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HomeMy WebLinkAboutCity Council Packet - 03/27/2018 Ph Cary of.. i;. TIGARD Tigard Business Meeting—Agenda 6 TIGARD CITY COUNCIL & LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: March 27, 2018 - 6:30 p.m. Study Session; 7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard, OR 97223 PUBLIC NOTICE: Anyone wishing to speak on an agenda item should sign on the appropriate sign-up sheet(s). If no sheet is available, ask to be recognized by the Mayor at the beginning of that agenda item. Citizen Communication items are asked to be two minutes or less. Longer matters can be set for a future Agenda by contacting either the Mayor or the City Manager. Times noted are estimated;it is recommended that persons interested in testifying be present by 7:15 p.m. to sign in on the testimony sign-in sheet. Business agenda items can be heard in any order after 7:•30 p.m. Assistive Listening Devices are available for persons with impaired hearing and should be scheduled for Council meetings by noon on the Monday prior to the Council meeting. Please call 503-718-2419, (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deaf). Upon request, the City will also endeavor to arrange for the following services: • Qualified sign language interpreters for persons with speech or hearing impairments; and • Qualified bilingual interpreters. Since these services must be scheduled with outside service providers,it is important to allow as much lead time as possible. Please notify the City of your need by 5:00 p.m. on the Thursday preceding the meeting by calling: 503-718-2410 (voice) or 503-684-2772 (TDD -Telecommunications Devices for the Deaf). SEE ATTACHED AGENDA VIEW LIVE VIDEO STREAMING ONLINE: http://live.tigard-or.gov CABLE VIEWERS: The regular City Council meeting is shown live on Channel 28 at 7:30 p.m. The meeting will be rebroadcast at the following times on Channel 28: Thursday 6:00 p.m. Sunday 11:00 a.m. Friday 10:00 p.m. Monday 6:00 a.m. 114 I u City of Tigard Tigard Business Meeting—Agenda TIGARD 41. TIGARD CITY COUNCIL & LOCAL CONTRACT REVIEW BOARD MEETING DATE AND TIME: March 27,2018 - 6:30 p.m. Study Session; 7:30 p.m. Business Meeting MEETING LOCATION: City of Tigard-Town Hall- 13125 SW Hall Blvd.,Tigard, OR 97223 6:30 PM •STUDY SESSION A. EXFCUTIVE SESSION: The Tigard City Council will go into Executive Session to discuss acquisition of property,under ORS 192.660(2)(e). All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4), but must not disclose any information discussed. No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 6:30 p.m. estimated time B. COUNCIL LIAISON REPORTS 6:40 p.m. estimated time 1. BUSINESS MEETING 7:30 p.m. A. Call to Order B. Roll Call C. Pledge of Allegiance D. Call to Council and Staff for Non-Agenda Items 2. CITIZEN COMMUNICATION (Two Minutes or Less, Please) A. Follow-up to Previous Citizen Communication B. Tigard Area Chamber of Commerce C. Citizen Communication—Sign Up Sheet 3. CONSENT AGENDA: (Tigard City Council))These items are considered routine and may be enacted in one motion without separate discussion.Anyone may request that an item be removed by motion for discussion and separate action. Motion to: A. PROCLAIM NATIONAL COMMUNITY DEVELOPMENT WEEK B. PROCLAIM APRIL AS ARBOR MONTH C. PROCLAIM PLAY BALL MONTH D. RECEIVE AND FILE •Three-month Council Meeting Calendar •Tentative Agenda of Upcoming Meetings •Annual Municipal Court Report E. APPROVE CITY COUNCIL MINUTES: •January 9,2018 •January 23,2018 •February 6,2018 •Consent Agenda-Items Removed for Separate Discussion:Any items requested to be removed from the Consent Agenda for separate discussion will be considered immediately after the Council!City Center Development Agency has voted on those items which do not need discussion. 4. RECEIVE UPDATE AND AWARD FROM THE HEAL CAMPAIGN RECOGNIZING TIGARD 7:35 p.m. estimated time 5. CONSIDER RESOLUTION REAPPOINTING MEMBERS TO THE COMMITTEE FOR COMMUNITY ENGAGEMENT 7:45 p.m. estimated time 6. LEGISLATIVE PUBLIC HEARING: CONSIDER MODIFICATION TO WASTE COMPACTOR CRITERIA IN TMC CHAPTER 11.04 7:50 p.m. estimated time 7. LOCAL CONTRACT REVIEW BOARD CONSIDERATION OF MOWER PURCHASE 8:00 p.m. estimated time 8. CONSIDER A RESOLUTION GRANTING EXEMPTION FROM PROPERTY TAXES UNDER TMC 3.50 FOR FIVE NON-PROFIT LOW INCOME HOUSING PROPERTIES 8:10 p.m. estimated time 9. CONSIDER AUTHORIZING THE CITY MANAGER TO SIGN AN IGA WITH TVWD AND HILLSBORO FOR TEMPORARY WATER SUPPLY 8:20 p.m.estimated time 10. CONSIDER RESOLUTION TO APPROVE PURCHASE AND SALE AGREEMENT FOR WILLAMETTE INTAKE FACILITY 8:35 p.m. estimated time 11. NON AGENDA ITEMS 12. EXECUTIVE SESSION: The Tigard City Council may go into Executive Session. If an Executive Session is called to order, the appropriate ORS citation will be announced identifying the applicable statute. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions,as provided by ORS 192.660(4),but must not disclose any information discussed.No Executive Session may be held for the purpose of taking any final action or making any final decision. Executive Sessions are closed to the public. 13. ADJOURNMENT 8:50 p.m. estimated time 7111 I , City of Tigard Tigard City Council Meeting Agenda T IGARD March 27, 2018 CITY COUNCIL STUDY SESSION A. EXECUTIVE SESSION 6:30 p.m. estimated time Assistant Public Works Director Wright will present this item. The Tigard City Council will enter into an Executive Session called under ORS 192.660 (2) (e) to discussion property acquisition. All discussions are confidential and those present may disclose nothing from the Session. Representatives of the news media are allowed to attend Executive Sessions, as provided by ORS 192.660(4),but must not disclose any information discussed. No Executive Sessions may be held for the purpose of taking any final action or making any final action or making any final decision. Executive Sessions are closed to the public. B. COUNCIL LIAISON REPORTS 6:40 p.m. estimated time Administrative Items Meeting Cancellations:April 3 and April 10 (lack of items). Council Meeting Calendar March 6* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 13* Tuc3day Council Businc33 Mccting CANCELLED,Lack of quorum 20* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 27* Tuesday Council Business Meeting—6:30 p.m.,Town Hall April 3* Tuesday Council Bu3inc33 Mccting 6:30 p.m.,Town IIall Cancelled,lack of items ..- •.. ---- �, --..-: � -- - -. Cancelled,lack of items 17* Tuesday Council Business/Workshop Meeting—6:30 p.m.,Town Hall 23 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 24* Tuesday Council Business Meeting—6:30 p.m.,Town Hall May 1* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 7 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 8* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 15* Tuesday Workshop Meeting—6:30 p.m.,Town Hall 21 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 22* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 29 Tuesday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium (if needed) Regularly scheduled Council meetings are marked with an asterisk (*) City Council Update March 2018 "? 2- a o/ k Chamber Update Leadership Tigard On March 13, it was Nonprofit Day for the Leadership Tigard class. They heard from the Nonprofit Association of Oregon (NAO) and toured local nonprofits like the Chelsea Hicks Foundation, Broadway Rose Theatre, Cat Adoption Team and engaged in a panel discussion with non-profits including Habitat for Humanity, Breast Friends, NAMI and Tigard Chamber. Education,Advocacy, &Building a Strong Local Economy • 4/11/18— Noon—Leverage and Learn • 4/18/18— 1:15 p.m. —Gov't Affairs and Public Policy Committee Meeting • 4/24/18 7:30-8:45 a.m.—Invest in U @ Broadway Rose Theatre • 11 businesses have joined the chamber in February Promoting Community • Save the Date for Tigard Shining Stars Community Awards Gala Friday 4/27/18, 5:30 p.m. o Award and scholarship winners have been chosen. We will be announcing the winners this week on our website and social media platforms. o We are currently accepting donations for the silent auction. Networking/Visibility Good Morning Tigard (GMT),Thursday A.M. Networking 7:30 a.m.—Weekly 3/29—Hosted by Hilton Garden Inn, 4/5— Hosted by Crowne Plaza, 4/12 - Hosted by the City of Tigard,4/19— Hosted by The Transformative Leader and 4/26—Hosted by Tigard Tire and Auto G.E.T. Connected After Hours hosted by Beach Hut Deli 4/17/18 5-630 p.m. Details at http://business.tigardchamber.org/events/calendar/follow us on Twitter @tigardchamber Tigard Farmers Market Update Opening Day will be May 6th, 2018! The market will be moving to Burnham Street at Main. We will have the Market Sprouts Kids Club, Music at the Market,the Community Booth and will be doing the SNAP Matching program again this year thanks to a generous grant from TWSCD. TDA Downtown Updates Save the date for Art Walk 2018 June 1st through 3`d. We will be doing a call for artists and release more details soon. The Tigard Downtown Alliance hired an Art Walk Coordinator. Pop Up Gallery will be in conjunction with Tigard Farmers Market on Sunday June 3rd at Tigard Taphouse. TDA just landed a $35K grant from WCVA for artistic interpretive elements in the Tigard Street Heritage Trail. Find us on Facebook at exploredowntowntigard and at www.exploredowntowntigard.com. Follow us on Twitter @Tigarddowntown and on Instagram at downtowntigard 5555 atalP TDA TIGARL Leadership Tigard IN FARmE RS C4AM82R Of COMMERCU AGENDA ITEM NO. 2 C - CITIZEN COMMUNICATION DATE: March 27, 2018 (Limited to 2 minutes or less,please) The Council wishes to hear from you on other issues not on the agenda and items on the agenda, but asks that you first try to resolve your concerns through staff. This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony becomes part of the public record. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. NAME,ADDRESS & PHONE TOPIC STAFF Please Print CONTACTED Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. Name: Also,please spell your name as it sounds,if it will help the presiding officer pronounce: Address City State Zip Phone No. CITIZEN COMMUNICATION \\Client\I$\ADM\CITY RECORDERS\000 City Recorder-Records Resources and Policies\CCSignup\2018\citizen communication 180102.doc AIS-3451 3.A. Business Meeting Meeting Date: 03/27/2018 Length (in minutes):Consent Item Agenda Title: Proclaim National Community Development Week Prepared For: Joanne Bengtson,City Management Submitted By: Joanne Bengtson,City Management Item Type: Receive and File Meeting Type: Proclamation Public Hearing: No Publication Date: Information ISSUE Should Mayor Cook issue a proclamation in support of Community Development Week? STAFF RECOMMENDATION / ACTION REQUEST N/A KEY FACTS AND INFORMATION SUMMARY The CDBG program is celebrating its 44th anniversary this year. In Washington County,the CDBG and HOME programs have successfully aided cities in providing affordable housing,vitally needed public services, neighborhood improvements and reconstruction of city-owned infrastructure projects. With the program facing critical cuts at the federal level,it's important to remind residents and congressional delegates of all the good these programs have done in our community. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION The Mayor has issued this proclamation annually for years. Since its inception, the city has received $3,834,055 in CDBG funding that has contributed to sidewalk improvements, Senior Center building improvements,sewer and road repairs and more. Attachments Community Development Week 1111 i cit)of Tigard National Community Development Week April 2 - 6, 2018 WHEREAS,the week of April 2-6,2018 has been designated as National Community Development Week by the National Community Development Association to celebrate the Community Development Block Grant(CDBG)Program and the Home Investment Partnerships(HOME)Program;and WHEREAS,the CDBG program has successfully demonstrated its ability to help our community provide much-needed public services for economically,mentally or physically disadvantaged residents,construction/renovation of community gathering places and reconstruction of city-owned infrastructure and completion of neighborhood improvements including major sewer,drainage and street projects;and WHEREAS,the HOME Investment Partnerships Program provides funding to local • communities to create decent,safe and affordable housing opportunities for low-income persons. Nationally,over one million units of affordable housing have been completed using HOME funds;and x,. WHEREAS,over the programs'history,the Tigard community has received nearly$4 million in CDGB funds making our city a better place to live,work and play;and NOW THEREFORE BE IT RESOLVED THAT I,John L.Cook,Mayor of the City of Tigard, Oregon,do hereby proclaim the week of April 2-6,2018 as Via! NATIONAL COMMUNITY DEVELOPMENT WEEK in Tigard,Oregon and urge Congress and the Administration to recognize the outstanding work being done locally and nationally by CDBG and HOME Investment Partnerships t . Programs by supporting increased funding for both programs in FY2019. Dated this day of ,2018. • IN WITNESS WHEREOF,I have hereunto set my hand and caused the Seal of the City of Tigard to be affixed. John L. Cook, Mayor City of Tigard Attest: - City Recorder AIS-3453 3. B. Business Meeting Meeting Date: 03/27/2018 Length (in minutes):Consent Item Agenda Title: Proclaim April as Arbor Month Prepared For: Joanne Bengtson,City Management Submitted By: Joanne Bengtson,City Management Item Type: Receive and File Meeting Type: Proclamation Public Hearing: No Publication Date: Information ISSUE Should Mayor Cook proclaim April as Arbor Month in Tigard? STAFF RECOMMENDATION / ACTION REQUEST N/1 KEY FACTS AND INFORMATION SUMMARY The city organizes events all month long in support of Arbor Day. Issuing a proclamation supports the efforts of staff and community members to convey the important role trees play in a healthy community. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION The Mayor has issue this proclamation annually for more than two decades. Attachments Arbor Month Proclamation R .. i':.1 ----1(' -- "Iiiii A1114,---. - ' -V- ‘ ''AL.•-• -' -° ' . '-: ..., - „,,, . 4— ) ti-- -lit' ' ' '. --.:CA.1"L., � . -,--i--..'-, sss els+a+e n.aw. •,,,,:„'-.;•,.;.rna e._.k.::',„-‘..t';'::°:„', 1 p - Ift:i' -\q; 7( \ I _ .K. • J ( 1 I t'; NI'tigaal x ARBOR MONTH , ',l—r4/7?,:, Whereas, In 1872,Arbor Day,a special day set aside for the planting of trees,was i first celebrated in Nebraska;and %:' wi Whereas,Tigard's urban forest is part of a larger ecology that spans from mountains ol� II to ocean and is integral to our region's environmental quality; and I' 14t1A- :',-1-'"---: =ui " - l, Whereas,our urban forest includes a diversity of public and private trees that grace %-1?-1'7,11 our streets,yards, parks and greenways, provide habitat for wildlife, soften �� r �{_ hardscapes, clean the air, protect water resources, and ensure that everyone can experience natural beauty where we live,work and play;and �. -�hE Whereas,the City of Tigard recognizes that our urban forest is a necessity and is an . ice' °, integral part of the city's infrastructure; and 1,, ,,,_ I Whereas,we are committed to providing resources to maintain and enhance the t �� I ' urban forest; and "I'44114.-; it Whereas, people of all ages and backgrounds, including citizens, civic organizations, sl _ '"`0 .1 businesses,and government agencies, have formed partnerships to participate _• `' actively in the stewardship and caretaking of Tigard's urban forest. zi .. t NOW THEREFORE BE IT RESOLVED that I,John L.Cook, Mayor of the City of Tigard,Oregon,do hereby proclaim the entire month of April 2018 as, l .-- .`Y ' "= ARBOR MONTH '4ls;F. { is in Tigard,Oregon and encourage people throughout the city to become more ID I 'xta involved with the planting and stewardship of the urban forest throughout 2018. _ '31 Dated this day of 2018 IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the �$ 4 City of Tigard to be affixed. ' i., l i �' °, - ----4„.0,1z :tr:3,4:''' , K''''el John L. Cook, Mayor , City of Tigard 7 _ ,' I Attest: i - l City Recorder 5 l iii 0 t. 1 AIS-3452 3. C. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): Consent Item Agenda Title: Proclaim April as Play Ball Month Prepared For: Joanne Bengtson, City Management Submitted By: Joanne Bengtson, City Management Item Type: Receive and File Meeting Type: Proclamation Public Hearing: No Publication Date: Information ISSUE Should Mayor Cook proclaim April as Play Ball Month in Tigard? STAFF RECOMMENDATION / ACTION REQUEST N/A KEY FACTS AND INFORMATION SUMMARY This is the third year that Tigard has partnered with the United States Conference of Mayors and Major League Baseball to proclaim "Play Ball" month in the city. This joint program from MLB and USA Baseball focuses on the fun nature of baseball and encourages widespread participation in baseball-related activities. In 2017, nearly 300 cities in the US and Puerto Rico pledged to engage youth in events supporting our national pastime. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION 2018 will be the 4th year the city has participated in this partnership. Attachments Play Ball Month y _ Y j au r t S -.F./ �� t' ♦l:sn+a an.ITf16lttF ,.m fffff llNf►fOMbH �Mn w �ffe•� t • L c• L rya ..war •p. •nww �aaw l aa+.t•. _. I: XVY !! I� t ice! 1 - 1--"/ ' 1 fr) ' int0 10 ar '''it . Gin ajTigar<i �' -.' PLAY BALL MONTH -- #�,�a I; Whereas, Mayor Cook is proud to partner with the United States Conference of n -:;T,,-0-1,1i LI Mayors and Major League Baseball to recognize April as Play Ball month in Tigard; 1i t4,;-'47'- x �„` and I i Whereas,during"Play Ball Month,"Mayors across the nation are celebrating baseball ,i y with the goal of strengthening bonds between families and communities through (_ { '' `- ! baseball-related activities; and Whereas, playing catch, running bases in the backyard, playing a game during a = ' family gathering or as part of park and recreation activities reinforces the fun and 'k €i sense of belonging that baseball has brought to Americans for decades;and t "i444 f. R1 ij ' Whereas, in keeping with the enjoyment to be found in our national pastime, Opening li -9.0.4,,,,xt 1. j,yDay for Tigard Little League(April 7, 2018)signals the beginning of a season of l:, #: • p enjoyment in city parks and school fields;and Lt oft < 1=..� 't Whereas,the Tigard City Council and residents recognize the importance and - ;" :It influence of the sport of baseball and support its ability to produce countless family and : - w community bonding experiences for a diversity of cultures which reinforces its label as 1: C. America's Pastime. ;' ',,•#,..'' I NOW THEREFORE BE IT RESOLVED that I,John L.Cook, Mayor of the City of ,µ, Tigard,Oregon,do hereby proclaim the month of April 2018 as, " a l ,_ Ti.,,..,-- ` PLAY BALL MONTH _� �_ s/ is in Tigard, Oregon and encourage people throughout the city to recognize the influence the sport of baseball has had in teaching life lessons of teamwork, perseverance, a • leadership and sportsmanship to people of all ages and how it continues to be a part of '1 ^� Tr:"-- Iii i4 the fabric of our community. ;I Orli! �l Dated this day of 2018 •.1 ;i , -..;-pli I `.- '-''','', .. l:I IN WITNESS WHEREOF, I have hereunto set my hand and caused the Seal of the I t'tf', { `I City of Tigard to be affixed. n =i John L. Cook, Mayor �'� ' , ' : City of Tigard o "31{"a : Attest: ° e I a 34�� S N,';,'...-t. itCarol Krager, City Recorder ':r .,, i f ."�+ jp i Itis ,,IS ,k "-,-A,.......'F -x.,.6 AIS-3455 3. D. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): Consent Item Agenda Title: RECEIVE AND FILE ITEMS Submitted By: Carol Krager, Central Services Item Type: Motion Requested Meeting Type: Consent - Receive and File Public Hearing: No Publication Date: Information ISSUE Shall council accept these Receive and File items as part of the March 27, 2018 Consent Agenda? STAFF RECOMMENDATION /ACTION REQUEST Approve the Receive and File Items KEY FACTS AND INFORMATION SUMMARY The three-month council meeting calendar and the tentative agenda are monthly receive and file items. The Municipal Judge's annual report was recommended to be a receive and file item beginning in 2018. OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Three-month Calendar Tentative Agenda Annual Court Report 111 . Ng MEMORANDUM TIGARD TO: Honorable Mayor& City Council FROM: Carol A. Krager, City Recorder RE: Three-Month Council Calendar DATE: March 20,2018 Below is a listing of council meetings for the next three months. Regularly scheduled Council meetings are marked with an asterisk(*). March 6* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 13*Tucsday Council Busincaa Meeting 6:30 p.m.,Town Hall Cancelled 20* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 27* Tuesday Council Business Meeting—6:30 p.m.,Town Hall April 3* Tucsday Council Business Meeting 6:30 p.m.,Town Hall Cancelled 10*Tuc3day Council Busincs3 Meeting 6:30 p.m.,Town Hall Cancelled 17* Tuesday Council Business Workshop Meeting—6:30 p.m.,Town Hall 23 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 24* Tuesday Council Business Meeting—6:30 p.m.,Town Hall May 1* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 7 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 8* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 15* Tuesday Council Workshop Meeting—6:30 p.m.,Town Hall 21 Monday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium 22* Tuesday Council Business Meeting—6:30 p.m.,Town Hall 29 Tuesday Budget Committee Meeting-6:30 p.m.,Public Works Auditorium(if needed) is\adm\city council\council calendar\3-month calendar word format.doc Meeting Banner 0 Business Meeting 0 Study Session 0 Special Meeting 0 Consent Agenda 0 Meeting is Full Workshop Meeting 0 City Council Tentative Agenda 3/21/2018 3:59 PM - Updated Form Meeting Inbox or Submitted By Meeting _ Title Department Date Type Finalized 3319 04/03/20181 Kelly Burgoyne AAA April 03, 2018 Business One Meeting - MEETING CANCELLED 3320 04/10/2018 Kelly Burgoyne AAA April 10, 2018 Business Meeting - MEETING CANCELLED 3321 04/17/2018 Kelly Burgoyne AAA April 17, 2018 Workshop / Business Meeting Combo 3447 04/17/2018 Schuyler CCWKSHOP 1 20 Minutes - Update on Tigard Street Community Patton, J., Administrative Sp Warren Heritage Trail Development 3397 04/17/2018 Margaret Reh CCWKSHOP 2 30 Minutes - Joint Meeting between Tigard Library Reh, M, Conf. Exec. Assistant Library Board and the Tigard City Council 3433 04/17/2018 Schuyler CCWKSHOP 3 45 Minutes - Update on Regional Affordable Community Warren S, Associate Planner Warren Housing Bond Development 3355 04/17/2018 Kelly Burgoyne CCWKSHOP 4 10 Minutes - LCRB - Placeholder Finance and Barrett J, Sr Mgmt Analyst Information Services Total Time: 105 Minutes of 180 Minutes Scheduled I I 04/23/2018 April 23, 2018 Budget Committee Meeting - 6:30 p.m. 3322 04/24/2018 Kelly Burgoyne AAA April 24, 2018 Business Meeting 3302 04/24/2018 Schuyler ACCSTGUDY 1 20 Minutes - Development Code Policy and Community Warren S, Associate Planner Warren Procedures Phase II Update Development 3440 04/24/2018 Kelly Burgoyne ACCSTUDY 2 15 Minutes - Council Liaison Reports Central 02/26/2018 Services Total Time: 35 Minutes of 45 Minutes Scheduled 3357 04/24/2018 Kelly Burgoyne CCBSNS 1 10 Minutes - LCRB - Placeholder Finance and Barrett J, Sr Mgmt Analyst 1I 1) I:\ADM\CITY RECORDERS\TENTATIVE AGENDA\March 26, 2018.docx Meeting Banner 0 Business Meeting 0 Study Session 0 Special Meeting 0 Consent Agenda 0 Meeting is Full Workshop Meeting 0 City Council Tentative Agenda 3/21/2018 3:59 PM - Updated Information Services 3422 04/24/2018 Kent Wyatt CCBSNS 2 15 Minutes - Receive Report from the Youth City Wyatt K, Management Analyst Advisory Council About the National League of Management Cities Conference 3431 04/24/2018 Steve Kang CCBSNS 3 20 Minutes - Informational Public Hearing to Finance and Consider Approval of Resolution for the FY2018 Information Third Quarter Budget Supplemental Services 3461 04/24/2018 John Goodrich CCBSNS 4 20 Minutes - Approve an Agreement with Public Works Goodrich J, Division Manager Lake Oswego Finalizing Land and Easement Partnership Allocation Total Time: 65 Minutes of 100 Minutes Scheduled 3323 05/01/2018 Kelly Burgoyne AAA May 01, 2018 Business One Meeting Joanne Consent Item - Proclaim May 6-12 as City 3457 05/01/2018 Bengtson ACONSENT Municipal Clerk Week Management 03/19/2018 Finance and 3358 05/01/2018 Kelly Burgoyne CCBSONE 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services Total Time: 10 Minutes of 100 Minutes Scheduled 05/07/2018 May 07, 2018 Budget Committee Meeting 6:30 p.m. May 08, 2018 Business Meeting - Mayor 3324 05/08/2018 Kelly Burgoyne AAA Cook Absent 3441 05/08/2018 Kelly Burgoyne ACCSTUDY 1 15 Minutes - Council Liaison Reports Central 02/26/2018 Services Total Time: 15 Minutes of 45 Minutes Scheduled Finance and 3359 05/08/2018 Kelly Burgoyne CCBSNS 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services 3449 05/08/2018 Steve Martin CCBSNS 2 10 Minutes - Update to the Tigard Municipal Public Works Martin S, Division Manager 2 I P a ar c I:\ADM\CITY RECORDERS\TENTATIVE AGENDA\March 26, 2018.docx Meeting Banner ❑ Business Meeting 0 Study Session ❑ Special Meeting n Consent Agenda ❑ Meeting is Full r Workshop Meeting ❑ City Council Tentative Agenda 3/21/2018 3:59 PM - Updated Code Chapter 2.12 3450 05/08/2018 Steve Martin CCBSNS 3 5 Minutes - Update to the Park and Public Works Martin S, Division Manager Recreation Advisory Board Bylaws 3437 05/08/2018 Lina Smith CCBSNS 4 20 Minutes - Quasi-Judicial Public Hearing: Community Smith L, Asst Planner Shelby Annexation (ZCA2018-00001) Development Total Time: 45 Minutes of 100 Minutes Scheduled 3325 05/15/2018Kelly Burgoyne AAA May 15, 2018 Workshop Meeting 05/21/2018 May 21, 2018 Budget Committee Meeting 6:30 p.m. 3326 05/22/2018 Kelly Burgoyne AAA May 22, 2018 Business Meeting 3442 05/22/2018 Kelly Burgoyne ACCSTUDY 1 15 Minutes - Council Liaison Reports Central 02/26/2018 • Services Total Time: 15 Minutes of 45 Minutes Scheduled Finance and 3360 05/22/2018 Kelly Burgoyne CCBSNS 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services 3401 05/22/2018 Ken Ross CCBSNS 2 10 Minutes - Placeholder for Proposed Code Community Ross, K, Code Compliance Officer Changes for Chapter 6 Development Total Time: 20 Minutes of 100 Minutes Scheduled 05/29/2018 May 29, 2018 Budget Committee Meeting 6:30 p.m. - IF NEEDED 3327 06/05/2018 Kelly Burgoyne AAA June 05, 2018 Business One Meeting Finance and 3361 06/05/2018 Kelly Burgoyne CCBSONE 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services Total Time: 10 Minutes of 180 Minutes Scheduled 3328 _06/12/2018 Kelly Burgoyne AAA June 12, 2018 Business Meeting 3443 06/12/2018 Kelly Burgoyne ACCSTUDY 15 Minutes - Council Liaison Reports Central 02/26/2018 Services 3I Pag I:\ADM\CITY RECORDERS\TENTATIVE AGENDA\March 26, 2018.docx Meeting Banner 0 Business Meeting 0 Study Session 0 Special Meeting Consent Agenda 0 Meeting is Full Workshop Meeting 0 City Council Tentative Agenda 3/21/2018 3:59 PM - Updated Finance and 3362 06/12/2018 Kelly Burgoyne CCBSNS 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services Total Time: 10 Minutes of 100 Minutes Scheduled June 19, 2018 Workshop / Business 3329 06/19/2018 Kelly Burgoyne AAA Combo Meeting 1 15 Minutes - Informational Public Hearing: Finance and Consider Adoption of Master Fees and Charges 3408 06/19/2018 Liz Lutz CCWKSHOP Schedule Replacing Resolutin NO. 17- and Information Lutz L, Conf Exec Asst Subsequent Amendments Services 2 60 Minutes - Informational Public Hearing: Finance and Adoption of the Budget, Making Appropriations 3409 06/19/2018 Liz Lutz CCWKSHOP Declaring Ad Valorem Tax Levy and Classifying Information Lutz L, Conf Exec Asst the Levy as Provided Services 3 10 Minutes - Informational Public Hearing: Finance and 3410 06/19/2018 Liz Lutz CCWKSHOP Adopt the TCDA FY 2019 Budget with Liz Lutz Information Lutz L, Conf Exec Asst Adjustments, Make Appropriations, and Impose Services and Categorize Taxes 4 10 Minutes - Consider Resolution Certifying Finance and 3406 06/19/2018 Liz Lutz CCWKSHOP that the City of Tigard Provides Services Information Lutz L, Conf Exec Asst Qualifying for State-Shared Revenues Services 5 10 Minutes - Consider Resolution Declaring Finance and 3407 06/19/2018 Liz Lutz CCWKSHOP the City's Election to Reeive State Shared Information Lutz L, Conf Exec Asst Revenue Sharing Services Total Time: 105 Minutes of 180 Minutes Scheduled 3331 06/26/2018 Kelly Burgoyne AAA June 26, 2018 Business Meeting Central Services 3444 06/26/2018 Kelly Burgoyne ACCSTUDY 15 Minutes - Council Liaison Reports Central Services 02/26/2018 Total Time: 15 Minutes of 45 Minutes Scheduled Joanne Consent Item - Proclaim July as Parks and City 3454 06/26/2018 Bengtson ACONSENT Recreation Month Management 03/12/2018 4 I 1' I:\ADM\CITY RECORDERS\TENTATIVE AGENDA\March 26, 2018.docx Meeting Banner 0 Business Meeting 0 Study Session 0 Special Meeting 0 Consent Agenda 0 Meeting is Full Workshop Meeting 0 City Council Tentative Agenda 3/21/2018 3:59 PM - Updated Finance and 3363 06/26/2018 Kelly Burgoyne CCBSNS 1 10 Minutes - LCRB - Placeholder Information Barrett J, Sr Mgmt Analyst Services Total Time: 10 Minutes of 100 Minutes Scheduled Budget Committee Meeting Dates: Monday,April 23,2018–6:30 p.m. Monday,May 7,2018–6:30 p.m. Monday,May 21,2018–6:30 p.m. Tuesday,May 29,2018–6:30 p.m. - If needed— Council Confirmed Travel&Vacation Dates: Councilor Goodhouse March 27 (Out) Mayor Cook May 8 (DC Conference) Marty Wine May 1-4 (OCCMA NW Regional Mgr Mtg) Eric Zimmerman May 1-4 (OCCMA NW Regional Mgr Mtg) Mayor June 7-12 (US Conf. of Mayors,Boston) Eric Zimmerman June 15-22 (Vacation) Marty Wine July 10-13 (OCCMA Summer Conf.) 5 I .1 c I:\ADM\CITY RECORDERS\TENTATIVE AGENDA\March 26,2018.docx City of Tigard TIGARD Memorandum A To: Honorable Mayor and City Council From: Michael J. O'Brien,Presiding Judge Brenda Annis, Court Operations Supervisor Re: 19th Annual Report from Tigard Municipal Court Date: March 7, 2018 We are pleased to present our 19th annual review of Tigard Municipal Court operations to Council. 1. Highlights of 2017: • The court's traffic diversion program recorded 1,156 participants during 2017, or about 23% of the court's total caseload.The compliance rate remained very high, with 86.8% of participants completing all requirements.Those who succeed receive the benefit of further education in traffic safety and dismissal of their citations. • The court's total caseload of 4,927 represented a decline of approximately 13% compared to 2016.The number of speeding violations declined by 39% since 2016, while the number of license-related violations increased. • The court continues to promote efficient disposition of cases and high service levels by prioritizing the use of electronic resources,including email communication and electronic payments. • The court recruited a court clerk,restoring authorized staffing levels, and two pro- tein judges.The judge and court staff took part in professional education programs sponsored by the Oregon Department of Transportation, the Oregon Municipal Judges'Association and the Oregon Association for Court Administration.The judge and Central Services Director represented the court and distributed materials in Spanish during the Latino Information Festival at the Tigard Public Library. The judge continued to submit a monthly column to the Cityscape newsletter. 2. Traffic Diversion Program:With the exception of cellphone violations, the court's diversion program continued through its second full year as authorized by Council in mid-2015. Eligibility is based on a simple standard: no convictions or diversion programs within the previous five years. Offenders who opt for diversion are referred to various traffic-safety classes in the metro region;their citations are dismissed upon proof of completion and payment of required fees to the court. The court fee is equivalent to the minimum fine that would otherwise be imposed. Legislative action during 2017 affected one aspect of the diversion program: cellphone violations.With the passage of HB 2597, state law on the unlawful use of mobile electronic devices was substantially revised, effective October 1st. Penalties were increased and a third conviction in ten years was enhanced to a traffic crime.Violators are ineligible for any diversion program that would result in dismissal. However, fines for a first offense may be waived upon completion of a distracted-driving class certified by ODOT. The Tigard Police Department has elected not to seek state certification and its distracted-driving program has been discontinued. The court now refers eligible defendants to the certified classes conducted by U-Turn 180. Diversion otherwise remains a popular option for eligible defendants. About one quarter of the court's caseload enrolls in a diversion program, and the compliance rate is 86.8%. The classes conducted by Choices I and AARP are the most frequent programs utilized by the court, receiving about 79% of all referrals. Upon proof of compliance with vehicle equipment laws, the court generally dismisses those citations upon payment of a $40 administrative fee. In response to other legislative changes,the court adjusted its diversion program for cases involving minors in possession of alcohol or marijuana. 3. 2017 Caseload(Table 1): The court adjudicated 4,927 traffic,parking, criminal and civil cases, about 13%less than in 2016. The total reflects a continuing decline in caseload in recent years. Table 1 -Annual Court Caseloads CY 2013-17 2017 4,927 2016 5,672 2015 5,990 2014 6,675 2013 7,180 The court's caseload has averaged 6,089 violations annually during the last five years. 2 The vast majority of the caseload involved traffic violations under the Oregon Vehicle Code and Tigard city ordinances. The most common types of violations were: Table 2—Violation types 2016-17 Violation 2017 2016 Speeding 1,530 2,510 Cellphones 225 301 Traffic control* 622 678 Driver's licenses** 638 455 Total 3,015 3,944 of caseload 61% 70% *Trafc signals and stop signs **Driving ET hile Suspended and No Operator's License The number of speeding violations declined dramatically (by 39%) compared to 2016, while citations for license violations increased. Defendants who demonstrate compliance with licensing and insurance requirements receive lesser sanctions. The court's monthly caseloads averaged 411 during 2017,with a high of 538 in March and a low of 251 in January. 4. Disposition of cases in 2017:As in previous years,more than two-thirds of citations result in convictions entered by the judge or court staff.A large majority of dismissals result from successful completion of a diversion program. Table 3—Dispositions 2017 Types Percent Guilty by judge 20 Guilty by clerk 29 Guilty by default 17 Acquit/dismiss* 28 Other 5 *Includes diversions 5. New legislation: As mentioned previously, Oregon's new law on mobile electronic devices (HB 2597) enhanced penalties for violations and criminalized third and subsequent convictions. In other action,the legislature increased presumptive fines by $5, effective January 1, 2018. The court adjusted its fine schedules accordingly. 6. CY 2017 fiscal highlights: • Total fines and fees imposed: $864,364, or 10%less than in 2016—a decline roughly proportional to lower caseloads. 3 • Court staff completed final testing for the implementation of its new collections module,which is designed to make the collections process more efficient and effective. • The total number of e-payments remained fairly stable in 2017,while revenues from that source declined by about 16%. Table 4—Electronic Payments 2016-17 E-Payments 2017 2016 Total$ amounts 198,314 235,735 # of payments 1,899 2,214 Average$payment 104.43 106.47 7. Sta.ff development and activities: With Council approval,the court appointed Emily Oberdorfer and Erin Kirkwood to serve as pro-tem judges on an as-needed basis.After about six months of understaffing, an experienced applicant,Holly Fenton,was retained as a Court Clerk II in October. She joins Rebecca Winchell,also a Court Clerk II,in our front office, returning the court to authorized staffing levels. Brenda Annis,who has served the City as a Court Clerk II for 18 years,was promoted to replace the outgoing Court Operations Supervisor. The judge completed his second year as an elected member of the OMJA Board of Directors and served on the committee that organized the OMJA Annual Fall Conference in September. He also attended ODOT's Annual Judicial Education Conference in March and continued his occasional service as a judge in the Tigard Peer Court. The judge and Central Services Director represented the court at the Latino Information Festival at the Tigard Public Library,where they answered questions about the court and distributed brochures and other court materials in Spanish. The judge's monthly column on Oregon law and traffic safety in Tigard continued through its tenth year in the Cityscape newsletter. Recent topics included: Oregon's new cellphone law,pedestrian safety, the functions of municipal courts, the role of judges and court staff,license suspensions, and distracted driving. Court staff attended the Annual Fall Conference of the Oregon Association for Court Administration. Staff also assisted in the development of downtown parking policies by providing information to the Police and Community Development departments. Finally,we again wish to acknowledge the hard work and professionalism of court staff during 2017.We are pleased that the court continues to offer a high level of service to residents of Tigard,police officers,and others who utilize court processes. We are available to respond to any questions you have concerning court operations. 4 AIS-3460 3. E. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): Consent Item Agenda Title: Approve City Council Meeting Minutes Submitted By: Carol Lager, Central Services Item Type: Motion Requested Meeting Type: Consent • Agenda Public Hearing: No Publication Date: Information ISSUE Approve City Council meeting minutes. STAFF RECOMMENDATION / ACTION REQUEST Approve minutes as submitted. KEY FACTS AND INFORMATION SUMMARY Attached council minutes are submitted for City Council approval: •January 9, 2018 •January 23, 2018 •February 6, 2018 OTHER ALTERNATIVES N/A COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS N/A DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments January 9,2018 Minutes January 23,2018 Minutes February 6,2018 Minutes City of Tigard • Tigard City Council Meeting Minutes TIGARD January 9, 2018 STUDY SESSION A. REVIEW THE PROPOSED LAKE OSWEGO-TIGARD WATER PARTNERSHIP OPERATIONS PLAN Utility Manager Goodrich and Water Treatment Plant Manager Kari Duncan gave the staff report for this item. One of the obligations created by the Lake Oswego-Tigard Water Partnership was that an operations manual for the supply facilities be adopted. The oversight committee met on October 18, 2017 and they recommend the respective city councils adopt the plan. He described what is in the plan including daily operational standards,water quality goals,internal and external communications protocol,and emergency procedures,including curtailment. Staff will bring a resolution forward at the January 23, 2018 council business meeting. Councilor Woodard asked about the CMMS and how it dovetails with the budget. Ms. Duncan said the CMMS was developed specifically for the water treatment plant and it tracks equipment repair and timeframe. It is not linked to either city's financial systems. Councilor Woodard asked to see how this works. He asked if Lake Oswego is managing the operations plan and Ms. Duncan said it is written with the current management entity as Lake Oswego but that could change. Mayor Cook said it is a living document and Tigard expects it to change in the future. Council President Snider suggested that while council can live with the current document it needed a comment at the beginning. Utility Manager Goodrich said language will be added to the resolution that states council is adopting the plan but expects governance to change in the future. Councilor Woodard said the key message is that Tigard wants to be an involved partner. B. RECEIVE UPDATE ON PROPOSED LAKE OSWEGO-TIGARD WATER PARTNERSHIP REMAINING PROPERTY BUY-IN Utility Manager Goodrich said this item is a housekeeping item regarding the share of participation Tigard has in the Lake Oswego-Tigard Partnership. He said in 2008, the IGA entered into by both cities determined Tigard's buy-in at 14/38 for properties and assets. The third amendment to the agreement dated December 19, 2013,increased Tigard's allocated capacity from 14/38 share to 18/38 share. Exhibit 6 of that agreement was amended and corrected for Tigard's buy-in costs for the Mapleton Drive property but it did not reallocate costs with the other properties, assets or easements. Lake Oswego asked that Tigard correct the allocation cost buy-in for the remaining assets, properties and easements at the 18/38 share. There will be an additional amendment which will include the Waluga Reservoir land and properties. Mayor Cook said the question is whether to do this now or later. There is money set aside and correcting this now will help keep the records accurate. Council consensus was to do this now. Utility Manager Goodrich will bring a second TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 1 of 8 quarter budget adjustment that includes the costs for the final true-up of Tigard's share. Councilor Woodard added that it is important for the two parties to come together on the governance discussion. Mayor Cook said even with value engineering we did not lose quality or quantity and the project came in under budget. He said staff did an amazing job on this project, the largest Tigard has ever undertaken. Utility Manager Goodrich recognized Lake Oswego project management staff. C. COUNCIL LIAISON REPORTS Council President Snider reported that progress has been made with Durham and the Tigard Water District. He said he will be asking the council for feedback within the next few months. Councilor Woodard said there was discussion at the Tigard Transportation Advisory Commission about the federal funding for the SW Corridor not being available. Mayor Cook said there will be a SW Corridor update for council in March. The Steering Committee will vote in June and then each city council will ratify something but details have not yet been determined. In response to a question from Councilor Woodard, Mayor Cook said the City of Tigard will not fund any of this; there will be a regional match that Washington County will pay. He said an advantage of a delay is that there is more time to educate the public and the federal buy-in will be known. Councilor Anderson noted that the Parks and Recreation Board has some concerns about staffing changes as their assistant program coordinator has left. City Manager Wine said they have requested temporary help to assist the program coordinator this summer. Mayor Cook reported on a presentation he heard on Value Pricing (tolling). ODOT is doing a year- long series of outreach meetings coordinated by former Tigard Senior Transportation Planner Judith Gray, to explore tolling road options, concerns and unintended consequences. He said the ADA is a big topic with the Region 1 Area Committee on Transportation. 26,000 ramps must be installed within 15 years due to a lawsuit. Administrative Items: • City Manager Wine said the council winter outreach was confirmed for Monday, February 12, 2018 at the Summerfield Clubhouse from 6-8 p.m. • In the Clackamas River Water lawsuit the municipalities have prevailed (with conditions). 1. BUSINESS MEETING 7:30 p.m. A. At 7:31 p.m. Mayor Cook called the City Council meeting to order. B. City Recorder Kroger called the roll. Present Absent Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 2 of 8 C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—Councilor Woodard said he had a non- agenda item to bring up at the end of the meeting. 2. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication—Assistant City Manager Zimmerman reported on a response to Mr. Brown regarding a home occupation permit and livability in his neighborhood. City Management and Community Development staffs looked into this and are currently working with the property owner in question. He said the permit is in the process. Mr. Brown's concern was a for a potential future use and Mr. Zimmerman recommends that the neighbors let the process play the course as it appears that it meets the letter of the law for a Type II home occupation permit. B. Tigard High School Envoy—Associated Student Body Vice President Sierra Kruse updated council on Tigard High activities and events,including Human Rights Month with weekly themes and a fundraiser for DACA students. The Spanish Honor Society held a coin drive to assist with hurricane relief. Students finished up their"Give Back" drive for the Caring Closet and St.Vincent DePaul. C. Tigard Chamber of Commerce—Tigard Chamber CEO Mollahan spoke about Chamber activities. Leadership Tigard held Government Day with assistance from Mayor Cook and Councilor Anderson. The Get Connected After Hours will be held at Attwell off Main on January 16 at 5-6:30 p.m. The Tigard Farmers Market will be holding a chalkboard workshop on January 27, 2018 D. Police Department Update—Chief McAlpine said assaults were up from December of last year. She said there was in increase in residential burglaries in December of 2017 from December of 2016 and some of those occurred in homes that were still being built. Transients were involved with some. There was a multi-city robbery spree covering Vancouver to the Salem/Keizer area along I-5 and three of the six men involved have been arrested. Driving under the influence and drug calls have increased significantly but this recognizes that police have had time to do some proactive work. Chief McAlpine said it is encouraging that Tigard's officers are out there making those contacts. She said response time to the most imminent calls (Priority 1 and 2) improved somewhat, from 6.33 minutes in December 2016 to 5.95 minutes in December 2017.There were 1700 calls for service in the month of December compared to 1686 last year. She said a large transient camp was removed from private property. Community Events included Christmas with the Kids with 400 attending,monthly landlord forum, Coffee with a Cop, safety class for kids. Upcoming is an active shooter training with a credit union and loss prevention meetings at Washington Square Mall. Chief McAlpine said the sworn officer budget is for 72 positions but two are vacant. Two are in the police academy and two are on hold. She said she has asked officers to start tracking transient and mental illness holds and in the first eight days of January,police have spent about 50 hours on those two types of calls. She hopes this data will be useful to the homeless task force. TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 3 of 8 E. Citizen Communication—Sign-up Sheet. Art Crino, 14580 SW 126th Avenue,Tigard, OR 97224, said he has lived in Tigard for 51 years. He said he is concerned about sanctuary cities and brought in a booklet reviewing the subject for council. He announced that tomorrow night at the King City Clubhouse John Charles will be speaking about electronic tolling on freeways. He said traffic congestion is expensive and this might be a solution. Mayor Cook noted that he just informed council in the Study Session about a Washington County Coordinating Committee report he heard on tolling. 3. CONSENT AGENDA: (Tigard City Council) — A. RECEIVE AND FILE: 1. Council Calendar 2. Council Tentative Agenda for Future Meeting Topics Council President Snider moved for adoption of the Consent Agenda as presented. Councilor Goodhouse seconded the motion. The motion passed unanimously. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 4. LOCAL CONTRACT REVIEW BOARD—CONSIDER PURCHASE OF PUBLIC WORKS TRUCK CHASSIS Senior Management Analyst Barrett presented this Public Works contract for replacement of truck chassis. They will be purchased from the existing state contract with Landmark Ford. The average age of the trucks being replaced is 14 years. Staff will do a separate request for proposals for boxes to go on these trucks. Council President Snider commented that a typical practice is to remount new boxes on the same chassis and asked why this is not being used. Fleet and Facilities Manager Cole said the equipment is 14 years old and while the city has done a great job maintaining the vehicles, at some time down the road when the boxes would need to be replaced and it would cost effective to update older boxes on a new chassis. Councilor Anderson moved for approval of the purchase as presented. Councilor Goodhouse seconded the motion. The motion passed unanimously. TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 4 of 8 Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ 5. DISCUSS THE CITY'S 2018 FEDERAL AND STATE LEGISLATIVE PRIORITIES Senior Management Analyst Wyatt presented this agenda item and updated council on the 2017 session. He noted that the legislative session in 2018 is a short session and the League of Oregon Cities does not issue legislative priorities for a short session. A few priorities can be removed from last year's list, such as recreation immunity and the state comprehensive funding package. Upcoming issues are the Qualification Based Selection QBS process. Due to the housing crises there are some housing-related items,including a Metro Affordable Housing Measure that place a constitutional amendment before the voters that would allow local governments to partner with private businesses on affordable housing projects funded by general obligation bonds. There is also an increase in the document recording fee at the counties to raise money for those who are homeless or at risk for homelessness. Another issue is Paid Family Leave of up to 12 weeks. Mr. Wyatt asked for council recommendations for Tigard's 2018 legislative agenda. Mayor Cook mentioned he met with Hillsboro,Beaverton and Washington County regarding the QBS process and he supports changes that allow the price to come into the selection process once the starting firms qualify. Senior Management Analyst and Procurement Manager Barrett said while it is not ideal,it would be better with these changes. He noted that the Winterhawks bill relates to minimum wage and requirements by the Canadian provinces. Oregon would need to pass a bill defining amateur athletes so the team could stay. Councilor Woodard requested that staff stays on top of any risks to urban renewal. Redevelopment Project Manager Farrelly said he met with special taxing districts and they are on board with trying to work out ways to make small adjustments to urban renewal law to make is satisfactory to both sides. Mayor Cook said his priorities were QBS,Winterhawks and housing bills. He said he was not an advocate for paid family leave as a city-supported issue. Councilor Woodard said there was a disconnect about the Metro affordable housing item and requested more information. Assistant City Manager Zimmerman replied that when a government entity gets a bond for property they own it. Right now affordable housing is unable to be bonded because the entity would not own the building. This Oregon constitutional amendment would open up the authority to municipalities if they choose to do this in the future. He said the city council has shown interest in affordable housing and putting more tools in the toolbox gives local governments more choices. Mayor Cook asked council if they wished to support it and they supported adding it to their state legislative agenda. TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 5 of 8 Senior Management Analyst Wyatt gave a federal legislative update from the city's lobbying firm CFM. A $200 billion infrastructure package is expected soon and Tigard should have a list of projects ready. One exists but it needs to be updated. It is still unclear what the Attorney General will do about the marijuana issue in states where it is legal. The New Starts transportation funding program is under threat. There is also an issue of restoring advance refunding,which was removed in the tax package. This is a mechanism that local governments use to refinance municipal bonds. He said Information Services and Finance Director LaFrance said the city is not immediately affected by it but it is relevant as yet another tool in the toolbox. Council President Snider said limitations on local and state tax deductions that were included in the tax bill should be addressed as Oregon will have a lot of negative impacts because of this. Mayor Cook and Councilor Anderson agreed with adding that to the list. Mayor Cook said Tigard still needs support for homelessness and police equipment and program funding grants. He suggested listing EPA Brownfields separately as a top issue. This was very helpful on Main Street although the limit for asking was $200,000. The new limit is higher and we have other areas where we could use this clean up. He suggested rewording the SW Corridor project line tying it to the New Starts program. He said Small Starts is still critical. Council President Snider had a formatting request of bullet points instead of a list with commas. Council was supportive of maintaining the New Starts and Small Starts programs, funding for EPA Brownfields Cleanup and getting some projects ready to go for potential federal infrastructure funding. Senior Management Analyst Wyatt will return with the legislative priorities for approval at the January 23, 2018 meeting. 6. COUNCIL CONSIDERATION OF INTERGOVERNMENTAL AGREEMENT BETWEEN TCDA AND CITY Redevelopment Project Manager Farrelly presented this item and said Council is being asked to authorize the City Manager to sign an agreement with the Town Center Development Agency (TCDA) and the City of Tigard for loan terms and the provision of administrative and development services. He said there is an existing agreement that covers the terms of loans but staff wishes to formalize staffing and development services that have been in place since voters approved the City Center Urban Renewal Plan in 2006. Most medium to large urban renewal agencies in Oregon have an IGA that describes the relationship and joint responsibilities between the municipality and the urban renewal agency as two separate agencies that work towards a common goal of revitalization. Council President Snider asked four questions: 1) In what way does this IGA increase the urban renewal areas? Redevelopment Project Manager Farrelly said none. 2) In what ways does it increase the scope of the tax increment financing? Mr. Farrelly said it does not. There are two urban renewal plans that have a list of approved projects the tax increment can be spent on and there is the amount of tax increment that can be spent is also listed. 3) In what ways does this action council is being asked to approve in the agreement decrease council oversight? City Manager Wine responded that in that the City Council serves as the TCDA Board she would say none. 4) In what way does it change the debt ceiling or maximum indebtedness? City Manager Wine said the debt ceiling and maximum indebtedness is set by voter authorization of the districts so there is no change. TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 6 of 8 Councilor Woodard noted there were changes between the previous agenda item summary regarding which tools are used for oversight. Mr. Farrelly responded that the Agency is not running any differently than in the past. He said items needing TCDA Board approval will come before it and the Agency goes through the budget process. Councilor Woodard said tracking large projects is a concern for him. Mr. Farrelly said there used to be more frequent TCDA meetings and there will be more regular TCDA meetings coming up as activity increases. Councilor Woodard asked for project cost breakdowns, outstanding debt and funding source reports. He asked for this to be in the format the city engineer uses for current updates on project status. He requested that staff"show and tell" so people can see how efficiently the urban renewal funds are being spent. He asked that this be delineated in the IGA. Council President Snider agreed that what Councilor Woodard proposed was a good tracking system and will promote transparency and staff can be directed to do this but it did not need to be in the agreement. Councilor Woodard said he would like to look at the City Charter and how the urban renewal agency is organized. City Attorney Rihala noted that council could consider code amendments but a charter change must be referred by council to a public vote. Community Development Director Asher said if council is requesting a different reporting process that is a management issue rather than a governance one,which is what this IGA relates to. He said staff heard council's direction on reporting. Councilor Goodhouse moved to authorize the city manager to sign an IGA between the TCDA and City of Tigard. Council President Snider seconded the motion. Yes No Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ Councilor Goodhouse ✓ Council President Snider ✓ The motion passed unanimously. Mayor Cook convened the Town Center Development Agency. 