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Deschutes County Board of Commissioner s
1300 NW Wall St., Suite 200, Bend, OR 97701-196)
(541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of May 13, 2009
Please see directions for completing this document on the next page.
DATE: May 12, 2009
FROM: Judith Ure Administrative Services 541- 330 -4627
TITLE OF AGENDA ITEM:
Consideration of Signature on Document No. 2009 -240 Grant Agreement for Secure Residential
Treatment Facility.
PUBLIC HEARING ON THIS DATE? No.
BACKGROUND AND POLICY IMPLICATIONS:
The State of Oregon, acting by and through its Department of Human Services, Addictions and Mental
Health Division (AMH), has agreed to provide funds in the amount of $750,000 to assist with
construction of the Deschutes County Recovery Center that will provide housing for 16 persons with
serious mental illness. The attached grant agreement specifies the terms of this award and is a
necessary subsequent step to finalize previously signed grant award letters for the same project
(included as exhibit b to the agreement document). The grant agreement must be executed as a final
step to ensure that funds will be released to the County during the current fiscal year.
FISCAL IMPLICATIONS:
$750,000 in revenue will be received by Deschutes County and the project has been included in thi:
fiscal year 2009 -10 budget.
RECOMMENDATION & ACTION REQUESTED:
Approve signature of Board Chair on Document No. 2009 -240 on behalf of the Deschutes County
Board of Commissioners.
ATTENDANCE: Judith Ure
DISTRIBUTION OF DOCUMENTS:
Please return signed originals to Judith Ure as soon as available.
DESCHUTES COUNTY DOCUMENT SUMMARY
(NOTE: This form is required to be submitted with ALL contracts and other agreements, regardless of whether the document is to be
on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board
agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to
the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel, the
County Administrator or the Commissioners. In addition to submitting this form with your documents, please submit this form
electronically to the Board Secretary.)
Date:
May 7, 2009
Please complete all sections above the Official Review line.
Department:
Contractor /Supplier /Consultant Name:
Contractor Contact:
5911
Karen Knight
Type of Document: Grant Agreement
Administrative Services
State of Oregon / AMH
Contractor Phone #:
503 -945-
Goods and /or Services: Agreement to provide $750,000 for secure residential
treatment center.
Background & History: The State of Oregon, acting by and through its Department
of Human Services, Addictions and Mental Health Division (AMH), has agreed to
provide funds in the amount of $750,000 to assist with construction of the Deschutes
County Recovery Center that will provide housing for 16 persons with serious mental
illness. The attached grant agreement specifies the terms of this award and is a
necessary subsequent step to finalize previously signed grant award letters for the
same project (included as exhibit b to the agreement document). The grant agreement
must be executed as a final step to ensure that funds will be released to the County
during the current fiscal year.
Agreement Starting Date:
2010
(April 29, 2009
Annual Value or Total Payment:
$750,000
Ending Date:
❑ Insurance Certificate Received (check box)
Insurance Expiration Date:
August 31,
Check all that apply:
❑ RFP, Solicitation or Bid Process
❑ Informal quotes ( <$150K)
❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37)
Funding Source: (Included in current budget? ® Yes n No
If No, has budget amendment been submitted? n Yes ❑ No
Is this a Grant Agreement providing revenue to the County? ® Yes f l No
5/8/2009
Special conditions attached to this grant: All conditions related to the grant are
described in detail in the agreement document.
Deadlines for reporting to the grantor:
month of the grant period.
Brief progress reports will be required each
If a new FTE will be hired with grant funds, confirm that Personnel has been notified that
it is a grant- funded position so that this will be noted in the offer letter: ❑ Yes ❑ No
Contact information for the person responsible for grant compliance: Name: Susan
Ross & Scott Johnson
Phone #: 541 - 383 -6713 & 541 - 322 -7502
Departmental Contact and Title: Judith Ure Phone #: 541-
330 -4627
Department Director Approval:
Signatu e
,s° ajo
Date
Distribution of Document: Who gets the original document and /or copies after it has
been signed? Include complete information if the document is to be mailed.
Please return signed documents to Judith Ure.
Official Review:
County Signature Required (check one): I BOCC ❑ Department Director (if <$25K)
❑ Administrator -(if > 25K but <$150K; if >$150K, BOCC Order No.
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Legal Review
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ORIGINAL
Housing Development Grant Agreement
This Housing Development Grant Agreement (this "Agreement ") is entered
into by and between the State of Oregon, acting by and through its Department of
Human Services, Addictions and Mental Health Division ( "Grantor ") and
Deschutes County, a Political Subdivision of the State of Oregon ( "Grantee "), on
this 29th day of April 2009.
Recitals
A. Since 1989, Grantor has awarded funds to assist in the development of
community housing for people with serious mental illness.
B. ORS 426.490 to 426.500, 426.502 to 426.508 and 430.630 provide for the
expansion of community residential services for people with chronic mental
illness and other mental and emotional disorders as defined in ORS 426.502
and OAR 309 - 036 -0105.
C. ORS 409.110(2) authorizes Grantor to make grants to local units of government
from funds appropriated by the Legislative Assembly to carry out the
department's responsibilities.
D. Grantor has conditionally committed Housing Development Grant funds to
Grantee to support the development of appropriate community housing on the
property and in the manner described in this Agreement.
Agreement
NOW, THEREFORE, for good and sufficient consideration including the
terms and conditions herein, the parties agree as follows:
1. Description of Property. The legal description of the property being acquired
and improved by Grantee for use as community housing pursuant to this
Agreement is described in Exhibit A, and made a part hereof by reference. The
property and all improvements, now existing or hereafter developed are herein
called the "Property ".
2. Housing Development Grant. Grantor will provide Grantee with a Housing
Development Grant in an amount not to exceed Seven Hundred Fifty Thousand
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 1 of 41
(DOJ approval: 04/24/09)
and No /100 Dollars * ** ($750,000.00) (the "Grant "). Grantee will use the Grant
only for the approved purposes described in the Grant Award letters, dated
August 15, 2008 and April 3, 2009; copies of which is attached hereto and
incorporated herein as Exhibit B. Grantee further agrees to operate the Property
in accordance with the requirements of Section 4 below.
