Title
Dept/ Agency: Economic & Housing Development
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Affordable Housing Agreement to provide HOME And Affordable Housing Trust Program funds to Downtown Partners Urban Renewal Associates, LP.
Purpose: Funds are provided to subsidize the construction and project related costs of five (5) units within the eighty-seven (87) unit five story, mixed-use, mixed-income, multi-family rental project. Five (5) of the eighty-eight (87) residential units are designated as permanent supportive housing for former homeless individuals and/or households with special needs.
Entity Name: Downtown Partners Urban Renewal Associates, LP.
Entity Address: 77 Park Street, Montclair, New Jersey 07042
Grant Amount: $1,334,366.00
Funding Source: HUD, HOME Funding/Affordable Housing Trust Fund
Contract Period: Four (4) years from the date of execution of the Agreement.
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:
(Address/Block/Lot/Ward)
999-1005 Broad Street/Block 111, Lot 70.02
Additional Information:
999 Broad Street Phase I Project
body
WHEREAS, through Resolution 7R3-A, adopted on February 20, 2013, the Newark Municipal Council authorized the Mayor and the Deputy Mayor/Director of Economic and Housing Development to enter into an Affordable Housing Agreement (the “Agreement“) with Downtown Partners Urban Renewal Associates, LP, a New Jersey limited partnership (the “Entity”), having its principal place of business at 77 Park Street, Montclair, New Jersey 07042, for federal HOME funds in the amount of One Million Fifty Seven Thousand Six Hundred Fifty Two Dollars ($1,057,652.00) for project related and construction costs 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; and
WHEREAS, as a result of an audit of HOME program funds allocated from prior years, the United States Department of Housing and Urban Development (“HUD”) has decided to de-obligate the initial funding awarded through Resolution 7R3-A 022013 in the amount of One Million Fifty Seven Thousand Six Hundred Fifty Two Dollars ($1,057,652.00); and
WHEREAS, the City recognizes the need to complete the above development and desires to enter into an Affordable Housing Agreement with the Entity to provide them with Six Hundred Seventy Nine Thousand Five Hundred Forty Eight Dollars ($679,548.00) in Federal HOME Program funds in the form of a deferred loan for a period of thirty (30) years, pursuant to the HOME program (24 CFR part 92) as may be amended from time to time (the “Home Agreement“), to be used for project related and construction costs for the new construction of a five story mixed-use, mixed income, multi-family rental project known as 999 Broad Street Phase I, located at 999-1005, Newark, New Jersey (Block 111, Lot 70.02) in the Central Ward consisting of approximately eighty-seven (87) units (the “Project”), with five (5) units to be assisted with HOME Program funds (the “Units”); and
WHEREAS, the City also wishes to enter into a loan agreement with the Entity to provide them with a loan in the amount of Six Hundred Fifty Four Thousand Eight Hundred Eighteen Thousand Dollars ($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 Ordinances of the City of Newark, as amended and supplemented, to be used as gap financing for project related and construction costs (“Loan Agreement”) and for the construction of the Units.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R3-A, adopted on February 20, 2013, is hereby rescinded.
2. The Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development are hereby authorized to enter into and execute a Affordable Housing Agreement, in the form attached hereto, with Downtown Partners Urban Renewal Associates, LP (the “Entity”), 77 Park Street, Montclair, New Jersey 07042, for Six Hundred Seventy Nine Thousand Five Hundred Forty Eight Dollars ($679,548.00) in Federal HOME program funds 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 Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, are each hereby authorized to enter into and execute a loan agreement with the Entity, in the form attached hereto (“Loan Agreement”), in the amount of Six Hundred Fifty Four Thousand Eight Hundred Eighteen Thousand Dollars ($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 Ordinances of the City of Newark, as amended and supplemented, to be used as gap financing for project related and construction costs for the Project and for the construction of the Units.
4. 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 separate Mortgages and Mortgage Notes for the amount of funding provided to the Entity in the Home Agreement and the Loan Agreement, respectively. 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 and the Loan Agreement 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 Home Agreement, the Loan Agreement and the related Mortgages 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 and the Loan Agreement 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 and the Loan Agreement 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 and the Loan Agreement. 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 and the Loan Agreement, then the City, in its sole discretion, in addition to any other remedy available by the Agreement or as allowed by law, may direct the Entity to repay all funding authorized in the Home Agreement and the Loan Agreement.
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 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 is a certification from the Municipal Comptroller 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 G09 D19K0 72090 B2009
NW051 G14 D1M40 72090 B2014
NW026 BS 30350 B2015
12. A copy of the fully executed Home Agreement, the Loan Agreement and the Mortgage Notes and the recorded Mortgages 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 Mayor and/or his designee, the Deputy Mayor/Director of the Department of Economic and Housing Development, are hereby authorized to enter into and execute a Home Agreement with Downtown Partners Urban Renewal Associates, LP (“the Entity”), 77 Park Street, Montclair, New Jersey 07042 for Six Hundred Seventy Nine Thousand Five Hundred Forty Eight Dollars ($679,548.00) in Federal HOME program funds. This resolution further 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 loan agreement, in the form attached hereto, in the amount of Six Hundred Fifty Four Thousand Eight Hundred Eighteen Thousand Dollars ($654,818.00) from the City’s Affordable Housing Trust Fund, authorized through Resolution 7RG, adopted on November 6, 19