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HomeMy WebLinkAbout2008.08.18 Council Workshop Packet AGENDA PASCO CITY COUNCIL Workshop Meeting 7:00 p.m. August 18, 2008 1. CALL TO ORDER 2. ROLL CALL: 3. VERBAL REPORTS FROM COUNCILMEMBERS: 4. ITEMS FOR DISCUSSION: (a) 2009 HOME Fund Allocation: 1. Agenda Report from Angela R. Pitman, Block Grant Administrator dated August 14, 2008. 2. Resolution Allocating 2009 HOME Funds. 3. Community Housing Improvement Program(CHIP)Area Location Map. (b) Program Manager for Administration of Community Housing Improvement Program (CHIP)for Neighborhood Revitalization Programs: 1. Agenda Report from Angela R. Pitman, Block Grant Administrator dated August 11, 2008. 2. Kiemle& Hagood Company Statement of Qualifications. 3. Map of Target Areas. 4. Draft HOME Consortium Agreement. (c) 2008 HOME Community Housing Development Organization (CHDO) Set-Aside Grant Award: 1. Agenda Report from Angela R. Pitman,Block Grant Administrator dated August 8, 2008. 2. City of Pasco 2008 HOME CHDO Grant Applications Summary. 3. Resolution Awarding 2008 CHDO Funds. 4. Map of Proposed Project. 5. Draft CHDO Agreement. (d) PMC Amendments Regarding Judicial Appeals: 1. Agenda Report from Stan Strebel, Administrative & Community Services Director dated August 7, 2008. 2. Proposed Ordinance. 5. OTHER ITEMS FOR DISCUSSION: (a) (b) (c) 6. EXECUTIVE SESSION: (a) (b) (c) 7. ADJOURNMENT. AGENDA REPORT NO. 44 FOR: City Council Date: August 14, 2008 TO: Gary Crutchfi anager Workshop: 8/18/08 Rick White, Di r if-f Community & E onomic Development FROM: Angela R. Pitman, Block Grant Administrator Community & Economic Development Department SUBJECT: 2009 HOME Fund Allocation I. REFERENCE(S): A. Resolution allocating 2009 HOME funds. B. Community Housing Improvement Program (CHIP) Area Location Map II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 8/18/08: DISCUSSION III. FISCAL IMPACT Estimated $193,224 Federal HOME funds. IV. HISTORY AND FACTS BRIEF: A. Pasco entered into a HOME Consortium Agreement with Richland and Kennewick in 1995 making the City eligible for Federal HOME funds. In September, 2007, this Agreement was extended to 2009. B. The Redevelopment Strategy Plan, accepted by Council in 2004, recommended that assistance programs be concentrated in two neighborhoods in the vicinity of Longfellow School and the Franklin County Historical Museum. C. On November 21, 2005 City Council authorized the use of the 2006 HOME award to be used for housing rehab and down payment assistance for home buyers in the Longfellow and Museum area. D. As of August 30, 2007 there were 16 rehabs completed, and 13 applicants were on the waiting list within the target area. E. It is estimated that in 2009 Pasco will receive funds totaling $193,224. Staff recommends these funds be used for housing rehabilitation for home owners within the Longfellow and Museum neighborhoods. It is expected that the $183,224 would be used for the rehabilitation of approximately 7 homes, and $10,000 will be used for down payment assistance in the targeted neighborhoods. 4(a) Exhibit A RESOLUTION NO. A RESOLUTION ALLOCATING ESTIMATED 2009 FEDERAL HOME FUNDS. WHEREAS, the City of Pasco entered into an Agreement with Kennewick and Richland in 2007 continuing participation in a Consortium originally formed in 1996 under the Home Investments Partnership (HOME) Program; and WHEREAS, the Consortium allows the three cities to be eligible for federal HOME funds; and WHEREAS, the City has established a housing rehabilitation program to be constructed in the Longfellow and Museum neighborhoods; and WHEREAS, it is estimated that the City of Pasco will receive $193,224 federal HOME funds in 2008; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1. 2009 HOME funds received by the City of Pasco shall be allocated to housing rehabilitation in the amount of$183,224 and down payment assistance in the amount of $10,000. PASSED by the City Council of the City of Pasco this day of , 2008. CITY OF PASCO: Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Sandy L. Kenworthy Leland B. Kerr Deputy City Clerk City Attorney ® f * �+ 5 ® \ » 2 $ 2 ® k » $ M ) k \ § ya N. 117H q ¥ q � a g S Ln * # w N. 10TH AVE % ) � No + IPA �� d N.a q ea AVE N. am AV , & # 4 t &� � `� � --4 N. 7TH AVE N. 7TH AVE * ±�� R 4 S. N. 15TH AVE k 5m AVE $ « - > _ 2 § k � f w p ¥ N. + AVE ¥ + �\¥ $ \ d\ * l * CS)- % + A-* t � $ 1 � C|ƒY OF PASCO COMMUNITY FIGURE HOUSING IMPROVEMENT PROGRAM (CHIP) ] AREA LOCATION MAP AGENDA REPORT NO. 43 FOR: City Council Date: August 11, 2008 TO: Gary Crutchfiel anager Workshop: 8/18/08 Rick White, Director Community & Economic Development nw FROM. Angela R. Pitman, Block Grant Administrator Community & Economic Development Department SUBJECT: Pro am Manager for Administration of Communily Housing Improvement Program (CHIP) for Neighborhood Revitalization Programs I. REFERENCE(S): A. Kiemle & Hagood Company Statement of Qualifications B. Map of Target Areas C. Draft HOME Consortium Agreement II. ACTION REOUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 8/18/08: DISCUSSION III. FISCAL IMPACT $554,758 Federal HOME funds. IV. HISTORY AND FACTS BRIEF: A. Pasco entered into a HOME Consortium Agreement with Richland and Kennewick in 1995 making the City eligible for Federal HOME funds. In September, 2007, this Agreement was extended to 2009. This consortium allows the City to be eligible for federal HOME funds. B. At the March, 2004 City Council Retreat, "Neighborhood Redevelopment" was listed as a goal for 2004-2005. The Redevelopment Strategy Plan, accepted by Council in 2004, recommends that assistance programs be concentrated in two neighborhoods in the vicinity of Longfellow School and the Franklin County Historical Museum (see Exhibit B). C. Key elements of the Revitalization Plan are providing financial assistance for the rehabilitation of existing homes and providing down payment assistance to encourage owner occupants to move into the area. D. Pasco has also utilized its share of HOME funds for the Community Housing Improvement Program (CHIP) to rehabilitate and provide down payment assistance to fourteen (14) property owners in the vicinity of the Longfellow and Museum neighborhoods. These projects are now completed. E. As of today, the City has $544,758 available in new HOME funds and program. Under Federal regulations these funds need to be under contract with a third party by December 31, 2008. F. The administration of housing rehabilitation and down payment assistance programs is staff intensive and complex requiring: 1) Development of program regulations in accordance with Federal requirements; 4(b) 2) Marketing the program to homeowners, contractors and lending institutions; 3) Certifying the incomes of program participants; 4) Inspecting properties, preparing plans and specifications for bid documents, bidding out the jobs, and inspection of the work. G. To assist the Block Grant Administrator, staff advertised for the assistance of a qualified consultant to administer this program. V. DISCUSSION: A. In response to the Request for Qualifications, the City received one response from Kiemle & Hagood Company of Spokane, Washington. B. Staff believes that Kiemle & Hagood Company is well qualified to perform this work and would recommend that a contract for Program Administration of the Community Housing Improvement Program (CHIP) for housing rehabilitation and down payment assistance programs be entered into for continued revitalization of the target neighborhood(s). CITY OF PASCO REQUEST FOR QUALIFICATIONS FOR PROGRAM MANAGER COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP) July 6, 2008 The City of Pasco has completed a revitalization plan for two neighborhoods located on the perimeter of the downtown. Housing rehabilitation and downpayment assistance programs are key elements of the plan. Up to $560,000 in Federal HOME funds is available for the Program Years 2006, 2007 and 2008. The City is seeking the services of a Program Manager, on a contract basis, who will be responsible for: • Implementing program regulations and procedures for the housing rehab and downpayment assistance programs. • Establish & maintain administrative, financial, reporting & record keeping systems as pertains to the eligibility of applicants, and construction/downpayment disbursements. • Market the program to perspective applicants and collect eligibility information. • Establish and maintain a list of qualified contractors for use by the program. • Provide public information about the program and counsel and guide applicants through the process. • Qualify eligible participants. • Perform/contract for lead paint & other hazardous materials assessments. • Prepare bid specifications and cost estimates for homes to be rehabbed. • Coordinate downpayment assistance with mortgage lenders. • Prepare & execute construction contracts and loan documents. • Conduct pre-construction meetings between the owner& contractor(s). • Assure that work performed meets program quality standards and obtain owner acceptance of the work. • Monitor program progress & budgets for compliance with contractual obligations. • Compile, complete and submit to the Block Grant Administrator all necessary reports and ensure compliance with funding agency and City requirements. • Perform other duties as outlined in the Program Policies. Selection Criteria: • Experience in establishing & administering housing rehab & down-payment assistance programs. • Knowledge of CDBG/HOME regulations & requirements. Submit Summary of Qualifications to: Angela R Pitman, Block Grant Administrator Community& Economic Development City of Pasco PO Box 293 525 N Third Avenue Pasco, WA 99301 By 5:00 p.m. August 15, 2008 KIEMELE & Community Building HAGOOD COMPANY Creating New Visions of Home & Neighborhood" August 6, 2008 RECEIVED Ms. Angie Pitman City of Pasco �tl; i,1j)Q Community&Economic Development Director 525 North Third Avenue, COMMUNITY DEVELOPMENTDiEP]; Pasco, Washington 99301 Dear Angie, Kiemle & Hagood Company is pleased to submit this proposal to manage the City of Pasco's Community Housing Improvement Program(CHIP). Kiemle & Hagood Company has eleven years of total experience in managing federally funded housing rehabilitation programs and would welcome the opportunity to provide this service to the City of Pasco. We have an excellent team that implements our programs with great humanity, efficiency and effectiveness. Our proposal is reflective of this, as well as of our dedication to providing a quality product. Our proposed fee for the management of the CHIP is $104,347. This consists of $76,139 in direct cost, 5,425 in indirect overhead charges, and $22,784 in closed loan management fees. This fee is tied directly to our ability to complete housing rehabilitation projects. We would like to take this opportunity to introduce you to Kiemle & Hagood Company's policy of a "Guaranteed Maximum Price". Kiemle & Hagood Company will only bill the City for actual expenditures — any amounts left unexpended at the end of the project will revert to the City and any costs over the projections will be assumed by Kiemle&Hagood Company. In addition to the very competent staff of the Community Building Division, as a company we also bring to bear the entire depth of our experience to the management of Pasco's programs. Kiemle & Hagood Company has over 30 licensed real estate agents and other professionals whose experience and expertise provide a ready resource to assist in any and all aspects of this Program as necessary. We are looking forward to creating a relationship with you in providing new and innovative program practices to facilitate the improvement of Pasco's neighborhoods. We welcome the opportunity to meet with you to discuss this proposal in detail. Please let us know if we can provide any additional information. Sincerely, KI LE AND H OD COMPANY Shannon Meagher Program Director Professional Real Estate Services Washington Mutual Financial Center • 601 West Main Avenue,Suite 400 ■ Spokane,Washington 99201-0674 ■ (509)838-6541 Fox(509)458-4014 Kiemle & Hagood Company 601 West Main Avenue, Suite 400 Spokane, WA 99201 (509) 838-6541 (509) 458-4014 (FAX) www.khco.com Kiemle&Hagood Company Propose!Response to Pasco Request for HOME Community Housing Improvement Program Manager Page 1 of Kiemle & Hagood Company is pleased to provide this response to the City of Pasco's request for a Summary of Qualifications as Program Manager for the HOME Community Housing Improvement Program (CHIP). Kiemle & Hagood Company is a commercial real estate company based in Spokane, WA. Kiemle & Hagood Company manages and develops both commercial and residential properties, and provides leasing, sales, acquisition, and consulting services for a wide variety of clientele. Kiemle & Hagood Company is also the current Program Manager of several City of Spokane housing programs: the Single Family Housing Rehabilitation Program, the Roofs Only Repair and Replacement Program, the Rental Rehabilitation Program and the Lead Safe Spokane Program. We are as proud of our accomplishments and depth of experience in managing these programs as we are of our more traditional real estate endeavors. CORPORATE PROFILE Kiemle & Hagood Company is managed as a cohesive whole: this philosophy of management is important as this management style includes the Community Building Division, which would be responsible for implementing the City of Pasco's CHIP. The Community Building Division currently manages the city of Spokane's programs,including the Single Family Housing Rehabilitation Program, the Roofs Only Repair and Replacement Program,the Lead Safe Spokane Program, and the Rental Improvement Program. Our Management Team (under the ultimate guidance of our Owners, Tom Quigley, Larry Soehren, and Gordon Hester) consists of the Directors of each of our key departments — Community Building, Multi-Family, Accounting, Marketing as well as our Chief Financial Officer (CFO) and Human Resources Director (HR). The Management Team meets regularly to ensure the commonality of our corporate purposes, support and conduct. The Management Team sets the policies and directions for the company. Our Management Team as a whole brings this Proposal to you. We believe firmly in our ability to add value, and to assure the continued success of the Programs. Resumes of qualifications are submitted at the end of this section. Tom Quigley,President and CEO Torn is not only the President and CEO of Kiemle &Hagood Company,but he is also the Director of the Brokerage Division for Spokane's largest property management and commercial real estate company. Larry Soehren,Vice President and COO Larry provides the ownership oversight and management to the Community Building Division, orchestrating the Division's talented staff within the other divisions of Kiemle & Hagood Company. Larry also oversees the Management Services Division of the company, including commercial property and facilities management, multi-family housing management, Friendly Parking Services, and community association management. Gordon Hester,Secretary/Treasurer Gordon is the Director of Commercial Property Management and Leasing for Kiemle & Hagood Company. Gordon oversees the regulatory compliance, safety planning, and general operational issues in the Commercial Property Management Division, including the Coeur d'Alene Branch in addition to the wholly owned Kiemle &Hagood subsidiary, K&H Facility Services. KiamIc&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Impro vement Program Manager Page 2 of 8 Shannon Meagher,Program Director Shannon is the Program Director of the Community Building Division, which manages over $2.5 million dollars annually in housing loans and construction management for low and moderate income property owners in Spokane. She is responsible for the overall day-to-day management of the Division as well as housing development and consulting at Kiemle & Hagood Company. Examples of development projects include the recent completion of 25 units of new construction affordable senior housing (A HUD Section 202 program), and the rehabilitation of 16 units of market rate apartments in the downtown core of Spokane. Shannon has more than 19 years experience in affordable housing development and management. Rebecca Greene.,CFO/Controller Rebecca is a CPA with in-depth accounting experience in the areas of cost accounting, corporate consolidations, public accounting and auditing. Rebecca has a strong grasp of the technical and specific requirements of property management accounting and compliance. Rebecca's understanding and integration of the Community Building Division's accounting and audit requirements has greatly facilitated the smooth financial flow of both contractor payments and administrative billings to our clients. Ellen Flanigan,Director of Human Resources and Office Manager Ellen is our Director of Human Resources and her talents impact the entire breadth of Kiemle &Hagood Company. Ellen is responsible for developing and maintaining a wide variety of policies and procedures including personnel, training programs, safety, hiring and administrative management. Ellen is also responsible for all of Kiemle & Hagood Company's insurance administration and for the oversight of all support staff. PROGRAM MANAGEMENT The Community Building Division is extremely well-versed in the management of housing rehabilitation programs. We are both familiar and comfortable with juggling the complexities of dealing with low and moderate income homeowners, identifying construction needs, managing construction activities and contractors, and administering federal funds within federal guidelines and regulations. This expertise will be brought to bear on the City of Pasco's proposed programs. The Community Building Division within Kiemle&Hagood consists of the following: Division Director,Shannon Meagher As the Director, Shannon is responsible for the implementation and oversight of all Division activities including the City of Pasco's CHIP, the City of Spokane's Single Family Housing Rehabilitation Program, the City of Spokane's Roofs Only Repair and Replacement Program as well as the Lead Safe Spokane Program. She will serve as the primary liaison with the City of Pasco's Community and Economic Development Department and the HOME Consortium. She tracks program loan expenditures and applicants by neighborhood allocations, and establishes targets and monitoring performance against key program steps. She also coordinates the design, implementation, and review of program policies in compliance with HUD and local guidelines. Additionally she fosters, monitors and reviews contractor participation, as well as directs marketing efforts, reporting compliance,and facilitates resolution of customer service issues. Shannon also underwrites the vast majority of the loans processed in the Community Building Division. Kiemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement Program Manager Page 3 of Loan Coordinators Kiemle & Hagood Company has two Loan Coordinators who determine applicant eligibility by evaluating their eligibility year income, their stable monthly income and household member and other qualifying facts. Additionally, they prepare all the loans for closing, including all document preparation and coordination with the attorney's office. The Loan Coordinators regularly communicate with a wide variety of people, from the owners to the title companies and with a myriad of other agencies to verify information. Kim Floyd - As the senior Loan Coordinator, Kim has the primary responsibility of processing or underwriting the loan applications made through the division in accordance with HUD and city program guidelines, policies and procedures. Kim has nearly 11 years of experience in processing and closing housing rehabilitation loans. Tiffany Capiral — Tiffany has the responsibility of processing the majority of the loan applications in accordance with HUD and the city program guidelines, policies and procedures. Tiffany combines private banking experience in the Tri Cities with nearly two years of processing the City's loans in this and other programs. Tiffany is also responsible for our internal database management. Field Agents Kiemle & Hagood Company's Community Building Division currently has two Field Agents with identical core duties. The Field Agents are primarily responsible for facilitating the rehabilitation process for housing rehabilitation participants from initial survey to project close-out. Essentially, the Field Agent is a project or construction manager. In the course of their work,the Field Agents: Perform home inspections and initial work surveys, Generate Work Orders and cost estimates, Coordinate with the lead testing agency and explain lead-based paint safety hazards, Coordinate and complete contract signings, Establish project timeframes and . monitor for performance