If Grantee does not use the Property as required by the previous paragraph, it
shall be obligated to repay all or some of the Grant according to the terms of a
Housing Development Grant Promissory Note, in substantially the form attached
hereto as Exhibit C ( "Housing Development Note" or "Note "). If Grantor
believes that Grantee is not operating the Property as required by the previous
paragraph, it shall so give notice to Grantee. Grantee shall be given a reasonable
opportunity to demonstrate that it is, in fact, complying with said requirements, or
to cure any defects. However, if within 60 days of such Notice, Grantor does not
concur that there are no defects, or finds that the defects have not been cured,
Grantor may demand that repayment be made pursuant to the terms of the
Housing Development Note. As security for Grantee's obligations hereunder,
Grantee shall deliver to Grantor at Closing a fully executed Housing
Development Note. The Housing Development Note shall bear interest as
described in the Note.
If for any reason the original signed Housing Development Note is lost or
misplaced, the obligation evidenced by the Housing Development Note shall
nonetheless be due and payable according to its terms, upon Grantor's
certification that the Housing Development Note has been lost or misplaced.
The Housing Development Note shall be secured by a Trust Deed with
Assignment of Rents (the "Trust Deed" or "Deed "), in substantially the form
attached hereto as Exhibit D.
3. Restrictive Use of Grant for Establishing Community Housing. The Grant is
being made upon the express condition that Grantee uses the funding for the
purpose of establishing community housing acceptable to Grantor on the Property
in a timely manner. In particular, Grantee shall use the Grant for the acquisition
and improvement of the Property in accordance with plans approved by Grantor
per Section 5 below, no later than 60 (Sixty) days after Closing. In addition, the
Grant is conditioned on occupancy of the community housing occurring no later
than August 31, 2010.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 2 of 41
(DOJ approval: 04/24/09)
4. Use. After the Property is acquired and improved, Grantee must use the Property
for the purpose of providing community housing for persons with mental illness.
Specifically, Grantee and all subsequent owners must operate the Property in
accordance with the Service Plan and Management Plan attached hereto and
incorporated herein as Exhibits F and G. In order to confirm compliance with use
requirements, Grantor may inspect the Property upon reasonable notice as it
determines appropriate. Grantor also may inspect and copy any and all Property
records.
It is contemplated that the Service Plan and Management Plan will need to be
modified, from time to time, in the future. Grantee and all subsequent owners
shall consult with Grantor prior to jointly modifying a Service Plan or
Management Plan. All such modifications must be signed in writing by the
parties to be effective. Operating the Property in conformance with a modified
Service Plan or Management Plan shall not constitute a violation of this Section,
provided Grantor has approved the modified plan in writing, which approval shall
not be unreasonably withheld.
The obligations contained in this Section 4 continue to apply to the Grantee and
the Property. Grantee, nor its successors or assigns, may not convey, transfer or
lease the Property to any party, unless prior to such conveyance, transfer or lease:
A. Such transfer has been approved by Grantor in writing; and
B. The transferee assumes all the obligations of Grantee under this
Agreement or the Grantee satisfies the terms of the Housing Development
Note.
5. Conditions of Grantor. Grantor's obligation to award the Grant is conditioned
on the following occurring on or before Closing:
A. The Grantee satisfying all of the conditions specified in the award letters
dated August 15, 2008 and April 3, 2009 as described in Exhibit B.
B. The Grantee notifying Grantor, in writing, of changes (if any) to the
acquisition, improvement and use of the Property as outlined in Sections
3 and 4. Grantor has approved, in writing, the changes (if any) to the:
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 3 of 41
(DOJ approval: 04/24/09)
1 Specifications for Improvements to be built on the Property,
attached hereto as Exhibit E; and
2. Service Plan, attached hereto as Exhibit F; and
3. Management Plan, attached hereto as Exhibit G.
C. The willingness of a Title Company acceptable to Grantor to issue to
Grantor at Closing a Lender's policy of title insurance, insuring title to
the Property as vested in Grantee, and insuring Grantor's Trust Deed as a
lien on the Property, subject to no exceptions other than those acceptable
to Grantor.
6. Closing. The Closing hereunder (the "Closing ") shall occur as soon as
reasonably feasible after satisfaction of the conditions described in Section 5.
Unless the parties agree otherwise in writing, the Closing shall occur no later than
June 30, 2009. Closing shall occur via escrow, with an Escrow Agent acceptable
to the parties.
7. Grantee's Closing Documents. At or before Closing, Grantee shall deliver to
the Escrow Agent, the following documents:
A. A duly executed Housing Development Note, in substantially the form
attached hereto as Exhibit C; and
B. A duly executed and acknowledged Trust Deed, in substantially the
form attached hereto as Exhibit D; and
C. Sufficient funds to pay all closing costs and title insurance premiums.
8. Assignment of Grantor's Rights. The Note and all rights of Grantor hereunder
shall be assignable, without any further action required, to any successor State or
local agency.
9. Default. If Grantee shall default under any obligation contained herein or in the
underlying Note or Trust Deed, representative copies of which are attached, or
any other documents that may be required by Grantor, Grantor may exercise any
remedy available at law and equity. The parties expressly acknowledge that any
failure by Grantee to use the Grant for the purposes of establishing community
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 4 of 41
(DOJ approval: 04/24/09)
VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A
LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS
92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR
PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR
STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF
NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300,
195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER
424, OREGON LAWS 2007.
IN WITNESS WHEREOF, the parties agree to and execute this Agreement
effective as of the date set forth above.
Grantor: State of Oregon, acting by and through its Depai tinent of Human
Services, Addictions and Mental Health Division
500 Summer Street NE, E -86
Salem, OR 97301 -1118
By: Date:
Len Ray, L.C.S.W., B.C.D.
