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Contract Local Housing Assistance Program_Maria HouseCITY OF DUBUQUE, IOWA MEMORANDUM March 2, 2000 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Contract for Local Housing Assistance Program Award The Iowa Department of Economic Development has awarded the City of Dubuque $400,000 from the Local Housing Assistance Program. The Housing Trust Fund Committee recommends the commitment ofthe funds to the Maria House transitional housing project, and for assistance to developers for additional single room occupancy housing. Housing Services Manager David Harris is recommending that the City Council authorize the Mayor to execute the contract with the Iowa Department of Economic Development for the program. I respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/dd Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager Housing Services Manager David Harris CITY OF DUBUQUE, IOWA MEMORANDUM To: Mike Van Milligen, City Manager From: David Harris, Housing Services Department Re: Contract for Local Housing Assistance Program award Introduction The purpose of this memorandum is to request the City Council to authorize the Mayor's execution of a contract regarding an award received /Tom the Iowa Department of Economic Development. Discussion The Housing Department's application to IDED, for a Local Housing Assistance Program award, has been approved, in the amount of$400 000. With this grant, the Housing Trust Fund Committee will recommend conunitrnent offunds to the Maria House transitional housing project; and for assistance to developers of additional single room occupancy (SRO) housing, in response to a request-for-proposals published last month. Action Step The action requested of the Council is to authorize the Mayor to execute the attached contract, with the Iowa Department of Economic Development, for receipt of a Local Housing Assistance Program award. SUBSTITUTE W 9NENDOR UPDATE FORM (Please print or type except for signature) I;~rder for the State of Iowa to pay you the amount that is due to you and to comply with the IRS regulations on reporting these payments, we are re uestin the f01l0win information. Failure to rovide this information will result in withholdin of a ment. BOX A BOXB Are you/your business: YES NO Is your business: YES NO Corporation [C] Partnership [PI Estate or Trust [E] Public Service Corp [U] Governmeut [G] 1L- Other [0] Individual [I] .Ã- Or Sole Proprietorship [S] ~ If the answer to both was no, please complete Box B If yon answered yes to either item, please provide your Social Security number: Please explain City of Dubuque, Iowa ILUI AND Please provide us with your Federal Employer Identification Number Complete the Name and Address below: Last Name: 1412161lQJ....Qj141519161 AND I I Complete the Name and Address below: Firm: First Name IMIU I CI I IT I YI 10 IF I IDIUIBIUIOIUIEI I I Doing Business As: IHIOIUISIIINIGI ISIEIRIVIIICIEISI Doing Business As: Address: Address: LI I I 1118 1 015 I Address: CIEINITIRIAILI I AIV lEI Address: I 1 1 I City: I I I I City: IDIUIBIUIOIUIEI State: I 1 Zip: 15121010111 I I 1 I State: Zip: I I I I I I I I I I ~ LLJ CERTIFICATION MUST BE SIGNED BY VENDOR Certification-Under penalties of perjury, I certifY that: (I) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and (2) I am not subject to backup witholding because: (a) I am exempt from backup witholding, or (b) I have not been notified by the Internal Revenue Service (IRS) tha I am subject to backup witholding as a result of a failure to report a1l interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup witholding. Si~nature: I Date: FOR OFFICE USE ONLY (Refer to Procedure 270.450 for more details) I From: Dept. Contact _Add - Change (Include vendor code and changes only) - Delete Reason Added For Purchasing _Yes _No lOWA DEPARTMENT OF ECONOMIC DEVELOPMENT LHAP AWARD AGREEMENT RECIPIENT: LHAP NUMBER: EFFECTIVE DATE: TYPE OF AWARD: TOTAL AWARD AMOUNT: GRANT AMOUNT (if any): LOAN AMOUNT (if any): LOAN TERM INTEREST RATE FORGIVABLE LOAN AMOUNT (if any): FORGIVABLE LOAN TERM PROJECT COMPLETION DATE AGREEMENT EXPIRATION DATE: Dubnque OO-LHAP-073 January 19, 2000 Grant $250,000 $250,000 $ 0 years 0.00% $ 0 years January 31, 2002 January 31, 2002 '.-rHIS ("LHAP") AGREEMENT is made by and between the lOW A DEPARTMENT OF ECONOMIC DEVELOPMENT, 200 East Grand Avenue, Des Moines, Iowa 50309 ("Department" or "IDEO"), and Dubuque ("Recipient"). The Department desires to make an award in the form stated above to the Recipient and the Recipient desires to accept this award, all upon the terms and conditions set forth in this Agreement. THEREFORE, in consideration of the mutual promises contained in this Agreement and other good and valuable consideration, it is agreed as follows: ARTICLE 1 DEFINITIONS As used in this Agreement, the following terms shall apply: 1.1 AGREEMENT EXPIRATION DATE. "Agreement Expiration Date" means the date the Agreement ceases to be in force and effect. The Agreement expires upon the occurrence of one of the following: a) the Loan/Forgivable Loan is repaid in full or required part, including accrued interest, court costs and any penalties; b) the Agreement is tenninated by the Department due to any default under Article 10; c) no disbursement ofLHAP funds has occurred within the twenty-four months immediately following the Effective Date; or d) if the Agreement includes only a Grant and/or a Forgivable Loan, at the Project Completion Date. 1,2 EFFECTIVE DATE. "Effective Date" means the date stated above on which the terms of this contract become in force and effect. 