HomeMy WebLinkAboutContractCAG—20—033CommunityandEconomicDevelopmentDepartmentCITYOFRENTONHOUSINGOPPORTUNITYFUND&DENSITYFEEAFFORDABLEHOUSINGAGREEMENTThisHousingOpportunityFundandDensityFeeAffordableHousingAgreement(“Agreement”)isdatedthisj_dayof2OZC’Theparties(“Parties”)tothisagreementaretheCityofRenton,anon-chartercodecityunderRCW35A,amunicipalcorporationoftheStateofWashington,hereinafterreferredtoas“Renton”andHomesteadCommunityLandTrust,aWashingtonnonprofitcorporation),hereinafterreferredtoas“Homestead”.Collectively,RentonandHomesteadarethe“Parties.”WITNESSETH:WHEREASRentonhasprovidedHousingOpportunityFund(“HOE”)fundstohelpsupportcertainprojectsthatservelowand/ormoderateincomehouseholdsand/orspecial-needspopulations;andWHEREASRentonhasprovidedDensityFeefundstohelpcompleteadeepgreenbuildingstandardaffordablehomeownershippilotproject;andWHEREASHomestead’sWillowcrestTownhomesprojectisanewconstructionprojectwhichwillhelpincreasetheavailablesupplyofaffordablehomeownershipinRenton;andWHEREAStheprojectwillofferaffordablehomeownershipopportunitiestohouseholdsearningnomorethan80%oftheKingCountymedianincomeasestablishedbytheU.S.DepartmentofHousingandUrbanDevelopment(HUD);NOW,THEREFORE,inconsiderationofthemutualbenefitsandcovenantshereinreferredto,andincorporatingthelanguageaboveinthisAgreement,itisherebyagreedbyandbetweenthePartiesasfollows:1.ProjectSummary:Inanefforttohelpoffermoreaffordablehomeownershipopportunitiestoqualifyinghouseholds,thePartiesagreethatHomesteadshalluseRentonHOEandDensityFeefundstohelpprovidetwelve(12)unitsofaffordablehomeownershiptohouseholdsearningnomorethan80%oftheKingCountymedianincome.ProjectExhibitA,“ScopeofWork,”isattachedheretoandincorporatedhereinbythisreference.2.Term.TheTermofthisAgreementshallbeineffectasofthedateofexecutionofthisAgreementorNovember1,2019,whicheverislater,andterminatenolaterthanNovember1,2020,orthreeyearsfromthedateofexecutionoftheAgreement,whicheverislater,unlessextendedtoalaterdatebywrittenagreementofbothParties.
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.
Homestead may cancel this Agreement only upon thirty (30) days' written notice to
Renton. In the event Renton terminates or suspends this Agreement, Homestead 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 Homestead's
Executive Director.
4. Compensation. The total amount of funds pursuant to this Agreement shall not exceed
Three Hundred Fifty-Seven Thousand Dollars ($357,000), including Twenty-Five
Thousand Dollars ($25,000) in HOF funds and Three Hundred Thirty-Two Thousand
Dollars ($332,000) 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 Homestead.
Renton reserves the option to disburse only that portion of HOF funds that is consistent
and not in dispute concerning Homestead letter, documentation or performance
prerequisites. In that event, the Parties will immediately make every effort to settle
any disputed portion or portions.
5. Independent Contractor. Homestead and Renton agree that Homestead 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 Homestead nor any employee or volunteer of Homestead shall be
entitled to any benefits or rights given to Renton employees by virtue of the services
provided under this Agreement. Renton shall not 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 Homestead, or any employee or volunteer of Homestead. 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 Homestead,'shall not be deemed to
convert this Agreement to an employment contract.
6. Agency Indemnification. Homestead represents to Renton that it has or will have
adequate supervision for those participating in the project and that all applicable rules,
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regulations, statutes and ordinances will be complied with in their entirety. Homestead
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 Homestead, its partners,
shareholders, agents, employees, or by Homestead's breach of this Agreement.
Homestead waives any immunity that may be granted to it under the Washington State
Industrial Insurance Act, Title 51 RCW. Homestead'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 Homestead's services, programs, or activities, and
. all of Homestead's hiring and employment,made possible by or resulting from this
Agreement there shall be no discrimination by Homestead or by Homestead'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. Insurance. Homestead 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 Homestead, their
agents, representatives, employees or subcontractors.
