HomeMy WebLinkAbout00226C - CVHC HOUSING COALITION SEMINOLE GARDENS APARTMENTS CV Housing Coalition - acq.
Seminole Gardens Apts expense
AGR #226
R662, 12-6-89
AGREEMENT _-- - -
FOR SERVICES RELATED TO SEMINOLE GARDENS APARTMENTS
/;1
This agreement is� made and entered into this day of
ff/ ,' , 1989, by and between the Community Redevelopment Agency
of Pa`1'm Springs, hereinafter referred to as "Agency" , and the Coachella Valley
Housing Coalition, hereinafter referred to as "CVHC".
WITNESSETH:
WHEREAS the Agency has funds available in its Redevelopment Housing
Setaside Fund for purposes of preserving affordable housing; and
WHEREAS, CVHC is prepared to own and operate apartment building
affordable to low and very low income families ; and
NOW, THEREFORE, the parties hereto mutually agree as follows :
1. CVHC shall negotiate to U
g purchase Seminole a Gardens-�e+�--b�ga`l-f--of--the-
-Agency- as outlined in the Scope of Service attached hereto as Exhibit A and
incorporated herein by this reference.
2. The Agency shall pay to CVHC on a reimbursable basis for its
expenses a sum not to exceed forty-thousand five hundred dollars ($40,500) in
accordance with the Budget attached hereto in Exhibit A and incorporated
herein by this reference; and as herein provided. The budget cost categories
set out in Exhibit A are general guidelines and if mutually agreed by both
parties , may be amended administratively by no more than 10% of each category
so long as the sum of all cost categories does not exceed $40,500, without the
requirement of a formal amendment to this agreement. CVHC shall submit to the
Agency monthly statements on reimbursable expenditures pursuant to the
attached Budget along with pertinent supporting documentation. The Agency
shall promptly review the monthly expenditure statements and, upon approval ,
reimburse CVHC its authorized operating costs.
3. CVHC shall maintain records of its operations and financial
activities in accordance with the requirements of the Housing and Community
Development Act and the regulations promulgated thereunder, which records
shall be open to inspection and audit by the authorized representatives of the
Agency, the Department of Housing and Urban Development and the Comptroller
General during regular working hours. Said records shall be maintained for
such time as may be required by the regulations of the Housing and Community
Development Act, but in no case for less than three years after the close of
the program.
4. CVHC shall :
(a) Submit to Agency through its Economic Development Division
monthly reports on program status.
5. The Agency shall have the right to periodically monitor the
program operations of CVHC under this agreement.
6. CVHC shall defend, indemnify and hold harmless the Agency, its
officers and employees, on any claim of liability arising out of any act or
omission by said party as regards any work to be performed by, or authority
delegated to, such party.
7. This agreement may be amended by mutual written concurrence of
both parties.
Seminole Garden Apart•is •
Page 2
8. This agreement shall commence effective as of December 6, 1989 and
terminate on June 30, 1991 . In the event the funds allocated hereunder are
not fully expended by such date, this agreement shall automatically be
extended for an additional period of one year. Notwithstanding anything to
the contrary herein, either party may, by giving fifteen (15) days ' written
notice to the other, terminate this agreement for reasonable cause which shall
include:
(a) The withdrawal or withholding of funding materially
affecting the party's ability to finance or operate effectively; and
(b) Ineffective or improper use of funds provided hereunder.
IN WITNESS WHEREOF the parties hereto have caused this agreement to be
duly executed on the day and year first written above.
COMMUNITY REDEVELOPMENT AGENCY
OF PALM SPRINGS
A Municipal Corporation
BY:
mayor-
ATTEST(
,C , jj / City Clerk
11P /61
COACHELLA VALLEY HOUSING COALITION
,..
ATTEST:
APPROVED AS T 'FORM:
/( / ✓ P/
City Ati(o ney
I
APPROVAL S TO FORM:
County Counsel
0 4L ,
Coachella Valley Housing Coalition
73-280 HIGHWAY 111, SUITE 107. P.O. BOX 1824, PALM DESERT, CA 92261 (619) 341-7837
November 22 , 1989
Ms . Amy Hodgett
Economic Development and
Housing Coordinator
City of Palm Springs
P.O. Box 1786
Palm Springs , CA 92263-1786
Dear Ms. Hodgett:
In accordance with a request from City staff , we have met with
the owner of Seminole Gardens. As a result , we are considering
purchasing the complex in order to maintain housing affordability
for the low and very low-income tenants . We have reviewed the
current and projected incomes, and expense statements , and have
discussed financing with lenders.
However, before we can make an offer, we will need to expend
additional staff time and hire consultants to determine the
extent of repairs that are required, the value of the property,
feasibility, and various financial offer structures .
We request a grant or contract from the Redevelopment Agency for
the following projected expenses :
Consultants to perform feasibility study $5 , 000
Real Property Appraisal 6 , 000
Structural/Mechanical Investigation 4 , 000
Legal Expenses - Purchase Negotiation 5 ,000
Legal Expenses - Transfer of Physical Assets 3 , 500
Loan Application Fees 2 , 000
Project Administration - CVHC 15 , 000
Total $40 , 500
The purchase of Seminole Gardens by CVHC would not only enable
the City to preserve 60 units of low and moderate income housing ,
but would be the', first transfer of a HUD prepayment property to a
non-profit . As such, this project provides an exciting
opportunity to demonstrate a solution to the growing problem of
conversion and displacement .
Sinncc�rely,
a -in Zone
Deputy Executive Director
A Non-Profit Corporation