Loading...
HomeMy WebLinkAboutResolutions - 1987.06.11 - 17800MISCELLANEOUS RESOLUTION NO. 87157 DATE: June 11, 1987 BY: PUBLIC SERVICES COMMITTEE - RICHARD D. KUHN, JR., CHAIRPERSON IN RE: COMMUNITY DEVELOPMENT DIVISION - HOME REHABILITATION FUND LEVERAGING AGREEMENT WITH FIRST OF AMERICA BANK, OAKLAND-MACOMB TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS: Mr. Chairperson, Ladies and Gentlemen: WHEREAS, Oakland County has been a recipient of Community Development Block Grant funds from the U.S. Department of Housing and Urban Development since 1974; and WHEREAS, the County of Oakland Community Development Division has operated a Home Improvement Program with Community Development Block Grant funds since 1976 to provide rehabilitation financing for privately owned, single family residential structures on behalf of the communities participating in the Oakland County, CDBG program; and WHEREAS, the County of Oakland and Community National Bank of Pontiac, (now First of America Bank, Oakland-Macomb) entered into an agreement on August 9, 1979 (Attachment A) for the Bank to service County loans made under the authority of the Community Development Block Grant Program; and WHEREAS, the U.S. Department of Housing and Urban Development has established procedures allowing Community Development Block Grant recipients to draw (in one lump sum) the funds designated for property rehabilitation in their approved CDBG application in order to establish a Rehabilitation Leveraging Fund with a private financial institution; and WHEREAS, the County of Oakland by Miscellaneous Resolution #82283 of September 21, 1982 adopted the basic concept of utilizing Community Development Block Grant funds to leverage private financial resources for the rehabilitation of residential and commercial property; and WHEREAS, the Community Development Division recommends establishment of a Home Rehabilitation Fund at First of America Bank, Oakland-Macomb in order to leverage private resources for the County's Home Improvement Program; and WHEREAS, the Home Rehabilitation Fund Leveraging Agreement with First of America Bank, Oakland-Macomb has been reviewed and approved as to form by the Office of Corporation Counsel; and WHEREAS, the Community Development Division has prepared the attached Home Rehabilitation Fund Agreement for execution by the County and First of America Bank, Oakland-Macomb to continue operation and servicing of the County's Howe Improvement Program loans; and WHEREAS, all funds utilized for Home Improvement loans and program administration shall be allocated from CDBG funds budgeted for rehabilitation programs, income generated by the lump-sum deposit, and program income received from the Home Improvement Loans, with no funds utilized from the County General Fund. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached Home Rehabilitation Fund Agreement with First of America Bank, Oakland-Macomb, and authorizes the Oakland County Executive to execute the Agreement and .establish the Fund. Mt. Chairperson, on behalf of the Public Services Committee, I move the adoption of the foregoing resolution. PUBLIC SERVICES COMMITTEE CHAIRPERSON APPROVE THE FQ:REGOING RESOLUTION OAKLAND COUNTY COMMUNITY DEVELOPMENT Home Rehabilitation Fund Agreement Preamble WHEREAS, the United States Department of Housing and Urban Development has enacted rules and regulations regarding the use of funds under the Community Development Block Grant program, and WHEREAS, the County of Oakland is a recipient of funds under such a program, and WHEREAS, the United States Department of Housing and Urban Development has through its rules and regulations established a procedure whereby a Community Development Block Grant recipient may draw in one sum funds designated in its Community Development application for the establishment of a rehabilitation fund in a private financial institution, and WHEREAS, the County of Oakland is desirous of establishing such a fund, and WHEREAS, the County of Oakland Community Development Division has operated a Home Improvement Program since 1976 to provide rehabilitation financing for privately owned, single family residential structures, and WHEREAS, 24 CFR 570.513(b), as amended, requires that a written agreement be entered into between the Community Development Block Grant recipient and the financial institution wherein the fund is to be established. NOW, THEREFORE, this Agreement is made as of this 28 day of 1987 by and between the County of Oakland, a Michigan Constitutiorfil Corporation, acting by and through its Community Development Division (herein referred to as the "County"), and First of America Bank, Oakland-Macomb, N.A., a National Bank Association of Detroit, Michigan (herein referred to as the "Bank") for a period of two (2) years. In consideration of the premises and undertakings herein set forth, the parties do hereby agree as follows: Purpose The purpose of