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HomeMy WebLinkAbout1605 Resolutionlls, City Clerk RESOLUTION NO 1605 A RESOLUTION revising the Housing Rehabilitation Program. WHEREAS, the City Council finds the Housing Rehabilitation Program, funded with annual Block Grant monies over the past three years, requires revision to include a prioritization of reha- bilitation needs and to assure full recovery of the rehabilitation funds expended on any dwelling, NOW, THEREFOPE, BE IT RESOLVED BY THE CIIIY COUNCIL OF THE CITY OF PASCO, TJAS'-'INGTON: That the attached Program Statement for the Housing Rehabilitation Program is hereby approved. PASSED by the City Council of the City of Pasco this 19 day of September , 1983. ATTEST: , APPR•ED AS TO FORM: Greg R tello, City Attorney COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM STATEMENT HOUSING REHABILITATION DEFERRED LOAN PROGRAM CITY OF PASCO, WASHINGTON July 1983 IT'S YOUR NEIGHBORHOOD IT'S YOUR CHOICE TABLE OF CONTENTS INTRODUCTION • .. 1 PRIORITIZATION OF APPLICATIONS... • .... 2 ELIGIBILITY REQUIREMENTS 4 ELIGIBLE IMPROVEMENTS.... ... • .. ... 7 FINANCIAL REQUIREMENTS/LIMITATIONS.. ...... 8 SYNOPSIS OF LOAN PROCESS ........ .... . . . . 10 SYNOPSIS OF CONTRACT PROCESS 11 INTRODUCTION The City of Pasco annually receives an amount of federal funds under the Community Development Block Crant Program. Those funds are budgeted each year by the City Council to finance a variety of "community development" programs and activities One of those programs is called the Housing Rehabilitation Program This program is part of the City's overall effort to assure its citizens reside in safe, decent and sanitary dwellings. Under this program, the City will finance all improvements necessary to correct substandard conditions of a single-family home occupied by a lower-income family. Federal rules prohibit the use of these funds for renter-occupied units as well as any family which exceeds applicable income limits. Consequently, an application process is used to assure that all federal and city rules are met The program uses what is called a "deferred loan" to finance the Improvements and repay the funds to the program. It is similar to getting a loan from the bank, except the homeowner is not required to make monthly or annual payments. Rather, the homeowner signs a promissory note and property lien which are filed with the property records. No payment whatsoever is required until the property is transferred to another person; at that time, the full amount of the promissory note is due and payable to the City. Any such payment is returned to the City's Block Grant Program, to provide assistance to other lower-income families. For information concerning this program, contact the Community Development Department, City Hall, 412 West Clark Street (545-3441) PRIORITIZATION OF APPLICATIONS In order to assure rehabilitation funds are directed toward those households most in need, the first quarter (three-month period) of each program year will be reserved for the solicitation and acceptance of applications (this policy does not, however, prohibit submittal of applications during the balance of the program year). At the end of the first quarter, those applications received by the close of business on the last working day of the quarter will be prioritized in two (2) steps, as follows STEP 1. All applications will be assigned one of the two following categories- Category A. A dwelling unit which reflects any one of the following conditions as these conditions are defined in Chapter 10, Uniform Housing Standards Lack of or hazardous plumbing, Lack of or hazarouds mechanical equipment, Lack of or hazardous wiring, Structural hazards. Category B- Any dwelling unit which does not reflect one of the conditions under Category A will be assigned Category B. STEP 2. Once assigned a category under Step 1 (above), each applica- tion will be ranked in accoreance with the following priority array based on the household characteristics Priority Category Criteria 1 Very Low Income (VLI) Elderly* Household 2 VLI Non-Elderly Family** w/SHH*** 3 VLI Non-Elderly Household 4 Lower Income (LI) Elderly* Household 5 LI Non-Elderly* Family** w/SHH*** 6 LI Non-Elderly Household "Elderly" means at least one and 50% of the owners are 60 or more years of age. ** "Family" means any household with one or more dependent children under the age of 18 years. *** "SHH" (Single Head of Household) means a family with only one parent/guardian -2 Within each priority category, applications will be further prioritized by date of application. The entire Housing Rehabilitation allocation for the respective program yeat, less reasonably anticipated administrative expenses, will then be obligated through the bidding process by priority category. If all of the priority categories are obligated and sufficient funds remain for additional contracts, those applications received after the close of the first quarter will be obligated by date of application only. If the Rehabilitation allocation is not sufficient to cover all categorized