AG 11-207 - HABITAT FOR HUMANITY SEATTLE/SO KING COUNTYRETURN TO: Jeri -Lynn Clark EXT: 2401
CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM
ORIGINATING DEPT. /DIV. CED /COMMUNITY SERVICES
2. ORIGINATING STAFF PERSON: JAY BENNETT EXT: 2650 3. DATE REQ. BY:
4. TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
• PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
• PROFESSIONAL SERVICE AGREEMENT ❑ MAINTENANCE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES / CDBG
• REAL ESTATE DOCUMENT ❑ SECURITY DOCUMENT (E.G. BOND RELATED DOCUMENTS)
• ORDINANCE ❑ RESOLUTION
• CONTRACT AMENDMENT (AG #): 11 -207 ❑ INTERLOCAL
• OTHER
5. PROJECT NAME: HABITAT FOR HUMANITY - MOU
6. NAME OF CONTRACTOR: HABITAT FOR HUMANITY SEATTLE /SOUTH KING COUNTY
ADDRESS: 560 NAcHES AVE SW, STE 110, RENTON, WA 98057 TELEPHONE
E -MAIL: KirkUghabitatskc.org FAX:
SIGNATURE NAME: KIRK UTIZINGER, CEO TITLE:
206 - 453 -2950
206 - 456 -6943
CEO
7. EXHIBITS AND ATTACHMENTS: ❑ SCOPE, WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS /CERTIFICATE ❑ ALL
OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES ❑ PRIOR CONTRACT /AMENDMENTS
8. TERM: COMMENCEMENT DATE: WHEN SIGNED COMPLETION DATE 15 YRS. FROM SIGNING DATE
9. TOTAL COMPENSATION $ N /A/ (INCLUDE EXPENSES AND SALES TAX, IF ANY)
(IF CALCULATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: ❑ YES ❑ NO IF YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED ❑ YES ❑ NO IF YES, $ PAID BY: ❑ CONTRACTOR ❑ CITY
❑ PURCHASING: PLEASE CHARGE TO: N/A
10. DOCUMENT /CONTRACT REVIEW
• PROJECT MANAGER
• DIRECTOR
• RISK MANAGEMENT (IF APPLICABLE)
• LAW
11. COUNCIL APPROVAL (IF APPLICABLE)
INITIAL / DATE REVIEWED INITIAL / DATE APPROVED
COMMITTEE APPROVAL DATE: SITS COUNCIL APPROVAL DATE: 3
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR DATE SENT:
DATE REC'D:
• ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSE, EXHIBITS
INITIAL / DATE SIGNED
• LAW DEPARTMENT AA
P 1
• SIGNATORY (MAYOR OR DIRECTOR) s
• CITY CLERK _
• ASSIGNED AG# AG# 11-7b-7&
• SIGNED COPY RETURNED DATE SENT
COMMENTS:
FIRST AMENDMENT TO
MEMORANDUM OF UNDERSTANDING BETWEEN
HABITAT FOR HUMANITY SEATTLE /SOUTH KING COUNTY
AND THE CITY OF FEDERAL WAY FOR
THE PURCHASE AND REHABILITATION OF HOMES IN THE WESTWAY AREA
THIS FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING (the "First Amendment ") is
made as of this I V, day of January, 2014, by and between HABITAT FOR HUMANITY SEATTLE — KING
COUNTY ( "Habitat "), a Washington nonprofit corporation, successor by merger to Habitat for Humanity
Seattle /South King County ( "HFHSSKC"), and the CITY OF FEDERAL WAY, WASHINGTON (the "City"), a
Washington Municipal Corporation.
RECITALS
A. The City and HFHSSKC are parties to that certain Memorandum of Understanding dated
December 21, 2011 (the "MOU ").
B. Habitat has succeeded to the interests and obligations of HFHSSKC in the MOU.
C. The parties wish to amend the MOU as provided in this First Amendment.
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by the parties, the parties agree as follows:
1. Number of Homes Rehabilitated. The number of foreclosed properties which Habitat will
acquire and redevelop during the term of the MOU is hereby reduced from fourteen (14) to
a minimum of ten (10).
2. Deposit of Payments. Section 1.1 is hereby amended to provide that Habitat shall not be
required to deposit into escrow any amounts attributable to payment s of taxes or insurance
when depositing NSP3 mortgage payments.
