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HomeMy WebLinkAboutContractSTEELE HOUSE TOWNHOME DEVELOPMENTPROJECT GRANT BENEFICIARY AGREEMENT SALES AND USE TAXAFFORDABLE HOUSING FUND GRANT THIS AGREEMENT, datedfor reference purposes only asMarch 31, 2025,is by and between the City of Renton (the “City”), a Washington municipal corporation, and St. Stephen Housing Association (“SSHA”) (“Grantee”), a Washington State non-profit corporation and sets forth the terms and conditions under which the City will provide a grant to SSHA from the city’s sales and use tax revenue from 2021 to present. The City and the Granteeare referred to collectively in this Agreement as the “Parties.” Once fully executed by the Parties, this Agreement is effective as of the last date signed by both parties. RECITALS: WHEREAS,Renton adopted Ordinance No. 5983 (October 5, 2020) authorizing sales and use tax funds for housing and related services in accordance with RCW 82.14.530, as amended; and WHEREAS,RCW 82.14.530 authorizes, under specified circumstances, the imposition of a local sales and use tax that may not exceed one-tenth of one percent for: “(i) constructing or acquiring affordable housing, which may include emergency, transitional, and supportive housing and new units of affordable housing within an existing structure, and facilities providing housing-related services, or acquiring land for these purposes;” (RCW 84.14.530(2)(a)(i)); and WHEREAS,pursuant to RCW 82.14.530(2), the affordable housing and facilities providing housing-related programs constructed with the moneys collected from the sales and use tax may only be provided to persons within any of the following population groups whose income is at or below sixty percent (60%) of King County median income: persons with behavioral health disabilities; veterans; senior citizens; homeless (or at risk of being homeless), including families with children; unaccompanied homeless youth or young adults; persons with disabilities; or domestic violence survivors; and WHEREAS,SSHA’s project (“Steele House Townhome Development Project” or “Project”) is a new construction project which will help increase the available supply of affordable housingin Renton; and CAG-25-205 PAGE 2 OF 14 WHEREAS, Steele House Townhome Development Project is comprised of six (6) townhomes, comprised of no less than three (3) bedroom units for families experiencing homelessness or at risk of being homeless including survivors of domestic violence and those impacted by behavioral health disabilities; and WHEREAS, all six (6) townhomes will be reserved as rental housing opportunities to households that are eligible under RCW 82.14.530 and earn no more than sixty percent (60%) of the King County median income as established by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS,the City is authorized to award this Sales and Use Tax Grant in support of the Project pursuant to RCW 35.21.685. NOW, THEREFORE, in consideration of the mutual benefits and covenants herein referred to, and incorporating the language above in this Agreement, it is hereby agreed by and between the Parties as follows: AGREEMENT 1. Grant Amount.The total amount to be awarded to Grantee under the program is not to exceed $500,000.00 (five hundred thousand dollars) of sales and use tax revenue collected by the City pursuant to RCW 82.14.530 between January 1, 2021 and the date of execution of this Agreement,as a reimburseable sum according to the disbursement process noted below. Except as specifically provided herein, the Grantee shall be solely responsible for payment of any taxes imposed as a result of this Agreement. a.Award Disbursement. i. Disbursement: The award will be disbursed based on actual reimbursable expenses described in paragraph 4 of this Agreement. ii. Invoice: On a monthly, or no less than quarterly basis during any quarter during which reimburseable expenses are incurred, Grantee shall submit an invoice in a format acceptable to the City, including a description of what work has been performed, and supporting documentation including, but not limited to, invoices or reports showing completion of work for which reimbursement is sought. iii. No waiver: Payment for any reimbursement shall not constitute a waiver by the City of any remedies it may have for any breach of this Agreement by the Grantee. PAGE 3 OF 14 iv. If sufficient funds are not appropriated or allocated for payment underthis Agreement for any future fiscal period, the City shall not be obligated to make disbursements for amounts incurred after the end of the current fiscal year. No penalty or expense shall accrue to the City in the event this provision applies. b.Contingent Funding.Funding is contingent upon SSHA obtaining a Certificate of Occupancy by May 1, 2029, and ensuring that for a minimum period of fifty (50) years, the six (6) townhomes remain as affordable to households that are eligible under RCW 82.14.530 and earn no more than sixty