this Agreement between the County and the Bank is to permit the County to draw funds from its Community Development Block Grant Letter of Credit in a single lump sum to establish a Home Rehabilitation Fund with the Bank for the purpose of financing the rehabilitation of privately owned, single family residential properties, as a part of the County's Community Development Block Grant (CDBG) Program. The Home Rehabilitation Fund may also serve as a depository for funds to be transferred as required to any additional rehabilitation accounts operated as part of the CDBG Program. Article I Definitions 1.01 "Home Improvement Program" shall mean the program wherein the County provides low interest installment and deferred payment loans to eligible low and moderate income households for single family home rehabilitation. 1.02 "Home Improvement Loan" - A County loan, installment or deferred made under terms specified by the County. 1.03 "County Note" shall mean a mortgage note payable to the order of County evidencing a borrower's obligation to the County on a Rome Improvement Loan. 1.04 -CDBG Funds" shall mean funds received by the County from the United States Department of Housing and Urban Development under its Community Development Block Grant Program. 1.05 "Home Rehabilitation Fund - shall mean the deposits established from the lump sum drawdown of CDBG funds budgeted for the County Home Improvement Program. Article II Establishing the Home Rehabilitation Fund 2.01 The County agrees to deposit with the Bank from time to time certain CDBG funds budgeted for the County Home Improvement Program and other CDBG funded residential rehabilitation programs, and the Bank agrees to accept these funds in an amount to be determined at the sole discretion of the County. 2.02 The funds deposited by the County pursuant to Section 2.01 of this Agreement shall be placed in one or more accounts which shall earn the eiDAI LA FL highest interest rate offered by the Bank to any of its customersAas DOPE elal'P6'',A determined by the size and maturity of such deposits as mutually agreed to by the Bank and the County. The principal and interest will be made available for the County's participation with the Bank in the Home Improvement Program and for CDBG funded residential rehabilitation programs as designated by the County. 2.03 The parties hereto acknowledge that the deposit of funds by the County pursuant to Section 2.01 of this Agreement is contingent upon the receipt of CDBG funds and the County reserves the right to delay deposit until the receipt of adequate funds from the United States Department of Housing and Urban Development (HUD). 2.04 The Home Rehabilitation Fund will be used to finance the County's Home Improvement and other residential rehabilitation programs pursuant to the County's approved Community Development Block Grant Program. Pursuant to 24 CFR 570.313 (c) (1) of the regulations governing lump-sum drawdowns, interest income on the Rehabilitation Fund shall be disbursed to Home Improvement Loan activities first. 2.05 Use of the deposited funds for residential property rehabilitation financing shall commence within forty-five (45) days of deposit. In the event that the use of deposited funds does not start, within the forty-five (45) day time limit, the County may be required by HUD to return all or part of the deposited funds not previously pledged or encumbered to the CDBG Letter of Credit. If that should occur, the Bank will no longer be required to continue in participation of this program other than those loans that have been made at the time of withdrawal. Article III Terms of Program 3.01 The County shall make deferred and installment rehabilitation loans to qualified low and moderate income owners of single-family, owner-occupied homes. Applicants shall be qualified and processed by the County pursuant to the County's Home Improvement Program guidelines as approved by U. S. Department of Housing and Urban Development. 3.02 Pursuant to 24 CFR 570.313 (i) (1) (iii), the Bank shall provide administrative services in support of the County"s Home Improvement Loans in accordance with the Servicing Agreement between the County and the Bank, attached hereto as "Attachment A". Article IV Duration of Agreement 4.01 This Agreement will apply to new loan activity for a period of two (2) years from the date of this Agreement. The responsibilities of the Bank and County with respect to loans made under this Agreement shall remain in effect until those loans have matured or until such time as the County's investment has been returned, whichever shall occur sooner. • 4.02 If for any cause the parties hereto shall violate any covenant, agreement, term or condition in this contract, the other parties shall thereupon have the right to terminate this Agreement by giving written notice of such termination, specifying the effective date thereof, at least thirty (30) days before the effective date of such termination and this Agreement shall terminate in all respects as if such were the date originally given for the expiration thereof. 