RES 1997-1368 - Agmt with United Ministries of Northeast Omaha Inc for rehabilitation and sale of houses ,
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ir'J tN f :' i Omaha,Nebraska 68183-0110
o, _' A`:-N. (402)444-5200
�i0o� try (402)444-5150
4rFo eEBRur Telefax(402)444-6140
City of Omaha May 20, 1997
Hal Daub,Mayor
Honorable President
and Members of the City Council,
The attached proposed Resolution authorizes a HOME Program Revolving Loan Fund of
$100,000.00 for the United Ministries of Northeast Omaha, Inc. (UMNEO), a Nebraska Non-Profit
Corporation, located at 2319 Ogden Street, Omaha, Nebraska 68110. The Agreement allocates
$100,000.00 from FY 97 HOME funds and is included in the 1997 Consolidated Submission for
Community Planning and Development approved by the City Council on December 3, 1996 by
Resolution No. 3195.
The$100,000.00 Revolving Loan Fund will be used by the United Ministries of Northeast Omaha,
Inc. to purchase, rehabilitate and market approximately ten(10) vacant homes to new home-buyers
in the UMNEO Target Area. The Target Area is an area bounded by Read Street on the North,Ames
Avenue on the South,the Missouri River on the East, and 42nd Street on the West. It'is an area of
predominantly low and moderate income residents.
All homes will be initially purchased by households whose annual income do not exceed 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 compliance with the
Contract Compliance Ordinance.
Authorizing the approval of this proposed Agreement will allow UMNEO to successfully complete
this worthwhile housing development project. We urge your favorable consideration of this
Agreement.
Sincerely, Refe d to ity ounc'1 for Conside tion:
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44Planning Department Director Date Mayor's Office/ itl to
Approved as to Funding: App - >ed:
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ouis A. D' rcole Date George L avis, Jr. Date
Acting Finance Dire for Acting H an Relations Director
P:\PLN1\4628.SAP °
V
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 United Ministries of
Northeast Omaha, Inc., 2319 Ogden Street, Omaha, Nebraska 68110, a Nebraska non-profit
corporation(sometimes hereinafter referred to as "UMNEO")for the acquisition, rehabilitation and
marketing for sale of vacant single-family homes in the United Ministries of Northeast Omaha, Inc.
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, the City of Omaha annually receives HOME Investment Partnership Funds
under Title II of the National Affordable Housing Act of 1990, as amended, for the purpose of
providing affordable housing opportunities to residents; and,
WHEREAS,the City Council approved the City of Omaha's 1997 Consolidated Submission
for Community Planning and Development Programs on December 3, 1996, by Resolution No.
3195; and,
WHEREAS,the UMNEO Revolving Fund was included in the FY97 HOME Program and
allocated $100,000.00 FY 97 HOME Program Funds to the program; and,
WHEREAS, UMNEO has been involved in the purchase, rehabilitation and sale of vacant
housing units to low and moderate income residents within the UMNEO Target Area; and,
WHEREAS,UMNEO proposed to purchase,rehabilitate,and market for sale approximately
ten homes during the term of this Agreement; and,
WHEREAS, UMNEO plans to provide mortgage financing to potential homeowners at an
affordable rate; 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 single-family dwelling units in the UMNEO Target Area.
NOW, THEREFORE, in consideration of these mutual covenants, United Ministries of
Northeast Omaha, Inc. 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 United Ministries of Northeast Omaha, Inc., a non-
profit corporation, 2319 Ogden Street, Omaha,Nebraska 68110 (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 United Ministries of Northeast Omaha, Inc. Target
Area, an area bounded by Read Street on the North,Ames Avenue on the South,the
Missouri River on the East and 42nd Street on the West.
1.5 "Property" shall mean - those dwelling units acquired and rehabilitated or those
scheduled for acquisition or rehabilitation in the Target Area.
1.6 "UMNEO" shall mean-United Ministries of Northeast Omaha, Inc.
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 "Developer" shall mean - a public or private non-profit agency, authority or
organization receiving HOME funds to undertake eligible activities. In this
Agreement, the developer is United Ministries of Northeast Omaha, Inc.
1.9 "HUD" shall mean-the U.S. Department of Housing and Urban Development.
1.10 "HOME" shall mean-the program conducted under the provisions of the Cranston-
Gonzalez National Affordable Housing Act,Title II, Subtitle A-HOME Investment
Partnerships(P.L. 101-625) and the Code of Federal Regulations (24 CFR Part 92).
1.11 "HOME Funds" shall mean - that portion of the 1997 City of Omaha HOME
Investment Partnerships Program grant awarded to the City in a total amount not to
exceed $100,000.00 as may be available to grant during the program year 1997,
conditioned upon actual receipt of same, for the purposes stated herein.
1.12 "Deferred Payment Loan" shall mean - a loan of HOME funds, not to exceed the
amount of$15,000.00, 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.
1.13 "Client" shall mean-a qualified participant making application to UMNEO Housing
Revolving Loan Program.
1.14 "Authorized Projects" shall mean-those projects selected by the UMNEO staff.
1.15 "Subrecipient" shall mean - a public or private non-profit agency, authority or
organization receiving HOME funds to undertake eligible activities. In this
Agreement, the Subrecipient is the United Ministries of Northeast Omaha, Inc.
1.16 "Recipient" shall mean-the City of Omaha.
1.17 "Program Income" shall mean - the gross income received by the Recipient or
Subrecipient directly generated from the use of HOME funds. When such income
is generated by an activity that is only partially assisted with HOME funds, the
income shall be prorated to reflect the percentage of HOME funds used (see Exhibit
„B,.).
Section 2. Duties and Conditions of City Financing
Subject to and conditioned upon actual receipt of same,the City agrees to provide a HOME
Revolving Loan Fund not to exceed $100,000.00 for an eighteen month period, subject to the
following conditions:
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2.1 Use of funds in the Revolving Loan Fund, plus any program income, is limited to
approved UMNEO acquisition/rehabilitation activities.
2.2 Loans must be made in compliance with UMNEO Loan Policies and Underwriting
Standards attached hereto as Exhibit "C" and made a part hereof by reference.
2.3 After completion of rehabilitation, the property must comply with all appropriate
City codes and ordinances, and with Federal Section 8 Housing Quality Standards;
such compliance being determined by inspection of the property by representatives
of the City.
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 UMNEO.
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
construction, administration, or professional services 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 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.
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.
2.7 The City agrees to loan UMNEO 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 UMNEO
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 2.6.6'
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 UMNEO on the activities included in this Agreement and
on contracts entered into with third parties pursuant hereto.
2.9 Funds received bythe Cityfrom UMNEO shall be returned to the revolvingloan
fund and be available to UMNEO 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 UMNEO and to coordinate activities associated
with the implementation of the scope of work.
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 real estate.
Section 3. Duties and Responsibilities of the Contractor/Developer
The Contractor/Developer shall:
3.1 Abide by all terms and conditions of the City's Agreement.
3.2 The Contractor does hereby 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 Agreement and the construction 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,
u ,a
b) is subject to the repayment/recapture provisions of the Deferred
Payment Loan Deed of Trust and Promissory Note, including the
terms requiring payment in full of the principal balance upon sale,
rent, lease or transfer of ownership of the subject property.
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
of the Agreement, all HOME 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 "E" and incorporated herein by
reference as though fully set forth.
3.3 Use the City's HOME funds for those authorized items as outlined in Sections 2.6.1
through 2.6.6.
3.4 Maintain the property in a safe and sanitary condition, conform to City housing and
zoning ordinances and carry out the acquisition/rehabilitation in an efficient manner.
3.5 Make best efforts to acquire/rehabilitate and sell approximately ten properties in the
Target Area during the term of this Agreement and perpetuate the process with
additional acquisition/rehabilitation.
3.6 Provide services for clients as required in the Scope of Work Summary, attached
hereto as Exhibit "D" 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 1997 HOME program year.
