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PRHSPSC PKT 10-13-2003 City of Federal Way CITY COUNCIL . PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE Monday, October 13,2003 4:00 p.m. City Hall Mt. Baker Conference Room 1. 2. 3. CALL TO ORDER PUBLIC FORUM COMMISSION COMMENTS 4. 5. APPROV AL OF September 8, 2003 SUMMARY COMMITTEE BUSINESS A. Diversity Commission Business Plan 2003-2004 B. Authorizing Resolution - lAC Youth Athletic Facilities Grant Sacajawea Park Track Improvements C. Grosch Field Dedication D. Agreement/Steel Lake Soccer Field Improvement Project E. Electric Winches RFP F. Kenneth Jones Pool. G. City Han 2% for Arts H. HomeSight Master Loan Agreement 1. 2003 CDBG Amendment to Federal Way Domestic Violence Victims Advocate 6. PENDING ITEMS . Celebration Park Art Sculpture Program . Federal Way Coalition of Performing Arts . Community Center . Celebration Park/Use of Fields . Hylebos State Park Transfer 7. 8. NEXT MEETING -NOVEMBER 11, 2003 ADJOURNMENT Action Matheson Action Sanders Information Reuter Action Schroder Action Faber Update Faber Action Faber Action O'Donnell Action O'Donne]] Committee Members: Linda Kachmar, Chair Mary Gates Jack Dovey Staff: Jennifer Schroder, Director Mary Jaenicke, Administrative Assistant 661-4041 City of FederaJ Way City Council PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Monday, September 8, 2003 4:00 p.m. SUMMARY In attendance: Council Committee members Chair Linda Kochmar, Jack Dovey, and Mary Gates, Staff: David Moseley, City Manager, Derek Matheson, Assistant City Manager, Karen Jorgenson, Assistant City Attorney, Jennifer Schroder, Director Parks, Recreation and Cultural Services, Anne Kirkpatrìck, Director Public Safety, Kathy McClung, Director Community Development, Kelli O'Donnell, Human Servìces, Angelina Allen-Mpyisi, Human Services Manager, Mary Faber, Recreation and Cultural Services Superintendent, Mary Jaenicke, Administrative Assistant. Guests: Allan Smith, Chair Arts Commission, Iris Marshall, Arts Commission, Bonnie Graves, Arts Commission, Vicki Bunker, Human Services Commission, Erica Hall, Mark Freitas, Harry Schreiber, H. DavidKaplan, Barbara Reid. Chair Kachmar called the meeting to order at 4:05 p.m. PUBLIC FORUM H. David Kaplan spoke regarding Grandview Park. Kaplan stated that he was involved with the Parks Commission and this activity since 1996, and he stated that it's about time. He stated Barbara Reid also echoes this thought. Kaplan also spoke regarding the Business Plan for the new community center. Kaplan stated that the Table describing the Fees - comparable Fitness and Aquatic Facilities indicates that there is only one Bally's in Federal Way, and there are actually two. Kaplan reported that six months ago, Bally's instituted a Senior Fare, that annual fee is $163.00 a year. Kaplan reported that in the early focus groups, the groups felt that fitness should not be part of the facility because it is competing with the local gyms. Kaplan said it has since been reported that the idea ofthe community having a fitness center is that of an introductory element to fitness. Kaplan stated that the Business Plan contradicts this point of view. Page 51 of the Business Plan shows an organizational chart, which includes a Community & Fitness Coordinator, Assistant Fitness Coordinator, Fitness Instructors and Fitness Trainers (contracted). He states that this is in direct conflict and competition with the local centers. He stated that if the aspect of Fitness Coordinator and trainers were dropped, it would not cost that much to the city, and it would support the City's position ofintToducing people to fitness, and if they want something more, they could go to the local fitness center. Mark Freitas stated that he made a presentation to the Parks and Recreation Commission on September 4 regarding fair and equitable access to fields in Federal Way. The Soccer Association has a stated policy of the best fields going to the best teams, and everybody else fits in. There is not a policy that will get average people onto the fields unless they are e a member of the Federal Way Soccer Association. Freitas wants to ensure that average kids and taxpayers get equal access to the parks. Kochmar stated that she would be meeting with Perry Woodford with the Youth Soccer Association. Schroder stated that this issue would go back to the Parks Commission meeting. Staff will supply the commission with information regarding how the fields are scheduled, what has the practice been in the past, and review policies. The Commission will make a recommendation to Council Committee, once the Parks and Recreation Commission complete their review. COMMISSION COMMENT Vicki Bunker Human Services Commissioner spoke in support of the 2004 CDBG proposed use of funds. Bunker also showed the committee a rough draft of the Human Services Brochure. Bunker stated that Weyerhaeuser has donated all of the work on the brochure. APPRO V AL OF SUMMARY Council members Dovey and Gates motioned to approve the August meeting minutes as written. Motion passed. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Monday, September 8, 2003 Summary Page 2 BUSINESS ITEMS Upcomine: 2% for Art Projects and Process Faber introduced Allan Smith Chair of the Arts Commission and Iris Marshall chair of the Public Art Committee. Smith spoke to the committee about the 2% for Arts process. Faber stated there are two projects involving 2% for arts; those projects are the new Community Center and the new City Hall Building. Smith presented a draft of the 2% for Arts Policy. If the project budget is over $5,000 there is an eight-person panel. The panel consists of a City Council member, an Arts Commissioner, three community members associated with the neighborhood receiving the artwork, two artists or arts professionals and a City staff member. Gates stated that when they toured the Community Centers, the fountains intrigued members of the Council. Faber stated that the artist is chosen, and then the artist will explore different types of art. Council member Dovey asked what the process is for choosing which Council member will serve on the panel. Faber answered that in the past the Chair of the Council Committee has chosen the Council member that would participate on the panel. Council member Gates requested that the artwork for both the new City Hall building and Community Center be cross-cultural. These are projects that serve everybody in the Community. Chair Kocbrnar requested that the Skate Park artist also be included in the mailing list. Acceptance of Sustained Support Grant from Cultural Development Authority Faber reported that the King County Arts Commission is now the Cultural Development Authority of King County. Due to budget cuts, they have moved from a County Department to a PubliclPrivate Department. They still receive some funds ftom the County. They provide funding to communities for arts programs every year through the Sustained Support Program. The City of Federal Way applied for funding for 2003 arts programs, and was awarded $10,800.00. Dovey moved to recommend to Council a "do pass" to authorize the City Manager to enter into an agreement with the Cultural Development Authority of King County to provide community arts programs and to place this item before Council on September 16,2003 for approval. Gates seconded. Motion Passed. 2004 CDBG Proposed Use of Funds O'Donnell reported that the total amount of funds available for the year 2004 is estimated at $1,048,591. The breakdown is as follows: $838,282 for Capital Projects, $119,425 for Public Services, and $90,884 for Planning and Administration. 0 'Donnell stated that they received notice ftom King County that the estimate for Capital Funds has been reduced. The Human Services Commission held a public hearing on August 18. They received public comments on the proposed Capital Projects, and the Commission voted to reduce the amount that was funded for the Federal Way Housing Repair Program. The final amount of the 2004 CDBG funding will not be known until December 2003. The Human Services Commission does have a contingency plan should the amount of funding increase or decrease. Council member Dovey asked why City of Federal Way projects are not funded. O'Donnell answered that the Commission is very supportive of funding City projects. They have worked with the Parks Department and the Public Works department to review different funding opportunities for the new Community Center and the Westway sidewalks. Schroder stated part of the problem is having a project that matches the criteria. Moseley stated that the Commission is more receptive to City programs as they relate to Capital programs; rather than how they relate to human service programs. The commission had put a motion out last year that they were hoping the Domestic Violence Program would be funded out of the General Fund; some commissioners feel very strongly that this should be a general Government function. They are concerned that they have a limited amount of Public Services dollars. For Capital Projects they have a 15% economic development target to try and fund city projects. Gates stated that moving the $38,000 request for Domestic Violence Advocate to the General Fund, assumes that the General Fund is unlimited, and that is not the case. Moseley stated that this would be a budget issue. City staff will need to provide options to the City Council on how to deal with the fact that these funds have been reduced ftom the budget. There will be options for the Council to consider in the budget deliberations, recognizing the fact that these funds have been reduced. Dovey stated he would like to know sooner, in case they may want to shift money to the Domestic Violence Advocate. O'Donnell stated that the Domestic Violence Advocate was funded for $20,000 in 2003, and $38,000 is an increase to the program. The complete program needs to be submitted to the County by September 22, 2003. A public hearing has been scheduled for September 16. It was requested that Moseley provide Council options on where the money may come from the General Budget. Kochmar asked if there would be a possibility to apply for funding for any of the elements that may be in the Community Center. Schroder stated she would work with O'Donnell on possible CDBG funding. Dovey moved to recommend approval of the 2004 Community Development Block Grant Proposed Use of Funds including the 2004 Contingency Plan and 2004 Conditions of Funding, as presented by the Human Services Commission. This recommendation is forwarded to the full City Council for consideration at the September 16, 2003 meeting. PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COUNCIL COMMITTEE Monday, September 8, 2003 Summary Page 3 The City Manager is authorized to enter into the required agreements to carry out Federal Way's 2004 CDBG program. Gates seconded. Motion passed. GRANDVIEW PARK Schroder stated the dedication for the Off Leash Dog Park would take place on October 4, at 1 0:00am at Grandview Park. The park will be owned by the City of SeaTac. A non-profit organization SODA (Serve Our Dog Area) will maintain the park. Notice of the dedication will be mailed out to citizens that have shown interest in this park. Mayor Burbidge will give a speech. ANNOUNCEMENTS Kochmar requested that Hylebos State Park Transfer be added to Pending Items. Kachmar stated she received a call asking that staff continue to follow the Hylebos State Park Transfer. Gates added that staff needs to be sure the funds are used correctly so that the City does not lose the funds that were allocated in the last Legislative Session. Schroder reported that this item is on the State Parks Commission October Agenda, and she will be attending that meeting. NEXT MEETING October 13, 2003, 4:00 p,m. in the Mt. Baker Conference Room ADJOURNMENT - Meeting adjourned at 5:03p.m. 5.A CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE Date: September 10, 2003 David M~ Manager Trise Moore, ~~ir, ;iversity Commission Derek Matheson, Assistant City Manager Via: From: Subject: Diversity Commission Business Plan 2003-2004 Background: Attached is a copy of the 2003-2004 Diversity Commission Business Plan as approved by the Commission at its September meeting. Per City Council direction and the Diversity Commission's bylaws, the Commission is presenting the plan to the City Council for approval. This year's business plan calls for management of the Martin Luther King, Jr. celebration, staging a "Community Night" cultural event, providing culturally diverse books to school libraries for the enrichment of young readers, development of a program to assist the Federal Way School District in its efforts to address the minority achievement gap issue, begin long- range planning for an International Festival to be held in conjunction with the opening of the City's new community center, reviewing the City's current practices in regard to diversity training and offering recommendations as appropriate, periodic attendance and reporting at City Council meetings, inviting guest speakers to address the Commission on community issues, and continuing the Commission's public relations efforts via all media forums. A Commission representative will be present to provide an overview of last year's accomplishments and this year's proposed projects. Committee Recommendation: Forward the Diversity Commission Business Plan 2003-2004 to the full City Council on October 21, 2003 with a do pass recommendation. ..~Jß~~~F (;()~~~II~:;:~:'~~~~ " ,.,}iilf' , "."",' ...' ., ,~.;~~~r:~ ,:caffiirtiit~éÇhäir ,: ",.,;,y,,':'.'¡'~:t'.CØmll11ttee Memljcr:'i'!."?:..',N:,\,ë'orDimttce Mcmbcr:,;",'~,,~'.: ,:,. II, ,.. ,1,.'" 'I "."'..":.' ' " ':.',';" "c,:.."" '>." ,.'." ."," ',' ", .." .',' '~"i"""";':"'!"':1',..'.'".". '""" .. . " ~' '!'..i','.""'¡,. \\-\ .. Purpose: Mission: Members: Goals and Projects: FEDERAL WAY DIVERSITY COMMISSION BUSINESS PLAN 2003-2004 Advises the City Council on policy matters involving the community's cultural and ethnic differences, ensuring that these differences are considered in the decision-making process. To help Federal Way become a community which is united amidst diversity, where each individual is respected, equally valued, equally needed and equally cherished. Equality is not sameness, it is equivalent value. Trise Moore (Chair), Carolina Lucero (Vice-Chair), Ron Walker, Julia Laranang, Byron Lightboum, John Kimiya, Teresa Camacho, Bryan Cooper, Diana Gonzalez; and Debra Robinson (Alternate). Events Manage the 2004 Martin Luther King, Jr. Celebration. (January 2004) Organize a "Community Night" event featuring the foods, traditions, and entertainment of various cultural groups. (Spring 2004) Begin long-range planning for an international festival to coincide with the opening of the city's new community center. Education Assist school district with minority achievement gap issue. (Ongoing) Provide culturally diverse books to school libraries for enrichment of young readers. (Fall 2004) Use current videos for community education. (Ongoing) Training Review current city practices and offer recommendations as appropriate to City Council and staff. (Spring 2004) Public Relations Promote commission programs and diversity through all media forums, including local and ethnic newspapers, Channel2l, City Update newsletter, Speakers' Bureau, website, commission brochure, and event attendance. (Ongoing) Attend City Council meetings periodically to increase Commission involvement and give visibility to the Council and community. (Ongoing) Arrange for guest speakers at meetings to address community issues. Invite community members to attend these meetings.(Ongoing) ~-2. 5.B CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM Date: To: October 6, 2003 PRHSPS Council Committee From: B Sanders, Park Planning & Development Coordinator Subject: anager solution-lAC Youth Athletic Facilities Grant Via: Sacajawea Park Track Improvements Background: The PRCS Department is applying for a grant for the replacement of the existing cinder track surface at Sacajawea Park. The attached Authorizing Resolution is required as part of the application package. The track facilities, including the cinder track surface material, were installed at Sacajawea Park in 1975. The major component of the grant application is for funds to replace the cinder with a modem, low-impact rubber material, marked for eight lanes. Staff and soccer coaches and players have been concerned about the tracking of the cinder into the artificial turf that was installed two years ago. Replacing the cinder will reduce this problem, and will also improve the useability of the track for both casual and competitive users. The cost to upgrade the track surface to a rubber material is approximately $183,000. The City is applying for a grant of$75,000 from lAC, and has contacted the Federal Way School District about contributing $30,000 to the project. This would leave the City providing $78,000 for this project, which is available from the CIP fund balance cor Sacajawea Park Field Improvements. Committee Recommendation: Forward the Authorizing Resolution for a Youth Athletic Facilities Grant to the full City Council on November 4, 2003 and recommend a "do pass" authorizing the City Manager to submit the grant application. APPROVAL OF COMMITTEE REPORT: I . CoIPmittee Chair Committee Member Committee Member ù-\ lAC MANUAL 5Y: ApPLICATION PROCEDURES - AUGUST 18, 2003 ApPLICATION 2003-04: Y AF 23 11. Y AF: Authorizing Resolution Local Agencies and Nonprofit Organizations-You may reproduce on your own paper; text may not change. Organization Name City of Fed~ral Way Resolution No. Project Name(s) ~acaj awea Track Improvements A resolution authorizing application(s) for funding assistance for a Youth Athletic Facilities Program (YAF) project to the Interagency Committee for Outdoor Recreation (lAC) as provided in Chapter 79A.25 RCW. WHEREAS, under the provisions of Y AF, state funding assistance is requested to aid in financing the cost of facility development; and WHEREAS, our organization considers it in the best public interest to complete the development project described in the application; NOW, THEREFORE, BE IT RESOLVED, that: 1. The Ci ty Mana9~r application to lAC for funding assistance; 2. Any fund assistance received be used for implementation of the project referenced above; 3. Our organization hereby certifies that its share of project funding is committed and will be derived from (U4~ OIRECTO/? PRESIDENT, Erc] be authorized to make formal CIF fund balance for Sacajawea Park Field Improvements --.--.-.-....--. ..- [ SrovsœMAlCHhVGRESOl/IitCS]; 4. We acknowledge that we are responsible for supporting all non-cash commitments to the sponsor share should they not materialize; r ífapp/icable) 5. We acknowledge that any facility developed with lAC financial aid must be placed in use as an outdoor recreation facility and be retained in such use for a minimum of 20 years from final reimbursement unless otherwise provided and agreed to by our organization and lAC; 6. This resolution becomes part of a formal application to lAC; and 7. We provided appropriate opportunity for public comment on this application. This resolution was adopted by our organization during the meeting held: Location Date Signed and approved by the following authorizßd representative: Signed Title Attest: Date Approved as to form 'ß-2. S.D PARKS, RECREATION AND CULTURAL SERVICES DEPARTMENT MEMORANDUM DATE: TO: FROM: VIA: SUBJECT: October 13, 2003 Parks, Recreation Human Servo ublic Safety Council Committee Jennifer SChr~der irector David Mose t Manage Agreement/Ste I Lake Soccer Field Improvement Project Back2:round The Steel Lake Soccer Field Improvement project involves the renovation of the existing sand field to a new synthetic turf-playing surface. The project budget, including the IAC grant funds of $400,000 is $800,000. This is a joint project between the City of Federal Way, and the Federal Way Soccer Association. The Federal Way Soccer Association will donate $100,000 to the project. On August 8th Council awarded the project to Athletic Fields Inc. The agreement attached for the Committees review and approval, acknowledges each parties financial contribution and responsibilities for this project. The ongoing responsibilities for the City in the area of maintenance and scheduling of the field reflect the current policies and past practices between the City and the Federal Way Soccer Association. Staff Reconllnendatiol1 Staff worked with the Federal Way Soccer Association in developing the agreement. The City's Law Department have reviewed the agreement and approved as to form. Staff recommends accepting the agreement as presented and to authorize City Manager to execute the agreement. Committee Recommendation Motion to approve authorizing the City Manager to execute the Agreement between the City of Federal Way and the Federal Way Soccer Association for the Steel Lake Soccer Field Improvement Project and to place this item before full Council on November 4, 2003 for approval. Am)UOVAL OJ" <:01\11\111"11(1<: IU;]'ORT: €o'mmittee Member ~-\ AGREEMENT BETWEEN THE CITY OF FEDERAL WAY AND THE FEDERAL WAY SOCCER ASSOCIATION FOR STEEL LAKE PARK SOCCER FIELD IMPROVEMENT This Agreement is made and entered into this _day of - 2003, between the City of Federal Way, a Washington municipal corporation, (the "City"), and the Federal Way Soccer Association, a nonprofit, tax exempt corporation, (the "Association"). The City and the Association shall collectively be referred to as the "Parties". WHEREAS, the Parties have expressed their desire to participate in a project to improve the Steel Lake Park Soccer Field, (the "Project"), and WHEREAS, the City Council has authorized the sum of Three Hundred Thousand Dollars and No/l 00 ($300,000.00) for the Project, and WHEREAS, the Association has committed the sum of One Hundred Thousand Dollars and No/I00($ 1 00,000.00) for the Project, and WHEREAS, the Parties have successfully applied and received grant funds from the lAC Land Water and Conservation Fund for the Project in the amount of Foùr Hundred Thousand Dollars and No/l 00 ($400,000.00) for the Project, and NOW, THEREFORE, the Parties agree to the following terms and conditions: I. CITY OF FEDERAL WAY RESPONSIBILITIES 1. Contribute Three Hundred Thousand Dollars and No/I00 ($300,000.00) for the Project. 2. Administer the bidding process and any contracts necessary for the Project. 3. Steel Lake Park will remain the property of the City. The City will continue to be responsible for the scheduling and maintenance ofthe property, including the Soccer Field. The City will coordinate the scheduling of the fields for City events/programs, and used by the Federal Way Youth Soccer Association. II. FEDERAL WAY YOUTH SOCCER ASSOCIATION RESPONSIBILITIES 1. Contribute One Hundred Thousand Dollars and No/l 00 (~1 00,000.00) for the Project. 2. The Association will be scheduled Monday, Wednesday and Friday between the hours 1 \:)-2- of 4:00 P.M.-8:00 P.M. TuesdayaÌld Thursday 4:00 P.M. to 9:00 P.M. and Saturday and Sunday between 8:00 AM. and 8:00 P.M. 3. An unused times will be returned to the City for its scheduling. III. FIELD CONSIDERATIONS 1. The field lining system will ensure that the pronounced (emphasized) lines are those associated with a regulation-sized soccer field. Each individual executing this Agreement on behalf of the Parties represents and warrants that such individuals are duly authorized to execute and deliver this Agreement on behalf of the entity he/she represents. DATED the day and year set forth above. CITY OF FEDERAL WAY By: David. H. Moseley, City Manager PO Box 9718 33530 1st Way South Federal Way, WA 98063-9718 ATTEST: City Clerk, N. Christine Green, CMC APPROVED AS TO FORM: City Attorney, Patricia A. Richardson THE FEDERAL WAY SOCCER ASSOCIATION By: Its: Suzanne Kocher President By: Its: George Pfeiffer Director of Fields By: Its: Carl Webber Treasurer 2 \)-3 5.E CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM Date: To: From: September 26, 2003 r PRHSPS Council Committee Mary Faber, Recreation and Cultural Services Superintenden John Gamac Knutzen Family Theatre Coordinator David Mo e Manager Electric Wine s RF Via: Subject: Back2round: In November of 200 1, staff applied for funding through the King County Arts Commission Cultural Facilities Grant Program. The City was successful in obtaining a grant to replace the manual winches in the Theatre with electric winches. Currently manual winches are used to raise and lower the electric and hanging pipes on the stage. The manual winches require a lot of labor and resources to operate. It takes approximately 10 minutes to lower and 15 minutes to raise one pipe, making it a logistic impossibility to raise or lower a backdrop or set piece during a perfonnance and increasing set-up and tech time before and after events. The electrical system will operate much more efficiently. Needing only 60 seconds to raise or lower a pipe 20 feet, the electric winches wi11 require fewer staff resources and provide greater flexibility to arts organizations who use the Theatre. A Request for Proposals was sent to the following companies and the results are as follows: Stagecraft Industries Quote #: PO308-O768.MLH/JLL Portland, OR $25.756 PNTA Returned a No bid Staternent Seattle, WA Reed Rigging, Inc. Returned a No bid Statement Chicago, IL J.R. Clancy Returned a No Bid Statement Syracuse, NY SRI Midwest Returned a No Bid Staternent via Email Saint Louis. MO SECOA, INC. Returned a No Bid Statement Champlin, MN Initial cost estimates for this project were obtained in 2001. The project was estimated to cost $24,000. Based on those numbers, the County's funding history, and the current budget situation in King County, staff applied for a grant to cover approximately 50% of the cost. The remaining balance of the project's cost has been carried forward from the 2002 Knutzen Family Theatre budget. Work is scheduled to occur December 18-19, 2003. Committee Recommendation: Motion to recommend to Council a "do pass" to authorize staff to accept the bid of$25,756.00 from Stagecraft Industries to replace the manual winches with an electrical winch system, and place this item before City Council on October 21, 2003 for approval. APPROV AI. OF CO!\1I\UT'n:li: IU:PORT: Committee Chair Comnii~ee Mclllber Comlll;ttee Member ~ -\ S.F CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM Date: To: From: Via: Subject: September 26, 2003 PRBS}>S Council Committee Mary Faber eerea ion and Cultural Services Superintendent David selc anager Kenneth Jon }>oo] <ees and Charges Update Background: In January 2003, the transfer of the Kenneth Jones Pool from a King County facility to a Federal Way facility was completed. The City entered into an inter-local agreement with King County to operate the pool for the first six months of 2003 and retained the King County fee structure. The fee structure that was in place was newly adopted by King County and went into affect January 1,2003. The new fees and charges were substantialJy increased, in many cases a 50-75% increase. When the City became the owner/operator in June no changes were made to fees and charges. PRHSPS Council Committee requested that staff report back to Council on the impact of the fees and provide research on what communities in our area are charging for pool activities and use. Attached is the information that staff has complied: . Chart #l is a Fee Comparison of Swim Lesson Fees . Chart #2 is a Fee Comparison ofDrop-Jn Swim and Pool Passes . Chart fI3 is a Fee Comparison of Pool Rentals . Chart #4 is Attendance Records from 2001-2003 for Swim Lessons, Drop- In Swim and Pool Passes At the meeting staffwi11 present additional information on the materials provided. This item is provided as informaÜon only, no council action is requested at this time. 1 \= -\ Chart #1 Fee Comparison Swim Lesson Name of Facility Kenneth Jones King County Kent & Auburn Fife Pool Hazen Pool Tukwila Pool SouthWest Enumclaw Pool Julias Bohem Mercer Island, Center at Pool Aquatics Center Pools Community Pool Redmond, & North Norpoint Center Shore Pools Facility City Of Federal Average Prices King County Aquatic City OF Fife Renton School City of Tukwila City of Seattle City of Enumclaw City of Issaquah Northwest Center Metro Parks Management Way Parks Management Dlstict Group Group Prices 10classes 30 min. Preschool $65.00 $53.05 $6500 $85.00 37.50/42.50 $4000 40/45 $40.00 65 141.50 $55.00 $65.00 $56.25 Youth $5500 $45.98 $55.00 $85.00 37.50/42.50 $40.00 40/45 $40.00 55/35 $55.00 $57.50 $56.25 Adult $55.00 $46.37 $55.00 $85.00 37.50/42.50 $40.00 40/45 $40.00 55/35 $55.00 $65.00 $56.25 Parent Tot $45.00 $44.74 $45.00 $85.00 37.50/42.50 $40.00 40/45 $40.00 45/30 $55.00 $65.00 $56.25 ,c., :Yi.c-¿/,>i:;'.,i I:,i.",:,:.,(,>..' , iifi",.':"" i(, .i;-' i;i::'.,: /i '" '- '. (1/2 price ',,",' - Class Size Preschool 5 5 5 4 6 5 6 3 5 6 5 Youth 8 7 8 4 6 8 6 4 7 9 5 Adult 8 6 8 4 6 8 6 4 5 6 5 Parent Tot 12 8 12 6 6 10 6 4 12 6 5 "".,. ,-..i. .c-.., i.." .. Private Lessons $22.50 $22.38 I $22.50 I $34.00 I I n/a I $15.00 $22.00 22.50/15 $22.00 $26.00 Semi Private $36.00 $32.12 I $36.00 I $34.00 I I n/a I $24.00 $32.00 36/24 $35.00 n/a ~ I LL K:\Kenneth Jones Pool\Fee Comparison '/2003 Name of Facility Facility Management Drop In Fees Lap Swim Adult Senior Youth Public Swim Adult Senior Youth Discount Swim Family Swim Adult Senior Youth Water Exercise Adult Senior Senior Swim Kenneth Jones Pool City Of Federal Way $4.50 $3.00 ..14.50 $3.00 $3.00 $3.00 $1.00 $3.00 $3.00 ~O .v, $6.00 $4.50 $3.00 PASSES 3 month Adult ~'.",;; Youth $I;¡ '.: Senior $ë~- '.: Family ~:,r,~: 3.¡;q'¡;;¡;4fi1~¡y..t¡;<#~?~'i-j¡I(#,\~'4 Adult $3:':: :1:: Youth $;'~:: ;::" Senior .>..::;; ::, Family $:;::: :;: Average Price $3.51 $2.39 $2.59 $3.00 $2.30 $2.53 $1.53 $3.08 $2.32 $2}2 $5.12 $4.10 $2.68 $1 $€ -. .E' $2. $2;. $1; . n iT $4. K:\Kenneth Jones Pool\Fee Comparison King County Aquatics Center King County Parks $4.00 $4.00 $4.00 $3.25 $3.25 $3.25 $1.00 $3.25 $3.25 $3.25 $6.50 $4,50 $2.75 $' :":, :.,: $,,~ :.:; $!i¡ :.~ $7~:: ::: -~I~ "', $:;!,:: :::" $7,,-: ,;:: :~;~~ ~~, Kent & Auburn Pools Aquatic Management Group 3.00 I 2.50 2.50 I 2.25 2.50 I 2.25 3.00 I 2.50 2.50 I 2.25 2,50 I 2.25 3.00/2.50 2.50 I 2.25 2.50 I 2.25 Chart # 2 Fee Comparison Drop In and Pool Passes Fife Pool CRy OF Fife $2.50 $2.00 $2.00 $2.50 $2.00 $2.00 niB niB niB niB $5.50 $š:5õ ,~~~-y:.i"'";.;;'~ì,c.,'.I.,~1;"..-;.'fiM~¡¡j niB 252/195 252/195 ""129i97 397/305 Hazen Pool Renton School Dlstlct $300 $2.00 $2.00 $3.00 $2.00 $2.00 niB -..:: . $3.00 $2.00 $2.00 $4.00 $3.00 $2.00 Tukwlla Pool City of Tukwlla $3.00 $2.00 $2.00 $3.00 $2.00 $2.00 niB $3.00 $2.00 $2.00 93/85 54/49 54/49 254/230 132/120 'i32i'i2õ niB SouthWest Community Center City of Seattle Bellevue Aquatic Center Enumclaw Pool Julin Bohem Pool City of Bellevue I City of Enumclaw I City of Issaquah 5325 $775 $225 5325 S225 5225 $1 œ S325 5225 $225 $375 $250 niB 1 month 45.00 1 month 35.00 niB niB niB ñiã S4.00 $3.00 54.00 53.00 53.00 $4.00 54.50 - 3.00/4.50 2.00 I 3.00 3.00 I 4.50 2.00 I 3.00 2.00/3.00 2.00 I 3.00 1.50/2.25 2.00 I 3.00 2.00 I 3.00 2.00 I 3.00 6.00 I 4.00 4.50 I 2.80 $3.00 "', :.' " ." E", '.' '.C, ,,' '". ¿.' :'~ 'c< ¡" :- .-..~ $4.00 3/0.00 $3.00 $4.00 3/0.00 $3.00 niB $4.00 3/0.00 $3.00 $5.00 $5.00 niB ... $75.00 $50.00 $150.00 3:c, <:; ;;4:; ..;. $175.00 '-.'¿¿ '.';:::0' $150.00 !2':': "c' -," $175.00/$2.00 41",:";0 .,;¡., ~ I $300.00 Mercer Island. Redmond, & North Shore Pools Northwest Center $4.50 $2.70 $2.70 $3.00 $2.70 $2.70 $1.00 $3.00 $2.70 $2.70 $6.00 $4.00 niB .._, J J J J Center at Norpolnt Metro Parks $9.00 $7.00 $5.00 $9.00 $7.00 $5.00 (f\ I t.L $9.00 $7.00 $5.00 $9.00 $7.00 $7.00 J J 1/8/2003 Chart #3 Fee Comparison Pool Rentals Name of Facility Kenneth Jones King County Kent & Auburn Fife Pool Hazen Pool Tukwila Pool SouthWest Bellevue Enumclaw Pool Julias Bohem Mercer Island, Pool Aquatics Center Pools Community Aquatic Center Pool Redmond, & Center North Shore Pools Facility City Of Federal Way Average Prices King County Parks Aquatic City OF Fife Renton School City of Tukwila City of Seatlle City of Bellevue City of City of Northwest Management Management Dislict Enumclaw Issaquah Center Group School DIstrict By _ane 5700 $800 nla ~ia S80:1 $5 CC Free for pu:JI'C ~ia [n:,re 1'001 $4775 nia $4500 527 00 542 OC nla Sellools 57500 I,~;>,; U::;S Clubs By LA'. S8 00 5720 58 00 nla 5700 58 0:: 55 CO nla nia E,t,re Pool 570 CO 547 85 $56 OC $45 00 535.00 542 CO :1ia 542 00 545 00 I'~;;UN .'. .' "... '. >,'", ." " Comercla' Rp.ntals E'nl,'. POOl 57000 561 16 570 00 S45 00 $42 00 nla $75 $65 00 Ii'~~. '. ."".".".~ ...,- .. .0>',' .' ..- .. ' ,;';-..;- "', . . - -: :.- .."",~"_. ,;-.".., ,.~',..- '.:- ..', ';. '. '.;"..' .., ",,:.-. '.:.'.' .. , .;;..;,ry,;> ,..,><.; 'f> /~.,; Private car1ies 1 25 People 587 00 $73 90 587.00 565 00 56250 $58.00 $6500 5135 00 87 I 58 $125.00 $80.00 26 . 60 """pip. $120 00 5~2C 00 $1200C 585 00 59000 $80.00 $8000 516000 120/80 $150.00 $115.00 61 90 "eo pie 5150.00 5~48.50 $15000 $10000 $12500 510000 595.00 $19000 150/100 $175.00 $150.00 91 . 12~ People $18750 $18450 $187 50 $12500 $20000 5125 00 $11000 52~500 187/125 $200.00 $185.00 120-150 $225.00 $203.12 $225.00 $225.00 $125.00 225/150 $225.00 $225.00 :r- , LL K:\Kenneth Jones Pool\Fee Comparsion ~/8/2003 Chart #4 Kenneth Jones Pool Lesson Attendance Record PROGRAM Adult Lessons Youth Lessons Pre School Lessons Parent Toddler Lessons Private/Semi Private Lessons c¡fltll;' " ,~QiiE'ôiQJJm& . 