RES 1999-3134 - Agmt with Minority Contractors Development Organization for rehabilitation of houses o �� j''''` I(°' JF- ¢j t j Planning Department
,i7AIW IAV; Omaha/Douglas Civic Center
i� 1819 Farnam Street,Suite 1100
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�®,�' (11t a ,F Omaha,Nebraska 68183-0110
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City of Omaha foi l L l;t aw F fl ; Robert C.Peters
Hal Daub,Mayor December 30, 1999 Acting Director
• Mr. Ronald Jefferson, President
United Minority Contractors Association
of Nebraska
2221 North 24th Street
Omaha, Nebraska 68110 •
•
Dear Mr. Jefferson:
The City Council approved an Agreement between the City of Omaha and Minority
Contractors Development Organization (MCDO) on November 23, 1999, by Resolution
No. 3134. This agreement allocated $100,000.00 to MCDO to purchase, rehabilitate and
market four vacant substandard single-family houses for sale to low income households
in an area North of Dodge and East of 60th Street. Therefore, as requested in your
August 10, 1999 correspondence, and in accordance with the Termination clause
contained in Section 6, Paragraph 6.9, the agreement between United Minority
Contractors Association of Nebraska and the City of Omaha approved July 28, 1998, by
Resolution No. 2104,is hereby terminated.
•
Sincerely,
Robert C. Peters
Acting Planning Director
S
jd
cc: Mike Saklar
John Rehtmeyer
Daisy Burton •
Larry Greene
Buster Brown
Sheri Cotton
Tony Acosta
Ken Johnson
Kit Diesing
Al Epps
.: . #43/
oMr.ae,NFB Planning Dep ent
f 1``, , C E + 1� Omaha/Douglas Civic Center
1819 Farnam Street,Suite 1100
Wa rtiy?, 1Lj
'99 NOV 'p !��j Omaha,Nebraska 68183 0110
OF; tF2 •I ! UJ
o,p._ ��r, ,,; (402)444-5200
A- - ti :__ + n (402)444-5150
047'ED FEBg i> ( 11 ,7C SE 'November 2 3, 1999 Telefax(402)444-6140
it Ili..' t +.t•,�,. . , Robert C.Peters
City of Omaha Acting Director
Hal Daub,Mayor
Honorable President •
and Members of the City Council,
The attached,proposed Resolution authorizes a Community Development Block Grant (CDBG)
Revolving Loan Fund of $100,000.00 for the Minority Contractors Development Organization,
(MCDO), a Nebraska noel-profit corporation, located at 6102 North 56th Street, C-22, Omaha,
Nebraska 68104,Rev. Wilkinson M. Harper, President. The Agreement allocates $100,000.00 from
FY 98 CDBG funds which is included in the 1998 Consolidated Submission for Community
Planning and Development Programs approved by the City Council on December 16, 1997, by
Resolution No. 3397.
The $100,000.00 Revolving Loan Fund will be used by the MCDO to purchase, rehabilitate, and
market approximately four previously vacant:substandard single-family houses to home-buyers in
an area North of Dodge Street.and East of 60th Street.
All homes will be initially purchased by households whose annual incomes are less than or equal to
80% of the Median Income by Family Size. .
The Contractor has on file a current Annual Contract Compliance Report Form (CC-1). As is City
policy, the Human Relations Director will review the Contractor to ensure compliande with the
Contract Compliance Ordinance.
Authorizing the approval of this proposed Agreement will allow MCDO to successfully complete
this worthwhile, housing development project. We urge jour favorable consideration of this
Agreement.
Respectfully submitted, • Referred to the City Council for Consideration:
•
/' / VO/
Robert C. Peters, Acting Director • Date M yor's Office/Title Date
Planning Department
• ..ro ed as to Funding: Appr ved:
it/ JAI VotaLek=fidulea_i_I biq
•
Louis A. D'Ercole Date Kellie Paris Date
Finance Director ')v Human Relations Director
•
P:\PLN3\7526..MAF
AGREEMENT
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal
Corporation in Douglas County,Nebraska, also referred to as "City", and the Minority Contractors
Development Organization, a Nebraska Non-profit Corporation, (MCDO) 6102 North 56th Street,
C-22, Omaha,Nebraska 68104, (sometimes hereinafter referred to as "MCDO") for the acquisition,
rehabilitation, and marketing for sale of approximately four previously vacant, substandard single-
family homes in the area North of Dodge Street and East of 60th Street.
RECITALS:
WHEREAS, the City of Omaha (hereinafter referred to as "the City") is a municipal
corporation located in Douglas County,Nebraska, and is organized and existing under the laws of
the State of Nebraska,and is authorized and empowered to exercise all powers conferred by the State
constitution, laws, Home Rule Charter of the City of Omaha, 1956, as amended, and local
ordinances, including but not limited to, the power to contract; and,
WHEREAS, the City annually receives Community Development Block Grant (CDBG)
funds under Title I of the Housing and Community Development Act of 1974, as amended, for the
purpose of benefitting low and moderate income residents, eliminating slums and blight, and for
other urgent community development needs; and,
WHEREAS,the City Council approved the City of Omaha's 1998 Consolidated Submission
for Community Planning and Development Programs (Consolidated Plan) on December 16, 1997,
by Resolution No. 3397, setting out the City's Community Development Program for 1998; and,
WHEREAS,the Revolving Loan Fund Program was included in the FY98 Consolidated Plan
and$100,000.00 was allocated to the program; and,
WHEREAS, MCDO proposed to purchase,rehabilitate, and market for sale approximately
four homes to low and moderate income residents within the MCDO Target Area during the term
of this Agreement; and,
WHEREAS, MCDO plans to assist potential homebuyers in obtaining mortgage financing
at affordable rates;and,
WHEREAS, a determination has been made that this project provides or improves housing
which is determined to benefit low and moderate income persons or addresses slums and blighted
conditions on a spot basis; and,
WHEREAS, it is in the best interest of the citizens of the City of Omaha to continue the
acquisition and rehabilitation of vacant, substandard single-family dwelling units in North Omaha.
NOW,THEREFORE, in consideration of these mutual covenants,the Minority Contractors
Development Organization and the City of Omaha agree as follows:
Section 1. Definitions
The following terms shall have the following meanings for all purposes in this Agreement:
1.1 "Contractor" shall mean - the Minority Contractors Development Organization, a
Nebraska Non-profit Corporation, 6102 North 56th Street, C-22, Omaha,Nebraska
68104 (see Exhibit "A").
1.2 "City" shall mean -the City of Omaha, a Nebraska Municipal Corporation.
1.3 "Director" shall mean-the Planning Director of the City of Omaha.
1.4 "Target Area" shall mean - the area North of Dodge Street and East of 60th Street.
1.5 "Property" shall mean-those vacant, substandard or owner-occupied dwelling units
acquired and rehabilitated or those scheduled for acquisition or rehabilitation in the
Target Area.
1.6 "MCDO" shall mean-Minority Contractors Development Organization.
1.7 "Revolving Loan Fund" shall mean-a separate fund established for the purposes of
carrying out specific activities which,in turn, generate payments to the fund for use
in carrying out such activities. Revolving Loan Fund is the program using the funds
as set out in this Agreement.
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1.8 "Low Income Family" shall mean- a family whose annual income does not exceed
80 percent of the median income for the Omaha,Ne-Ia Metropolitan Statistical area
as determined by HUD.
1.9 "Developer" shall mean - a public or private non-profit agency, authority,
organization receiving CDBG funds to undertake eligible activities. In this
Agreement, the developer is Minority Contractors Development Organization.
1.10 "HUD" shall mean-the U.S. Department of Housing and Urban Development.
1.11 "CDBG" shall mean - that portion of the Community Development Block Grant
awarded to the City, subject to and conditioned upon actual receipt of same by the
City of Omaha, as may be available to loan during the FY 1998 program year for the
use specified herein in an amount not to exceed $100,000.00, subject to the terms,
conditions and requirements of said Revolving Loan Fund Agreement.
1.12 "CDBG Funds" shall mean - that portion of the Community Development Block
Grant Program funds awarded to the City in an amount not to exceed $100,000.00
as may be available to loan during the program year 1998,conditioned upon actual
receipt of same, for the purposes stated herein
1.13 "Deferred Payment Loan (DPL)for Rehabilitation Financing" shall mean -a loan of
CDBG funds made subject to the terms, conditions and provisions of the loan
agreement under which said loan is made, secured by no less than a second
mortgage/deed of trust on an individual property,which shall provide, inter-alia,that
same shall become due and payable without interest upon the sale or transfer of
ownership of the property, or portion thereof, or interest therein by the Owner.
1.14 "Deferred Payment Loan to Assist Homebuyer" shall mean- a loan of CDBG funds
for a rehabilitated property, made subject to the terms, conditions and provisions of
the loan agreement under which said loan is made, secured by no less than a second
mortgage/deed of trust on an individual property, which shall provide,inter-alia,that
same shall become due and payable without interest upon the sale or transfer of
ownership of the property, or portion thereof, or interest therein by the Owner within
5 years from the date of loan closing.
•
After 5 years on the rehabilitated property, the Deferred Payment Loan amount will
depreciate 50%with the remaining depreciated balance due upon sale or transfer of
the property. Following the initial depreciation,the Owner may choose to repay the
50%DPL balance over a period of time. Upon written request by the Owner to repay
the DPL balance, the Planning Director will determine the terms and conditions of
repayment.