Administrator, Adult Mental Health Services
Grantee: Deschutes County, a Political Subdivision of the State of Oregon
1300 NW Wall Street
Bend, OR 97701
By: Date:
Tammy Baney, Chair
Deschutes County Board of Commissioners
LEGAL COUNSEL
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 7of41
(DOJ approval: 04/24/09)
Exhibit A
Legal Description of Property
A tract of real property situated in the Southeast quarter of Section 17, Township 17
South, Range 12 East, of the Willamette Meridian, in the City of Bend, Deschutes
County, Oregon, being a portion of those tracts described in that certain Deed
recorded as Document No. 92- 14832, and that tract described as Parcel 1 and Parcel 2
in that certain Deed recorded as Document No. 96- 02923, Deschutes County Deed
Records, being more particularly described as follows:
Beginning at the east quarter corner of said Section 17; thence coincident with the
East line of said Section 17, South 00° 11' 45" West, 1322.14 feet to the Northeast
corner of the Southeast quarter of the Southeast quarter of said Section 17; thence
coincident with the North line of said Southeast quarter of the Southeast quarter of
said Section 17, North 89° 52' 25" West, 628.46 feet; thence leaving said North line,
North 00° 00' 00" East, 30.07 feet to a point on the North right -of -way line of Poe
Sholes Drive, also being the True Point of Beginning of the herein described tract;
thence continuing North 00° 00' 00" East, 192.15 feet; thence South 89° 56' 31" East,
191.57 feet; thence South 00° 18' 35" West, 46.20 feet; thence South 76° 45' 17"
East, 27.50 feet to a point on the North line of said Parcel 1; thence coincident with
the North line of said Parcel 1, South 89° 52' 25" East, 72.50 feet; thence leaving the
North line of said Parcel 1, South 04° 52' 13" East, 51.91 feet to a point on the North
right -of -way line of Poe Sholes Drive, also being a point on the 330.00 foot radius
curve, the radius point of which bears South 05° 36' 47" East, thence coincident with
said North right -of -way line and said 330.00 foot radius curve left through a central
angle of 26° 02' 10 ", an arc distance of 149.96 feet [long chord of which bears South
71° 22' 09" West, 148.67 feet] to a point of reverse curvature with a 270.00 foot
radius curve right; thence coincident with said North right -of -way line and said
270.00 foot radius curve right through a central angle of 30° 50' 07 ", an arc distance
of 145.31 feet [the long chord of which bears South 73° 46' 07" West, 143.56 feet] to
a point of tangency; thence coincident with said North right -of -way line, North 89°
50' 57" West, 16.28 feet to a True Point of Beginning.
Containing 39,511 square feet, more or less.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 8 of 41
(DOJ approval: 04/24/09)
Exhibit B
Housing Development Grant Approval Letters
Attached award letters dated August 15, 2008 and April 3, 2009
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 9 of 41
(DOJ approval: 04/24/09)
Oregon
Theodore R. Kulongoski, Govemor
August 15, 2008
Dennis R. Luke, Board Chair
Deschutes County Board of Commissioners
1300 NW Wall Street
Bend OR 97701
Department of Human Services
Addictions and Mental Health Division
500 Summer Street NE E86
Salem, OR 97301 -1118
Voice 503 -945 -5763
Fax 503- 378 -8467
Re: Approval of AMH Housing Development Award for Deschutes County
Recovery Center
Dear Mr. Luke:
I am pleased to inform you that the Addictions and Mental Health Division (AMH)
has conditionally approved a grant award in the amount of $675,000.00 for the
Deschutes County Recovery Center project located in Deschutes County. The funds
are for the development of a 16 bed SRTF for persons with serious mental illness.
It is important to note that the funds cannot be used to refund or reimburse
any expenses or costs that occurred prior to the date of this award letter. All
conditions listed below must be met before your award is committed.
Please respond in writing to the following conditions to obtain final approval of the
award.
1. Documentation Requirements.
a. Please provide a copy of the signed resolution adopted by the Deschutes
County Board of Commissioners from the August 4, 2008 meeting
authorizing acceptance of the award, establishment of the proposed
housing project, and listing officials who are authorized to execute
documents.
If you need this letter in altemate format, please call 503 -945 -5763 (Voice) or 800 - 375 -2863 (TTY)
'Assisting People to Become Independent, Healthy and Safe"
An Equal Opportunity Employer DC A88846448
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 10 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
August 15, 2008
Page 2 of 6
2. Resident Selection. Please confirm that Deschutes County will be working
with PSRB and ECMU representatives to identify how residents will be
selected for this shared this project.
3. Rent Affordability. Please confirm the amount of rent to be charged and how
rent will be affordable for residents on SSI incomes.
4. AMH Licensing Approval. The award is subject to confirmation from an
AMH Residential Licensing Specialist that the facility meets licensing
criteria (if applicable).
5. Occupancy. The Grant is conditioned on occupancy of the community
housing occurring no later than August 31, 2010. This deadline may require
modification prior to completion of the project Ifrequired, modifications
will be made in the form of an amendment to the Grant Agreement.
6. Insurance Requirement. AMH requires that insurance be maintained for the
life of the grant. Please complete and return the enclosed Designation of
Insurance form. This allows AMH to work directly with your insurance
agent to obtain the insurance requirements prior to funding (or project
completion).
7. Emergency Procedures. AMH recommends that you have emergency
procedures and evacuation plans made available to the staff to ensure resident
safety.
8. Visitability Requirements. You are encouraged to insure that the proposed
housing meets visitability standards. Visitability means that dwellings are
built to enable easy access by individuals with mobility impairments and are
adaptable to allow continued use by aging occupants. Please refer to Chapter
431, Oregon Laws 2003, for more information.
9. Monthly Progress Reports. AMH requires that you provide us with a brief
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Initial
Page 11 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
August 15, 2008
Page 3 of 6
monthly progress report on the development of your project. Please use the
attached report format. If you are already sending monthly progress
reports to other fenders, you may be able to substitute an alternative format.
This report is due to Jeff Puterbaugh on or before the 10`h of each month.
10. Annual Confirmation Reports. After completion and occupancy of your
project, AMH will conduct monitoring on an annual basis. As recipient of a
grant award you will be asked to complete a confirmation report to document
the continued use of the property for the agreed purpose.
11. Securing State's Interest. AMH requires that investments in real property
acquisition or improvement be secured. Execution of a Housing
Development Grant Agreement, Promissory Note and Trust Deed will be
required. The Trust Deed must be recorded and will remain a lien against the
property for a term of 30 years. These documents will be available for your
agency to review before closing.
12. Disbursement of Award. The grant award funds will be disbursed through an
escrow account. Please complete the enclosed Title Company Information
form regarding the title company that will be handling this transaction for
you. You will be responsible for any fees associated with this transaction.
Unless the parties agree otherwise in writing, the Closing shall occur no later
than August 31, 2010.
13. Project Schedule and Development Plan. Submit a revised project schedule
if there are changes. Please use the attached report format. Provide more
complete information on the development team members, and updates on any
revisions to your development plan as you progress with your project.
14. Use of funds. Grant awards must be used to support community housing
living quarters for people with chronic mental illness. Approval of your
award is based on the application that was received in response to the
solicitation dated August 7, 2008. Please inform us immediately, if the
housing project changes. This includes changes to your budget documents
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Initial
Page 12 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
August 15, 2008
Page 4 of 6
that exceed 10% for any budget category and any changes in funding
commitment amounts.