1.3 FORGIVABLE LOAN. "Forgivable loan" means an award made by the Department to the Recipient for which repayment is eliminated in part or entirely if the Recipient satisfies the tenns of this Agreement as described in Article SA. IA GRANT. "Grant" means an award of assistance, with the fulfillment of the conditions of the award, where repayment of funds is not required. 1.5 LOAN. "Loan" means funds advanced by the Department to the Recipient of which full repayment is expected. 1.6 LOAN AGREEMENT or AGREEMENT. "Loan Agreement" or "Agreement" means this document, the Project budget and all of the notes, leases, assignments, mortgages, and similar documents referred to in this document and all other instruments or documents executed by the Recipient or otherwise required in connection with this document, including but not limited to the following: a. Exhibit "A", "LHAP Application" b. Exhibit "B", "Promissory Note" - not applicable c. Exhibit "C", "Award Letter" d. Exhibit "0", "Program Description and Budget" I:"",; ::::', ,',: -^~"~"'~ ~-:'¡ELCPMM í, ( ::: LOaD ['. , - CC' ..:U::ny ii,J! .:;"C,:'::~c:':;:T LHAP.ContractNumber: 00-LHAP-073 ". Page20fl0 1.7 PROJECT. "Project" means the detailed description of the work, services, and other obligations to be performed or accomplished by the Recipient as described in the Agreement, Exhibit 0 - Program Description and Budget, and the LHAP application approved by the Department (Exhibit A). 1.8 PROJECT COMPLETION DATE. "Project Completion Date" means the date by which the Project tasks shall have been fully accomplished as stated above. ARTICLE 2 FUNDING 2.1 FUNDING SOURCE. The source of funding for the award is an appropriation by the State legislature for the LHAP Program established under the 1999 Iowa Code, Sections 15.351-15.354. 2.2 RECEIPT OF FUNDS. All payments under this Agreement are subject to receipt by the Department of sufficient State funds for the LHAP program. Any termination, reduction or delay of LHAP funds to the Department shall, at the option of the Department, result in the termination, reduction or delay ofLHAP funds to the Recipient. 2.3 PRIOR COSTS. No expenditures made prior to the Effective Date may be included as Project costs for the purposes of this AgIlê'ment. 2.4 DISBURSEMENT OF LESS THAN THE TOTAL AWARD AMOUNT, If substantial progress toward work activities as specified in the Agreement, Exhibit D - Program Description and Budget, has not been made within one hundred eighty (180) days of the Effective Date, then the Department shall be under no obligation for further disbursement. The Recipient shall be obligated to the extent of award proceeds received prior to that date. 2.5 COST VARIATION. a) In the event that the total Project cost is less than the amount specified in the Agreement, Exhibit 0, Program Description and Budget, the LHAP participation shall be reduced at the same ratio to the total project cost reduction as the ratio of the LHAP funds to the total amount of funds provided by the Recipient and all funding sources requiring a proportional reduction of their financial contribution to the Project. Any disbursed excess above the reduced LHAP participation amount shall be returned innnediately to the Department. b) In the event that the total Project cost is greater than the amount specified in the Agreement, Exhibit 0, Program Description and Budget, the Department shall, upon request, consider increasing the LHAP participation in the same ratio to the total increase in project cost as the ratio of the LHAP funds to the total amount of funds provided by the Recipient and all other funding sources able and willing to offer the Project an increase of funds. The consideration of an increase of LHAP funds for a Project shall be subject to availability of funds, determination of reasonable and allowable costs, and all other applicable program rules. c) The Recipient may request the Department to increase the LHAP participation to an amount that is higher than the proportional ratio. The Department may permit such a higher increase if, in the Department's judgement, the Recipient has demonstrated financial hardship. ARTICLE 3 TERMS OF GRANT 3.1 GRANT. The Department agrees to make a Grant in the amount first stated herein to the Recipient to assist in financing the Project. 3.2 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the Recipient by the Department for any item of work or service shall conform to the budget as presented in Agreement Exhibit 0 - Program Description and Budget. It is further understood and agreed that the total of all payments to the Recipient by the Department for all work and services required under this Contract shall not exceed the Award Amount unless modified by written amendment of this Contract. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02109/00 LHÞtP Contract Number: 00-LHAP-073 -. Page3 ofiO 3.3 TIME OF PERFORMANCE. The services of the Recipient are to commence as of the Effective Date and shall be completed on or before the Agreement Expiration Date. ARTICLE 4 TERMS OF LOAN 4.1 LOAN. The Department agrees to make a Loan in the amount and with the terms first stated in this agreement to the Recipient to assist in the fmancing of the Project. Interest begins accruing on the date of disbursement of funds. 4.2 PROMISSORY NOTES. The obligation to repay the Loan portion of this Agreement, if any, shall be evidenced by a Promissory Note(s) executed by the Recipient. 4.3 OTHER TERMS. a). Funds will be used by the Recipient for activities described in Exhibit 0, Program Description and Budget, b). Reserved. 4.4 PREPAYMENT. The outstanding principal and accrued interest on this Loan or any part thereof, may be prepaid in part or iltfull at any time without penalty, 4.5 ACCELERATION UPON DEFAULT. If there is a failure to pay any installment of principal and interest when due, or only a portion is paid, or in the event of any other umemedied default under this Loan, the Department may declare the entire unpaid principal and all accrued interest immediately due and payable. 4.6 RECORDING. The Recipient shall be responsible for any fees necessary to properly record in the appropriate office of the Recorder of Deeds and/or the Secretary of State any mortgage, security agreement, financing statement or similar document required by the Department under the Agreement. 4.7 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the Recipient by the Department for any item of work or service sha1l conform to the budget as presented in Agreement Exhibit 0 - Program Description and Budget. It is further understood and agreed that the total of all payments to the Recipient by the Department for all work and services required under this Contract shall not exceed the A ward Amount unless modified by written amendment of this Contract. ARTICLE 5 TERMS OF FORGIVABLE LOAN 5.1 FORGIVABLE LOAN. The Department agrees to award a Forgivable Loan in the amount first stated in this agreement to assist in the financing of the Project. 5.2 PROMISSORY NOTES. The obligation to repay the Loan portion of this Agreement, if any, shall be evidenced by a Property Lien(s) executed by the Recipient. 5.3 OTHER TERMS. a). Funds will be used by the Recipient for activities described in Exhibit 0, Program Description and Budget, b). Reserved. 5.4 FORGIVABLE LOAN REPAYMENT OR WAIVER. If the award includes a Forgivable loan, the Department will, in its sole discretion, determine if the Recipient has satisfied the terms of this Agreement. If the Department determines that the Recipient has satisfied said terms, then repayment of the Forgivable loan shall be permanently waived. Should the Department determine that the Recipient has not satisfied the terms of this Agreement, or has operated in a manner substantially inconsistent with the Application under which the terms of the award was made, the Recipient may be required to repay all or part of the Forgivable loan funds, Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 LHÂR Contract Number: 00-LHAP-073 . Page40flO 5.5 RECORDING. The Recipient shall be responsible for any fees necessary to properly record in the appropriate office of the Recorder of Deeds and/or the Secretary of State any mortgage, security agreement, financing statement or similar document required by the Department under the Agreement. 5.6 MAXIMUM PAYMENTS. It is expressly understood and agreed that the maximum amounts to be paid to the Recipient by the Department for any item of work or service shall conform to the budget as presented in Agreement Exhibit 0 - Program Description and Budget. It is further understood and agreed that the total of all payments to the Recipient by the Department for all work and services required under this Contract shall not exceed the A ward Amount unless modified by written amendment of this Contract. ARTICLE 6 CONDITIONS TO DISBURSEMENT OF FUNDS Unless and until the following conditions have been satisfied, the Department shall be under no obligation to disburse to the Recipient any amounts under this Agreement: 6.1 GRANT CONTRACT EXECUTED. The Grant Contract shall have been properly executed and, where required, acknowledged. -~ 6.2 ADMINISTRATIVE PLAN. The Recipient shall establish a written Administrative Plan that is consistent with the approved application and in compliance with LHAP requirements. The release of LHAP funds shall be contingent upon the Department's receipt and Department approval of the Administrative Plan. Failure to secure Department approval ofthe Administrative Plan within ninety (90) days of contract issuance shall be grounds for termination of this agreement. 