SR-407-009 (4)
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HA-I
APR 2 8 1987
CjED:HD:CR
Housing Authority Meeting: 4/28/87
Santa Monica, California
TO:
Housing Authority Members
FROM:
Housing Authority Staff
SUBJECT:
Recommendation to Adopt Resolution Authorizing the
Execution of and Amendment to the Standard Agree-
ment Related to the Operational Phase of the state
of California's Rental Housing Construction Program
INTRODUCTION
This report transmits for adoption a Resolution authorizing the
execution of an Amendment to the Standard Agreement, executed by
and between the Housing Authority and the State of California,
and any future amendments thereto for the operational phase of
the Rental Housing Construction Program (RHCP) project owned and
managed by Community Corporation of Santa Monica (CCSM) at 1937
18th Street.
BACKGROUND
In May of 1984 the City applied for funding under the California
Department of Housing and Community Development (HCO), Rental
Housing Construction Program (RHCP) for funds to assist in the
development of rental housing in Santa Monica. The RHCP Program
provides deferred payment loans for 30 years at no interest to
el igible borrowers.
The City was awarded $120,000 under this
program.
The RHCP Loan Committee authorized the use of the
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$120,000 as loan funds to CCSM for the development of six afford-
able rental units at 1937 18th street. The application for fund-
ing from RHCP was submitted under the "rights of occupancy" com-
ponent of the program, which requires the Housing Authority to
enter into an agreement to receive the funds and pass them along
to the borrower.
On September 11, 1984 the Housing Authority adopted Resolution
No. 16 authorizing the Executive Director to execute the RHCP
standard Agreement which provided for the receipt of RHCP funds.
The RHCP Program also has an on-going annuity payment for proj-
ects constructed under the program. The annuity portion of the
program provides funds to borrowers to bridge the gap between the
annual operating costs of the subsidized units and the rental
income available from these units. However, the RHCP Program
requires that the annuity amount be determined upon the comple-
tion of construction. Therefore, as a standard administrative
practice under this Program it is necessary for the Housing Au-
thority to adopt the attached resolution authorizing the execu-
tion of an amendment to the Standard Agreement.
Project status
The CCSM project at 1937 18th street commenced construction in
June, 1986. This six unit rental development was completed in
February, 1987. The property is now fully occupied.
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Terms of Amendment
The amendment to the Standard Agreement modifies the agreement to
provide for an annuity fund payment directly to CCSM for the fis-
cal year beginning February 2, 1987 and ending June 30, 1988.
The Agreement will have to be modified each fiscal year to re-
flect the revised annuity payment amounts due to CCSM. Thus, the
attached resolution authorizes the execution of this amendment
and any and all future amendments for the receipt of annuity
payments.
FINANCIAL/BUDGETARY IMPACTS
As the annuity funds will go directly to CCSM, there will be no
financial or budgetary impact as a result of the action recommen-
ded in this report.
RECOMMENDATION
It is recommended that the Housing Authority adopt the attached
resolution authorizing the execution of the Amendment to the
standard Agreement and any and all future amendments thereto with
the State of California for the operational phase of the Rental
Housing Construction Program.
Prepared By: Candy Rupp, Development Analyst
Housing Division
Department of Community & Economic Development
Attachments: 1. Housing Authority Resolution No. 27
2. Amendment to state of California standard
Agreement
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;TANDARD AGREEMENT -.~g~~~ ~~::R~L
r....TE 01>' C....l.,/FORNt....
-;> 2 tREV ~/1I1.
