RES 1998-1095 - Agmt with Holy Name Housing Corporation for construction of single family homes e LHA,N„ Rr- Planning DepartmentbA,A.4:,_fi Omaha/Douglas Civic Center
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City of Omaha
Hal Daub,Mayor April 28, 1998
Honorable President
and Members of the City Council,
The attached proposed Resolution authorizes the continuation of a Community Development Block
Grant(CDBG)Revolving Loan Fund Agreement for the Holy Name Housing Corporation(HNHC),
a Nebraska Non-profit Corporation, located at 3014 North 45th Street, Omaha, Nebraska 68104.
The Revolving Loan Fund will be used by HNHC to construct and sell six to eight new housing units
to low and moderate home buyers in the Kountze Park- Sacred Heart Infill Housing Target Area.
The Infill Housing Target Area is generally bounded by 16th Street on the east, 24th Street on the
west, Maple Street on the south, and Pratt Street on the north.
The proposed Agreement allocates$200,000.00 in FY98 CDBG program funds pursuant to the 1998
Consolidated Submission for Community Planning and Development Programs(Consolidated Plan),
approved by the City Council on December 16, 1997,by Resolution No. 3397.
The Holy Name Housing Corporation was designated as the project developer pursuant to the
Kountze Park- Sacred Heart Redevelopment Plan approved by the City Council on August 7, 1990.
As project developer, HNHC has constructed and sold 29 single-family homes in the Kountze Park-
Sacred Heart Infill Housing Target Area with ten units currently under construction.
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 compliance with the
Contract Compliance Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, •Referr o City C ncil for Co sideration:
74 7-yY 9F
Robert C. Peters, Acting Director Date Mayor's Office/Title Date
Planning Department
roved as to Funding: Approved: f
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Louis A. D Ercole, Director�f�(� Date George. Davis, Jr., Direct
Finance Department t''" - Human Relations Department
P:\PLN2\5076.MAF '
AGREEMENT
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal
Corporation in Douglas County, Nebraska (sometimes hereinafter referred to as "City"); and the
Holy Name Housing Corporation, a Nebraska non-profit corporation, 3014 North 45th Street,
Omaha,Nebraska 68104, (sometimes hereinafter referred to as "HNHC"); for the construction of
new single family houses in the Kountze Park- Sacred Heart Infill Housing Target Area.
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, a primary objective of the City of Omaha's Community Development Block
Grant Program is the development of viable urban communities with decent housing opportunities,
job opportunities, and a suitable living environment principally for persons of low and moderate
income; 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) onDecember 16 1997, C`�
r
by Resolution No. 3397, setting out the City's Community Development Block Grant Program for
1998; and,
WHEREAS,the HNHC Kountze-Park- Sacred Heart Infill Housing Program was included
in the FY98 Consolidated Plan and $200,000.00 was allocated to the program; and,
WHEREAS,the Kountze Park- Sacred Heart Infill Housing Target Area, an area in North
Omaha, defined by Pratt Street on the north, Maple Street on the south, 16th Street on the east, and
24th Street on the west, is a blighted and substandard area; and,
WHEREAS, Kountze Park - Sacred Heart Redevelopment Plan, approved by the City
Council on August 7, 1990, designated the Holy Name Housing Corporation, a non-profit
neighborhood based organization, as the developer responsible for the construction and sale of new
houses in the Redevelopment Area; and,
WHEREAS,the Redevelopment Plan calls for the acquisition of vacant lots and deteriorated
structures and the construction of new single family residential units; and,
WHEREAS,the Holy Name Housing Corporation proposes to construct and sell six to eight
new houses during the term of this Agreement; and,
WHEREAS,the Holy Name Housing Corporation plans to provide mortgage financing to
potential homeowners in the Target Area at an affordable rate; and,
WHEREAS, a determination has been made that this Infill Housing Program provides
housing which is determined to benefit low and moderate income persons; and,
WHEREAS, it is in the best interests of the citizens of the City of Omaha to initiate the
construction of six to eight single family dwelling units in the Kountze Park- Sacred Heart Infill
Housing Target Area. -
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NOW, THEREFORE, in consideration of these mutual covenants, the Holy Name Housing
Corporation and the City of Omaha do hereby agree as follows:
Section 1. Definitions -Abbreviations
The following terms shall have the following meaning for all purposes in this Agreement:
1.1 "City" shall mean -the City of Omaha, a Nebraska Municipal Corporation.
1.2 "Developer" shall mean - the Holy Name Housing Corporation, 3014 North 45th
Street, Omaha,Nebraska 68104.
1.3 "Director" shall mean-the Planning Director.
1.4 "HNHC" shall mean - the Holy Name Housing Corporation, a Nebraska nonprofit
corporation(see Exhibit A).
1.5 "Kountze Park - Sacred Heart Infill Housing Target Area" shall mean - vacant,
platted lots located in an area bounded by Pratt Street on the north; Maple Street on
the south, 16th Street on the east, and 24th Street on the west.
1.6 "Deferred Payment Loan (DPL)" shall mean- a loan of CDBG funds in an amount
not to exceed $30,000.00 for households whose annual income is at 80% or below
the Median Income for Family Size and $25,000.00 for households whose annual
income is greater than 80% and less than or equal to 120% of the Median Family
Income for Family Size for 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 10 years from the date of loan closing.
After 10 years, 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.
1.7 "Community Development Block Grant (CDBG)" shall mean - the program
conducted under the provisions of the Housing and Community Development Act of
1974,as amended(42 U.S.C. 5301 et. seq.), and the Code of Federal Regulations(24
CFR Part 570).
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1.8 "Subrecipient" shall mean - a public or private nonprofit agency, authority or
organization receiving CDBG funds to undertake eligible activities. In this
Agreement,the subrecipient is HNHC.