7. TCDA BOARD CONSIDERATION OF INTERGOVERNMENTAL AGREEMENT BETWEEN TCDA AND CITY Redevelopment Project Manager Farrelly presented this item which is the same IGA council considered, now under TCDA consideration. There was no discussion or questions from the TCDA. Director Goodhouse moved to authorize the Executive Director to sign an IGA between the TCDA and the City of Tigard. Director Anderson seconded the motion. TIGARD CITY COUNCIL/ICDA MINUTES —January 9, 2018 City of Tigard I13125 SW Hall Blvd.,Tigard, OR 97223 I www.tigard-or.gov Page 7 of 8 Yes No Director Woodard ✓ Director Anderson ✓ Chair Cook ✓ Director Goodhouse V Director Snider ✓ Chair Cook reconvened the Tigard City Council. 8. NON AGENDA ITEMS Councilor Woodard said there is a cut wire hanging from an electric pole near the Main Street to Grant Street viaduct trail. It is hanging within arm's reach and he asked for city staff to check it out. 9. EXECUTIVE SESSION At 9:00 p.m. Mayor Cook announced that the Tigard City Council was going into Executive Session to review and evaluate,pursuant to standards,criteria,and policy directives adopted by the governing body, the employment-related performance of the city manager, under ORS 192.660 (2) (i). He said the City Council would adjourn from Red Rock Creek Conference Room after the Executive Session The Executive Session ended at 9:50 p.m. 10. ADJOURNMENT At 9:50 p.m. Councilor Goodhouse moved for adjournment. Council President Snider seconded the motion and all voted in favor. Yes No Councilor Woodard V Councilor Anderson V Mayor Cook V Councilor Goodhouse V Council President Snider V Carol A. Krager, City Recorder Attest: John L. Cook,Mayor Date TIGARD CITY COUNCIL/TCDA MINUTES —January 9, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 8 of 8 City of Tigard Tigard City Council Meeting Minutes January 23, 2018 TIGARD a a STUDY SESSION 6:30 p.m. A. RECEIVE UPDA 1'r, ON PROPOSED OVERBILLING SE FILEMENT CLAIM Utility Manager Goodrich updated council on a proposed overbilling settlement claim for a residential customer who had been overcharged since 2006 for water use. The water meter was inadvertently repaired or had its register head replaced with the wrong size meter. This problem was not discovered until December of 2017. Staff reconstructed the family's actual consumption back to 2006 and the claim settlement makes them whole for consumption billing related to water and sanitary sewer use. The dollar amount of the settlement exceeds the authority of the City Manager to approve as described in the Tigard Municipal Code 12.03 utility billing rules so it will need to come before Council. The settlement is in the amount of$16,959.50 which includes a$1,000 inconvenience fee. Council President Snider asked if staff had apologized to the owners. Mr. Goodrich said they had and the owners were actually relieved to hear why their use was so high. Councilor Goodhouse asked if they had ever received assistance from the Utility Billing Division such as a payment plan. Councilor Woodard recommended figuring what compound interest would be on$1,000. Council President Snider asked how many times the customer contacted staff regarding concerns with their high usage. He also asked how many times staff went to their property to help figure out why their usage was so high. Mr. Goodrich said the customer was failed by staff. Utility Billing was their main contact but the wrong-sized meter was discovered by Public Works. He said the city has over 19,000 water accounts with a wide range of customers. Councilor Woodard said there should be something that flags a crew to go out and check. Mr. Goodrich agreed and said staff has learned from this and shared information that similar meters can have different tops. City Attorney Rihala said the settlement includes a release of claims and a waiver. Council President Snider asked for more analysis to determine any late fees and interest and have it added to the $1,000. TIGARD CITY COUNCIL MEETING MINUTES —January 23, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 1 of 7 Assistant City Manager Zimmerman said staff heard council's intent and Finance and Public Works will work together to determine an inconvenience fee including refunding late notices, shut offs, turn-ons or interest that occurred. This settlement will return to council for approval in February. B. COUNCIL LIAISON REPORTS Councilor Anderson attended the homeless summit meeting in Hillsboro.All mayors and some councilors attended along with members of the faith community. Councilor Woodard said John Charles spoke at the King City Clubhouse on electronic tolling. Also attending was gubernatorial candidate Sam Carpenter. He said the conversation was interesting and suggested council have Mr. Charles present an update to them. He noted that the hanging wire on Main Street near the Fanno Creek Trail he reported recently had been wrapped around the pole and duct taped. City Manager Wine said parks staff identified that it was a PGE issue and they have been notified. Council President Snider said the Audit Committee met and will be presenting the audit results at a February business meeting. He said the auditors became aware of Councilor Woodard's statements that there may be fraud,waste and abuse. They are hyper-sensitive to those concerns and will be reviewing council tapes as they are now obligated to thoroughly investigate such claims. Councilor Woodard said,"It's not a claim;you don't know. Unless you have policies within your company you don't know if you have those things occurring. I'm not claiming anything." Council President Snider said the auditors cannot issue an audited financial statement without investigating further. They will be talking to council. Councilor Woodard said he welcomed a call from them. Councilor Woodard asked who was on the Audit Committee and City Manager Wine said the firm the city hired to do the financial audit is Moss Adams. The Audit Committee also includes liaison Council President Snider, the auditors Moss Adams, and citizen members Ann Elligott,Stephanie Gale and Jeremy Nichols. She said they hire the auditors,review audit findings and recommend any actions to be taken post audit. Administrative Items: • City Manager Wine said Council's winter outreach will be on February 12 at the Summerfield Clubhouse with dessert and coffee. Council will move around the room and talk to residents seated at round tables. Robert Van Vlack will bring the microphone to anyone asking or answering a question. They have asked about two topics specifically, SW Corridor and the potential for a local option levy. There will be a brief staff presentation on each topic. 1. BUSINESS MEETING A. At 7:31 p.m. Council President Snider called the meeting of the Tigard City Council and Local Contract Review Board to order. TIGARD CITY COUNCIL MEETING MINUTES -January 23, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 2 of 7 B. Council President Snider asked City Recorder Krager to call the roll. Present Absent Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook ✓ C. Council President Snider asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—None. 2. CITIZEN COMMUNICATION A. Follow-up to Previous Citizen Communication—There was none. B. Citizen Communication—Sign-up Sheet. No one signed up to speak. 3. CONSENT AGENDA: (Tigard City Council) — A. APPROVE CITY COUNCIL MINUTES: November 7,2017 B. CONSIDER RESOLUTION APPOINTING MEMBERS OF THE HOUSING OPTIONS TASK FORCE Resolution No. 18- 04 A RESOLUTION APPOINTING MEMBERS OF THE HOUSING OPTIONS TASK FORCE Councilor Woodard moved for adoption of the Consent Agenda as presented. Councilor Anderson seconded the motion and all voted in favor. Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook (Absent) TIGARD CITY COUNCIL MEETING MINUTES —January 23, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 3 of 7 4. LOCAL CONTRACT REVIEW BOARD—CONSIDERATION OF ADA SELF- EVALUATION AND TRANSITION PLAN DEVELOPMENT CONTRACT Senior Management Analyst Barrett and Central Services Director Robinson presented this agenda item. The contract is for specialized consultant services for a self-evaluation and development of a transition plan. A civil rights law prohibits discrimination against disabled people and the city's original Americans with Disabilities (ADA) plan dates from 1993. In 1999 and 2000 the city performed a self-evaluation and transition plan for buildings and parks. A lot of changes have occurred since then not only in the law but in the programs and services the city provides. The consultant will work with staff and a focus group. When complete, the recommendations will move the city closer to being a city where all ages and abilities enjoy healthy and interconnected lives. Senior Management Analyst Barrett said a QBS process in November attracted four proposals. Staff chose to negotiate with the top-ranked firm,MIG, Inc. The total contract is $220,000. $200,000 is budgeted and staff will be requesting an additional$20,000 for extra work. Councilor Woodard asked if this would be a continuous project and would it get support from the federal government since it is required. Mr. Barrett said the results of the evaluation and how it will be implemented will be identified later. Central Services Director Robinson said the scope includes forming a focus group to help prioritize the program. They will look at programmatic access and cost. Councilor Woodard asked if the city was required to comply. Ms. Robinson replied that in a perfect world the city would remove all barriers,but what is important is continual work with the focus group to make sure the city is working on the most important aspects. Senior Management Analyst Barrett said staff recommends the LCRB approve award of the contract. Councilor Anderson moved for approval of the contract and Councilor Goodhouse seconded the motion. Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook (Absent) Council President Snider announced that the contract was approved unanimously. TIGARD CITY COUNCIL MEETING MINUTES -January 23, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 4 of 7 5. CONSIDER RESOLUTION ADOPTING THE LAKE OSWEGO-TIGARD WATER TREATMENT PLANT OPERATIONS MANUAL Utility Manager Goodrich gave the staff report for this item. Council discussed the operations manual at its January 9,2018 meeting. The manual provides the playbook for the joint ownership and meets the requirements of Article 7 of the Intergovernmental Agreement between the cities of Tigard and Lake Oswego. In the January 9 briefing council requested additional language related to managing authority. Staff added that to the proposed resolution. Councilor Goodhouse asked where that part is located. Utility Manager Goodrich said it is the final whereas clause of the resolution and read it aloud. Councilor Woodard said he had a conflict because he thought the operating manual and managing authority are two separate things. City Manager Wine said the managing authority is a future discussion to be held with partner Lake Oswego for a future governance agreement within three years of completion. The Oversight Committee has been meeting on this topic and it has not been resolved. Utility Manager Goodrich responded to questions from Councilor Woodard on the preventive maintenance system. He noted that the Operations Manual is a higher level document that recognizes protocols are in place. During construction all assets were tracked by Brown and Caldwell and there are robust operating manuals for each piece of equipment. Councilor Woodard moved for approval of Resolution No. 18-05. Councilor Goodhouse seconded the motion. City Recorder Krager read the number and title of the resolution. Resolution No. 18-05—A RESOLUTION OF THE TIGARD CITY COUNCIL-ADOPTING AN OPERATIONS MANUAL RELATING TO AN INTERGOVERNMENTAL AGREEMENT BETWEEN LAKE OSWEGO AND TIGARD-FOR WA 1'hR SUPPLY FACILITIES, DESIGN, CONSTRUCTION,AND OPERATION The motion passed unanimously. Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard V Councilor Anderson V Mayor Cook (Absent) TIGARD CITY COUNCIL MEETING MINUTES —January 23, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov Page 5 of 7 6. FINALIZE THE 2018 FEDERAL AND STATE LEGISLATIVE AGENDA Senior Management Analyst Wyatt gave the staff report on this agenda item. He thanked Councilor Goodhouse for his edits on information about Tigard's legislators. The topics on the state agenda change to Qualification Based Selection (QBS) process and affordable housing which shows support but does not go into specific proposals. He said Mayor Cook brought up the issue on January 9 about the Portland Winterhawks so that has been included. Councilor Anderson concurred with keeping the affordable housing mention vague because programs pop up frequently. He said the language about removing barriers is perfect. Mr.Wyatt said federal recommendations received from lobbyist firm CFM include focusing on infrastructure projects. Projects were the same as the last year's list. The SW Corridor draws emphasis on New Starts and Smart Starts programs. He said this agenda will be beneficial for council members going to Washington DC in March. Council President Snider asked if there was anything specific that council gave feedback on that was not incorporated here and Mr. Wyatt said there was not. Councilor Goodhouse asked about the North Dakota Bridge replacement and City Manager Wine said there is another opportunity for secured funding. Council gave their approval to the federal and state legislative agendas and Senior Management Analyst Wyatt said he would continue to update them during the legislative session. He offered his assistance to those council members going to Washington DC in March. 7. INFORMATIONAL PUBLIC HEARING TO CONSIDER RESOLUTION FOR FY 2018 SECOND QUARTER BUDGET SUPPLEMENTAL Senior Management Analyst Kang gave the staff report and gave council a description of each FY 2018 Second Quarter Supplemental item. The Police Depatinient has two insurance reimbursements, a training budget carryover for courses not completed in FY 2017, and reimbursement for overtime funded by various federal grants. Public Works has three requests. There is a need to replace the 20-year old Tiger Mower which broke down last fall. The second and third requests are for increased costs for the Fanno Creek Sanitary Siphon Project and a carry forward amount. The request carries forward prior year unused appropriations to pay for final Lake Oswego/Tigard Water Partnership invoices for project completion. The Supplemental also makes an adjustment for money accidentally budgeted in the Water Fund which should have been in the Water CIP Fund. Staff recommends approval of the Second Quarter Budget Supplemental. Councilor Anderson moved for approval of Resolution No. 18-06. Councilor Goodhouse seconded the motion. City Recorder Krager read the number and title of the resolution. TIGARD CITY COUNCIL MEETING MINUTES -January 23, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov I Page 6 of 7 Resolution No. 18-06—A RESOLUTION TO ADOPT THE FY 2018 -SECOND QUARTER BUDGET SUPPLEMENTAL- INCLUDING BUDGET ADJUSTMENTS TO PUBLIC WORKS,POLICY AND ADMINISTRATION, AND COMMUNITY SERVICES Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook (Absent) Council President Snider conducted a vote and announced that Resolution No. 18-06 was approved unanimously. 8. NON AGENDA ITEMS None. 9. EXECUTIVE SESSION None scheduled 10. ADJOURNMENT At 8:04 p.m. Councilor Goodhouse moved for adjournment. Councilor Anderson seconded the motion. Council President Snider conducted a vote and announced that the motion to adjourn passed unanimously. Yes No Councilor Goodhouse ✓ Council President Snider ✓ Councilor Woodard ✓ Councilor Anderson ✓ Mayor Cook (Absent) Carol A. Krager, City Recorder Attest: Jason Snider, Council President Date: TIGARD CITY COUNCIL MEETING MINUTES —January 23, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard, OR 97223 www.tigard-or.gov 1 Page 7 of 7 City ofTigard Tigard City Council Meeting Minutes TIGARD February 6, 2018 BUSINESS MEETING A. At 6:34 p.m. Mayor Cook called the meeting to order. B. Deputy City Recorder Burgoyne called the roll. Name Present Absent Mayor Cook J Councilor Goodhouse 4 Council President Snider Councilor Woodard Councilor Anderson C. Mayor Cook asked everyone to stand and join him in the Pledge of Allegiance. D. Call to Council and Staff for Non-Agenda Items—There were none. 2. CITIZEN COMMUNICATION (Two Minutes or Less,Please) A. Follow-up to Previous Citizen Communication—There was none. B. Citizen Communication—Sign-up Sheet. Matt Conwell, 13341 SW Uplands Drive,Tigard,Or 97223,said he and his wife are residents and business owners in Tigard,and he is here speaking on behalf of CERT (Community Emergency Response Team). He recently heard their program may not have funding and reminded council about the importance of CERT and training people on emergency services and said they help save lives. He explained he is more likely to vote yes on a levy if CERT was included as one of the services to be saved. Randall Elliott, 8020 SW Churchill Court,Tigard,Or,97223,appealed to council to continue CERT funding and gave examples of what emergency services CERT provides. He says they lose people all the time and there is a constant need to train new people. TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 1 of 9 Mayor Cook said council is not talking budget tonight,only the local option levy and that they would discuss items like this at the upcoming budget meetings in April and May. He asked if there was anyone else from the audience that would like to speak. Karen Grover, 14339 SW 90th Ave,Tigard,Or 97223,explained that CERT is part of the Tigard/Tualatin School District's Reunification Program and their program relies heavily on CERT. She said they also provide services during the Tigard Balloon Festival with first aid,lost child and lost and found. She said their organization is made up of all volunteers and when they provide services to these events they do not get paid. She talked about the continued training the members of CERT go through and how many members including herself put out their own money for their training. Most of the CERT budget goes into the CERT Basic Program for new members to go through a seven-week training course to become certified. Mayor Cook thanked all the members of CERT for their service and asked what they mean by the CERT program not being included as part of the levy. He explained that tonight's council meeting is to discuss what would be in the levy and what would not be. Ms. Grover said they found the levy proposals on the city's web page and CERT is not listed in any of those proposals. Mayor Cook explained their program is included as part of the 87%restoration of services. Councilor Goodhouse said the 87%restoration of cuts listed in each proposed package is to restore services back to whole that the city has been doing and the CERT program is one of those services. Council President Snider said the CERT program is listed on line three of levy packages A,B, C and D. He explained they are much more likely to have a CERT program if the levy passes and they can help by getting the word out. 3. CONSENT AGENDA: (Tigard City Council) —There was none. 4. CONSIDER RESOLUTION APPOINTING A MEMBER TO THE COMMITTEE FOR COMMUNITY ENGAGEMENT Communications Strategist Owens presented this item and explained that recently two positions on the committee became vacant and the resolution before council is to appoint two new members. He introduced Norma Trujillo and Bhushan Gupta who were in attendance. Councilor Woodard thanked each member for stepping up and applying to be on the committee. Mayor Cook said they had four candidates apply and it was a difficult decision and thanked each of them for applying. Councilor Woodard moved to approve Resolution No. 18-07 and Council President Snider seconded the motion. Motion passed by a unanimous vote. TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 2 of 9 Resolution No. 18-07—A RESOLUTION APPOINTING NORMA TRUJILLO AND BHUSHAN GUPTA TO THE COMMI'TEE FOR COMMUNITY ENGAGEMENT,EACH FOR A TERM OF FOUR YEARS,EFFECTIVE FEBRUARY 7,2018 THROUGH FEBRUARY 29,2022 Name Yes No Mayor Cook Councilor Goodhouse Council President Snider Councilor Woodard Councilor Anderson 5. LOCAL CONTRACT REVIEW BOARD—CONTRACT AWARD—SW WALL STREET IMPROVEMENT PROJECT Finance and Information Services Director LaFrance and Senior Project Engineer Newbury presented this item. Mr. Newbury explained this is for the SW Wall Street Improvement Project that will consist of approximately 2,000 linear square feet of new road,sidewalks,bike lanes, street lighting and new utilities (storm,sewer and water) for existing and new development. He said the project is largely funded by three outside agencies and the remainder of funds from the city have been budgeted in the FY 17/18 budget. Mr.Newbury said the city received nine bids and that Columbia Pacific Construction submitted the lowest responsible bid for the work. He said staff confirmed there is nothing on file with BOLI,Oregon's Construction Contract Board or the Federal System for Award Management. He said the EDA is still reviewing this bid,but staff does not expect any issues. Council President Snider asked if the city has worked with this company in the past. Mr. Newbury said they have not,but staff is confident they can perform the work. Councilor Anderson moved to approve the contract for SW Wall Street Improvement Project and Councilor Goodhouse seconded the motion. Motion was passed by a unanimous vote. Name Yes No Mayor Cook Councilor Goodhouse Council President Snider Councilor Woodard Councilor Anderson 6. LOCAL CONTRACT REVIEW BOARD —CONTRACT AWARD—JOHN DEERE TRACTOR/MOWER Finance and Information Services Director LaFrance and Parks and Facilities Manager Martin presented this item. Mr. Martin explained the current tractor/mower was purchased back in the late TIGARD CITY COUNCIL MEETING MINUTES - February 6, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 3 of 9 80's and recently this piece of equipment broke and staff was unable to make repairs to it as they have been doing in the past. This contract is for a new utility tractor/mower and is being purchased through a permissive cooperative purchase under the State of Oregon Contract. He said this has been budgeted and the funds would come from the Gas Tax Fund. Council President Snider moved to approve the contract and Councilor Goodhouse seconded the motion. Motion was passed by a unanimous vote. Councilor Goodhouse explained there are different funding buckets and this item would be coming from the Gas Tax Fund and wanted the public to know that. Name Yes No Mayor Cook Councilor Goodhouse Council President Snider Councilor Woodard Councilor Anderson 7. CONSIDERATION OF LOCAL OPTION LEVY City Manager Wine and Finance and Information Services Director LaFrance presented this item. Ms.Wine explained staff is looking for feedback and guidance from council and is not looking for council to make a decision tonight. She said staff has curbed the cities spending over the last couple years,however,increased demand for services continues to put a strain on the city's budget. Ms. Wine provided background on the creation of the Levy and Bond Task Force and reminded council the task force had made a unanimous recommendation to council at their previous meeting in support of a local option levy. She said the purpose of tonight is to see if council would like to refer a local option levy to the voters and if so,what services they would like to include and for council then to direct the ballot tide preparation. Ms.Wine gave examples of service packages A,B,C and D;what is included in each package,cost and number of years in which the city can sustain these services. She discussed funding ranges and impact,services the task force most supported, increasing the children programs at the library,need for parks maintenance,affordable housing program,restoring already reduced city services,the Community Emergency Team (CERT) program and increasing recreational community programs and events that are part of the original recreation study vision. She reminded council the safe routes to school program is currently funded through a grant program and if that funding goes away,so would the program. Ms.Wine said in order to say to voters that their tax rate would not change for the next 10 years council will need set aside part of the levy funds in order to keep up with growth. She said if council directs staff to prepare the ballot title and what they would like to include tonight,staff along with the city attorney would bring a draft of the ballot tide to council next week. Councilor Goodhouse explained the dollar amount that would be proposed to the taxpayers would be based off the assessed value of the home vs the market value of the home and that can make a difference when someone tries to figure out what their tax bill would be. He said yes,he would like TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 4 of 9 to refer this to the voters in May 2018 and would like to see$1.18/$1,000 AV,because the city has a budget cycle coming up and city departments have submitted their budget in preparation for budget cuts and would like to see this before voters prior to any budget cuts. He said the city has maintained services at a level of 75 percent,which puts the city behind of where they need to be for a city our size. Councilor Goodhouse said he liked package A with changes made to it,which includes $750,000 for sidewalks,$100,000 for enhanced park maintenance and$250,000 for housing development. Mayor Cook clarified the budget cycle runs from July 1 thru June 30 and staff begins to prepare the budget in December,the budget team then works on it until the middle of April and the Budget Committee works on it until the middle of May and then comes before city council for adoption in June. Mayor Cook asked staff to clarify moving funds from one program to another and having the overall amount be equal,since some of them are one-time funds while others are ongoing throughout the years. He gave the example of installing a new sidewalk and said,this would be a one-time fund vs an ongoing fund like hiring employees. Mr. LaFrance said correct. He said currently as proposed,there would be an annual program for sidewalks,but it would not have the same kind of inflationary pressures the city would have with staff and cost of services as they continue to go up. He explained they can set this dollar figure or vary this by year if needed and would be applied to operating costs, such as police,library and some of the other services listed. Councilor Anderson said he is in favor of supporting what the task force recommended and explained the tax rate for Tigard was frozen back in the1990's. He said most cities around Tigard already have a housing program in place,and he is in favor of$1.18/$1,000 and would like to send it to voters in May. Council President Snider said he would like to see more of what the task force recommended and would like to see $1.25 to$1.50/$1,000,but can live with a$1.18/$1,000. He is supportive of putting this on the May ballot for all the same reasons already discussed,and thinks the city needs to move forward in order to give certainty to the community and staff. He would like to hear more from the other councilors on what services should be included. Councilor Woodard said he is not supportive of placing a levy on the ballot at this time and read a statement explaining his reasons and the need for the city to have a performance audit done prior to asking taxpayers for money. He handed a copy of his statement to the Deputy City Recorder to include in the record. A copy of this is included in the record. Council President Snider asked Councilor Woodard if they were to build in a robust performance audit process into the levy proposal so that it is funded and required,would he then be supportive of a local option levy at this time. He continued to explain that in his experience with performance audits,that even when there are some performance deficiencies,they are not close to whatever the TIGARD CITY COUNCIL MEETING MINUTES—February 6, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 5 of 9 shortfall is. Councilor Woodard replied no. He said he does not believe the performance audit would show a low deficiency. He said he spoke to Moss Adams and found out they have done many different financial audits in scopes,but they are not the same as a performance audit. He is in favor of doing a performance audit regarding oversight,identifying inefficiencies,and then build the tools necessary to begin collecting the inefficiencies,and when that is done,he would be in favor of a local option levy in 2019. He said he would not do something with someone else's money that he would not do with his own and he is standing by his statement. Mayor Cook agreed with the councilors in favor of a local option levy and said he is in favor of the $1.18/$1,000 for the May 2018 election. He stated that back in either 2014 or 2015 it was the budget committee that recommended the city go out for additional funding,and though he did bring this forward at the 2017/18 goal setting meeting,it was because of this budget committee recommendation. He explained in 2010 and 2012 there were major cutbacks in the city,and there are several departments that are still not back up to the number of employees they had prior to those cutbacks. He said the 87 percent restoration figure is only restoring essential services and enhancing some of the others,because that is what they heard from the committee. Councilor Goodhouse explained this is not something new,that the city has been tightening its belt for several years,and though the city has been diligent with its money,they have not let the citizens know the city has been tightening its belt. He said part of the problem occurred back in the 1990's when the city was fixed with a low tax rate. He compared Tigard's tax rate with other surrounding cities and explained most have a higher tax rate than Tigard. He said a performance audit would cost the city money and may not show enough inefficiencies that would pay for the cost of the audit. He agreed that doing a performance audit down the road is a good idea,but the city has a situation now where they need to ask the voters for more funding in order to keep up with the city's growth and the low tax rate they city was locked into back in 1990's. Mayor Cook said the top three areas of service the Bond and Levy Task Force looked at were enhancing police,enhancing park maintenance and sidewalks and safe routes to school. He explained sidewalks have a set dollar amount,however,the others will not. He explained it is difficult to fund partial enhancements in some of these areas,because the city is so far behind. He explained that two years ago the city raised fees in order to gain four additional police officers and open the library on Thursdays. He said the city cannot just keep raising fees and without a levy budget cuts will need to happen. Council President Snider asked the Mayor if he would leave out the housing in package A. Mayor Cook replied he would like to see something for housing by adjusting the figures in other areas,but would like to push forth the services the task force recommended. He said it would be easier if the city had a staff person dedicated to housing to apply for grants,work with Washington County and other organizations and could use GAP Financing. Mayor Cook said the city's intention is not to build government housing,but affordable housing. TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov Page 6 of 9 Council President Snider asked staff if the recreation line in Package C funds the five-year MIG implementation amount fully. Finance and Information Services Director LaFrance said that in order to get to full implementation of the MIG study,it would take approximately an additional $150,000. He said Package C almost gets there,but is a little short. Councilor Goodhouse asked Mayor Cook if altering the dollar figures in Package A to include; $650,000 for sidewalks, $200,000 for parks maintenance,and$150,000 for housing development is more reasonable and would get the city to the ten-year mark. He said this is similar to Package C, but has less money allocated for sidewalks and includes the $150,000 for housing. Mayor Cook said the figures in each proposed package are only estimates and looking out to year eight or ten does not guarantee these figures will be what is needed in those years,because there is no guarantee on future rates or what the economy will do between now and then. In reality,he wants to make sure they go out five-years and get as close as they can with the ten-year projections. Mr. LaFrance clarified these are forecasts and the longer you go out,the more room there is for error. He said what staff is trying to do to the best of their ability is to take the packages and the knowns and put assumptions on them to see if they will be sustainable. He said that as the Finance Director anything that gets the city less than ten-years would need to be more actively managed by the budget committee and council. Council President Snider said after listening to everyone,he would like to propose the following; $750,000 for sidewalks and Safe Routes to School,$150,000 for recreation, $200,000 for parks maintenance, $200,000 for housing,$50,000 for senior and children library programs and $300,000 for police patrol. He said,given the feedback they received,he would like to see more than the $650,000 invested in sidewalks. Councilor Anderson said he was close to what Council President Snider proposed. City Manager Wine said there is enough consensus and council guidance for staff to be able to prepare something for council consideration at their next council meeting. Council President Snider asked if Package A includes CERT. Ms.Wine replied,yes,all packages include this. Mayor Cook convened the Town Center Development Agency meeting. 8. TOWN CENTER DEVELOPMENT AGENCY CONSIDERATION OF A MINOR AMENDMENT TO THE CITY CEN[ER URBAN RENEWAL PLAN Redevelopment Project Manager Farrelly presented this item and explained this is a housekeeping item that removes 1.6 acres of right-of-way from the urban renewal area. He said that in processing the paperwork for the Urban Renewal District boundary,staff noticed the legal description inadvertently included 1.6 acres of right-of-way located in most of Garden Place by Park 217. He TIGARD CITY COUNCIL MEETING MINUTES - February 6, 2018 City of Tigard I 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov I Page 7 of 9 said since this area of right-of-way does not throw out any property tax,this action will have no impact on the financial capacity of the district,and removal of the acreage is considered a minor amendment and can be approved by the board by resolution. The resolution will remove the right- of-way to include the corrected legal description. TCDA Director Woodard moved to approve Resolution No. 18-07 and TCDA Director Goodhouse seconded the motion. Motion passed by a unanimous vote. TCDA Resolution No. 18-01 —A RESOLUTION REMOVING 1.6 ACRES OF RIGHT- OF-WAY FROM THE CITY CENTER URBAN RENEWAL AREA Name Yes No Mayor Cook Councilor Goodhouse Council President Snider Councilor Woodard Councilor Anderson Mayor Cook reconvened the City Council meeting. 9. CONSIDER A RESOLUTION FOR LOCAL ADMINISTRATION OF VERTICAL HOUSING DEVELOPMENT ZONE Redevelopment Project Manager Farrelly presented this item and provided background. Councilor Anderson asked what if they wanted to build five floors. Mr. Farrelly said they can only build up to four floors. Council President Snider moved to approve Resolution No. 18-08 and Councilor Goodhouse seconded the motion. Motion passed by a unanimous vote. Resolution No. 18-08—A RESOLUTION TO ESTABLISH LOCAL ADMINISTRATION OF TIGARD'S VERTICAL HOUSING DEVELOPMENT ZONE AND AMENDING THE MASTER FEES AND CHARGES SCHEDULE TO INSTITU TE ASSOCIATED APPLICATION FEES Name Yes No Mayor Cook Councilor Goodhouse Council President Snider Ni Councilor Woodard Councilor Anderson TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 8 of 9 10. EXECUTIVE SESSION At 8:10 p.m. Mayor Cook announced that Tigard City Council was entering into an Executive Session to discuss real property transaction negotiations,under ORS 192.660(2)(e). He said the City Council will adjourn from the Red Rock Creek Conference Room after the Executive Session. The Executive Session concluded at 8:58 p.m. 11. ADJOURN At 8:58 p.m. Councilor Goodhouse moved to adjourn the meeting and Council Anderson seconded the motion. Motion passed by a unanimous vote. Name Yes No Councilor Anderson Mayor Cook Councilor Goodhouse Council President Snider Councilor Woodard Kelly Burgoyne,Deputy City Recorder Attest: John L. Cook,Mayor Date: TIGARD CITY COUNCIL MEETING MINUTES — February 6, 2018 City of Tigard 1 13125 SW Hall Blvd.,Tigard,OR 97223 www.tigard-or.gov 1 Page 9 of 9 AIS-3448 4• Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 10 Minutes Agenda Title: RECEIVE UPDATE AND AWARD FROM THE HEAL CAMPAIGN RECOGNIZING TIGARD Submitted By: Carol Krager, Central Services Item Type: Receive and File Meeting Type: Council Business Meeting - Main Public Hearing: No Publication Date: - Information ISSUE Receive an update from staff on some of the City of Tigard's progress as a HEAL City (Healthy Eating Active Living Campaign), and receive a certificate from the HEAL Campaign for achieving the highest level a City can attain within the program. STAFF RECOMMENDATION / ACTION REQUEST Staff recommend that the Mayor accept the certificate on behalf of Council and encourage staff to continue working in ways that help increase access to healthy eating and active living in Tigard, and encourage both residents and staff to live healthy and interconnected lives. KEY FACTS AND INFORMATION SUMMARY HEAL Cities is a joint campaign between the Oregon Public Health Institute and the League of Oregon Cities,with funding provided through Kaiser Permanente. The HEAL Campaign is intended to promote policies that will lead to equitable health outcomes and support the overall well-being of families and businesses within our city. The campaign encourages cities like Tigard to take a more proactive approach to the health of our community. Some of the activities of staff and Council which have led to our attainment of the top ranking within the HEAL Campaign include: Smoke and Vape-free Ordinance, which demonstrates Council support for a healthy community by encouraging a healthier environment for residents and visitors in Tigard. Metzeger School Park Project,which provides food access and education through community gardening. This project included working with the local community to help program the park space. Although the project is not complete,the large community garden space,which contains more than thirty garden beds,has been installed and is in full use. Transportation CIP Prioritization,which ensures that compatibility with our Strategic Vision is part of the prioritization process,emphasizing projects that enhance walkability and/or help people of all ages and abilities to enjoy health interconnected lives. Wellness Committee,which programs an annual calendar that includes informational articles and classes or events around wellness topics in addition to coordination of the annual wellness fair and sponsoring mini-competitions to encourage Tigard staff to engage in their own personal health and wellness. OTHER ALTERNATIVES COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS The HEAL City Campaign is in alignment with the City's Strategic Plan to make Tigard more walkable and to encourage people of all ages and abilities to enjoy health and interconnected lives. DATES OF PREVIOUS COUNCIL CONSIDERATION On April 28,2015 Council adopted Resolution No.15-14 setting forth the City of Tigard's commitment to healthy living for the community. The resolution acknowledged Tigard's commitment to join the HEAL Cities Campaign and work toward policies that improve local livability and community health and well-being. Attachments No files)attached. AIS-3458 5. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 5 Minutes Agenda Title: CONSIDER RESOLUTION APPOINTING A MEMBER TO THE COMMITTEE FOR COMMUNITY ENGAGEMENT Submitted By: Carol Kroger, Central Services Item Type: Motion Requested Meeting Type: Council Business Meeting Resolution - Main Public Hearing: No Publication Date: Information ISSUE Shall Council appoint a new citizen representative member to the Committee for Community Engagement to fill a vacancy that opened in March 2018? STAFF RECOMMENDATION /ACTION REQUEST Mayor John Cook and committee liaison Councilor Marc Woodard interviewed Tamera Boring for two vacant positions in January 2018,and she was deemed a strong candidate at that time. Both recommended that Boring be appointed for a four-year term, starting at the committee's next scheduled meeting on April 18, 2018. KEY FACTS AND INFORMATION SUMMARY The Committee for Community Engagement (CCE) is charged with oversight, accountability and policy direction on program design for citywide community engagement activities. There are 15 positions on the CCE. One position is open because one member resigned in March 2018,as she moved outside of the City of Tigard for work-related reasons. One vacancy was created when a member stepped down in March 2018.Tamera Boring had been interviewed on January 16,2018, by Mayor John Cook and Councilor Marc Woodard, as the interviewing committee. At that time, all of the candidates were very well qualified but only two could be selected from the application pool that included Boring. When the latest vacancy occurred, staff consulted with Cook and Woodard. On the basis of Boring's application and qualifications,both recommended that Boring be appointed to a four-year term, to expire at the end of April 2022. OTHER ALTERNATIVES Council could decide to not approve the recommendation.This would require reopening the recruitment. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS Strategic Plan, Goal 3: Engage the community through dynamic communications. City of Tigard Vision Task Force: "The City will maximize the effectiveness of the volunteer spirit to accomplish the greatest good for our community." DATES OF PREVIOUS COUNCIL CONSIDERATION N/A Attachments Council Resolution CCE Apointment March 2018 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18 - A RESOLUTION APPOINTING TAMERA BORING TO THE COMMI'1"1'EE FOR COMMUNITY ENGAGEMENT,FOR ATERM OF FOUR YEARS,EFFECTIVE MARCH 28,2018 THROUGH MARCH 28,2022. • WHEREAS,the bylaws of the Committee for Community Engagement as of May 2017 call for appointing up to 15 members on the Committee for Community Engagement;and WHEREAS,the committee already has 14 standing members,with a vacancy to be filled by an eligible applicant who resides,owns property,owns a business or works within the City of Tigard's Urban Services Boundary;and WHEREAS, Tamera Boring was interviewed by Mayor John Cook and committee liaison Councilor Marc Woodard on January 16,2018,for the Committee for Community Engagement. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: Tamera Boring is appointed to the Committee for Community Engagement as a Member for a four-year term,effective March 28,2018 through March 28,2022. SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. Mayor-City of Tigard A TEST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 1 AIS-3446 6. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 5 Minutes Agenda Title: LEGISLATIVE PUBLIC HEARING: CONSIDER MODIFICATION TO WASTE COMPACTOR CRITERIA IN TMC CHAPTER 11.04 Prepared For: Tom McGuire,Community Development Submitted By: Tom McGuire,Community Development Item Type: Motion Requested Meeting Type: Council Business Meeting Ordinance - Main Public Hearing-Legislative Public Hearing: Yes Publication Date: Information ISSUE Shall the City Council amend Tigard Municipal Code Chapter 11.04 to remove permit and approval criteria for stationary solid waste compactors? STAFF RECOMMENDATION /ACTION REQUEST Staff recommends Council approve the ordinance removing the permit requirement and approval criteria for approval of stationary solid waste compactors from Tigard Municipal Code (TMC) 11.04. KEY FACTS AND INFORMATION SUMMARY Tigard Municipal Code Section 11.04.105 currently contains a permitting process for stationary solid waste compactors. Additionally, the Tigard Development Code requires a service provider letter from solid waste haulers as part of the development review process. This type of review is most appropriately considered as part of a development review application. The permitting process in the Municipal Code is unnecessary and potentially in conflict with the Development Code. The proposed amendments eliminate the permitting process from the Municipal Code while maintaining the City's authority to regulate the operational standards of stationary solid waste compactors for health and safety through the Development Code and Nuisance section of the TMC. City staff consulted the City's franchised solid waste haulers in the drafting of this amendment and they are supportive of the proposed language. OTHER ALTERNATIVES Council could decide to not amend TMC 11.04 and leave the current process in place. COUNCIL GOALS, POLICIES,APPROVED MASTER PLANS DATES OF PREVIOUS COUNCIL CONSIDERATION No previous dates of Council consideration. Attachments Waste Compactor Ordinance Exhibit A Code CITY OF TIGARD, OREGON TIGARD CITY COUNCIL ORDINANCE NO. 18- AN ORDINANCE AMENDING TIGARD MUNICIPAL CODE CHAPTER 11.04 TO REMOVE APPROVAL CRI'T'ERIA FOR STATIONARY SOLID WASTE COMPACTORS WHEREAS,Tigard Municipal Code Section 11.04.105 currently contains a permitting process for stationary solid waste compactors which is more appropriately considered as part of a development review application;and WHEREAS,the Tigard Development Code requires a service provider letter from solid waste haulers as part of the development review process;and WHEREAS, the permitting process in the Municipal Code is unnecessary and potentially in conflict with the Development Code;and WHEREAS, the proposed amendments eliminate the permitting process from the Municipal Code while maintaining the City's authority to regulate the operational standards of stationary solid waste compactors for health and safety;and WHEREAS, staff engaged the City's franchised solid waste haulers in the drafting of this amendment and they are supportive of the proposed language. NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS: SECTION 1: Tigard Municipal Code Sections 11.04.105 and 11.04.180 are amended to read as shown on the attached Exhibit A (additional language underlined and deleted language in sttiltethreugh). SECTION 2: This ordinance shall be effective 30 days after its passage by the council, signature by the mayor,and posting by the city recorder. PASSED: By vote of all council members present after being read by number and title only,this day of ,2018. Carol A.Krager,City Recorder APPROVED: By Tigard City Council this day of ,2018. John L. Cook,Mayor ORDINANCE No. 18- Page 1 Approved as to form: City Attorney Date ORDINANCE No. 18- Page 2 TIGARD MUNICIPAL CODE Excerpts from C. Approval Criteria. Applicant shall Chapter 11.04 SOLID WASTE demonstrate that: MANAGEMENT 1. The compactor is compatible with the franchisee's hauling equipment. 11.04.105 Stationary Solid Waste Compactors 2. The proposed site plan provides adequate maneuvering distances for the franchise A. To achieve the purpose of this chapter to hauler's equipment and maintains adequate and • - =• - - .• safe access for all other vehicles and pedestrians - - - -• as required by local, state or federal law. comply with safety, health and environmental requirements, permits for compactors shall be 3. The compactor and applicant can issued by the community development director or comply with any applicable federal, state and designee according to the following procedures local health, safety and environmental regulations and criteria: stationary solid waste compactors are •- ..•- subject to the following regulations. and this section. B. Procedure. 1. Adequate opportunity for recycling has been provided and the area where the 1. Submit a permit application to the franchisee collects separated recyclable materials Community Development Department together is at central locations accessible to the with the required fee. franchisee's hauling equipment. 2. Provide the following docu 5. The compactor can adequately mentation along with the permit application: terve the purpose for which it is installed, including: a. Site plan which indicates the • -• - ; _ - a. Able to hold all wastes showing the compactor can be picked up, generated by the permittee; applicable, receptacles at the same location as the b. Accessible and easy for the stationary compactor for separated recyclable permittee and its tenants and employees to insert materials to be collected and transported by the waste into the compactor in a safe manner; major landscaping features. c. Safety measures to prevent b. Letter of compatibility with to minors; and the franchisee's hauling equipment, signed by the franchisee. d. Sanitary and tight design to prevent waste from leakage, dropping, blowing or 3. The community development otherwise escaping from the compactor or • - unauthorized removal of waste from the decision. compactor. TIGARD MUNICIPAL CODE 6. The compactor shall be located 3. The compactor will undergo outside of any required building setback areas regular preventive maintenance and adequate and/or required buffered areas as required by the emergency maintenance shall will be available. applicable zoning district and related community development code or municipal code standards. 4. The compactor and operation of the compactor shall remain in compliance with all 7. The community development representations made in the application for and the director may waive the setback requirements if the permit issued for the operation. permittee can demonstrate that this amount of - - - . . . . • .. -- •_ 45-. There will be no operation of the or other noise reduction m asures may be compactor between the hours of 9 p.m. and 7 a.m. required. I . Safety.No stationary compactor or other D. Conditions of Approval Authorized container for multifamily residential, commercial Revocation. The community development director or industrial use shall may exceed the safe-loading - .. _. .. design limit or operation of the collection vehicles conditions, related to the approval criteria. The provided by the franchisee serving the area. director may revoke a permit if the permittee does not correct violations of this section, or any other E . Health. Compactors containing ... ' .. - . . .. - , ...• . . putrescible waste shall will be emptied at least • _ - - _ _ weekly. procedure set forth in the code. The permittee shall comply with the provisions of this section at H. Preexisting Compactors. Any compactor all times while the permit is in effect. regulated by this chapter that was in use on site prior to the effective date of the ordinance B. Franchisee Approval. A customer codified in this chapter shall comply with this should obtain franchisee's approval for chapter one year after the adoption of the compatibility with the franchisee's hauling ordinance; provided the community development equipment prior to installation of a stationary director may require immediate compliance with solid waste compactor. this chapter to carry out the health and safety provisions of this chapter. CB. Operational Standards. At all times the customer applicant and the compactor shall must - I. Assignment. Permittee may not assign remain in compliance with the following the permit. requirements: FJ. Reimbursement for Fines. Permittee 1. Compliance with any applicable shall Customer will reimburse the franchisee for federal, state and local health, safety and any fines incurred by the franchisee for weight or environmental regulations including, but not environmental violations, or any other violations limited to,OAR 437-002-0242 and this section. caused by the ownership, operation or use of the compactor. 2. The compactor and surrounding area will be kept clean at all times. GIS. Signing.Each container shall will be clearly labeled with the name, address and TIGARD MUNICIPAL CODE telephone number of the permittee customer and the name of an individual to contact. H�. Violations. Franchisee shall will not be obligated to transport a compactor that violates the provisions of this section. On notice from franchisee to customer tee and the city, permittee customer will shall immediately correct the violation. If permittee customer does not correct the violation, franchisee shall will report the violation to the city. give notice of such to the city. M. Permit Fee. Permittee shall pay the city an initial permit fee as adopted by council resolution. *** 11.04.180 Penalty Violation by any person of the provisions of this chapter or the rules and regulations adopted pursuant to Section 11.04.160 or 11.04.165 or of a permit issued pursuant to Section 11.01.105, shall will be deemed a Class 1 civil infraction,and shall be punishable according to the provisions set forth in Chapter 1.16 of this code. AGENDA ITEM No. 6 Date: March 27, 2018 TESTIMONY SIGN-UP SHEETS Please sign on the following page(s) if you wish to testify before City Council on: Legislative Public Hearing — CONSIDER MODIFICATION TO WASTE COMPACTOR CRITERIA IN TMC CHAPTER 11.04 This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Due to Time Constraints City Council May Impose A Time Limit on Testimony AGENDA ITEM No. 6 Date: March 27, 2018 PLEASE PRINT This is a City of Tigard public meeting, subject to the State of Oregon's public meeting and records laws. All written and oral testimony become part of the public record and is openly available to all members of the public. The names and addresses of persons who attend or participate in City of Tigard public meetings will be included in the meeting minutes, which is a public record. Proponent—(Speaking In Favor) Opponent—(Speaking Against) Neutral Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. Name,Address&Phone No. AIS-3353 7• Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 10 Minutes Agenda Title: LOCAL CONTRACT REVIEW BOARD CONSIDERATION OF MOWER PURCHASE Prepared For: Joseph Barrett Submitted By: Kelly Burgoyne, Central Services Item Type: Motion Requested Meeting Type: Local Update,Discussion,Direct Staff Contract Review Board Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the Local Contract Review Board approve a purchase for a John Deere 5100E Utility Tractor with a Tiger Wildkat Mower attached for the Public Works Streets division? This is a replacement to a previously authorized purchase of a John Deere tractor and mower that is no longer available. STAFF RECOMMENDATION / ACTION REQUEST Staff recommends the Local Contract Review Board approve the purchase of a John Deere 5100E Utility Tractor with a Tiger Wildkat Mower attachment for a total of$112,249 by way of a permissive cooperative purchase under State of Washington contract#10212 that is open to Oregon Cooperative Purchasing Program (ORCPP) members such as Tigard. The Purchase Order for the previously authorized tractor and mower combo has been canceled. KEY FACTS AND INFORMATION SUMMARY A boom or flail mower,historically referred to as the"Tiger Mower",is used to mow long areas of rights-of-way (ROW) along city streets and pathways. The equipment is used to quickly mow areas that range from 5 to 15 feet wide and up to several hundred feet long. It is used to mow everything from grass and briars to bushes,branches,and saplings up to 3" caliper. Due to these capabilities,the equipment allows staff to safely mow and clear areas much faster and with less personnel than it would be to do it with other equipment or by hand. With the addition of the new"Green Team"in the Public Works department,it is expected that an even greater demand for this piece of equipment will develop. The Public Works Department has done a monumental job of nursing the current mower,around since the late 1980's,along for many years but last summer the main boom that supports the flail portion of the mower broke in half and is unrepairable. The boom had been reinforced several times before, fatigue from more than 30 years of use finally caught up with the equipment. The total cost of new John Deere 5100E utility tractor with the Tigard Wildkat mower is $112,249 and is budgeted in the Street Maintenance division. As with the majority of the vehicles and heavy rolling equipment,the proposed tractor/mower will be purchased through an available existing cooperative contract, in this case with the State of Washington. This manner of purchase assures the city receives competitive pricing via bulk volume and saves the city the cost and time of preparing a formal solicitation that could lead to higher pricing and longer lead times. The purchase will be made through Sonsray Machinery,an authorized Tiger mower dealer under the State of Washington Contract. Such a purchase is authorized under Tigard Public Contracting Rule 10.085 and ORS 279A.215. The Local Contract Review Board awarded a previous replacement tractor/mower combo (a John Deere 5085E mower) at their February 6,2018 meeting. After the purchase order was issued for that equipment,the sales representative for the vendor informed the city they could no longer obtain the equipment and a reasonable replacement to fit the mower attachment would not be available until December 2018 at the earliest. In order to keep the replacement moving forward to meet the heavy summer needs for the mower, staff looked at alternatives and has determined the path detailed above to be the best one to meet the city's current and future needs. OTHER ALTERNATIVES The Local Contract Review Board may reject this purchase and direct staff to conduct a full Invitation to Bid or Request for Proposal for the equipment. This option will likely lead to higher costs as the city would need to rent equipment or contract for services during the summer's heavy needs for a mower as the formal process could lead to a longer lead time. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS DATES OF PREVIOUS CONSIDERATION The Local Contract Review Board authorized a purchase for a different replacement mower at their February 6,2018 business meeting. That mower is not available any longer and the lead time for a replacement is nearly a year. Fiscal Impact Cost: $112,249 Budgeted (yes or no): Yes Where Budgeted (department/program): Gas Tax Fund Additional Fiscal Notes: The vast majority of funds for this tractor/mower purchase were approved by City Council at their January 23,2018 meeting with passage of the Second Quarter Budget Supplemental. That action approved $110,000 in Contingency funds be used for the purchase of the equipment. The remaining funds needed for the purchase will come from the Street Maintenance Division's operating budget. Attachments No file(s)attached AIS-3404 8. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 10 Minutes Agenda Title: CONSIDER A RESOLUTION GRANTING EXEMPTION FROM PROPERTY TAXES UNDER TMC 3.50 FOR FIVE NON-PROFIT LOW INCOME HOUSING PROPERTIES Prepared For: Liz Lutz Submitted By: Liz Lutz, Finance and Information Services Item Type: Resolution Meeting Type: Council Business Meeting- Main Public Hearing No Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall four low-income housing projects owned and operated by Community Partners for Affordable Housing (CPAH) and one property operated by Resident Resources be exempted from City of Tigard Property taxation for 2018? STAFF RECOMMENDATION /ACTION REQUEST Staff recommends approval of this resolution. KEY FACTS AND INFORMATION SUMMARY Tigard Municipal Code 3.50 allows certain organizations providing low-income housing to be exempted from Tigard property taxation upon completion by March 1 of each year and a demonstration of compliance with certain criteria listed in the code. Community Partners for Affordable Housing owns and operates Greenburg Oaks located at 11875 SW 91st Avenue in Tigard. They also own Village at Washington Square,located at 11157-11163 SW Hall Blvd. in Tigard;The Knoll at Tigard, 12291 SW Knoll Drive; and a single family house at 9330 SW Tangela Court in Tigard. Resident Resources owns and operates Hawthorne Villas at 7705 SW Pfaffle St. in Tigard. These properties are operated as low-income housing and meet all criteria listed in the Tigard Municipal Code. Community Partners for Affordable Housing submitted four applications for exemption from 2018 property taxes by the March 1 deadline. Resident Resources submitted their application for Hawthorne Villas by the March 1 deadline as well. These applications were reviewed by staff in the city's Community Development Department and staff determined that the requested tax exemptions are consistent with the applicable Tigard Municipal Code and also the adopted City Housing Policy. The attached resolution gives consent from the City of Tigard for this tax exemption. OTHER ALTERNATIVES Do not approve this resolution. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS NA DATES OF PREVIOUS CONSIDERATION NA Attachments Resolution CPAH Application Resident Resources application Fiscal Impact CPAH Full Packet from CD Resident Resources Full Packet from CD CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION GRANTING AN EXEMPTION FROM PROPERTY TAXES UNDER TIGARD MUNICIPAL CODE SECTION 3.50 FOR FIVE NON-PROFIT LOW-INCOME HOUSING PROJECTS OWNED AND OPERATED BY COMMUNITY PARTNERS FOR AFFORDABT.F HOUSING (CPAH) AND RESIDENT RESOURCES OREGON. WHEREAS,Tigard Municipal Code (TMC) section 3.50 provides procedures for application and consideration on non-profit corporation low-income housing project exemptions from property taxes;and WHEREAS,the TMC requires application for exemption be filed with the city by March 1;and WHEREAS,Community Partners for Affordable Housing is a qualified non-profit organization,filed a request dated February 22, 2018 for exemption from property taxes for four low-income housing projects, and meets all the applicable criteria for exemption in TMC 3.50,and WHEREAS,Resident Resources Oregon filed a request dated February 22, 2018 for exemption, and meets all the applicable criteria for exemption in TMC 3.50;and WHEREAS,upon review of the application it was found granting the exemptions would be consistent with the applicable Tigard Municipal Code and also with the adopted city housing policies. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The applicants, Community Partners for Affordable Housing and Resident Resources Oregon qualified for the exemption set forth in Tigard Municipal Code Section 3.50. SECTION 2: The Finance and Information Services Director is directed to certify to the Assessor of Washington County that the five properties that received exemption in the prior year: a. Village at Washington Square, 11157-11163 SW Hall Blvd.,Tigard b. Single-family house located at 9330 SW Tangela Court,Tigard c. Greenburg Oaks, 11875 SW 91'Avenue,Tigard d. The Knoll @ Tigard,12291 SW Knoll Drive,Tigard e. Hawthorne Villas,7705 SW Pfaffle,Tigard SECTION 3: The Finance and Information Services Director is directed to certify to the Assessor of Washington County that the City of Tigard has not added any new properties receiving exemption of property taxes this year that did not receive exemption in the prior year. SECTION 4: The Finance and Information Services Director is informing the Assessor of Washington County that the City of Tigard has not dropped exemption of property taxes for any properties that received exemption in the prior year: SECTION 5: This resolution is effective immediately upon passage. RESOLUTION NO. 18- Page 1 PASSED: This day of 2018. Mayor-City of Tigard A'TEST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 2 COMMUNITY PARTNERSa a�' � FOR AFFORDABLE HOUSING, INC. +Ir • PO Box 23206•Tigard OR 97291-3206•Tel:503.-293-4038•Fax:503-293-4039•www.cpahinc.org• info@cpahinc.org City of Tigard Application kw Tax Abatement February 19,2018 Village at Washington Square 11157-11163 SW Hall Boulevard, Tigard A. Property Prescription IB._ Project's Charitable Purpose [C. Certification of Resident income Levels D. blow Tax Exemption Will Benefit Residents E. Tax Exempt Status IF. Verification of information G. IRS Letter A. Property Description Village at Washington Square is located at 11157-11163 SW Hall Boulevard, between SW Spruce and SW Pfeifle in Tigard. The site is located within the Washington Square Regional Center and is proximate to employment opportunities as well as public transportation and other services. The Village at Washington Square includes three residential buildings with a total of 26 dwelling units, and a community building, all arranged around a central courtyard/play yard. The project includes one studio, seven one-bedroom, five two-bedroom, seven three-bedroom and six four-bedroom units. Eleven of the units are traditional apartment flats,while the other 15 are two-story townhomes with bedrooms above the main floor living space. The total site sits on.84 acres. In 2012,Village at Washington Square received exterior caulking and painting as part of the on-going focus on quality maintenance. Some additional landscaping was completed in 2013. Legal Description: Partition Plat 1998-038, Lot 1 and Partition Plat 1998-038, Lot 2 in the City of Tigard, County of Washington,State of Oregon Tax Lot 1S135DA(04600&04700) B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. When it opened in 2002,The Village at Washington Square was the first addition of affordable units to the Tigard housing stock in a decade, The 26 units are priced to be affordable to very low, low, and moderate-income residents. The project is subject to an extended use agreement to keep the rents affordable for 60 years,effectively the full life of the project This covenant is recorded with the title of the property and requires that rents will be affordable to households at 30%,45%and 60%of area median income and significantly below market rents. Half of the units are three and four bedroom apartments serving larger families who are often unable to find affordable rental opportunities in Tigard. CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries, and the Tigard School District to enhance the safety and quality of life for residents and to ensure that our programs are well-coordinated with other community resources. CPAH works closely with Community Action and other agencies to provide information and referral as well as emergency services such as food boxes as well as rent and utility assistance. Coordination agreements with social service programs such as Lutheran Community Services and Community Action Organization, enhance ongoing case management and link stable housing with successful program outcomes. CPAH offers a variety of programs for youth including after school and summer programs as well as adult services including Neighborhood Watch,classes in support of parenting skills, budgeting and other financial literacy skills,and nutritional shopping and cooking. The Village at Washington Square is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area has the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population, it is home to nearly 16%of the city's minority households. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 C. Certification of Resident Income Levels Resident Income levels are verified upon application for tenancy and at annual re-certification. Residents may remain in their units as long as they income qualify at entry. Rents are well below the market for the area. We certify that all apartments in this project are targeted to and remain affordable to households earning at or below 60%of the AMI. Compliance with income restriction requirements is audited annually by the State of Oregon Department of Housing and Community Services,Washington County Office of Community Development,and by our limited partner investor, Key Bank. D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption is a direct subsidy for the residents(lower rents)as operating costs are lower due to tax abatement. Some costs,such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs ant use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is the general partner of the Village at Washington Square Limited Partnership,a single entity asset. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually,as does the Village at Washington Square. The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually, F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. 0-ii/Cer - ---z achael Duke, Executive Director Date APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS &pt• • • FOR AFFORDABLE HOUSING, INC. KRIldribil A PO Box 29206•Tigard OR 97281-3206•Tel:603-293-4038•Fax:503-293-4039•www.cpahinc.org• info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Tangela Single Family Rental Home 9330 SW Tangela, Tigard, OR A. Property Description - _J — -. — - B. Project's Charitable Purpose ry C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of information G. IRS Letter A Property Description Community Partners for Affordable Housing,Inc.acquired the single family"Tangela House" at 9330 SW Tangela in Tigard, on December 31, 1999, with assistance from the Washington County CDBG program and an original loan from Washington Mutual Savings Bank which is now with Banner Bank. The Tangela home is located just two blocks from CPAH's multifamily project, Greenburg Oaks Apartments and is overseen by the site manager at Greenburg Oaks. The two story 1,916 square foot house sits on a 5,450 square foot lot and is zoned R-7 residential. CPAH converted an upstairs bonus room into a 5th bedroom and completed other necessary repairs after the initial acquisition as well as additional upgrades after the first turnover. In 2013, CPAH replaced the furnace and plans to re-roof and re-paint the home In the next two years. The first residents lived in the home from early 2000 until late 2006 when they moved out of the area. The current residents have been in the home since February 2007 and remain in the home today. We consider these tenancies as very successful outcomes providing a stable neighborhood environment to raise families that had previously experienced transient and sub-standard housing. Legal Description: Barbee Court, Lot 1,Tigard, County of Washington,State of Oregon. Tax Lot: 1S135DC-05300. B. Project's Cha ifta ble Purpose Community Partners for Affordable Housing,Inc.(CPAH)creates and maintains safe, healthy,and sustainable housing with services for diverse residents Including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH acquired the single family home in order to assist the County and the Good Neighbor Center Shelter in meeting a"replacement unit"requirement triggered by the Uniform Relocation Act when the shelter acquired its current site and demolished a single family home housing a low- income family. CPAH completed needed repairs and upgraded the Tangela home to a five- bedroom dwelling,in order to provide a rare opportunity in our community--an affordable single- family rental house for a very large family. The home is proximate to CPAH's Greenburg Oaks property,where management and resident services are available to the household. These services include a computer center,community room, neighborhood watch, Individual Development Account grants, and other programs.The resident services coordinator and property management staff visit the home on a regular basis to ensure that the property is well managed and to maintain an ongoing relationship with the residents. The home is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area boasted the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9%of Tigard's population base,it is home to nearly 16%of the city's minority households, C. Certification of Resident income Levels Resident income level is verified upon application, and must be less than 60%of the area's median income. Income is recertified annually. We certify that all residents served by this property earned at or below 60%of the AMI. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 D. Mow Tax Exemption IMII Benefit Residents 100%of the property tax exemption is passed on as a direct subsidy for the residents. Every dollar reduction in operating costs results in a reduction in the scheduled rents. Some costs, such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing results in a net savings of public resources. Fewer and less-severe police calls,healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is direct owner of the Tangela property and is a nonprofit 501(c}(3) organization. Our operations are audited annually to,among other things,confirm that we are in compliance with our charitable status and with requirements of the County grant and Banner Bank loan documents. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of residents for compliance with program guidelines. achael Duke, Executive Director ate APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS FOR AFFORDABLE HOUSING, INC. � �r . • 1 PO Box 23206 •Tigard OR 97281-3206 • Tel:503-293-4038 t Fax:503-293-4039 • www.cpahinc.org • info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Greenburg Oaks (formerly Villa La Paz)Apartments 11875 SW 91st Avenue, Tigard FA. Property Description �B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status [F. Verification of Information G. IRS Letter A. Property Description Greenburg Oaks Apartments (Tax account # R-276472), 11895 SW 91't Avenue, is just off Greenburg Road, near Pacific Highway. The site sits on 3.01 acres and consists of 84 units in four buildings: 12 one-bedroom/one-bath 564 square foot units, 60 two-bedroom/one-bath 839 square foot units, and 12 three-bedroom/one-bath 1,007 square foot units, In 1998,CPAH added the now much used Community Center to the complex. The Community Center houses a computer center, library,multipurpose room and property management office. In 2005/2036,CPAH completed a$3.5 million dollar rehabilitation of the apartment interiors,building exteriors and project site. Highlights of the rehab included:replacing all building siding and windows,re-configuring and repaving the parking lot, replacing all landscaping, upgrading the recreation facilities,upgrading site lighting and signage. Interior work included replacing all waterlines and drains, replacing all cabinets, countertops, light fixtures and most appliances(refrigerators, dishwashers, hot water heaters)with Energy Star rated devices,replacing all window coverings and many carpets,re-texturing and repainting all apartment interiors. The rehab project featured energy saving appliances, compact fluorescent light fixtures, better insulation,and low volume plumbing fixtures,all of which have reduced tenant energy costs. The rehab work was done without displacing any tenants and with very minimal rent increases. As a testament to the quality of the rehab work, vacancies generally average under 5%, accounts payable are current and annual cash flow is positive.In 2011,CPAH completed exterior re-caulking and exterior painting as part of on-going quality maintenance at Greenburg Oaks. Financing for the project came from a number of public and private grants and low income housing tax credit investments. No new debt was taken on. Approximately$10,000 of the funding was provided by the City of Tigard Affordable Housing Fee Assistance program. Other funding came from the Meyer Memorial Trust, the Paul Allen Foundation, the Oregon Community Foundation, Washington County Office of Community Development through the CDBG and HOME investment programs,and the State of Oregon. Key Bank increased its investment by over$2 million dollars. Legal Description: The site Is located in the southeast 1/4 of Section 35,Township 1 South,Range 1 West(Willamette Meridian). Tax Lot: The Washington County Map shows the site as tax lot 23-74-2000, Parcels I, II,and IiI. B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH's acquisition and renovation of the complex has ensured that the previously neglected property is professionally managed as safe, decent,and affordable housing. Greenburg Oaks has significantly reduced the housing cost burdens of our families. The efficient delivery of our services improves the health and prospects for all household members,and serves to help break the multi- generational cycles of poverty. CPAH's commitment to 40 years of affordability for those at 50 and 60%of median income guarantees that these apartments will be affordable effectively for the life of the buildings, CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue,Tigard Libraries,and the Tigard School District to enhance the safety and quality of life for residents and to be sure that our programs are well-coordinated with other community resources. Partnerships with Community Action, Good Neighbor Center, Luke-Dorf, Neighborhood House, APPLICATION FOR TAX ABATEMENT PAGE 2 OF 4 Lifeworks NW and other organizations to provide information and referral as well as emergency services like food boxes and rent and utility assistance, Coordination agreements with these agencies enhances ongoing case management and provides a fresh start to many families facing significant barriers moving from homelessness to permanent housing. Several families each year are being reunited with their children as a result of receiving a housing opportunity at Greenburg Oaks. Three of the apartments are reserved for low income families with at least one member in active recovery from alcohol or drug addiction and an additional two apartments are set-aside for clients of the LukeDorf Housing Team. The Community Center at Greenburg Oaks is the focal point for support, skill building, and community building activities offered by CPAH through its resident services program which includes after-school and summer youth programs as well as the annual winter coat distribution and holiday event. CPAH's on-site computer learning center is used by youth for homework, research, e-mail, • and educational games; and by adults for job search activities and Internet access. The Tigard Library has twice obtained grant resources to purchase children's material for our on-site library, CPAH offers a variety of adult services as well. The Community Center is also host to a number of general community activities including rent readiness courses, HopeSpring parenting classes, financial literacy classes, parenting safety skills and budget and nutrition classes. The Community Center hosts weekly meetings for AA, NA, and Alanon groups. Food distributions are also held in the Community Center for both the residents at Greenburg Oaks and others in the'surrounding community. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and are recertified each year. CPAH has covenants with the state and with Washington County to use the property exclusively for low income rentals for a period of at least 40 years. These covenants require that all households have earnings at or below 60%of the area median income. Some units are restricted to households earning at or below 50%. Compliance with these covenants is monitored by the State of Oregon Department of Housing and Community Services and by theWashington County Office of Community Development. We certify that all apartments in this property are targeted to and remain affordable to households earning at or below 60%of the Area Median Income, D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption Is a direct subsidy for the residents. Every dollar reduction in operating costs is passed on as a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources mostly through fund raising. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers,all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is general partner of the Villa La Paz Limited Partnership,a single asset entity established for the purpose of acquiring the apartments and qualifying for low-income housing tax credits. CPAH's IRS Determination Letter is attached. CPAH undergoes a full independent audit of its books annually, as does Villa La Paz, LP. Both the State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. APPLICATION FOR TAX ABATEMENT PAGE 3 OF 4 F. Verification of information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. / • it t 4:tRchaei Duke,Executive Director Dine APPLICATION FOR TAX ABATEMENT PAGE 4 OF 4 COMMUNITY PARTNERS111` . . wing ,FOR AFFORDABLE HOUSING, INC. J1 PO Box 23206•Tigard OR 97281-3206•Tel:503-293-4038•Fax:603-293-4039•www.cpahinc.org• in1O6 c.I Ino;tars City of Tigard Application for Tax Abatement February 19,2018 The Knoll at Tigard 12291 SW Knoll Drive Tigard, Oregon 97223 IA. Property Description B. Project's Charitable Purpose IC. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of information G. IRS Letter PAGE 1 OF 3 A. Property Description The Knoll at Tigard is located at 12291 SW Knoll Drive in Tigard (on Hall Boulevard between SW Knoll and SW Hunziker). The Knoll is a prime example of urban development,perched on the edge of the developing downtown of the City of Tigard, walking distance to the library, senior center, transportation, shopping and a variety of other amenities. Previously, three parcels of land totaling 1 acre supported only 3 single family residences. Following the recent zone change, and consistent with the long range goals of the City development plans, The Knoll at Tigard brings this density to nearly 50 units per acre. The design takes advantage of a site with an established infrastructure of utilities, adjacent transportation and services, The Knoll receives a "very walkable' rating from Walkscore.com. The Knoll at Tigard is a 45,000 square foot,48-unit apartment building along with common rooms and meeting space, providing active living for independent, low-income seniors. Streetscape improvements were required on at 3 street frontages, including development of sidewalks,planting strips with street trees and below-grade utilities. Public spaces including entry courtyards and site walks are well lit. The Knoll at Tigard is a secure access building with a surveillance system. The total site contains.98 acres. Legal Description: see attached Exhibit A Tax Lot R458454, R458436, R458445 B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. The Knoll at Tigard is CPAH's first affordable units for seniors in Tigard and compliments CPAH's affordable units for seniors in Hillsdale. The 48 units are affordable to very low and low income residents on a permanent basis(The Knoll at Tigard provides affordable housing for a minimum of sixty(60)years, with maximum rents regulated by covenants on the property). Rents are affordable to households at 30%to 60%of area median income and below market rents. 45 of the units are one bedroom units and 3 of the units are two bedroom units(1 of which for the on-site manager). 12 of the one bedroom units are Project Based Section 8 units through the Washington County Housing Authority and are set-aside for Veterans. CPAH has expanded its community partnerships with the Tigard Police,the Tigard Library and the Veteran's Administration,The common areas include a living room and kitchen for residents'use as well as a computer center. The community room is available for resident potlucks, holiday events and other activities. C. Certification of Resident Income Levels Resident income levels are certified upon application.The seniors at The Knoll may remain in their units as long as they income qualify at entry. Rents for the one bedroom units average$677/per month for the one-bedroom apartments(25% + below average market rates). Rents are$780 per month for the two-bedroom apartments. Water, sewer and trash are included in the monthly rental. PAGE 2 OF 3 D. How Tax Exemption Wilt Benefit Residents The property tax exemption is a direct savings for the residents,allowing for reduced operating costs which results in reduced rents for the seniors at The Knoll. For both the initial development,and long term operations of the project,full tax abatement is essential. The project pro forma allowed for the construction of The Knoll which meets all City and State design requirements along with affordable rents for our seniors. The Knoll includes financing through Washington County HOME and CDBG funds,State of Oregon Trust Fund and Tax Credits. JPMorgan Chase is the private lender with Enterprise Neighborhood Partners as the investor(under the tax credit program). Tax abatement was critical In meeting lender and investor requirements while keeping rents affordable for The Knoll at Tigard and is key to long- term sustainability of the project operating with affordable rents for seniors. E. Tax Exempt Status CPAH, an Oregon non-profit, is the general partner of The Knoll at Tigard Limited Partnership, a single asset entity. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does The Knoll at Tigard. Mark Schwing of Markusen&Schwing in Beaverton currently provides audit services for CPAH and CPAH's single asset properties.The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development both inspect and audit the project annually. The tax credit investor(Limited Partner) also monitors and inspects the project as does Washington County. F. Verification of Information As CPAH's executive director, I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management acts as the property management agent providing the day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. % � _ )11 Rachael Duke,CPAH Executive Director Date PAGE 3 OF 3 NONPROFIT ARTICLES OF INCORPORATION OF COMMUNITY PARTNERS FOR AFFORDABLE HOUSING ARTICLE I The name of the corporation is Community Partners for Affordable Housing and it shall not have members. ARTICLE II The corporation is a public benefit corporation. The corporation is organized exclusively for religious, charitable, scientific, literary or educational purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code. Among the charitable and educational purposes for which the corporation is organized are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and moderate • income individuals and families in Washington County. 3. b. to assist and facilitate the purchase and rental of real property by low and moderate income persons. c. to eliminate discrimination in the acquisition, disposition and rental of real estate by undertaking educational and other activities which will assist in the implementation of Federal, State and local Fair Housing Laws. d. to undertake housing, community development and community self-help projects which serve the needs of low and moderate income persons in Washington County. e. to administer housing as a community service regardless of race, color, religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation may engage in other lawful activities for which corporations may be organized pursuant to the Oregon Non-Profit Corporation Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's activities shall be in furtherance of any purpose other than one of the exempt charitable purposes for which the corporation is organized. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other-provision of these Articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501(c) (3) of the Internal Revenue Code, or (b) by a corporation, 1 contributions to which are deductible under Section 170(c) (2) of the Internal Revenue Code, or corresponding section of any future federal tax code. ARTICLE III The name of the registered agent is Margaret Ann Jozsa and the address of the registered agent is 14980 S.W. 103, Tigard, Oregon 97224. ARTICLE IV The directors will be elected or appointed after incorporation as follows: At each annual meeting of directors, the directors then in office will elect directors for the succeeding year. Vacancies on the board of directors, whether created by resignation or' by increase in the size of the board, will be filled by affirmative vote of the remaining director or directors, though less than a quorum. ARTICLE V The mailing address where the Division may send notices is as follows: Community Partners for Affordable Housing c/o Neighborshare 12750 S.W. Pacific Highway Suite 123 Tigard, Oregon 97223 ARTICLE VI Upon dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Upon dissolution of the corporation, the board of directors shall, after paying or making provision for the payment of all liabilities of the corporation, dispose of all the assets of the corporation by transferring them to such other organization or organizations then qualifying as exempt organizations under Section 510(c) (3) of the Internal Revenue Code or corresponding section of any future federal tax code, as the board of directors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organization or organizations operated exclusively for such purposes, as said court shall determine. ARTICLE VII Provisions for regulation of internal affairs of the corporation: (a) The corporation shall be a non-membership organization and shall be managed by its board of directors. (b) No part of the net earnings of the corporation shall , inure to the benefit of, or be distributable to, its directors, officers or any other private persons, except that the corporation shall be authorized and empowered to make reasonable compensation for services rendered and to make payments and distribution in furtherance of the purposes set forth in Article 2 hereof. (c) The directors and officers of the corporation shall be entitled to indemnification from the corporation to the full extent allowed by the Oregon Non-Profit Corporation Law. (d) The personal liability of the directors and uncompensated officers of the corporation to the corporation for monetary damages for conduct as director or officer is hereby eliminated to the fullest extent allowed by law. The undersigned President of Community Partners for Affordable Housing certifies that the board of directors of the corporation has approved and adopted the foregoing articles pursuant to the " resolution adopted at a meeting on October 7, 1993. Date: October 7, 1993 Mary wintek President 09/21/2004 11:17 FAX 8033734381 CORP DIVISION iih002 1: suhrak1M t 4 ',I*, l TMVfirmly/TE nal sr9aeFOR ONCE USE ONO % andenslivesipy appowlasaftlen Re ry Number: 11/4;.,4i.1.-..,..;,./ lbalvalkoluy `'�-. y Mae Fly '; iosno( � :`..`'� 8211191,0111810•0219 SEP+� 1493 w r t t (' ; ARV p� Thit ARTICLES OF INCORPORATION Corporation . .m.........m.m... AATMCt.E t: Name of ate corpgrdgoo; Community Pariners for Affordable HoutAw ARTICLE 2: Type of=partition(ofwck one only) ® Public benefit 0 *Au&*Autenet 0 Ballots ARTICLE 3: Name of tbe Initial registered agent: Maroaret Ann Juana Residence or glia address of registered agent(must be a WON address In Oregon): 14960 B.N. 108 ....,.........sir....: 97224 ART10LE 4: Prinalpap offtoe address: c/o Neighborcare 12750 S.N. Pacific Highva Suite 123 Tiyard, OR 97223 s rorand nuMbet 1r Zip code ARTICLE 5: Wane if corporation 011 have members: ❑ Yes to . ARTICLE 6: Distribution of assets on dssoiudon or fad Neon: Upon dissolution of the ' corporation, itis assets shall be distributee for one or more exempt parpoaea within the moaning of Section 501(c)(3), or corresponding section of any future federal tax code, or shell be distributed to the federal government, or to a state or local government, e public purpose. 09209X3903 831.219 29.0945 NP.t(T/91) C . i 09121/2004 11:17 FAX 6036784381 CORP DIVISION IZ003 ff :E OF IIICORPORATNNI powwow 3(� PIPE Na1rISOf O0ipOratiarr. Ott► Eutaw, fps Mfo1r4able Moue6na ARTICLE 7: Name andaddrws ni each director Is optional- '! (f thh' belle s you mull Mine or MOM directors and q Mary Srintek - 9915 S.W. Fraying ft. *23 Tigard, OR 97223 Lagan K.;koff - 9905 S.W. Ne ansie Tiaard,, 0* 97223 Margaret Ann Jozaa 14980 ,$,W, 103 Tigard, 05 97224 ARTICLE 8: ® Each director named has consented to this appointment. ARTICLE 9: optional provisions: None. ARTICLE 10:trans end address of the incorporator: araarat, mush 14980 S.w 103 Tigard, 05 97224 AdO/0$5 Exeoudon; Margaret Ann OMNI morn O r re Punted name Title P.POWIWOOROMA1iNCUMIMNF Mar area Ara JPaaa 298-5995 at!p oM u rr" `' Mit doge pont*to too Goepnrwson mom soma e•c ompnted ban and tae ak Ceipotatbn nw 80010 is may,1ia 1118*MOM Salem,Oregon 572100140. NP-1(7191) 1 09/21/2004 11:17 FAX 6033784381 CORP DIVISION 004 ! 1(10 47 JLJ J 644.04.0 no.w • auenN Mt N enNI asr oa MONETARY OF STATE >►N<woct us wog paw Md RD Info 41 4,4"n. ; r 03110/11110110w*g* 110 RD ► w. 1 tiI i0 &r FhWry► Fr-FO AsylAt , � ,111% 1:21104110 r l ISO lab SWINE2E1/2-* NC f � • f • Sulam,Olt 073104210 • ir!• / tda►s a41e1 teaWmiar 3714181 ARTICLES OF AMENDMENT Nonproftc Corporation PLIAS!! TYPI 4A PRINTI,001ai,Y IN 04.A4N +NK 1. Name of the corporation prior to arrlvndmenf: C 0 viim 14•44 y Far Anna. r rVC arddla le. i eet4% 2. On a separate sheet,please state the article number(s)and set forth the aatide(s)aro n Is amended to read. 3. The amendment(*)i' .'s`adepted on 10-'1 , 19 ,.. (d more than one amendment was adapted,Identify the dale of adoption of ash amendment, 4. Chsots the&Nevada*statement: vats�b appealof was a s not ori $was approved 6p a ancient ❑ Mwrbership wpm*.t s rsq Eid. 'the mambamembemlip bole was as blow Ca•sM WIN timber ali nwdlel. Number ofWin NW*atrolls Number Wales to vole MOW imam(slip wet- wafer ail m Essoi01Dn: tt- .: - n OZS Pres lac a , . .— nems Parson to contact about this eV ITV(- a(4* ; F . a , • S :-s ' 9 c M81iE CHECKS PAYABLE TO THE C DPORAT10ry ONBIOM.SANKT THE COMPLETED FQRM AND FEE TO CORPORATION DIVISION. 11TH St NE.SALEM,CR 073101410. CA FAX TO NON swam• RAM MANE YOUR VON OR lialTR AAD NUMBER ANO EXPIRATION DATE,,..��'.,�... •�• •- ��-- 12217093/ 09/21/2004 11:18 FAX 5033784381 CORP DIVISION 005 3C6-20/4*0 2. ARTICLE 4s o/0 sidgmerstan 12750 1.11. Pacific Righvay mita 233 Tigard, OR 97223 ARTICLE 7s Loran Racked 5 00/21/2004 11:18 PAZ 8033784381 CORP DIVISION X00t: 8 M 4 erarliVsWON TwMAC!MaOneSsis cm.v Me SM Cyly Y =10.00 „ t'f1# 'y Pita Solo IOft f; Ripely Number: r 566 ORM SAW NI, auks 151 `Lr: S �v j- � ' °pao 3711.4311 FILED JAN 24 1995 ARTICLES OF AMENDMENT . secreroty of 5k/ft Nonprofit Corporation PLEASE TYPE OR PRINT LSQIOLY IN SLACK INK 1. Name of the corporation prior to amendment F � Community Partners for Affordable Housing j 2. Oneenea separate sheet,please nded to read. state the article nurnber(s)and set forth tete Midge)as it is 3. The amendment(s)was adopted on 13-10 4 19 (If more than one amendmerd was adopted,identify the date of adoption of each onendmeti. 4. Check the appropr ate : �� r amendment(*)was approved by a sufitolerd 0 Membership appnmti was required. The membership vote was as Mow CliAetac argued Number cd nrNnbara Number dotes Peg*r of vow amber of votes b vola er+Otlad td vole edged b be oast pat for ad%dnal • • Execution: • , Margaret Ann Jossa President Tae • Pelson tooontaotalma this tilinz Margaret Ann Jozea 503.288.5995 erne rrle MAKE CHECKS PAYABLE TO TH CORPORA ION DIVIeION OR eiCm.104 YOUR INA OR*MSTEANMID NUMMI AND E7PPIRA71ONDATE l ,. MINT THE(=PLOW POPPIMIo PEE TO move oVE ADDRESS pR FAX To PM matt 122(710) 6112958020E 231.219 !@.86 09/21/2004 11:18 FAX 5033734391 CORP DIVISION @007 3toc70f - 6Sot CO S''Y PJIN!'WS los sfod1pi MOMS Iseadees~ts to lead as follows, uTIcra II The corporation is a public benefit corporation. The corporation is organized exclusively far charitable and educational purposes within the weaning of Section S01(0)(3) of the Internal Revenue Code. Wing the charitable and educational purposes for which the corporation is organised are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and soderate income individuals and faailies in the cities of Tigard and Tualatin. b. to assist and facilitate the purchase and rental of real by low and moderate income persons. a. el Minato discrimination in the acquisition, disposition and rental of real estate by undertaking educational and other activities which Will assist in the implementation of Federal, State and local Fair Mousing Laws. d. to undertake housing, community development and community self-help project', which serve the needs of low and moderate income persons in the cities of Tigard and Tualatin. a. to administer mousing ae a nonmunity service regardless of race, color,• religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation say engage in other lawful activities for which corporations may be organized pursuant to the Oregon Non-Profit Corporation.Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's activities shall be in furtherance of any purpose other than one of the exert charitable purposes for which the corporation is organized. No substantialof the activities of the corporation shall be the carryon of propaganda, or otherwise • attaaptinig to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any Candidate for public office. Notwithstanding s any other provision of these articles, the corporation shall not carry an any other activities not permittee to be carried on (a) by a corporation exempt from federal moons tax under section sol(c) (3) of the Internal Bevans Code, or corresponding section of any future federal tax cods, or (b) by a corporation, contributions i to which are deductible under Section 170(x) (2) of the Internal i Novenae Code, or corresponding section of any future federal tax code. 1 i' 09/21/2004 11:19 FAX 5033784381 CORP DIVISION U1008 ORSIONITS PAESI= Id APPOSBASLI MOM MO I haibdesets to read as fellows { UTlI Yr Upon dissolution of the corporation, its assets shall be distributed for one or sore exempt purposes within the meaning of a Section Sal(c)(3) of the Internal Revenue Cods, or corresponding section of any future federal tax cods, or shall be distributed to the federal govt, er to a state or local government, for a public purpose. Upon dissolution of the corporation, the board of directors shall, atter paying or making provision for the payment of all liabilities of the corporation, dispose of all the assets of the corporation by transferringthem to such other organization or organisations then' qualifying asorganisations under section 510(c)(3) of the Internal nevem* Cods or oorrrspondl ng section of any future federal tax code, as the board of directors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organisation or organizations operated exclusively for suds purposes, as said court shall detersins. a.TXCls It Provisions for regulation of internal affairs of the corporation: • (a) So part of the net earningo or the ation shall inure to the benefit of, or be distributable to, its directors, officers or any other private persons, except that the corporation Mall. be authorised and empowered to make reasonable compensation for services rendered and to make paysento and distribution in furtherance of the purposes sat forth in Article 2 hereof. (b) The directors and officers of the corporation shall be entitled to indemnification from the corporation to the full extent allowed by the Oregon Won-Profit Corporation Lay. (C) The personal liability of the directors and uncompensated officers of the marl gyration to thecorporation for monetary damages for conduct as director or officer is hereby eliminated to the fullest extent allowed by law. 09/21/2004 11:19 FAX d039784381 CORP DIVISION @c09 • 1 , ,_lace AMMO a� ' - ibudow SLMIdM1 rt w Pera8et minty , • S - It � � Odiit.8r181 ODPMtaf v.s;=; ; 24 • +Msww ew sacarnow of rI..aTM'Mit f INIMO Ule 1) Mwea+Drwr011WOSIMR10Ate•■t1ar ., ., , . , - , . • , 2) 1111111111,MInfi Ileuire.MIDrrraOMsi na lMmrs mstoNar+.wgA,•wmmia.«ri.ssi.iy Mob'11.Ind t.lid ARM III OMNI,windlon oti 16 71) 1rsnlaatrrrall tarotrtfmdns iiim et25.2 1 VMa.raaetr+irrenrwealoft MU"d so~ma 001, 1mONOW tgtt'ay.1CON OP10/1 near 4) On=lfslMrfNMwrrslnaanatn 8) b1UatltdAoatarra alian0an ©tawkollsratiles sop MOW darfirtw.an.aalr<rNpti The INllsoinimpopervil in aatiRdeatiiataa�rfa.bowddieet w Dow 11100111 Wise ' Prow* "" Wads., NOW sus 4rioMlb vireer +dorsi Mr I swig w F maw 1Mlawnr our The membwbM.ofimos crws0 Nreiwd sow* swam wart em grow - —limn *w wwrM AWN aOffie eliONO MO MOWN ID SW se arrammagift Do anreMaamYe)wawaged by OM boat araeon Mat rtsyattotd►Waft , 0 V 0arrrMw hal nal MEI NM slum WOO.allinha lar .don Res not iewAwt to Wort op arnosim .U. arrlede.defe)eee adepUdbyfi.iarfranatraer tir tbdbawd ef amnia, 5) Sean= Mew Nos Ilk Shea Grr w#tdi '_ 's Make ,. 7) DanierMerE ikkriarmers Mom—110NNM►sI1tEAa00! `4108# iMr Fi k -27 _ FEES Maisperas w&awe liwiirloglosimoirolib rarpM+rrSseW.RYMr wtiasCrtsmelt wow we saruwawurMr 1 OMiMw. { • 416°S ORM 06111) r'i r f i 09/21/2004 11:19 PAI 5033784381 CORP DIVISION Oi0 • a t , a ',f \11_ AE I 1 PAR 1 S FOR AFFORDAILV NOOSING, INC Mew=Ss Timm 01t973si-itl06*Tdtute .1t94.PuIPLII •wlwralilww+rie i401.1116Cas 6150/Z Amendment to Articles of Incorporation to read as follows, the changes • are italicised! ARTICLE f2 a. to develop, stimulate and facilitate the psuvision, ownership and management of housing for low and moderate inaoaie individuals and families in the Tigard-Tualatin area and ecmtiguous partfawa of southwest Portland. d. to undertake housing. community development and community self-help projects which serve the needs of low and moderate income persons in the Tigard-Tualatin area and contiguous portioue of southwest l+ort2ead. Article 111 The name of the registered agent is Sheila Greenlaw-Fink and the address of ths registered agent is 13137 B.M. Pacific Highway, Tigard, Oregon, 97223. • 7 a - '' .Articles of Amendment•Nonprofit y "i G Secretary of state-Corporation AMabn-355 Capitol St NE.Shite 151-Salon,OR 87310-1327-htlp vww.ftln9InOregontan-Phone 003)1802w REGISTRY NUMBER: In accordance wt h Oregon Revised Stanch 192A10-192.490.the information on this app5cedon Is public iec rd. We must reieeae this 1nfonnatbn to at, .: .. • -and keel he.._ ,on our website. For dice use onI Please Type Or PrYk Legibly U Black inti 1) ENrrrr NAetE: Community Partners for Affordable Housing, Inc. 1 2) STATE THEARTICLE NUMBER(S):and set forth the articls(a)as t is amended to read.(Mach a separate sheet t necessary.) .Arede s~010 develop,etkw andaoaefY to prweta4 owes*and nomapordnit af housing area and andwsta swoon edeedwa end amNes„Enna Waddeolon Catgut/ed Covbrlls!P 5 d. Ankle tdi leudetela souses ease”eropeenieed aermssisfee•help proomwsks sew to news show and modernly Income pen In Ease=Wa lea Om*erg Sal lit Perron& Article 3:The name of the registered agent is Sheila Qeentaw+ktkand the address dine registered agent is 6380 SW Capitol Higtwray,it151,Portend.OR 977.39. 3) THE Aided:we r WAS ADOPTED t31t: November 29,2011 (Irmore than one amendment was adopted.Idenefyt a date of adoption of each amendment.) ' 4) CHECK THE APPROPRIATE STATEMENT: Membership approval was not required.The antendment(s)was approved by a suffielent vote of the board of resters or incorporators. ❑Membership approval was required. 'The membership vote was as fotows: • Class(es)entitled Number of members Number of votes entitled Number of votes cast Number of vases cast to vote emitted to vote to be cast FOR AGAINST 5) EXECumioN:(Must be signed by at least one omcer or director.) correct amend complete.Making false sure, declare MS an tatements ddoocument this Is againstt the law been examined nted may be penalized by tines, npdsorntent both.by me and is,to tie best of my knowNidge and belief.true. Signature: Printed Name: Title: • - Stic la Gre (ttw• �_ }cet ,\re t)'"2 CONTACT NAME(To resolve questions wRh this filing.) FEES t>heiia Greenlaw-Fink sS�O Cmtensbncopr .• PHONE NuMBER:(Include area code.) He Fes far tlorMottType Change. No fee for Ralde tSeaeteyChema. 503-293-4038 • Processing Fees ere hernfimdaNa. Please Make dna PafaNab^CarpaetiontlirNka.' 31-Atkles or Amendment-Nonprofit(01110) -.4-4A-411 .114111 r4 www.residentresourcesoregon.org 4800 SW Meadows Rd#300 Lake Oswego,Oregon 97035 Phone 503-534-3777 Fax 503-482-7430 To: City Of Tigard February 14,2018 13125 SW Hall Blvd Tigard,Oregon 97223 Attn:Toby LaFrance Finance and Information Services Director Application for Tax Abatement Hawthorne Villas Located at 7705 SW Pfaffle Street Tigard, Oregon 97223 A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. Attachments A. Property Description Hawthorne Villa Apartments is located at 7705 S.W.Pfaffle Street in the City of Tigard.The property Is set on 4.76 Acres adjacent to Pacific Highway.The Property is composed of eight apartment buildings with a single family home in front that is currently used as managers home and office with some space used for the community room,See Attachment#1 site plan.In these eight buildings there are one hundred eighteen separate apartments consisting of sixty two one bedroom apartments that are approximately six hundred five square feet,twenty one, one bedrooms that are approximately six hundred eight five square feet,five two bedrooms one bath at approximately seven hundred ninety square feet and thirty studio apartments that are three hundred sixty square feet.The property is restricted to low income families who make 60%of the average medium income for Washington County. The project has recently been purchased by a respected local property owner(see attachment#2) who plans to maintain the affordability component to the property.His name is Rajiv Jain.He collectively owns and manages over eight hundred apartments in several states.Over three hundred of those apartments participated in section 42 restricted rent housing program.He resides in Portland and is committed to socially responsible ownership of all his properties.He has partnered with Resident Resources to create a safe and secure environment for these valued individuals whom need affordable housing.All the properties that Mr.Jain owns are well maintained with responsible management employees who are compassionate about what they do. The property being located within walking distance to many local employers and employment sectors makes it an ideal location for those seeking affordable housing.The transportation needs of the Residents is well met as there are numerous transportation hubs within walking distance including Pacific Highway,the 217 and 5 freeways,bus routes and local rail transportation close by. The residents enjoy that there is adequate vehicle parking(171 parking stalls).This relieves them of the high cost of parking a vehicle.This can foster a sense of independence. The Apai t,iients business name is Hawthorne Villas Apartments,it is considered a section 42 affordable housing complex also know as Low Income Housing Tax Credit(LIHTC). It is a federal Program created in 1986 under the Federal Tax Reform Act. It accounts for over 90%of the affordable housing in the United States.The nature of the property and location make it an ideal property to receive this tax abatement. For your records the tax parcel is R282429 in Census Tract 306.00 with a Zoning of R-12. The lot is over 207,000 square feet with multiple garden areas and courtyards. It has several Iaundry rooms for residents to do there own laundry. B. Projects Charitable Purpose Resident Resource's mission is to enable low income families of Oregon find and keep affordable housing.Through our resident service plan (RSP)we strive to create an environment in which families feel safe to seek additional assistance in education,employment and health services. We have an open door policy in which all are welcome.Each Resident whom resides or wants to reside at Hawthorne Villas has an appointment with a staff member who helps identify potential needs relating to our core values of affordable housing,continued educational opportunities,employment referral services.We offer mediation assistance with the ownership/management to prevent evictions that may lead to homelessness. Our many health and social services contacts and referrals are a great resource for the residents with a focus on confidential assistance. Our commitment to the Citizens of Tigard and around the state of Oregon has been to maintain an dignified approach to foster a confidential yet friendly approach to the housing needs of families who may need affordable housing. Many Residents face other significant challenges that can be softened with the right approach.This is done while maintaining the integrity of the property both materially and physically.Creating a safe environment for all Residents is our highest Priority. Hawthorne Villas Ownership has made a significant commitment to fund Resident Services to a level where each resident can have a personal touch that will encourage them to use our services if needed.The tax abatement will go a long way to helping these fine Citizens of Tigard. C. Certification Of Resident Income Levels Hawthorne Villas is a rent restricted apartment complex that will only rent to individuals or families whom make at 60%or below of Washington County Area Medium Income.This compliance is achieved with our advertising,application process,verification process.A second oversight to insure our compliance we have partnered with expert Alexia Consulting whom is approved by the State of Oregon.They are experts in compliance and monitoring in this area, over seeing each and new Resident as well as a yearly audit of each Resident File and our record keeping.The property will rent restricted for at least the next 12 years.See Attachment#4 Resident Resources D. How Tax Exemption will Benefit Residents With this tax exemption we are able to maintain the low income and affordability component to this property.The Tax exemption also allows us to fund Resident Resources thus reducing Homelessness in the City of Tigard as well as providing valuable services for some families who most need it.Through our efforts and management style we have consistently reduced police contacts with Residents which reduces costs to the City.The tax exemption allows us to staff a position which takes some of the burden off of the City of Tigard's resources.The exemption is used to create a safer, healthier more stable environment for Low Income Families. E. Tax Exempt Status Resident Resources is a Domestic Non Profit Public Benefit Corporation Registered in the State of Oregon. Registration#118973395 Certificate of Existence attached as attachment#3 Our Non Profit is formed in the State of Oregon and follows federal guidelines for 501 (c) (3). Our EIN number is #81-1513248 Our Corporation is organized exclusively for charitable,religious educational or scientific purposes Including for such purposes the making of distributions to organizations that qualify as exempt by the Internal Revenue Service,or the corresponding section of any future federal tax code.Resident Resources is a general partner with Hawthorne Villa,an Oregon General partnership and co manages the property. F. Verification of Information All the information provided above including attachments below are accurate and complete. Hawthorne Villa an Oregon General partnership is co-managed by Hawthorne Villa GP LLC and Resident Resources. I do so attest to its truthfulness and certify it. /1./d/1,1-) William S.Maxwell President esident Resources State Of Oregon Date 1-.; ry"t/,j ICZc>i`t> County1.01.'5:-.1iv,)1:0 OFFICIAL STAMP / 1 S ,. JEFFREY JOHN ROBERTON z3 NOTARY PUBLIC-OREGON This record was acknowledged before me on(date) Po(v ,20 by ` g �Y� f _ ,�; COMMISSION NO.967950 MY COMMISSION EXPIRES OCTOBER 29,2021 (name(s of individual(s) 111 - t 4.4 44 w; k Notary Public State of Oregon Signaturle '7 )et?"../Ye )7 f\ 7 f a Official Seal Name Resident Resources G. Attachments 1. Site Survey a. Building A b. Building B c. Building C d. Building D First floor e. Building D Second floor 1. Building E g. Building F 2. Oregon Certificate of Existence 3. State of Oregon Amended Annual Report 4. Certification of Low Income Housing Restriction 5. IRS Certificate of 501 3 (c) reb. n. 1UR) 1I : -iyKivi No. V71ti r. j State of O OFFICE OF THE SECRETARY OF STATE Corporation Division Certificate of Existence 755L896R3 I, DE1V7Tl S RICK4RDSON, SECRETARY OF STATE, and Custodian of the Seal of said State, do hereby certify, RESIDENT RESOURCES is a Nonprofit Corporation under the laws of The State of Oregon and is active on the records of the Corporation Division as of the date of this certificate. In Testimony Whereof I have hereunto set p F • my hand and affixed hereto the Seal of the ,,... ,, . 7*� I\ State of Oregon. .f.,. . „. ..,..„,„„,,,..., ,, ,___0=Y'-':� "+ „,........2„- 0 ,,,,.,.:: :„ I = 5 ' DENNIS RICHARDSON, SECRETARY OF STATE 2/21/2018 AMENDED ANNUAL REPORT 1 .1 , E-FILED -=.# Corporation Division a e ,1 Feb 08,2018 Nt70" www.filinginoregon.com OREGON SECRETARY OF STATE rAlr REGISTRY NUMBER 118973395 REGISTRATION DATE 02/19/2016 BUSINESS NAME RESIDENT RESOURCES BUSINESS ACTIVITY RESOURCE PROFESSIONAL SERVICES THAT ASSISTS TENANTS IN THE FINDING AND KEEPING AFFORDABLE HOUSING.TO ASSIST TENANTS IN REDUCING RENTAL AND LIVING EXPENSES.TO MEDIATE POTENTIAL TEANT EVICTIONS. MAILING ADDRESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA TYPE DOMESTIC NONPROFIT CORPORATION PRIMARY PLACE OF BUSINESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA JURISDICTION OREGON REGISTERED AGENT WILLIAM MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA If the Registered Agent has changed, the new agent has consented to the appointment. PRESIDENT WILLIAM S MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA Page 1 't� k. Corporation Division '"., www.filin inore on.com ,�� 9� g OREGON SECRETARY OF STATE •Nra.