HomeMy WebLinkAbout1978-12-11 63 AG ORDER63 Ac
Introduced by Coancibe saucy, December 11, 1478
CITY OF BANGOR
(TITU.) (Or11eYt....... Ane ovine and Adopting the Terme and Conditions for the
Community Development Progrffi -, Cprve Street Area Heighbor-
hotd C eivation P ject Property. Rehabllitati Man Program
By the CtiM Coymm3 of the CIM ofBma .
OE)EEED.
THAT WHEREAS, the City Council of the City of Bangor has approved and
outdated the Community Development Program - Curve Street Area Eeighborhood
Conservation Project Property Rehabilitation Loan Progran;'ad
WNEREAS, it is necessary, to adopt and approve specific terns and
conditions for said Program;
NOW, mmFoSS$ BE IT OHDEIIEOa BY THE CITY COUNCIL OF THE CITY
OF BANGOR THAT the Ccatenuity Development Tragrrn - Curve Street Area Neighbor -
hod Conservation Project Property Rehabilitation Loan Program "Terms and
Conditions" on Pile with the City Clerk be hereby approved and adopted.
In City Council December 11,1978
refered to Community Development
Comm.:. Consider meeting January 8,1979
relateTitle,
it
City C k Approving and adopting the terms and
IN CITY COUNCIL JANUARY 8x1979
eonditimu for the Community development .
.................. :... ... ..........
C.N.M.
program ' @ St. free Neighborhood conaervation
Prod y, t lug�' on loan Program
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Co Iman
a A TR
CITY C1ERN `
CITY BE BANGOR .
CONMDHITY DEVELOPMENT DEPARTMENT
PROPERTY REHABILITATION LOAN PROGRAM
TERMS AND CONDITIONS
1. Par use of Loan. The Borrower agrees to use the Loan proceeds to
omp rsT t-l� iia rOi Inilitation of his Property, identified in the
Application filed by him on Form. BCD -IB or BCD , to meet the require-
ments of the Housing Code of the City of Bangor and to make such other
improvements as necessary for putting his property in general good
and readily maintainable condition with the necessary facilities in
good working order. Loans will he available only for the purposes Of
rehabilitating dwelling units which do not meet the minimum require-
ments of the Housing Code in Community Development Program project
areas as established by Order of the City Council of the City of Bangor.
The Borrower further agrees to use any Loan proceeds remaining after
the accomplishment of the foregoing rehabilitation to carry out any
additional rehabilitation (including any general property improvements),
to make any related expenditures, and to accomplish the reducement of
the debt made by the Loan, to the extent and in the manner authorized
by the approved Application and .itssupporting documentation.
2. Description of Loan. The Loan will be evidenced by a. Promissory
Note executed yby t� ower, and, if required by. the City of Bangor,
will bsecured by a mortgage or equivalent security instrument, i
form and substance satisfactory to the City of Bangor. The Note will:
a. Be in the face amount of the Loan approved, by the City of
Bangor,
b. Bear interest at the rate of three percent (3%) Par aumm
on the principal outstanding at anytime,
BCD -5A
c Be subject to suchother conditionsofrepayment as shall
be more fully specified is the Note.
The Borrower agrees that the proceeds of the Lgan shall be deposited
in an account maintained by the City of Bangor subject to withdrawal only
as necessary to carry out the purpose(s) of the Loan as described in para-
graph 1, supra: Provided, that all proceeds of the Loan not so withdrawn
::hall be, applied by the City of Bangor or other eaGrow
representative
to reduce the outstanding and unpaid principle amount of the Wen,
any accrued interest and late charges, and, if this is ascured loan:
1" additional amount secured by the, security instrument, and, if any
funds remain after so doing, the City of Bangor may pay over the same
to the Borrower.
Without attempting to enumerate all possibilities, the foregoing
provision shall be applicable, when the purposes of the Loan are no
longer capable of being carried out, when the Iran has been canceled
by the City of Bogor pursuant to paragraphs j or S(b), infra{ or,.
when the entire meant of the Wen has become, or has been declared
by the City of Bangor to be immediately due -aed payable pursuant to
the provisions of the Note, the security instrument; if any, or these
Terms and Conditions.
3. Cancellation and Acceleration bf Amounts Due. At its option, the
City of Bangor, or its designee, reserves the right to cancel and ter
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inote this Wan by sending written notice of cancellation to the Borrower
at his mailing address as set forth in the Application if, for a period
of 60 days from the date of execution of the Note, the Borrower shall
have failed or refused to cause the commencement of physical rehabili—
tation work on his property, or if the Borrower shall have failed or
refused to complete such rehabilitation work within a reasonable time.