e
o CONTRAcrOR
o ST....TE AGENCY
o DEPT OF GEN. SER
o CONTROl.UR
o
o
o
-HIS AGREEME~T. made and entered IOto thIs 2nd day of February ,.19 87,
'1 the State of Califorma, b) and bet"'een State of Cahforma. through ItS duly elected or appomted,
lUahf1ed and actmg
jAGENCY r NUMSER
Department of Housing and Commun1ty Developmen~ 83-RHC-140 Am. 4
of the Clty of Santa Monica
- n.li: ~ OFFICER ACTING FOR STAn::
Di rec tor
w"eafter called the Slate. and
Houslng Authority
"M'eafteT called the Contract&r
WITNESSETH That the Contractor for and m consideration of the covenants, conditions, agreements. and stIpulations of the State
~eremafter expressed, does hereby agree to furnish to the State services and matenals, as follows
Set forth serosce to be rendered by Contract&r, amount to be paid Contractor, tame f&r -performo.nu or completwn, and attach plans and spedffC6tlOnS, if an" )
Standard Agreement No. 83-RHC-140 t dated June 22, 1984 . between the Department of
Houslng and Community Development and the Houslng Authorlty of the City of Santa Monlca
is hereby amended as follows:
Paragraph 16(e} is amended to read:
16. (e) The amount encumbered by this Agreement for the purposes of Annu1ty
Fund Payments is S 927.00 for fiscal year or portion thereof
beginning February 2. 1987 and endlng June 30. 1988.
This Agreement shall be amended annually to reflect the revised
amounts in the approved operating budget for succeeding fiscal years.
Exhibit 0 is replaced in its entirety by Exhibit 0 attached hereto and by this
reference incorporated herein.
All other terms and conditions shall remain as set forth in the or1gina1 Agreement and
Amendments thereto.
The provlSlons on the reverse side hereof constitute a part of this agreement
IN WITNESS WHEREOF, thIS agreement has been executed: by the parnes hereto. upon the date fJrst above wntten
STATE OF CAUFORNIA
CONTRACTOR
AGENCY II ~~o~ OT1fQliS1 nCJlu~orft1 nr t~e--
Department of Housing and Community Developmen C,ty or anta J'onlca
BY .AlJTHORIZEO SIGNATURE! BY IA\JTloIORIZED SIGNAT\JREl
TI"~
Jonn Jalll1 Approved as to Forrr:
Executive Di rector '/.. ~ L- -...... ~ ~
AOORES$ P .0. Box 2200 RObert N. ~'lyers
CONTINUED ON _ _E~ v..CH BEARING ~AME 0" CONTRACTOR , Santa Mom ca ~ CA 90406-2200 Counsel
I" AMOUNT ENCUM8EIlEO I ""OGRAt.vCAieGORY ICODE AND TtTl..E) lFUND'tln.E
Departmenr of General Services 1$ t 20 Communi ty Affa i rs RHCF 938
Use Only I UNENCUMBERED BALANCE IOPTIONAL US~
1$ 2500(24125
[ AOJ INCREASING I'NCVMBRANCE ITEM Sectlon 50400. 5 iC~AI';!'fER IST...Tl1TI; 1",FlISC98A6:"/YESA7"
S 927.00 Health & Safety Code 11688 11984
I ;OJ l:lE<CRe....sING EN<:U""BFtAN~E [ O~ECT ~F6 ;;~;l:lITURI! -ICODE< AND 11TLEl
II hereby C4!ruf!! upon my o:wn personal knowledge that budget~ funds are '" T BA NO
I aooiltWle fo" (he penDd and purpose of tk "%J]enditu"" stated 1Ibt>ve
I SIGNATURE OF ACCOUNTING OFFiceR . I DATE
~ I
" . I
I heTeby certify that all condttWfU for uemlJtlOR set jarlh in State Adminutratwe Manuel Section 1209 Jw.oc
beeT! complied with and this document ill euml't from relllmD by the DePartment of Ftnance
I DATE
...\(
."....- J .,
'ITTLE
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IBR ...0
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SIGNATURE OF OFFICER SIGNING ON BEHAU' OF THE AGE"'CY
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Ho~g Authority of
Ci~f Santa Monica
83-RHC-140 Amend. 4
the
1 The Contractor agrees to mdemmf}, defend and sa,,'e harmless the State, Its officers, agents
and employees from any and all claims and losses accrumg or resultIng to any and all contractors,
subcontractors, matenalmen, laborers and any other pen.on, firm or corporahon fumlshmg or
supplying work. servIces, matenals or supphes In connection WIth the perfonnance of thIS contract,
and from any and all claims and losses accrumg or resultmg to anr person, firm or corporation
who may be Injured or damaged bv the Contractor In the performance of thIS contract.
