumulative, and the exercise of one or
more of such remedies shall not be deemed an election of remedies and shall not
preclude the exercise by the Department of anyone or more of its other remedies.
Monitoring Agreement (April 2004)
In witness here fore, the partie-'eby execute and enter into this CalHe Program Reuse Account
and Loan Servicing Monitoring Agreement as of the date set forth above and agree to be bound
hereby:
THE DEPARTMENT
RECIPIENT
Department of Housing and
Community Development,
a public agency t
State of Calit i
City of Santa Ana,
a local public agency
By:
By:
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P ter Solomon
rrogram Manager
CalHome Program
David N. Ream
City Manager
P.O. Box 952054
Sacramento, CA 94252-2054
20 Civic Center Plaza, M-37
Santa Ana, CA 92701
Attachments
A??ROVED AS TO FC.. . ~
U"'- L ~
L.ISA E. STORCK
Assistant City Attorney
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PATRICIA E. HEALY
CLERK OF THE COUNCIL
Monitoring Agreement (April 2004)
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CITY OF SANTA ANA
CALHOME OWNER OCCUPIED REHABILITATION
REUSE ACCOUNT PLAN
All repayments of loan principal and any loan interest derived from loans funded through
the CalHome Owner Occupied Rehabilitation Loan Program will be deposited into the
City of Santa Ana CaIHome Manufactured Housing Loan Program Account No.143-01-
5360. This account will insure that CaIHome funds are separated from other funds, and
that no co-mingling of funds will occur. Any accrued interest earned on CalHome funds
will accrue to this account.
Maintenance of this account will enable the Division to use the City's computerized
accounting system. This system will assist the Division to make all required reports on
the use of CalHome Program funds. It will also ensure timely processing of payment or
other requests relating to these funds.
Funds deposited into this account will be used only for the following approved, eligible
uses of such funds:
1. Loans to individual homeowners as allowed pursuant to CalHome Program
requirements;
2. A CalHome activity delivery fee in accordance with with CaIHome Program
requirements;
3. Up to 5% of funds deposited may be used towards the cost of loan servicing by
the Division or the cost of third-party loan servicing contracted by the Division.
CITY OF SANTA ANA
CALHOME OWNER OCCUPIED REHABILITATION
LOAN SERVICING PLAN
I. Introduction
The Housing and Neighborhood Development Division of the City of Santa Ana
will maintain loan servicing/managing capabilities and procedures that meet all
requirements of the CaIHome Program (the "Program"). All loan servicing
activities will be carried out by City staff or by AmeriNational Corporation acting
under contract to the City of Santa Ana. Servicing fees for work performed by
AmeriNational will be paid for out of existing accounts.
II. Transfer of Loans from Underwriting to Loan Servicing
A. Underwriting will be carried out by AmeriNational Corporation in
accordance with the requirements of the Program. Files will be organized
and maintained in accordance with the Division's existing procedures, and
will include, at a minimum, the following items:
1. Notice of completion of work executed by the owner and the
responsible Rehabilitation Construction Specialist;
2. Copy of a complete set of executed loan documents including the
loan agreement, registration form and promissory note;
3. Copy of escrow instructions and amendments, if applicable;
4. Certified copy of Settlement Statement from escrow;
5. Evidence of coverage for hazard, and if applicable, flood
insurance; and
6. All other underwriting documents.
B. The registration form and promissory note will be secured in the
Di vision's locked, fireproof file cabinet.
III. Impound Accounts
The Division does not anticipate the creation of impound accounts.
IV. Propertv Taxes. Assessments. Registration Fees. As Applicable
- A. The Housing Division does not anticipate making loans to mobile
homeowners who own the lot on which their home is located. Were it to
do so, it would establish and maintain an impound account for the
payment of property taxes through AmeriNational Corporation.
B. The Di vision will use the California Department of Housing and
Community Development's website to determine if owners are paying
registration fees in a timely manner. Owners who fail to do so will be
contacted by Division staff.
V. Hazard Insurance
A. The Division will require that the City be added as an additional
mortgagee for hazard and, if applicable flood insurance policies.
Page 1 of3
B. To ensure that insurance requirements are satisfied for the term of the
loan, the Division will:
1. Utilize its existing tracking/tickler system for reviewing
insurance renewal notices;
2. Follow its existing procedure of funding insurance on behalf of
borrowers who fail to maintain such insurance, and adding the
cost of that insurance to the loan balance.
VI. Demands and Pavoffs
A. In accordance with existing procedure and its contract with AmeriNational
Corporation, the Division will request that demand computations be done
by AmeriNational, but will review those computations for accuracy.
Demands will continue to be approved by the Division before transmittal
to the borrower.
B. The Division will continue to process reconveyances and lien releases in
accordance with City policy and existing procedures. The City will
maintain access to a notary public.
VII. Collection and Receipt of Pavments
A. The Division will continue to follow existing procedures and the terms of
its contract with AmeriNational Corporation to collect and record
borrower payments of principal and interest.
B. The City of Santa Ana and AmeriNational Corporation have and will
maintain the necessary controls and separation of duties to insure the
integrity of their accounting systems,
C. AmeriNational will continue to maintain a readily accessible tracking
system for the loans it services for the City of Santa Ana.
D. AmeriNational will continue to generate yearly statements and 1099s in an
accurate and timely manner.
E. The Division does not anticipate creation of impound accounts for
program borrowers. Should it do so, the Division would act through
AmeriNational to create and maintain such accounts.
F. The Division will create a separate reuse account within the City's
accounting system for payments made on CalHome Program loans. This
will enable the City to track, spend appropriately and report on these
funds.
VIII. Monitoring
The Division will use its existing database and monitoring procedures for the
owner-occupancy requirement of the CalHome Program.
IX. Credit Counseling
The Division will continue to follow existing procedure, and refer homeowners
who require such assistance to established credit counseling services.
Page 2 of 3
X. Defaults and Foreclosures
Should a default and/or foreclosure occur, the Division will follow the policy
adopted by the City Council at its meeting of June 1, 1992. That policy
authorizes the Executive Director of the Community Development Agency to take
any of the following actions to protect the City's interests:
a. Initiating foreclosure proceedings;
b. Bidding at a foreclosure sale in an amount sufficient to protect the
City's security interest;
c. Purchasing a senior note and deed of trust or other lien;
d. Acquiring property through foreclosure or deed in lieu of foreclosure.
The Executive Director may determine not to take any of the above actions when
in the Executive Director's opinion such actions would be financially infeasible or
would be counter-productive to the interests or objective of the City.