1.9 "Recipient" shall mean- the City of Omaha.
1.10 "Program Income" shall mean - gross income received by the Recipient or
Subrecipient directly 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).
1.11 "Construction Contract" shall mean - the ensuing contract for all work to be
performed upon the subject property,more specifically, scattered vacant lots within
the Kountze Park- Sacred Heart Infill Housing Target Area.
1.12 "Construction Work" shall mean-the work to be performed on scattered vacant lots
within Kountze Park - Sacred Heart Infill Housing Target Area and all work or
services provided for in professional services or construction contracts and as may
be required hereunder.
1.13 "CDBG Funds" shall mean - that portion of the Community Development Block
Grant awarded to the City as may be available to loan during program year 1998 for
professional services, Construction Work and Deferred Payment Loans involving the
property located in the Kountze Park-Sacred Heart Infill Housing Area as described
in Section 1.5 of this Agreement in an amount not to exceed$200,000.00, subject to
the terms, conditions and requirements of said Grant.
1.14 "Progress Payment" shall mean -that portion of the total construction contract paid
in one or more disbursements, based upon the value of the construction,
administrative or professional services work completed at the time the payment
request is made.
Section 2. Duties and Conditions of City Financing
2.1 The City shall convey by Warranty Deed platted vacant lots within the Kountze
Park- Sacred Heart Infill Housing Target Area to HNHC for the sum of One Dollar
($1.00) and other valuable consideration. The vacant lots within the Target Area
shall be conveyed free of any and all encumbrances. The number of vacant lots
conveyed to HNHC shall be sufficient in number to enable the construction of
approximately ten single family houses.
2.2 Subject to and conditioned upon actual receipt of same, the City agrees to make
available to HNHC $200,000.00 in CDBG Funds received for use in the 1998
program year, as hereinabove described and defined. Funding shall be subject to the
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terms and conditions specified and contained in this Agreement. Further, funding
shall be used only for the following purposes:
2.2.1 Any financing, legal, accounting or architectural costs associated with the
construction of properties in the Target Area.
2.2.2 Costs associated with the construction of properties located in the Target
Area.
2.2.3 Acquisition costs for materials which will be used in the construction of
properties located in the Target Area.
2.2.4 Costs incurred for labor associated with the construction of properties located
in the Target Area.
2.2.5 Costs associated with utility hookups and site preparation of the properties
being constructed in the Target Area.
2.2.6 Any demolition costs associated with the construction of the properties in
the Target Area.
2.2.7 Partial construction financing for each single family house at no interest as
follows:
A. In the case of a newly constructed property,such construction financing
shall be made to HNHC without interest in an amount not to exceed
$30,000.00 for households whose annual income is at 80%or below the
Median Income for Family Size and$25,000.00 for households whose
annual income is greater than 80% and less than or equal to 120% of
the Median Family Income for Family Size per unit. Such loans shall
be secured by no less than a second mortgage or deed of trust to the
City of Omaha and shall become due and payable to the City at the loan
closing from the sale proceeds as each individual house is sold.
B. At the closing of a loan for each sale of a house,the City shall release
its mortgage or provide a deed of reconveyance for its deed of trust for
such property.
2.2.8 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 a second mortgage or deed of trust on individual properties and shall not
exceed$30,000.00 for households whose annual income is at 80% or below
the Median Income for Family Size and $25,000.00 for households whose
annual income is greater than 80% and less than or equal to 120% of the
Median Family Income for Family Size for a newly constructed property
(Exhibit C).
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2.2.9 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 HNHC as
soon as reasonably possible. At this time, the responsibilities of the HNHC
under Section 3 of this Agreement shall be released,the provisions of Section
5.6 will be exercised and the Agreement will be terminated.
2.2.10 Funds paying for contractual work shall be payable in consideration with the
construction progress payment schedule, in accordance with the Director's
prior approval.
2.3 The City shall review and approve all plans for public improvements,site preparation
and house construction and perform interim and final inspections on each
construction phase or completed residential unit.
2.4 The City shall review and monitor the quarterly reports that identify the
progress/accomplishments of the HNHC,on the activities included in this Agreement
and on contracts entered into with third parties pursuant thereto.
2.5 After completion of construction,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).
2.6 In no event shall the City assume any obligation to make any or all of the above-
referred funding available,nor shall the City incur any liability hereunder,unless and
until the HNHC has submitted for and received the approval of the Director of all of
the following:
a. evidence that owner funding is available as required by Section 3.8 herein;
and,
b. duly executed contracts for construction work; and,
c. Lien waivers from the General Contractor, its subcontractors and suppliers.
2.7 In no event shall the City assume any obligation to make or continue to make any or
all of the above-referenced funding available, nor shall the City incur any liability
hereunder,unless and until HNHC has timely and fully completed with its duties and
obligations arising hereunder.
2.8 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
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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.
Further, any such administrative, acquisition and construction progress payments or
sources of construction and permanent financing shall be made from, and be
attributable to, each funding source in proportion to the approximate percentage that
same bears to the total amount of funding hereunder, which, for the purpose of this
section, are hereby established in Exhibit D of this Agreement. Progress payments
for development fees shall be pro-rated based upon the percentage of site preparation
and public improvements completed and the number of completed single family
residential units.
2.9 The City agrees to provide HNHC funds, as described in Sections 2.2 and 2.3 herein,
to carry out the services described herein for a period of thirty-six (36)months from
the time of favorable consideration by the City Council.
2.10 In consideration of the program services herein provided, the City agrees to pay
HNHC the sum of$200,000.00, conditioned upon actual receipt of same, for the
HNHC Housing Revolving Loan fund from Community Development Block Grant,
Fund 193, Organization Number 8320, HNHC Kountze Park-Sacred Heart Infill
Housing.