Oregon statues mandate that these funds be used by June 30, 2009. If
you will not use your award by this date, please inform us immediately.
Your award will be withdrawn for this biennium.
15. Project Development Budget. AMH requires a budget that identifies cost for
all proposed housing development activities (acquisitions and construction).
Identify sources and uses of resources that will finance the housing
development. Provide a brief status of each funding source (i.e. committed,
application pending, etc.). Sample forms are available upon request.
16. Award Acceptance. You must complete one of the following within 15 days
from the date of this award letter:
a. Initial each page, sign the letter and return the original indicating your
acceptance of the grant award and all the terms and conditions (a copy is
enclosed for your records); or
b. If you have concerns about any of the conditions or timelines contained in
this letter, contact me. 1 will discuss your concerns with the Community
Housing, Employments and Supports Manager and if necessary we may
schedule a conference with you to discuss your specific concerns.
Please send the requested information to:
Jeff Puterbaugh, Housing Development Coordinator
Addictions and Mental Health Division (AMH)
500 Summer Street NE, E -86
Salem, OR 97301 -1118
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Initial
Page 13 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
August 15, 2008
Page 5 of 6
I look forward to the successful completion of your housing project and appreciate
your efforts to increase housing opportunities for persons with psychiatric
disabilities. If you have questions or need further assistance, please call the
Housing Development Coordinator, Jeff Puterbaugh, at 503 -947 -5533 or e -mail
him at Jeffrey .L.Puterbaugh @state.or.us; or the Housing Investments Coordinator,
Karen Knight, at 503- 945 -5911 or e -mail her at Karen.knightna,state.or.us
Sincerely,
Madeline M. Olson
Deputy Assistant Director
JLP /co
Enclosures
cc: Scott Johnson, Director, Deschutes County Mental Health Depai tinent
Len Ray, Administrator, Adult Mental Health Services
Jeff Puterbaugh, AMH Housing Development Coordinator
Jay Yedziniak, AMR Housing and Homeless Services Manager
Karen Knight, Housing Investments Coordinator
Tony Guillen, PSRB Coordinator
Mike Hlebechuk, Residential Supports Coordinator
Jan Reid, Residential Supports Coordinator
AMH File
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 14 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
August 15, 2008
Page 6 of 6
AGREED TO AND ACCEPTED ON THE TERMS AND CONDITIONS SET
FORTH ABOVE:
Deschutes County Recovery Center
Bend, Deschutes County
Housing Development Award
CLG Fund - $379,687.00
PSRB CLG Fund - $295,313.00
Agency: Deschutes County
By:
Authorized Signer
Title: Board Chair - Deschutes County Board
of Commissioners
Print Name: Dennis R. Luke
LEGAL COUNSEL
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
ate
Initial
Page 15 of 41
(DOJ approval: 04/24/09)
regon
Theodore R. Kulongoski, Governor
April 3, 2009
Dennis R Luke, Board Chair
Deschutes County Board of Commissioners
1300 NW Wall Street
Bend, OR 97701
Department of Human Services
Addictions and Mental Health Division
500 Summer Street NE E86
Salem, OR 97301 -1118
Voice 503 -945 -5763
Fax 503- 378 -8467
Re: Approval of AMR Housing Development Award for Deschutes County
Recovery Center SRTF Building Additions
Dear Mr. Luke:
I am pleased to inform you that the Addictions and Mental Health Division (AMH)
has conditionally approved a grant award in the amount of $75,000 for the
Deschutes County Recovery Center project located in Deschutes County. The funds
are for the development of a 16 -bed SRTF for persons with serious mental illness.
This fmal award is in addition to the $675,000 previously awarded through grant
#126155.
It is important to note that the funds cannot be used to refund or reimburse
any expenses or costs that occurred prior to the date of this award letter. All
conditions listed below must be met before your award is committed.
All requirements as specified in the award letter dated August 18, 2008 are
applicable to this additional award. Including specifications listed below. Please
respond in writing to the following conditions to obtain final approval of the award.
1. Occupancy. The Grant is conditioned on occupancy of the community
housing occurring no later than August 31, 2010. This deadline may require
modification prior to project completion. If required, modifications will be
made in the form of an amendment to the Grant Agreement extending this
requirement as needed.
2. Insurance Requirement. AMH requires that insurance be maintained for the
life of the grant. Insurance required is:
oe - 200971,91
If you need this letter in alternate format, please call 503 - 945 -5763 (Voice) or 800 - 375 -2863 (TTY)
"Assisting People to Become Independent, Healthy and Safe"
An Equal Opportunity Employer HSS1601 (11/06) ',,
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 16 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 2 of 9
• Real Estate Hazard Insurance: coverage on all real estate that is
collateral for the grant in the amount of the full replacement cost (equal
to current appraisal).
• Liability Insurance: is required for all grants in an amount not less
than $1,000,000 with an insurance company satisfactory to AMH.
• Flood Insurance: (any portion of the collateral is located in a flood
hazard zone, flood insurance, or other appropriate special hazard
insurance, is required in the amounts equal to the lesser of the insurable
value of the property or the maximum limit of coverage available.
Please complete and return the enclosed Designation of Insurance form.
This allows AMH to work directly with your insurance agent to obtain the
insurance requirements prior to funding (or project completion).
3. Monthly Progress Reports. Provide AMH with a brief monthly progress
report on the development of your project. Please use the attached report
format. If you are already sending monthly progress reports to other funding
sources, you may be able to substitute an alternative format.
4. Annual Confirmation Reports. After completion and occupancy of your
project, AMH will conduct monitoring on an annual basis. As recipient of a
grant award you will be asked to complete a confirmation report to document
the continued use of the property for the agreed purpose.
5. Securing State's Interest. AMH requires that investments in real property
acquisition or improvement be secured. Execution of a Housing
Development Grant Agreement, Promissory Note and Trust Deed will be
required. The Trust Deed must be recorded and will remain a lien against the
property for a term of 30 years. These documents will be available for your
agency to review before closing.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 17 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 3 of 9
The equity value on the subject property must support all secured lien
positions. Any project that reflects a negative equity margin must be secured
by additional collateral approved by AMH.
6. Disbursement of Award. The grant award funds will be disbursed through an
escrow account. Please complete the enclosed Title Company Information
form regarding the title company that will be handling this transaction for
you. You will be responsible for any fees associated with this transaction.