XI. Subordinations
In accordance with Section 119 of the CaIHome Program Guidelines, the lien
securing payment of the program loan shall be subject only to liens,
encumbrances and other matters of record reviewed and approved by the Di vision
in the exercise of its responsibility for underwriting the loan. Refinancing of the
first mortgage loan, transfer of the property to another party, or assumption of the
first mortgage loan by another party will call the CaIHome Program loan due and
payable.
Page 3 of 3
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REL:51'21/~
AGREEHENT
THIS AGREEMENT, made and entered into this
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, 1994, by and between UNITED STATES ESCROW,
,a California corporation, ("U.S.E.") and the CITY OF SANTA ANA, a
municipal corporatio:-l of the state of California ("city").
WITNESSETH
Recitals:
A. city is undertaking certain activities in furtherance of
its housing programs.
B. city desires to engage the consulting serv~oes of U.S.E.
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to provide residential loan processing, underwriting, loan'
servicing,
and to render other assistanoe and services in
connection with city housing activities.
c. U.S.E. represents that it is qualified to provide such
services to city.
~~EREFORE, in consideration of their mutual and respective
promises, and subject to the terms and conditions hereinafter set
forth, the parties hereto do hereby agree as follows:
1. REPRESENTATIVES AND NOTICE
A.
For purposes of implementing this Agreement,
the
representative of the city shall be the Executive Director of the
community Development Agency of the city and .her designated
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representatives (the "Director"). Except as ~ay be otht.rwise
stated hereinafter, the Director shall have th~- ~uthority t~act on
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behalf of the city in carrying out the terms of this Agree~ent.
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B. Any notice or instrument required to be glven or
delivered to either party to this Agreement may be delivered by
personal delivery or by depositing the same in the united states
mail, postage prepaid, addressed to:
If to the City:
Executive Director
community Dedevelopment Agency
city of Santa Ana
20 civic Center Plaza M-14
Santa Ana, CA 92701
If to U.S.E.:
U.S. Escrow
8121 E. Florence
Downey, CA 90240
Notice of a change of address shall be delivered in the same manner
as any other notice provided herein.
Notice by mail shall be
effective three days after mailing by the above-described
procedure.
2. SCOPE OF SERVICES OF U.S.E..
U.S.E. agrees to render consultation, loan proce~sing, loan
underwriting, and loan servicing as necessary to the implementation
of the housing programs of the city in the form and to the extent
specified by the Director, when and as needed by the city.
More
specifically, U.S.E. agrees to perform, at its own cost and expense
except for the compensation speoified in this Agreement, the
servioes specified in Exhibit 1, attached hereto and incorporated
herein.
3. TIME OF PERFORMANCE.
All services to be performed by U.S.E. shall commence when and
as direoted by the city and shall be completed within a mutually
2
satisfactory time schedule as appropriate for the required task.
services shall be on an "as-needed" basis upon specific request
issued by the city.
4. COMPENSATION.
(al Except as may otherwise be provided pursuant to
subsection (c) of this section, City agrees. to pay and U.S.E.
agrees to accept compensation based on the schedule provided in
Exhibit 1. The fee schedule may be revised from time to time by
U.S.E. upon 30 days advance written notice to the Director,
provided the fees shall not exceed D.S.E. IS prevailing rates to
other public clients.
(b) subject to section 5 of this Agreement, U.S.E. shall, not
more than once each month, submit an invoice for work performed by
U.S.E. and not yet paid for by city. Each such invoice shall be
aocompanied by a detailed statement of the work performed. Each
proper invoice shall be paid by city within thirty (30) days of
invoice date.
(c) U.S.E. and the Director may, by letter agreement signed
by both, modify any of the terms of subsections (a) through (b) of
.
this Agreement with regard to any specified task or tasks to be
performed by D.S.E. Such modifications may include, but are not
limited to, the establishment of a fixed fee or a maximum amount of
compensation to be paid for any such tasks.
5. DRAW-DOWN ACCOUNT
with regard to any city loan processed by U.S.E. pursuant to
this Agreement which provides for the city to receive a fee from
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the loan proceeds, U.S.L shall, instead of remitting the amount of
such fee to the City, retain the same in a draw-down account.
Compensation due to U.S.E. with regard to such loan shall be drawn
by U.S.E: from said account to the extent funds are available
therein; provided, however, that no funds shall be so withdrawn
without the written approval of the Director as to the amount due
to U.S.E., which approval shall not be unreasonably withheld. Upon
the completion of the funding of the subject loan, the balance, if
any, in the draw-down account shall be remitted by U.S.E. to the
city.
6. INDEMNIFICATION
U.S.E. agrees to indemnify and hold harmless the city and its
officers and employees, from and against any and all loss or
damage, and from any and all suits, actions and claims filed or
brought by any person or persons, arising out of the negligent acts
or omissions of U.S.E. or of its subcontractors or of the officers,
agents, employees of U.S.E. or of its subcontractors in the
performance of this Agreement.
7. INSURANCE
with respect to performanoe of work under this agreement,
U.S.E. shall maintain and shall require its subcontractors, if any,
to maintain insurance as desoribed below:
(1) Workers' compensation insurance with statutory limits,
and employer's liability insurance with limits of not
less than $1,000,000 per accident.
(2) Commercial general liability insurance, or equivalent
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form, with a combined single limit of not less than
$1,000,000 per ocourrence. If such insuranoe contains a
general
aggregate limit,
such
limit shall apply
separately to each project U.S.E. performs for city.
Such insurance shall (a) name the City of Santa Ana and
its officers and employees as additional insureds; and
(b) be primary with respect to insuranoe or self-
insurance programs maintained by the city, and (c)
oontain standard separation of insureds provisions.
U.S.E. shall (a) furnish properly executed oertificates of
insurance to the Director prior to commencement of work under this
Agreement, which certificates shall clearly evidence all coverages
required above and provide that such insurance shall not be
materially ohanged or terminated except on 30 days' prior written
notice to the City; and (b) maintain such i~surance fram the time
work
first commences until oompletion of the
work under this
Agreement; and (c) replace such certificates for policies expiring
prior to completion of work under this Agreement.
The Director may waive or reduce the requirements of this
section if and to the extent the Director determines them to be
unreasonably burdensome to the U.S.E. and not necessary for the
.
protection of the City.
8. TERMINATION OF AGREEMENT
This Agreement may be terminated by the Director upon written
notice of termination to U.S.E.
In such event, U.S.E. shall be
entitled to receive and the city shall pay U.S.E. compensation for
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all services performed by U.S.E. prior to U.S.E. 's receipt of such
notice of termination. As a condition of such payment, the
Director may require U.S.E. to deliver to the City all work product
completed as of such date, and in such case such work product shall
'be the property of the City, and U.S.E. consents to the city's use
thereof for such purposes as the City deems appropriate.
9., MISCELLANEOUS PROVISIONS.
