HomeMy WebLinkAboutContractCAG-20-072
AFNTO4
Community and Economic Development Department
CITY OF RENTON
GENERAL FUND& DENSITY FEE AFFORDABLE RENTAL HOUSING AGREEMENT
This General Fund and Density Fee Affordable Housing Agreement ("Agreement") is dated
this"`, day of ) 2020. The parties ("Parties") to this agreement are the City of
Renton, a non-charter code city under RCW 35A, a municipal corporation of the State of
Washington, hereinafter referred to as "Renton" and Renton Housing Authority, a public
corporation of the State of Washington , hereinafter referred to as "RHA". Collectively,
Renton and RHA are the "Parties."
WITNESSETH:
WHEREAS Renton has provided General Fund and Density Fee funds to help support certain
projects that serve low and/or moderate income households and/or special-needs
populations; and
WHEREAS RHA's Sunset Oaks project is a new construction project which will help increase
the available supply of affordable housing in Renton; and
WHEREAS the project is funded by the federal low-income housing tax credit (LIHTC)
program and will offer rental housing opportunities to households earning no more than
80%of the King County median income as established by the U.S. Department of Housing
and Urban Development(HUD), given the average rent for all housing units will not exceed
the rate affordable for households with income at or below sixty percent (60%) of median
income;
WHEREAS Renton intends to provide this assistance pursuant to the authority granted by
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:
1. Project Summary: In an effort to help offer more rental housing opportunities to
qualifying households, the Parties agree that RHA shall use the Renton General Fund
and Density Fee funds described in Section 4 of this Agreement to help provide fifty-
nine (59) units of affordable rental housing to households earning no more than 80%
of the King County median income, where the average rent for all housing units does
not exceed the rate affordable for households with income at or below sixty percent
60%) of median income. The project also includes one (1) Common Area Unit for a
total of sixty (60) units. Project Exhibit A, "Scope of Work," is attached hereto and
incorporated herein by this reference.
2. Term. The Term of this Agreement shall be in effect as of the date of execution of this
Agreement or March 1, 2020,whichever is later, and terminate no later than March 1,
2023, or three years from the date of execution of the Agreement, whichever is later,
unless extended to a later date by written agreement of both Parties.
3. Termination. Prior to the expiration of the Term, this Agreement may be terminated
or suspended immediately,with or without cause,upon written notice by Renton. RHA
may cancel this Agreement only upon thirty(30) days' written notice to Renton. In the
event Renton terminates or suspends this Agreement, RHA will be entitled to receive
compensation for any approved costs incurred prior to the effective date of such
termination or suspension. The determination of the amount of any compensation to
be paid shall be made by the Administrator of the Community and Economic
Development Department, or any other City office, department or agency that shall
succeed to its functions with respect to this Agreement, or his or her authorized
designee. In the event of a dispute over the amount of compensation,the dispute shall
be resolved by the City's Chief Administrative Officer and RHA's Executive Director.
4. Compensation. The total amount of funds pursuant to this Agreement shall not exceed
Seven Hundred Thousand Dollars ($700,000), including Five Hundred Seventeen
Thousand Five Hundred Forty ($517,540) in General Fund funds and One Hundred
Eighty-Two Thousand Four Hundred Sixty Dollars($182,460) in Density Fee funds.
Subject to the additional requirements set forth in Exhibit A,disbursement will be made
no later than forty-five (45) days after receipt of the letter requesting disbursement
subject to the letter or documentation prerequisites noted in the Agreement. If Renton
objects to any portion of the letter or documentation, it shall notify RHA. Renton
reserves the option to disburse only that portion of funds that is consistent and not in
dispute concerning RHA letter, documentation or performance prerequisites. In that
event, the Parties will immediately make every effort to settle any disputed portion or
portions.
RHA may lend the funds provided by Renton to a limited partnership of which RHA is
the sole general partner so long as the limited partnership uses the funds for the
purposes described in Exhibit A and in compliance with the terms of this Agreement.
5. Independent Contractor. RHA and Renton agree that RHA is an independent contractor
with respect to the services provided pursuant to this Agreement. Nothing in this
Agreement shall be considered to create,and it is not the intent of the Parties to create,
an employer-employee relationship between the Parties hereto. Neither RHA nor any
employee or volunteer of RHA shall be entitled to any benefits or rights given to Renton
employees by virtue of the services provided under this Agreement. Renton shall not
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be responsible for withholding or otherwise deducting federal income tax or Social
Security or contributing to the State Industrial Insurance Program, or otherwise
assuming the duties of an employer with respect to RHA, or any employee or volunteer
of RHA. Industrial or any other insurance that is purchased for the benefit of Renton,
regardless of whether such may provide a secondary or incidental benefit to RHA, shall
not be deemed to convert this Agreement to an employment contract.
