HomeMy WebLinkAbout1975-09-08 344 AC ORDER344 AC
Introduced by (iounc110t, Bi9ney, September 6, 1975
CITY OF BANGOR
(TITLE.) VbC - A roving end. Rdoptvpg the Tema and COMit ono Por
�.......... . . .. .......
MIUU,S. the City of Bangor by Council Order 325 AC hes approved and adopted
the Community Development Rehabilitation Leen Program; and
wHF8gA5, it is necessary to adopt aW approve specific teams and conditions
for said Program] -
NOW TkZEIIEFM M IT ORDgRRD, by the City Council of the City of Bangor that
the Property Rehabilitation loan Program "Teams and Conditions' on Pile
with the City Clerk be adopted and approved as the teams and conditions for
the .Community Develyunent Rehabilitation Iron Program.
IN UTY CWk IL 344 %
September 8,:19]5
:meeided by deleting "m 'r and substituting 0 R D E R .r3
tbeegao-,'shall" in the 1st line, last -
Pana9raPh, 1st Page. of "TerMS and Title,
-Conditions" and by deleting " " and -
by designating "a" a sato;: RECEIVED
Page. AS amaadapa, sassed. �n - - ,?qP=ovinq dna Adopting the Terms and - CITY DF BANGOR
��•.� ✓!�•aAay c a t One toe the c anity Development CITY CLER'K'S CFFICE
cxxy�c Rehabilitation v n erogeam, 075 SCP 5 AH 8 33
ntroduced and Hled by
•• ,.•. me Lnen
1
i
mm AND CONDITIONS
1. Purposes of Icon. Toe Borrower, agrees to we the Loon proceeds to
accaoplish Lh hebilitaLion of hie property, identified in the
Application filed by him on Pone BCD -1 or BCDIA, to neat the require-
ments of the Housing Coda of the City of Bangor and to make such other
impow ments as necessary for putting his property to generally good
and readily maintainable coa ition with the necessary facilities in
Bond corking order. loans All be available only for the putpoeea of
rehabilitati� deelling units which do not meet the minimum require-
ments of the Housing Code In Co munity DBvelOPmeat Program Project
some as established by Order of the City Comncil of the City of Bangor.
The Borrower further agrees to use aqy Iran proceeds rematnl+ after
the accomplishment of the foregoing rehabilitation to carry out any
additional rehabilitation (including any general property improvements),
to make any related erpeditures, and to accomplish the reducement of the
debt made by the loan, to the extent and in the mower authorized by
the approved Application and its supporting documentation.
2. Description of Iran. The loan will be evidenced by a Promissory
Note erecuted by the Borrower, and, 1£ required by the City of Beeper,
will be secured by a mortgage mr equivalent security instrument, in
Soon and subetenme setisfectory to the City of Bangor. The Note will;
a. Be in the face amount of the Leon approved by the City of
Bangor;
b. Beer Interest at the rate of five portent (5S) per owes on
the principal outstanding at our time if accured ad six
percent (6%) per aims if unsecured; \
kAx(c. Be repaid at such time or times, at such plate or platens l -.
a d,.
Cie Be subject to such other conditions of repayment as shall
be more fully specified in the Note.
The Borrower agrees that the proceeds of the Loon ey 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, avpran PProvided, that all proceeds of the Iom not so withdrawn
shall be applied by the City of Bangor or other escrow representative
to reduce the outstanding and unpaid principle amount a the Iriant
may, accrued interest and late charges, sed, if this is a secured loan,
say additional amount secured by the security instrument, ands if only
foods remain after so doing, the City of Banger may pay over the same
to the Borrower.
Without attempting to enumerate an possibildtles, the foregoing
provision shall be applicable, when the purposes of the Iran me no
longer capable of being carried oat, when the Iran has been canceled
by the City of Bangor pursuant to paragraphs 3 or 8(b), infra; or,
when the entire amount of the loan has become, or has been declared
by the City of Banger tobe immediately due and payable pursuant to
the provisions of the Note, the security instrument, if say, or these
Terms and Conditions.