3.8 The Contractor 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.
•
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3.8.2 Occupancy Reports - Prior to the sale of each unit during the period of
affordability as defined in Paragraph 3.2.1(c),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 Submit a monthly progress report to the City of Omaha, Director of
Planning,the progress report will delineate UMNEO staff accomplishments
for the previous 30 day period.
3.8.4 Submit a monthly financial report (income statement) delineating the
revenue and line item expenditures for the UMNEO. In addition, a monthly
check register is to be submitted reflecting payee, date, amount and check
number.
3.8.5 Submit monthly time sheet, which indicates the allocation of time spent
among HOME and non-HOME funded rehabilitation loan projects.
3.9 Comply with all provisions and regulations of the HOME Program and have an
annual audit completed in compliance with OMB Circular A-133. A copy of this
audit shall be provided to the Director. OMB Circular A-133 is attached as Exhibit
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
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 construction services, contracts and employment
opportunities are affirmatively marketed to women and members of minority groups.
UMNEO 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 "G").
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4 ,
3.12 Employ affirmative marketing procedures in the advertising and marketing of the
completed project. In marketing, the Contractor shall also conform to the non-
discrimination provisions hereinafter set forth. the Contractor shall comply with the
affirmative marketing responsibilities specified in Exhibit "E".
3.13 Ensure that no Contractor or sub-contractor shall be used by UMNEO,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 UMNEO Loan
Policies and Underwriting Standards attached hereto as Exhibit "C" and made a part
hereof by 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 UMNEO in the same manner the
Director provides technical assistance to other contractors, during the construction
phase to ensure compliance with such requirements.
3.16 Ensure that the amount and terms of each UMNEO loan shall be at the discretion of
UMNEO and that the provisions of this Agreement are included by reference in each
mortgage.
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 UMNEO.
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 for UMNEO, Board of Directors and
employees entrusted with the handling of funds pursuant to this Agreement.
Y a
3.24 Ensure that the HOME Revolving Loan funds shall only be used to finance the
acquisition/rehabilitation and sale of housing units to be initially owned/rented and
occupied by households whose annual income does not exceed 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 "H" and incorporated herein by this reference.
3.24.1 If, through breach of this agreement, the Contractor fails to maintain the
occupancy, affordability and use restrictions enumerated in Section 3.25 of
the Agreement, all HOME funds previously provided to the Contractor
through fulfillment of this Agreement shall promptly be returned to the City
of Omaha.
3.25 Return to the City of Omaha any program income received within thirty (30) days
of receipt.
3.26 Acquire only vacant or owner-occupied properties for the purpose of rehabilitation
and subsequent sale to qualified applicants.
3.26.1 Prior to the acquisition of a Property for an Authorized Project, UMNEO
shall notify the City, in writing, of its intent to acquire said Property. Said
written notice shall include the Legal Description and common address of
the Property.
3.26.2 The acquisition of properties shall be voluntary arm's length transactions
and,prior to making an offer to purchase a property, UMNEO 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. UMNEO
shall maintain reasonable evidence in its project files of the basis for
its estimate of the fair market value.
3.26.3 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 UMNEO.
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3.26.4 In the event UMNEO 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,UMNEO shall be responsible for the payment of all required
relocation assistance payments.
3.27 UMNEO shall not begin rehabilitation of a Property until it receives 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.
3.28 UMNEO 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 UMNEO further agrees to indemnify and hold
harmless the City of Omaha for any liability arising out of the improper use by
UMNEO of the information provided.
3.29 UMNEO 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.
3.30 UMNEO shall comply with all environmental requirements for review and impact
on the environment.
3.31. UMNEO 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.
3.32 UMNEO shall, if applicable, obtain final certification from the National Park
Service, Denver, Colorado,verifying that the Contractor has complied with and met
the Secretary of Interior's Standards for Rehabilitation".
Section 4. Consideration
4.1 In consideration of the program services herein provided, the City agrees to pay
UMNEO the sum of$100,000.00, conditioned upon actual receipt of same, for the
UMNEO Housing Revolving Loan fund from HOME Funds, Fund 186,
Organization Number 5014, United Ministries of Northeast Omaha, Inc.
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4.2 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 "I" to this Agreement. This loan will be due on sale of the
property. The Deferred Payment Loan for a rehabilitated property shall not exceed
$15,000.00.
4.3 In the case of a foreclosure or upon receipt of a Deed in Lieu of Foreclosure, on a
home rehabilitated by UMNEO,UMNEO 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 agreement in place at the time the
subsequent purchaser receives preliminary loan approval by the City.
4.4 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 5. Term
This Agreement shall be in full force and effect eighteen months from the date of execution.
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 Contractor 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.
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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 Council.
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. United Ministries of Northeast Omaha, Inc. may not assign its rights
or obligations 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 United Ministries of
Northeast Omaha, Inc. remains a general partner.
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 "L").
6.10 Subrecipients. UMNEO shall comply with the requirements and standards of OMB
Circular No. A-122, "Cost Principles for the Non-Profit Organizations" (Exhibit
"M") and Attachments A, B, C, F, H, N, and 0, to OMB Circular No. A-110, as
identified in Exhibit "N".
6.11 Other Program Requirements. The Contractor shall be required to carry out each
activity of this Agreement in compliance with all Federal laws and regulations
described in Subparts A,E,F, and H of the Home Investment Partnerships Program;
24 CFR Part 92 (Exhibit "0").
6.12 Reversion of Assets. Upon the expiration of this Agreement, the Subrecipient shall
transfer to the City of Omaha any HOME funds on hand at the time of expiration and
any accounts receivable attributable to the use of HOME funds. Additionally, any
real property under the Subrecipient's control that was acquired or improved in whole
or in part with HOME funds in excess of$25,000 shall be either:
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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-HOME funds for acquisition of, or
improvement to, the property. Such reimbursement is not required after the
period of time specified in accordance with(a) above.
6.13 Indemnification. UMNEO shall indemnify and hold the City harmless from and
against: (1) any and all claims arising from contracts between UMNEO 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, UMNEO 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 UMNEO 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. United Ministries of Northeast Omaha, Inc. 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
- 13 - '
. .
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 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
Director
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,Nebraska 68183
(2) Contractor:
United Ministries of Northeast Omaha, Inc.
David A. Porter, Executive Director
2319 Ogden Street
Omaha,Nebraska 68110
IN WITNESS WHEREOF,the parties have executed this Agreement as of the date indicated
below:
ATTEST. CITY OF o , .�
.. , '
CLERK OFT CITY OF OMAHA MAYOR OF THE CITY OF OMAHA
WITNESS: UNITED MINISTRIES OF NORTHEAST
OMAHA .
r �-C� By.
avid A. Porter, xecutive Director
t7//7/ 7 1/// 7/F7
Date Date
APPRO yD AS TO F RM:
4.0_,( ril( 4/-1? - q 7
P:\PLN1\4626.SAP STANT CITY AT RNEY Date
- 14 -
SCHEDULE OF EXHIBITS
Agreement
Exhibit Location Description
A 1.1 Article of Incorporation and Corporate Resolution
B 1.17 Definition- Program Income
C 2.2 UMNEO Loan Policies&Underwriting Standards
D 3.2.3 Scope of Work
E 3.6, 3.13 Affirmative Marketing Policy
F 3.10 OMB Circular No. A-133
G 3.12 Minority and Women Business Enterprise Plan
H 3.25 Median Income by Family Size
I 4.2 Deferred Payment Loan Determination Process
J 6.1 Equal Employment Opportunity Clause
K 6.1 Section 3 Clause
L 6.9 Termination - CFR 85.43 - 85.44
M 6.10 OMB Circular No. A-122
N 6.10 OMB Circular No. A-110
0 6.11 HOME Investment Partnerships Program
24 CFR Part 92
Exhibits identified herein are made a part hereof by reference and are
a part of the provisions of the Agreement. Exhibits B, F, and J
through 0 are on file in the Planning Department.
