Title
Dept/ Agency: Economic & Housing Development
Action: ( X ) Ratifying (X) Authorizing (X) Amending
Type of Service: Amendment to Affordable Housing Agreement
authorized by Resolution7R3-G 070115
Purpose: First Amended HOME Affordable Housing Agreement
Entity Name: Downtown Partners Urban Renewal Associates, L.P
Entity Address: 77 Park Street Montclair, New Jersey 07042
Grant Amount: $1,334,366.00
Funding Source: HUD,HOME Funding
Contract Period: Funds provided under the Agreement shall be for a period of two (2) years and not to exceed four years, from the date of adoption by the Newark Municipal Council
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( X ) Grant ( ) Sub-recipient ( ) n/a
List of Property: (if applicable)
(Address/Block/Lot/Ward)
999-1005 Broad Street/Block 111/Lot 70.02/Central Ward
Additional Information:
Resolution 7R3-A 022013, Approved HOME Agreement for HOME funds in the amount of $1,057,652 (Rescinded by Resolution 7R3G 070115)
Resolution 7R3-A (S) 053013, Approved Thirty (30) Year Tax Abatement
Ordinance 6PHS&F F 062806
Resolution 7R3-G 070115, Approved HOME funds and Affordable Housing Trust Funds (Loan) in a total amount of $1,334,366.00
body
WHEREAS, pursuant to Resolution 7R3-G, on July 1, 2015 the Municipal Council authorized the Mayor and/or his designee, the Director of the Department of Economic and Housing Development, to enter into an affordable rental housing agreement with Downtown Partners Urban Renewal, LP in an amount of $679,548.00 in Home funds ("Home Agreement") and a loan agreement with Downtown Partners Urban Renewal, LP in the amount of $654,818.00 from the City's Affordable Housing Trust Fund, authorized by Resolution 7RG, adopted on November 6, 1985 and Section 10:24-11 of the Revised General Ordnances of the City of Newark, as amended and supplemented ("Loan Agreement"). The Loan Agreement and Home Agreement were to be used as gap financing for project related and construction costs and for the new construction of a five story mixed-use, mixed income, multi-family rental project consisting of a total of eighty-eight (88) units of which eleven (11) units are to be assisted with HOME program funds. Five (5) of the eighty-eight (88) residential units are designated as permanent supportive housing for former homeless individuals and/or households with special needs for a project known as 999 Broad Street Phase I, located at 999-1005, Newark, New Jersey (Block 111, Lot 70.02) in the Central Ward (the "Project"); and
WHEREAS, the City wises to terminate the Loan Agreement authorized through Resolution 73R-G, adopted on July 1, 2015, as it no longer wishes to award Downtown Partners Urban Renewal, LP any funding from the City's Affordable Housing Trust Fund, and also wishes to disencumber the funds authorized therein in the amount of Six Hundred Fifty Four Thousand Eight Hundred Eighteen Dollars and Zero Cents ($654,818.00); and
WHEREAS, the City also wises to amend the Home Agreement to increase the HOME funding for the Project by Six Hundred Fifty Four Thousand Eight Hundred Eighteen Dollars and Zero Cents ($654,818.00) for a new total amount of One Million Three Hundred Thirty Four Thousand Three Hundred Sixty Six Dollars and Zero Cents $1,334,366.00.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Loan Agreement from the City's Affordable Housing Trust Fund, authorized through Resolution 73R-G, adopted on July 1, 2015 in the amount of Six Hundred Fifty Four Thousand Eight Hundred Eighteen Dollars and Zero Cents ($654,818.00) is hereby terminated and the funds authorized therein are to be disencumbered by the Acting Director of Finance.
2. The Mayor and/or his designee, the Director of the Department of Economic and Housing Development are authorized to enter into a First Amended Home Agreement with Downtown Partners Urban Renewal Associates, LP (the "Entity"), 77 Park Street, Montclair, New Jersey 07042, in the form attached hereto, to increase the HOME funding for the Project by Six Hundred Fifty Four Thousand Eight Hundred Eighteen Dollars and Zero Cents ($654,818.00) for a new total amount of One Million Three Hundred Thirty Four Thousand Three Hundred Sixty Six Dollars and Zero Cents $1,334,366.00 in the form of a deferred loan for a period of thirty (30) years, pursuant to the HOME Program (24 9CFR part 92), as may be amended and supplemented from time to time (the "Home Agreement"), to be used for project related and construction costs for the Project and construction of the Units
3. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to establish a declaration of covenants, conditions and restrictions to ensure that the Project remains affordable for a period of thirty (30) years by requiring the Entity to execute a separate Mortgage and Mortgage Note for the amount of funding provided to the Entity in the Home Agreement, as amended. Said covenants, conditions and restrictions shall run with the land and bind the Entity and any subsequent purchasers and owners, their heirs, executors, administrators and assigns and all persons claiming by, through or under their heirs, executors, administrators and assigns with this agreement for a period of thirty (30) years
5. The term of the Home Agreement, as amended, shall be for a period of two (2) years from the date of adoption of this authorizing resolution by the Municipal Council.