1.15 "Client" shall mean-a qualified participant making application to MCDO Housing
Revolving Loan Program.
1.16 "Authorized Projects" shall mean - those projects selected by the MCDO staff.
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1.17 "Subrecipient" shall mean - a public or private non-profit agency, authority or
organization receiving CDBG funds to undertake eligible activities. In this
Agreement, the Subrecipient is the United Contractors Development Organization.
1.18 "Recipient" shall mean -the City of Omaha.
1.19 "Program Income" shall mean - the gross income received by the Recipient or
Subrecipient directly generated from the use of CDBG funds. When such income is
generated by an activity that is only partially assisted with CDBG funds, the income
shall be prorated to reflect the percentage of CDBG funds used (see Exhibit "B").
1.20 "Rehabilitation Contract" shall mean - the ensuing contract for all Rehabilitation
Work to be performed upon the subject property within the Target Area.
1.21 "Rehabilitation Work" shall mean-the work to be performed on the property within
the Target Area and all work or services provided for in professional services or
construction contracts and as may be required hereunder.
1.22 "Progress Payment" shall mean-that portion of the total rehabilitation contract paid
in one or more disbursements, based upon the value of the rehabilitation,
administrative or professional services work completed at the time the payment
request is made.
Section 2. Duties and Conditions of City Financing
Subject to and conditioned upon actual receipt of same, the City agrees to provide a CDBG
Revolving Loan Fund not to exceed $100,000.00 for a twenty-four month period subject to the
following conditions:
2.1 Use of funds in the Revolving Loan Fund, plus any program income, is limited to
approved MCDO's acquisition/rehabilitation activities.
2.2 Loans must be made in compliance with Section 1.13, 1.14, 2.16 and 2.17 of this
Agreement and the Subrecipient Underwriting Guidelines for a City of Omaha
Deferred Payment Loan, attached hereto as Exhibit "C" and incorporated herein by
this reference as though fully set forth.
2.3 After completion of rehabilitation, the property must comply with all state, federal
and local laws, ordinances, regulations, and codes, including but not limited to,
Section 8 Housing Quality Standards for Existing Homes (HQS) as established by
the Department of Housing and Urban Development (HUD). The Director shall
assist MCDO in the same manner the Director provides technical assistance to other
contractors during the construction phase to ensure compliance with such
requirements.
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2.3.1 The City may perform periodic inspections to ensure compliance with
Section 2.3.
2.4 Technical assistance will be provided by the City of Omaha Housing and Community
Development Division if requested by MCDO.
2.5 The Contractor may not request disbursement of funds under this Agreement until
the funds are needed for payment of eligible costs based upon the value of the
rehabilitation, administration,or professional service work completed at the time the
payment request is made. The amount of each request must be limited to the actual
amount needed.
2.6 The City will process requests for payment for rehabilitation financing up to
$60,000.00 for a rehabilitated property based upon billings for:
2.6.1 Any financing, legal, accounting or architectural costs associated with the
acquisition/rehabilitation of properties in the Target Area.
2.6.2 Costs associated with the acquisition of properties located in the Target
Area.
2.6.3 Acquisition costs for materials which will be used in the acquisition/
rehabilitation of properties located in the Target Area.
2.6.4 Costs incurred for labor associated with the acquisition/rehabilitation of
properties located in the Target Area. Profit and overhead shall not exceed
15% of the rehabilitation costs.
2.6.5 Costs associated with utility hookups and site preparation of the properties
being acquired/rehabilitated in the Target Area.
2.6.6 Any demolition costs associated with the acquisition/rehabilitation of the
properties in the Target Area.
2.6.7 Partial rehabilitation financing for each single family house at no interest as
follows:
2.6.7.1 In the case of a rehabilitation property, such rehabilitation
financing shall be made to MCDO without interest in an amount
not to exceed$60,000.00 per unit. Such loans shall become due
and payable to the City at the loan closing from the sale proceeds
as each individual house is sold.
2.6.7.2 At the closing of a loan for each sale of a house and upon
repayment of the City's Deferred Payment Loan, the City shall
release its mortgage or process a deed of reconveyance for its
deed of trust for such property. - —"
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2.6.7.3 The Contractor(MCDO)may receive reimbursement for eligible
expenses in excess of the sales price of a rehabilitated property
only. The reimbursement may not exceed twelve percent (12%)
of the sales price. The reimbursement is based on eligible
expenses contained in Sections 2.6.1 through 2.6.7.8.
2.6.7.4 Initial sales price of each home cannot exceed the appraised value.
2.6.7.5 If the total cost of eligible expenditures is less than the sales price,
the difference is to be returned to the loan fund.
2.6.7.6 Partial mortgage or deed of trust financing to qualified low and
moderate income buyers through the use of Deferred Payment
Loans shall be secured by no less than a second mortgage or deed
of trust on individual properties and shall not exceed$15,000.00
for a rehabilitated property. The DPL amount will be provided in
accordance with the Deferred Loan Determination Process
attached hereto as Exhibit D, attached hereto and incorporated
herein by this reference as though fully set forth.
2.6.7.7 City funding pursuant to this Section shall be contingent upon
receipt of and subject to availability of Community Development
Block Grant funds in 1998 in amounts adequate to meet any
contractual obligations in force upon the date of execution of this
Agreement as well as this proposed obligation. Should adequate
funding not be available, the City shall notify MCDO as soon as
reasonably possible. At this time, the responsibilities of the
MCDO under Section 3 of this Agreement shall be released, and
the Agreement will be terminated.
2.6.7.8 Funds paying for contractual work shall be payable in
consideration with the construction progress payment schedule,
in accordance with the Director's prior approval.
2.7 The City agrees to loan MCDO the sum of$100,000.00, conditioned upon actual
receipt of same, as revolving funds to carry out the services described herein. Funds
may be drawn from this account to meet actual approved costs incurred by MCDO
as required. Any of the funds from this loan which are charged against the
acquisition/rehabilitation of a house, as approved and outlined in 2.6.1 through
2.6.7.8 and 3.2, shall be secured by no less than a second mortgage or deed of trust
on the property. The amount of that mortgage or deed of trust shall be due in full
upon sale of the property.
2.8 The City will review and monitor the monthly reports that identify the progress/
accomplishments of the MCDO on the activities included in this Agreement and on
contracts entered into with third parties pursuant hereto.
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2.9 Funds received by the City from MCDO shall be returned to the revolving loan fund
and be available to MCDO in the same manner as the initial $100,000.00.
2.10 Funds are available from the revolving loan fund only for those activities which have
occurred during the term of this Agreement.
2.11 Upon receipt by the City of all the funds secured by each property, the City shall
release its mortgage or provide a Deed of Reconveyance for such property.
2.12 The City agrees to cooperate with MCDO and to coordinate activities associated with
the implementation of the Scope of Work, attached as Exhibit "E" and incorporated
herein by this reference as though fully set forth.
2.13 Any of the funds drawn from the loan account to fund approved loans must be
secured with a first or second mortgage/deed of trust on the property.
2.14 In consideration of the program services herein provided, the City agrees to loan
MCDO the sum of$100,000.00, conditioned upon actual receipt of same, for the
MCDO Housing Revolving Loan fund from Community Development Block Grant,
Fund 193,Organization Number 8323.
2.15 The City will provide partial mortgage financing to qualified home buyers through
the use of a Deferred Payment Loan Mortgage or Deed of Trust. In no event shall the
interest exceed an amount considered usurious under federal or state law. The
Deferred Payment Loan Mortgage or Deed of Trust shall be secured by no less than
a second mortgage or deed of trust and shall be approximately equal to the amounts
established in Exhibit"D" attached to this Agreement and incorporated herein by this
reference as though fully set forth. This loan will be due in accordance with Sections
1.13 and 1.14 of this Agreement.
2.16 The City shall provide a DPL for rehabilitation financing for a rehabilitated property
in an amount not to exceed $60,000.00. Upon repayment of the rehabilitation
financing DPL,up to$15,000.00 will be available to assist a qualified homebuyer in
purchasing a property.
2.17 In the case of a foreclosure or upon receipt of a Deed in Lieu of Foreclosure, MCDO
may buy out the first mortgage and the second mortgage using "CDBG Funds". No
additional "CDBG Funds" will be disbursed to rehabilitate the property. After the
rehabilitation of the property, the maximum DPL to assist the homebuyer in
purchasing the property will be$15,000.00 on a foreclosed rehabilitated property.
2.18 The City may permit assumptions of its deferred payment loans provided the
proposed borrower meets all eligibility and underwriting requirements in effect at the
time the proposed borrower receives preliminary loan approval by the City.
2.19 In no event shall the City assume any obligation to make any or all of the above-
referenced funding available, nor shall the City incur any liability hereunder, unless
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and until the MCDO has submitted for and received the approval of the Director of
all of the following:
2.19.1 Duly executed contracts for Rehabilitation Work;
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2.19.2 A Performance and Labor Materials Bond and/or an Irrevocable Letter of
Credit in force for one year following the completion of the Rehabilitation
Work from the Contractors in aggregate amounts of their contract bids. The
Bonds and/or Letters of Credit shall be in favor of the City and shall be
submitted for review and approval by the Director. The City reserves the
right to reject the Letters of Credit and choice of surety for the Bonds; and,
•
2.19.3 Certificate of Insurance from all subcontractors in favor of the City and shall
be submitted for review and approval by the Director. The insurance
coverage shall be at a minimum for $200,000.00 bodily injury, or death,
$200,000.00 property damage and must include coverage for Worker's
Compensation.
