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HomeMy WebLinkAboutState of California - Begin Program Reuse Account and Loan Servicing Monitoring Projgram - Agreement No. 09-BEING-6554BEGIN PROGRAM REUSE ACCOUNT and LOAN SERVICING MONITORING AGREEMENT Standard Agreement Number 09- BEGIN -6554 THIS MONITORING AGREEMENT (hereinafter the "Agreement "), dated March 18, 2013, for reference purposes only, is made and entered into by and between the Department of Housing and Community Development, a public agency of the State of California (the "Department "), and the City of Gilroy, a Local Public Agency (the "Recipient "). A. The Department and Recipient have entered into Standard Agreement No. 09- BEGIN -6554, dated September 2, 2010, (the "Agreement "), whereby the Department has made a conditional commitment of $1,372,800.00 (the "Commitment") from the Department's BEGIN Program (the "Program ") to assist Recipient in the operation of a mortgage assistance program. The Program is subject to the requirements of Health and Safety Code Section 50860 et seq. (the "BEGIN Program Statutes ") and except as provided in the BEGIN Program Statutes, the CalHome requirements of Health and Safety Code Section 50650 et seq. (the "CalHome Statutes ") and the CalHome Regulations at California Code of Regulations, Title 25, Section 7715 et seq. (the "CalHome Regulations ") and is further governed by regulations issued by the Department as further described in the Standard Agreement (the "Agreement "). B. In executing the Standard Agreement, Recipient has agreed to abide by the provisions of the BEGIN Guidelines and the CalHome Statutes and the Regulations. The Guidelines provide that all revenue generated from use of BEGIN funds, including loan repayments if any, are to be deposited into a local reuse account and used as provided for in the Guidelines and as described in a local reuse account plan approved by the Department. The Standard Agreement contains additional requirements pertaining to the reuse account and plan, and specifically requires Recipient to enter into this Agreement. The Department has reviewed and approved the Reuse Account Plan and Loan Servicing Plan submitted to the Department and copies are attached. Any changes to either of these plans must be submitted to the Department for review and approval prior to implementation. C. In executing the Standard Agreement, Recipient also has agreed to service loans made with Program funds in accordance with a loan- servicing plan approved by the Department. D. The purpose of this Agreement is to set forth Recipient's obligations with respect to long -term loan servicing and the administration of the local reuse account. A separate agreement is necessary because Recipient's obligations for loan servicing and administration of its local reuse account extend beyond the term of the Standard Agreement. Page 1 of 3 Monitoring Agreement 09- BEGIN -6554. City of Gilroy March 18, 2013 NOW THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. Recipient's execution of this Agreement is given in further consideration for receipt of the Commitment. 2. The term of this Agreement shall commence on the Date of the Standard Agreement, September 2, 2010, and remain in full force and effect for a period of twenty (20) years unless terminated earlier by the Department. 3. Recipient shall administer its local reuse account in conformance with the reuse account plan approved by the Department. The reuse account plan approved by the Department shall not be modified or amended except by the express written consent of the Recipient and Department. 4. Recipient shall monitor and service loans made with BEGIN funds or funds from the local reuse account (hereinafter collectively referred to as "BEGIN loans ") in conformance with the loan servicing plan approved by the Department. The loan servicing plan approved by the department shall not be modified or amended except by the express written consent of the Recipient and Department. 5. Recipient shall permit the Department, its employees, agents, or designees, upon reasonable notice and at reasonable times, to enter Recipient's premises and inspect any and all records pertaining to the local reuse account and Recipient's servicing of BEGIN loans. The Department may request any other information that it deems necessary to monitor compliance with requirements set forth in this Agreement. Recipient shall promptly provide such information. 