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HomeMy WebLinkAboutResolution No. 25-42 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 25- `/.2 A RESOLUTION OF SUPPORT OF AN APPLICATION FOR A BUSINESS OREGON HOUSING INFRASTRUCTURE FINANCING PROGRAM GRANT TO FUND INFRASTRUCTURE IMPROVEMENTS FOR AN AFFORDABLE HOUSING DEVELOPMENT IN THE TIGARD TRIANGLE AND AUTHORIZING THE ACTING CITY MANAGER TO SIGN THE APPLICATION AND PARTNERSHIP AGREEMENT WHEREAS, the Housing Infrastructure Financing Program (HIFP)was established during the 2025 legislative session through House Bill 3031, which has committed funds for infrastructure improvements, including transportation,water,wastewater or stormwater infrastructure,needed to unlock housing development;and WHEREAS, REACH Community Development Corporation (REACH CDC) Dartmouth Crossing South Phase 2 affordable housing development meets the criteria for Housing Infrastructure Financing Program funding's specified housing development and requests funding for needed infrastructure improvements;and WHEREAS, the grant would fund stormwater, transportation, and wastewater improvements needed to create affordable housing units in the Tigard Triangle TIF District; and WHEREAS, infrastructure improvements for housing development in an equitable and sustainable manner advances city, regional, and statewide goals to provide more housing, address inequity, and promote low impact development practices;and WHEREAS, the application requires a partnership agreement between the City and REACH CDC which sets out the terms and conditions of the partnership and grant funding for certain infrastructure improvements the project will incur if awarded Housing Infrastructure Financing Program grant funds;and WHEREAS, the City Council wishes to authorize the Acting City Manager to sign the application and agreement described above. NOW,THEREFORE, BE IT RESOLVED by the Tigard City Council that: SECTION 1: Council authorizes staff to apply for grant funding from the Business Oregon Housing Infrastructure Financing Program to support the infrastructure improvements needed for the Dartmouth Crossing South Phase 2 development in the Tigard Triangle advancing the housing goals of the city. SECTION 2: Council authorizes the Acting City Manager to sign the Housing Infrastructure Financing Program application and execute the Partnership Agreement, in substantially the form attached as Exhibit A, subject to final legal review. RESOLUTION NO. 25- 'a2 Page 1 SECTION 3: The Acting City Manager may approve editing or similar changes to Exhibit A that do not materially alter the rights or responsibilities of the parties. SECTION 4: This resolution is effective immediately upon passage. PASSED: This 1 6 day of 6C C?fri 1 Gem 2025. ly e /2 y/ C'ouhc?( Prr.ess (le►t+ Ll)oif ATTEST: �a4via* 0i City Recorder- City of Tigard RESOLUTION NO. 25- 4 2 Page 2 Exhibit A: Housing Infrastructure Financing Program(HIFP) Partnership Agreement REACH Community Development Corporation HIFP Applicant: City of Tigard Applicant Contact Person and Email: Trinity Miller Trinitv.millerc tgard-or.xov HIFP Partner: _ REACH Community Development Corporation Partner Address: 4150 S. Moody Ave., Portland,OR 97239 Partner Contact Person and Email: Alex Aleman AAleman@reachcdc.org HIFP GRANT APPLICATION AMOUNT: $722,515 Partner to use grant funds for stormwater, HIFP PURPOSE—INFRASTRUCTURE PROJECT: transportation,and wastewater infrastructure improvements for Dartmouth Crossing South Phase 2 development The funded infrastructure improvements will HIFP PURPOSE—SPECIFIED HOUSING support the Dartmouth Crossing South Phase 2 DEVELOPMENT PROJECT: development which includes 50 units of affordable rental housing in the Tigard Triangle TIF district with a 60-year period of affordability. PARTNERSHIP AGREEMENT BACKGROUND House Bill 3031(2025)created the Housing Infrastructure Financing Program(HIFP)and directed the Oregon Infrastructure Finance Authority of the Oregon Business Development Department(Authority)to administer it.The purpose of the HIFP is to provide grants, loans and forgivable loans to eligible entities for(a)the development or improvement of transportation,water,wastewater or stormwater infrastructure, including improvements to system capacity;or(b)site development,including the development of privately owned sites, necessary for the improvement of transportation,water, wastewater or stormwater infrastructure;and(c)the proposed development in (a)or(b)will primarily support a