A. U.S.E. covenants that it presently has no interest, and
shall not have any interest, direct or indirect, 'which would
conflict in any manner with the performance of services required
hereunder.
B. By signing this Agreement, U.S.E. certifies that it does
not discriminate in hiring on the basis of race, color, creed,
religion sex, age, marital status, national origin, ancestry,
physical handicap or medical conditions.
C. U.S.E. shall not assign or transfer any interest in this
Agreement, whether by assignment or novation, without the prior
written consent of the Director; provided, however, that claims for
_money due or to beoome due from the city under this Agreement may
be assigned to a bank, trust company or other financial
institution, or to a trustee in bankruptcy, without such approval.
Notice of any such assignment or transfer shall be promptly
furnished to the Director.
D. U.S.E. agrees that U.S.E. is an independent contractor
and not an employee of the city and all U.S.E. 's personnel shall be
employees or subcontractors of U. S. E. and not employees of the
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City. U.S.E. shall pay all salaries and wages, employer's social
security taxes, unemployment insurance and similar taxes relating
to employees and shall be responsible for all applicable
withholding taxes.
E. U.S.E. shall not subcontract any of the se:-vices required
hereunder without written approval of the Director.
F. U.S.E. reserves the right to effect changes in form or
name, including, but not limited to change? from individual
proprietorship, partnership or corporation to any other such form
of organization, and likewise reserves the right to add, substitute
or delete stockholders, partners, associates and employees. This
Agreement shall continue in effect with regard to D.S.E. under its
new form or name without the necessity of any amendment to this
Agreement. The Director shall be promptly notified of any such
change in form or name.
G. Nothing in this Agreement shall be construed to limit the
city's ability to have any of the services which are the subject of
this Agreement performed by city personnel or by other consultants
retained by the city.
H. The invalidity in whole or in part of any provision of
this Agreement shall not void or affeot the validity of any other
provision of this Agreement.
I. This Agreement shall be governed by and construed in
accordance with the laws of the state of California.
J. This Agreement supersedes any and all other agreements
either oral or in writing between the parties hereto with respect
7
to the services set forth in Section 2 of this Agreement and
contains all the covenants and agreements between the parties with
respect thereto. Each party to this Agreement acknowledges that no
representation, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf
of any party, with respect to such servioes, which are not embodied
herein, and that no amendment hereto shall be effective unless set
forth in writing, approved by the governing board of the city, and
signed by both the city and D.S.E.
IN WITNESS WHEREOF the parties hereto have executed this
Agreement the date and year first above written.
ATTEST:
CITY OF SANTA ANA
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the counci,",-
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Mayor
APPROVED AS TO FORM:
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Edward . 0 er
city Attorney
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COMPENSATION
United States Escrow respectfully submits the following fees for
the Agency's consideration:
A. LOAN AND REBATE GENERAL INFORMATION AND SCREENING
Applicant Screening:
$20.00 to $45.00 per questionnaire (includes phone
explanati on of programs and complete screen
questionnaire, and mailing of applications). Fee to be
negotiated by USE and City, based on final work to be
done.
Application Intake and Completion:
$75.00 per completed application (includes compiling and
completing application and borrower support
documentation) .
For a file in which a preliminary Risk Arialysis (PRA) is
performed but which is not approved for loan processing: a
fee of $145.00.
B. SINGLE FAMILY LOAN PROCESSING
For each
performed:
loan for which processing and
$285.00 plus outside costs.
underwriting
are
Loan Cancellation Fee: one half of fee plus outside oosts if
loan is cancelled after delivery of Preliminary Risk Analysis
to Agency. Total fee plus outside costs is charged if loan
is canoelled after delivery of full un0erwriting analysis to
Agency.
*Outside oosts include, but are not limited to, title, credit,
and appraisal. These oosts are passed through from outside
vendors and are subjeot to marketplace increases.
C. MULTI-FAMILY, COMMERCIAL. AND ECONOMIC DEVELOPMENT LOAN
PROCESSING AND UNDERWRITING
Employed Individual or
Married Couple/Sole
Proprietor
$400 plus outside costs*
Corporation
$450 plus outside costs*
Partnership
$650 plus outside costs*
Limited partnership
$1000 plus outside costs*
,'.
Loan Cancellation Fee: one half of fee plus outside costs if
loan is cancelled after delivery of Preliminary Risk Analysis
to Agency. Total fee plus outside costs is charged if loan
is cancelled after delivery of full underwriting analysis.
*Outside costs include, but are not limited to, title, credit,
and appraisal, These costs are passed through from outside
vendors and are subject to marketplace increases.
D. LOAN DOCUMENT PREPARATION
For each project for which documents are prepared:
plus outside costs including, but not limited to,
credit, and recording fees.
$135.00
title,
For each project for which title and credit reports have been
supplied by U.S. Escrow, but which is thereafter cancelled
without performance of loan document preparation: a
cancellation fee of $37.50 plus outside costs for title and
credit reports.
For each project for which documents have been supplied by
U.S. Escrow, but which is thereafter canoelled without
performance of disbursement services: a oancellation fee of
$75.00 plus outside costs for title and credit reports.
A fee of $15.00 will be charged to Agency for each separate
document to be redrawn due to actions by the Agency.
E. CONSTRUCTION FUNDS DISBURSEMENT SERVICES
For each project for which escrow disbursement services are
performed: $75.00 plus recording fees.
For eaoh project for which escrow disbursement services are
performed that require from 2 to a ~aximum of 4 deposits, a
. fee of $125.00 ph:s $25.00 ,pee each deposit beyond the
original deposit and project opening.
USE shall charge an additional fee of $50.00 for any project
requiring this service whose total project amount is less than
$100,000.
F. GRANT DISBURSEMENT ESCROW
For each project which involves disbursement of grant escrows:
$90.00 per nine transactions.
G.
CASH MANAGEMENT SERVICES
RENTAL REHABILITATION (SECTION 17)
For projects requiring Rental Rehabilitation services: a fee
of 1/2 of 1% of the total amount escrowed with a minimum fee
of $250.00 and a maximum fee of $1,000.00.
H.
CASH MANAGEMENT SERVICES
HOME PROGRAM
SERVICE LEVELS
LEVEL 1: A fee of 1/2 of 1% of the total project amount with
a minimum fee of $225.00. USE does not supply HOME
Program Management Reports.
LEVEL 2:
a)
All funds deposited at opening of individual
project escrow except HOME Treasury: a fee of
3/4 of 1% of the total project amount with a
minimum fee of $225.00.
b) All funds deposited at opening of individual
project escrow except HOME Treasury and one
other federal funding source: a fee of 1% of
the total project amount with a minimum fee of
$250.00.
c) All funds deposited at opening of individual
project escrow except HOME Treasury and two
other federal funding sources: a fee of 1-
1/4% of the total project: amount with a minimum
fee of $275.00.