2.11 In the case of a foreclosure or upon receipt of a Deed in Lieu of Foreclosure, on a
home constructed by HNHC, HNHC may buy out the first mortgage and repay the
City's Deferred Payment Loan. Upon repayment of the Deferred Payment Loan, the
City may provide a deferred payment loan to a subsequent purchaser in an amount
not to exceed that which is authorized by the Agreement in place at the time the
subsequent purchaser receives preliminary loan approval by the City.
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2.12 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.
Section 3. Duties and Responsibilities of Holy Name Housing Corporation
3.1 The HNHC agrees to develop platted vacant lots in the Kountze Park- Sacred Heart
Infill Housing Target Area in conformance with the Kountze Park - Sacred Heart
Infill Housing Redevelopment Plan approved by the City Council on August 7, 1990.
3.2 HNHC shall be responsible for the security and maintenance of Redevelopment Sites
upon receipt of the Warranty Deed from the City.
3.3 HNHC shall contract for architectural and engineering services for the preparation
of all design and construction documents, cost estimates, and construction
supervision necessary for the construction of new single family houses in the
Kountze Park - Sacred Heart Redevelopment Site. As specified in Section 2.2.1,
HNHC shall obtain the approval of the Director for all contracts, plans, and plats
pursuant to this Section.
3.4 HNHC shall contract for and complete site preparation and construction of public
improvements as specified in Section 2.2.5. HNHC shall obtain the approval of the
Director for all construction contracts,prior to the start of such contracts.
3.5 Upon a date agreeable to HNHC and the Planning Director, HNHC shall begin
construction of no fewer than two single family detached houses to be used as model
houses or houses available for sale. Construction plans and locations for such houses
shall be approved by the Planning Director. The construction of such houses shall
be eligible for the partial construction financing as outlined in Section 2.2.
3.6 HNHC shall construct at least one additional housing unit for each housing unit
sold, subject to the limitations on outstanding City construction funding set
forth in Section 2.2.2. HNHC shall make best efforts to construct and sell six
to eight single family housing units over a three-year period in conformance
with the Development Schedule described in Exhibit D.
3.7 The HNHC shall secure private funds as described in Exhibit D. The HNHC shall
certify the availability of these funds to the Director in a manner designed by him.
3.8 The HNHC does hereby certify contract and agree that any and all funding obtained
by it or made available to it hereunder, shall be used solely and exclusively for the
express purpose of developing the Kountze Park- Sacred Heart Infill Housing Target
Area in strict compliance with this Agreement and the construction contracts as
approved, as well as the drawings and other specifications as approved.
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3.9 The HNHC shall submit to the Director, for his review and approval, all working
drawings,plans and specifications necessary or incidental to this project. In addition,
the HNHC shall submit duly authorized construction contracts for the Director's
review and approval. The Director reserves the right to reject,modify or amend any
or all of the foregoing. Upon approval,no changes or amendments may be made to
any of the foregoing without the written approval of the Director. In no event shall
the City become obligated to make any payments or release loan proceeds for any
work performed,materials furnished, expenses incurred, or any other expenditure of
whatsoever kind or nature unless same was expressly included in one or more of the
above-mentioned documents as approved.
3.10 The HNHC shall not commence any work hereunder until such time as it has
received a written notice to proceed as issued by the Director. Any work performed
prior to the issuance of such notice shall be the sole responsibility of the HNHC.
3.11 The HNHC 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 (1) per centum 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 HNHC
further agrees to abide by all Federal requirements regarding lead-based paint poison
prevention.
3.12 The HNHC agrees that the CDBG Revolving Loan funds shall only be used to
finance the construction of housing units to be initially owned and occupied by
households meeting the following "Median Income by Family (MFI)" criteria:
A. Five to seven of the households which initially own and occupy completed
properties under the terms of this Agreement must be low income households
whose annual income is less than or equal to 80% of the MFI.
B. One of the households which initially own and occupy completed properties
under the terms of this Agreement may be households whose annual income is
in excess of 80% of the MFI, but is less than or equal to 120% of the 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 Exhibit E and incorporated herein by this reference.
3.13 Until the loan closing for each sold house, the HNHC shall maintain the property at
all times in a safe and sanitary condition. Upon sale of a house, HNHC shall have
no further responsibility for such housing unit and real estate lot. The HNHC will
also maintain the property in a safe and sanitary condition to the extent reasonably
possible during the construction phase of the project.
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3.14 The HNHC shall 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 HNHC, in
the same manner the Director provides technical assistance to other developers,
during the construction phase to ensure compliance with such requirements.
3.15 The HNHC shall obtain a certificate from each contractor or subcontractor to be used
on this project to the effect that such contractor or subcontractor has not been
disbarred or disqualified by the U.S. Department of Housing and Urban
Development. The Director shall approve all contractors and subcontractors prior to
being hired by HNHC.
3.16 The HNHC and the first mortgage or deed of trust lending institution, shall ensure
that property insurance, all taxes,regular and special, are to be paid up-to-date as of
the scheduled time for loan closing(s).
3.17 HNHC shall submit to the Director, for his review and approval, a minority and
women business participation plan which discusses economic development and
employment opportunities. The HNHC shall make best efforts to ensure that
construction services, contracts and employment opportunities are affirmatively
marketed to women and members of minority groups.
3.18 The HNHC shall employ affirmative marketing procedures in the advertising and
marketing of completed residential units. In marketing, the HNHC shall also
conform to the nondiscrimination provisions as hereinafter set forth. Any such
advertisements shall receive the approval of the Director prior to their release.