2.20 In the event that all of the terms and conditions for funding as set forth hereinabove
have been fully complied with, the City does hereby agree to make only those
progress payments as may be authorized to be paid by the Director or his designate
upon receipt, verification and approval of an American Institute of Architects
Document G702 "Application and Certificate for Payment", provided that no
payments shall be made for any acquisition,work,labor,material or expense incurred
which the Director,in his sole discretion, deems to be:
a. unacceptable or substandard; or,
b. not in accordance with this Agreement or the rehabilitation contract as
approved; or,
c. not in conformance with the applicable state, federal and local laws,
including,but not limited to,the building,plumbing and/or electrical codes;
or,
d. not in conformance with the working drawings and/or specifications as
approved.
Section 3. Duties and Responsibilities of the Contractor(MCDO)
The Contractor(MCDO) shall:
3.1 Abide by all terms and conditions of the City's Agreement.
3.2 Certify, contract and agree that any and all funding obtained or made available
hereunder shall be used solely and exclusively for the express purpose of developing
- within the target area as defined in Section 1.4,—in strict compliance with this
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Agreement and the rehabilitation contracts, as approved, as well as the plans,
drawings, and other specifications, as approved.
3.2.1 The Contractor agrees that each of the housing units developed pursuant to
this Agreement shall have both an estimated appraised value at acquisition
and an initial purchase price which do not exceed 95%of the purchase price
for single-family housing for the Omaha Metropolitan Statistical Area as
determined by HUD, and,
a) is the principal residence of an owner whose family qualifies as
a Low Income family at the time of purchase; and,
b) is subject to the repayment/recapture provisions of the Deferred
Payment Loan Mortgage/Deed of trust and Promissory Note,
including the terms requiring payment in accordance with
Sections 1.13 and 1.14 of this Agreement.
3.2.2 If, through breach of this Agreement, the Contractor fails to maintain the
occupancy, affordability and use restrictions enumerated in Paragraph
3.2.1(a) of the Agreement, all CDBG funds previously provided to the
Contractor through fulfillment of this Agreement shall promptly be returned
to the City of Omaha.
3.2.3 The Contractor shall comply with the City of Omaha's Affirmative
Marketing Policy, attached hereto as Exhibit "F" and incorporated herein by
reference as though fully set forth.
3.2.4 Return to the City of Omaha any program income received within thirty(30)
days of receipt.
3.3 Use the City CDBG funds for those authorized items as outlined in Sections 2.6.1
through 2.6.7.8.
3.4 Maintain the property in a safe and sanitary condition, conform to City housing and
zoning ordinances and carry out the acquisition/rehabilitation and marketing and
selling properties in an efficient manner.
3.5 Make best efforts to acquire/rehabilitate and market/sale approximately four
properties in the Target Area during the term of this Agreement and perpetuate the
process with additional acquisition/rehabilitation and market/sale.
3.6 Provide services for clients as required in the Scope of Work Summary, attached
hereto as Exhibit "E" and made a part hereof by reference.
3.7 Submit an operating budget by line item indicating all proposed expenditures and
sources of revenue for the 1998 CDBG program year.
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3.8 Shall submit to the City the following reports in accordance with the submission
timelines as specified.
3.8.1 Construction Progress Reports - The Contractor will provide quarterly
reports to the Director delineating accomplishments,describing the progress
of construction,and any significant problems and/or delays in construction
on this project during the previous 90-day period.
3.8.2 Occupancy Reports - Prior to the sale of each unit, the Contractor will
provide to the Director the following information:
a) name(s) of buyer(s)
b) address of property
c) household income as a percent of Median Family Income as
determined by HUD
d) household size
e) gender of head of household member
f) age of each household member
g) race/ethnicity of head of household
h) disabled status of any household member
3.8.3 A monthly progress report to the City of Omaha,Director of Planning. The
progress report will delineate MCDO staff accomplishments for the previous
30 day period.
3.8.4 A monthly financial report(income statement) delineating the revenue and
line item expenditures for the MCDO. In addition, a monthly check register
is to be submitted reflecting payee, date, amount and check number.
3.8.5 A monthly time sheet, which indicates the allocation of time spent among
CDBG and non-CDBG funded rehabilitation loan projects.
3.9 Comply with all provisions and regulations of the Community Development Block
Grant Program and have an annual audit completed in compliance with OMB
Circular A-133. The auditor shall determine the appropriate type of audit to be
conducted;i.e. limited scope or full compliance. A single audit is not an allowable
expense unless the subrecipient expends total Federal fund over$300,000.00 in each
fiscal year. A limited-scope audit may be allowable provided the auditor conducts
the audit in accordance with generally accepted auditing standards and the
subrecipient expends less than$300,000.00 in each fiscal year. OMB Circular A-133
is attached as Exhibit "G".
3.10 Maintain such records and accounts, including property, personnel and financial
records, as are deemed necessary by the City to assure a proper accounting for all
expenses. The Comptroller General of the United States, or any of their duly
authorized representatives, or any duly authorized representative of the City of
Omaha, as approved-by the-Planning Director, shall have access to any books,---
documents, papers, records and accounts of the Contractor which are directly
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pertinent to this project for the purpose of making audit, examination, excerpts and
transcriptions. Such records and accounts shall be retained for five years from the
contract period completion. Any contract entered into by the Contractor with any
contractor or subcontractor shall include this section to insure said access.
3.11 Make best efforts to ensure that rehabilitation services, contracts and employment
opportunities are affirmatively marketed to women and members of minority groups.
MCDO shall submit to the director for his review and approval, a minority and
women business enterprises plan, which discusses employment opportunities for
persons in these groups. (See Exhibit "H").
3.12 Employ affirmative marketing procedures in the advertising and marketing of the
completed project. In marketing, MCDO shall also conform to the non-
discrimination provisions hereinafter set forth. The MCDO shall comply with the
affirmative marketing responsibilities specified in Exhibit "F".
3.13 Ensure that no Contractor or sub-contractor shall be used by MCDO,who has been
disbarred or disqualified by the U.S. Department of Housing and Urban
Development, or by the City of Omaha.
3.14 Ensure that all rehabilitation loans are made in compliance with the Subrecipient
Underwriting Guidelines attached hereto as Exhibit "C" and incorporated herein by
this reference.
3.15 Ensure that all work performed and the construction as completed is in conformance
with all state, federal, and local laws, ordinances, regulations and codes, including,
but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS)
as established by HUD. The Director shall assist MCDO in the same manner the
Director provides technical assistance to other developers during the construction
phase to ensure compliance with such requirements.
3.16 Ensure that the amount, not to exceed $15,000.00, and terms of each MCDO loan
shall be in accordance with the formula for determining amounts of Deferred
Payment Loans (Exhibit"D") and that the provisions of this Agreement are included
by reference in each mortgage or deed of trust.
3.17 Draw from the Revolving Loan Fund, sufficient funds to reimburse actual costs
incurred for the activities set out in Section 2.6.
3.18 Ensure that all revolving loans are secured by a first or second mortgage or deed of
trust in favor of the City of Omaha on the property upon which the revolving loan
funds are used.
3.19 Control the expenditure of dollars in direct loans, for rehabilitation projects which
have been approved by MCDO.
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3.20 Maintain fiscal integrity of the programs, which include all financial and narrative
reports required by the City of Omaha, and the U.S. Department of Housing and
Urban Development.
3.21 Assume responsibility for preparing or assisting in the collection of all reports and
other information required to make a decision relative to financing a client.
3.22 Assume responsibility for follow-up actions required for all clients receiving
assistance under this program.
3.23 Acquire bonding in the amount of$50,000.00 for MCDO, Board of Directors and
employees entrusted with the handling of funds pursuant to this Agreement.
3.24 Ensure that the CDBG Revolving Loan funds shall only be used to finance the
acquisition/rehabilitation of housing units to be initially owned and occupied by
households whose annual income is less than or equal to 80%of the"Median Income
by Family Size (MFI)".
The "Median Income by Family Size (MFI)" refers to specific income data as
published by HUD and as further updated and revised by HUD to reflect the current
or most recent income level statistics, a copy of the relevant portion of which is
included in the Exhibit "I" and incorporated herein by this reference.
•
3.25 Return to the City of Omaha any program income received within.thirty(30) days of
receipt.
3.26 Acquire only vacant, substandard or owner-occupied properties for the purpose of
rehabilitation and subsequent sale to qualified applicants.
3.26.1 The acquisition of properties shall be voluntary arm's length transactions
and, prior to making an offer to purchase a property,MCDO shall inform
the seller in writing:
a) That it does not have the power of Eminent Domain and, therefore,
will not acquire the property if negotiation fails to result in an
amicable agreement; and,
b) Of its estimate of the fair market value of the property. MCDO shall
maintain reasonable evidence in its project files of the basis for its
estimate of the fair market value.