percent (60%) AMI. c.Repayment of Funds; Recoupment. If any funds provided to Grantee were used in a manner that is not consistent or allowable as outlined in this Agreement, Grantee shall return funds to City in the amount determined to be ineligibleat the then-value of funds disbursed (e.g., 2035 value of $900,000.00 in 2025. Grantee further agrees that it is financially responsible for and will repay the City any and all indicated amounts following an audit exception(i.e., breakdown of internal controls that may result in failure to meet grant outcomes) which occurs due to Grantee’s failure, for any reason, to comply with the terms of this Agreement. This duty to repay the City shall not be diminished or extinguished by the termination of the Agreement. i. If the Certificate of Occupancy is not obtained byMay 1, 2029or the units subject to this Agreement, or units reserved for households per the terms of this Agreement for the entire period (at least 50 years), Grantee agreesto repay the entiredisbursement provided, plus interest, unless such interest is otherwise waived by the Renton City Council, upon receipt of repayment demandby the City of Renton. ii. In the event of repayment demand, the award disbursed shall bear interest at the rate of twelve percent (12%) per annum from the date of the execution of the Agreement. The repayment of the disbursement with interest shall not excuse or cure any default by Grantee under the Agreement. iii. If the interest rate specified is higher than the rate then permitted by law, the interest rate shall be decreased to the maximum legal interest rate then permitted by law. 2. Term.This Agreement shall be in effect from the date of mutual execution, or May 1, 2025, whichever is later and terminate fifty (50)years from the date of execution or May 1, 2075, whichever is later. This term may be extended by mutual written agreement as described in , or the Agreement may be earlier terminated according to the process and terms at paragraph 3. PAGE 4 OF 14 3. Termination. The City reserves the right to terminate this Agreementas follows: a. Termination for convenience. The City reserves the right to terminate this Agreement prior to disbursement of funds with thirty (30) days advance notification to SSHA. b. Termination for lack of appropriation or allocation of funds. The City reserves the right pursuant to 1.a.iv. of this Agreement. c. Termination for Breach. The City reserves the right to terminate this Agreement in the event SSHA fails to meet material terms of this Agreement during its term. d. Repayment. In the event of Termination after disbursement of any funds, such Termination will result in an immediate demand for all disbursed funds, with interest pursuant to 1.c.ii of this Agreement. 4. Scope of Work. Pursuant to Exhibit A, attached hereto, Grantee shall construct six (6) townhomes with no fewer than three (3) bedrooms within each unit. All units are reserved forhouseholds that are eligible under RCW 82.14.530 and with a household income not more than 60% of the King County median income; this reservation will be in place for the entire term of this Agreement. With respect to the Steele House Townhome Development Project, and for the entire term of the Agreement, Grantee agrees to: a. construct the Steele House Townhome Development Project substantially as presented to the City in Exhibit A – attached hereto and incorporated by reference (six (6)-unit townhomewith no fewer than three (3) bedrooms within each unit); and b. to the extent that Grant funds under this Agreement are used for construction, to comply with Washington state prevailing wage requirements for residential constructionfor the entire project (all 6units); and c. submit a copy of the Certificate of Occupancy for the Project not later than May1, 2029;and d. rent all residential dwelling units in the Project to populations eligible under RCW 82.14.530; and e. submit an annual written certification and reportto the CEDAdministrator identified in paragraph 11not later than May 31for the preceding calendar year including such information the City may deem necessary or useful, and at a minimum to include: i. Certification that Grantee has been in compliance with affordable housing requirements and other responsibilities described in this Agreement; and ii. Breakdown of rental units leased during the year; and iii. Household income for each dwelling unit during the year; and PAGE 5 OF 14 iv. The City will accept annual certification and reports in a form Grantee provides to regulatory agencies; and f. Execute and record restrictive covenant in a form acceptable to the Cityto maintain units as affordable under the terms of this Agreement. 