3. AMI. The second sentence of Section 1.8 of the MOU is hereby revised, as follows: "If the
home is sold within the affordability period, for those homes where the owners are at 50%
or below area median income ( "AMI "), Habitat will resell those homes only to a buyer who
is also at 50% or below area median income ( "AMI "). At no time shall less than 5 of the
homes within the Project be owned by owners at 50% or below AMI. The other 5 homes
may be owned and resold to a buyer who is up to 80% or below AMI.
4. Joint Commitment. Section 3.3 is hereby amended to provide that the City and Habitat may
meet at any time to discuss use of the fund, but shall meet at such time the fund exceeds
$200,000 in order to develop a plan for use of the fund proceeds in accomplishing the
mutual goals of the parties to provide affordable housing and community stabilization for
the City of Federal Way. Any new projects shall be incorporated into the MOU by
amendment as the parties may mutually agree, but expenditures shall continue to be
subject to the requirements of the NSP3 Developer Agreement for Westway Neighborhood
Housing Project dated September 6, 2011 between the parties.
5. Ratification. Except as expressly modified by this First Amendment, all of the terms,
covenants and conditions of the MOU shall continue in full force and effect and are hereby
ratified by the parties.
IN WITNESS WHEREOF, Habitat and the City have executed this First Amendment, by their duly
authorized representatives, as of the day and year first written above.
CITY OF FEDERAL WAY
By:
1 it /
Federal ay, WA 98003
�_ 1 V ■
HABITAT FOR HUMANITY
SEATTLE — KING COUNTY
Sandra Lynch Holmes
Its: V 1) lY(,�/%ii:J%h/VVA
Kirk Utzinger
Its: CEO
A=Pja440,VT-jy?- O FORM:
KIC H-Pgb , e
STATE OF WASHINGTON
) ss:
COUNTY OF KING
Before me, a Notary Public in and for said County and State, personally appeared
5Aa/DfzA N11Cq 1401mE3 , to me personally known as the Vi° Ar7mwi5 ryATlo.1 of
HABITAT FOR HUMANITY SEATTLE- KING COUNTY, a Washington nonprofit corporation,, who first being
duly sworn upon oath, acknowledged execution of the foregoing instrument for and on behalf of said
corporation.
WITNES�S\my hand and notarial seal this %� day of �JANUA &1/ , 20/1-/.
\ \
0 �Ile
Print Name: 7—e2e3.4- L • C) i,mAJ
N % -► %
Notary Public in and for the State of Washington,
residing at
��� C� ►�����•�```0r. -'
My commission expires:
STATE OF WASHINGTON )
ss.
COUNTY OF KING )
On this 16 day of J ANUr�P— y , 202_� before me, the undersigned, a Notary Public
in and for said County and State, duly commissioned and sworn, personally appeared
KIRK UTz-ow-e Z , to me personally known as the C C-70 of HABITAT FOR
HUMANITY SEATTLE- KING COUNTY, a Washington nonprofit corporation, who first being duly sworn
upon oath, acknowledged execution of the foregoing instrument for and on behalf of said corporation.
WITNESS my hand and official seal the day and year in this certificate above written.
0'Ltl�.S
Print Name:
y� Notary Public in and for the State of Washington,
Z► to residing at
My commission expires: g! / 1115
411 east
�+1j ►1111 \��������
COUNCIL MEETING DATE: March 4, 2014 ITEM #: LO
....... ... ..... ......... _ ......... _... _ _ ........_ . ...._...... __ . _ .........
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: AMEND THE HABITAT FOR HUMANITY MEMORANDUM OF UNDERSTANDING FOR THE WEST WAY
PROJECT
POLICY QUESTION: DOES THE CITY COUNCIL WISH TO AMEND THE MOU WITH HABITAT FOR HUMANITY?
COMMITTEE: Finance, Economic Development, Regional Affairs MEETING DATE: February 25, 2014
CATEGORY:
X Consent ❑ Ordinance ❑ Public Hearing
❑ City Council Business ❑ Resolution ❑ Other
STAFF REPORT BY: Jay Bennett DEPT: CEDD
Attachments: Proposed amendment to the NSP3 Memorandum of Understanding
Background: On November 5, 2013, the City Council authorized an amendment to the NSP3 contract with the
WA Department of Commerce, reducing the number of recaptured and rehabilitated homes from 14 to 10 homes
in the "Greater West Way" Neighborhood. At their regular meeting on January 7, 2014, Council authorized
amending the City/ Habitat Developer's Agreement, aligning the document with the Commerce agreement and
shifting the project budget to reflect the actual outcomes.