2001 2002 *2003 52 1885 734 106 37 2001 Quarterly Attendance Winter/Spring Summer Fall Adult Lessons 27 22 13 Youth Lessons 1035 866 451 Pre School Lessons 362 272 196 Parent Toddler Lessons 41 16 17 Private/Semi Private Lessons 8 45 0 srt"""".¡.ot."ft:.....",..:. "."":":"~'.."-;"<'~~":'.'~'...."';ì"-'. ~i,::;~¡¡:.~:;~'f:.{:,:1473 ii\~t~ä,!1~1, iWt;1tt:~i7 . ,eâsQ"a .~ .pt¡tl$:".¡\~'t,:<;;}:j.:ì:,/~';!î:i ...~~~5:'~';;~~¡;';;'~,;~,,';~! 2002 Quarterl Attendance Winter/Sprin 23 1030 341 45 25 Summer 17 624 218 42 12 Adult Lessons Youth Lessons Pre School Lessons Parent Toddler Lessons Private/Semi Private Lessons Fall 12 231 175 19 0 Drop In Swim and Pass Record *Fall 11 149 47 6 1 ,... >:2/t4 Item 2001 2002 *2003 Senior Lap Swim 541 559 772 AdulWouth Lap Swim 2315 3316 1915 Total Lap Swim 2856 3875 1687 Public Swim 14880 17916 9684 Family Swim 1373 1162 945 3 Month Pass 22 22 52 Annual Pass 31 18 13 Exercise Punch Card Adult 52 60 13 Exercise Punch Card Sr. 214 302 163 Drop In Exercise Adult 351 437 66 Drop In Exercise SR 162 301 60 *These Numbers represent attendance from January 1, 2003 to September 30, 2003 Pool Rentals were not available from King County K:\Kenneth Jones Pooillesson Attendance 2001, 2002, 2003 F-5 10/8/2003 5.G CITY OF FEDERAL WAY PARKS, RECREATION AND CULTURAL SERVICES MEMORANDUM Date: To: From: Via: Subject: September 26, 2003 PRHSPS Council Committee Mary Faber, ecre tion and Cultural Services Superintendent David Mosel, I anager City Hall 2 Yo to Art pportunities Back2round: In September 2003, the Arts Commission met with the staff to identify the 2% for Art budget for the City Hall project and visit the site. Following the site visit, a second meeting was held with the Arts Commission, project Architect and staff to develop the conceptual framework for the project and rank public art opportunities, This meeting was facilitated by a public art consultant from the Cultural Development Authority of King County (formerly known as the King County Arts Commission). The Commission completed a list of opportunities and their recommendation for Council review, which is included for consideration below. I. Conceptual Framework The goal of the Federal Way Arts Commission is to incorporate art elements that reflect the community's values and diversity in a welcoming atmosphere. The art program will emphasize City Hall as home of the people's government. Themes and concepts City Hall home of the peoples' government Reflect our diversity and the united community of Federal Way Spirit of inclusion, a welcoming and inviting place for all Create and help establish the City's identity Inspire citizens to ask the nature of government and the roles of elected officials, the police and courts in their lives. II. Prioritized Art Opportunities The extent of the public artwork that will be created for any of the opportunities outlined will be based on schedule, funding and additional resource allocation from the construction budget. Typically, integrated artwork is a combination of art enhancement money coupled with a base construction budget. It is important to note because it means the extent of the integrated art will be reduced or may not be feasible to achieve in the context of construction budget in some areas, The Commission reviewed five areas that art opportunities would be appropriate, . The opportunities listed below are ranked as first being most desired and presenting the greatest opportunity to achieve the conceptual goals described 1 G1-\ above. The description and elements for consideration in e;=tch opportunity represent a broad-brush stroke outlining the potential for integrating the work. 1. Exterior Entrance I Interior Lobby The sites focus is the entry "experience" of visitors and employees to City Hall, Opportunity includes enhancement of a sma]] plaza at the conclusion of the pedestrian approach to the main entrance, consideration of the glass curtain wall, and the lobby entrance details. The artist will be asked to consider the entry "experience" and develop proposals for integrated artwork embracing the themes and concepts above. This site has both the opportunity to establish the exterior identity of City Hall and make a strong first impression upon entering the lobby. The site has great potential for reflecting civic character, distinguishing itself ftom the surrounding commercial real estate and providing a welcoming and inviting feeling. Art enhancement elements for consideration might be stained glass within the curtain wall, a canopy feature, lighting fixtures, seating, as well as sites for portable artworks and the community gallery space. The Commission noted that an allocation of additional construction dollars toward the lobby and plaza may.permit flexibility for altering the existing interior features such as reception desk, location of the stairs, and the removal of the glass vestibule and the expansion of the exterior pavement area, 2. Southeast Plaza This site includes the pedestrian walkway ftom the Main Entrance to the southeast comer ofthe buildings exterior. This concept would not be possible without a significant additional allocatíon of construction dollars toward demolition of existing parking pavement, grading, concrete work, and landscaping features, This is a less grand and spacious area than the Terraced Plaza concept that is described below but just as capable of providing a public gathering place for ceremonies and celebrations as well a meeting and relaxing place for employees and visitors. Elements for consideration would be seating, planters, sculptures and flagpoles. City Hall is the home of the peoples' government and the character of this open space should convey that atmosphere and build on Federal Way's diversity and united community spirit. In either project, the selected artists or artist te~m will be expected to work collaboratively with the project architect, to develop an overall concept and design for the site. The artist chosen should have strong-place-making skills, landscape architectural experience, previous experience working in an urban/civic context, and a proven track record with rigorous design and implementation schedules. 2 ~-2. Other Projects Considered: . Terraced Plaza From Main Entry to 8th Avenue. This site extends the plaza entry concept in terraced landscaping to 8th Avenue. This concept would require a significant allocation of construction dollars toward demolition, grading and fill, concrete, and landscaping features. The extended plaza could provide a public gathering place with ample space for ceremonies and celebrations as well as provide a respite for employees, a lunch area and an exterior meeting place. Elements for consideration would be seating and details such as a water feature, sculptures or flag poles, . Court Entrance North Side of Building This site offers opportunity to improve the pedestrian experience from the parking lot to the Court entrance and a welcoming and inviting transition through the entrance doors and security systems. Artwork elements could reflect themes and concepts emphasizing the Court as a place where residents resolve disputes and seek justice. Small-scale hand-made integrated elements for consideration are paving treatments, path lighting, door handles, security glass, lighting fixtures, and portable work~ for the Court lobby area. . Security Fence The security fence surrounding the police parking area offers an opportunity to involve an artist. A security fence could be an attractive amenity rather than a typical chain link or wood slat variety. The fence has a dedicated budget and the project architect has offered to involve an artist in the design and fabrication. III. Project Budget The 2% for Art allocation is determined by the amount of the accepted construction contract(s). At this time the estimated budget is $230,000.00. The estimated breakdown is provided: . 176,985.00 21,850.00 11,500,00 19,665,00 230,000.00 Art Budget Public Art Consultant On-Going Maintenance Fund Project Contingency Project Budget Committee Recommendation: Motion to recommend to Council a "do pass" to accept the estimated project budget of $230,000.00 and authorize staff to develop an artist prospectus for the Exterior Entrance/Interior Lobby for an estimated budget of$176,985.00 and place this item before City Council on October 21, 2003 for approval. Committee Chair Committee Member --~:omm'.. ~~:b.~ -~-:I' ....-- . . - . .-"--.-.. ----. API'ROV AI, OF CO!\1MITTEI': IŒPORT: 3 ~-3 S.H CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY COMMITTEE Date: From: Via: Subject: October 6, 2003 Kelli O'Donnell David Mose HomeSigh M BG Coordinato~ anager Loan Agreement Background Federal Way allocated CDBG funds to the "HomeSight - First Homes Program," in .1997, 1998 and 2001. Federal Way has allocated a total of $240,000 to the First Homes Program, The Program provides down payment assistance to people whose income is less than 80% of the King County median income and choose to purchase their first home in the City of Federal Way. Loans are made for up to $25,000 to bridge the affordability gap to get into a home at a 3% interest rate for 3O-years with a deferred principal payment for seven years. As loans are repaid, funds are used for additional loans to qualifying Federal Way homebuyers. King County administers the agreements with HomeSight for Federal Way CDBG funds since Federal Way is part of the King County CDBG Consortium. HomeSight has committed the majority of funds allocated by the City of Federal Way to loans to qualifying homebuyers. HomeSight and King County would like to combine all previously allocated funds to the First Homes Program into one SubrecipientlMaster Loan Agreement as detailed in the attached September 22, 2003, memorandum to the Human Services Commission. The proposed agreement would incorporate all HomeSight funds currently administered by King County into one agreement. This includes funding from King County, Auburn, Federal Way, Kent, and Tukwila. Staff Recommendation Following direction from the Human Services Commission, Staff negotiated with HomeSight and King County to ensure the continued investment of Federal Way's CDBG funds into the Federal Way community over the term of the agreement. As proposed on September 22, 2003, the First Homes Program must maintain Federal Way's proportionate share of loans over each three- year period of the agreement. HomeSight may invest private funds to meet the balancing requirement. Staff has also negotiated quarterly reporting requirements, notification, and input into any amendments to the agreement, and the ability to propose amendments. Staff recommended participation in the SubrecipientlMaster Loan Agreement so that Federal Way homebuyers may continue to access the First Homes Program as funds are repaid from existing loans. \-\-\ Commission Recommendation The Commission reviewed the proposed Master Loan Agreement dated September 16, 2003 at their meeting of September 29,2003. The Commission moved to recommend that the City Council authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First Homes Program as set forth in the SubrecipienUMaster Loan Agreement King County First Homes Program ("MLA") as of September 16,2003, and authorizes King County to incorporate Federal Way's 1997,1998 and 2001 CDBG awards, including previously executed agreements, to the HomeSight First Homes Program into the MLA with the understanding that the CDBG funds will revolve into additional First Homes loans to qualifying home buyers so there will be no loan repayments or other program income to Federal Way's CDBG program during the term of the MLA. Committee Recommendation The Committee moves to authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First Homes Program as set forth in the September 16, 2003, final draft of the SubrecipienUMaster Loan Agreement King County First Homes Program ("MLA"), To be forwarded to the City Council for consideration at its October 20,2003 meeting. H-L ~ CITY OF .fill' ~ Federal Way MEMORANDUM DATE: TO: FROM: SUBJECT: September 22, 2003 Human Services Commission ~f Kelli O'Donnell, CDBG Coordinat HomeSight - Proposed New Mas er Loan Agreement to Govern Implementation of Federal Way's Previous and Future Allocations of CDBG Funds (Action) Background: The Original HomeSight First Homes Program Contracts The City of Federal Way has allocated funds to the "HomeSight - First Homes Program," which provides down payment assistance to people who choose to purchase their first home in the City of Federal Way, and whose income falls below 80% of the King County median income. The Program provides gap financing to cover the difference between the amount payable by the homebuyer and the amount of permanent lender financing, Since Federal Way is a member of the King County CDBG Consortium, the City of Federal Way's allocations, as well as the allocations by other participating jurisdictions, are implemented by King County by way of contracts between King County and HomeSight. Historically, those contracts authorize HomeSight to award up to $25,000 for each 30-year loan at a 3% interest rate with a deferred principal payment for seven years. The agreements also require the loan repayments to revolve into future loans of the same type in Federal Way. Federal Way allocated $15,000 to the First Homes program in 1997 for loans in the Westway neighborhood and $75,000 in 1998 for loans available citywide, These allocations are under agreement between King County and HomeSight, and funds have been loaned out to Federal Way residents. King County matched Federal Way's 1997 CDBG award with a $75,000 Housing Opportunity Fund grant to provide additional funds for loans in Federal Way. In 2001, the City of Federal Way allocated $150,000 to the Program, but King County has not yet entered into a contract with HomeSight to implement that allocation. Nonetheless, HomeSight has already committed $141,300 in loans to Federal Way residents in anticipation of a new agreement being reached between King County and HomeSight. This new agreement, which King County has chosen to call a "Master Loan Agreement" ("M LA") , would take the place of all of the previous contracts and serve as a master contract for all future years' allocations by the participating jurisdictions. The MLA was drafted following meetings with Staff from participating jurisdictions, King County and HomeSight. Federal Way, as the city contributing the highest percentage of funds to the Program, insisted that King County take its concerns into account in negotiating the MLA. Negotiations with KC and HomeSight began in June of 2003 and are concluding this month. The following jurisdictions also have awarded funds to the HomeSight First Homes program, but have not, to Federal Way's knowledge, attempted to negotiate regarding the MLA: King County $500,000 of HOME/HOF funds, Auburn $150,000 of CDBG funds, Kent $50,000 of CDBG funds, and Tukwila $45,000 of CDBG funds, Federal Way is the only jurisdiction that has not t\-~ agreed to participate in the MLA as first proposed. Federal Way has until November 1, 2003 to authorize King County to contract its funds into the MLA, The MLA, as it was first proposed to Federal Way, allowed loans to be secured in HomeSight's name. This would allow HomeSight, as a recently qualified Community Development Financial Institution, to increase its funding source even further to access additional low-cost loan funds, King County and HomeSight reached an agreement on how to accomplish this while protecting the interest of the funding cities and King County. HomeSight also requested that all of the funds committed to the First Homes Program by South King County cities no longer revolve back to the original city allocating funds. Instead, homebuyers who wish to purchase homes in the participating jurisdictions (Federal Way, Kent, Auburn and Tukwila) would be able to access funds from the South King County First Homes Program as part of the Puget Sound Revolving Loan Fund. This strategy simplifies HomeSight's administration of the funds and allows it to concentrate on raising significant private sector dollars. As HomeSight gains capital from other sources, those wishing to buy in Federal Way will continue to be eligible for gap financing assistance from the Puget Sound Revolving Loan Fund. Issues Raised by Staff and Commission: After reviewing the proposed MLA, Staff reported to the Human Services Commission in August that there were questions and concerns about the MLA and Staff was not prepared to recommend participating in the MLA at that time. The Commission stated that they did not wish to have Federal Way's funds go into a larger pool of funds without a guarantee the loans would revolve back to Federal Way, as was the original intention of the funds allocated. The Commission noted a concern regarding the County loaning funds and indicated that they would like to have an option to terminate participation in the First Homes Program in the future. Federal Way Funds Revolving back to Federal Way: Staff from Federal Way, King County, and HomeSight have been in on-going discussion on specific aspects of the MLA since August to resolve issues raised by Federal Way. The language in the MLA has been revised to assure that the original funds allocated for loans in Federal Way will remain in Federal Way throughout the term of the SMLA. Each jurisdiction will have their proportionate share stated as a percentage of loans made over each three-year period based upon the amount of fun,ds committed to the program as of December 31, 2003. HomeSight will use private funds in the event that the percentage has not been met in any jurisdiction over the three-year period. The program has been designed to allow jurisdictions to add funds, or join the program annually, with additional loans associated with their contributions added to the agreement. The proportionate share would onlybe adjusted every three years after December 31, 2003 to assure that the participating jurisdictions receive their share of loans. Staff feels that this design will assure that the funds committed to Federal Way will continue to be reinvested in Federal Way over the length of the MLA. Attachment 1 demonstrates that Federal Way funds will continue to stay invested in Federal Way if existing participants or new jurisdictions joining the program add additional funds to the First Homes Program. Loaning of Funds: Assistant City Attorney Karen Jorgensen has reviewed the legal concerns raised by Commissioner Larson in August and informed King County of the issue. Ms. Jorgensen will advise the Ad Hoc Committee during its meeting on September 24, 2003, Any further requests for legal advice should be addressed to Ms, Jorgensen directly. \4-Lf Option not to Participate: If Federal Way chose not to participate, the existing contracts between KC and HomeSight would govern. King County has already acknowledged that, under the original contracts, King County would have to work with Federal Way to find HomeSight in breach of its duty to manage Federal Way's allocations. Negotiation and perhaps legal action would ensue. Staff believes this course of action runs contrary to the City's desire to commit funds as expeditiously as possible to assist low and moderate income first-time homebuyers to locate in Federal Way, Option to Terminate: A mechanism for the City of Federal Way to withdraw as a participant of the MLA is not included in the agreement. Staff researched this option and determined it was not practical due to the nature of the program. Funds granted to the First Homes Program by Federal Way were intended to be lent out to eligible first-time homebuyers in Federal Way to help residents to obtain affordable housing. The majority of funds committed have already been lent out for a 30- year period and would be transferred to the new MLA. In the event that there was a mechanism for Federal Way to withdraw from the First Homes Program, collateral in the existing loans would have to be transferred to King County. The County or Federal Way would have to service the loans or find another entity to do so. The County and Federal Way Staff are not prepared to service loans. Federal Way Staff does not believe a termination clause would be in the best interest of the long-term operation of the program in Federal Way. Technical Changes: Staff has worked with King County and HomeSight on a number of technical changes to the MLA to make sure that the operations of the First Homes Program are clear. We have been successful in adding reporting requirements to the participating jurisdictions, notification and input on any amendments to the program, and the ability to request an amendment to the agreement.inthe future if needed. The proposed action requested by King County notes that Federal Way understands that Federal Way CDBG funds will revolve under the new program so loan repayments and other program income will not return to Federal Way CDBG program. While Federal Way had access to these funds under the existing agreements, this option has not been used to return funds to the City of Federal Way. The new MLA will allow these funds to continue to revolve in the First Homes Program and Federal Way residents will continue to access our proportionate share during the length of the agreement. At the conclusion of the Agreement, CDBG funds will return to King County to be redistributed to participating jurisdictions as stated in the CDBG InterlocallJoint Agreements. Staff Recommendation: Staff recommends that the City of Federal Way agree to participate in the SubrecipientlMaster Loan Agreement. This will allow all of the funds allocated by the City of Federal Way to be administered under one agreement so that Federal Way residents may continue to access the First Homes Program. In the event that the Commission/Council does not concur with the terms of the MLA, Federal Way will have to address the existing agreement between HomeSight and King County regarding the treatment of program income and servicing of the existing loans. Federal Way would also have to work with King County in the negotiation of a new agreement addressing the 2001 funds Federal Way allocated to the HomeSight First Homes Program. \i-S Proposed Motion: I move to authorize the City Manager to notify King County that the City of Federal Way agrees with the proposed changes to the HomeSight First Homes Program as set forth in the amended SubrecipientlMaster Loan Agreement King County First Homes Program and authorizes King County to incorporate Federal Way's 1997,1998 and 2001 CDBG awards to the HomeSight First Homes Program into the Subrecipient Master Loan Agreement with the understanding that the CDBG funds will revolve into additional First Homes loans to qualifying home buyers so there will be no loan repayments or other program income to Federal Way's CDBG program. Please contact me at (253) 661-4153 or kellio@fedway.org if you have any questions regarding the HomeSight or any CDBG projects or programs. \-\-~ King County First Homes Program Proportional Share of Loan Fund Scenarios Attachment 1 Current Fund Levels PARTICIPATING JURISDICTION TOTAL CONTRIBUTION PERCENTAGE King County Auburn* Federal Way* Kent Tukwila* TOTAL * Includes Challenge Grant HOF Funds $575,000 $150,000 $315,000 $50,000 $95,000 $1,185,000 48% 13% 27% 4% 8% 100% THE FOLLOWING ASSUMPTIONS ARE FOR ILLUSTRATION PURPOSES ONL V, THEY ARE NOT BASED ON ANY DISCUSSIONS OR COMMITMENTS. Scenario 2 - No new Cities, existing Jurisdictions add some funds PARTICIPATING TOTAL JURISDICTION ADDITIONS CONTRIBUTION PERCENTAGE King County 200,000 $775,000 48% Auburn* $150,000 9% Federal Way* 150,000 $465,000 29% Kent $50,000 3% Tukwila* 75,000 $170,000 11% TOTAL 425,000 $1,610,000 100% * Includes Challenge Grant HOF Funds Assumes currently active jurisdictions provide additional funds to program Scenario 3 - Two new Cities, exisiting Jurisdictions add some funds PARTICIPATING TOTAL JURISDICTION Additions CONTRIBUTION PERCENTAGE 75,000 75,000 100,000 $775,000 $150,000 $465,000 $50,000 $170,000 $75,000 $100,000 43% 8% 26% 3% 10% 4% 6% King County Auburn* Federal Way* Kent Tukwila* New City New City 200,000 150,000 TOTAL 600,000 $1,785,000 100% * Includes Challenge Grant HOF Funds Assumes currently active jurisdictions provide additional funds to program and two new Cities provide funds to the program SKC MLA PSJ scenarios 091803 t-\-\ H-<g SUBRECIPIENT /MASTER LOAN AGREEMENT KING COUNTY FIRST HOMES PROGRAM This Subrecipient/Master Loan Agreement (the "Agreement") is entered into as ofthe- day of ,2003 (the "Effective Date"), by and between The County of King, a municipal corporation, hereinafter referred to as the "King County" and HomeSight, a Washington non-profit corporation. RECITALS King County has received Community Development Block Grant ("CDBG") funds from the United States Department of Housing and Urban Development ("HUD") pursuant to the Housing and Community Development Act of 1974; HOME Investment Partnership Program ("HOME") funds from HUD pursuant to the National Affordable Housing Act of 1990 and certain local funds known as King County Housing Opportunity Funds. As an urban county, the County administers CDBG funds pursuant to an inter-local agreement between King County and some suburban cities and King County also administers HOME funds for all of King County: Portions of the above-mentioned funds were awarded to HomeSight to provide homebuyer assistance to eligible borrowers purchasing homes in South King County; King County and HomeSight previously entered into six contracts, numbered D25427D, D25607D, D25607E, D25607F, D25767D and D26138D, under which HomeSight agreed to provide homebuyer counseling, to provide down payment loans to assist eligible borrowers purchasing homes in the suburban cities mentioned above, and to service the loans originated pursuant to the contracts. ("Existing Contracts"); King County and the cities of Tukwila and Federal Way awarded additional funds to HomeSight for the King County First Homes Program to provide additional homebuyer assistance in Tukwila and Federal Way, but no contracts have been executed for those funds ("2000-2001 Awarded Funds"); King County and HomeSight desire to amend and restate the Existing Contracts in their entirety and to set forth the terms under which the 2000-2001 Awarded Funds will be used. Auburn, Tukwila and Kent have agreed to have the Existing Contracts amended and restated and have the contracts for the 2000-2001 Awarded Funds (D25607G, D25607H, D25607I, and D25607J) executed under similar terms. Federal Way is in the process of deciding whether to have its prior King County First Homes Program contracts (D25427D, 25607F and D25767D, and D25607D) amended and restated and whether to have its ;?,OOO-2001 Awarded Funds (D25607J) included in this Agreement; HomeSight has developed the Puget Sound Revolving Loan Fund ("PSRLF"), which is a community based investment fund providing lower interest financing to low to moderate- Subrecipient/Master Loan Agreement -September 16. 2003j\u¡;uot ~13, 2003 Page I I \-\-'\ income borrowers for the purchase of their first home. HomeSight anticipates that the Fund will make up to 500 down payment assistance loans over the next five years, Loan periodic repayments, refinance and cash proceeds and secondary market sales will revolve capital to allow additional loans to be made. This model reduces public and grant financing requirements over a five-year period by more than $8 million. The majority of the PSRLF capitalization comes from private investments through financial institutions, foundations, and corporations. Over a five-year period, HomeSight projects a 2: 1 (private to public) leverage ratio with more than $20 million coming from private capital and repayments. The goals of the Puget Sound Revolving Loan Fund are consistent with King County's goals for the King County First Homes Program under the Existing Contracts and the 2000-2001 Awarded Funds. HomeSight and King County desire to include both the Existing Contracts and the 2000-2001 Awarded Funds in the Puget Sound Revolving Loan Fund for South King County. King County intends that HomeSight will be a Subrecipient to administer the HOME Funds in the King County First Homes Program through the PSRLF. At the present ~timè.- King County does not intend that HomeSight will be a Community Based Development Organization (CBDO) or a Community Housing Development Organization (CHDO) under this Agreement. AGREEMENT NOV¡, THEREFORE, in consideration of the mutual promises contained in the Agreement, King County and HomeSight agree as follows: PART I: DEFINITIONS "2000-2001 Awarded Funds" means the CDBG Funds awarded by Tukwila and Federal Way, along with any matching Local Funds, provided that the Federal Way portion will only be included if by OctoberNovember 1,2003, Federal Way provides King County with authority to contract its funds in this Agreement. "Annual Income" means adjusted gross income of a Family as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 for individual Federal annual income tax purposes, as estimated by projecting the prevailing rate of income of the Family at the time when HomeSight determines whether the Family is income eligible, or such other method of calculating income as is approved by King County. Annual income shall include income from all Family members. Income or asset enhancement derived from a Qualifying Home being purchased shall not be considered in calculating annual Income. "CDBG Funds" means funds derived from the federal Community Development Block Grant Program, including Receipts from the use of CDBG Funds ("CDBG Receipts"), SubrecipientjMaster Loan Agreement -ScPlcmbn J Ö. 2003~ ~13. :.!UO3 Page 2 I \1-\ò "Committee" means the Puget Sound Revolving Loan Fund Oversight Committee. This Committee will advise and guide the PSRLF and its investments and provide input to the HomeSight Board of Directors. The Committee will review financial reports of fund balances including loan payments, loan pay-offs and delinquencies. The Committee will also review loan-underwriting policies and establish guidelines for refinancing, restructuring, property improvements, and foreclosure, "Eligible Homebuyer" means one or more adult members of a Family who have completed a homebuyer education program approved by King County, and who, together with all other members of their Family, have a combined Annual Income, both as of the date of initial eligibility determination and as of any later date when a determination is required by federal laws or regulations because of the fund source to be used for a Loan, no greater than: (a) With respect to the use of Local Funds, eighty percent (80%) of the median family income for the Seattle-Bellevue-Everett Primary Metropolitan Statistical Area, or in such other manner as King County shall approve in writing; (b) With respect to HOME Funds or CDBG Funds, the maximum income level permitted by federal regulations applicable to loans of CDBG or HOME funds for home buyer assistance, based on the size of the Family being assisted; Eligible Homebuyers obtaining Loans under this Agreement are also referred to herein as "borrowers", "Existing Contracts" means the six contracts, numbered D25427D, D25607D,D25607D, D25607E, D25607F, D25767D and D26138D, under which HomeSight agreed to provide homebuyer counseling, to provide down payment loans to assist eligible borrowers purchasing homes in the suburban cities mentioned above, and to service the loans originated pursuant to the contracts, provided the contracts numbered D25427D~-anà D25607D, D25767D and D25607J shall only be included in this definition if by OctoberNovember 1,2003, Federal Way gives King County authority to amend and modify those contracts. "Family" has the meaning set forth in 24 CFR Section 5.403, or successor provision, and includes an individual person. "Funds" means all money provided by King County to HomeSight under this Agreement or disbursed to others at HomeSight's request under this Agreement, and all Receipts. Funds do not include any Pri\:1kOther Funds. as dcJïlJcd in this Agrcemcnt. "HOME Funds" means funds derived from the federal Home Investment Partnerships Act Program, including Receipts from the use of HOME Funds ("HOME Receipts"). SubrecipientjMaster Loan Agreement -ScPtcmbcr 16. 