6. Recipient shall file an annual report with the Department for the period July 1 through June 30. This report shall be submitted no later than July 31 of each year. The report shall provide information on the dollar amount of deposits to and withdrawals from the local reuse account, and a description of the uses of funds withdrawn, including but not limited to number and dollar amounts of loans made, expenses of providing homebuyer education, and dollar amount of fees for loan servicing, loan processing or loan activity. The annual report shall also provide information on Recipient's loan servicing activities during the year including, but not limited to costs of loan servicing, loans in default, remedial actions undertaken, foreclosures, bankruptcies, etc. 7. In the event of a breach or violation of the provisions of this Agreement, the Department may give written notice to the Recipient thereof by certified mail or any express delivery service with a delivery receipt addressed to the Recipient at the address stated in this Agreement. If the breach or violation is not cured to the satisfaction of the Department within the time period specified in the notice, which shall not be fewer than 30 days, the Department may declare a default and may seek legal remedies including specific performance of this Agreement, declaratory, and /or injunctive relief, or other remedies as may be available at law or equity. Page 2 of 3 Monitoring Agreement 09- BEGIN -6554 City of Gilroy March 18, 2013 8. Recipient agrees and acknowledges that failure to cure a violation to the satisfaction of the Department within the time allotted shall constitute grounds for denial of eligibility for future BEGIN funding due to lack of organizational capacity, and shall constitute grounds under any other program administered by the Department for making a determination that the Recipient lacks the capacity to administer the program funds being applied for. In the event that the breach or violation involves charges to individual homebuyers in excess of those permitted under the Standard Agreement or Regulations, the Department may demand, and seek as an additional remedy, the return of such excess charges to the affected households. 10. The remedies of the Department hereunder are cumulative, and the exercise of one or more of such remedies shall not be deemed an election of remedies and shall not preclude the exercise by the Department of any one or more of its other remedies. In witness heretofore, the parties hereby execute and enter into this BEGIN Program Reuse Account and Loan Servicing Monitoring Agreement as of the date set forth above and agree to be bound hereby: THE DEPARTMENT Department of Housing and Community Development, a public agency of the State of California By: A� T Coral Gai s Progra Manager BEGIN Program P.O. Box 952054 Sacramento. CA 94252 -2054 Attachments: Loan Servicing Plan Reuse Account Plan Page 3 of 3 Monitoring Agreement 09- BEGIN -6554 City of Gilroy March 18, 2013 In RECIPIENT City of Gilroy, a local public agency Thomas J. Hagland City Administrator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 STATF OF CAI IFORNIA -BUSINESS TRANSPORTATION AND HOLISM AGENCY EDMUND G RROWN IR COVPrnOr DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF FINANCIAL ASSISTANCE 1800 Third Street, Suite 390.2 P. O. Box 952054 , "'� 1 •• Sacramento, CA 94252 -2054 (916) 322 -1560 FAX (916) 323 -6016 - •' March 27, 2013 Mr. Thomas J. Hagland, City Administrator City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Dear Mr. Hagland: RE: Contract No. 09- BEGIN -6554 Alexander Place Project ECEI V G APR 01 2013 BY: Please find enclosed your original, fully executed Monitoring Agreement for the above referenced contract. Your agency has fulfilled its' "Pre- disbursement Conditions" and can now submit draw requests when needed. As this is a twenty -year Monitoring Agreement, it is recommended that you keep it in a secure place. If you have any questions, please contact Arturo Rodriguez at (916) 327 -8889 or me at (916) 327 -3632. Sincerely, Coral ines BEGIN Program Manager Enclosure STATE OF CALIFORNIA STANDARD AGREEMENT STD 213A (Rev 06 /03) - X CHECK HERE IF ADDITIONAL PAGES ARE ATTACHED i. CONTRACTOR'S COPY 2 PAGES STATE AGENCY'S NAME. DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTSACTORS NAME City of Gilroy 2 The term of this 09/02/2010 through 06/30/2014 Agreement is: 3 ,The maximum amount of this $1,372,800.00 - (Am. 1 increased the contract amount by $0.00 ) Agreement after this amendment Is. _. -.. 4, The parties mutually agree to this amendment as follows. All actions noted below are by this reference made a part of the Agreement and incorporated herein: Item No. 2, above "The term of this Agreement is 09/02/2010 through 06/30/2013" is hereby deleted and replaced with a new Item No. 2, 'The term of this Agreement is 09/02/2010 through 06/30/2014." Exhibit A. Authority, Purpose and Scope of Work is hereby deleted in its entirety and replaced with a new Exhibit A., Authority, Purpose and Scope of Work (Rev. 02113) attached hereto and by this reference made a part thereof. All other terms and conditions shall remain the same. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto. CONTRACTOR CONTRACTOR'S NAME (if other than an individual, state whether a corporation, partnership,etc) City of Gilroy DATE S �.r� D�� � not type) 7351 Rosanna Street, Gilroy, CA 95020 STATE OF CALIFORNIA AGENCYNAME Department of Housing and Community Development fIV ldMFnr 4 onaWrel Cathy Parr, Contracts Manager, Business & Contract Services Branch 1800 Third Street, Room 350, Sacramento, CA 95811 California Department of General Service Use Only MAR 2 9 2013 Exempt per.SCM 4.04.A.3 (DGS Memo dated 6/12/81)