within the timeframes, Approve progress payments, Prepare and authorize change orders,and Close--out projects in accordance with program policies and procedures. Field Agents, in addition to the duties outlined above, must communicate very effectively, including mediating the conflicts that can arise whenever a contractor is present and working in someone's home. The Field Agents are constantly reviewing the construction management systems, including: Program construction and material standards, inspection procedures, work specifications, cost estimating, contractor recruitment and qualifying, bidding, contract awards, construction monitoring, dispute resolution, compliance procedures and others. If selected, Kiemle and Hagood Company may hire an experienced Filed Agent on a contract basis to provide dedicated project management in Pasco. Our current Field Agents are: Todd Clark Todd's background includes training and apprenticeship in home inspections. Todd knows and enjoys understanding building systems and how they can be improved in the home. Todd is warm-hearted yet well-balanced in his approach to homeowners. kemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement frvgram Manager Page 4 of Todd is constantly looking for ways to improve our effective delivery of services and has been involved with this program for over two years. Jill Weizsmann Jill brings a sincere and friendly attitude, her knowledge base of construction and housing rehabilitation programs (she has over six years experience with federally funded owner--occupied housing rehabilitation programs), as well as national experience as a construction asset manager and senior project administrator. Jill also has a BS in Construction Management. In addition to her general Field Agent duties,Jill also coordinates the new contractor review process and coordinates the Contractor training. Administrative Assistant,Janice Perry ,Janice has been the Administrative Assistant in the Community Building Division for over a year. As the Administrative Assistant,Janice is typically the first contact all applicants have with the housing programs we manage. Janice is primarily responsible for initial referral and intake information. She maintains the homeowner and neighborhood waiting lists. Janice also does the preparation for the homeowners meetings, from initial invitations to RSVP calls and file preparation. Janice's warm and professional presentation is the perfect first impression for affordable housing programs. Janice also coordinates the weekly contractor pay request process, along with the attendant database updates as well as HUD statistical reporting. She is also proving invaluable in providing internal quality control over the entire process,ensuring optimum compliance and responsiveness. EXPERIENCE WITH MANAGING FEDERALLY FUNDED PROGRAMS Kiemle & Hagood Company is the current Program Manager of the City of Spokane's Single Family Housing Rehabilitation Program, the Roofs Only Repair and Replacement Program, Rental Improvement Program, and the Lead Safe Spokane Program. We have eleven (11) years experience in managing federally-funded, owner-occupied housing rehabilitation programs, and have just been selected as the City of Spokane's Program Manager for up to another five years. We are very proud of our accomplishments in the development and management of federally funded housing programs in general but are particularly proud of our role in implementing these Community Development programs. We see ourselves as true partners of the City of Spokane's Community Development Department. At the request of the Community Development Department as well as HUD, we have met with a number of localities looking at either implementing or improving their housing rehabilitation programs--including: • Pasco, WA • Coeur d'Alene, ID • Tacoma,WA • Vancouver,WA • Boise, ID • Sacramento,CA • Virginia Beach, VA and others. After the 2007 week-long monitoring of the City of Spokane's CDBG and HOME-funded programs, the HUD representative said that this program and its management was "exemplary". The HUD personnel have also repeatedly said that this is the best-run housing rehabilitation program in HUD's Region X if not the country, and have also Kiemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement Pmgram Manager Page 5 of frequently suggested localities and other housing providers contact us for assistance in managing or designing their programs. By the end of our 11"h program year of Program Manager experience (September 30, 2008), Kiemle & Hagood Company will have processed, contracted and closed out nearly $23,000,000 in CDBG and HOME funded rehabilitation loans for approximately 1290 families. At the end of each program year, we provide a program audit for the City of Spokane. Through all of this, Kiemle & Hagood Company has had clean audits and monitorings in full compliance with all applicable federal requirements of the City of Spokane's housing rehabilitation programs. Kiemle & Hagood Company is constantly striving to improve our delivery of services within federal regulations and program guidelines. We have never rested quietly, accepting that "things have always been done that way." Program staff is continually looking for ways to improve the programs we administer in areas such as protecting the City's position, providing better quality services,and improving contractor and homeowner relations. In addition to our specific housing rehabilitation management experience, Kiemle & Hagood Company has had as a core business line, for over 30 years, the management of HUD subsidized housing for the elderly, families, and those with special needs. We devote considerable resources and staff to the creation, development and management of multi- family and special needs housing funded by various federal, state and local grants and programs. The management of these properties also allows Kiemle & Hagood Company to actively follow our mission to provide service to the community. We manage approximately 900 units which operate specifically under HUD Sections 202, 236, 221(d)3, and 811 Assistance Programs. In summary, Kiemle & Hagood Company has successfully managed federally funded housing programs for over 30 years. This experience in managing housing rehabilitation programs for 11 years, in addition to the other federally funded housing programs (for over 30 years) demonstrates the organization's qualifications and capability to manage federally funded programs. COST OF CONTRACT MANAGEMENT Set forth below is our proposed contract management price. Our proposed management cost is comprised of three components. Direct Departmental Costs, Indirect Overhead Charge and the Management Fee. Each is discussed separately below, followed by a consolidated statement which brings them all together. This proposed management cost is also predicated upon several assumptions which are outlined below. If the City of Pasco wishes to further explore these costs,we would be happy to do so—our goal is to provide a quality product at a reasonable cost. It is important to note that the bid total set forth herein is a "Guaranteed Maximum Price". If it costs more to complete the administrative goals of the Program, we will absorb these costs. Any exceptions to this guarantee are discussed in the relevant sections. Our proposal will include monthly billings based on actual amounts incurred in Program management. There are no estimates or fixed monthly charges, except for the Indirect Overhead Charge. Finally, any cost savings will revert to the City of Pasco to further Program goals and objectives. ,Vemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement Program Manager Page 6 Of Direct Departmental Costs Our determination of direct operating costs for the implementation and completion of the City of Pasco's Community Housing Improvement Program (CHIP) is $76,139. There are several important assumptions we have made in determining this cost. • We are assuming approximately 25 projects that can be "batched" — that is at least three projects will be in the same project status at any given time so that our travel is minimized and costs passed on to you are minimized. • We have included lead based paint risk assessments for up to 25 projects. Our experience with lead paint risk assessments has been approximately $575' per project—if local costs are higher or lower,the budget will need'to be adjusted. • We have presumed that the general contractors will be certified abatement supervisors and as such will incorporate the cost of clearance exams in their construction costs. • We have calculated closing costs to be $300 for an appraisal and another $250 for closings and title insurance. Again, if local costs vary from these estimates, we will adjust the budget. After appropriate adjustments as described above, if actual audited costs are less than this amount, these funds are retained by the City of Pasco to be used in other program endeavors. If costs exceed this amount, Kiemle & Hagood Company assumes the responsibility for them. An itemized breakdown of all direct costs is presented on the following budget page. Indirect Overhead Charge Our Indirect Overhead Charge includes an allocated share of the cost of various corporate overhead and supervisory components and is detailed on the following budget page. We bring a significant advantage to this aspect of the total Program cost, since our collective expertise will be provided at a fraction of the cost of employing direct department employees. We are proposing a flat charge per month for their combined services, regardless of actual work hours required. In short, we commit their expertise and time in whatever ways are necessary to successfully meet the Program goals at a fixed cost. The indirect overhead charge to the program is $5,425. A breakdown of the components is presented on the following budget page. Management fee We propose that satisfactory performance be the standard for measuring the total amount of management fee that we earn. The ultimate measurable goal of an owner occupied housing rehabilitation (as well as a down payment assistance program) is how many of the dollars available were invested into the community to preserve the health,life,and safety of the owners, preserve the City's housing stock, and provide improved energy efficiency, or to provide homeownership opportunities for low and moderate income homebuyers. Accordingly, we set forth herein that Kiemle & Hagood Company's fees be tied directly to that accomplishment. We propose our total management fee will be 5.0% of Program funds committed, contracted, and closed out during the program year, payable quarterly: This will be calculated against actual funds expended, rather than committed. We are anticipating that Kiemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement Program Manager Page 7 of 8 approximately $455,500 will be expended in loans. We are anticipating that the funds available for loans are those funds after program costs, overhead and management fee- accordingly; the fee is based upon 5% of approximately $455,500 in loan funds or $22,784. If the funds available for loans are greater than our estimate, we will bill on closed out loan amounts at the same percentage. Please note that a portion of the management fee is shared with program staff as additional compensation for their concerted efforts in meeting the program objectives. TOTAL COST TO MANAGE PROGRAM- $1042347 TIMEFRAME Kiemle & Hagood Company proposes implementing the City of Pasco's Program over an 18- month period. Housing rehabilitation programs are somewhat cyclical, having a program ramp-up and ramp-down period. Implementing Pasco's program over 15 months will allow for a 3 month ramp-up period where we ensure all necessary documents, processes, and approved and trained contractors are in place. This will also ensure an adequate time to begin filling the pipeline with applicants. Once the pipeline is full, then a solid 12 month period at full production commences, followed by with a corresponding 3 month period of ramp-dawn. During the ramp-down period,the final projects are being closed out. Kiemle&Hagood Company Proposal Response to Pasco Request for HOME Community Housing Improvement Program Manager Page 8 of 8 2008 Proposal for Pasco CHIP DIRECT PROGRAM COSTS: Employee Costs 22,113 Supplies, Postage&Other 2,625 Marketing &Advertising 1,200 Printing 1,200 Professional/Other Vendors 11,000 Communication/Auto 8,336 Lead Testing 14,375 B&O Tax 1,540 Closing Costs 13,750 Total Direct Program Costs 76,139 INDIRECT PROGRAM COSTS (OVERHEAD): Rent 1,501 Accounting Dept 985 General Depreciation 454 Supplies 673 Insurance 682 Human Resources 959 Telephone 150 Property Tax 21 Total Indirect Costs 5,425 MANAGEMENT FEE Closed loan Fee 22,784 Total Fee 1 22,784 TOTAL PROGRAM COSTS: 104,347 � � ■ f K ® \ 2 2 { � > k \ ) § y � N- ,a AVE6 k w�AVE � y® � � ■ * � % N. 102A4 � $ \ NO & � § � � m ? 9 ` N. a+ AVE N. a AVE } { \ \ .. 7m AVE N. 7> AVE , ,;4, § s-7 y � N. sm AVE N. sm AVE IL¥ � � � ■ A cn & ƒ « ¥ &� � g k «@ AVE � $ � C1 $ ^ \A 5 � � y + � ® f k � CITY OF PASCO COMMUNITY FIGURE HOUSING IMPROVEMENT PROGRAM (CHIP) ] AREA LOCATION MAP TRI-CITIES HOME CONSORTIUM RECIPIENT CONTRACT AGREEMENT This HOME Program Recipient Agreement, hereinafter called "Agreement", has been made and entered into as of the 2nd day of I k92&Mber , 20__U, between the Tri-Cities HOME Consortium consisting of the participating jurisdictions of the Cities of Richland, Kennewick and Pasco, hereinafter called "Consortium", and Kiemle & Haaood Company , whose address is 601 W Main Avenue, Suite 400 Spokane Washinoton 99201-0674 hereinafter called "Recipient" as authorized by Title II, Section 216 and 217 of the National Affordable Housing Act of 1990, and with 24 CFR Part 92, also known as the HOME Investment Partnerships (HOME) Program. Recitals WHEREAS, the Federal Government has made funds available to Consortium pursuant to the HOME Program to increase the number of families, especially low income families, served with decent, safe, sanitary and affordable housing and to expand the long term supply of affordable housing; and WHEREAS, the Consortium seeks the maximum use of such funds consistent with the HOME Program, the objectives of which are to provide incentives to develop and support affordable rental housing and home ownership affordability through the acquisition, reconstruction, moderate or substantial rehabilitation or new construction of affordable housing; and WHEREAS, the HOME Program authorizes contracts with community housing development organizations, (CHDO), private developers, non-profit organizations, and public agencies to carry out the objectives identified above; and WHEREAS, in the case of CHDO the HOME Program also authorizes the use of program funds to provide technical assistance and site control loans in the early stages of project development, to provide loans to cover pre-construction project costs that Consortium determines to be customary and reasonable, and to provide education and organizational support. NOW, THEREFORE, the parties, for and in consideration of the promises and mutual obligations set forth below, agree as provided for in this agreement. Section 1 — Definitions HOME Funds — the total amount of HOME Program dollars being provided by the Consortium to the Recipient under this Agreement. HOME Assisted — Those units in the Project, which were partially or totally rehabilitated, constructed, or otherwise, assisted with the use of HOME Funds. 1 Pr_ oiect — the activity and result for which HOME Funds are being provided under this Agreement. Regulations — the requirements in 24 CFR Part 92 which govern the HOME Program and the use of HOME Funds, and all related and applicable OMB Circulars, Codes, Regulations and requirements. Section 2 — The Project HOME Funds are being made available by the Consortium to the Recipient for the purpose of promoting affordable housing to very low, low and moderate-income families, through the acquisition, construction and or rehabilitation of non-luxury housing with suitable amenities, including site improvements, conversion, demolition, and other expenses such as financing costs, hereinafter called the "Project". Section 3 — Sources and Uses of Funds The total amount of HOME Program dollars, hereinafter called "HOME Funds", to be allocated to the Project is Five hundred fifty-four thousand sgvgn hundred fifty-eight and 67/100 ($554.758.67) . HOME Funds to be allocated are consortium Fiscal Year (Jan-Dec) 2006-2007-2008 funds. The limit of financial exposure for the Consortium is specifically $554,75$.67. Project Description (Be Specific): Encouragee revsitafialion and home ownersh R in older neighborhoods of Pasco through rehabilitation of existina homes and down Payment assistance for first time homebuvers. The Agreement will be effective upon signing by all parties, and authorization of environmental review and clearance, and all project work will be completed no later than February 28, 2010 Failure to complete the project as agreed upon or comply with HOME Program and other applicable local, state or federal requirements can result in a breach of this agreement and cause any HOME funds drawn or incurred to become immediately due and repayable to the City of Richland, lead entity for the Tri-Cities HOME Consortium. Scope of Work: The Recipient will act as project coordinator, and will market the homes in accordance with applicable HOME rules and regulations to households whose gross annual household income is at or below 80 percent of median under Income guidelines established annually by the U.S. Department of Housing and Urban Development (HUD) for the Tri-Cities area. Income documentation will be in a form consistent with HOME requirements as stated in the HUD handbook "Technical Guide for Determining Income and Allowances Under the HOME Program". Income verification of the household must be re-examined to determine continued eligibility for the HOME Program if the closing of the property or recordation of the Deed occurs later than 6 months from initial income verification. The Recipient will lend funds to individuals in an amount sufficient to make the homes affordable_ The City of Pasco as a participating jurisdiction of the Tri-Cities 2 HOME Consortium, will be named as mortgagee on the properties secured by a recorded Deed and Note as required by 24 CFR 92.254 for a period not less than the period of affordability. The HOME funds shall be no lower in priority than second position on the property unless prior written authorization is granted by the participating jurisdiction or the Consortium. Project beneficiary information pertaining to household size, income levels, racial/ethnic characteristics, disability status, household composition, Female Head of Household composition, and any other information required by HUD, will be collected and documented in an individual and cumulative manner. The Recipient and/or participating jurisdiction will monitor each housing unit for principal residency as provided at 24 CFR 92.254(a)(3) upon completion of the project and during the period of affordability. Section 4— Displacement/Relocation Requirement Any project that might displace a person, family, business, non-profit organization, or farm must be approved by the participating jurisdiction (City) and the Consortium prior to any final commitment of HOME funds for the project, or of entering into any type of agreement, whether verbal or written with another party_ Failure to receive prior approval may cause the forfeiture of any and all sums under this agreement by the Recipient. Section 5 — Environmental Review The effects of each activity related to the Project must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 and the related authorities in 24 CFR Parts 50 and 58, and as detailed in 24 CFR Part 92, § 92.352. The Recipient must, prior to undertaking any choice limiting or physical activity with respect to the Project, regardless of whether such activity is to be funded by the HOME Funds, comply to the extent applicable, with the regulations found at 24 CFR Part 58. All applicable environmental review and clearance requirements as provided in 24 CFR 58.5 must be completed by the lead consortium member and approved by the U-S. Department of Housing and Urban Development prior to any commitment by the Recipient of HOME dollars. The Recipient will abide by any special conditions, procedures and requirements of the environmental review and will advise the lead entity of any proposed change in the scope of the project or any change in environmental conditions in accordance with 24 CFR 58.71(b). The Recipient may not use any of the HOME Funds for acquisition or construction in identified special flood hazard areas unless the Project is subject to the mandatory purchase of flood insurance as required by Section 102(a) of the Flood Disaster Protection Act of 1973. Failure to comply with this provision will cause an immediate cancellation of this Agreement and forfeiture of the HOME funds. 