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HomeMy WebLinkAboutNo. 0430 authorizing execution of an "agreement for public body approval of Section 312 rehabilitation loans," and designating officials authorized to approve such loans on behalf of the public bodyo 0 RESOLUTION NUMBER a,;n. RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION, GOVERNING BODY OF THE CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT AUFHORIZING EXECUTION OF AN "AGREEMENT FOR PUBLIC BODY APPROVAL OF SECTION 312 REHABILITATION LOANS", AND DESIGNATING OFFICIALS AUTHORIZED TO APPROVE SUCH LOANS ON BEHALF OF THE PUBLIC BODY. WHEREAS, under Section 312 of the Housing Act of 1964, as amended (herein re- ferred to as Section 312), the Secretary of the Housing and Urban Development is authorized, under the conditions and to the extent provided therein, to make loans (Section 312 loans) to owners and tenants of property in certain areas for the rehabilitation of their property and to delegate to or use as agent any local public agency or organization to the extent he determines appropriate and desirable to carryout the objectives of Section 312 in the areas involved; and WHEREAS, Title VI of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color or national origin under any program or activity receiving Federal Financial Assistance and Executive Order 11063 prohibits discrimination on basis of race, color, creed or national origin in sale, lease or other disposition of residential property (including land intended for residential use) or in the use or occupancy thereof; and WHEREAS, the City of South Bend, Department of Redevelopment has responsibility and jurisdiction to carryout one or more Urban Renewal Projects, Neighborhood Development Programs, Concentrated Code Enforcement Programs, or Certified Area Programs in an area or areas delineated in the applicable Urban Renewal Plan, Grant Contract for Code Enforcement Program, or Grant Contract for Certified Area Program, in which Section 312 loans are authorized to be made; and WHEREIAS, it is desirable and will significantly benefit the rehabilitation objectives of all such projects and programs administered by the City of South Bend for the Department of Redevelopment to have direct approval authority with respect to Section 312 loans: NOW THEREFORE, BE IT RESOLVED BY THE SOUTH BEND REDEVELOPMENT COMMISSION GOVER- NING BODY OF THE CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT: 1. That the President and the Secretary of the Redevelopment Commission is hereby authorized and directed to execute on behalf of the City of South Bend Department of Redevelopment an "Agreement for Public Body Approval of Section 312 Rehabilitation Loans ", and to act as the authorized representative of the City of South Bend Department of Redevelopment in connection therewith. 2. That it is cognizant that under an "Agreement for Public Body Approval of Section 312 Rehabilitation Loans" Section 312 loans may be approved only in accordance with outstanding policy of the Department of Housing and Urban Development, as it exist from time to time, and subject to availability of funds therefore. 3. That the Executive Director and in his absence the Associate Director, are hereby authorized to approve, on behalf of the City of South Bend Department of Redevelopment, Section 312 loans under the provisions of said Agreement, and such officials are hereby directed to approve such loans only in accordance with the policy of the Department of Housing and Urban Development, and subject to availability of finds as determined by that Department. 4. That the United States of America and the Secretary of Housing and Urban Development be, and they hereby are, assured of full compliance by the City of South Bend Department of Redevelopment with regulations of the Department of Housing and Urban Development effectuating Title VI of the Civil Rights Act of 1964 and applicable Executive Orders. C ADOPTED, at the Regular Meeting of the South Bend Redevelopment Commission held on the 20th day of October, 1972, in the office of the Commission, room 1200 County -City Building, 227 West Jefferson Blvd., South Bend, Indiana 46601. 3 ATTEST: '7� ��- � \� k I ), �) 6--il B. L. s i an S retary (SEAL) F� CITY OF SOUTH BEND, INDIANA DEPARTMENT OF REDEVELOPMENT _"t, s a _ep.. , r v,= m-:,;p .a as•s.