P:\PLN1\4626.SAP
- 15 - _
C
Il •
117(I I I 14A
UNITED MINISTRIES OF NORTHEAST OMAHA, INC.
kv. •, 2319 Ogden Omaha, Nebraska 68110 (402) 457-4678
LUMMI
July 22, 1996
Mr. Robert Peters,Assistant Director
City of Omaha Planning Department
1819 Farnam Street, Room 1111
Omaha, NE 68183
Dear Mr. Peters:
Attached is an application from United Ministries of Northeast Omaha for the continuation.
of its affordable housing program. Specifically this proposal calls for the purchase,
renovation and sale of 36 homes to lower income families during 1997. These renovations
will occur in the area bounded by Read Street on the north,Ames Avenue on the south
from 48th to 30th Streets,Lake Street on the south east of 30th Street, and east of 48th
Street. $360,000 of CDBG funds are requested with which to accomplish this goal.
Thank you. •
Sincerely,
David A. Porter
Executive Director
4,01920214,
r.�� N\
4 •
ATTACHMENT 1.A
si4:414 C.0)
•
.. RECEIVEDA��. l�-� '
WELTER 9.6PEnLLNAN B®BCa . . t.;':} :,
►DOUGLAS COUNTY CLERK ARTICLES OP INCORPORATION rig::{:; ;i " NH " f,,. ;-t:a tl'_
,.,,,
FEB 21 9 47 AM 'BO OF
UNITED MINISTRIES OF NORTHEAST OMAHA, INC. �t 9
,..• �a ;Tr fiat
The undersigned~ acting'as incorporatore of a Corporation under the
Nebraska Non-Profit Corporation Acti adopt the following Articles of Incorp-
s .
• oration for such torporationt
ARTICLE I
The name of the Corporation shall be United Ministries of Northeast
Omaha;" Inc. - _ • . _
ARTICLE II
The duration of the Corporation shall be perpetual.
ARTICLE III
The address of the initial registered office of the Corporation shall
be 2319 Ogden Street) Omaha, Nebraska 68110. The initial registered agent
shall be LeRoy Seaver.
•
ARTICLE IV
The purposes for which the Corporation is organised are exclusively
scientific, charitWble and educational purposes as used under Section
y • 501 (c) (3) of the Internal Revenue Code of 1954, as amended; including,
but not limited tot The preservation and rehabilitation of the neighbor-
i
hoods through the identification of causes of physical and economic deter-
'oration, and through the initiation of projects, involving residents' par-
ticipation, aimed at disrupting the cycle of urban deteriorations The plan-
\� ning and promotion of better facilities and services to meet the needs of
the residents of the community; The identification and analysis of local
C.?'. •
1
ri::`•tric:
. . ,: .� m. w".'. -_.-:'� ,
iy . r • • • 9 pal ...r ryy.•r.,,.- ,.
a'`'d • ��•-,
ir
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community problems to aid in the determination of its needs, priorities-end y,-', f...,
}jr� solutions with regard to community development; and- the development of le: r •;-.�. ; ,+ .3.
J`+ ship qualities within the community through educational seminars and works. •
r'til izational skills. f ..t '� +t::r on organ •,,;�; s 4a
i�41t ARTICLE V • •,..t!"• , s s K • .
'4, The Corporation shall have all the powers allowed under the Nebraska .,. .
Non-Profit Corporation Act.
Not withstanding the provisions of these Articles, no substantial part,,,. . = ;
of the activities of the Corporation shall be spent in the carrying on of • -- •.,.-! • ,
propaganda or in any attempt to influence legislation directly or indirectlqir•#,•t .d'' �
campaign ;` 4"
. The Corporation shall not participate or intervene in any political ;.
on behalf of any candidate for. office. The Corporation shall not carry on " • '•',
any other activities not permitted to be carried on by: , •A`i '�•. ''
{ r ": ..A
j�,f (1) A Corporation exempt from income taxation under 501(c) (3) of the . , �• T„ti.
• Internal Revenue Code of 1954 as amended, or by •
•
(2) A Corporation, contributions to which are tax deductible under r ` :.,
t.s: •cr ' 'i
170 (c) (2) of the Internal Revenue Code of 1954 as amended (or the'';�.,-x-, ;, 4
'''"``
1 • corresponding provisions of any future United States Internal • ,'% .
, Revenue law.) '•'
..o�.....,..,..+.....a _— � ..a. — -._�.w .._._........�.....V.._ ._ .."_._...-._.__.�_._ s •• .tr..A��fE'!'.
ARTICLE VI� ; '
: , `
)` r
as No part of the net earnings of the corporation whall inure to the betl 0•
•
Z.,
��°�• of or be distributed to its members, directors, officers or other private ��� 1.*'�'''
,t� < ,fir t� 1'
' `- sons, except that the Corporation shall have the power to pay reasonable ..• A g���.
o:q..�•�L. ro 1
•
44:1..." . .
cation for services rendered. "'``'Y,'` (fig .
,4 ,. Upon dissolution of the Corporation, the Board of Directors shall•, afte 4) ,, 4 ,,
WI P•1
f�j
r making Provision for the payment of all liabilities of the Corporation, c11stp 4.k` ..
r :„
�j ; of •
all assets of the Corporation exclusively for the purposes of the CorQ*T ,{,• : :
s. 'rt" •''Y
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.) ;. :',- '''',4`-. ;•;,:-.V..-. .. . . . • . .. . • •.. . . . . . .
4ij;.:bi Such organization or organizations as shall. at .thar4ime qealify, as .an...., . ..,:::: ..3': ',.,itr-.•1
P.-, k......, ,v..:', i.'..-':::.:. . . ' .•• ..:.
. • , %,'Pi' ... ., ,-..;
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':, '.,..*ti'• ..:•••. • ' '. • • . • -
• • • .,,,,,,, • , el
, •:. .,`4.,. `r;,,r!,... ' • 'exempt organization or organizations- operated ve
.extlusily tor charitable, ''•'•t:z6. '1',14Pi*-1,1 it i •Z•ler;sZ.-• , • •• , . . • .• ,,,,, P• - ,-t•;.,, ,i
! .) s ',1.-."‘e•-',J4',. • 'k • . . .•
• • • -
e.•) .•-e.: :-.•-4::. educational,. or scientific purposes under section 501 (c)(3) of the
• • ... ....,- ,o,
.0_Ai,•-. . • .
• . ...:.',. . •=1.• •.., • . • Revenue Code. of 1954, as amended (or the corresponding provision of. any future
•-•=4Y ,!•::.,..-:.... . •. . . . . . .
• ' .'•rIt' f-5,4 ;.,'.''
- z;.1t-911,1, ' • United States .Internal Revenue Law) , as the Board of Directors shall detetinine .
:x Q.
4.-P<I! •• • • . • . . : ,,,,ett,.:,;:t
Vie/e. .?.; ' .. • . .
• z . • • •;';e64.4,.','•:..P!'-
1 • .i.;?:"'•-4'2,,,'v.•.;.. Any- such assets not 'So disposed of by a court of competent jurisdiction of
1 ,-; `,f-i.,i' • • . • • • • .- ••'.t?..-er-,,,,,i..'`
•• , ',1•,••• •• - Douglas County, Nebraska, exclusively for such exempt purposes, or to such .. ••14,,,,,;•*T4';.'
•••• .'',.-"...:•• •,.. )
. • .
•
•it'''''.: ' .. . exempt organization or organizations as the Court shall •determine. . .
•
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• . . • • ...•••:...4,,,f•.4,-
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ARTICLE VII •
. • : ...?"-1.-1 •!,
...,.: .
1 : • .
• • --';"•tri•••!" -
,.•• ..
. Any other provision of these Articles to the contrary notwithstanding: . .,.:,,,,,:?•;.:1-
• • 1.4,.'.i"P-4
• .'.' :.tv.v:P•••-•'.1
. The income of the Corporation for each taxable year shall be distributed •••iti--44',;-:: ''
..•, .