first-quarter applications, those not funded in that program year will be carried over to the next program year within the same category of priority. by -3 ELIGIBILITY REQUIREMENTS DWELLING CONDITIONS. (1) The structure must have one or more substandard conditions, as determined by the City in accordance with the adopted Uniform Housing Code. (2) The structure to be Improved must be a single-family dwelling. (3) The property must be owned (or being purchased) and occupied by the applicant. (4) The applicant must have owned (or been purchasing) the property for at least one continuous year prior to application (5) City taxes on the property to be improved must be paid and current. INCOME ELIGIBILITY. Annual household income during the preceding three years must not exceed applicable income limits for Section 8 Rent Subsidy Loans in the Pasco area. Household income is defined as the total income received by all household members residing in the structure as their usual place of residence, excluding income from dependent minor children, less deductions from unusual expenses. These include 1. Medical expenses which exceed three percent (3%) of the annual household income and are not covered by insurance. 2. Annual expenditures for child care to enable employment by a member of the household. 3. Cost of care of disabled or handicapped family member, to the extent not covered by insurance. 4. The following sources of income and any other income which must be reported as taxable income under the Internal Revenue Code must be considered in determining gross family income (a) Wages and salaries including all compensation for regular overtime, all other earnings and compensation for personal services, such as commissions, fees, tips, etc , and all income received by military personnel except items excluded in 5 (e); payment in kind, such as meals for food, is not regarded as compensation, acid gross income includes the full amount of earnings before payroll deductions are made for any purpose, (b) Net profits from the operation of a business or profession; (c) The full amount received from social security, pensions, annuities, retirement income, and other similar types of periodic receipts, (d) Payments in lieu of earnings, such as unemployment compensation, other social security benefits, dismissal wages, benefits in lieu of earnings other than lump- sum payments under health and accident insurance, and workmen's compensation other than lump-sum payments; (e) Periodic and determinable allowances, alimony, contribu- tions, child support and gifts, Interest, dividends and net earnings of any kind from real personal property, including but not limited to capital gains, (g) Subsistence allowances or receipts in connection with education or training, and (h) All payments made to or on behalf of any person under the provision of the Economic Opportunity Act, or any other anti-poverty program. 5. The following items shall not be considered as income (a) Casual and irregular gifts, - 5 - (b) Earnings of minors under 18 and full-time students other than the head of household or spouse, (c) Family assets, or lump-sum additions to family assets, such as inheritance, insurance payments, including lump-sum workmen's compensation settlements, and settlements for personal or property damages (if such sums are substantial, the eligibility of the families in question will be considered under the capital asset limitation), (d) The special pay to a serviceman who is the head of the family and is away from home and exposed to hostile fire, (e) Relocation payments made pursuant to Title II of the Uniformed Relocation Assistance and Real Property Acquisition Policies Act of 1970 (PL-91-646, 84 Stat. 1894), (f) Pursuant to the Food Stamp Act of 1964, (7 U.S.C. 2016 (c), the value of the coupon allotments for the purchase of foods in excess of the amount actually charged to eligible household. (g) Payments received by residents who are participants in volunteer programs provided for in the Older Americans Act (PL-93-29) and the Domestic Volunteer Service Act of 1973 (PL-93-113), and (h) The amount of educational scholarships or veterans education benefits paid directly to the student or to the educational institution to the extent that these benefits are used in meeting the cost of tuition fees and books. HOUSEHOLD INCOME LIMITS By HOUSEHOLD SIZE Household Size 1983 Income Limits VLI LI 1 Person 11,150 17,850 2 Persons 12,750 20,400 3 Persons 14,350 22,950 4 Persons 15,950 25,500 5 Persons 17,250 27,100 6 Persons 18,500 28,700 7 Persons 19,800 30,300 8 or More Persons 21,050 31,900 ASSET LIMITATION In addition to the income limitations, a household may not possess assets in excess of $7,500. Assets include, real estate (exclusive of equity in primary residence), bonds, saving accounts, certificates of deposit, stocks, other investments, notes receivable, antiques, jewelry, boats, motor homes, and other luxury items of substantial value. ELIGIBLE IMPROVEMENTS The purpose of this program is to correct conditions that constitute code violations and to ensure a safe, decent