3 Section 6 — Disbursement of Funds The Recipient may request funds under this Agreement only when they are needed for payment of specific allowable costs described herein, and only in amounts needed to pay such costs. The Recipient shall be reimbursed for eligible project costs after review and approval by the participating jurisdiction of invoices, statements, and other billings, progress reports, and property inspection if applicable. Upon prior approval, the Consortium may pay a vendor or contractor directly. Section 7 - Relationship The relationship of the Recipient to the Consortium shall be that of an independent agency. Nothing herein shall be deemed to create the relationship of employer/employee or principal/agent between the parties. Section 8 - Modifications And Amendments All modifications and amendments to this Agreement shall be in writing; such modification or amendment shall not take effect until specifically approved by the Consortium in writing. Section 9 - Waivers No conditions or provisions of this agreement can be waived unless approved by the Consortium in writing. Section 10 —Assignability The Recipient shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement to any party (whether by assignment or novation) without prior written consent of the Consortium. Section 11 - Severability If any provision of this Agreement, or portion thereof is held invalid by any court of rightful jurisdiction, the remainder of this Agreement shall not be affected providing the remainder continues to conform to applicable Federal and State law(s) and regulations and can be given effect without the invalid provision. Section 12 - Insurance And Bonds The Recipient and its employees, volunteers, contractors or consultants shall carry throughout the life of this Agreement, General Liability Insurance, Comprehensive Automobile Liability Insurance and other such coverage as may be appropriate or required by State or Federal law, for the services to be performed. Properties improved, acquired or rehabilitated with HOME funds will be insured until such time that the final disposition of the property occurs. Copies of such documents will be forwarded to the lead entity of the Consortium prior to the start of work for the project. Section 13 — Procurement Standards The Recipient will establish procurement procedures to ensure that materials and services are obtained in a cost-effective manner. When procuring for services to be 4 provided under this agreement, the Recipient shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84.40-48. In addition, it is understood that any Recipient that can be considered to be a religious organization shall abide by all portions of 24 CFR 92.257. Section 14— HOME Program Requirements HOME Funds are made available to Consortium and subsequently to Recipient as authorized by 24 CFR Part 92, referenced and other applicable documentation, hereinafter called the "Regulations". Recipient agrees to comply with all requirements of the Regulations. Should anything in this Agreement be construed to conflict with Regulations, it is the Regulations, which shall prevail. Section 15 -- Match Requirement The HOME program requires a non-federally funded 25 percent match. The Recipient and/or participating jurisdiction is required to document sources of match, both cash and in kind and submit this information to the lead entity of the Consortium. The Recipient will will not provide the 25 percent match. The Recipient will provide % match and total match is due at project completion. Section 16 — Period of Compliance/Period of Affordability The HOME-assisted housing must meet the affordability requirements established at 24 CFR 92.254(4) for owner occupied units, for a period not less than specified in the following table: Homeownership Assistance Minimum Period of Affordability HOME amount per unit In Years Under $15,000 5 $15,000 to $40,000 10 Over $40,000 15 Rehabilitation without acquisition Must qualify as affordable housing at time of assistance and after rehab value cannot exceed 95% of median area purchase price, must be principal residence, and own ershi must be fee simple. _ This period of compliance is called the Period of Affordability for the Project, beginning after the Project is completed and occupied by a very low, low or moderate-income household, and without regard to the term of the loan or the transfer of ownership, except as noted below. Section 17 — Termination of Period of Affordability The applicability of the Regulations may be terminated upon foreclosure or transfer in lieu of foreclosure. The applicability of the Regulations shall be revived according to the original terms if during the original Period of Affordability, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner 5 or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Section 18 — Recapture Requirements and Resale Requirements To insure affordability, this project adheres to resale/recapture requirements and Recipient must impose resale/recapture requirements to comply with the standards set forth in 24 CFR Part 92, § 92.254(a)(5). Language insuring the funds during the period of affordability must be included in all contract documents. Funds that are recaptured by the Recipient and/or the participating jurisdiction from the sale of the property by the homeowner, or if the property is no longer used as their primary residence during the period of affordability as required by 24 CFR 92.254(x)(4)- (5) must be immediately returned to the Consortium. Section 19 — Property Standards Upon completion, the housing assisted with HOME Funds must meet the housing quality standards in 24 CFR Part 92, § 92.251, accessibility standards at 24 CFR 92.251(x)(3) and lead based paint requirements as found in 24 CFR 92.355 and 24 CFR Part 35. The housing must also meet all State of Washington and local standards, zoning, and ordinances. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials. Section 20 -- Non-Discrimination and Equal Opportunity The Recipient agrees that they will utilize and make available the HOME Funds in conformity with the non-discrimination and equal opportunity requirements set out in the HUD regulations in the National Housing Affordability Act. These regulations include: 1. The requirements of the Fair Housing Act, 42 U.S-C. 3601-20, and implementing regulations at 24 CFR Part 100, Executive Order 11063 (Equal Opportunity in Housing) as amended by Executive Order 12259 and implementing regulations at 24 CFR 107; and Title VI of the Civil Rights Act of 1964, 42 U_S.C. 2000d, and implementing regulations at 24 CFR Part 1 (Nondiscrimination in Federally Assisted Programs); 2. The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and the regulations at 24 CFR 146; 3. The prohibitions against discrimination on the basis of handicap under Section 504 of the Rehabilitation Act of 1973 (29 U.S-C. 794) and implementing regulations at 24 CFR, Part 8; 4. The requirements of the Executive Order 11246 (Equal Employment Opportunity) and the regulations issued under the Order at 41 CFR Chapter 60; 6 5. The requirements of Section 3 of the Housing and Urban Development Act of 1968, 12 U.S.C. 1702u (Employment Opportunities for Business and Lower Income Persons in Connection with Assisted Projects); and 6. The requirements of Executive Orders 11625 and 12432 regarding Minority Business Enterprise, and 12138 regarding women's Business Enterprise, and regulations S.85.36(e) of Section 281 of the National Housing Affordability Act. 7. The requirements of Washington State Law as found at RCW 49.60. Section 21 —Affirmative Marketing, MBE/WBE Records and Reports Affirmative marketing steps will be taken to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, color, national origin, sex, religion, familial status or disability. Affirmative marketing procedures must include requirements detailed in 24 CFR Part 92, §92.351. A detailed affirmative marketing plan must be submitted to the lead entity of the Tri- Cities HOME Consortium at the start of the project. The Recipient will document and provide data on the outreach steps taken to assure that minority business (MBE) and women's business enterprises (WBE) have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services. Recipient will report to the lead entity of the Consortium the contracts or subcontracts awarded to MBE and WBE businesses for the project. Section 22 — Labor Standards — Prevailing Wage Determination If this agreement is for a construction activity, the Davis-Bacon Act or State of Washington Prevailing Wage Requirements may be applicable. ® It has been determined by the U.S. Department of Housing and Urban Development, Office of Labor Relations that there will X will not be applicability of Davis-Bacon requirements to this project. ® It has been determined by the State of Washington,Department of Labor that there X will will not be applicability of State Prevailing Wage Requirements. Should HOME funds be made available for other project costs, the Recipient agrees to comply with the decision regarding applicability as determined by the State of Washington Department of Labor and/or the U.S. Department of Housing and Urban Development Labor Division. The Recipient will ensure that Federal Labor Standards Provisions and/or State Prevailing Wage Rates will be included and implemented in all contract and sub-contract documents, and the Recipient will carry out the responsibilities and duties as established by the U.S. Department of Housing and Urban Development. 7 Section 23 — Lead Based Paint The Recipient must comply with the U.S. Department of Housing and Urban Development Lead Based Paint Regulations (24 CFR Part 35) issued pursuant to the Lead Based Paint Poisoning Prevention Act (42 U.S.C_ Sections 4821, et.seq_) requiring prohibition of the use of lead based paint whenever HOME funds are used directly or indirectly for construction, rehabilitation, or modernization of residential structures; elimination of immediate lead based paint hazards in residential structures; and notification of the hazards of lead based paint poisoning to purchasers, tenants, and/or owners of residential structures constructed prior to 1978. The Recipient will be responsible for hiring an independent Environmental Protection Agency (EPA) or State of Washington certified Lead Based Paint risk assessor, inspector or clearance examiner for rehabilitation work. The Recipient will assure that contractors and sub- contractors comply with all applicable guidelines and regulations for the elimination of lead based paint hazards as established under OSHA Lead in Construction Industry Standard, 29 CFR 1926.62; EPA Lead Standard 40 CFR 745; and Title X of the 1992 Housing and Community Development Act, as amended, and established by HUD, 24 CFR 35, and 24 CFR 92.355. Section 24— Conflict of Interest Generally, no employee, agent, member, consultant, officer or elected or appointed official of the members in the Consortium or Recipient who exercises or has exercised any functions or responsibilities with respect to any activities that are in any way connected with the decision to provide the HOME Funds may obtain a financial interest, reside in, or benefit from those activities, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter as stated in 24 CFR 92.356, and the Recipient must take appropriate steps to assure compliance_ Section 25 — Records Records must be kept by the Recipient and be made available to the Consortium that demonstrates compliance with this Agreement. Records must be maintained for at least five years after the project completion date, except for documents imposing recapture/resale restrictions which must be retained for five years after the Period of Affordability, specified in Section 6 above, has expired, or as any of the following apply: 1) Records that are the subject of audit findings must be retained for three years after such findings have been resolved, 2) Records for non-expendable property (as defined in OMB Circular A-110 for non- profit organizations) shall be retained for three years after its final disposition. Project pre-construction, construction, and project management records must be kept which demonstrates compliance with this Agreement and related regulations. Financial management records must be kept and identify the source and application of funds for 8 the Project, in accordance with 24 CFR Part 85 and OMB Circulars A-110 and A-133 for non-profit agencies. The Recipient agrees to provide any and all information as may be requested by the Consortium or participating jurisdiction to document compliance with the HOME Program and related laws, rules, regulations and policies. Section 26 -- Monitoring At least annually, or more often if deemed necessary, the Consortium will monitor the performance of the Recipient to assure compliance with the requirements of this Agreement. The review may include on-site inspections and review of all records to determine compliance with this Agreement through the contract period. The Recipient agrees to provide any and all information to the Consortium to assist in meeting administrative and monitoring requirements. Any duly authorized representative of the U.S. Department of Housing and Urban Development, authorized federal or state agent, or the Consortium shall at all reasonable times have access to and the right to inspect, copy, audit, and examine all books, records and other documents relating directly to the Recipient's receipt and disbursement of the HOME Funds, as well as access to the project site(s) and all project records. Section 27 — Financial Responsibility The Recipient agrees that it is financially responsible (liable) for any audit exception which occurs due to its negligence or failure to comply with the terms of this Agreement. Section 28 —Timeliness of Expenditures Time is of the essence in this agreement. HOME funds unspent as of the 28th day of February , 20 08 will be recaptured by the Tri-Cities HOME Consortium for redistribution by the representative city to another qualified applicant, unless written extension approval prior to the date of expiration is made between all signatory members of this agreement. Section 29 — Status Reports The recipient will be required to provide status reports to the City of Richland, lead entity for the Tri-Cities HOME Consortium, on the project or program being funded. The reports shall be submitted within 15 days of the end of each calendar year quarter (by April 15, July 15, October 15 and January 15) and shall continue until the project or program has been completed. The status reports shall include a description of the activities undertaken during the prior quarter, reporting on the goals achieved, the assistance provided to clients in the program, the number of homes constructed, and the number of families assisted. At the completion of the project a final report shall be provided indicating the accomplishments realized, the strengths and weaknesses of the project, total number of houses built or rehabilitated, total number of persons assisted, etc. Final record retention shall be the property of the participating jurisdiction and shall be delivered to same. 9 Section 30 — Indemnification The Recipient will save and keep harmless and indemnify the Consortium and its individual representative members against any and all liability, claims and costs of whatsoever kind and nature for injury to or death of any person or persons and for loss or damage to any property occurring in connection with or in any way incident to or arising out of activities undertaken under this agreement. Section 31 — Corrective and Remedial Action Recipient will immediately correct or cause to be immediately corrected, any and all actions or performance deficiencies in the project as may be determined by the lead entity for the Tri-Cities HOME Consortium or the U.S. Department of Housing and Urban Development. Failure to correct such actions or performance deficiencies within 30 days from written notification may result in suspending HOME funds for the above described project, the cancellation of this contract, and the reprogramming of HOME funds to other eligible activities. Section 32 —Attorney's Fees-Costs In the event of a lawsuit between the parties to this agreement, the prevailing party shall be entitled to recover judgment against the other party for reasonable attorney's fees and other costs either at trial or on appeal. If either party exercises any non-judicial right or remedy to enforce such party's rights hereunder, it shall be a condition for the cure of the default that the defaulting party will pay the non-defaulting party's reasonable attorney's fees incurred and all reasonable costs. Failure to pay such costs and reasonable attorney's fees shall constitute an event of default under this agreement. Section 33 —Venue and Law Venue for any action under this contract shall be in Benton County, Washington. This agreement shall be governed by the laws of the State of Washington. 10 RECIPIENT: CONSORTIUM: Kiemle & Hagood Company, Inc. Tri-Cities HOME Consortium 601 W Main Avenue, Suite 400 P.O. Box 190, MS 20 Spokane, WA 99201-0674 Richland, WA 99352 Signature Signature Larry Soehren, Vice President/COO Cynthia D. Johnson, City Manager Kiemle & Hagood Company, Inc. City of Richland Date Date PARTICIPATING JURISDICTION: Gary Crutchfield, City Manager City of Pasco Date APPROVED AS TO FORM: Thomas O. Lampson, City Attorney City of Richland 11 AGENDA REPORT NO. 42 FOR: City Council DATE: August 8, 2008 WORKSHOP: 8118108 TO: Gary Crutch 1014 Manager Rick White, Dir ctor � Community& Economic Development �Q FROM: Angie Pitman, Block Grant Administrator(V Community&Economic Development SUBJECT: 2008 HOME Community Housing Development Organization(CHDO) Set-Aside Grant Award I. REFERENCE(S): A. City of Pasco 2008 HOME CHDO Grant Applications Summary B. Resolution Awarding 2008 CHDO Funds C. Map of Proposed Project. D. Draft CHDO Agreement II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 8118/08: DISCUSSION III. FISCAL IMPACT $92,253 in Federal HOME CHDO funds. IV. HISTORY AND FACTS BRIEF: A. Pasco entered into a HOME Consortium Agreement with Richland and Kennewick in 1995 making the City eligible for Federal HOME funds. In September, 2007, this Agreement was extended to 2009. This consortium allows the City to be eligible for federal HOME funds. Under the HOME program, 15% of funds are earmarked for federally designated Community Housing Development Organizations (CHDO). The three cities rotate the responsibility for distributing these funds. In 2005, Pasco was responsible for the distribution of CHDO funds. In 2008, Pasco is responsible for distributing the HOME CHDO funds totaling$92,253. V. DISCUSSION A. On August 6, 2008, the City received one application from the only eligible CHDO organization for use of 2008 CHDO funds. The application was reviewed by staff representing each of the Consortium cities. B. Tri-County Habitat for Humanity proposes utilizing the $92,253 for construction of seven homes in the Tierra Vida subdivision; $87,640 would be used for direct financing for seven low-income families from November 2008 through November 2011 and $4,613 for project delivery. This project meets the City's housing goals of increasing the supply of affordable housing and promoting home-ownership. C. Tri-County Habitat for Humanity is the only certified CHDO in the Tri-Cities area eligible to receive the CHDO set-aside grant at this time. As such, they are operating near maximum capacity to complete development of 40 affordable housing units in the Tri- Cities area. Current single family residential units under development include 30 units in Kennewick Garden Court subdivision and three units in Richland, and this proposal is to complete seven units remaining of a 20 unit project in the Pasco Tierra Vida subdivision. D. Taking into consideration time frame to completion, staffing, experience, financial resources, and viability of proposals,the Tri-County Habitat for Humanity is recommended for award of the 2008 CHDO Set-Aside Grant. 4(c) Reference A CITY OF f . City of Pasco l2008 HOME CHDO Grant Application q1qW Agency: Tri County Partners Habitat for Humanity aka Habitat for Humanity Tai Cities Address: 313 Wellsian Way, Richland WA 99352 Project Title: Tierra Vida Phase 1 B Project Location: Pasco WA Amount of Funds $92,253 Requested: Contact Person: Theresa Richardson, Executive Director E-mail: trichardson@habitat-tcp.org Telephone: 5091943-5555 Fax: 5091943-1693 1. Provide a specific detailed description of your project and what exactly the CHDO funds will be used for: These Habitat for Humanity homes built in Pasco will provide simple, decent, affordable homeownership opportunities for 7 low income families. This'partnership including broad community support will leverage CHDO funds to provide gap funding at the time of closing on 7 homes in the City of Pasco, completed and sold between November 2008 and November 2011. 