Unless the parties agree otherwise in writing, the Closing shall occur no later
than June 30, 2009.
7. Use of funds. Grant awards must be used to support community housing
living quarters for people with chronic mental illness. Approval of your
award is based on the application that was received in response to the
solicitation dated August 7, 2008. Please inform us immediately, if the
housing project changes. This includes changes to your budget documents
that exceed 10% for any budget category and any changes in funding
commitment amounts.
Oregon statutes mandate that these funds be used by June 30, 2009. 11
you will not use your award by this date, please inform us immediately.
Your award will be withdrawn for this biennium.
8. Project Development Budget. Include a budget that identifies cost for all
proposed housing development activities (acquisitions and construction).
Identify sources and uses of resources that will fmancethe housing
development. Provide a brief status of each funding source (i.e. committed,
application pending, etc.). Sample forms are available upon request.
9. Award Acceptance. You must complete one of the following within 15 days
from the date of this award Letter:
a. Initial each page, sign the letter and return the original indicating your
acceptance of the grant award and all the terms and conditions (a copy is
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 18 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 4 of 9
enclosed for your records); or
b. If you have concerns about any of the conditions or timelines contained in
this letter, contact me. I will discuss your concerns with the Community
Housing, Employments and Supports Manager and if necessary we may
schedule a conference with you to discuss your specific concerns.
Please send the requested information to:
Tony Guillen, PSRB Coordinator
Addictions and Mental Health Division (AMH)
500 Summer Street NE, E -86
Salem, OR 97301-1118
I look forward to the successful completion of your housing project and appreciate
your efforts to increase housing opportunities for persons with psychiatric
disabilities. If you have questions or need further assistance, please call the PSRB
Coordinator, Tony Guillen, at 503- 947 -5534 or e -mail him at
anthony.guillen(a�state.or.us; or the Housing Investments Coordinator, Karen
Knight, at 503- 945 -5911 or e-mail her at karen.knightAstate.or.us.
Sincerely,
Len Ray, L.C.S.W., B.C.D.
Administrator, Adult Mental Health Services
TG /cc
Enclosures
cc: Tony Guillen, PSRB Coordinator
Jay Yedziniak, CHES Program Manager
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 19 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
4/3/09
Page 5of9
Koren Knight, l lousing Investments Coordinator
•AM:11 File
AGREED TO AND ACCEPTED ON THE TERMS AND CONDITIONS SET
F'ORT'H- ABOVE:
Deschutes County Recovery Center
Bend, Deschutes County
II°using Development Award
Cl X.307 Fund - $37, 00
PS1(13 CLG07F Lund - $37,500
Agency: De rinie ..ounty
By:
Dennis Luke -
4 —ZD'7e c 9
Title: Chair, Deschutes County Board of Commissioners
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 20 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center.
April 3, 2009
Page 6 of 9
PROPOSED PROJECT SCHEDULE
Project Name:
Date Schedule Developed:
ACTIVITY
PROPOSED
DATE
month/year *
REVISED
DATE
(month/year)*
COMPLETED
DATE
(month/ ear)*
Option/Contract executed
Site Acquisition
Zoning Approval
Site Analysis
Building Permits Sc Fees
Off -site Improvements
Plans Completed
Final Bids
Contractor Selected
^sue
:.
vL.avil-ngliv:,
_ . -- -i
_- °.:-- ._ —:-•�
c''- .;?�., rl
�cri'ci
's= s::m:.^-= 13!ie
. :yt�_;;a:c_..
¢i`F ___- _
._.._. '.c: .I:.r_.___ ......_..___....: y; _..:.. -_
a3I ss
-,_::.
R1O
Proposal
Firm Commitment
Proposal
Written Commitment
SYNDICATION AGREEMENT
CONSTRUCTION BEGINS
CONSTRUCTION COMPLETED
CERTIFICATE OF OCCUPANCY
LEASE UP COMPLETED
* Indicates completion by end of month.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 21 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 7 of 9
AMH HOUSING DEVELOPMENT MONTHLY PROGRESS REPORT
Report 4 Project Name:
Project Contact:
Contact Phone 4:
Reporting Dates From: To:
REPORTS ARE DUE BY THE 10TH OF EACH MONTH
Description of project development activities accomplished in this period: ,
2. Activities anticipated to be accomplished by next reporting period:
3. What percentage of construction activities have you completed to date?
4. Estimated date of completion of construction:
5. Estimated date of occupancy:
6. Any change in the Proposed Project Schedule since last report? Yes No
If "yes", submit an updated "Proposed Project Schedule."
7. Any change in the development of the project (i.e., number of units, target population, development team,
sources/uses, proposed rents, etc)? Yes No
If "yes", provide details about the change(s). An updated "Sources and Uses "form is required when the
budget is adjusted by 10°% or more for any sub -total or total.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 22 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 8 of 9
CERTIFICATION: A signature for regularly mailed reports or a typed name for e- mailed reports in the signature
space below certifies that the information contained in this report is true, correct and accurately reflects the progress
and status of the project.
Signature: Date:
Printed Name: Telephone #:
Mail, fax or e-mail this form to AMA:
Housing and Homeless Services Unit, AMH
Attn:
500 Summer Street NE, E86
Salem, Oregon 97301 -1118
Fax (503) 947 -5043
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 23 of 41
(DOJ approval: 04/24/09)
Housing Development Award Letter
Grantee: Deschutes County
Project: Deschutes County Recovery Center
April 3, 2009
Page 9 of 9
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 24 of 41
(DOJ approval: 04/24/09)
Exhibit C
Housing Development Grant Promissory Note
See attached sample document
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 25 of 41
(DOJ approval: 04/24/09)
SAMPLE DOCUMENT
HOUSING DEVELOPMENT GRANT
PROMISSORY NOTE
Date
Grant Award #
Note Amount
Interest Rate
Termination Date of Note
1. Promise to Pay
00.00%
FOR VALUE RECEIVED, and upon demand made as described below, the
undersigned, inert pylon Segal name, here ( "Payor "), unconditionally
promises to pay to the order of the State of Oregon, by and through its
Department of Human Services, Addictions and Mental Health Division
( "Payee "), in immediately available funds, the following amount:
➢ The total amount of all grant funds advanced by Payee to Payor pursuant to
Section 2 of that certain Housing Development Grant Agreement dated
/day / e r ( "the Agreement "); and
➢ Multiplied by a fraction, the numerator of which shall be 30 minus the
number of full years that have transpired between the date of this Note and
the date of Payee's demand, and the denominator of which is 30.
