2015/12/30 Council Agenda Packet

2 If a Rehabilitation Nonprofit Organization sells or otherwise transfers Rehabilitation Property (including without limitation transfer pursuant to trustee sale or foreclosure), at the closing of such sale or transfer the Subgrantee shall deliver to the City a payment equal to the amount of Rehabilitation Funds that the Rehabilitation Nonprofit Organization used to purchase that Rehabilitation Property, less any amounts of Rehabilitation Funds attributable to that Rehabilitation Property that the Subgrantee has already repaid to the City. The Subgrantee acknowledges that it is obligated to make the payment(s) required in the preceding sentence regardless of whether the Rehabilitation Nonprofit Organization makes any repayment of Rehabilitation Funds to the Subgrantee. A Rehabilitation Nonprofit Organization may retain any revenue/program income it receives from renting a Rehabililtation Property so long as the rental income is treated as additional NSP funds that may only be used to benefit NSP-funded Rehabilitation Properties purchased under this Agreement. The rental income shall also be subject to all applicable requirements/regulations governing use of NSP funds. The Rehabilitation Nonprofit Organization shall provide the Subrecipient, and the Subrecipient shall provide the City, an annual report detailing rental revenue generated from the Rehabilitation Properties and maintenance and operation costs of renting those properties. This report shall be filed regardless of whether there is net revenue/program income generated by the Rehabilitation Properties. This report shall be due on,January 22"d, or if that falls on a weekend or holiday, the next working day, of each year. Homeowner Assistance. The Subgrantee shall provide funds to one or more nonprofit organizations that will underwrite loans, including without limitation down-payment assistance loans, to help eligible persons recover approximately'three (3) foreclosed properties. These funds are referred to this Agreement as "Assistance Funds." Each of these nonprofit organizations is referred to in this Agreement as a "Homeowner Assistance Nonprofit Organization." Each loan of Assistance Funds provided to an eligible person by a Homeowner Assistance Nonprofit Organization is referred to in this Agreement as a "Homeowner Assistance Loan." Each of the persons to whom the Homeowner Assistance Nonprofit Organization provides a Homeowner Assistance Loan is referred to in this Agreement as an "Assisted Borrower." Each of the foreclosed properties is referred to in this Agreement as an "Assisted Property." The Subgrantee shall not deliver any Assistance Funds to a Homeowner Assistance Nonprofit Organization unless the City has approved the Homeowner Assistance Nonprofit Organization and has approved the contract between the Subgrantee and the Homeowner Assistance Nonprofit Organization. Each contract between the Subgrantee and a Homeowner Assistance Nonprofit Organization must include at least the following items, all of which must be acceptable the City: (1) the form of promissory note to be executed by the Homeowner Assistance Nonprofit Organization, obligating the Homeowner Assistance Nonprofit Organization to repay the Assistance Funds to the Subgrantee; (2) the form of the loan agreement to be signed the Assisted Borrower, (3) the form of the promissory note to be signed by the Assisted Borrower, (4)the form of the deed of trust to be signed by the Assisted Borrower and recorded against the Assisted Property, (5) the form of the covenant, if any, to be recorded against the Assisted Property, (6) a requirement that the Homeowner Assistance Nonprofit Organization record the deed of trust and covenant at the closing of the Assistance Loan; (7) a provision stating the requirements for the priority position of the deed of trust and covenant; (8) a provision incorporating the CTED Grant Agreement and this Agreement, and requiring that the Homeowner Assistance Nonprofit Organization fully cooperate in assisting the A-2 9