HomeMy WebLinkAboutCAG2021-292 - Original - Habitat for Humanity - MOU: Related to Use of Proceeds From the Neighborhood Stabilization Program - 06/22/2021ApprovalOriginator:Department:
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rev. 200804
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FOR CITY OF KENT OFFICIAL USE ONLY
N/A
Other
N/A
Other
6/21/2021
Habitat for Humanity Seattke-King County
4
Original
12/31/2026
4
N/A
Parks, Recreation & Community ServicesDinah Wilson
N/A
ASAP
N/A
MH
MEMORANDUM OF UNDERSTANDING RELATED TO USE OF
PROCEEDS FROM THE NEIGHBORHOOD STABILIZATION PROGRAM
Page 1 of 4
MEMORANDUM OF UNDERSTANDING
RELATED TO USE OF PROCEEDS FROM
THE NEIGHBORHOOD STABILIZATION PROGRAM
This Memorandum of Understanding (“MOU”) is made between the City of Kent, a
Washington municipal corporation ("City"), and Habitat for Humanity Seattle-King
County, a Washington State public benefit corporation ("Contractor"). Habitat for
Humanity Seattle-King County is the successor by merger to Habitat for Humanity
Seattle/South King County, and has succeeded to all its interests and obligations
under the parties’ NSP Agreement.
I. RECITALS
1.1 Through an original agreement, dated February 23, 2010, and
subsequent amendments to that agreement, dated August 13, 2010, and August
10, 2011, (collectively “NSP Agreement”), Contractor agreed to act as developer to
whom the City awarded Neighborhood Stabilization Program (“NSP”) funds. As a
developer, Contractor agreed to use NSP funds to acquire within the City of Kent
foreclosed homes and other residential properties to rehabilitate for use or resale
for residential purposes to qualifying individuals.
1.2 The City provided Contractor with $475,264 in NSP funds. Of this
amount, $23,763 was retained by Contractor as its fee for administering the
program, with the remaining $451,501 being used to acquire, rehabilitate, and sell
the following three single-family homes to qualifying individuals who met income
limitations required by the grant program: 11947 SE 254th Street; 27717 126th
Avenue SE; and 22932 126th Place SE; all located within the City of Kent,
Washington. Contractor also used a portion of leftover NSP fund to acquire a fourth
property in Kent, a condominium at 13211 SE 256th Street.
1.3 Each home sale to qualifying individuals included restrictions on resale
for the period of affordability required by the NSP grant program and 24 CFR
92.254(a)(5)(i), which Contractor has secured through recorded restrictions on each
property’s title. Each sale was owner-financed by the Contractor, subject to all NSP
grant requirements, and at zero percent (0%) interest.
1.4 All NSP mortgage payments received by Contractor have been
deposited into a segregated non-interest bearing account, which the parties agreed
in their August 10, 2011, contract amendment would be directed to future projects
to be mutually agreed upon between the City and Contractor to benefit low/
moderate-income residents within the City of Kent.
Page 2 of 4
1.5 The parties wish to enter into this MOU to further define how revenue
received by Contractor from these three deeds of trust will be managed.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which
is hereby acknowledged by the parties, the parties agree as follows:
II. PROVISIONS OF UNDERSTANDING
2.1 All NSP mortgage payments received by Contractor for the three Kent
homes acquired using NSP funds will continue to be maintained within a segregated
non-interest bearing account (“Kent NSP Fund Account”), which will be managed in
accordance with this MOU. In administering the Kent NSP fund Account, Contractor
shall use an internal accounting system that is both auditable and conforms to all
federal audit requirements.
2.2 Throughout the term of this MOU, Contractor commits to the following:
A. Submitting a Mortgage Receipts report to the City concerning
the Kent NSP Fund Account by the 15th of each April, which shall include reference
to deposits received and expenses paid through the Kent NSP Fund Account.
Contractor shall deposit only twenty-four percent of the funds from the property at
13211 SE 256th Street into the NSP Fund Account. Reports shall be emailed to staff
in the City’s Human Services Division of the Parks, Recreation, and Community
Services Department at drwilson@kentwa.gov or if that address is not available at
humanservices@kentwa.gov. The parties shall meet at least annually to discuss the
status of the Kent NSP Account and projects over the coming year.
B. Submitting a Program Income Report concerning program
income earned and disbursed and a NSP Change in Use Report concerning
the status of any change in use and the continued affordability of NSP
recovered properties on forms provided by the City by the 15th of each April.