� 4 , y.;..:. •. AGRANT FOR PUBLIC BODY APPROVAL Ole • SECTION 312 REHABILITATION LOANS THIS AGREEMENT, made and entered into on the date hereinbelow specified, by and between the City of South Bend, Department of Redevelopment (the Public Body), and the United States of America (the Government), acting by and through the Secretary .of Housing and Urban Development (the Secretary), WITNESSETH: In consideration of the.mutual covenants, promises, and representations 10contained herein, the parties do'agree as follows: Sec. 1. PURPOSE OF AGREEMENT The Public Body has responsibility and jurisdiction to carry out one or more Urban Renewal Projects, Neighborhood Development Programs, Concentrated Code Enforcement Programs, or Certified Area Programs in areas delineated in the applicable Urban Renewal Plan, Grant Contract Program. The processing by the Public Body, and submission to the Department of Housing and Urban Development for approval, of rehabilitation loans under Section 312 of the Housing Act of 1964, as amended (Section 312 loans) is presently authorized with respect to one or more of the areas covered by such project (s) or program (s). The purpose of this Agreement is to extend to the Public Body authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called regulations) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of fund availability for an approved loan. Sec. 2. APPLICABILITY OF APPROVAL AUTHORITY During the term of this Agreement, the Public Body shall have final authority to approve applications for Section 312 loans with respect to residential and mixed -use property, 4;hich will contain one to four dwelling units after rehabilitation, and which is located in an area with respect to which the Public Body has authority to process such loans, as described in Section 1 hereof. The Public Body shall exercise such loan approval authority with respect to property in all such areas which come under its jurisdiction during the term of this Agreement. However; no loan approval under authority of this Agreement shall be valid until the Secretary has determined that funds are available therefor, and has notified the Public Body thereof. Sec. 3. NOTIFICATION OF FUND AVAILABILITY Upon receipt of the documentation required by the Secretary's regulations to be submitted with respect to Section 312 loans approved by a Public Body, the Secretary shall promptly notify the Public Body in writing whether sufficient funds are available for the "approved loan. Sec. 4. COMPLIANCE WITH GOVERNMENT REGULATIONS The loan approval authority granted by this Agreement shall be exercised in accordance with the procedures and requirements established by the applicable regulations of the Secretary in effect from time to time. In particular, the Public Body shall not otify an applicant of loan approval until receipt of notice of availability of funds or the loan from the Secretary. Sec. 5. EFFECT OF FAILURE TO COMPLY a. Grounds for Termination. Failure of the Public Body to comply with the procedures and requirements of the Secretary with respect to loan approval, or with respect to other aspects of the Section 312 loan program, are grounds for termination of this Agreement at the option of the Secretary. However, such failure shall not create or justify any claim against the Government on the part of any third person, and shall not constitute grounds for any third person to contest the validity of any Section 312 loan approved by the "Public Body under authority of this Agreement and during its term. b. Defend and Hold Harmless. The Public Body will warrant, defend, and hold harmless the Government with respect to all claims and losses caused by its failure to comply with the regulations of the Secretary and the requirements of applicable State and local law in its approval of Section 312 loans under authority of this Agreement, and in the subsequent settlement and administration of loans so approved. In the event the Secretary's regulations and the requirements of State and local law are inconsis- tent, the Public Body shall request advice from the Secretary prior to approval of the Section 312 loan. Page 1 y Sec. 6. RESTRICTION ON OFFICIALS AUTHORIZED TO APPROVE LOANS. The Public Body shall not initially or at any time during the term of this Agreement confer its authority to approve Section 312 loans under this Agreement upon any officer r employee who exercises any duties or responsibilities in the administration of the Public Body's Section 312 Loan Program, including, without limitation: a. Preparation of rehabilitation work writeups or cost estimates, or of construction contract documents; b. Obtaining information with respect to, completing with the borrower, or processing a Section 312 loan application or any of the related documents constituting the loan application file; c. Selection of or negotiation with contractors to perform the rehabilitation work; d. Authorization of disbursements from the rehabilitation escrow account, or signing or countersigning of checks drawn on the rehabilitation escrow account; e. Inspection of the rehabilitation work to ascertain whether the work is completed or for the purpose of authorizing any partial payment requested by a contractor; or f. Authorization of signing or signing of Form HUD -6245, Certificate of Final Inspection. Sec. 7, SUBMISSION OF DOCUMENTATION ® Promptly upon approval of a Section 312 loan by an appropriate official of the Public Body, the Public Body shall