.:,•.: •;:,•11..,.,z;.. ,
. • : .•. : ,....,. Al;
. • -,..,,,,5,,,,,„
in such manner as not to subject the Corporation to tax under Section 4942 of '. ''' ,••••-, „-::
•
•
'... • .
the Internal Revenue Code of 1954, ,as amended, (or the corresponding sections .• ,..'?- .1`!?:$•'-,'"
. .,- . •,••,-
of any future Internal Revenue law.) . . . . . .
• . . . .
• ' :',”',.:-•f,o':
•
'.::.,,k...:.• •
• ': ..H.:. .:.'r;:,.. .
et.....'•- ... The Corporation is prohibited from engaging in any self-dealing (a6 definetti.ktNi. .
,. .• •
.:'• s.
.',.,.... in section 4941 (d) of the Internal Revenue Code of 1954, as amended) , from
..w.. •• .: •
• . . ...:',....‘•:.'.. ::,'.:,
,;.j '• ::.;=.!c;:'' '
... -.. . re-
tuning any excess business holdings (as. defined in Section. 4943(c) of the . • ' - •:•••- •:"..-.—.1.1:::: •
. Internal Revenue Code of 1954, as amended) , from making any investments in auch•:.::,',..::-.....f.-..-':.;•...'
• • • ,• .. •,.•
.•
. i
. .
manner as to subject the Corporation to tax under section 4944 of the Internal.... -••••••••-.: •
. .
. .
_
. . . ._
. : •,. ,...1 .1.
. .• Revenue Code of 1954,- ie amended, and from making any taxable expenditures (an..': ••• • .....,.~-' .
. ...77:
• . •., .:., '''.• . .defined in Section 4945 (d) of the Internal Revenue Code of 1954, as araended) ,;-,2:;- ,.;! v.:••
•
.1 . . 'eY., . • .: .' '0'41 •• :,:.' ,.of•.- 7/... • .
• . . . . • , • . . t• :•:;—,rt! ::•: • . . ARTICLE VIII
• '1/4.`--. • • .. . • :' ',!',',:*.pil` • -';V
-,4"-;:...'.• ' • • • • •'. "':46 4-'-'.'
•• • 4•:'• The power to manage the affairs of the Corpotittion shall be in the Board ':;:r. 'i•-i,: '
4,;-:!,?: • .
...1is.
•
•. — .. .-: .,.....?:7;::::1;1-;-,'''iA!:;.:,1
-,:e.‘,:-' • • of Directors. The number of Directors shall be fixed by the ByLaws, but ebita.L_..„.;.*4..,,,,,..4r-il,;•
Viit,•:*:
Ao` -
' -..1.,..;
-r. ..
`,. • .
ti not be less than three. The manner of election or appointment sof DirectOre•-•::'!f .`1.1.Vre,..t0,.";' •
., ,..
. . ..
.. .,-. .p.; •:',1.,•:.!,",/,.0::.
their term of office, and their qualifications shall be stated in the;By-,4ifile..-Art•-
. . w.,4, ,4:,-. •-:
The number of Directors constituting the initial Board of Directors. of thli...H'i,Z4/• ,-;,,,,..:.
i V' '-, • .
. .1,-, . • • .
.. . . • • , , ,. — •• 74,....4.... ph 4,,..
, .. . . . •
• . . . .. <-; ..• : '14,-T:we:Tif%.
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• • • . ‘• , •: . '1,*1' ...":.1.,'.,t1'.`!--''.,vXle:.`
. • ' • • . . •
. •• • . .. •
,‘1/4;.... -- r-••••••.,..--) i
1100Ka432AGE.40
s Corporation shall be sixteen, and the names and addresses of the persons who
are to serve as the initial directors are:
Pastors: LeRoy Seaver '•,; ,c(rik., A Ivan D. Richardson
2319 Ogden Street, 68110 6001 Fontenelle Blvd., 68111
Chairpersons oft
Administrative Board: Paul Estes
6005 Flotenc6% Blvd. 68110
Marilyn Deal t'
3812 Curtis Ave. 68111
Meryl Chapin
2338 No. 66th St. 68104
Council on Ministries: Mrs. Ann Stewart
4266 Miami St. 68111
Jackie Sowers
6812 No. 52nd St. 68152
Pastor•Parish Relations: Carol Schmid
4716 Decatur St. 68104
Marge Wood
7213 No. 34th St. 68112 ' . '
•
Lay Leaders: Frank Lushinsky
5419 North 48th Ave. 68104 1
Marilyn Deal
3812 Curtis Ave. 68111
Jack Chapin
2338 No. 66th St. 68104
President UMW: Nancy oltmanne
1522 North 120th Plata # 5, 68154
r Cathy Schenk
4701 North 16th St. 68110
Mary Townsend
5614 Fontanelle Blvd. 68111
Finance Committee: Charlotte Roscoe
1708 No. 54th St. 68104
Gene Sebastian
6138 Whitmore, 68152
.4V,
,. ..
• •
• ' • .
•
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ARTICLE IX .. . ,
• :,J ;. !.'5,-').
,, ..
jk
. . The officers of the corporation shall consist of a president, one or
-i,,,;t • •
vice-presidents, a secretary, a treasurer, and such other officers as may 0. .,:ii,,e1;
i
, . deemed necessary by the Board of Directors. Any two or more offices may be
- • • • • • • ,'• ,::).1 ;kTicz:; ::-'1
held by the same person, except the offices of president and secretary, a4A* '.03; 4p:
v. i. - •.'''''''IA.;:-s!':''':::
f i:.'•. '
except the offices of president and vice-president. - The By-laws of the Corpor-
ation shall provide for the manner in which such officers Shall be elected or' • ,.i-' • :-.... ..... . • .
. . . • •
• ' •: •. .. . .
appointed, their terms of of fie, and the manner and reason for the removal .: .. .
. . : . • • ''"- ' : :'- '' .
of such officers. - , • .. , .
ARTICLE X
- • .
The corporation shall have one or more classes of members, the designa-
tion of such class or classes, and the qualifications and rights of the member0 .4:: ::::..
of each class shall be set forth in the by-laws. , •
. .
, .
ARTICLE XI • .
Any amendments to the articles of incorporation shall be made in the
.-,.• . •,:-'. ..ri.,--
. . - . . .. '•x.'
. .. ,
following manner: The Board of Directors shall adopt a resolution setting forth :',
•
the proposed amendment and directing that it be submitted to a vote at a meeting H.
... . .
• of members having voting rights, which may be either an annual or special meet',
ing, written or printed notice setting forth the proposed amendment shall be
. ,..-.,,,.. . .
• given to each member entitled to vote at such meeting. The proposed amendment
shall be adopted upon receiving at least two-thirds of the votes- which members-• •-• • - H:4
r---- •
present at such meeting (or represented by proxy) are entitled to cast. Any
, • ' s''-::,,.;
number of amendments may be submitted and voted upon at any one meeting.
••:44.,!;;',
ARTICLE
-'• . • m
,';*,::. • . ' ..... ;,. .:,,
The name and address of each incorporator is:
,,, . • -•: -:;,':, ,..-,„ ::
• .
Rev. LaRoy Seaver 2319 Ogden St. Omaha, Nebraska 68111
Ix Rev. Ivan Richardson 6001 Fontenelle Blvd. Omaha, Nebraska 68111 •
- .
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:,ilt,,,--‘,i,,,i),14,,,. *Ai,
,� ` : • Witness our hands this T day'of , 19 �.: � ia3�
13
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� Rico po for V,� >{t,, r ,.
�, l 4
• Incorporator
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EnCOIt�EDYI U i LERK'S OFFICE; DOUGLAS COUNTY,NEBRASKA ON
I. • ' „„: .l�f__\M. WALTER B. SPELLM,AN,COUNTY CLERK #'
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- . 4 I 1(711171 I P 6.