On the date of delivery of this Note, in
of grant funds have been advanced to Payor.
Payee may make demand in the event that, 60 or more days after giving notice
pursuant to Section 2 of the Agreement, Payee in good faith believes that the
property referenced in the Agreement is not being operated in conformance
with the terms of the Agreement. Proof of actual non - conforming operation
shall not be necessary to make demand.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 26 of 41
(DOJ approval: 04/24/09)
2. Interest
Interest shall accrue at the rate of — 0 — per cent per annum. All interest shall
be calculated on the basis of the actual days elapsed over a year of 365 days.
3. Payments
Payments due hereunder shall be made to Payee at its offices at:
State of Oregon, DHS
Attn: Housing Investments Coordinator
500 Summer St. NE, E -86
Salem, Oregon 97301
Or at such other place as the holder of this Promissory Note may designate in
writing from time to time.
4. Waiver of Presentment
Payor hereby waives presentment, demand, protest and notice of nonpayment,
and agrees that this Promissory Note shall bind it as maker and principal and
not as surety or endorser.
5. Attorneys Fees; Collection Costs
Payor agrees that if this Promissory Note is placed in the hands of an attorney
for collection after default, and whether suit be brought or not, it shall pay a
reasonable sum as attorneys' fees and all costs and expenses of suit and
preparation for suit. In addition, Payor agrees to pay all other costs of
collection incurred in the collection of this note and related costs.
6. Secured by Trust Deed
This Promissory Note is secured by a Trust Deed dated , on
property located at:
See legal description attached as Exhibit A, and made a part hereof by
reference.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 27 of 41
(DOJ approval: 04/24/09)
7. Identity of Payee
In the past, the name of the agency responsible for state government programs
for, and regulation of, citizens with mental illness has changed. If, in the
future, the name of the Payee changes, or if the responsibility for community
housing programs as defined in ORS 426.502 is transferred to a different
agency, the obligation of Payor hereunder shall become due to such successor
agency. A document signed by the director or manager of any such successor
agency, certifying that such responsibility has been transferred, shall be
sufficient evidence that the identified State agency is the proper party to whom
the obligation owed hereunder should be paid.
8. Governing Law
This Promissory Note shall be governed and construed in accordance with the
internal laws of the State of Oregon, without regard to principles or conflicts of
law.
DATED this
By:
Authorized Signer
Title:
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 28 of 41
(DOJ approval: 04/24/09)
Exhibit A
Legal Description of Property
SAMPLE DOCUMENT
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 29 of 41
(DOJ approval: 04/24/09)
Exhibit D
Trust Deed with Assignment of Rents
See attached sample document
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 30 of 41
(DOJ approval: 04/24/09)
After Recording Return to:
State of Oregon, DHS
Attn: Housing Coordinator
500 Summer Street NE, E -86
Salem, OR 97301 -1118
Grant Award #:
SAMPLE DOCUMENT
This space reserved for recorders use
TRUST DEED WITH ASSIGNMENT OF RENTS
THIS TRUST DEED, made this day day of month year, between insert grantorrfleal
name: °hex -e (hereinafter "Grantor"), in ert title``company'na a lier`e (hereinafter "Trustee "),
and the State of Oregon, acting by and through its Department of Human Services (DHS)
(hereinafter "Beneficiary ").
WITNESSETH:
Grantor irrevocably grants, bargains, sells and conveys to trustee in trust for the benefit and
security of Beneficiary, with power of sale and right of entry and possession, all of Grantor's
right, title and interest in and to the real property located in insert courtly ame County, Oregon,
described as follows ( "the Property "):
See legal description attached as Exhibit A, and made a part hereof by reference.
TOGETHER WITH all interests, estates, and rights that Grantor now has or may acquire
in (1) the Property; (2) any and all options, agreements, and contracts for the purchase or sale of all
or any part or parts of the Property or interests in the Property; (3) all easements, rights -of -way, and
rights used in connection with the Property or as a means of access to the Property; and (4) all
tenements, hereditaments, and appurtenances in any manner belonging, relating, or appertaining to
the Property; and
TOGETHER WITH all rights, titles, and interests of Grantor, now owned or hereafter
acquired, in and to any and all buildings and other improvements of every nature now or hereafter
located on the Property and all fixtures located on the Property or attached to, contained in, or used
in any such buildings and other improvements, and all appurtenances and additions to and
substitutions and replacements of the Property (all of the foregoing being collectively referred to
below as the "Improvements "); and
TOGETHER WITH all rights, title, and interest of Grantor in, to, and under all present
and future plans, specifications, and contracts relating to the design, construction, management, or
inspection of any Improvements; all rights, titles, and interests of Grantor in and to all present and
future licenses, permits, approvals, and agreements relating to the development, improvement,
division, or use of all or any portion of the Property or Improvements; and
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 31 of 41
(DOJ approval: 04/24/09)
TOGETHER WITH all rights of Grantor in and to any escrow or withhold agreements,
title insurance, surety bonds, warranties, management contracts, leasing and sales agreements, and
service contracts that are in any way relevant to the ownership, development, improvement,
management, sale, or use of all or any portion of the Property or any of the Improvements; and
TOGETHER WITH Grantor's rights under any payment, performance, or other bond in
connection with construction of any Improvements, and all construction materials, supplies, and
equipment delivered to the Property or intended to be used in connection with the construction of
any Improvements; and
TOGETHER WITH all rights, interests, and claims that Grantor now has or may acquire
with respect to any damage to or taking of all or any part of the Property or the Improvements,
including without limitation any and all proceeds of insurance in effect with respect to the
Improvements, any and all awards made for taking by eminent domain or by any proceeding or
purchase in lieu thereof, of the whole or any part of the Property or the Improvements, and any and
all awards resulting from any other damage to the Property or the Improvements, all of which are
assigned to Beneficiary, and, subject to the terms of this Trust Deed. Beneficiary is authorized to
collect and receive such proceeds, to give proper receipts and acquaintances for the proceeds, and to
apply them to the Obligations secured by this Trust Deed.
Section I.
Secured Obligations
This Trust Deed secures the following obligations, collectively referred to as "the Obligations:"
A. Grantor's obligations as Maker of that certain Housing Development Promissory Note
4ax, with Beneficiary as Payee, in the maximum
rd a nountry * „ xxx.xxx,100) which terminates
(the "Note ") dated
principal amount of AM'
on birth /clad /year; and
B. Grantor's obligations under the Housing Development Grant Agreement (the
"Agreement "), dated mouth /day /yea -
Unless otherwise agreed in writing by Beneficiary, the Note is due and payable in full upon sale
or transfer of the property or when the Grantor ceases to use the property exclusively as
community housing, in accordance with the terms of the Agreement.