Specified Proposed Housing Development(as defined in OAR 123-053-0020).The Oregon Legislature has committed$10 million to launch this program,funded through a lottery bond sale expected in May 2026.All awards are contingent on the successful sale of these bonds. The Authority currently does not have expenditure limitation authority for HIFP funds.Accordingly, prior to issuing any Awards,the Authority will seek expenditure limitation from the Oregon Legislative Assembly in the 2026 session. If the Authority does not receive expenditure limitation,the Authority may exercise its rights to cancel the RFA without liability. The Authority is administering the HIFP and has issued a Request for Application(RFA)to solicit applications and outline the application requirements and submission process.To receive an Award under the RFA,an applicant must be one of the following:A city,county,county service district organized under ORS chapter 451,district as defined in ORS 198.010,intergovernmental entity formed under ORS chapter 190,or a tribal council of a federally recognized Indian tribe in Oregon.A housing authority as defined in ORS 456.005 or a Housing Developer may apply with an Eligible Applicant as a Partner.The Authority will make Awards(and Award disbursements)only to a successful Eligible Applicant and not a Partner. However,a successful Eligible Applicant with a Partner may enter into a sub-agreement with a Partner to complete the Project and the Partner may receive Award funding from the Eligible Applicant for the Project. In addition,a Partner may be required to sign the binding contract described in OAR 123- 053-0080,along with the Award recipient depending on the financing details of the Project.The contract will provide terms providing for the Partner's obligations with respect to the Project,including financial obligations.The City will apply for this RFA as the eligible applicant in partnership with REACH (Partner). The application will request funding to support infrastructure improvements for the Dartmouth Crossing South Phase 2 residential development in Tigard,specifically located at 7595 SW Torchwood Street (Project). If awarded,the HIFP appropriation must be used for the stormwater,transportation, and wastewater infrastructure (Infrastructure Project) necessary for the Specified Proposed Housing Development. PARTNERSHIP AGREEMENT 1. Use of Grant Funds: Partner is being reimbursed by the grant funds for expenses of the Project 2. Compliance with Oregon Business Grant Requirements:Applicant and Partner will comply with Oregon Business requirements for use of the funds regarding the usage of any and all monies appropriated under HB 3031. 3. Term of Grant:All reimbursement grant funding request must be completed by May 30,2029,as directed by Oregon Business. 4. Progress Report: Partner shall present a report on the Project as requested by Oregon Business.This may be required on a quarterly basis. 5. Request for Payment of Project Expenses/Release of Unexpended Grant Funds: Partner shall request reimbursement for materials and services purchased by the Partner from vendors or individuals on requisition forms in form and substance reasonably acceptable to the City.Any Grant Funds not requested for payment by May 30,2029 are deemed released from the Grant Amount. 6. Maximum Aggregate Payment: In no event shall the Payment of Project Infrastructures expenses, including reimbursement to Grant Recipient's vendor or individual, exceed the total Grant Amount Awarded. 7. Standard Grant Provisions. a. Assignment Prohibited. Partner shall not assign or otherwise transfer its rights and obligations under this Grant Agreement without prior written approval from the City. Provided however,City acknowledges that REACH will loan the grant proceeds to the Owner of the Project,of which REACH's affiliate will be the general partner. b. Return of Grant Funds: i. All Grant Funds not used for the purposes described in the application must be returned to the City within 15 days of written demand by City. ii. If such a demand is made but Partner believes that the Grant Funds were properly used according to the terms of this Grant Agreement, Partner shall submit substantiating documentation within 10 days after receipt of the City's written demand to the City's Project Manager. iii. The City will review the submitted documentation and may contact the Partner for additional information. iv. The City's Project Manager will promptly make a written decision as to a finding whether