UNITED MINISTRIES OF NORTHEAST OMAHA, INC.
to) 2319 Ogden Omaha, Nebraska 68110 (402) 457-4678
Li 11
UNITED MINISTRIES OF NORTHEAST OMAHA, INC.
A Nebraska Corporation
**********
A RESOLUTION OF THE BOARD OF DIRECTORS
RESOLVED by the Board of Directors that the corporation enter into contractual
agreements with the City of Omaha for fiscal year 1997 CDBG and HOME funds as well
as 1996 carryover CDBG funds in order to continue and expand United Ministries of
Northeast Omaha's affordable housing program.
IT IS FURTHER RESOLVED that the Executive Director of the Corporation, David A.
Porter, is authorized to execute such documents as needed to enter into the
aforementioned agreement for the Corporation.
I attest that the above is a true and accurate account of the Resolution approved by the
United Ministries of Northeast Omaha's Board of Directors.
J Welch, Board Secretary
Dated February 26, 1997.
" 9
•
BY-LAWS
• UNITED MINISTRIES OF NORTHEAST_OMAHA
Article I—Offices
A. Principal Office: The principal place of business of the corporation and the principal executive offices of the corporation
shall be located at 2319 Ogden Street, Omaha,in
Douglas County,Nebraska.
B. Registered Office: The registered office of the corporation may be,but need not be,identical with the principal office as
registered. The principal office may be changed by the Board of Directors
Article H—Purposes
The purposes for which the corporation is organized are scientific,charitable and educational in the area north of
Ames Avenue, south of Read Street,from 42nd Street to the eastern bounds of the city.
The activities of the corporation shall be designed as:
A. To function as a neighborhood advocacy organization
1. Functions to include: Initiatory help
Consultative help
Help with special interest groups
Promotion of voluntary support from within the
groups
2. The function of UMNEO is to help and to know how to organize a
neighborhood group.
3. The function of UMNEO is to help as a consultant.
4. UMNEO could assist in the organization of a neighborhood group
outside of the area on a limited basis.
B. To address systemic issues
1. UMNEO should function in the bounded area with"area issues" and
"people-oriented issues."
2. UMNEO may function in other specific areas as they come up.
3. UMNEO may help to set up other corporations or auxiliary corporations
needed to address specific issues.
C. To provide for direct services to the area through a combination of activities.
I. Some direct services which cannot be handled by the local congregation
may be referred to UMNEO.
2. The local congregation may ask for help to do a direct service
of their choice.
3. The UMNEO staff may offer assistance to the supporting churches for
development and/or delivery of services.
4.The provision and support of housing which is affordable to the lower
income residents of the service area. This specifically includes the
renovation and construction of single and multi-family housing for
home ownership and/or rental.
Article III—Powers and Limitations
The corporation shall have all the powers allowed under the Nebraska Non-Profit Corporation Act. It shall comply
with the limitations of paragraphs 4.6 of the Nebraska Non-Profit Corporation Act and the limitations of Internal Revenue
Code 501(c)(3).
by-laws revised 12/12/95 1
Article IV--Distribution of Income and Dissolution
No part of the net income of the corporation shall inure to the benefit of or be distributed to its members, directors,
officers, or other private persons, except that the corporation shall have the power to pay reasonable compensation for
services rendered.
Upon the dissolution of the corporation,the Board of Directors shall make provisions for the payment of all liabilities
of the corporation, dispose of all assets of the corporation exclusively for the purposes of the corporation to such organization
or organizations as shall at that time qualify as an exempt organization or organizations operated exclusively for 4.4 and 4.5
purposes under Section 501 of the Internal Revenue code of 1954, as amended(or the corresponding provision of any future
Internal Revenue law)as the Board of Directors shall determine. Any such assets not so disposed of shall be disposed of by a
court of competent jurisdiction of Douglas County, Nebraska, exclusively for such exempt purposes, or to such exempt
organization or organizations as the court shall determine.
Article V--Prohibition Against Self-Dealing
Any other provisions of these By-Laws to the contrary notwithstanding: the income of the corporation for each
taxable year shall be distributed in such a manner as not to subject the corporation to tax under section 4942 of the Internal
Revenue Code of 1954 as amended(or the corresponding sections of any future Internal Revenue law).
The corporation is prohibited from engaging in any self-dealing(as defined in section 4941 (d)of the said Internal
Revenue Code), from retaining any excess business holdings(as defined in section 4943 (c)of said Internal Revenue Code),
from making any investments in such manner as to subject the corporation to tax under section 4944 of the said Internal
Revenue Code, and from making any taxable expenditures(as defined in section 4945 (d)of the said Internal Revenue Code).
Article VI--Meetings
A. Annual Meeting: The annual meeting of the members shall be held at an hour designated by the Board of Directors in the
notice of meeting. The purpose of the meeting shall be to elect directors and officers for the coming year and such other
business as may come before the meeting.
B. Regular and Special Meetings: There shall be regular at least quarterly meetings of the Board of Directors and special
meetings of members called for any purpose by the President at the written request of not less than three members of the
corporation entitled to vote at the meeting.
C. Place of Meeting: The Board of Directors may designate any place within the State of Nebraska as the place for any
annual or special meeting of members. If no designation is made, or if a special meeting otherwise shall be called, the place of
the meeting shall be the principal executive office of the corporation within the state of Nebraska.
D. Notice of Meeting: Written notice stating the place, day,and hour of the meeting,and in case of a special meeting, the
purpose for which it is called, shall be delivered not less than ten(10)nor more than fifty(50)days before the date of the
meting, either in person or by mail,to each member of record entitled to vote at the meetings. If mailed, such notice shall be
deemed to be delivered when deposited in the United States Mail,addressed to the member at his/her address as it appears on
the membership list of the corporation,with postage thereon prepaid. Any member may waive notice of any meeting. The
attendance of a member at a meeting shall constitute waiver of notice unless such attendance by a member is for the sole
purpose of objecting to the transaction of business because the meeting is improperly called.
E. Notice of Special Meetings: Notice of any special meeting shall be given at least five(5)days previous thereto by written
notice delivered personally or by mail. If mailed, such notice shall be deemed to be delivered when deposited in the United
States Mail, so addressed,with postage thereon prepaid.
F. Quorum: The members present and voting at any duly announced meeting shall constitute a quorum.
G. Manner of Acting: The act of a majority of the directors present at a Board Meeting shall be the act of the Board of
Directors.
1
by-laws revised 12/12/95 :2,
A . u
Article VI1--Board of Directors
A. General Powers: The business and affairs of the corporation shall be managed by the Board of Directors.
B. Members. Membership on the Board of Directors shall be limited to thirty people and shall include the following minimums
in representation(a person may represent more than one category):
By election:
Each sponsoring local church: 2/church 6
Neighborhood Organizations 3
Service Area(at large) 3
Supporting Organizations 5
By office:
Pastors of sponsoring churches 2
Executive Director 1
Omaha District Superintendent 1
Executive Director,UMM 1
United Meth. Women's Representative 1
Conference Board of Global Ministries Rep.
Conference Lay Representative 1
Conference Youth Council 1
Conference Race&Religion Rep. 1
Total 27
All of the above are voting members. Elected Board members'terms are three years. Members may serve two consecutive
terms. An elected Board member with three(3)unexcused absences in a year may be removed by vote of the Board. The
sponsoring churches nominate their representatives to the Board. For other elected persons, a Nominating Committee shall be
composed of one person from each of the three sponsoring congregations, and two(2)from the remainder of the Board, and
will bring reports to the Board, who shall have the right to make additional nominations and the authority to elect.
C. Compensation: No member of the Board of Directors shall be paid for services rendered,except as it may be for duly
contracted services of employment in other than policy-making functions.
D. Resignations: Any Director of the corporation may resign at any time by giving written notice to the President or
Secretary of the Corporation. Such resignation shall take effect when accepted by the Board of Directors.