5. Grantee Responsibilities. a. Grantee understands and agrees that funds provided under this Agreement may only be used in compliance with RMC 5-10 and RCW 82.14 and any other applicable provisions of law. b. The Grantee understands and acknowledges that providing false information on any documents submitted to the City or its designees as part of the Grantee’s participation in the Grant may constitute fraud, justify termination of this Agreement, trigger the Grantee’s obligation to return funds, and may be subject to civil and/or criminal penalties and/or sanctions. c.No Employee Relationship. The Grantee understands and acknowledges thatneither the Grantee nor any officer, employee or agent of the Grantee shall be considered to be an employee of the City, nor entitled to any benefits accorded City employees, by virtue of the services provided under this Agreement. The City shall not be responsible for assuming the duties of an employer with respect to the Grantee or any employee of the Grantee. d.Non-discrimination.During the performance of this Agreement, Grantee and its subcontractors shall comply with all federal and state nondiscrimination laws, including but not limited to, chapter 49.60 RCW, Washington’s Law Against Discrimination, and 42 U.S.C. 12101 et seq., the Americans with Disabilities Act (ADA). In the event of Grantee’s noncompliance or refusal to comply with any nondiscrimination law,regulation, or policy, this Agreement may be rescinded, canceled, or terminated in whole or in part. e. Insurance. SSHA shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with performance of the work hereunder by SSHA, their agents, representatives, employees or subcontractors. i. No Limitation: The maintenance of insurance by SSHA, as required by this Agreement, shall not be construed to limit the liability of SSHA to the coverage provided by such insurance, or otherwise limit Renton’s recourse to any remedy available at law or in equity. ii. SSHAshall secure and maintain: PAGE 6 OF 14 1. Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate for the Term of this Agreement. 2. Professional liability insurance, in the minimum amount of $1,000,000 for each occurrence, shall also be secured for any professional services being provided to Renton that are excluded in the commercial general liability insurance. 3. Automobile Liability insurance: With a minimum combined single limit for bodily injury and property damage of $1,000,000 for each accident. This is required of all SSHA and professional service providers where a vehicle will be used on the contract. Renton may request a copy of Consultant’ driving record abstract. 4. Workers’ compensation coverage, as required by the Industrial Insurance laws of the State of Washington, shall also be secured. 5. It is agreed that on SSHA’s commercial general liability policy, the City of Renton will be named as an Additional Insured on a non-contributory primary basis. Renton’s insurance policies shall not be a source for payment of any SSHA Contractor liability. 6. Subject to Renton’s review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to Renton before executing the work of this Agreement. 7. SSHA shall provide Renton with written notice of any policy cancellation, within two (2) business days of their receipt of such notice. 8. Termination: Notwithstanding any other provision of this Agreement, the failure of SSHA to comply with the above provisions of this section shall subject this Agreement to immediate termination without notice to any person in order to protect the public interest. 9. Subcontractors. SSHA shall ensure that each subcontractor of every tier obtain at a minimum the same insurance coverage and limits as stated herein for SSHA. 6. Scope of Eligible Expenditures: a. Grant funds awarded under this Agreement may only be used to pay or reimburse expenditures directly related to the construction of residential dwelling units of the Steele House Townhome Development Project. Specifically, expenses to be reimbursed may include Grantee-accepted invoices from the primary construction contractor dating from the time PAGE 7 OF 14 such contract was entered, which may pre-date the date of execution of this contract butin any casewere invoiced to Grantee not earlier than May 1, 2025. b. Grant funds awarded under this Agreement may be lent by Grantee to an entity in which Grantee retains sole management control (e.g., sole general partner in an LLC or sole partner in a Limited Partnership) for the purposes of the Scope of Work, so long as the entity complies with all terms of this Agreement. c. No grant funds awarded under this agreement shall be used to pay or reimburse costs for expenditures for which Grantee has received any other funding, whether state, federal or private in nature, for that same expense. 