3.19 The HNHC shall 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 representatives of the
City of Omaha,as approved by the Planning Director,shall have access to any books,
documents,papers,records and accounts of the HNHC, Contractor or Subcontractor
which are directly 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 HNHC with any Contractor or Subcontractor shall include this Section
to ensure said access.
3.20 HNHC shall submit a monthly progress report to the City of Omaha, Director of
Planning. The progress report will delineate HNHC, staff accomplishments for the
previous 30 day period.
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3.21 HNHC shall submit a monthly financial report (income statement) delineating the
revenue and line item expenditures for the development of the Kountze Park- Sacred
Heart Infill Housing Redevelopment Site. In addition, a monthly check register is
to be submitted reflecting payee, date, amount and check number.
3.22 HNHC shall 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 funds 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 year. OMB
Circular A-133 is attached as Exhibit F.
3.23 HNHC shall ensure that the residential development conforms to City housing and
zoning ordinances. HNHC shall carry out all construction in an efficient manner.
3.24 HNHC shall make best efforts to secure favorable mortgage or deed of trust financing
for eligible home buyers.
3.25 HNHC 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 HNHC further agrees to indemnify and hold
harmless the City of Omaha for any liability arising out of the improper use of the
information provided.
3.26 HNHC shall assist first mortgage or deed of trust lenders to ensure that all loans are
made in compliance with first mortgage or deed of trust lending institutions policies
and underwriting standards similar in content to the HNHC Loan Policies and
Underwriting Standards attached hereto as Exhibit G and made a part hereof by
reference.
3.27 HNHC shall 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.
3.28 HNHC shall assume responsibility for assisting the first mortgage lending institution
in the collection of all reports and other information required to make a decision
relative to financing a client.
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3.29 HNHC shall acquire bonding for the benefit of the City of Omaha in the amount of
$50,000.00 for the HNHC, Board of Directors and employees entrusted with the
handling of funds pursuant to this Agreement.
3.30 HNHC shall ensure that any Program Income received will be returned to the City
of Omaha within thirty (30) days of receipt. In the event the City shall cease to fund
the redevelopment of the Kountze Park - Sacred Heart Infill Housing Program,
HNHC shall have no further responsibility under the terms of the Agreement except
to return unsold lots and any unobligated CDBG funds, if any, provided to HNHC
under this Agreement, all as provided in Section 5.6 herein.
Section 4. Terms of the Agreement
This Agreement shall be effective for a period of thirty-six (36) months from the time of
favorable consideration by the City Council.
Section 5. Mutual Agreements
HNHC agrees and the City states,that the City:
5.1 Is not acting as the HNHC's architect or engineer.
5.2 Makes no warranties, express or implied, as to the construction work.
5.3 Owes no duty to the HNHC 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 HNHC for all injury and damages arising by virtue of
this Agreement.
5.6 Will be deeded any unused lots and/or parcels of land which have not been utilized,
through the performance of this Agreement,upon the date the parties reach a mutual
decision to terminate this Agreement before full development of the project or upon
the expiration date of this Agreement as described in Section 4, whichever date or
event first occurs.
Section 6. Provisions of the Agreement
6.1 Equal Employment Opportunity/Affirmative Action Plan. Attached hereto as Exhibit
H and Exhibit I and made a part hereof by reference are the equal employment
provisions of this Agreement.
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6.2 Non-discrimination. The HNHC shall not, in the performance of this contract,
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 contract are for convenience and are not used in the
construction of this contract.
6.4 Applicable Law. Parties to this contract 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 contract.
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 contract. A violation of this Section with the knowledge of
the person or corporation contracting with the City shall render the contract voidable
by the Mayor or the City Council.
6.6 Merger. This Agreement shall not be merged into any other oral or written
Agreement, lease or deed of any type.
6.7 Modification. This Agreement contains 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.
6.8 Assignment. HNHC may not assign its rights under this Agreement without the
express prior written consent of the City; except,that the Mayor may, without City
Council approval,approve,in writing,the assignment to a limited partnership so long
as the HNHC is and remains a general partner.
6.9 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
representatives of the parties, pursuant to Section 10-142 of the Omaha Municipal
Code.
6.10 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
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suspended or terminated in accordance with 24 CFR 85.43, Enforcement or
24 CFR 85.44, Termination for Convenience (Exhibit J).
6.11 Subrecipients. HNHC shall comply with the requirements and standards of OMB
Circular No. A-122, "Cost Principles for the Non-Profit Organizations" (Exhibit K)
and Attachments A, B, C, F, H,N and 0 to OMB Circular No. A-110 as identified
in Exhibit L.
6.12 Other Program Requirements. The HNHC 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 M).
6.13 Reversion of Assets. Upon the expiration of this Agreement, the HNHC shall.
transfer to the City of Omaha any CDBG funds on hand at the time of expiration and
not required for the purpose of this Agreement.
6.14 HNHC shall indemnify and hold the City harmless from and against: (1)any and all
claims arising from contracts between HNHC 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.
6.15 If through any cause, HNHC 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 HNHC liable for any damages
caused to the City by reason of such default and termination.
6.16 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.
6.17 This Agreement shall be a contract made under and governed by the laws of the State
of Nebraska.
6.18 Disclosure of Lobbying. HNHC 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 HNHC,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.
- 14 -
> T'
(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 HNHC 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.