E. Removal of Directors: Any director may be removed with or without cause at any time by the members at a meeting called
expressly for that purpose. No director shall be removed except by the vote of a majority of members entitled to vote who are
present at that meeting.
F. Vacancies: Any vacancy in the Board of Directors caused by death, resignation or removal shall be filled by the affiliated
organizations in compliance with their procedures. Each director so elected shall hold office for a term to expire at the same
time as the term of the director whose vacancy s/he was chosen to fill.
G. Personnel Committee: There shall be a personnel committee composed of seven(7)Board members. The members of the
committee shall be selected by the Board. A personnel chairperson shall be nominated by the UMNEO Board at the annual
election of officers meeting;this chairperson may be re-elected one term(a total of two years). The personnel committee shall
meet with each employee at least once a year for review of performance in relation to the purposes of United Ministries of
Northeast Omaha, Inc. At other times, all personnel will be subject to the supervision of the Executive Director.
by-laws revised 12/12/95 3`
�,i
Article VIII--Officers
A. Number, Selection,Term: The officers of the corporation shall be an Executive Director,a President, a Vice President, a
Secretary, and a Treasurer, each of whom shall be elected by the Board of Directors except the Executive Director who shall
be hired by the Board of Directors upon recommendation of the Personnel Committee and may also be appointed by the
Bishop of the Nebraska Conference of the United Methodist Church. No two offices may be held by the same person.
Elected officers serve one year terms, with a maximum of three consecutive terms. Each officer shall hold office until his/her
successor shall have been elected or appointed and qualified,or until his/her death,resignation or removal. The nominating
committee will consist of three representative members of the supporting churches plus two additional members from the
remainder of the Board.
B. Removal: Any officer may be removed by a majority vote of the Board of Directors except the Executive Director who
may also be removed by the Bishop of the Nebraska Conference of the United Methodist Church if the Executive Director was
appointed by the Bishop. Such removal shall be without prejudice to any contract rights possessed by the person involved.
C. Vacancies: A vacancy in any office which occurs for any reason may be filled by the Board of Directors for the unexpired
portion of that term.
D. Executive Director: The Executive Director shall be the general manager of the corporation and, subject to the control of
the Board of Directors, shall in general supervise and direct the operations of the corporation. S/he may sign,with the
President or any other properly authorized officer, all deeds, mortgages,bonds,contracts,and bids or other instruments which
the Board of Directors has authorized him/her to execute, except where the signing of such instruments is expressly delegated
to the Board of Directors. The Executive Director shall perform all other duties as may be prescribed by the Board of
Directors.
E. President: The President of the Board of Directors shall preside at all meetings of the members and directors. S/he along
with the Executive Director shall be responsible for transacting any and all business connected with the Corporation.
F. Vice-President: The Vice President shall preside in the absence of the President. S/he shall also assume the duties of the
President in the event that the President is unable to fulfill those duties.
G. Secretary: The Secretary shall keep the minutes of the meetings of the Board of Directors and the members in one or more
books provided for that purpose. S/he shall keep a register of the mailing address of each member and shall be in charge of the
mailing of all correspondence and the sending of due notice as provided by these By-laws and as required by law. S/he shall be
custodian of the corporate records and of the corporate seal. S/he shall see that the seal is affixed to all documents to which
the affixing of the seal is duly authorized, and shall perform all other duties incident to the office of Secretary and such other
duties as may be assigned by the Board of Directors.
H. Treasurer: The Treasurer shall review and report upon the financial transactions made by the corporation.
1. Executive Committee: The Executive Committee shall be composed of the above officers and the Pastors of Asbury,Pearl
and Trinity United Methodist Churches. Any member of The Executive Committee may call a meeting. The Executive
Committee may act with the full authority of the Board of Directors when Board action is required between Board meetings,
so long as each member of the Executive Committee is given written notice of the Committee meeting at least three days in
advance or personally contacted by the Committee member calling the meeting. Minutes of the Executive Committee
meetings are to be provided to Board members at or prior to the next meeting.
by-laws revised 12/12/95 4
•
Article IX--Contracts, Loans, Checks, and Deposits
A. Contacts: The Board of Directors may authorize any officer or officers, agent or agents to negotiate, bid on, and enter into
any contract or execute and deliver any contract in the name of and on behalf of the corporation.
B. Loans: No loans or contracts of indebtedness shall be issued in the name of the corporation unless specifically authorized
by a resolution of the Board of Directors.
C. Checks: All checks, drafts, or other orders for payment of money, or any evidences of indebtedness issued in the name of
the corporation shall be signed by such officer,officers, and/or Executive Committee members and in such manner as shall
from time to time be determined by the Board of Directors.
D. Deposits: All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the
corporation in such banks, trust companies, or other depositories as the Board of Directors may select.
Article X--By-Laws Changes
These By-laws may be amended by a vote of two-thirds of the members at a meeting. All members must be informed
of the proposed changes in writing one month prior to the meeting in which by-laws changes are implemented.
by-laws revised 12/12/95 5-4
•
SUBRECIPIENT UNDERWRITING GUIDELINES
CITY OF OMAHA DEFERRED PAYMENT LOANS
Effective Date: February 12, 1997
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, Holy Name Affordable Housing Corporation,
United Ministries of Northeast Omaha,Inc.,and Omaha 100,Inc. 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.
In computing the DIR, installment debts extending ten months or more and all
revolving accounts shall be considered.
3. Deferred Payment Loan(DPL)- shall mean a loan of City funds made subject to the
terms, conditions and provisions of the loan agreement under which said loan is
made, which shall provide, inter-alia, that the DPL shall become due and payable
upon the sale or transfer of ownership of the property or portion thereof, or interest
therein by the Owner.
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.
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 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 mean a public or private non-profit agency, authority or
organization receiving CDBG or HOME Funds to undertake eligible activities.
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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 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.
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.
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o d
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.
H. CITIZENSHIP
Borrower must be a Citizen of the United States.
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.
- 4 -
•
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.
J. 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:\PLN1\4621.SAP
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�2</7'iv// L
Applicant Information
a. United Ministries of Northeast Omaha
b. David A. Porter, Executive Director
c. Incorporated in 1980
d. United Ministries is a community development corporation which focuses its
efforts of housing renewal/affordable housing, employment creation, education and
children's programs in the area bordered by Ames Avenue on the south, 42nd Street on
the west, Read Street on the north and the Missouri River on the east.
e. Since 1992 UMNEO has conducted an affordable housing effort which purchases
vacant houses, determines rehab work to be completed, hires local contractors to effect
the repairs, and identifies and prepares prospective owners for the houses. One house
was completed and sold in 1992. Four were sold in 1993. Seven were sold in 1994.
Twenty three were completed in 1995. Thirteen additional have been sold as of 7/15/96
which brings the total renovations for the corporation to 48. Over one million dollars in
employment contracts have been generated through this work. The goal for 1996 is for
30 completed renovations and sales to low income families.
f. UMNEO is a private, non-profit community development corporation. Its Board
of Directors provides mission and policy direction and oversight and directly supervises
the Executive Director. The Executive Director in turn oversees the daily business and
financial affairs of the Agency as well as supervises the remaining Agency staff. These
staff include a Program Director and Program Coordinators for the non-housing related
activities of UMNEO. The housing staff are the Bookkeeper, Housing Coordinator
(homeowner counselor) and Construction Coordinator.
g. The United Ministries Board of Directors is composed of up to 30 members.