2. Project beneficiaries - List the client data of persons whom you ESTIMATE you will serve with this project. Is your count by: Person, or by® Household (family)? Total Number to be served 7 Households Number of clients below 30% median Unknown Number of clients below 50% median All Number of clients below 80% median All Number of elderly clients Unknown Number of minority clients Unknown — Likely all 7 households Number of homeless clients None 3. Does the proposed project cause individual or business displacement? Yes If yes —explain why. RECEIVED WL 3 o 20 COMMU141V DFVELOPMEW DEtv1 1 4. Does your organization have experience in working with this type of project? If so, how many years of experience? Please provide a list of recent projects and the year they were completed: We started to build homes in partnership with low income families in 1994. As of this writing, we have completed and sold 49 homes and currently have 6 under construction. A listing of all the Habitat homes with family names and address is attached. We are proud to say that we have not had a single foreclosure and that the families remain very proud of their homes and grateful to the community. 5. If applicable, describe current agency ownership interest in property for the project and include copy of deed or agreement to purchase property: This subdivision known as Tierra Vida is a new mixed income residential community being developed by a local orchardist, the Broetje family. When completed, this housing project will house 255 families, and will include other community amenities such as recreation areas and a community center. Phase 1 of the subdivision has 70 lots. Habitat for Humanity has purchased 21 lots in the development and as of this writing, completed 11 with 4 currently under construction. A copy of the deed is attached. 6. What is the location of your project, census tract and population your project will serve? Please attach a map: Name: Tierra Vida Location: Pasco WA "A portion of SW quarter of Section 27 Township 9 North Mange 30 East" Near Lewis and east end of A Street. Census Track: 201 County: Franklin Population Low to Moderate: 74.6% (data source: Imisd date 2008-04-01) Map attached. 7. Which of the following eligible activities is CHDO undertaking as the owner, sponsor or developer? ❑ Acquisition and/or rehabilitation of rental housing, ❑ New construction of rental housing, ❑ Acquisition and/or rehabilitation of homebuyer properties, X New construction of homebuyer properties, ❑ Direct financial assistance to purchasers of HOME-assisted housing sponsored or developed by a CHDO with HOME funds 2 8. Budget - Give a detailed breakdown of the total budget, including major expense line items. Show how the requested CHDO funds will be applied toward the expenses and show the amount and source of any other revenue that you will be using. Total budget expenses should equal the total of the CHDO Funds plus Other Revenue. Be prepared to explain the budget and provide copy of full agency budget upon request. EXPENSES REVENUES LINE ITEM $TOTAL $CHDO $OTHER SOURCE OF BUDGET FUNDS FUNDS OTHER Land $210,000 $210,000 CTED Acquisition/Permits /Taxes/Fees Materials — Home $560,000 $287,000 Yakima Fed Loan Construction $185,360 Donations/GIK $87,640 Down Payment Assistance/Closin g Costs/Permit Reimbursement Labor (3,333 hours $233,310 $233,310 Volunteers p/house x $10 p/hr) Project $105,000 $105,000 Donations Management $ 4,613 $4,613 Delivery Service Fees (Eligible 5% of grant award) OTHER: (describe) TOTAL $1,112,923 $92,253 $1,020,670 Additional explanation of the above budget: 3 9. If you do not receive the requested funds or receive only a portion of what you request, how will the goals of your project be adjusted? What portion of your project will be abandoned, will fewer persons be served, etc? If the full CHDO grant funding is not awarded, the number of people served would be reduced proportionately. The partnership of this project ( CHDO, donated construction materials and community volunteer labor) provides a very significant and attractive unit cost ratio to persons served, and a full grant award is preferable. With CHDO support, Habitat for Humanity is able to maximize the persons served and support our mission to provide simple, decent, and affordable homes to eligible families in the City of Pasco. 10. Project timeline - Establish milestones or goals of accomplishments by calendar quarter from the start of the project until completion: Date MilestonelGoal 4th Qtr. 2008 Finalize Grant Award ist Qtr. 2009 3 homes completed and sold; construction continues on 3 more 2 nd Qtr 2010 3 homes completed and sold; Construction continues on 1 more home V Qtr 2011 Construction completed on 7m home 4 Qtr 2011 Completed home construction and 7 homes sold to qu alified low income families. 11. If funding is secured from this CHDO source, 25% match of non-federal funds is required. Please list sources you will use to provide this match requirement: Habitat for Humanity Tri Cities support for this project will come from a variety of non-federal funds to more that met the 25% match requirement. (25% of $92,253=$23,063.25) For example: CTED support has helped to acquire the property and start the building process with $30,000 x 7 lots = $210,000 Yakima Federal course of construction loans $41,000 x 7 = $287,000 The remainder support will come from the community. More than 3400 volunteers helped build homes in 2007-08. In addition, we are able to acquire cash and in kind support from various area churches, civic groups, individuals and corporate sponsors to complete the construction of these homes. 4 12. Listed below are the City of Richland's Priority Goals and Objectives for housing. Please Circle the goal/objective that the proposed project meets: CITY OF PASCO 2005-2009 CONSOLIDATED PLAN PRIORITY HOUSING GOALS AND OBJECTIVES Goat IV: Improve Affordable Housing Opportunities for Lower-Income Individuals and Households [PERFORMANCE MEASUREMENTS: (APPLY ONE PER STRATEGY CHOSEN) • Number of lower-income households with improvements to their property at an affordable cost, including health/safety codes or energy efficiency standards improvements • Number of iower-income households with rental payments at affordable rates • Number of new lower-income homeowners assisted with affordable loans • Number of new housing units affordable to and occupied by lower-income households Number of households with increased information on: dangers of lead-based paint, fair { housing, or the dangers of predatory lending or avoidance of foreclosure. Number of lower-income homebuyers graduated from buyer counseling programs who retained or purchased a home, including special needs populations Strategy 1. Add to the existing stock of affordable units by developing owner-occupied and rental housing in in-fill areas or targeted neighborhoods, consistent with local comprehensive plans. Objective 1.2 Support local efforts to obtain Section 8 rental assistance certificates and or vouchers to reduce the incidence of housing- cost burden or homelessness Strategy 2. Sustain or improve the quality of existing affordable housing stock. Objective 2.1 Support acquisitions and/or rehabilitations of units for buyers, owners, or renters. Objective 2.2 Support housing activities that provide assistance to units and properties to meet local codes, as well as fit to neighborhoods. Activities include eligible code enforcement tasks, improvements related to energy efficiency and other needs. Priority will be given to rehabilitation or new construction projects in targeted neighborhoods/areas including removal of spot blight conditions. Strategy 3. Maximize homeownership opportunities for lower-income and special needs households. K.Wl' $" \4 t 5 13. Please describe how your project meets those goals and objectives and how HOME CHDO dollars will be utilized for the project and how long-term affordability requirements will be met: In the prospective homeowner selection process, it is Habitat for Humanity's policy to support whatever needs a qualified family has, including special needs for the elderly, developmentally disabled and handicapped. Our normal project process is aimed at providing permanent housing for low-income populations via a homeownership opportunity that typically results in a lower mortgage cost than rental payments for housing of lesser quality. The mortgages are a fixed, no-interest loan over 20 year period. HOME dollars will be used for new construction of homebuyer properties and/or gap financing and/or down payment/closing cost assistance and/or construction related fee/permit reimbursement to eligible lower income homebuyers as described in this proposal. 14. Please provide any additional information you want to be taken into consideration: IN c7 a Certifications and Assurances llwe make the following certifications and assurances as a required element of the proposal to which it is attached, understanding that the truthfulness of the facts affirmed here and the continuing compliance with these requirements are conditions precedent to the award or continuation of the related contract(s): 1. The prices and/or data have been determined independently, without consultation, communication, or agreement with others for the purpose of restricting competition. However, I/we may freely join with other persons or organizations for the purpose of presenting a single proposal. 2. In preparing this proposal, I/we have not been assisted by any current or former employee of the City or member of HCDAC, whose duties relate (or did relate) to this proposal or prospective contract, and who was assisting in other than his or her official public capacity. Neither does such a person nor any member of his or her immediate family have any financial interest in the outcome of this proposal. (Any exceptions to these assurances are described in full detail on a separate page and attached to this document.) 3. 1 understand that the City will not reimburse for any costs incurred in the preparation of this proposal. All proposals will become the property of the City, and I/we claim no proprietary right to the ideas, writings, items, or samples. 4. I/we warrant that, in connection with this RI`P: 6 a. The price and/or cost data have been arrived at independently, without consultation, communications, or agreement, for the purpose of restricting competition, as to any matter relating to such prices with any competition. b. No attempt has been made or will be made by the CHDO to induce any other person or firm to submit or not to submit a proposal for the purpose of restricting competition. Tri County Partners Habitat for Humanity aka Habitat for Humanity Tri Cities WA Name of CHDO Authorized Signature Theresa Richardson, Executive Director July 30, 2008 Date 7 T- r �- r r O N O O M M Lo M M M M N 1- (3) 0 MCY) (D O O O Lo O CY) O ti O ro u? 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Y L � ca cu m m U +' C CL) N Z CLI 7 O U 025 ° E � 06 C ro C/) < LLk M O UJ _0 cad ca ca ro otS g ro 0b • 4) w m o ob o0.S c25 s p -a xf a 025 cB in .0 L O °� 7 p N L 025 0 ca � (n '> ca L tII W O 73 c s= N 06 r U m Q 'L (4 -a Q LL .L '� ' Q) O a) �. ?? (U a) w cu CL M (a . a ca N p L c0 N •= E Vii m aN • L M N N (� E > t= • O t0 Y O a) L m CC CO 7 O (� Ca L f0 c O D ca 2 7 (� >m (0 m _ O c zC3a � 2UZJ22fYUUUly- atA • LL 3: cr- UU ❑ of N2 ..j U = M � LnCDf� MD) OrN Md LA co ml OrNMd- Lo CD P OCAO r N • co M M M M M M d d d d d d d' d d d- LC) Ln LO Ln LO Ln Ln lt7 L(7 In (D CD CD 1715078 Page: 1 of 1 02/20/2008 03:23P CASCADE TITLE DEED 42.00 Franklin Co, WA AFTER RECORDING MAIL.TO: Tri-County Partners Habitat forHvmanity FRANKLIN COUNTY TREASURER 313 Whim Way �} Richland,WA 99352 0 3 0 0 5 1. F E 2© U CASCADE TITLE CO. Escrow No.: D180856KJS Statutory Warranty Deed THE GRANTOR COMMUNITY ALLIANCE FOR SERVICE AND ADVANCEMENT LLC, (C.A.S.A.,LLC) for and in consideration of Ten Dollar and other valuable consideration in hand paid, conveys and warrants to TRI-COUNTY PARTNERS HABITAT FOR HUMANITY,A Washington NOR- Profit Corporation the fallowing doem6ed real estate, situatfld in the County of FRANKLIN, State of Washington Abbreviated Legal: Lots 1,2,5,7,8,13,14,17,20 and 21,TIERRA VIDA Lots 1,2,5,7,8,13,14,17,20 and 21,TIEBRA VEDA,Phase One,according to the Plat t thereof recorded is Volume D of Plats,Page 3179 records of Franklin County,Waahlugton. SUBJECT TO covansnts,conditions,resi<&na,reservations easements and agreements of record,if any A. Assessor's Property Tax Parcel Account Number(s): Tax Account No.:113-730-301,113-730-302, 113-730305,113-730307,113-73008,113-730-313,113-730-314,113-730-317,113-730-320,and 113-730-321 Dated this 13th day of February,2008• IN COMMUNITY ALLIANCE FOR SERVICE fND ANCE31ENT 1 I.C.:' BY: Broe"Managdn er A5 0%�r STATE OF WASHINGTON ��:_' COUNTY OF BENTON I certify that I know or bavo asflsCaciory evil--co that RALPH BROETJE is the person who appeared bo£ore me,and said person acknowledged that he signed this inahvawat,on oath stated that he Is authodzod to caecute the instrument and acknowledged it as the Managing Member of COMMUNITY ALLIANCE FOR SERVICE AND ADVANCEMENT LLC to be the tee and voluntary act of such party for the uses and purposes mentioned in this instrameat Dated Feb.Iv .2008 Deba .Taft Notary Public in and for the State of Washington Residing at Umatilla,OR My appointmani expires:04/14/10 V,im Fenn SDD02WA Rev.2+812006 iPB 1043(W) Page 1 of 2 T MM \ C"• _� � V� �r � i�•r � 1� jj t si it a r e 1a � I S 1ti T a r Sa i i} a] • 1 �l O ■ ^ \ t 73 Al a if n 1 % 44 �• !I Ej F 1 1 { ��� !s i3 � � • � ad � !# ]� l 1 a 4 •, ,i�• � >�.; � \tea Y !� �, d � �ems! #�.�7 t a10 1: 1 i i a3 ,i :a si sY si i5 It 3 lot i rY sZ •: :Y sY IaQ ai .j` f� -] ! + �..► f si �\.� 13 ] =3 !i +� -a� M s�i !1{� 1 1 X/ II 1 T EF - I iii \, =3 •y I t t �;� -X ,€ -i .7—+�-Lr-_�-�, .;� �� -•E� ;€ S3 �"{.a !€ Iii I if. t: r Y �+ �� �. 3� �. ISM � �, s. � • 1 .1i 20A 5 if psi # Ir is ,•NSF t i I s E i • ! iSl.'=Xr'..�•:_.sip •Y �• _ E •1 t't Vey• f .:'J.�.��. •• [i��ZY k�=�y,Q-f. +`t• '-E :r'e' 'r' ,\ •�t, '� _ •.s j T�ftn 1 1r,�`L{�:.. ••>•� ..is :fF�:�,t k-�.,���17� IT 77 0 wjr ,Q111 r d fr}t f g. - 7 Von Moo F-- Off'¢�r-• -_ 's TOO/oz/o MQ"tr0$trZ _!�- •�.�..._wrx�ra.�axi° -.Sr �r.,."`" •�s�a M .. ..� � �J ----•—•—• •Ic:VsE�5f13Otii�Yr---•=—. _ .1-" .....� .� i 1 / l / +,-'• ' A � h CA 4j j 08/06/2004 12:34 FA.X 513 263 3756 TE/GE CINTI Zooz/oo2 internal Revenue Service Department of the Treasury P. O.Box25DB Date: August 6, 2004 Cincinnati,OH 45201 Habitat For Humanity International, Inc. Person to Contact: 322 W. Lamar St. Tracy Garrigus#31-07307 Americus, GA 31709-3543 Customer Service Representative Toll Free Telephone Number: a:0o amL to 8:30 pm.EST 877-829-5500 FaX Number: 513-263-3756 Federal Identification Number: 91-1914868 Group Exemption Number: 8545 Dear Sir or Madam: This is In response to your request of August 6.2004, regarding your organization's tax-exempt status. In January 1987 we Issued a determination letter that recognized your organization as exempt from federal income ta)c our records indicate that your organization Is currently exempt under section 501(c)(3)of the Internal Revenue Code. Our records indicate that your organization is also classified as a public charity under sections 509(a)(1) and 170(b)(1)(A)(vi)of the Internal Revenue Code. Based on the information supplied,we recognized the subordinates named an the Gst your organization submitted as exempt from federal income tax under section 501(c)(3)of the Code. Our records indicate that conttibutions to your organization are deductible under section 170 of the Code, and that you are qualified to receive.tax deductible bequests,devises, transfers or gifts under section 2055, 2106 or 2522 of the Internal Revenue Code. If you have any questions, please call us at the telephone number shown In the heading of this letter. Sincerely, Janna K. Skufca, Director, TE/GE Customer Account Services • �, • Habitat for Humanity International Building houses in partnership with God's people in need January 4, 1994 Joanne Fancher Tri-County HFH 1642 Blue Heron Blvd West Richland,WA 99352 Dear Joanne, This letter will confirm that Tri-County HFH has been added to the roster of exempt subordinates included in the group exemption letter of Habitat for Humanity International, Inc. ("HFHY) under section 501(c)(3) of the Internal Revenue Code, effective on January 1, 1994. The enclosed copy of the group exemption letter received from the IRS (dated April 27, 1990) provides evidence of HFM's group exemption. That letter, together with this letter which confirms your affiliate's exempt subordinate status,provide evidence of your tax exempt status under section 501(c)(3) of the code. Both of these letters should be retained as part of your affiliate's permanent records. Also, we are enclosing for your information a sheet entitled"Affiliate Tax Return Reminders." Please note that a significant penalty may be imposed when a return is filed late. To assist in the consolidation of your affiliate's financial data with that of HFHI, we :.;. request that you use a calender year accounting period(January 1-December 31). The group exemption number assigned to HFM by the IRS is 8545. This number may be provided to prospective donors,foundations,and other grant organizations as they request it, and is required on certain IRS forms. In partnership, i � 1 Susan Hancock Carol Gregory Director, US Affiliates Associate Director,US Affiliates CG/In Enclosure cc: Les Alford 4-b5�1 1 Q1 Habitat Street Americus, GA USA 31709-3498 (912)924-6935 Fax(912)92 2 1 Department of the Treasury lnternat Revenue Service 41 In reply refer to : 2916820108 P. O. Box 99 Ogden UT 41 Aug . `b', 1998-* LTR 12240 91- 1914868 000000 00 000 03462 � i HABITAT FOR HUMANITY INTERNATIONAL INC 121 HABITAT ST AMERICUS OA 31709 ti Taxpayer Identification Number : 91-1914868 Dear Taxpayer : Thank you for the inquiry dated Apr . 10 , 1998. Our records show your organization is exempt from income tax under Section 501 (c) (3) of the Internal Revenue Code . According to our records, Employer Identification Number (EIN) 58--1285159 was originally used for the parent organization. Because of a computer problem, we are unable to use EIN 58-1285159. Please use EIN 91-1914868 for the parent organization and keep this number in your permanent records . If you have any questions about this letter , please write to us at the address shown at the top pf the first page of this letter . If you prefer , you may call the IRS telephone number listed in your local directory. An employee there may be able to help you, but the office at the address shown on this letter is most familiar with your case . Whenever you write , please include this letter and , in the spaces below, give us your telephone number with the hours we can reach you . Keep a copy of this letter for your records . Telephone Number ( ) Hours (fir/ Department of the Treasury internat Revenue Service KV 2916820108 Aug . 18 , 1998 LTR 12240 91-1914868 000000 DO 000 03463 HABITAT FOR HUMANITY INTERNATIONAL INC 121 HABITAT ST AMERICUS GA ` 31709 We apologize for any inconvenience we may have caused you , and thank you for your cooperation . Sincerely yours , Barbara J . cCormick Chief , Accounts Service Section Enclosure (s) : Copy of this letter Envelope Publication 557 BYLAWS OF TR1-COUNTY PARTNERS HABITAT FOR HUMANITY CONTENTS PREAMBLE ARTICLE I OFFICES 1.1 Registered Office and Registered Agent 1.2 Other Offices ARTICLE It MEMBERS ARTICLE III BOARD OF DIRECTORS- 3.1 Number and Powers 3.2 Composition 3.3 Change of Number 3.4 Vacancies 3.5 Regular Meetings 3.6 Special Meetings 3.7 Notices 3.8 Quorum 3.9 Waiver of Notice 3.10 Registering Dissent 3.11 Conflict of Interest 3.12 Executive and Other Committees 3.13 Remuneration 3.14 Loans 3.15 Removal. 3.16 Action by Directors without a Meeting ARTICLE IV OFFICERS 4.1 Designations 4.2 The President 4.3 The Vice President 4.4 Secretary and Assistant Secretaries 4.5 The Treasurer 4.6 Executive Director 4.7 Delegation 4.8 Vacancies 4.9 Other Officers 4.10 Loans 4.11 Term--Removal 4.12 Bonds ARTICLE V DEPOSITORIES ARTICLE VI NOTICES BYLAWS - 1 ARTICLE VII SEAL ARTICLE Vill INDEMNIFICATION OF OFFICERS, DIRECTORS, EMPLOYEES &AGENTS ARTICLE IX BOOKS & RECORDS ARTICLE X AMENDMENTS BYLAWS - 2 PREAMBLE TRI-COUNTY PARTNERS HABITAT FOR HUMANITY is committed to witness and communicate the Gospel of Jesus Christ by creating a partnership with economically disadvantaged people to create an environment in which all of us may attain our potential. Tri-County Partners accomplishes this mission by working with very low-income people to create an opportunity to own simple, decent, affordable housing where they can live and grow into all that God intended. ARTICLE Offices 1.1 Registered Once and Registered Agent. The registered office of the corporation shall be located in the State of Washington at such place as may be fixed from time to time by the Board of Directors upon filing of such notices as may be required by law. The registered agent shall have a business office identical with such registered office. 