Section 7. Authorized Representative
In further consideration of the mutual covenants herein contained,the parties hereto expressly
agree that for the purpose of notice, including legal service of process, during the term of this
Agreement and for the period of any applicable statute of limitations thereafter,the following named
individuals shall be authorized representatives of the parties:
(1) City of Omaha: (2) Developer:
Director, Planning Department Holy Name Housing Corporation
Omaha/Douglas Civic Center Sr. Marilyn Ross, Executive Director
1819 Farnam Street 3014 North 45th Street
Omaha,Nebraska 68183 Omaha,Nebraska 68104
IN WITNESS WHEREOF,the parties have executed this Agreement as of the date indicated
below:
•
ATTEST: "CITY , unicipa) Corporation
,/��
it y erk of the Cityof Omaha Date M or of the Cityof Omaha Da e
WITNESS: HOLY NAME HOUSING CORPORATION,
A Nebraska Non-profit Corporation
a-C-7AL- c//b ? By: _ °S1/f
ate Sr. MarilY oss Exec. Director Date
P:\PLN2\5078.MAF APPRO ,ED AS TO ORM:
•d /6).24)
Assistant City Attorney Date
- 15 - 2 \
\./
SCHEDULE OF EXHIBITS
Agreement
Exhibit Location Description
A 1.4 HNHC Articles of Incorporation, Corporate
Resolution and List of Board Members
B 1.10 Definition- Program Income
C 2.2.8 Deferred Payment Loan Determination Process
D 2.8, 3.6, 3.7 Project Pro-Forma and Development Schedule
E 3.12 Median Income by Family Size
F 3.22 OMB Circular No. A-133
G 3.26 HNHC Underwriting Guidelines
H 6.1 Equal Employment Opportunity Clause
I 6.1 Affirmative Action Plan
J 6.10 Termination- CFR 85.43 and CFR 85.44
K 6.11 OMB Circular No. A-122
L 6.11 OMB Circular A-110
M 6.12 Other Program Requirements - 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, F, and H through M are on file in the Planning Department.
P:\PLN2\5078.MAF
0,�
ARTICLES OF INCORPORATION
OF
HOLY NAME HOUSING CORPORATION
Pursuant to the provisions of the Nebraska Nonprofit
Corporation Act, the undersigned natural persons of the age of
eighteen years or more, acting as incorporators, do. hereby set
forth:
ARTICLE I
Name
The name of the corporation is Holy Name Housing
Corporation.
• MAR () 'l 1927
• ARTICLE II R.' ---
STATE OF NELIal,.SKA SS
Duration :ic.Cirif-.'TfaR`i'S OFFICE
• Fi1 •land recwded c:n film roll
The corporation shall have perpetual existe Le-- page � k �C'
•
ARTICLE III ey J�^ • - ---
1 l I ( ,) Secretary of
Purposes
The corporation is organized and shall be operated
exclusively as a nonprofit corporation for the, following pur-
poses : •
( 1 ) 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 are not inconsistent with such purposes , subject always ,
however, to the,limitation that, notwithstanding any other
J l
•
provision of these Articles , only such powers shall be exercised
as may be exercised by an organization exempt under Section
501 (c ) (3 ) of the 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
3014 North 45th Street, Omaha, Nebraska 68104, and the name of
its registered agent at such office is Rev. Gerald Mullin, C. S . s .R.
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 as provided in the By-laws , provided that the
number of directors shall not be less than three (3 ) . The
directors constituting the first Board of Directors are as
follows :
•
1. Rev. Gerald Mullin, C . S . s .R.
3014 North 45th Street
Omaha, Nebraska 68104•
2 . Rev. Donald Neureuther, C.S . s .R. •
30.14 North 45th Street
Omaha, Nebraska 68104
3 . Edward Vaughan
2711 North 48th Avenue
Omaha, Nebraska 68104
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
By-laws .
ARTICLE VII
Membership; Capital Stock
The corporation shall have no members and the corpora-
tion 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 hereinafter 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 obliga-
tions of the corporation to any extent whatsoever.
ARTICLE X
Prohibitions ; Dissolution •
This corporation is organized exclusively for chari-
table, religious, educational, and scientific purposes , includ-
ing, for such purposes , the making of distributions to organiza-
tions 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 Sates 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 corpora-
tion 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 are deductible under Section
1'70 (c) (2 ) of the Internal Revenue Code of 1954 (or the correspond-
ing provisions of any future United States Internal Revenue
•
Law ) .
Notwithstanding anything herein to the contrary upon
the dissolution of the corporation, the Board of Directors
shall , after paying or making provision for the payment of all
of the liabilities of the corporation, dispose of all of the
assets of the corporation in such manner, or to such organiza-
I'AD•
•
•
• tion or organizations organized and operated. exclusively for
ctiarltable , educational , religious or scientific purposes as
shall at the time qualify as an exempt organization or organiza-
tions under section 501 ( c ) ( 3 ) of the Internal Revenue Code Of
1954 ( or the corresponding provision of any future ' United States •
internal Revenue Law) , as the Board of Directors shall- deter-
mine . Any such assets not so disposed of shall be disposed of
by the District Court of the county in which the principai_.
office of the corporation is then located, exclusively for such
purposes or to such organizations , as said Court shall dete_-
mine , which are organized and operated exclusively for such
purposes .
ARTICLE XI
The name and street address of each incorporator is as
follows :
Rev . Gerald Mullin, C . S . s . R. •
3014 North 45th Street
Omaha , Nebraska 66104 •
Rev . Doriald • Neureuther, C. S . s . R.
3014 North 15th Str==-'-
Omaha,, Nebraska 68104
DATED this 3rd day of March, 1982 .
• tidir A./ (1 •/".
Incorporator ) •
•
l,•i t4(49 1 j1.C'1it1127, . C. 0 , S. r
Incorporator
•
•
•
•
i 1
1111
RESTATED
BY-LAWS
HOLY NAME HOUSING CORPORATION
ARTICLE I CORPORATE AFFAIRS
1 . 1 . The affairs of the corporation shall be conducted
strictly in accordance with and furtherance of the
Corporation' s charitable and educational purposes as
set forth in the Articles of Incorporation, and all
provisions of these By-laws shall be construed in a
manner consistent with the furtherance of such
purposes.