and sanitary dwelling, in accordance with the Uniform Housing Code adopted by the City of Pasco. Financing under this program is limited to that amount necessary to correct those substandard conditions identified by the City in the detailed work write-up provided by the Community Development Department -7 FINANCING REQUIREMENTS/LIMITATIONS MAXIMUM LOAN AMOUNT The maximum rehabilitation loan amount shall be $6,680, provided, however, in no case shall a rehabilitation loan constitute more than fifty percent (50%) of the current value of the structure to be rehabilitated "Current value" will be determined by the most recent value assigned by the Franklin County Assessor ADDITIONAL FINANCING Where rehabilitation costs exceed the maximum available under this program, the Community Development Department, to the extent practicable, will coordinate with other appropriate agencies in an effort to obtain additional funds for the balance of the rehabilitation costs identified in the work write-up When another agency will finance some of the improvements, those improvements must be completed prior to qualification of the structure under this program. In those cases which cannot obtain the additional funds necessary to bring the dwelling into conformance with the Uniform Housing Standards, the homeowner may provide the additional financing needed However, the source and conditions of such funds and their effect on the security position of the City's deed of trust shall be considered in deciding whether or not the application will receive final approval. In those cases where the homeowner will provide the additional financing and the same is approved by the City, such financing must be properly secured prior to execution of a contract for financing under this program Such securement may be in the form of an escrow account or some other secured form which assures release of the funds in accordance with the rehabilitation contract established under this program The City Attorney will determine whether or not the proposed form of additional financing is acceptable, on a case-by-case basis SECURITY OF DEFERRED LOAN Financing provided under this program must be secured in the form of a Promissory Note (see Exhibit ) and a Deed of Trust (see 8 Exhibit ) at the time of contract execution. Repayment of the deferred loan amount is required only in accordance with the provisions of the Promissory Note. SUBORDINATION OF PRIOR INTEREST. In some cases, an eligible household may be purchasing an eligible structure under a contract from another person and, occasionally, the sum of all recorded interests (deeds of trust, mortgages, contracts, etc.) in the property leaves insufficient unobligated equity against which the City's deed of trust can reliably apply. In such a case, as determined by the Community Development Department on a case-by-case basis, one or more of the superior interests must be subordinated in favor of the City's deed of trust, such subordination must be accomplished prior to or in conjunction with execution of a contract for assistance under this program. If the necessary subordinations cannot be obtained, financing under this program will not be available. SUBORDINATION OF CITY'S INTEREST. Subsequent to the completion of a rehabilitation project and the recording of the Deed of Trust and Promissory Note securing the City's loan, the owner may find the need to mortgage his/her equity for other obligations. In such a case, the City normally will subordinate its interest to that of the mortgagor provided the following conditions are met. (1) Ownership of the dwelling remains in the name of the person(s) named in the City's Deed of Trust and Promissory Note; (2) The sum of all superior interests, together with the value of the City's Deed of Trust and the proposed mortgage, does not exceed eighty percent (80%) of the value of the property (as determined by the County Tax Assessor's most recently assigned value or the appraisal performed by the mortgagor, whichever is most recent), and (3) If the mortgagor uses a Deed of Trust, the mortgagor provides separate written assurance to the City that mortgagor will assume full liability for the Promissory Note in the event the mortgagor becomes owner of the property. -9 SYNOPSIS OF LOAN PROCESS APPLICATION Community Development Department staff will verify all application information and purchase a "lot book report" from a title-services company to verify ownership, tax status, and identify all recorded interests in the property The applicant-homeowner must assist in the verification of income, assets, and housing expenses. After the required verifications are received and reviewed by staff, final grant approval will be made by the City Manager upon the recommendation of the Community Development Director in accordance with established rules and procedures. All approved applications will be prioritized in accordance with the prioritization policies described earlier in this document. Once an approved application is assigned a project file number (signifying it will be processed during the