2003Augu:;t 213, 200J Page 3 I \-ì- n "King County First Homes Program" means the portion of HomeSight's Puget Sound Revolving Loan Fund that will be used to make Loans in Participating Suburban Jurisdictions under this Agreement. "Loan" means any loan originated to purchase a Qualifying Home and consistent with the requirements of the funding source made by or on behalf of HomeSight wholly or in part with any Funds, including without limitation Receipts. "Loan Assets" means any assets or receivables derived, directly or indirectly, from funds provided by King County hereunder or from Receipts. "Local Funds" means funds made available by King County under the Existing Contracts or this Agreement that are not CDBG Funds or HOME Funds or derived from any other federal program. "Master Note" means the Master Promissory Note of Home Sight, dated on or about the date hereof, evidencing the obligation of HomeSight to repay the Master Loan, as described in Section 2.1. If HomeSight executes anv Amended Master Promissory Nole, "Master Note" shall mean the Amended Master Promissory Note. "Modest Housing" means: (i) In the case of acquisition of newly constructed housing or standard housing, the housing has a purchase price that does not exceed the Single Family Mortgage Limit for the type of single family housing under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) that is applicable in the area where the home is located; or (ii) in the case of acquisition with rehabilitation, the housing has an estimated value after rehabilitation that does not exceed the Single Family Mortgage Limit under Section 203(b) of the National Housing Act (12 U.S.C. 1709(b)) that is applicable in the area where the home is located. "Participating Suburban Jurisdictions" means King County, as the administrator for the HOME Consortium in unincorporated 3reas of South King County:. and any South .JÇKing County suburban city that has allocated CDBO +Eunds to the PSRLF King County First Homes Program.: ~>.S Q[ October November 1. 2003. "OtherPri"ate Funds" means any money not provided by King County under the terms of the Existing Agreements or this Agreement. and may include either private or other governmental money.7 "PlIgd Sound Revolving Loan Fund" means [ !ol11cSight' s community based socially responsible investment fund that provides lower interest financing to low to moderate- income borrowers for the purchase of their nrst home, and includes King County First Homcs Program, Citv ofScattlc. and Snohomish County. "Qualifying Home" means a legal dwelling unit that Subrecipient/Master Loan Agreement-September- 16. 2003.'\uguGt :;,)213,2003 Page 4 I H-I'L (a) (b) (c) (d) (e) (t) is single-family housing (l-to-4 family residence, condominium unit, cooperative unit or combination of manufactured home and lot); is located in an area of South King County or a South King County suburban City approved by King County under this Agreement is "Modest Housing"; as of the date of purchase by an Eligible Homebuyer, satisfies federal Housing Quality Standards as defined in 24 CFR Section 982.401, and satisfies all applicable standards and code requirements, including any applicable standards based on the fund source for the Loan being made under this Agreement; and mMay legally be sold separately from any other dwelling unit or structure (except for any structure accessory to the one containing the dwelling unit(s)), whether as a separate lot or condominium unit. lIs the principal residence of the Eligible Homebuyer during the term of the loan. Where a dwelling ooit is in a detached single family residence or town homes on its own lot, the "Qualifying Home" includes such lot and any appurtenances. Where a dwelling ooit is a condominium unit, the "Qualifying Home" includes all rights in common elements and other rights appurtenant to the condominium unit. A "Qualifying Home" may be a manufactured housing ooit that meets the Manufactured Home Construction and Safety Standards established in 24 CFR part 3280. "Receipts" means all amooots received by, or for the benefit of, HomeSight from any payments on the Loans, including without limitation principal repayment; interest; late fees; shared appreciation, amounts realized on sale of collateral, Loans, or other Loan Assets; and all other return on the Loans or on the investment of any of the foregoing, provided however, that Receipts do not include amooots attributable to the portion of any Loan made with PrivateOther Funds. In the event a combination of Local Funds, CDBG Funds, HOME Funds andPrivateOther Funds are used to make any Loan ooder this Agreement, the Receipts shall be calculated on a pro-rata basis with respect to the amount of Local Funds, CDBG Funds, HOME Foods and OtherPrivate Funds used to finance the I Loan. I "Subordination Policy" means King County's written policy that governs the subordination of Loans made under this Agreement. The current policy is attached as Exhibit H. "Subrecipient" means a non-profit organization selected by King County to administer a portion of King County's HOME program. Subrecipient/Master Loan Agreement-September 16, 2003l\U¡;uot 213,2003 Page 5 I \1- \ ~ PART II: PROGRAM PROVISIONS 2.1 Funds to be blent by County; Security. A, Subject to the terms of this Agreement and applicable laws, King County shall lend to HomeSight Funds to be used for homeownership assistance loans to be made to Eligible Homebuyers in order to enable them to purchase Qualifying Homes within South King County. King County's loan to HomeSight, including all amounts advanced under the Existing Contracts and this Agreement, shall be referred to as the "Master Loan." The amount available to HomeSight under the Master Loan is set forth in Exhibit A to this Agreement. The amounts shown in the column, "Loans Made" have been used by HomeSight, prior to the date of this Agreement, to make Loans. A list of the Loans made by HomeSight is set forth in Exhibit B to this Agreement. The amounts shown in the "Available Funds" column of Exhibit A are available to HomeSight to make Loans under this Agreement. Subject to King County's rights to terminate this Agreement, all amounts received by HomeSight or King County in repayment of any Loans, whether previously made or made in the future, shall be available to HomeSight to make additional Loans. HomeSight's right to receive any funds hereunder shall be subject to the existence of sufficient expenditure authority for such purpose, with respect to the funds in question, pursuant to County ordinances. The funding to be provided under this Agreement includes, and is not in addition to, all funding previously awarded or committed by King County to HomeSight under the Existing Contracts and the 200Ql-2001J Awarded Funds. B. The Master Loan shall be evidenced by the Master Promissory Note of HomeSight dated as of the date hereof. or if Federal Way agrees to have its CDBG and HOF fì.mds included in this agreement an Amended Promissory Note dated November 1.2003. In the event this Agreement is executed before Federal Way has provided King County authority to include any Federal Way awarded CDBG or HOF Funds, HomeSight will execute a Master Promissory Note without the amount for the Federal Way awarded CDBG Funds. If Federal Way agrees to have its CDBG and HOF Ffunds included in this agreement on or before November 1, 2003, but after the Master Promissory Note is executed, on or before November 1,2003. HomeSight agrees to execute an Amended :;econd Master Promissory Note that will include all of the Funds Awarded to HomeSight. U' additional Funds are élvvarded by King County or any Participating Suburban Jurisdictions after the Master Promissorv note is executed. I lomeSight will execute an Amendcd Master Promissory Note. Upon receipt by King County. any~ Amcnded ~~econd Master Promissory Note that-will supercede the original Master Promissory Note or prior Amended Master Promissory Notes. The Master Promist;ory Note shall be SubrecipientjMaster Loan Agreement -September] 6. 2003Au¡;uGt ;¿jl13, 2003 Page 6 I H-t4 secured by the following: (a) the Collateral identified in the Security Agreement First Home Program dated as of the date hereof; (b) assignments for security purposes only, of each promissory note evidencing a Loan (the "Homebuyer Note"), perfected in such manner as King County shall require and subject to no prior liens or encumbrances on HomeSight's interest as payee, provided that such assignment shall specifically pennit HomeSight to (i) receive payments on the Loans absent default by HomeSight under this Agreement or the First Homes Program Security Agreement and (ii) in the event of a default by the Eligible Homebuyer on the Homebuyer Note, if HomeSight is not then in default hereunder, HomeSight may proceed with foreclosure or such other remedy as HomeSight in its sole discretion deems appropriate, and the Homebuyer Note shall be returned to HomeSight by King County when required for such purposes; (c) assignments for security purposes of deeds of trust securing all Loans, recorded immediately after each such deed of trust is recorded, and subject to no liens or encumbrances on HomeSight's interest as beneficiary; and (d) assignments for security purposes of all bank accounts, moneys, investments, and receivables derived from the Loans or from the Funds (with the exception of any such bank accounts, moneys, investments, and receivables containing solely Pri .~ltcOthcr Funds), perfected in such manner as King County shall require and subject to no liens or encumbrances. HomeSight agrees it will not pledge any property or Funds that secures the Master ProI11Î:;:;ory Note as collateral. For each bank account, HomeSight, County and a Depository Institution shall execute a Blocked Account Control Agreement in a form acceptable to County. For each Loan originated under this Agreement, HomeSight shall also deliver the original Homebuyer Note and an unrecorded assignment to County for the related Deed of Trust for security purposes within ten (10) business days of the Loan closing. For each Loan, HomeSight shall obtain a Deed of Trust and Deed of Trust Note as set forth in Exhibits El and E2. C. The Master Note shall be a general obligation of HomeSight, If, however, HomeSight delivers to King County, prior to the maturity date of the Master Note, the, items (a) through (g) in subsection C (1) below, in accordance with subsection C (2), HomeSight shall be relieved of any further obligations under the Master Note; the Master Note shall be deemed paid in full; and all obligations of HomeSight thereunder satisfied. (1) The items to be delivered are as follows: (a) All Funds in HomeSight's possession or control, including without limitation the accounts (with the exception of any accounts holding only !)rÎ\'~ltcUth\..'1 Funds) maintained hereunder; SubrecipientjMaster Loan Agreement-SeptcmlxJ j b. lUO.j^u¡.:;un 23.13. )U(M Page 7 I H-l5 (2) (b) All promissory notes and documents for all outstanding Loans (with the exception of such notes or documents relating solely to PrivateOt!1cI Funds), duly endorsed in favor of King County, absolutely but without recourse; (c) A recorded absolute assignment of all deeds of trust for such outstanding Loans; (d) All title insurance policies and other evidence of insurance for the properties subject to such deeds of trust; (e) Special warranty deeds to any real property, and bills of sale for any personal property, received and held by HomeSight in full or partial satisfaction of any Loan or as a result of foreclosure thereof; and (f) Absolute assignment to King County of all other claims, rights, demands and things in action arising or that may arise out of the Loans; and (g) Wwritten certification from HomeSight that: (i) HomeSight used the Funds only for Loans as authorized hereunder, and for costs of loan origination and servicing to the extent permitted hereunder; (ii) HomeSight deposited all amounts paid on Loans and all other receipts attributable to Loans, including without limitation any proceeds of collateral for Loans, in the accounts required pursuant to this Agreement, and no withdrawal or payment from such accounts was made contrary to the terms of this Agreement; and (iii) HomeSight did not impair the value of any security for any Loan by any action contrary to the terms of this Agreement. The conditions to HomeSight's rightto satisfy the Master Note by such delivery are: (a) HomeSight shall have used all Funds only for Loans as authorized hereunder, and costs of loan origination and servicing to the extent permitted hereunder. Subrecipient/Master Loan Agreement -September 16. 2003.^.uguct ~13, 2003 Page 8 I \-l-l ~ (b) (c) (d) (3) 2.2 Use of Funds. HomeSight shall have deposited all amounts paid on Loans and all other receipts attributable to Loans, in the accounts required pursuant to this Agreement, and no withdrawal or payment from such accounts shall have been made contrary to the terms hereof. HomeSight shall not have impaired the value of any security for any Loan by any action contrary to the terms of this Agreement. HomeSigbt shall not exercise this option until the first Loan originated by HomeSight under an Existing Contract becomes amortizing. (e) HomeSight is not in default under this Agreement. Satisfaction of the Master Note shall not relieve HomeSight of any liability, other than payment of the Master Note, arising from HomeSight's breach of any terms or conditions under this Agreement, HomeSight shall use Funds only for Loans to Eligible Homebuyers for Qualifying Homes, as described herein, except as expressly set forth in Section 2,8 below. A. HomeSight shall make Loans to Eligible Homebuyers to provide homeownership assistance for the purchase of Qualifying Homes. The amount of each Loan shall not exceed the amount necessary, together with any other subsidy, to provide affordable housing, The amount of each Loan shall also be consistent with the limit for homebuyer assistance loans as approved in writing by King County, The current limit for homebuyer loans is $25,000,00. as estabJished in 1998. This loan limit may be changed by amending this agreement as set forth in Section 3.8 and Wuture increases to the loan limit will be based on changes in home sale prices, market conditions and homebuver affordabilitv analysis. HomeSight shall perform all the activities identified in Exhibit Cl - C-3, attached to this Agreement and incorporated by reference, in accordance with the schedule and budget set forth in Exhibit D, as the same may be modified with the express written approval of King County, which approval shall not be unreasonably withheld. B. HomeSight has established the Committee to assist HomeSight in developing PSRFL loan policies and administering the PSRLF. ~ C.C\1l1I1itlL'c s11,111 11,1\': 1111,1\.1 IIIClllhCISI!. (>1' Ie; d IlIJl1iIJ1lill1 C, SubrecipientjMaster Loan Agreement -:~'.:i )[(,:1,1,,-: 16. ; ,j(n '.:: ;-:~L'! 213,~~(Mj Page 9 I t\-ll mcmbcrship of nine (9) mcmlx.'rs. Ilol1lcSi,!2.ht shall convcnc the initial së<ttill}.!, or the COml11iUëe no later than !Vlarch 2004. King County and the other Participating Suburban Jurisdictions shall select two members of the Committee, subject to HomeSight approval, which approval shall not be unreasonably withheld. Nominees must confonn to eligibility and conflict of interest requirements of U.S. Treasury (CDFI), Washington State - Department of Financial Institutions (DFI), HUD and other applicable regulations. The Committee shall meet no less frequently than quarterly. HomeSight shall provide staff support to the eCommittee. HomeSight shall provide the Committee at such quarterly meetings a report containing the following information: (i) number of loans made; (ii) portfolio value; (iii) fund balance by sources: (iv) income of homeowners; and (v) information contained on the HUD 9902 form; (vi) delinquency reports; and (vii) forbearance agreements. HomeSight shall provide King County and I Participating Suburban Jurisdictions with the quarterly reports provided to the Committee and any loan policies developed by the Committee and adopted by the HomeSight B'oard. D. HomeSight shall implement the Program consistent with (i) the Program Description (Exhibit Cl to this Agreement) or any amendment or successor program description approved in writing by King County for purposes of this Agreement; (ii) this Agreement; and (iii) with all federal HOME and CDBG program regulations. If any element of the Program Description should conflict with the other provisions set forth or referred to in this Agreement, including without limitation any applicable HOME or CDBG program regulations, the terms of the Program Description shall be considered modified to the extent necessary to remove such conflict. E. HomeSight's loan documents for all Loans utilizing HOME Funds shall include provisions consistent with the "recapture" provisions of 24 CFR Section 92.254 and King County's HOME Program Policies within King County's Consolidated Plan, All Loan documents must allow the lender to recapture HOME program income, if at any time during the Loan term, the home does not continue to be the principal residence of the Family. HomeSight shall enforce the recapture provisions of the Loan documents. IfHUD determines that the Family did not qualify as an Eligible Homebuyer, HomeSight shall repay King County the Principal, interest and any shared appreciation for the unauthorized Loan. HomeSight shall also be required to repay to King County Principal, interest and any shared appreciation if the Loan documents did not allow recapture of HOME program income as described above. If King County receives an audit finding from HUD related to the SMLA, King County shall notify HomeSight within ten (10) business of the audit finding. F. HomeSight shall be responsible for the marketing of the loan program, processing of Loan applications, consummation of Loan transactions, servicing and collection of Loans, and other Loan administration including SubrecipientjMaster Loan Agreement -SePtember ¡ 6. 2003i\uf;UGt 1.§.13. :2003 Page 10 I \-t-l ~ initiating foreclosure proceedings if necessary, and for compliance with all legal requirements of such activities, including without limitation all laws and regulations regarding Fair Housing, Equal Credit Opportunity, Truth- in-Lending, consumer protection, Real Estate Settlement Procedures, usury, tax reporting, and debt collection practices. G. HomeSight shall indemnify and hold harmless King County and its officers and employees from and against any claim, demand, loss, damage or expense arising out of any failure of HomeSight to comply with any legal requirement in connection with this Agreement. This indemnity provision shall survive any termination or expiration of this Agreement. H. 1. Over aftyeach ~three (3) veal' period. beginning January 1,2004. HomeSight shall originate Loans in each Participating Suburban Jurisdiction in numbers equivalent to that Participating Suburban Jurisdiction's proportiona1 share of the funds a\varded to HorneSight for the Kin,g County First I-Tome Program of the PSRLF. Loans funded with HOìvlE Funds shall be distributeu to Participating Suburban ,Iurisdictions and unincorporated South King County according to market demands.. 2. The proportional share percentages shall be established based on the amount of Ffuncls mvarded bv the Pa¡1icipating Suburban Jurisdictions. including King County's HOME Funds. as of October December 31, Non~mber L 2003 and shall be set forth in Exhibit G. Every three (3) years King County shall revise Exhibit G effective January 1 if any Participating Suburban Jurisdiction or a new South King County suburban jurisdiction has awarded CDBG Funds or HOME funds to the first Homes Program in the prior three years. 3. In order to maximize the number of Loans originated by I,'unds. HomeSight's shall also use a portion of its Other Funds to originate Loàns in South Kin}! County 4. I n order to balance the percentages under this subsection, HomeSight's Other Funds shall be used to oril.'.inate Loans when necessary to satist\, the requirement of proportional shares of Loans. '1'0 the extent Other Funds are used to fultiJI this requirement their use shall be consistent with the PSRLF Business Plan and the requirements of private investors to ImÙntain the financial integrity or the PSR.LF as determined bv the Committee. ~;hall ~d~;o Ll~;e a portion orit~; Private Loam; ori:..:inated using Privatemay included as required bv thi~; sub~;ection.pri\'ateJhll1d PSRLF oversight c 2.3 Affordability. SubrecipientjMaster Loan Agreement -September] 6. :2003,^,u¡;uf1t, 2213, JOO3 Page 11 I \-1,1,\ 2.4 A. HOME - Funded Loans. HomeSight's loan documents will require, and HomeSight shall ensure, that all housing assisted with HOME Funds meet requirements of HOME regulations, including 24 CFR Sections 92.217 and 92.254. B. CDBG - Funded Loans, Loans of CDBG Funds shall be made only for purchase of homes that are affordable under the same standard applicable for Loans of HOME funds. C. Loans Made with Local Funds. Loans with Local Funds shall be made for homes that qualify under program policies of King County. D. Loans Using Multiple Sources. In making Loans using more than one of the above sources, HomeSight shall comply with the strictest of the affordability standards applicable, Receipts; Accounts; Interest. A. Until such time as King County shall otherwise direct, all Receipts shall be retained by HomeSight for the revolving loan fund in South King County and, except as provided in Section 2.8 below, shall be used solely to make Loans according to the requirements of this Agreement. HomeSight shall either (i) maintain separate bank accounts identified on bank records as securing the Master Loan for the benefit of King County, each at a bank located in King County, for Receipts derived from HOME Funds, CDBG Funds, and Local Funds, or (ii) establish an accounting system acceptable to King County in its reasonable discretion to separately track and identify all such Receipts and the sources from which they were derived, provided however, that all HOME Funds shall be maintained in a separate bank account, Either (i) two signatures of authorized HomeSight officers or directors, or (ii) the signature of anyone HomeSight officer and director and the signature of the HomeSight executive director or deputy director shall be required for any disbursement. Disbursements must also comply with Section 2.8 of this Agreement. Each account shall be subject to an agreement signed by the bank perfecting King County's first priority security interest in the account, in form and content acceptable to the County, and under which the County shall have the right to terminate or suspend further withdrawals by HomeSight at any time, provided however that the County shall not exercise such right except in the event of a default by HomeSight under the terms of this Agreement. HomeSight shall ensure that Receipts from each such account are used strictly in accordance with the same requirements of this Agreement and applicable regulations that apply to Loans from the respective original fund sources, including without limitation applicable requirements governing HOME funds under 24 CFR Part 92. SubrecipientjMaster Loan Agreement -September] 6. 2003.^.usuo( 2213, ~OO3 Page 12 I )-\-2.0 2.5 2.6 B. HomeSight shall use any balance of Receipts originally from HOME or CDBG Funds for Loans, prior to drawing any additional HOME or CDBG Funds for such Loan from the 2000-20001 Awarded Funds. C. If a HUD audit determines that the retention of HOME Receipts hereunder by HomeSight is inconsistent with HOME laws or regulations, or HUD policies for the HOME Program, the County shall have the right to require the entire balance of the account maintained for HOME Funds be paid immediately to the County or to require that all further HOME Receipts be paid to the County as received or both. The County agrees to challenge any HUD audit finding prior to exercising its rights under this subsection. If King County receives an audit finding from HUD related to the SMLA, King County shall notify HomeSight within ten (10) business days of the audit finding. Reversion of Assets. Upon expiration or termination of the Agreement, HomeSight must transfer immediately to County any HOME Funds and CDBG Funds on hand at the time of expiration, including all Receipts; any accounts receivable attributable to the use of HOME Funds and CDBG Funds, including without limitation outstanding Loans and all documents evidencing such Loans, properly endorsed by HomeSight in favor of King County, without recourse, and any guarantees thereof. Such Funds, and the principal amounts outstanding on Loans properly assigned, shall be credited to the balance owing on the Master Note.~ accordance with the applicable Community Development Block Grant Interlocal Cooperation Agreements.. King County shall disburse to the Participating Suburban Jurisdictions an\' CDBG Receipts transfelTcd from HomeSight Records and Reports. A. HomeSight shall maintain a separate file for each Loan. The file must contain the property address including zip code; number of bedrooms in unit; owner name, address, and phone number; form of ownership; type of project; number of units if not single family; and household characteristics including income and percent of median income, household type, purchase price, interest rate and mortgage amount, family size, racial and ethnic group of household members and whether there is a single head of household (including sex thereof), disability if information is volunteered by a Loan applicant, and a listing of all costs and sources of funds related to the purchase. Each file must contain all of the following: Loan Application (which shall include information showing first-time homebuyer status); Income and family size certification, and supporting documents; Subrecipient/Master Loan Agreement -SePtember 16, 2003/\ U¡:;',IG! 213, 2003 Page 13 I \-\-2A Copy of Purchase Agreement; Copy of Promissory Note (original shall be delivered to King County to hold for security purposes only); Deed of Trust (or other appropriate security instruments in the case of any manufactured home that is not real property); Truth-in-Lending Statements with acknowledgements of receipt by all borrowers; Appraisal of home purchased and evidence of borrower's receipt ofa copy thereof; Credit Report; Closing statement for purchase of home (HUD form), with the First Homes Program Loan amount listed separately; Title Insurance Policy in favor of HomeSight in the Loan amount (Lender's Coverage, showing no liens prior to the Deed of Trust for the Loan except as permitted under this Agreement); To the extent required by HUD, lead-based paint report for the home (if any portion was built before 1978); Disclosure statement signed by the Homebuyer concerning lead-based paint poisoning if the building in which the purchased unit is located was constructed prior to 1978; Records demonstrating that the purchased unit meets applicable housing code and housing quality standards; Documents showing compliance with the property value requirements for affordable housing, including the initial purchase price and appraised value after rehabilitation if applicable; Documents showing that the combination of federal assistance and any other subsidy is consistent with the applicable Fund source underwriting standards; and With respect to the use ofCDBG Funds (other than CDBG Receipts) and HOME Funds, documentation demonstrating compliance with federal displacement, relocation and acquisition requirements; and SubrecipientjMaster Loan Agreement-Scl)lcn'¡.AI l6. 2UUJA-\.+gtr:;;. d13. JUL'3 Page 14 I \-t -L?'- Annual verification of continued occupancy of the property by the Homebuyer. B, HomeSight shall maintain a separate file for each Loan applicant to whom a Loan is not made. Such file shall include: Loan Application; Denial letter complying with equal credit opportunity laws; Demographic information on applicant; Any correspondence from applicant; Credit report (if obtained); Underwriting worksheet indicating that the Loan is consistent with the applicable Fund source underwriting standards; and Copy of inspection report. C. HomeSight shall keep on file all approved loan packages. D. V/ithi n six! v (60) davs of the end of each quarter. HomeSight shall deliver to King County and the Participating Suburban Jurisdictions \','Îthin sixty UíÜ) day~~ of the end of e:lch qll~1rter a report, in a form acceptable to King County, which documents the number of Loans made in each Participating Sllbmban Jllrisc1ictionp::rti,jpatingìuri~'diction _in the prior quarter, the dollar amount of the Loans, income information of the Eligible Homebuyer, and demographic information on the Homebuyer, purchase price of the homes, number of bedrooms:--fJ+E'+t+4+:r, monthlv mortgage I amount and interest rate on first, and if applicable, second mortgage, and other information, as required by King County (for reporting to HUD.). HomeSight shall also deliver to King County and to the Committee on a quarterly basis a fiscal report in a format acceptable to King County of Loan payments (and any other Receipts), account balances and how Receipts were used. Before using any new Funds, HomeSight must report, in a form acceptable to King County, information on Loans made from Receipts and on demographic and household information of the Eligible Homebuyers of such Loans. E. Overall program records maintained by HomeSight must document affirmative marketing, equal opportunity, and compliance with conflict of interest requirements. Page 15 I Subrecipient/MasterLoanAgreement-;':;<:Oll,nLwr ]ö. )UU.\A~i;-:'\LI.d.S.13. :.2'..1',;;-, \-\-23 2.7 F. HomeSight shall deliver all Loan files to King County upon termination of this Agreement, and if King County shall require assignment of any Loans to King County prior to the termination of this Agreement, then HomeSight shall promptly deliver all the files on such Loans to King County. Program records not delivered to King County shall be maintained for five years after the termination of this Agreement, G. HomeSight shall establish and maintain, on a current basis, Program records and an adequate accounting system in accordance with generally accepted accounting standards. The Funds shall be restricted in HomeSight's financial records and shown as restricted funds in HomeSight's annual financial audit. HomeSight shall notify County of any event that results in the acceleration of any indebtedness of HomeSight to a party or parties. H. HomeSight shall have a single financial audit conducted for each calendar year beginning 2002 and ending with the year in which this Agreement shall terminate, and shall deliver a copy to King County no later than one hundred eighty (180) days after the end of the year under audit. HomeSight shall retain all records; except those delivered to King County, for at least five (5) years after the date oftermination of this Agreement. HomeSight shall make available for inspections its performance, financial and all other records pertaining to the performance of this Agreement to authorized County, and Federal personnel, and allow said personnel to inspect and monitor its facilities and program operations, including the interview of HomeSight' s staff and program participants as such personnel may deem necessary to enable King County and Federal officials to fulfill their obligations to insure compliance with all applicable laws. I. IfHomeSight shall provide any statutory notice to commence foreclosure proceedings, or any notice of trustee's sale, or if HomeSight shall commence any legal action against a borrower or for foreclosure of the security for any Loan, HomeSight shall provide a copy of such notice, or the complaint in case of any legal action, to King County at the same time as it is first provided or sent to the borrower or property owner, recorded, or filed with a court, whichever is earliest. IfHomeSight shall receive notice from any other holder of a lien on any home for which a Loan is made, of any intent to foreclose, trustee's sale, or legal action to foreclose such lien, HomeSight shall within ten (10) business days provide a copy of such notice to King County. If so requested by King County, HomeSight shall provide copies to King County of further documents in any proceeding of the type referred to in this subsection, promptly upon HomeSight's receipt or delivery thereof, as applicable. Enforcement of Program Requirements and Agreement. SubrecipientjMaster Loan Agreement -September] 6, 20031\ugU/;, £§.13. 2003 Page 16 I H-~ HomeSight shall enforce HOME and CDBG program requirements. HomeSight shall, for each Loan, obtain from the borrower and enforce a promissory note, recorded deed of trust, and an agreement incorporating HOME and CDBG program requirements, all of which shall be consistent with the terms of this Agreement and applicable laws. The deed of trust shall be in second or third lien position and shall not be subordinate to any debt except for a first mortgage loan from an institutional lender and, if applicable, any additional homeownership assistance loan under a program approved by King County that requires second lien position. If the homebuyer violates any of the HOME and CDBG program requirements the HomeBuyer note and HomeBuyer deed of trust shall become immediately due and payable, at the option of the Holder of the Note. If HomeSight elects to not cause the note and deed of trust to become immediately payable, HomeSight shall provide a substitute Loan to King County that is substantially equivalent in terms and value. HomeSight shall deliver to King County the forms of all documents intended to be signed by homebuyers as part of the Program, including any modifications of prior forms, at least fifteen (15) business days before such forms are used. If HomeSight is requesting material modification of prior forms, HomeSight shall include a description of the requested changes and the basis for the requested change. HomeSight shall promptly make any revisions to such forms that King County may reasonably require; however, HomeSight shall be responsible for the legality of all . documents used and their sufficiency to implement the Program. If, after review, King County fails to request revisions HomeSight shall not be in default for using the documents. 