3.26.2 In no event shall a tenant-occupant of a property be displaced, either
permanently or temporarily, from the property as a direct result of an
authorized project. A move following a notice to vacate the property and
a move resulting from an owner's refusal to renew an expiring lease is
considered as displacement caused by the MCDO.
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3.26.3 In the event MCDO displaces any tenant-occupant of a property, it shall
immediately notify the City in writing of the circumstances surrounding
said displacement. The Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended, shall govern any
displacement occurring as a result of an authorized project. In the event of
displacement, MCDO shall be responsible for the payment of all required
relocation assistance payments.
3.27 MCDO specifically hereby states,.agrees and certifies that it is familiar with the
limited purpose set forth in the Federal Laws,Rules and Regulations, and in the laws
of the State of Nebraska for which personal information requested may be used, and
that the information received will be used solely for those limited purposes and not
to harass, degrade or humiliate any person. The information released shall be used
for the limited purpose stated, and MCDO further agrees to indemnify and hold
harmless the City of Omaha for any liability arising out of the improper use by
MCDO of the information provided.
3.28 The MCDO agrees to use no lead based paint in the performance of this Agreement,
including the performance of any subcontractor. "Lead based paint" means any paint
containing more than six one-hundredths of one percentum of lead by weight
(calculated as lead metal) in the total nonvolatile content of the paint or the
equivalent measure of lead in the dried film of paint already applied. The Contractor
further agrees to abide by all Federal requirements regarding lead based paint poison
prevention.
3.29 The MCDO shall comply with all environmental requirements for review and impact
on the environment.
3.30 The MCDO shall, if applicable, complete a certified rehabilitation of the Subject
Property under the Historic Preservation Certification Program of the United States
Department of the Interior.
3.31 The MCDO shall, if applicable, obtain final certification from the National Park
Service verifying that the MCDO has complied with and met the "Secretary of
Interior's Standards for Rehabilitation".
3.32 The MCDO shall procure and maintain property insurance,contractors insurance and
secure Performance and Labor Material Bonds and/or Irrevocable Letters of Credit
as outlined in Sections 2.19.2 and 2.19.3 of this Agreement.
3.33 MCDO shall not begin rehabilitation of a Property until it has received approval by
the City that all provisions of the National Environmental Policy Act of 1969
(NEPA) and related authorities listed in HUD's implementing regulations at 24 CFR
Parts 50 and 58 have been met regarding said property.
- 13 - L
Section 4. Term
This Agreement shall be in full force and effect eighteen months from date of execution. The
Planning Director may extend the term of this Agreement an additional six months.
Section 5. Mutual Agreements
MCDO agrees and the City states, that the City:
5.1 Is not acting as the MCDO's architect or engineer.
5.2 Makes no warranties,express or implied, as to the rehabilitation work.
5.3 Owes no duty to the MCDO or any other person that shall arise because of any
inspection of the redevelopment site by the City's agents or employees.
5.4 May inspect the redevelopment site at any reasonable time, including a final
inspection to certify completion prior to disbursement of any funding.
5.5 Shall be held harmless by the MCDO for all injury and damages arising by virtue of
this Agreement.
Section 6. Provisions of the Agreement
6.1 Equal Employment Opportunity/Section 3 Clause. Attached hereto as Exhibits "J"
and "K", and made a part hereof by reference are the equal employment provisions
of this Agreement.
6.2 Non-Discrimination. The MCDO shall not in the performance of this Agreement,
discriminate or permit discrimination in violation of Federal or State laws or local
ordinances because of race, color, sex, age, political or religious opinions,
affiliations,national origin, familial status or handicap.
6.3 Captions. Captions used in this Agreement are for convenience and are not used in
the construction of this Agreement.
6.4 Applicable Law. Parties to this Agreement shall conform with all existing and
applicable city ordinances,resolutions, state laws, federal laws, and all existing and
applicable rules and regulations. Nebraska law will govern the terms and the
performance under this Agreement.
6.5 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter,no elected
official or any officer or employee of the City shall have a financial interest, direct,
or indirect,in any City Agreement. Any violation of this section with the knowledge
of the person or corporation contracting with the City shall render the Agreement
voidable by the Mayor or the City Counei17---
- 14 - f
6.6 Modification. This Agreement and any related documents securing the financing
contain the entire agreement of the parties. No representations were made or relied
upon by either party other than those that are expressly set forth herein. No agent,
employee or other representative of either party is empowered to alter any of the
terms herein unless done in writing and signed by an authorized officer of the
respective parties,pursuant to Section 10-142 of the Omaha Municipal Code.
6.7 Assignment. Minority Contractors Development Organization may assign its rights
or obligations under this Agreement to a limited partnership, so long as the Minority
Contractors Development Organization is and remains a general partner. Such
Assignment shall be similar in content to Exhibit L.
6.8 Strict Compliance. All provisions of this Agreement and each and every document
that shall be attached shall be strictly complied with as written, and no substitution
or change shall be made,except upon written direction from authorized officer of the
parties, pursuant to Section 10-142 of the Omaha Municipal Code.
6.9 Termination. This Agreement may be terminated by either party upon thirty (30)
days written notice to the other party. Said notice shall be given when received by
certified mail at the other party's usual place of business. Upon termination of this
Agreement, all funds and interest in any account hereunder become the property of
the City and shall be returned to the City of Omaha. This Agreement may also be
suspended or terminated in accordance with 24 CFR 85.43, Enforcement or 24 CFR
85.44,Termination for Convenience(Exhibit "M").
6.10 Subrecipients. MCDO shall comply with the requirements and standards of OMB
Circular No.A-122, "Cost Principles for the Non-Profit Organizations"(Exhibit "N")
and Attachments A,B,C,F,H,N,and 0, to OMB Circular No. A-110,as identified
in Exhibit "0".
6.11 Other Program Requirements. The Subrecipient shall be required to carry out each
activity of this Agreement in compliance with all Federal laws and regulations
described in Subpart K of the CDBG Program Entitlement Grant Regulations
Handbook 6500 (Exhibit "P").
•
6.12 Reversion of Assets. Upon the expiration of this Agreement, the Subrecipient shall
transfer to the City of Omaha any CDBG funds on hand at the time of expiration and
any accounts receivable attributable to the use of CDBG funds. Additionally, any
real property under the Subrecipient's control that was acquired or improved in whole
or in part with CDBG funds in excess of$25,000.00 shall be either:
a) Used to meet one of the national objectives in 24 CFR 570.208 until five years
after expiration of the Agreement,or such longer period of time as determined
appropriate by the Recipient; or,
b) Is disposed of in a manner which results in the Recipient being reimbursed in
the amount-of the current fair market value of the property-less any portion
thereof attributable to expenditures of non-CDBG funds for acquisition of, or
- 15 -
improvement to, the property. Such reimbursement is not required after the
period of time specified in accordance with (a) above.
6.13 Indemnification. MCDO shall indemnify and hold the City harmless from and
against: (1) any and all claims arising from contracts between MCDO and third
parties made to effectuate the purposes of this Agreement; and, (2) any and all
claims,liabilities or damages arising from the preparation or presentation of any of
the work covered by this Agreement.
6.14 Default. If, through any cause, MCDO shall fail to fulfill in a timely and proper
manner any obligations under this Agreement, or violate any of the covenants,
representations or agreements hereof,the City may upon written notice terminate this
Agreement or such parts thereof as to this Agreement, and may hold MCDO liable
for any damages caused to the City by reason of such default and termination.
6.15 Unenforceable Provisions. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction,be ineffective to the
extent of such prohibition of enforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision in any
other jurisdiction.
6.16 Nebraska Law. This Agreement shall be a contract made under and governed by the
laws of the State of Nebraska.
6.17 Disclosure of Lobbying. The Minority Contractors Development Organization shall
certify and disclose,to the best of its knowledge and belief, that:
a) No Federal appropriated funds have been paid or will be paid,by or on behalf
of the undersigned,to any person for influencing or attempting to influence an
officer or employee of Congress, or an employee of a Member of Congress in
connection with the awarding of any Federal contract, the making of any
Federal grant, the making of any Federal loan, the entering into of any
cooperative agreement, and the extension,continuation,renewal, amendment
or modification of any Federal contract, grant, loan or cooperative agreement.
b) If any funds other than Federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or
employee of any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection with this
Federal contract, grant, loan or cooperative agreement, the undersigned shall
complete and submit Standard Form-LLL, "Disclosure Form to Report
Lobbying", in accordance with its instructions.