6. Agency Indemnification. RHA represents to Renton that it has or will have adequate
supervision for those participating in the project and that all applicable rules,
regulations, statutes and ordinances will be complied with in their entirety. RHA 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 RHA, its partners,
shareholders, agents, employees, or by RHA's breach of this Agreement. RHA waives
any immunity that may be granted to it under the Washington State Industrial
Insurance Act, Title 51 RCW. RHA's indemnification 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.
7. Discrimination Prohibited. In all of RHA's services, programs, or activities, and all of
RHA's hiring and employment made possible by or resulting from this Agreement there
shall be no discrimination by RHA or by RHA's employees, agents, subcontractors,
volunteers or representatives against any person because of age (except minimum age
and retirement provisions), sex, marital status, sexual orientation, race, creed, color,
national origin, honorably discharged veteran or military status, or the presence of any
sensory, mental, or physical disability, unless based upon a bona fide occupational
qualification in relationship to hiring and employment. Any material violation of this
provision shall be grounds for Renton to immediately terminate this Agreement.
8. Hold Harmless. Contractor shall indemnify, defend and hold harmless Renton, its
elected officials, officers,agents, employees and volunteers, from and against any and
all claims, losses or liability, or any portion of the same, including but not limited to
reasonable attorneys' fees, legal expenses and litigation costs, arising from injury or
death to persons, including injuries, sickness, disease or death of Contractor's own
employees, agents and volunteers, or damage to property caused by Contractor's
negligent act or omission, except for those acts caused by or resulting from a negligent
act or omission by Renton and its officers, agents, employees and volunteers.
Should a court of competent jurisdiction determine that this agreement is subject to
RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence
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relative to construction, alteration, improvement, etc., of structure or improvement
attached to real estate...)then, in the event of liability for damages arising out of bodily
injury to persons or damages to property caused by or resulting from the concurrent
negligence of the contractor and Renton, its officers, officials, employees and
volunteers, Contractor's liability shall be only to the extent of Contractor's negligence.
It is further specifically and expressly understood that the indemnification provided in
this Agreement constitute Contractor's waiver of immunity under the Industrial .
Insurance Act, RCW Title 51,solely for the purposes of this indemnification.The Parties
have mutually negotiated and agreed to this waiver.The provisions of this section shall
survive the expiration or termination of this Agreement.
9. Insurance. RHA 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 RHA, their agents,
representatives,employees or subcontractors.
No Limitation: The maintenance of insurance by RHA, as required by this Agreement,
shall not be construed to limit the liability of RHA to the coverage provided by such
insurance, or otherwise limit Renton's recourse to any remedy available at law or in
equity.
RHA shall secure and maintain:
a. 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.
b. 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.
c. 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
RHA and professional service providers where a vehicle will be used on the contract.
Renton may request a copy of Consultant' driving record abstract.
d. Workers' compensation coverage, as required by the Industrial Insurance laws of
the State of Washington, shall also be secured.
e. It is agreed that on RHA'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 RHA Contractor liability.
enc.(y,r: H Page 4 of 8
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f. 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.
g. RHA shall provide Renton with written notice of any policy cancellation,within two
2) business days of their receipt of such notice.
h. Termination: Notwithstanding any other provision of this Agreement, the failure of
Consultant 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.
i. Subcontractors. RHA shall ensure that each subcontractor of every tier obtain at a
minimum the same insurance coverage and limits as stated herein for RHA.
10. Subcontracts and Purchases.
Subcontract Defined. "Subcontract" shall mean any agreement between RHA and a
subcontractor or between subcontractors that is based on this Agreement, provided
that the term "subcontract" does not include the purchase of support services not
related to the subject matter of this Agreement, or supplies.
Writing Required: Any work or services assigned or subcontracted hereunder shall be
in writing. RHA 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.
11. Debarred Contractors: RHA shall not make any award to any contractor, which is
debarred, suspended or excluded from participation in federal assistance programs
under Executive Order 12549, entitled "Debarment and Suspension." The contractor
shall certify that neither the contractor nor any member of the contractor's
development team is debarred, suspended or otherwise ineligible to participate in
Federal Assistance programs under Executive Order 12549.
12. No Benefit to Owners and Developers of Assisted Housing: No agency, developer or
sponsor(or officer,employee, agent or consultant of the owner, developer or sponsor)
whether private, for profit or nonprofit [including a community housing development
organization (CHDO) when acting as an owner, developer or sponsor] may apply for or
obtain assisted housing in the project unless agreed to in advance in writing by the
Administrator of the Community and Economic Development Department,or any other
City office, department or agency that shall succeed to its functions with respect to this
Agreement, or his or her authorized designee. Nothing in this provision should be
interpreted to preclude a Renton officer, employee, agent or consultant from applying
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for or obtaining assisted housing under this agreement, so long as the person is not an
officer, employee, agent, consultant, contractor or subcontractor of RHA.