or not the monies in question were properly spent. v. If the Grant Recipient wishes to appeal the City's Project Manager's decision,a written request for review by the City Manager shall be filed with the City Recorder within 10 days of the written decision. vi. The decision of the City Manager shall be the final decision of the City. c. Records;Audit. i. Partner shall track and share with the City's Project Manager relevant data related to the Project. ii. Grant Recipient shall maintain records, books,documents,and other materials relevant to monies expended.These records shall be subject to inspection, review, and audit by the City and/or Oregon Business,or its respective designees for five(5) years.The Partner will promptly provide such additional information, reports and documentation as the City may require to verify compliance with the criteria for the grant and the authorized use of grant funds. If it is determined during the course of the audit that the recipient was reimbursed for unallowable costs,the Partner must repay these costs. iii. Partner shall provide information related to the Project infrastructure or to the expenditure of the Grant Funds as requested by the City or Oregon Business at any time over the course of the Term iv. The cost of creating or providing such records and documentation may not be reimbursed from the Grant Funds. d. City shall not be responsible for any tax liability imposed upon the Partner by any local,state or federal government. e. City may use the Project,or information described in the Partner's Project Information Form or related materials in City's or Oregon Business's promotional and informational publications. f. City shall not endorse nor represent to third parties, including to Partner's employees and subcontractors,that City endorses any particular manufacturer, product, system,design, contractor,supplier or installer. g. All of the information and certifications in the Grant Recipient's Project Infrastructure Information Form submitted by the Grantee is valid and accurate. h. Partner shall indemnify, protect, defend,and hold harmless the City and its officers,agents, employees,and members,from any and all claims,suits or actions of any nature,including but not limited to costs and attorney fees,arising out of or related to the activities of the Grant Recipient, its officers,subcontractors,agents or employees under this Grant Agreement If Partner fails to defend or indemnify,the City may, at its option, bring action to compel same or undertake its own defense. In either event, Partner shall be responsible for all of the City's costs,expenses,and attorney fees including the reasonable market value of any services provided by the City's employees. i. The failure of the City to enforce any provision of this grant shall not constitute a waiver by the City of that or any other provision. j. The undersigned warrants and certifies to the City that this Agreement has been executed by the Partner pursuant to its authority,and that the undersigned executes this Agreement on behalf of the Partner pursuant to authority from the Partner. k. Any notice required or that may be given under this Grant Agreement shall be in writing and given to and received by the addressee when delivered, by hand, by courier, by telex,by facsimile copies or by prepaid mail, at the below address,or as such address may be changed from time to time by written notice to the other party: i. City of Tigard:Attn:Community Development Director, 13125 SW Hall Blvd.,Tigard, 97223. ii. Grant Recipient:See name and contact information on Page 1. 1. In the event of any legal action to enforce the terms of this Grant Agreement,the prevailing party shall be entitled to reasonable attorney fees,at trial and on appeal. m. This Agreement constitutes the entire agreement between the parties.There are no understandings,agreements or representations,oral or written,not specified herein regarding this Agreement. n. Partner, by the signature below of its authorized representative,hereby acknowledges that Recipient has read this Agreement, understands it and agrees to be bound by its terms and conditions. [Signature Page to Follow] IN WITNESS WHEREOF,the parties hereto executed this Partnership Agreement. Eligible Applicant: CITY OF TIGARD,an Oregon municipal corporation By: Emily Tritsch,Acting City Manager APPROVED AS TO FORM: City Attorney Partner: REACH COMMUNITY DEVELOPMENT CORPORATION,an Oregon nonprofit corporation By: Margaret Salazar,Chief Executive Officer