c) The language of this certification be included in the award documents for all
subawards at all tiers (including subcontracts, subgrants, and contracts under
grants,loans and cooperative agreements)and that all subrecipients shall certify
and disclose accordingly. ---
- 16 -
Section 7. Authorized Representative
In further consideration of the mutual covenants herein contained,the parties hereto expressly
agree that for purposes of notice, including legal service of process, during the term of this
Agreement,and for the period of any applicable statute or limitations thereafter,the following named
individuals shall be authorized representatives of the parties:
(1) City of Omaha (2) Contractor:
Director Minority Contractors Development Organization
Planning Department Rev. Wilkinson M. Harper, President
Omaha/Douglas Civic Center 6102 North 56th Street, C-22
1819 Farnam Street Omaha, Nebraska 68104
Omaha, Nebraska 68183
IN WITNESS WHEREOF,the parties have executed this Agreement as of the date indicated
below:
ATTEST: CITY OF OM• :
rif dag„,"(///*
-1 #
CITY CLERK OF THE CITY OF OMAHA MAYOR •F THE CITY OF OMAHA
WITNESS:, MINORITY CONTRACTORS DEVELOPMENT
ORGANIZATION, A NEBRASKA NON-
PROFIT CORPORATION:
114i-ei *711 By: /
Rev. Wilkinson M. H er, si
4281 a-q) 0 1 9 q ��, � ?q, 117
Date Date
APPROVED AS TO FORM:
jZri'Et/ei4 /1)/.),l ci
CITY ATTORNEY DATE
P:\PLN3\7524.MAF
- 17 -
•
SCHEDULE OF EXHIBITS
Agreement
Exhibit Location Description
A 1.1 Article of Incorporation, Board Members and
Corporate Resolution
B 1.19 Definition-Program Income
C 2.2 , 3.14 Subrecipient Underwriting Guidelines
D 2.6.7.6, 2.15, 3.16 Deferred Payment Loan Determination Process
E 2.12, 3.6 Scope of Work
F 3.5, 3.2.3, 3.12 Affirmative Marketing Policy
G 3.9 OMB Circular No. A-133
H 3.11 Minority and Women Business Enterprise Plan
I 3.24 Median Income by Family Size
J 6.1 Equal Employment Opportunity Clause
K 6.1 Section 3 Clause
L 6.7 Assignment
M 6.9 Termination- CFR 85.43 - 85.44
N 6.10 OMB Circular No. A-122
O 6.10 OMB Circular No. A-110
P 6.11 Handbook 6500, Subpart K
Exhibits identified herein are made a part hereof by reference and are a part of the provisions of the
Agreement. Exhibits B, G, H, J,K, and M through P are on file in the Planning Department.
P:\PLN3\7524.MAF
- 18 -
•
STATE OF se,, ‘,..... NEBRASKA
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United States of America, ;�:' 16 Department of State
State of Nebraska Ss. Lincoln, Nebraska
I, Scott Moore, Secretary of State of Nebraska do hereby certify;
MINORITY CONTRACTORS DEVELOPMENT
ORGANIZATION (.MCDO)
was duly incorporated under the laws of this state on May 7, 1999.
and do further certify that no biennial fees assessed are unpaid and
no biennial reports arc delinquent; articles of dissolution have not
been filed and said corporation is in existence as of the date of this
certificate.
In Testimony Whereof, I have hereunto set my hand and
affixed the Great Seal of the State
of Nebraska on May 7, in the year
of our Lord, one thousand nine
hundred and ninety-nine.
�;.' : 0,,_.tt L S•7 ,f v , `:�
7 1112--
5. j.. �.i '•� - '. . , t a , °;;�:, SECRETARY OF STATE
4fTi.:4 . t4e.. 46, .st rm ., .. .,,g1 . 0 AI,
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!lIIlIlIIJJ III IIII IIIIIIIIIIIIIll IIIIl IlI III
.1000034092 I'9: 5
FIIt3ORi7Y CONIRRCIORS OEVELOIME
Filed 05/07/I999 09 56 AM
ARTICLES OF iNCORPORATION
OF
MINORITY CONTRACTORS DEVELOPMENT ORGANIZATION (MCDO)
Pursuant to the provisions of the Nebraska Nonprofit Corporation Act, the
undersigned natural persons of the age of eighteen or more, acting as incorporators, do .
hereby set forth:
ARTICLE I
Name
The name of the corporation is MINORITY CONTRACOTRS DEVELOPMENT
ORGANIZATION (MCDO)
ARTICLE II
Duration
The corporation shall have perpetual existence.
• ARTICLE III
•
Purposes
The corporation is organized as a public benefit corporation and shall be operated
exclusively as a nonprofit corporation for the following purposes:
(I) To promote and encourage the rehabilitation and maintenance of
•
substandard housing in economically depressed areas of the City of Omaha;
(2) To actively engage in the rehabilitation and maintenance of substandard •
housing in economically depressed areas of the City of Omaha;
(3) To participate in activities and other programs of public interest which
relate to the establishment and maintenance of desirable housing and neighborhood
rehabilitation and preservation; and
(4) Such other charitable, benevolent, eleemosynary, educational, civic,
religious and social activities as may be deemed appropriate by the Board of Directors.
The corporation shall have the power to hold property of any nature in trust for
itself or for the carrying out of any of its authorized purposes. -In furtherance of its
foregoing purposes, the corporation shall have all the powers given to and possessed by a
corporation under the Nebraska Nonprofit Corporation Act that arc not inconsistent with
such purposes, subject always, however, to the limitation that, notwithstanding any other
provision of these Articles, only such powers shall be exercised as may be exercised by
an organization such as this exempt under the United States Internal Revenue Code and
its regulations as they now exist or as they may hereafter be amended.
ARTICLE IV
Registered Office and Registered Agent •
The address of the corporation's registered office is C-22, 6102 N. 56th Street,
•Omaha, Nebraska 68104 and the name of its registered agent is Rev. Wilkinson M.
11arper.
ARTICLE V
Management of Affairs
The affairs of the corporation shall be managed in accordance with the By-laws by
a Board of Directors. The method of selection, the number of directors and the duration
of their terms shall be provided in the By-laws, provided that the number of directors
shall not be less than threc(3), The directors constituting the first Board of Directors arc
as follows:
Rev. Wilkinson M. Harper
• 6102 n. 5611r Street C-22
Omaha, NE 68104
J. C. Williams
4102 N. 60th Street
Omaha, NE 68104
Louis Wright
Omaha 100 Inc
2424 Cuming Street
Omaha, NE 68131
•
ARTICLE VI
•
By-Laws
The By-laws of the corporation shall be adopted by the Directors at any regular
meeting or at any special meeting called for that purpose so long as they are not
•
— _
•
inconsistent with the provisions of these Articles. The By-laws may be amended by the
Board of Directors in the manner provided in the I3y-laws.
ARTICLE VII
Membership; Capital Stock
•
The corporation shall have no members and the corporation shall not have nor
shall it issue any shares of stock in any form or denomination
ARTICLE VIII
Amendments
The corporation reserves the right to amend, alter or repeal any provision
contained in these Articles of Incorporation in the manner now or hereafter prescribed or
permitted by law.
ARTICLE IX
Liability of Members, Board of Directors, Officers, etc.
The private property of the incorporators and Directors of the corporation shall not
be subject to the debts or obligations of the corporation to any extent whatsoever.
ARTICLE X
•
The names and street addresses of each incorporator arc as follows:
•Rev. Wilkinson M. Harper
6102 N. 5611' Street C-22
Omaha, NE 68104
•
J.C. Williams
4102 N. 60ii' Street
Omaha, NE 68104
Louis Wright
Omaha 100 Inc
• 2424 Curving Street
Omaha, NE 68131
ARTICLE XI
Prohibitions; Dissolution
This corporation is organized cxclusivcly for charitable, religious, educational, and
scientific purposes, including, for such purposes, the making of distributions to
organizations that qualify as exempt organizations under Section 501 (c) (3) of the •
internal Revenue Code of 1954 (or the corresponding provision of any future United
States Internal Revenue Law). No part of the net earnings of the corporation shall inure
to the benefit of, or be distributable to its Directors, officers, or other private persons,
except that the corporation shall be authorized and empowered to pay reasonable
compensation for services rendered and to make payments and distributions in
furtherance of the purposes set forth in the preceding sentence hereof. No substantial part
of the activities of the corporation shall be the carrying on of propaganda, or otherwise
attempting to influence legislation, and the corporation shall not participate in, or
intervene in (including the publishing or distribution of statements) any political
campaign on behalf of any candidate for public office. Notwithstanding any other
provision of these Articles, the corporation shall not carry on activities not permitted to
be carried on (a) by a corporation exempt from Federal Income Tax under Section 501 (c)
(3) of the Internal Revenue Code of 1954 (or the corresponding provision of any future
United States Internal Revenue Law) or (b) by a corporation, contributions to which arc
deductible under Section 170 (c) (2) of the Internal Revenue Code of 1954 (or the
corresponding provisions of any future United States Internal Revenue Law).
In the event of the liquidation or dissolution of the Corporation, whether voluntary
or involuntary, no member shall be entitled to any distribution or distribution of its
remaining property or its proceeds. The balance of all money and other property which
the Corporation receives from any source, after the payment of all debts and obligations
of the Corporation, shall be used or distributed as provided by law, exclusively for
purposes within those set forth in and within the intendment of Section 501 (c) (3) of the
Internal Revenue Code and the regulations thereunder as the same now exist or as they
may hereafter be amended from time to time.
•
•
= 4
Datcd this 191h day of February; 1999, at Omaha, Nebraska.