6.3 FINANCIAL COMMITMENTS. The Recipient shall secure all other financial commitments necessary to begin the project. Failure to secure and submit documentation of such commitments to the Department within ninety (90) days of contract issuance shall be grounds for termination of this agreement. ARTICLE 7 REPRESENTATIONS AND WARRANTIES OF RECIPIENT To induce the Department to make the Award referred to in this Agreement, the Recipient represents, covenants and warrants that: 7.1 AUTHORITY. The Recipient is duly organized and validly existing under the laws of the State and is in good standing, and has complied with all applicable laws of the State ofIowa. The Recipient is duly authorized and empowered to execute and deliver the Agreement. All action on the part of the Recipient, such as appropriate resolution of its goveming body for the execution and delivery of the Agreement, has been effectively taken. 7.2 FINANCIAL INFORMATION. All financial statements and related materials conceming the Recipient and the Project provided to the Department are true and correct in all material respects and completely and accurately represent the subject matter thereof as of the effective date of the statements and related materials, and no material adverse change has occurred since that date. 7.3 APPLICATION. The contents of the application/Recipient plan submitted by the Recipient to the Department for LHAP funding is a complete and accurate representation of the Recipient and the Project as of the date of submission and there has been no material adverse change in the organization, operation, Recipient prospects, fixed properties, key personnel or project plan of the Recipient since the date the Recipient submitted its LHAP application to the Department. 7.4 CLAIMS AND PROCEEDINGS. There are no actions, lawsuits or proceedings pending or, to the knowledge of the Recipient, threatened against the Recipient affecting in any manner whatsoever its right to execute the Agreement or the ability of the Recipient to make the payments required under the agreement, or to otherwise comply with the obligations of the Recipient contained under the Agreement. There are no actions, lawsuits or proceedings at law or in equity, or before any governmental or administrative authority pending or, to the knowledge of the Recipient, threatened against or affecting the Recipient or any property or collateral pledged as security for the Loan. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 LHA'I>. Contract Number: OO-LHAP-O73 '. Page50flO 7.5 EFFECTIVE DATE. The covenants, warranties and representations of this Article are made as of the date of this Agreement and shall be deemed to be renewed and restated by the Recipient at the time of each advance or request for disbursement of funds. ARTICLE 8 COVENAJ"ITS OF RECIPIENT 8.1 AFFIRMATIVE COVENANTS. Until the Agreement Expiration Date the terms of this Agreement are fulfilled, the Recipient covenants to IDEO that: (a) PROJECT WORK AND SERVICES. The Recipient shall complete the work and services detailed in its LHAP application, Exhibit A of this Agreement, and Exhibit D - Program Description and Budget. (b) RECORDS AND ACCOUNTS. The Recipient shall maintain books, records, documents and other evidence pertaining to all costs and expenses incurred and revenues received under this Agreement concerning the project, in sufficient detail to reflect all costs, direct and indirect, oflabor, materials, equipment, supplies, services and other costs and expenses of whatever nature, for which payment is claimed under this Agreement, The Recipient shall retain all records for a period ofthree (3) years from the Agreement Expiration Date. -,.. (c) ACCESS TO RECORDSIINSPECTIONS. The Recipient shall, without prior notice and at any time (during normal Recipient hours), pennit the Department, its representatives or the State Auditor to examine, audit and/or copy (I) any plans and work details pertaining to the Project, (ii) all of the Recipient' books, records and accounts, and (iii) all other documentation or materials related to this Agreement; the Recipient shall provide proper facilities for making such examination and/or inspection. (d) USE OF FUNDS. The Recipient shall expend funds received under this Agreement only for the purposes and activities described in its LHAP Application, Exhibit A of this Agreement, and Exhibit 0, Program Description and Budget (e) DOCUMENTATION. The Recipient shall deliver to the IDEO, upon request, (i) copies of all contracts or agreements relating to the Project, (ii) invoices, receipts, statements or vouchers relating to the Project, (iii) a list of all unpaid bills for labor and materials in connection with the Project, (iv) budgets and revisions showing estimated Project costs and funds required at any given time to complete and pay for the Project, and (v) current and year-to- date operating statements, including but not limited to a Profit and Loss and Balance Sheet. (f) NOTICE OF PROCEEDINGS. The Recipient shall promptly notify IDEO of the initiation of any claims, lawsuits, bankruptcy proceedings or other proceedings brought against the Recipient which would adversely impact the project, including, but not limited to, any proceedings to assert or enforce liens against collateral securing the Loan. (g) REPORTS. The Recipient shall prepare, sign and submit the requests and reports as specified below in the form and content specified by the Department. The requests and reports shall be submitted to the Department by the 15'h of the month when due, and for final reports, within sixty days after the Project Completion Date. The Recipient shall review all reimbursement requests and verify that claimed expenditures are allowable costs. The Recipient shall maintain documentation adequate to support the claimed costs. 