B. Using the Kent NSP Fund Account to purchase and rehabilitate
foreclosed or other residential properties within Kent for resale, or to further other
affordable housing and community stabilization opportunities for Kent homeowners
and residents who meet the original eligibility requirements of the Neighborhood
Stabilization Program. The Contractor and the City shall mutually agree in writing
when funds are used to further affordable housing and community stabilization
opportunities that do not include purchasing and rehabilitating foreclosed or other
residential properties within Kent for resale.
C. Soliciting volunteers to support site preparation and
rehabilitation of homes in the Kent area.
D. Acquiring external resources and partners to complete individual
and cooperative projects that may include repair and/or rehabilitation of homes in
Kent and the surrounding area.
Page 3 of 4
E. Providing home ownership training and education.
F. Establishing a homebuyer selection process.
2.3 City and Contractor may meet at any time to discuss use of proceeds
within the Kent NSP Fund Account and develop a plan for use of the fund proceeds
in accomplishing the mutual goals of the parties to provide affordable housing and
community stabilization for the City of Kent. Any new projects shall be incorporated
into this MOU by amendment as the parties may mutually agree, but all funds
derived from proceeds made available through the Neighborhood Stabilization
Program shall continue to be subject to the requirements of the parties original NSP
Agreement, including maintaining properties for ownership or occupation by Kent
area residents who meet necessary income limits during the Neighborhood
Stabilization Program’s affordability period.
2.4 City and Contractor will together be responsible for sustaining NSP
projects to maintain compliance with regard to income eligibility of participants,
including responsibility for compliance with provisions to assure continuing
affordability.
2.5 This MOU shall commence on the last date signed below and shall
continue until December 31, 2026, which represents the HOME affordability period
applicable under the NSP Agreement, which is subject to a required 15-year
affordability period restricting resale. The parties may agree to extend the term
of this MOU in writing signed by both parties.
The affordability period is 15 years from the date the home was sold
to an eligible homebuyer. At the time of sale to eligible homebuyers, Contractor
placed a deed restriction on each home acquired using NSP funds. The deed
restriction restricts the appreciation that the homeowner may earn upon sale and
will require that, if the home is sold during the affordability period, it must be sold
to other low- or moderate-income buyers. The deed restriction also requires owner
occupancy of the home.
2.6 Contractor shall defend, indemnify, and hold harmless the City and
its officers, boards, commissions, employees, agents, attorneys, and contractors
from and against any and all liability, damages, and clai ms, (including, without
limitation, reasonable fees and expenses of attorneys, expert witnesses and
consultants), which may be asserted by reason of any act or omission of Contractor,
its employees, agents, or contractors, which may arise out of this MOU or the NSP
Agreement.
2.7 This MOU creates a commitment by both parties to work together using
their best efforts, in good faith, to achieve the goals and objectives expressed in this
MOU.
2.8 This MOU may be executed in any number of counterparts, all of which
will together constitute one agreement.
Page 4 of 4
DATED and entered into by the parties below and effective on the last date signed.
CONTRACTOR: CITY:
Habitat for Humanity Seattle-King County City of Kent
_____
Print Name: Brett D’Antonio Print Name: Julie Parascondola, CPRE
Title: Executive Director Title: Parks Director_________
Date: Date: _____
Brett D'Antonio (Jun 21, 2021 08:34 PDT)
Brett D'Antonio
6/21/21
Julie Parascondola (Jun 22, 2021 08:56 PDT)
Julie Parascondola
6/22/2021
Signature:
Email:
Signature:
Email:
Signature:
Email:
Merina Hanson (Jun 21, 2021 08:25 PDT)
mhanson@kentwa.gov rlashley@kentwa.gov
Melissa McCormick (Jun 22, 2021 09:09 PDT)
Melissa McCormick
cityclerk@kentwa.gov
Final MOU - Habitat for Humanity 2021
Final Audit Report 2021-06-22
Created:2021-06-21
By:KateLynn Jennings (kjennings@kentwa.gov)
Status:Signed
Transaction ID:CBJCHBCAABAAJzaxbqOQtAy2rhK8xEJ14Qfm-NXb-fko
"Final MOU - Habitat for Humanity 2021" History
Document created by KateLynn Jennings (kjennings@kentwa.gov)
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Document emailed to Merina Hanson (mhanson@kentwa.gov) for signature
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Document e-signed by Merina Hanson (mhanson@kentwa.gov)
Signature Date: 2021-06-21 - 3:25:03 PM GMT - Time Source: server- IP address: 98.232.40.129
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Document e-signed by Brett D'Antonio (brett.dantonio@habitatskc.org)
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Agreement completed.
2021-06-22 - 4:09:17 PM GMT