Section II.
Grantor's Obligations
To protect the security of this Trust Deed, Grantor agrees to the following terms and conditions:
1. Grantor shall protect, preserve and maintain said property in good condition and
repair; not to remove or demolish any building or improvement thereon; not to
commit or permit any waste of said property.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 32 of 41
(DOJ approval: 04/24/09)
2. Grantor shall complete or restore promptly and in good and workmanlike manner any
building or improvements, which may be constructed, damaged or destroyed thereon,
and pay when due all costs incurred therefore.
3. Grantor shall comply with all laws, ordinances, regulations, covenants, conditions and
restrictions affecting said property.
4. If the Beneficiary so requests, Grantor shall join in executing such financing
statements pursuant to the Uniform Commercial Code as the Beneficiary may require
and to pay for filing same in the proper public office or offices, as well as the cost of
all lien searches made by filing officers or searching agencies as may be deemed
desirable by the Beneficiary.
5. Grantor shall obtain and maintain insurance as follows:
A. Property and Other Insurance. Grantor shall obtain and maintain in full force
and effect during the term of this Trust Deed: (a) all risk property insurance
together with endorsements for replacement cost, inflation adjustment, malicious
mischief, and sprinkler damage coverage (if applicable), all in amounts not less
than the full replacement cost of all Improvements, without reduction for co-
insurance; and (b) comprehensive general liability insurance, including liabilities
assumed under contract, with limits, coverage, and risks insured acceptable to
Beneficiary, and in no event less than $1,000,000.00 combined single limit
coverage.
B. Insurance Companies and Policies. All insurance shall be written by a
company or companies reasonably acceptable to Beneficiary; shall contain a long
form mortgagee clause in favor of Beneficiary with loss proceeds under any
policy payable to Beneficiary, subject to the terms of this Trust Deed; shall
require 30 days prior written notice to Beneficiary of cancellation or reduction in
coverage; shall contain waivers of subrogation and endorsements that no act or
negligence of Grantor or any occupant will affect the validity or enforceability of
such insurance as against Beneficiary. Beneficiary shall be named as additional
insured on all property and liability policies. Grantor shall forward to
Beneficiary, upon request, certificates evidencing the coverage required under this
Trust Deed and copies of all policies.
C. Casualty /Loss Restoration. After the occurrence of any casualty to the Property
or Improvements, Grantor shall give prompt written notice of the casualty to
Beneficiary, specifically describing the nature and cause of such casualty and the
extent of the damage or destruction to the Trust Property. In the event of any
casualty to any Improvement, Grantor shall immediately take such action as is
necessary to make the site safe and legal, including, if necessary, demolition of
the improvement, removal of debris, and /or grading the site. Grantor assigns to
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 33 of 41
(DOJ approval: 04/24/09)
Beneficiary all insurance proceeds that Grantor may be entitled to receive with
respect to any casualty. In the event that Grantor desires to rebuild or restore the
Property, insurance proceeds shall be placed in escrow, with escrow instructions
to release funds for invoices related to such reconstruction. Beneficiary shall
have the right to review and approve of reconstruction plans, and may require the
release of liens as condition of escrow payments. No proceeds shall be released if
Grantor is in default under this Trust Deed or under the Obligations secured by
this Trust Deed. If Grantor i) does not elect to restore the property, or ii) is in
default under this Trust Deed or the Obligations secured by this Trust Deed,
Beneficiary may apply the insurance proceeds to satisfy the Obligations.
6. Grantor shall keep said premises free from construction and all other liens and pay
all taxes, assessments, and other charges that may be levied or assessed upon or
against the Property before any part of such taxes, assessments, and other charges
become past due or delinquent and promptly deliver receipts therefore to Beneficiary;
should the Grantor fail to make payment of any taxes, assessments, insurance
premiums, liens or other charges payable by Grantor, either by direct payment or by
providing Beneficiary with funds with which to make such payment, Beneficiary
may, at its option, make payment thereof, and the amount so paid with interest at the
rate 10 %, shall be added to and become a part of the debt secured by this Trust Deed,
and all such payments shall be immediately due and payable, and the non - payment
thereof shall, at the option of the Beneficiary, render all sums secured by this Trust
Deed immediately due and payable and constitute a breach of this Trust Deed.
7. Grantor shall not place any consensual lien on the Property, including without
limitation any mortgage, trust deed or security interest, without the prior written
consent of Beneficiary, which consent shall not be unreasonably withheld.
8. Grantor shall pay all costs, fees, and expenses of Trustee and Beneficiary in enforcing
their rights under this Trust Deed, including attorney's fees.
9. In the event that any portion or all of the Property shall be taken under the right of
eminent domain or condemnation, Beneficiary shall have the right, if it so elects, to
require that all or any portion of the monies payable as compensation for such taking,
which are in excess of the amount required to pay all amounts due the Beneficiary
under the Trust Deed, shall be paid to Beneficiary and applied by it first upon any
reasonable costs and expenses, and attorney's fees, both in the trial and appellate
courts, necessarily paid or incurred by Beneficiary in such proceedings, and the
balance applied upon the Obligations secured hereby; and Grantor agrees, at its own
expense, to take such actions and execute such instruments as shall be necessary in
obtaining such compensation, promptly upon Beneficiary's request.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 34 of 41
(DOJ approval: 04/24/09)
Section III.
Default and Remedies
1. Events of Default. Each of the following shall constitute an event of default under this
Trust Deed if remaining uncured 60 days after written notice from Beneficiary of such
default:
A. Nonpayment. Failure of Grantor to pay any of the Obligations on or before the
due date thereof or within any applicable grace period.
B. Breach of Other Covenants. Failure of Grantor to perform or abide by any other
covenant included in the Obligations, including without limitation those
covenants in the Note, or in this Trust Deed.
2. Remedies in Case of Default. If an Event of Default shall occur, Beneficiary or
Trustee may exercise any one or more of the following rights and remedies, in addition
to any other remedies that may be available by law, in equity, or otherwise:
A. Acceleration. Beneficiary may declare all or any portion of the Obligations
immediately due and payable.