3. Cancellation and Acceleration of Amounts Due. At its option, the
City of Bangor, or its designee, reserves the right to Centel and ter—
nate this Loan by sanding 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 Beagor•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,
or, if this is a secured loan, the Security instrument, the Borrower agrees
that the entire principal amount of the Note, together with aro accrued
interest, late charges, and any other amounts secured by the security
instrument, shall become immediately due and payable without notice or
demand upon the Cancellation of this Lose* pursuant to this paragraph or
paragraph 8 (b). The Note shall also became immediately due and payable
Won the insolvency, assignment for the benefit of creditors, crnmsucemert
of any proceedingunderany bankruptcy insolvency law by or against the
borrower.
The Borrower farther agrees that the City of Bangor is authorized to
declare, at its option, and part or the entire amount, of each indebted—
ness immediately due eni payable upon the happening of any of the
following events,
a. The sale or price encumbrance of the collateral, or of
the property which is the subject of the rehabilitation
financed by the Loan;
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b. The loss, thefts substantial damage to or destruction of
the collateral not covered by insurance;
c The failure to renew insurance on the collateral. or
termination of insurance on the collateral when sub—
Science insurance is not obtained before the insurance
coverage terminates.
d. The Borrower's death or legal incapacity to acts prior
to the eomplation of the rehabilitation workv 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 aro of its rights hereunder shall
not constitute a waiver thereof.
4. Acconmlishment of Work. The Borrower agrees to carry out all rehabili—
tation !ro specified in the Application and its Supporting documentation
with all practicable in
in a sound$ economical, and e£ticieda� meadows
either personally or through written contract lot by him with the prior
concurrence of the Government or its designee. In accomplishing Such
rehabilitation. the Borrower will comply with applicable Codes of the City
of Bangory ands to the extent that these are not controllirygp with the
work writeop submitted with the Loan Application. If the estimated cannot
of contract for rehabilitation works or for the purchase of materials'
equipment, or supplies to be used in connection with the rehabilitation
work, is;
a. 510.000 or mala.. the Harrower agrees to give fall opportunity
for frees open. and competitive bidding for that contract; to
give such publicitys through advertisements and Solicitations
for bidst as will produce competitive bidding; and to award
each contract to the lowest responsible bidder.
b. Less than $10.00o. the Borrower may enter into such contracts
by negatiatino without or competitive bidding.
5. Incl" ible Contractors. The Borrower agrees not to award any, contract
or purchase order or rehabilitation workt other services. materials. equip—
ment. W Supplied, to he paid for, in whole or in part with the proceeds
of the loans to any contractor or subcontractor, what the Borrower has been
advised is unacceptable for federally assisted contracts by the Secretary
of Housing ani Urban Development, pr his designee, or delegates.
6. Inspection of Work. The City of Bator or its designee shall have the
right to inspect all rehabilitation work financed, in whole or in parts
with the proceeds of the Loans and will infort the Borrower of aqv non—
odepliannes with respect to the Contract for the rehabilitation works
—3.
but will not issue any orders or instructions to the contractor or
subcontractor perforin the work. The Borrower will take all steps
necessary to assure that the Goverment or its designee is permitted
to examine and inspect the rehabilitation work, sod all uontractas
materdalss equipment: phyrolls, and conditions of employment pertaining
to the work, including all relevant data and records.
9. Records, Me Borrower agrees to keep such records as may be required
by the 'Cityof Bangor with respect to the rehabilitation work finanoad,
in whole or in parte with the aid of the LOaa, nods furtherm0re, 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 mnd expenses incurred Rvm this property.