The City of Bandar's failure to exercise this right shall not be deemed
a waiver thereof, as long as the rehabilitation work remains incomplete.
In addition to, and not in derogation of the provisions of the Note,
it this is a secured Man, the Security instrument, the Borrower agrees
that the entire principal amount of the Note, together with any, accrued
interest, late charges, and any other mmbunts secured by the security
instrument, shall became immediately due end payable without notice or
-demand area the cancellation of this Wan, pursuant to this paragraph or
paragraph B (b), The Note shall also became immediately due and payable
upon the insolvency, assignment for the benefit of creditors, commencement
of any proceeding under any bankruptcy insolvency law by or against the
borrower.
The Borrower further Wass that the City of Bangor is authorized to
declare, at its option, any part or the entire me at, of such indebted—
ness immediately due And payable upon the happening of any of the
fallowing events:
a The sale or prior encumbrance of the collateral,. or of
the property Which is the othaject of the rehabilitation
financed by the Wang
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b. The loss, theft, substantial-danage to or destruction of
the collateral net covered by insurance;
c .The failure to resew insurance on the collateral, o
termination of insurance on the collateral when sub-
stitute insuranceis not obtained before the insurance
coverage terminates. -
d. The Borrower's death or legal incapacity to act, prior
to the completion of the rehabilitation work, if the City
of Bangor determines that the purposes of the Loan have
been rendered impracticable of fulfillment.
The City of Bangor's failure to exercise .any of its rights heieurder shall
not constitute a waiver thereof.
4. Accomplishment of Work. The Borrower agrees to carry out all rehabili-
tation work A'specified in the. Application and its supporting documentation
with all practicable dispatch in a sound, economical, and efficient msmer,
either personally or through written contract let by him with the prior
conurrence of the Government or its designee. In accamplishing such
rehabilitation, the Borrower will comply with applicable Codes of the City
of Bangor, and, to the extent that these am not controlling, with the
work writeup submitted with the Ioan Application. If the estimated moment
of contract for rehabilitation work, or for the purchase of materials,
equipment, or supplies to be used in connectionwith the rehabilitation
work, is.
a. $Z,M or re, the Borrower, agrees to give fall apportmaity
for ikee, open, and competitive bidding for that contract; to
give such publicity, through advertisements and solicitations
forbids, as will produce competitive bidding; and to award
each contract to the lowest responsible bidder.
b. lams than $27.0001 the Borrower may enter into such contracts
by negotiation without advertising or competitive bidding.
5. Inelieible Contractors. The Borrower agrees not to amard any contract
r purchase order far rehabilitation work, other service., materials, equip-
ment, or supplies, to be paid for, in whale or in part with the proceeds
of the loan, to any contractor or subcontractor, whom the Borrower has been
advised is unacceptable for federalny assisted contracts by the Secretary
of Housing and Urban Gevelapment, or his designee, or delegates,
6. Inspection of Work.- The City of'Bandar or its designee shall have the
right to inspect all rehabilitation' work financed, in whole or in part,
with the proceeds of the Iran, and will inform the Borrower of any non -
compliances with respect to the contract for the rehabilitation work.
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but will not issue any orders or instructions to the contractor or
subcontractor performing the work. The Borrower will take all steps
necessary to assure that the Government or its designee is permitted
to examine and inspect the rehabilitation work, and all contracts,
materials, equipment, payrolls, anil conditions of employment pertaining
to the work, including all relevant data and records.
7. Records. The Borrower agrees to keep such records as may be required
by the City of Banfor with respect to the rehabilitation work financed,
in whole or in part, with the aid of the Loan, and, furthermore,_ when
the rehabilitated property contains rental units, the Borrower agrees
to keep such records as may be required by the City of Bangor with
respect to income received and expenses incurred from this property.
The Borrower will, at env time during, normal business hours, and a
often as the City of Bangor or its designee, may deem necessary, permit
the City of Bangor to have Hill and free access to its records with
respect to the utilization of the proceeds of the loan, and when applic-
able, to the income and expenses incurred through rental, and will permit
the City of Bangor to audit, examine, end male excerpts or transcripts
from his records and to review, inspect, and make audits of all rehabil-
itation work, contracts, Invoices, material, payrolls. rsceads of personnel,
conditions of employment, books of recori, and other documentary data per-
taining to the idan and the rehabilitation. work, and when applicabl;to
income and expenses incurred through rental of the rehabilitation property.
