The URL can be used to link to this page

Browse Search

Home My WebLink About20131874.tiffRESOLUTION RE: APPROVE MEMORANDUM OF UNDERSTANDING FOR LOAN OF FUNDS TO WELD COUNTY HOUSING AUTHORITY FOR NEIGHBORHOOD STABILIZATION PROJECT REHABILITATION CONTRACT AND AUTHORIZE CHAIR TO SIGN WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board of County Commissioners sits as the ex -officio Weld County Housing Authority Board (WCHA), and WHEREAS, the WCHA has purchased dilapidated homes in Fort Lupton using federal grant funds from the Neighborhood Stabilization Program (NSP) for the purpose of improving those properties sufficient for sale, and WHEREAS, due to the revolving nature of the NSP program funds, there is a potential temporary shortfall of up to $300,000 for rehabilitation services to the properties purchased with NSP funds, and WHEREAS, such loaned funds are to be repaid as soon as possible from the proceeds of the sale of any of the properties purchased with NSP Program funds, and WHEREAS, after review, the WCHA deems it advisable to approve the MOU (attached) for the purpose of loaning the requested funds to the WCHA for the purposes, and pursuant to the limitations, described above. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, ex -officio Weld County Housing Authority Board, that the attached Memorandum of Understanding be, and hereby is, approved. BE IT FURTHER RESOLVED that the Chair be, and hereby is, authorized to sign the attached MOU for the purposes of effectuating this Resolution. ee/bid (7D4i) 7../% 2013-1874 HA0030 MOU FOR LOAN OF FUNDS TO WELD COUNTY HOUSING AUTHORITY FOR NEIGHBORHOOD STABILIZATION PROJECT REHABILITATION CONTRACT PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 22nd day of July, A.D., 2013. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO, EX -OFFICIO WELD COUNTY HOUSING AUTHORITY Weld County Clerk to the Board BY: " Deputy Cork to Board re APP:>tD ounty ttorney William F. Garcia, Chair ougls Rademacher, Pro-Tem Seanc Conway Freeman Barbara KirknIeyer 2013-1874 HA0030 the MEMORANDUM OF UNDERSTANDING WHEREAS, the following Memorandum of Understanding (MOU) outlines the understanding between the Weld County Housing Authority, Greeley, Colorado ("Housing Authority"), and the Weld County Board of County Commissioners ("Weld County") regarding the Housing Authority's request for Weld County to loan funds to the Housing Authority for purposes related to the Neighborhood Stabilization Program (NSP) project. WHEREAS, the Board of County Commissioners of the County of Weld, State of Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, due to the revolving nature of the NSP program funds, there is a potential temporary shortfall of up to $300,000 for rehabilitation services to the properties purchased with NSP funds, and WHEREAS, such loaned funds are to be repaid as soon as possible from the proceeds of the sale of any of the properties purchased with NSP Program funds, and TERM AND TERMINATION The term of this MOU shall commence on the date of execution of this MOU, and shall terminate upon full repayment of all funds loaned pursuant to this MOU. PURPOSE OF THIS MOU The Housing Authority has purchased dilapidated homes in Fort Lupton using federal grant funds from the Neighborhood Stabilization Program (NSP) for the purpose of improving those properties sufficient for sale to low income residents. The Weld County Board of County Commissioners has approved a contract for rehabilitation services for five of the houses purchased, in an amount totaling $471,464. The Housing Authority's NSP account currently only contains $243,071 in unencumbered funds. By providing for the possibility of up to 10% for change orders, the total potential cost of the rehabilitation contract is $518,610. This leaves a potential shortfall of $275,539. This MOU authorizes Weld County to loan up to $300,000 to the Housing Authority for the purpose of meeting this shortfall, with the understanding that all loaned funds will be repaid in full to Weld County upon sale of the rehabilitated properties. WELD COUNTY AGREES Weld County agrees to loan to the Housing Authority funds not in excess of $300,000 for the purposes stated and pursuant to the limitations stated in this MOU. 1 2013-1874 HOUSING AUTHORITY AGREES Housing Authority agrees that it shall only request the minimum funds necessary to accomplish the purpose of this MOU, and in no event shall Housing Authority request more than $300,000. All loaned funds shall be repaid to Weld County as soon as possible. It is anticipated that the funds will be repaid from the proceeds of the sale of one or more houses which were purchased with NSP grant funds. Because properties purchased with NSP funds will be sold, it is anticipated that the Housing Authority's NSP account will receive a surplus in excess of $100,000 after all loaned funds have been fully repaid to Weld County. Housing Authority agrees that its obligation to repay all funds loaned pursuant to this MOU has priority over all other unencumbered funds or any other obligation as may be permitted by law. ASSURANCE OF REPAYMENT Housing Authority Director Tom Teixeira has received assurances from the federal Department of Housing and Urban Development (HUD) that the loaned funds may be returned in full to Weld County without any further encumbrance. See Attachment A to this MOU. The Housing Authority hereby agrees to repay all loaned funds as soon as possible. GOVERNMENTAL IMMUNITY No term or condition of this contract shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections or other provisions, of the Colorado Governmental Immunity Act §§24-10-101 et seq., as applicable now or hereafter amended. In Witness Whereof, the parties hereto have executed this Agreement the date provided below. WELD COUNTY: Attest: Clerk to the By: Deputy Clerk Date: JUL 2 2 2013 % By: Willianifiiarcia, Chair, Board of County Commissioners of Weld County, Colorado HOUSING By: William Garciast, Chair Weld County Housing Authority RITY: a/ -/I7'/ Bob Choate From: Sent: To: Subject: Categories: Tom Teixeira [Tom@greeley-weldha.org] Friday, June 21, 2013 12:46 PM Bob Choate FW: Use of Local Funds Housing Authority Bob This is what I received from HUD Denver regarding the use of local funds. Tom From: McKeough, Phillip E[mailto:Phillip.E.McKeough@hud.gov] Sent: Friday, June 21, 2013 12:40 PM To: Tom Teixeira Subject: RE: Use of Local Funds Tom, Despite the longer than normal time between the County covering these costs, and the program income repayment, the situation outlined below is conducive to the preferred payment method covered in 24 CFR 85.21(d) Reimbursement and meets the use requirements for program income covered in the NSP3 Notice FR -5447-N-01 Section N. Thank you, Phillip McKeough Office of Community Planning and Development US Dept of HUD, Denver Regional Office phillip.e.mckeough@hud.gov P: (303) 672-5064 F: (303) 672-5028 From: Tom Teixeira [mailto:Tom©greeley-weldha.orq] Sent: Friday, June 21, 2013 11:20 AM To: McKeough, Phillip E Subject: Use of Local Funds Phil Per our phone conversations, we have a bid to rehab 5 houses at a total of 471,465 with the houses being ready for sale late summer— early fall. Not knowing when the houses will sell could cause a cash flow problem with funds currently available for draw down. The County has agreed to lend/ float any cost that exceed the available grant funds with nonfederal local funds if necessary. They have request I seek assurance that we would be able to repay these funds from program income when the houses sell. 1 Thank you for your assistance. Tom Thomas Teixeira Executive Director Housing Authority of the City of Greeley Weld County Housing Authority (970) 353-7437 x 103 Fax (970) 353-7463 2 Hello