The proposed amendment to the Memorandum of Understanding memorializes:
a) Project outcomes from 14 to 10 homes, aligning with previous project agreements,
b) Amends Section L lof the City/Habitat MOU, permitting Habitat to pay property taxes and hazard
insurance from the specific homeowner mortgage payments,
c) Clarifies Section 1.8 regarding affordability and resale covenants,
d) Provides the parties with the ability to meet and discuss reinvestment of recaptured funds sooner.
Options Considered:
1. Approve the amendment to the Memorandum of Understanding with Habitat for Humanity —
Seattle/King County.
2. Direct staff to make changes.
MAYOR'S RECOMMENDATION: Option 1.
MAYOR APPROVAL: ' -. DIRECTOR APPROVAL:
Com ittee ncil
CHIEF OF STAFF: jrdrir► 14
Com it Council
COMMITTEE RECOMMENDATION: "I move to forward Amendment No. 1 to the NSP3 Memorandum of
Understanding with Habitat for Humanity — Seattle /King Count y for the NSP 3 Greater West Way Neighborhood
project to the March 4, 2014 consent agenda for approval. "
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: "I move approval of Amendment No. 1 to the NSP3 Memorandum of
Understanding with Habitat for Humanity - Seattle /King County for the NSP3 Greater West Way Neighborhood
Project. "
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
COUNCIL ACTION:
❑ APPROVED COUNCIL BILL #
❑ DENIED 16T reading
❑ TABLED/DEFERRED/NO ACTION Enactment reading
❑ MOVED TO SECOND READING (ordinances only) ORDINANCE #
REVISED— 0811=010 RESOLUTION #
RETURN TO: Brook Lindquist EXT: x2401
CITY OF F�DERAL WAY LAW DEPARTMENT ROUTING FORM
1. ORIGINATING DEPT./DIV: MAYOR'S OFF�CE
2. ORIGINATING STAFF PERSON: B2YAtv7' ENGE EXT: x2510 3. DATE REQ. BY:
4. TYPE OF DOCUMENT (CHECK ONE):
� CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT O MAINTENANCE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES / CDBG
� REAL ESTAT`E DOCUMENT ❑ SECURITY DOCUMENT (E.G. sorm�La,r�nDOCUMErrrs>
O ORDINANCE ❑ RESOLUTION
❑ CONTRACTAMENDMENT(AG#): ❑ INTERLOCAL
xX OTHER MOU
5. PROJECT NAME: —
6. NAME OF CONTRACTOR: HABITAT FOR HUMANITY SEATTLE/SOUTH KING COUNTY
ADDRESS: P.O. Box 88337 TELEPHONE 206-292-5240
E-MAIL: 1vIICOOIS�'�ana.SEATTLE-H.�t3ITAT.ORG FAX: 206-292-5241
SIGNATURE NAME: M�tTtt�1 J. KOO�STx� TITLE CEO
i l��l'i6�
7. EXHIBITS AND ATTACHMENTS: X ScoPE WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS/CERTIFICATE ❑ ALL
OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN � REQUIRED LICENSES ❑ PRIOR CONTRACT/AMENDMENTS
8. TERM: COMMENCEMENT DATE: WHErr SIG1vED COMPLETION DATE: 15 YEARS FROM SIGNING DATE
9. TOTAL COMPENSATION $ N/A (INCLUDE EXPENSES AND SALES TAX, IF ANY�
(IF CALCULATED ON HOURLY LABOR CHARGE -ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: 0�S X NO IF YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED ❑ YES X NO IF YES,
❑ PURCHASING: PLEASE CHARGE TO:
10. DOCUMENT/CONTRACT REVIEW
❑ PROJECT MANAGER
❑ DIRECTOR
❑ RISK MANAGEMENT (1F �PL�CABLE)
❑ LAW
N/A
1NITIAL / DATE REVIEWED
PAID BY: ❑ CONTRACTOR � CITY
INITIAL / DATE APPROVED
11. COUNCILAPPROVAL(IFAPPLICABLE� COMMITTEEAPPROVALDATE:_ll/22/11_ COUNCILAPPROVALDATE:_12/6/11
12. CONTRACT SIGNATURE ROUTING
❑ SENT TO VENDOR/CONTRACTOR DATE SENT: 12/15/11 DATE REC'D: 12/21/11
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSES, EXHIBITS
IN TIAL / DATE SIGNED
❑ LAW DEPARTMENT � a- ^�- � j
❑ SIGNATORY (MAYOR OR DIRECTOR)
p'CITY CLERK l
e"ASSIGNED AG# AG# �`- �]
�SIGNED COPY RETURNED DATE SENT: ��. -2� ' l I
COMMENTS:
11/9
MEMORANDUM OF UNDERSTANDING BETWEEN
HABITAT FOR HUMANITY SEATTLE/ SOUTH KING COUNTY
AND THE CITY OF FEDERAL WAY FOR
THE PURCHASE AND REHABILATION OF HOMES IN THE WESTWAY AREA
THIS MEMORANDUM OF UNDERSTANDING ("MOU") is made this � of December
2011 by and between the undersigned representatives of the Habitat for Humanity
Seattle/South King County ("Habitat"), a Washington nonprofit corporation, and the City of
Federal Way, Washington ("City"), a Washington Municipal Corporation.