2 The Contractor, and the agents and employees of Contractor, 1n the performance of thIS
agreement, shall act In an mdependent capacIty and not as officers or employees or agents of
State of Cahfornla
3 The State may terrnmate thl~ agreement and be reheved of the payment of any conSIderation
to Contractor should Contractor fall to perform the ('Ovenants herem eontamed at the tune and
m the manner herem proVIded In the event of such tennmahon the State may proceed WIth the
work m any manner deemed proper by the State The cost to the State shall be deducted from
any sum due the Contractor under thIS agreement, and the balance, If any. shall be paid the
Contractor upon demand
4 \Vlthout the wntten consent of the State, thIS agreement IS not assignable by Contractor
either m whole or m part.
5 Time is the essence of thIS agreement
6. No alterabon or vanabon of tbe terms of this contract shall be vahd unless made in wntmg
and Signed by the partIes hereto, and no oral understandmg or agreement not mcorporated herem,
shall be bmdmg on any of the partIes hereto
7, The conSideratIon to he paid Contractor, as proVided herein, shall be in compensabon for
all of Contractor's expenses mcurred 111 the performance hereof. mcluding travel and per diem,
unless otherwISe expressly so proVIded
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MONTH
FrorY:: Feb. 2, 1987
1.
2.
3.
l, .
6.
7.
8.
9.
10.
11.
, ...
_c..
TOTAL
- Amount encumbered
Tota1 from pay.nent schedule
EXHI BIT D
ANN~IT), FUND
P J... YMENT SCHEDULE
~lng Authority of the
~ of Santa Monlca
83-RHC-140 Amend. 4
Page 1 of 1
"
FW.oUtn
Te:
June 30, 1988
$ 927.00 *
s.
s
So 927.00
S 927.00
s
s
s
s
s
s
$
$
""
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S 927.00
*Because of the small amount of the ann~ity, the entire amount
is to be paid in a lump sum.
HC;:-# 26/1.
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RESOLUTION NO. 27 (HAS)
(HOUSING AUTHORITY SERIES)
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF
SANTA MONICA, AUTHORIZING THE EXECUTION OF THE STANDARD
AGREEMENT AND ANY AMENDMENTS THERETO AND RELATED DOCU-
MENTS FOR THE IMPLEMENTATION AND PARTICIPATION IN THE
OPERATIONAL PHASE OF THE STATE OF CALIFORNIA'S RENTAL
HOUSING CONSTRUCTION PROGRAM.
WHEREAS, the Housing Authority of the City of Santa Monica
(hereinafter the tlAuthority") has executed State Contract No. 83-
RHC-l40 dated June 22, 1984, authorizing the participation in the
Rental Housing Construction Program; and
WHEREAS, pursuant to Health and Safety Code Section 50735 et
,
seq., the California Department of Housing and Community Develop-
ment (hereinafter "State") is authorized to provide funds for the
purpose of reducing rent levels to ensure occupancy by eligible
households; and
WHEREAS, the Authority, a local public Agency organized
under the statutes of the State of California, is eligible to
receive said funds; and
WHEREAS, the development identified in the State Contract
has been completed or is about to be completed and may require
said funds for operational subsidy;
NOW, THEREFORE, THE HOUSING AUTHORITY OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The Authority is hereby authorized to enter into
an amendment, and any future amendments with the state for the
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purposes of providing such funds according to the terms of such
contract.
SECTION 2. The Executive Director or an authorized designee
is hereby authorized to execute the amendment and any future
amendments on behalf of the Housing Authority.
SECTION 3. The City Clerk shall certify to the adoption of
this resolution and thenceforth and thereafter the same shall be
in full force and effect.
Approved as to form:
(
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Robert M. Myers
City Attorney
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ADOPTED
April, 1987
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ATTEST:
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Secretary Pro Tempore
I hereby certify that the foregoing resolution was duly adop-
ted by the Housing Authority of the city of Santa Monica at a meet-
ing thereof held on the 28th day of April, 1987 by the following
vote of the Authority:
AYES:
Member:
Conn, H. Katz, Finkel, Jennings,
A.Katz, Reed, Zane
NOES:
Member: None
ABSENT:
Member: None
ATTEST:
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Secretary Pro Tempore
: attest