LEVEL 3: a)
Fixed ranking of funding sources with each
source used until exhausted: a fee of 1-1/4%
of the total project amount with a minimum fee
of $325.00.
b) Fixed peroentage of multiple funding sources
used throughout eaoh project: a fee of 1-1/2%
of the total project amount with a minimum fee
of $350.00.
c) On demand, cheok by >oheck, a. .fee of 1-3/4% of
the total project amount with a minimum fee of
$375.00.
Tenant-Based Rental Assistance in whioh project tenants are
to receive monthly payment subsidy checks: a fee of $150.00
for projects with 1-4 units plus a fee of $12.00 per check
issued. For projects in .which there are more than 4 units
receiving tenant-based rental assistanoe, a fee of $250.00
plus $10.00 per check issued.
For maintenance of HOME direct depository account, a fee of
$84.00 per month will be charged.
For re-issuing of checks/stoP payment of checks due to actions
of the City or payee, a fee of $25.00 per check will be
charged.
Discounts on large scale projects for Levels 2 through 4:
a) For project amounts between $100,000 and $250,000:
a 30% discount applied on the standard rate on the
amount over $100,000.
b) For project amounts between $250,'000 and $500,000:
a 40% discount applied on the standard rate on the
amount over $250,000.
c) For projects over $500,000: a 50% discount applied
on the standard rate on the amount over $500,000.
I. LOAN PORTFOLIO MANAGEMENT (AqenoV shall choose 1 of 2 ootions)
1) Amortized: One time loan set-up fee of $25.00 per loan
plus 1/24 of 1% per month of original principal loan
amount per month with a minimum fee of $6.75 and maximum
fee of $15.25. Impounding of taxes and insurance is
included with service at no additional cost except for
one time ta:: service fee of $55.00. Monitoring of taxes
and insurance is included with service at no additional
cost except a one time tax service fee of $55.00.
2) A one time set-up fee of $25.00 per loan plus ]/8 of 1%
of the City's total current portfolio principal balance
with no minimum or maximum rate per loan.
J. LOAN FORBEARANCE SERVICES
A one time charge of $150.00 for each loan for which USE
provides forbearance services.
.,
K. FORECLOSURE
A one time charge of $150.00 to transfer note ownership and
prepare documents to commenoe foreclosure proceedings and to
manage the foreolosure process on behalf of the Agency.
In addition to the above foreclosure servioe fee, USE shall
be reimbursed for other costs incurred in the foreclosure
process such as, but not limited to, conventional legal fees,
sheriffs' deposits, bankruptcy closing costs, fees set by law,
etc. These fees will be aocurately quoted on a oase-by-case
basis upon request by the Agency and they will be within all
applicable statutory limits.
No cash deposit will be required from the Agency at the time
foreclosuce proceedings are instituted, pursuant to an
executed agreement. However, USE's fee for services rendered,
and its costs and other charges will be due and payable, by
the Borrower upon reinstatement (or full payment of any Deed
of Trust or Mortgage under foreclosure), pursuant to an
agreement; or payable by the Agency at the time of publication
of any Notice of Trustee's Sale of the real property
encumbered by said Deed of Trust or Mortgage; or payable by
the Agency five (5) months from the date foreclosure
proceedings are instituted in connection with such Deed of
Trust or Mortgage, whichever event shall sooner occur.
L. DEFERRED LOAN COLLECTION SERVICES
Deferred: One time charge of $60.00 per loan for the life of
the loan.
Deferred with monitoring of taxes and insurance:
charge of $105.00 per loan for the life of the loan
time tax service fee of $55.00.
One time
plus a one
Deferred with monitoring of taxes, insuranoe, and title: One
time charge of $125.00 per loan for the life of the loan plus
a one time tax service and title protection fee of $54.00.
Deferred with impounding of taxes and insurance:
cha~ge of $60.00 plus a one time tax service fee
plus $6.50 per month per loan.
One time
of $55.00
USE will charge a fee of $10.00 for each tickler notification.
USE will oharge a flat fee of $8.50 per payment for receiving
oocasional payments on deferred loans.
M. LOAN INCOME REVIEW AND SITE VISIT
a)
b)
c)
Income Reoertification:
Property Condition Profile:
Affidavit of Owr.er
$100.00 per file
$ 65.00 per file
$ 4~.00 per file
N. COMPUTER LINKAGE PACKAGE
Monthly maintenance fee of $120.00 per month plus $.65/minute;
minimum of 3 minutes per access.
O. DAVIS BACON WAGE COMPLIANCE MONITORING
For each project, a fee of 1/2 of 1% of the total project
amount with a minimum fee of $2,350.00 Fee will be invoiced
in the following manner: at the beginning of construction,
1/2 of fee; at construction midway point, remaining 1/2 of
fee. ,Invoices payable upon receipt. Fee may also be added
to projects as a soft cost and deducted from escrow, at the
Agency's discretion,
Employee site interviews are for monthly site visits up to the
following max~mums:
a. for a project $0 - $149,999, a maximum of 6 months
b. for a project $150,000 - $649,99Q, a maximum of 12
months
c. for pro jects $650,000 and over, a max~mum of 18
months
Each additional inspection, if requested, will be $200.00
each.
The fee stated is for standard disbursement projects.
Projects involving section 17 Rental Rehab, section 312, or
HOME funds will require the additional cash management service
fee which should be added to the stated Davis-Bacon fee.
P.
TECHNICAL CONSULTATION
I&D-
a fee of $100.00 per
For technioal consultation services,
hour.
Q. MORTGAGE ASSISTANCE APPLICATION UNDERWRITING
1) Underwritinq Agency direct deferred loans (per loan):
$285.00.
Loan canoellation fees will be 1/2 of the above fees plus
outside costs if loan is cancelled prior to delivery of
full underwriting analysis to Agency.
2)
Loan Document Preparation:
$150.00 plus outside costs.
Cancellation fees: $37.50 if outside services are
ordered without the preparatio~ of loan documents; $75.00
if loan documents are prepared and loan is canoelled.
R. REAL PROPERTY ESCROW
For real property escrow services: $ 200.00 per side plus
$2.00 per thousand per side of escrow.
S. PROGRAM PERFORMANCE SUMMARIES
$50.00 to $100.00 per report, depending on requirements of
Agency.
T. MONITORING SERVICES (All fees quoted are "per occurrence")
1) MUlti-Family Mortgage Revenue Bond, LIHTC, TI, and HOME
Rental projects)
a) Service Level One:
$50.00 per project plus $25.00 per low income unit.
b) Servioe Level Two - Complete HOME HonitQring:
$175.00 per project plus $50.00 per low. income unit.
c) Provide On-site Inspection (minimum 20 projects):
$$45.00 per low income unit.