1.2 Other offices. The corporation may have other offices within or outside the State of Washington at such place or places as the Board of Directors may from time to time determine. ARTICLE 11 Members The corporation shall not have members. ARTICLE III Board of Directors 3.1 Qualifications. Persons agreeing to abide by the goals, principles and purposes of the corporation and contributing to the corporation, during the year prior to the annual meeting of the members/board, by participating on a committee, volunteering in a sanctioned activity or making a financial or in-kind donation shall be qualified to serve on the Board of Directors. 3.2 Number and Powers. The management of all the affairs, property, and interests of the corporation shall be vested in a Board of Directors consisting of not fewer than 12 nor more than 18 persons. The Board of Directors shall be divided into three (3) classes (Class A, Class B, and Class C)each consisting, as nearly as possible, of one-third (1/3) of the total number of directors elected at that time. The term of office for each Class shall be three (3) years. The expiration of the term of office of the directors in a particular Class shall be staggered so that the term of one Class of directors rotates to expire at each annual meeting. The Board shall designate newly elected directors as a Class A, Class B, or Class C director to maintain, as nearly as possible, an equal number of directors in each Class. The Board of Directors may make periodic adjustments to the composition 'i of each Class so that the term of office of approximately one-third (1/3) of all directors will expire at each annual meeting, provided such BYLAWS - 3 adjustments shall not have the effect of shortening the term of any incumbent director without such director's consent. No director may be elected to more than two successive full terms nor serve more than seven (7)consecutive years. 3.3 Composition. The Board of Directors shall be composed of residents of the counties of Benton, Franklin or Walla Walla County; at least one-third of the seats shall be reserved for representatives of the low-income segment of the community in accordance with CHDO regulations. Low-income representatives will be recruited from both rural and urban areas of the service area to the greatest extent possible. No more than one-third of the Board of Directors shall be public officials. 3.4 Change of Number. The number of directors may at any time be increased or decreased by the affirmative vote of a majority of the Board of Directors, but no decrease shall have the effect of shortening the term of any incumbent director. 3.5 Election. The Board of Directors shall be elected by class at the annual meeting of the Board of Directors. 3.6 Tenn. The term of office for each member of the Board of Directors shall begin on August 1 of each year and end on July 31 of the year applicable to the class of the respective Directors. 3.7 Vacancies. All vacancies in the Board of Directors, whether caused by resignation, death or otherwise, may be filled by the affirmative vote of a majority of the remaining directors even though less than a quorum of the Board of Directors. A director elected to fill any vacancy shall hold office for the unexpired term of his or her predecessor and until a successor is elected and qualified. 3.8 Regular Meetings. Regular meetings of the Board of Directors may be held at the registered office of the corporation or at such other place or places, either, within or without the State of Washington, as the Board of Directors may from time to time designate. The annual meeting shall be held without notice at the registered office of the corporation, on the second Saturday of July of each year beginning at 7 PM, or at such other time and place as the Board of Directors shall designate by written or electronic notice. In addition to the annual meeting, there shall be regular meetings of the Board of Directors held, with proper notice, not less frequently than once each calendar quarter. 3.9 Special Meetings. Special meetings of the Board of Directors may be called at any time by the President or upon written request by any two directors. Such meetings shall be held at the registered office of the corporation or at such other place or places as the directors may from time to time designate. 3.90 Notice. Notice of all special meetings of the Board of Directors (and of all regular meetings other than the annual meetings to be held at the place and time designated in Section 3.5) shall be given to each director by three (3) days' prior service of the same by telegram, by letter, electronically, or personally. Such notice need not BYLAWS -4 specify the business to be transacted at, nor the purpose of, the meeting. Notices provided electronically shall comply with RCW 24,03.09 and record shall be maintained of directors who consent to receipt of electronically transmitted notices. 3.11 Quorum. A majority of the whole Board of Directors shall be necessary and sufficient at all meetings to constitute a quorum for the transaction of business. A two-thirds majority of those present shall be required to vote in the affirmative to ratify a duly seconded motion. 3.12 Waiver of Notice. Attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. A waiver of notice signed by the director or directors, whether before or after the time stated for the meeting, shall be equivalent to the giving of notice. 3.13 Registering Dissent. A director who is present at a meeting of the Board of Directors at which action on a corporate matter is taken shall be presumed to have assented to such action unless the director files a written dissent or abstention to such action with the person acting as the secretary of the meeting before the adjournment thereof, or forwards such dissent by registered mail to the Secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent or abstain shall not apply to a director who voted in favor of such action. 3.14 Conflict of Interest. No member of the Board of Directors shall vote in any matter in which such director or any family, employer, or business entity has an interest that would be substantially affected by such action. 3.15 Executive and Other Committees. The Board of Directors may appoint, from time to time, from its own number, standing or temporary Committees authorized by RCW 24.02.115 consisting of no fewer than two (2) directors. Such Committees may be vested with such powers as the Board may determine by resolution passed by a majority of the full Board of Directors. No such Committee shall have the authority of the Board of Directors in reference to amending, altering, or repealing these Bylaws; electing, appointing, or removing any member of any such committee or any director or officer of the corporation; amending the Articles of Incorporation; adopting a plan of merger or adopting a plan of consolidation with another corporation; authorizing the sale, lease, or exchange of all or substantially all of the property and assets of the corporation other than in the ordinary course of business; authorizing the voluntary dissolution of the corporation or adopting a plan for the distribution of assets of the corporation; foreclosure on any affiliate homeowners: or amending, altering, or repealing any resolution of the Board of Directors which by its terms provides that it shall not be amended, altered, or repealed by such Committee. All Committees so appointed shall keep regular minutes of the transactions of their meetings and shall cause them to be recorded in books kept for that purpose in the office of the corporation. The designation of any such Committee and the delegation of authority thereto, shall not relieve the BYLAWS - 5 Board of Directors, or any member thereof, of any responsibility imposed by law. The Board of Directors will establish a RCW 24.02.115 Committee, the Executive Committee, consisting of the President, Vice President(s), Secretary, and Treasurer. The Executive Director, if any, shall be an exofficio member of the Executive Committee without voting rights. Among other duties as may be established by the Board, the Executive Committee will establish the agenda for the Board of Directors meetings, provide for strategic planning and monitor and report progress against the plan, supervise the Executive Director on operational, staffing and personnel issues, and prepare the Executive Director's periodic performance and salary reviews. The Board of Directors may also establish non-RCW 24.02.115 standing Operational Committees to assist the Executive Director and the Board with the conduct of the affiliates business, but which shall have no power or authority to take action on behalf of the corporation or the Board. The current Operational Committees are (1) Family Selection, (2) Family Partnering, (3) Building, (4) Site Selection, (5) Church Relations, and (6) ReStore Oversight. To provide for day-to-day coordination and operational direction of the Operational Committees' work, the Board of Directors may delegate functional oversight to the Executive Director The Operational Committees will generally be composed of a chair and 5 to 15 persons representing the cultural, economic, and ecumenical diversity of our community; however, depending upon operational requirements, an Operational Committee may consist of as few as a single person.To facilitate communication and provide for consistency of intent, the Board of Directors will, to the extent.possible, maintain at least one director on each of the Operational Committees. All Operational _.' Committees will keep regular minutes and make periodic reports to the Board of Directors. 3.12A The Family Selection Committee defines the focus of our affiliate by establishing and conducting the process and policies needed to select those in greatest need with fair non-discriminatory, objective, and functional criteria. They will present their selections to the Board of Directors for acceptance. 3.126 The Family Partnering Committee provides the support system for affiliate homeowners by assisting them to become successful homeowners and in managing the problems associated with being economically disadvantaged. This committee may be composed of volunteers, Habitat homeowners and other low-income community representatives. Through outreach to low- income community members, this committee shall learn ways in which the affiliate may better serve them in the future. In addition, this committee shall review and provide comments on proposed housing. This committee shall meet and report to the Board of Directors no less than two times per year. 3.12C. The Building Committee is responsible for planning and implementing construction guidelines and insuring that - the houses built are simple, affordable and of quality construction and .will report progress and issues and BYLAWS - 6 barriers to success to the Board of Directors in their regular meetings. 3.12D. The Site Selection Committee identifies land available at a reasonable cost and that will serve the purpose of our ministry of enhancing the community. 3.12E. The Church Relations Committee is responsible for recruiting and nurturing the support of churches to be a part of all facets of affiliate life. This committee will report their progress to the Board of Directors in their regular meetings. 3.12F. The ReStore Oversight Committee oversees operations of the Restore and plans for the ReStore's future, sets direction, establishes and approves Restore policies, and gives general supervision to the Restore Manager. The committee also coordinates its activities closely with the Executive Director as directed by the Board. All ReStore staff, as employees of the corporation, will be under the direction of the Executive Director who shall prepare their performance and salary reviews. Such reviews shall reflect the advice and input of the Oversight Committee. 3.96 Remuneration. No stated salary shall be paid members of the Board of Directors, as such, for their service, but by resolution of the Board of Directors, a fixed sum and expenses of attendance, if any, may be allowed for attendance.at each regular or special meeting of such Board; provided, that nothing herein contained shall be construed to preclude any director from serving the corporation in any other capacity and receiving compensation therefore. Members of special or standing committees may be allowed like compensation for attending committee meetings. 3.97 Loans. No loans shall be made by the corporation to any Director. 3.98 Removal. Any director may be removed at any time, with or without cause, by the affirmative vote of two-thirds (213)of Board of Directors represented in person or by proxy at a meeting of members at which a quorum is present. 3.19 Action by Directors without a Meeting. Any action required or permitted to be taken at a meeting of the directors, or of a committee thereof, may be taken without a meeting by a written or electronic consent setting forth the action so to be taken, signed by all of the directors, or all of the members of the committee, as the case may be, before such action is taken. Such consent shall have the same effect as a unanimous vote. Any such action may also be ratified after it has been taken, either at a meeting of the directors or by unanimous written consent. BYLAWS - 7 ARTICLE IV Officers 4.1 Designations. The officers of the corporation shall be a President, one or more Vice Presidents (one or more of whom may be Executive Vice Presidents), a Secretary and a Treasurer, and such Assistant Secretaries and Assistant Treasurers as the Board may designate. The corporation's officers, except for the President who shall be elected for a two-year term, shall elected by the Board for terms of one year. Presidents may not serve consecutive terms in office. Such officers shall hold office until their successors are elected and qualify. Any two or more offices may be held by the same person, except the offices of President and Secretary. 4.2 The President. The President shall preside at all meetings of the Board of Directors, shall have general supervision of the affairs of the corporation, and shall perform such other duties as are incident to the office or are properly required of the President by the Board of Directors. 4.3 The Vice President. In absence of the President the Vice President unless otherwise determined by the Board of Directors, shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions of the President. In absence of the President, the Vice President shall preside at all meetings of the board. The Vice President shall perform such other duties as may be assigned by the President of the Board of Directors. 4.4 Secretary and Assistant Secretaries. The Secretary shall cause notice to be issued for all meetings, except for notices of special meetings of the members and the Board of Directors which are called by the requisite number of directors, shall cause minutes of all meetings to be kept, shall have charge of the seal and the corporate books, and shall make such reports and perform such other duties as are incident to the office, or are properly required of the Secretary by the Board of Directors. The Assistant Secretary, or Assistant Secretaries, in the order designated by the Board of Directors, shall perform all of the duties of the Secretary in the absence or disability of the Secretary, and at other times may perform such duties as are directed by the President or the Board of Directors. 4.5 The Treasurer. The Treasurer shall supervise the disposition of all monies and securities of the corporation and shall cause regular books of account to be kept. The Treasurer shall oversee the disbursement of the funds of the corporation in payment of the just demands against the corporation or as may be ordered by the Board of Directors (taking proper vouchers for such disbursements) and shall render to the Board of Directors from time to time as may be required, an account of ail transactions undertaken as Treasurer and of the financial condition of the corporation. The Treasurer shall perform such other duties as are incident to the office or are properly required by the Board of Directors. The Assistant Treasurer, or Assistant Treasurers, in the order designated by the Board of Directors, shall perform all of the duties of the Treasurer in the absence or disability of Treasurer, and at BYLAWS - 8 other times may perform such other duties 's are directed by the President or Board of Directors. 4.6 Executive Director. The Board may select an Executive Director who shall be responsible for the administration and conduct of the business and affairs of the corporation pursuant to guidelines established by the Board. The Executive Director shall have full authority for direction of the employees of the corporation, if any. The Executive Director, if selected, may be compensated for his or her services in that capacity in such amount and manner as the Board of Directors shall determine. it is under the discretion of the Executive Director to decide if an advisory committee should be formed or a community meeting held in order to obtain participation from low-income and project beneficiaries on housing projects. 4.7 Delegation. If any officer of the corporation is absent or unable to act and no other person is authorized to act in such officer's place by the provisions of these Bylaws,the Board of Directors may from time to time delegate the powers or duties of such officer to any other officer or any director or any other person it may select. 4.8 Vacancies. Vacancies in any office arising from any cause may be filled by the Board of Directors at any regular or special meeting of the Board. 4.9 Other Officers. The Board of Directors may appoint such other officers or agents as it shall deem necessary or expedient, who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Board of Directors. 4.10 Loans. No loan shall be made by the corporation to any officer. 4.11 Term--Removal. The officers of the corporation shall hold office until their successors are chosen and qualified. Any officer or agent elected or appointed by the Board of Directors may be removed at any time, with or without cause, by the affirmative vote of a majority of the whole Board of Directors, but such removal shall be without prejudice to the contract rights, if any, of the person so removed. 