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HomeMy WebLinkAboutAgenda - 06-22-1998 - 8hoRANCe courvTv BOARD OF COMMISSIONERS Action Agenda Item No. B-~ ACTION AGENDA ITEM ABSTRACT Meeting Date: lone 22, 1998 SllB1ECT HOMEP gr -OPC A•^"' Pr gr DEPARTMENT: Homing and Community Development PUBLIC BEARING: (YM) BUDGET AMENDMENT: (YM) ATTACHMENT(S): INFORMATION CONTACT: Developmem Agreemem Tara L. Fikes TELEPRONE NUMBERS: -- art 2090 tlilhborough ]32-91St Chapel BBI 96&4501 Durham 689-T331 Mebane 23]-2031 To approve a Development Agreement with the Orange-Person-Chatham Mental Health Agenry for HOME funding available far rental property acquisition and rehebilitatiw in the Cowry on behalf of the Orange County HOME Consortium. BACKGROUND: The Orange County HOME Consortium designated 54Q000 of 199]-98 HOME Pondirlg to moist Orange-Persoo-Chatham Memal Health Agenry (OPC-MH) with the acquisition wd airy necessary ovations ofavailable condominiums in the Chapel HiIVCartboro area. These units would then be rented to OPC-N1H severely and persirtendy mmWly ill diems sad OPC-MH will provide the necesary support services to enure the successful indepeMem living. In order to facJimte Ws program, the County as the lead adminirtrative entity for the Orwge County HOME Consortium, would enter into the agrammt with Ormgo-Pason-Chatham Mrntal Health Agency on behalf ofthe Conartium for tNS purpme. RECOMMENDATION(S): The Manger recommerAS authorivng the execution of Development Ageement with the Omnge- Person-Chatham Mental Health Agency kr HOME funding available for renal property acquisition and rehabilimtion in the Cowry on behdfofthe Orange Coumy HOME Consortium upon the County Attomry's review and approval. Jll W f1 ~f 2 NORTH CAROLINA ORANGE COUNTY DEVELOPMENT AGREEMENT This is an AGREEMENT between Orange County, a general local governmental unit of [he State of Nonh Carolina, (hereinafter referretl to as the "County") antl Orange- Penon-Chatham Mental Health AuNOrity, a Nonh Carolina nonprofit coryoration (hereinafter referred to as "OPC"). The tlate of Mis Agreement is June 22, 1998. WITNESSETN WHEREAS, the Orange County HOME Consortium has tlesignatetl 590,000 in 799] HOME funtls for the purpose of enabling the Orange-Person-Chatham Mental Health Authority to acquire and rehabilitate rental property locatetl in Oange County for lease to severely and persistently mentaly ill County resitlents; and WHEREAS, the County is the lead entity of the Orange HOME Consortium, so tlesignatetl in an agreement tlatetl June 25, 1996, antl amentletl September 20, 1998, antl as such is the teatl entity in a representative rapacity (or all members of the Orange HOME Conaonium for the purposes of carrying out the HOME Program in accoMance with the Title II of the Cranston-GORakQ National Affortlable Housing Act (Pub. L. 101- 825), (42 U.S.C. 3535(tl.) et. sc~.) (hereinafter refenetl to as the "Ad"), antl as further tlefined in the Fetleral Program Requirements provided by the ILS. Department of Housing and Urban Development; antl NOW, THEREFORE, in conskleration of the premises antl the mutual covenants herein centainetl, the parties hereto do agree as follows: 1. OPC agrees to acquire, repair antl manage the tenancy at purchased property in the following manner. a. All prospective property must be inspectetl for health and safety defects prior to purchase. Ataminimum,the property must meet the Sections Housing puality Stantlartls (HOS). b. If the dwelling fails to meet Section B Housing Quality Stantlartls (HOS) antl repairs are necessary, the sponsor is responsible for ensuring that the work is tlone properly. The dwelling must not be ocwpietl by a selected tenant prior to the property meeting Section 8 Housing Quality Stantlartls. c The property to be acquiretl must have a value that does not exraed 95% of the area metlian purchase price far [hat type of housing. Value must be establishetl by one of [he following methotls: i. An appraisal by a qualifietl appraiser. n. Taz assesamenLS may be used to establish value, but only if they are current antl can be computed at 100% of market value. d. Transfer of property that includes rehabilitation requires an appraisal by a qualified appreiser. If rehabilitation is required, the appreised value of the property after rehabilitation cannot exceetl 95% of the metlian area house value. (Note, the property value-not purchase price-must be equal to or less than 95%of median purchase price.) The after rehabilitation value estimate must be completed prior to the invesMent of HOME funtls. 2. The Property shall be securetl by a note from OPC to the County and a tleed of trust constituting a fret lien on the each lot of subject Property which deed of trust shall tlesignate the County as the securetl partylbenefciary. The note and tleetl of trust shell be in the form of the tlocuments that are aHachetl to antl a part of this Agreement. 3. OPC agrees [o rent the property to a family whose income tloea not exceetl 50% of the area metlian income by family size, as tletenninetl by the U. S. Department of Housing and Urban Development antl as amendetl from time to time. 4. Any rental income in excess of the epprovetl rental operations butlget must be returned to Orange County at the end of the July 1 fscal year annually. 