2) Deferred Loan Monitoring Services
a)
b)
c)
Income Recertifioation:
Property Condition Profile:
Affidavit of Owner
$125.00 per file
$ 40.00 pe.c file
$ 35.00 per file
* * * * * *
:
STATE OF CALIFORNIA
STANDARD AGREEMENT
STD 213 (Rev 06/03)
c!NTRACTOR'S COpy e
AGREEMENT NUMBER
OS-CaIHome-147
REGISTRATION NUMBER
1. This Agreement is entered into between the State Agency and the Contractor named below:
STATE AGENCY'S NAME
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
CONTRACTOR'S NAME
City of Santa Ana
2. The term of this
Agreement is:
Upon HCD Approval
through
March 23, 2009
3. The maximum amount
of this Agreement is: $ 500,000.00
4. The parties agree to comply with the terms and conditions of the following exhibits which are by this reference made a
part of the Agreement.
Exhibit B - Budget Detail and Payment Provisions
2 page(s)
1 page(s)
5 page(s)
6 page(s)
Exhibit A - Authority, Purpose and Scope of Work
Exhibit C - HCD General Terms and Conditions
Exhibit D - Dept. of General Services - General Terms and Conditions
TOTAL NUMBER OF PAGES ATTACHED:
14 pages
L~... ::lOVED AS TO F~ .
~~-L.
IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.
CONTRACTOR
Californ~ftJW11Wf(!Jt!9f 1!iflfflY~t 'I
Services Use Only
CONTRACTOR'S NAME (if other than an individual, state whether a corporation, partnership, etc.)
City of Santa Ana
DATE SI NED(Do nnllype)
W 5 DCp'
NAME AND TITLE OF PERSON SIGNING Executive
Patricia C. Whitaker Communit
ADDRESS
20 Civic Center Plaza, M-37
Santa Ana, CA 92701
JUN 1 9 2006
STATE OF CALIFORNIA
AGENCY NAME
Susan Phillips, Manager, Budgets and Contracts Branch
ADDRESS
1800 Third Street, Room 350, Sacramento, CA 95814
~ Exempt from: Department of
General Services
Approval
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EXHIBIT A
AUTHORITY, PURPOSE AND SCOPE OF WORK
(Owner-Occupied Rehabilitation)
Section 1 - Authoritv & Purpose
This Standard Agreement (hereinafter "Agreement") will provide official notification of a
conditional funding commitment under the CalHome Program (the "Program") administered by
the State Department of Housing and Community Development (variously, the "Department," or
the "State") as authorized by and pursuant to Chapter 6 of Part 2 of Division 31 of the Health
and Safety Code, commencing with Section 50650 (the "CalHome statutes") and regulations
found in Title 25 of the California Code of Regulation, Division 1, Chapter 7, Subchapter 9
commencing with Section 7715 (the "CalHome Regulations"), all as amended and in effect from
time to time. In accepting this conditional funding commitment, the Contractor agrees to comply
with: (a) the CalHome statutes; (b) the CalHome Regulations; (c) the terms and conditions of
the CalHome Program General Notice of Funding Availability dated August 10, 2005 (the
"NOFA"), which NOFA is incorporated herein by this reference; (d) the representations
contained in the Contractor's application made in response to the NOFA (the "Application"); and
(e) the terms and conditions of this Agreement.
Section 2 - Scope of Work
A. Contractor shall perform the Work as described in the Application, which is on file at the
Department of Housing and Community Development, Division of Community Affairs,
1800 Third Street, Room 390, Sacramento, California and which is incorporated herein
by reference. All written materials or alterations submitted as addenda to the original
Application and which are approved in writing by the CalHome Program Manager or
higher Departmental official, as appropriate, are hereby incorporated as part of the
Application. In the event of a conflict between the description of the Work in the
Application and as described in this Exhibit A, the description in this Exhibit A shall
prevail. The State reserves the right to require the Contractor to modify any or all parts
of the Application in order to comply with the CalHome Statutes or Regulations. The
State reserves the right to review and approve all Work to be performed by the
Contractor in relation to this Agreement. Any proposed amendment to the Work must be
submitted in writing for review and approval by the State. Any approval shall not be
presumed unless such approval is made by the State in writing.
B. The Work generally shall consist of:
Administration of an owner-occupied rehabilitation program.
Section 3 - Amount of Aqreement
Owner-Occupied Rehabilitation: $500,000.00
Section 4 - Completion Dates
A. All funds remaining unexpended as of Januarv 23. 2009, shall be disencumbered.
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EXHIBIT A
B. This Agreement shall expire on March 23. 2009.
Section 5 - State
The coordinator of this Agreement for the State is the Program Manager of the CalHome
Program, Division of Community Affairs, or the Program Manager's designee. Unless otherwise
informed, any notice, report, or other communication required by this Agreement shall be mailed
by first class mail to the State Coordinator at the following address:
State CalHome Program Manager
Department of Housing and Community Development
Division of Community Affairs
P. O. Box 952054, MS 390-2
Sacramento, California 94252-2054
Phone: (916) 445-3086
Section 6 - Contractor Contract Coordinator
The Contractor's contact for this Agreement is listed below. Unless otherwise informed, any
notice, report, or other communication required by this Agreement shall be mailed by first class
mail to the contact at the following address:
Contractor: City of Santa Ana
Name: Shelly Landry-Bayle, Housing and Neighborhood
Development Manager
Phone: 714-667-2287 Email:
Fax: 714-667-2225 Fax:
Address:
20 Civic Center Plaza, M-37
Santa Ana, CA 92701
Section 7 - Special Conditions
None
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EXHIBIT B
BUDGET DETAIL AND PAYMENT PROVISIONS
(Owner-Occupied Rehabilitation)
A. Payments to Contractor for mortgage assistance or owner-occupied rehabilitation shall
be on an advance or reimbursement basis. Upon the effective date of this Agreement,
and upon submission of the required draw request form(s) and submission of any State-
required documentation, Contractor may obtain an advance of funds in an amount not to
exceed 25% of the total amount provided under this Agreement. As these funds are used
for eligible expenditures, the Contractor shall forward all required documentation to
Contract Manager. When two-thirds (2/3) of the initial disbursement of CalHome Program
funds on hand has been expended, the Contractor may request the next advance of 25%
of the total amount provided under this Agreement. This procedure of advances shall
continue until the total amount provided under this Agreement is expended. This system
of advances is subject to the requirements of Exhibit A, Section 4A, Completion Dates, of
this Agreement.
B. The State reserves the right to request copies of any documentation at any time prior to,
or after the processing of any draw request.