1.) Project financial statements, including an income, expense, and program income statement covering the period of the project. Project financial statements must be received by the Department within sixty (60) days following the contract expiration date. 2.) Quarterly Local Housing Assistance Program Performance Report. 3.) Final Payment Voucher. 4.) Final Performance Report, Contract Prepared by: Donna Grgnrich LHAP Contract Format Approved 02/09/00 LHÁF Contract Number: OO-LHAP-O73 . Page 6 ofiO The Department reserves the right to require more frequent submission of any of the above reports if, in the opinion of the Department, more frequent submissions would help improve the Recipient's project performance. (h) NOTICE OF RECIPIENT CHANGES. The Recipient shall provide prompt advance notice to the Department of any proposed change in the Recipient ownership, structure or control which would materially affect the Project. (i) NOTICE OF MEETINGS. The Recipient shall notify the Department at least ten (10) working days in advance of all meetings of its governing body at which the subject matter of this Agreement or Project is proposed to be discussed. The Recipient shall provide the Department with copies of the agenda and minutes of such meetings and expressly agrees that a representative of the Department has a right to attend any and all such meetings for the purposes of the discussion of the Project and the Loan and/or Forgivable Loan. U) MAINTENANCE OF PROJECT PROPERTY AND INSURANCE. The Recipient shall maintain the Project property in good repair and condition, ordinary wear and tear excepted, and shall not suffer or commit waste or damage upon the Project property. The Recipient shall pay for and maintain insurance against loss or damage by fire, tornado, and other hazards, casualties, and contingencies and all risks from time to time included under "extended coverage" policies on all structures financed by the project. This insurance shall be in an amount not less than the full insurable value of the Project property. The Recipient shall name the Department as a mortgagee and/or an additional loss payee as appropriate and submit copies of the policies to the Department. .", (k) INDEMNIFICATION. The Recipient shall indemnify and hold harmless the Department, its officers and employees, from and against any and all losses, except those losses incurred by the Department resulting from willful misconduct or negligence on its or their part. (I) PROJECT FEES. The Recipient shall promptly pay all appraisal, survey, recording, title, license, permit and other fees and expenses incurred incident to the project funded by this Agreement. (m) INTEREST AND SURPLUS PROCEEDS. The Recipient shall return all unexpended Award proceeds and interest accrued on Loan/Forgivable Loan proceeds to the Department within thirty (30) days after the Project Completion Date. 8.2 NEGATIVE COVENANTS. So long as the Recipient is indebted to the Department, the Recipient shall not, without prior written disclosure to the Department and prior written consent of the Department (unless Department prior approval is expressly waived below), directly or indirectly: (a) RECIPIENT'S INTEREST. Assign, waive or transfer any of Recipient's rights, powers, duties or obligations under this Agreement. (b) PROPERTY/COLLATERAL. Sell, transfer, convey, assign, encumber or otherwise dispose of any of the real property or other collateral securing the Loan/Forgivable Loan. (c) RESTRICTIONS, Place or permit any restrictions, covenants or any similar limitations on the real property and/or other collateral securing the Loan/Forgivable Loan. (d) REMOVAL OF COLLATERAL. Remove from the Project site or the State all or any part of the collateral securing the Loan/Forgivable Loan. (e) RECIPIENT OWNERSHIP. Materially change in the ownerslrip, structure, or control of the Recipient affecting the Project, including but not limited to, entering into any merger or consolidation with any person, firm or corporation or permitting substantial distribution, liquidation or other disposal of Recipient assets directly associated with the Project. Changes in the Recipient ownership, structure or control which do not materially affect the Project shall require forty-five (45) days prior written notice of the Department, but not written consent of, the Department. The materiality of the change and whether or not the change affects the Project shall be determined by the Department. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 LH~ Contract Number: 00-LHAP-073 Page 7 of 10 (I) RECIPIENT OPERATION. Materially change the nature of the Recipient being conducted, or proposed to be conducted, as described in the Recipient's application for LHAP funding. (g) PROGRAM INCOME. Retain program income from the project except as permitted in the Administrative Plan submitted by the Recipient and approved by the Department. ARTICLE 9 SECURITY 9.1 SECURITY INSTRUMENTS. The Recipient shall execute in favor of the Department all security agreements, financing statements, mortgages, personal and/or corporate guarantees (hereafter, "Security Instruments") as required by the Department. The following Security Instruments shall be executed by the Recipient: Mortgage and Promissory Note. ARTICLE 10 DEFAULT AND REMEDIES 10,1 EVENTS OF DEFAULT. Each of the following sha1l constitute an Event of Default under tltis Agreement: -~ (a) MATERIAL MISREPRESENTATION. If at any time any representation, warranty or statement made or furnished to the Department by, or on behalf of, the Recipient in connection with this Agreement or to induce the Department to make a Loan/Forgivable Loan to the Recipient shall be determined by the Department to be incorrect, false, misleading or erroneous in any material respect when made or furnished and shall not have been remedied to the Department's satisfaction within thirty (30) days after written notice by the Department is given to the Recipient. (b) NON-PAYMENT. If the Recipient fails to make a payment when due under the terms of this Agreement within thirty (30) days following written notice of such overdue payment is given to the Recipient by the Department. (c) NONCOMPLIANCE. If there is a failure by the Recipient to comply with any of the covenants, terms or conditions contained in this Agreement or Security Instruments executed pursuant to this Agreement. (d) PROJECT COMPLETION DATE. If the Project, in the sole judgment of the Department, is not completed on or before the Project Completion Date. (I) RECIPIENT CHANGES. Ifthere is a material change in the Recipient ownership, structure, or control wltich occurs without the prior written disclosure to and if required, written permission of the Department. (g) MISSPENDING. If the Recipient expends Award proceeds for purposes not described in the LHAP application, Exhibit A, and Exhibit D, Program Description and Budget. (h) INSOLVENCY OR BANKRUPTCY If the Recipient becomes insolvent or bankrupt, or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or the Recipient applies for or consents to the appointtnent of a trustee or receiver for the Recipient or for the major part of its property; or if a trustee or receiver is appointed for the Recipient or for all or a substantial part of the assets of the Recipient and the order of such appointtnent is not discharged, vacated or stayed within sixty (60) days after such appointment: or if bankruptcy, reorganization, arrangement, insolvency, or liquidation proceedings or other proceedings for relief under any bankruptcy or similar law or laws for the relief of debtors, are instituted by or against the Recipient and, if instituted against the Recipient, is consented to, or, if contested by the Recipient is not dismissed by the adverse parties or by an order, decree or judgment within sixty (60) days after such institution. (i) INSURANCE. If loss, theft, damage or destmction of any substantial portion of the property of the Recipient occurs for wltich there is either no insurance coverage or for which, in the opinion of the Department, there is insufficient insurance coverage. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 LHAP Contract Number: OO-LHAP-O73 Page'8 of 10 U) INSECURITY. If the Department shall deem itself insecure in good faith and reasonably believes, after consideration of all the facts and circumstances then existing, that the prospect of payment and satisfaction of the obligations under this Agreement, or the performance of or observance of the covenants in this Agreement, or the value of its collateral is or will be materially impaired. 10,2 NOTICE OF DEFAULT. The Department shall issue a written notice of default providing therein a thirty (30) day period in which the Recipient shall have an opportunity to cure, provided that cure is possible and feasible. 10.3 REMEDIES UPON DEFAULT. Upon the happening of any Event of Default, the Department shall have the right, in addition to any rights and remedies available to it under any of the Security Instruments, to terminate this agreement and to require inunediate repayment of the full amount of funds disbursed to the Recipient under the Agreement plus interest without presentment, demand, protest, notice of protest, notice of intention to accelerate or other notice of any kind, all of which are expressly waived by the Recipient. ARTICLE 11 DISBURSEMENT PROCEDURES -~ 11.1 REOUEST FOR REIMBURSEMENT. All disbursements of proceeds shall be subject to receipt by the Department of requests for disbursement submitted by the Recipient. Requests for disbursement shall be in form and content acceptable to the Department. ARTICLE 12 GENERAL TERMS AND PROVISIONS 12.1 BINDING EFFECT. Tills Agreement shall be binding upon and shall inure to the benefit of the Department and Recipient and their respective heirs, successors, legal representatives and assigns. The obligations, covenants, warranties. acknowledgments, waivers, agreements, terms, provisions and conditions of this Agreement shall be jointly and severally enforceable against the parties to this Agreement. 