2.8 A. Loan Origination and Servicing Costs. Subject to the terms of this Agreement and applicable laws and regulations, HomeSight may use Receipts for its direct costs of loan origination and servicing in a total amount of $50 per year per Loan during the period when no installments on the Loan are required and 10% of the Receipts received from scheduled installments of principal and interest, and any late charges, paid by the Eligible Homebuyer on each Loan each year once payments on the Loan begin. B. Commencing in 2005, and then every five years thereafter, the parties shall review the costs for loan origination and servicing costs. Upon mutual agreement of HomeSight and County, the servicing costs authorized under this Agreement may be modified to reflect HomeSight's costs of servicing and/or prevailing servicing costs for similar programs. County shall not unreasonably withhold its consent to reasonable servicing cost modifications. C. Prior to applying any Funds to costs of loan origination and servicing, HomeSight shall deliver to King County an itemized statement of the expenses and any supporting documentation that King County may Subrecipient/Master Loan Agreement-September 16. 2003,\ubunt d13. 200:3 Page 17 I H-25 2.9 2.10 require, together with the proposed amounts to be paid from each type of Receipts and the current balance in the account that will pay the expenditure. Upon receipt of King County's written approval of the itemized statement HomeSight may apply such Funds to the listed expenses. Servicing costs shall be paid annually in December until the first Loan originated under an Existing Contract becomes amortizing. After that time HomeSight, at its option, may pay servicing costs quarterly or annually from the Loan Receipts. D. HomeSight shall establish a reserve fund with'Local Fund Receipts to pay Loan servicing and origination costs when Loans are non-amortizing. Once Loans begin to amortize, the reserve fund may be used to originate additional Loans. E. HomeSight shall provide servicing activities under this Agreement. The servicing activities are listed on Exhibit C-3. Separate Records and Funds. -HomeSight shall promptly deposit all Receipts in bank accounts approved by King County, consistent with Section 2.4 above. HomeSight shall not commingle any Funds or Receipts with any other assets of HomeSight. HomeSight shall not commingle HOME Funds with any other Funds. HomeSight shall maintain separate records for the expenditure of each of the above categories of Funds and HomeSight assets. HomeSight shall maintain such records as are necessary to distinguish the use of CDBG Receipts from the use of any other Funds. Modifications, Consents, Releases, Subordinations. A. HomeSight shall not, without the express written consent of King County or the Committee agree to or permit any of the following: the release of any person liable or the release, compromise, subordination, extension, or assumption or material modification or waiver of the terms of any Loan, any security for a Loan, or any of the documents or agreements by which any person is bound in connection with a Loan unless such action is authorized by this Agreement or by the policies adopted by the Committee. The Committee shall only subordinate Loans in a manner consistent with the Subordination Policy. In regard to Loans made with HOME Funds and HOME Receipts, the policies and actions of the Committee must be consistent with the requirements of the HOME Program. B. HomeSight shall cause a full re-conveyance of deed of trust to be executed and recorded upon full payment of all amounts secured thereby. Unless King County shall have given notice to HomeSight that HomeSight is in Subrecipient/Master Loan Agreement -SePtember 16. 2003.'\uguct £13, 2003 Page 18 I \-\ ~ 1-lD 2,11 2.12 2.13 breach or default hereunder or that King County has elected to terminate this Agreement, HomeSight shall have the following rights: HomeSight may grant extensions for payment of installments, and may waive late charges, or default interest, or both, on condition that some or all past due installments be paid. HomeSight may allow assumption of a Loan by a new owner-occupant in circumstances when HomeSight would not be permitted by applicable law to require full payment or, to the extent pennitted by applicable laws and regulations, in any other circumstances in which the home is purchased by an Eligible Homebuyer for a price consistent with the affordability requirements of Section 2.3 above and the definition of "Modest Housing". HomeSight may also, if a Loan is not in default, subordinate the security for a Loan to a new first mortgage loan or other homeownership assistance loan consistent with the Subordination Policy. After any notice from King County to HomeSight that HomeSight is in default or that this Agreement is being terminated, HomeSight shall not take any of the foregoing actions without the express written approval of King County. Prior Notice of Transfer. At least fifteen (15) business days prior to the sale or transfer any Loan Assets, HomeSight shall notify King County in writing of such proposed sale or transfer. HomeSight shall not sell or transfer any Loan Assets at any time when there is an uncured default by HomeSight under this Agreement. Any sale (other than for an amount equal to the face value of the Loan), or transfer of a Loan, unless otherwise expressly agreed by King County, shall be subject to the security interest of King County therein. Certain Commitments and Loans Prohibited. HomeSight shall not, without the express written consent of King County consistent with 92.504 (2), make a commitment to any developer, seller or any affiliate, to provide Loans to purchasers of homes built or sold by such developer or seller. King Count, First Homes Program A !he parties agree the King Count, llr')! [omes P()gral1J pruportiof],i! shares will be set as or December :; 1. 2UU3. i\nml,¡jh. ill!\ Ile\\ South .._. . Kin}!, Count, suburban jurisdictions nla' join thc Kin,!.'. Count' hrst Ilomcs PrOt.'.ram by il\^>,trdin,!.'. cr )[j(j I LInd:; tt) IlomeSi!.'.ht. "\'IIlU,¡j 1\. an\ Participating Suburban .lurisdictiu) may ,¡ward to IlomcSi}!,ht additiullal money li)r the King Ct)UIll\ ¡i¡-"Illumes Prul.'.ram. \Vhcn al1\ addition,tI SubrecipientjMaster Loan Agreement -~ePlcrnl>(T j (J. 100J~w;t d13. 2003 Page 19 I H-;t, 3.1 Funds are awarded to I Ioll1eSighL Kim'. Countv shall amend [xhihit [) to r(lIcc! additional Loans that \vill he uri~jnated b\)Ioll1(Sight inJhose Participating Suburban Jurisdictions (\\varding l'unc!s. B. When additional Funds are awarded as described in 2.13(1\). the proportional shares in Exhibit G will onh be rni,sed every three (ì) Veal'S pursuant to Section 2.2(lJ). c. Not later than January 1,2006, and every tluee years thereafter, the Committee shall review" the proportional shares of the PSRLF and märke! condition. and make recommendations to King County and the Participating Suburban Jurisdictions on future distributions of the PSRLF, including whether additional participation is warranted based on interest and market demand, D. JfHol11eSight applies to new South Kin}.!. County suburban jurisdictions or Participating Suburban Jurisdictions for additional CDBCì Funds or HOME Funds. HomeSighl shall notify King County and the ParlicipaliIlg Suburban Jurisdictions. I-IomcSight shall also notify King County and the Participating Suburban Jurisdictions if additional Funds are awarded for the First Homes Program with ten business davs L Am party or any Participating Subwrban Jurisdiction may propose an amendment to this Section (2.13). The parties and the Participatin}!, Suburban Jurisdictions shaH work toward consensus on any amendment. I f consensus cannot be reached. this Section shall onl" be amended upon an acceptance by the parties and a majority of the Participating Suburban Jurisdictions based on their proportional shares in the First I-Iomes Program. PART III. GENERAL PROVISIONS Duration of Agreement This agreement shall take effect as of the Effective Date and shall continue through the date which is twenty years after the Effective Date, or until this Agreement is terminated in accordance with its terms, whichever occurs first, provided however, that if HomeSight is in full compliance with the terms hereof, HomeSight shall have the option, by written notice to King County given not more than six months nor less than three months prior to the termination date stated above, to extend the term of this Agreement for an additional ten (I 0) year period. All terms and conditions set forth herein shall apply to this extension period, except there shall be no option for fu~er extension. The effective period of time for compliance with all conditions contained in this Agreement, and any amendments thereto, shall begin in the month that the first Subrecipient/Master Loan Agreement -SePtember 16. 2003,^.uguct ~13, ~OO3 Page 20 I K-~ 3.2 Loan is made, and shall terminate at the end of the month that the last outstanding Loan made to any borrower directly or indirectly using any Funds is no longer outstanding. Indemnity and Liability, A. HomeSight agrees to indemnify and hold harmless King County and its officers, employees and assigns, against all claims arising from the acts, omissions, or negligence of Home Sight, its officers or employees under this Agreement. HomeSight waives, solely with respect to County, its immunity under RCW Title 51, Industrial Insurance. HomeSight and acknowledges tbat tbis waiver bas been specifically negotiated and tbat County would not enter into tbis Agreement absent tbis waiver. This indemnity provision shall survive any termination or expiration of this Agreement. B, In providing services under this Agreement, HomeSight is an independent Contractor, and neither it nor its officers, agents, or employees are employees of King County for any purpose. HomeSight shall be responsible for all federal and/or state tax, industrial insurance, and Social Security liability that may result from the performance of and compensation for these services and shall make no claim of career service or civil service rights which may accrue to a County employee under state or local law. C. King County assumes no responsibility for the payment of any compensation, wages, benefits, or taxes, by, or on behalf of HomeSight, its employees, and/or others by reason ofthis Agreement. HomeSight shall protect, indemnify, and save harmless King County, its officers, agents, and employees from and against any and all claims, costs, and/or losses whatsoever occurring or resulting from (1) HomeSight's failure to pay any such compensation, wages, benefits, or taxes, and/or (2) the supplying to HomeSight of work, services, materials, or supplies by HomeSight employees or other suppliers in connection with or support of the performance of this Agreement. This indemnity provision shall survive any termination or expiration of this Agreement. D. King County will protect, defend, indemnify, and save harmless HomeSight, its officers, employees, and agents from any and all costs, claims, judgments, and/or awards of damages, arising out of, or in any way resulting from, the sole negligent acts or omissions of King County, its officers, employees, or agents. King County agrees that its obligations under this subparagraph extends to any claim, demand, and/or cause of action brought by, or on behalf of, any of its employees or agents. For this purpose, King County, by mutual negotiation, hereby waives, as respects HomeSight only, any immunity that would otherwise be available against SubrecipientjMaster Loan Agreement-September 16. 2003.'\',!gu:;t £5.13, '2003 Page 21 I ~-2-,\ 3.3 3.4 3.5 such claims under the Industrial Insurance provisions of Title 51 RCW. In the event, HomeSight incurs any judgment, award, and/or cost arising therefrom including attorneys' fees to enforce the provisions of this article, all such fees, expenses, and costs shall be recoverable from King County. This indemnity provision shall survive any termination or expiration of this Agreement. Claims shall include, but not be limited to, assertions that use or transfer of software, book, document, report, film, tape, or sound reproduction or material of any kind, delivered hereunder, constitutes an infringement of any copyright, patent, trademark, trade name, and/or otherwise results in unfair trade practice. Compliance with Statues and Regulations. In the performance of this Agreement, HomeSight shall obey and comply with all laws of the United States, the State of Washington and the ordinances, regulations, policies and code, of King County. Remedies of County A. In the event of breach of this Agreement by HomeSight, in addition to the rights set forth in this Agreement, King County shall have all remedies available at law or in equity, including damages and injunctive relief. B. King County's remedies under this Agreement are cumulative; the failure to exercise on any occasion any right shall not operate to forfeit such right on another occasion. The use of one remedy shall not be taken to exclude or waive the right to use another. C. If King County determines that any Funds or Receipts have been applied to purposes other than Loans to Eligible Homebuyers authorized hereunder and eligible costs ofloan servicing, or that Funds or Receipts were used for such costs in excess of amounts permitted hereunder, then HomeSight shall reimburse King County the amount of Funds determined to have been improperly used upon written demand. This provision shall survive any termination or expiration of this Agreement. Default and Corrective Action A. Default by HomeSight. If King County determines that a breach of the Agreement has occurred because HomeSight failed to comply with any material terms or conditions of this Agreement or HomeSight has failed to provide in any manner the work or services agreed to and if King County SubrecipientjMaster Loan Agreement -September 16. 2003August ~13, 2003 Page 22 I \-\;30 deems said breach to warrant corrective action, the following sequential procedure will apply: 1. King County will notify HomeSight in writing of the nature of the breach and designate a date to meet with HomeSight to consult on a Corrective Action Plan. This date shall be within six (6) business days of receipt of the notice by HomeSight; HomeSight shall submit a plan describing the specific steps being taken to correct the specified deficiencies ("Corrective Action Plan"). HomeSight may consult with King County in developing the Corrective Action Plan. The Corrective Action Plan shall be submitted to King County within ten (10) business days from the date of the meeting between HomeSight and King Coè.!nty BfCullntv or HomeSight's receipt of King County's notice under this Section. which ever ¡slater. The Corrective Action Plan shall specify the proposed completion date for bringing the Agreement into compliance, which completion date shall not be more than thirty (30) days from the date King County receives HomeSight's Corrective Action Plan, unless King County, in its sole discretion, in writing extends the number of days to complete the Corrective Action Plan. 2. 3. Upon receipt of the proposed Corrective Action Plan, King County will notify HomeSight of a date to meet and discuss any issues related to the proposed Corrective Action Plan. This meeting shall occur within five (5) business days of King County's receipt of the proposed Corrective Action Plan. King County may, at King County's sole discretion, allow HomeSight to submit a revised Corrective Action Plan, provided such Corrective Action Plan is received within five business days from the date of the meeting. 4. Within tenJlQ} business days of King County's receipt of the Corrective Action Plan, King County will notify HomeSight of King County's determination as to the sufficiency of the Plan. If King County has allowed HomeSight to submit a revised Corrective Action Plan, within ten (10) business days of King County's receipt of the revised Corrective Action Plan. King County will notify HomeSight in writing of King County's determination as to the sufficiency of the revised Corrective Action Plan. The determination of sufficiency of the Corrective Action Plan or revised Corrective Action Plan shall be at the sole discretion of King County SubrecipientjMaster Loan Agreement-ScPLcnJi)C; lu. 2UUJ~~;~ d13. 20ln Page 23 I H-~I 3.6 5._HomeSight shall act to complete the approved Corrective Action Plan within the time designated in the approved Corrective Action Plan.~ Failure to complete the approved Corrective Action Plan within the designated time shall constitute a material breach of this Agreement. Any extension of time designated for completion of the approved Corrective Action Plan shall be at the sole discretion of King County. B. Termination of Agreement. In the event that 1) HomeSight does not respond within the appropriate time with a Corrective Action Plan, 2) HomeSight's Corrective Action Plan is determined by King County to be insufficient, or 3) HomeSight does not complete the Corrective aAction Plan with the authorized time period, King County may commence termination of this Agreement in whole or in part pursuant to the termination section below. C. Effect on Funds of Notice of Corrective Action. King County may provide the Depository Institution(s) holding Funds notice of the breach of this Agreement and request that no further disbursements from the accounts be allowed without County written authorization until a satisfactory Corrective Action Plan is provided by HomeSight and completed. King County shall notify the Appropriate Depository Institution(s) when the Corrective Action Plan has been completed and County approval for disbursements is no longer required. D. No Waiver of Other Remedies. Nothing herein shall be deemed to affect or waive any rights the parties may have pursuant to this Agreement or other remedies authorized by law. TERMINATION A. Termination for Convenience. 1. This Agreement may be terminated by King County without cause, in whole or in part, prior to the Termination Date by providing HomeSight one hundred and twenty (120) days advance written notice of the termination, provided King County may not terminate this Agreement until the first Loan originated under the Existing Contract becomes amortizing, 2. HomeSight shall have the ability to terminate this Agreement upon one hundred and twenty (120) days written notice to King County, provided HomeSight may not terminate this Agreement until the first Loan originated under the Existing Contract becomes amortizing or if HomeSight is in breach of this Agreement. Page 24 I SubrecipientjMaster Loan Agreement -SePtember I Ö. 2UU;3,\ugw;t ..213. . 'l'():" \-{-'32- If the Agreement is terminated for convenience by either HomeSight or County, (1) King County will be liable only for payment in accordance with the terms of this Agreement for services rendered prior to the effective date of termination; (2) HomeSight shall be released from any obligation to provide such further services pursuant to the Agreement as are affected by the termination. (3) HomeSight shall deliver to County all documents, files and records or copies thereof pertaining to any work that may be in progress, and (4) the Master Note shall become immediately due and payable upon such termination. 3. B. Termination for Cause. King County may terminate this Agreement, in whole or in part, upon seven (7) business days advance written notice to HomeSight, in the event: (1) HomeSight materially breaches any duty, obligation, or service required pursuant to this Agreement and such breach has not been cured by a Corrective Action Plan acceptable to County or (2) the duties, obligations, or services required herein become impossible, illegal, or not feasible. 1. 2. The following shall be presumed to constitute a material breach of this Agreement: [a) [b) [c) [d) Any default on the Master Note; Any failure on the part of HomeSight to carry out in a substantial manner any of the actions required by this Agreement; Any improper or illegal use of Funds or Receipts; Provision by or on behalf of HomeSight of any materials, information, reports or documentation that are materially incomplete, incorrect or false, either knowingly or inadvertently, provided that this does not include materials, information, reports or documentation provided to HomeSight from third parties, (including Eligible Homebuyers) or materials, information, reports or documentation prepared by HomeSight based upon incomplete, incorrect or false information, reports or documentation provided to HomeSight from third parties, (including Eligible Homebuyers); or [e] Any failure to resolve audit findings associated with this Agreement in the time frame prescribed by the auditors or, Subrecipient/Master Loan Agreement-September] (). 2003.'\u¡;uGt ~13, 200:~ Page 25 I \1-3 ~ if no timeframe is identified, by the auditor, within a reasonable time as agreed to by King County and HomeSight, [t] Failure of HomeSight to respond to the Notice of Breach or to complete the Approved Corrective Action Plan approveQG by King County. 3. If the termination results from acts or omissions of HomeSight, including but not limited to misappropriation, nonperformance of required services, or fiscal mismanagement, HomeSight shall return to King County immediately all collateral identified in the Security Agreement First Homes Program and any Funds, misappropriated or unexpended, which have been paid to tOO HomeSight by King County. 4. If the Agreement is terminated as provided in this Subsection: (1) King County will be liable only for payment in accordance with the terms of this Agreement for services rendered prior to the effective date oftermination; (2) HomeSight shall be released from any obligation to provide such further services pursuant to the Agreement as are affected by the termination, (3) HomeSight shall deliver to County all documents, files and records or copies thereof pertaining to any work that may be in progress, and (4) the Master Note shall become immediately due and payable upon such termination. 5. If the Agreement is terminated as provided in this Subsection, County shall also notify the Depository Institution(s) holding Funds of King County's decision to terminate the Agreement for cause. HomeSight agrees that upon receipt of this notice King County may request that the Depository Institution may honor County's directions consistent with the Blocked Account Control Agreement. 6. Upon notice of termination for cause, HomeSight agrees that King County shall be free to execute on its collateral pursuant to the Security Agreement and King County shall be entitled to the Funds held by any Depository Institution shall be paid to King County pursuant to the Control Agreement. HomeSight also agrees that King County shall be authorized to record the assignments of the Notes and Deeds of Trust upon notice of termination for cause. 7. Upon notice of termination for cause, the parties agree that 2000- 2001 Awarded Funds that have not been disbursed to HomeSight SubrecipientjMaster Loan Agreement -September 16. 2003,^.u¡;uGt Q13, 2003 Page 26 I H-5'1 3.7 3.8 for a Loan shall be returned to the appropriate CDBG, HOME or HOF account. No Partnership. Nothing herein is intended to, or shall be construed to create a relationship of partnership or joint venture. HomeSight is not authorized to bind King County or make any agreement or commitment on behalf of King County. No officer, employee, agent or representative of Home Sight shall held represent himself or herself to be an officer or employee of King County, nor as authorized to bind King County, nor shall any such person make any claim, demand or application to or for any right or privilege applicable to any officer or employee of King County, including but not limited to Worker's Compensation coverage, Unemployment Insurance Benefits, Social Security Benefits or retirement membership or credit. HomeSight shall indemnify and hold County harmless from any such claim or demand. Entire Agreement, Amendments; Waivers. A The Agreement, including the exhibits attached hereto, the related security and the loan documents and legal authorities referred to herein, constitutes I the entire agreement of the parties with respect to the Loans and the Program, and supersedes, to the extent of any inconsistency, any and all prior agreements and understandings, written or oral, with respect to the Loans and the Program, including the Existing Contracts and the 200Q-l- 2001~ Awarded Funds. Any action prior to the date of execution of this Agreement that was authorized under one of the Existing Contracts shall not be considered a breach or default under this Agreement. B. Either party or a Participating Suburhan Jurisdiction may request changes to this Agreement. Kin\! County ~shal1 provide the other party and each Participating Suhurhan Jurisdiction \vith a written COPy of any proposed amendment to this Agreement, med with the Participatinu. Suburban Jurisdictions to obtain their opinions concerning the proposed amendment. and attempt to reach consensus on the proposed amendment. If consensus cannot be reached King County and !-Iol11eSi,u.ht shall make the fìnal decision on whether or not to amend this i\greement except as provided iQ. Section 2.] J. Proposed changes, which are mutually agreed uponJ?y HomeSighh and King County and the Participatinf.', Suburban Juri~~dictiom, shall be incorporated by written amendments to this . Agreement and copies shall be provided to each Participatin¡.'. Suburban Jurisdiction, Any amendment must be consistent with CDBG and HOME program regulations.: C. Neither disbursement of Funds for the Master Loan under this Agreement, nor any other action of King County or its agents or employees, shall SubrecipientjMaster Loan Agreement -SePtembtT 16. 2003,^.ubuÐt ~13, 200;1 Page 27 I H-~5 3.9 3.10 3.11 3.12, 3.13 constitute a waiver of any of the terms or conditions hereof. No tenn or provision hereof shall be deemed waived and no consent shall be deemed given unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party to, or waiver of, a breach by the other whether express or implied, shall not constitute a waiver of or consent to, or excuse for, any different or subsequent breach. Time. Time is of the essence hereunder. Severability . If any provision hereof, or the application thereof in any circumstances, shall be held invalid, unlawful, or unenforceable then the remainder of this Agreement, or the application to other circumstances, as the case may be, shall not be affected. Captions, The titles of the articles, sections and subsections of this Agreement are for convenience only, ~d do not define or limit the contents. Construction, This Agreement shall not be construed in favor of or against either party based upon which party drafted this Agreement. Where applicable, the singular shall be construed to include the plural and vice versa. Notices. Any notice that any party is required or may desire to give to any other party shall be in writing and shall be personally delivered or mailed by the United States first class mail, addressed as follows: To HomeSight: HomeSight 5117 Rainier Avenue S Seattle, W A 98118 Attn: Executive Director Page 28 I Subrecipient/Master Loan Agreement ~':)cPtembcr 16. 200T\uguGt ::213, 2003 H-~ 3.14 3.15 3.16 3.17 3.18 To County: King County Housing and Community Development Exchange Building 821 Second Avenue, Suite 500 Seattle, WA 98104 Attn: Department Director subject to the right of either party to designate a different address for itself by notice similarly given. Any notice so given, delivered, or made by United States mail shall be deemed to have been given on the third (3rd) day after the same is deposited in the United States mail. Any time within which a party must take some action shall be computed from the date that the notice is received by said party. Assignment or Transfer of Interest; Successors. HomeSight shall not assign its rights or obligations under this Agreement, without the express written agreement of King County. King County's grant of consent to such assignment shall not waive its right to consent to future assignments. Subject to the restriction in the previous sentence, this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assIgns. Applicable Law; Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. The venue of any action brought hereunder shall be in the Superior Court for King County. Additional Documents. HomeSight shall execute and deliver to King County, promptly upon demand by King County, all additional documents that King County shall reasonably require to give effect to the intentions of any of the provisions of this Agreement, including without limitation assignments of deeds of trust and endorsements on promissory notes. Costs and Attorneys Fees If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney's fees in connection therewith. Bonding and Insurance Requirements Subrecipient/Master Loan Agreement -SePtember 16, 2003i\ugUGt 2!i13. 2003 Page 29 I . -H- 3l A By the date of execution of this Agreement, HomeSight shall procure and maintain for the duration of this Agreement,. insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of work hereunder by HomeSight, its agents, representatives, employees, and/or subcontractors. The costs of such insurance shall be paid by HomeSight or subcontractor. HomeSight may furnish separate certificates of insurance and policy endorsements for each subcontractor as evidence of compliance with the insurance requirements of this Agreement. HomeSight is responsible for ensuring compliance with all of the insurance requirements stated herein. Failure by HomeSight, its agents, employees, officers, subcontractors, providers, and/or provider subcontractors to comply with the insurance requirements stated herein shall constitute a material breach of this Agreement. For All Coverages: Each insurance policy shall be written on an "occurrence" form; except that insurance on a "claims made" form may be acceptable with prior County approval. If coverage is approved and purchased on a "claims made" basis, HomeSight warrants continuation of coverage, either through policy renewals or the purchase of an extended discovery period, if such extended coverage is available, for not less than three (3) years from the date of Agreement termination, and/or conversion from a "claims made" form to an "occurrence" coverage form. By requiring such minimum insurance, King County shall not be deemed or construed to have assessed the risks that may be applicable to HomeSight under this Agreement. HomeSight shall assess its own risks and, if it deems appropriate and/or prudent, maintain greater limits and/or broader coverage. Nothing contained within these insurance requirements shall be deemed to limit the scope, application and/or limits of the coverage afforded by said policies, which coverage will apply to each insured to the full extent provided by the terms and conditions of the policy(s), Nothing contained within this provision shall affect and/or alter the application of any other provision contained within this Agreement. B, Minimum Scope of Insurance Coverage shall be at least as broad as: 1. General Liability: Insurance Services Office form number (CG 00 01 Ed. 11-88) covering COMMERCIAL GENERAL LIABILITY). 2. Professional Liability: SubrecipientjMaster Loan Agreement -ScpLernbcI 16, 2003,^.uguGt 2213.2003 H-3~ Page 30 I Professional Liability, Errors, and Omissions coverage. In the event that services delivered pursuant to this Agreement either directly or indirectly involve or require professional services, Professional Liability, Errors, and Omissions coverage shall be provided. "Professional Services", for the purpose of this Agreement section, shall mean any services provided by a licensed professional or those services that require a professional standards of care, 3, Automobile Liability: In the event that services delivered pursuant to this Agreement require the use of a vehicle or involve the transportation of clients by HomeSight personnel in HomeSight-owned vehicles or non-owned vehicles, HomeSight shall provide evidence of the appropriate automobile coverage. Insurance Services Office form number (CA 00 01 Ed. 12-90) covering BUSINESS AUTO COVERAGE, symbo11 "any auto"; or the appropriate coverage provided by symbols 2, 7, 8, or 9. 4, Workers' Compensation Workers' Compensation coverage, as required by the Industrial Insurance Act of the State of Washington, as well as any similar coverage required for this work by applicable federal or "Other States" state law, _Stop GapÆmployers Liability Coverage shall be at least as broad as the protection provided by the Workers' Compensation policy Part 2 (Employers Liability) or, in states with monopolistic state funds, the protection provided by the "Stop Gap" endorsement to the general liability policy. c. Minimum Limits of Insurance HomeSight shall maintain limits no less than, for: 1. General Liability: $1,000,000 combined single limit per occurrence by bodily injury, personal injury, and property damage, and for those policies with aggregate limits, a $2,000,000 aggregate limit. 2. Professional Liability, Errors, and Omissions: $1,000,000 per claim and in the aggregate. 3. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. Except if the SubrecipientjMaster Loan Agreement -September 16. 2003/\uguot ~13. ~OO3 Page31 I tt-3,\ transport of clients by Agency personnel is involved, then Risk Management will review the appropriate amount of coverage. 4. Workers' Compensation: Statutory requirements of the state of residency. 5. Stop Gap/Employers Liability: $1,000,000 D. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to, and approved by, King County. The deductible and/or self-insured retention of the policies shall not apply to HomeSight's liability to King County and shall be the sole responsibility of Home Sight. E. Other Insurance Provisions The insurance policies required in this Agreement are to contain, or be endorsed to contain, the following provisions: 1. Liability Policies Except Professional and Workers Compensation a. King County, its officers, officials, employees, and agents are to be covered as additional insureds as respects liability arising out of activities performed by or on behalf of HomeSight in connection with this Agreement. b.\(~:~~I-I()mcSight's insurance coverage shall be primary insurance as respects King County, its officers, officials, employees, and agents. Any insurance and/or self- insurance maintained by King County, its offices, officials, employees, or agents shall not contribute with HomeSight's insurance or benefit HomeSight in any way. c. HomeSight's insurance shall apply separately to each insured against whom claim is made and/or lawsuit is brought, except with respect to the limits of the insurer's liability. . 2. All Policies Coverage shall not be suspended, voided, canceled, reduced in coverage or in limits, except by the reduction of the applicable aggregate limit by claims paid, until after forty-five (45) days prior written notice has been given to King County. F. Acceptability of Insurers Subrecipient/Master Loan Agreement -September 1 b. 1003,'\.u¡:.;u~)t ~13, '2003 rt-4b Page 32 I Unless otherwise approved by King County, Insurance is to be placed with insurers with a Bests' rating of no less than A: VIII, or, if not rated with Bests, with minimum surpluses the equivalent of Bests' surplus size VIII. Professional Liability, Errors, and Omissions insurance may be placed with insurers with a Bests' rating ofB+VII, Any exception must be approved by County. G. If, at any time, the foregoing policies shall fail to meet the above minimum requirements HomeSight shall, upon notice to that effect from King County, promptly obtain a new policy, and shall submit the same to King County, with appropriate certificates and endorsements, for approval. H. Verification of Coverage HomeSight shall furnish King County certificates of insurance and endorsements required by this Agreement. Such certificates and endorsements, and renewals thereof, shall be attached as Exhibits I to the Agreement. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements for each insurance policy are to be on forms approved by King County prior to the commencement of activities associated with the Agreement. King County reserves the right to require complete, certified copies of all required insurance policies at any time. I. HomeSight shall file with King County a fidelity bond from a surety acceptable to King County, payable to King County, for a minimum aggregate amount of$lOO,OOO for all employees, which shall be conditioned upon HomeSight faithfully accounting for all Funds received by HomeSight under this Agreement, and further assuring that such Funds are used only for the purposes of this Agreement, HomeSight shall increase the fidelity bond coverage as reasonably required by King County given the amount of money handled by HomeSight employees within fifteen (I 5) business days of King County's written request. Notwithstanding any other provision herein, HomeSight may provide, in lieu of the fidelity bond, such other insurance coverage as may be acceptable to King County. PART IV: FEDERAL REGULATORY REQUIREMENTS HomeSight represents, warrants and covenants that HomeSight has complied with and shall comply with all applicable federal requirements related to the use of federal HOME and CDBG funds, or both, as applicable, including without limitation Subrecipient/Master Loan Agreement-,'-)crHcmIJlT ii'-'!iU"Ar,,":*:.: ~13. ..'U():~ Page 33 I H-4 applicable provisions of24 CFR Parts 5 and 6, and the applicable requirements below in this Part IV: A Equal Opportunity. No person shall on the grounds ofrace, color, national origin, religion or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with HOME or CDBG funds. HomeSight shall comply fully with the requirements of the Fair Housing Act (42 U.S,C, Sections 3601-20) and implementing regulations at 24 CFR Part 100; Executive Order 11063, as amended by Executive Order 12259 (3 CFR, 1958-1963 Comp., p,652 and 3 CFR, 1980 Comp., p.307) (Equal Opportunity in Housing) and implementing regulations at 24 CFR Part 107. HomeSight shall comply fully with all requirements of Title VI of the Civil Rights Act of 1964,42 U.S.C. 2000d et seq., which provides that no person in the United States shall on the ground of race, color or national origin, be excluded from participation in, denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance; and with Department of Housing and Urban Development ("BUD") regulations implementing such requirements, 24 c.F.R. Part 1. {24 C.F.R. Section 92.350(a)} HomeSight shall ensure compliance with Executive Order 11246, entitled "Equal Opportunity" (3 CFR, 1958-1963 Comp., p.339), as amended by Executive Orders 11375, 11478, 12086 and 12107, and the regulations issued pursuant thereto, 41 C.F.R. Part 60, which provide that no person shall be discriminated against because of race, color, religion, sex or national origin in all phases of employment during the performance of federal contracts and subcontracts, and HomeSight shall take affirmative action to ensure fair treatment in employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay, or other forms of compensation and selection for training or apprenticeship. HomeSight shall comply fully with all of the requirements and prohibitions of the Age Discrimination Act of 1975 (42 US.C. Sections 6101-07) and implementing regulations at 24 C.F.R. Part 146 and those of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. Section 794), and implementing regulations at 24 c.F.R. Part 8. B. Additional Federal Nondiscrimination Requirements. HomeSight shall comply with all applicable federal laws prohibiting discrimination, including the following: 1. Executive Order 11063 as amended by Executive Order 12259 and implementing regulations at 24 CFR Part 107; 2. Section 109 of the HCD Act of 1974, as amended (42 USC 5301); SubrecipientjMaster Loan Agreement -SePtember ] 6. 2003AuguG( ¿§,13. 2003 Page 34 I ~--4 2- 3, The Americans with Disabilities Act (42 USC 1213; 47 USC 155, 201, 218 and 225); and 4. Section 504 of the Rehabilitation Act of 1973 and regulations at 24 CFR Part 8. c. Minority and Women's Business Enterprises. HomeSight shall comply with, and shall cooperate fully in programs and procedures adopted by County to comply with, the requirements of Executive Orders 11625 and 12432 (concerning Minority Business Enterprise) and 12138 (concerning Women's Business Enterprise) and, if HOME funds are involved, with procedures established by County pursuant to 24 CFR Section 92.351 b, "Minority Outreach." HomeSight shall maintain and shall provide to County on request data indicating the racial/ethnic character of each business entity receiving a contract of $25,000 or more paid, or to be paid, with HOME or CDBG funds, data indicating which of those entities are women's business entities as derIDed in Executive Order 12138, the amount of the contract or subcontract, and documentation of HomeSight's affmnative efforts as described in 24 CFR Section 570.506(g)(6), ifCDBG funds are involved, or Section 92,508a(7), if HOME funds are involved. Nothing herein shall be construed to require or authorize any discrimination or preferential treatment contrary to applicable law. Page 35 I Subrecipient/Master Loan Agreement -SePtember 16, 2003,^.uguo: 213, :3003 H.. Y :; D. Audit Requirements. 1. HomeSight shall comply, at HomeSight's expense, with all applicable requirements under the federal Single Audit Act Amendments of 1996 and regulations now or hereafter adopted thereunder, including without limitation federal OMB Circular A- 133. The audit shall comply with the requirements of generally accepted auditing standards "GAAS"; GAO's Standards for Audits of Governmental Organizations, Programs, Activities, and Functions; and OMB Circular A-B3, as amended, and as applicable. In addition, County's auditor shall have access to HomeSight's records and financial statements as may be necessary for County to comply with such Act and regulations. 2. Each audit report shall include at a minimum: a. An opinion on financial statements and a schedule of financial assistance; and b. A report on a supplemental schedule showing the balances of each account maintained for the Funds and the cash deposited and disbursed therefrom, and the Loans outstanding made from each such account; c. Show the PSRLF First Homes Program Loans and Receipts as restricted funds, and d. A report on the study and evaluation of the organization's internal control structure. 3. A representative of King County shall have the right to be present at the independent auditor's exit interview with HomeSight. HomeSight shall provide a copy of the audit report to each County division providing financial assistance to HomeSight no later than six (6) months after the end of HomeSight's fiscal year. HomeSight shall provide to King County their response and corrective -plan for all findings and reportable conditions contained I in their audit. When reference is made in their audit to a "Management Letter" or other correspondence made by the auditor, HomeSight shall provide copies of those communications and HomeSight's response and corrective plan. Working papers of the independent auditor shall be made available to King County or its designee with ten (10) business days- upon request. Subrecipient/Master Loan Agreement -SePtember 16, 2003^uguot ~13, 2003 \1,44 Page 36 I 4. Additional audit or review requirements which may be imposed on King County by HUD will be passed on to HomeSight and HomeSight will be required to comply with any such requirements. Flood Insurance Protection. If any property for which a Loan is made from HOME or CDBG funds is in a special flood hazard area as identified by the Federal Emergency Management Agency, then HomeSight shall ensure that flood insurance is and shall remain in effect, in accordance with Section 1O2(a) of the Flood Disaster Protection Act of 1973 (42 U.S,C. Section 4001). E. F. Conflict of Interest; Consultants. 1.' No officer, agent, employee, consultant or elected or appointed official of King County of King or of any sub-recipient receiving HOME or CDBG funds (as defined in 24 CFR Parts 92 and 570, respectively) who exercises or has exercised any functions or responsibilities with respect to activities assisted by HOME or CDBG funds or who is in a position to participate in a decision making process or gain inside information with respect to these activities, shall obtain any financial interest or benefit, for himself or herself or those with whom he or she has family or business ties, in the activity funded under this Agreement or in any contract or subcontract or agreement with respect thereto or the proceeds thereof; nor shall (s)he for one year after completion of his or her tenure with King County or such sub-recipient obtain any such financial interest or benefit. HomeSight shall incorporate in all such contracts or subcontracts a provision prohibiting any such interest. In addition, no owner, developer or sponsor of a project assisted with HOME funds (or officer, employee, agent, elected or appointed official or consultant of the owner, developer or sponsor) may occupy a HOME-assisted housing unit. No person providing consultant services in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME funds, and in no event shall such compensation exceed the limits in effect under any applicable law. All such consultant services shall be evidenced by written agreements that detail the responsibilities, standards and compensation {24 C.F.R. Sections 92.356, 92.358} 2. In the procurement of supplies, equipment, construction or rehabilitation and services, HomeSight shall ensure compliance with the provisionsof24 CFR Section 84.42 HomeSight shall incorporate in all contracts or subcontracts using HOME Funds or CDBG Funds a provision prohibiting any conflict of interest prohibited by this subsection. ~ubrecipient/Master Loan Agreement -SePtember] 6, 2003.'\uguGt Th13, :2003 H-45 Page 37 I 3. No HOME or CDBG funds may be used to payor to provide reimbursement for payment of the salary of a consultant at more than the daily equivalent of the rate paid for level IV of the federal Executive Schedule, unless specifically authorized by law. 4. No HOME or CDBG funds shall be lent to any officer, director, or person serving in a similar capacity for HomeSight, or to any member of the immediate family of any such person, nor shall any loan of HOME or CDBG funds be made for the purchase of any property in which any such person or family member has an interest or in any transaction in which any such person acts as a real estate broker or agent, mortgage broker, or in any similar capacity. G. Debarred Contractors. No portion of the Funds shall be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund, any contractor or Subrecipient during any period of debarment, suspension, or placement in ineligibility status of such contractor or Subrecipient under the provisions of24 C.F.R. Part 24. HomeSight represents and warrants that neither HomeSight nor its principals is debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in federal assistance programs under such regulations or Executive Order 12549, "Debarment and Suspension." HomeSight shall obtain, and shall require contractors and subcontractors to obtain, the certification required by appendix B of 24 CFR part 24 from each prospective contractor or subcontractor to be paid with HOME or CDBG Funds. H. Relocation and Acquisition. HomeSight represents and warrants that it has taken and shall take all reasonable steps to minimize the displacement of persons (families, individuals, businesses, nonprofit organizations, and farms) in connection with the Program. In connection with any Loan using CDBG or HOME Funds HomeSight shall comply with all applicable requirements of the federal Uniform Relocation Act and regulations thereunder, 49 CFR Part 24; 24 CFR Section 92.353 (if HOME funds are used for the Loan), 24 CFR Section 570.606 (if CDBG funds are used for the Loan), and shall maintain complete and accurate records demonstrating such compliance. HomeSight agrees that any determination by County of the amount of relocation assistance due to any person shall be final and binding upon HomeSight, unless a different determination is made by HUD at the request of such person, in which case the HUD determination shall be final and binding on HomeSight. HomeSight agrees that King County may, at its option, provide relocation assistance directly to any person in connection with a Loan and that such amount shall be immediately due and payable by HomeSight to County, at County's demand. HomeSight shall maintain and Subrecipient/Master Loan Agreement -September 16, 2003^ugust ~13, :2003 . H-~~ Page 38 I provide to County on request data indicating the race and ethnicity of households (and gender of single heads of households) displaced in connection with the Program and the address and census tract of the housing to which each displaced household relocated. Such information shall be used only as a basis for further investigation as to compliance with nondiscrimination requirements. 1. Lead-Based Paint. HomeSight shall comply with all applicable requirements of federal, state, and local laws and regulations with regard to lead-based paint, including without limitation 24 CFR Part 35, and 24 CFR Sections 92.355 and 982.4010), to the extent applicable. HomeSight shall be responsible for ensuring that all required testing and lead hazard control activities are performed, and all disclosures made and acknowledged, as required by such regulations or other applicable laws. HomeSight shall require, in connections with any purchase funds by a HOME Funds or CDBG Funds, that any defective lead-based paint surfaces are addressed in full compliance with all applicable laws, regulations, HUD guidelines and prudent. practices. J. Subrecipient Status; Uniform Administrative Requirements. HomeSight understands and agrees that it is a "Subrecipient" of HOME Funds under this Agreement, and shall comply with all requirements applicable to such Subrecipients, Without limiting the foregoing, HomeSight shall comply with applicable uniform administrative requirements as described in 24 CFR Section 92.505(b) for a Subrecipient of HOME Funds. HomeSight understands and agrees it +s---Retis -anot a Community Based Development I Organization (CBDO) or a Community Housing Development Organization (CHDO) under this Agreement. K. Affirmative Marketing Requirements,_King County has approved the affirmative marketing plan attached hereto as Exhibit G-.F. L. Lobbying. HomeSight hereby certifies and agrees as follows, in accordance with 31 U .S.C. Section 1352, to the best of its knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of HomeSight, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any F ederalloan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; SubrecipientjMaster Loan Agreement -September 16. 2003P,uguGt 213, ~OO3 \-\-4"1 Page 39 I M. N. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of this subsection K be included in the award documents for subawards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. . 4. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U. S. Code. Any person who fails to file the required certification shall be . subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Disclosures. HomeSight represents, warrants and agrees that it has provided to King County any and all disclosures required by the HVD Reform Act, 42 V.S.C. Section 3545, and regulations thereunder, 24 CFR Part 4; that it will provide timely updated disclosures to King County to the extent required by such act and regulations; and that all such disclosures are and shall be complete and accurate. Prior Actions. HomeSight represents and warrants that in all actions related to the Program to date HomeSight has complied with all applicable requirements referred to in this Part V. HomeSight shall indemnify and hold harmless King County and its officials and employees fÌ'om any and all liability, loss, damage, costs and expenses resulting fÌ'om any failure by HomeSight to comply with any federal requirement or to document such compliance. PART V. CERTAIN COUNTY REQUIREMENTS AND POLICIES A. Agency Agreement to Repay. HomeSight further agrees that it is financially responsible for and will repay King County all indicated amounts following a HUD audit exception which occurs due to the negligence, intentional act, and/or failure, for any reason, to comply with the terms of this Agreement by HomeSight, its officers, employees, agents, and/or representatives, This duty to repay King County shall not Subrecipient/Master Loan Agreement -September 16, 2003AuguGt 1213, ~OO3 \i- 4 <ß Page 40 I be diminished or extinguished by the prior termination of the Agreement pursuant to the Duration of Agreement or the Termination Sections or payment of the Master Promissory Note. B. Non discrimination and Equal Employment Opportunity 1. Nondiscrimination in Employment Provision of Services. During the performance of this Agreement, neither HomeSight nor any party subcontracting under the authority of this Agreement shall discriminate or tolerate harassment on the basis of race, color, sex, religion, national origin, marital status, sexual orientation, age, or the presence of any sensory, mental, or physical disability in the employment or application for employment or in the administration or delivery of services or any other benefits under this Agreement. 2. Nondiscrimination in Subcontracting Practices During the solicitation, award and term of this Agreement, HomeSight shall not create baniers to open and fair opportunities to participate in County contracts or to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction and services. In considering offers from and doing business with subcontractors and suppliers, HomeSight shall not discriminate against any person on the basis of race, color, religion, sex, age, national origin, marital status, sexual orientation or the presence of any mental or physical disability in an otherwise qualified disabled person. 3. Compliance with Laws and Regulations HomeSight shall comply fully with all applicable federal, state and local laws, ordinances, executive orders and regulations that prohibit discrimination. These laws include, but are not limited to, RCW Chapter 49.60, Titles VI and VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Restoration Act of 1987. HomeSight shall further comply fully with any affirmative action requirements set forth in any federal regulations, statutes or rules included or referenced in this Agreement. 4, Small Business and Minority and Women Business Enterprise Opportunities County encourages HomeSight to utilize small businesses, including Minority-owned and Women-owned Business Enterprises ("MlWBEs") in County contracts. King County Subrecipient/Master Loan Agreement -SePtember 16. 2003,\uç;'..1r;t a13. ::;003 H-4i Page 41 I 5. encourages HomeSight to use the following voluntary practices to promote open competitive opportunities for small businesses, including MlWBEs: a. Attending a pre-bid or pre-solicitation conference, if scheduled by King County, to provide project information and to inform small businesses and other firms of contracting and subcontracting opportunities. b. Placing all qualified small businesses, attempting to do business in County, including M/WBEs, on solicitation lists, and providing written notice of subcontracting opportunities to these firms capable of performing the work, including without limitation all businesses on any list provided by King County, in sufficient time to allow such businesses to respond to the written solicitations. c. Breaking down total requirements into smaller tasks or quantities, where economically feasible, in order to permit maximum participation by small businesses, including M/WBEs. d. Establishing delivery schedules, where the requirements of this Agreement permit, that encourage participation by small businesses, including M/WBEs. e. Providing small businesses, including MlWBEs that express interest with adequate and timely information about plans, specifications, and requirements of the Agreement. f. Using the services of available community organizations, contractor groups, local assistance offices, King County, and other organizations that provide assistance in the recruitment and placement of small businesses, including M/WBEs. g. The Washington State Office of Minority and Women's Business Enterprises (OMWBE) can provide a list of certified M/WBEs. Contact OMWBE office at (360) 753- 9693 or on-line through the web site at www,wsdot.wa.gov/omwbe/. Equal Employment Opportunity HomeSight shall implement and carry out the obligations in its Affidavit and Certificate of Compliance regarding equal employment opportunity, and all other requirements as set forth in the Affidavit and Certificate of Compliance. SubrecipientjMaster Loan Agreement -September 16. 2003Au¡;uot ;;@.13. 2003 Page 42 I \i -3D 6. Fair Employment Practices King County Code Chapter 12,18 is incorporated by reference as if fully set forth herein and such requirements apply to this Agreement. During the performance of this Agreement, neither HomeSight nor any party subcontracting under the authority of this Agreement shall engage in unfair employment practices. It is an unfair employment practice for any: a. Employer or labor organization to discriminate against any person with respect to referral, hiring, tenure, promotion, terms, conditions, wages or other privileges of employment. b. Employment agency or labor organization to discriminate against any person with respect to membership rights and privileges, admission to or participation in any guidance program, apprenticeship training program, or other occupational training program; c. Employers, employment agency, or labor organization to print, circulate, or cause to be printed, published or circulated, any statement, advertisement, or publication relating to employment or membership, or to use any form of application therefore, which indicates any discrimination unless based upon a bona fide occupation qualification; d. Employment agency to discriminate against any person with respect to any reference for employment or assignment to a particular job classification; e. Employer, employment agency or a labor organization to retaliate against any person because that person has opposed any practice forbidden by KCC Chapter 12.18 or because that person has made a charge, testified or assisted in any manner in any investigation, proceeding or hearing initiated under the provisions ofKCC Chapter 12.18; f. Publisher, firm, corporation, organization or association printing, publishing or circulating any newspaper, magazine or other written publication to print or cause to be printed or circulated any advertisement with knowledge that the same is in violation ofKCC Chapter 12.18.O30.C., or to segregate and separately designate advertisements as applying only to men or women unless such discrimination is reasonably necessary to the normal operation of the SubrecipientjMaster Loan Agreement -September 16, 2003Aubucê ~13. 2003 H-jl Page 43 I C. particular business, enterprise or employment, unless based upon a bona fide occupational qualification; g. Employer to prohibit any person from speaking in a language other than English in the workplace unless: 1. The employer can show that requiring that employees speak English at certain times is justified by business necessity, and 2. The employer informs employees of the requirement and the consequences of violating the rule. Record-Keeping Requirements, Evaluations and Site Visits 1. HomeSight shall maintain, for at least six (6) years after completion of all work under this Agreement, the following: D. a. Records of employment, employment advertisements, application forms, and other pertinent data, records and information related to employment, applications for employment or the administration or delivery of services or any other benefits under this Agreement; and b. Records, including written quotes, bids, estimates or proposals submitted to HomeSight by all businesses seeking to participate on this Agreement, and any other information necessary to document the actual use of and payments to subcontractors and suppliers in this Agreement, including employment records. c. All records set forth in Section 2.6 and 2.9 of the SMLA. 2. . King County may visit, at any time, but at least annually, the site of the work and HomeSight's office to review the foregoing records. HomeSight shall provide every assistance requested by King County during such visits. In all other respects, HomeSight shall make the foregoing records available to King County for inspection and copying upon request. 3. Sanctions for Violations. Any violation of the mandatory requirements of the provisions of this Section shall be a material breach of the Agreement for which HomeSight may be subject to damages, withholding payment and any other sanctions provided for by the Agreement and by applicable law. Reporting Subrecipient/Master Loan Agreement -SePtember 16, 2003AubUDt ::2213. 2003 \1-5 L Page 44 I 1. HomeSight shall submit with this Agreement a total Personnel Inventory Report providing employment data for minorities, females, and persons with disabilities. Subject to the provisions ofKCC Chapter 12.16.060, HomeSight's Personnel Inventory Report shall be effective for two years after the date on which the report was submitted. 2. HomeSight should submit an Affidavit of Compliance in the form provided by King County, demonstrating commitment to comply with the provisions of KCC Chapter 12.16 in accordance with paragraph A of this Section XV. HomeSight shall complete the Affidavit of Compliance provided by King County and attach the original, notarized, completed form to this Agreement. Subject to the provisions of KCC Chapter 12.16.060, HomeSight's Affidavit of Compliance shall be effective for two years after the date on which the report was submitted. If HomeSight engages in unfair employment practices as defined above, remedies, as set forth in KCC Chapter 12.18 shall be applied. E. Section 504 and Americans with Disabilities Act HomeSight warrants and represents that it has completed a Disability Self- Evaluation Questionnaire for all programs and services offered by HomeSight (including any services not subject to this Agreement) and has evaluated its services, programs and employment practices for compliance with Section 504 of the Rehabilitation Act of 1973, as amended ("504") and the Americans with Disabilities Act of 1990 ("ADA"). HomeSight warrants and represents that it has completed a 504/ADA Disability Assurance of Compliance and shall submit it to King County. Such Assurance of Compliance is attached to this Agreement and is incorporated herein by this reference.18. F. Future support King County makes no commitment to support the services contracted for herein and assumes no obligation for future support of the activity contracted herein except as expressly set forth in this Agreement. G. Proprietary Rights The parties to this Agreement hereby mutually agree that if any patentable or copyrightable material or article should result from the work described SubrecipientjMaster Loan Agreement -Seplernbn 16. 2003:\ugw;t ~13. 2003 H-53 Page 45 I H. herein, all rights accruing from such material or article shall be the sole property of HomeSight. King County Recycled Product Procurement Policy HomeSight shall use recycled paper for the production of all printed and photocopied documents related to the fulfillment of this Agreement and shall ensure that, whenever possible, the cover page of each document printed on recycled paper bears an imprint identifying it as recycled paper. If the cost of recycled paper is more than 15% higher than the cost of non- recycled paper, HomeSight may notify the Agreement Administrator, who may waive the recycled paper requirement. HomeSight shall use both sides of paper sheets for copying and printing and shall use recycled/recyclable products wherever practical in the fulfillment of this Agreement. I. Miscellaneous Provisions 1. Severability. If any term or provision of this Agreement or an application of any term or provision to any person or circumstance is invalid or unenforceable, the other terms or provisions of this Agreement, or the application of the term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected and will continue in full force. 2. No Third Party Beneficiary. This Agreement is for the benefit of the named parties only and no third party shall have any rights thereunder, except the participating suburban cities. J. Attorneys Fees and Costs If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Agreement, a legal action is instituted, the losing party agrees to pay all reasonable costs and attorney's fees in connection therewith. . K. Confidentiality HomeSight und, King County and the ParticipJtin~ Suburban Jurisdictions I agrees that all information, records, and data collected in connection with this Agreement shall be protected from unauthorized disclosure in accordance with applicable state and federal law. HomeSight shall clearly ~;pecifically identify any confidential documents or reports at the time of submittal with words such as "Confidential", "Proprietarv" or "Business Secre1."~ If a request is made for disclosure ofsLlch item(s). King Collnty SubrecipientjMaster Loan Agreement-September 16. 2003,\UbUGt 2.;213, :.:!OO3 H-5~ Page 46 I shalJ determine ,\hether the materia! should be made available Lll1LÌer the I<.IV\. ] f the I11d!erial or paris thereof are determined by King County to he exempt from Pllb]ic disclosure, King Count) shall not release the exempted documents. I f the material is not e\Cïl1pt Croll1 public disclosure, Kin~ Countv shall noti/\! HomcSight of the request ami al!O\\ I IomeSight ten (10) business days to take \\hateycr action it deems necessary to protect its interests. If HomeSil!.ht ~lils to take sueh action ,,¡thin said period. King County shall release the item deemed sut-J]cct tu disclosure. Bv si~ning this SMLA. HomeSight assents to the procedure outlined in this subsection and shall have no claim éH2.ainst Kim'. Count \ based on actions takcn under such procee!ureancl Participating Suburb~lft .furi~;diction~~ shall notif;,. HomeSi;:ht at Ie:l~~t t'.\O weel;~: before di::clo~;in" any confïd~nti~d information to any third party who reque:ted document; or reports '.