4.92 Bonds. The Board of Directors may, by resolution, require any and all of the officers to provide bonds to the corporation, with surety or sureties acceptable to the Board, conditioned for the faithful performance of the duties of their respective offices, and to comply with such other conditions as may from time to time be required by the Board of Directors, ARTICLE V Deposi#Dries The monies of the corporation shall be deposited in the name of the corporation in such bank or banks or trust company or trust companies as the Board of Directors shall designate, and shall be drawn from such accounts only by check or other order for payment of money signed by such persons, and in such manner, as may be determined by resolution BYLAWS - 9 of the Board of Directors. ARTICLE VI Notices Except as may otherwise be required by law, any notice to any member or director may be delivered personally, electronically or by mail. If mailed, the notice shall be deemed to have been delivered when deposited in the United States mail, addressed to the addressee at his or her last known address in the records of the corporation, postage prepaid. ARTICLE VII Seal The corporate seal of the corporation, if any, shall be in such form and bear such inscription as may be adopted by resolution of the Board of Directors,or by usage of the officers on behalf of the corporation. ARTICLE Vlll Indemnification of Officers Directors Em to ees and Acients. ~ The corporation shall indemnify its officers, directors, employees, and agents to the greatest extent permitted by law.The corporation shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation or who is or was serving at the request of the corporation as an officer, employee, or agent of another corporation, partnership, joint venture, trust, other enterprise, or employee benefit plan, against any liability asserted against such person and incurred by such person in any such capacity arising out of any status as such, whether or not the corporation would have the power to indemnify such person against such liability under the provisions of this Article. ARTICLE IX Books and Records The corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its Board of Directors; and shall keep at its registered office or principal place of business; or at the office of its transfer agent or registrar, a record of its directors, giving the names, addresses, telephone numbers and email addresses of all directors. ARTICLE X Amendments The Board of Directors shall have power to make, alter, amend, and repeal the Bylaws of this corporation. BYLAWS - 10 Amended by resolution of the corporation's Board of Directors on July 10,2001. Amended by resolution of the corporation's Board of Directors on March 20,2007. BYLAWS - 1 I Tri Cities HOME Consortium CHDO Recertification Form Organization Legal Name: Tri County Partners Habitat for Humani Chief Executive Officer Theresa Richardson Title: Executive Director CHDO Contact Person: Theresa Richardson Title: Executive Director Address: 313 Wellsian Wa City: Richland State: WA Zip: 99352 E-mail: tichardson @habitat- Phone: 5091943-5555 Fax: 509!943-1693 tcp.or CHDO Certification Date: 6108 Last Recertification Date: 6/06 I. CHDO Status(check all that apply) [l A. The organization no longer wants to be a certified CHDO. Skip remainder of this form and return to City of Richland Housing and Redevelopment. X B. The organization wishes to remain active as a certified CHDO. Please fill out the remainder of this form. ❑ C, The organization has a current state certified CHDO status. II, Financial Status A. Attach a copy of the organization's most current annual operating budget. B. Attach a copy of the organizations' most recent audit that is no more than 12 months old. III. Legal Status A. Has the organization amended its articles of incorporation or by-laws since it was certified as a CHDO? ❑ YES X NO if yes, attach an amended copy. B. Has the organization filed a current Business Entity Report with the Secretary of State? X YES ❑ NO If no, file the report and provide verification of entity status. C. Has the organization revised its tax-exempt status with the IRS since it was certified as a CHDO? ❑ YES X NO If yes, attach a letter from the IRS indicating how the status has changed. D. Has the organization revised its purpose or mission statement since it was certified as a CHDO? ❑ YES X NO If yes,provide a copy of the by-laws or board resolution as evidence of this change. IV. Other Requirements es of its service area since it was certified as a CHDO? A. Has the organization changed the boundari ❑ YES X NO Please attach a map or detailed written description of the service area boundaries. B. Has the organization changed its Tenant Participation Plan since it was certified as a CHDO? ❑ yES X NO If yes,provide a copy of the revised Tenant Participation Plan. V. Organizational Structure lease make A. Please list the organization's curr ent board members. If additional space is needed,p additional copies of this page. B. Indicate which of the individuals listed below meet the 1/3 low-to-moderate income representation criteria as required by HUD in 24 CFR Part 92.2 by specifying which of the three types of low/mod criteria they meet. Be sure to maintain documentation of address and income for review by staff during monitoring. Board Member Resident of a Low- Low-Income Elected Representative of Income Resident of Low-Income Name Nei hborhood Address Neighborhood in the Community g Community (check box) Organization (check box) (check box) 1. Linda Bauer,President(Term ends 7/08 2. Steve Wiley,Vice President ❑ a o 3. Larry Garrett,Treasurer X 1015 E 4th Ave,Kennewick WA 99336 4. Merle Johnson � � ❑ 5. Doug Stark,(incoming Pres 8/08) ❑, 6. Clay Craigo X 110 E 3`d Ave,Kennewick WA 99336 ❑ ❑ X 7. Bobbie Littrell 4209 W 22d Avenue,Kennewick WA 99338 8. Nancy Osborn X ❑ 1106 E 7`h Ave,Kennewick WA 99336 9. Pat Ronaldson 10. David Pesel X E 1322 Haupt Ave,Richland WA 99352 11. Kathy Bryson 12. Julia Cunningham 0 0 13. Blaine Carr 14. Andres Espinoza K El El 310 N 4h Ave Pasco WA 99301 15. Rick Brouns El 16. Steve Mallory DATED THIS 3 DAY OF July,2408 Signature Executive Director Title T_ri County Partners Habitat for Humani-ty aka Habitat for Human Tri Cities WA Agency r a TRI-COUNTY PARTNERS HABITAT FOR HUMANITY FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 s •e i BAKER&GILES, PS Certified Public Accountants P.O.Box 704,Pasco,Washington 99301 ..S ,.z -.s TRI-COUNTY PARTNERS HABITAT FOR HUMANITY TABLE OF CONTENTS Page Independent Auditors' Report 1 Statement of Financial Position 2 1 Statement of Activities 3 Statement of Functional Expenses 4 - Y:;p Statement of Cash Flows Notes to Financial Statements 7 - 11 i a :.r : .i c i i e::.i i BAKER&GILES, PS Certified Public Accountants Daniel L.Boyd,C.P.A. Mark J.Morrissette,C.P.A. Randy W.Shoop,CPA Carol A.Woo,C.P.A. Howard C.Baker,C.PA. (1920-2000) Merlin 0,Giles,C.P.A. (1924 2004) INDEPENDENT AUDITORS' REPORT Tri-County Partners Habitat For Humanity 313 Wellsian Way Richland, Washington 99352 We have audited the statement of financial position of Tri-County Partners Habitat For Humanity as of June 30, 2007 and 2006, and the related statements of activities, functional expenses, and cash flows for the years then ended, These financial statements are the responsibility of the Tri-County Partners Habitat For Humanity's management. Our responsibility is to express an opinion on these financial statements -:, based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the ,i overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As discussed in Note 1 to the financial statements, Tri-County Partners Habitat For Humanity does not recognize the value of donated store merchandise at the time such contributions are made, and consequently does not recognize the value of unsold donated inventory in the accompanying statement of financial position. In our opinion, the recognition of donations at the time the gift is made, as well as the inventory value of unsold merchandise is required by U.S. generally accepted accounting principles. The effect of this departure on the financial statements is not reasonably determinable. f' In our opinion, except for the effect of the matter discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of Tri-County Partners Habitat For Humanity as of June 30, 2007 and 2006, and its activities and cash flows for the years then ended in conformity with U.S. generally accepted accounting principles. b Baker& Giles PS Certified Public Accountants January 4, 2008 -1- '..,� 202 North Third Avenue P.O. Box 704 Pasco,Washington 99301 Telephone(509)547-0544 Fax(509)547-0505 www.bakergiles.com TRI-COUNTY PARTNERS HABITAT FOR HUMANITY STATEMENT OF FINANCIAL POSITION JUNE 30, 2007 AND 2006 2007 2006 ASSETS Assets Cash $ 231,479 $ 133,470 Construction in Progress 298,454 139,371 Grants Receivable 46,516 122,037 Pledges Receivable 420 - Mortgages Receivable, Net of Unamortized Discount 1,387,908 1,080,073 Land for Future Construction 63,178 20,418 Property& Equipment, Net of Depreciation 11,018 - Land for Resale/Disposal - 9,164 Cash in Escrow Accounts 35,999 97,132 Cash Subject to Withdrawal Restrictions 72,193 75,719 Total Assets $ 2,147,165 $ 1,597,384 a LIABILITIES & NET ASSETS Liabilities Accounts Payable &Accrued Expenses $ 38,602 $ 21,218 Deferred Grant Revenue 46,516 102,787 Trust Fund Liability 36,999 12,108 Notes & Loans Payable 728,086 530,989 Total Liabilities $ 850,203 $ 667,102 Net Assets Unrestricted 1,296,962 930,282 Total Liabilities and Net Assets $ 2,147,165 $ 1,597,384 See accompanying notes to the financial statements l -2- TRI-COUNTY PARTNERS HABITAT FOR HUMANITY STATEMENT OF ACTIVITIES JUNE 30, 2007 AND 2006 2007 2006 Revenues& Gains Contributions $ 371,618 $ 215,279 Grants 463,623 171,693 Sale of Completed Homes 583,000 472,250 Restore Sales 113,057 42,742 Mortgage Discount Amortization 26,067 32,281 Special Events 23,780 20,307 Investment Income 5,434 2,262 Other Income 564 860 Total Income $ 1,587,143 $ 957,674 Expenses & Losses Program Expenses $ 973,929 $ 739,153 Management&General 98,334 67,291 Fund Raising 66,590 62,555 r'9 Restore 81,610 46,895 Total Expense $ 1,220,463 $ 915,894 Net Increase(Decrease) in Net Assets $ 366,680 $ 41,780 Net Assets at Beginning of Year 930,282 888,502 Net Assets at End of Year $ 1,296,962 $ 930,282 : s �.d See accompanying notes to the financial statements . -3- TRI-COUNTY PARTNERS HABITAT FOR HUMANITY STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2007 AND 2006 GENERAL FUND 2007 2006 ' PROGRAM &ADMIN. RAISING RESTORE TOTAL TOTAL Cost of Homes Sold $ 561,329 $ - $ - $ - $ 561,329 $ 450,121 Mortgage Discounts 182,801 182,801 135,409 Grants 45,766 45,766 23,521 Wages & Benefits 58,736 54,031 39,150 37,021 188,938 147,908 Bank Charges & Fees 17 44 1,679 1,740 Depreciation 1,293 2,079 3,372 - Insurance& Bonds 7,040 841 840 8,721 4,105 Interest Expense 24,131 24,131 11,960 Miscellaneous 80 10 72 162 561 Public Relations& Publicity 5,269 39 3,812 3,245 12,365 17,653 Professional fees 21,097 22,978 480 44,555 6,072 Volunteer& Church Relations 2,622 11 - 2,633 3,933 Rent 6,000 6,000 - 32,350 44,350 51,748 Repairs & Maintenance 1,332 1,177 245 2,754 - d Special Events - 20,178 - 20,178 16,477 Supplies 5,538 9,812 1,337 1,740 18,427 19,083 Tithe to Habitat International 42,911 42,911 16,799 Training & Conferences 3,983 600 4,583 4,354 Travel 2,483 71 - 4,034 6,588 669 Utilities 1,501 1,251 783 624 4,159 5,521 Total 2007 $ 973,929 $ 98,334 $ 66,590 $ 81,610 $ 1,220,463 2006 Total $ 739,153 $ 67,291 $ 62,555 $ 46,895 $ 915,894 -x r y i :3 See accompanying notes to the financial statements -4- t: TRI-COUNTY PARTNERS HABITAT FOR HUMANITY STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2006 GENERAL FUND PROGRAM &ADMIN. RAISING RESTORE TOTAL Cost of Homes Sold $ 450,121 $ - $ - $ - $ 450,121 Mortgage Discounts 135,409 135,409 Grants 23,521 23,521 Wages & Benefits 59,163 51,768 36,977 147,908 Insurance& Bonds 3,611 494 4,105 Interest Expense 11,960 11,960 Miscellaneous 444 117 561 Public Relations &Publicity 14,503 2,633 517 17,653 Professional fees 2,000 4,072 6,072 Volunteer& Church Relations 3,933 3,933 Rent 5,904 5,217 3,841 36,786 51,748 Special Events 16,477 16,477 Supplies 4,422 3,961 1,403 9,297 19,083 Tithe to Habitat International 16,799 16,799 I Training &Conferences 4,354 4,354 Travel 651 18 669 '? Utilities 2,358 1,662 1,206 295 5,521 $ 739,153 $ 67,291 $ 62,555 $ 46,895 $ 915,894 See accompanying notes to the financial statements -5- A TRI-COUNTY PARTNERS HABITAT FOR HUMANITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2007 AND 2006 2007 2006 Cash Flows From Operating Activities Net Increase (Decrease) in Net Assets $ 366,680 $ 41,780 Adjustments for noncash items included above Sale of homes on contract (183,001 (135,250} 1 Mortgage Discounts 82,801 135,409 Mortgage Discount Amortization {26,067) (32,281) Depreciation 3,372 - Non Cash Grant of Land 9,164 - Adjustments to reconcile changes in operating assets and liabilities to cash flows from operating activities Construction in Progress & Land Inventories (201,843) (4,771) Pledges Receivable (420) - Grants Receivable, net of deferred grant revenue 19,250 (19,250) Cash in Escrow Accounts (18,867) (7,423) Accounts Payable and Accrued Expenses 17,384 7,829 Trust Fund Liability 24,891 6,230 r Net Cash Provided (Used) by Operating Activities $ (206,655) $ (344,727) Cash Flows From Investing Activities Collections on home sale contracts $ 118,431 $ 98,363 Purchase of Property& Equipment (14,390) Increase(decrease)in restricted cash accounts 3,526 1,813 Net Cash Provided (Used)by investing Activities $ 107,567 $ 100,176 Cash Flows From Financing Activities Proceeds from notes and loans 232,533 $ 294,818 Repayment of notes and loans (35,436} (37,088) Net Cash Provided (Used) by Financing Activities $ 197,097 $ 257,730 Net Change in Cash $ 98,009 $ 13,179 Cash at Beginning of Year 133,470 120,291 Cash at End of Year $ 231,479 $ 133,470 r,..i See accompanying notes to the financial statements 6- TRl-COUNTY PARTNERS HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 Note 1 Summary of Significant Accounting Policies i Organization The Tri-County Partners Habitat For Humanity (Habitat) is a non-profit organization incorporated in the state of Washington. Habitat is an ecumenical housing ministry with a mission to provide affordable housing to qualifying families. Habitat is designated as a Community Housing Development Organization (CHDO) that operates a self help home ownership program in the Tri-Cities and surrounding communities of Southeast Washington. Property and Equipment Property and equipment is stated at cost. Depreciation is provided for in amounts sufficient to charge the cost of the asset to expense over its estimated useful life. Small tools and other equipment used on the job site are expensed when acquired. The value of donated property and equipment is included in revenue at the estimated value at the time the contribution is received. Federal Income Taxes Habitat is exempt from income tax under section 501(c)(3) of the Internal Revenue Code, except for any income from activities unrelated to its exempt purpose. The Tri-County Partners Habitat For Humanity is part of a group exemption under Habitat International's determination ruling. 3 Estimates Management uses estimates and assumptions in preparing these financial statements. The estimates and assumptions used may affect the reported amounts of assets, liabilities, revenue, expenses, and disclosures. Accordingly, the actual results incurred by the Tri-County Partners Habitat For Humanity could differ from the estimated amounts. Basis of Presentation The Tri-County Partners Habitat For Humanity reports information regarding its net assets and activities according to three classes: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. As of June 30, 2007 and 2006, there are no assets that are subject to donor imposed restrictions. Consequently, There are no temporarily or permanently restricted net assets. a Functional Allocation of Expenses Direct expenses are charged to each program based upon the functional nature of the expenditure. Any program expenditures not directly chargeable are allocated to a program based upon a cost allocation plan for costs which benefit more than one program. The cost allocation plan is based upon management's estimate of the program and supporting services benefited. Revenue and Support The Tri-County Partners Habitat For Humanity receives certain grants and contracts to operate its programs primarily from other government agencies. Support received from grants and contracts may include restrictions. Certain restrictions are normally met within the same time period as the grants are earned. Accordingly, the Tri-County Partners Habitat For Humanity has adapted the policy of recognizing temporarily restricted grants whose restrictions are met within the same reporting period as unrestricted support. For grants and contracts that have the elements of an exchange transaction, Habitat recognizes r the income from such grants as it is earned and unearned amounts are presented as a liability under the caption: deferred grant revenue. -7- I TRI-COUNTY PARTNERS HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 <.; Note 1 Summary of Significant Accounting Policies (continued) Revenue and Support (continued) Contributions and gifts are recognized as revenue when a contribution is received or pledged. All contributions are considered available for unrestricted use unless specifically restricted by the donor. Restricted contributions are recorded as either temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor imposed restrictions. Restricted contributions are reported as increases in temporarily or permanently restricted net assets depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. ' The value of donated construction materials used in home construction is valued at the estimated fair value at the time the contribution is made. The value of donated services, facilities, and supplies which have no objective basis of measurement have not been recorded in the financial statements. A substantial amount of volunteers have donated a significant amount of time and resources to Habitat. Habitat has recognized $47,479 and $ 22,153 of in-kind contribution to its programs during the year ended June 30, 2007 and 2006, respectively. The value of donated Restore merchandise items are not recognized as contributions. Habitat records the value of the donated merchandise only at the time of sale. Consequently, the value of donated store merchandise on hand is not reflected in these financial statements. Management believes that no objective basis is available to estimate the value of such merchandise until the time of sale_ Habitat is r.� dependent on the donation of used goods to operate its Restore program. Note 2 Facilities Rent The Tri-County Partners Habitat For Humanity leases facilities for its administrative, support services, construction shop, and Restore retail operations. The initial lease term was for 1 year with renewal options or if the options are not exercised, on a month to month basis beginning October 2006. Minimum lease payments amount to approximately $70200 per year. In addition, Habitat leases equipment under noncancelable lease agreements with a yearly minimum lease payment of approximately$1,200. Note 3 Related Party Transactions The Tri-County Partners Habitat For Humanity when necessary, utilizes certain businesses which are owned or controlled by members of the Board of Directors or management. Tri-County Partners Habitat For Humanity purchased $-0- in services from these businesses during the year ended June 30, 2007. and 2006. Note 4 Contingencies, Economic Dependency, & Concentrations The Tri-County Partners Habitat For Humanity receives a portion of its revenues from government grants and contracts. All of the contracts or grants are subject to audit by the agency providing the grant. The ultimate determination of amounts received under some of these programs are determined by either eligibility or allowable costs reported to and audited by the grantor. There could exist a contingency to . refund any amount received in excess of allowable costs. Management is of the opinion that no material liability will result from such audits or resolution of audit findings. Habitat is dependent on the grants for the operation of certain programs including the acquisition of land. Tri-County Partners Habitat For Humanity uses grants and contracts from government agencies primarily for real estate acquisition and infrastructure improvements and not for home construction costs. The Tri-County Partners Habitat For Humanity's programs, substantially all of the donors, and its home construction and home sales programs are concentrated in Southeast Washington primarily Benton & Franklin Counties. TRI-COUNTY PARTNERS HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 Note 5 Grants The Tri-County Partners Habitat For Humanity received the following amounts from grants during the year ended June 30,2007 and 2006: Grantor 2007 2006 U.S Federal Home Loan Bank— Home$tart $ 35,000 $ 35,000 City of Kennewick 1 HUD — CHDO 25,998 City of Richland 1 HUD — CHDO 67,281 34,584 Thrivent Lutheran 120,166 49,537 Three Rivers Community Foundation 10,000 WA State Dept of Community, Trade & Economic Development 200,000 Habitat for Humanity Int'I. — Shop Grant 31,176 26,574 Total Grants $ $1zim Note 6 Pension Plan The Tri-County Partners Habitat For Humanity maintains a defined contribution (IRC Section 401(k)} plan which provides for retirement benefits based upon the actual value of contributions to each participants account at retirement. The plan covers all eligible full time employees which have elected to be covered by the plan. Note 7 Construction in Progress/Home Sales The Tri-County Partners Habitat For Humanity builds and sells low cost homes to qualified families that meet the guidelines established by the Organization. The homes are built with a substantial amount of volunteer labor including sweat equity by the potential home owner. Habitat reports revenue from construction when the completed homes are sold using the deposit method. Construction in progress represents direct material and labor costs incurred on homes under construction. The homes under construction are expected to be completed and sold during the following year. The following is a summary of home building activity, excluding donated labor, for the year ended June 30, 2007 and 2006: 2007 2006 # Costs # Costs Homes under construction at beginning of year 3 $ 139,371 2 $ 71,444 Additional costs incurred on beginning inventory 61,033 88,504 Transfers of land to construction in progress 20,418 83,720 New homes started during the year 11 638,961 7 345,824 Total construction costs incurred, excluding donated labor 14 $ 859,783 9 $ 589,492 Less costs of homes sold 7 561,329 6 450,121 