respective program year), the city building inspector will inspect the dwelling and prepare a detailed work write-up and cost estimate If the cost estimate is within the maximum loan amount ($10,000), the work write-up will be reviewed in detail with the homeowner and, if approved by the homeowner, the City will prepare a bid package and call for bids from qualified contractors. Unless the homeowner selects a bid which is within five percent (5%) of the lowest qualified bid, the lowest qualified bid will be selected The City reserves the right, however, to reject all bids or to reject unqualified bidders. If the cost estimate of the work write-up prepared by the city building inspector exceeds the maximum loan amount ($6,600) the application will not proceed under this program until additional financing has been identified in accordance with the provisions for such discussed earlier in this document under "Financial Requirements/Limitations" Upon selection of a contractor, the Community Development Department will prepare the standard contract for the rehabilitation work involved, the contract is essentially between the homeowner and the contractor, but the City will sign as a third party for purposes of contract administration and payments At the time of signing - 10 - the contract, the homeowner must sign the Promissory Note for the full amount of the contract and must also sign the Deed of Trust securing the Note. Both documents (Note and Deed) will be recorded by the City. The City will use the services of a local title insurance company for the recording and release require- ments associated with the Note and Deed (at city expense) Any change in the rehabilitation work to be performed under the contract requires a "Change Order" to reflect the respective increase or decrease in the contract amount, at the time a Change Order is executed, a new Promissory Note and Deed of Trust, to reflect the adjusted contract cost, must be signed by the homeowner. A copy of all loan documents will be provided the homeowner by the Community Development Department. SYNOPSIS OF CONTRACT PROCESS CONTRACT ADMINISTRATION The contract form provided by the Community Development Department will be of a standard form, in order to assure inclusion of all applicable federal and state rules and regulations. Although the contract essentially is between the homeowner and the contractor. the City will sign the contract as a third party and will act as a liaison between the contractor and homeowner. Any disputes between the contractor and homeowner will be mediated by the Community Development Department, and the Department's decision will be binding on both parties PERMITS AND INSPECTIONS. Prior to commencing the rehabilitation work 9 the contractor will obtain a building permit from the city building Inspector (no cost to homeowner) The building inspector will make necessary and periodic inspections of the rehabilitation work to assure the work complies, in all respects, with applicable construction codes, as well as the contract provisions. CHANGE ORDERS. Any change in the work required to be performed under the contract will not be authorized (therefore, not paid for) unless the change is approved by the contractor, homeowner and city in the form of a contract "Change Order" (form supplied by Community Development Department). A change order must identify the nature and quantity of the change, as well as the contractor's price for the work to be added or deleted; the Community Development Department reserves the right to determine whether or not the change is necessary or appropriate and whether or not the contractor's price is excessive Any approved change order requires the concommitant execution of a new Promissory Note and Deed of Trust by the homeowner to reflect the adjusted cost of the rehabilitation contract. WARRANTIES. The contractor will be required to provide to the homeowner any and all warranties available from the manufacturers and suppliers of any materials or fixtures installed in the dwelling under the respective contract. This requirement must be fulfilled prior to final payment to the contractor. FINAL INSPECTION. When the contractor indicates that all contract work is completed, the city building inspector will perform a final Inspection of the dwelling. The homeowner will be strongly encouraged to accompany the inspector in the final inspection, in order that the homeowner can verify satisfaction with the work performed by the contractor. In a case where any of the contractor's work has not been properly completed, the inspector will require the contractor to perform that work necessary and appropriate to constitute compliance with the contract. If any of a contractor's work is not satisfactory to the homeowner, the inspector will determine whether or not the quality of workmanship is normally acceptable; if not, the inspector will require the contractor to correct the particular item of work so that it meets the inspector's normally acceptable standard of workmanship quality. The final determination in any such dispute will rest with