ARTICLE II BOARD OF DIRECTORS
2. 1 . Purpose and Duties. The purpose of the Board of
Directors is to assure that the philosophy and
mission of Holy Name Housing Corporation is in
agreement with the philosophy and mission of the
Redemptorist Fathers, St. Louis Province, Inc.
The duties of the Board of Directors shall be:
a. to appoint or remove the Executive Director an
d
Director of Rehabilitation;
b. to approve any amendment of the Articles or
By-laws of the Corporation;
c. to review and approve the annual operating budget
of Holy Name Housing Corporation;
d. to approve any dissolution, consolidation, or
merger of the Corporation and to approve the
incorporation of affiliated corporations of this
Corporation.
2. 2. Membership. The members of the Board of Directors
shall, at all times, be the three (3) persons who
hold the offices of Rector and Consultors of the
Redemptorist Fathers of Nebraska. When any
Redemptorist shall cease to be the Rector or
Consultor of the Redemptorist Fathers of Nebraska, he
shall cease to be a director of this Corporation,
automatically and without any affirmative action on
the part of the Corporation, and his replacement as
Rector or Consultor of the. Redemptorist Fathers of
Nebraska shall automatically become a director of
this corporation.
2. 3. Compensation. Directors shall serve without
compensation.
2. 4. Meetings. Regular meetings of the Board of Directors
shall be held annually on April 15 of each year.
Special meetings shall be called from time to time
when requested by two ( 2) directors.
2.5. Notice. Reasonable notice of all Directors ' meetings
shall be given. A majority of Directors present shall
constitute a quorum for the transaction of business.
•
ARTICLE III BOARD OF CONSULTORS
3.1 . Purpose and Duties. The purpose of the Board of
Consultors is to assure that the philosophy, goals
and purpose of Holy Name Housing Corporation are
preserved.
The duties of the Board of Consultors shall be:
a. to participate in an advisory capacity in the
ongoing long range planning process of the Holy Name
Housing Corporation;
b. to make recommendations to the Executive Director
regarding organizational development, fund-raising,
financial management, and relationships with other
agencies, institutions and individuals;
c. to make recommendations, in an advisory capacity,
regarding provision, maintenance and expansion of
housing services.
3.2. Membership. Membership of the Board of Consultors
shall be comprised of the Executive Director of Holy
Name Housing Corporation and such persons as he
appoints, including, by way of example only,
representatives of the Holy Name neighborhood,
representatives of organizations which fund Holy Name
Housing Corporation, representatives of the business
and professional sector of this community, and
representatives of community organizations.
3.3. Compensation. Consultors shall serve without
compensation.
3. 4. Terms. Members of the Board of Consultors shall
serve at the will of the Executive Director for such
time as he may specify.
3.5. Officers and Duties. Such officers as the Executive
Director determines are necessary shall be elected by
the Holy Name Housing Board of Consultors from time
to time and shall perform such duties and have such
responsibilities as the Executive Director shall
determine.
ARTICLE IV EXECUTIVE DIRECTOR
4. 1 . Appointment. The Executive Director shall be
appointed by, accountable to, and shall serve at the
will of the Board of Directors.
4.2. Duties. The duties of the Executive Director of Holy
Name Housing Corporation are:
•
a. to direct the activities of Holy Name Housing
Corporation in accordance with the Corporation' s
Articles of Incorporation and By-laws;
b. to provide leadership in the governance and
management of Holy Name Housing Corporation;
c. to achieve the objectives and discharge the
responsibilities established by the Board of
Directors;
d. to plan, direct, control and evaluate all
day-to-day corporate activities.
4.3. Compensation. The compensation of the Executive
Director shall be established by the Board of
Directors from time to time.
ARTICLE V DIRECTOR OF REHABILITATION
5. 1 . Appointment. The Director of Rehabilitation shall be
appointed and serve at the will of the Board of
Directors and shall be accountable to the Executive
Director.
5.2. Duties. The duties of the Director of Rehabilitation
of Holy Name Housing Corporation are:
a. to assist the Executive Director and to oversee
all phases of rehabilitation;
b. to evaluate the effectiveness and performance of
members of the work crews;
c. to undertake and perform such other duties as the
Executive Director may determine.
5.3. Compensation. The compensation of the Director of
Rehabilitation shall be established by the Board of
Directors from time to time.
ARTICLE VI CORPORATE SEAL
6 . 1 . The Corporation shall not have a corporate seal.
ARTICLE VII FISCAL YEAR
7 . 1 . The fiscal year of the Corporation shall commence on
the first day of April and end on the thirty-first
day of March.
ARTICLE VIII AMENDMENTS
•
8.1 . These By-laws may be repealed, altered or amended by
majority vote of the Board of Directors at any
regular meeting or any special meeting held for that
• purpose.
The undersigned hereby certify that the foregoing
By-laws were duly adopted by the Board of Directors
effective May 1 , 1986.
Don R. Neureuther, C.SS.R
Edward R. Vaughan
Marily F. Ross, RSM
•
HOLY NAME
HOUSING
/ CORPORATION
BOARD RESOLUTION
BE IT RESOLVED that Sr. Marilyn Ross, President and Executive Director of Holy
Name Housing Corporation (HNHC), a Nebraska nonprofit corporation in good standing
with 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 HNHC housing projects.
,17
Fr. Robert Oelerich, Vice President Date /
Holy Name Housing Corporation
Board of Directors
,1`�
3014 North 45th Street C `'L
Omaha, Nebraska 68104
(402) 453-6100
HOLY NAME
HOUSING
/ CORPORATION
BOARD RESOLUTION
BE IT RESOLVED that Br. William Cloughley, Vice President of Holy
Name Housing Corporation (HNHC) , a Nebraska nonprofit corporation in
good standing with 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 HNHC housing projects.