Construction In progress at end of year $ $� -9- TRI-COUNTY PARTNERS HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 Note 8 Tithes to Habitat International Tri-County Partners Habitat For Humanity remits a portion of its contributions to Habitat International on a quarterly basis. Habitat International uses these funds for operations and the construction of homes in economically depressed areas around the world. The amount of tithes expensed during the year has been included in program services expense on the statement of activities. Note 9 Land Land is valued at historical cost or if donated, the estimated fair value at the time of the gift. As of June 30, 2007 and 2006, Habitat held 2 parcels of land with additional parcels under consideration. Construction or renovation on most of the parcels will begin during the following year. One parcel held by Habitat and valued at $9,164 was not suitable for construction and was donated to the City of Kennewick during the year ended June 30, 2007. Note 10 Mortgage Contracts Receivable Habitat sells the homes it builds on contract for deed. The mortgage contracts do not bear interest and are payable in monthly installments over the life of the contract, generally, 20 years. Tri-County Partners Habitat For Humanity has had no experience with past due or delinquent loans. The mortgage contracts receivable have been discounted based upon prevailing market rates for low income housing beginning July 1, 2005 or inception, whichever is later. The contracts are secured by the real estate and mature at various intervals through the year 2030 and include due on sale clauses, conditions of grant funding, and other provisions From its inception to June 30, 2007, Habitat has constructed and sold on contract 39 homes to qualifying families. The face value of the current home mortgage contracts receivable amounts to $1,960,541 with an unamortized discount of $572,633. Utilizing the effective interest method, this discount will be recognized as income over the remaining term of the mortgage contracts. Note 11 Cash in Escrow Habitat serves as escrow agent for the homeowners' property tax and insurance. Included in cash in escrow are amounts collected from the homeowners' for property tax and insurance. The cash in escrow is offset by the related trust fund liability. Note 12 Cash Subject to Withdrawal Restrictions Restricted cash consists of proceeds from accelerated asset loans that are held in bank accounts subject to withdrawal restrictions. The cash held in the restricted accounts represents the remaining amount of interest due on five of eighteen accelerated asset loans over the lives of the loans. The restricted cash is used to fund interest on the loans each month as the repayments occur. Note 14 Cash and Statement of Cash Flows Cash consists of cash on deposit with financial institutions and money market accounts. For classification purposes on the statement of cash flows, Habitat considers cash on hand and demand deposits with banks to be cash equivalents. Habitat paid total interest of $24,444 and $16,530 of which $313 and $4,570 was capitalized as part of the cost of homes constructed for the years ended June 30, 2007 and 2006, respectively. At various times during the year, Habitat's cash exceeds the amount insured by the FDIC. At June 30, 2007 and 2006 Habitat's uninsured cash balance amounted to approximately $ 46,018 and $109,188. -10- TRI-COUNTY PARTNERS HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 Note 15 Loans and Notes Payable t The Tri-County Partners Habitat For Humanity's loans and notes payable at June 30, 2007 and 2006 consists of the following: 2007 2006 Participation loan payable to Yakima Federal Savings & Loan Assn, payable In monthly installments of$144.17 beginning November 1, 1997, including interest at zero percent rate (0%). Secured by a mortgage contract receivable. $ 14,078 $ 15,808 Accelerated asset loans payable to Yakima Federal Savings & Loan Assn., payable in monthly installments of$5,641.05 including interest at 4.5% to 5.375%. Eighteen individual loans are secured by eighteen mortgage contracts receivable. Additional borrowings ' ' occurred during 2008 681,041 473,235 Loan payable to American West Bank payable in monthly installments of $250 '' beginning September 2003, including interest at zero percent rate (0%a).Secured by a mortgage contract receivable. 18,500 21,500 SHOP loans payable to Habitat Internationai payable in monthly installments of$449 beginning July 2002, including interest at zero percent rate (0%). Unsecured. _ 14.467 20,446_ Total Long Term Debt $ $� Estimated maturities of long term debt are as follows: June 30 2008 $ 45,183 2009 46,917 2010 48,768 2011 45,896 2012 47,933 Thereafter 493,389 Total $ 2$ -11- O o (n r Q CN a) L � - W V) C 0 cr W �' � +r ^�` � •fit' •� �,• 0 E E C 3 0 O >O E C N O) C a) E O C ? W � Jo 3 O N — L (4 0 o a) u m � 4a)+ ° to N (>p to �S Eo Q) C O .Y O L U � CL a) ° >, 0 ° oE ' x 0) (A N '0 C U t (J7 . LUL > .a Ln o o CU E o a) ? -0 o n r' E � n v Q ° Q (aC : r ° (ts O ° ° °, ro 70 ca a) Q O O i Zn L SG - f-- 3 C O Q m cLn O a ca a) °) 3 o Q ° m y >, o, x CL E 3 O o o ra o r v 0) C L E c C) a j C3 C O E 0 U) Q e •CJ N ° (U CA O N C cn � � N O 70 U L {D cn C .� Q) O (/I C LF- L' O a .N L C U N O D (U a) - a C O O a) L6 -0 O a 0 r- �) t �c N O m m 0 L "0 O E 5 C C (-• (0 L C N Q 03 N a) Q) L C 3s r:'. co CO a) c O .� t0 O c O O a) ? Q Q C a) O E O ° O O U O � 4 Q ° � (n E s N v 3 a o ;. c 3 3 U v >, ° t- Q 0 O u ( 3 o 0 -0 C o > U CL (n N u >' (D o si c ° E a) _M 0 ° c v} a) E E O O O O Q) T V J N V Q O (n U ^L+ U T (Z .0 _� a) X Q) " UJ T3 E �+ C a) L 0 Q) 0 a ro o L O 5 m o 0 0 4) >, ii Q Q � m f— 2 CO > U z 3 o a) 2 r- CD 0 N (II `M o r� CL m •:'.� ':: •i3:• 1 t0 %` (U O cn N O > E U U C (n U) L U N ; a) ro cv E n• N CD aa) Cl) c W c cv O o � �- U � Q O ca p cli cv U O CL � ° U `—° c c O W . o v,LU OL L) p m T CQ 7C) CL U_ to m m ° Q- Q m ai in ca v »- t E -o o c a� to c m C to C f6 () L L +' (B CV Z L > W U a> > U i% -It LL d U m > C/) c!? !— +�- y.:r •L '��•lj' W co co 0 ' C m C O > m E U O (a A U CA i N c 2 c {0 U ,� U (D U m C N tU N N N cm ` H N v) Y > Y 0 co m u° Reference B RESOLUTION NO. A RESOLUTION AWARDING 2008 HOME CHDO SET-ASIDE GRANT TOTALING $92,253 TO TRI-COUNTY PARTNERS HABITAT FOR HUMANITY TRI-CITIES. WHEREAS, the City of Pasco entered into an Agreement with Kennewick and Richland in 2007 continuing participation in a Consortium originally formed in 1996 under the Home Investments Partnership (HOME) Program; and WHEREAS, the Consortium allows the three cities to be eligible for federal HOME funds, of which 15% of these funds are earmarked for federally designated Community Housing Development Organizations (CHDOs); and WHEREAS, the three cities rotate responsibility for distribution of HOME CHDO funds and the City of Pasco is responsible for distributing HOME CHDO funds totaling $92,253 for 2008; and WHEREAS, all qualified CHDOs in the Tri-Cities metropolitan area were solicited to submit proposals and the City received one proposals on August 6, 2008 which was reviewed by HOME Consortium representatives; and WHEREAS,the HOME Consortium determined that the Tri-County Partners Habitat for Humanity Tri-Cities proposal to use the $92,253 and leverage $497,000 of their own funds to construct seven homes in the Tierra Vida subdivision and provide direct financial assistance would best meet the City's housing goals of increasing the supply of affordable housing and promoting home-ownership; Now, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PASCO: Section 1. The City Council award 2008 HOME CHDO funds totaling $92,253 to PASSED by the City Council of the City of Pasco this day of , 2008. CITY OF PASCO: Joyce Olson Mayor ATTEST: APPROVED AS TO FORM: Sandy L. Kenworthy Leland B. Kerr Deputy City Clerk City Attorney TIERRA VIDA Reference C Census Tract 201, .Block Group 4 CENSUS BLOCK 'YoLOWIMODERATE TRACT GROUP INCOME PERSONS 201 ALL 74.6 200 67 400 90.5 8 77 8 Iq �G 2011 W T Low Sr I## TFF �g rte, ■�■�i ACTIVITYLOCATION ® AC77VI YBENEFITAREA �� CENSUS TRACT BOUNDARY •'�Y'." air'' � d"� '„1•. "-f� S i.f Nt i• IN N M M ,3 CI4 N Ca M O CL , ._i NO co s �` M• w' "? �.i Y'� '. `'` i'. - s" to •� 4 i,c: WM` r• °' � r w � 4y `� :.yi'• '�� '«�' `r 6�$i P Vii.4�.,1i• ��, h �;ep.. j. TRi-CITIES HOME CONSORTIUM CHDO (Owner, Developer, or Sponsor) CONTRACT AGREEMENT This HOME Program CHDO Recipient Agreement, hereinafter called "Agreement", has been made and entered into as of the 2nd day of September , 2008, between the Tri-Cities HOME Consortium consisting of the participating jurisdictions of the Cities of Richland, Kennewick and Pasco, hereinafter called "Consortium", and Tri-County Partners Habitat for Humanities —T a qualified non-profit public agency, and a community housing development organization (CHDO) whose address is 313 Wellsian Way, Richland, Washington 99352 ,hereinafter called "Recipient" as authorized by Title II, Section 216 and 217 of the National Affordable Housing Act of 1990, and with 24 CFR Part 92, also known as the HOME Investment Partnerships (HOME) Program_ Recitals WHEREAS, the Federal Government has made funds available to Consortium pursuant to the HOME Program to increase the number of families, especially low income families, served with decent, safe, sanitary and affordable housing and to expand the long term supply of affordable housing; and WHEREAS, the Consortium seeks the maximum use of such funds consistent with the HOME Program, the objectives of which are to provide incentives to develop and support affordable rental housing and home ownership affordability through the acquisition, reconstruction, moderate or substantial rehabilitation or new construction of affordable housing; and WHEREAS, the HOME Program authorizes contracts with community housing development organizations, (CHDO), private developers, non-profit organizations, and public agencies to carry out the objectives identified above; and WHEREAS, in the case of CHDO the HOME Program also authorizes the use of program funds to provide technical assistance and site control loans in the early stages of project development, to provide loans to cover pre-construction project costs that Consortium determines to be customary and reasonable, and to provide education and organizational support. NOW, THEREFORE, the parties, for and in consideration of the promises and mutual obligations set forth below, agree as provided for in this agreement. Section 1 — Definitions HOME Funds — the total amount of HOME Program dollars being provided by the Consortium to the Recipient under this Agreement. HOME Assisted — Those units in the Project, which were partially or totally rehabilitated, constructed, or otherwise, assisted with the use of HOME Funds. 1 Pr_oiect — the activity and result for which HOME Funds are being provided under this Agreement. Regulations — the requirements in 24 CFR Part 92 which govern the HOME Program and the use of HOME Funds, and all related and applicable OMB Circulars, Codes, Regulations and requirements. Section 2 — The Project HOME Funds are being made available by the Consortium to the Recipient for the purpose of promoting affordable housing to very low, low and moderate-income families, through the acquisition, and construction of non-luxury housing with suitable amenities, including site improvements, conversion, demolition, and other expenses such as financing costs, hereinafter called the "Project". Section 3 — Sources and Uses of Funds The total amount of HOME Program dollars, hereinafter called "HOME Funds", to be allocated to the Project is Ninety-two two hundred fifty-three dollars and no/100 ($92,253). HOME Funds to be allocated are consortium Fiscal Year (Jan-Dec) 2008 funds. The limit of financial exposure for the Consortium and its individual members is specifically $92,253 . Project Description (Be Specific): Tri-County Partners Habitat for Humanity proposes utilizing the $92,253 for construction of seven homes in the Tierra Vida Subdivision (Census Tract 201, Block Group 4). Specifically the recipient will use federal HOME Funds to: $87,640 will be used for direct financing for seven low-income families from November 2008 through November 2011 and $4,613 will be used for project delivery. The 2008 HOME CHDO Grant Application by Recipient is by reference made a part of this agreement. Projected dates for completion of significant items are as follows: Date Work to be Completed December 31, 2008 Finalize Grant Award March 31, 2009 3 Homes completed and sold, construction continues on 3 June 30, 2010 3 Homes completed and sold; construction continues on 1 September 30, 2011 1 Home completed and sold December 31, 2011 Proiect Completion The Agreement will be effective upon signing by all parties, and authorization of environmental review and clearance, and all project work will be completed no later than December 31, 2011. Failure to complete the project as agreed upon or comply with HOME Program and other applicable local, state or federal requirements can result in a breach of this agreement and cause any HOME funds drawn or incurred to become 2 immediately due and repayable to the City of Richland, lead entity for the Tri-Cities HOME Consortium. Scope of Work: The Recipient will act as project coordinator, and will market the homes in accordance with applicable HOME rules and regulations to households whose gross annual household income is at or below 80 percent of median under Income guidelines established annually by the U.S. Department of Housing and Urban Development (HUD) for the Tri-Cities area. Income documentation will be in a form consistent with HOME requirements as stated in the HUD handbook "Technical Guide for Determining Income and Allowances Under the HOME Program". Income verification of the household must be re-examined to determine continued eligibility for the HOME Program if the closing of the property or recordation of the Deed occurs later than 6 months from initial income verification. The Recipient will lend funds to individuals in an amount sufficient to make the homes affordable. The City of Pasco, as a participating jurisdiction of the Tri-Cities HOME Consortium, will be named as mortgagee on the properties secured by a recorded Deed and Note as required by 24 CFR 92.254 for a period not less than the period of affordability. The HOME funds shall be no lower in priority than second position on the property unless prior written authorization is granted by the participating jurisdiction and/or the Consortium. Project beneficiary information pertaining to household size, income levels, racial/ethnic characteristics, disability status, household composition, Female Head of Household composition, and any other information required by HUD, will be collected and documented in an individual and cumulative manner. The Recipient and/or participating jurisdiction will monitor each housing unit for principal residency as provided at 24 CFR 92.254(a)(3) upon completion of the project and during the period of affordability. The Recipient agrees that it is now and will maintain CHDO status for the term of the project in accordance with 24 CFR Part 92, and agrees to provide information as may be requested by the Consortium to document its compliance_ Section 4 — Displacement/Relocation Requirement Any project that might displace a person, family, business, non-profit organization, or farm must be approved by the participating jurisdiction (City) and the Consortium prior to any final commitment of HOME funds for the project, or of entering into any type of agreement, whether verbal or written with another party_ Failure to receive prior approval may cause the forfeiture of any and all sums under this agreement by the Recipient. Section 5 — Environmental Review The effects of each activity related to the Project must be assessed in accordance with the provisions of the National Environmental Policy Act of 1969 and the related 3 authorities in 24 CFR Parts 50 and 58, and as detailed in 24 CFR Part 92, § 92.352. The Recipient must, prior to undertaking any choice limiting or physical activity with respect to the Project, regardless of whether such activity is to be funded by the HOME Funds, comply to the extent applicable, with the regulations found at 24 CFR Part 58. All applicable environmental review and clearance requirements as provided in 24 CFR 58.5 must be completed by the lead consortium member and approved by the U.S. Department of Housing and Urban Development prior to any commitment by the Recipient of HOME dollars or commencement of any part of the project. The Recipient will abide by any special conditions, procedures and requirements of the environmental review and will advise the lead entity of any proposed change in the scope of the project or any change in environmental conditions in accordance with 24 CFR 58.71(b). The Recipient may not use any of the HOME Funds for acquisition or construction in identified special flood hazard areas unless the Project is subject to the mandatory purchase of flood insurance as required by Section 102(a) of the Flood Disaster Protection Act of 1973. Failure to comply with this provision will cause an immediate cancellation of this Agreement and forfeiture of the HOME funds. Section 6 — Disbursement of Funds The Recipient may request funds under this Agreement only when they are needed for payment of specific allowable costs described herein, and only in amounts needed to pay such costs. The Recipient shall be reimbursed for eligible project costs after review and approval by the participating jurisdiction of invoices, statements, and other billings, and property inspection if applicable. Upon prior approval, the Consortium may pay a vendor or contractor directly_ Section 7 - Relationship The relationship of the Recipient to the Consortium shall be that of an independent agency. Nothing herein shall be deemed to create the relationship of employer/employee or principal/agent between the parties. Section 8 - Modifications And Amendments All modifications and amendments to this Agreement shall be in writing; such modification or amendment shall not take effect until specifically approved by the Consortium in writing. Section 9 -Waivers No conditions or provisions of this agreement can be waived unless approved by the Consortium in writing. Section 10 —Assignability The Recipient shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement to any party (whether by assignment or novation) without prior written consent of the Consortium. 