8. Fgual Employment Opportunity.
a. Contract Vbiect to Executive Order 11246. Me Borrower hereby
agrees Ehat it will incorporate or cause to be incorporated into
any contract for construction work, or modification thereof, as -
defined in the regulations of the Secretary of Labor at 41 CFR
Part 60, which is paid for in whole or in part with funds
obtained from the Federal Government or borrowed on the credit
of the Federal Government pursuant to a grant, contract, loan,
insurance, or guarantee, or undertaken pursuant to any Federal
program involving such grant, contract, loan, insurance, or
guarantee, the following equal opportunity clause:
During; the performance of thiscontract, the contractor agrees
as followsr
(1) The contractor will not discriminate against any employee
or applicant for employment because of race, color, religion,
sex, or national origin. The contractor will take affir-
mative action to ensure that applicants are employed, end
that employees are treated during employment, without
regard to their race, color, religion sex, or national
nc'
Origin, Such action shall include, but not be limited
to, the following: employment, upgrading, demotion, or
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transfer; recruitment or recruitment advertising; layoff
or termination; rates of pay or other forms of compen-
sation; and selection for trainingt including apprentice-
. ship. The contractor agrees to post in conspicuous places,
available to employees and applicants for employmento
notices to be provided by the municipality setting forth
the provisions of this nondiscrimination clause.
(2) The contractor 311, in all solicitations or advertise-
ments for employees placed by or an behalf of the contractor,
state that all qualifYed applicants All receive conAder-
atian for employment Athout regard to their race, color,
religion, sex, or national origin. -
(3) The contractor All send to. each labor union or repre-
sentative of workers Ath which he has a collective
bargaining agreement or other contract or understanding,
notice, to be provided, advising the said labor union or
workers' representative of the contractor's commitments
under this section and shall post copies of the'notice in
conspicuous placesavailable to employees hod applicants
for employment.
(4) The contractor An canply Ath all provisions of Executive
Order 11246 of September Z4, 1965, had of the rules, regu-
lations, and relevant orders of the Secrotary of Labor.
(5) The contractor All furnish all fmimmatiOn and reports
required by Executive Onier 11p 6 of September 24, 1965,
and by the riles, regulations, and orders of the Secretary
of labor or the Secretary of gouJng and Urban Development,
or pursuant thereto, and All permit access to his books,
records, and accounts by the Secretary of Housing and
Urban Development, or due designee, and the Secretary of
Labor for purposes of investigation to ascertain compliance
Ath such rules, regulatimns, and orders.
(6) In the event of the contractor's roncampliance with the
nondiscriAnation clauses of this contract or with any
of the said roles, regulations, or orders, this contract
may be canceled, terminated, or suspended in whole or in
part end the contractor may be declared ineligible for
further Government contracts or federally assisted con-
struction contracts in accordance Athprocedures authorized
in Executive Omer ll246of September 24, 1965, and such
other sanctions may be imposed and renadies invoked as
provided in Executive order 11246 of September 24, 1965, or.
by Sole, regulation, or order of the Secretary of Labor,
or as otherwise provided by las.
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(T) The contractor will include the portion of the sentence
immediately pracedinE porn33reps (1) and the provisions
of pnragrnphe (1) through (9) to every subcontract or
purchase order unleas exempted by xulep, regulations,
or orders of the Secretary of Labor issued pursuant to
Section 204 of Executive Order U246 of September 24,
1965, so that such provisions will be binding upon
each subcontractor or vendor. The contractor will take
such action with respect to any, subcontract or purchase
order as the property Owner or the Secretary of Housing
and Urban Development may direct as a means of enforcing
such provisions, inoluding sanctions for noncompliance:
Provided, however, That in the event the contractor
becomes involved in, or is threatened with, litigation
with a subcontractor orvendar as a result of such
direction by the property owner or the Secretary of
Housing and Urban Development, the contractor may
request the Urdted States to enter into such litigation
to protect the interest of the Secretary of Spacing aM
Urban Development of the United States.
Enforcement Obligations of Borrowers. The Borrower further agrees
t at be will be bouW by the above equal opporturdty clause with
respect to Ids can employment practices when he participate$ in
federally assisted construction work: Provided, That if the
Borrower so participating is a State or local government, the
above equal opportunity clause is not applicable to a� agency,
instrumentality or subdivision of such government which does
not participate in work on or under the contract.
The Borrower meas that he will assist aM cooperate actively
with the Secretary of Housing and Urban Development and the.
Secretary of Labor in obtaining the compliance of contractors
ani subcontractors with the equal opportunity clause and the
rules, regulation and relevant orders of the Secretary of Labor,
that he will furnish the Secretary of Housing and Urban Develop—
ment and the Secretary of Labor such information as they may
require for the supervision of such empUmhCe, and that he will
otherwise assist the Secretary of Housing aril Urban Development
in the discharge of the Secretary's primary responsibility for
securing compliance.