WHEREAS, the City desires a stock of attractive and durable housing;
WHERAS, the City desires affordable housing for future generations;
WHEREAS, the City neighborhoods promote a sense of stability;
WHEREAS, the rising residential foreclosures has destabilized families and neighborhoods;
WHEREAS, the Westway Area has been disproportionately impacted by the rising
residential forecfosures;
WHEREAS, the City applied and has been awarded $1.693 million for the Neighborhood
Stabilization Program (NSP) funds from the Washington State Department of Commerce to
provide targeted assistance to acquire and redevelop fourteen (14) foreclosed properties that
might otherwise become sources of abandonment and blight within the neighborhood;
WHEREAS, the City must expend the total grant allocation within 36 months of Washington
State Department of Commerce contract date which is March 8, 2014. A minimum of 30% of
the funds must be used to assist households at or below 50% of Median Family Income (MFI);
WHEREAS, Habitat has partnered with local cities and communities to rehabilitate and
transform foreclosed properties into homeownership opportunities for low to moderate
income families;
WHEREAS, the City and Habitat share common goals of creating access to homeownership
for people whose limited incomes make market-rate housing unaffordable, strengthening
communities and involving both those who need their affordable homes and a wide range of
others in the community in creating these homes and in local decision-making processes;
WHEREAS, the City and Habitat entered into an agreement dated September 6, 2011 to use
NSP3 funds to acquire, renovate, and sell foreclosed homes at affordabte prices to eligible
families, and Section 5.5 of this agreement specifically refers to this MOU;
WHEREAS, the City and Habitat will work cooperatively together along with others to return
the Westway Area to an acceptably higher standard and attractive condition through the
repairs to existing occupied dwellings and acquisition, development and resale of existing
salvageable structures, and other means and methods identified and agreed upon by the
parties.
NOW, THEREFORE, in consideration of the mutual agreements and covenants contained
herein and for other good and valuable consideration, the receipt and sufFiciency of which
hereby are acknowledged, it is mutually agreed and covenanted, by and between the parties to
this MOU, as follows:
1. Comrr�itment of Habitat.
1.1 Create a non-interest bearing account where all NSP3 mortgage payments are
deposited.
1.2 Habitat will submit quarterly reports to the City for the NSP3 mortgage account.
1.3 Purchase, rehabilitate and resell foreclosed houses available in the area.
Rehabilitation will comprise of simple, decent, affordable, and energy efficient
improvements.
1.4 Solicit volunteers to support site preparation and rehabilitation of homes in the
Westway Area.
1.5 Acquire external resources and partners to complete individual and cooperative
projects that may include repair and/or rehabilitation of homes in the Westway Area.
1.6 Provide homeownership training and education.
1.7 Establish a homebuyer selection process.
1.8 Place a deed restriction on every NSP3 home stating there is a 15-year affordability
period. If the home is sold within the affordability period, it must be sold to a buyer
who is at 60% or below area median income.