13. General Provisions.
a. Entire Agreement. This Agreement contains all of the agreements of the Parties
with respect to any matter covered or mentioned in this Agreement and no prior
agreements shall be effective for any purpose.
b. Modification. No provision of this Agreement may be amended or modified
except by written agreement signed by the Parties.
c. Full Force and Effect. Any provision of this Agreement which is declared invalid
or illegal shall in no way affect or invalidate any other provision hereof and such
other provisions shall remain in full force and effect.
d. Assignment. Neither RHA nor Renton shall have the right to transfer or assign,
in whole or in part,any or all of its obligations and rights hereunder without the
prior written consent of the other Party.
e. Successors in Interest. Subject to the foregoing subsection, the rights and
obligations of the Parties shall inure to the benefit of and may be binding upon
their respective successors in interest, heirs, and assigns.
f. No Waiver. Failure or delay of Renton to declare any breach or default
immediately upon occurrence shall not waive such breach or default. Failure of
Renton to declare one breach or default does not act as a waiver of Renton's
right to declare another breach or default.
g. Governing Law. This Agreement shall be made in and shall be governed by and
interpreted in accordance with the laws of the State of Washington.
h. Authority. Each individual executing this Agreement on behalf of Renton and
RHA represents and warrants that such individuals are duly authorized to
execute and deliver this Agreement on behalf of RHA or Renton.
i. Notices. Any notices required to be given by the Parties shall be delivered at
the addresses set forth below. Any notices may be delivered personally to the
addressee of the notice or may be deposited in the United States mail, postage
prepaid, to the address set forth below. Any notice so posted in the United
States mail shall be deemed received three (3)days after the date of mailing.
Written notice sent to Renton should be addressed as follows:
Chip Vincent, Administrator
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day
and year set forth above.
CITY OF RENTON RENTON H USING UTHORITY
By: /
I' By:
Ar ond Pavone Signature
Mayor
Mark Gropper
Name(print)
Exetuu+vat) ettor
Title
2LI-7U 03.M. 2dzd
Date Date
Attest
Jason A. Seth
City Clerk
Approved as to Legal Form
B
Shane Moloney
City Attorney
Page 8 of 8
City of Renton, Community& Economic Development Department
1055 South Grady Way
Renton,WA 98057-3232
Written notice sent to RHA should be addressed as follows:
Mark Gropper, Executive Director
Renton Housing Authority
2900 NE 10th St
Renton, WA 98056
j. Captions. The respective captions of the Sections of this Agreement are inserted
for convenience of reference only and shall not be deemed to modify or
otherwise affect any of the provisions of this Agreement.
k. Performance. Time is of the essence of this Agreement and each and all of its
provisions in which performance is a factor. Adherence to the completion dates
set forth in the description of the Services is essential to RHA's performance of
this Agreement.
I. Remedies Cumulative. Any remedies provided for under the terms of this
Agreement are not intended to be exclusive, but shall be cumulative with all
other remedies available to Renton at law, in equity,or by statues.
m. Counterparts. This Agreement may be executed in any number of counterparts,
which counterparts shall collectively constitute the entire Agreement.
n. Attorney Fees. In the event either of the Parties defaults on the performance
of any terms of this Agreement or either Party places the enforcement of this
Agreement in the hands of an attorney, or files a lawsuit, each Party shall pay
all its own attorneys'fees, costs and expenses.
o. Venue. The venue for any dispute related to this Agreement shall be Maleng
Regional Justice Center, Kent, King County, Washington.
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CITY OF RENTON
GENERAL FUND& DENSITY FEE AFFORDABLE RENTAL HOUSING AGREEMENT
PROJECT EXHIBIT A
SCOPE OF WORK
Start Date:
Project Title: Sunset Oaks 3/1/20201
City Contact: Mark Santos-Johnson, Economic Development Manager
Telephone: (425) 430-6584 End Date:
Fax: (425)430-7300 3/1/2023
E-mail: msantosjohnson@rentonwa.gov
RHA Contact: Mark Gropper, Executive Director
Telephone: 425-226-1850 x 223
E-mail: mrg@rentonhousing.org
1) Work Statement
Renton Housing Authority(hereinafter referred to as"RHA") shall utilize General Fund funds and
Density Fee funds to perform the activities specified below. Such services shall be provided in a
manner that fully complies with all applicable federal, state and local laws, statutes, ordinances,
rules and regulations, as are now in effect or may be hereafter amended.