C. As a condition of the first draw of funds, Contractor shall submit for State review and
approval:
1. (a) program guidelines describing the Contractor's owner-occupied rehabilitation
program per CalHome Program Regulations Section 7735(a); (b) written
procedures for long-term loan servicing; (c) a copy of Contractor's Reuse
Account plan; (d) and an executed 20-year Monitoring Agreement on a form to be
provided by the State.
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EXHIBIT C
HCD GENERAL TERMS AND CONDITIONS
1. Effective Date and Commencement of Work
This Agreement is effective upon approval bv the State which is the date stamped by
the Department of Housing and Community Development (HCD) in the lower right hand
corner of page one of the Agreement. The Contractor agrees that Work shall not
commence, nor any costs to be paid with CalHome funds be incurred or obligated by
any party prior to execution of this Agreement by the State, completion of all required
environmental clearances, and compliance with the applicable conditions of this
Agreement. The Contractor agrees that the Work shall be completed in accordance
with the date specified in Exhibit A, Section 4A. This Agreement shall terminate on the
date set forth in Exhibit A, Section 4C.
2. Amount and Form of Fundinq
A. For the purposes of performing the Work, the State agrees to provide to the
Contractor the amount specified in Exhibit A, Section 3; Amount of Agreement.
In no instance shall the State be liable for any costs for the Work in excess of
this amount, nor for any unauthorized or ineligible costs.
B. The State shall provide funding in the following forms:
1. As a grant, if the Work consists of a program to provide: loans to first-
time homebuyers for down payment assistance; or loans to owner-
occupants for rehabilitation.
2. As a secured development loan that may convert to a grant, if the Work
consists of a new construction homeownership project.
3. As a secured permanent-only loan if the Work consists of assistance to a
mutual housing or cooperative development.
3. Permitted Uses of Funds
The Contractor shall use funds provided pursuant to this Agreement only for
performance of the Work, and consistent with the requirements of the NOFA and the
CalHome Regulations.
4. Termination and Breach
A. In the event of the Contractor's failure to satisfy or comply with any term or
condition in this Agreement or with respect to the loan documents, if any,
specified in Exhibit B; Budget Detail and Payment Provisions, within the time and
in the manner specified, after written notice to the Contractor by State specifying:
(1) the breach; (2) the action required to cure such breach; and (3) a date, not
less than fifteen (15) days from the date of receipt of such notice by the
Contractor, by which such breach must be cured, the State may withdraw its
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EXHIBIT C
conditional commitment or the balance thereof and be released from any further
obligation to the Contractor after notifying the Contractor in writing of the State's
intention to terminate this Agreement.
B. In the event of such breach the State may also take such action or seek such
remedies as are provided in any other executed loan documents.
C. Unless otherwise approved by the State, upon termination of this Agreement, the
Contractor shall complete all the Work in progress and terminate any other
activities that were to be paid for with Program funds. Any unexpended funds
received by the Contractor shall be returned to the State within 15 days of the
notice of termination.
5. Insurance
A. Prior to the disbursement of funds under this Agreement and thereafter during
the term hereof, the Contractor shall obtain, carry, and maintain in force,
comprehensive general liability insurance in the amount of not less than one
million dollars ($1,000,000) for injury to or death of one person, one million
dollars ($1,000,000) for injury to or death of more than one person in one
accident, and adequate property damage insurance. All insurance carriers must
meet the requirements of the State of California Department of Insurance.
B. Upon demonstration of cause satisfactory to the State, the requirements of
subparagraph uB" may be satisfied by the Contractor providing evidence of an
alternative to conventional insurance sufficient to provide equivalent protection.
6. Inspections
A. The Contractor shall inspect any Work performed hereunder to ensure that the
Work is being and has been performed in accordance with the applicable
federal, State and/or local requirements, any applicable construction contract,
and this Agreement. The Contractor agrees to require that all Work found by
such inspections not to conform to the applicable requirements be corrected, and
to withhold payment to the construction contractor or subcontractor until it is so
corrected.
B. The State reserves the right to inspect any site upon which the Work is being
performed; and the Contractor shall cause to be inserted in any subcontract for
performance of the Work a provision permitting the State or its agents the right
to inspect the Work-site at any reasonable time.
7. Siqns
If assistance is provided as a secured development loan, any signs placed on the
Property during construction which identify the sponsor of, or lenders to, the
development shall include the Department as one of the entities providing financing to
the development. During the construction period the Department may place one or
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EXHIBIT C
more signs on the Property stating that it is providing financing for the development.
8. Reportinq Requirements
A. During the term of this Agreement, and no later than 30 days after the end of
each calendar quarter, the Contractor shall submit to the State a performance
report on a form provided by the State.
B. During the term of this Agreement, and no later than 30 days after June 30th of
each year, the Contractor shall submit, upon request of the State, an annual
performance report on a form provided by the State.
C. During the term of this Agreement, the State reserves the right to request other
forms or reports as may be necessary or required.
9. Audit/Retention and Inspection of Records
A. The Contractor shall retain all books and records pertaining to performance of
this Agreement for a minimum of three years after the expiration of the
Agreement and any and all amendments hereto, or for three years after the
conclusion or resolution of any and all audits or litigation relevant to this
Agreement, whichever is later.
B. The Contractor shall adequately document each transaction to permit the
determination, through an audit if requested by the State, of the accuracy of the
records and the allowability of the expenditures paid in whole or in part, with
CalHome funds. If the allowability of an expenditure cannot be determined
because records or documentation are inadequate, the questionable expenditure
will be disallowed. The Contractor shall reimburse the State for the amount of
any disallowed expenditures of the Contractor or its agents or subcontractors.
Determination by the State of allowability of any expenditure shall be final.
C. The State does not require a routine audit of the Contractor's books; provided,
however, the Contractor shall comply with any reasonable demand by the State
for an audit of the Contractor's activities related to this Agreement. If the State
provides the auditor, the State will pay for the cost of the audit; otherwise, the
Contractor shall pay the cost of the audit.
D. Contractor agrees that the State or its delegatee will have the right to review,
obtain, and copy all records pertaining to performance of this Agreement.
Contractor agrees to provide the State or its delegatee with any relevant
information requested and shall permit the State or its delegatee access to its
premises, upon reasonable notice, during normal business hours for the purpose
of interviewing employees and inspecting and copying such books, records,
accounts, and other material that may be relevant to a matter under investigation
for the purpose of determining compliance with Government Code section
8546.7. Contractor further agrees to maintain such records for a period of three
(3) years after final payment under the contract.