12,2 COMPLIANCE WITH LAWS AND REGULATIONS. The Recipient shall comply with all applicable State and federal laws, rules, ordinances, regulations and orders. The recipient shall comply with 261-Chapter 28, Iowa Administrative Code. 12,3 TERMINATION FOR CONVENIENCE. In addition to termination due to an Event of Default or nonappropriation of LHAP funds, this Agreement may be terminated in whole, or in part, when the Department and the Recipient agree that the continuation ofthe Project would not produce beneficial results commensurate with the future disbursement of funds. 12.4 NONAPPROPRIATION OF FUNDS. All payments under this agreement are subject to the receipt by the Department of sufficient State funds for the LHAP program. Any termination, reduction or delay of LHAP funds to the Department shall, at the option of the Department, result in the termination, reduction or delay of LHAP funds to the recipient. 12.5 PROCEDURE UPON TERMINATION. If the Agreement is terminated for convenience, an Event of Default or nonappropriation of LHAP funds, disbursements shall be allowed for costs up to the date of termination determined by the Department to be in compliance with this Agreement. The Recipient shall return to the Department all unencumbered Award proceeds within one (I) week of receipt of Notice of Termination. Any costs previously paid by the Department which are subsequently determined to be unallowable through audit procedures shall be returned to the Department within thirty (30) days of the disallowance. 12.6 SURVIVAL OF AGREEMENT. If any portion of this Agreement is held to be invalid or unenforceable, the remainder shall be valid and enforceable. The provisions of this Agreement shall survive the execution of all instruments herein mentioned and shall continue in full force until the Loan is paid in full and the terms ofthe Forgivable Loan have been satisfied. 12.7 GOVERNING LAW. This Agreement and all Security Instruments shall be interpreted in accordance with the law of the State oflowa, and any action relating to the Agreement shall only be commenced in the Iowa District Court for Polk County or the United States District Court for the Southern District oflowa. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 LHAP Contract Number: 00-LHAP-073 ", P~ge90flO 12.8 MODIFICATION. Neither this Agreement nor any provision of the Security Instruments executed in connection with this Agreement may be changed, waived, discharged or tenninated ora1ly, but only as provided below: (a) WRITING REOUIRED. The Contract may only be amended through written prior approval ofIDED. Examples of situations where amendments are required include extensions for completion of Project activities, changes to the Project including, but not limited to, alteration of existing approved activities or inclusion of new activities. (b) UNILATERAL MODIFICATION. Notwithstanding paragraph "a" above, IDEO may unilaterally modifY the Contract at will in order to acconunodate any change in the Act or any change in the interpretation of the Act or any applicable federal, state or local laws, regulations, rules or policies. A copy of such unilateral modification will be given to the Recipient as an amendment to this Contract. - (c) IDED REVIEW. IDEO will consider whether an amendment request is so substantial as to necessitate reevaluating IDEO's original funding decision on the Project. An amendment will be denied if it substantially alters the circumstances under which the Project funding was originally approved or if it does not meet requirements set forth in 261 Iowa Administrative Code, Chapter 23. 12.9 NOTICES. Whenever this Agreement requires or pennits any notice or written request by one party to another, it shall be in wqyng, enclosed in an envelope, addressed to the party to be notified at the address heretofore stated (or at such other address as may have been designated by written notice), properly stamped, sealed and deposited in the United States Mail. Any such notice given hereunder shall be deemed delivered upon the earlier of actual receipt or two (2) Recipient days after posting. The Department may rely on the address of the Recipient set forth heretofore, as modified from time to time, as being the address of the Recipient. 12.10 INVESTMENT OF LOANIFORGIV ABLE LOAN FUNDS. Temporarily idle Loan/Forgivable Loan proceeds held by the Recipient may be invested provided such investments shall be in accordance with State law, shall be controlled by the Recipient, and any interest accrued shall be credited to and expended on the Project prior to the expenditure of other Loan/Forgivable Loan proceeds. All proceeds remaining, including accrued interest, after a1l allowable Project costs have been paid or obligated shall be returned to the Department within thirty (30) days after the Project Completion Date, 12.11 RESOLUTION OF DISAGREEMENT. In the event of any disagreement between the parties to this Agreement relating to the technical competence of the work and services being performed and its confonnity to the requirements of this Agreement, the Department shall resolve the disagreement. The decision of the Department shall be binding on the Recipient. 