7. Location of Project. a.King County Tax Parcel Number: 7227801475 b.Legal Description: RENTON HIGHLANDS # 2 CORRECT PLAT 8. Records: Maintenance, Access, Disclosure a. Grantee shall maintain all records and accounts with respect to all matters covered by this Agreement, including personnel, property, financial, and programmatic records and documents sufficient to evidence compliance with RMC 5-10 and RCW 82.14 regarding the foregoing. At a minimum, retained records shall include: i. Notice of Grant Award; ii. A copy of this Agreement; iii. Correspondence regarding budget revision requests; iv. Copies of all invoices and reports submitted to the City of Renton for this project. b. These records shall be maintained for as long as may be required by applicable Washington State records retention laws, but in any case for a period of six (6) years after termination of this Agreement, whichever is later, to ensure proper accounting for all funds and compliance with the Agreement. c. If any litigation, claim or audit is started before the expiration of the six (6) year period provided in Section 5(b) above, the records shall be retained untilall litigation, claims, or audit findings involving the records have been resolved. a. The Cityor their authorized representative(s)shall have the right of access to records (electronic and otherwise) of Grantee in order to conduct audits or other investigations. PAGE 8 OF 14 b. Grantee acknowledges that records may be subject to disclosure under the Public Records Act, Ch. 42.56 RCW. i. To the full extent the City determines necessary to comply with the Washington State Public Records Act, Grantee shall make a due diligent search of all records in its possession or control relating to this Agreement and the Work, including, but not limited to, e-mail, correspondence, notes, saved telephone messages, recordings, photos, or drawings and provide them to the City for production. ii. In the event Grantee believes said records need to be protected from disclosure, it may, at Grantee’s own expense, seek judicial protection. Grantee shall indemnify, defend, and hold harmless the City for all costs, including attorneys’ fees, attendant to any claim or litigation related to a Public Records Act request for which Grantee has responsive records and for which Grantee has withheld records or information contained therein, or not provided them to the City in a timely manner. iii. Grantee shall produce for distribution any and all records responsive to the Public Records Act request in a timely manner, unless those records are protected by court order. The provisions of this section shall survive the expiration or termination of this Agreement. 6. Disclaimer by the City.The City expressly disclaims any and all responsibility or liability to Grantee or third persons for the actions of Grantee or third persons resulting in death, bodily injury, property damages, or any other losses resulting in any way from the performance of this Agreement or any other losses resulting in any way from the performance of the Agreement, or any subcontract thereto. This Agreement does not in any way establish an agency relationship between or among the City and/or Grantee. 7. Conflict of Interest. a. Grantee designees, agents, members, officers, employees, consultants, and any other public official who exercises or who has exercised any functions or responsibilities with respect to the Program during his or her tenure, or who is in a position to participate in a decision-making process or gain inside information with regard to the Program, are barred from any interest, direct or indirect, in any grant or proceeds of the Program, or benefit there from, which is part of this Agreement at any time during or after such person's tenure. b. The City’s Code of Ethics and Washington State law prohibit City employees from soliciting, accepting, or receiving any gift, gratuity or favor from any person, firm or corporation involved in a contract or transaction. PAGE 9 OF 14 To ensure compliance with the City’s Code of Ethics and state law, the Grantee shall not give a gift of any kind to City employees or officials. Grantee also confirms that Grantee does not have a business interest or a close family relationship with any City officer or employee who was, is, or will be involved in selecting the Grantee, negotiating or administering this Agreement, or evaluating the Grantee’s performance of the Work. 8. Waiver/Conflict of Terms. a. Any waiver by the Grantee or the City of the breach of any provision of this Agreement by the other party will not operate, or be construed, as a waiver of any subsequent breach by either party or prevent either party from thereafter enforcingany such provisions. b. In the event of any inconsistencies between Grantee proposals and this Agreement, the terms of this Agreement shall prevail. Any exhibits/attachments to this Agreement are incorporated by reference only to the extent of the purpose for which they are referenced within this Agreement. To the extent a Grantee prepared exhibit conflicts with the terms in the body of this Agreement or contains terms that are extraneous to the purpose for which it is referenced, the terms in the body of this Agreement shall prevail and the extraneous terms shall not be incorporated herein. 9. Modification. This Agreement may only be amended by written agreement signed by both Parties. 