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EXHIBIT C
10. Monitorinq Aqreement
Upon the State's approval of Recipient's Loan Servicing Plan and CalHome Reuse
Account Plan, the Recipient shall enter into a twenty (20) year CalHome Program Reuse
Account Monitoring Agreement (Monitoring Agreement). This Monitoring Agreement
allows the State to: obtain necessary reporting information; review and approve changes
to Loan Servicing Procedures or CalHome Reuse Account Plans; and to perform
monitoring of CalHome program operations and accounts.
11. Compliance with Laws and Reaulations
Contractor agrees that at all times its acts with respect to the CalHome Program,
CalHome activities, and use of funds committed herein shall be in conformity with all
laws applicable to the CalHome Program including those of the State of California, all
federal laws, all local rules or ordinances, all requirements of the CalHome Program
including the CalHome statutes and Regulations.
12. Disencumbrance of Funds
Funds authorized by this Agreement may be disencumbered in whole or in part if funds
are not expended within the time frames specified in Exhibit A, Section 4.A; Completion
Dates.
13. Waiver
No waiver of any breach of this Agreement shall be held to be a waiver of any prior or
subsequent breach. Any remedy afforded in this Agreement shall be taken and
construed as cumulative, and in addition to, any other remedy provided therein or by
law. The failure of the State to enforce at any time the provisions of this Agreement or
to require at any time performance by the Contractor of such provisions shall in no way
be construed to be a waiver of such provisions nor to affect the validity of this
Agreement or the right of the State to enforce these provisions.
14. Litiqation
A. If any provision of this Agreement, or underlying obligation, is held invalid by a
court of competent jurisdiction, such invalidity, at the sole discretion of the State,
shall not affect any other provisions of this Agreement and the remainder of this
Agreement shall remain in full force and effect. Therefore, the provisions of this
Agreement are, and shall be, deemed severable.
B. The Contractor shall notify the State immediately of any claim or action
undertaken by or against it which affects or may affect this Agreement or the
State, and shall take such action with respect to the claim or action as is
consistent with the terms of this Agreement and the interests of the State.
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EXHIBIT C
15. Prevailinq Waqes
A. Where funds provided through this Agreement are used for construction work, or
in support of construction work, the Contractor shall ensure that the
requirements of Chapter 1 (commencing with section 1720) of Part 7 of the
Labor Code (pertaining to the payment of prevailing wages and administered by
the California Department of Industrial Relations) are met.
B. For the purposes of this requirement "construction work" includes, but is not
limited to rehabilitation, alteration, demolition, installation or repair done under
contract and paid for, in whole or in part, through this Agreement. All
construction work shall be done through the use of a written contract with a
properly licensed building contractor incorporating these requirements (the
"construction contract"). Where the construction contract will be between the
Contractor and a licensed building contractor, the Contractor shall serve as the
"awarding body" as that term is defined in the Labor Code. Where the
Contractor will provide funds to a third party that will enter into the construction
contract with a licensed building contractor, the third party shall serve as the
"awarding body." The construction contract and any amendments thereto shall
be subject to the prior written approval of the State. Prior to any disbursement of
funds, including but not limited to release of any final retention payment, the
State may require a certification from the awarding body that prevailing wages
have been or will be paid when required by Section 1720 of the Labor Code.
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EXHIBIT D
State of California
General Terms and Conditions
1. Approval
This Agreement is of no force and effect until signed by both parties.
2. Amendment
No amendment or variation of the terms of this Agreement shall be valid unless made in
writing and signed by the parties. No oral understanding or Agreement not incorporated in the
Agreement is binding on any of the parties.
3. AssiQnment
This Agreement is not assignable by the Contractor, either in whole or in part, without the
consent of the State in the form of a formal written amendment.
4. Indemnification
Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and
employees from any and all claims and losses accruing or resulting to any and all contractors,
subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or
supplying work services, materials or supplies in connection with the performance of this
Agreement, and from any and all claims and losses accruing or resulting to any person, firm or
corporation who may be injured or damaged by the Contractor in the performance of this
Ag reement.
5. Disputes
Contractor shall continue with the responsibilities under this Agreement during any dispute.
6. Termination for Cause
The State may terminate this Agreement and be relieved of any payments should the
Contractor fail to perform the requirements of this Agreement at the time and in the manner
herein provided. [See Exhibit C for additional breach, notice and provisions.]
7. Independent Contractor
Contractor, and the agents and employees of Contractor, in the performance of this
Agreement, shall act in an independent capacity and not as officers or employees or agents of
the State.
8. Non-Discrimination Clause
A. During the performance of this Agreement, Contractor and its subcontractors shall not
unlawfully discriminate, harass, or allow harassment against any employee or applicant
for employment because of sex, race, color, ancestry, religious creed, national origin,
physical disability (including HIV and AIDS), mental disability, medical condition
(cancer), age (over 40), marital status, and denial of family care leave. Contractor and
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EXHIBIT D
subcontractors shall insure that the evaluation and treatment of their employees and
applicants for employment are free from such discrimination and harassment.
Contractor and subcontractors shall comply with the provisions of the Fair Employment
and Housing Act (Government Code Section 12990 (a-f) et seq.) and the applicable
regulations promulgated thereunder (California Code of Regulations, Title 2, Section
7285 et seq.). The applicable regulations of the Fair Employment and Housing
Commission implementing Government Code Section 12990 (a-f), set forth in Chapter
5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this
Agreement by reference and made a part hereof as if set forth in full. Contractor and its
subcontractors shall give written notice of their obligations under this clause to labor
organizations with which they have a collective bargaining or other Agreement.
B. Contractor shall include the nondiscrimination and compliance provisions of this clause
in all subcontracts to perform work under the Agreement.
9. Timeliness
Time is of the essence in this Agreement.
10. GoverninQ Law
This Agreement is governed by and shall be interpreted in accordance with the laws of the
State of California.
11. Child Support Compliance Act
If this Agreement is in excess of $100,000, by executing this Agreement, Contractor
acknowledges and agrees to the following:
A. Contractor recognizes the importance of child and family support obligations and shall
fully comply with all applicable state and federal laws relating to child and family
support enforcement, including, but not limited to, disclosure of information and
compliance with earnings assignment orders, as provided in Chapter 8 (commencing
with section 5200) of Part 5 of Division 9 of the Family Code; and
B. Contractor, to the best of its knowledge is fully complying with the earnings assignment
orders of all employees and is providing the names of all new employees to the New
Hire Registry maintained by the California Employment Development Department.
12. Severability
In the event that any provision of this Agreement is unenforceable or held to be unenforceable,
then the parties agree that all other provisions of this Agreement have force and effect and
shall not be affected thereby.