No Limitation: The maintenance of insurance by Homestead, as required by this
Agreement, shall not be construed to limit the liability of Homestead to the coverage
provided by such insurance, or otherwise limit Renton's recourse to any remedy
available at law or in equity.
Homestead shall obtain insurance of the types described below shall secure and
maintain the following insurance policies,and shall not cancel or suspend the insurance
policies identified below, except after twenty (20) calendar days' prior written notice
by certified-mail to the City of Renton:
a. 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 Consultant and professional service providers where a vehicle will be used
on the contract. Renton may request a copy of Consultant' driving record
abstract.
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b. Commercial General Liability Insurance: With the minimum amounts of
$1,000,000 for each occurrence/$2,000,000 aggregate throughout the duration
of this Agreement.
c. Professional Liability Insurance: With 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.
d. Workers' Compensation: As required by the Industrial Insurance laws of the
State of Washington, shall also be secured.
e. Renton as an Additional-Insured: Primary insurance with coverage for the City
of Renton. It is agreed that on Consultant' commercial general liability policy,
the City of Renton will be named as an Additional-Insured on a non-contributory
primary basis.
f. Verification of Coverage: 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. Renton's Insurance.The City of Renton's insurance,self-insurance, or insurance
pool coverage shall only cover the City of Renton and not contribute to
Consultant' coverage.
h. Review of Policy: Upon request, Consultant shall give Renton a full copy of the
insurance policy for its records and for the Renton City Attorney's or Risk
Manager's review. The policy may be reviewed and the value reassessed
annually.
i. 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.
j. Subcontractors. Homestead shall ensure that each subcontractor of every tier
obtain at a minimum the same insurance coverage and limits as stated herein
for Homestead.
9. Subcontracts and Purchases.
Subcontract Defined. "Subcontract" shall mean any agreement between Homestead
and a subcontractor or between subcontractors that is based on this Agreement,
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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. Homestead 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.
10. Debarred Contractors: Homestead 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.
11. 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
for or obtaining assisted housing under this agreement, so long as the person is not an
officer, employee, agent, consultant, contractor or subcontractor of Homestead.
12. 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 Homestead 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.
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•
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
Homestead represents and warrants that such individuals are duly authorized
to execute and deliver this Agreement on behalf of Homestead 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
City of Renton, Community& Economic Development Department
1055 South Grady Way
Renton, WA 98057-3232
Written notice sent to Homestead should be addressed as follows:
Kathleen Hosfeld, Executive Director
Homestead Community Land Trust
412 Maynard Avenue
Seattle, WA 98104-2917
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 Homestead's
performance of this Agreement.
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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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Willawcrest Town homes
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed the day
and year set forth above.
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Willowcrest Townhomes
CITY OF RENTON
HOUSING OPPORTUNITY FUND & DENSITY FEE AFFORDABLE HOUSING AGREEMENT
PROJECT EXHIBIT A
SCOPE OF WORK
Project Title: Willowcrest Townhomes Start Date:
11/1/20191
City Contact: Mark Santos-Johnson, Economic Development Manager
Telephone: (425) 430-6584 End Date:
Fax: (425)430-7300 11/1/2022
E-mail: msantosjohnson@rentonwa.gov
Homestead Contact: Kathleen Hosfeld, Executive Director
Telephone: 206-323-1227 x 113
E-mail: kathleen@homesteadclt.org
1) Work Statement
Homestead Community Land Trust(hereinafter referred to as"Homestead") shall utilize Housing
Opportunity Fund ("HOF")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 Willowcrest Townhomes project includes twelve (12) new townhouse units in three (3)
buildings. Nine (9) of the units are three-bedroom units and three (3) units are four-bedroom
units. Homestead shall use Renton HOF and Density Fee funds to help design,develop,construct,
and provide, for a minimum period of twenty (20) years, affordable homeownership
opportunities for the twelve (12) units to households earning no more than eighty percent(80%)
of the King County median income. All City funds will be used to help pay for construction costs
of the townhouse buildings as noted below.
The project is located at 1132 Edmonds Avenue NE, Renton, Washington. The legal description
for the property is:
The south half of the west half of the northwest quarter of the northwest quarter of the
northwest quarter of section 9, township 23 north, range 5 east, Willamette Meridian, in
King County Washington. Except the south 75 feet thereof;except the west 30 feet thereof
for Edmonds Avenue Northeast.