\hich h~1Ye been identi rice! by l-IcmeSight a~ confidential. L. Compliance with the Health Insurance Portability Accountability Act of 1996 Terms used in this section shall have the same meaning as those terms in the Privacy Rule, 45 CFR Parts 160 and 164. 1. Obligations and Activities of Home Sight a. HomeSight agrees not to use or disclose protected health information other than as permitted or required by law. b, HomeSight agrees to use appropriate safeguards to prevent use or disclosure of protected health information other than as provided for in this Agreement. c. HomeSight agrees to mitigate, to the extent practicable, any harmful effect that is known to HomeSight of a use or disclosure of protect health information by HomeSight in violation of the requirements of this Agreement. d. HomeSight agrees to report to County any use or disclosure of protected health information not provided for by this Agreement of which it becomes aware. e. HomeSight agrees to ensure that any agent, including a subcontractor, to whom it provides protected health information received from, or created or received by HomeSight on behalf of County, agrees to the same restrictions and conditions that apply through this Agreement to HomeSight with respect to such information. Page 47 I Subrecipient/Master Loan Agreement-September [6. 2003,^.~¡;UGt 2§.13, :2003 H-55 f. HomeSight agrees to make available protected health information in accordance with 45 CFR § 164.524, g. HomeSight agrees to make available protected health information for amendment and incorporate any amendments to protected health information in accordance with 45 CFR § 164-526. h. HomeSight agrees to make internal practices, books, and records, including policies and procedures and protected health information, relating to the use and disclosure of protected health information received from, or created or received by HomeSight on behalf of County, available to the Secretary of U.S. Department Health and Human Services, in a reasonable time and manrier for purposes of the Secretary determining County's compliance with the privacy rule. 1. HomeSight agrees to make available the information required to provide an accounting of disclosures in accordance with 45 CFR 164 § 528. 2. Permitted Uses and Disclosures by Business Associate HomeSight may use or disclose protected health information to perform functions, activities, or services for, or on behalf of, County as specified in this Agreement, provided that such use or disclosure would not violate the Privacy Rule if done by County or the minimum necessary policies and procedures of County. 3. Effect of Termination a. Except as provided in paragraph C.2. of this section, upon termination of this Agreement, for any reason, HomeSight shall return or destroy all protected health information received from King County, or created or received by HomeSight on behalf of County. This provision shall apply to protected health information that is in the possession of subcontractors or agents of HomeSight. HomeSight shall retain no copies of the protected health information. In the event HomeSight determines that returning or destroying the protected health information is infeasible, HomeSight shall provide to County notification of the conditions that make return or destruction infeasible. Upon notification that return or destruction of protected health information is infeasible, HomeSight shall extend the b. SubrecipientjMaster Loan Agreement-September 16. 2003¡'\uguGt .:fQ13, 2003 t-\ -5~ Page 48 I protections of the Agreement to such protected health information and limit further uses and disclosure of such protected health information to those purposes that make the return or destruction infeasible, for so long as HomeSight maintains such protected health information. M. Conflict of Interest KCC Chapter 3.04 is incorporated by reference as if fully set forth hence, and HomeSight agrees to abide by all conditions of said chapter. Failure by HomeSight to comply with any requirement of said KCC Chapter shall be a material breach of this Agreement. 1. HomeSight covenants that no officer, employee, or agent of King County who exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein, or any other person who presently exercises any functions or responsibilities in connection with the planning and implementation of the program funded herein shall have any personal financial interest, direct or indirect, in this Agreement. HomeSight shall take appropriate steps to assure compliance with this provision, 2. If HomeSight violates the provisions of this subsection. or does not disclose other interest required to be disclosed pursuant to KCC Chapter 3.04, King County will not be liable for payment of services rendered pursuant to this Agreement. Violation of this Section shall constitute a material breach of this Agreement and grounds for termination pursuant to Section 3,6 above, as well as any other right or remedy provided in this Agreement or law. N, Assignment 1. HomeSigh(shall not assign or subcontract any portion of this Agreement or transfer or assign any claim arising pursuant to this Agreement without the written consent of King County. Said consent must be sought in writing by HomeSight not less than fifteen (15) business days prior to the date of any proposed assignment. 2. "Subcontract" shall mean any agreement between HomeSight and a subcontractor or between subcontractors that is based on this Agreement, provided that the term "subcontract" does not include the purchase of (1) support services not related to the subject matter of this Agreement, or (2) supplies. Page 49 I SubrecipientjMaster Loan Agreement -SePtember 16. 2003/\uguot d13. 2003 H-5l PART VI: EXHIBITS The following Exhibits are attached to this Agreement and are part of this Agreement. Exhibit A: Exhibit B: Exhibit Cl: Exhibit C2: Exhibit C-3: Exhibit D: Exhibit El: Exhibit E2: Exhibit F: Exhibit G Exhibit H: Exhibit I: Funds Available under this Agreement Outstanding County Loans South King County First Homes Program Description HomeSight Buyer Services and Loan Underwriting HomeSight Loan Servicing, Loan Collection and Loss Mitigation Budget and Deadlines for Loans to be made Form of Deed of Trust Form of Deed of Trust Note HomeSight PSRLF Marketing Plan Participating Suburban Jurisdictions Proportional Share of PSRLF First Homes Program Portfolio King County First Homes Program Subordination Policy Insurance verifications Signature Page To Master Loan Agreement IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the day and year first above written. KING COUNTY By: Name: Title: STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of King County to be the free and voluntary act such party for the uses and purposes mentioned in the instrument. Subrecipient/Master Loan Agreement-September 16, 2003:\u¡;uGt ~13, 2003 \i-5~ Page 50 I DATED: (Print Name) Residing at My appointment expires: SubrecipientjMaster Loan Agreement -September 16. 2003.^. UbUGt 213. 2003 H~54 Page 51 I Signature Page To Master Loan Agreement IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the day and year first above written. HOMESIGHT By: Name: Title: STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that is the person who appeared before me and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the of HomeSight, a Washington corporation, to be the free and voluntary act such party for the uses and purposes mentioned in the instrument. DATED: (Print Name) Residing at My appointment expires: Subrecipient/Master Loan Agreement -SePtember 16, 2003"^,uguGt ~13, 2003 H -loD Page 52 I EXHIBIT A SOUTH KING COUNTY LOAN FUNDS BY PARTICIPATING JURISDICTION Type of Funds & Loan Amounts Funds Committed Remaining related contract Total Loan previously lent by HomeSight as Fund Amount" to Homebuyers Balance as numbers as of 12/31/2000 of 6/15/03 of 6/15/03 HOME (025607F, $575,000 $270,440 $24,700 $279,860 025607H» Housing Opportunity Fund (0257670, $200,000 $82,800 $117,200 $0 0261380,0256071) ) Federal Way CPBG (0256070, 0254270, $240,000 $90,000 $141,300 $8,700 025607 J) Kent COBG $50,000 $50,000 $0 (0025607E) Tukwila COBG $45,000 $0 $45,000 $0 (D25607G) Auburn COBG"" $75,000 $75,000 $0 TOTALS $1,185,000 $568,240 $328,200 $288,560 "Excludes funds contracted for education/counseling ""Auburn CDBG funds are contracted directly between Homesight & Auburn . 081403 KG RLF Funds Table - Exhibit A \-\- ~ \ EXHIBIT B HOMESIGHT King County Loan Source Schedule Report dele:10108/2003 -- --.. F".~- F".~. Fed. We. Kent Aubum Aubum Kino Countv Tukwille TukwlUe Fed. Woo. Kin" CO""'" Totels Fund Source CoBG HOF (Che""" CoBG CoBG coeo HOF (Chs"enge HOME CoBG HOF CoBG HOME Project ø Cg1391 HR9608 C98391 98391A BG9109 HR9601 HA8O39 Contractø 0254210 0251610 0256010 o25601E - 0261360 O25601F Contr. Dates w,""'",.~, 10130/96- """"""101 1212/116- 1 0130196- ,""".""", Total Amounl 25,000 75.000 75,000 50,000 15,000 75.000 300,000 45,000 50,000 150,000 300.000. Purch. Asst. Amount 15000 15000 75 000 50000 75,000 75000 275000 45,000 50,000 150000 300 000 1,185.000.00 10k me. 10kmu 10k- 10k mu 10k- 25k- 25k mo. 25k- 25k mo. 26k mu CONTRACT RECONCILIATION Begin Balance: 15000 15000 15000 50000 75000 15000 215000 45000 50000 150000 300000 1,118,000.00 Disbursed to Date: 15000 75000 15000 50000 15000 15000 215000 45000 80000 141300 20140 1"-"0.00 Balance Available: 0 0 0 0 0 0 0 0 0 1700 279880 288,8fO.oo I Disbursement Schsdule: Cis . Os..: 288,560.00 B~er name/address: i~lêiG(¥t~jî%t4M02l1611999 10000 10,000.00 Boho 01/05/1999 10000 14240 24,240.00 Plemmons 08111/1999 10000 12800 22,800.00 Benevides 03123/1999 0 25000 28,000.00 ~hu~le,d'o.q,w ..,09/24/1999 10000 15000 25,000.00 _r~'.. Ò9I09/1999 10000 15000 25 000.00 Lewis. Tol 10115/1999 10000 15000 - 25,000.00 Humphri.., 10111/1999 10000 15000 28,000.00 Martin, Kim 1012911999 10000 15000 25.000.00 Panasvuk 11/05/1999 10000 15000 25000.00 Tran & Truang 11/11/1999 5000 15000 20,000.00 Procter, Rocholo 11122/1999 5000 15000 20,000.00 Vazquez, Rudoifo 11/18/1999 10000 15000 28,000.00 Cain, Patricia 11/29/1999 10000 15000 28.000.00 Greon. Teri W3011999 10000 10000 20 000.00 Newman Terrv 12/22/1999 10000 13400 23,400.00 Correction 10 Tony Newman Homo vouchor to county (Iolal- $15.000) 1600 1,600.00 Benney, Adelino 01119/2000 10000 13400 23,400.00 Pickons, Michaol 0210412000 tOOOO 15000 28,000.00 Jackson, Andrea 0211512000 10000 10000 20,000.00 Secrest, 0212512000 10000 15000 28 000.00 Lucvk Wm. & Linda 0212912000 5000 20,000.00 c.n_.. Lucy' HOF YO""""""" 20,000 5 000.00 Pham, Tai 0313112000 8000 22.100.00 Daniels, Natalie 03123/2000 10000 15000 28.000.00 Jordan, Alziner 0610912000 20000 5000 28.000.00 Goyor 0910112000 10000 10000 20,000.00 Knighl, Quiana 01101/2001 4400 10000 14,400.00 Kil, Pusan 01/01/2001 20000 20,000.00 ~2;_mr'Wf1;'¡4 =:~:: 15800 15,500.00 .J!.Ii'fi ...!lIL".. 10600 8<400 19,000.00 Fagata, Joann 0110112001 16600 8200 21,100.00 Thorriault, Rene 0810112001 9500 10500 20,000.00 Tina Carbonatto 0210612001 25000 25,000.00 Edwardo Castiilo 0210812002 23500 23,500.00 Shannon Brown 0110112002 Œ~.M1MŒi§j 17800 25,000.00 Valoria Satterwhito 0812812002 w'B',wqg 4440 9,000.00 V&NPotrik 08/3012002 25000 26,000.00 Kasoy Clay 02121/2003 14500 10500 25.000.00 Sandra Garrison 03/01/2003 25000 28,000.00 Daisy Momain Iilm~ 25000 28,000.00 Jennitor Joyce 25000 28,000.00 0.00 Disbursed 10 Dalo 15000 75000 75000 50000 75000 15000 215000 45000 50000 141300 20140 896440.00 IH440 A . . . " " " . " 87~ ...."" .::r. ) ç ~ GL-DEPT CODES 1835-935 1830-930 183"939 1822-922 Z81,HO.oo »ï:õõõ:õõ ~ 200,000.00 571,000.00 1,188,000.00 1837-931 1838.938 1838-938 1833-933 1832-932 1834-934 1831-931 Balance Available. Total By Typo: COBO Aubum COSO HOF HOME 0 iiõõõ 27"10 0 iiõõõ 0 iõõõõ 8700 1iõõõõ 0 1iõõõ 78000 18000 78000 I0O0O 215000 300000 c:----""<03"O """" - 080003 '" ~_. £><""'8 EXHIBIT C -, HomeSight Puget Sound Homeownership Revolving Loan Fund@ in King County Program Summary Administrator: Financial Consultant: Auditor: Capitalization Goal 2003 Capitalization Goal 2005 Products: Secondary Market: HomeSight, a Non Profit Washington Corporation, Est. 1990 Bancroft, Buckley, Johnson and Serres Watson and Associates $10 million in assets $15 million in assets Deferred and Low Interest Amortizing loans Neighborhood Housing Services of America Puf!et Sound Revolvinf! Loan Fund The Puget Sound Revolving Loan Fund is a community based socially responsible investment fund that provides lower interest financing to low to moderate-income borrowers for the . purchase of their first home. Up to 500 down payment assistance Hope Loans will be originated in the Puget Sound area over five years on a gap-financing basis. Whenever possible, first mortgages will be originated in conjunction with the down payment assistance to increase lending efficiencies. Loan periodic repayments, refinance and cash proceeds and secondary market sales of loans will revolve capital to help more modest income borrowers. This model reduces public and grant financing requirements over a five-year period by more than $8 million. The initial PSRLF goal, to be accomplished by the end of2003, is $10 million in assets, represented by the existing HomeSight loan portfolio (State, City, Federal, HomeSight funds) and new resources committed by Public and private investors. Amortizing Loans may be sold to a secondary market source, Neighborhood Housing Services of America, after a timely payment history is established, typically 180 days. Investors and Levera~e The majority of the PSRLF capitalization will come from private investments through financial institutions, foundations, and corporations. The fund will seek support from state and local government sources on a competitive basis for deferred payment loan funds as needed. Overall Pu~et Sound Loan Fund Distributions Currently, the Fund projects fund investments from Snohomish County (40%), King County and Participating Suburban Jurisdictions ("PSJ") (16%), the City of Seattle (44%). Percentages represented are based on local commitments and loan portfolios to be transferred. State Funds, . HomeSight funds, and Private Funds are already invested in the Fund. Lending will be geared to these local percentages. State and other non-locally administered Funds are treated neutrally e.g. to be used on a first come first serve basis. Future lending with revolved funds or new investments will occur in participating jurisdictions only. . First Homes Prof!ram Description In 1998 HomeSight initiated the First Homes Program in South King County. Participants included Auburn, Federal Way, Kent, Tukwila and King County, as the administrator for the HOME Consortium in South King County. The First Homes program shall continue as part of H-lo'j EXHIBIT C the Puget Sound Revolving Loan Fund. HomeSight, as a HOME Subrecipient of King County, shall make loans to eligible homebuyers consistent with the provisions of a Subrecipient/Master Loan Agreement. HomeSight will also provide homebuyer services and underwrite loans pursuant to the Puget Sound Revolving Loan Fund Buyer Services and Loan Underwriting Policies and service First Home Program loans pursuant to the attached Exhibit C-3 (HomeSight Loan Servicing, Loan Collection, and Loss Mitigation). HomeSight will make Loans to Eligible Homebuyers to provide homeownership assistance for the purchase of Qualifying Homes, as defined in the Subrecipient/Master Loan Agreement: The amount of each Loan will not exceed the amount necessary, together with any other subsidy, to provide affordable housing. The amount of each Loan will also be consistent with the limit for homebuyer assistance loans as approved in writing by King County. The current limit for homebuyer loans is $25,000.00, as established in 1998. However, this loan limit may be changed by written amendment of the Subrecipient/Master Loan Agreement, based on changes in home sale prices, market conditions and homebuyer affordability analysis. Over each three (3) year period, beginning January 1,2004, HomeSight shall originate Loans in each P'articipating Suburban Jurisdiction in numbers equivalent to that Participating Suburban Jurisdiction's proportional share of the funds awarded to HomeSight for the King County First Home Program of the PSRLF. Loans funded with HOME Funds shall be distributed to Participating Suburban Jurisdictions and unincorporated South King County. The proportional share percentages shall be established based on the amount of Funds awarded by the Participating Suburban Jurisdictions, including King County's HOME Funds, as of December 31, 2003 and shall be set forth in Exhibit G, to the Subrecipient/Master Loan Agreement. Every three (3) years King County shall revise Exhibit G effective January 1 if any Participating Suburban Jurisdiction or a new South King County suburban city has awarded CDBG Funds or HOME funds to the first Homes Programs in the prior three years. In order to augment the number of Loans originated by Funds, HomeSight's shall also use a portion of its Other Funds to originate Loans in South King County. In order to balance the percentages under this subsection, HomeSight's Other Funds shall be used to originate Loans when necessary to satisfy the requirement of proportional shares of Loans. To the extent Other Funds are used to fulfill this requirement their use shall be consistent with the PSRLF Business Plan and the requirements of private investors to maintain the financial integrity of the PSRLF as determined by the Committee. H-~Y ¿- d- HomeSight Buyer Services and Loan Underwriting Puget Sound Homeownership Revolving Loan Fund @ ti-l5 ~ -- The following policies will be applied to all program applicants in all jurisdictions without regard to race, creed, national origin, gender, handicap, political affiliation or marital or familial status. I. Registration City of Seattle [1] Interested person(s) requests Program information by contacting HomeSight's automated information line (206) 723.4355 or at a community event.- [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. [3] All requests for Program information are responded to with a Program brochure and education offering, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. [4] Interested persons register by mail or fax for available First-time Home Buyer Classes or Fundamentals of HomeSight Class indicated on HomeSight's Quarterly Education Class Schedule. Registries are to follow the registration instructions by mailing the class registration form to HomeSight, 5117 Rainier Ave, S., Seattle, WA 98118 or faxing it to (206) 723,7137. [5] Community Outreach Coordinator or appropriate staff at HomeSight enters all registration information into the HomeSight Access database for registration confirmation, facilities reservation, and internal recording/reporting purposes. Snohomish County [1 ] Interested person(s) requests Program information by contacting HomeSight automated information line (425) 672,2445 or at a community event. [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. [3] All requests for Program information are responded to with a Program brochure and education offering, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. [4] Snohomish County clients will register for HomeSight First-time Home Buyer Workshops through the Everett Community College automated and mail-in registration system (425) 388.9214. South Kina County [1] Interested person(s) requests Program information by contacting HomeSight's automated information line (206) 723.4355 or at a community event. [2] Community Outreach Coordinator enters all request information (name, telephone, and address) into the HomeSight Access database for future mailings and for internal recording purposes. t-t -to ~ jJ [3] All requests for Program information are responded to with a Program brochure and education offering, invitation and registration instructions to a First-time Home Buyer Education Class or a Fundamentals of HomeSight Class. [4] Interested persons register by mail or fax for available First-time Home Buyer Classes or Fundamentals of HomeSight Class indicated on HomeSight's Quarterly Education Class Schedule. Registries are to follow the registration instructions by mailing the class registration form to HomeSight, 5117 Rainier Ave. S., Seattle, WA 98118 or faxing it to (206) 723.7137. . [5] Community Outreach Coordinator or appropriate staff at HomeSight enters all registration information into the HomeSight Access database for registration confirmation, facilities reservation, and internal recording/reporting purposes. II. First-time Home Buyer Workshop (WSHFC Certified) All Jurisdictions [1] The First-time Home Buyer Workshop is 5-hours in duration. Workshops will be offered so that attendees can complete the class in one day or two days (two 2.5-hour sessions). [2] Any and all attendees not completing the class will not receive Washington State Housing Finance Commission certification. [3] This Workshop covers the following topics in detail: ~ Program Fundamentals ~ HomeSight Financing and Guidelines ~ Housing Expense Limitations ~ Basic Credit Rules ~ Debt Ration Limitations ~ Median Income levels ~ Target Area ~ The HomeSight Purchasing Process [4] HomeSight staff will answer any questions that attendees may have concerning Workshop content. [5] Attendees will be informed that they have completed the Workshop requirements and ill receive certification (through the mail or at a HomeSight office during a One-on- One Meeting if he/she wishes to pursue additional education or home buyer assistance programs) or that they have completed Part I of the Workshop and that Part II must be complete prior to certification. [6] Upon completion of the First-time Home Buyer Workshop, all attendees will be provided a HomeSight Application, which resembles many mortgage loan applications. HomeSight education, buyer loan assistance and development programs will be described in brief. Facilitators will invite any and all who are interested in these opportunities to schedule a One-on-One Meeting. [7] At this time no childcare facilities are available during workshops. No children are admissible. H-~I If III. HomeSight One-on-One Meeting (Initially 2 Hours, on average) All Jurisdictions [1] Persons interested in pursuing homeownership who wish to establish a baseline financial situation and to prepare/outline goals for the purchase process are provided the opportunity to meet with a HomeSight Affordable Housing Officer following the First-time Home Buyer Workshop or Fundamentals of HomeSight Class. [2] First-time Home Buyer Class certificates will be issued at a One-on-One Meeting. If a person. does not intend to pursue participation in the HomeSight Program, a certificate will be mailed. [3] The new HomeSight client provides an Affordable housing Officer with official (or copies of official document$) documents for establishment of a client file, Documents required include: The HomeSight Application, employment pay records for the current period (last 3D-days), last 3-years filed tax returns, bankruptcy documents (if applicable), divorce decree (if applicable), child support verification (if applicable), naturalization information (if applicable), and a current checking and/or savings statement indicating current savings and/or cash for purchase down payment. [4] The HomeSight Affordable Housing Officer gathers required file documentation and reviews the client(s) 3 bureau (TUC, EFX, and XPN) to establish a current position. If a client does not provide the Affordable Housing Officer with a current credit report (90-days or younger) a report can be ordered for a nominal fee (currently $30.00 per individual). The Affordable Housing Officer will utilize these documents to calculate the client's affordability and determine home buyer assistance eligibility. [5] Based on the client's affordability and home buyer assistance eligibility, the Affordable Housing Officer and client discuss purchase potential and possibilities. It is at this time that Home Buyer Action and Credit Action Plans are outlined. These plans outline steps a client must complete to achieve home ownership or could include savings goals. Steps could include opening a savings account, creating a budget, paying low balance credit cards to decrease a debt ratio or even to mail a forgotten tax form to the Affordable Housing Officer to complete a client file. [6] [7] A client is assigned to Education Track 1 or Education Track 2, Track 1: Approximately 9-hours . Credit Score of 660 or higher . Have adequate savings .r Compete items on Home Buyer Action Plan .r Complete Legal/Estate Planning Workshop .r Complete 203(k) Loan Workshop (if applicable) .r Household Pre-qualified, provided HomeSight Wait List number .r Household selects a lender .r Follow-up One-on-One Meeting with Home Loan Specialist .r Household prepared for loan closing Track 2: Approximately 13-Hours . Credit Score of 659 or lower . Have other debt, cash or credit issues to be resolved .r Complete items on Home Buyer Action Plan .r Complete Budget Workshop .r Complete Legal/Estate Planning Workshop H-~t í!) -- ,¡' Complete Mortgage Default/Home Maintenance Workshop ,¡' Complete 203(k) (if applicable) ,¡' Household Pre-qualified, provided HomeSight Wait List number ,¡' Follow-up One-on-One Meeting with Home Loan Specialist ,¡' Household prepared for loan closing IV. Application and Case Preparation (One-on-One in Detail) A. Overview [1] Completed HomeSight Application Forms will be submitted to a HomeSight Affordable Housing Officer at an initial One-on-One Meeting (to be scheduled between an Affordable Housing Officer and the interested applicant(s). Minimum documentation required for file set-up includes: income information (pay stubs and documentation of other income such as child support or alimony) and $30.00 for a credit report (if a current, less than 90-days old report is not provided by the applicant). Additional documentation required includes: the last 3-years filed tax retums. divorce decree (if applicable). bankruptcy documentation (if applicable). and/or naturalization documents (if applicable). [2] For clients not providing additional documentation required for complete file set-up, 30- days will be provided to submit this information. Incomplete files (older than 30-days) will change client status from "Active" to "Inactive" at the discretion of an Affordable Housing Officer. B. HomeSight Underwriting Guidelines [1] "First-time Home Buyer", defined: A person or persons not having owned a hope (includes manufactured homes, mobile homes, condominiums, townhomes/houses, and houses) within the last 3-years. All HomeSight buyers (wishing to receive home buyer loan assistance) must be first-time home buyers. [2] Tax Filings: Each applicant must have 'filed a minimum of 2-years' tax retums. See Underwriting Guideline Exceptions section "Tax Filings': for exceptions. [3] Employment History: Each applicant must have established a work history consisting of a minimum of 2-years in his/her current occupational field. See Underwriting Guideline Exceptions section "Employment History", for exceptions. [4] Debt/Income Ratios: The debt/income ratio is the summation of an applicant's installment payments and revolving payments per month divided by the monthly household income. The ratio (installments and revolving debt/income) should not exceed 12% of the applicant's gross monthly income combined with a minimum 29% housing expense to total a back-end debt ratio of 41 %. See Underwriting Guideline Exceptions section "Debt/Income Ratios", for exceptions. [5] Credit History: A client proceeding to the Wait List may have no outstanding collections or judgments and all accounts must be current. Client must have 12-months of clean credit prior to loan closing. [6] Bankruptcy: Any bankruptcy filings must have been discharged for a minimum of 2- years with the exception the buyer may go to the Wait List 1-year after discharge. [7] Cash to Close: Applicants must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing a Purchase and Sale Agreement \-l-~ l 1â:I -- for down payment and closing costs. A gift letter is acceptable for a maximum of 25% (or $625.00) of the total $2,500.00. A gift letter and/or bank statement showing the funds available for the gift must be provided to the Affordable Housing Officer. The gift does not have to be provided at the time of applicant signature of a Purchase and Sale Agreement, yet as mentioned above, documentation of the source and amount of gift must be provided at this time. The full amount of the gift must be provided to HomeSight at the time of loan closing. GIFT MONIES CANNOT BE BORROWED, If a gift is utilized as part of a buyer's earnest money, the gift is needed at the time of signing a Purchase and Sale Agreement. [8] Determining Household Income: All household income must be disclosed in the application. It will be calculated and considered when determining potential homebuyer loan assistance eligibility. Sporadic Income a) Overtime: Overtime is considered as any work time over 8-hours in a day or any work time over 40-hours in a week. HomeSight follows Section 8 guidelines in sporadic income determination. Income is derived from income records 2-years prior to present date and then averaging the overtime income, This income must be verifiable, consistent income. HomeSight is aware tl1at total household income must not exceed Washington State Housing Finance Commission State Bond Program income limits. Child Support a) When determining eligibility for WSHFC Bond Program Funds, child support income will be calculated as income whether the applicant receives the support or not. The support figures indicated in court or divorce decree documents verify the amount to be calculated as income. WSHFC will not include the child support income if it has not been received for the previous six (6) month period. The applicant must also provide a SHS letter stating no funds have been received for the previous six (6) month period. b) HomeSight will examine child support income in the following way: In a situation (with third party documentation) where the child support recipient has gone three (3) months in the last twelve (12) month period without support and has received inconsistent amounts of support for nine (9) of those twelve (12) months, then child support will not be calculated as income. Total child support profile to be examined will be the prior 2-years. Inconsistent amounts of support will be averaged and calculated as household income, spanning a period of 2-years for measurement. Employment, residency or extenuating circumstances may be reasons for inconsistent support and must be considered. SeasonalEmplo~ent a) HomeSight clients who have seasonal employment will have income averaged over a 2-year period for determination of down payment assistance eligibility. [9] Home Buyer Loan Assistance: a) Home buyer loan assistance is applied as gap financing. Currently maximum loan assistance packages are up to $35,000 per household depending on the jurisdiction application is made. When calculating all buyer loan assistance eligibility, an applicant's income at the date of signature of a Purchase and Sale 8 H-lO [10] [11 ] [12] [13] Agreement is used. HomeSight will monitor future income (i.e., the time of home completion) to see if household income changes have occurred. b) If income has changed, a final underwriting will be performed and the loan eligibility amounts will be changed accordingly. If household income has increased, pushing the household's total gross income so that it exceeds home buyer loan assistance guidelines (guidelines depend on home buyer loan assistance source and jurisdiction), but sufficiently so that loan assistance amount cannot be covered by a first mortgage, the household may receive home buyer loan assistance to close the sale. (A situation such as this must be approved by HomeSight's Executive Director.) c) If income is within Bond limits, no adjustment to the down payment assistance amount is necessary, except in the instance of substantial interest rate fluctuations. Affordability: a) Household affordability is calculated from current period pay stubs. Current Period is defined as the 30-days prior to certification/determination. See the proposal section entitled "Income Verification" for determining sporadic income. b) If a Wait List Client(s) (See Section 5 for "Buyer Wait List Selection" procedures) wishes to purchase a home with a higher bedroom capacity than determined needed, the client may "buy up" to the desired home capacity. Criterion for ability to "buy up" includes the following: . Buyer must provide a minimum half (1/2) the spread between "needed" home and "desired" home. The spread can be covered by buyer cash, increased first mortgage amount or any combination of the two. . Buyer must establish savings ability. Ability to save is determined by (1) previous established history of savings; and (2) future ability to save the money necessary to "buy up". In-house Reserves: Each buyer will establish a savings plan to assure that a minimum of 1 month's mortgage payment is in reserve by the time of closing. Credit Reports: During a One-on-One Meeting, HomeSight staff will order a three (3) bureau credit report for the client(s) if a current (less than gO-days old) report is not provided by the client. A minimal fee of $30.00 will be charged for this report. Credit will be monitored quarterly at no extra fee. An additional $30.00 charge