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EXHIBIT D
13. DruQ-Free Workplace Requirements
Contractor shall comply with the requirements of the Drug-Free Workplace Act of 1990
(Government Code Section 8350 et seq.) and shall provide a drug-free workplace by taking
the following actions:
A. Publish a statement notifying employees that unlawful manufacture, distribution,
dispensation, possession, or use of a controlled substance is prohibited and specifying
actions to be taken against employees for violations.
B. Establish a Drug-Free Awareness Program to inform employees about: (1) the dangers
of drug abuse in the workplace; (2) the Contractor's policy of maintaining a drug-free
workplace; (3) any available counseling, rehabilitation and employee assistance
programs; and (4) penalties that may be imposed upon employees for drug abuse
violations.
C. Every employee who works on the proposed contract will: (1) receive a copy of the
Contractor's drug-free workplace policy statement; and (2) agree to abide by the terms
of the Contractor's statement as a condition of employment under this agreement.
Failure to comply with these requirements may result in suspension of payments under the
Agreement or termination of the Agreement or both and Contractor may be ineligible for award
of any future State agreements if the department determines that any of the following has
occurred: (1) the Contractor has made false certification, or violated the certification by failing
to carry out the requirements as noted above. (Government Code section 8350 et seq.)
DOING BUSINESS WITH THE STATE OF CALIFORNIA
The following laws apply to persons or entities doing business with the State of California:
14. Conflict of Interest
Contractor needs to be aware of the following provisions regarding current or former state
employees. If Contractor has any questions on the status of any person rendering services or
involved with the Agreement, the awarding agency must be contacted immediately for
clarification.
A. Current State Employees (Public Contracts Code section 10410):
1 . No officer or employee shall engage in any employment, activity or enterprise
from which the officer or employee receives compensation or has a financial
interest and which is sponsored or funded by any state agency, unless the
employment, activity or enterprise is required as a condition of regular state
employment.
2. No officer or employee shall contract on his or her own behalf as an
independent Contractor with any state agency to provide goods or services.
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EXHIBIT 0
B. Former State Employees (Public Contracts Code section 10411):
1 . For the two-year period from the date he or she left state employment, no
former state officer or employee may enter into a contract in which he or she
engaged in any of the negotiations, transactions, planning, arrangements or
any part of the decision-making process relevant to the contract while employed
in any capacity by any state agency.
2. For the twelve-month period from the date he or she left state employment, no
former state officer or employee may enter into a contract with any state agency
if he or she was employed by that state agency in a policy-making position in
the same general subject area as the proposed contract within the 12-month
period prior to his or her leaving state service.
C. If Contractor violates any provisions of above paragraphs, such action by Contractor
shall render this Agreement void. (Public Contracts Code section 10420).
D. Members of boards and commissions are exempt from this section if they do not
receive payment other than payment of each meeting of the board or commission,
payment for preparatory time and payment for per diem. (Public Contracts Code
section 10430 (e))
15. Labor CodelWorkers' Compensation
Contractor needs to be aware of the provisions which require every employer to be insured
against liability for Worker's Compensation or to undertake self-insurance in accordance with
the provisions, and Contractor affirms to comply with such provisions before commencing the
performance of the work of this Agreement. (Labor Code section 3700)
16. Americans With Disabilities Act
Contractor assures the State that it complies with the Americans with Disabilities Act (ADA) of
1990, which prohibits discrimination on the basis of disability, as well as all applicable
regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
17. Contractor Name ChanQe
An amendment is required to change the Contractor's name as listed on this Agreement.
Upon receipt of legal documentation of the name change, the State will process the
amendment.
18. Corporate Qualifications to Do Business in California
A. If Contractor is a corporation, the State may verify that the Contractor is currently
qualified to do business in California in order to ensure that all obligations due to the
State are fulfilled.
B. "Doing business" is defined in R& TC Section 23101 as actively engaging in any
transaction for the purpose of financial or pecuniary gain or profit. Although there are
some statutory exceptions to taxation, rarely will a corporate contractor performing
within the State not be subject to the franchise tax.
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EXHIBIT D
C. Both domestic and foreign corporations (those incorporated outside California) must be
in good standing in order to be qualified to do business in California. If Contractor is a
corporation, the State will determine whether Contractor is in good standing by
contacting the Office of the Secretary of State.
19. Resolution
A county, city, district, or other local public body must provide the State with a copy of a
resolution, order, motion, or ordinance of the local governing body which by law has authority
to enter into an agreement, authorizing execution of the agreement.
20. Air or Water Pollution Violation
Under the State laws, the Contractor shall not be: (1) in violation of any order or resolution not
subject to review promulgated by the State Air Resources Board or an air pollution control
district; (2) subject to cease and desist order not subject to review issued pursuant to Section
13301 of the Water Code for violation of waste discharge requirements or discharge
prohibitions; or (3) finally determined to be in violation of the provisions of federal law relating
to air or water pollution.
21. Pavee Data Record Form Std. 204
This form must be completed by all contractors that are not another state agency or other
government entity.
22. National Labor Relations Board Certification
If Contractor is receiving federal funds under this Agreement, Contractor certifies that no more
than one (1) final unappealable finding of contempt of court by a Federal court has been
issued against Contractor within the immediately preceding two-year period because of
Contractor's failure to comply with an order of a Federal court, which orders Contractor to
comply with an order of the National Labor Relations Board. (Not applicable to public entities.)
23. Domestic Partners
For contracts executed or amended after July 1, 2004, the contractor may elect to offer
domestic partner benefits to the contractor's employees in accordance with Public Contract
Code section 10295.3. However, the contractor cannot require an employee to cover the
costs of providing any benefits which have otherwise been provided to all employees
regardless of marital or domestic partner status.
RECEIVED JUN 26 2006
STATE OF CALIFORNIA -BUSINESS TRANSPOalON AND HOLJSING AGENCY
e
Arnold Schwarzeneaaer Governor
DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF FINANCIAL ASSISTANCE
1800 Third Street, Suite 390-2
P. O. Box 952054
Sacramento, CA 94252-2054
(916) 322-1560
FAX (916) 323-6016
June 23,2006
Patricia C. Whitaker, Executive Director Community Development Agency
City of Santa Ana
20 Civic Center Plaza, M-37
Santa Ana, CA 92701
Re: Contract No. 05-CaIHome-147
Dear Ms. Whitaker:
Enclosed is a fully executed Standard Agreement for your CalHome award. Subject to
meeting certain conditions as described in Attachment A, 8, C and D of the Agreement,
you may incur expenses as of the effective date of the Agreement. The effective date
is found at the lower right hand corner of the first page of the Standard Agreement.
If you have any questions regarding the contract, please call me at (916) 327-8255 or
send me an e-mail atssarno@hcd.ca.qov.
Sincerely,
~ J. ~D
Sharon I. Sarno
CalHome Program Representative
Enclosure