4 Section 11 - Severability If any provision of this Agreement, or portion thereof is held invalid by any court of rightful jurisdiction, the remainder of this Agreement shall not be affected providing the remainder continues to conform to applicable Federal and State law(s) and regulations and can be given effect without the invalid provision. Section 12 - Insurance And Bonds The Recipient and its employees, volunteers, contractors or consultants shall carry throughout the life of this Agreement, General Liability Insurance, Comprehensive Automobile Liability Insurance and other such coverage as may be appropriate or required by State or Federal law, for the services to be performed. Properties improved, acquired or rehabilitated with HOME funds will be insured until such time that the final disposition of the property occurs. Copies of such documents will be forwarded to the lead entity of the Consortium prior to the start of work for the project. Section 13 — Procurement Standards The Recipient will establish procurement procedures to ensure that materials and services are obtained in a cost-effective manner. When procuring for services to be provided under this agreement, the Recipient shall comply at a minimum with the nonprofit procurement standards at 24 CFR 84.40-48. In addition, it is understood that any Recipient that can be considered to be a religious organization shall abide by all portions of 24 CFR 92.257, Section 14 — HOME Program Requirements HOME Funds are made available to Consortium and subsequently to Recipient as authorized by 24 CFR Part 92, referenced and other applicable documentation, hereinafter called the "Regulations". Recipient agrees to comply with all requirements of the Regulations. Should anything in this Agreement be construed to conflict with Regulations, it is the Regulations, which shall prevail. Section 15 — Match Requirement The HOME program requires a non-federally funded 25 percent match. The Recipient and/or participating jurisdiction is required to document sources of match, both cash and in kind and submit this information to the lead entity of the Consortium. The Recipient X will will not provide the 25 percent match. The Recipient will provide 25% match which ($23,063.25) match is due at project completion. The Recipient will provide progress reports of match status as requested by the Consortium. Section 16 — Period of Compliance/Period of Affordability The HOME-assisted housing must meet the affordability requirements established at 24 CFR 92.254(4) for owner occupied units, for a period not less than specified in the following table: Homeownership Assistance Minimum Period of Affordability HOME amount per unit In Years 5 Under $15,000 i 5 $15,000 to $40,000 10 Over $40,000 15 New Construction of Rentals 20 This period of compliance is called the Period of Affordability for the Project, beginning after the Project is completed and occupied by a very low, low or moderate-income household, and without regard to the term of the loan or the transfer of ownership, except as noted below. Section 17 —Termination of Period of Affordability The applicability of the Regulations may be terminated upon foreclosure or transfer in lieu of foreclosure per Consortium's and U.S. Department of Housing and Urban Development approval. The applicability of the Regulations shall be revived according to the original terms if during the original Period of Affordability, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Section 18 — Recapture Requirements and Resale Requirements To insure affordability, this project adheres to resale/recapture requirements and Recipient must impose resalelrecapture requirements to comply with the standards set forth in 24 CFR Part 92, § 92.254(a)(5). Language insuring the funds during the period of affordability must be included in all contract documents. Funds that are recaptured by the Recipient and/or the participating jurisdiction from the sale of the property by the homeowner, or if the property is no longer used as their primary residence during the period of affordability as required by 24 CFR 92.254(a)(4)-(5) must be immediately returned to the Consortium_ Section 19 — CHDO Proceeds The Recipient ®will ❑ will not be eligible to retain CHDO Proceeds to be used for other affordable housing activities to benefit very low, low and moderate- income persons. CHDO proceeds are funds resulting from the permanent financing of a CHDO project which is used to pay off a CHDO financed construction loan; the sale of CHDO sponsored rental housing to a second non-profit; the sale of CHDO developed homeownership housing; the principal and interest payments from a loan to a buyer of CHDO developed homeownership housing, etc. Once CHDO proceeds are used once, there are no further HOME requirements that must be met. Section 20 — Property Standards Upon completion, the housing assisted with HOME Funds must meet the housing quality standards in 24 CFR Part 92, § 92.251, accessibility standards at 24 CFR 92.251(a)(3) and lead based paint requirements as found in 24 CFR 92.355 and 24 CFR Part 35. The housing must also meet all State of Washington and local standards, zoning, and ordinances. Newly constructed housing must meet the current edition of 6 the Model Energy Code published by the Council of American Building Officials and local building standards. Section 20 — Non-Discrimination and Equal Opportunity The Recipient agrees that they will utilize and make available the HOME Funds in conformity with the non-discrimination and equal opportunity requirements set out in the HUD regulations in the National Housing Affordability Act. These regulations include: 1. The requirements of the Fair Housing Act, 42 U.S.C. 3601-20, and implementing regulations at 24 CFR Part 100; Executive Order 11063 (Equal Opportunity in Housing) as amended by Executive Order 12259 and implementing regulations at 24 CFR 107; and Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, and implementing regulations at 24 CFR Part 1 (Nondiscrimination in Federally Assisted Programs); 2. The prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and the regulations at 24 CFR 146-, 3. The prohibitions against discrimination on the basis of handicap under Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR, Part 8; 4. The requirements of the Executive Order 11246 (Equal Employment Opportunity) and the regulations issued under the Order at 41 CFR Chapter 60; 5. The requirements of Section 3 of the Housing and Urban Development Act of 1968, 12 U_S_C. 1702u (Employment Opportunities for Business and Lower Income Persons in Connection with Assisted Projects); and 6. The requirements of Executive Orders 11625 and 12432 regarding Minority Business Enterprise, and 12138 regarding women's Business Enterprise, and regulations S.85.36(e) of Section 281 of the National Housing Affordability Act; and 7. The requirements of Washington State Law as found at RCW 49.60. Section 21 —Affirmative Marketing, MBEIWBE Records and Reports Affirmative marketing steps will be taken to provide information and otherwise attract eligible persons in the housing market area to the available housing without regard to race, color, national origin, sex, religion, familial status or disability. Affirmative marketing procedures must include requirements detailed in 24 CFR Part 92, §92.351. A detailed affirmative marketing plan must be submitted to the lead entity of the Tri- Cities HOME Consortium at the start of the project. 7 The Recipient will document and provide data on the outreach steps taken to assure that minority business (MBE) and women's business enterprises (WBE) have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services. Recipient will report to the lead entity of the Consortium the contracts or subcontracts awarded to MBE and WBE businesses for the project. Section 22 — Labor Standards — Prevailing Wage Determination If this agreement is for a construction activity, the Davis-Bacon Act or State of Washington Prevailing Wage Requirements may be applicable. ® It has been determined by the U.S. Department of Housing and Urban Development, Office of Labor Relations that there will X will not be applicability of Davis-Bacon requirements to this project. ® It has been determined by the State of Washington Department of Labor that there X will will not be applicability of State Prevailing Wage Requirements, as long as CHDO funds are only used for the purchase of land and development fees. Should HOME funds be made available for other project costs, the Recipient agrees to comply with the decision regarding applicability as determined by the State of Washington Department of Labor and/or the U.S. Department of Housing and Urban Development Labor Division. The Recipient will ensure that written Federal Labor Standards Provisions and/or State Prevailing Wage Rates will be included and implemented in all contract and sub-contract documents, and the Recipient will carry out the responsibilities and duties as established by the U.S. Department of Housing and Urban Development. Section 23 — Lead Based Paint The Recipient must comply with the U.S. Department of Housing and Urban Development Lead Based Paint Regulations (24 CFR Part 35) issued pursuant to the Lead Based Paint Poisoning Prevention Act of 1971 (42 U.S.C. Sections 4821, et.seq.) requiring prohibition of the use of lead based paint whenever HOME funds are used directly or indirectly for construction, rehabilitation, or modernization of residential structures; elimination of immediate lead based paint hazards in residential structures; and notification of the hazards of lead based paint poisoning to purchasers, tenants, and/or owners of residential structures constructed prior to 1978. The Recipient will be responsible for hiring an independent Environmental Protection Agency (EPA) or State of Washington certified Lead Based Paint risk assessor, inspector or clearance examiner for rehabilitation work. The Recipient will assure that contractors and sub- contractors comply with all applicable guidelines and regulations for the elimination of lead based paint hazards as established under OSHA Lead in Construction Industry Standard, 29 CFR 1926.62; EPA Lead Standard 40 CFR 745; and Title X of the 1992 Housing and Community Development Act, as amended, and established by HUD, 24 CFR 35, and 24 CFR 92.355. Section 24— Conflict of Interest Generally, no employee, agent, member, consultant, officer or elected or appointed official of the members in the Consortium or Recipient who exercises or has exercised any functions or responsibilities with respect to any activities that are in any way connected with the decision to provide the HOME Funds may obtain a financial interest, reside in, or benefit from those activities, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter as stated in 24 CFR 92.356, and the Recipient must take appropriate steps to assure compliance. Section 25 — Records Records must be kept by the Recipient and be made available to the Consortium that demonstrates compliance with this Agreement. Records must be maintained for at least five years after the project completion date, except for documents imposing recapture/resale restrictions which must be retained for five years after the Period of Affordability, specified in Section 6 above, has expired, or as any of the following apply: 1) Records that are the subject of audit findings must be retained for three years after such findings have been resolved, 2) Records for non-expendable property (as defined in OMB Circular #A-110 for non- profit organizations) shall be retained for three years after its final disposition. Project pre-construction, construction, and project management records must be kept which demonstrates compliance with this Agreement and related regulations. Financial management records must be kept and identify the source and application of funds for 9 the Project, in accordance with 24 CFR Part 85 and OMB Circulars A-110 and A-133 for non-profit agencies. The Recipient agrees to provide any and all information as may be requested by the Consortium or participating jurisdiction to document compliance with the HOME Program and related laws, rules, regulations and policies. Section 26 — Monitoring At least annually, the Consortium Lead Entity will monitor the performance of the Recipient to assure compliance with the requirements of this Agreement. The review may include on-site inspections and review of all records to determine compliance with this Agreement through the contract and affordability period. The Recipient agrees to provide any and all information to the Consortium to assist in meeting administrative and monitoring requirements. Any duly authorized representative of the U.S. Department of Housing and Urban Development, authorized federal or state agent, or the Consortium shall at all reasonable times have access to and the right to inspect, copy, audit, and examine all books, records and other documents relating directly to the Recipient's receipt and disbursement of the HOME Funds, as well as access to the project site(s) and all project records. Section 27 — Financial Responsibility The recipient agrees that it is financially responsible (liable) for any audit exception which occurs due to its negligence or failure to comply with the terms of this agreement. Section 28 —Timeliness of Expenditures Time is of the essence in this agreement. HOME funds unspent as of the 31st day of December_, 2008 will be recaptured by the Tri-Cities HOME Consortium for redistribution by the representative city to another qualified applicant, unless written extension approval prior to the date of expiration is made between all signatory members of this agreement. Section 29 — Status Reports The recipient will be required to provide status reports to the City of Richland, lead entity for the Tri-Cities HOME Consortium, on the project or program being funded. The reports shall be submitted within 15 days of the end of each calendar year quarter (by April 15, July 15, October 15 and January 15) and shall continue until the project or program has been completed. The status reports shall include a description of the activities undertaken during the prior quarter, reporting on the goals achieved, the assistance provided to clients in the program, the number of homes constructed, and the number of families assisted. At the completion of the project a final report shall be provided indicating the accomplishments realized, the strengths and weaknesses of the project, total number of houses built or rehabilitated, total number of persons assisted, etc. Final record retention shall be the property of the participating jurisdiction and shall be delivered to same, if so requested. 10 Section 30 — Indemnification The Recipient will save and keep harmless and indemnify the Consortium and its individual representative members against any and all liability, claims and costs of whatsoever kind and nature for injury to or death of any person or persons and for loss or damage to any property occurring in connection with or in any way incident to or arising out of activities undertaken under this agreement. Section 31 -- Corrective and Remedial Action Recipient will immediately correct or cause to be immediately corrected, any and all actions or performance deficiencies in the project as may be determined by the lead entity for the Tri-Cities HOME Consortium or the U.S. Department of Housing and Urban Development. Failure to correct such actions or performance deficiencies within 30 days from written notification may result in suspending HOME funds for the above described project, the cancellation of this contract, the reprogramming of HOME funds to other eligible activities, or the repayment of the HOME funds. Section 32 —Attorney's Fees-Costs In the event of a lawsuit between the parties to this agreement, the prevailing party shall be entitled to recover judgment against the other party for reasonable attorney's fees and other costs either at trial or on appeal. If either party exercises any non-judicial right or remedy to enforce such party's rights hereunder, it shall be a condition for the cure of the default that the defaulting party will pay the non-defaulting party's reasonable attorney's fees incurred and all reasonable costs. Failure to pay such costs and reasonable attorney's fees shall constitute an event of default under this agreement. Section 33 — Venue and Law Venue for any action under this contract shall be in BentonlFranklin County, Washington. This agreement shall be governed by the laws of the State of Washington. Section 34 — Amendment to the Agreement This agreement can only be amended in writing signed by the Consortium, the participating jurisdiction and the Recipient. Section 35 — Cancellation of Agreement This agreement may be cancelled for cause or not for cause by providing written 30 days notice by certified mail, return receipt requested, to the other signatory members of this agreement. HOME funds not committed to specific projects as of the cancellation date will be relinquished to the Consortium for redistribution to other qualified projects. 11 RECIPIENT: CONSORTIUM: Tri-County Partners Habitat for Humanity Tri-Cities HOME Consortium 313 Wellsian Way P.O. Box 190, MS 20 Richland, WA 99352 Richland, WA 99352 Signature Signature Theresa Richardson, Executive Director Cynthia D. Johnson, City Manager Habitat Humanity Tri-Cities City of Richland Date Date PARTICIPATING JURISDICTION: Gary Crutchfield, City Manager City of Pasco Date APPROVED AS TO FORM: Thomas O. Lampson, City Attorney City of Richland 12 AGENDA REPORT FOR: City Council August 7, 2008 TO: Gary Crutchfi iinstral W anager FROM: Stan Strebel, i 'v e d Community Workshop Mtg.: 8/18/08 Services Director � Regular Mtg.: 9/2/088 SUBJECT: PMC Amendments Regarding Judicial Appeals I. REFERENCE(S): L Proposed Ordinance 11. ACTION REQUESTED OF COUNCIL /STAFF RECOMMENDATIONS: 8/18: Discussion 9/2: Motion: I move to adopt Ordinance No. amending the Pasco Municipal Code regarding "Judicial Appeals" and authorize the publication by summary only. III. FISCAL IMPACT: IV. HISTORY AND FACTS BRIEF: A) The Pasco Municipal Code provides for numerous administrative decisions either by staff or the City Council. Each decision creates an administrative record which documents the decision process and conditions. The Code lacks uniformity in requiring that appeals of administrative decisions be based on the administrative record and in the timetable within which such appeals must be filed. B) The City Attorney has drafted language to establish a general default provision covering how and when appeals of administrative decisions are to be made, if not otherwise specified in the Code. The proposed 21 day period is deemed reasonable under most standards. The language further specifies the responsibility for the cost and preparation for the necessary record of proceedings. C) Amendments are also proposed to three sections of the Code (5.27 — Adult Entertainment License, 11.02 Code Board Decisions and 15.60 Right of Way Permits) which reference appeal periods that are shorter than the proposed 21 day standard. D) Staff recommends approval of the Ordinance. 4(d) ORDINANCE NO. AN ORDINANCE of the City of Pasco, Washington, Creating Section 1.01.170 "Judicial Appeals" and Amending Sections 5.27.180; 11.02.060 and 15.60.010 regarding Appeals. WHEREAS, all administrative decisions decided under the Pasco Municipal Code create an administrative record; and WHEREAS, the City Council intends that any appeal from an administrative decision to Franklin County Superior Court be based on the administrative record; and WHEREAS, it is thereby necessary that a new Section of the Pasco Municipal Code be created to specifically require all appeals to be based on an administrative record, and that other sections of the Code be amended to reference the new section,NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. That a new Section 1.01.170 entitled "Judicial Appeals" of the Pasco Municipal Code, shall be and hereby is created and shall read as follow: 1.01.170 JUDICIAL APPEALS A) Appeals from the final decision of the hearing examiner, or other City board or administrative body involving the Pasco Municipal Code and for which all other appeals specifically have been timely exhausted, shall be made to the Franklin County Superior Court as an appeal on the administrative record within twenty-one (21) days of the date of the decision or action became final, unless another applicable appeal process or time period is established by this code. B) Notice of the appeal and any other pleadings required to be filed with the Court shall be served as required by law within the applicable time period. C) The cost of transcribing and preparing all records ordered certified by the Court or desired by the appellant for such appeal shall be borne by the appellant. The record of the proceedings shall be prepared by the City or such qualified person as it selects. Section 2. That Section 5.27.180J of the Pasco Municipal Code is amended to read as follows: J) Either party may seek review of a final decision of the City Council by commencing an action for review in the Fr-apAdin County Sepefier- Couft within (10) days ef t �f the City Ce il's mute a pursuant to the general appeal period as set forth in l��.µy V1 L11V VSL �V{.illn Chapter 1.01 of this Code. (Ord. 3560 Sec. 25, 2002; Ord. 3262 Sec. 3, 1997.) Ordinance Creating 1.01.170 - 1 Section 3. That Section 11.02.060(6) of the Pasco Municipal Code is amended to read as follows: (6) Appeal to Superior Court. An appeal of the Code Enforcement Board's decision must be filed pursuant to the general appeal period as set forth in Chapter 1.01 of this Code.. with the Franklin GeurA:y Super-ior ealendar- days ffem the date ef the Gede „mod, or is thereafter barred. (Ord. 3190 Sec. 1, 1996). Section 4. That Section 15.60.010(G) of the Pasco Municipal Code is amended to read as follows: (G) Unless otherwise provided by state statute or other law, all actions seeking review of a final action of the City, whether in the form of an appeal, declaratory judgment action, petition for writ of review, or other extraordinary writ, or in any other form shall be filed w urp suant to the general appeal period as set forth in Chapter 1.01 of this Code or are thereafter barred. Section 5. This Ordinance shall take full force and effect five (5) days after its approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, and approved as provided by law this day of 32008. Joyce Olson, Mayor ATTEST: APPROVED AS TO FORM: Debbie Clark, City Clerk Leland B. Kerr, City Attorney Ordinance Creating 1.01.170 - 2 CITY OF PASCO SUMMARY OF ORDINANCE NO. ORDINANCE NO. , is an ordinance amending the Pasco Municipal Code regarding "Judicial Appeals". This ordinance: • Creates a new Section 1.01.170 entitled "Judicial Appeals". • Amends Section 5.27.180J. • Amends Section 11.02.060(6). • Is effective five days after publication. The full text of Ordinance No. ' is available free of charge and will be mailed (electronically or via postal service)to any person who requests it from the City Clerk of the City of Pasco (509)545-3402, P.O. Box 293, Pasco, Washington 99301-0293. Sandy L. Kenworthy, Deputy City Clerk