the Community Development Department. - 12 - If a contract involves work performed by the homeowner, the inspector shall determine whether or not the homeowner's work complies with the contract provisions and whether or not the quality of workmanship meets normally acceptable standards, if not, the City may take such legal steps as are deemed necessary to correct the unacceptable work CERTIFICATE OF COMPLETION/RELEASE. Upon satisfactory final inspection, the city building inspector will complete and sign a Certificate of Completion. Signature of the homeowner on the Certificate of Completion will constitute the homeowner's final acceptance of the contract work. FINAL PAYMENT. Upon satisfactory final inspection and execution of the Certificate of Completion by the inspector and the homeowner, the City will obtain the following documents from the contractor. (1) Final invoice, (2) Written guarantee of contract work, (3) Written release of liens from the contractor and any subcontractors and suppliers. Upon submittal of all necessary contractor documents, final contract payment will be made by the city to the contractor POST-COMPLETION INSPECTION. The Community Development Department will make a follow-up inspection of the work performed under the contract approximately thirty (30) days after the Certificate of Completion date ****************** - 13 - Transamerica Title Insurance Company THIS SPACE PROVIDED FOR RECORDER'S USE Ir Manse Mae Title Insurance Services FILED FOR RECORD AT REQUEST OF WHEN RECORDED RETURN TO Name Address City State Zip Deed of Trust (For Use in the State of Washington Only) THIS DEED OF TRUST, made this day of , 19 , between , GRANTOR, v, hose ad(lie ,,s is TR ANS AMERICA TITLE INSURANCE COMPANY, a corporation, TRUSTEE, whose address is 1200 Sixth Avenue, Seattle, Washington, and , BENEFICIARY, whose address is WITNES'SETH Grantor hereby bargains, sells and conveys to Trustee in Trust, with power of sale, the tollm% mg described teal property in County, Washington which real property is not used principally for agricultural or farming purposes, together with all the ten- ements, hereditaments, and appurtenances now or hereafter thereunto belonging or in any wise apper- taining, and the rents, issues and profits thereof This deed is for the purpose of securing performance of each agreement of grantor herein contained, and payment of the sum of . . . Dollars ($ . with interest, in accordance with the terms of a promissory note of even date herewith, payable to Bene- ficiary or order, and made by Grantor, and all renewals, modifications and extensions thereof, and also such further sums as may be advanced or loaned by Beneficiary to Grantor, or any of their successors or assigns, together with interest thereon at such rate as shall be agreed upon To protect the security of this Deed of Trust, Grantor covenants and agrees 1 To keep the property in good condition and repair, to permit no waste thereof, to complete any building, structure or improvement being built or about to be built thereon, to restore promptly any building, structure or improvement thereon which may be damaged or destroyed, and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property )rm No W 166 ore%mus Form No DT 15) 2 '10 pay .hefore delinquent all lawful taxes and assessments upon the property, to keep the property free and clear of all -other charges, hens or encumbrances impairing the security of this Deed of Trust 3 To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other ha7ards in an amount not less than the total debt secured by this Deed of Trust All policies shall be held by the Beneficiary, and he in such companies as the Beneficiary may approve and have loss payable first to the Beneficiary, as its interest may appear, and thi n to the Grantor The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the 13cneficiary shall determine Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale 4 To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or pro- ceeding and in an suit brought by Beneficiary to foreclose this Deed of Trust 5 To pay all costs fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in en- forcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute 6 Should Grantor fail to pay when due any taxes, assessments, insurance premiums, hens, encumbrances or other charges against the property hereinabove described Beneficiary may pay the same and the amount so paid with interest at the rate set forth in the note secured hereby shall be added to and become a part of the debt secured in this Deed of Trust IT IS MUTUALLY AGREED THAT 1 In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation 2 By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt pay ment v.hen due of all other sums so secured or to declare default for failure to so pay 3 The Trustee shall reconyey all or any part of the property covered by this Deed of Trust to the person entitled thereto, on written request of the Grantor and the Beneficiary or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto 4 Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein all sums secured hereby shall immediately become due and payable at the option of the Beneficiary In such event and upon written request of Beneficiary, Trustee shall sell the trust property, in accordance with the Deed of Trust Act of the State of Wash ington, at public auction to the highest bidder Any person except Trustee may bid at Trustee's sale Trustee shall apply the proceeds of the sale as follows (1) to the expense of the sale, including a reasonable Trustee's fee and attorney's fee, (2) to the obligation secured by this Deed of Trust, (3) the surplus, if any, shall be distributed to the persons entitled thereto 5 Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his execution of this Deed of Trust and such as he may have acquired thereafter Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the re- quirt ments of lav‘ and of this Deed of Trust which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in fa) or of bona fide purchaser and encumbrancers for value b The power of sale conferred by this Deed of Trust and by the Deed of Trust Act of the State of Washington is not an exclusive remedy Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage 7 In the eNent of the death incapacity, disability or resignation of Trustee, Beneficiary may appoint in writing a successor trustee, and upon thi- ri cording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the suc«ssor trust( li ill be vested with all powers of the original trustee The trustee is not obligated to notify any party hereto of pending '.ili under -my other Deed of Trust or of any action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such iction or proceeding is brought by the Trustee 8 This Di ed of Trust applies to inures to the benefit of and is binding not only on the parties hereto, but on their heirs, devisees, legati es administrators executors and assigns The term Beneficiary shall mean the holder and owner of the note secured hereby, whether or not named as Beneficiary herein STATE OF WASHINGTON COUNTY OF On this day personally appeared before me to me known to be the individual described in and who executed the within and foregoing instrument, and acknowledged that signed the same as free and voluntary act and deed, for the uses and purposes therein mentioned GIVEN under my hand and official seal this day of ,19 Notary Public in and for the State of Wash- ington residing at STATE OF WASHINGTON COUNTY OF On this day of ,19 before me, the undersigned, a Notary Public in and for the State of Wash- ington, duly commissioned and sworn, personally appeared and to me known to be the President and Secretary, respectively of the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corpor- ation, for the uses and purposes therein mentioned and on oath stated that authorized to execute the said instrument and that the seal affixed is the corporate seal of said corporation Witness my hand and official seal hereto affixed the day and year first above written. Notary Public in and for the State of Washington, residing at. REQUEST FOR FULL RECONVEYANCE Do not record To be used only when note has been pazd TO TRUSTEE The undersigned is the legal owner and holder of the note and all other indebtedness secured by the within Deed of Trust. Said note, together with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied, and you are hereby re- quested and directed, on payment to you of any sums owing to you under the terms of said Deed of Trust to cancel said note above mentioned, and all other evidences of indebtedness secured by said Deed of Trust delivered to you herewith, together with the said Deed of Trust and to reconvey, without warranty, to the parties designated by the terms of said Deed of Trust, all the estate now held by you thereunder Dated , 19 BLOCK GRANT DEFERRED LOAN PRO6AM PROMISSORY NOTE Pasco, Washington Iv!. \mu, RDCLIVED, the undersigned jointly and severally promise (s) to pay to the oider of the City of Pasco, a municipal corporation, or its successors, the sal of $ ($ ), in lawful money of the United States. This obligation shall be adjusted annually on the anniversay date of this note by the rate of increase or decrease, as the case may be in the Consumer Price Index (CPI) National Average, All Urban Consumers. The full amount of this obligation, as then currently adjusted, is due and to be paid upon the happening of any event specified below. This Note shall become due and payable upon any actual or attempted transfer, sale, or conveyance, voluntary or involuntary, including by operation of law or upon the death of Owner (Where Ownership is joint, or in common, upon death of the survivor having an interest at the date of this Note) of certain real property identified and described in the Deed of Trust signed and dated the date of this Note Said payment shall be made in lawful money of the United States of America at office of the City Treasurer of Pasco, Washington, or at such other places as shall be designated by the City. In the event this Note becomes due and payable because of actual sale of the undersigned's