5. The County and OPC agree to comply wkh the Act, its regulations antl Fetleral Program Requirements in the purchase antl lease of the Property. The County antl OPC further agree to comply with the provisions of the Funtling Agreement, datetl July 1, 1997, attachetl hereto and made a part of this Agreement (Exhibit B). 6. Miscellaneous Provisions. a. Termination of Agreement The obligations of Ne parties hereuntler antl the speck obligation of OPC to provide rental housing for low inrgme families shall terminate on December i6, 2017. Notwithstanding the foregoing, the parties hereto may terminate this Agreement at any time by a mutual agreement to that eNecf in writing. b. Oahult, Remetliea. This Agreement may be hrmina[etl by a non- defaulting party upon an event of default hereuntler, after written notice thereof is given giving the defaulting party thirty (30) days in which to cure the default As usetl herein, [he term "an event of default" shall mean antl refer to a breach of any of the terms of this Agreement inclutling a failure to meet the Ome limitations conhinetl in this Agreement and a failure to act as required by this Agreement by eiMer party with respect to any untlertaking, obligation, covenant or contlition as set foM in this Agreement which the defaulting party has not curetl. WRh respect to any event of tlefault, the non-defaulting parry may exercise any right available to k at law or in equhy with respect to such tlefauk. c. Books and Necortla. Each party shall keep and maintain books, records antl other documents relating tlirectly to the receipt and disbursement of grant funtls and the fulfillment of this Agreement. Each party agrees that any authorized representative of the County, the State, the U.S. Department of Housing antl Urban Development antl Comptroller General of the United States shall, at all reasonable times, have access to antl the right to inspect, copy, audit and examine all of the books, recortls antl other documents relating to the grant and the fulfilment of this Agreement for a pedotl of three (3) years following the completion of the Project. d. Congict with HOME Agreement. Notwithstantling anything herein [o the contrary, the parties hereto acknowledge the tlue execution of a HOME Progrem Agreement between the County and the U.S. Department of Housing and Uban Development antl agree that any cengid between the provisions, requiremen5, tluties or obligations of this Agreement antl the HOME Agreement shall be resolvetl in favor of the HOME Agreement. e. Notices. Any Notice shall be in writing antl shall be given by depositing the same in the United States mail, post-paitl and registered or certifed, antl atldressed to the parry to be no[Red, with return-receipt requesteq or by tleliverinq the same in person to an officer or principal of such party. Notice tlepositetl in the mail in the manner here in above described shall be effective upon mailing. For purposes of Notice, the atldresses of the parties shall, unless changed as hereinafter providetl, be as follows: i. To the County: Omnge County Go Housing antl Community Development Department P.O. Boz 8181 Hillsborough, NC 2]2]8 ATTN: Director ii. To OPC: Orange-Person-Chatham Mental Health Authority ATTN: Executive Director Either the County or OPC may change the person or address to which any future Notice shall be given as herein providetl. f. No Assignment No transfer or assignment of OPC's interest in this Agreement shall occur wkhout the prior wrigen consent of the County. g. Binding Effect. This Agreement shall be binding upon antl shall inure to the beneft of the parties hereto antl their respective successors and assigns. h. Entire Agreement; Motlification. This Agreement, with all exhibits and anachments hereto, constitutes the entire agreement between the County antl OPC. No motlification or amendment to this Agreement shall be binding upon either parry unless matle in wrking and executetl by each party. i. No Joint Venture or Agency. The County antl OPC each agree antl acknowledge that nothing contained herein or otherwise, inclutling, without limkatioq any ad of the County or OPC under this Agreement, shall be tleemetl or construed to create any relationship of Joint venture, partnership or agency between Ne parties. j. Effect of Waiver or FOrbeannce. No hailure by the County to insist upon [he strict pertonnance of any tens or condition of this Agreement, or to exercise any right or remedy upon the breach by OPC of any of its obligations, agreements, or covenants hereuntler, shall be a waiver of such affected tern or condition or of such breach; nor shall any forbearance by the County to seek a remedy for any breach by OPC be a waiver by the County of its dghls antl remedies wkh respect to that or any other Creech. k. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the Stale of North Carolina. Any litigation arising out of this Agreement shall be brought in courts skiing in North Carolina, with venue in Orange County. I. Severebilily. The provisions of this Agreement are intlepantlent of antl separable from each other, antl no provision shall be affected or rentleretl invalitl or unenforceable by the fact that far any reason any other provision may be invalid or unenforceable in whole or in part. If any provision of [his Agreement or the application [hereof to any person or circumstances shall, to any exent, be or become invalitl or unenforceable, the remaintler of this Agreement, or the application of such provision to persons or circumstances other than Mose as to which tt is heltl invalitl or unenforceable, shall not be affected thereby, antl each provision of this Agreement shall be valid antl be enforcetl to the fullest extent permittetl by law. The County antl OPC agree to aubstkute for such provision of this Agreement or the application thereof determined to be invalid or unenforrable, such other provision as most closely approximates, in a lawful manner, such invalid, illegal or unenforceable provision. If [he Count' antl OPC cannot agree, they shall apply to a court of competent judsdigion to substitute such provision as the court tleems reasonable and jutlicially valiq legal antl enforceable. Such provision tle[ermined by the court shall au[ometically be deemetl part of [his Agreements initio. m. Equal Opportunity. OPC shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, political affiliation or belief, age, or handicap. a Heatlings. Heatlings are for convenience only antl shall not be usetl to interpret or construe its provision. o. Gentler; Singular antl Plural. As usetl herein, the neuter gentler includes the feminine antl masculine. The masculine inclutles the feminine antl neuter, and the feminine includes the masculine antl neuter antl each includes a corporation, pannership or other legal entity when the context so requires. The singular number includes the plural and vice versa, whenever the context so requires. p. Recording. The ponies hereto agree that upon notice to the other and at ks own cost and expense, a paM may recent this Agreement in [he ORCe of Register of Deetls for Orange Count'. q. Compliance with Laws. To fie eNent applicable, each party hereto agrees to compy with all laws, oMinances antl regulations affecting the Property fiom antl after the date hereof Without limiting [he generality of the foregoing, OPC shall comply with all fetleral, state antl local laws, regulations and ortlinances applicable to the expentlhure of funtls provitled by the County, to purchase antl develop the Property. c Publleiy; Slgnage. OPC agrees to provitle such publicity with respell to the County's panicipa0on in the tlevelopment of the Property as the County shall reasonably require. Any signage a[ the Property shall acknowletlge the County's role and contribution. s. Counterparts. This Agreement may be executed in one or more rqunterparts, each of which shall be deemed an original but all of which together shall constltule on and the same instmment. t No ThiN Party Righb. The ponies hereto covenant and agree that nothing mntainetl in this Agreement or any act by the County or OPC shall be tleemetl or construed by the ponies or any third party to create any relationship of thirtl party benefciary, including thirtl party principal or agent, or to create any right, claim or cause of action against the County, OPC or any of [heir respective ofhcers, agents or employees by any thirtl party. u. Performance of Government Functions. Notwithstanding anything in this Agreement which may be to the contrary, nothing containetl in this Agreement shall in any way stop, limit or impair the County from exercising or performing any regulatory, policing or governmental powers or functions with respect to the Property including, without limitation, inspection of Me Property in the pedortnance of such functions. IN WITNESS WHEREOF, [he parties hereto, intentling to be legally bound, have set their hands antl seals on the day and year first above written. COUNTY OF ORANGE, NORTH CAROLINA (SEAL) Margaret W. Brown, Chair Omnge County Boartl of Commissioners ATTEST: Beverly A. Blythe Clerk to the Boartl of Commissioners NORTH CAROLINA ORANGE COUNTY This is to certify that on this day personalty came before me Beverly A. Blythe, with whom I am personally acquainted, and being by me duly sworn, says that Margaret W. Brown, is the Chair of the Orange Count' Boartl of Commissioners, and that she the said Bevedy A. Blythe, is the Clerk to the Board of Commissioners of the County of Orange, tha body polkic antl corporate nametl within and which executed the foregoing instrument; that she knows [he common seal of saitl County; that the seal affwed to saitl instrument is said common seal; that the name of Orange County was subscribed thereto by the saitl Chair of the Orange County Boartl of Commissioners and that the saitl Chairman of the Orange County Board of Commissioners and said Beverly A. Blythe subscribed Neir names hereto and said common seal was affixed, all by order of [he Boartl of County Commissioners of Orange County antl that said instrument is [he act and deetl of Orange County. Witness my hand antl notarial seal, [his [he _ tlay of 1998. Notary Public My commission expires: ORANGE PERSON CHATHAM MENTAL HEALTH AGENCY (SEAL) ATTEST: NORTH CAROLINA ORANGE COUNTY I, ,Notary Public in and for the above nametl County antl State, do hereby certify [hat on this tlay personally appeared before me, with whom I am personally acquaintetl, who, being by me duly sworn, says that he is Secretary antl [hat is President of Orange Person Chatham Mental Health Agency, a North Carolina corporaM1Oq and that by authorM1y duly given antl as tha act of [he corporation, the (ongoing instrument was signetl in ks name by ds Presitlent, sealetl wtth its corporate seal and attestetl to by its Secretary. Witness my hand antl notarial seal, this the tlay Notary Public My commission expires'.