The narrower will, at aro time during normal business houra, and as
often as the City of Bangor or its designee, may deem necessary, permit
the City of Bangor to here full and free houses 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, and make amerpts or transcripts
from hie records and to review, lesPect, and make mdits of all rembil-
itatlan work, contracts, invoices, materlal, payrolls, records of personnel,
conditions of employment, books of records and other documentary data per-
taining to the loan and the rehabilitation work, and when applicable, to
income and expenses incurred through rental of the rebabilitation property.
0. Ecual Employment G000rtunity.
U Connect Subiect to Executive Order 11246. The Borrower hereby
agrees tat it wi incorporate or cause to be incorporated into
any contract for construction work, he modification thereofs as
defined in the regulations of the Secretary of Labor at 41 CFE
Part 609 which is paid for in whole or in part with foods
obtained from the Federal Covernment or borrowed ou the credit
of the Federal Government pursuant to a grant, contrast, loan,
insurance, or guerantee, or undertaken pursuant to any Federal
program involving such grant, contract, loan, insurance, or
guarantee, the following equal opportunity clauses
Coring the performance of this contract, the contractor agreea
as follows:
(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 affirms
motive action to ensure that applicants are employed, and
that employees are treated during employment, without
regard to their race, color, religion, sex, or national
origin. Such action shall irslude, but not be limited
to, the followings amployeehss upgrading, demotion, or
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transfer; recruitment or recruitment advertising; lVef
or termination; rates of pry or other fame of caaPen-
cation; aro selection for trainingp including apprcntice-
chip. The contractor agrees to post in conspicuous Places,
available to employsea and applicants for employment,
notices to be provided by the municipality setting forth
the provisiona a this nondiscrimination clause.
(2) The contractor will, in all solicitations or advertise-
ments for eopleyees placed by or on behalf of the contractor,
state that all qualified appldcmts Will receive considec�
allm far employment Withmt regent to their race, color,
-religim, sex, or national origin.
(3) The contractor will send to each labor union or repro-
sentaties of weeders with Which he has a collective
bargaining agreement or other contract or understanding,
e notice, to be provided, advising the said labor Union or
workers' representative of the contractor's commitments
under this section and 611011 post copies of the notice in
conspicuous places available to employees and appldcanbe
for employment.
(4) The contractor will conply with all Provisions of Executive
Order 11246 a September 24, 19659 and of the rules, regu-
lations, and relevent orders of the Secretary, of Labor.
(5) The contractor will furnish all deformation and reports
required by Exemtive Order L12/,6 of September 24, 1965,
and by the of labor or thesSecreetarylOf onsNousiog and Orders
of the o
Urban Developmeent,
or pursuant thereto, and wdll permit access to his books,
records, end accounts by the Secretary of Hensing and
Urbm Development, or his designee, and the Secretary of
Labor for purposes of imestlgation to ascertain compliance
,dth each rales, regulatiens, and ceders.
(6) In the event of the contractor's noncaagaliance With the
nondiscrimination clauses of this contract or with aqv
of the said rules, regulations, or orders, this contract
may be canceled, teradnated, or suspended in whole or in
part and the contractor may be declared ineligible for
further Dovernmmt contracts or federally assisted am-
stncction contracts in accordance with procedures authorized
In Executive Order 11246 of September 24, 1965, and each
other, sanctions may ba imposed aro remedies imoced as
provided do Executive order 11246 oI SepteMber 2f„ 1965, or
by rule, regulation, or order of the Secretary of Labor,
or as othereiee provided by law..
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Or
ill
he
(7) +mm-w;a lvtprece n8 paragraph (1g'd Chia hrOslaws
of paragraphs (1) through (7) in every subcontract or
purchase order unleas exempted by rules, regulations,
or orders of the Secretary of Labor issued puxsuoat to
Section 274 of Executive order 11246 oI September 24,
19659 so that such provislom 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 mW direct asameans of enforcing
such provisions, including sanctdonsfor noncompliance;
. Provided, _ however, That in the avant the contractor
becomes involved in, or is threatened with, litigation
with a subcontractor or vendor as a result of such
direction W the property comer or the Secretary of
Houst5mg and Urban Development, the contractor may
request the United States to enter into such litigation
to protect the interest of the Secretary of Housing anal
Urban Development of the United States.
b. Enforcement Obliaatione oY Borrowers. The Borrower Further agrees
that he will be bounce y the above aquffi opportunity clause with
respect to his own employment practices when he participates 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 any agency,
instramnRality or aubdiviaton oI such government which does
not participate in work on or under the contract.