.•
,70/el
•
Incorporator
Incorporator
4,Z
•
Incorporator
5
;••
MINORITY CONTRACTORS DEVELOPMENT ORGANIZATION (MCDO)
6102 NORTH 56th STREET C-22
OMAHA, NEBRASKA 68104
BOARD OF DIRECTORS
Wilkinson M. Harper President
Louis Wright Vice President
J.C. Williams Secretary-Treasurer
STAFF
Aljane Epps Director
MINORITY CONTRACTORS DEVELOPMENT ORGANIZATION (MCDO)
6102 NORTH 56th STREET C-22
OMAHA, NEBRASKA 68104
BOARD RESOLUTION
•
BE IT RESOLVED that the Rev. Wilkinson M. Harper, President
or Louis Wright, Vice President of Minority Contractors
Development Organization (MCDO) , a non-profit Corporation in
the State of Nebraska, is given authority to sign any and all
official documents, contracts, loan agreements, promissory notes,
mortgages, trust deeds, or other legal instruments necessary
to obtain financing for MCDO housing projects.
+
`V ,'al 1
J.C. Williams, Secretary-Treasurer Date
if
CDBG PROGRAM F1i
14 t C
SUBRECIPIENT UNDERWRITING GUIDELINES
CITY OF OMAHA DEFERRED PAYMENT LOANS
Effective Date: March 20, 1998
Revised: August 17, 1999
These Underwriting Guidelines provide a general overview of the City of Omaha requirements
applicable to Deferred Payment Loans for homes purchased through Subrecipients, including but -
not limited to, Holy Name Housing Corporation, South Omaha Affordable Housing Corporation,
Housing And Neighborhood Developers, Inc., Omaha 100, Inc., New Community Development
Corporation, Omaha Economic Development Corporation and Minority Contractors Development
Organization. While it is not possible to mention all requirements, these guidelines answer most
questions concerning the City's Deferred Payment Loans.
A. PURPOSE
The purpose of the Planning Department's Community Development Division is to promote
the growth, development and revitalization of the City of Omaha through the elimination of
slums and blight;to assist low and moderate income persons and families in attaining decent,
affordable housing; and to create job opportunities for lower income persons through
economic development activities.
This is accomplished by 1)formulating and implementing plans and programs designed to
revitalize neighborhoods,commercial areas, and industrial areas; upgrade the housing stock
in the inner-city; and create homeownership opportunities; 2) administering home
renovation, home construction, economic development, real estate development, and
revitalization programs and activities; and 3) providing services and improved service
facilities for housing counseling,home maintenance,homelessness,job training, education,
elderly persons, handicapped and other socio-economic assistance activities.
B. DEFINITIONS
In order to provide guidance and consistency in providing Deferred Payment Loans to
homebuyers,the following definitions shall apply:
1. Borrower - shall mean one or more persons purchasing a property and any other
persons co-signing on the promissory note.
2. Debt-to-Income Ratio (DIR) - shall mean the monthly total of all mortgage
payments, real estate taxes, special assessments, property insurance premiums and
liabilities (excluding utilities, federal income taxes, state income taxes and social
security payments)divided by the gross monthly income. The maximum DIR shall
be 42%.
Revised 8/17/99
CDBG
(1-D
In computing the DIR, installment debts extending ten months or more and all
revolving accounts shall be considered.
3. "Deferred Payment Loan Mortgage (DPL)" shall mean - a loan of CDBG funds, in
an amount not to exceed the amount approved by the City Council for a rehabilitated
and a newly constructed property, made subject to the terms, conditions and
provisions of the loan agreement under which said loan is made, secured by no less
than a second mortgage/deed of trust on an individual property, which shall provide,
inter-alia, that same shall become due and payable without interest upon the sale or
transfer of ownership of the property, or portion thereof, or interest therein by the
Owner within five(5)years from the date of loan closing for a rehabilitated property
and ten (10) years from the date of loan closing on a newly constructed property.
After 5 years on the rehabilitated properties and 10 years on newly constructed
properties, the Deferred Payment loan amount will depreciate 50% with the
remaining depreciated balance due upon sale or transfer of the property. Following
the initial depreciation, the Owner may choose to repay the 50%DPL balance over
a period of time. Upon written request by the Owner to repay the DPL balance, the
Planning Department will determine the terms and conditions of repayment.
4. Employment History-shall mean a verifiable and continuous two-year work history,
or a verifiable source of other income, including but limited to, social security,
pension, annuities, child support, alimony, etc. In some instances, education may be
substituted for employment if borrower has been employed at current job for six
months.
5. Household - shall mean all persons who will occupy the property. The occupants
may be a single family,one person living alone,two or more families living together,
or any other group of related or unrelated persons who share living arrangements and
includes:
a. any dependent child under the age of 19. If a child is claimed for income tax
(IRS)purposes,the City will consider the child a dependent.
b. any dependent member over the age of 62 who has lived in the household full
time for a minimum of 6 months immediately prior to application date and
will continue to live in the household full time, does not own other property,
and is dependent upon the borrower.
6. Housing-Income-Ratio(HIR)shall mean the monthly total of all mortgage payments,
real estate taxes, special assessments, and property insurance premiums divided by
the gross monthly income. The maximum HIR shall be 33% or the percentage
established by the lender providing the first mortgage financing.
7. Income - shall mean all actual or projected income derived from full, part-time
and/or seasonal employment, self-employment, overtime, bonuses, commission,
Revised 8/17/99
-2 - CDBG
• r • social security, pension, annuities, interest or dividends from investments, child
support, alimony, etc.
NOTE: Income Averaging is not acceptable.
8. Median Income - shall mean the Median Income by Family Size income data as
published by the United States Department of Housing and Urban Development and
as further updated and revised to reflect the current or most recent income level
statistics. A copy of the median incomes is available upon request at the City of
Omaha Planning Department.
9. Subrecipient - shall m azptlblic or private non-profit agency, authority or
organization receiving/I` BME Funds to undertake eligible activities.
(CT) /
10. Verifications- shall meanllsupporting documentation obtained within the past six
months for preliminary loan approval by the City. These documents include,but are
not limited to, employment, bank deposits, credit information, property title
commitments.
C. INTEREST OF THE CITY
Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or
employee of the City shall have a financial interest,direct or indirect,in any City Agreement.
Any violation of this section with the knowledge of the person or corporation contracting
with the City shall render the Agreement voidable by the Mayor or the City Council.
D. BANKRUPTCY
Borrowers who have filed a bankruptcy must have established a verifiable form of credit
over a six month period commencing after the Bankruptcy Court entered its Order of
Discharge. A copy of the bankruptcy document, Court Order of Discharge, and a detailed
letter explaining the reason for filing bankruptcy and the circumstances surrounding it must
be submitted with the initial application for preliminary loan approval by the City.
E. INSURANCE
The Borrower must have at least a hazard insurance policy in force for one year at the time
of loan closing. The policy must have a proper endorsement naming the City of Omaha as
an additional mortgagee. Proper mortgage endorsement is available at the City of Omaha
Planning Department.
F. SALE OF PROPERTY
In the event of sale of the property,the deferred payment loan must be repaid to the City of
Omaha as specified in the promissory note and Section B,Number 3 above.
Revised 8/17/99
- 3 - CDBG
f. • • •G. LOAN ASSUMPTION
Some Homeowners who have received financial assistance from the City of Omaha for a
Deferred Payment Loan to purchase their homes may, at some point, desire to transfer their
homes and have the loan assumed by a new buyer. The following criteria will apply when
a homeowner desires to sell his/her property and requests that the loan be assumed by a new
buyer:
1. The family who assumes a City of Omaha Deferred Payment Loan:
a. must be creditworthy; and,
b. must meet all underwriting criteria contained in these guidelines; and,
c. must agree to live in the house for the remaining term of the Deferred
Payment Loan.
2. the purchase price, including the downpayment,must be negotiated and agreed upon
between the buyer and seller.
3. The incomes of families assuming a DPL may not exceed the limits of the median
family income contained in the agreement under which the Seller's DPL was
approved.
4. The new buyer assuming a DPL must assume liability for the balance of the loan at
the time of loan closing.
5. When an Owner of a property with a DPL wishes to transfer his/her property through
an assumption, the Owner must:
a. Secure a potential borrower who is willing to assume the DPL.
b. Negotiate a selling(purchase)price with the potential buyer. The amount of
the downpayment would be paid to the Owner by the new buyer at the time
of loan closing. The City of Omaha will not negotiate with either party over
the amount of this repayment.
c. Write a letter to the Subrecipient requesting that an assessment be made of
the prospective borrower's qualifications to assume the DPL.
d. After this assessment is completed,the present Owner will be notified of the
prospective buyer's eligibility to assume the loan.
6. In the event of the death of an Owner, the heirs will have the same assumption
options as the Owner.
Revised 8/17/99
_4_ CDBG
• • H. CREDIT HISTORY
1. Judgments
Judgments must be paid or satisfied prior to loan approval.
2. Collection Accounts
Collection accounts should be paid or a repayment agreement must be in effect. If
a repayment agreement is in effect,the Borrower must have established a minimum
of six months payment history.
3. Divorce
In the case of a divorce, any debts remaining in both names originated prior to the
Court granting of a decree shall be considered a financial obligation against the
borrower.
4. Legal Separation
Borrower that is legally separated will be subjected to same underwriting criteria as
a married person;therefore, both signatures (husband and wife) shall be required on
the promissory note.
NON-DISCRIMINATION BASED ON HANDICAP
1. The Subrecipient shall not discriminate or permit discrimination in violation of
federal or state laws or local ordinances because of race, color, sex, age,political or
religious opinions, affiliations,national origin, familial status or handicap.
