HomeMy WebLinkAboutDoc 678 - Amend Hsg Grant AgrmtTES
Property & Facilities Department
Susan C. Ross, Director
14 NW Kearney Street, Bend, OR 97701-1960
(541) 388-6594 • Fax: (541 ) 317-3168
MEMORANDUM www.co.deschutes.or.us
TO: Dave Kanner, County Administrator
FROM: Teresa Rozic, Property Speciali
DATE: November 1, 2010
RE: Amendment to Housing Development Grant Agreement #126155
The occupancy requirement for Housing Development Grant Agreement
#126155 expired on August 31, 2010. This is a $750,000 grant agreement
between Deschutes County and the State of Oregon Addictions and Mental
Health Division for the development of the Deschutes County Recovery Center.
Although we expect the occupancy certificate to be issued soon, Telecare plans
to place the first resident in the facility around January 24, 2011. This
amendment extends the occupancy requirement to February 28, 2011.
Staff recommends signature by Board Chair, subject to review by Legal
Department.
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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:
11/01/2010
Please complete all sections above the Official Review line.
Department:
Contractor/Supplier/Consultant Name:
Contractor Contact:
Karen Knight
Property & Facilities
Oregon Dept. of Human Services
Contractor Phone #:
503-945-5911
Type of Document: Amendment to Housing Development Grant Agreement #126155
Goods and/or Services: Extends term of grant for Deschutes Recovery Center.
Background & History: The occupancy requirement for Housing Development Grant
Agreement #126155 expired on August 31, 2010. This is a $750,000 grant agreement
between Deschutes County and the State of Oregon Addictions and Mental Health
Division for the development of the Deschutes County Recovery Center. Although we
expect the occupancy certificate to be issued soon, Telecare plans to place the first
resident in the facility around January 24, 2011. This amendment extends the
occupancy requirement to February 28, 2011.
Agreement Starting Date:
08/31/2010
Annual Value or Total Payment:
Ending Date:
$750,000 awarded 2008 - 2009
❑ Insurance Certificate Received check box)
Insurance Expiration Date:
02/28/2011
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 ❑ No
If No, has budget amendment been submitted? ❑ Yes ❑ No
Is this a Grant Agreement providing revenue to the County? ❑ Yes ❑ No
Special conditions attached to this grant:
Deadlines for reporting to the grantor:
11/1/2010
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:
Phone #:
Departmental Contact and Title: Teresa Rozic Phone #: 385-1414
Department Director Approval:
Signature Date
Distribution of Document: Both originals to Teresa Rozic. DHS will sign and return
one original for County files.
Official Review:
County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K)
❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No.
Legal Review Date
Document Number 2010-678
11/1/2010
AMENDMENT #1
TO
HOUSING DEVELOPMENT GRANT AGREEMENT #126155
A. Original Agreement. This amendment concerns that certain Housing
Development Grant Agreement ("Agreement") entered into by the State of
Oregon, acting by and through its Department of Human Services,
Addictions and Mental Health Division ("DHS") and Deschutes County,
a Political Subdivision of the State of Oregon ("Grantee") dated
April 29, 2009.
B. Amendment. This is Amendment #1 to the Agreement. This Amendment
shall become effective on the last date signed by all of the parties. Language
to be deleted or replaced is indicated by [beets]; language to be added
is indicated by bold underlining.
C. Section(s) to be Amended.
Section 3 is amended as follows:
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] February 28, 2011.
D. Exhibits to be Added or Deleted. No Exhibits are added or deleted.
Amendment #1
Housing Development Grant Agreement
Grantee: Deschutes County
Project Name: Deschutes County Recovery Center
Award #: 126155
Page 1 of 2
E. Terms and Conditions. Except as expressly amended above, all other terms and
conditions of the original Agreement are still in full force and effect.
By their signatures below, the parties agree to and execute this Amendment.
State of Oregon, acting by and through its Department of Human
Services, Addictions and Mental Health Division
By: Date:
Len Ray, L.C.S.W.
Administrator, Adult Mental Health Services
Deschutes County, a Political Subdivision of the State of Oregon
By: Date:
Dennis R. Luke, Chair
Deschutes County Board of Commissioners
Amendment #1
Housing Development Grant Agreement
Grantee: Deschutes County
Project Name: Deschutes County Recovery Center
Award #: 126155
Page 2 of 2
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
propel ty 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)
OC -2009-2413
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 flow, no later than 60ixty ays a er 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.
The -Grantee notifying Grantor, in writing, of -Changes -Cif -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.
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)
14. Non -Merger. The obligations contained in this Agreement shall not be merged
with the Deed. Specifically, but without limitation, the obligations described in
Sections 4 and 5 above shall continue if title to the Property is re -conveyed unless
Grantor approves otherwise.
15. Compliance with Law. Grantee shall comply with all federal, state and local
laws and ordinances applicable to this Agreement.
16. Amendment and Modification. This Agreement may be amended, modified or
supplemented only by a written agreement signed by Grantee and Grantor.
17. Time of the Essence. Time is of the essence in the performance of the terms and
conditions of this Agreement.
18. No Limitations on Actions of Department in Exercise of its Governmental
Powers. Nothing in this Agreement is intended, nor shall it be construed, to in
any way limit the actions of the Depaitaient in the exercise of its governmental
powers. It is the express intention of the parties hereto that the Department shall
retain the full right and ability to exercise its governmental powers with respect to
the Grantee, the project, and the transactions contemplated by this Agreement to
the same extent as if it were not a party to this Agreement or the transactions
contemplated thereby, and in no event shall the Department have any liability in
contract arising under this Agreement by virtue of any exercise of its
governmental powers.
19. Statutory Disclaimer. THE PROPERTY DESCRIBED IN THIS
INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT
PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND
USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES,
MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE
AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST
PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON
TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON'S
- RIGHTS; IF ANY—UNDER-O- -R —195 3-00 195.301 AND -19 -5 -.3 -05 -Tal -1 5 :336
AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. BEFORE
SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON
ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH
THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 6 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 Department of Human
Services, Addictions and Mental Health Division
500 Summer Street NE, E-86
Salem, OR 97301-1118
By: %i(_ &7t*/ Date:
5/(�I `O,
Len Ray, L.0 .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:
Tammy Baney, Chair
Deschutes County Board of Commissioners
REVI'W
LEGAL COUNSEL
Date: S •/JC%
Housing Development Grant Agreement
Deschutes County (Deschutes County Recovery Center)
Grant Agreement #: 126155
Page 7 of 41
(DOJ approval: 04/24/09)