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Home My WebLink About32642 / 83-06July 21, 1983 (CARRIED PURPOSE: INITIATED BY: LOST LAID OVER ll 6 RESOLUTION WITHDRAWN ) APPROVE LUMP SUM DRAW-DOWN AGREEMENT BETWEEN CITY OF OSHKOSH AND THE HOUSING AUTHORITY DEPARTMENT OF COMM[JNITY DEVELOPMENT WHEREAS, Federal regulations prohibit municipalities from accruing interest on Community Development Block Grant funds, and WHL�REAS, the only exception to the above referenced regulations relate to funds earmarked for housing rehabilitation activities, and WHEREAS, municipalities may accrue interest on rehabilitation funds if an approved lump sum agreement is executed, and WHEREAS, the interest accrued must be rolled over into eligible housing rehabilitation activities, NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the proper City officials are hereby authorized and directed to enter into the attached agreement for managing funds obtained as a result of implementing the Lump Sum Draw -Down Agreement. SUBMITTED BY Q APPfiOVED � - 7 - y 198' HOUSING REHABILITATION ASSISTANCE PROGRAM ReSO1llt10T1�� '„UMF' SUN, i�FTK-;IOWN I�GR�:f:ME:N'T L3ETWEEN CITY OF OSHKOSH AND THE OSHKOSH HOUSING AUTHORITY WHEREAS, the City of Oshkosh, Wisconsir,, a municipal corporation, here- inafter referred to as "City", approved the use of 1983 Community Development Block Grant monies as funding for the Housing Fehabilitation Assistance Program, on March 03, 1983, and; WHEREAS, the amount allocated from the 1983 Communit}� Developrient Block Grant Program has been set at 5190,100.00 and; WHEREAS, the U.S. Department of Housing and Urban Developnient, herein- after referred to as "HUD", approved the proposed use of 1983 Community Devel- opment Block Grant fnnds on May 19, 198j _, and; WHEREAS, all necessary environmental clearances have been obtained from HUD on May 20, 1983 , and; l9HEREAS, the Oshkosh Citp� Council has directed the Oshkosh Housing Author- ity, 600 Merritt Avenue, Oshkosh, Wisconsin 59901, hereinafter referred to as "OHA", to administer the Housing Rehabilitation Assistance Program. NOW, THEREFORE, in consideration of the mutual covenants contained herein, both parties agree to a"LUmp Sum" draw-down oi the funds specified as follows: 1. The City will deposit into the Valley Bank of Oshkesh, 50 Pearl Avenue, Oshkosh, Wisconsin 54901, $ 108,009.00 0£ Community Development Block Grant funds. This amount will be made available to the OHA solely foz use as Rehabilitation Loans as approved under the Housing Rehabilitation Assistance Program Administrative Guide. 2. The OHA will also receive administrative funds of $ 10,330.41 from Community Development Block Giant funds for admir.istration of the program. 3. Once transferred, ReSabi;itation Loan Funds will be administered by the OHA under the supervision of the Director of Finance for the City of Oshkosh. a. OHA will adr�iniste: said f�nds under the auidelines of RHA 7475.1, Low-Rent Housing Financial Manager.�ent handbook, where applicable. b. Investments will be madc in securities permitted under RHA 7975.1 at a mar.imum attainable interest rate. c. A iinancial statement as to the status of the account will be submitted to the Direc[or o£ Finance each month. 4. Loans wil! be made until such time as the fundino committed by the City is exhaUSted, however, in no ever,t shall rehabilitation loans be made after one yeaz from the date of this aareement. Page 1 oi 3 - 7A - Resolution �k6 M�� 5. The OHA will not discriminate against any person, for reasons of race, religion, age, marital status, or sex. 6. The OHA agrees to allow for inspection of financial accounts and re- cords that pertain to this agreement by the Comptroller General of the Onited States, or his authorized representative, and the Director of Finance for the City. 7. All interest earned from the deposit of Rehabilitation funds will be credited to the account for additional rehabilitation of homes under the specified program. No interest will accr�e to the benefit of any other program or the City oi Oshkosh. All repayments irom the satisiaction of mortgages or income from any other source will also be credited to the account for the benefit of the program. 8. The Oshkosh Housing Authority agrees to disburse Rehabilitation funds only under the terms and conditions of the Administrative Guide of the Housing rehabilitation Assistance Program, June, 1980, as amended. Programs to be funded are: a. ADVOCAP Supported work Program - a deferred payment program with a maximum loan of $7,500.00. Rehabilitation work performed by ADVOCAP work crews. b. Municipal Deferred Payment Loan Program - a deferred payment program with a maximum loan of $12,000.00 for a single family home and $16,000.00 for a two-family dwelling. c. Critical Maintenance Grant Program - a grant program for emer- gency repairs. Maximum grant is limited to $2,000.00. 9. The City will transier funds from this account to the OHA under the signature of the Oshkosh City Manager and the signature of the Director of Finance for the City. 10. The OHA shall initiate all income verificatio�s as established by the Housing Rehabilitation Assistance Program and Flood Plain or Historical Pre- servation requirements as applicable. 11. This agreement may be terminated upon any of the following conditions: (a) All Rehabilitation Funds have been committed to Loans, or; (b) HUD has notified the City to return to the letter of credit those funds which have not been committed to Loans, or; (c) The City terminates the Housing Rehabilitation Assistance Program, or; (d) Upon Mutual agreement oi the City and the OHA. Terminatio❑ will be effected by writte❑ notice to the parties at least 30 days in advance of the termi�ation date. Page 2 of 2 � - .J • , Resolution ��6 12. Use of the deposited funds by the OHA for rehabilitation financing assistance, (e.g., first loan is made), must start within 45 days of the deposit. Should use of the deposited funds not start within 45 days, the City may be required by the U. S. Department oi Housing and Urban Development to return all or part of the deposited funds to the letter of credit. 13. All terms and conditions of the Agreement are subject to the provi- sions governing Lump Sum Draw-downs for property rehabilitation 570.513 of the HUD regulations on Community Development Block Grants, 24 CFR Part 570. Dated this day oi ,1983. ATTEST: Secretary ATTEST: City Clerk CHAIRMAN OSHKOSH HOUSING AUTHORITY City Manager CITY OF OSHKOSH Page 3 of 3 -7C- �' �-,, � �•�; � c* �, F-' �C .- �C C] % - N F' �; f-' N � '�F �. 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