,//24,0'7
Fr. Robert Oelerich, Vice President Datd
Holy Name Housing Corporation
Board of Directors
3014 North 45th Street
Omaha, Nebraska 68104
(402) 453-6100
,/s --10LY NAME
HOUSING
CORPORATION
BOARD RESOLUTION
The Board of Directors of Holy Name Housing Corporation authorizes
Lisa A. Burks to sign all documents necessary to obtain financing
for the purchase, sale and construction financing for homes for the
Corporation. These documents include, but are not limited to:
Deeds of Trust
Promissory Notes
Loan Agreements
Warranty Deeds
Transfer Statements
Lien Waivers
Closing Statements
gr_ ( 1/1.;ri
FJ
Fr. Brian John resident Date
Board of Direc or
3014 North 45th Street
Omaha, Nebraska 68104
(402) 453-6100
1
HOLY NAME
•
• HOUSING
CORPORATION
BOARD RESOLUTION
The Board of Directors of Holy Name Housing Corporation authorizes
Thomas G. Vaughan, Housing Counselor for the Corporation, to sign
all documents necessary to obtain financing for acquisition,
construction financing and sale of homes for the Corporation. These
documents include, but are not limited to, the following:
Purchase Agreements
Deeds of Trust
Promissory Notes
Loan Agreements
Warranty Deeds
Transfer Statements
Lien Waivers
Closing Statements
2
Fr. Brian Johnson -President Date
Holy Name Housing Corporation
Board of Directors
3014 North 45th Street
Omaha, Nebraska 68104 / N
(402) 453-6100 4
HOLY NAME HOUSING CORPORATION
BOARD OF DIRECTORS
DATE: 11/4/97
President: * Rev. Brian Johnson, Pastor
Holy Name Church
3014 N. 45th Street
Omaha, NE 68104
Vice President: * Rev. Robert Oelerich, Associate
(Same as above)
Sec/Treasurer: * Rev. William Parker, Associate
(Same as above)
Note: Holy Name Housing Corporation is not a religious organization nor does it
serve persons of a particular faith. Because the founders of Holy Name Housing
Corporation were concerned about the neighborhood and the Corporation's
faithfulness to the mission of neighborhood, they made the Redemptorist Fathers
of Nebraska the Board of Directors. The Redemptorists have been active in the
Holy Name neighborhood for seventy-five years. The Board of Directors and Board
of Advisors meet jointly four times a year.
HOLY NAME HOUSING CORPORATION
BOARD OF ADVISORS
Gary R. Batenhorst
Godfather's Pizza
9140 W. Dodge Rd.
Omaha, NE 68114
(402) 391-1452 Fax 255-2699
Mike Boyle
Boyle & Associates, Attorneys at Law
1904 Farnam St. , Ste 615
Omaha, NE 68102
(402) 977-5555 Fax 342-9232
* Yolanda Brown
3519 Fowler Avenue
Omaha, NE 68111
Home: (402) 453-3359 Work: (402) 595-3026
Norma Deeb, Director
Girls Incorporated of Omaha
2811 North 45th Street
Omaha, NE. 68104
(402) 457-4676 Fax 457-30131
Mike Fahey
1107 North 93rd Street, #157
Omaha, NE. 68114
(402) 398-9006
L
0
Richard Hays, Chairperson
5445 Hanover Plaza
Omaha, NE 68152
(402) 572-6721
* Fr. Brian Johnson, Pastor
Holy Name Church
3014 N. 45th Street
Omaha, NE 68104
(402) 451-6622 Fax
Ed Kentch, Operations Officer
First National Bank of Omaha
One First National Center
Omaha, NE. 68102
(402) 341-0500 Ext. 7405 Fax 633-7426
* Jennie McCartney
2314 Fontenelle Boulevard
Omaha, NE. 68104
(402) 351-4949 Fax 351-2798
Ron Meredith, Owner
Chubb' s Finer Foods
2905 N. 16th Street
Omaha, NE 68110
(402) 346-5011 Fax 346-4830
* Fr. Jim Michalski
4308 Grant St.
Omaha, NE 68111
(402) 455-6439
Peggy Murphy
1816 S. 133rd Street
Omaha, NE 68144
Home: (402) 334-1275 Work: 444-6573 Ext. 253
Fax: 444-7722
Janet Otepka
6474 Pierce Street
Omaha, NE 68106
(402) 558-0937
Shawn Peterson, Owner
Acrylicon, Inc.
PO Box 11326
Omaha, NE 68111-0326
(402) 451-1365 Fax 451-1366
Betty F. Quinn
HOME Real Estate
11213 Davenport
Omaha, NE 68154
(402) 334-5500 Fax 334-7599
Home: 6300 Dodge Street 68154
* Terry Rogers
2125 Spencer Street
Omaha, NE. 68110
(402) 451-6882 Work (402) 777-2331
Bruce Thomas
Prairie Systems
7200 World Communication Drive
Omaha, NE 68122
(402) 398-4100 Fax 398-4482
* Neighborhood Residents
[I-7X /- i61T
SUBRECIPIENT UNDERWRITING GUIDELINES
• CITY OF OMAHA DEFERRED PAYMENT LOANS
Effective Date: March 20, 1998
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., formerly known as United Ministries of Northeast
Omaha, Inc., Omaha 100, Inc.,New Community Development Corporation and Omaha Economic
Development Corporation. 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% or the percentage established by the lender providing the first mortgage
financing.
Revised 3/4
•
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.
-4- J �
H. CREDIT HISTORY
1. Judgments
Judgments must be paid or satisfied prior to loan closing.