These are nominated by the corporation's nominating committee and elected at its
November annual meeting. Members are selected according to the following guidelines
(as described in the agency by-laws): a total of 6 from the founding congregations, 3
from neighborhood organizations, 3 from the service area at large, 5 from supporting
organizations, and up to l0 ex-officio members from various supportive bodies.
h. Executive Director, full time
Housing Coordinator, full time
Construction Coordinator, full time
Bookkeeper, full time
Program Director, full time (salary paid by an external source)
Program Coordinator, full time
Apartment Manager, part time
II. Community Served
The community to be served by this renovation project is the primary service area of UMNEO as
well as the area adjacent to the south and west. This area is bounded by 48th Street on the west,
Read Street on the north, the city limits on the east, Ames Avenue on the south between 30th and
48th Streets and Lake Street on the south east of 30th Street. All but a portion of the northern
edge of this area is included in the City of Omaha's Low and Moderate income target area as
well as the Federal Enterprise Zone. The percent of people in poverty in these census tracts
range from 15 to 39.9% according to the 1995 City of Omaha Consolidated Plan.
The residents of this target area face a combination of serious problems. Principle among these
are under/unemployment, low supply of affordable housing which meets minimum dwelling
standards, and low levels of resident investment (home ownership) in the neighborhoods.
In response to the rising winter utility bills.of neighborhood residents, UMNEO developed a
weatherization cooperative in 1985. It became apparent that caulking, insulation and simple
repairs were simply not a sufficient answer to the deteriorating housing stock in the target area.
UMNEO formed a three year partnership with Omaha Habitat for Humanity. Together five
houses were renovated and sold to low income families in this targeted area(specifically all.
within a two block radius of 24th and Larimore Avenues).
Beginning in 1992 UMNEO began an affordable homeownership effort in which vacant houses
are purchased, rehab specifications are completed, local contractors are hired to effect the
repairs, and prospective owners are identified and prepared to purchase the houses. One house
was completed and sold in 1992. Four were sold in 1993. Seven were sold in 1994. Twenty
three were completed in 1995. Thirteen additional have been sold as of 7/15/96 which brings the
total renovations for the corporation to 48. Over one million dollars in employment contracts
have been generated through this work. The goal for 1996 is for 30 completed renovations and
sales to low income families.
f `
The other housing provider in this targeted area is the Holy Name Housing Corporation.
UMNEO has cooperated with Holy Name in a HOPE III project, however, each corporation
concentrated on their respective target area in such renovation projects. Holy Name does
construct new houses in UMNEO's target area in selected development areas.
An example of the effectiveness of partnerships between nonprofits and the City is the area
surrounding the new Monmouth Park subdivision. This neighborhood was severely depressed
prior to the combination of City demolitions, site prep, and subsidies, Holy Name's construction
of single family houses, and UMNEO's renovation of 23 houses to date. A new YMCA, health
clinic, and elementary school are obvious major factors as well. The neighborhood is still
distressed but is showing marked improvement.
III. The Project
This project will continue the above homeownership effort. That is, vacant homes will be
inspected and selectively purchased by United Ministries of Northeast Omaha during 1997.
Detailed specifications will be completed and a local general contractor selected to complete the
renovation. Prospective lower income homeowners will be screened, counseled and approved
for mortgage loans with which to purchase the homes.
UMNEO proposes to renovate 36 single family houses during 1997. 32 of these will be
purchased by families earning at or below 80% of the City median. 4 will be purchased by
families earning between 80% and 100% of the City median (in blighted areas). Given an
average rehab contract of$23,000/house (UMNEO's 1995 average) over$800,000 of
employment and material purchases will be created in north Omaha through this project.
There is a ready market for the newly renovated homes which United Ministries provides. The
UMNEO waiting list tends to remain at over 100 persons. (as of July 15th, 125 persons were on
the waiting list). Approximately 50 of these are qualified and actively involved in the loan
approval process at any given time. There unfortunately also remains a ready supply of vacant,
substandard houses in various pockets of the target area.
United Ministries of Northeast Omaha will continue as the developers of the project. A general
contractor will be selected for each vacant property on a competitive bidding basis. UMNEO
retains the ownership interest until the homes are sold to the new owners.
Specific responsibilities of involved parties are as in the current agreement between UMNEO
and the City:
a'
UMNEO
I_.O
Identifies homes in which it is interested in making a purchase offer.
Conducts thorough inspections of the property and prepares scopes of work to be completed.
Requests inspections of the properties by the City rehab inspector if still interested in the
properties.
Combines the inspection reports, estimates rehab costs and appraisal when complete and tenders
offers on the properties.
Secures purchase and construction financing,
Purchases the vacant properties (never displacing a resident!).
Prepares bidding documents, places each job out to bid and selects contractors.
Supervises the rehab contracts.
Affirmatively markets the properties and identifies prospective lower income buyers.
Pre-qualifies the prospective buyers, if approved then refers buyers to a financial institution for
permanent financing(Omaha 100).
Prepares and submits documentation to receive construction and/or second mortgage loans for
the property/owners.
Completes the renovation, obtains final inspections and approvals, conducts final walk-throughs
and sells the houses to the new buyers.
City
Insure that the property complies with all appropriate City codes and ordinances and with
Federal Section 8 Housing Quality Standards.
Process requests for payments based upon billings by UMNEO for:
any financing, legal, accounting or architectural costs associated with the rehab of
properties
costs associated with the acquisition of properties
acquisition costs for materials used in the rehab of such properties
costs incurred for labor associated with the rehab of target area properties
costs associated with utility hookups and site preparation as well as any demolition costs
associated with the rehab of the properties in the target area.
provide deferred payment loans(second deeds of trust)to qualified homebuyers in an
amount not to exceed $15,000 per renovated home.
UMNEO will repeat their responsibilities 36 times during the course of the contract, hence a
schedule of when tasks will be completed is not applicable.
As described above, UMNEO has been involved in this specific work since 1992 and has
renovated and sold 48 houses to date. The capacity of the corporation has increased through the
addition and experience of staff. 1996 is notable in that it is the year in which a professional
bookkeeper was added to complete the staff needs. The present staff of Executive Director,
Construction Coordinator,Housing Coordinator, and Bookkeeper are proving to be an efficient,
effective team. A high level of production, 30-50 houses per year, is both desirable in terms of
efficient use of time and necessary to maintain the income stream.
\-_..'
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0.
IV. Project Financing
Three pools of funds are necessary in order to complete this project: Acquisition/Construction
Financing, Permanent Financing, and Subsidy Funds. Following is a description of the status of
each.
Acquisition/Construction Financing
UMNEO financed its affordable housing effort during 1994. and 1995. primarily through a
$300,000 line of credit provided by the Mercy Loan Fund, a division of Mercy Housing, Inc. of
Denver Colorado. This line of credit is being renewed as of September 1, 1996. The CDBG
revolving loan pool is also utilized, up to $10,000 per house, as acquisition/construction
financing.
In order to meet the demands increased production has placed on this short term financing pool,
United Ministries is presently negotiating a renewal of a line of credit with American National
Bank. This $200,000 line is expected to be in place and utilized by August 15, 1996.
HUD financing has been utilized during 1994-1995 for acquisition of HUD foreclosures.
UMNEO will likely use the 203(k) financing as an additional source of purchase/renovation
funds during 1996.
These combined pools are more than adequate to meet the needs of 30-40 house renovations per
year.
Permanent Financing
The permanent homeowner loans are provided by Omaha 100. Omaha 100 seeks to increase
production and is prepared to provide mortgage loans to all of UMNEO's qualified buyers. Both
Norwest and First Bank have also expressed interest in providing permanent financing as well.
These funds are readily available given the second and third mortgages placed on each of the
properties.
Subsidy
UMNEO has utilized both CDBG funds and Federal Home Loan Bank Affordable Housing
Program funds as direct subsidy dollars. United Ministries is presently able to offer a $3,333
Federal Home Loan Bank subsidy per homeowner(for up to 30 homeowners)which is stretching
the CDBG Revolving Loan Fund. Thus we can reasonably anticipate renovating a minimum of
30 houses during 1996 rather than the 20 specified in its present agreement with the City of
Omaha. Assistance is primarily for homeowners who need no more than $10,000 of mortgage
subsidy
UMNEO proposes an increase in its CDBG revolving loan fund in 1997 to allow a similar
growth in production during 1997. Specifically, UMNEO requests an allocation of$360,000 in
CDBG funds for 1997, permitting the renovation and sale of 36 houses. UMNEO will also seek
other subsidy funds, from both the Federal Home Loan Bank and private foundations, in order to
increase production to a total of 45-50 houses per year.