6. The Entity shall be responsible for the recordation of the final fully executed First Amended Home Agreement and the related Mortgage and any amendments thereto in the Office of the Essex County Register's Office.
7. The Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to effectuate certain business terms and conditions related to the Home Agreement, as amended, as permitted by New Jersey Law and may enter into access and right of entry agreements and other relevant documents related to these fund allocations in forms subject to the approval of the Corporation Counsel. In addition, the Deputy Mayor/Director of the Department of Economic and Housing Development is hereby authorized to enter into a maximum of two six month extensions of the term set forth in the Home Agreement, as amended, and any contract timelines and milestones contained therein, provided that any contract timelines and milestones are not extended beyond the two permitted six month extensions, subject to full written disclosure (in the form of a signed memorandum to be submitted prior to adoption) to the Newark Municipal Council by the Deputy Mayor/Director of the Department of Economic and Housing Development and the approval of the Corporation Counsel.
8. The Entity must adhere to all milestones and timelines in the Project Schedule as further set forth in the Home Agreement, as amended. The Project must conform to the City of Newark Design and Construction Standards Guidelines for New Home Construction, including standards for environmental sustainability and energy efficiency, as established by the Department of Economic and Housing Development. Should the Entity fail to complete the Project within the specified time frame set forth in the Home Agreement, as amended, then the City, in its sole discretion, in addition to any other remedy available in the Home Agreement, as amended, or as allowed by law, may direct the Entity to repay all funding authorized in the Home Agreement, as amended.
9. The Entity must remain in compliance with all municipal, State and Federal laws including, but not limited to the City of Newark's Minority Set-Aside Ordinance (6S&FD 040595) and its Affirmative Action Plan (7RBP030195) and Federal Executive Order 11246 (as amended by Executive Orders 1137 and 12086) with respect to the award of goods and services, as may be amended from time to time. The Entity has agreed to ensure that a minimum of 40% of the workers employed during the construction of the project shall be Newark residents and that 30% of all contractors, subcontractors and suppliers shall be Newark companies.
10. Units assisted with HOME Program Funds must be designated upon execution of the Home Agreement and First Amended Home Agreement and must remain fixed units for the duration of the affordability period. Households seeking to occupy a HOME assisted unit must be certified prior to occupancy and recertified annually.
11. Attached hereto are two (2) certifications from the Acting Director of Finance of the City of Newark which states that (1) there are sufficient funds in the amount of One Million Three Hundred Thirty Four Thousand Three Hundred Sixty Six ($1,334,366.00) and (2) that the line appropriation of official budgets which shall be charged is as follows:
Business Unit Department Division/Proj. Account # Budget Ref.
NW051 G14 D14M0 72090 B2014
NW051 G09 D19K0 72090 B2009
12. A copy of the fully executed First Amended Home Agreement and the Mortgage Note and the recorded Mortgage must be placed on file in the Office of the City Clerk by the Deputy Mayor/Director of the Department of Economic and Housing Development.
STATEMENT
The Resolution terminates the Loan Agreement from the City's Affordable Housing Trust Fund, authorized through Resolution 73R-G, adopted on July 1, 2015, and ratifies and authorizes the Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, to enter into and execute a First Amended Home Agreement with Downtown Partners Urban Renewal Associates, LP, 77 Park Street, Montclair, New Jersey 07042 to increase the HOME funding for the Project by Six Hundred Fifty Four Thousand Eight Hundred Eighteen Dollars and Zero Cents ($654,818.00) for a new total amount of One Million Three Hundred Thirty Four Thousand Three Hundred Sixty Six Dollars and Zero Cents $1,334,366.00, in the form of a deferred loan for a period of thirty (30) years, pursuant to the HOME Program (24 9CFR part 92), as may be amended and supplemented from time to time. (Central Ward)