B. Receiver. Beneficiary may have a receiver appointed for the Property.
Beneficiary shall be entitled to the appointment of a receiver as a matter of right
whether or not the apparent value of the Property exceeds the amount of the
indebtedness secured by this Trust Deed.
C. Possession. Beneficiary may, either through a receiver or as lender -in-
possession, enter and take possession of all or any part of the Property and use,
operate, manage, and control it as Beneficiary shall deem appropriate in its sole
discretion. Upon request after an Event of Default, Grantor shall peacefully
relinquish possession and control of the Property to Beneficiary or any receiver
appointed under this Trust Deed.
D. Rents. Beneficiary may revoke Grantor's right to collect the Rents, and may
either itself or through a receiver, collect the same. Beneficiary shall not be
deemed to be in possession of the Property solely by reason of exercise of the
rights contained in this subsection (D). If Rents are collected by Beneficiary
under this subsection (D), Grantor hereby irrevocably appoints Beneficiary as
Grantor's attorney -in -fact, with power of substitution, to endorse instruments
received in payment thereof in the name of Grantor and to negotiate such
instruments and collect their proceeds. After payment of all Obligations, any
remaining amounts shall be paid to Grantor and this power shall terminate.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 35 of 41
(DOJ approval: 04/24/09)
E. Power of Sale. Beneficiary may direct Trustee, and Trustee shall be empowered,
to foreclose the Property by advertisement and sale under ORS 86.705 et. seq.
F. Foreclosure. Beneficiary may judicially foreclose this Trust Deed and obtain a
judgment foreclosing Grantor's interest in all or any part of the Property and
giving Beneficiary the right to collect any deficiency remaining due after
disposition of the Property.
3. Sale. In any sale under this Trust Deed or pursuant to any judgment, the purchaser at any
such sale shall take title to the Property free and clear of the estate of Grantor. Any
person, including Beneficiary, may purchase at any such sale. Beneficiary and each of its
officers are irrevocably appointed Grantor's attorney -in -fact, with power of substitution,
to make all appropriate transfers and deliveries of the Property or any portions thereof so
sold and, for that purpose, Beneficiary and its officers may execute all appropriate
instruments of transfer. Nevertheless, Grantor shall ratify and confirm, or cause to be
ratified and confirmed, any such sale or sales by executing and delivering, or by causing
to be executed and delivered, to Beneficiary or to such purchaser or purchasers all such
instruments as may be advisable, in the judgment of Beneficiary, for such purpose.
4. Cumulative Remedies. All remedies under this Trust Deed are cumulative and not
exclusive. Any election to pursue one remedy shall not preclude the exercise of any other
remedy. No delay or omission in exercising any right or remedy shall impair the full
exercise of that or any other right or remedy or constitute a waiver of the default.
Section IV.
General Provisions
1. This Trust Deed applies to, inures to the benefit of and binds all parties hereto, their
heirs, legatees, devisees, administrators, executors, personal representatives, successors
and assigns. If the authority and responsibility to administer and regulate community
housing programs under ORS 426.502 are transferred from DHS to another agency,
division or government unit, the term "Beneficiary" hereunder shall refer to such
agency, division or governmental unit.
2. On the date this Trust Deed is executed, the mailing address of Beneficiary is:
•
State of Oregon, DHS
Attn: Housing Investments Coordinator
500 Summer Street NE, E -86
Salem, OR 97301 -1118
3. For any reason permitted by law, Beneficiary may from time to time appoint a
successor or successors to any trustee named herein or to any successor trustee
appointed hereunder. Upon such appointment, and without conveyance to the successor
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 36 of 41
(DOJ approval: 04/24/09)
trustee, the latter shall be vested with all title, powers and duties conferred upon any
trustee herein named or appointed hereunder. Each such appointment and substitution
shall be made by written instrument executed by Beneficiary, containing reference to
this Trust Deed and its place of record, which when recorded in the office of the County
Clerk or Recorder of the county in which the property is situated, shall be conclusive
proof of proper appointment of the successor trustee.
Notice. Except as otherwise provided in this Trust Deed, all notices pertaining to this Trust
Deed shall be in writing and may be delivered by hand, or mailed by first class, registered, or
certified mail, return- receipt requested, postage prepaid, and addressed to the appropriate party at
its address set forth below. Any party may change its address for such notices from time to time
by notice to the other parties. Notices given by mail in accordance with this paragraph shall be
deemed to have been given upon the date of mailing; notices given by hand shall be deemed to
have been given when actually received.
IN WITNESS WHEREOF, said Grantor has hereunto set his hand the day and year first
above written.
Grantor: 41 name
By:
Authorized Signer, Title
STATE OF OREGON
County of
On this day day of month year, before me personally appeared
, who being duly sworn, stated that (s)he is the of
, a(n) , and acknowledged the foregoing
instrument to be the voluntary act and deed thereof.
By:
Notary Public In and For the State of Oregon
My commission expires:
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 37 of 41
(DOJ approval: 04/24/09)
Exhibit A
Legal Description of Property
SAMPLE DOCUMENT
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 38 of 41
(DOJ approval: 04/24/09)
Exhibit E
Specifications for Improvements
The Grant shall be used to support the establishment of a Secure Residential
Treatment Facility for sixteen (16) residents with mental illness as defined in OAR
309 - 036 - 0105(6) and ORS 426.495(1)(c). The project must be established in
compliance with local zoning and building code requirements per the City of Bend.
The design is subject to review and approval by Grantor. The building must meet
specifications in OAR 309 - 035 -0100 to 309 - 035 -0190.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 39 of 41
(DOJ approval: 04/24/09)
Exhibit F
Service Plan
Secure Residential Treatment Facility services will be provided for sixteen (16)
residents with mental illness as defined in OAR 309 - 036 - 0105(6) and ORS
426.495(1)(c) who will reside in the proposed housing. The services must comply
with requirements in OAR 309 - 035 -0100 to 309 - 035 -0190 and will be subject to
review and approval by Grantor. Residents will be offered other mental health and
support services through Grantee or another provider approved by Grantor.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 40 of 41
(DOJ approval: 04/24/09)
Exhibit G
Management Plan
Grantee will own and operate the Property as a Secure Residential Treatment Facility.
Grantee will be responsible for maintenance of the Property and may contract with a
property management company approved by Grantor for some of the property
management activities. The Property will be maintained in accordance with building
codes, licensing requirements, and generally accepted standards for residential
property management. The property management plan will be subject to review and
approval by Grantor.
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 41 of 41
(DOJ approval: 04/24/09)