will be issued at the time of pre-purchase qualification to absorb additional costs at this second level of client readiness and to pay for periodic credit reports between the execution of the Purchase and Sale Agreement and completion of the home. HomeSight will not approve a home buyer assistance loan if any Home Buyer Education class or classes are missing from a buyer's record (requirements are identified earlier in this document for Track 1 and Track 2). Missing classes can be substituted with a One- on-One equivalent session for a $75.00 fee. \1-l\ I!) -- c. Underwriting Guideline Exceptions [1] First-time Home Buyer Rule: HomeSight will consider qualifying an applicant for the Program if he/she has owned a home within the last 3-years provided: a) The applicant is buying in a targeted area. Though the applicant may not qualify for federal grant fund assistance, he/she may qualify for other home buyer loan assistance funds and/or for the WSHFC Mortgage Revenue Bond Program (provided household income meets required median income limits). Underwriting in this situation is evaluated on a case-by-case basis. OR b) The applicant does not presently own a home and is a displaced divorcee or widow{er). OR c) The applicant does not presently own a home and has dependent children; OR d) The applicant presently appears on a mortgage but is only a co-borrower. The applicant must have never lived in the home, must have never claimed mortgage deductions on the home and must have never received rental income from the home. The applicant must be able to prove the above stipulation{s) to the satisfaction of HomeSight. [2] [3] Tax Filings: Recent immigrants are exempt from the tax-filings rule. Employment History: HomeSight may accept a college or vocational education related to the applicant's current occupational field and one-year in the present occupation in lieu of the 2-year minimum employment requirement. [4) Debt/Income Ratios: If the applicant's debt/income ratio exceeds the 12% standard, HomeSight may consider underwriting the loan provided: a) For every percentage point that the debt/income ratio is above 12%, the applicant concedes 2% on his/her front (housing expense) ratio: AND b) The applicant's overage is due to "qualified" family-related expenses such as reasonable transportation expenses, student loan payments, alimony, child support payments, sporadic income, health care expenses, elderly care, etc. [5] Credit History: If the applicant has a strong credit letter to substantiate derogatory information, HomeSight may place the applicant's name on the Wait List. Before doing so, Affordable Housing Officers should contact the Lender representative to discuss any "gray" areas of the applicant's credit report. [6] Bankruptcy: Unless debt restructure has occurred, bankruptcy filings must have been discharged for a minimum of 2-years prior to purchase, \-\-lL * .. [7] Cash-to-Close: NO EXCEPTIONS. Buyer(s) must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing the Purchase and Sale Agreement for down payment and closing costs, [8] Affordabìlity: a) Applicants must demonstrate the ability to pay more for their housing expense in the cases of low personal debt. HomeSight evaluates these cases based upon past savings patterns, rental history, future income and existing debt. HomeSight may choose to contact the Lender for guidance when packaging these transactions. b) If an applicant's affordability amount falls short of the purchase price of a specific piece of property HomeSight may consider increasing the applicant's home buyer assistance loan amount provided the following: .:. The applicant's annual income falls below 70% of median income; and .:. The affordability shortage does not exceed $5,000.00 v. Financing Home Buyer Loan Assistance Financing .. A. U.S. Department of Housing and Urban Development Special Purpose Grant Funds (Noji Gardens and HUD Revitalization Neighborhoods). [1 ] Each qualified applicant who is at or below 115% of median income and who is a first- time home buyer will be eligible for buyer loan benefits. Eligibility for assistance does not vary by household size and is determined at underwriting. a) Requirements of a HUD Special home Buyer Loan include: i. Must be a first-time home buyer; ii. Must earn at or below 115% of area median income (adjusted for household size); iii. Must purchase in an area(s) or project depending on availability of funds; iv. Assistance underwritten on a gap basis and disbursed based on need B. The HomeSight Hope Loan Program The City of Seattle, South King County, and Snohomish County [1 ] Each qualified applicant that is at or below 80% of median income is eligible for first-time home buyer loan assistance through HomeSight's Hope Loan Program. The Hope Loan Program is a loan fund model that operates in each of HomeSight's three jurisdictions (Seattle, South King and Snohomish County). Partners for the fund are different in each jurisdiction as are the total fund balances at any given time. Each jurisdiction can target its Hope Loan funds to specific target neighborhoods to encourage ownership or to increase affordable housing opportunities; otherwise the funds are eligible for jurisdiction-wide use. Target areas can be added or deleted based on current need or achievement of loan goals. a) Requirements of the Hope Loan include: i. Must be a first-time home buyer; ii. Must earn at or below 80% of median income (adjusted for household size); \-1-13 ~ ... iii. Must purchase (new or existing unit/home) in a jurisdiction's identified priority area(s); . Assistance underwritten on a gap basis and disbursed based on need. iv, Washington State Housing Finance Commission Funding A. Gross Income Calculation [1] All income must be included when calculating eligibility for the WSHFC, Overtime, part- time employment income, bonuses, dividends, interest, royalties, pensions, VA compensation, alimony, child support, social security benefits, unemployment compensation, lottery winnings, seasonal earnings, etc., received during the "current period" must be included. The "current period" is defined as: "The period beginning with the last pay stub before the loan application and ending with the date of closing." (See "WSHFC Lender's Guide" for specifics.) B. Childcare Services [1] Childcare Services in the home disqualify an applicant if: a) Income received from childcare is greater than 10% of the total annualized income; b) 25% or more of the income used to qualify for the mortgage loan was derived from childcare services; c) Childcare is provided for more than one additional child outside of the provider's own children; or d) The individual(s) are licensed childcare providers C. Marital Status [1] Legal Separation Agreements are required for clients separated but not divorced. VI. Buyer Wait List A. Entering the Wait List [1] Once an Active Client(s) meets HomeSight and WSHFC underwriting guidelines, he/she (they) is eligible for Waiting List number assignment. ALL Active Clients meeting these guidelines are HomeSight "pre-qualified". Being "pre-qualified" also includes the standard: upon Purchase and Sale Agreement execution, the buyer(s) must have a minimum of twelve (12) months of clean credit. [2] All pre-qualified buyers/applicants must have a minimum of 2% of the purchase price or $2,500.00, whichever is greater at the time of signing a Purchase and Sale Agreement for down payment and closing costs. [3] New Available Property. As property becomes available, Wait List Clients whose afford ability falls within the price ranges of the available homes will be contacted for site showing in order of Wait List number assignment. The site showing will include the showing of floor plans, site visit, and discussion of estimated purchase prices, [4] Refusal of Property. Each Wait List Client(s) has the right of refusal on the first two (2) homes offered without jeopardizing position on the Wait List. Wait List Client(s) refusing a third home will lose the assigned position on the Wait List. If the client wishes to remain on the Wait List, he/she may enter the next Wait List number assignment. íQ .... H-l~ [5] Home Capacity. Wait List Client(s) qualify for a specific home capacity (minimum number of bedrooms) based upon family size. Gender of the children in the household may be considered in this home capacity determination. This information will be verified by using information provided by the client(s) on the HomeSight Application form and federal tax returns. For "Buying-Up" on home capacity, please refer to Section Iv, B [10]. B. Wait List Updates [1] Home Loan Specialist will update Wait List Client's file on a monthly basis or as needed. VII. Grievances A. HomeSight [1] Any applicant who feels that he/she has not been treated fairly when dealing with the HomeSight Program, will be directed to the HomeSight Executive Director for resolution. [2] ADA grievances will be processed under the HomeSight ADA Grievance Policy. B. First Mortgage Lender [1 ] Any applicant who feels that he/she has not been treated fairly when dealing with the first mortgagor will be directed to the HomeSight Executive Director for resolution. The HomeSight Executive Director will refer complaint to the appropriate management representative with the lending institution or to a HUD Fair Housing Officer if the Executive Director believes a fair housing lending complaint should be formally field with federal officials. H-lS " \-t-llo C-3 EXHIBIT C (Continued) HomeSight Loan Servicing, Loan Collection, and Loss Mitigation By far, loan servicing is the largest component of Fund operations. Loan Servicing is the function that includes: 1. Receipt of payments; 2. Customer service; 3. Escrow administration; 4. Investor accounting; and 5. Extensive and accurate record keeping on all loan accounts. HomeSight has selected Trakker for its servicing software. Trakker can clearly manage the agency's current loan portfolio with ease. HomeSight will service its own loan portfolio; policies are in accordance with the practices of the mortgage industry. General procedures have been created and approved by the Board of Directors for the RLF: . Loan file creation, management and retention Payment Processing Prepayment Processing Payoff Processing. Escrow Administration, Disbursements and Analysis Reporting Custodial Account Reconciliation Loan Administration Adverse Actions . . . . . . . . It is the responsibility of Homesight, a community-based agency, to be committed to assisting its borrowers in keeping mortgage loans current, while protecting the borrower's equity and credit rating. Collection policies and procedures are consistent with the definition of the security instruments borrowers sign at closing and include procedures for: . Identifying a delinquent loan; Delinquency reporting (internal and external); Late charges; Chronic default borrowers; Reinstatement; Steps for Collection; Property Inspection; and Policies for loans serviced for other entities. . . . . . . . Loss mitigation is the activity aimed at reducing the social, emotional and financial impacts of loan defaults on borrowers and lenders. Loss mitigation policies for the HomeSight Puget Sound Revolving Loan Fund outline the options available for borrowers including: . Special forbearance; Refinance; Modification; Assumption; Pre-foreclosure sale; Deed-in-lieu of foreclosure; Charge-off or Write-off; and/or Partial claim. . . . . . . . f-\-ll EXHIBIT D HomeSight Budget Goals for "2000/2001 Funds" in the MLA The following is the proposed allocation of Assistance Loans from the "2000 & 2001 Funds": Target for Min # of I Hslds Date CDBG $ HOF $ HOME $ (Challenge Grant) Federal Way Tukw.ila Uninc. KG Yr. 2003-04 * 150000 45000 0 0 195000 50000 50000 ** Totals * Primarily in White Center 60000 210000 10 30000 125000 6 100000 100000 4 110000 110000 4 300000 545000 24 *** 545000 ** To be available in Federal Way. Tukwila & Unincorporated KG. Distribution will be based on wherever buyers can find a home in those area's. *** These targets are based on the current loan limit of $25,000. This goal may not be attainable without restructuring the loan limits and type of loan products or terms. The following are the Origination Goals for the 2000-2001 Funds in the MLA: 2001 2002 2003 2004 Number of Loans Originated 01 02 03 3 1 2 2 0 3 2 2 0 2 2 2 04 0 0 2 1 - Outcomes for 2001 thru Q2 2003 are based on actual loans advanced. - 2003-2004 outcomes are based on a conservative projection due to uncertain economy. hopefully actual production will be sooner. - Note: Quarter 3 2003 is projected at O. as no additional loans can be originated until MLA is signed and there will be a "ramp-up" period to get borrowers back into the pipeline. \-\-.1 i EXHIBIT E After recording return to: HomeSight 5117 Rainier Avenue South Seattle, WA 98118 DEED OF TRUST (King County) Grantor/Borrower: ** G rantee/Beneficiary: COUNTY OF KING Abbreviated Legal Description: ** Assessor's Tax Parcel I.D.#: ** THIS DEED OF TRUST is made this [*] day of [*],2003 between [name], [husband and wife or an unmarried individual], as Grantor, whose address is [*], PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INc., a Washington corporation, whose address is 215 Columbia Street, Seattle, Washington 98104, as Trustee, and KING COUNTY, whose address is Department of Community and Human Services, 821 Second Avenue, #500, Seattle, Washington 98104-1598, its successors and assigns, as Beneficiary. 1. Granting Clause. Grantor irrevocably grants, bargains, sells, conveys to Trustee in trust with the power of sale, all of Grantor's estate, right, title, interest, claim and demand, now owned or hereafter acquired, in and to the real property located in King County, Washington, legally described in Exhibit A hereto, which real property is not used principally for agricultural or farming purposes, together with all tenements, hereditaments, and appurtenances now or hereafter belonging or in any way appertaining to said property, and the rents, issues and profits thereof (the "Property"). 2, Subordination, This Deed of Trust is subordinated to the following: (a) That Deed of Trust dated [*], in favor of [*], securing a Deed of Trust Note in the amount of [*] and 00/100 Dollars ($[*].00), which prior Deed of Trust is recorded under King County Recording Number \-\- l\ 3, Obligations Secured. This Deed of Trust is given for the purpose of securing each agreement of Grantor contained herein and payment of the sum of $[*] in accordance with the terms of the Deed of Trust Note of even date herewith and all renewals, modifications and extensions thereof. GRANTOR further represents, warrants, covenants and agrees as follows: 1, To keep the property in good condition and repair; to permit no waste thereof; to complete any building, structure or improvement being built or about to be built thereon; to restore promptly any building, structure or improvement thereon which may be damaged or destroyed; and to comply with all laws, ordinances, regulations, covenants, conditions and restrictions affecting the property. 2. To perform all of its obligations secured by any deed of trust, mortgage or other lien on the property that is the subject of this Deed of Trust, whether or not such lien has priority over this Deed of Trust. Grantor shall keep the property free of all liens, charges and encumbrances impairing the security of this deed of trust unless consented to in writing by Beneficiary, Upon any breach of the obligations of this paragraph, Beneficiary shall have the right, without notice or demand, to declare all amounts secured hereby immediately due and payable. 3. To perform all of Grantor's obligations under those deeds of trust or other security agreements with a lien which have a priority over this Deed of Trust, including Grantor's covenants to make payments when due. 4. To keep all buildings now or hereafter erected on the property described herein continuously insured against loss by fire or other hazards in an amount not less than the total debt secured by this Deed of Trust naming Beneficiary as Mortgagee on said policies. The amount collected under any insurance policy may be applied upon any indebtedness hereby secured in such order as the Beneficiary shall determine. Such application by the Beneficiary shall not cause discontinuance of any proceedings to foreclose this Deed of Trust. In the event of foreclosure, all rights of the Grantor in insurance policies then in force shall pass to the purchaser at the foreclosure sale, 5. To defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of title search and attorney's fees in a reasonable amount, in any such action or proceeding, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay all reasonable costs, fees and expenses in connection with this Deed of Trust, including the expenses of the Trustee incurred in enforcing the obligation secured hereby and Trustee's and attorney's fees actually incurred, as provided by statute. 2 r1-~D 7, Should Grantor fail to pay when due any taxes, assessments, insurance premiums, liens, encumbrances or other charges against the property hereinabove described, Beneficiary may pay the same, and the amount so paid, with interest at the rate of twelve percent (12%), shall be added to and become a part of the debt secured in this Deed of Trust. IT IS MUTUALLY AGREED THAT: 1. In the event any portion of the property is taken or damaged in an eminent domain proceeding, the entire amount of the award or such portion thereof as may be necessary to fully satisfy the obligation secured hereby, shall be paid to Beneficiary to be applied to said obligation. 2. By accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right to require prompt payment when due of all other sums so secured or to declare default for failure to so pay, 3. The Trustees shall reconvey all or any part ofthe property covered by this Deed of Trust to the person entitled thereto on written request of the Grantor and the Beneficiary, or upon satisfaction of the obligation secured and written request for reconveyance made by the Beneficiary or the person entitled thereto. 4, Upon default by Grantor in the payment of any indebtedness secured hereby or in the performance of any agreement contained herein, all sums secured hereby shall immediately become due and payable at the option of the Beneficiary. In such event and upon written request of Beneficiary, Trustee or its authorized agent shall sell the trust property, in accordance with the Deed of Trust Act of the State of Washington, at public auction to the highest bidder. In the event of a Trustee's sale, any person except Trustee may bid at Trustee's sale. Trustee shall apply the proceeds of the sale as follows: (1) to the expense of sale, including a reasonable Trustee's fee and attorney's fee; (2) to the obligation secured by this Deed of Trust; (3) the surplus, if any, shall be distributed to the persons entitled thereto. 5. Trustee shall deliver to the purchaser at the sale its deed, without warranty, which shall convey to the purchaser the interest in the property which Grantor had or had the power to convey at the time of his execution of this Deed of Trust, and such as he may have acquired thereafter. Trustee's deed shall recite the facts showing that the sale was conducted in compliance with all the requirements of law and of this Deed of Trust, which recital shall be prima facie evidence of such compliance and conclusive evidence thereof in favor of bona fide purchasers and encumbrances for value. 6. In the event, of the death, incapacity of disability or resignation of Trustee, Beneficiary shall appoint in writing a successor trustee, and upon the recording of such appointment in the mortgage records of the county in which this Deed of Trust is recorded, the successor trustee shall be vested with all powers of the original trustee. The trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any 3 \-\~~ \ action or proceeding in which Grantor, Trustee or Beneficiary shall be a party unless such action or proceeding is brought by the Trustee. 7. The power of sale conferred by this Deed of Trust and by the Deed of Trust Act of the State of Washington is not an exclusive remedy. Beneficiary may cause this Deed of Trust to be foreclosed as a mortgage and obtain a judgment for any deficiency against Grantor. 8. This Deed of Trust applies to, inures to the benefit of, and is binding not only on the parties hereto, but on their heirs, devisees, legatees, administrators, executors, successors and assigns. The term Beneficiary shall mean the holder and owner of the Note secured hereby, whether or not named as Beneficiary herein. 9. As set forth in the Deed of Trust Note secured hereby, the entire balance owing hereunder shall become immediately due and payable on any transfer, including without limitation any sale, gift, lease or mortgage, of the project subject to this deed of trust or any portion thereof, subject only to any requirements of applicable law. After any transfer causing acceleration of the amounts secured hereby in accordance with this Paragraph, all such amounts shall bear interest at twelve percent (12%) per annum or the highest rate permitted by applicable law, whichever shall be less. [*] [*] STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that [*] is the person who appeared before me and said person acknowledged that [he/she] signed this instrument and acknowledged it to be [hislher] free and voluntary act for the uses and purposes mentioned in the instrument. 4 r-\~ ~ L- DATED: (Print Name) Notary Public Residing at My appointment expires STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that [*] is the person who appeared before me and said person acknowledged that [he/she] signed this instrument and acknowledged it to be [his/her] free and voluntary act for the uses and purposes mentioned in the instrument. DATED: (Print Name) Notary Public Residing at My appointment expires KING COUNTY DEED 5 \-\ -1$3 \-\---34 EXHIBIT E DEED OF TRUST NOTE (King County) $[*] [*], 2003 Seattle, Washington [*] Property Address [*] City, State [*] Zip Code 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I ("Borrower") promise to pay [*] and 00/100 Dollars ($[*].00) U.S. funds (this amount will be called "principal"), plus interest, to the order of HomeSight, a Washington not-for-profit corporation ('~Holder" or "HomeSight"), acting on behalf of King County, Department of Community and Human Services, 821 Second Avenue, #500, Seattle, Washington 98104-1598, or such other place as the Holder of this Deed of Trust Note ("Note") may designate in writing from time to time. HomeSight is acting on behalf of King County pursuant to an agreement between HomeSight and King County to provide purchase assistance loans to first time home buyers. I understand that Holder may transfer or assign this Note. Anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Holder." 2. INTEREST Interest will accrue on the unpaid principal (whether the initial principal amount or the Recalculated Principal) from the date of this Note at the rate of three percent (3%) simple interest per annum calculated on a 360-day basis. 3. PAYMENTS OF PRINCIPAL AND INTEREST. A. Absent the occurrence of any of the events identified in paragraph 4 herein, payments of principal and interest under this Note shall be made as follows: (1) Interest Payments. No payments of principal or interest shall be required by Borrower during the first seven (7) years of this Note, however, interest will accrue on the unpaid initial principal at the rate ofthree percent (3%) simple interest per annum. On the date which is eight (8) years from the date of this Note, all accrued but unpaid interest shall be added to the principal, and the recalculated balance shall become the principal due and owing under this Note and is referred to herein as the "Recalculated Principal." Interest shall accrue on the Recalculated Principal at the rate of three percent (3%) simple interest per annum. \-1-<65 (2) 4. Payments of Principal and Interest. If none of the events described in Paragraph 4A(1), 4A(2), 4A(3), or 4A( 4) below occur, I will begin making monthly payments of principal and interest in the amount of [*] Dollars and [*]/100 ($[*]) commencing on the first day of the first month following the date which is eight (8) years from the date of this Note ([*] 1,2011) with subsequent installments due on the first day of each succeeding month until the principal and all accrued interest are paid in full. The full amount of principal and interest will be due on or before [*] which is thirty eight (38) years from the date ofthis Note. ACCELERATION OF PAYMENTS A. I understand that notwithstanding the terms of Paragraph 3 above, if any of the events described Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) occur (an "Occurrence"), this Note will immediately become due in full and I will be required to pay the Holder all outstanding principal and accrued interest under Paragraph 2 above as of the date of the Occurrence, plus Shared Appreciation under Paragraph 5 below as of the date of the Occurrence (The sum of these amounts is called the "Accelerated Amounf'). In addition, after the date of the Occurrence, I will be required to pay default interest at the rate of twelve percent (12%) per annum on the Accelerated Amount until the Accelerated Amount is paid in full: (1) (2) (3) (4) Sell, gift, or in any other manner conveyor transfer title to the real property legally described in Exhibit A (the "Property") or any interest in the Property, except as specifically allowed by the peed of Trust and Paragraph 4.B below (transfer includes, but is not necessarily limited to, renting, leasing, selling, passing ownership by any voluntary or involuntary means, such as by gift, will or by operation of law, or any encumbrance of the Property resulting from a lien, assessment or judgment ); No longer live in the Property as my primary residence: Make any statement, or provide any information (or any prior statement proves to be untrue or incorrect) or certification to the Holder which is untrue or incorrect in any material respect; or Fail to comply with any other term or condition of this Note or any other loan document. The event of an Occurrence shall be deemed a default. B. Holder's agreement to permit any of the events described in Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) above without requiring payment of this Note shall not constitute a waiver of Holder's right to declare this Note due and payable in the event of any future event described in 4A(1), 4A(2), 4A(3), or 4A(4) above, including but not limited to any transfer by 2 H -<6 to any person who assumes this Note, or if a person who assumes this Note no longer lives in the Property. 5. SHARED APPRECIA TI ON A. I understand that in addition to my obligation to repay principal and interest pursuant to the terms of this Note, I am also obligated to pay Shared Appreciation pursuant to the terms of this Paragraph 5 upon the occurrence of any of the following: (1) (2) (3) I sell, gift, or in any other manner transfer title to the Property or any interest in the Property, except as specifically allowed by the Deed of Trust and Paragraph 4.B above (transfer includes, but is not necessarily limited to, renting, leasing, selling, passing ownership by any voluntary or involuntary means, such as by gift, will or by operation of law, or any encumbrance of the Property resulting from a lien, assessment or judgment which is superior to the County's interest); No longer live in the Property as my primary residence; or Prepay this Note in full or in part. B. Shared Appreciation is an amount equal to "Net Proceeds" multiplied by the "Shared Appreciation Fraction." (1) The "Shared Appreciation Fraction" is the fraction calculated as follows: (i) Numerator: The stated original principal amount of this Note which is $[*].00. (ii) Denominator: The costs to Maker of acquisition of the Property including the purchase price, the cost of inspections, appraisal, title insurance, operation of real estate taxes and property insurance at closing, recording and escrow fees and attorney fees, which is agreed to be $[*]. This fraction expressed as a figure is [*] Percent ([*]%) and is hereafter referred to as the Shared Appreciation Percentage. (2) Net Proceeds shall be calculated as follows: (i) the gross sales price of the Property if the Property is sold to a bona fide third party or the value of the Property as determined by an appraiser chosen by Holder if the event triggering the Shared Appreciation is other than a sale of the Property to a bona fide third party; less 3 \-t,.. 1S l (ii) (iii) (iv) the original amount of any loans previously approved by Holder in writing that are secured by liens against the Property, including this Note but not including Shared Appreciation on this Note or any interest on any other loans computed by reference to property value or sales proceeds plus any unpaid interest and any applicable prepayment premiums on such loans; less the costs of documented depreciable improvements made to the Property and paid for by Maker subsequent to Maker's acquisition of the Property (unless such costs are secured by liens recorded against the Property); less actual and reasonable costs of sale if the Property is sold (or the appraiser estimates of such costs if the event triggering Shared Appreciation is not a sale of the Property to a bona fide third party), including real estate commissions, real property excise tax, escrow fees, recording fees, reasonable attorneys' fees associated with the sale, if any, title insurance, and title insurance premiums. C. I understand that in the event of an occurrence described in paragraph 5A(l), 5A(2), or 5A(3) herein within eight (8) years from the date of this Note, I will be responsible for payment, in addition to principal and interest of 100% of the Shared Appreciation Fraction. D. I understand that in the event of an occurrence described in paragraph 5A(l), 5A(2), or 5A(3) herein at any time after the eighth (8th) anniversary of this Note, the Shared Appreciation Percent shall be reduced two (2%) percent each year thereafter as follows, provided however, that in no event shall the Shared Appreciation Percent be reduced below four (4%) percent. Year 8 Year 9 Year 10 Yearll Year 12 Year 13 Year 14 Year 15 Year 16 Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% Shared Appreciation Percent: [*]% 4 \1?b~ Year 17 Shared Appreciation Percent: (*]% Year 18 Shared Appreciation Percent: (*]% Year 19 Shared Appreciation Percent: (*]% Year 20 and each year thereafter Shared Appreciation Percent: (*]% E. In no event, however, will the combined amount of interest under Paragraph 2 above and Shared Appreciation under this Paragraph 5 exceed the maximum amount of interest Holder could charge under federal or state law on the outstanding principal balance of this note. 6. PAYMENT LOCATION Unless otherwise directed in writing by Holder, all payments shall be made at the following address: HomeSight 5117 Rainier Avenue South Seattle, Washington 98118-1929 7. THIS NOTE SECURED BY A DEED OF TRUST AND DEED OF TRUST RIDER WITH DEF AUL T PROVISIONS In addition to the protections given to the Holder under this Note, a Deed of Trust dated (*], 2003' is being recorded against the Property, which Deed of Trust protects the Holder from possible losses which might result if! do not keep the promises which I make on this Note. The Deed of Trust describes how and under what conditions a default may occur and I may be required to make immediate payment in full of all amounts that I owe under this Note. By signing this Note, I agree to be bound as "Grantor" under the Deed of Trust. 8. BORROWER'S WAIVERS I waive my rights to require the Note Holder to do certain things. Those things are: (A) (B) To demand payment of amounts due (known as "presentment"); To give notice that amounts due have not been paid (known as "notice of dishonor"); (C) To obtain an official certification of nonpayment (known as "protest"), Anyone who agrees to make payments to the Note Holder if I fail to keep my promises under this Note, or who signs this Note to transfer it to someone else also waives these rights. These persons are known as "guarantors, sureties and endorsers." 5 \-\~ <ß ~ 9. GIVING OF NOTICES Any notice that must be given to me under this Note will be given to me by delivering it or by mailing it by certified mail addressed to me at the Property address above. A notice will be delivered or mailed to me at a different address if I give the Holder written notice of my different address. I will give any notice to the Holder under this Note by mailing it by certified mail to the Holder at the address stated in Paragraph 6 above. I will mail any notice to the Holder at a different address if I am given a notice of that different address. 