12.12 WAIVERS. No waiver by the Department of any default hereunder shall operate as a waiver of any other default or of the same default on any future occasion. No delay on the part of the Department in exercising any right or remedy hereunder shall operate as a waiver thereof. No single or partial exercise of any right or remedy by the Department shall preclude future exercise thereof or the exercise of any other right or remedy. 12.13 LIMITATION. It is agreed by the Recipient that the Department shall not, under any circumstances, be obligated financially under this Agreement except to disburse funds according to the terms of the Agreement. 12.14 ENFORCEMENT EXPENSES. The Recipient shall pay upon demand any and all reasonable fees and expenses relating to this project of the Department, including the fees and expenses of their attorneys, experts and agents, in connection with the exercise or enforcement of any of the rights of the Department under the Agreement. 12.15 HEADINGS. The headings in this Agreement are intended solely for convenience of reference and shall be given no effect in the construction and interpretation of this Agreement. 12.16 FINAL AUTHORITY. The Department shall have the final authority to assess whether the Recipient has complied with the terms of this Agreement. 12.17 INTEGRATION. This Agreement contains the entire understanding between the Recipient and the Department and any representations that may have been made before or after the signing of this Agreement, which are not contained herein, are nonbinding, void and of no effect. None of the parties have relied on any such prior representation in entering into this Agreement. Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02109100 LHAP Contract Number: OO-LHAP-O73 P'age"100fl0 12.18 COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective Date first stated. IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT: Lane Palmer, Division Admimstrator Division of Community and Rural Development Dubuque Terrance M Duggan, Mayor TYPED NAME,TITLE Contract Prepared by: Donna Grgurich LHAP Contract Format Approved 02/09/00 Iowa Department of Economic Development Local Housing Assistance Program (LHAP) Contract Amendment Recipient: Contract Number: Contract Amendment Number: Amendment Effective Date: City of Dubuque 00-LHAP.073 I April 20, 2000 1. WHEREAS, the Iowa Department of Economic Development approved a Contract with the Recipient for the expenditure of LHAP funds; and 2. WHEREAS, a portion of the Recipient's award was contingent upon IDEO's receipt of additional funding for LHAP; and 3. WHEREAS, IDEO has received additional funds from the Iowa Finance Authority for LHAP; THEREFORE, said Contract by and between the Iowa Department of Economic Development (hereafter referred to as Department) and the Recipient is hereby amended as f01l0ws: AMEND each Article in the Contract that refers to " Exhibit "0", "Program Description and Budget"" to "Exhibit "0", "Program Description and Budget, as amended. "" The following amendments will be made to the Contract: AMEND THE SUMMARY BLOCK AT THE TOP OF THE PAGE AS FOLLOWS: TOTAL AWARD AMOUNT from $ ~ to $ 400.000 GRANT AMOUNT from $ ~ to $ 400.000 AMEND Article 2.1, FUNDING, to read "The funding for the award is an appropriation to IDEO by the State legislature for the LHAP Program established under 1999 Iowa Code, Sections 15.351-15.354 and an agreement with the Iowa Finance Authority as authorized by 2000 Iowa Acts, House File 2422:' Except as otherwise revised above, the terms, provisions, and conditions of the Contract remain unchanged and are in full force and effect. RECIPIENT: City of Dubuque By Terrance M. Duggan Chief Elected Official IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT By Lane Palmer Division Administrator LHAP PROGRAM NAME OF RECIPIENT: Dubuque AGREEMENT #: OO-LHAp.073 LHAP PROGRAM DESCRIPTION AND BUDGET EXHIBIT D ...~mm.$øìfui:nQN... Rehabilitate the former historic St. Mary's Convent into transitional housing for women and children. Demolish the former site of the Wartburg Theological Seminary and construct a new 10-room single room occupancy facility. ..i.itjjji,6~f~m::. Renovate convent to provide ttansitional housing to I g residents. Demolish the former Wartburg Thenlogical Semmary and construct new lO.room SRO facility to provide altemate honsing for cuITent SRO residents of Washington Park Place. ACTIVITY :Wi\i!6îWt$iMmii LHAP SOURCE OF FUNDS FUNDS OTHER FUNnS LOCAL OTIlER Housing Trust Fund LHAP . (lDED) $250.000 LHAP - (IFA) $150,000 Catholic Charities (Maria House) $30,000 CDBG (Dubuque)(Maria House) $25,000 Federal Home Loan Bank (Maria House) $291,500 Mercy Medical Center (Maria House) $40,050 IlW (Maria House) $1,000 Conlon Construction (Maria House) $17,000 Dubuque (SRO facilitiy) $43,000 ( Wartburg Theological Seminary BIdg.) Administration $0 TOTAL ALL FUNDS $400,000 $6g,OOO $379,550 01/3t12002 TOTAL PROJECT BUDGET $250,000 $t50,OOO $30,000 $25,000 $291,500 $40,050 $1,000 $17,000 $43,000 $847,550 g.\proj,,"lbd\doeumeolSllh.plE,hibit D