2) Project Description
The Sunset Oaks project includes sixty (60) new apartment units in three (3) buildings. Five (5)
of the units are studio units, forty-four (44) units are one-bedroom units, and eleven (11) units
are two-bedroom units. The project will utilize income-averaging and consist of 23 units set aside
at 40 percent of the Area Median Income (AMI), 19 units set aside at 60 percent AMI, and 17
units set aside at 80 percent AMI and 1 Common Area Unit. RHA shall use Renton General Fund
and Density Fee funds to help design, develop, construct, and provide, for a minimum period of
thirty(30)years,affordable rental housing opportunities for the fifty-nine(59)units.As a project
funded by the federal low-income housing tax credit (LIHTC) program, income averaging is
permitted provided all units are affordable for households with income at or below eighty
percent (80%) of median income, given the average rent for all housing units does not exceed
the rate affordable for households with income at or below sixty percent (60%) of median
income. All City funds will be used to help pay for construction costs of the apartment buildings
as noted below.
The project is located on the 1.05-acre "node" parcel across the street from the Sunset
Neighborhood Park and between Glennwood Avenue NE and Harrington Avenue NE. The legal
description for the property is:
See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
c,,, A Page 1 of 4
PARCEL A
Parcel 5 of City of Renton Lot Line Adjustment No. LUA16-000132, recorded under
recording no. 20160603900008, in King County, Washington;
PARCEL B
Lots 6 and 11, Block 41, Corrected Plat of Renton Highlands No. 2, according to the plat
thereof recorded
in Volume 57 of Plats, Pages 92 through 96, inclusive, in King County, Washington.
Situate in the County of King, State of Washington
3) Compensation and Method of Payment
RHA shall apply the General Fund and Density Fee funds to the project in accordance with the
Line Item Budgets below. The total amount of the funds pursuant to this Exhibit shall not exceed
Seven Hundred Thousand Dollars ($700,000).
A. General Fund Funds
City of Renton Funds 517,540
Line Item Budget
Personnel Services(detail below)
Office or Operating Supplies
Architectural & Engineering 517,540
Construction Contracts
Communications
Travel and Training
Other(specify below):
Total
B. Density Fee Funds
City of Renton Funds 182,460
Line Item Budget
Personnel Services (detail below)
Office or Operating Supplies
Architectural & Engineering 5182,460
Construction Contracts
Communications
Travel and Training
Other(specify below): _
Total
r;;- Agreerr, Page 2 of 4
C. Invoicing
Criteria for Compensation. RHA may request up to$517,540 of the General Fund funds and up
to$182,460 of the Density Fee funds upon submittal of the inspection record demonstrating
the concrete footings of all buildings have passed final inspection.
Method of Payment. RHA will submit a letter requesting General Fund and/or Density Fee funds,
including copies of supporting documents, such as an architect and/or engineer's invoice, to:
Mark Santos-Johnson, Economic Development Manager
City of Renton, Department of Community& Economic Development
1055 S. Grady Way, 6th Floor
Renton,WA 98057
Promise to Repay: Funding is contingent upon RHA obtaining a Certificate of Occupancy by
March 1, 20232, and ensuring that for a minimum period of thirty (30) years, the fifty-nine (59)
units remain as affordable to households with income at or below eighty percent(80%)of median
income, and the average rent for all housing units does not exceed the rate affordable for
households with income at or below sixty percent (60%) of median income. RHA will provide a
copy of the Certificate of Occupancy for the apartment buildings to the City of Renton to "close
out" the contract. If the Certificate of Occupancy is not obtained by the deadline, or affordable
rental opportunities are not restricted to households at eighty percent (80%) of King County
median income or below, or the average rent for all housing units exceeds the rate affordable
for households with income at or below sixty percent (60%) of median income, or the units are
not used as affordable housing for a minimum period of thirty (30) years, RHA agrees to repay
the entire Seven Hundred Thousand Dollars ($700,000), with interest (unless otherwise waived
by the Renton City Council), upon receipt of repayment request by the City of Renton. The thirty-
year repayment provision related to affordable rental housing affordability shall survive the Term
of this Agreement. In the event of repayment, the Seven Hundred Thousand Dollars ($700,000)
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 Seven Hundred Thousand Dollars ($700,000) with
interest shall not excuse or cure any default by RHA under the Agreement. If the interest rate
specified in this Exhibit A 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.
4) Records
2 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
Page 3 of 4
A. Project Files
RNA shall maintain files for this project containing the following items:
1. Notice of Grant Award.
2. Motions, resolutions, or minutes documenting Board or Council actions.
3. A copy of this Scope of Work.
4. Correspondence regarding budget revision requests.
5. Copies of all invoices and reports submitted to the City of Renton for this project.
6. Bills for payment.
7. Copies of approved invoices and warrants.
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