The Borrower agrees that be will assist and cooperate actively
with the Sacretary of Housing and Urban Development and the
Secretary of labor in obtaining the compliance of contractors
and subcontractors with the equal opportunity clause sad the
rules, regulation and relevant orders of the Secretary of Labor,
that he will furnish the Secretary of Horsing end Urban Develop-
ment sail the Secretary of Labor such information as thW mW
require for the sapervisioa of such coopliencer and that he will
othervdse assist the Secretary of Housing and Urban Development
do the discharge of the Secretary's PrLamy responsibility for
securing compliance.
The Boxrowex further agrees that he will refrain from entering
into aW contract or contract modification subject to Executive
Order 11246 of September 24, 1965, with a contractor debarred
from, or who has not demonstrated eligibility for Government
contracts sed federally assisted construction contracts pursuant
to the Executive order and will carry out such sanctions Bad
penalties for violatiaa of tha equal opportwity clause one mW
M
be imposed was contractors and subcontractors by the Secretary
of Housing and Urban Development or the Secretary of g bow
pursuant to Part II, Subpart D of the Executive Ostler. In
addition, the Borrower agrees that if he fails or refuses to
comply with these undertakings, the agency mry take ary or all
of the follosdog actions: Cancel, terminate, or suspend in
whole or in part this loan application and agreement; refrain
from extending soy further assistance to the Borroemw uater
the program with respect to which the failure or refn occurred
until satisfactory assurance of future compliance has been
received from such Borrower; and refer the case to the Depart—
ment a Justice for appropriate legal proceedings.
9. Title VI of the Civil Ughts Act of 1964, The Borrower will utilize
the proceeds o t e Inas in compliance with all requirements imposed by
or pursuant to. regulations of the Secretary of Housing and Urban Develop—
ment effectuating Title VI of the Civil Rights Act of 1964 (98 Stat. 252),
The Borrower also agrees not to discriminate upon the basis of race, color,
creed, or national origin in the sale, lease, rental, use, or occupancy
at the real property rehabilitated with the assistance of the loan. The
City of Bangor shall be deemed to be a beneficiary of these provisim,s
both for and in its mm right and also for the purpose of protecting the
interest of the commwity and other parties, public or private, in whose
favor or for abuse benefit this provision hes been provided and shall
have the right, in the event of any breach of this provision, to maintain
aro actions or suits at law or in equity or std other proper proreediage
to enforce the curing of such breach.
M. Interest a Certain Federal Officials. The Borrower agrees that no
Member of or Delegate to the Congress of the Unitel States, and no Residcat
Commissioner, shall be admitted to any share or part of the proceeds of
the Iran, or to std benefit to arise fron the sane.
ll. Bonus. Commission. or Fee. The Borrower will rot pay env bonus,
cmmi.ssion, or See for the purpose of obtaining the City of Bangor's approval
of his Application for this lnsn, or any other approval or concurrence
required by the Coveraaent or its designee to complete the rehabilitation
work financed in whole or in part with this Loan.
12. Interest of Cit -of H or Personnel. No member of the governing body
of the Ly oT Bengpr woo exercises adv ilmctions or rospmneibiliLies in
connection with the administration of the Community Development Program,
and an other officer or employee of the City of Bangor who exeroises such
functions or responsibilities, shell have any interest, direct or indirect,
in the proceeds of this Loan, or in any contract entered into by the
Borrower for the performance a work financed in whole or in part with
the proceeds of this loan.
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