assemble and transmit to the Secretary the documentation required to be submitted with respect to a Section 312 loan approved by a Public Body, in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The Public Body shall also promptly submit copies as required of any resolutions affecting the identity of Public Body officials authorized to approve Section 312 loans under the Agreement, any notices of the Public Body's determination to cancel this Agreement, and any other required documentation or reports, in accordance with such requirements and regulations. Sec. 8. SUPERVISION, ADMINISTRATION, AND INSPECTION The Public Body shall, at all proper times, provide or cause to be provided competent and adequate architectural, engineering, financial and other technical supervision and inspection of rehabilitation work financed by Section 312 loans approved under this Agreement. The Public Body shall keep full and accurate books and records with respect to Section 312 loans approved under this Agreement, and with respect to its administra- tion of the Section 312 loan program, and shall maintain them in accordance with such requirements and regulations of the Secretary as shall be in effect from time to time. The Public Body shall, at any time during normal business hours, and as often as the 1ecretary or the Government may deem necessary, permit the Secretary or any other representative of the Government, to inspect, make excerpts or transcripts of, copy, and audit such books and records. The Public Body will cooperate in any inspection of rehabilitation work financed by Section 312 loans approved under this Agreement, as deemed necessary by the Secretary or the Government. Sec. 9. COMPLIANCE WITH CIVIL RIGHTS ACT OF 1964 The Public Body will perform its activities under this Agreement in accordance with all requirements imposed by, or pursuant to regulations of the Secretary effectuating, Title VI of the -Civil Rights Act of 1964. Sec. 10. CANCELLATION OF APPROVED LOANS The Secretary reserves the right to cancel Section 312 loans approved by the Public Body, in accordance with the requirements and regulations of the Secretary in effect from time to time. Upon receipt of such notice of-cancellation, the Public Body shall promptly submit to the Secretary any documentation requested by him, and shall promptly refund the amount of the loan to the Secretary, on account of the Section 312 Loan Revolving Fund. Page 2 -; A. -. Sec. 11. RIGHTS UNDER OTHER CONTRACTS .The rights of the parties under this Agreement shall be in addition to, and not in derogation of, the rights of the parties under any contract for Federal assistance with espect to any of the Projects or Programs described in Section 1 hereof under the jurisdiction of the Public Body.' Sec. 12. TERM OF AGREEMENT This Agreement shall be effective from the date hereinbelow specified until terminated in accordance with Sec. 13 hereof. Sec. 13. TERMINATION OF AGREEMENT a. Automatic Termination. This Agreement shall automatically terminate on the official ate of closeout of-The last project or program (as described in Sec. 1 hereof) under the jurisdiction of the Public Body, in the area of which Section 312 loans are authorized. b. Termination by Parties. This Agreement shall terminate 30 days after written notice of intent to terminate is sent by one party to the other, except that, when the Public Body gives notice of its intent to terminate the Agreement, the Secretary may require the Public Body to continue under the Agreement for a specified additional period of time, not to exceed 60 days, in order that arrangements may be made to accommodate the workload resulting from the Public Body's termination. Notice of termination under this subsection may be given by either party for cause or convenience. c. Suspension or Termination for Cause. The Secretary may, for cause, by written notice to the Public Body, require t at t e Public Body discontinue immediately the approval of loans under this Agreement pending completion of specified corrective action by the Public Body, or termination of this Agreement. Sec. 14. EFFECTIVE DATE This Agreement shall be effective the 20th day of on 1972 Year Sec. 15. COUNTERPARTS OF AGREEMENT. This Agreement may be executed in six (6) counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. A. . Page 3 IN WITNESS WHEREOF, the Public Body has caused this Agreement to be duly executed in its behalf and its seal to be hereunto affixed and attested; and, thereafter, the Government has caused the same to be duly executed in its behalf this 20th. day of October, 1972. ATTEST: B. L. Wade Assistant Secretar CITY OF SOUTH BEND DEPARTMENT OF REDEVELOPMENT Name of Public Body) - Sig /nature Fred J. Helmen Type or Print Name of Public Body Official President Title UNITED STATES OF AMERICA Secretary of Housing and Urban Development By Signature (Title of Officer Authorized to Execute) Page 4