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 will 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\6041.SAP
-5-
HOLY NAME EDIT D
HOUSING
CORPORATION
April 6, 1998
City of Omaha Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street, Suite 1111
Omaha, NE 68183
RE: SCOPE OF WORK
Holy Name Housing Corporation(HNHC)
New Construction -Kountze Park Infill Housing
HNHC will build approximately eight homes in order to continue revitalization efforts in the Kountze
Park - Sacred Heart area. HNHC has already constructed and sold 31 houses in this area and has an
additional 4 under construction. This area is generally bounded by 16th Street on the east, 24th Street
on the west, Maple Street on the south and Pratt Street on the north.
HNHC will provide pre-purchase counseling to low income families who purchase new homes.
HNHC will assist families to secure private financing for a first mortgage at an affordable rate and to
meet city requirements for second mortgage.
HNHC will maintain such records and accounts, including property, personnel and financial records as
are deemed necessary by the City to assure proper accounting for all expenses.
HNHC will make best efforts to ensure that construction services, contracts and employment
opportunities are affirmatively marketed to women and minority groups.
HNHC will employ affirmative marketing procedures in the advertising and marketing of the completed
houses.
Sincerely,
>7
Sr. Marilyn Rss
Executive Director
3014 North 45th Street
Omaha, Nebraska 68104
(402) 453-6100
Development Budget Form
Kountze Park/Sacred Heart Infill Project
Construction and sale of Home based on average cost and sale of
new homes in Kountze Sark area.
one unit 12 units
Site Preparation 3,000.00 36,000.00
Construction/renovation:
Basic Construction Costs: 72,000.00 864,000.00
Contractor's overhead and profit: 7,500.00 90,000.00
Contingenc - 5% 3.600.00 43.200.00
Total: 86,100.00 1,033,200.00
Soft Costs:
Legal Accounting 150.00 1.800.00
Appraisal 200.00 2.400.00
Building permits 300.00 3,600.00
Taxes 180.00 2.160.00
Insurance 50.00 600.00
Construction Financing 1,800.00 21,600.00
Marketing 50.00 600.00
Title and Recording 250.00 3,000.00
Construction financing 1,500.00 18.000.00
4,480.00 . 53,760.00
TOTAL DEVELOPMENT COSTS: 90,580.00 1,086,960.00
Sales price of property: $78,000.00
SOURCES OF FUNDS:
HNHC Grants and Donations 9,580.00 114,960.00
Omaha 100 Lenders: 46,560.00 558.720.00
Buyers D.P. 1.440.00 17.280.00
TOTAL SOURCES OF FUNDS: 57,580.00 690,960.00
,;,„ WA
Shortfall 'CDBGFFunds �;�� 7 r13:000:00 `396:000:00:
TOTAL DEVELOPMENT FUNDS: 90,580.00 1,086,960.00
Exhibit 1: Project Time Line
Sacred Heart/Kountze park Infill Project
January 1998 to December, 1998
Tasks Jan. to April to July to Oct.to Dec.
March June Sept. Nov.
1 Acquire 12 lots from city X X X X
in targeted area.
2. Complete site preparation on X X X X
vacant lots
3. Construct twelve new houses X X X X
on vacant lots
4. Pre-qualify 12 low and X X X X X
moderate income families to
purchase new homes.
6. Secure permanent financing X X X X X
from Omaha 100 and City of
Omaha for 12 pre-qualified
buyers
7. Complete sale of new homes X X X X
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Exhibit G
Holy Name Housing Corporation
Deferred Payment Loan Determination Process
The prospective home purchaser in the Holy Name Housing Corporation's home ownership
program will proceed through the following loan approval process:
• Initial assessment by HNHC 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 HNHC 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
HNHC 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 $25,000.00 for newly
constructed property or $15,000.00 for a home that was rehabilitated by
HNHC.
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr AP r i l 28 19 98
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
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 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$200,000.00 FY98 CDBG Funds for the Holy Name Housing Corporation
(HNHC)Kountze Park- Sacred Heart Infill Revolving Loan Fund Program; and,
WHEREAS,the Holy Name Housing Corporation proposes to construct, and sell six
to eight houses during the term of the Agreement; and,
WHEREAS, the Holy Name Housing Corporation plans to provide mortgage
financing to potential homeowners in the Target Area at an affordable rate; and,
WHEREAS, the Kountze Park - Sacred Heart Infill Housing Target Area, an area
defined by Pratt Street on the north, Maple Street on the south, 16th Street on the east, and 24th
Street on the west, is an area of predominately low and moderate income residents; and,
WHEREAS,a determination has been made that this Infill Housing 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 construction of single family dwelling units in the Holy Name Housing Corporation Kountze
Park- Sacred Heart Infill Housing Target Area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk , •
Approved
Mayor �'
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr April 2 8 19 9 8
PAGE 2
THAT,as recommended by the Mayor,the attached Agreement between the City of
Omaha and the Holy Name Housing Corporation, a Nebraska Non-Profit Corporation, 3014 North
45th Street,Omaha,Nebraska 68104,for a Revolving Loan Fund in the total amount of$200,000.00
FY98 CDBG Funds for the construction and sale of six to eight new single family homes to low and
moderate income persons in the Holy Name Housing Corporation Kountze Park - Sacred Heart Infill
Housing Target Area, bounded by Pratt Street on the north,Maple Street on the south, 16th Street
on the east, and 24th Street on the west, is hereby approved. Funds in the amount of$200,000.00
shall be paid from the Community Development Block Grant Fund No. 193,Organization No. 8320.
APPROVED AS TO FORM:
(17 /--/-. )/t) XA-M-0g
ASSISTANT CITY ATTORNEY DATE
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By
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Adopted APR 2 1998
y Clerk
Approved C
Mayor
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