2. Commitment of the City.
2.1 City wil) manage the NSP3 agreement with Washington Department of Commerce.
2.2 City will seek to reimburse Habitat expenditures from NSP3 as expeditiously as
possible. �
3. loint Commitment
3.1 NSP3 and subsequent mortgage payments will be made available at a zero percent
(0%) interest rate to homebuyers to reduce mortgage costs.
3.2 Mortgage payments will be directed to future projects within the City of Federal Way
to benefit low- and moderate-low-income residents.
3.3 Once the fund meets or exceeds $200,000 the City and Habitat will meet to discuss an
additional project.
3.4 The City and Habitat will together be responsible for sustaining the Project to maintain
compliance with regard to income eligibility of the Purchaser(s), including
responsibility for compliance with provisions to assure continuing affordability.
4. Term and Termination. The terms of this MOU shall commence on the date written above
and shall continue until terminated on December 31, 2028, which represents the
affordability period, which is subject to NSP3 funds requirement of a 15 year resale term.
The parties may agree to extend the term of this MOU in writing signed by both parties.
The affordability period for the homes will be 15 years from the date they are sold. A deed
restriction will be placed on the home at the time of purchase. The deed restriction will
restrict the appreciation that the homeowner may earn upon sale and will require that the
home be sold to other low- or moderate-income buyers. The deed restriction will also
require owner occupancy of the home.
5. Indemni�cation. Habitat shall indemnify and hold harmless the City and its officers,
boards, commissions, employees, agents, attorneys, and contractors from and against any
and all liability, damages, and claims, (including, without limitation, reasonable fees and
expenses of attorneys, expert witnesses and consultants), which may be asserted by reason
of any act or omission of Habitat, its employees, agents, or contractors, which may arise out
of this MOU.
The City shall indemnify and hold harmless Habitat and its officers, boards, commissions,
employees, agents, attorneys, and contractors from and against any and all liability,
damages, and claims, (including, without limitation, reasonable fe�s and expenses of
attorneys, expert witnesses and consultants), which may be asserted by reason of any act or
omission of the City, its employees, agents, or contractors, which may arise out of this
MOU.
6. General Provisions:
6.1 Name of Account. The name of the mortgage repayment account will be "City of
Federal Way Affordable Housing Fund."
6.2 Banking. Habitat will be required to put all mortgage repayments in a mutually
agreed upon bank account. The City will reserve the right to review the statements at
will. In addition, the mortgage repayments from the NSP3 Program will be put in a
separate account from other Habitat funds.
6.3 Accounting. Habitat will use an internal accounting system that is both auditable and
conforms to all federal audit requirements.
6.4 Reporting. Every three months, Habitat will prepare a fund status report. This report
will be emailed to City Human Service Staff in the Mayor's Office. There will be an
annual meeting between Habitat and the City to discuss the fund status and future
housing plans.
[signature page follows]
IN WITNESS WHEREOF, Habitat and the City have executed this MOU as of the day and year
first written above by their du�y authorized representatives.
CITY OF FEDERAL WAY
Skip Priest, Mayor
33325 8 Ave S
Federal Way, WA 98003
ATTEST: APPROVED AS T FORM:
/`�
Carol McNeilly, CMC, City Cle k Patricia i hardson, City Attorney
HABITAT FOR HUMANITY, SEATTLE/SOUTH KING COUNTY
. �
Martin J. Kooi a, C ief Executive Officer
P.O. Box 88337
Tukwila, WA 98138
STATE OF WASHINGTON )
) ss.
COUNTY OF �/�t1G )
On this day personally appeared before me Martin 1. Kooistra, to me known to be the Chief
Executive OfFicer of the Habitat for Humanity Seattle/South King County that executed the
foregoing instrument, and acknowledged the said instrument to be the free and voluntary act
and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated
that he was authorized to execute said instrument and that the seal affixed, if any, is the
corporate seal of said corporation.
GIVEN my hand and official seal this 19 day of D� C�n�t3� � , 2011.
```��������;,, .
_,�., TERE
_ _ �c, ;9�
� .Y�'� � No �`�, C
S /`� ` � . 7� : r'
�. �� �♦ < ��v-
i "� e�� ��� ��,'�'?
''/' �� `y9 � y �N�GTO N`
' ����11\\����`��
l�.�u,�� � �l�r
r �s� , 0 �s o,� _
(typed/printed name of notary)
Notary Public in and for the State of Washington.
Mycommissionexpires ��2R (5