4.03 In the event the County is required to terminate this Agreement pursuant to a directive from the federal government or pursuant to federal rules and regulations, the County shall be permitted to so terminate by giving notice in accordance with the terms of Section 10.01 of this Agreement. 4.04 At the termination of the two (2) year Agreement, all unobligated deposits of CDBC funds in the Rome Rehabilitation Fund will be returned at the County's responsibility to its Community Development Block Grant Letter of Credit unless the County is authorized by the Department of Housing and Urban Development to extend the Agreement for an additional period. Article V Compliance With Laws 5.01 The parties hereto agree to comply with all applicable laws, ordinances, and codes of the federal, state and local governments. It is understood that all loans will be made pursuant to good and sound banking practices but under no circumstances shall an applicant be discriminated against because of race, color, creed, handicap, sex or national origin. 5.02 It is hereby understood and agreed that the terms and conditions of this Agreement are subject to the provisions governing lump-sum drawdowns for property rehabilitation pursuant to 570.513 of the Department of Housing and Urban Development regulations on Community Development Block Grants, being 24 CFR, Part 570, attached as "Attachment B." Article VI Insurance 6.01 The parties hereto shall maintain at their expense during the term of this Agreement on behalf of all of their employees performing any of the activities hereunder the following insurance where applicable: a) Worker's Compensation insurance for Employees which meets Michigan's statutory requirements and Employer's Liability insurance with minimum limits of $100,000 each accident; b) Comprehensive general liability insurance with minimum limits of $1,000,000 combined single limit, each occurrence, for bodily Injury and property damage. Article VII Indemnification 7.01 The Bank agrees to save harmless the County against and from any and all liabilities, obligations, damages, penalties, claims, costs, charges and expenses which may be imposed upon, incurred by or asserted against the County by reason of any of the following occurring during the terms of this Agreement: a) Any negligent or tortious acts of the Bank or any of its personnel, employees, consultants or subcontractors; or b) Any failure of the Bank or any of its personnel, employees, consultants or subcontractors to perform its obligations either implied or expressed under this Agreement. Article VIII Fair Employment Practices 8.01 In accordance with the United States Constitution and all Federal legislation and regulations governing fair employment practices and equal employment opportunity, and including but not limited to the Civil Rights Act of 1964 (P.L. 88-352, 78 Stat. 252) and in accordance with the Michigan Constitution and all State laws and regulations governing fair employment practices and equal employment opportunity, including but not limited to the Michigan Civil Rights Act (P.A. 1976, No. 453) and the Michigan Handicappers' Civil Rights Act (P.A. 1976, No. 220) the Bank agrees that it will not discriminate against any person, employee, consultant or applicant for employment with respect to his or her hire, tenure, terms, conditions or privileges of employment because of his or her religion, race, color, national origin, age, sex, height, weight, marital status, handicap, sex or sexual orientation that is unrelated to the individual's ability to perform the duties of a particular job or position. 8.02 The Bank further agrees to take affirmative action to achieve reasonable representation of minority groups and women on their work force. Such affirmative action shall include, but not be limited to, the following areas: employment, promotion, demotion or transfer, recruiting or recruitment, advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training or education, Including apprenticeships. 8.03 Breach of the terms of this Article may be regarded as a material breach of the Agreement. The Bank hereby recognizes the right of the United States, the State of Michigan and the County to seek judicial enforcement of the foregoing covenants against discrimination against themselves or their subcontractors connected directly or indirectly with the performance of this Agreement. Notwithstanding anything herein to -4- the contrary, the provisions of this Article shall not be waived without the express consent of the appropriate enforcement agency. Article IX Amendment 9.01 The parties hereto may from time to time consider it in their hest interest to change, modify or extend a term, conditon or covennnt of this Agreement. Any such change, addition, deletions, extension or modification shall be incorporated in written amendments to this Agreement. Such amendments shall not invalidate this contract unless expressly stated therein. 