Interest in said property, this Note shall bear an interest rate of ten percent (10%) per annum, from date of such sale. It the undersigned shall ever be in default with respect to any provision hereof; and the City shall incur costs or through its attorney or other attorney employed by the City make any demand or otherwise protect or enforce its rights herein, the undersigned shall pay all costs and expenses incurred by the City, including reasonable attorneys fees, which in no case shall be less than $75.00. Demand, protest and notice of demand and protest are hereby waived, and the undersigned hereby waived, to the extent authorized by law, any and all homestead and other exemption rights which otherwise would apply to the debt evidenced by this Note. .1% hITNESS WHEREOF, this Note and Deed of Trust securing the Note, have been duly c\ocuted by the undersigned, as of the date first above written. Owner Owner **************************************** STAM OF WASHINGTON ) ss COUNn OF FRANKLIN ) On this day personally appeared before me to me known to be the individual (s) -oscribed in and who executed the within and foregoing instrument, and acknowledged that signed the same as free and voluntary act and deed, for A , uses and purposes therein mentioned. GIVEN under my hand and official seal this day of Notary Public in and for the State of Washington residing in AGENCY 0 By CHAIRMAN ounty Commissioners/Mayor , Ad," 4.• orr, irr 4d!4 FORM 140-03i DOT REVISED 3/ FY AGENCY FEDERAL AID PROJECT NUMBER WASHINGTON STATE DEPANYMMT IF TRANSPORTATION CITV/C UNTY AGREEMENT Pasco DATE June 8, 1983 AGREEMENT NUMBER The Local Agency having complied, or hereby agreeing to comply, pith the terms and conditions set forth in (1) Title 23, U S Code Highways, (2) the regulations issued pursuant thereto (3) Office of Management and Budget Circular A-102, (4) the policies and procedures promulgated by the Washington State Department of Transportation and, (5) the Federal-aid Project Agreement entered into between the State and Federal Government, relative to the above project, the Washington State Department of Transportation will authorize the Local Agency to proceed on the project by a separate notification Federal funds which are to be obligated for the project may not exceed the amount shown herein on line p column (3) without written authority by the State, subject to the approval of the Federal Highway Administrator All project costs not reimbursed by the Federal Government shall be the responsibility of the Local Agency PROJECT DESCRIPTION Name North Fourth Avenue Length 1.75 Terrnms North of SR 12 right of way to north City limits, Description of Work Place approved fabric material over existing 22° roadway, excavate shoulder, place 5/8 crushed rock, overlay to 30 width. TYPE OF WORK ESTIMATE OF FUNDING (1) Estimated Total Prolect Funds (2) Estimated Agency Funds (3) Estimated Federal Funds PE a Agency Work b State Services c Other d Total Prelim Eng Cost Estimate RIght-of-Way e Agency Work f State Services g Other h Total R/W Cost Estimate Construction 1 Contract Engineeringi Agency Force 10 % k State Force { 24.000 800 24.800 4,078 136 4,214 19.922 664 20,586 231,500 22,100 800 800 255.200 39,331 3,755 136 136 43.359 192,168 18.345 664 664 211.842 I Audit m Other n Other o Total Construction Cost Estimate p TOTA JECT L COST ESTIMATE OF THE PRO 280,000 47,572 232,428 WSDOT USE ONLY Work Order Accounting Plan Pros I F C I C S Ft:er"%ato WOAP Ne Auth ...b. Owe WOAP AMOUNT AVM OWE The Federal -aid participation rate in this project will be determined by the Federald Government The parties expect that it will be 83.01 % however it is understood that the rate may vary The Local Agency agrees that this agreement is entered without relying upon any representation by the State made outside of this contract or contained herein as to what the Federal participation rate will be It further agrees that it will not condition any future actions with respect to the project covered by this agreement upon past current or future representations as to the Federal participation rate The dollar amount of Federal participation cannot exceed the amount shown in line p column (3) All costs not reimbursed by the Federal Government will be the responsibility of the Local Agency CONSTRUCTION METHOD OF FINANCING STATE AD & AWARD METHOD A Advance Payment - Agency Share of Total Construction Cost (Based on Contract Award) METHOD B Withhold From Gas Tax the Agency s Share of Total Construction Cost (line o cola) in the amount of $ at $ per month for months LOCAL FORCE OR LOCAL AD & AWARD METHOD C Agency Cost Incurred with Partial Reimbursement (Check Method Selected) ( ) The Local Agency further stipulates that pursuant to said Title 23 regulations and policies and procedures, and as a condition to payment of the Federal funds obligated, it accepts and will comply with the applicable provisions set forth on the reverse hereof Adopted by official action on , 19 , Resolution/Ordinance No WASHINGTON STATE DEPARTMENT OF TRANSPORTATION By Slate Aid Engineer 4230' 3 Date Executed