10.Notices. Any notice required under this Agreement will be in writing, addressed to the appropriate party at the address which appears below (as modified in writing from time to time by such party), and given personally, by registered or certified mail, return receipt requested, by facsimile or by nationally recognized overnight courier service. Time period for notices shall be deemed to have commenced upon the date of receipt, EXCEPT facsimile delivery will be deemed to have commenced on the first business day following transmission. Email and telephone may be used for purposes of administering the Agreement, but should not be used to give any formal notice required by the Agreement. CITY OF RENTON Matt Herrera, Planning Director City of Renton GRANTEE Ann Allen, Executive Director St. Stephen Housing Association 13055 SE 192nd St Renton, WA 98058 PAGE 10 OF 14 Department of Community & Economic Development 1055 South Grady Way Renton, WA 98057 (425) 430-6593 mherrera@rentonwa.gov (253) 638-9798 aallen@ststephenhousing.org 11.Successors and Assigns: Neither the City nor the Consultant shall assign, transfer or encumber any rights, duties or interests accruing from this Agreement without the written consent of the other. 12.Severability. In the event any term or condition of this Agreement or applicationthereof to any person or circumstances is held invalid, such invalidity shall not affect other terms, conditions, or applications of this Agreement that can be given effectwithout the invalid term, condition, or application. To this end, the terms and conditions of the Agreement are declared severable. 13.Governing Laws.Any lawsuit or legal action brought by any party to enforce or interpret this Agreement or any of its terms or covenants shall be brought in the King City Superior Court for the State of Washington at the Maleng Regional Justice Center in Kent, King City, Washington, or its replacement or successor. 14.Indemnification. To the maximum extent permitted by law,Grantee shall, at its cost and expense, protect, defend, indemnify, and hold harmless the City, its directors, officers, employees, and agents, from and against any and all demands, liabilities, causes of action, costs and expenses (including attorneys’ fees), claims, judgments, or awards of damages, arising out of or in any way resulting from the acts or omissions of Grantee, its directors, officers, employees, or agents, relating in any way to Grantee’s performance or non-performance under the Agreement. Grantee agrees that its obligations under this paragraph extend to any demands, liabilities, causes of action, or claims brought by, or on behalf of, any of its employees or agents. For this purpose,Grantee, by mutual negotiation, hereby waives, as respects the City only, any immunity that would otherwise be available against such claims under any industrial insurance act, including Title 51 RCW, other Worker’s Compensation act, disability benefit act, or other employee benefit act of any jurisdiction which would otherwise be applicable in the case of such claim. These indemnification obligations shall survive the termination of the Agreement. a.SSHA Agency Indemnification. SSHA represents to Renton that it has or will have adequate supervision and that all applicable rules, regulations, statutes and ordinances will be complied with in their entirety. SSHA PAGE 11 OF 14 agrees to indemnify, hold and defend Renton, its elected officials, officers, employees, agents and volunteers harmless from any and all claims, demands, losses, actions, violations and liabilities (including costs and all attorney’s fees) to or by any and all persons or entities, including without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or connected with the Agreement to the extent caused by the negligent acts, errors, or omissions of SSHA, its partners, shareholders, agents, employees, or by SSHA’sbreach of this Agreement. SSHAwaives any immunity that may be granted to it under the Washington State Industrial Insurance Act, Title 51 RCW. SSHA’sindemnification shall not be limited in any way by any limitation of the amount of damages, compensation, or benefits payable to or by any third-party under workers’ compensation acts, disability benefit acts, or any other benefits acts or federal, state or municipal benefits programs. b. SSHA agrees that it is as fully responsible to Renton for the acts and omissions of its subcontractors and their employees and agents, as it is for the acts and omissions of its own employees and agents. 15.Joint Drafting Effort. This Agreement shall be considered for all purposes as prepared by the joint efforts of the Parties and shall not be construed against one party or the other as a result of the preparation, substitution, submission or other event of negotiation, draftingor execution. 