1 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
Housing Opportunity Fund Agreement-Exhibit A-Kirkland Avenue Townhomes Page 1 of 4
3) Compensation and Method of Payment
Homestead shall apply the HOF funds 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 Three Hundred Fifty-Seven Thousand Dollars ($357,000).
A. HOF Funds
City of Renton Funds $25,000
Line Item Budget
Personnel Services (detail below) $
Office or Operating Supplies $
Architectural & Engineering $25,000
Construction Contracts $
Communications $
Travel and Training $
Other(specify below): $
Total $25,000
B. Density Fee Funds
City of Renton Funds $332,000
Line Item Budget
Personnel Services (detail below) $
Office or Operating Supplies $
Architectural & Engineering S
Construction Contracts $332,000
Communications $
Travel and Training $
Other(specify below): $
Total $332,000
C. Invoicing
Criteria for Compensation. Beginning in 2018 Homestead engaged an architect and engineering
team, led by Third Place Design Coop,to design the Willowcrest Townhomes project. The design
and engineering work includes, but is not limited to, the deep green building standard
improvements (see below) to be paid for with Density Fee funds. As a result, Homestead may
request the Twenty-Five Thousand ($25,000) of HOF funds upon execution of the Agreement for
reimbursement of expenses associated with the design and engineering work related to the deep
green building standard improvements.
Housing Opportunity Fund Agreement—Exhibit A—Kirkland Avenue Townhomes Page 2 of 4
Homestead plans to complete the Willowcrest Townhomes project over approximately a twelve-
month period beginning in late-2019 or, if necessary, early-2020. For the Density Fee funds,
Homestead may request up to forty percent (40%) of the total Three Hundred Thirty-Two
Thousand Dollars ($332,000) on a quarterly basis for reimbursement of construction expenses
associated with the deep green building standard improvements. However, the actual amount
of the request and reimbursement needs to correspond to the architect's certified monthly
progress report for the project's construction lender, less the applicable percentage(s) and
amount(s) if any submitted previously to the City. For example,if the most recent progress report
for the second request for reimbursement shows that forty-five percent (45%) of the project's
construction has been completed and the first request for reimbursement was for ten percent
(10%), Homestead can request reimbursement for thirty-five percent (35%) of the Density Fee
funds, or One Hundred Sixteen Thousand and Two Hundred Dollars ($116,200).
The deep green building standard improvements to be paid for with Density Fee funds include:
• Windows- double pane- LowE, high SHGC
• Passive house standard insulation [seventy-five percent plus (75%+) over code]
• Passive house air sealing
• Heat recovery system
• Energy saving features like kill switches and vacancy sensors
• Exterior shading devices
• Solar panels for the roofs
• Domestic hot water pre-heat system
Method of Payment. Homestead will submit a letter requesting HOF and/or Density Fee funds,
including copies of supporting documents, such as an architect and/or engineer's invoice and/or
the most recent architect's certified monthly construction progress report, 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 Homestead obtaining a Certificate of Occupancy
by March 31, 20222, and ensuring that for a minimum period of twenty (20) years, the twelve
(12) units remain as affordable homeownership to households earning no more than 80%of the
King County median income. Homestead will provide a copy of the Certificate of Occupancy for
the townhome buildings to the City of Renton to "close out" the contract. If the Certificate of
Occupancy is not obtained by the deadline, or affordable homeownership opportunities are not
restricted to households at eighty percent(80%) of King County median income or below, or the
units are not used as affordable homeownership for a minimum period of twenty (20) years,
Homestead agrees to repay the entire Three Hundred Fifty-Seven Thousand Dollars ($357,000),
with interest (unless otherwise waived by the Renton City Council), upon receipt of repayment
request by the City of Renton. The twenty-year repayment provision related to affordable
2 See paragraph 2 of the Agreement for additional details regarding the Term of the Agreement.
Housing Opportunity Fund Agreement-Exhibit A-Kirkland Avenue Townhomes Page 3 of 4
homeownership affordability shall survive the Term of this Agreement. In the event of
repayment,the Three Hundred Fifty-Seven Thousand Dollars($357,000)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 Three Hundred Fifty-Seven Thousand Dollars ($357,000)with interest shall not
excuse or cure any default by Homestead 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
A. Project Files
Homestead 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.
8. Documentation of income eligibility for all homebuyers of the Willowcrest Townhomes
for a minimum of twenty (20) years.
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