2. The Subrecipient shall not discriminate in admission or access to, or treatment or
employment in, its federally assisted programs and activities. To this end, no
otherwise qualified individual with a handicap shall, solely by reason of his or her
handicap, be excluded from participation in, or be denied the benefits of, or be
subjected to discrimination under this or any other City-sponsored program or
activity. The person responsible for coordinating the Planning Department's efforts
to comply with its non-discrimination policies is Marian Todd, Section 504
Coordinator, Planning Department, Suite 1111, 1819 Farnam Street, Omaha,
Nebraska, 68183, (402) 444-5217 (V/TDD) 444-5150)
Persons desiring to file a complaint with the City of Omaha concerning an allegation of
discrimination shall contact the Human Relations Department at (402) 444-5025 (B/TDD
444-5055).
P:\PLN3\9544.SKZ
Revised 8/17/99
- 5 - CDBG
Exhibit D
Minority Contractors Development Organization
Deferred Payment Loan Determination Process
The prospective home purchaser in the Minority Contractors Development Organization (MCDO)
home ownership program will proceed through the following loan approval process:
• Initial assessment by MCDO representative to insure that the client's intent is home
ownership. If so, the home ownership program is briefly described and an application
is completed.
• The completed application is reviewed for eligibility by the MCDO Housing Developer.
Employment history, income and level of debt are reviewed for initial eligibility.
Apparent application difficulties and strengths are reviewed. If no obvious
disqualifying issues are identified, the applicants are asked to obtain a credit report.
• The credit report is examined with the applicants. Any blemishes on the credit report are
discussed and a plan of action is implemented to clear credit problems . If no difficulties
are found, or when the problems are cleared up, the applicants are provided a list of
MCDO houses which the applicants would be qualified to purchase, based on the total
family income.
• When the applicants have selected a home they would like to purchase,they are referred
to Omaha 100, Inc. to complete the loan application process and secure permanent
mortgage financing.
• During the loan approval process, all income sources are identified and verified. The
Housing to Income Ratio can not exceed 33% and the Debt to Income Ratio can not
exceed 42% of the applicant's monthly income.
• When all conditions are met and first mortgage financing is tentatively approved, the
application is routed to the City Planning Department for a request for second mortgage
deferred payment loan (DPL)financing approval.
DPL Formula:
The DPL request is for an amount which will reduce the purchase price of the house to
an amount where the monthly housing payment of the first mortgage is less than or
equal to 33%of the applicant's income.
Under no circumstances does the DPL exceed $15,000.00 for a home
that was rehabilitated by MCDO.
SCOPE OF WORK E ' 1/; - ' T"
Minority Contractors Development Organization (MCDO)
Housing Acquisition/ Rehabilitation/ Sell Program
Th
e e Minority Contractors Development Organization
(MCDO) Housing
Acquisition/Rehabilitation/Sell Program will expand homeownership
opportunities for lower income families within a designated
target area North of Dodge Street & East of 60th Street. This
designated target area shall incorporate the following
neighborhoods, as outlined on page 32 and 33 of the City of
Omaha, Community Development, "catalogue of programs" dated
27 October 1995 :
•
Long School
Conestoga
O. I.C.
Binney/ Wirt/ Spencer
Neighborhood Action and Fact
E.R. Danner
Horace Mann
Bedford Place
Lake - Bristol Square
Highlanders
Prospect Hill
Orchard Hill
The MCDO will be responsible for implementing the following
activities associated with the acquisition, rehabilitation and
sale of the housing units:
1 . Locate and acquire approximately four (4 ) vacant housing,
units during the terms of the agreement.
2. Provide housing rehabilitation construction design and
construction monitoring services to rehabilitate approximately
four (4 ) housing units during the term of the agreement.
3 . Provide services to program applicants including, but not
limited to, affirmative marketing of units, processing and
screening of homebuyer applications, financial counseling, home
maintenance counseling, assistance in obtaining mortgage
financing, processing of City Deffered Payment Loan Applications,
referral to Omaha 100 or other loan processor, as appropriate,
and
4 . Provide counseling and guidance to assist applicants that
do not qualify for homeownership due to poor work or credit
history, high debt ratio, or insufficient income in becoming
eligible for future homeownership.
5. MCDO shall ensure that clients who do qualify for or are
refused mortgage financing assistance through Omaha 100, Inc. ,
are referred to Family Housing Advisory Services (FHAS) for
housing counseling services identical to that received by
qualified or approved clients referred to FHAS.
CITY OF OMAHA
4. 4� :io;+- `lF 1(
AFFIRMATIVE MARKETING POLICY
AND MONITORING PROCEDURES
Effective: October 1, 1999
Affirmative Marketing Policy
In furtherance of the City of Omaha's commitment to non-discrimination and equal opportunity
in housing, the City of Omaha establishes procedures to affirmatively market units constructed or
rehabilitated under any City-assisted program or project. These procedures are intended to
further the objectives of Title VIII of the Civil Rights Act of 1968 and Executive Order 11063.
It is the affirmative marketing goal of the City of Omaha to assure that individuals who normally
might not apply for vacant rehabilitated or constructed units because of their race or ethnicity:
• know about the vacancies
• feel welcome to apply
• have the opportunity to rent or purchase the units
This policy will be carried out through the following procedures.
1.. Informing the public, potential tenants and owners about Federal fair housing laws and
affirmative marketing policies
• The City of Omaha will inform the public, potential tenants, purchasers and owners
about its affirmative marketing policy, Title VIII and Executive Order 11063.
• The City will place public notices in the Omaha World Herald and the North
Omaha Star to inform owners of the program.
• City representatives will meet with property owners and assist them in preparing
program applications as requested and necessary
• Owners selected for a rehabilitation program shall notify in-place tenants in writing
of their involvement in the program and provide them with the following options:
1. Remain in the present unit during rehabilitation.
2. Move temporarily to another unit within the project while his/her unit is being
rehabilitated.
3. Permanently relocate or voluntarily abandon the unit during the rehabilitation.
• Owners shall post the HUD Equal Housing Opportunity Logo in the project
building and display the Fair Housing Poster in their rental office.
1
• Owners shall use media accessible to minorities when advertising the availability of
units.
• Owners shall use the Equal Housing Opportunity logo, slogan or statement in all
advertising.
• Owners shall maintain a non-discriminatory hiring policy.
• Owners shall adopt a fair housing policy.
2. Informing low and moderate income persons about available units
Property Owners having vacant units may call the Omaha Housing Authority (OHA) at
444-6900 and place units on OHA's "Available Unit" list. This list is distributed to
families who have received Certificates of Family Participation and are looking for units
to rent. The listing will remain on the "Available" list for 35 calendar days, then be
removed. If still vacant, the property may be relisted.
If the property is not listed with OHA when rehabilitated or constructed units are
available for initial occupancy, the owner shall inform the following outreach agencies
and/or other agencies of this fact in writing and submit a copy of the letters to the City of
Omaha, Planning Department, Housing and Community Development Division, Loan
Section, 1819 Farnam Street, Room 1111, Omaha, Nebraska, 68183.
Chicano Awareness, Inc.
4821 South 24th Street
Omaha, NE 68107
Family Housing Advisory Services
2416 Lake Street
Omaha, NE 681111
Urban League of Nebraska
3022 North 24th Street
Omaha, NE 68111
3. Recordkeeping
The Owner shall keep records of the following:
• Local media advertisements of the vacant unit
• Contact dates with outreach agencies and Omaha Housing Authority
• Correspondence informing outreach agencies of vacancies
• Race and gender data of occupants and persons inquiring about availability of units
• Tenant Survey forms, signed and dated by Owner
2 1.0
• Name and age of all household members
• Verified income for each household
• Copy of lease
• Determination of utilities
4. Assessment of Actions
The Owner's affirmative marketing efforts will be assessed by the City to:
• determine good faith efforts of Owners to affirmatively market vacant units to
individuals who normally might not apply; and,
• determine whether a sufficient number of racial and ethnic families have applied for
vacant units
The City will take corrective action if it is found that property owners are not carrying out
established procedures of the City's Affirmative Marketing Policy and Monitoring Procedures.
Affirmative Marketing Policy Monitoring Procedures
1. Duties and Responsibilities of the Owner
a) The Owner shall post the H.U.D. Equal Housing Opportunity Logo in the building
project and in the rental office.
b) The Owner shall submit to the City a copy of all letters notifying the outreach
agencies of vacancies. Outreach agencies may include, but are not limited to, the
following:
Omaha Housing Authority Chicano Awareness, Inc. •
540 South 27th Street 4821 South 24th Street
Omaha, NE 68105 Omaha, NE 68107
Urban League of Nebraska Family Housing Advisory Services
3022 North 24th Street 2416 Lake Street
Omaha, NE 68111 Omaha, NE 68111
Community Alliance Eastern Nebraska Human Services
4001 Leavenworth Street 900 South 74th Plaza, Suite 200
Omaha, NE 68105 Omaha NE 68114
Family Service Greater Omaha Community Action
2101 South 42nd Street 2406 Fowler Avenue
Omaha, NE 68105 Omaha, NE 68111
Family Service Greater Omaha Community Action
3
6720 North 30th Street 5211 South 31st Street
Omaha, NE 68112 Omaha, NE 68107
Family Service Housing &Neighborhood Developers
116 E. Mission Avenue 2319 Ogden Street
Bellevue, NE 68005 Omaha, NE 68110
Family Service So. Omaha Affordable Housing Corp.