10. ATTORNEYS' FEES If Holder refers this Note to an attorney for collection or seeks legal advice following a default under the Note or, under any other loan document, I agree to pay reasonable attorney's fees for services performed by the Holder's attorneys, including staff attorneys, and all related costs and expenses. The Holder shall have the option of requiring immediate payment of any amount which becomes due and owing under this Paragraph or adding such amount to the principal of the loan. 11. RESPONSIBILITY OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each of us is fully and personally obligated to pay the full amount owed and to keep all of the promises made in this Note. Any guarantor, .surety, or endorser of this Note (as described in Paragraph 8 above) is also obligated to do these things. The Holder may enforce its rights under this Note against each of us individually or against all of us together. This means that anyone of us may be required to pay all of the amounts owed under this Note. Any person who takes over my rights or obligations under this Note will have all of my rights and must keep all of my promises made in, this Note. Any person who takes over (with or without Holder's approval) the rights or obligations of a guarantor, surety, or endorser of this Note (as described in Paragraph 8 above) is also obligated to keep all of the promises made in this Note. I understand that the consent of the Holder is required for any person to take over my obligations under this Note, and Holder may withhold such consent in its sole discretion. ' Until this Note is paid in full, I agree to provide information requested by Holder concerning my use of the Property as my principal residence. 12. TIME Time is of the essence in the terms of this Note. 6 H- '10 [*] KING COUNTY NOTE.doc 7 1-\- <1 \ 1-\-42- EXHIBIT F HomeSight a non. profit community development Corporation Revitalizing Communities through homeownership strategies since 1990 Puget Sound Homeownership Revolving Loan Fund@ (PSRLF) Marketing Summary Value Statement: Experience: Objective: Target: HomeSight is a U.S. Housing and Urban Development (HUD) Approved Housing Counseling Agency and Second Mortgage Lender, State of Washington Mortgage Broker and U,S. Department of Treasury Community Development Financial Institution (CDR) and Equal Housing Opportunity Provider dedicated to excellence in the deliverance of affordable housing services and products regardless of race, religion, gender or political affiliation. This nationally awarded and recognized Community Development Corporation (CDC) annually operating an affirmative marketing plan (see samples attached) that has resulted in providing counseling services to over 700 households annually, the addition of 300+ new clients annually seeking the goal of ownership and the creation of over 100 new home buyers every year in at least 2 counties. Promote equal home ownership opportunities for low- and moderate-income households in target Areas of King County through amortizing and deferred second mortgage products. Home buyer Uteracy and financial coaching services available as an additional yet separate tool to ensure the Creation of successful homeowners. Loan assistance is targeted to households earning at or below 80% of King County Median Income adjusted for household size. Education and pre-purchase counseling is available for all interested participants regardless of household income. Broadcast Marketing Action: 1. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through an inter-jurisdictional Metro Bus Advertising Campaign. Description: Action: Annually HomeSight advertises its services and loan products with Metro, This campaign includes exterior bus, mini-billboards that travel on bus lines selected by HomeSight. These bus lines or travel routes are handpicked by HomeSight to ensure exposure in key target areas. These routes travel between multiple cities and 3 counties (King, Pierce and Snohomish). 2. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through the distribution of HomeSight services information (flyers, brochures, posters, etc.) in collaboration with target area investors. \-\-~ ~ ^ ..6. ~~ Member -..:.r IIIIiI.='I EXHIBIT F Description: Provide target area investors with supplies of HomeSight outreach materials on a periodic bases and by request for posting in public areas such as a city hall, planning department, libraries, and other locations frequented by potential clients. In addition, investor partners may want to outreach to their own employees, On such an occasion, investor and HomeSight can jointly create flyers or paycheck inserts for example in order to share program information. Inter-Personal Outreach Action: 1. Increase public awareness of the PSRLF (and complimenting education and counseling services) in King County through one-on-one outreach opportunities in target cities and neighborhoods. Opportunities include community festivals, municipal events and others. Description: HomeSight has an established tradition of getting out to meet potential clients in target communities. Annually the agency attends an average of 9 SeaFair sanctioned and community-based festivals and events. In fact, many look for a HomeSight booth at festivals recalling that it was "there last year" and look for it because they may be ready to take the next step towards homeownership. HomeSight staff collaboratively identifies events to sponsor or participate in with PSRLF investors annually. Print-Ad I Display Ad Opportunities Action: 1. Increase public awareness of the PSRlF (and complimenting education and counseling services) in King County through community-based newspapers and/or newsletters to reach specific target clientele whenever fiscally possible. Description: HomeSight, a non-profit agency with a modest market budget, explores the greatest marketing exposure avenues for the value. Whenever possible, the agency places print or display ads in culturally or community-based newspapers and/or newsletters. HomeSight intake data indicates that people learn about HomeSight programs least through this means and mostly through word of mouth and Metro Bus Ads. Web-Based Outreach Action: 1. Increase public awareness of the PSRlF (and complimenting education and counseling services) in King County through website postings, web links and more. . Description: HomeSight can provide a web link to be featured on PSRlF investor websites. In addition, Investor links can be placed on the HomeSight website to familiarize interested parties with the Tukwila or Snohomish County for example, HomeSight's website (www.homesiahtwa.org) provides ample information about its services and products and is advertised on all HomeSight print advertisement, billboards and flyers. HÞï4 ^ ..ð.. ~~ Member L!!J .... King County First Homes Program Participating Jurisdiction's Proportional Share of Loan Funds PARTICPA TING TOTAL PERCENTAGE JURISDICTION CONTRIBUTION King County** $575,000 48% Auburn* $150,000 13% Federal Way* $315,000 27% Kent $50,000 4% Tukwila* $95,000 8% TOTAL $1,185,000 100% * Includes Challenge Grant (HOF) funds ** King County HOME funds will be distributed among Participating Suburban Jurisdictions and unincorporated King County according to market demand. (King County HOME funds have been distributed as follows as of September 15, 2003. This does not guarantee future distributions by jurisdiction.) Auburn $45,200 Federal Way $125,200 Kent $89,240 Tukwila $10,500 Balance of HOME to be $304,860 allocated H-iS KC RLF Cities Proportion - Exhibit G 9-16-03] 09/16/2003 5.1 CITY OF FEDERAL WAY CITY COUNCIL PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY COMMITTEE Date: From: Via: Subject: October 6, 2003 Kelli O'DonneJI, C David Mo 2003 CDBG A Advocate BG Coordinator~ Manager ndment - Federal Way Domestic Vi.olence Victims Background: . The City Attorney's Office has requested an amendment to the 2003 CDBG Domestic Violence Victims Advocate Program to reallocate $2,000 to pay for an investigator during the months of November and December. The attached memorandum to the Human Services Commission dated September 8, 2003 provides a detailed explanation of the requested change. . Council action is required to amend Federal Way's Agreement with King County to change the Scope of Services for Federal Way Domestic Violence Victims Advocate program. The proposed amendment to the Scope of Service is included in the attached memorandum should the Council concur with the request. Commission Recommendation On September 15, 2003, the Human Services Commission passed a motion to recommend that the City Council authorize the amendment to the 2003 CDBG Federal Way Domestic Violence Victim Advocate program to allow up to $2,000 to be allocated to a temporary investigator position. Committee Recommendation I move to approve the amendment to the 2003 CDBG Federal Way Domestic Violence Victims Advocate program to allow up to $2,000 to be allocated to a temporary investigator position, The City Manager is authorized to enter into the necessary amendment to revise the Scope of Service. To be forwarded to the City Council for consideration at its October 20,2003 meeting. -:[-\ ~ CITY OF ~ Federal Way MEMORANDUM DATE: September8,2003 . TO: Human Services Commission J-i'I.(þ FROM: Kelli O'Donnell, CDBG Coordinator!' Y' SUBJECT: Request to Amend 2003 CDBG Federal Way DV Victims Advocate Program Background: The City Attorney's Office is requesting an amendment to the 2003 CDBG Domestic VIolence Victims Advocate Program (Attachment 1). The current Scope of Work with King County for the program applies the $20,000 funded to the domestic violence victim advocate position. The City Attorney's Office would like to reallocate $2,000 from the salary for the domestic violence advocate to pay for an investigator during the months of November and December. The proposed Project Scope of Services as amended is attached (Attachment 2). An amendment to the Scope of Services requires a motion by the City Council. The Domestic Violence Victims Advocate project has been running under budg~t and meeting performance measures for the first two quarters of the year (Attachment 3). If approved, the proposed amendment would allow the City Attorney's Office to hire an investigator on a temporary basis for an average of 20 per week during the. months of November and December. The investigator would be used to locate victims and witnesses, obtain victim and witness statements, serve subpoenas, and obtain photographs of victim's injuries. Staff recommends authorizing the amendment, which will assist the domestic violence victims advocate in serving victims of domestic violence in Federal Way. Proposed Motion: I move to recommend to the City Council approval of Amendmènt 1 to the 2003 CDBG Federal Way Domestic Violence Victim Advocate program to allow up to $2,000 to be allocated to a tempprary investigator position. ~ Please contact me at (253) 661-4153 or kellio@fedway.org if you have any questions regarding the requested amendment or any CDBG projects or programs. ~. :¡:-L. Attachment 1 CITY OF FEDERAL WAY CITY ATTORNEY'S OFFICE Memorandum DATE: September 4, 2003 FROM: Kelli O'Donnell, CDBG Coordinator Patricia A. Richardson, City Attorney ~~ TO: SUBJECT: 2003 CDBG Amendment - Federal WayD.V. Victims Advocate The law department wants to amend the funding allocation it received for the Domestic Violence Victim Advocate in order to fund an investigator through the end of2003. The cost of the investigator is $15.00 per hour, and it is estimated that he will work 20 hours per week from the 151 of November through the end of DeceÍnber2003. The investigator will be considered a temporary employee with no benefits. Given the holidays I short weeks during these months we might not get 20 hours every week To that end, we figured three full weeks of work each month at 20 hours a week, with a little extra for the short weeks, which would mean we are requesting $2,000 of the grant be used to fund the investigator. Please note that he may go over 20 hours in one week, but might have less then 20 hours in another week. The investigator will be used to locate victims and witnesses. Obtain victim and witness statements as well as serving subpoenas, and obtaining photograþhs of victims injuries. K:\memo\2003 CDBG Amend .. , -=1-- 3 ~ f'\ROJECT SCOPE OF SERVICES NO 2 A Attachment 2 ~kAI-T \~\< . - men men - Project No.: C03389 Start Date: 1/1/2003 Project Title: Federal Way Domestic Violence Victims Advocate End Date: 12/3 1/2003 Contract No.: D32191D Tennination Date: 12/31/2003 Project Manager: Wendy DeRobbio City Contact Person: Kelli O'Donnell Telephone: (253) 661-4153 Fax: (253) 661-4048 Email: kelli.odonnell@cLfederal-way.wa.us d City of Federal Way (hereinafter referred to as "the City") shall utilize King County Community Development Block Grant funds to perfonn the activities. specified below. Such services shall be provided in a manner which fully complies with all applicable federal, state and local laws, statutes, rules and regulations, as are now in effect or may be hereafter amended. 1) Project Summary The City shall use CDBG funds to provide 853 hours of advocacy and 30 referrals to shelter for 355 unduplicated persons. CDBG-funded support will include personnel services (0.4 FTE) and associated purchased services to support a part-time legal advocate serving victims of domestic violence within the city of Federal Way. The advocate serves as a victim's guide through the legal system. The goal~ of the program are to aid in safety planning for victims, collect infonnation relevant to the persecution of defendant batterers, and direct victims to other service agencies for needed assistance. 2) Project Budget The City shall apply the following County funds to the project in accordance with the Line Item Budget Summary below. The total amount of reimbursement pursuant to this Scope shall not exceed $20,000.00. A. County Funds King County Community Development Block $20,000.00 Grant - Pass-through City Funds Total County Funds: $20,000.00 B. Line Item Budget Personnel Services (detail below) $20,000.00 Office or Operating Supplies Consultant or Purchased Services Construction Contracts Communications Travel and Training Other (specify below): TotaFCounty Funds: $20,000.00 C. Personnel Detail Position Title Position Full Time Annual Salary and CDBG Funds Equivalent Benefits DV Advocate .38 FTE $47,762.00 $18,000.00 Temporary Investigator .058 FTE $34,320 $2,000.00 Total: AOFTE $20,000.00 $20,000.00 Project Scope of Servipes No.2 - Page 1 ~-~r 3) Performance Measures DR. Ii.v ~, 1'1.,., . A. Number Served The City agrees to serve, at minimum, the following unduplicated number of persons with CDBG funds: 1'1 rd 3rd 41b Quarter Quarter Quarter Quarter Total in JAN.- APRIL- JULY- ocr.- Year 2003 MARCH JUNE SEPT. DEC. No. of un duplicated persons assisted 89 89 89 88 355 B. Units of Service The City agrees to provide, at minimum, the following units of service by quarter: 1'1 2ad 3rd 4tb Quarter Quarter Quarter Quarter Total in JAN.- APRIL - JULY- ocr. - Year 2003 MARCH JUNE SEPT. DEC. Hours of advocacy 213 213 213 214 853 Referrals to shelter 7 7 8 8 30 C. Definition of Services Hours of advocacy: Represents hours of service given to clients. Referrals to shelter: When appropriate, an advocate will arrange for a clientto enter a domestic violence shelter. 4) . Records A. Project Files The City 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 and the County's notice to proceed on this project. 'l 4. Correspondence regarding budget revision requests. 5. Copies of all invoices and reports submitted to the County for this project. 6. Bills for payment. 7. Copies of approved invoices and warrants. -:r- - 'j Project Scope of Services No.2 - Page 2 DR AFT 8. Records documenting that costs reimbursed with funding provided under this Scope are allowable in accordance with OMB Circular A-87 for local governments and A-122 for nonprofit organizations. Such records include, but are not limited to: . For personnel costs, payroll time sheets for actual salary and fringe benefit costs. Time sheets must be signed by a supervisor and annotated to document percent of time charged against this project ifless than full time; . For staff travel, documentation of mileage charges for private auto use must include: a) odometer reading at beginning and end of trip, b) destination and starting location, and c) purpose oftrip; and . For copy machine use, postage, telephone use, and office supplies when these costs are shared with other programs and no invoice is available, log sheets or annotated invoices. 9. Documentation of the solicitation process used to select vendors and subcontractors with original purchase orders and subcontracts. 10. Documentation required by this Contract if any funds provided under this Scope are used to acquire equipment. 11. The City shall ensure that services provided with funding under this Contract are made available to residents of the following jurisdictions that are participating in the King County CDBG Consortium: Algona Beaux Arts Black Diamond Bothell Burien Carnation Clyde Hill Covington Des Moines Duvall Enumclaw Federal Way Hunts Point Issaquah Kenmore Kirkland Lake Forest Park Maple Valley Mercer Island Newcastle North Bend Pacific Redmond Renton Sammamish Shoreline Skykomish Snoqualmie Tukwila Woodinville Yarrow Point Unincorporated King County S"ervices provided with funding under this Contract may be limited to residents of one or more of the above-referenced jurisdictions. Invoices The City/shall submit invoices to the County within 20 business days after the end of the first, second and third quarters. The City shall submit its final invoice to the County in accordance with Part 1, Section 3C. The City shall submit invoices to the County in the fonn of a CDBG Program Voucher Reimbursement Request Form, which will be provided by the County. Such fonns shall be signed by an authorized representative of the City. Project Scope ofServi?es No.2 - Page 3 -::J--l.o 6) Reports DRAFT The City shall collect and report client information to the County quarterly and annually on a Program Accomplishment form, in a fonnat provided by the County. The City shall submit with the final invoice a Project Funding Report form, in a fonnat provided by the County, itemizing all funding used for the project. .. ./ =r-l Project Scope of Services No. 2- Page 4 .~ CtT"O, Federal '^~ J 2003 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM ~t:Kru~~~~I~c;S'~~~~V~;ÔJE'éTS '" Agency Name: City of Federal Way . CDBG Project No.: 'to 3384 CDBG Project Title: Reporting Period: ~ 1st Quarter ø 2nd Quarter 0 3rd Quarter 04th Quarter OR 0 Monthly '( Month Fe'deral Way Domestic Violence! ggQI-:-.VÎr¿.fi"y\;{$ Advocate Personnel (State names of employees funded in whole or part by your contract) Michelle Hauck ...~ .. . Accomplishments By Performance Measures Performance Measures Reporting Period Race (Only for reporting period) #Hlspanlc Single Head of Household Income (only for non.presumed x.., benefit projects) Projected Actual Cumulative to Date White: Black/African Ameriëãñ: Asian: AmeriCan Indian/Alaskan ÑãiiVë: Native HawaIIan/Other Pacific Islander American Indian/Alaskan Native & White: #Total not Hispanic .2Lh!!!.no j9& 6š- 27 . 25 Moderate (51-80%) Low (31.50%) e~tremely Low (Q.300/0) 1 t\ 1. Undupllcated Count of Persons Assisted 178 I 314 I 314 À 2. Hours Of Advocacy 426 I 1309 11309 3. Referrals to Shelters 14 I 25 I 25 - 4. Asian & White Black/African American & White: American Indian/Alaskan Native Black/African American: Other Multi-racial TOTAL: 289 25 . 5. Provide a narrative explanation if you are behind in meeting performance measures. .' SEE INSTRUCTIONS ON BACK ~ . R....,ewed: .,'. . . Entered: Revised ( ~ ~ g. 3 CD ::3 ..... V;, Pending Item ]>ARKS, RECREATION AND CULTUAL SURVICES MEMORANDUM Date: To: Via: From: RE: October 7,2003 PRHSPS Council mmitteet.~ David Mo anager Jennifer Schro , Director Parks and Recreation Com issions Review of the Field Use Policy Background At the September Parks and Recreation Commission meeting, Mark Freitas submitted a written statement regarding his conCerns that the city should change its scheduling practices. Mr. Freitas stated that the city needs a fair and equal access to scheduling fields. The commission assigned a committee to meet with staff to review our current practices and policy's for scheduling fields. The Commission reviewed the scheduling policies that govern filed allocation along with the priority list of users, which are: 1) City of Federal Way programs, 2) Federal Way School District, 3) Federal Way Non-profit and Youth Service providers and 4) Private groups and events, They also reviewed the number of teams (216), participants (2,846) and coaches (381). These users schedule school district fields in addition to the City's 11 fields for practices and games. The Commission reaffirmed the current field use scheduling policies at their October 2 meeting and directed staff to draft a letter to Mr. Freitas summarizes the Commissions review and findings to his request for a fair process of scheduling. Attachments: Letter to Mark Freitas District III Field Use Request Letter from Mark Freitas September 4 Letter from Mark Freitas October 2 Letter from Perry Woodford, President, Federal Way United Soccer Club. tø-\ October 6, 2003 Mark Freitas 32032 2nd Ave SW Federal Way, W A 98023 Dear Mark Freitas, Thank you for your letter concerning the soccer field allocation process currently utilized by the City of Federal Way. On Wednesday, September 24, an Ad-Hoc Committee ofthe Parks and Recreation Commission convened to discuss the field scheduling priorities and procedures implemented by staff. At the meeting the Committee reviewed the current practices for determining priority of use. They are as follows: . 1. City of Federal Way Parks, Recreation and Cultural Services Department programs. 2. The Federal Way School District. 3. Federal Way Non- Profit Athletic & Youth Service Organizations (as described within school district boundaries) Programs and Services. 4. Private Group Programs/ Events With the priority use policies as a guide, the current practice of scheduling soccer fields are to al1ocate time for City programs first, Federal Way School District second, Federal Way Soccer Association third and other non-profit organizations and private groups. This practice is also consistent with other local cities surveyed. Utilizing the current policies, your request for use of field scheduling would fal1 under the category of Private Group Programs/Events as your team is registered with a Des Moines League and is not registered with a Federal Way Association. Your second option would be to request field use through the time al1ocated to the Federal Way Youth Soccer Association, Our understanding of the WSYSA guidelines is that teams who wish to practice outside of the Association's designated boundaries may request a waiver. The Committee also reviewed policies of other communities in our area and found the field scheduling practices very similar. A copy of that research is included with this packet for your reference. The processes of scheduling were addressed as well by the Committee. When an organization requests field use they apply for blocks of time and the organization develops individual team practice and game times. City staff does not have the resources or appropriate information to schedule individual team practices and games. Concerns regarding teams that are assigned to certain fields and at what times may be discussed directly with the organization who is al1ocated that block of time. ~-L CurrentJy, the scheduled use on soccer/football/muJti-purpose fields after city and school district programs include: . The Federal Way Soccer Association with 2,241 youth enro]]ed. The Federal Way Boys and Girls Club soccer with 215 youth enrolled. Federal Way Junior FootbaU with 330 youth in their program. YMCA has 60 youth participating in their football league program. . . . These four users co]]ectively represent a total of 216 teams, and 2,846 youth who need scheduled practices and game times on seven lighted soccer fields, As you can see there is a high demand for field time and scheduling availability is limited, The Committee recommended to the Parks Commission on October 2, 2003 to retain the current field scheduling priority and determined that the City of Federal Way has acted consistently with its policies and procedures when scheduling fields. We recognize however, that you are having difficulty scheduling field use for your team. Please submit the Field Use Request enclosed to the FWSA to use fields outside of your teams' district. Once we are in receipt ofthe approved waiver, we will be happy to accommodate your request if possible, Secondly, the Committee recommended that staff implement a fonnal procedure with the major users that any unused time is returned to aUow for requests that are not approved, Staff will meet annually with the major user groups, allocate time and request a "turn back" by a certain date. Hopefully by adding to the process a date of when users that are schedule blocks of time must return field time that will not be used, will provide additional access to fields for other non-profit youth organizations and private groups. We appreciate your efforts in making your concerns heard and will continue to address field scheduling issues as they arise in the community. Please feel free to contact John Hutton, Recreation Supervisor for any additional information, Sincerely, C.T, Purdom, Chair Parks and Recreation Commission cc: City Council David Mosley, City Manager Parks and Recreation Commission Jennifer Schroder, Director enc1: Field Use Scheduling {¡;.<3 . . . ,.', -: ,..: :';' : ; . \ "leld Use Request This fòon is to be uøad fur th,e ptlIJ)O.lIQ of. a fJ;:11U'tÙi \me of a fiÐ1d outsido offlJct(' h~J AlSociattøl1p for tho putpoSÐof ~oes. nt:lðfor g8mD$. - Pan" ofrcqueBt: ~ Co9gbœ hdòm\t1tion: N8.w.e: Addreøa:. Cñy: Ph~ Mombet: Stø:te; Z4t Code: ...:.. Team btfumtntiou; A@e'. TJ- Assooiattcm; Thanl NIUJJ.O; Home Flald Aftdgned: Mal~ FomaIo Club:- - F{cld Infbmlatlon Requesting: OpfI.<m. 1: . FieI4: Optton 2: Fictd: . Days: Nott. Hoetmg Club detÐtnÌ1.na wIdch apt)an riley profbc , ¡. Dø.ys: 1'jl1lC: Tfm:e: - __yös~no -yGs_ßO Did you ed1auøt aU mœtttt witbfu your home Association fur fio1d ~ W ~ yom hol11Ø Aøsooføtlon no1ifiod of. your hûont 10 leek fWld use Q11t'Jf~e tb.e(c .A.IWOO1øtion.7 . WilJ.1bis ßo1d be uso4 ibr ~ pm:pose of pœ~ Win fills ~d be uøed.fur: tmI PUtp08tY of1œgn.e pIn<:s? .~_DO --3ðS. --..110 O:>aoJ1CS tt!g"øtute; ,Amc- S(~ }{Oat .Msociatlœ.'s Sigttsturcr DIaD: . Date: Rom: ClubPQ SÎgtl8.fIJr~ Option Olo:ror¡; Daœ-. WhœJ, oomplotcd a Copy Ð:UI3t bø tnaUacho; Díafrlot m - sot' gO'" Sl NH 04 Auburn. Wsw. 9$k)Q2 A.nu: Bmm.dm:y Cmntnt.tf;Do .'lo ~'1 . . '. . .. ,." .;S . , -.". ..-.'..-.. .-.L..:_- .<.~.:.-~"~-,.:-~c-c~ Table 4 Soccer Field Allocation Practices. Federal Way & Other Communities Field Allocation Priorties City of City of City of CitY of Federal Way Kent Auburn Des Moines Priorities City Operated Programs 1 1 1 1 Local School District Proorams 2 2 2 2 Local Non-Profit & Youth Service PrOviders 3 3 3 3 Private Group Proorams/ Events 4 4 4 Independent Youth Teams within City or School Dist 4 Adult OrQanìzations 5 Other Factors for Consideration Current Community needs and interests X X X X Past field use of oroanization X X X X Impact of use on surrounding neighborhood and field X X X X ~ (p Table 5 Youth Soccer! Football Providers Participants Teams Coaches Federal Way Soccer Association 2241 191 400 Federal Way Boys and Girls Club (soccer) 215 15 30 Federal Way Junior Football 330 5 41 Federal Way YMCA (flag football) 60 5 10 Ò9/05/03 FRI 08:44 FAX 253 661 4739 I4J 001 Fed Wa.v Park.Alnt- - - - - --'- -- . Mark Freitas 32032 2nd Ave SW 'Federal Way, Washington 98023 (253) 838-8327 I am here today to ask the city to take a step for fuir and equal aœess to parks and recreational opportunities when it comes to scheduling use of fields. As it is now, City staffwasbes it bands of scheduling and responsibility for fair and equal access,unless you are a "Premier" soccer player, registered with Federal Way soccer association's . Federal Way United Soccer Club. My observation is that even within the club, noo- premier kid$ are treated differently. Staffs answer in. the past when requests for use of vacant fields bas been "We allocate aU time to the soccer assoèîation, It would be a nightmare ['br us to have to talk to every coach. We don't have the time". The soccer association will only schedule t~ belonging tothe Federal Way clubs. Residents not playing for the Federal Way club are told that the club has no time slots available. Residents playing for the club are scheduled "Premier leve~ first". In the Pas4 d1:iving by Lakota play fields after 8pm, any week night, one could see vacant fields, with lights on. Federal Way soccer association has tbeassigned time~ but who wants to practice after Spill? The fields were empty. I coach a Girls under 18 soccer team, Alliance '85. I have since 1989. I have coached many others, a.lso. We are CUtTentIy registered with the Des Moines Soccer Club. 13 of the 18 girls on the team are Federal Way residents. We are a "recreational" team, p]aying . about 30 games per year ftom April through December. Last year I requested with City staff practice time after 8pm on Wednesday nights. I volunteered to produce proof of Jiability insurance coverage, and pay for lighted field time. John Hutton told me the policy was that Federal Way soccer association was assigned the fields. to go ask them. I explained the realities of Federal Way soccer association allowing my team from Des Moines the use of the fields. He told me there was nothing he could do. When prompted, He agreed to ask the Federal Way association repr~sentative if they would wind if we used an unused field and paid for the lights. The ansWer must have been obvious when he did not get back to me. The lights were stiU on, and the fields were still empty. We are no ~~oser this year to any access to the fields. . I am not alone in this request Non-Premier t~ in Federal Way are treated the same. I am asking that the City of Federal Way take some responsibility in seeing that the average recreationa.1 kid. who lives in Federal Way, bas some access to local fields, in some 1àir and equitable way. I am asking that public dollars be returned to local "average" tax payers, with «averago"1cids in the form of usage ofloca1 fields. Other Cíties schedule their fields, why cannot Federal Way? Why cannot the City keep some sort of control or veto power over discriminatory practices? I guess that might mean we'd have to talk to local coaches, who maybe didn't fit the "Premier') Attitude, but taught things "average" people use. Thank You for your time. ~--L Mark Freitas 32032 2nd Avenue South Federal Way, Washington 98023 (253)838-8327 I am here today to Again ask for fair and equal access to fields and facilities owned by the citizens of Federal Way. Attached please fInd the City of Federal Way's equal opportunity statements regarding general guidelines and practices And the City's Guidelines for employment. In them it appears to be the desire of the City to grant equal access in employment and treatment of employees. I am asking the emplòyees and Council to take it one step further and apply these principles to the citizens of Federal Way. Also find enclosed the Bylaws ITom the Federal Way Soccer Association and its member organization Federal Way United. Nowhere in either document does there appear equal access or equal opportunity statements or proceedures. From their regulations find the job descriptions of Fields Director and Fields Coordinator. Again, absent equal access or equal opportunity duties. I ask again for the City to grant access to all. I do not think it is good policy to abdicate this responsibility to a self self-serving organization. ~fZk ~-l - û) Will' Ò'. ~w~ ~ ~ f;¡¡¡ Est. ~ '- 1990 C . Sf)fjCER CLUB @ September 29, 2003 Federal Way City Council C/O City of Federal Way P;O. Box 9718 Federal Way, WA 98063-9718 Perry Woodford 25219 43rd Place South Kent, WA 98032-4115 Dear Ms. Schroder, I am writing to formalize my position on the scheduling offie1ds in the City of Federal Way. The youth soccer community has had a long relationship with the City Parks Department that has provided and improved facilities, and communication that provides many youth and adults clean and safe places to play soccer. The arrangement the soccer association and the City have is similar to many communities and works well. Times and fields are negotiated and the times not used by the soccer club are returned to the city for rescheduling. The youth soccer program has provided several hundred thousand dollars in direct funding or support of grants, The majority of this funding has been a joint effort and has created great facilities. The hard work of the citizens and city staff that live and play in these fine facilities should be rewarded with a consistent and fair method of scheduling fields. What we have today is working well. Under Washington State Youth Soccer Association policy a soccer association has a defined geographic boundary. Soccer associations and their members are to abide by the boundaries or acquire permission via a field use agreement between the associations before practicing or playing across the boundaries. I see any change in the scheduling process creating conflict of policy between the City and the Federal Way youth soccer community. Our accomplishments are built on a foundation made of citizens, young and old, volunteers, the parks department and many City staff members. Please call me if you have any questions. p ~ - /£ /- ;:~ 11~~~~- . p~¿¿r~;d . President - Federal Way United Soccer Club 253-941-0638 Home 253-773-7815 Work b-~