The requested CDBG funds are the critical means through which this affordable housing
program takes place. It is no overstatement that the program would not take place without the
subsidy dollars. The Block Grant funds have great utility in this effort. The principle use of the
CDBG funds is deferred payment loans for homeowners. A secondary use is the reimbursement
of losses on houses once they are sold. It is simply not always possible to purchase and renovate
a house at the appraised market value, given the depressed appraisals in the lower income north
Omaha community. Finally, the CDBG dollars are a source of no-interest acquisition/renovation
funds which helps reduce the expense of renovation.
Personnel Descriptions
Executive Director
David A. Porter
United Ministries of Northeast Omaha, 1981 to present.
Executive Director since 1988.
Developed UMNEO's affordable housing program.
Offender Aid and Restoration of Allegheny County(Pittsburgh,PA), 1978-1981.
Student practicum turned employment-developed an agency which assisted youthful offenders to obtain jobs,
training or education.
B.S., The Pennsylvania State University, 1978
Housing Coordinator
Concie E. M. Justus
United Ministries of Northeast Omaha, 1992 to present.
Homeowner Counselor and bookkeeper from 1992-1995, full time as Counselor since March, 1996. Present
position involves prepurchase qualification and counseling of prospective homeowners, marketing of
properties, and management of apartments owned by the Agency.
Pearl United Methodist Church, Office Manager, 1991-1992
MidAmerica Communications, Field Liaison, 1984-1991
Construction Coordinator
John C. Stokke
United Ministries of Northeast Omaha, 1994 to present. Inspects and purchases vacant houses, prepares
specifications, recruits contractors,manages bidding process and selects and supervises contractors.
Owned and managed Stokke Roofing, 1992-1994.
Pelster Construction,managed framing and roofing crews, 1987-1992.
Real estate sales, CBS Realty, 1986-87.
Bookkeeper
Catherine VanDenburgh
United Ministries of Northeast Omaha, March 1996 to present. Maintains financial records and payroll of the
Agency. Prepares monthly reports and as needed.
Deloitte&Touche, Tax Staff, 1988-1996
U.S. Civil Service, Secretary, 1983-1988
Nebraska Furniture Mart, Secretary, 1977-1983
Personnel Descriptions
Executive Director
David A. Porter
United Ministries of Northeast Omaha, 1981 to present.
Executive Director since 1988.
Developed UMNEO's affordable housing program.
Offender Aid and Restoration of Allegheny County(Pittsburgh,PA), 1978-1981.
Student practicum turned employment-developed an agency which assisted youthful offenders to obtain jobs,
training or education.
B.S., The Pennsylvania State University, 1978
Housing Coordinator
Concie E.M. Justus
United Ministries of Northeast Omaha, 1992 to present.
Homeowner Counselor and bookkeeper from 1992-1995, full time as Counselor since March, 1996. Present
position involves prepurchase qualification and counseling of prospective homeowners, marketing of
properties, and management of apartments owned by the Agency.
Pearl United Methodist Church, Office Manager, 1991-1992
MidAmerica Communications,Field Liaison, 1984-1991
Construction Coordinator
John C. Stokke
United Ministries of Northeast Omaha, 1994 to present. Inspects and purchases vacant houses, prepares
specifications, recruits contractors,manages bidding process and selects and supervises contractors.
Owned and managed Stokke Roofing, 1992-1994.
Pelster Construction, managed framing and roofing crews, 1987-1992.
Real estate sales,CBS Realty, 1986-87.
Bookkeeper
Catherine VanDenburgh
United Ministries of Northeast Omaha,March 1996 to present. Maintains financial records and payroll of the
Agency. Prepares monthly reports and as needed.
Deloitte&Touche, Tax Staff, 1988-1996
U.S. Civil Service, Secretary, 1983-1988
Nebraska Furniture Mart, Secretary, 1977-1983
L-a:-
CITY OF OMAHA
AFFIRMATIVE MARKETING POLICY
AND MONITORING PROCEDURES
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 units because
of their race or ethnicity:
. know about the vacancies
. feel welcome to apply
• have the opportunity to rent 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, and
owners about its affirmative marketing policy and 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 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.
i t
• 4. Assessment of Actions •
The Owners' affirmative marketing efforts will be assessed by the. City to:
determine good faith efforts of Owners to affirmatively market
vacant units; 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 listed below of vacancies:
. Omaha Housing Authority •
540 South 27th Street
Omaha, NE 68105
. Chicano Awareness, Inca
4821 South 24th Street
Omaha, NE 68107
. Native American Community Development Corp.
2226 Leavenworth Street
Omaha, NE 68102 •
. Family Housing Advisory Services
2416 Lake Street . •
Omaha, NE 68111
. Urban League of Nebraska
3022 North 24th Street •
Omaha, NE 68111
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
initially occupied vacant units and complete a Tenant Survey Form, a
copy of which is attached and marked Exhibit 2.
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EXHIBIT 1
•
• RACE/GOMER FORM
Number of
Loan No.' Date Vacant Units
Owner Project Address
Person Completing Person's
This Report Phone No. Home:
Project Completion Date Work:
Female
Race/Ethnicity Head of
Family Monthly of Head of Household
Applicant Size Tnr_nme Household Yes/No
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Exhibit I
United Ministries of Northeast Omaha, Inc.
Deferred Payment Loan Determination Process
The prospective home purchaser in the United Ministries of Northeast Omaha, Inc.'s home
ownership program will proceed through the following loan approval process:
• Initial assessment by UMNEO 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 UMNEO 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
UMNEO 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 amount exceed $15,000.00.
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr May 20 19 97
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS,under Title II of the National Affordable Housing Act of 1990,the City
of Omaha annually receives a HOME Investment Partnerships Program entitlement for the purpose
of providing affordable housing opportunities for low income households; and,
WHEREAS, the United Ministries of Northeast Omaha, Inc. Target Area, an area
defined by Read Street on the North,Ames Avenue on the South,the Missouri River on the East, and
42nd Street on the West, is an area of predominately low and moderate income residents; and,
WHEREAS,the Omaha City Council,on December 3, 1996,by Resolution No. 3195,
approved the 1997 Consolidated Submission for Community Planning and Development Programs
which included the United Ministries of Northeast Omaha,Inc.Revolving Loan Fund for condemned
houses program; and,
WHEREAS, the United Ministries of Northeast Omaha, Inc. proposes to acquire,
rehabilitate vacant houses,and sell approximately ten houses during the term of the Agreement; and,
WHEREAS, the United Ministries of Northeast Omaha, Inc. 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 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 and rehabilitation of single family dwelling units in the United Ministries of Northeast
Omaha,Inc.Target Area.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember •
Adopted
City Clerk
ApprovedAV'h.
Mayor
-
c 25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr Mray...2.Q 19..9.7
PAGE 2
THAT,the attached Agreement,as recommended by the Mayor,between the City of
Omaha and the United Ministries of Northeast Omaha,Inc.,2319 Ogden Street, Omaha,Nebraska
68110,for a Revolving Loan Fund in the total amount of$100,000.00, comprised of FY 97 HOME
Funds,for the acquisition,rehabilitation,and sale of approximately ten formerly vacant single family
dwellings to lower-income households in the United Ministries of Northeast Omaha, Inc. Target
Area, is hereby approved. Funds in the amount of $100,000.00 shall be paid from the HOME
Program Fund No. 186, Organization 5014.
P:\PLN1\4627.SAP APPROVED AS TO RM:
/41 y/ 7
ASSISTANT CITY ATTORNEY
By
Council ember
Adopted
MAY 2 t99 �
it Clerl
Approved
Mayor
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