The Borrower further agrees that he will refrain from entering
Into aby contract or contract modification subject to Executive
Drdei 11246 of September 24, 1965, with a contractor debarred
form, or who has not demonstrated eligibility for Government
contracts and federally assisted construction contracts pursuant
to the Executive Order and will carry out such sanctions and
penalties far violation of the equal opportunity clause as may
he imposed upon contractors and subcontractors by the Secretary
of Hosaing and Urban Development or the Secretary of Labor
pursuant to Part IIs .Subpart D of the Executive Order. In
additions the Borrower agrees that if he fails or refuses to
comply with these undertakings, the agency may take any or all
of the folloeing actions: Cancels terminates or suspend in
whole or in part this loon application and agreement; refrain
from extending any further assistance to the Borrower under
the program with respect to which the failure or refund occurred
until satisfactory assurance of future compliance has been
received from such Borrower[ and refer the case to the Departr
mend of Justice for appropriate legal proceedings,
9. Title VI of the Civil Rights Act of 1964. Tne Borrower will utilize
the proceeds o t e Loan Sn compliable wit all requirements imposed by
he pursuant to regulations oI the Secretary of Housing and Urban Develop—
ment effectuating Title VI of the Civil Rights Act of 1964 (78 Stat. 252).
The Borrower also agrees not to discriminate upon the basis of races colors
creeds or national origin in the sales leases rentals use, or oc=pancy
of the real property rehabilitated with the assistance of the Loan. The
City of Bangor shall be deemed to be a beneficiary of these provisions
both for and in its mm right mad also for the purpose of protecting the
interest of the community and other parties, public or privates In whose
favor or for whose benefit this prevision has been provided and shall
have the right, in the event of any breach of this pmVlaions to maintain
any actions or suits se. law or in equity or any other proper proceedings
to enforce the curing of such breach.
10. Interest of Certain Federal OfZoials, The Borrower agrees that n
Member of or Delegate to Lhe Congress of the untied Staters end no Resident
Commissioner, shall be admitted to any, share or part of the proceeds of
the Loan, or to anv benefit to arias from the same.
11. Bonus. Commission, or Fee. The Borrower will not pay any thaw,
commissions or fee for the purpose of obtaining the City of Bangor's approval
of his Application for this leans or any other approval or concurrence
required by the Government or its designee to complete the rehabilitation
work financed in whole or in part with this Loan.
12. Interest of Cit of B or Personnel, Ho member of the governing body
of the ity of Bangor wino exeiciaea any functions he responsibilities in
connection with the administration of the Community Development Program,
and ne other officer or employee of the City of Bangor who er ises such
Donations or responsibilities, shall have any interests direct or indirect,.
in the proceeds of this Loons or in any contract entered into by the
Borrower for the performance of work flaxseed in whale or in part with
the proceeds of this loan.
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13. Federal Labor Standards Provisions. With respect to the rehabili-
tation of residential property designed for residential. we for eight (8)
or core families, the Borrower agrees to Imply with Department of Housing
and Urban Deve]opment requirements pertaining to cmatructiov contracts in
excess of $2,000 sn8 the applicable requirements of the regulations of the
Depar4:mt of labor under 24 CFR parts.3 and 5, governing the payment of
wages and the ratio of apprentices and trainees to journeymen: Provided,
that if wage rates higher then those required under such regulations are
Imposed by state or local law, nothing hereunder is intended to relieve
the Borrower of his/her obligation, if any, to require payment of the
higher rates.
14. Low Security Requirements. Me Borrower shall provide security
for a law in the from of a mortgage, or similar security inatrument, on
the property, A subordinate lien Is acceptable ifit provides adequate
security.
15. Section 3 Compliance. the Burrower agrees to provide in connection
with the rehabilitation work funded by this low to the greatest extent
feasible the opportunity for training and employment of lower theme persons
residing in Bongos. The Borrower further agrees to require to the greatest
extent feasible Chet rehabilitation work be awarded to business concerns,
individuals, or Pias; which are located in, or owed in substantial part
by persons residing Is Bangor. Pursuant to these tema, the Borrower shall
cmPly hthYin 24
the section
clauseofthe Housing novel Urban Develolment Act
of 1969 ass
16. Completion of Work. The Borrower shall require the contractor to
satisfactorily complete the rehabilitation work within ninety (90) days
after the issuance of the proceed order. Thin then limitatim may be
exterded by the Director of Ca®mity Development upon submission of a
written request by the Borrower.
19. Contractor's Insvrence. Me Borrower shall require the contractor
to furnish to the Community Development Department evidence of comprehensive
rc liability insurance coverage protecting the owner for not leas than
000/$300,000 in the event of bodily injury including death, and $25,000
Is the event oP property damage wising out of the work performed by the
contractor; end, evidence of insurance or other coverage required by local
lax governing workman's cmpereatim.
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