9.02 No amendment to this Agreement shall be effective and binding upon the parties, unless it expressly makes reference to this contract, is in writing and is signed and acknowledged by duly authorized representatives of all parties hereto. Article X Notice 10.01 A notice, demand or other communication under this Agreement by a party to the other party hereto shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, except that the reports required by Article VI hereof may be by regular mail or may be hand delivered at the discretion of the Bank. 10.02 In the case of a notice, demand or communication to the Bank, such shall be addressed to it at the following address: David T. Harrison, President First of America Bank, Oakland-Macomb, N.A. 30 North Saginaw Street Pontiac, Michigan 48058 In the case of a notice, demand or communication to the County, such shall be addressed to it at the following address: Kenneth R. Patterson, Manager Oakland County Community Development Division 1200 N. Telegraph Road Pontiac, Michigan 48053 All notices shall be deemed effective on the date of mailing. The addresses to which notice is to be made may be changed at any time by any party by informing the other party of such change in writing. Article XI Assignment 11.01 No party hereto shall assign or encumber directly or indirectly any interest whatsoever in this Agreement, and shall not transfer any interest in the same without prior written approval of the other party. FIRST 0 OAK LA MERICA B $1.a. Attest: Attest: Article XII Remedies 12.01 Each party to this Agreement shall have the right to protect and enforce all rights available to it by suit in equity, action at law or by any other appropriate proceedings, whether for specific performance of any covenant contained in this Agreement, or damages, or other relief, or proceed to take any action authorized or permitted under applicable law or regulation. 12.02 Except as otherwise specifically set forth in this Agreement, all rights and remedies of the parties under this Agreement shall be cumulative. 12.03 The parties hereto agree to submit to the personal jurisdiction of any competent court in Oakland County, Michigan for any action brought against it arising out of this Agreement. Article XIII Miscellaneous 13.01 This Agreement constitutes the entire agreement between the parties and supersedes any prior or contemporaneous oral or written agreements, understandings or representatives. 13.02 This Agreement and all rights and obligations imposed hereunder shall be interpreted and construed in accordance with the laws of the State of Michigan. 13.03 If any provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such provision to a person or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 13,04 The captions and headings of this Agreement are inserted for convenience only, and shall not modify or affect the intent to operative paragraphs of this Agreement, and shall be disregarded in construction or interpretation thereof. 13.05 This Agreement shall bind and shall inure to the benefit of the parties hereto, their successors and assigns. 13.06 Each party to this Agreement hereby represents and warrants to the other party that it has full right, power and authority to enter into and perform this Agreement; that its execution and delivery of this Agreement have been duly authorized by all necessary action; and that this Agreement is valid, binding and enforceable UDOT1 approval by the County and the Bank. IN WITNESS THEREOF the Bank and County have executed this Agreement as of the date first written above. COUNTY OF OAKLAND By:v A ‘`.1 A 0 By: David T. Harrison Daniel T. Murphy Position: President and C.E.O. Date: Position: County Executive Date: Date: Date: Resolution # P71 7 June 11, 1987 this 11th day of Ju e 1 ' I. ALLEN 441PAWIL 9 87 Moved by Richard Kuhn supported by Ruel McPherson the resolution be adopted. AYES: Wilcox, Aaron, Calandro, Crake, Doyon, Gosling, Hobart, Jensen, Richard Kuhn, Susan Kuhn, Lanni, Luxon, Ruel McPherson, Moffitt, Nelson, Page, Perinoff, Pernick, Price, Rewold, Rowland, Skarritt. (22) NAYS: None. (0) A sufficient majority having voted therefor, the resolution was adopted. STATE OF MICHIGAN) COUNTY OF OAKLAND) 1, Lynn D. Allen, Clerk of the County of Oakland and having a seal, do hereby certify that I have compared the annexed copy of this Miscellaneous Resolution adopted by the Oakland County Board of Commissioners at their meeting held on June 11, 1987 with the orginial record thereof now remaining in my office, and that it is a true and correct transcript therefrom, and of the whole thereof, In Testimony Whereof, I have hereunto set my hand and affixed the seal of said County at Pontiac, Hchiean County Clerk/Register of Deeds