2580 South 90th Street 1704 South 10th Street
Omaha, NE 68124 Omaha, NE 68108
Omaha Assn. for the Blind NE Commission for the Deaf
1024 South 32nd Street 1313 Farnam on the Mall
Omaha, NE 68105 Omaha, NE 68102
Paralyzed Vets of America Mayor's Commission for Citizens
7612 Maple Street with Disabilities
Omaha, NE 68134 1819 Farnam,Room 304
Omaha, NE 68183
Holy Name Housing Corp. League of Human Dignity
3014 North 45th Street 5513 Center Street
Omaha, NE 68104 Omaha, NE 68106
c) The Owner shall submit to the City a copy of all advertisements placed in the local
newspapers. All advertisements must include the Equal Housing Opportunity
Logo, Slogan or Statement.
d) The Owner shall submit to the City a Racial/Gender Form, attached as Exhibit 1,
which includes the name, racial/ethnic characteristics, income, family size and
gender for each person responding to the advertisement.
e) The Owner shall meet with each in-place tenant and all tenants of the occupied
vacant units and complete a Tenant Survey Form, a copy of which is attached and
marked Exhibit 2.
f) The Owner shall submit to the City the original Tenant Survey Form (signed and
dated by Owner) and retain a copy for proper recordkeeping.
4
g) The Owner shall provide each in-place tenant in the project with a copy of the City
of Omaha's written Tenant Assistance Policy (TAP) and shall advise said tenant(s)
of the impact of the project on him or her. The Owner shall provide the TAP to the
tenant immediately after submission of the owner's application for participation in
the City's program.
h) After completion of the project, the Owner shall submit a Tenant Survey Form for
each occupied unit.
i) Owner shall insure that the rents, including utilities and Median Family Income, are
consistent with the terms and conditions in the approved Agreement between the
Owner and the City of Omaha.
2. Duties and Responsibilities of the City
a) The City shall assess the affirmative marketing procedures to determine good faith
efforts of the Owner to affirmatively market the vacant units by monitoring the
Owner's performance in carrying out the Duties and Responsibilities of the Owner
as outlined in Section 1.
b) The City shall assess the affirmative marketing efforts of the Owner to deteiuiine
whether a sufficient number of racial and ethnic families have applied for vacant
units. This determination will be made by reviewing the information provided on
the Racial/Gender form and Tenant Survey Form to determine the proportion of
racial/gender participation versus overall participation.
c) The City shall take the following corrective action if it is found that the Owner is
not carrying out established procedures of affirmatively marketing units:
• Notify the Owner in writing of any violations of the Owner's Duties and
Responsibilities.
• The Owner will be given thirty (30) days upon receipt of written notification to
provide evidence of compliance. Upon the Owner's request, the City will
provide technical assistance.
• If the Owner fails to comply with the Affirmative Marketing Policy and
Monitoring Procedures, the City may declare the loan/grant in default.
5
EXHIBIT 1
CITY OF OMAHA
RACE/GENDER FORM
Loan No. Date No. of Vacant Units
Owner Project Address
Person Completing Persons Phone No.
This Report Home: Work:
Female
Race/Ethnicity Head of
Family Monthly of Head of Household
Applicant Size Income Household Yes/No
NOTE: This form is a list of everyone who inquired about renting the unit(s).
EXHIBIT 2
CITY OF OMAHA
TENANT SURVEY FORM
A. GENERAL INFORMATION RACE
Name Telephone
Address Apt. No.
DATE FIRST OCCUPIED UNIT:
Head of Household is: Male Female Elderly Handicapped
Number of Occupants: Total No. Adults No. Children Under 18
GROSS MONTHLY INCOME OF ALL HOUSEHOLD MEMBERS
Name of Household Member Age Monthly Gross Income
TOTAL GROSS MONTHLY INCOME
MEDIAN FAMILY INCOME PERCENT %
B. HOUSING CHARACTERISTICS
Monthly Housing Cost:
Monthly Contract Rent $
Average Monthly Utility Cost $
Monthly Housing Cost $
Subsidized Rent Assistance Received: Section 8 Other Assistance No Assistance
Unit Size: Efficiency 1 BR 2BR 3 BR Other
C. TENANT ASSISTANCE FOR IN-PLACE TENANT ONLY
Remain in Present Dwelling Move to Another Dwelling in Building
Rent Elsewhere Purchase Subsidized Housing None
D. REMARKS:
Owner Date
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Exhibit L
•
ASSIGNMENT
For One Dollar ($1.00) and other good and valuable consideration, Minority Contractors
Development Organization, a Nebraska Non-Profit Corporation, hereby assigns and transfers to
in which Minority
Contractors Development Organization is the sole general partner, all of Minority Development
Organization's rights and obligations in and under that Certain Agreement between Minority
Contractors Development Organization and the City of Omaha dated the day of
, 19_ (the "Agreement") for the acquisition/rehabilitation and the
marketing of approximately four residential units in an area north of Dodge Street and east of 60th
Street and the subsequent selling to homebuyers whose annual incomes are less than or equal to 80%
I of the Median Income by Family Size.
This Assignment is made pursuant to the provisions of Section 6.7 of the Agreement
approved by the City Council on , 19_,by Resolution No. ,whereby the
City of Omaha grants to Minority Contractors Development Organization authority to make this
Assignment.
By its signature affixed below, accepts the
foregoing Assignment and agrees to perform all the duties and obligations required of the Minority
Contractors Development Organization, as specified in the Agreement.
DATED this day of , 199_.
MINORITY CONTRACTORS DEVELOPMENT
• ORGANIZATION, a Nebraska Non-Profit Corporation
By:
Rev. Wilkinson M. Harper,President
ACCEPTED:
By:
a Nebraska Limited Partnership
By:
MINORITY CONTRACTORS DEVELOPMENT
ORGANIZATION, a Nebraska Non-Profit
Corporation
By:
Rev. Wilkinson M. Harper,President
P:\PLN3\7525.MAF
' . 0
STATE OF NEBRASKA )
) SS.
COUNTY OF DOUGLAS )
The foregoing Assignment was acknowledged before me this day of
19 , by Rev. Wilkinson M. Harper, President, Minority Contractors Development Organization, a
Nebraska Non-Profit Corporation, on behalf of the corporation.
Notary Public
STATE OF NEBRASKA )
) SS.
COUNTY OF DOUGLAS )
The foregoing Assignment was acknowledged before me this day of
19_, by Rev. Wilkinson M. Harper, President, Minority Contractors Development Organization,
General Partner, Limited Partnership,
on behalf of the corporation and the limited partnership.
Notary Public
P:\PLN3\7525.MAF
C-251.
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr November 23 19 99
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS,the City annually receives Community Development Block Grant Funds,
under Title I of the Housing and Community Development Act of 1974,as amended,for the purpose
of benefiting low and moderate income residents,eliminating slums and blight, and for other urgent
community development needs; and,
WHEREAS, the Omaha City Council, on December 16, 1997, by Resolution No.
3397, approved the 1998 Consolidated Submission for Community Planning and Development
Programs which included the Minority Contractors Development Organization(MCDO),a Nebraska
Non-profit Corporation, Revolving Loan Fund for the vacant, substandard houses program; and,
WHEREAS,the MCDO proposes to acquire,rehabilitate,and sell approximately four
houses during the term of the Agreement; and,
WHEREAS, the MCDO plans to provide mortgage financing to potential
homeowners in an area North of Dodge Street and East of 60th Street; and,
I .
WHEREAS, a determination has been made that this Revolving Loan Program
provides housing which benefits low and moderate income persons or addresses slums and blighted
conditions on a spot basis; and,
WHEREAS,it is in the best interests of the citizens of the City of Omaha to initiate
the acquisition of vacant,substandard single family houses;and the rehabilitation and market for sale
to qualified homebuyers in the Minority Contractors Development Organization Vacant,Substandard
Housing Target Area.
•
BY
Councilmember
•
Adopted
City Clerk
Approved
Mayor
c_25a CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr November 23 19 99
PAGE 2 •
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT,the attached Agreement,as recommended by the Mayor,between the City of
Omaha and the Minority Contractors Development Organization, a Nebraska Non-profit
Corporation,6102 North 56th Street,C-22, Omaha,Nebraska 68104,for a Revolving Loan Fund in
the total amount of$100,000.00 FY 98 CDBG Funds,for the acquisition,rehabilitation, and sale of
approximately four formerly vacant, substandard single family dwellings to households whose
annual income is less than or equal to 80% of the Median Income by Family Size in the Minority
Contractors Development Organization Vacant, Substandard Housing Target Area, an area north of
Dodge Street and east of 60th Street,is hereby approved. Funds in the amount of$100,000.00 shall
be paid from Community Development Block Grant Fund No. 193, Organization No. 8323.
P:\PLN3\7527.MAF APPROVED AS TO FORM:
-(4dislik /a f 7/*
ASSISTANT CITY ATTORNEY DATE
By9:124 C2 7\137441k.
Councilmember
Adopted .72..3..19'' 7 O
OF .60
ik..,„it.t*,11Clerkr
Mayor
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