Cocoon House 4/19/2018 - Laserfiche WebLink

WHEREAS, the Agency will be the Borrower of City of Everett HOME funds, and the Agency will develop, own and operate the project in conformance with the terms and conditions of this Agreement; NOW, THEREFORE, in consideration of the mutual promises and agreements contained herein, the parties agree as follows: I. GENERAL AGREEMENT The Agency hereby agrees, for the purpose of providing affordable rental housing to Extremely Low Income households, to receive and utilize HOME funds in the amount Three Hundred Thousand Dollars ($300,000), for the purpose of acquisition and/or costs related to repayment of loans, development and new construction of that certain residential housing project referred to as the Colby Avenue Youth Center project and more fully described in Exhibit A hereto (hereinafter, the "Project'), which is incorporated herein by this reference, in accordance with the terms of the County's 2015-2019 Consolidated Plan, as amended, which Consolidated Plan is incorporated herein by this reference. Failure to comply with any of the terms and conditions of this Agreement may lead to suspension or termination of HOME funding to the Agency. A. Designation Contingent upon release of funds from HUD, the Agency expressly agrees to undertake, as a HOME Investment Program as a non-profit owner, the Colby Avenue Youth Center project hereto as the same is commonly referred to as a HOME Investment Partnerships Program (hereinafter "Program") Project within the HOME Investment Partnerships Act of 1990, as now or hereafter amended (hereinafter the "Act"). As a rental housing project, the Project must comply with the provisions of 24 CFR§92.252 Qualification as Affordable Rental Housing, and §92.206 Eligible Project Costs. The undertaking of the Project shall be in full accord with the Act, and all rules and regulations promulgated pursuant to the Act and the HOME Regulations, including the 2013 HOME Final Rules issued by HUD, and referenced in the Rules and Regulations in the Federal Register, Vol. 78, No. 142, July 24, 2013. The Agency agrees to comply fully with all applicable federal, state, and local laws, ordinances, and regulations in activities funded in whole or in part with funds provided through this Loan Agreement and in carrying out the Project described in Exhibit A and with all other terms of this Loan Agreement. For the duration of the HOME Compliance Period, (defined in Section I.G.1 herein) the property shall comply with the HOME Investment Program requirements. B. The Loan, Loan Terms; Project Budget 1. The Agency is hereby provided a forgivable loan in the amount of Three Hundred Thousand Dollars ($300,000), (the "Loan") for the full undertaking and performance of the Project. The loan shall bear interest at the rate of 3%, with a term of 40 years. Principal and Interest payments on the loan shall be deferred. PROVIDED, that the Agency has fully complied with the provisions of this Loan Agreement, the Loan shall be forgiven on June 1, 2059 (the "Loan Term') as specified in Section I. Subsection G. Loan Agreement Cocoon House Page 2 of 51