16.Third-Party Beneficiaries. Nothing in this Agreement is intended to, nor shall be construed to give any rights or benefits in the Agreement to anyone other than the Parties, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of the Parties and no one else. 17.Binding Effect. The Parties each bind themselves, their partners, successors, assigns, and legal representatives to the other party to this Agreement, and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of the Agreement. 18.Complete Agreement. This Agreement sets forth the complete expression of the agreement between the Parties, and any oral representations or understandings not incorporated herein are excluded. The Parties may execute this Agreement in any number of counterparts, each of which shall constitute an original, and all of which will together constitute this one Agreement. **SIGNATURE PAGE TO FOLLOW ** PAGE 12 OF 14 IN WITNESS WHEREOF, the Parties have voluntarily entered into this Agreement as of the date last signed by the Parties below. CITY OF RENTON By:_____________________________ GRANTEE By:____________________________ Armondo Pavone Mayor Ann Allen Executive Director _____________________________ Date _____________________________ Date Attest _____________________________ Jason A. Seth City Clerk Approved as to Legal Form By: __________________________ Shane Maloney City Attorney 5-5-20256/24/2025 Approved by Patrice Kent via email 4/28/2025 PAGE 13 OF 14 CITY OF RENTON STEELE HOUSE TOWNHOME DEVELOPMENT PROJECT ST. STEPHEN HOUSING ASSOCIATION/WAY BACK INN FOUNDATION EXHIBIT A PROJECT NARRATIVE AND BUDGET Project Title: Steele House Townhome Development Project Funding Start Date: May 1, 2025 (tentative) Address: 3001 NE 16th St. Renton Amount of requested funding: $500,000 Legal Description: RENTON HIGHLANDS # 2 CORRECT PLAT City Contact: Margarette Bravo, Planning Technician 425 430 6555/mbravo@rentonwa.gov SSHA Contact: Ann Allen, Executive Director (253) 638-9798/aallen@ststephenhousing.org Name of Grantee Signatory: Ann Allen, Executive Director-St. Stephen Housing Association 1.Project Narrative and Scope summary The Steele House Project is the planned building of six (6)townhomes comprised of three (3) bedroom units for families experiencing homelessness for permanent housing on existing owned property).. Property overview: The property is already owned by the project sponsor and currently a duplex is on the site. The address is 3001 NE 16th, Renton, 98056. The property was purchased in 2016. The existing structure is a 1940’s era duplex. The plan includes demolition of current structure. Phase 1 ESA has been completed.The neighborhood is characterized by a diverse mix of economic classes and races, reflecting the diversity of the families we intend to serve. The Steele House project is expected to have a positive impact on the surrounding community. By providing stable housing to families experiencing homelessness, we will contribute to the overall well-being of the neighborhood. 2. Goal of the project By addressing homelessness and providing stable housing, Steele House will help improve the quality of life for both the families we serve and the broader community. Larger three-bedroom units will be available to accommodate families with children PAGE 14 OF 14 and multigenerational households. To ensure the safety of at-risk families experiencing interpersonal violence, units will include attached enclosed garages. The project's focus on helping families through low-income housing onto long term permanent housing and breaking the cycle of poverty is a powerful strategy for promoting community integration. By addressing fundamental needs like economic stability and educational opportunities, the project empowers families to become active and contributing members of the broader community. 3.Cost and Timeline The property is owned by St. Stephen Housing Association (acquired through he merger with Way Back Inn). It is valued at $638,000 and SSHA has allocated an additional $500,000 for support for the operating cost of the facility. SSHAanticipates the total project cost to be approximately $3,000,000 for complete development and construction of the project. The $500,000 seed funding will cover the initial costs for final architectural design, submission for permit approval and the beginning stages of construction. SSHA committed to leveraging these funds in collaboration with other private and public partners to ensure that the project remains on budget and is completed on time. SSHA will also be pursuing both public and private funds to begin construction as funding becomes available, ideally by end of 2025 or early 2026. Budget Breakdown Task Estimated Budget 1. initial costs for final architectural design, submission for permit approval (Architecture design is about $50k and anticipated permits is approx. $50k. $100,000 2. Initial stages of construction ($25k demo and rest for site improvements needed for construction (e.g. Storm drainage, sewer line, water line, meter upgrade, sidewalk and driveway paving). $400,000 Total $500,000