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AG 11-207RETURN 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