�1 SECRETARY ANDY K TREVINO 248 GREENRIDGE DR LAKE OSWEGO OR 97035 USA I declare as an authorized signer,that this filing has been examined by me and is,to the best of my knowledge and belief, true, correct,and complete. Making false statements in this document is against the law and may be penalized by fines,imprisonment, or both. By typing my name in the electronic signature field, I am agreeing to conduct business electronically with the State of Oregon. I understand that transactions and/or signatures in records may not be denied legal effect solely because they are conducted,executed,or prepared in electronic form and that if a law requires a record or signature to be in writing, an electronic record or signature satisfies that requirement. ELECTRONIC SIGNATURE NAME WILLIAM MAXWELL TITLE PRESIDENT DATE SIGNED 02-08-2018 Page 2 LL 1— co z0 IDLo v- o 6 5 S8 19 6355E = 635SF 63F -.-= qS SF Irl 4— —� 1 leak 11 I b. f II :w' SECOND FLOOR PLAN co hr-1 z , ' 3 a rt W 680 SF 560 SF 880 SF I- a Iv' 6355f 635 SF 6755E = 635SF I .WI - I- - _J — GJ _ _ i 1 1 W ¢ z 1 II 3 I s ° Z 2 1 15 1 65,SF AI d'-v 559 SF 650SF 7,95F 0 J FIRST FLOOR PIAN Z Q / t ( ou'., m 06 0 m 0 O O A 2 NIk3 5,Iu 1111111111111 Il1111(111111.1«-- ,_......:.18__1L 1 I Eh ^•-IZ-{7• qg SJGRAGE AND LAUNDRY (All oA N1a ,old r Fri F, n r5 1P AL3 N�� N, T I :: ---✓ 111111111111 __ IIIIIIIIIIII• AIrn I I431 n . 1'1 17-5 r . . ii BUILDING B 16 UNITS HAWTHORNE VILLA APARTMENTS 11,035 GSF ( ' C.-' /( 6 ' n 0 E oO A ' —_ FIs: 1i1. NI •HIIINIIIII 1111llllllll BM I ala 1R:_- Mil p J,4 ':� , o STORAGE AND LAUNDRY F' - ' CA NI 16 IM T sA v 111111;..:a I� I =e: i.... \ !IA -Iu et I► IIIIIIIIIIIII II'A fFIs .3" — - rIa w° BUILDING C 16 UNITS HAWTHORNE VILLA APARTMENTS 11,035 GSF // sA. vISA. �im I .IllIIIllhIHIll Tis -4I1 p — 414 AIR r R gig BUILDING D 21 UNITS HAWTHORNE VILLA APARTMENTS 15,276 GSF 0 11- F CO z0 D O _._ _ 0 o 11^11� I 1 N 11��11 11"�_.II II it 11;__:11 OE:: c q !.6.7 ;RIS .iI1I Il t 11mi _:1{ II"gm 11� _:f1 11=-_:11 i. A Ili ill I: .1 I 11:_7-:,.. .i4!" , I 11� _.11 CILI W dr � _ = � a n"__:u d u. _:n n:�l:u Q Ili A II Aj FIRST FLOOR PLAN SECOND FLOOR PLAN W W Z u. Z O _ J_ D Q m Z V coEl- i— co z (-9 IlW !mama f.: 1 II I M H. IIIIII C_'.1 = 1!!1 = ;0 1�1 _02 = Al 106 = 1Q7 MI = HS to = 115 110 = HB 63556 635 SF 635 SF = 635 SF 6355E = 6355E 6155E 6355E 8355E = 6355E SECOND FLOOR PLAN H — AM ow metow 1 I z z 13 II IL 1I. In X i = ir=t = es Ps = es _ Q 100 = 101 104 106 = 100 1 = 1l 116 - 117 E35SF = 635SF 635 SF r= 6355E 635 SF 635 SF 675 SF 635SF 635SF C 635 SF FIRST FLOOR PLAN W LL Z UEt Z0 Z 9 D Q Co 2 � 7 / l i 1 b I 1,. pi 1 /n- l ur. I'l`l i ° /1!: I�II� I l uI. l as =7„.....„.„..r....„ kj Ili °o �•s r viii h efi f , 'C; . F IN I- S I I. O 11-1-• ! Ijidigi ' ad a I i Ella) Ill - - I 4. Illi 'IIIA"„ Illy.q.. •$ �mil 1 illyi4lf�ill�'i' x9111191 I �� -; 111 liil lir = - =4! r 1tllll�11'+'111,1=��i1lll'i�jlln i. .EII i��l ik 4���- III] IIIZ 111111 ! aw II Y / M . 1111;1;1 �j~I , �Id .4 1 I(�If IIl'i I �� 1 I _.�.. 1 L' `, 1 II II' a,.. l roritiiii i1,._ i,t, I 4 1,_.7 , traS ia 1 1 1/4.ig. 1 1 °1 a .---01, . Now tii1fQIi f, Kli-1tltA? /y5 fill I {n --- to Q a1*1 t STATE OF OREGON • Cann�yorWaehlnplon } 88 "' (.Jerry A6 !�1 /'� o}A�eeta• t 3t . mint and n ' N °��jy hal GIKk 10r I r {. the WM". rY[Aib N 'f-'� �, ,,fwd • and county �1 . i Ag Vr, .}e•.+ •<� , �Flr�r!11,= ..• ,.rector h1 J fQa = ' , .Iton,E4- ... , lark Doe t 97032421 g3.00 Rect.: 184112 04/09/1997 04102:29p1n I I 1 I i I f rte: - , { i I F 1 I 1 i- t5 { 4 ..mow., i� j. • • RECORDING REQUESTED Ey AND WHEN RECORDED,MAIL TO: 4.4 Om'on Haute'and Community Burka tDapartmaat 1840 state Street Salam,Orstee 97310 Attu KomiP,Katsvoa BrACe ABOVE FOR MOWER'S UNE OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT LOW-INCOME HOUSING TAX CREDIT DECLARATION OF LAND USE RESTRICTIVE COVENANTS THISCLARATION OP LAND USE RESTRICTIVE COVENANTS,(this"Declaration"),dated as of_ rel 1997,by HAWTHORNE VILLk j IITED PARTNERSHIP,and its successor,and assigns the"Owner")is given as a condition precedent to the allocation of low-Income housing credits by the Oregon Housing and Community Services Department,a governmental agency of the State of Oregon,together with tttttt. any successor to its rights,duties,and obligations,(the"Department"). .. *(incl dee 117 tax credit unite and WITNESSETH; two Dreman-area managers' unite) WHEREAS,the Owner is or shall be the owner of e(n)114 unit en I housing development,iere•atetaoese located on lands In the City of Tigard,County of WaShing1on,State of Oregon,more particularly described in Exhibit A hereto,known as or to be known as HA WTHORNE VILLA APARTMENTS(the"Project");and WHEREAS, the Department has been designated by the Governor of the State of Oregon as the housing credit agency for the State of Oregon for the allocation of low-income housing tax credit dollars(the"Credit");etre! WHEREAS,the Owner has applied to the Department and entered Into a Determination Letter and Agreement fbr an allocation of Credit to the Project in an amount not to exceed One hundred eighty one thousand,one fourty three dollars($18 LJ43)of tax axonal band financed 4°/e low-income housing credit allocation;and WHEREAS,the Department has agreed to issue a Form 8609 to the Owner upon the execution and recording of this Declaration which constitutes part of the Determination Letter and Agreement;and WHEREAS,the Owner has repr scnted to the Department in Owner's Low-Income Housing Tax Credit Application (the"Application")dated MBfeh 24.1997,that Owner shall lease/rent 100 percent of the units in the Project to 11 individuals or fhmilies whose income is 60 percent or less of the area flintily adjusted median gross income = 3 ("Low-Income Tenants")as determined in accordance with Section 42 of the Internal ReyenueLndp(the"IRC"); and WfiEREAS,the Department has determined the Project would require a Credit allocation in the amount of 8181.143 of'tax exempt bond financed 4°%a tax credit allocation to be financially feasible;and WHEREAS,the Owner has represented to the Department rent restrictions it will maintain for the period of time as specified In the Determination Letter and Agreement;and DECLARATION OF LAND USE RESTRICTIVE COVENANTS — LIIiTC PROJECT NUMBER OR96-4-002 PAGE I OF 10 _ o fig WHEREAS,the IRC requires as a condition precedent to the allocation of the Credit that the Owner execute,deliver and record this Declaration in the official land deed records of the county In which the Project Is located in order to crate certain covenants running with the land for the purpose of enforcing the requirements of IRC Section 42 and the Department's Occupancy Restrictions found in Section 5 hereof by regulating and restricting the use,occupancy and transfer of the Project as set forth herein;and • WHEREAS,the Owner,under this Declaration,Intends,declares,and covenants that the regulatory and restrictive covenants set forth herein gnveming the use,occupancy,and transfer of the Project shall be and are covenants running with the Project land ibr the term stated herein and binding upon all subsequent owners of the Project land for such term,end are not merely personal covenants of the Owner, NOW,THEREFORE,in consideration of the promises and covenants hereinafter act forth and of other valuable -' consideration,the receipt and sufficiency of which is hereby acknowledged,the Owner and the Department agree i as follows: SECTION 1-DEFINITIONS All the words and phrases used in this Declaration shall have the same meaning as when used In IRC Section 42, Treasury Regulations or Notices promulgated pursuant to IRC Section 42,Department Administrative Rules,and the Department of Housing and Urban Development("HUD")Regulations unless the context requires otherwise. SECTION 2-RECORDING AND FILING;COVENANTS TO RUN WITH THE LAND (a) Upon execution of this Declaration by the Owner and the Department,the Owner shall cause this Declaration and all amendments hereto to be recorded and filed in the official public land deed records of the county in which the Project is located,and shall pay all fees and charges Incurred in connection therewith. Upon recording,the Owner shall Immediately transmit to the Department an executed original or certified copy of the recorded Declaration showing the date,deed book and page numbers of record. The Owner understands and agrees that the Department will not Issue the Internal Revenue Service Form 8609 constituting final allocation of the Credit unless and until the Department has received the recorded executed original of this Declsrrtion. (b) The Owner intends,declares,and covenants, on behalf of itself and all(Inure Owners and operators of the Project during the term of this Declaration,that this Declaration and the covenants and restrictions set forth In this Declaration regulating and restricting the use,occupancy and transfer of the Project(I)shall be and are covenants running with the Project land,encumbering the Project for the term of this Declaration,binding _? upon the Owner's successors in title and all subsequent Owners and Operators of the Project(II)are not .., merely personal covenants of the Owner,and(Ill)shall bind the Owner(and the benefits shall inure to the Department and any past,present or prospective tenant of the Project)and its respective successors and MI • assigns during the term of this Declaration, The Owner hereby egrets that any and all requirements of the laws of the State of Oregon to be satisfied in order for the provisions of this Declaration to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in full, and that any requirements of privileges of estate are intended to be satisfied,or in the alternate,that an equitable servitude has been created to insure that these restrictions run with the Project, For the longer of the period this Credit is claimed or the term of this Declaration, each and every contract, deed or other instrument hereafter executed conveying the Project or portion thereof shall expressly provide that such conveyance is subject to DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4.002 PAGE 2 OF 10 1 this Declaration,provided,however,the covenants contained herein shall survive and be effective regardless of whether such contract,deed,or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance is subject to this Declaration, (c) The Owner covenants to obtain the consent of any prior recorded lienholder on the Project to this Declaration and such consent shall be a condition precedent to the Issuance of Internal Revenue Service Form 8609 constituting final allocation of the Credit. SECTION 3-REPRESENTATIONS,COVENANTS AND WARRANTIES OF THE OWNER The Owner hereby represents,covenants,and warrants as follows: (a) The Owner(1)Is a Ilmlimillizintodalst duly organized under the laws of the State of Oregon,and Is qualified to transact business under the laws of the State of Oregon, (II) has the power and authority to own Its properties and assets and to carry on its business as now being conducted,and(III)has the fell legal right, power and authority to execute and deliver this Declaration. (b) The execution and perfbrmance of this Declaration by the Owner(r)win two unmet,^r,2_ppnzablo,has ----- not violated any provision of law, rule or regulation, or any order of any court or other agency or governmental body, (II)will not violate or,as applicable,has not violated any provision of any Indenture, agreement,mortgage,mortgage note,or other instrument to which the Owner is a party or by which it or the Project Is bound,and(III)will not result In the creation or Imposition of any prohibited encumbrance of any nature. (o) The Owner will,at the time of execution and delivery of this Declaration,have good and marketable titin to ®_ the premises constituting the Project free and clear of any lien or encumbrance(subject to encumbrances F.-- created pursuant to this Declaration, any Loan Documents relating to the Project or other permitted encumbrances). (d) There is no action,suit,or proceeding at law or in equity,or by or before any governmental instrumentality or other agency now pending,or,to the knowledge of the Owner,threatened against or affecting it,or any of its properties or rights,which if adversely determined,would materially impair Its right to carry on business substantially as now conducted(and as now contemplated by this Declaration)or would materially adversely affect Its financial condition, (e) The Project constitutes or will constitute a qualified low-income building or qualified low-Income project, as applicable,as defined in IRC Section 42 and applicable regulations. • (f) Each unit in the Project contains complete facilities for living,sleeping,eating,cooking and sanitation(unless the Project qualifies as a single-room occupancy project or transitional housing for the homeless)which are to be used on other than a transient basis, V—' (g) During the Term of thin Declaration,all units subject to the Credit shall be leased,rented or made available to members of the general public who qualify as Low-Income Tenants(or otherwise qualify for occupancy of the low-income units)under the applicable election specified in Section 42(g)of the IRC, (h) The Owner agrees that tenant and third parties will be eligible to enforce IRC Section 42 entitlements as DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96.4-002 PAGE 3 OF 10 .,.ek` c � -� Yet%�_ �'.._ ?r'Y..� "1 • • • provided by thank Housing Act,as amended, „ -3 (i) During the term of this Declaration,the Owner covenants,agrees and warrants that each low-income unit Is and will remain habitable,.:' (1) Subject to the requirements of IRC Section 42 and this Declaration, the Owner may sell, tranalbr, or exchange the entire Project at any time,but the Owner shalt not*In writing and obtain the agreement of am, buyer or aucceseor or other person acquiring the Project or any interest therein that such acquisition Is subject to the requirements of this Declaration end to the requirements of IRC Section 42 and applicable regulations. This provision shall not ad to waive any other restriction on sale,transfbr,or exchange of the project or any low-income portion of the Project, The Owner agrees that the Department may void any sale,transfbr,or exchange of the Project If the buyer or successor or other person falls to assume In writing the requirements ofthis Declaration and the requirements of IRC Section 42. Notwithstanding the foregoing,the owner shall not dispose of any portion of a building which constitutes a portion of the Project and to which this Declaration applies unless the entire building is disposed of to such person (k) The Owner agrees to notify the Department in writing prior to any sale,transfer,or exchange of the entire Project or any tow-income portion of the Project. (I) The Owner will provide certified financial documentation acceptable to the Department to satiety the calculation of a qualified contract and to begin the one year period for finding a buyer in accordance with IRC Section 42(hx6)if desired, (m) The Owner shall not demolish any part of the Project, substantially subtract t}oxn any reel or personal properly of the Project,or permit the use of any residential rental unit for any purpose other than rental housing during the term of this Declaration unless required by law or unless the Department has given its prior written consent, (n) The Owner represents, warrants, and agrees thin if the Project, or any part thereof,shall be damaged, destroyed,shall be condemned,or acquired for public use,the Owner will use its best efforts,subject to the II rights of any mortgagee,to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction,or to relieve the condemnation,and thereafter to operate lin the Project in accordance with the terms of this Declaration. (o) The Owner warrants that it has not and will not execute any other Declaration with provisions contradictory to,or in opposition to,the provisions hereof,and that in any event,the requirements of this Declaration are —' paramount and controlling as to the tights and obligations herein set forth and supersede any other =el requirements in conflict herewith. NM I (p) The applicable fraction for each building of the Project during the term of this Agreement shall not be less 11”; then the applicable fraction specified in the Low-Income Housing Tax Credit Determination Letter and tt"— Agreement(the"Agreement')executed by the Owner asall percent. [See IRC Section 42(h)(6)(B)j (q) The Department may require the Owner to reduce rents chatged for low-Income units if property taxer imposed upon the Project are reduced because of a change in Oregon law, Any reduction in rent required by the Department shall not exceed the reduction in property taxes,taking into account any replacement taxes or equivalent charges: and shall further take into account prevailing operating et:, or debt coverage requirernenta of the Project's lender(e) DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIRTC PROJECT NUMBER 0R96-4-002 5 PAGE 4 OF 10 —._ • • F" ' (r) If the Section 8 Income Limits used to determine rent limits aro reduced to account for a reduction in property taxon imposed on the Project because of a change in Oregon law or if rents are otherwise reduced by fbderelly subsidized housing assistance programs or comparable program to account for a reduction In property taxes imposed on the Project because of a change in Oregon law and the Department determines that the reduced rent charged for low-Income units in the Project appropriately reflects the reduction in property taxes,then Section 3(q)of this Derdaratlon shall not apply. (a) Tho owner will not ral'se to lease to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant as such a holder. (t) The owner agrees to fill out end sign Part H of the Form 8609 required to be completed by the building owner for the first year of the credit period and return a copy(without Schedules and other supporting documents)to the Department for the purposes of compliance monitoring (u) The Department may charge a reasonable fee comparable to fees charged by the Department for monitoring — activities in accordance with Section 8(d)of this Declaration for rent reviews and determinations made pursuant to Sections 3(q)and 3(r)of this Declaration. SECTION 4-INCOME RESTRICTIONS; RENTAL RESTRICTIONS The Owner represents,warrants,and covenants that from end afiet•initial occupancy and throughout the remaining term of this Declaration and In order to satiaff the requirements of IRC Section 42("Section 42 Occupancy Rastrieefons")that; (Check applicable percentage election) (a) (1)_ At least 20 percent or more of the residential units In the Project will be both rent-restricted and occupied by Individuals whose income is 50 percent or less of family adjusted area median income. (2). At least 40 percent or more of the residential units In the Project will be both rem-restricted and occupied by individuals whose income is 60 percent or less of family adjusted area median income. srarso (b) The Department may require that the determination of whether a tenant meets the low-Income requirement RE be made by the Owner or his designated agent at least annually on the basis of the current income of such Low-Income Tenant. NMI SECTION S-DEPARTMENTS OCCUPANCY RESTRICTIONS The Owner represents,warrants and covenants throughout the term of this Declaration that; (a) Project rents will not exceed the gross rent allowable under IRC Section 42. (Check b through e,if applicable) (b)..X_ The Owner will extend the income and rental restrictions of IRC Section 42 for 11 years after the close of the compliance period. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4-002 t/ D PAGE SOFIO 1 '' (p)X.. Regardless of any provisloa in this Declaration to the contrary,the Department's Occupancy Restrictioru provided by this Section shalt remain In place for a period of 3Q years or until'Flaunty 1,2025 except in the cue of foreclosure or deed In lieu of foreclosure of a prior recorded lien to this Declaration as provided in Section 6(b)(1)but subject to Section 6(o)of lids Declaration (Check applicable election) (d) (l)X The Owner will,1 the earliest date upon which the Owner may request the Department to assist • In procuring a qualified contract for the acquisition of the low-Income portion which rs a part of the Protect to after year 14,from the year the project was placed in service, (2)__ • . : - ::,:..::,.: .. _ .... 4o-tsdrtin ptnctrrirtg . ... _ •• (e)— Operating reserves when released from restricted use shall be wholly used to subsidize tenant rents consistent with guldellnea prescribed by the Department. SECTION 6-TERM OF DECLARATION (a) Except as hereinafter provided,this Declaration and the IRC Section 42 Occupancy Restrictions specified herein ahai commence with the first day In the Project period on which any building which is part of the Project is placed hi service and shall end on the date which is 15 years after the close of the compliance period. (b) The Owner shall comply with the requirements of IRC Section 42 relating to the extended use period, provided,however,this Declaration and the extended use period for any building which Is part of this Project shall terminate: (1) On the date the building Is acquired by foreclosure or instrument in lieu of foreclosure;or (2) On the last day of the ono- period specified in IRC Section 42(h)(6)(1),if the Owner has properly Y� P P P Y requested in accordance with IRC Section 42 that the Department assist in procuring a qualified contract for the acquisition of the low-income portion of any building which Is a part of the Project, ! t the Department and the Owner have agreed upon the terms of sale es specified In Section 3(1)of this Declaration,and the Department is unable to present a qualified contract within one year of reaching written agreement regarding the terms of sale. (c) Notwithstanding subsection(b)above,IRC Section 42 tent requirements shall continue for a period of three years following the termination of the extended use requirement pursuant to the procedures specified in subsection(b)above for those tenants existing as of the date of termination. During such three-year period, the Owner shall not evict or terminate the tenancy of en existing tenant of eny tow-income unit other than for good causo and shall not increase the gross rent above the maximum allowed under the IRC with respect to such low-Income unit. (d) If the Owner has agreed to optional Department's Occupancy Restrictions as reflected in Section 5 of this Declaration,neither this Declaration nor the extended use period shall terminate until the time period for compliance with such Department's Occupancy Restrictions hes expired subject to earlier termination under Section 6(b)(l)above. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIIITC PROJECT NUMBER OR96-4-002 PAGE 6 OF 10 • . • • • SECTION'?-ENFORCEMENT OF DEPARTMENT'S OCCUPANCY RESTRICTIONS (a) The Owner shall permit, during normal business hours and upon reasonable notice, any duly authorized representative of the Department,to inspect any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants which pertain to compliance with the Department's Occupancy Restrictions specified in this Declaration. (b) The Owner shall submit any other information,documents,or certifications requested by the Department which the Department shall deem reasonably necessary to substantiate the Owner's continuing compliance with the provisions of the Department's Occupancy Restrictions specified in this Declaration. SECTION a-ENFORCEMENT OF SECTION 42 OCCUPANCY RESTRICTIONS (a) The Owner covenants that it will not knowingly take or permit any action that would result in a violation of the;equlremente of IRC Section 42 and applicable regulations of this Declaration. Moreover, Owner covenants to take aay lawful action(Including amendment of this Declaration as may be necessary,in the opinion of the Department)to comply ft Ily with the IRC and with all applicable rules, rulings, policies, j procedures,regulations or other official statements promulgated or proposed and published by the United States Department of the Treasury,the Internal Revenue Service,or HUD from time to time pertaining to Owner's obligations under IRC Section 42 and affecting the Project. (b) The Owner acknowledges that the primary purpose for requiring compliance by the Owner with restrictions provided In this Declaration is to assure compliance of the Project and the Owner with IRC Section 42 and the applicable regulations,AND BY REASON THEREOF,THE OWNER IN CONSIDERATION FOR -- RECEIVING LOW-INCOME HOUSING TAX CREDITS FOR THIS PROJECT HEREBY AGREES AND CONSENTS THAT THE DEPARTMENT AND ANY INDIVIDUAL WHO MEETS THE INCOME Emil LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER PROSPECTIVE, PRESENT OR FORMER OCCUPANT)SHALL BE ENTITLED,FOR ANY BREACH OF THE PROVISIONS HEREOF, AND 114 ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS DECLARATION IN A STATE COURT OF COMPETENT JURISDICTION. The Owner hereby further specifically acknowledges that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. (c) The Owner hereby agrees that the representations and covenants set forth herein may be retied upon by the Department and all persons interested In Project compliance under iRC Section 42 and the applicable regulations. (d) The Owner agrees to take any and all actions reasonably required by the Department to substantiate the Owner's compliance with occupancy restrictions of IRC Section 42 as now constituted or subsequently amended and other occupancy restrictions of the Department as now constituted or subsequently adopted and will pay a reasonable fee to the Department for the Department's monitoring of the Owners compliance based upon the Department's monitoring costs. (e) This Declaration and the Determination Letter and Agreement of which it lee part may be enforced by the Department or its designee in the event the Owner falls to satisfy any of the requirements herein. In addition, DECLARATION OF LAND USE RESTRICTIVE COVENANTS LITITC PROJECT NUMBER OR96.4-002 PAGE 7OP 10 , .L.,___ J I • • , .•• • • this Declaration shall be deemed a contract enforceable by one or more Tenants u third-party beneficiaries of the Declaration and Determination Letter and Agreement, In the event the Owner fidli to satisfy tie requlrunerta of this Declaration or the Determination Letter and Agreement and legal coats are Incurred by tbeDepattment or one or more of the tenants or beneficiaries,such legal costs,Including attorney fees end court costa(Including costs of appeai),art the responsibility of,and may be recovered from,the Owner. SECTION 9-EXTENDED LOW-INCOME HOUSING COMMITMENT t/ *NOT APPLICABLE** An Option anri Ri• t of First Refusal Agreen-nt has been entered into with 1Lalatin Valley Housing Par ne-s, the Pr•„ect a • -n- a •or„ er hereby agrees to transfer the Project to a"qualified nonprofit organization"(as defined In IRC 42(h)(5 j acceptable to the Owner,the Department and tho mortgage lender after the end of the calendar ye. ling years after the issuance of the Forms 8609 for the Project,or as soon thereafter as the tra. -er can be co mmated,on the following terms; (1) conalderatlon for the transfer shalt be in accordance with the formula in IR ection 42(h)(6)(F) In an aunt equal to the sum of(a)the principal amount of outstanding ind'• ednese secured by the Project, 4. the adjusted Investor equity in the Project,and(c)other capita •ntributlons not reflected in the amo.• is described above,reduced by cash distributions from(or• tillable lbr distribution from) J the Project. (2) Owner shall be und- o nbligation to transfer the Project to - qualified organization in the event that no acceptable qualifi •anizatton accepts title and as •mes Owner's obligations befbre the end of the calender year filling .. years after the issuance . the Forms 8609 fbr the Project, (3) In making the determination o e transfer , qualified nonprofit organization,first right of refusal 1 shall be given to (4) Any controversy related to the set. io •f the transferee qualified organization shall be settled by arbitration pursuant to the rule: ,f the Am-:can Arbitration Association. (b) Owner further covenants to use i :reasonable best effort o assure that,at the time of the transfer; (I) the Project is generating sufficien h flow to service Project d and pay Project operating expenses;and(II) the Project is in rcasono• good physical condition(for a n ti-family apartment project erns age and quality), Ms I (c) No provision a is section shall prevent any lender loanirg funds secu d by the Protect front fbre:dosing on the prop y or otherwise exercising its tLil right as a lender, In the a • t of a bonafide foreclosure or transfer • t e Project to a lender by a deed In lieu of foreclosure,the foreclosin! ender shall take the Project free ,• clear of any obligation to transfer the Project to a nonprofit organizatio •r to operate the Project • 44 urdeble housing except as provided for In SRC Section 42, The Department • its assigns shall have e•eroro-cry-elate . . - :: . .. . , -. { SECTION 10_MISCELLANEOUS (a) Severability The invalidity of any clause,part,or provision of this Declaration shell not affect the validity of the remaining portions thereof. DECLARATION OF LAND USE RESTRICTIVE COVENANTS q LTHTC PROJECT NUMBER OR96-4.002 PAGE.9 OF 10 — 1 " 4.--"` a „ ,_ :i .ate , ,:. ` o _S n (b) Ni All aoticea to be given pursuant to this Declaration shall be in writing and shall be deemed given when milled by certified or registered mail,return receipt requested,to the parties hereto at the addr s es set forth below,ocr to such other place as a party may ftom time to time designate In writing, To the Department: Oregon Housing and Community Services Department ATTN: LIHTC PROGRAM 1600 State Street Salem,Oregon 973100161 To the Owner, HAWTHORNE VILLA LIMITED PARTNERSHIP AWN. rj4AD RENNAKER 16101 SW 72ND AVENUE SUITE 200 PORTLAND 41197224 I The Departrrxnt,and the Owner,may,by notice given hereunder,designate any lbrtha or dlifhrent addresses to which subsequent notices,certificates or other communications shall be rent, (c) ,g p��, The Owns agrees that it will take all actions necessary to eget amendment all*Declaration as may be ntre s ry to comply with the IRC,any and all applicable rules, regulations,policies,procedures, rulings,or other official statements pertaining to the Credit. The Department,together with Owner,may exewte and record any amendment or modification to this Deciaradon and such amendment or modification shall be binding on third-parties granted rights under this Declaration. — (d) Subnrdinatinrt of Declaration. This Declaration and the restrictions hereunder are subordinate to the __ I permeant t loan and loan doaments on the Project in an original principal amount not to exceed$4.000,000, except insofar as IRC Section 42 (h)(6)(E)otherwise requires. The Department may subordlnato this Declaration to other Financing,in its sole discretion and such subordination shall be binding on ail third- parties granted rights under this Declaration. I (e) Gnver�Law. This Declaration shall be governed by the laws of the State of Oregon and, where applicable,the laws of the United States of America. (I) S"i t of Ob iQations. The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall not be deemed to terminate or merge with the awarding of the allocation, DECLARATION OF LAND USE RESTRICTIVE COVENANTS c) LIHTC PROJECT NUMBER OR96-4.402 1 PAGE 9 OF 10 '�v .• a ..e f e` r t ' N WITNESS WHEREOF, the Owner has caused this Declaration to be signed by its duly authorized -- -1,:k representatives,as of the day sad year first written above, , illHawthorne Villa united Partnership By: ' Name; G. pavid Sebastian Title: Predi.dent. Iia thorn Villa GP, Inc., General Partner of Hawthorne Associates Limited Partnerships a General Partner — STATE OF OREGON ) County of as niton ) This instrument was acknowledged before me this_ Pit– day of 0-191'1 i , 1937,by G. David Sebastian, President 1 l1SPEP IL CARTVI i .® NOTARY PUBLIC FOR OREGON t `".; C�,UA�NNII os9�t1 — My Commission Expires; t)(. lar Y,-_–,,-. sr+o+t>e ', �t�Ro ,' r._ thtrdacwnenlprrpan4,b d�hlQrrb7T.rDDT by: T'- , r kk� w.•+ pns,N¢ss fart/ft Kalnar — Mc tar CrrditProprumReprtteimUve hMmvlMthlenrn\ RiPWed3171 1 I 1' I I • DECLARATION OF LAND USE RESTRICTIVE COVENANTS J' LIHTC PROJECT NUMBER OR96-4-002 I PAGE 10 OF 10 t 1 1 • • =KT 'se • Send=Es >t part of the emerge ticherdaon Dotati°a Land Claim in'th,i Northeast quarter of the Sotthrost quarter of Section 39, Township 1 South, Rage 1 Raft of the WiLtamstto Nes/die/4 in the Olby of Tigard, Ooenty of waahingtcn and State of Oregon, deeorlbcd am follows DRas]nrrNO at the Northwest earner of the George Richardson Donation Sand Male, situated in Section 31, Township 1 South, Ranges 1 Wast," Willamette Meridian, thane S outh P9°00' Nast, 1067.60 feet to a point in the Northerly boundary lino of said Donation Land Claim; thence South 0°11' West, 1204.0 Beet to oh iron pipe, auLd iron pipe aarkiaq the Northwest menet of that tract conveyed in need Book 279, page 6461 thense South S9o49' Sart, 86.0 tent aloog the North line of that tract conveyed in Mil Deed Dank 279, Page 648 to the Northeast Homer of said tract and true poise of bpinning of the tract herein described; thnnoo South 89040' Nast, 18.0 test, thecae North 0°11' Nast parallel with the last line of that, tract described in deed to Leonard S. enema, at e1, recorded January 16, 1166, in,600k 677, Page 339, Nashingtoe County Records, 173.66 feet; thence South 86°17' Salt,116 Dost to the Bast line of said Orion tract; thence South 0°11' West along the Neat Lina of laid DUOS treat, 32.5.0 feet to the Soutbseet corner thereof; thence North Sell' Wast along the Booth line of said Cason tract, 111.6 feet to the Southeast comer of that trent eooveyed in Deed souk 279. Page 648; thence North 0°11' East along the Nut lime of that tract conveyed in Dead Hook 379, Page 648, 141.34 feet, acre or less, to the-true point of beginning, all 'situated in Washington County, Gregor. PARCEL tt' A part of the George Ri.cherdeon Donation Land claim in tho Northeast quarter of the Southwest quarter of Section 36, Township 1 South, Range 1 Watt of the Riliamette Xeridian, in the city of Tigard, county of Washington and State Of Oregon, described an follows' =tun= at this Northwact corner of the George Rieshardean Donstien Land Claim, 'situated la Section 36, Township 1 south, Range 1 Rest, Willaartta Meridian; thanes South 69°00' East, 1887.60 feet to a point in two Northerly bo°adary line of said nonati°n Land Clain; thence Smith 0°13' Weft, 1204.0 feet to an iron pipe, said iron pipe narking the Northwest corner of that tract conveyed in Deed Book 279, Page 646, and the true point of beginning herein described; thence Smith 89°49' East, 110.0 feet to a point; thence north 0°11' Bast parallel with the Salt lien of that tract described in deed to Lxnrtd B. Cason, et al, recorded Unitary 16, 196B, in Dock 6:7, Sago 139, Um/hie/too county Records, 17.i.66 feet to a point; thane North 68°37' Want, _, 110.0 feet to a paint on the Rest line of said taxon tract; thence south 0011, Wast along said Wast lima, 173.66 feat to the true point of beginning. IZ { pis= SSI; h► part of the dsoroo Richerdaun Doaatioa Y,aad Claus in the Northeast quarter of tom Southwsat gaartar of sootier 36, Township 1 south, Range 1 Vest Of the Willamette Meridian, in the City of Tigard, Ceonty of Washington sad state of Oregon, dascsihed lee followos Rrorn21PO at the Northwest corner of the gamy Richardson Donation Land Chains. situated in section 36, Township 1 South, Amiga 1 Slat, WLilanetts Meridian and ruaaing thence South 69°00' swat, 1187.60 feet to a paint in the northerly bounda f line of maid Donation Load claim/ thome'South 0°11' Brost, 3204.0 feet to an iron pipe, said Lsvn pipe marking the Northwest porno: of that trait ooasoyed la Dead Nook 271, — Page 646; thence south 89049' Last, 05.0 feet along the North line of that tarot oonreyed in Deed Dock 279, Page 648 to the Northeast corner of Marmot/ thou" scetb 89°49' neat, 28.0 feet; thence North 0011' Slut parallel With the Rist line of that tract described in deed to Leonard 2. Cason. et al, recorded Jan-nay 16, leis, is Book 677, page 139, Washington County nacords, 173.66 feet; Manor south 61°37' Zeati 51.0 feet to the true point of beginning of the herein daacrihad promisee/ thence continuing South 88°17' Rant, 46.0 feet to a point on the Sast line of said Cason tract; thence North 0°11' toot along said East lige, 90.0 foot/ thence, Korth 8017' tett, 45.0 fast; thence South 0°11' Wamt, 90.0 feet to the true point of beginning. eat :sa A part of the coarse Piohirdeoe Donation Land Claim in the Northoait quarter of the Southwest quarter of Section 36, Township 1 Soath, Range 1 West of the Willamette j Heridia7, in the City of Tigard, County of Waahiagt°n and state of Oregon, desoribed as follows/ t✓ 1lorinc NO at the Nootbw"mt corner of SM George Richardson Donation Land Chia in Section 36, Township 1 South, Range 1 West, Willamette tsnridian in the County of Washington and State of Oregon, and running thence south 89°00' Batt, 1887.60 feet to a point on the Nosthorly boundary line of said Donation Land claim/ thwart, South O°11' Most, 1030.34 feet to a point on the West litre of that tract described in deed to Leonard B. Cason, et al, recorded January 16, 19GB, is Book 677, page 1.39, records of Washington County, being the Westerly Sort/meat =roar of that tract described in Mortgage recorded October 29, 1960, in Nook 722, Page 520, records of Washington County and the true point of beginning of the heroin described prmisea; thence mouth 88°17' UDE 161.6 feet; thence Horth 0°11' East, 90.0 fast; thence South 88°17' East, 45.0 fact to a point on the Seat line of said casco tract; thence North 0°11' last ailouq said East lino, 171.34 feet to a paint/ thence North 88017' Wart, 65.0 feet to a point/ thence South 0°11' Nest, 76.0 feat to a point; theune Horth 88°17' Nast, 141.6 feet to a point on the Want lune of maid Cason tract; thence South 0°11' test along I said Mast line, 116.34 feet to the true point of beginning. I7 I iii. ' Ja • PARCiit. 14 A part; of the aeorga Aiohoraeea Donation Land Clain Lithe Northeast quarto= of Oro southwest q°erter of section 36, Township 1 Rooth, sango 2 pest of tha Wiilaaette Meridian, in the City of Sigurd, Conoty of Rustington and 6tata of Oregon, ds.ev;lbed AS follows* 2291101 at tha Nortlu.ast aasnsr of the George Mirdut dmon Donatioe Land culla, in section 36, Township 1 604th, Mange 1 Oast of the Wil3.aamtte Meridian and running thence south 88°00' last, 1867.60 toot to a point an the Northerly boundssy rind of sold Donetion Land ails; thence South 0011' Nast, 844.0 feet to a point on the Mart itne of that tract deson:ibed in deed to Loonord S. Cases et al, reaardsd Cannan i6, 1860, Lo Rock 677, Page 1314 records of •W*nhingtoo County, being the gotta:it Northwest aornes• of the first tract dascribed in Mortgage recorded Pebruexy 4, 1169, in Soot 732, Page 68, records of Washington County cad the true paint of beginning of the herein described propartyf thump South 88°17' Tact, 141.6 fast to a point, thence Worth 0011, East, 76.0 feet to point; thence south 88°17' last, 85.0 feet to a point on the Bast lino of said Cason tract; thanno North 0°11' Neat along said Mast lino, 113.66 tent to a point; thence North 88°17' Wast, 206 foot to a point oa the Pest lice of said Cason tract, thence South 0011' West along said.Neat lino, 190 feet to the true point of beginning. PAM&Vit A part of the Coarse Richardson Donation Land Claim is the Northeast quarts= Of the Southwest quarter of section 36, Township 1 south, Range 1 Wast of the t;illaostto Waridian, in the City of Tigard, County of 1iAahiogtOA and State of Orogen, described as follower _ . filiaMmo at the northwest corner of the Goerga Richardson Donation Land Claim is Section 36, Township 1 South, Pangs 1 West of the Willaaaw. Meridian, in the C.onnty of Washington and State of Oregon and minting thence South 69°00' Past, 1887.80 foot to a point on the Poltharly boundary lion of paid non►tton Land claim; theirs south 0°11' Wart, 654.0 feet to a point on the Want line of that tract described in deed to wee Leotard 2.. Cdeao at al, retarded January 16, 1568, in Gook 677, Page 139. records of wasbington County, being the Northwest corner of this first tract daaoribod in 11111 Wortgego recorded in hook 745, Pogo 485, rte rds of Washington County and tba true point of beginning of the heroin described property, thence south 88°17' Pant, 206 -- feat to a paint au the last 1ica of said ocean tract, thanco North 0°3.1' Leat ulnad 1111 said Nast lino, 186.0 feet to a point; thecae North 88017' rust, 206 feet to a point rss� on the Went 3*ea of said Cason Lanett! thence South 0011' Nest along said West Lias, ewes 186.0 feat to the trims point of beginning. • 1(( ?,:,'a - . • RK• , • t • • • UR=. VIZI A.part of the George Wiohe dson Donation band Claim lathe Martheast goarter of bke aouthnast quarter.of Section 2d, Township 1 Doeth, Stange 1 Plast of the Wiilemebta iiorLaian, in the City of Tigard, ootmty of Washington and State of Grosser 4saeribed as follows; SWIMMING at the Northwest oorner of the aeons Richardson Donation Land G3afo ip Sootiow !St thews south WOW' Seat, 1087.00 feet to a point on the Northerly boondasy of Said DoettJea Lend Chia► theses South 00111, 290 feet to a gob*, said point being the Sautkmrt career of a tract conveyed to floor iidlar and Crani 6idlar ismommosin by deed recorded Noreeher 28, 1911 in Deed kook 90, PACs 45, and the tetra point of bpioaipq, two= south Goii' West, 178 fact•to a point on the Wait line of that tract described is a deed to ;Aboard S. Cason et el,•rocot'de4 January 16, 1968 in Rook 877, Paan 1.39, mores of Naehin4ton County, being the $orthrsst conker of the first trent • described in Mortgage rs0orded Hay 19, 1571, in Book 810, Pegs 167, records of toe+'t'%gton county; thence South 68017' Nast, 206 fast to 8 point on the East line of raid Canon tract; thanca Worth 0011' Scat Gleno sa1.d East line, 178 feet to the 8onth lino of said tidier craft; theses 8iorth 690 Meat alonq.the South lino of said ■idler tract, 206.0 teat to the true point of beginning. • • • i5- Internal Revenue Service Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Date: March 3, 2017 Person to Contact: Mr. Molloy— ID#0203248 Toll Free Telephone Number: 877-829-5500 WILLIAM MAXWELL 4800 SW MEADOWS RD STE 300 LAKE OSWEGO OR 97035 Dear Sir or Madam: This is in response to your letter of January 30, 2017, requesting copies for Residents Resources. Enclosed are the copies you requested. If you have any questions, please call us at the telephone number shown in the heading of this letter Sincerely. A Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: ,(,� 81-1513248 .L.3 db ' tl 21116 DLN: 26053478001966 RESIDENT RESOURCES Contact Person: 4800 SW MEADOWS RD SUITE 300 CUSTOMER SERVICE ID# 31954 LAKE OSWEGO, OR 97035-5277 Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 170(b) (1) (A) (vi) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 19, 2016 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c) (3) . Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard) . If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 5436 -2- RESIDENT RESOURCES Sincerely, ;/, .// , //IP y?, Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements Letter 5436 AIS-Fiscal Impact of Tax Exemption Property Approximate City of Tigard City of Tigard Total Tax Rate Total Property Assessed Tax Rate Property Tax Tax Impact(All Value* (Including Impact Jurisdictions) Bond Levy) (Estimated) Village at $1,551,640 $2.8705/$1,000 $4,454 $17.0773/$1,000 $26,498 Washington Square Single Family $214,145 $2.8705/$1,000 $615 $17.0773/$1,000 $3,657 Home—9330 SW Tangela Ct. Greenburg $5,726,360 $2.8705/$1,000 $16,438 $17.0773/$1,000 $97,791 Oaks The Knoll @ $3,898,015 $2.8705/$1,000 $11,190 $17.0773/$1,000 $66,568 Tigard Hawthorne $5,912,155 $2.8705/$1,000 $16,971 $17.0773/$1,000 $100,964 Villas Total Impact $49,668 $295,478 * Because these properties have been exempted from property taxation in the past,Washington County does not show a current assessed value. These figures are based on 2/3 of current market value. Tigard tax rate determined by City of Tigard and City of Tigard-After (bonds) Total tax rate located in Washington Co Listing by Tax Code 023.66 'Pi " City of Tigard TIGARD Memorandum To: Toby LaFrance, Finance and Information Services Director From: Schuyler Warren,Associate Planner Re: CPAH 2018 Applications for Tax Exemption Date: March 6, 2018 Community Partners for Affordable Housing (CPAH) has submitted separate applications for low- income housing tax exemptions for each of the four properties it owns and manages inside the city. The four include the 26-unit Village at Washington Square, the 84-unit Greenburg Oaks, the 48-unit Knoll at Tigard senior housing project,and a four-bedroom single family house located two blocks from the Greenburg Oaks units at 9330 SW Tangela Court. Tigard Municipal Code (TMC) 3.50.020, "Nonprofit corporation low income housing;exempt criteria," provides criteria for considering exemption requests. A review of these criteria follows. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or(4) of the Internal Revenue Code . . . CPAH submitted with their applications a copy of an Internal Revenue Service letter, dated March 11, 1999,verifying that CPAH qualifies as a 501(c)(3) organization.This criterion is met. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. CPAH has submitted Articles of Incorporation demonstrating that upon dissolution, the organization's assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code,or shall be distributed to the federal, state, or local government for a public purpose. This criterion is met. 3. The property is occupied by low-income persons. Documents submitted by CPAH demonstrate that in the case of all four of its projects, tenant income is verified upon application and is re-certified on an annual basis. Residents may remain in their units as long as they demonstrate qualifying income at entry. Continued eligibility is determined with household income at or below 60%of the area median income (AMI). Within each of its applications,CPAH certifies that all residents served by the four properties in question earn at or below the 60% of AMI. This criterion is met. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c)(3)or(4)of the Internal Revenue Code . . . CPAH is applying for full exemption at all four properties. CPAH has submitted documents demonstrating that all four properties are fully dedicated to nonprofit activities. This criterion is met. 5. The exemption has been approved as provided in Section 3.50.050 This criterion relates to the required city process for handling exemption requests. Section 3.50.050 states the city will determine eligibility for exemption (as is detailed in this report) and send notice of the determination to the County Assessor. Conclusion: CPAH-owned properties have qualified for tax exemption every year since 1996. According to the applications submitted for FY 18/19 exemption,no changes in circumstances have occurred that would disqualify the non-profit housing provider from continuing to receive the exemption. The city's "Affordable Housing Program," adopted in September 2002 as "a complete and official statement of the City's overall affordable housing program," includes tax exemption as one of the city's strategies for facilitating affordable housing in the community.The exemption's purpose is to allow the operators of low-income housing to decrease annual operating expenses, thereby allowing them to serve lower-income households. According to the CPAH applications,if granted, 100% of the property tax exemptions will be passed on as a direct subsidy for its residents. Therefore,the granting of exemptions to CPAH is consistent with the applicable TMC standards and with adopted city housing policies. COMMUNITY PARTNERS . e . ! . FOR AFFORDABLE HOUSING, INC. �� * a PO Box 23206•Tigard-OR 97281-3206•TeC603.-293-4038•Fax:503-293-4039•www.cpahinc.org• nfo@cpahinc.org City of Tigard Application for TaxAbatement Febnua y 19,2018 Village at Washington Square 11157-11163 SW Hall Boulevard, Tigard A. Property Description 1B. Project's Charitable Purpose [C. Certification of Resident Income Levels ID.� flow Tax Exemption Will Benefit Residents 1 E. Tax Exempt Status IF. Verification of information {G. IRS Letter A. Property Description Village at Washington Square is located at 11157-11163 SW Hall Boulevard, between SW Spruce and SW Pfeifle in Tigard. The site is located within the Washington Square Regional Center and is proximate to employment opportunities as well as public transportation and other services. The Village at Washington Square includes three residential buildings with a total of 26 dwelling units, and a community building,all arranged around a central courtyard/play yard. The project includes one studio, seven one-bedroom, five two-bedroom, seven three-bedroom and six four-bedroom units. Eleven of the units are traditional apartment flats,while the other 15 are two-story townhomes with bedrooms above the main floor living space. The total site sits on.84 acres. In 2012,Village at Washington Square received exterior caulking and painting as part of the on-going focus on quality maintenance. Some additional landscaping was completed in 2013. Legal Description: Partition Plat 1998-038,Lot 1 and Partition Plat 1998-038, Lot 2 In the City of Tigard,County of Washington, State of Oregon Tax Lot 1S135DA(04600&04700) B. Projects Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. When it opened in 2002,The Village at Washington Square was the first addition of affordable units to the Tigard housing stock in a decade. The 26 units are priced to be affordable to very low, low, and moderate-income residents. The project is subject to an extended use agreement to keep the rents affordable for 60 years,effectively the full life of the project This covenant is recorded with the title of the property and requires that rents will be affordable to households at 30%,45%and 60%of area median income and significantly below market rents. Half of the units are three and four bedroom apartments serving larger families who are often unable to find affordable rental opportunities in Tigard. CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries,and the Tigard School District to enhance the safety and quality of life for residents and to ensure that our programs are well-coordinated with other community resources. CPAH works closely with Community Action and other agencies to provide information and referral as well as emergency services such as food boxes as well as rent and utility assistance. Coordination agreements with social service programs such as Lutheran Community Services and Community.Action Organization,enhance ongoing case management and link stable housing with successful program outcomes. CPAH offers a variety of programs for youth including after school and summer programs as well as adult services including Neighborhood Watch,classes in support of parenting skills, budgeting and other financial literacy skills,and nutritional shopping and cooking. The Village at Washington Square is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area has the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population, it is home to nearly 16%of the city's minority households. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 C. Certification of Resident Income Levels Resident Income revels are verified upon application for tenancy and at annual re-certification. Residents may remain in their units as long as they income qualify at entry. Rents are well below the market for the area. We certify that all apartments in this project are targeted to and remain affordable to households earning at or below 60%of the AMI. Compliance with income restriction requirements is audited annually by the State of Oregon Department of Housing and Community Services,Washington County Office of Community Development, and by our limited partner investor, Key Bank. D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption is a direct subsidy for the residents(lower rents)as operating costs are lower due to tax abatement. Some costs,such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is the general partner of the Village at Washington Square Limited Partnership,a single entity asset. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually,as does the Village at Washington Square. The State of Oregon Housing and Community Services Department and the U,S. Department of Housing and Urban Development review the project and resident files annually. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. .-x.: Xl i" _ j ,)/) ///Cr achael Duke, Executive Director Date APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS ,, :�' 14. FOR AFFORDABLE HOUSING, INC. 1ldItI� a • PO Box 23206•Tigard OR 97281-3206•Tel:503-293-4038•Fax:503-293-4039•www.cpahincorg• info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Tangela Single Family Rental Home 9330 SW Tangela, Tigard, OR A. Property Description B. Project's Charitable Purpose C. Certification of Resident income Levels ID. How Tax Exemption Will Benefit Residents IE. Tax Exempt Status F. Verification of Information G. IRS Letter A. Property Description Community Partners for Affordable Housing,Inc.acquired the single family"Tangela House" at 9330 SW Tangela in Tigard, on December 31, 1999, with assistance from the Washington County CDBG program and an original loan from Washington Mutual Savings Bank which Is now with Banner Bank. The Tangela home is located just two blocks from CPAH's multifamily project, Greenburg Oaks Apartments and is overseen by the site manager at Greenburg Oaks. The two story 1,916 square foot house sits on a 5,450 square foot lot and is zoned R-7 residential. CPAH converted an upstairs bonus room into a 5th bedroom and completed other necessary repairs after the Initial acquisition as well as additional upgrades after the first turnover. In 2013, CPAH replaced the furnace and plans to re-roof and re-paint the home In the next two years. The first residents lived in the home from early 2000 until late 2006 when they moved out of the area The current residents have been in the home since February 2007 and remain in the home today. We consider these tenancies as very successful outcomes providing a stable neighborhood environment to raise families that had previously experienced transient and sub-standard housing. Legal Description: Barbee Court, Lot 1,Tigard,County of Washington,State of Oregon, Tax Lot: 1S135DC-05300. B. Project's Charitable Purpose Community Partners for Affordable Housing,Inc.(CPAH)creates and maintains safe, healthy,and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH acquired the single family home in order to assist the County and the Good Neighbor Center Shelter in meeting a"replacement unit"requirement triggered by the Uniform Relocation Act when the shelter acquired its current site and demolished a single family home housing a low- income family. CPAH completed needed repairs and upgraded the Tangela home to a five- bedroom dwelling,in order to provide a rare opportunity in our community—an affordable single- family rental house for a very large family. The home is proximate to CPAH's Greenburg Oaks property,where management and resident services are available to the household. These services include a computer center,community room, neighborhood watch,Individual Development Account grants, and other programs.The resident services coordinator and property management staff visit the home on a regular basis to ensure that the property is well managed and to maintain an ongoing relationship with the residents. The home is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area boasted the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9%of Tigard's population base,it is home to nearly 16%of the city's minority households. C. Certification of Resident Income Levels Resident income level is verified upon application, and must be less than 60%of the area's median income. Income is recertified annually. We certify that all residents served by this property earned at or below 60%of the AMI. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 D. Flow Tax Exemption Will Benefit Residents 100%of the property tax exemption is passed on as a direct subsidy for the residents. Every dollar reduction in operating costs results in a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing results in a net savings of public resources. Fewer and less-severe police calls,healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exent Status CPAH is direct owner of the Tangelo property and is a nonprofit 501(c)(3) organization. Our operations are audited annually to,among other things,confirm that we are in compliance with our charitable status and with requirements of the County grant and Banner Bank loan documents. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of residents for compliance with program guidelines. achael Duke,Executive Director to APPUCATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS • • • , ,,, FOR AFFORDABLE HOUSING, INC. Kn a • PO Box 23206 •Tigard OR 97281-3206 • Te1:503-293-4038 • Fax:503-293-4039 • www.cpahinc.org • info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Greenburg Oaks (fomierly villa La Paz)Apartments 11875 SW 91 st Avenue, Tigard FA. Property Description rB Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents [E. Tax Exempt Status IF. Verification of information G. IRS Letter A. Property Description Greenburg Oaks Apartments (Tax account# R-276472), 11895 SW 91n Avenue, is just off Greenburg Road, near Pacific Highway. The site sits on 3.01 acres and consists of 84 units in four buildings: 12 one-bedroom/one-bath 564 square foot units,60 two-bedroom/one-bath 839 square foot units,and 12 three-bedroom/one-bath 1,007 square foot units. In 1998,CPAH added the now much used Community Center to the complex, The Community Center houses a computer center, library,multipurpose room and property management office. In 2005/2006,CPAH completed a$3.5 million dollar rehabilitation of the apartment interiors,building exteriors and project site. Highlights of the rehab included:replacing all building siding and windows,re-configuring and repaving the parking lot, replacing all landscaping, upgrading the recreation facilities,upgrading site lighting and signage. Interior work included replacing all waterlines and drains, replacing all cabinets, countertops, light fixtures and most appliances(refrigerators,dishwashers,hot water heaters)with Energy Star rated devices,replacing all window coverings and many carpets,re-texturing and repainting all apartment interiors. The rehab project featured energy saving appliances, compact fluorescent light fixtures, better insulation,and low volume plumbing fixtures,all of which have reduced tenant energy costs. The rehab work was done without displacing any tenants and with very minimal rent increases. As a testament to the quality of the rehab work, vacancies generally average under 5%, accounts payable are current and annual cash flow is positive.In 2011,CPAH completed exterior re-caulking and exterior painting as part of on-going quality maintenance at Greenburg Oaks. Financing for the project came from a number of public and private grants and low income housing tax credit investments. No new debt was taken on. Approximately$10,000 of the funding was provided by the City of Tigard Affordable Housing Fee Assistance program. Other funding came from the Meyer Memorial Trust, the Paul Allen Foundation, the Oregon Community Foundation, Washington County Office of Community Development through the CDBG and HOME investment programs,and the State of Oregon. Key Bank increased its investment by over$2 million dollars. Legal Description: The site is located in the southeast%of Section 35,Township 1 South,Range 1 West(Willamette Meridian). Tax Lot: The Washington County Map shows the site as tax lot 23-74-2000, Parcels I, II,and III. B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents Including families, seniors,and people with disabilities In Washington County and SW Portland. CPAH's acquisition and renovation of the complex has ensured that the previously neglected property is professionally managed as safe,decent,and affordable housing. Greenburg Oaks has significantly reduced the housing cost burdens of our families. The efficient delivery of our services improves the health and prospects for all household members,and serves to help break the multi- generational cycles of poverty. CPAH's commitment to 40 years of affordability for those at 50 and 60%of median income guarantees that these apartments will be affordable effectively for the life of the buildings. CPAH maintains active partnerships with the Tigard Police Department Tualatin Valley Fire & Rescue,Tigard Libraries,and the Tigard School District to enhance the safety and quality of life for residents and to be sure that our programs are well-coordinated with other community resources. Partnerships with Community Action, Good Neighbor Center, Luke-Dorf, Neighborhood House, APPLICATION FOR TAX ABATEMENT PAGE 2 OF 4 Lifeworks NW and other organizations to provide information and referral as well as emergency services like food boxes and rent and utility assistance. Coordination agreements with these agencies enhances ongoing case management and provides a fresh start to many families facing significant barriers moving from homelessness to permanent housing. Several families each year are being reunited with their children as a result of receiving a housing opportunity at Greenburg Oaks. Three of the apartments are reserved for low income families with at least one member in active recovery from alcohol or drug addiction and an additional two apartments are set-aside for clients of the LukeDorf Housing Team. The Community Center at Greenburg Oaks is the focal point for support, skill building, and community building activities offered by CPAH through its resident services program which includes after-school and summer youth programs as well as the annual winter coat distribution and holiday event. CPAH's on-site computer learning center is used by youth for homework, research,e-mail, and educational games; and by adults for job search activities and Internet access. The Tigard Library has twice obtained grant resources to purchase children's material for our on-site library. CPAH offers a variety of adult services as well. The Community Center is also host to a number of general community activities including rent readiness courses, HopeSpring parenting classes, financial literacy classes, parenting safety skills and budget and nutrition classes. The Community Center hosts weekly meetings for AA, NA, and Alanon groups. Food distributions are also held in the Community Center for both the residents at Greenburg Oaks and others in the'surrounding community. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and are recertified each year. CPAH has covenants with the state and with Washington County to use the property exclusively for low income rentals for a period of at least 40 years. These covenants require that all households have earnings at or below 60%of the area median income. Some units are restricted to households earning at or below 50%. Compliance with these covenants is monitored by the State of Oregon Department of Housing and Community Services and by theWashington County Office of Community Development. We certify that all apartments in this property are targeted to and remain affordable to households earning at or below 60%of the Area Median Income. D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption Is a direct subsidy for the residents. Every dollar reduction in operating costs is passed on as a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources mostly through fund raising. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. it can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is general partner of the Villa La Paz Limited Partnership,a single asset entity established for the purpose of acquiring the apartments and qualifying for low-income housing tax credits. CPAH's IRS Determination Letter is attached. CPAH undergoes a full independent audit of its books annually, as does Villa La Paz, LP. Both the State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. APPLICATION FOR TAX ABATEMENT PAGE 3 OF 4 F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge, Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines, , Itchael Duke, Executive Director Date APPLICATION FOR TAX ABATEMENT PAGE 4 OF 4 COMMUNITY PARTNERS1111` . • . FOR AFFORDABLE HOUSING, ��� INC. kt ♦ a MI PO Box 23206•Tigard OR 97281--3206*Tel 503-293-40;18•Fax:603-293-4039•www.cpahinc.org Lo(A+ab",tire City of Tigard Application for Tax Abatement Febuaty 19,2018 The Knoll at Tigard 12291 SW Knoll Drive Tigard, Oregon 97223 A. Property Description 1B. Project's Charitable Purpose _ J IC. Certification of Resident income Levels J D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification.of information G. IRS Letter PAGE 1 OF 3 A. Property Description The Knoll at Tigard is located at 12291 SW Knoll Drive in Tigard (on Hall Boulevard between SW Knoll and SW Hunziker). The Knoll is a prime example of urban development,perched on the edge of the developing downtown of the City of Tigard, walking distance to the library, senior center, transportation, shopping and a variety of other amenities. Previously,three parcels of land totaling 1 acre supported only 3 single family residences.Following the recent zone change,and consistent with the long range goals of the City development plans,The Knoll at Tigard brings this density to nearly 50 units per acre. The design takes advantage of a site with an established infrastructure of utilities, adjacent transportation and services. The Knoll receives a "very walkable" rating from Walkscore.com. The Knoll at Tigard is a 45,000 square foot,48-unit apartment building along with common rooms and meeting space, providing active living for independent, low-income seniors. Streetscape improvements were required on all 3 street frontages,including development of sidewalks,planting strips with street trees and below-grade utilities. Public spaces including entry courtyards and site walks are well lit. The Knoll at Tigard is a secure access building with a surveillance system. The total site contains.98 acres. Legal Description: see attached Exhibit A Tax Lot R458454,R458436, R458445 B. Project's Chale Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. The Knoll at Tigard is CPAH's first affordable units for seniors in Tigard and compliments CPAH's affordable units for seniors in Hillsdale. The 48 units are affordable to very low and tow income residents on a permanent basis(The Knoll at Tigard provides affordable housing for a minimum of sixty(60)years,with maximum rents regulated by covenants on the property).Rents are affordable to households at 30%to 60% of area median income and below market rents. 45 of the units are one bedroom units and 3 of the units are two bedroom units(1 of which for the on-site manager). 12 of the one bedroom units are Project Based Section 8 units through the Washington County Housing Authority and are set-aside for Veterans. CPAH has expanded its community partnerships with the Tigard Police,the Tigard Library and the Veteran's Administration.The common areas include a living room and kitchen for residents'use as well as a computer center. The community room is available for resident potlucks, holiday events and other activities. C. Certification of Resident Income Levels Resident income levels are certified upon application.The seniors at The Knoll may remain in their units as long as they income qualify at entry. Rents for the one bedroom units average$677/per month for the one-bedroom apartments(25%+ below average market rates). Rents are$780 per month for the two-bedroom apartments. Water,sewer and trash are included in the monthly rental. PAGE 2 OF 3 D. How Tax Exemption Will Benefit Residents The property tax exemption is a direct savings for the residents,allowing for reduced operating costs which results in reduced rents for the seniors at The Knoll. For both the initial development,and long term operations of the project,full tax abatement is essential. The project pro forms allowed for the construction of The Knoll which meets all City and State design requirements along with affordable rents for our seniors. The Knoll includes financing through Washington County HOME and CDBG funds,State of Oregon Trust Fund and Tax Credits. JPMorgan Chase is the private lender with Enterprise Neighborhood Partners as the investor(under the tax credit program). Tax abatement was critical in meeting lender and investor requirements while keeping rents affordable for The Knoll at Tigard and is key to long- term sustainability of the project operating with affordable rents for seniors. E. Tax Exempt Stems CPAH, an Oregon non-profit, is the general partner of The Knoll at Tigard Limited Partnership, a single asset entity.CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does The Knoll at Tigard. Mark Schwing of Markusen&Schwing in Beaverton currently provides audit services for CPAH and CPAH's single asset properties.The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development both inspect and audit the project annually.The tax credit investor(Limited Partner) also monitors and inspects the project as does Washington County. F. Verification of irdormation As CPAH's executive director, I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management acts as the property management agent providing the day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. f— .-y)11 Rachael Duke,CPAH Executive Director Date PAGE 3 OF 3 NONPROFIT ARTICLES OF INCORPORATION OF COMMDNITY PARTNERS FOR AFFORDABLE HOUSING ARTICLE I The name of the corporation is Community Partners for Affordable Housing and it shall not have members. ARTICLE II . f The corporation is a public benefit corporation. The corporation is organized exclusively for religious, charitable, scientific, literary or educational purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code. Among the charitable and educational purposes for which the corporation is organized are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and moderate • income individuals and families in Washington County. b. to assist and facilitate the purchase and rental of real !' property by low and moderate income persons. c. to eliminate discrimination in the acquisition, disposition and rental of real estate by undertaking educational and other activities which will assist in the implementation of Federal, State and local Fair Housing Laws. d. to undertake housing, community development and community self-help projects which serve the needs of low and moderate income persons in Washington County. e. to administer housing as a community service regardless of race, color, religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation may engage in other lawful activities for which corporations may be organized pursuant to the Oregon Non-Profit Corporation Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's activities shall be in furtherance of any purpose other than one of the exempt charitable purposes for which the corporation is organized. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other-provision of these Articlesthe corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501(c) (3) of the Internal Revenue Code, or (b) by a corporation, Stt contributions to which are deductible under Section 170(c) (2) of the Internal Revenue Code, or corresponding section of any future federal tax code. ARTICLE III The name of the registered agent is Margaret Ann Jozsa and the address of the registered agent is 14980 S.W. 103, Tigard, Oregon 97224. ARTICLE IV The directors will be elected or appointed after incorporation as follows: At each annual meeting of directors, the directors then in office will elect directors for the succeeding year. Vacancies on the board of directors, whether created by resignation or' by increase in the size of the board, will be filled by affirmative vote of the remaining director or directors, though less than a quorum. ARTICLE V The mailing address where the Division may send notices is as follows: Community Partners for Affordable Housing c/o Neighborshare 12750 S.W. Pacific Highway Suite 123 Tigard, Oregon 97223 ARTICLE VI Upon dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Upon dissolution of the corporation, the board of directors shall, after paying or making provision for the payment of all liabilities of the corporation, dispose of all the assets of the corporation by transferring them to such other organization or organizations then qualifying as exempt organizations under Section 510(c) (3) of the Internal Revenue Code or corresponding section of any future federal tax code, as the board of directors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organization or organizations operated exclusively for such purposes, as said court shall determine. ARTICLE VII Provisions for regulation of internal affairs of the corporation: (a) The corporation shall be a non-membership organization and shall be managed by its board of directors. (b) No part of the net earnings of the corporation shall , inure to the benefit of, or be distributable to, its directors, officers or any other private persons, except that the corporation shall be authorized and empowered to make reasonable compensation for services rendered and to make payments and distribution in furtherance of the purposes set forth in Article 2 hereof. (c) The directors and officers of the corporation shall be entitled to indemnification from the corporation to the full extent allowed by the-Oregon Non-Profit Corporation Law. (d) The personal liability of the directors and uncompensated officers of the corporation to the corporation for monetary damages for Conduct as director or officer is hereby eliminated to the fullest extent allowed by law. The undersigned President of Community Partners for Affordable Housing certifies that the board of directors of the corporation has approved and adopted the foregoing articles pursuant to the resolution adopted at a meeting on October 7, 1993. Date: October 7, 199347:494 Mary wintek President 09/21/2004 11:17 FAX 5033784a81 CORP DIVISION e002 is i ildsW160.00901 40 ',1:14, searemaratarar no WM Mod=LIE MP and elf Mei tap/ , ` gmbOy Awry Wow: 't+,-= 11 ,se am tweet rare MED -71' Serum OR 0310.ozso 44 Y`• "$TAS ARTICLES OF INCORPORATId ►N copomtkin ARTICLE1: Nameofthecoipac on: Community Parjaere for Affordable Housing, ARTICLE 2: Type of corporation(check one only): ® Pubic bonen O Mutual benefit Q AeilOoua ARTICLE 3: Name ofthe initial registered pent: Margaret Ann Jogs Aes#dence or once address of revered agent(must be a Mel address in Oregon): 14980 6.W 103 Ti Art 97224 ARTICLE 4: PrInoiptd oToe address: c/a Ne ghborcare 12750 S.N. Pacific Righxa its 123 Ti art, OR 97223 Street and num�r rSut Zip code ARTICLE 5: Indicete it corporation will nave members: 0 Yes No ARTICLE 8: Distribution of assets on dissolution or final iquldlnion: Upon dissolution of the ' corporation, its assets shall be dtetributea for one or more exempt purposes within the moaning of seetion 501(c)(3), or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, a public purpose. 89201381903 831.219 29.00�lL .` NP•1(7i91) ( /r . , t i Os/21/2004 11:17 FAX 6033784381 CORP DIVISION 1003 t . ANNUS OP NlOVIIPORATION NONMl0PIT CORPORATION Papa 9 Hams of OOrporallon: _ _ _-. • _ • - • attain. 1 I . ARTICLE 7: Name rid address of each drew*or epilog. { public baWM,you must Milne or mars diraotors and Mar addrassee Wow.) Marr 9wirttok - 9915 S.W. Preying St. 443 Tigard, OR 97223 LaronMex owl - 9405 8.1t, ltrltenaie 'teardz int 97223 ���� i.�■ rrll�.rrrr+rr Margaret Ann Jozsa - 14980 S.W. 309 Tigard,Rr� 97224 ARTICLE 8: in Each director named has oonsentad to this appointment. ARTICLE 9: Optional provisions: None. ARTICLE 10: Name and address of the incorporator: grrpt N t 14980 S.% 103 Tigard, 01 97224 g AdtlroBi Execution; Margaret Ann Joaata Nroa r re Printed mime Title Pen1011 t0=Met abO t this URI: Margaret Ann Jozsa 288-5995 —Rimenim! NMtf ONO,o l to RIO Ceepermion DMMOn. SWIM the complMad formate!*out Cmpulatisla D1v1MOn, eu.wmsMmeglatty,iss ism Strait NE.S On-On!730081 .. (7191) 00/21/2004 11:17 FAX 5033784381 CORP DIVISION 121004 f t[1 p 1JU✓ee.4.Ap rvsnr SAW MO mono o+ .SECRETARY OF STATE rxderactio orra It maw SWIM,rgen +n ti .i O90100s.Registry Oft FLc .11. •; 1 r in 1211150.etua 3605301- ' 011 0721•4010 yrs• feo�j sra4i4fi NC 8 181 M7W 871 PaCihllNe 37114381 ARTICLES OF AMENDMENT Nonotit Corporation PLEASE TYPE OR PRiNTL101rt.r IN BLACK INK 1. Name of the corporation prior to wrendrnsnt: CO1,6%014044 y Far-VAtes. $e r et►ddC h lc-keft% wq 2. On a separate sheet,please state the article nlsnber(s)and set forth the v$de(s)es it Is amended to road. 3. The ainendrnsnt(s ` opted on to-l , 19 j. (0 more then one amendmert was adopted,Identify the date of adoption of each amendment. 4. Cheek the appropitate statement: voesdboa�Wnaoesn not aant($vas approved by a auffidsnt ❑ Membership approval wee tsgoted. The msrtsrahy noes Ives as f00ovac mews)Mara• Weber d meabirs Numb r d Wes NdISMl d value NIIMrisfr of Voaf so ewe foist ewe wat4dtseesod NOW eaiassinat J AmmumsM• • , I - .: - 'n Dazs • eros. elec • pylon to contact about**NV Mit ma.* • S -S " 9�f IANCE CHECKS PAYABLE TO THE CORPORATION DIVISION.MAW R'THE=mem FORM AND FEE TO CORPORATION DIVISION.1ef 12TH ST NE.SALEM.on 51310-0ete. OR FAX TO pox vs.s91. P4EANE 01CLL1DE TOUR V54 OR IMSTFROARD MJINBER AND Ei1PIRATION DATE ._��'�.,,._...:..�.�..�—.. .-.1._ 122 PAM 09/21/2004 11:18 FAX 5033784381 CORP DIVISION 0008 y i 3C 520/ 2. ARTICI4 4: c/co Pacific Highway suits 123 Tigard, OR 97223 ARTICLE 7: Lotwr* Rartof 1 09/21/2004 11;18 FAX 6033784331 CORP DIVISION 0008 r t abrrl the ai/ir! 1004-1-14.4 mrd Ewa MA meow Oro a+d WM NM eopy ►� "? ;, Corpoteion OWN•ausYlert y $10.00 i • t'f>r+ ` P1Ogo eaves Mahe Nnlnsbat eltr > 6 Ceplld arIM Na, auras 151 Registry `t r:.� t1 Bill ETSIO.1557 ' 1r s �v - t '�0 Faoeafdateosyars.�ras1 F 1 E E D 1 • JAN 2 4 1996 ARTICLES ENT . Secretary of Stab NOIVIMfft Com PLEASE TYPE OR PRINT LIQIELY MOLARS INK 1. Name of the corporation prior to amendment Community Partnere for Affordable Housing 2. On . apatite sheet, ed read. 3, the ankle timbale)and set forth the Midrib)a$It is anien3, The amendments)was adopted on 12-L , 19 j, (If more then onoamendmard was adopted,Identify the deft of adoption of each ameeedrrwrd. 4. Check the appropriate statement: Mmnbmehip approval was not required. The amendment(s)was approved by a sun:lent vote of the board of moors or incorporators. 0 Membership Sppr over was required The membendllp rote was as follows: cittgeo entitled Numberd nrnibere Number d sates Rueter OWN tAimber at voles 10 vim vow tv vete MOW 1e be cad as br cast agdna f • EXedlitlon: • Margaret Ann Jozsa President MRS Person to contact about*hie Om Margaret Pam Jozsa 503.288.3595 amt me MAKE CEM PAyAeLE TO TMEOoRPOAATION oMSICN OR tle04011 YOUR VOA OR AMBTERNARO MMISR AND EXPIRATIONDATE - ... • SUBMIT TICOMPLETED NMemoPEOTO THE Amoy!ICCAES$OR FAX 70 pos man, 122t» a3c129580233E e31.21E lad.ee 09/21/2004 11:18 FAX 6033784881 CORP DIVISION 1h007 COMMUNITY PAWN= POO IPMNOASSR *ouai p lmendasats to read as feliewst ' .MUMi= The corporation is a public benefit corporation. ?ha corporation is organised exclusively for charitable and educational purpose. Section within the meaning of tion Sel(c)(7) of the Interval Revenue Code. the charitable and educational purposes for which the corporation is organised are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for lou and moderate imam individuals and families in the cities of Tigard and Tualatin. b. ptrovaassel ursisst and facilitate the perches* and rental of real si to f by low and moderate income persons. a. inate discrimination in the acquisition, disposition and rental of real *state by undertaking educational and other activities which will assist in the implementation of Federal, State and local Pair Housing Laws. d. to undertake housing, community development and community self-help prrojecta which serve the needs of low and moderate income parsons in the cities of Tigard and Tualatin. a. to adainistar housing as a community service regardless of race, calor, religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation may engage in other lawful activities for which corporations may be organised pursuant to the Oregon Non-Profit Corporation.Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's i activities shall be in furtherance of any purpose other than one at the 'nowt charitable purposes for which the corporation is organized. No substantialof the activities of the corporation shall be the carryon of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishingor distribution of statements) any political campaign o in apposition to any candidate for public office. Notwithstanding sany other provision of these Articles, the corporation shall not I carry on} a corporation other v ities not exempt from federalraitte4 to be income tax under ried pn undersectioonn 501(0) (3) of the Internal Revenue Code, or corresponding section of ! any future federal tax coda, or (b) bye corporation, contributions i to which are deductible under Section 170(0) (2) of the Internal 1 Revenue Code, or corresponding section of any future federal tax code. i 09/21/2004 11:19 FAX 8033784381 CORP DIVISION X008 comma PANSIZES rat APNEAS= mine Wags a AMeedmemts to read as follows, ASTIOAn TT dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of : section 501(o)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for is public purpose. Upon dissolution of the corporation, the board of directors shall, after paying or making provision for the payment of ffall liabilities of the corporation, dispose of all the assets of the corporation by transferring them tto s other organization or S 0 a) (3) of the Inteznaanisations then lY as Code orcorresponding�iessection ions under at any future federal tax code, as the board of rectors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organisation or organisations operated exclusively for such purposes, as said court shall determine. AnTIOAS zs Provisions for regulation of internal affairs of the corporations (a) no part of the net earnings of the corporation shall inure to the benefit of, or be distributable to, Sts directors, • officers or any other private persons, except that that corporation shall be authorised and empowered to make reasonable compensation for services rendered and to make end distribution in furtherance of the purposes sat for Article 2 Hereof. (b) The directors and officers of the corporation shall be entitled to indsaanification from the corporation to the full extent w allowed by the Oregon lion-profit Corporation Law. (e) The personal liability of the directors and uncompensated affiacrs of the cor ',ration to the corporation for monetary dosages for conduct as director or officer is hereby eliminated to the fullest extent allowed by law. i 09/21/2004 11:10 PAZ 6033784381 CORP DIVISION IA 009 •,sf•r;1*•, Plow Ma imam • _ Fat dna mom MON el s 8iouokroof�Y1b CloidtnomploOpltrOotellOor lbrMoo aaa>Ioo; A 2,Cool ib1 .1 TCORpOlutriud „W t 4 i 11r61tlYMlalrala 'DOON •, • lo.rTii 1111PlotLoeblaas*Mit • • 1) IMrItaIN101loaigllelrsttOAhlNslw: ' ' „ • ,, , • - • • . ustatalnla�--■aP) air P0int11niinn 1114lllirtw_■IlOeleMIL OMNIsomoo nrul000w Nide ti*.and d.bed Adds NI bidden Gonidlon Getty) 3y TesPasilmalaclarpristin Sept, raS.2091 Ingsamaarairmsammarelotat Imola aro- ormOroril 0011.0114111141 ONLY NOM 11aintaiaalialONONLY 4) CU ontANworwola11t1aa Z J 8 ClsoatAaa><M,WPINAMlatlattwr 13 ekniglairad51111011 wtltMteattrtw.oawatltrolls*The gg ibilotoloropptml tom Nolotum WAN* Oiloorad lips a.�assMo.tal 011.1 Arum Moe.* Milord -wd.r drubs or b11111911_' Wad mai .MrriM•/1. Immo woad 11)1111 .Ir+. 110111 tact AlinST D madow.*JNL . _-lidied.1I* Ototottol. woo so bloom • 01.00 ata.rd wore r la.lrfar - liholver odd upludmied year oda, ❑eliaaMdwWon woo out MOM 10 01001114dNr11 .Thr It'Is agaatevtadbyMit bawd aleMoos IMinot adiwliermaw 01hr copratgs!t tis not ism!RValong Wok*._Nanoaw 11111 vox not trollb odool ala onosot riolta).nls rra»eariaOq Iaoa Ilkdked the inotea aloof ar tdo InsMoaad ad rataaleul. $) aaane I Med Nide nia - -- Diel or Stub baMarll�fYY1VImss.' 7) CtalatGr Dams Coon photo daol>1oaFFrlk 303.984.2738 FEES Meat aa>o s rls+•Ira1101U. 00. «ta.artit+war•1�.. 410a1ar1.rMlaaKM d 09/21/2004 11:19 PAZ 5033784381 CORP DIVISION [bolo • • • i4 It FOR APPORDAHLS HOUSING, INC Mho Mee?WS OR918di-S90esr .9s..2124.PmIO3,1N1958.mrw.e itiourS. a.t NP C3°4476 Amendment to Articles of Incorporation to read as follows, the changes • are italicised! ARTICLE It a. to develop, etienlate and facilitate the provision. ownership and management of homing for low and moderate income individuals and f'amiliea in the Tigard.Tualatin area and contiguous portions of southwest Portland. d. to undertake housing. community development and community self-help projects which serve the needy of tow and moderate income persons in the Tigard-Tualatin area and caattguou; portiere of southwest Portland. Article Ill The name of the registered agent is Sheila Greenlaw-Pink and the address of the registered agent is 13137 J.N. Pacific Highway, Tigard, Oregon. 97293. a ,, • Articles of Amendment•Nonprofit kyr r Secretary of State-Corporation Division-255 Capitol St.NE,Suite 151-Selore,OR 97310-1327-1 w.FIlingMOregon.com-Pinna(503)956-2200 \tj: REGISTRY NUMBER: In accordance with Oregon Nudged Stabile 192A10-192.490,Me information on this apyYcetIon is pubic escord. We must release Ula Infonnadon to el parties upon request and 1 Mk he posted on ourwebsoe. For office use crit Please Type or Print Legibly in Black litk 1 1) ENTITY NAME: Community Partners for Affordable Housing, Inc. 2) STATE THE ARTICLE NUMBER(S):and set forth the article(a)as tis amended to road.(Attarlr a separate sheet r necessary.) htlkJe k a)b deWlp,rowers and WNW*the ptovMwt,eearct4r a d trassigenimpt at housiNi kr law std nodarab teams waver er sad roman h Eatem Mmtl n O7aady aid&Mem*Pernani Aveda t d}10 trdatWe ttoaalae,oanasa5 r denabpeMawl zammudp'aensalp Protects whim wrote needs efbwend=dm.incase pewee tt Eastern WaaHectte Ca.*and SoutMest fkrOend. ,Nide 3:The name of the registered agent Is Shale Greenlee-Fla and the address dote registered agent to 6350 SW Capitol 115th my,#151,Portland,OR 67238. 3) THE AMENDMENT WAS ADOPTED ow November 29,2011 Of more thea one amendment was adopted,Identify the date of adoption of each amendment) 4) CHECK THE APPROPRIATE STATEMENT: Membership approval was not requited.The a+nencknent(s)was approved by a sufficient vote of the board of drectors Or bxarPOrators. ❑Membership approval was required. The membership vote was as(otows Ctass(es)entitled Number of members Number of votes entitled Number of votes cast Number of rotes cast to vote entitled to vote to be cast FOR AGAINST 5) EXECUTi0N:(Met be sighed by at least one olocer or director.) By my aignsdtre,I doWre as an authorized authority.that this felq has been examined by me and Is,to the best of my knovdedge and belief,true. com3ct,and ccmptele.Making false statements In this document is against the law and may he penarmed by tines,Imprisonment or both Signature: Printed Name: Title: Se...4 104. Gre(aro. uk Exe_ctt.k.\r-e CONTACT NAME:(To resolve questions with this beg.) FEES Sheila Greenlaw-Fink &milked Presets* $w $see° Crake:doncuar 56 PHONE NUMBER:(Include ares code.) No Fee ixNorproBTypeChamps No Fee isPresidMiSetretayCha+pa 503-293-4038 Ptoceeshtgfeesere mwervadade, Please makecheck payable esTcexerionDekka.' �srsati,-a♦c-.saara:.a4eR.-sa�+. 31-Articles of Amendment-Nonprofit(01/10) INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR • P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 93-1155559 LIAR I 1 Ito DLN: 17053030720009 COMMUNITY PARTNERS FOR AFFORDABLE Contact Person: HOUSING THOMAS E O'BRIEN ID# 31187 PO BOX 23206 Contact Telephone Number: TIGARD, OR 97281-3206 (877) 829-5500 Our Letter Dated: ' February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) CA) (vi)'. Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the .part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a,•section 509(a) (1) organization. If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, G.. Awg,01/ District Director • Letter 1050 (DO/CG) 1111 I " City of Tigard TIGARD Memorandum To: Toby LaFrance, Finance and Information Services Director From: Schuyler Warren,Associate Planner Re: Hawthorne Villa 2018 Application for Tax Exemption Date: March 6, 2018 Resident Resources submitted an application for low-income housing tax exemption for the 118- unit Hawthorne Villa,located at 7705 SW Pfaffle Street in the incorporated Metzger area. Tigard Municipal Code (TMC) Section 3.50.020, "Nonprofit corporation low income housing; exempt criteria," provides criteria for considering exemption requests. A review of those criteria follows. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or(4) of the Internal Revenue Code . . . Resident Resources has submitted a determination letter from the IRS demonstrating that they are a 501(c)(3). Resident Resources, as part of Hawthorne Village Apartments General Partnership, asserts their eligibility for the exemption under TMC section 3.50.020(C) which reads: C. A partnership shall be treated the same as a corporation to which this section applies if the corporation is: 1. A general partner of the partnership;and 2. Responsible for the day to day operation of the property that is the subject of the exemption. The applicant submitted a partnership agreement and memorandum of understanding (MOU) as part of their application. These documents demonstrate that the property is owned by Hawthorne Village Apartments,an Oregon general partnership.The partnership is between Hawthorne Villa LLC and Resident Resources,an Oregon nonprofit corporation. Resident Resources is a general partner of the partnership and, according to the MOU,is responsible for the day-to-day operations of the facility. This criterion is met. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. The applicant has submitted Articles of Incorporation demonstrating that upon dissolution,the organization's assets shall be distributed to one or more tax exempt entities within the meaning of Section 501(c)(3) of the Internal Revenue Code,and which have a charitable purpose that is generally similar to the dissolving corporation. This criterion is met. 3. The property is occupied by low-income persons. The applicant provided both a statement and a deed restriction demonstrating that Hawthorne Villa will only rent to individuals or families who make at or below 60%of area median income (AMI). The applicant states that compliance with this requirement includes efforts made at the advertising, application,and verification stages. In addition,the applicant has partnered with a compliance consultant to oversee new resident screening and annual certification. This criterion is met. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c) (3) or(4) of the Internal Revenue Code . . . Resident Resources is applying for full exemption at Hawthorne Villa. Resident Resources has submitted documents demonstrating that that the property is fully dedicated to non-profit activities. This criterion is met. 5. The exemption has been approved as provided in Section 3.50.050 This criterion relates to the required city process for handling exemption requests. Section 3.50.050 states the city will determine eligibility for exemption (as is detailed in this report) and send notice of the determination to the County Assessor. This criterion will be met upon approval by City Council. Conclusion: Resident Resources,as a general partner in Hawthorne Village General Partnership,has applied to the city for a tax exemption in two previous tax years.The property was recently purchased by a new property owner who plans to maintain the affordability of the property. The property has previously received city tax exemption through Accessible Living Inc. (as part of Hawthorne Villa General Partnership),and Tualatin Valley Housing Partners. Resident Resources'mission is "to enable low income families of Oregon to find and keep affordable housing."The application states that through a Resident Service Plan(RSP) the nonprofit provides assistance with education,employment,and health services. The city's "Affordable Housing Program," adopted in September 2002 as "a complete and official statement of the City's overall affordable housing program," includes tax exemption as one of the city's strategies for facilitating affordable housing in the community.The exemption's purpose is to allow the operators of low-income housing to decrease annual operating expenses,thereby allowing them to serve lower-income households. According to the CPAH applications,if granted, 100% of the property tax exemptions will be passed on as a direct subsidy for its residents. Therefore, the granting of exemptions to CPAH is consistent with the applicable TMC standards and with adopted city housing policies. www.residentresourcesoregon.org 4800 SW Meadows Rd#300 Lake Oswego,Oregon 97035 Phone 503-534-3777 Fax 503-482-7430 To: City Of Tigard February 14,2018 13125 SW Hall Blvd Tigard,Oregon 97223 Attn:Toby LaFrance Finance and Information Services Director Application for Tax Abatement Hawthorne Villas Located at 7705 SW Pfaffle Street Tigard, Oregon 97223 A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. Attachments A. Property Description Hawthorne Villa Apartments is located at 7705 S.W.Pfaffle Street in the City of Tigard.The property Is set on 4.76 Acres adjacent to Pacific Highway.The Property is composed of eight apartment buildings with a single family home in front that is currently used as managers home and office with some space used for the community room,See Attachment#1 site plan.In these eight buildings there are one hundred eighteen separate apartments consisting of sixty two one bedroom apartments that are approximately six hundred five square feet,twenty one,one bedrooms that are approximately six hundred eight five square feet,five two bedrooms one bath at approximately seven hundred ninety square feet and thirty studio apartments that are three hundred sixty square feet.The property is restricted to low income families who make 60%of the average medium income for Washington County. The project has recently been purchased by a respected local property owner(see attachment#2) who plans to maintain the affordability component to the property.His name is Rajiv Jain.He collectively owns and manages over eight hundred apartments in several states.Over three hundred of those apartments participated in section 42 restricted rent housing program.He resides in Portland and is committed to socially responsible ownership of all his properties.He has partnered with Resident Resources to create a safe and secure environment for these valued individuals whom need affordable housing.All the properties that Mr.Jain owns are well maintained with responsible management employees who are compassionate about what they do. Resident Rasa,.-pc The property being located within walking distance to many local employers and employment sectors makes it an ideal location for those seeking affordable housing.The transportation needs of the Residents is well met as there are numerous transportation hubs within walking distance including Pacific Highway,the 217 and 5 freeways,bus routes and local rail transportation close by. The residents enjoy that there is adequate vehicle parking(171 parking stalls).This relieves them of the high cost of parking a vehicle.This can foster a sense of independence. The Apartments business name is Hawthorne Villas Apartments,it is considered a section 42 affordable housing complex also know as Low Income Housing Tax Credit(LIHTC). It is a federal Program created in 1986 under the Federal Tax Reform Act. It accounts for over 90%of the affordable housing in the United States.The nature of the property and location make it an ideal property to receive this tax abatement. For your records the tax parcel is R282429 in Census Tract 306.00 with a Zoning of R-12. The lot is over 207,000 square feet with multiple garden areas and courtyards.It has several laundry rooms for residents to do there own laundry. B. Projects Charitable Purpose Resident Resource's mission is to enable low income families of Oregon find and keep affordable housing.Through our resident service plan (RSP)we strive to create an environment in which families feel safe to seek additional assistance in education,employment and health services. We have an open door policy in which all are welcome.Each Resident whom resides or wants to reside at Hawthorne Villas has an appointment with a staff member who helps identify potential needs relating to our core values of affordable housing,continued educational opportunities,employment referral services.We offer mediation assistance with the ownership/management to prevent evictions that may lead to homelessness.Our many health and social services contacts and referrals are a great resource for the residents with a focus on confidential assistance. Our commitment to the Citizens of Tigard and around the state of Oregon has been to maintain an dignified approach to foster a confidential yet friendly approach to the housing needs of families who may need affordable housing.Many Residents face other significant challenges that can be softened with the right approach.This is done while maintaining the integrity of the property both materially and physically.Creating a safe environment for all Residents is our highest Priority. Hawthorne Villas Ownership has made a significant commitment to fund Resident Services to a level where each resident can have a personal touch that will encourage them to use our services if needed.The tax abatement will go a long way to helping these fine Citizens of Tigard. C. Certification Of Resident Income Levels Hawthorne Villas is a rent restricted apartment complex that will only rent to individuals or families whom make at 60%or below of Washington County Area Medium Income.This compliance is achieved with our advertising,application process,verification process.A second oversight to insure our compliance we have partnered with expert Alexia Consulting whom is approved by the State of Oregon.They are experts in compliance and monitoring in this area,over seeing each and new Resident as well as a yearly audit of each Resident File and our record keeping.The property will rent restricted for at least the next 12 years.See Attachment#4 Resident Resources D. How Tax Exemption will Benefit Residents With this tax exemption we are able to maintain the low income and affordability component to this property.The Tax exemption also allows us to fund Resident Resources thus reducing Homelessness in the City of Tigard as well as providing valuable services for some families who most need it.Through our efforts and management style we have consistently reduced police contacts with Residents which reduces costs to the City.The tax exemption allows us to staff a position which takes some of the burden off of the City of Tigard's resources.The exemption is used to create a safer, healthier more stable environment for Low Income Families. E. Tax Exempt Status Resident Resources is a Domestic Non Profit Public Benefit Corporation Registered in the State of Oregon. Registration#118973395 Certificate of Existence attached as attachment#3 Our Non Profit is formed in the State of Oregon and follows federal guidelines for 501 (c) (3). Our EIN number is #81-1513248 Our Corporation is organized exclusively for charitable,religious educational or scientific purposes Including for such purposes the making of distributions to organizations that qualify as exempt by the Internal Revenue Service, or the corresponding section of any future federal tax code.Resident Resources is a general partner with Hawthorne Villa,an Oregon General partnership and co manages the property. F. Verification of Information All the information provided above including attachments below are accurate and complete. Hawthorne Villa an Oregon General partnership is co-managed by Hawthorne Villa GP LLC and Resident Resources. I do so attest to its truthfulness and certify it. William S.Maxwell President esident Resources State Of Oregon Date y''3"'r/,,.1 1 J� 1-' i • OFFICIAL' County -A �(�"'04 „;;; JEFFREY OHNSTAMP ROBERTON i 1 C a NOTARY PUBLIC-OREGON This record was acknowledged before me on (date) rdc}Yj 20_I±L by COMMISSION NO.967950 MY COMMISSION EXPIRES OCTOBER 29,2021 (name(s of individual(s) v u i 4-ri /1.4cUi,j t . h"'---- Notary Public State of Oregon Signatu e )er%i7c f" ' ' 1`1 _ Official Seal Name Resident Resources G. Attachments 1. Site Survey a. Building A b. Building B c. Building C d. Building D First floor e. Building D Second floor f. Building E g. Building F 2. Oregon Certificate of Existence 3. State of Oregon Amended Annual Report 4. Certification of Low Income Housing Restriction 5. IRS Certificate of 501 3 (c) reb, /I. 1UI 1 I :Jytim NO, YD I r. j State of O OFFICE OF THE SECRETARY OF STATE Corporation Division Certificate of Existence 755L896R3 I, DENNIS'RICHARDSON, SECRETARY OF STATE, and Custodian of tht Seal of said State, do hereby certify: RESIDENT RESOURCES is a Nonprofit Corporation under the laws of The State of Oregon and is active on the records of the Corporation Division as of the date of this certificate. In Testimony Whereof I have hereunto set OF my hand and affixed hereto the Seal of the /: •*rte` '� State of Oregon. F ': «-`'' V DENN.ISRICHARDSON, SECRETARY OF STATE 2/21/2018 AMENDED ANNUAL REPORT Corporation Division E-FILED ,may ,� Feb 08,2018 .,. www.fifinginoregon.com OREGON SECRETARY OF STATE REGISTRY NUMBER 118973395 REGISTRATION DATE 02/19/2016 BUSINESS NAME RESIDENT RESOURCES BUSINESS ACTIVITY RESOURCE PROFESSIONAL SERVICES THAT ASSISTS TENANTS IN THE FINDING AND KEEPING AFFORDABLE HOUSING.TO ASSIST TENANTS IN REDUCING RENTAL AND LIVING EXPENSES.TO MEDIATE POTENTIAL TEANT EVICTIONS. MAILING ADDRESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA TYPE DOMESTIC NONPROFIT CORPORATION PRIMARY PLACE OF BUSINESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA JURISDICTION OREGON REGISTERED AGENT WILLIAM MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA If the Registered Agent has changed, the new agent has consented to the appointment. PRESIDENT WILLIAM S MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA Page 1 Corporation Division vv.-. www.filinginoregon.com OREGON SECRETARY OF STATE SECRETARY ANDY K TREVINO 248 GREENRIDGE DR LAKE OSWEGO OR 97035 USA I declare as an authorized signer,that this filing has been examined by me and is,to the best of my knowledge and belief,true, correct,and complete. Making false statements in this document is against the law and may be penalized by fines, imprisonment, or both. By typing my name in the electronic signature field, I am agreeing to conduct business electronically with the State of Oregon. I understand that transactions and/or signatures in records may not be denied legal effect solely because they are conducted, executed,or prepared in electronic form and that if a law requires a record or signature to be in writing, an electronic record or signature satisfies that requirement. 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It ' .• ,.molar 1;1 e, .tion,Et- .. , lark ' 000 t 97032421 Recbs 184111 83.00 04/09/1997 04102129pm 1 1 I s1 I 1 1— t5 • . . . - 1 'RECORDING REQUESTED BY AND WHEN RECORDED,MAIL • TO: 1 ,1() Orman Koartel and Community Earrks Dap"metal y Ma State Strut Salem,Oretm 91 10 Mist Ked P.Kalavot SPACE ABOVE PCS a1WRDSn'a Use OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT i LOW INCOME HOUSING TAX CREDIT DECLARATION OF LAND USE RESTRICTIVE COVENANTS THIS ECLARATION OP LAND USE RESTRICTIVE COVENANTS,(this"Declaration"),dated as of_ 7-- 1997,by H HDORNE-VILLkLRMED PALTallSHIP,and Its successors and assigns the" caner")Is given as a condition precedent to the allocation of low-Income housing credits by the Oregon Housing and Community Services Department,a governmental agency of the State of Oregon,together with Is»sa any successor to its rights,duties,and obligations,(the"Department'). _:_._. WITNESSETH: *(incl des 117 tox credit unite and �. tWo omnon-area managers' unite) 1 WHEREAS,the Owner is or shall be the owner of e(n)J..12 unit/rent I housing development,alt. located on lands in the City of Tigard,County of Wasjringion,State of Oregon,more particularly described in Exhibit A.hereto,known as or to be known as H WTHO .V t.(,A APARTMENTS(the"Project");and WHEREAS, the Department has been designated by the Governor of the State of Oregon as the housing credit agency for the State of Oregon for the allocation of low-income housing tax credit dollars(the"Credit");and WHEREAS,the Owner has applied to the Department end entered Into a Determination Letter and Agreement fbr an allocation ofCredlt to the Project in an amount not to exceed One hundred eighty one thousand.one foully three dollars($181.t43)of tar exempt bond fina ee 4%low-income housing credit allocation;and WHEREAS,the Department has agreed to issue a Form 8609 to the Owner upon the execution and recording of t this Declaration which constitutes part of the Determination Letter and Agreement;and , WHEREAS,the Owner has represented to the Department In Owner's Low-Income Housing Tax Credit Application (the"Application")dated Murch 24. 1997,that Owner shall lease/rent 100 percent of the units in the Project to individuals or f smiiles whose Income is 60 percent or less of the area flintily adjusted median gross income ("Low-Income Tenants")as determined in accordance with Section 42 of the Internal Reyenue Coda(the"IRC'); II and i 1 WHEREAS,the Department has determined the Project would require a Credit allocation in the amount of$81.143 of tax exempt bond financed 4%,tax credit allocation to be financially feasible;and — WHEREAS,the Owner has represented to the Department rent restrictions it will maintain for the period of time as specified in the Determination Letter and Agreement;and DECLARATION OF LAND USE RESTRICTIVE COVENANTS ii 1 PROJECT NUMBER 0R96-4-002 PAGE 1 OF 10 1 .. .. . .. 111 . . 1 nif WHEREAS,the IRC requires as a condition precedent to the allocation of the Credit that the Owner execute,deliver and record this Declaration in the official land deed records of the county in which the Project Is located in order to txeate certain covenants running with the land for the purpose of enforcing the requirements of IRC Section 42 and the Department's Occupancy Restriction found in Section 5 hereof by regulating end restricting the use,occupancy and transfer of the Project as set forth herein;and WHEREAS,the Owner,under this Declaration,intends,declares,and covenants that the regulatory and restrictive covenants set forth herein governing the use,occupancy,and transfer of the Project shall be and are covenants running with the Project land for the term stated herein and binding upon all subsequent owners of the Project land for such term,end are not merely personal covenants of the Owner, NOW,THEREFORE,In consideration of the promises and covenants hereinafter set forth and of other valuable consideration,the receipt and sufficiency of which is hereby acknowledged,the Owner and the Department agree u follows: SECTION I-DEFINITIONS All the words and phrases used in this Declaration shall have the same meaning as when used In IRC Section 42, Treasury Regulations or Notices promulgated pursuant to IRC Section 42,Departmer,t Administrative Rules,and the Department of Housing and Urban Development("HUD")Regulations unless the context requires otherwise. SECTION 2-RECORDING AND FIILINGI COVENANTS TO RUN WITH THE LAND (a) Upon execution of this Declaration by the Owner and the Department,the Owner shall cause this Declaration and all amendments hereto to be recorded and tiled in the official public land deed records of the county in which the Project Is located,and shall pay all fees and charges incurred in connection therewith, Upon recording,the Owner shell immediately transmit to the Department an executed original or certified copy of the recorded Declaration showing the date,deed book and page numbers of record, Tho Owner understands and agrees that the Department will not issue the Internal Revenue Service Form 8609 constituting final allocation of the Credit unless and until the Department has received the recorded executed original of this Declaration. (b) The Owner intends,declares,and covenants, on behalf of itself and all Ibture Owners and operators of the r®I Project during the term of this Declaration,that this Declaration and the covenants and restrictions set forth In this Declaration regulating and restricting the use,occupancy and transfer of the Project(I)shall be and aro covenants running with the Project land,encumbering the Project for the term of this Declaration,binding _? upon the Owner's successors In title and all subsequent Owners and Operators of the Project(II)are not merely personal covenants of the Owner,and(III)shall bind the Owner(and the benefits shall inure to the Department and any past,present or prospective tenant of the Project)and its respective successors and Ilia I assigns during the term of this Declaration, Tho Owner hereby agrees that any and all requirements of the .. laws of the State of Oregon to be satisfied in order for the provisions of this Declaration to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in Ml, and that any requirements of privileges ofettate are intended to be utisfied,or in the alternate,that en equitable servitude has been created to insure that these restrictions run with the Project. For the longer of the period this Credit is claimed or the term of this Declaration,each and every contract, deed or other instrument hereafter executed conveying the Project or portion thereof shall expressly provide that such conveyance is subject to DECLARATION OF LAND USE RESTRICTIVE COVENANTS 3 'l LIIHTC PROJECT NUMBER 0106-4-002 PAGE 2 OF 10 • • , t • n this De iarat1Qon,provided,however,the covenants contained herein shall survive and be effective regardless of whether such contract,deed,or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance Iv subject to this Declaration. (c) The Owner covenants to obtain the consent ofany prior recorded lienholder on the Project to this Declaration and such consent shall be a condition precedent to the Issuance of Internal Revenue Service Form 8609 Constituting final allocation of the Credit. SECTION 3-REPRESENTATIONS,COVENANTS AND WARRANTIES OF THE OWNER 1 The Owner hereby represents,covenants,and warrants as follows; (a) The Owner(I)Is a nialitiPaZinCiablp duly organized under the laws of the State often,and Is qualified to transact business under the laws of the State of Oregon, (II) has the power and authority to own its properties and assets and to carry on its business as now being conducted,and(III)has the&II legal right, power and authority to execute and deliver this Declaration. (b) The execution and performance of this Declaration by the Owner(nwill me utol_to or, app!!! 1=,)13: —" not violated any provision of law, rule or regulation, or any order of any court or other agency or governmental body, (1I)will not violate or,as applicable,has not violated any provision of any Indenture, agreement,mortgage,mortgage note,or other instrument to which the Owner is a party or by which it or the Project Is bound,and(III)will not result in the creation or imposition of any prohibited encumbrance of any nature. (o) The Owner will,at the time of execution and delivery of this Declaration,have good and marketable title to the premises constituting the Project free end clear of any lien or encumbrance(subject to encumbrances created pursuant to this Declaration, any Loan Documents relating to the Project or other permitted ltrtri ' encumbrances). (d) There is no action,suit,or proceeding at law or in equity,or by or before any governmental instrumentality or other agency now pending,or,to the knowledge of the Owner,threatened against or atTecting 1t,or any ofits properties or rights,which if adversely determined,would materially impair its right to carry on business substantially ss now conducted(and as now contemplated by this Declaration)or would materially adversely affect Its financial condition. (e) The Project constitutes or will constitute a qualified low-income building or qualified low-income project, ----- as __ as applicable,as defined in IRC Section 42 and applicable regulations. • (f) Each unit In the Project contains complete facilities for living,sleeping,eating,cooking and sanitation(unless the Project qualifies as a Jingle-room occupancy project or transitional housing for the homeless)which are to be used on other than a transient basis. (g) During the Term of this Declaration,all units subject to the Credit shall be leased,rented oir made available to members of the general public who quality as Low-Income Tenants(or otherwise qualify for occupancy of the low-income units)under the applicable election specified in Section 42(g)of the IRC. (h) The Owner agrees that tenant and third parties will be eligible to enforce IRC Section 42 entitlements as DECLARATION OF LAND USE RESTRICTIVE COVENANTS —f LIHTC PROJECT NUMBER OR96-4-002 PAGE 3 OF 10 r:. provided by the Fair Housing Act,as amended, - (I) During the term of this Declaration,the Owner covenants,agrees and warrants that each low-income unit is and will remain habitable,'" (j) Subject to the requirements of IRC Section 42 and this Declaration, the Owner may sell, trauaar, or exchange the entire Project at any time,but the Owner shall nodfj+In writing and obtain the agreement of an;, buyer or successor or other person acquiring the Project or any Interest therein that such acquisition is subject to the requirements ofthis Declaration and to the requirements of IRC Section 42 and applicable regulations. This provision shall not act to waive any other restriction on sale,transtbr,or exchange of the project or any low-Income portion of the Project. The Owner agrees that the Department may void any sale,transibr,or exchange of the Project lfthe buyer or successor or other person fb.11s to assume in writing the requirements of this Declaration and the requirements of IRC Section 42, Notwithstanding the foregoing,the owner shall not dispose of any portion of a building which constitutes a portion of the Project and to which this Declaration applies unless the entire building is disposed of to such person. (k) The Owner agrees to notify the Department in writing prior to any sale,transfer,or exchange of the entire Project or any low-income portion of the Project. (I) The Owner will provide certified financial documentation acceptable to the Department to satisfy the calculation ofa qualified contract and to begin the one year period for finding a buyer hr accordance with IRC Section 42(hx6)if desired. (m) The Owner shall not demolish any part of the Project, substantially subtract from any real or personal property of the Project,or permit the use of any residential rental unit for any purpose other than rental housing during the term of this Declaration unless required by law or unless the Department has given its prior written consent. (n) The Owner represents, warrants, and agrees that if the Project, or any part thereof,shall be damaged, destroyed,shall be condemned,or acquired for public use,the Owner will use its best efforts,subject to the sights of any mortgagee,to repair and restore the Project to substantially the same condition as existed prior11 to the event causing such damage or destruction,or to relieve the condemnation,and thereafter to operate the Project in accordance with the terms of this Declaration. ="'• (o) The Owner warrants that it has not and will not execute any other Declaration with provisions contradictory to,or in opposition to,the provisions hereof,and that in any event,the requirements of this Declaration are paramount and controlling as to the rights and obligations herein set forth and supersede any other INNII! requirements in conflict herewith. Mi I ma MIN (p) The applicable fraction for each building of the Project during the term of this Agreement shall not be less than the applicable fraction specified in the Low-Income Housing Tax Credit Determination Letter and Agreement(the"Agreement")executed by the Owner as an percent. ISee IRC Section 42(h)(6)(B)) (q) The Department may require the Owner to reduce rents charged for low-Income units if property taxes Imposed upon the Project are reduced because of a change in Oregon law. Any reduction in rent required by the Department shall not exceed the reduction in property taxes,taking into account any replacement taxes or equivalent charges: and shall further tnke into account prevailing operating ex; or debt coverage requirements of the Project's lender(a) DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIRTC PROJECT NUMBER OR96-4-002 5 PAGE 4 OF 10 C 41 (r) If the Section 8 Income Limits used to determine rent limits are reduced to account for a reduction in propety taxes imposed on the Project because oft"change in Oregon law or if rents are otherwise reduced by ffderaliy subsidized housing assistance programa or comparable program to account for a reduction in property taxes imposed on the Project because(*fa change in Oregon law and the Department determines that the reduced rent charged for low-Income units In the Project appropriately reflects the reduction In property taxes,then Section 3(q)of this Dendaration shall not apply. (a) The owner will not refine to lease to a holder of a voucher or certificate of eligibility under Section 8 of the United States Housing Act of 1937 because of the status of the prospective tenant u such a holder. (t) The owner agrees to fill out end sign Part II of the Form 8609 required to be completed by the building owner for the first year of the credit period and rem-rn__,a cams(without Schedules and other supporting dorartnents)to the Department for the purposes of compliance monitoring, (u) The Department may charge a recaonable fee comparable to fees charged by the Department fbr monitoring activities in accordance with Section 8(d)of this Declaration for rent reviews and determinations made pursuant to Sections 3(q)and 3(r)of this Declaration. SECTION 4-INCOME RESTRICTIONS; RENTAL RESTRICTIONS The Owner represents,warrants,and covenants that from and alter initial occupancy and throughout the remaining term of this Declaration and In order to satisfy the requirements of IRC Section 42("Section 42 Occupancy Restrictions")that; (Check applicable percentage election) (a) (1)_ At least 20 perocnt or more of the residential units in the Project will be both rent-restricted and occupied by Individuals whose Income Is 50 percent or Ic99 of family adjusted area median Income, ii (2).3.At least 40 percent or more of the residential units in the Project will be both rent-restricted and occupied by individuals whose income is 60 percent or lass of family adjusted area median income. (b) The Department may require that the determination of whether a tenant meets the low-Income requirement e be made by the Owner or his designated agent at least annually on the basis of the current income of such Low-Income Tenant. UZI SECTION 3-DEPARTMENTS OCCUPANCY RESTRICTIONS *x The Owner represents,warrants and covenants throughout the term of this Declaration that: (a) Project rents will not exceed the gross rent allowable under IRC Section 42, (Check b through e,if applicable) ( ) X. The Owner will extend the income and rental restrictions of IRC Section 42 for j years after the dose of the compliance period. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECC NUMBER OR96-4-002 PAGE 5 OF 10 • •' (a)�(. Regardless of in this Declaration to the cont arty provisionvary,the Department's Occupancy Resirictiuna provided by this Section shall.remain to place for a period of 3Q years or until i n t,2025 except in the case of foreclosure or deed in lieu of foreclosure of a prior recorded lien to this Declaration as provided In Section 6(b)(1)but subject to Section 6(c)of this Declaration, (Check applicable election) (d) (t)_X The Owner will£E1 the earliest date upon which the Owner may request the Department to assist in procuring a qualified contract for the acquisition of the low-income portion which is a part of the Project to after year 14,from the year the project was placed In service, (2) - .:,.....,.• _ .. •, .. - • . . •- - , (a)— Operating reserves when released from restricted use shall be wholly used to subsidize tenant rents consistent with guidelines prescribed by the Department. • SECTION 6-TERM OF DECLARATION (a) Except as hereinafter provided,this Declaration and the 1RC Section 42 Occupancy Restrictions specified herein shall commence with the first day In the Project period on which any building which Is part of the Project is placed in service and shall end on the data which is 15 years after the close of the compliance period. (b) The Owner shall comply with the requirements of IRC Section 42. relating to the extended use period, provided,however,this Declaration and the extended use period for any building which Is part of this Project shall terminate: (1) On the date the building is acquired by foreclosure or instrument in lieu of foreclosure;or (2) On the last day of the ono- period specified in IRC Section 42 h b I if the Owner hasproperly Y� P OOO, requested in accordance with IRC Section 42 that the Department assist in procuring a qualified contract for the acquisition of the low-income portion of any building which is a part of the Project, the Department and the Owner have agreed upon the terms of sale as specified In Section 3(1)of this �_ Declaration,and the Department is unable to present a qualified contract within one year of reaching written agreement regarding the terms of sale. (e) Notwithstanding subsection(b)above,IRC Section 42 rent requirements shall continue for a period of three years following the termination of the extended use requirement pursuant to the procedures specified In subsection(b)above for those tenants existing as of the date of termination. During such three-year period, the Owner shall not evict or terminate the tenancy of sn existing tenant of any(ow-income unit other than for good cause and shall not increase the gross rent above the maximum allowed under the IRC with respect to such low-income unit. (d) If the Owner has agreed to optional Department's Occupancy Restrictions as reflected in Section Sof this i Declaration,neither this Declaration nor the extended use period shall terminate until the time period for compliance with such Department's Occupancy Restrictions has expired subject to earlier termination under Section 6(b)(l)above. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIBTC PROJECT NUMBER OR96-4-002 PAGE 6 OF 10 • • • :tv.—�_ _ •.e erg.,. .. _ _... SECTION 7-ENFORCEMENT OF DEPARTMENT'S OCCUPANCY RESTRICTIONS (a) Tho Owner shall permit, during normal business hours and upon reasonable notice, any duly authorized representative of the Department,to inspect any books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants which pertain to compliance with the Department's Occupancy Restrictions specified In this Declaration. (b) The Owner shall submit any other information,documents,or certifications requested by the Department which the Department shall deem reasonably necessary to substantiate the Owner's continuing compliance with the provisions of the Department's Occupancy Restrictions specified in this Declaration. SECTION 0-ENFORCEMENT OF SECTION 42 OCCUPANCY RESTRICTIONS (a) The Owner covenants that it will not knowingly take or permit any action that would result In a violation of the;equlrements of IRC Section 42 and applicable regulations of this Declaration, Moreover, Owner covenants to take say lawful action(including amendment of this Declaration as may be necessary,In the opinion of the Department)to comply flrlly with the IRC and with all applicable rules, rulings, policies, procedures,regulations or other official statements promulgated or proposed and published by the United States Department of the Treasury,the Internal Revenue Service,or HUD from time to time pertaining to Owner's obligations under IRC Section 42 and affecting the Project, (b) The Owner acknowledges that the primary purpose for requiring compliance by the Owner with restrictions provided in this Declaration is to assure compliance of the Project and the Owner with IRC Section 42 and the applicable regulations,AND BY REASON THEREOF,THE OWNER IN CONSIDERATION FOR RECEIVING-LOW-INCOME HOUSING TAX CREDITS FOR THIS PROJECT HEREBY AGREES AND CONSENTS THAT THE DEPARTMENT AND ANY INDIVIDUAL WHO MEETS THE INCOME j LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER PROSPECTIVE, PRESENT OR FORMER OCCUPANT)SHALL BE ENTITLED,FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS DECLARATION IN A STATE COURT OF COMPETENT JURISDICTION. The Owner hereby further specifically acknowledges that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. _ (c) The Owner hereby agrees that the representations and covenants set forth herein may be relied upon by the Department and all persons interested In Project compliance under IRC Section 42 and the applicable regulations, (d) The Owner agrees to take any and all actions reasonably required by the Department to substantiate the Owner's compliance with occupancy restrictions of IRC Section 42 as now constituted or subsequently amended and other occupancy restrictions of the Department as now constituted or subsequently adopted and will pay a reasonable fee to the Department for the Department's monitoring of the Owners compliance based upon the Department's monitoring costs. (e) This Declaration and the Determination Letter and Agreement of which It is a part may be enforced by the Department or Its designee in the event the Owner falls to satisfy any of the requirements heroin. In addition, { DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96.4.002 PAGE 7OF 10 • • this Declaration shall be deemed a contract enforceable by one or more Tenants as third-party beneflclariea of the Declaration and Determination Letter and Agreement, In the event the Owner Odle to satisfy the roqufrenteaia ofthis Declaration or the Determination Letter and Agreement and legal costa are Incurred by the DeparMunt or one or more of the tenants or beneficiaries,such legal costs,including attorney fess and court costs(inciuding costs of appeal),are the responsibility of,and may be recovered from,the Owner, SECTION 9•EXTENDED LOW-INCOME HOUSING COMMLTMENT V *NOT APPLICABLE** An Option IRic t of rat Refusal Agreen-nt has been entered into with Tualatin Valley Housing ar nea, t e r.,,Got a n- a arm er hereby agrees to transfix the Project to a"qualified nonprofit organization"(as defined in IRC 42(h)0 j acceptable to the Owner,the Department and the mortgage lender after the end of the calendar ye.- . ling years after the issuance of the Forms 8609 for the Project,or as soon thereafter u the t er can be co mmated,on the following terms: (I) consideration for the transfer shall be in accordance with the formula in IR ection 42(h)(6)(F) in an aunt equal to the sum of(a)the principal amount of outstanding ind • edness secured try the Project,., the adjusted Investor equity in the Project,and(c)other capita ontributions not reflected in the amo•• is described above,reduced by cash distributions from(or. enable for distribution from) the Project, (2) Owner shall be und- o obligation to transfer the Project to -qualified organization In the event that no acceptable qualifi.. < •anizadon accepts title and as •mes Owner's obligations before the end of the calendar year fulling o years after the issuance • the Forms 8609 for the Project, (3) In making the determination o. e transfer = qualified nonprofit organization,first right of refusal shall be given to (4) Any controversy related to the eel. io .f the transferal qualified organization shall be settled by arbitration pursuant to the rule: .f the Am- can Arbltratlon Association. (b) Owner further covenants to use i :reasonable best effort o assure that,at the time of the transfer. (I) the Project is generating sufficien h flow to service Project d 'and pay Project operating expenses;and(ii) the Project is in reasons• good physical condition(for a n ti-ramify y apartment project of its age and quality). (c) No provision o is section shall prevent any lender ioanfrg fiends secu d by the Project Porn foreclosing on the prop y or otherwise exercising its firli right as a(ender. In the e - t of a bonafide foreclosure or transfer. i e Project to a lender by a deed in lieu of foreclosure,the foreclosin: ender shall take the Project — free . clear of any obligation to transfer the Project to a nonprofit organizatio •r to operate the Project • urdeble housing except as provided for in IRC Section 42, The Department • its assigns shall have SECTION 10-MISCELLANEOUS (a) Severabillty. The Invalidity of any clause,part,or provision of this Declaration shall not afloat the validity of the remaining portions thereof. DECLARATION OF LAND USE RESTRICTIVE COVENANTS I LIHTC PROJECT NUMBER OR96-4.002 PAGE 3 OF 10 • ,. r , • (b) lc Ali notices to be given purulent to this Declaration shell be In writing and shag be deemed given when mailed by certified or registered mail,return receipt requested,to the parties hereto at the addresses set Ibrth below,or to such other place as a party may item time to time designate to writing. To the Department: Oregon Rousing and Cotttnztudty Services Department ATTN: MTV PROGRAM 1600 State Street Salem,Oregon 97310.0161 To the(honer HAWT1iQRNE VILLA LIMITED PARTNERSHIP AT7N: CRAD RENNAKER Ifilia_SSE.7212121WEILMEIITE,20 PORTLAND OR 97224 The Department,and the Owner,may,by notice given hereunder,designate any fbriher or different addresses to which subsequent notices,certificates or other communications shall be sent. (c) AWendmetti, The Owner agrees that it will take all actions necessary to effect amendment of this Declaration sa may be necessary to comply with the IRC,any and ail applicable rules, regulations,policies,procedures, rulings,or other official statements pertaining to the Credit, The Department,together with Owner,may execute and record any amendment or modification to this Declaration end such amendment or modification shall be binding on third-parties granted rights under this Declaration. (d) Subordination of Declaration. This Declaration and the restrictions hereunder are subordinate to the ptIMApog loan and loan documents on the Project in an original principal amount not to exceed S4_000.000, except Insofar as IRC Section 42 (h)(6)(E)otherwise requires. The Department may subordinate thin Declaration to other Financing,in its sole discretion and such subordination shell be binding on all third- parties granted rights under this Declaration, (e) Governing Law. This Declaration shall be governed by the laws of the State of Oregon and, where applicable,the laws of the United States of America. (f) Survival ofOblig to ions. The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall not be deemed to terminate or merge with the awarding of the allocation, I • DECLARATION OF LAND USE RESTRICTIVE COVENANTS a • LIHTC PROJECT NUMBER OR96-4-002 f PAGE 9 OP 10 • . _ ■ N WITNESS WHEREOF, the Owner has caused this Declaration to be signed by to duly authorized 1.r ropresentatives,to of the day and year first written above, • OWNER Hawthorne Ville united Partnerahip • 1 By: r Name; G. pavid Sebastian Title; President. harne Villa GP, Inc., General Partner of Hawthorne Associates Limited Partnership, a General Partner STATE OF OREGON } County of Waahi gtc This instrument was acknowledged before me this_ g - dry of ri 141 by G. David Sebastian, President t _ t — .�y 1 �Li IIA.. x , rum STEP MOULIN N oNHRRUrig / to Z /NOTARY PUBLIC FOR OGONI Q .My Commission Expires; t.W. •T&datweenrPrwPandthts hard,27. by '^ q�++ ✓ Prod Naim Kart!P.Kaloor Mit rat CadaProaram Rtprwd+oaUre I1 hlteniteturs4 !}f 1 I 1 • DECLARATION OF LAND USE RESTRICTIVE COVENANTS f' LIHTC PROJECT NUMBER OR96-4.002 PAGE 10 OF 10 • r 6 & , • szsaz: ■a• • !MARL 21 8, part of the George Biobardaoa Donation Land Claim if'thn Northeast quarter of the Southwest quarter of Section 30, Township 1 South, Range 1 Wast of the Willamette Nosialon, in the City of Tigard, Ooenty of Washington and *tato of Oregon, desorlbed as follow: Dl0IXPfW0 at the Northwest °osier of the George Ric'ard■on Dooatian Sand Chia, situated in Section 26, Township i South, Range 1 Wast, ril1ae. to Neridiaai theism South P9°00' last, 1667.60 foot to a point in the northerly boundary line of said Donation Land Claim; thence South 0°11' West, 3104.0 teat to nh iron pipe, said iron pipe marking the Porthwott corns* of that toot conveyed in Dor_+ Book 279, page 646/ !Moe South 69049' east, 89.0 feet along rho Worth Lies of that toot 000lt o,d in Deed Soak 270, Pogo 646 to the Northeast corner of said tract and true swift of bogiooiog of the tract herein described; tbanoo South 89°49' last, 26.0 toot: !beam Borth 0°11' Nast parallel with the Bast lino of that, tfant dssaribod in daed to Leonard N. Caeca, st al, recorded January 16, 1466, in,Book 677, Page 339, Washiagtaa county Paoarda. 173.66 faott thence South 88017' leea,16 loot to the Bait lino of said Caron tract) thenoa South 0°11' Nest along the Neat line of said Casco toot, 315.0 feet to the Southeast corner thereof; th.nc Barth Sat°17' hest along the Booth line of said Canon tract, 121.6 feat to the Southeast w=ars of that treat conveyed in teed Book 279, Page 648, thanes Werth 6611' sant along the last line of that toot conveyed in Deed Book 279, Page 648, 141.34 fact, more or lees, to the true paint of beginning, all situated in Washington County, mom. PARCEL Itt A part of that George Rlchhrdaon Donation Lead claim in the rorthaaat quartan of the Southeast quarter of section 36, Township 1 south, Range 1 Raft of the Willamette Rsrldian, in the City of Tigard, County of waahingtoa and state of Oregon, doaoribad es follows: 820110 no at the forthwoat cornar of the George Richardson Donation Land Clain, situated is Section 36, Township 1 south, Range 1 West, Willa:mum Meridian/ thane. South 89000' Bast, 1887.60 feet to a point in the Northerly boundary lino of said °°nation Land Clain; thence South 0011' Neat, 1204.0 feet to an iron pipe. said iron pipe narking the Worthvnst corner of that tract conveyed in Deed Book 279, Page 648, and the true point of Deglnalrg herein described: thence South 89°49' East, 110.0 feet to a point: thane Borth 0011' Bast parallel with the rant lino of that tract deanribed in dad to Laonrrd B. Cason, at al, recorded .7anuary 26, 1968, in nook 677, Pogo 139, Nashingtcn County Records, 173.66 feet to a point; thrice North 69°37' Wast, 110.0 feet to a point on the pest line of said Cason tract; thence South 0°11' Wast along said West line, 173.66 feet to the true point of beginning. l2- • . PAM= 2TIt a part of the gems Richard/4A Doaation Land Gail in the Northman curter of the Southwest quarter of Softie, 36, Towaahip 1 bath, Range S Meat of the Millaaette Meridian, is tko City of Tigard, eesety of Meshing/ton cad state of wagon, deoeribed t as follows 120132120 at the Northwest corner of tete lenge aiohardeon Donation Lead Claier situated in Section 36► Township 1 South, snags 1 West, Willaaatts Meridian and running thanes South SP°00' sant, 1197.60 feet to a point In the Nartker lino of paid Donation Land claithena'South 0°U.' West, 1204.0 fest to as iron piipse, m a said iron pipe marking the northwest corner of that tract conveyed Ls Deed Hook 271, — Page 646/ thence south 89049' last, O6.0 fest along the North list of time tinct conveyed in Deed Book 270, Page 640 to the Northeast corner of thereof; theme Scott 09°49' Nast, 28.0 feet? thence North 0°li' sant parallel With the last line of that tract described in deed to Leonard 2. Cason, et al, recorded fie-eay 16, 1154, is Book 677, Page 139, Washington Cconty Records, 173.66 Beet, thsnor South 440170 saeti £1.0 foot to the true point of beginning of the herein described pram/ass/ thence continuing south 88°17' !act, 46.0 foot to a point on the Bast line of said Gaga tract; thence Worth 0°11' Bast along said Sant line, 90.0 feet; thaeoe North ea°i7' West, 45.0 foot/ thence South 0°11' West, 90.0 feet to the true point of beginning. Pf0/. . rr, A part of the George Richardson Donation Land Claim La the Northeast quarter of the Southwest quarter of Section 36, Township 1 South, Range 1 Went of the Wil sotto Meridia!, in the City of Tigard, County of Washington and State Of Oregon, described as fellows, exonnana at the werthwet corner of the George Richardson Donation Land Clain in Section 36, Township 1 South, Bangs 1 West, Willamette naridian is the County of Nashington and state of Oregon, and running thence south 89°00' But, 1697.60 feet to a point on tint Northerly boundary line of said Donation Land Claim/ thane agouti 0°11' Nest, 1030.34 fest to a point on the West lino of that Mot described is deed to Leonard R. Cason, et al, rocordsd January 16, 1968, in Book 677, page 135, neene e of Washington County, being the westerly Northwest =roar of that tract described in Mortgage recorded October 29, 1960, in sock 722, Page S20, records of Washington County and the true point of beginning of the herein deeeri.bed prasisea, thence South 88°17' teat 161.6 feet; thence North 0°11' East, 90.0 feet; thanes South 8B°17' Bast, 45.0 feat to a point on tke east lime of said Cason tract; thence Worth 0°11' east along said Bast lies, 171.34 feet to a paint; thence North 80017' Wart, 65.0 feet to a point/ thonce South 0°11' Nest, 76.0 fest to a point/ theune North OB°17' West, 741.6 feet to a point on the West lima of said Canon tract; thence South 0°11' west aims; said Wast lino, 164.34 fast to the true point of beginsing. 4 CA • PAACSs. ve A pas' of tha Oassaya Riabardsas Donation Land Clain in'the Northeast quarter of tin 5outhwaet quarter of Section 38, toiseahip 1 South► sang* 1 Rest of the Wil ysttp Meridian, in the City of Tigard, county of WWinpton ind State of cr gun, described AS fo73i9Net 9ROLONI9O at the Wortkwaet sorest of the Caotgs Pilchards= Donation Land Claim, in Section 36, Township 1 South, Ringo 1 Mast of the Wil7.snntte Mariann and running thence south 89°00' llast, 1857.60 lest to a point on the northerly bossadety lino of acid Donation Land Claim, theme &oath 0011' Wast, 544.0 feat to a point on the Neat Line of that tract daautibed in dosd to Leonard N. Cason at al, recorded denim,' it. 1668, in Cook 677, page 139, records of •Washington County, being the Weite:iy Northwest **rear of the first tract dascribas! in Mortgage recorded February 4, Mt, in Book 732, Page 59, reacrds of Waehiagtoh County and the true point of beginning of the herein described property/ thenen South 88017' tact, 141.6 tort to a point, tltenoo Worth 0°31' East, 75.0 fest to point, theory south 88^17' fast, 66.0 feet to a point on the Bast line of said Cason tract; thence forth 0°11' East along said mast Lina, 113.66 fest to a point, thence North 88°17' Wast, 206 feet to a point on the Neat Tins of said cases tract, thane° South 0011' Wait along seid.Wast lino, 190 feet to the true point of beginning. PAM:L=1 PSt • • A part of the 000rge Richardson Donation hood Claim in the Northeast quarter Of the 8otttbweet quarter of Enation 36, Township 1 South, Range 1 Wast of the Wil3ametto Maridian, in the City of Tigard, County of Washington cod State of Oregon, described as follower _-- 8iallb oma at the Morthwist corner of the George Riehardeoa Donation Land Claim in Section 36, Townabip 1 South, Range 1 Wont of the Willstette Meridian, in the County of Washington and State of Oregon and running thence south 69°0D' Haab, 1887.60 foot to a point oh the Northerly boundary line of void Donation Land claim, thence south 0011' Want, 634.0 feet to a point an the Went line of that tract described in deed to Leonard R. Cocoa et al, recorded January 16, 1965, in Soot 677, Page 7.39, records of Washington County, being tbo northwest corner of the first tract dasoribed in liortgago recorded in hook 745, Pogo 165, records of Waehiagton C°aaty and the true point of beginning of the herein described property, thence South 88°11• Want, 206 -- foot to a point on the last lira of said crane tract, !:hence North Oil' Nast along said haat lion, 186.0 feat to a point; theatre Borth 88017' stet, 206 feet to a point ss-` of the Weft lite at said Cason tract, Chorea south 0°11' Wert slang said West lies, sawn 186.0 foot to the true point of beginning. 1� • • wns,: — PARC= ti=t h part of the Coons Riabordroa Donation Land Claim in,tha northeast gist-tar of the Southeast quatter.af !lotion 18, Township 1 Booth, Runge 1 Wait of the Wilyamitta Meridian, is the City of Tigard, cOtht7 of Washington and 8010 as Gaagcar eawnibed as follows, 8902SA/NO at the barthweot loran of the George Richardson ponatien Lead nlafe is faction 70 thanes south 19900' east, 1687.00 root to a point on the Worthsrir boundary Of Said Doaatien Lead Clain; thence South 0011., 190 feat to a point, said point being the Southaert onrnar of s trust convoyed to teal, Midler and Greco Idler by dead Paaotdad Wot+aesbar 28, 1911 in need book 00, Page 48, and the roux' point of beginning; throat South 0011' Wast, 178 ioet.to a point on the Went line of that treat dnaorlbad in a deed to Leonard S. Cason et al,.c000rdsd January 18, 1968 in Rook 077, ' raga 139, roorda of Waehingtan county, being the aorthMests tomer of tsa first treat • deacribid in*ostgago raoorded Nay 19, 1571, in Book 810, Pape 187, records of Wsnhioptan County,; thenen 8euth 88017' Etat, 206 feat to a point on the Past lint of said Cason tract; thaws worth 0011' last along said Wast Line, 178 feat to the 8onth lino of said aidlar tract; thence North 690 West elong.the south lino of anis tidier twat, 106.0 bast to the true point of beginning. • • i • Internal Revenue Service Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Date: March 3. 2017 Person to Contact: Mr. Molloy— ID#0203248 Toll Free Telephone Number: 877-829-5500 WILLIAM MAXWELL 4800 SW MEADOWS RD STE 300 LAKE OSWEGO OR 97035 Dear Sir or Madam: This is in response to your letter of January 30, 2017, requesting copies for Residents Resources. Enclosed are the copies you requested. If you have any questions, please call us at the telephone number shown in the heading of this letter. Sincerely. Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: i `.. ���� 81-1513248 d,0 _ 0 DLN: 26053478001966 RESIDENT RESOURCES Contact Person: 4800 SW MEADOWS RD SUITE 300 CUSTOMER SERVICE ID# 31954 LAKE OSWEGO, OR 97035-5277 Contact Telephone Number_ (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 170(b) (1) (A) (vi) Form 990/99D-EZ/990-N Required: Yes Effective Date of Exemption: February 19, 2016 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c) (3) . Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard) . If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 5436 -2- RESIDENT RESOURCES Sincerely, Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements Letter 5436 AIS-Fiscal Impact of Tax Excmption Property Approximate City of Tigard City of Tigard Total Tax Rate Total Property Assessed Tax Rate Property Tax Tax Impact(All Value* (Including Impact Jurisdictions) Bond Levy) (Estimated) Village at $1,551,640 $2.8705/$1,000 $4,454 $17.0773/$1,000 $26,498 Washington Square Single Family $214,145 $2.8705/$1,000 $615 $17.0773/$1,000 $3,657 Home—9330 SW Tangela Ct. Greenburg $5,726,360 $2.8705/$1,000 $16,438 $17.0773/$1,000 $97,791 Oaks The Knoll @ $3,898,015 $2.8705/$1,000 $11,190 $17.0773/$1,000 $66,568 Tigard Hawthorne $5,912,155 $2.8705/$1,000 $16,971 $17.0773/$1,000 $100,964 Villas Total Impact $49,668 $295,478 * Because these properties have been exempted from property taxation in the past,Washington County does not show a current assessed value. These figures are based on 2/3 of current market value. Tigard tax rate determined by City of Tigard and City of Tigard-After(bonds) Total tax rate located in Washington Co Listing by Tax Code 023.66 III " City of Tigard TIGARD Memorandum To: Toby LaFrance, Finance and Information Services Director From: Schuyler Warren,Associate Planner Re: CPAH 2018 Applications for Tax Exemption Date: March 6, 2018 Community Partners for Affordable Housing (CPAH) has submitted separate applications for low- income housing tax exemptions for each of the four properties it owns and manages inside the city. The four include the 26-unit Village at Washington Square, the 84-unit Greenburg Oaks, the 48-unit Knoll at Tigard senior housing project,and a four-bedroom single family house located two blocks from the Greenburg Oaks units at 9330 SW Tangela Court. Tigard Municipal Code (TMC) 3.50.020, "Nonprofit corporation low income housing;exempt criteria," provides criteria for considering exemption requests. A review of these criteria follows. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or(4) of the Internal Revenue Code . . . CPAH submitted with their applications a copy of an Internal Revenue Service letter, dated March 11, 1999,verifying that CPAH qualifies as a 501(c)(3) organization. This criterion is met. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. CPAH has submitted Articles of Incorporation demonstrating that upon dissolution, the organization's assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal, state, or local government for a public purpose.This criterion is met. 3. The property is occupied by low-income persons. Documents submitted by CPAH demonstrate that in the case of all four of its projects, tenant income is verified upon application and is re-certified on an annual basis. Residents may remain in their units as long as they demonstrate qualifying income at entry. Continued eligibility is determined with household income at or below 60% of the area median income (AMI). Within each of its applications,CPAH certifies that all residents served by the four properties in question earn at or below the 60% of AMI.This criterion is met. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c) (3) or(4) of the Internal Revenue Code . . . CPAH is applying for full exemption at all four properties. CPAH has submitted documents demonstrating that all four properties are fully dedicated to nonprofit activities.This criterion is met. 5. The exemption has been approved as provided in Section 3.50.050 This criterion relates to the required city process for handling exemption requests. Section 3.50.050 states the city will determine eligibility for exemption (as is detailed in this report) and send notice of the determination to the County Assessor. Conclusion: CPAH-owned properties have qualified for tax exemption every year since 1996. According to the applications submitted for FY 18/19 exemption,no changes in circumstances have occurred that would disqualify the non-profit housing provider from continuing to receive the exemption. The city's "Affordable Housing Program," adopted in September 2002 as "a complete and official statement of the City's overall affordable housing program," includes tax exemption as one of the city's strategies for facilitating affordable housing in the community.The exemption's purpose is to allow the operators of low-income housing to decrease annual operating expenses, thereby allowing them to serve lower-income households. According to the CPAH applications,if granted, 100% of the property tax exemptions will be passed on as a direct subsidy for its residents. Therefore,the granting of exemptions to CPAH is consistent with the applicable TMC standards and with adopted city housing policies. 11.11 COMMUNITY PARTNERS *04lag' al or • FOR AFFORDABLE HOUSING, INC. Nu" PO Box 23206•Tigard OR 97281-3206•Tel:503.-293-4038•Fax:503-293-40394 www.cpahinc.org• info@cpahinc.org City of Tigard Application for TaxAbatement February 19,2018 Village at Washington Square 11157-11163 SW Hall Boulevard, Tigard A. Property Description IB. Project's Charitable Purpose [C. Certification of Resident income Levels 1 IL). how Tax Exemption Will Benefit Residents E. Tax Exempt Status IF. Verification of information [G. IRS Letter A. Property Description Village at Washington Square is located at 11157-11163 SW Hall Boulevard, between SW Spruce and SW Pfaffle in Tigard. The site is located within the Washington Square Regional Center and is proximate to employment opportunities as well as public transportation and other services. The Village at Washington Square includes three residential buildings with a total of 26 dwelling units, and a community building, all arranged around a central courtyard/play yard. The project includes one studio, seven one-bedroom, five two-bedroom, seven three-bedroom and six four-bedroom units. Eleven of the units are traditional apartment flats,while the other 15 are two-story townhomes with bedrooms above the main floor living space. The total site sits on.84 acres. In 2012,Village at Washington Square received exterior caulking and painting as part of the on-going focus on quality maintenance. Some additional landscaping was completed in 2013. Legal Description: Partition Plat 1998-038, Lot 1 and Partition Plat 1998-038, Lot 2 in the City of Tigard, County of Washington, State of Oregon Tax Lot 1S135DA(04600&04700) B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. When it opened in 2002, The Village at Washington Square was the first addition of affordable units to the Tigard housing stock in a decade. The 26 units are priced to be affordable to very low, low, and moderate-income residents. The project is subject to an extended use agreement to keep the rents affordable for 60 years,effectively the full life of the project This covenant is recorded with the title of the property and requires that rents will be affordable to households at 30%,45%and 60%of area median income and significantly below market rents. Half of the units are three and four bedroom apartments serving larger families who are often unable to find affordable rental opportunities in Tigard. CPAH maintains active partnerships with the Tigard Police Department, Tualatin Valley Fire & Rescue, Tigard Libraries,and the Tigard School District to enhance the safety and quality of life for residents and to ensure that our programs are well-coordinated with other community resources. CPAH works closely with Community Action and other agencies to provide information and referral as well as emergency services such as food boxes as well as rent and utility assistance. Coordination agreements with social service programs such as Lutheran Community Services and Community Action Organization, enhance ongoing case management and link stable housing with successful program outcomes. CPAH offers a variety of programs for youth including after school and summer programs as well as adult services including Neighborhood Watch,classes In support of parenting skills, budgeting and other financial literacy skills,and nutritional shopping and cooking. The Village at Washington Square is located within a census tract (309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area has the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9% of Tigard's population, it is home to nearly 16% of the city's minority households. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 C. Certification of Resident Income Levels Resident Income levels are verified upon application for tenancy and at annual re-certification. Residents may remain in their units as long as they income qualify at entry. Rents are well below the market for the area. We certify that all apartments in this project are targeted to and remain affordable to households earning at or below 60%of the AMI. Compliance with income restriction requirements is audited annually by the State of Oregon Department of Housing and Community Services,Washington County Office of Community Development,and by our limited partner investor, Key Bank, D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption is a direct subsidy for the residents(lower rents)as operating costs are lower due to tax abatement. Some costs,such as the cost of operating our youth programs, must be funded from outside sources, Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is the general partner of the Village at Washington Square Limited Partnership,a single entity asset. CPAH's IRS Determination Letter is attached. CPAH undergoes full audit of its books annually,as does the Village at Washington Square. The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the Verification project and ,�reesiidde�n�tyfiles annually. F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. achael Duke, Executive DirectorDate APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS . • • „' Ie FOR AFFORDABLE HOUSING, INC. AM, . PO Box 23206•Tigard OR 97281-3206•Tel:503-293-4038•Fax:503-293-4039•www.cpahincorg• info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Tangela Single Family Rental Home 9330 SW Tangela, Tigard, OR A. Property Description B. Project's Charitable Purpose ~y C. Certification of Resident income Levels D. How Tax Exemption Will Benefit Residents IE. Tax Exempt Status F. Verification of information G. IRS Letter j A. Property Description Community Partners for Affordable Housing,Inc.acquired the single family"Tangela House" at 9330 SW Tangela in Tigard, on December 31, 1999, with assistance from the Washington County CDBG program and an original loan from Washington Mutual Savings Bank which is now with Banner Bank. The Tangela home is located just two blocks from CPAH's multifamily project, Greenburg Oaks Apartments and is overseen by the site manager at Greenburg Oaks. The two story 1,916 square foot house sits on a 5,450 square foot lot and is zoned R-7 residential. CPAH converted an upstairs bonus room into a 5th bedroom and completed other necessary repairs after the initial acquisition as well as additional upgrades after the first turnover. In 2013, CPAH replaced the furnace and plans to re-roof and re-paint the home In the next two years. The first residents lived in the home from early 2000 until late 2006 when they moved out of the area. The current residents have been in the home since February 2007 and remain in the home today. We consider these tenancies as very successful outcomes providing a stable neighborhood environment to raise families that had previously experienced transient and sub-standard housing. Legal Description: Barbee Court, Lot 1,Tigard,County of Washington,State of Oregon, Tax Lot: 1 S135DC-05300. B. Project's charitable Purpose Community Partners for Affordable Housing,Inc.(CPAH)creates and maintains safe, healthy,and sustainable housing with services for diverse residents Including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH acquired the single family home in order to assist the County and the Good Neighbor Center Shelter in meeting a"replacement unit"requirement triggered by the Uniform Relocation Act when the shelter acquired its current site and demolished a single family home housing a low- income family, CPAH completed needed repairs and upgraded the Tangela home to a five- bedroom dwelling,in order to provide a rare opportunity in our community—an affordable single- family rental house for a very large family. The home is proximate to CPAH's Greenburg Oaks property,where management and resident services are available to the household. These services include a computer center,community room, neighborhood watch,Individual Development Account grants, and other programs.The resident services coordinator and property management staff visit the home on a regular basis to ensure that the property is well managed and to maintain an ongoing relationship with the residents. The home is located within a census tract(309)which has a higher than average concentration of low-income rental households. The number of residents without a high school diploma is notably higher than for Tigard as a whole. This area boasted the second highest concentration of children under 9 of the eight census tracts in Tigard. While this area represents 9%of Tigard's population base,it is home to nearly 16%of the city's minority households C. Certification of Resident Income Levels Resident income level is verified upon application, and must be less than 60%of the area's median income. Income is recertified annually. We certify that all residents served by this property earned at or below 60%of the AMI. APPLICATION FOR TAX ABATEMENT PAGE 2 OF 3 D. How Tax Exemption Will Benefit Residents 100%of the property tax exemption is passed on as a direct subsidy for the residents. Every dollar reduction in operating costs results in a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources. Without property tax abatement,we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing results in a net savings of public resources. Fewer and less-severe police calls,healthier students, and stably housed social service consumers, all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is direct owner of the Tangela property and is a nonprofit 501(c)(3) organization. Our operations are audited annually to,among other things,confirm that we are in compliance with our charitable status and with requirements of the County grant and Banner Bank loan documents, F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of residents for compliance with program guidelines. J)Ji1 t) e" �r achael Duke, Executive Director ate APPLICATION FOR TAX ABATEMENT PAGE 3 OF 3 COMMUNITY PARTNERS • , ;' FOR AFFORDABLE HOUSING, INC. � i • PO Box 23206•Tigard OR 97281-3206 • Te1:503-293-4038 s Fax:503-293-4039 • www.cpahinc.org• info@cpahinc.org City of Tigard Application for Tax Abatement February 19,2018 Greenburg Oaks (formerly Villa La Paz)Apartments 11875 SW 91st Avenue, Tigard A. Property Description rB. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information 'G. IRS Letter _ A. Property Description Greenburg Oaks Apartments (Tax account # R-276472), 11895 SW 91st Avenue, is just off Greenburg Road, near Pacific Highway. The site sits on 3.01 acres and consists of 84 units in four buildings: 12 one-bedroom/one-bath 564 square foot units, 60 two-bedroom/one-bath 839 square foot units,and 12 three-bedroom/one-bath 1,007 square foot units. In 1998,CPAH added the now much used Community Center to the complex. The Community Center houses a computer center, library,multipurpose room and property management office. In 2005/2006,CPAH completed a$3.5 million dollar rehabilitation of the apartment interiors,building exteriors and project site. Highlights of the rehab included:replacing all building siding and windows,re-configuring and repaving the parking lot, replacing all landscaping, upgrading the recreation facilities,upgrading site lighting and signage. Interior work included replacing all waterlines and drains, replacing all cabinets, countertops, light fixtures and most appliances(refrigerators, dishwashers, hot water heaters)with Energy Star rated devices,replacing all window coverings and many carpets,re-texturing and repainting all apartment interiors. The rehab project featured energy saving appliances, compact fluorescent light fixtures, better insulation,and low volume plumbing fixtures,all of which have reduced tenant energy costs. The rehab work was done without displacing any tenants and with very minimal rent increases. As a testament to the quality of the rehab work, vacancies generally average under 5%, accounts payable are current and annual cash flow is positive.In 2011,CPAH completed exterior re-caulking and exterior painting as part of on-going quality maintenance at Greenburg Oaks. Financing for the project came from a number of public and private grants and low income housing tax credit investments. No new debt was taken on. Approximately$10,000 of the funding was provided by the City of Tigard Affordable Housing Fee Assistance program. Other funding came from the Meyer Memorial Trust, the Paul Allen Foundation, the Oregon Community Foundation, Washington County Office of Community Development through the CDBG and HOME investment programs,and the State of Oregon. Key Bank increased its investment by over$2 million dollars. Legal Description: The site Is located in the southeast 1/4 of Section 35,Township 1 South,Range 1 West(Willamette Meridian). Tax Lot: The Washington County Map shows the site as tax lot 23-74-2000, Parcels I, II,and ill. B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents Including families, seniors,and people with disabilities in Washington County and SW Portland. CPAH's acquisition and renovation of the complex has ensured that the previously neglected property is professionally managed as safe, decent, and affordable housing. Greenburg Oaks has significantly reduced the housing cost burdens of our families. The efficient delivery of our services improves the health and prospects for all household members, and serves to help break the multi- generational cycles of poverty. CPAH's commitment to 40 years of affordability for those at 50 and 60%of median income guarantees that these apartments will be affordable effectively for the life of the buildings. CPAH maintains active partnerships with the Tigard Police Department Tualatin Valley Fire & Rescue,Tigard Libraries,and the Tigard School District to enhance the safety and quality of life for residents and to be sure that our programs are well-coordinated with other community resources. Partnerships with Community Action, Good Neighbor Center, Luke-Dorf, Neighborhood House, APPLICATION FOR TAX ABATEMENT PAGE 2 OF 4 Lifeworks NW and other organizations to provide information and referral as well as emergency services like food boxes and rent and utility assistance. Coordination agreements with these agencies enhances ongoing case management and provides a fresh start to many families facing significant barriers moving from homelessness to permanent housing. Several families each year are being reunited with their children as a result of receiving a housing opportunity at Greenburg Oaks. Three of the apartments are reserved for low income families with at least one member in active recovery from alcohol or drug addiction and an additional two apartments are set-aside for clients of the LukeDorf Housing Team. The Community Center at Greenburg Oaks is the focal point for support, skill building, and community building activities offered by CPAH through its resident services program which includes after-school and summer youth programs as well as the annual winter coat distribution and holiday event. CPAH's on-site computer learning center is used by youth for homework, research, e-mail, and educational games; and by adults for job search activities and Internet access. The Tigard Library has twice obtained grant resources to purchase children's material for our on-site library. CPAH offers a variety of adult services as well. The Community Center is also host to a number of general community activities including rent readiness courses, HopeSpring parenting classes, financial literacy classes, parenting safety skills and budget and nutrition classes. The Community Center hosts weekly meetings for AA, NA, and Alanon groups. Food distributions are also held in the Community Center for both the residents at Greenburg Oaks and others in the surrounding community. C. Certification of Resident Income Levels Resident income levels are verified upon application for tenancy and are recertified each year. CPAH has covenants with the state and with Washington County to use the property exclusively for low income rentals for a period of at least 40 years, These covenants require that all households have earnings at or below 60%of the area median income. Some units are restricted to households earning at or below 50%. Compliance with these covenants is monitored by the State of Oregon Department of Housing and Community Services and by theWashington County Office of Community Development, We certify that all apartments in this property are targeted to and remain affordable to households earning at or below 60%of the Area Median Income. D. How Tax Exemption Mil Benefit Residents 100%of the property tax exemption Is a direct subsidy for the residents. Every dollar reduction in operating costs Is passed on as a reduction in the scheduled rents. Some costs,such as the cost of operating our youth programs, must be funded from outside sources mostly through fund raising. Without property tax abatement, we would have to shift some of our fundraising efforts from developing sources for these programs and use them instead to cover basic operations. It can be argued that using property tax revenues to subsidize well managed affordable housing units results in a net savings of public resources. Fewer and less-severe police calls, healthier students,and stably housed social service consumers,all provide a direct reduction in the demand for government funded services. E. Tax Exempt Status CPAH is general partner of the Villa La Paz Limited Partnership,a single asset entity established for the purpose of acquiring the apartments and qualifying for low-income housing tax credits. CPAH's IRS Determination Letter is attached. CPAH undergoes a full independent audit of its books annually, as does Villa La Paz, LP. Both the State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development review the project and resident files annually. APPLICATION FOR TAX ABATEMENT PAGE 3 OF 4 F. Verification of Information I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management Company performs day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. Pt-kneel Duke, Executive Director D2fte APPLICATION FOR TAX ABATEMENT PAGE 4 OF 4 COMMUNITY PARTNERS mai. is • • * FOR AFFORDABLE HOUSING, INC. an, PO Box 23206•Tigard OR 67281-3206•Tel:503-293-4038 Fax:603-293-4039 e www.cpahinc.org• itifp(014.4iti. oig City of Tigard Application for Tax Abatement Fehusty19,2018 The Knoll at Tigard 12291 SW Knoll Drive Tigard, Oregon 97223 IA. Property Description 1 B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. IRS Letter PAGE 1 OF 3 A. Property Description The Knoll at Tigard is located at 12291 SW Knoll Drive in Tigard (on Hall Boulevard between SW Knoll and SW Hunziker). The Knoll is a prime example of urban development,perched on the edge of the developing downtown of the City of Tigard, walking distance to the library, senior center, transportation, shopping and a variety of other amenities. Previously, three parcels of land totaling 1 acre supported only 3 single family residences. Following the recent zone change, and consistent with the long range goals of the City development plans, The Knoll at Tigard brings this density to nearly 50 units per acre. The design takes advantage of a site with an established infrastructure of utilities, adjacent transportation and services. The Knoll receives a "very walkable" rating from Walkscore.com. The Knoll at Tigard is a 45,000 square foot,48-unit apartment building along with common rooms and meeting space, providing active living for independent, low-income seniors. Streetscape improvements were required on all 3 street frontages,including development of sidewalks,planting strips with street trees and below-grade utilities. Public spaces including entry courtyards and site walks are well lit. The Knoll at Tigard is a secure access building with a surveillance system. The total site contains.98 acres. Legal Description: see attached Exhibit A Tax Lot: R458454, R458436, R458445 B. Project's Charitable Purpose Community Partners for Affordable Housing, Inc. (CPAH) creates and maintains safe, healthy, and sustainable housing with services for diverse residents including families, seniors,and people with disabilities in Washington County and SW Portland. The Knoll at Tigard is CPAH's first affordable units for seniors in Tigard and compliments CPAH's affordable units for seniors in Hillsdale. The 48 units are affordable to very low and tow income residents on a permanent basis(The Knoll at Tigard provides affordable housing for a minimum of sixty(60)years,with maximum rents regulated by covenants on the property).Rents are affordable to households at 30%to 60% of area median income and below market rents. 45 of the units are one bedroom units and 3 of the units are two bedroom units(1 of which for the on-site manager). 12 of the one bedroom units are Project Based Section 8 units through the Washington County Housing Authority and are set-aside for Veterans. CPAH has expanded its community partnerships with the Tigard Police,the Tigard Library and the Veteran's Administration.The common areas include a living room and kitchen for residents'use as well as a computer center. The community room is available for resident potlucks, holiday events and other activities. C. Certification of Resident Income Levels Resident income levels are certified upon application.The seniors at The Knoll may remain in their units as long as they income qualify at entry. Rents for the one bedroom units average $677/per month for the one-bedroom apartments(25%+ below average market rates). Rents are$780 per month for the two-bedroom apartments. Water,sewer and trash are included in the monthly rental. PAGE 2 OF 3 D. How Tax Exemption Will Benefit Residents The property tax exemption is a direct savings for the residents,allowing for reduced operating costs which results in reduced rents for the seniors at The Knoll. For both the initial development.and long term operations of the project,full tax abatement is essential. The project pro forma allowed for the construction of The Knoll which meets all City and State design requirements along with affordable rents for our seniors. The Knoll includes financing through Washington County HOME and COBS funds,State of Oregon Trust Fund and Tax Credits. JPMorgan Chase is the private lender with Enterprise Neighborhood Partners as the investor(under the tax credit program). Tax abatement was critical In meeting lender and investor requirements while keeping rents affordable for The Knoll at Tigard and is key to long- term sustainability of the project operating with affordable rents for seniors. E. Tax Exempt Status CPAH, an Oregon non-profit, is the general partner of The Knoll at Tigard Limited Partnership, a single asset entity. CPAH's iRS Determination Letter is attached. CPAH undergoes full audit of its books annually, as does The Knoll at Tigard. Mark Schwing of Markusen&Schwing in Beaverton currently provides audit services for CPAH and CPAH's single asset properties.The State of Oregon Housing and Community Services Department and the U.S. Department of Housing and Urban Development both inspect and audit the project annually. The tax credit investor(Limited Partner) also monitors and inspects the project as does Washington County. F. Verification of Information As CPAH's executive director, I hereby certify that the information in this application for tax abatement is accurate and complete to the best of my knowledge. Income Property Management acts as the property management agent providing the day-to-day management of the property and is responsible for certifying income levels of each resident for compliance with program guidelines. Rachael Duke,CPAH Executive Director Date PAGE 3 OF 3 NONPROFIT ARTICLES OF INCORPORATION OF COMMUNITY PARTNERS FOR AFFORDABLE HOUSING { ARTICLE I The name of the corporation is Community Partners for Affordable Housing and it shall not have members. ARTICLE II The corporation is a public benefit corporation. The corporation is organized exclusively for religious, charitable, scientific, literary or educational purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code. Among the charitable and educational purposes for which the corporation is organized are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and moderate • income individuals and families in Washington County. j. b. to assist and facilitate the purchase and rental of real property by low and moderate income persons. c. to eliminate discrimination in the acquisition, disposition and rental of real estate by undertaking educational and other activities which will assist in the implementation of Federal, State and local Fair Housing Laws. d. to undertake housing, community development and community self-help projects which serve the needs of low and moderate income persons in Washington County. e. to administer housing as a community service regardless of race, color, religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation may engage in other lawful activities for which corporations may be organized pursuant to the Oregon Non-Profit Corporation Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's activities shall be in furtherance of any purpose other than one of the exempt charitable purposes for which the corporation is organized. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other•provision of these Articles, the corporation shall not carry on any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501(c) (3) of the Internal Revenue Code, or (b) by a corporation, contributions to which are deductible under Section 170(c) (2) of the Internal Revenue Code, or corresponding section of any future federal tax code. ARTICLE III The name of the registered agent is Margaret Ann Jozsa and the address of the registered agent is 14980 S.W. 103, Tigard, Oregon 97224. ARTICLE IV The directors will be elected or appointed after incorporation as follows: At each annual meeting of directors, the directors then in office will elect directors for the succeeding year. Vacancies on the board of directors, whether created by resignation or' by increase in the size of the board, will be filled by affirmative vote of the remaining director or directors, though less than a quorum. ARTICLE V The mailing address where the Division may send notices is as follows: Community Partners for Affordable Housing c/o Neighborshare 12750 S.W. Pacific Highway Suite 123 Tigard, Oregon 97223 ARTICLE VI Upon dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c) (3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Upon dissolution of the corporation, the board of directors shall, after paying or making provision for the payment of all liabilities of the corporation, dispose of all the assets of the corporation by transferring them to such other organization or organizations then qualifying as exempt organizations under Section 51O(c) (3) of the Internal Revenue Code or corresponding section of any future federal tax code, as the board of directors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organization or organizations operated exclusively for such purposes, as said court shall determine. ARTICLE VII Provisions for regulation of internal affairs of the corporation: (a) The corporation shall be a non-membership organization and shall be managed by its board of directors. (b) No part of the net earnings of the corporation shall , inure to the benefit of, or be distributable to, its directors, officers or any other private persons, except that the corporation shall be authorized and empowered to make reasonable compensation for services rendered and to make payments and distribution in furtherance of the purposes set forth in Article 2 hereof. (c) The directors and officers of the corporation shall be entitled to indemnification from the corporation to the full extent allowed by the Oregon Non-Profit Corporation Law. (d) The personal liability of the directors and uncompensated officers of the corporation to the corporation for monetary damages for conduct as director or officer is hereby eliminated to the fullest extent allowed by law. The undersigned President of Community Partners for Affordable Housing certifies that the board of directors of the corporation has approved and adopted the foregoing articles pursuant to the ` resolution adopted at a meeting on October 7, 1993. Date: October 7, 1993 Mary wintek President 09/21/2004 11:17 FAX 5033734981 CORP DIVISION X002 J'. f' OwMOW ., �rOrsra a mese= CAL FOR MCI NSE L • and MM WIN Y t-�4 $20,00 •�- ' illabieralkilley Rpwl►trrfffrar: / slim,on a1 1O.0219 F1L 53O(- . a ! iSs tam suet re (sal 37 34116 SEP t 5 i9G3 ittlk" " li ARTICLES OF INCORPORATIt Nonprofit corporation. iiiimmumommmimmi ARTICLE 1: Name of the cospar*I0p; Comeuni tY Parpnere for Af fordable Housllfk ARTICLE 2: Type of corporation(check One only): • Pubic benefit Q Mutual benefit O Religious ARTICLE 3: Name of the initial registered Bent: _Mar_t_Ann Jonii Residence or office address of registered agent(must be a Street address In Oregon); 14950 S.K. 109 Ti and 97229 R ARTICLE 4: Pring office address: 0/0 ghborcare 12750 S.W. Pacific Eighxa Suite 123 Tigard, OR 97223 IMMO and numberState Zlp code ARTICLE 5: Midge if corporation will have members: (� Yes ao No ARTICLE$: Distribution of assets on dissolution or final liquidation: upon dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3), or corresponding section of any future federal tax code, or Shall be distributed to the federal government, or to a state or local government, a public purpose. NP•1{7/91) 0920381903 831.215 29.0Rq:64 f , 09/21/2004 11:17 FAX 6032784381 CORP DIVISION 1001 AMUR INCORPORATION NONPROPYt'CORPORATION Pape 8 Name oloorpondlon: a tY of r..t fortfa„rcabl! Housing. ARTICLE 7: NMN arid address of each director is Optional. • (lithe i> you must list three or mon directors and q Marr 8wintek - 9915 S.M. Proving St. *23 Tigard, OR 97223 Loren 'Walcott - 9905 S.W. Mekennie ward,- plt 97223 Margaret Ann Jonas - 14980 8.14. 103 Tigard, OR 97224 ARTICLE 8: E3 Each director named has consented to this appointment. ARTICLE 9: Optional provisions: None. ARTICLE 10: Name and address of the Incorporator: 14980 S.W,a 103 Tigard, as 97224 acne Add<es; Execution; ll:. Margaret Ann Jozal lncO .a_ .f „ re APO Prim name ate Person 10 COMM AIM this Mi: Mar aret Ann Jozsa 288-5995 t Daytime phone numler Mike 1.. ail to the CoeponOon DMI(on. SUMO Ow eaapiMed tem and tee to:CmIpaatbe olvIi4eit. Buear»ee 1Maetry,la telt OtmsI NE.Std,OMNI 87310412s. NF-1(7191) 09/21/2004 11:17 FAX 8033764381 CORP DIVISION lit1004 • I WO "1 .UCd61.4. t �`✓'`!`�' SlAnrr Mr OtlpIW Oi o .SECRETARY Of$TAT€ mda+fitxparariccust arae IN o 00 X .0%, COVOratiOn Otvisoon 1ti, Busman Amery Fr-c 10 Revivify Number .♦ .r r;f ISO 1Zei& MINE 22....U(217 8( OA 07310-0210 . ,,;. tew)37e4/ee DEC 2 6 916 g; .003)37143e1 irt ARTICLES OF AMENDMENT Nonprofit Corporation PLEAS! TYPE OA PRINT1,101BLY IN $LACI( INK 1. Name of the corporation prior to amendment: C01.40114.44 4 F.T.Ainers, r ordstin It cOw% 2. On a separate sheet,pleaaa sate the amide number(s)and set forth the arlido(a)Vas It is amenoso to read. 3. The smartened(*)Wig-adapted on 10 1,. (Il more than one amendment was adopted,Identify the data of adoption of each amendment. 4. Check the appropriate statement pi Membership approval was not required. The amendment(s) approved by a sufficient vote of ttld board of*Moro or Meo1poralors. Q Membership oppress'we required. The rrmembemhIp vote was as blown • Cress(m)MON Wear tesombos farruewei vela WOW d va4s Number alias' to vote anewwikmo Weld dWeed oat for terms • Execution: j[ . /% - a. minis n 14 - er+e%. Elea ,,r' e Tills Person tO COntaO about lhis from V10.4. a c4 k AAA —So 7. j payer.phone WKE CI .K le MYAetE TO THE CORPORATION DPASON.5U MIT THE OOMPLATED FORM AND FEE TO 00APORATION MASON.15011rrH ST NE.SALEM,OR 103t00IWa. OR CNC TO Iii 3704391. RE,ABE PfCWPE morin V755 OR LMb'7FRCRIrp NUMBER ANO EXPIRATION OATE. •-�1•-- 122 r7931 09/21/2004 11:18 FAX 5033784381 CORP DIVISION Q005 Fr:r611.7 365'30146 s 2. Qp+3. ARTICLE As c/os i27 LW Pacific Highway suits 123 Tigard, OR 97223 ARTICLE 71 Leven Socket 6 09/21/2004 11;18 FAX 8033784381 CORP DIVISION 4ti -v &bra ea WOW an ewe PON°MEM ONLY roe InnOOpy 1��..c-!r tr Coip'^i"m&Won•Suiten Neglsby $10.00 filo Slate ridding 288 Copilot creat fes. S 151 Reglery Number �% ° 3)9se aos (5O3n.4301 FILED JAN 2 4 095 ARTICLES OF AMENDMENT . ry of Stab Nonprofit Oprporation } PLEASE TYPE OR PAIN?LE4%*LY IN SLACK INK 1. Name of the corporation prior to amendment Community Partners for Affordable Housing 2. On a mint,sheet,pleas std the artiob mss)end set tach the ams)as it is emended to read 3. The amertdmsrt(s)was adopted on 13-18 , 18 9� (If more than one emendated was adopted,identify the date of adopikn of each amend wait 4. Check the appropriate statement: Q Membership approval vats amard a dire�ctvl�required eMt+)was approved bf+a sufficient 0 Membership approval was required. The msmberaflip vote was as follows: Mutes)ended Number of members number d now *anter of votes Metter of votes to vole ardfdnd to rote entltled b be out tad for cost spina I Execution %/ / - - Margaret Ann Jozna President ' -7'77 name • Person tooantaotaboutfhb fie* Margaret Ann Joao& 503-288-5995 ams me MAKE:aeons PAYABLE TOT11EOORPORATION DIMON OR lNCLU M YOWL VMA OR 0Asrenause MAMA Alice ExPIRAT10N DRTE - ...L.L OMIT The OOH PVRMAMO farm THE ADM A0011E$$ CR MAX TO MOM 375-4381. U2(M94 011295002M 61.219 te.80 ).3-y 09/21/2004 11:18 FAX 5033784381 CORP DIVISION j 007 3co 5 3v r OCIOWN YTY NUMMI 105 IFFoRnaBLI ROdsl=O ineadmants to read as follow • IITIOSE II The corporation is a public benefit corporation. The corporation is organised exolusively for charitable and educational purposes within the meaning of Section ddl(C)(3) of the Internal Revenue code. /Wong the charitable and educational purposes for which the corporation is organized are: a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and moderate incase individuals and faailies in the cities of Tigard and Tualatin. b. to assist and facilitate the porches* and rental of real property by low and moderate income persons. a. to eliminate discrimination in the acquisition, disposition and rental of real estate by undertaking educational and other activities which viii assist in the implementation of Federal, State and local Fair Uoueing Laws. d. to undertake housing, community development and community self-help projects which serve the needs of low and moderate income persons in the cities of Tigard and Tualatin. a. to administer abusing as a community service regardless of race, color, religion, sex, disability, marital or familial status, sexual orientation, age or national origin. The corporation may engage in other lawful activities for which corporations may be organised pursuant to the Oregon Non-Profit Corporation Law; provided, however, that none of such activities be for profit and that no substantial portion of the corporation's activities shall be in furtherance of any purpose other than one of the exempt charitable purposes for which the corporation is organized. No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or distribution of statements) any political campaign on behalf of or in opposition to any candidate for public office. Notwithstanding any other provision of these articles, the corporation shall not carry on any other activities not peraittel to be carried on (a) by a corporation exempt from federal income tax under section s01(c) (3) of the Internal Ravenna Code, or corresponding section of any future federal tax cods, or (b) by a corporation, contributions to which are deductible under Section 170(c) (2) of the Internal Revenue Cods, or corresponding section of any future federal tax code. 09/21/2004 11:19 FA% 5033784381 CORP DIVISION Zoos 11, Tor- Kyo CONNIONNTr WASSMANS FON alielnalta NOOSING rage hmeadaeuts to read as !eilovsa • 5I!ZCLI VTn dissolution of the corporation, its assets shall be distributed for one or more exempt purposes within the meaning of Section 503(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local government, for a public purpose. Upon dissolution of the corporation, the board of directors shall, after paying or making provision for the payment of all liabilities of the oo ation, dispose of all the assets of the corporation by transferrer thee to such other organization or organisations then qualifying as exert organisations wider Section 510(0)(3) of the Internal Revenue Code or corresponding section of any future federal tax code, as the board of directors shall determine. Any assets not so disposed of shall be disposed of by the court which has general jurisdiction for the county in which the principal office of the corporation is located, exclusively for such purposes or to such organisation or organizations operated exclusively for such purposes, as said court shall determine. ARTsfRr s Is Provisions for regulation of internal affairs of the corporation, • (a) No part of the net earnings of thecorporation shall inure to the benefit of, or be distributable to, its directors, • officers or any other private persons, except that the corporation shall be authorised and empowered to make reasonable compensation for services rendered and to make payments and distribution in furtherance of the purposes set forth in Article 2 hereof. (b) The directors and officers of the corporation shall be entitled to indemnification from the corporation to the full extent allowed by the Oregon Non-Profit Corporation Law. (c) The personal liability of the directors and uncompensated officers of the corT3ration to the corporation for monetary damages for conduct as director or officer is hereby eliminated to the fullest extent allowed by law. 09/21/2004 1i:18 PAZ 9033784381 CORP DIVISION CA a09Trumommogniminnimommusimiiimuummimpimumuml i -•1 7 Penn pbi11911 Anialos etPitt � ,: soombO� odmap lNo Ui tassor !Watme* z9b�itiilf.t� eastttlt +ssaessout oonpo�►tow FILEDi Sim,OR 013104112? ►� R yN+tMan____ rhehhk it1,TARaPIOTAIONT°°R am`a" MONO iamb w.�wriir secturams OP STA" Pltpe79999rPlrtIset r bdt 1) NANlOrp0aa1gI11lrat10 Ir • a asiallsamem- )do WIT RIM be roadtddatlt0<rammoellawa*woo maw ra.o...ri adds ii s<and d.a d MIrits IN piebald oenlateon oy) �) 7MaMeefiatrartsMama Ow 8apl t 11 Non hoiwe. -- se WNW WON al Nth rad VONNIONNIONIONONOL OONPONTOTON ONLY MO N IOI ICON OI NIKINOILY 4) cam wsil Patl.m,L,1 fl 5) OWN1a*APITIOINATENTAlaaNR ©OhaNbaliNrMameNOM(lett►atweaatnOnrethj.The SII i j su l isquiel 110monsispeOmo mime se NONTX as•wiMtole eMinheloins N teliswwt limmi WNW b �wiring s bottom • - °mod bard .u.Mar Lira rr rrgr+► wrap 111fir`,- Mem POR~ Miner 811410 deralaknwMIRKmonsPomad soaatrammotTAe aflaa0la_ rataaa& sr Ns bird dabaaaataout a +at►item. Q Tie emplearva Iwo ha iteret woke=dolt&BMnNomt► mike am AN moiled e1 adept sIa ININ OTINIO),1ita aarelwemp)aaa adeps thew inumaSrt ar br a bond d aaeaae. • 1) Rlaarliatt NNW NeRrTtit awlsinl� - mea Maar 7) Comet Milt Dania Priam Mralwl-90.9499849,4 Coot shake OrtialtlsMrfM r03460.2734 FEES hoe owe arwm+t.r memeshe how ehohoir.«.ma..rh who he ehlestw+lletvat rlllsaCaRawealmaw a .tl.tl.awawl MW�rO a•rattrelletlinos fildiehea. 1 Citta Pes. 4/gt-3 09/21/2004 11:19 PAX 5033784381 CORP DIVISION Q010 • i O'1l \1 � \ I I ' -),IRI. ERS FOR AFFORDASIA HOUSING, INC PO " 33066•Time OR 1-$0 .Tasat96a.27Q4• ssie3, N$S •ivint Adlir+.ers a --- a i 9 Amendment to Articles of Incorporation to read as follows, the chaigss Sr. italicised! ARTICLE II a. to develop, stimulate and facilitate the provision, ownership and management of housing for low and moderate income individuals and families in the Tigard•Tualatia area and contiguous portions of southwest Portland. d. to undertake housings coemuni.ty development and comity self-help projects which serve the needs of low and moderate income persons in the Tigard-Tualatin area and contiguous portions of southwest Portland. Article Ur The name of the registered agent is Sheila Greenlaw-tinic and the address of the registered agent is 13137 S.M. Pacific highway, Tigard, Qregan, 97123. ifs Articles of Amendment•Nonprofit y , .=:1,0;,,u Secretary o(Staae-Corporation Division-255 Capitol St.NE,Suite 151-Satin,OR 97310-1327-htled/www.Flling tOmaganmm-Phoma(503)08 0 REGISTRY NUMBER: In accordance with Oregon Revised Statute 192A10-192A90.the info mat)on on this application is pubic mot We must misses tees kdo m tion Ec at• •• -and it will be..:..- on ourwehdte. For ounce use only Please Type or Print Legibly in Black ink 1) ENU TY NAME: Community Partners for Affordable Housing, Inc. 2) STATE THE ARTICLE Nul aER(s):and set forth the article(s)as it Is amended to mad.(Attach a separate sheet V necessary.) Merle 4 1415 ewers%lemma and laden*tin provision,mots*and raannnaarriart at hawing b low and modwa0a Yuma kiANdude mad faaa*a tO Banca 1,151dinaton Canty and sonenrat Poniard. "Ado t d)to underlain Mushy,oronnuntly denelopnatand community eeN•Aelp pnslects Milks serve tie needs Plow d arodwMe rano macro in Eastern Washington Courtly and t iewon Portland. Arida 3:The name of the registered agent is Sheila Greenlaw-Fink and the address ofthe registered agent is 6980 SW Caphed Highway,#151,Podknd,OR 97239. 3) THE AMENDMENT WAS ADOPTED ow November 29,2011 (ir more than one amendment was adopted,Identify the date of adoption of each amendment) 4) CHECK THE APPROPRIATE STATEMENT: 8 Membership approval was not required.The amendment(s)was approved by a maddest vote of the board of directors or incorporators. ❑Membership approval was requited. *The mstdp vote was as follows Gasses)entWeed Number of members Number of votes entitled Number of votes cast Number of rotes cast to vote entitled b vote to be cast FOR AGAINST 5) EXECUTION:(Must be signed by at least one officer or director.) By my signature,I dads*as an authorized authority,that this filing has been examined by me and is,to the best of my kno fledge and belief,true, correct,and complete.Making false statements In this document Is against the law and maybe penalized by fines,Imprisonment or both Signature: Printed Name. Tide: • e . ' Shy; {a Gr.e. {a . Eke.t,c, -.\re CONTACT NAME:(To resolve questions with this filing.) FEES Sheila Greenlaw-Fink Raeder(Process*g se0 $tri? Cmfmtaion copy 55 PHONE NUMBER:(Include area code.) N o Fee Ix NmrswitTypeChange. No Fee tar i'tc ldentreaetsy Change. 503-293-4038 Processing Fees are nonrefurdabte. Please mAe died(pantie m"Corporator t7i+biaa.' ave-�.+�c:c:'wQk-, :raasa..sar.�=� ----a��� 31.Articles of Amendment-Nonprofit(01/10) INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY • DISTRICT DIRECTOR P. O. BOX 2508 CINCINNATI, OH 45201 Date: Employer Identification Number: ��9 93-1155559 DLN: 030720009 COMMUNITY PARTNERS FOR AFFORDABLE 17tactPerson: HOUSING Contact Person: PO BOX 23206 THOMAS E O'BRIEN ID# 31187 TIGARD, OR 97281-3206 Contact Telephone Number: (877) 829-5500 Our Letter Dated: February 1995 Addendum Applies: No Dear Applicant: This modifies our letter of the above date in which we stated that you would be treated as an organization that is not a private foundation until the expiration of your advance ruling period. Your exempt status under section 501(a) of the Internal Revenue Code as an organization described in section 501(c) (3) is still in effect. Based on the information you submitted, we have determined that you are not a private foundation within the meaning of section 509(a) of the Code because you are an organization of the type described in section 509(a) (1) and 170(b) (1) (A) (vi) . Grantors and contributors may rely on this determination unless the Internal Revenue Service publishes notice to the contrary. However, if you lose your section 509(a) (1) status, a grantor or contributor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act, or the substantial or material change on the .part of the organization that resulted in your loss of such status, or if he or she acquired knowledge that the Internal Revenue Service had given notice that you would no longer be classified as a/section 509(a) (1) organization. • If we have indicated in the heading of this letter that an addendum applies, the addendum enclosed is an integral part of this letter. Because this letter could help resolve any questions about your private foundation status, please keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown above. Sincerely yours, 6".../.4(3,a47 AJfeers-1/ District Director • • Letter 1050 (DO/CG) 111 N City of Tigard TIGARD Memorandum To: Toby LaFrance, Finance and Information Services Director From: Schuyler Warren,Associate Planner Re: Hawthorne Villa 2018 Application for Tax Exemption Date: March 6, 2018 Resident Resources submitted an application for low-income housing tax exemption for the 118- unit Hawthorne Villa,located at 7705 SW Pfaffle Street in the incorporated Metzger area. Tigard Municipal Code (TMC) Section 3.50.020, "Nonprofit corporation low income housing; exempt criteria," provides criteria for considering exemption requests. A review of those criteria follows. 1. The property is owned or being purchased by a corporation that is exempt from income taxes under Section 501(c) (3) or(4) of the Internal Revenue Code . . . Resident Resources has submitted a determination letter from the IRS demonstrating that they are a 501(c)(3). Resident Resources, as part of Hawthorne Village Apartments General Partnership, asserts their eligibility for the exemption under TMC section 3.50.020(C) which reads: C. A partnership shall be treated the same as a corporation to which this section applies if the corporation is: 1. A general partner of the partnership;and 2. Responsible for the day to day operation of the property that is the subject of the exemption. The applicant submitted a partnership agreement and memorandum of understanding (MOU) as part of their application. These documents demonstrate that the property is owned by Hawthorne Village Apartments, an Oregon general partnership. The partnership is between Hawthorne Villa LLC and Resident Resources,an Oregon nonprofit corporation. Resident Resources is a general partner of the partnership and,according to the MOU,is responsible for the day-to-day operations of the facility. This criterion is met. 2. Upon liquidation, the assets of the corporation are required to be applied first in payment of all outstanding obligations, and the balance remaining, in cash and in kind, to be distributed to corporations exempt from taxation and operated exclusively for religious, charitable, scientific, literary or educational purposes or to the State of Oregon. The applicant has submitted Articles of Incorporation demonstrating that upon dissolution,the organization's assets shall be distributed to one or more tax exempt entities within the meaning of Section 501(c)(3) of the Internal Revenue Code,and which have a charitable purpose that is generally similar to the dissolving corporation. This criterion is met. 3. The property is occupied by low-income persons. The applicant provided both a statement and a deed restriction demonstrating that Hawthorne Villa will only rent to individuals or families who make at or below 60%of area median income (AMI). The applicant states that compliance with this requirement includes efforts made at the advertising, application,and verification stages. In addition,the applicant has partnered with a compliance consultant to oversee new resident screening and annual certification.This criterion is met. 4. The property or portion of the property receiving the exemption is actually and exclusively used for the purposes described in Section 501 (c) (3) or(4) of the Internal Revenue Code . . . Resident Resources is applying for full exemption at Hawthorne Villa.Resident Resources has submitted documents demonstrating that that the property is fully dedicated to non-profit activities. This criterion is met. 5. The exemption has been approved as provided in Section 3.50.050 This criterion relates to the required city process for handling exemption requests. Section 3.50.050 states the city will determine eligibility for exemption (as is detailed in this report) and send notice of the determination to the County Assessor.This criterion will be met upon approval by City Council. Conclusion: Resident Resources,as a general partner in Hawthorne Village General Partnership,has applied to the city for a tax exemption in two previous tax years. The property was recently purchased by a new property owner who plans to maintain the affordability of the property.The property has previously received city tax exemption through Accessible Living Inc. (as part of Hawthorne Villa General Partnership),and Tualatin Valley Housing Partners. Resident Resources'mission is "to enable low income families of Oregon to find and keep affordable housing."The application states that through a Resident Service Plan (RSP) the nonprofit provides assistance with education,employment,and health services. The city's "Affordable Housing Program," adopted in September 2002 as "a complete and official statement of the City's overall affordable housing program," includes tax exemption as one of the city's strategies for facilitating affordable housing in the community.The exemption's purpose is to allow the operators of low-income housing to decrease annual operating expenses,thereby allowing them to serve lower-income households. According to the CPAH applications,if granted, 100% of the property tax exemptions will be passed on as a direct subsidy for its residents. Therefore,the granting of exemptions to CPAH is consistent with the applicable TMC standards and with adopted city housing policies. • itAd1141111111111111i., 5 www.residentresourcesoregon.org 4800 SW Meadows Rd#300 Lake Oswego,Oregon 97035 Phone 503-534-3777 Fax 503-482-7430 To: City Of Tigard February 14,2018 13125 SW Hall Blvd Tigard,Oregon 97223 Attn:Toby LaFrance Finance and Information Services Director Application for Tax Abatement Hawthorne Villas Located at 7705 SW Pfaffle Street Tigard, Oregon 97223 A. Property Description B. Project's Charitable Purpose C. Certification of Resident Income Levels D. How Tax Exemption Will Benefit Residents E. Tax Exempt Status F. Verification of Information G. Attachments A. Property Description Hawthorne Villa Apartments is located at 7705 S.W.Pfaffle Street in the City of Tigard.The property Is set on 4.76 Acres adjacent to Pacific Highway.The Property is composed of eight apartment buildings with a single family home in front that is currently used as managers home and office with some space used for the community room,See Attachment#1 site plan.In these eight buildings there are one hundred eighteen separate apartments consisting of sixty two one bedroom apartments that are approximately six hundred five square feet,twenty one,one bedrooms that are approximately six hundred eight five square feet,five two bedrooms one bath at approximately seven hundred ninety square feet and thirty studio apartments that are three hundred sixty square feet.The property is restricted to low income families who make 60%of the average medium income for Washington County. The project has recently been purchased by a respected local property owner(see attachment#2) who plans to maintain the affordability component to the property.His name is Rajiv Jain.He collectively owns and manages over eight hundred apartments in several states.Over three hundred of those apartments participated in section 42 restricted rent housing program.He resides in Portland and is committed to socially responsible ownership of all his properties.He has partnered with Resident Resources to create a safe and secure environment for these valued individuals whom need affordable housing.All the properties that Mr.Jain owns are well maintained with responsible management employees who are compassionate about what they do. Resident Resources The property being located within walking distance to many local employers and employment sectors makes it an ideal location for those seeking affordable housing.The transportation needs of the Residents is well met as there are numerous transportation hubs within walking distance including Pacific Highway,the 217 and 5 freeways,bus routes and local rail transportation close by. The residents enjoy that there is adequate vehicle parking(171 parking stalls).This relieves them of the high cost of parking a vehicle.This can foster a sense of independence. The Apai Intents business name is Hawthorne Villas Apai tinents,it is considered a section 42 affordable housing complex also know as Low Income Housing Tax Credit(LIHTC). It is a federal Program created in 1986 under the Federal Tax Reform Act. It accounts for over 90%of the affordable housing in the United States.The nature of the property and location make it an ideal property to receive this tax abatement. For your records the tax parcel is R282429 in Census Tract 306.00 with a Zoning of R-12. The lot is over 207,000 square feet with multiple garden areas and courtyards.It has several laundry rooms for residents to do there own laundry. B. Projects Charitable Purpose Resident Resource's mission is to enable low income families of Oregon find and keep affordable housing.Through our resident service plan (RSP)we strive to create an environment in which families feel safe to seek additional assistance in education,employment and health services. We have an open door policy in which all are welcome.Each Resident whom resides or wants to reside at Hawthorne Villas has an appointment with a staff member who helps identify potential needs relating to our core values of affordable housing,continued educational opportunities,employment referral services.We offer mediation assistance with the ownership/management to prevent evictions that may lead to homelessness.Our many health and social services contacts and referrals are a great resource for the residents with a focus on confidential assistance. Our commitment to the Citizens of Tigard and around the state of Oregon has been to maintain an dignified approach to foster a confidential yet friendly approach to the housing needs of families who may need affordable housing.Many Residents face other significant challenges that can be softened with the right approach.This is done while maintaining the integrity of the property both materially and physically.Creating a safe environment for all Residents is our highest Priority. Hawthorne Villas Ownership has made a significant commitment to fund Resident Services to a level where each resident can have a personal touch that will encourage them to use our services if needed.The tax abatement will go a long way to helping these fine Citizens of Tigard. C. Certification Of Resident Income Levels Hawthorne Villas is a rent restricted apartment complex that will only rent to individuals or families whom make at 60%or below of Washington County Area Medium Income.This compliance is achieved with our advertising,application process,verification process.A second oversight to insure our compliance we have partnered with expert Alexia Consulting whom is approved by the State of Oregon.They are experts in compliance and monitoring in this area,over seeing each and new Resident as well as a yearly audit of each Resident File and our record keeping.The property will rent restricted for at least the next 12 years.See Attachment#4 A,I_41. Resident Resources D. How Tax Exemption will Benefit Residents With this tax exemption we are able to maintain the low income and affordability component to this property.The Tax exemption also allows us to fund Resident Resources thus reducing Homelessness in the City of Tigard as well as providing valuable services for some families who most need it.Through our efforts and management style we have consistently reduced police contacts with Residents which reduces costs to the City.The tax exemption allows us to staff a position which takes some of the burden off of the City of Tigard's resources.The exemption is used to create a safer,healthier more stable environment for Low Income Families. E. Tax Exempt Status Resident Resources is a Domestic Non Profit Public Benefit Corporation Registered in the State of Oregon.Registration#118973395 Certificate of Existence attached as attachment#3 Our Non Profit is formed in the State of Oregon and follows federal guidelines for 501 (c) (3). Our EIN number is #81-1513248 Our Corporation is organized exclusively for charitable,religious educational or scientific purposes Including for such purposes the making of distributions to organizations that qualify as exempt by the Internal Revenue Service,or the corresponding section of any future federal tax code.Resident Resources is a general partner with Hawthorne Villa,an Oregon General partnership and co manages the property. F. Verification of Information All the information provided above including attachments below are accurate and complete. Hawthorne Villa an Oregon General partnership is co-managed by Hawthorne Villa GP LLC and Resident Resources. I do so attest to its truthfulness and certify it. 7)1;111 L &" William S.Maxwell President esident Resources State Of Oregon Date to ry Ve, I S, 1.4%t f 0,r,", OFFICIAL STAMP County �I '""`U JEFFREY JOHN ROBERTON fNOTARY PUBLIC-OREGON This record was acknowledged before me on(date) PO � Y�l ,20 l�a by d;' COMMISSION NO.967950 MY COMMISSION EXPIRES OCTOBER 29,2021 (name(s))of individual(s) \ LA.! 414 M'XitLii. Notary Public State of Oregon Signatu e -7 / Z ,Z N, Official Seal Name • Resident Resources G. Attachments 1. Site Survey a. Building A b. Building B c. Building C d. Building D First floor e. Building D Second floor f. Building E g. Building F 2. Oregon Certificate of Existence 3. State of Oregon Amended Annual Report 4. Certification of Low Income Housing Restriction 5. IRS Certificate of 501 3 (c) reb LI. alb I I :iyANI No. V710 r. j State of O OFFICE OF THE SECRETARY OF STATE Corporation Division Certificate of Existence 755L.,896R3 I, DENNIS RICHARDSON, SECRETARY OF STATE, and Custodian of the Seal of said State, do hereby certify. RESIDENT RESOURCES is a Nonprofit Corporation under the laws of The State of Oregon and is active on the records of the Corporation Division as of the date of this certificate. — In Testimony Whereof I have hereunto set or my hand and affixed hereto the Seal of the wi.r:"�' � Q State of Oregon. 1(1 ifiii-Z--,M37.447..c‘ (6 V, A.'.fr''.? . I - 5 ' DRNNlS RICHARDSON, SECRETARY OF STATE 2/21/2018 AMENDED ANNUAL REPORT E-FILED A "` Corporation Division Feb 08, 2018 www.filinginoregon.com OREGON SECRETARY OF STATE REGISTRY NUMBER 118973395 REGISTRATION DATE 02/19/2016 BUSINESS NAME RESIDENT RESOURCES BUSINESS ACTIVITY RESOURCE PROFESSIONAL SERVICES THAT ASSISTS TENANTS IN THE FINDING AND KEEPING AFFORDABLE HOUSING. TO ASSIST TENANTS IN REDUCING RENTAL AND LIVING EXPENSES. TO MEDIATE POTENTIAL TEANT EVICTIONS. MAILING ADDRESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA TYPE DOMESTIC NONPROFIT CORPORATION PRIMARY PLACE OF BUSINESS 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA JURISDICTION OREGON REGISTERED AGENT WILLIAM MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA If the Registered Agent has changed, the new agent has consented to the appointment. PRESIDENT WILLIAM S MAXWELL 4800 SW MEADOWS RD #300 LAKE OSWEGO OR 97035 USA Page 1 ;.____ ` '' '' Corporation Division ..., .° www.filinglnoregon.com OREGON SECRETARY OF STATE fl.. SECRETARY ANDY K TREVINO 248 GREENRIDGE DR LAKE OSWEGO OR 97035 USA I declare as an authorized signer,that this filing has been examined by me and is,to the best of my knowledge and belief, true, correct,and complete. Making false statements in this document is against the law and may be penalized by fines. imprisonment, or both. 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' : iiiippeig,,,, ,: : _„1 . 100,S10 - - 11 i __ Y .,,r STATE OF OREGON 1 J 88 ' .� Cotady of Wahkraton A . • omit.14i.;..1,14::_.Alenia• w mem Jerry p�� ' County a l Clerk for K . • •• ,.. -Mg cetyl s4 the wilt,. •, F ! l ill and re-_ i .tip county * ';;:�a• U ,6 ''. rentor ht dt s , •lion,89• . . , , •Iork Doc t 97032421 83.D0 Rects 184112 04/09/1997 04%02$29pet • I — ■ Mir I♦I 1 1 I— t5 • a 'RECORDING REQUESTED BY AND%%IBM RECORDED,MAIL ' TO: nu Orden Rimbaud Commuetty d0 Bente"13.pa tm•ni Le 1600 Mate Street Salim,Gegen 97310 Attar )LeastP.Kalaver - SPACE AeOVEPOR R5 DER'S USE OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT i LOW-INCOME HOUSING TAX CREDIT DECLARATION OF LAND USE RESTRICTIVE COVENANTS TIi15CLARATION OP LAND USE RESTRICTIVE COVENANTS,(this"Declaration"),dated as of_ ni £t ,1997,by HAWTHORNE yILLAL1MITED PARTNERSHIP,end Its successors and f— assigns the"Owner")is given as a condition precedent to the allocation of low-Income housing credits by the ,� Oregon Housing and Community Services Department,a governmental agency of the State of Oregon,together with trtttt�i any successor to its rights,duties,and obligations,(the"Deputment"). , *(incl dee 117 tax credit units and WITNESSETH: two on-mon-area managers' unite) I WHEREAS,the Owner is or shall be the owner of a(n)la unitlent I housing development, located on lends in the City ofTigerd,County of Wasidngton,State of Oregon,more particularly described in Exhibit A hereto,known as or to be known as HAWTHORNS ILLA A_PARIDEM (the"Project");and WHEREAS, the Department has been designated by the Governor of the State of Oregon as the housing credit agency for the State of Oregon for the allocation of low-income housing tax credit dollars(the"Credit");and WHEREAS,the Owner has applied to the Department and entered Into a Determination Letter and Agreement fbr , an allocation ofCredlt to the Project in an amount not to exceed One hundred eighty one thousand.one fourty three dollars($181J 43)oftax exempt bund fi__ nanc;d 4%low-income housing credit allocation;and WHEREAS,the Department has agreed to issue a Form 8609 to the Owner upon the execution and recording of this Declaration which constitutes part of the Determination Letter and Agreement;and ' WHEREAS,the Owner has represented to the Department In Owner's Low-Income Housing Tax Credit Application (the"Application")dated Much 24. 1997,that Owner shalt lease/rent 100 percent of the units in the Project to individuals or&millet whose income is 60 percent or less of the area family adjusted median gross income '2 ("Low-Income Tenants")as determined in accordance with Section 42 of the Intenal.Revesnue Code(the"IRC'); and i WHEREAS,the Department has determined the Project would require a Credit allocation in the amount of$181.143 of tB c exempt bond financed 4%tax credit allocation to be financially feasible;and WHEREAS,the Owner has represented to the Department rent restrictions it will maintain for the period of time as specified in the Determination Letter and Agreement;and DECLARATION OF LAND USE RESTRICTIVE COVENANTS - LIRTC PROJECT NUMBER OR94-4-002 PAGE I OF 10 p,56d a nif WHEREAS,the IRC requires as a condition precedent to the allocation of the Credit that the Owner execute,deliver and record this Declaration in the official lend deed records of the county in which the Project Is located In order to cetatecettaln covenants running with the land for the purpose of enforcing the requirements of IRC Section 42 and the Department's Occupancy Restrictions found in Section 5 hereof by regulating and restricting the use,occupancy and transfer of the Project as sot forth herein;end WHEREAS,the Owner,under this Declaration,Intends,declarer,and covenants that the regulatory and restrictive covenants set forth herein governing the use,occupancy,and transfer of the Project shall be and aro covenants running with the Protect land for the term stated herein and binding upon all subsequent owners of the Project land for such term,end are not merely personal covenants of the Owner, NOW,THEREFORE,in consideration of the promises and covenants hereinafter act forth and of other valuable consideration,the receipt and sufficiency of which is hereby acknowledged,the Owner and the Department agree as follows: SECTION 1-DEFINITIONS All the words and phrases used in this Declaration shell have the same meaning as when used in IRC Section 42, Treasury Regulations or Notices promulgated pursuant to IRC Section 42,Department Administrative Rules,and the Department of Housing and Urban Development("HUD")Regulations unless the context requires otherwise. SECTION 2-RECORDING AND FILING;COVENANTS TO RUN WiTH TILE LAND (a) Upon execution of this Declaration by the Owner and the Department,the Owner shall cause this Declaration and all amendments hereto to be recorded and filed in the official public land deed records of the county in which the Project is located,and shall pay all fees and charges Incurred in connection therewith, Upon H recording,the Owner shall immediately transmit to the Department an executed original or certified copy of the recorded Declaration showing the date,deed book and page numbers of record. The Owner understands and agrees that the Department will not issue the Internal Revenue Service Form 8609 constituting final allocation of the Credit unless and until the Deportment has received the recorded executed original of this Decterr.tion. (b) The Owner intends,declares,and covenants,on behalf of itself and all lbture Owners and operators of the so. Project during the term of this Declaration,that this Declaration and the covenants and restrictions set forth in this Declaration regulating and restricting the use,occupancy and transfer of the Project(I)shall be and are covenants running with the Project land,encumbering the Project for the term of this Declaration,binding _! upon the Owner's successors In title and all subsequent Owners and Operators of the Project(II)arc not —, merely personal covenants of the Owner,and(111)shall bind the Owner(and the benefits shall inure to the Department and any past,present or prospective tenant of the Project)and its respective successors and .l assigns during the term of this Declaration. The Owner hereby agrees that any and all requirements of the laws of the State of Oregon to be satisfied in order for the provisions of this Declaration to constitute deed restrictions and covenants running with the land shall be deemed to be satisfied in Hull, and that any requirements of privileges of estate are intended to be satisfied,or in the aitemsto,that an equitable servitude has been created to insure that these restrictions run with the Project. For the longer of the period this Credit is claimed or the term of this Declaration,each and every contract, deed or other instrument hereafter executed conveying the Project or portion thereof shall expressly provide that such conveyance is subject to DECLARATION OF LAND USE RESTRICTIVE COVENANTS 3 LIHTC PROJECT NUMBER OR96.4.002 PAGE 2 OF 10 a • this Declaration,provided,however,the covenants contained herein shall survive and be effective regardleu of whether such contract,deed,or other instrument hereafter executed conveying the Project or portion thereof provides that such conveyance Is subject to this Declaration, (c) The Owner covenants to obtain the consent of any prior recorded ilenholder on the Project to this Declaration and such consent shall be a condition precedent to the Issuance of Internal Revenue Service Form 8609 constituting final allocation of the Credit. SECTION 3-REPRESENTATIONS,COVENANTS AND WARRANTIES OP TUE OWNER The Owner hereby represents,covenants,and warrants as follows; (a) The Owner(I)is a limited duly organized under the laws of the State of Oregon,and Is qualified to transact business under the laws of the State of Oregon, (II) has the power and authority to own Its properties and assets and to carry on its business as now being conducted,and(III)has the fttil legal right, power and authority to execute and deliver this Declaration. (b) The execution and perfbrmance of this Declaration by the Owner m will n'!violete or,as appsliceble,ha, t{--•— not violated any provision of'law, rule or regulation, or any order of any court or other agency or governmental body, (II)will not violate or,as applicable,has not violated any provision ofany indenture, agreement,mortgage,mortgage note,or other instrument to which the Owner is a party or by which it or the Project is bound,and(III)will not result to the creation or Imposition of any prohibited encumbrance of — any nature. • (o) The Owner will,at the time of execution and delivery of this Declaration,have good and marketable title to the premises constituting the Project free and clear of any lien or encumbrance(subject to encumbrances created pursuant to this Declaration, any Loan Documents relating to the Project or other permitted encumbrances). (d) There is no action,suit,or proceeding at law or in equity,or by or before any governmental instrumentality or other agency now pending,or,to the knowledge of the Owner,threatened against or affecting It,or any of its properties or rights,which if adversely determined,would materially impair Its right to carry on business substantially as now conducted(and as now contemplated by this Declaration)or would materially adversely affect Its financial condition, (e) The Project constitutes or will constitute a qualified low•income building or qualified low-income project, as applicable,es defined in IRC Section 42 and applicable regulations. • (f) Each unit in the Project contains complete facilities for living,sleeping,eating,cooking and sanitation(unless the Project qualifies ass single-room occupancy project or transitional housing for the homeless)which are to be used on other than a transient basis. --' (g) During the Term of this Declaration,all units subject to the Credit shall be leased,rented or made available to member,of the general public who qualify as Low-laconic Tenants(or otherwise qualify for occupancy of the low-income units)under the applicable election specified in Section 42(g)ofthe IRC. (h) The Owner agrees that tenant and third parties will be eligible to enforce IRC Section 42 entitlements as DECLARATION OF LAND USE RESTRICTIVE COVENANTS LTC PROJECT NUMBER OR96-4.002 PAGE 3OF10 . r •• I • . provided by the Fair Housing Act,as amended, et (i) During the term of this Declaration,the Owner covenants,agrees and warrants that each low-Income unit ' is and will remain habitable,' 0) Subject to the requirements of IRC Section 42 and this Declaration, the Owner may sell, trader, or exchange the entire Project at any time,but the Owner shall notify in writing and obtain the agreement of am, buyer or successor or other person acquiring the Project or any Interest then:in that such acquisition Is subject to the requirements°Rhln Declaration and to the requirements of IRC Section 42 and applicable regulations. This provision shall not act to waive any other restriction on sale,transfer,or exchange of the project or any low-Income portion of the Project. The Owner agrees that the Department may void any sale,transfer,or exchange of the Project Lithe buyer or successor or other person tells to assume In writing the requirements ofthls Declaration and the requirements of IRC Section 42. Notwithstanding the foregoing,the owner shall not dispose of'any portion of a building which constitutes a portion of the Project and to which this Declaration applies unless the entire building is disposed of to such person. (k) The Owner agrees to notify the Department in writing prior to any sale,transfer,or exchange of the entire Project or any tow-Income portion of the Project. (1) The Owner will provide certified financial documentation acceptable to the Department to satisfy the caculation ofa qualified contract and to begin the one year period for finding a buyer in accordance with IRC Section 42(hX6)If desired. (m) The Owner shall not demolish any part of the Project, substantially subtract from any real or personal property of the Project, or permit the use of any residential rental unit for any purpose other than rental housing during the term of this Declaration unless required by law or unless the Department has given its prior written consent. (n) The Owner represents, warrants,and agrees that if the Project, or any part thereof;shall be damaged, destroyed,shall be condemned,or acquired for public use,the Owner will use its best efforts,subject to the 1111 rights of any mortgagee,to repair and restore the Project to substantially the same condition as existed prior to the event causing such damage or destruction,or to relieve the condemnation,and thereafter to operate the Project in accordance with the terms of this Declaration. (o) The Owner warrants that it has not and will not execute any other Declaration with provisions contradictory to,or in opposition to,the provisions hereof,and that in any event,the requirements of this Declaration are paramount and controlling as to the tights and obligations herein set forth and supersede any other requirements in conflict herewith. ®� �i (p) The applicable fraction for each building of the Project during the term of this Agreement shall not be less than the applicable fraction specified in the Low•Income Housing Tax Credit Determination Letter and Agreement(the"Agreement")executed by the Owner as JJIQ percent. [See IRC Section 42(h)(6)(B)] (q) The Department may require the Owner to reduce rents charged for low-income units if property taxes imposed upon the Project ate reduced because of a change in Oregon law. Any reduction in rent required by the Department shall not exceed the reduction in property taxes,taking into account any replacement taxes or equivalent charges: and shall further take into account prevailing operating er,arae•: or debt coverage requirements of the Project's lender(s) DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER 0R96-4-002 S PAGE 4 OF 10 • . • • r C • t (r) If the Section$Income Limits used to determine rent limits aro reduced to account for a reduction in property taxes Imposed on the Project because of a change In Oregon law or if rents are otherwise reduced by fbderally subsidised.housing assistance programs or comparable program to account for a reduction In property taxes imposed on the Project because of a change in Oregon law and the Department determines that the reduced rent charged for low-Income unite in the Project appropriately reflects the reduction in property taxes,then Section 3(q)of this Declaration shall not apply. (e) The ownrs will not United States Houssiingg Actillie tlease o1937 because of the statue of the tenant to a holder of a voucher or certificate of teunderbility u sir of the a holder. ta (t) The owner agrees to All out and sign Part H of the Form 8609 required to be completed by the building owner for the Brat year of the credit period and return a copy(without Schedules and other supponing documents)to the Department for the purposes of compliance monitoring, (u) The Department may charge a reasonable fee comparable to fees charged by the Department fbr monitoring — activities in accordance with Section 8(d)of this Declaration for rent reviews and determinations made pursuant to Sections 3(q)and 3(r)of this Declaration. SECTION 4-INCOME RESTRICTIONS; RENTAL RESTRICTIONS The Owner represents,warrants,and covenants that from end eller initial occupancy and throughout the remaining term of this Declaration and in order to satisfy the requirements of IRC Section 42("Section 42 Occupancy Restrictions")that; (Check applicable percentage election) (a) (1)_ At least 20 paocnt or more of the residential units In the Project will be both rent-restricted and occupied by individuals whose Income is$0 percent or Icss alley adjusted area median Income, (2)A.At least 40 percent or more of the residential units In the Project will be both rent-restricted and occupied by individuals whose income is 60 percent or less of family adjusted area median income. (b) TheDepartment may require that the determination of whether a tenant meets the low-Income requirement Mi be made by the Owner or his designated agent at least annually on the basis of the current Income of such Low-Income Tenant. SECTION 5-DEPARTMENT'S OCCUPANCY RESTRICTIONS ®; The Owner represents,warrants and covenants throughout the term of this Declaration that; (a) Project rents will not exceed the gross rent allowable under IRC Section 42. (Check b through e,if applicable) i (b)X.- The Owner will extend the income and rental restrictions of IRC Section 42 for a years after the close of the compliance period. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4-002 PACE 5 OF to • •' (o)X- Regardless of eny provision In this Declaration to the contrary,the Department':Occupancy Restrictions provided by this Section shalt remain in place for a period of 3D years or until January 1,2025 except In the cue of foreclosure or deed in lieu of foreclosure of a prior recorded lien to this Declaration as provided in Section 6(b)(l)but subject to Section 6(c)of this Declaration, (Check applicable election) (d) (l)X The Owner will£CI the earliest date upon which the Owner may request the Department to aaaint in procuring a qualified contract for the acquisition of the low-Income portion which is a part of the Project to after year 14,from the year the project was placed In service, (2), ' • - - - • _ .. .- . _,._ ..• , • to-rvairtInlmoee+!frts.'...,• '. . .. . . .. _ _ (e)— Operating reserves when released from restricted use shall be wholly used to subsidize tenant rents consistent with guidelines prescribed by!he Department. 4 SECTION 6-TERM OF DECLARATION (a) Except as hereinafter provided,this Declaration and the IRC Section 42 Occupancy Restrictions specified herein shall commence with the first day In the Project period on which any building which is part of the Project Is placed in service and shall end on the date which is 15 years after the close of the compliance period. (b) The Owner shall comply with the requirements of IRC Section 42 relating to the extended use period, provided,however,this Declaration and the extended use period for any building which Is part of this Project shall terminate: (1) On the date the building is acquired by foreclosure or instrument in lieu of foreclosure;or (2) On the Ian day of the ono-year period specified in IRC Section 42(h)(6)(1),if the Owner has properly requested in accordance with IRC Section 42 that the Department assist in procuring a qualified contract for the acquisition of the low-income portion of any building which is a part of the Project, the Department and the Owner have agreed upon the terms of sale as specified In Section 3(1)of this Declaration,and the Department Is unable to present a qualified contract within one year of reaching (�— written agreement regarding the terms of sale. (c) Notwithstanding subsection(b)above,IRC Section 42 rent requirements shall continue fcr a period of three years following the termination of the extended use requirement.pursuant to the procedures specified in subsection(b)above for those tenants existing as of the date of termination. During such three-year period, the Owner shall not evict or terminate the tenancy of an existing tenant of any low-Income unit other than for good cause and shall not increase the gross rent above the maximum allowed under the IRC with respect to such low-income unit. (d) If the Owner has agreed to optional Department's Occupancy Restrictions as reflected in Section S of this Declaration,neither this Declaration nor the extended use period shall terminate until the time period for compliance with such Department's Occupancy Restrictions has expired subject to earlier termination under Seellon 6(b)(1)above. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIRTC PROJECT NUMBER OR96-4-002 PAGE 6OF10 • t a a • • r — 1 s, • RECTION 1.ENFORCEMENT OF DEPARTMENTS OCCUPANCY RESTRICTIONS (a) Tho Owner shall permit during normal business hours and upon reasonable notice, any duly authorized representative of the Department,to inspect arty books and records of the Owner regarding the Project with respect to the incomes of Low-Income Tenants which pertain to compliance with the Department's Occupancy Restrictions specified In this Declaration. (b) The Owner shall submit any other information,documents,or certifications requested by the Department which the Department shall deem reasonably necessary to substantiate the Owner's continuing compliance with the provisions of the Department's Occupancy Restrictions specified in this Declaration. SECTION 8-ENFORCEMENT OF SECTION 42 OCCUPANCY RESTRICTIONS (a) The Owner covenants that it will not knowingly take or permit any action that would result in a violation of the requirements of IRC Section 42 and applicable regulations of this Declaration, Moreover, Owner covenants to take a,ly lawfbl action(including amendment of this Declaration as may be necessary,In the - 7 opinion of the Department)to comply fully with the IRC and with all applicable rules, rulings, policies, procedures,regulations or other official statements promulgated or proposed and published by the United States Department of the Treasury,the Internal Revenue Service,or HUD from time to time pertaining to Owner's obligations under IRC Section 42 and affecting the Project. (b) The Owner acknowledges that the primary purpose for requiring compliance by the Owner with restrictions provided in this Declaration is to assure compliance of the Project and the Owner with IRC Section 42 and the applicable regulations,AND BY REASON THEREOF,THE OWNER IN CONSIDERATION FOR RECEIVING LOW-INCOME ROUSING TAX CREDITS FOR THIS PROJECT HEREBY AGREES AND 1 CONSENTS THAT THE DEPARTMENT AND ANY INDIVIDUAL WHO MEETS THE INCOME -I LIMITATION APPLICABLE UNDER SECTION 42 (WHETHER PROSPECTIVE, PRESENT OR FORMER OCCUPANT)SHALL BE ENTITLED,FOR ANY BREACH OF THE PROVISIONS HEREOF, AND IN ADDITION TO ALL OTHER REMEDIES PROVIDED BY LAW OR IN EQUITY, TO ENFORCE SPECIFIC PERFORMANCE BY THE OWNER OF ITS OBLIGATIONS UNDER THIS DECLARATION IN A STATE COURT OF COMPETENT JURISDICTION. The Owner hereby further specifically acknowledges that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of any default hereunder. _ (c) The Owner hereby agrees that the representations and covenants sot forth herein may be relied upon by the Department and all persons Interested in Project compliance under IRC Section 42 and the applicable • regulations, (d) The Owner agrees to take any and all actions reasonably required by the Department to substantiate the Owner's compliance with occupancy restrictions of IRC Section 42 as now constituted or subsequently amended and other occupancy restrictions of the Department as now constituted or subsequently adopted and will pay a reasonable fee to the Department for the Department's monitoring of the Owners compliance based upon the Department's monitoring costs. (a) This Declaration and the Determination Letter and Agreement of which it is a part may be enforced by the Department or its designee in the event the Owner falls to satisfy any of the requirements herein. In addition, DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4-0D2 PAGE 7 OF 10 . t this Declaration shall be deemed a contract enforceable by one or more Tenants as third-party beneficiaries of the Declaration and Determination Letter and Agreement, In the event the Owner tblls to satisfy the requirements of this Declaration or the Determination Letter and Agreement and legal costa are incurred by theDeparttnatt or one or more of the tenants or beneficiaries,such legal coats,Including attorney fees and court costs(including coals of appeal),are the responsibility of,and may be recovered from,the Owner, SECTION 9-EXTENDED LOW-INCOME ROUSING COMMITMENT *NOT APPLICABLE** An Option end Ri: t of First Refusal Agreen•nt has been entered into with 1Lalntin Valley Housing arne's, t o r. act a y• -n- a •ar er hereby agrees to transfer the Project to a"qualified nonprofit organization"(as defined In IRC42(h)(5 j acceptable to the Owner,the Department and the mortgage lender after the end of the calendar ye. ling years after the issuance of the Forms 8609 for the Project,or as soon thereafter as the t : er can be co nrmated,on the following terms: (t) consideration for the transfer shall be in accordance with the formula in IR ection 42(h)(6)(F) in an aunt equal to the sum of(a)the principal amount of outstanding Ind,. ed nese secured by the Project, '. the adjusted Investor equity in the Project,and(c)other capita ontributlone not reflected In the onto.• is described above,reduced by cash distributions from(or. Mable ter distribution from) the Project, (2) Owner shall be und- o obligation to transfer the Project to - qualified organization In the event that no acceptable qualifl-• ,•anizatlon accepts title and as •mcs Owner's obligations before the end of the calendar year fishing years after the Issuance . the Forms 8609 for the Project, (3) In making the determination oe transfer qualified nonprofit organization,first right of refusal shall be given to (4) Any controversy related to the set io .f the transferee qualified organization shall be settled by arbitration pursuant to the rule: .f the Am.:can Arbitration Association. (b) Owner furthcr covenants to use i :reasonable best effort o assure that,at the time of the transfer; (f) the Project is generating sufficien - h flow to service Project d.••end pay Project operating expenses;and(ii) the Project is in reasons• good physical condition(for a n ti-family apartment project of its age and quality), NEM (c) No provision o is section shall prevent any tender loaning(Linda secu d by the Project front tbreclosing 1 on the prop y or otherwise exercising its Nil right as a lender. In the e t of a bonafide foreclosure or transfer• +e Project to a lender by a deed in lieu of foreclosure,the foreciosin! ender shall take the Project free •• clear of any obligation to transfer the Project to a nonprofit orgnnizatio .r to operate the Project • •a urdebie housing except as provided for In IRC Section 42, The Department • its assigns shall have e.-s so-oey dofc • SECTION 10-MISCELLANEOUS . (a) Sevraat:Illtxaffect invalidity of any clause,part,or provision of this Declaration shall not the validity • of the remaining portions thereof. DECLARATION OF LAND USE RESTRICTIVE COVENANTS LIHTC PROJECT NUMBER OR96-4.002 PAGE.9 OF 10 '' (b) Nodim AI!notices to be given pursuant to this Declaration shall be in writing end shall be deemed given r ' when mailed by certified or r gietered mail,return receipt requested,to the parties hereto at the addresses set Sixth below,or to such other place as a party may Rom time to time designate in writing, To the Depattnent: Oregon Housing and Community Services Department ATTN: L1HTC PROGRAM 1600 State Street Salem,Oregon 97310-0161 To the Owner HAWTHO1 NE VILLA LIMITED PARTNERSHIP ATTN: . t] ENN KER J6101 SW 72ND AVENUE PORTLA!QD OR 97224 The Department,and the Owner,may,by notice given hereunder,designate any Rather or different addresses to which subsequent notices,certificates or other communications shall be sent. (c) Arwmgat, The Owner agrees that It will take all actions necessary to effect amendment of this Declaration as may be necessary to comply with the IRC,any and all applicable rules,regulations,policies,procedures, rulings,or other official statements pertaining to the Credit, The Department,together with Owner,may execute and record any amendment or modification to this Declaration end such amendment or modification shall be binding on third-parties granted rights under this Declaration. — (d) Subordination of Declaration, This Declaration and the restrictions hereunder are subordinate to the puma=loan and loan dor:meets on the Project in an original principal amount not to exceed S4.000.000, except insofar as IRC Section 42 (h)(6)(E)otherwise requires. The Department may subordinate this Declaration to other Financing,in its sole discretion and such subordination shell be binding on all third• parties granted rights under this Declaration, (a) Governing Law. This Declaration shall be governed by the laws of the State of Oregon and, where applicable,the laws of the United States of America. (f) Survival of Obli ratio e. The obligations of the Owner as set forth herein and in the Application shall survive the allocation of the Credit and shall riot be deemed to terminate or merge with the awarding of the allocation, DECLARATION OF LAND USE RESTRICTIVE COVENANTS JD LIHTC PROJECT NUMBER OR96-4-002 1 PAGE 9 OF 10 — __ r ■ G• LK WITNESS WHEREOF, the Owner has caused this Oeciaration to be signed by its duty authorized representatives,as of the day and year first written above, • OWNER Hawthorne Ville united Partnerahip • By: Name: G. ,David Sebastian Title: president. liawtllorne Villa GP, Inc., General Partner of Hawthorne Associates Limited Partnership, a General Partner STATE OF OREGON ) County of_Kegglinitton This instrument was acknowledged before me this_ g4- day of i l , 191i by G. David Sebastian, President /�}�a� __ 1 LLIAAJZ.fA/IA.CiIrti�1�'1�`1•�.��.RI , STEP r NOTARY PUBLIC FOR ONOON `;;J �1 i4 My Commission Expires; f?Y. I dUX� ' `it moo fhtrdocument pr:paredthL4lerrh77.J991 6y: 7"�''+ 1' kk�� r✓ Print Now FJP.Xalevr ZalC rex Credit ProgramRtpretextotive h'Ifiee7hegsttrel Wier/lin • —H DECLARATION OF LAND USE RESTRICTIVE COVENANTS f' LIBTC PROJECT NUMBER OR96-4.002 PAGE 10 OF 10 .. • r i • a EASUMIL B, part of the George Richardson notation Land Claim in'the Northsast guartar of the Southeast quarter of Section 26, TOunship 1 South, Range 1 wast of the Miltaaatte _ liorldian, in the* City of Tigard, County of uaahingtoa and State of Oregon, described as follows 112033nN170 at the Northwost dorcdr of the George Richardson Dcattioa land Clain, situated in Station 38, Township 1 Reath, Ramps 1 Weft, M311aeetts meridian) thanes South P9°00' last, 1667.60 feet to a point in the 1Wrtherl1 boundary lin; of said Donation Land Claim; thaws South 0°11' Wast, 1204.0 teat to oh iron pipe, said iron _ pipe sarkisq the Northwest eetract rnar of that ooneepeedid in pelook 279, Page 648; theacs South 69°49" Sart, 86.0 feat aloof; the North lies of that tract conveyed in Dead gook 270, page 648 to the Northeast ooroor of said tract and true point of Ma>o begincing of the tract herein dsaoribadp thence teeth 89049' last, 98.0 test; tams North 0°11' last parallel with the Sash Lino of that, tract described in dead to Leonard E. Celan, et al, recorded January 16, 1966, in,Book 677, page 139, Washings n ®i County Records, 173.66 feat; thane's South 68°17' last,'96 Lest to the Mast 1100 of said Cason tract) thence South 0°11' Meat along the Rant ].ins of said casco haat, 315.0 feat to the eoutbeaat corner thereof! thence North 88017' West along the Swath lino of said Cason tract, 121.6 feat to the Southeast oaraar of that tact ooar'eyed in Deed Book 279, Bags 648; thanes North 0°11' last along the East lino of that tract conveyed in Dood Soak 279, Page 646. 141.34 feet, mare or less, to the true point of bog/mine, all situated in Waddington County, 0tego8. PAZ ZZa A part of the George Richardson Donation Land claim Laths Northaaat quarter of the Southwest quarter of Section 36, Township 1 south, kgs 1 Walt of the Willaoatte meridian, in the City of Tigard, County of Washington and State of Oregon, dacoribed an follows, • =Imam at the Northwest corner of the George Richardson Donation Land Claim, oituated In Motion 36, Township 1 south, Range 1 Wort, Will.amatte Meridian; thanes South B9°00' East, 1887.60 taut to a point In the Northerly boundary line of said ®_ oonatioa Land Claim; thence sonth 0°11' West, 1204.0 fest to an iron pipe, Raid iron 1111 pita narking the Northwest corner of that tract coaysyed in Deed Book 279, Pigs 648, and the true point of begioairy herein described thence South 69°49' East, 110.0 feet see to a point; thence North 0°11' Bast parallel with the East lino of that tract desoribsd in deed to Laonrtd S. Cason, at al, recorded daeuary 16, 1968, in Book 6:7, Pogo 139, Washington County Records, 17,3.66 feet to a point; t:hsccs Korth 88°37' Nast, 110.0 feet to a point on the Rost line of said Cason tract; thanes South 0°11, Neat along said Wast line, 173.66 feet to the true point of beginning. • IZ- • • • Phi= xrz, t part of the 4sotpe RLobaadson Donation Land Clain is the northeast quarter of the 90uthwaat 4uartar of section 26, fownahip 1 South, Aan4s i Vat of t s ttiliaeatte Weridiati, in the City of Tigard, County of Washington and state of as follower °rag a deaeribed • lorotroMe3 at the tlortbwsst corner of the doom ?iohardaoti Donation Land Clat*r situated in section 36, Township 1 South, Rang' 1 Neat. Wiilaamtta Meridian and running therms South 69°00' Last, 1187.60 feat to a point in the Lnrthesiy boundary line of acid Donation Land Clara, thaws South 0°11' Wast, 1204.0 fiat to an iron pipe, said iron pipe narking the forth,rset corner of that trait conveyed in Died nook 279, Page 646; thence south 65049. East, 05.0 fest along the forth Una of that treat conveyed in Deed Book 279, Page 646 to the Northeast corner of thareof; thanes sootb e9°49' Nast, 18.0 feet, thence North 0°11' East parallel With the last line of that tract deecribsd in deed to loomed L. Cason, at al, 'worded sa»-Lay id, 1966, La Book 677, Page 139, Washington County 7tscords, 171.66 feet; thtnow South 08°37. Multi 51.0 feet to the true point of heginning of the herein dsscribsd premises, thence continuing South 86°17' tact, 46.0 foot to a point on the fast line of said casae , tract) thence Worth 0011' Last along raid pest line, 90.0 fest; thanes North 96017' Yost, 45.0 fest, thence South 0°11' Hest, 90.0 fort to the true point of beginning. PEI= y• h part of the deorge Richardson Satiation Land Claim is the !crthaaat quarter of the Southwest quarter of aeration 36, Township 1 South, Range 1 West of the WLllaantte MorLdia", in theCity of Tigard, County of Washington and State of Oregon, daa°ribad as follows, BEV owns IfG at the ,rorthwst corner of the George Richardson Donation Land Clair in Section 36, Township 1 South, Range 1 West, Willamette naridiaa in the County of Washington and State of Oregon, and running thence south 89°00' Bast, 1867.60 feat to a point on tbs Wortbarly boundary line of said Donation Land Claim; thanes South 0°11' West, 1030.34 feet to a point on the West line of that tract &ascribed in deed to Leonard L. Gaon, et al, rocordad January 16, 1962, in look 677, page 139, records of Nasbington county, being the westerly porthwest corner of that tract described in Mortgage recorded October 29, 1968, ire look 722, Page 520, records of Washington County and the true point of beginning of the herein described promises; thence South 68°17' test 161.6 fast; thenen North 0°11' last, 90.0 feet; thence South 88°17' Sant, 45.0 feet to a point on the Sant Lira of said cam= tract; thence ,forth 0°11' Bast along said Bast lino, 171.34 !set to a paint, thanes North 69°17' West, 65.0 feet to a point; Choate South 0°11' West, 76.0 feet to a point; thsane North 68°17' Nest, 141.6 Emit to a point on the Wast line of said Cason tract; thence South 0°11' West along said Waist Lias, 15.6.34 feet to the true point of heginning. i2;7 I • • • RtTill'SL vt A pari of the oeoege nicwurdsan Donation Land Claim in'•the Northeast quartet of the pwtbwet goister of section 36, Township l South, mange 1 Nest of the Nillaestto Meridian, in the cit? of Tigard, county of Wassiagton Ind *tate of tenon, described as folLewsr • Dtolffiitila7 et this hartbeest wrnar of this Owsge Richardson Donation Lacer Claim, in Section 36, townehip 1 Ooutt►, Range 1 Hest of the Willemctte Maridisa and cunning than® south 09°00' last, 1687.60 toot to a point on the Northerly boemdary line of said Donation Land claim! thane South 0011' West, 844.0 feet to a point on the but Line of that treat described in deed to Leotard 5. Cason at al, recorded Aenuary i9, 1668, in Book 677, Foga 130, records of •Wanhingtoa County, being the Haeta:Ly Northwest cower of the first tract described in Mortgage recorded February 4, 1pI, in look 712, Page 58, records of Wasbiagtoa County end the true point of beginning of the heroin described property; thsnoa South 88017' rant, 141.6 fast to a point; Uwe Worth 0011' loot, 75.0 feet to point? thence south 681117' East, 65.0 feet to a point on the beat line of said Cauca tract; thaws North 0°11' Zest along said Sart line, 113.66 test to a point; thence North 80017' Wast, 206 feet to a point on the Neat list of said Cason tract; thence. South 0°11' West along said West line, 190 fent to the true point of beginning. VAlCiL Vri A part Of the George Richardson Donation Land claim in the Wnttheaat Quarter of the Southwest quarter of ovation 36, Township 1 South, Runge 1 Want of the Uilleaetto Meridian, in the City of Tigard, County of paahiogton dad State of Oregon, donatibed as follower Stelbismo at the Northwest corner of the Ceongs Richardson Donation Land Claim is Section 36, Township l South, Range 1 Wear of the Willaoattu Meridian, in the county of Washington and State of Oregon and running thence South 89°0D' Sant, 1667.80 feet to a point on the Northerly boundary lino Of void Donation land claim thence south 04211' Wert, 654.0 feet to a point on the Went line of that tract described is deed to Leonard I. canon et al, recorded January 16, 1968, in soak 677, Page 139, records of �• Hasbington county, being the Northwest corner of the fleet tract deeonibad in 111 Mortgage recorded in nook 745, Page 265, records of Washington County and the true point of beginning of the herein deecribed property; thence South 68°11' Nast, 206 -- feet to a point an the rant line of said CeFart tract; thence North 0°11' Best along said Sart line, 166.0 feet to a point; thanes North 88°17' Pant, 206 test to a point rens or. the Wept line of said Cason tract; thence Booth 0°11' Nest along said hest tine, ""1e _ 186.0 feet to the trua point of beginning. • (( i I - rrc�4 IPF • l t � parr= Ms part of the George Richardson Donation Land Claim ia,tbe aorthaast gnartor of tilt aou:heaat quatter.nf Section 10, Township 1 South, Mange 1 Nast of the Willsootta Meridian, is the City of fiord, acUnty of Washington and Btata of Coogan, desrsibed • of fel/cow =GINNING aft the Sasthueot ooraar of the George Richardson Donation Land nista in section Sit thews Wath 89°00• Raft, 1887.00 feet to a point on the Northerly boandary of said boaatioo Lead Olaiaj thaws Stott 0°11►, ZOO feet to a point, said ' point being the 8outheest comic of a tract conveyed to Oscar iidlar and Crena Sidle, mompommoo by deed a cordal Sotembar 28, /911 in Deed book 80, page 4!, can the trim% point of beginnings thence Beath 0011' Nut, 178 s'eet•to a point:on the that line of that tract dasoribed in a deed to tebaard L. Cason et Li,'recorded,January 18, 1968 is Rook 477, Page 1.39. roorda of Waahlagton County, bainq the northeast =roar of tba first tract doocribid in Mortgage rsoordad Hay 19, 1971, in Book 010, Page 187, record* of Seebingtton county: than= South 88°17' haat, 206 foot to a point on the Bast lin of said Cason tract; thence worth 0011' raft along said Sant line, 178 fest to the !loath Siete of said Didier tract' thence North 690 Neat along.the Beath line of said Idler tract, 206.0 feet to the trios point of beginning. • • • • i5' Internal Revenue Service Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Date: March 3, 2017 Person to Contact: Mr. Molloy- ID#0203248 Toll Free Telephone Number: 877-829-5500 WILLIAM MAXWELL 4800 SW MEADOWS RD STE 300 LAKE OSWEGO OR 97035 Dear Sir or Madam: This is in response to your letter of January 30, 2017, requesting copies for Residents Resources. Enclosed are the copies you requested If you have any questions. please call us at the telephone number shown in the heading of this letter Sincerely. Jeffrey I Cooper Director, Exempt Organizations Rulings and Agreements INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Humber: Date: ,,. . 81-1513248 b,0 •L, 2Q16 DLN: 26053478001966 RESIDENT RESOURCES Contact Person: 4800 SW MEADOWS RD SUITE 300 CUSTOMER SERVICE ID#( 31954 LAKE OSWEGO, OR 97035-5277 Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31 Public Charity Status: 170(b) (1) (A) (vi) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 19, 2016 Contribution Deductibility: Yes Addendum Applies: No Dear Applicant: We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (SRC) Section 501(c) (3) . Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it for your records. Organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-SE) or electronic notice (Form 990-N, the e-Postcard) . If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC" in the search bar to view Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, which describes your recordkeeping, reporting, and disclosure requirements. Letter 5436 -2- RESIDENT RESOURCES Sincerely, ,Ay, � 1 Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements Letter 5436 Resident Resources Articles of Incorporation EIN 81-1513248 Resident Resources A Oregon Non-profit Corporation ARTICLES OF INCORPORATION ARTICLE I NAME 1.01 Name The name of this corporation shall be Resident Resources.The business of the corporation may be conducted as Resident Resources. ARTICLE H DURATION 2.01 Duration The period of duration of the corporation is perpetual. ARTICLE III PURPOSE 3.01 Purpose Resident Resources is a non-profit corporation and shall operate exclusively for Educational and charitable purposes within the meaning of Section 501 (c) (3) of the Internal Revenue Code, or the corresponding section of any future Federal tax code. This nonprofit is formed to assist low income families who seek to and reside in low income housing. The form of assistance will be in referrals to low income housing providers, educational opportunities, social services providers and employment resources. Our nonprofit will offer mediation between Resident and Landlords of low income housing to alleviate homelessness. We will also provide coordination to facilitate community gardens that will offer free food to the communities we serve. Page 1 of 6 Resident Resources Articles of Incorporation EIN 81-1513248 3.02 Non-Profit Resident Resources is designated as a non-profit corporation. ARTICLE IV NON-PROFIT NATURE 4.01 Non-profit Nature Resident Resources is organized exclusively for charitable and educational purposes including,for such purposes, the making of distributions to organizations that qualify as exempt organizations under section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code.No part of the net earnings of Resident Resources shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in the purpose clause hereof. Notwithstanding any other provision of this document,the corporation shall not carry on any other activities not permitted to be carried on (a) by any organization exempt from federal income tax under section 501 (c)(3)of the Internal Revenue Code,corresponding section of any future federal tax code,or(b)by an organization,contributions to which are deductible under section 170(c)(2) of the Internal Revenue Code, or corresponding section of any future federal tax code. Resident Resources is not organized and shall not be operated for the private gain of any person. The property of the corporation is irrevocably dedicated to its educational and charitable purposes. No part of the assets,receipts, or net earnings of the corporation shall inure to the benefit of,or be distributed to any individual. The corporation may, however, pay reasonable compensation for services rendered,and make other payments and distributions consistent with these Articles. 4.02 Personal Liability No officer or director of this corporation shall be personally liable for the debts or obligations of Resident Resources of any nature whatsoever,nor shall any of the property or assets of the officers or directors be subject to the payment of the debts or obligations of this corporation. 4.03 Dissolution Upon termination or dissolution of the Resident Resources any assets lawfully available for distribution shall be distributed to one (1) or more qualifying organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986 (or described in any corresponding provision of any successor statute) which organization or organizations have a charitable purpose which, at least generally, includes a purpose similar to the terminating or dissolving corporation. The organization to receive the assets of the Resident Resources hereunder shall be selected by the discretion of a majority of the managing body of the Resident Resources and if its members cannot Page 2 of 6 Resident Resources Articles of Incorporation EIN 81-1513248 so agree, then the recipient organization shall be selected pursuant to a verified petition in equity filed in a court of proper jurisdiction against the Resident Resources by one (1) or more of its managing body which verified petition shall contain such statements as reasonably indicate the applicability of this section.The court upon a finding that this section is applicable shall select the qualifying organization or organizations to receive the assets to be distributed, giving preference if practicable to organizations located within the State of Oregon. In the event that the court shall find that this section is applicable but that there is no qualifying organization known to it which has a charitable purpose, which, at least generally, includes a purpose similar to this corporation,then the court shall direct the distribution of its assets lawfully available for distribution to the Treasurer of the State of Oregon to be added to the general fund. 4.04 Prohibited Distributions No part of the net earnings or properties of this corporation,on dissolution or otherwise,shall inure to the benefit of, or be distributable to, its members, directors, officers or other private person or individual, except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered and to make payments and distributions in furtherance of the purposes set forth in Article III, Section 3.01. 4.05 Restricted Activities No substantial part of the corporation's activities shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene (including the publishing or distribution of statements) in any political campaign on behalf of or in opposition to any candidate for public office. 4.06 Prohibited Activities Notwithstanding any other provision of these Articles, the corporation shall not carry on any activities not permitted to be carried on(I)by a corporation exempt from federal income tax as an organization described by Section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code,or(II)by a corporation,contributions to which are deductible under Section 170(c)(2) of the Internal Revenue Code, or the corresponding section of any future federal tax code. Page 3 of 6 Resident Resources Articles of Incorporation EIN 81-1513248 ARTICLE V BOARD OF DIRECTORS 5.01 Governance Resident Resources shall be governed by its board of directors. 5.02 Initial Directors The initial directors of the corporation shall be Ana Trevino PO Rex 2308 Lake Oswego Oregon 97035 Andres Trevino 248 Greenridge Dr Lake Oswego,Oregon 97035 William Maxwell 4800 SW Meadows RD#300 Lake Oswego,Oregon 97035 ARTICLE VI MEMBERSHIP 6.01 Membership Resident Resources shall have no members. The management of the affairs of the corporation shall be vested in a board of directors, as defined in the corporation's bylaws. ARTICLE VII AMENDMENTS 7.01 Amendments Any amendment to the Articles of Incorporation may be adopted by approval of two-thirds (2/3) of the board of directors. ARTICLE VIII ADDRESSES OF THE CORPORATION 8.01 Corporate Address The address of the corporation is: Resident Resources 4800 SW Meadows RD#300 Lake Oswego.Oregon 97035 The mailing address of the corporation is: Resident Resources 4800 SW Meadows RD #300 Lake Oswego.Oregon 97035 Page 4 of 6 Resident Resources Articles of Incorporation EIN 81-1513248 ARTICLE IX APPOINTMENT OF REGISTERED AGENT 9.01 Registered Agent The registered agent of the corporation shall be: William Seth Maxwell 4800 SW Meadows RD#300 Lake Oswego, Oregon 97035 ARTICLE X INCORPORATOR The incorporators of the corporation are as follow: William Seth Maxwell 4800 SW Meadows RD#300 Lake Oswego, Oregon 97035 CERTIFICATE OF ADOPTION OF ARTICLES OF INCORPORATION We,the undersigned, do hereby certify that the above stated Articles of Incorporation of Resident Resources were approved by the board of directors on February,21 2016 and constitute a complete copy of The Articles of Inco oration of Resident Resources An Trevho PO Box 2308 Lake cswezo Oregon 970 5 Andres Trevino"248 Gre nridge Dr Lake Oswego.Oregon 97035 William Maxwell 4800 SW Meadows RD#300 Lake Oswego.Oregon 97035 Page 5 of 6 Resident Resources Articles of Incorporation EIN 81-1513248 ACKNOWLEDGMENT OF CONSENT TO APPOINTMENT AS REGISTERED AGENT I, William Seth Maxwell, agree to be the registered agent for Resident Resources as appointed herein. William Seth Maxwell,Registered Agent Date: a'7/--Z /4 Page 6 of 6 PARTNERSHIP AGREEMENT THIS PARTNERSHIP AGREEMENT ("Agreement") is made and entered into effective as of March 3, 2016 ("Effective Date"), by and between Hawthorne Villa LLC, an Oregon limited liability company("Administrative General Partner")and Resident Resources,an Oregon nonprofit corporation ("Nonprofit General Partner" and together with the Administrative General Partner, the "Partners"or the "General Partners"). RECITALS A. The Nonprofit General Partner and the Administrative General Partner desire to form an Oregon general partnership. B. The Partnership is formed to acquire and operate the Project. C. This Agreement sets forth the rights and obligations of the Partners with respect to the Partnership and among the Partners. NOW, THEREFORE, the Partners hereby adopt this Agreement on behalf of the Partnership pursuant to the terms and conditions set forth below: SECTION 1 DEFINITIONS All capitalized terms used in this Agreement shall have the meanings given to them in Schedule 1, attached hereto and by reference incorporated herein,or the meanings specified within the body of this Agreement. SECTION 2 NAME The Partnership shall be referred to as: Hawthorne Villa Apartments. SECTION 3 DURATION The Partnership shall have perpetual existence, unless sooner dissolved pursuant to the terms of this Agreement. SECTION 4 OFFICES The principal place of business of the Partnership shall be located 7705 SW Pfaffle Street, Tigard, OR 97223. 1 Hawthorne Villa Apartaments Partnership Agreement J:\Personal\Rentals\Hawthorne Villa\Hawthome Village Partnership Agreement(v2).docx SECTION 5 ORGANIZATION OF PARTNERSHIP 5.1 Organization. The execution of this Agreement created the Partnership under the Act. 5.2 Purpose. The Partnership was formed for the purposes set forth in Recital B, above, and to carry on any and all activities related thereto in accordance with this Agreement. 5.3 Rights of Creditors and Third Parties. This Agreement is not intended for the benefit of any creditor of the Partnership or any other Person and no provision of this Agreement(including any provision relating to any Contribution or obligation of indemnity) shall be enforceable by a Person not a signatory to this Agreement. 5.4 Title to Property. The Partnership,as an entity,shall own all Partnership Property and no Partner shall have any ownership interest in Partnership Property in a Partner's individual name or right; and each Partner's Interest in the Partnership shall be personal property for all purposes. 5.5 Payment of Individual Obligations. The Partnership's credit and assets shall be used solely for the benefit of the Partnership,and no asset of the Partnership shall be transferred or encumbered for, or in payment of, any individual obligation of any Partner unless otherwise provided for in this Agreement. SECTION 6 NAMES AND ADDRESSES OF PARTNERS; INTERESTS 6.1 Partners. The Partners of the Partnership and their names,addresses,Initial Contributions, and Interests are listed in Schedule 2 attached hereto. 6.2 Interests. Each Partner's rights and interests of whatever nature in the Partnership, including without limitation the right to participate in the management, to the extent herein expressly provided,to receive distributions of funds,and to receive allocations of income,gain,loss,deduction and credit, shall be referred to herein as such Partner's "Interest" in the Partnership. The initial percentage Interests are set forth on Schedule 2. 6.3 Resignation. A Partner may not resign or withdraw from the Partnership without Consent of the Administrative General Partner under subsection 8.2.1. A Partner shall not have the right to withdraw any part of its Paid-in-Capital. SECTION 7 LIABILITY OF PARTNERS Neither of the General Partners shall be liable,responsible or accountable in damages or otherwise to the Partnership for any action taken or failure to act by such Partner in its business judgment on behalf 1 Hawthorne Villa Apartaments Partnership Agreement J.'Personalaentals\Hawthome Villa\Hawthorne Village Partnership Agreement(v2).docx of the Partnership within the scope of the authority conferred on it by this Agreement unless such action or omission constitutes a matter as to which such Partner is obligated to indemnify the Partnership under Section 15.2. Unless otherwise agreed to in writing by the Partners, (1) the Partners shall be liable to make contributions only to the extent required under this Agreement, (2) no Partner shall be required to make any other contributions or to lend any amounts to the Partnership,except as expressly required under this Agreement,and(3)no Partner shall have personal liability for the repayment of the Contributions or loans of any other Partner, except as expressly required under this Agreement. Except as expressly provided in this Agreement, nothing in this Agreement shall confer any rights or remedies under or by reason of this Agreement on any Person other than the Partners and their respective successors and assigns, nor shall anything in this Agreement relieve or discharge the obligation or liability of any third Person to any party to this Agreement,nor shall any provision of this Agreement give any third Person any right of subrogation or action over or against any party to this Agreement. Without limitation on the foregoing, to the fullest extent permitted by the Act,no third party shall have any right to enforce any Contribution obligation of a Partner. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of the General Partners otherwise existing at law or in equity,are agreed by the parties hereto to replace such other duties and liabilities of the Partners. SECTION 8 MEETINGS OF PARTNERS 8.1 Meetings. 8.1.1 Meetings of the Partnership may be called by any Partner for any matters upon which the Partners may vote or as to which any Consent is required. The calling of a meeting shall be made by a General Partner, which shall give notice to all other Partners, which notice shall include (i) a statement of the purposes of the meeting, and(ii) the date of the meeting which shall be a date no fewer than fifteen days and no more than thirty days after the date of the Notice. 8.1.2 A written record shall be maintained by the Administrative General Partner of actions taken by the Partners at any meeting, or by Consent, and shall be kept with the other books and records of the Partnership. 8.1.3 A waiver of notice signed by a Partner,either before or after a meeting,shall be the equivalent of giving notice of the meeting as set forth above. The attendance of a Partner at a meeting shall constitute a waiver of notice. • 8.2 Partner Consent; Major Decisions. 8.2.1 The following actions ("Major Decisions") of the Partnership shall require the Consent of the Administrative Partner: (a) Any call by the Partners for Additional Contributions pursuant to subsection 11.2. (b) Any amendment and/or restatement of this Agreement. 2 Hawthorne Villa Apartaments Partnership Agreement J:\PersonallRentals\Hawthorne ViIla\Hawthome Village Partnership Agreement(v2).docx (c) The dissolution, winding up, and liquidation of the Partnership. (d) Causing the Partnership or the Partnership Property to be subject to any indebtedness for borrowed money,deferral payments for services or equipment,or be subject to any loans, guarantees or liens, drafts,promissory notes, or similar instruments of any manner whatsoever other than trade debt incurred in the ordinary course of business. (e) Any Distribution pursuant to subsection 13.2 or pursuant to Section 16 . (f) The withdrawal, replacement, or addition of any Partner or transfer of any Interest. (g) Taking any action with regard to voluntary or involuntary Bankruptcy of the Partnership. (h) Arranging on behalf of the Partnership the receipt of any grant of funds. (i) Any merger, consolidation, sale,or reorganization of the Partnership. (j) Any transfer or sale of any part of the Project or the Partnership Property or the acquisition of any real property in addition to the Partnership Property. (k) Selection of any Project Lender(s) and the terms of any loan to the Partnership by a Project Lender. (1) Any election required or allowed under the Code or the Treasury Regulations including,but not limited to,elections pursuant to Sections 42, 168,709,and 754 of the Code, and all elections required or allowed under State or local law. (m) Entering into any loan between the Partnership and a General Partner under which a General Partner would be subject to any economic risk of loss within the meaning of Treasury Regulation Section 1.752-2. (n) Incurring on behalf of the Partnership any debt not in the ordinary course of business. 8.2.2 The Consent of the Nonprofit General Partner shall be required for and only for Major Decisions identified in Section 8.2.1 (b). Nothing in this Section 8.2.2 shall be construed to limit the rights of the Nonprofit General Partner under Section 9.6. • 8.2.3 Any Partner may grant its Consent through a designated individual who is designated in writing by such Partner from time to time as having the authority to grant Consent for that Partner. 8.2.4 Any action required or permitted to be taken by the Partners at a meeting may be taken or made without a meeting and shall be deemed adopted if all Partners Consent to the action in 3 Hawthorne Villa Apartaments Partnership Agreement J:1Personal\Rentals\Hawthorne Villa\Hawthome Village Partnership Agreement(v2).docx written form(which may take the form of an electronic message addressed to all Partners). Additionally, if all Partners sign a contract or agreement with a third party(such as a lease or contract for services,etc.), then such contract or agreement shall be deemed authorized by the Partnership without the need for a further written Consent of the Partners. 8.3 Telephonic Meetings. Meetings may be held by any means of communication by which all Partners participating may simultaneously hear each other. A Partner participating in such a meeting is deemed to be present in person at such meeting and to have waived any right to notice. SECTION 9 RIGHTS,POWERS,OBLIGATIONS OF THE PARTNERS 9. 1 Authority of Partners. (a) The Nonprofit General Partner shall be responsible for: (i)day to day operation of the Project provided,however,that performance of the day to day management of the Project shall be delegated, subject to oversight by the Nonprofit General Partner,to the Initial Property Manager or a Substitute Property Manager,and(ii)the performance of the Resident Services Plan. In addition,the Nonprofit General Partner shall have the right,power, and authority to: (a)require that all rents to be charged to low-income tenants occupying income-and/or rent-restricted units within the Project do not exceed those permissible under applicable regulations and/or regulatory agreements including,without limitation,regulations applicable under Section 42 of Code; (b) grant or withhold its Consent to the selection of any Substitute Property Manager(it being understood that the Nonprofit General Partner's signature on this Agreement constitutes its Consent to the engagement of the Initial Property Manager); (c)demand and obtain monthly Project operating reports of the Initial Property Manager or any Substitute Property Manager, and to advise the Administrative General Partner of any defaults by the same; and(d) conduct,upon at least three (3)business days' notice to all Partners, inspections of the condition and operations of the Project for the purpose of determining that day to day management of the Project meets applicable requirements. (b) Subject to the terms of this Agreement,the Administrative General Partner shall have the right,power, and authority, acting for and on behalf of and in the name of the Partnership,to: (i)manage the affairs of the Partnership,including acting as the Initial Property Manager; (ii)execute by a single signature and deliver on behalf of the Partnership any contract, agreement, check,draft,or other instrument or document required or otherwise appropriate for the Partnership to transact business and further the purposes of the Partnership; (iii)engage auditors, attorneys and other professional advisors and consultants to assist in the affairs of the Partnership or manage Partnership Property; (iv)subject to subsection(c),below, select and enter into agreements with lenders, suppliers, service providers,and other vendors providing financing, goods, or services for the Partnership or in respect of the Partnership Property; and(iv)bring, compromise, settle,and defend actions and claims on behalf of the Partnership. (c) Except for Major Decisions or other actions as to which this Agreement expressly requires the Consent of the Nonprofit General Partner, decisions made for and on behalf of the Partnership by the Administrative General Partner shall be binding on the Partnership. The Administrative General Partner is specifically authorized and empowered to execute any and all 4 Hawthorne Villa Apartaments Partnership Agreement J:\Personal\Rentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx instruments and documents as shall be required by any lender in connection with any agreements authorized under this Agreement including any loans so authorized and any Acquisition Documents. 9.2 Duties, Responsibilities of the Nonprofit General Partner. The Nonprofit General Partner shall cause to be filed with the appropriate local government such applications and filings required to obtain and maintain the property tax exemption authorized by Chapter 3.50.020 of the Tigard City Code . and ORS 307.541 or other applicable provision of such code or state law. 9.3 Duties, Responsibilities of the Administrative General Partner. The Administrative General Partner,with the advice and counsel of the Nonprofit General Partner,shall cause the Partnership Property to be properly managed at the expense of the Partnership. Subject to Section 9.1(b), the Administrative General Partner may delegate its authority, power, and right to manage the Partnership Property to a management agent. The Administrative General Partner shall prepare or cause to be prepared all tax and information returns required of the Partnership or considered necessary by the Administrative General Partner(including,but not limited to, federal, state,and local income tax and information returns and any amended returns). 9.4 Removal of Nonprofit General Partner for Cause. Each of the following events (each a "General Partner Default") shall constitute a "Nonprofit General Partner Event of Default" hereunder if not cured within the time frames as provided below. If no time frame is provided, the Nonprofit General Partner Default will be an immediate Nonprofit General Partner Event of Default: (a) A Bankruptcy with regard to the Nonprofit General Partner. (b) Repeated failure of the Nonprofit General Partner to perform material obligations set forth in this Agreement which have or are reasonably likely to have a material adverse effect upon the Partnership,the Project,or the Partnership Property including any failure to obtain or retain a property tax exemption applicable to the Project. If a Nonprofit General Partner Default set forth in subsection 9.4(a)occurs and any such Nonprofit General Partner Default causes an emergency situation, after written notice thereof to the Nonprofit General Partner, the Administrative General Partner may, without waiving or releasing the defaulting Nonprofit General Partner from any obligation hereunder, perform.any such covenant or obligation required to be performed by the defaulting Nonprofit General Partner, but the Administrative General Partner shall not be obligated to do so. All necessary costs incurred by the Administrative General Partner in such performance shall be paid to the Administrative General Partner on demand(and the defaulting Nonprofit General Partner covenants to make such payment). 9.5 Compensation of General Partners; Management Expenses. (a) In consideration for performing its duties on behalf of the Partnership, the Partnership shall pay the Nonprofit General Partner the amount of$1,000 per month(increasing annually at the rate of 2%). Such amount shall be payable monthly in arrears not later than the fifth day of each of the succeeding month(with the first payment for the period running from the Effective Date through April 30,2016,to be paid on or before May 5,2016)to the extent of cash available after payment of items senior in priority as set forth in the definition of the term"Net Cash from Operations." To the extent any portion 5 Hawthorne Villa Apartaments Partnership Agreement J:1PersonaNLentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx of such payment cannot be made due to lack of cash available for such purpose as determined in accordance with this Section 9.5(a),the unpaid portion shall be paid in such subsequent year to the extent of cash available for such purpose and, in all events,Net Cash from Capital Events as provided in Section 13.2.2 and,if necessary, upon a Dissolution Event as provided in Section 16.3. (b) The Administrative General Partner shall be reimbursed its reasonable out of pocket Management Expenses associated with the performance of its duties on behalf of the Partnership, including fees advanced on behalf of the Partnership, accounting expenses, and reasonable staff time. In addition, the Administrative General Partner may receive a fee a Partnership Administration Fee as the Partnership and the Administrative General Partner may agree for the performance of duties relating to administration of Partnership accounting, tax filing,and other Partnership management duties. 9.6 Limitation on Liability of General Partners. The General Partners shall not be liable, responsible, or accountable in damages or otherwise to the Partnership for any acts performed in good faith and within the scope of authority of the General Partner pursuant to this Agreement. Absent the Consent of the Nonprofit General Partner, no obligation of the Partnership shall be guaranteed by or secured by any asset of the Nonprofit General Partner(excluding its Interest in the Partnership). 9.7 Contracts with Affiliates. The Administrative General Partner may,for,in the name and on behalf of, the Partnership, enter into agreements or contracts for performance of services for the Partnership with an Affiliate,and the Administrative General Partner may obligate the Partnership to pay compensation for and on account of any such services; provided, however, such compensation and services shall be at costs to the Partnership not in excess of those that would be incurred in making arms- length purchases of comparable services on the open market. 9.8 Expressly Authorized Agreements. By execution of this Agreement, the Partners authorize the Administrative General Partner to enter into such agreements as the Administrative General Partner shall deem necessary or appropriate in connection with the acquisition, transfer and financing of the Project Property. SECTION 10 ACCOUNTING; BANK ACCOUNTS 10.1 Accounting; Audit,Books and Records. The books and records of the Partnership shall be maintained by the Administrative General Partner. The Administrative General Partner shall retain or cause to be retained such accountants as it shall determine to be reasonably prudent to ensure that any required tax returns, books of account, and audits are prepared, filed, and/or maintained in accordance with applicable law and customary accounting practices. Records related to the operations of the Partnership and the Partnership Property shall be accessible for inspection by any Partner or its representatives at any time during normal business hours upon one (1) business day's advance notice to the Administrative General Partner. 10.2 Bank Accounts and Cash Management. Administrative General Partner shall establish and maintain one or more bank accounts in the name of the Partnership at state or federally chartered banking institution (a "Bank Account"), and shall collect and deposit funds from the operations of the 6 Hawthorne Villa Apartaments Partnership Agreement J:\PersonahRentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx Partnership into any such Bank Account, and disburse funds from such Bank Account including: (i) payment of expenses for the operations of the Partnership and (ii) disbursement of funds as required for Administrative General Partner to perform its duties under this Agreement, including the acquisition and management of the Partnership Property and reimbursement of all reimbursable amounts hereunder. 10.3 Signature Authority for Bank Accounts. Administrative General Partner shall have authority, on behalf of and for the account of the Partnership, to execute checks, drafts, wire authorizations,and other payments or authorizations for payment by a single signature without a signature of any other Partner. 10.4 No Commingling. Administrative General Partner shall not commingle any funds in the Bank Accounts of the Partnership with the funds or assets of Administrative General Partner. SECTION 11 CAPITAL CONTRIBUTIONS AND CAPITAL ACCOUNTS 11.1 Initial Contributions. The Partners shall make their Initial Contributions set forth in Schedule 2. 11.2 No Additional Capital Contributions Required. Except with the Consent of all Partners,no Additional Contributions from any Partner shall be required or permitted. 11.3 Maintenance of Capital Accounts. The Partnership shall establish and maintain Capital Accounts, with respect to each Partner in accordance with Treas. Reg. § 1.704-(1)(b). SECTION 12 PROFIT AND LOSS 12.1 Allocations of Profits and Losses. Except as otherwise provided below, all Profits and Losses,and each item of income,gain,loss,deduction and/or credit associated therewith,shall be allocated among the Partners in the following order of priority: 12.1.1 First, Profit shall be allocated among the Partners in an amount equal to the sum of the negative Capital Account balances and if there is more than one Partner with a negative Capital Account balance, then among the Partners having negative Capital Account on a pro rata basis in proportion to their respective negative Capital Account balances. 12.1. 2 Second,Profits shall be allocated among the Partners in an amount equal to their Paid-In Capital. 12.1.3 Third, Profits shall be allocated among the Partners in proportion to their percentage Interests. 12.1.4 Fourth, Losses,and each item of income, gain,loss,deduction and/or credit associated therewith, shall be allocated among the Partners in proportion to their percentage Interests. 7 Hawthorne Villa Apartaments'Partnership Agreement J:\Personal\Rentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx 12.2 Limitation on Loss Allocation. Losses allocated pursuant to subsection 12.1 shall not exceed the maximum Losses that can be so allocated without causing any Partner to have an Adjusted Deficit at the end of any Fiscal Year. If some, but not all, of the Partners have Adjusted Deficits as a consequence of allocation of Losses, the limitations set forth in this subsection 12.2 shall be applied on a Partner-by-Partner basis so as to allocate the maximum permissible Losses to each Partner under Regs. § 1.704-1(b)(2)(ii)(d). 12.3 Special Allocations. 12.3.1 Except as provided in Treasury Regulation Section 1.704-2(f), if there is a net decrease in Partnership Minimum Gain during any Partnership fiscal year, each Partner shall be specially allocated items of Partnership income and gain for such year(and, if necessary, subsequent years) in an amount equal to the portion of such Partner's share of the net decrease in Partnership Minimum Gain at the end of the immediately preceding fiscal year, determined in accordance with Treasury Regulation Section 1.704-2(g)(2). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Treasury Regulation Sections 1.704-2(f)(6)and 1.704-2(j)(2).This subsection 12.3.1 (a) is intended to comply with the minimum gain chargeback requirement in Section 1.704-2(f)of the Treasury Regulations and shall be interpreted consistently therewith. 12.3.2 In the event a Partner unexpectedly receives an adjustment, allocation or distribution described in Treasury Regulation Section 1.704-1 (b) (2) (ii) (d) (4) , (5)or(6) in any fiscal year, and if such Partner has an Adjusted Capital Account Deficit as of the last day of such fiscal year, then, such Partner shall be specially allocated items of Partnership income and gain in an amount and manner sufficient to eliminate,to the extent required by Treasury Regulations under Section 704(b)of the Code,the Adjusted Capital Account Deficit of such Partner as quickly as possible. This subsection 12.3.2 is intended to constitute a "qualified income offset" under Treasury Regulation Section 1.704- 1(b)(2)(ii)(d)and shall be interpreted consistently therewith. SECTION 13 DISTRIBUTIONS 13.1 General.No Partner shall have the right or power to demand or receive a Distribution in a form other than cash and shall not be required or compelled to accept a Distribution of any asset in-kind unless such Partner so agrees, and in any event no in-kind asset shall be distributed to a Partner to the extent that the interest distributed would exceed the Partner's pro rata share of operating or liquidating distributions. Notwithstanding anything contained in this Agreement to the contrary,no Distribution shall be made to a Partner in violation of the Act. 13.2 Net Cash from Operations and Net Cash from Capital Events. The Administrative General Partner shall determine if Net Cash from Operations and Net Cash from Capital Events is available for distribution. The Administrative General Partner shall cause the Partnership to distribute the amount so determined. Upon a distribution from Net Cash from Operations and Net Cash from Capital Events to the Partners("Distribution") it shall be made as follows: 8 Hawthorne Villa Apartaments Partnership Agreement J:\Personahltentals\Hawthorne Villa\Hawthome Village Partnership Agreement(v2).doex 13.2.1 First,to the Partners in accordance with their percentage Interests until each Partner has received a full return of its Paid-In Capital. 13.2.2 Then to the payment of any accrued but unpaid amounts owed to the Nonprofit General Partner pursuant to Section 9.5(0. 13.2.3 Then, to the Partners pro rata in accordance with their percentage Interest in the Partnership. 13.4 Liquidating Distributions. If the Partnership is dissolved and its business and affairs are wound up, Distributions shall be made pursuant to Section 16 SECTION 14 ADDITIONAL PARTNERS 14.1 Admission. Persons may be added as Additional Partners upon the terms and conditions as to which the Partners have granted Majority Approval. Notwithstanding the foregoing, a Person shall not become an Additional Partner unless and until such Person: (a) becomes a party to this Agreement as a Partner by signing a counterpart hereof and executes such documents and instruments as the Administrative General Partner may reasonably request as-may be necessary or appropriate to confirm such Person as a Partner of the Partnership and such Person's agreement to be bound by the terms and conditions hereof; and (b) if the Person is not an individual, provides the Partnership with evidence satisfactory to counsel for the General Partners of the authority of the Person to become a Partner and to be bound by the terms and conditions of this Agreement. 14.2 Accounting. No Additional Partner shall be entitled to any retroactive allocation of losses, income or expense deductions incurred by the Partnership. SECTION 15 INDEMNIFICATION 15.1 Indemnity of the Partners. The Partnership shall, to the fullest extent permitted by Applicable Law,indemnify, defend and hold the General Partners harmless from and against any Claims suffered or sustained by it by reason of any acts, omissions or alleged acts or omissions by a General Partner on behalf of the Partnership within the scope of authority conferred on it by this Agreement or arising from the fact that such General Partner is a General Partner of the Partnership, including any judgment, award, settlement, reasonable attorney's fees and other costs and expenses incurred in connection with the defense of any actual or threatened action,proceeding or claim;provided that the acts or omissions or alleged acts or omissions upon which such actual or threatened action,proceeding or claim is based were in good faith in accordance with its business judgment and did not constitute a matter as to 9 Hawthorne Villa Apartaments Partnership Agreement J:1Personal\Rentats\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx which such General Partner is obligated to indemnify the Partnership under this subsection 15.1. "Claim" means any obligation,liability,claim(including any claim for damage to property or injury to or death of any persons), lien or encumbrance, loss, damage, cost or expense (including any judgment, award, settlement,reasonable attorneys'fees and other costs and expenses incurred in connection with the defense of any actual or threatened action, proceeding or claim, including appellate proceedings, and any collection costs or enforcement costs). 15.2 The General Partners shall defend, indemnify, and save harmless (i) each other from any loss, liability, damage, cost, or expense (including reasonable attorneys' fees) incurred by reason of any demands, claims, suits, actions, or proceedings arising out of a General Partner's (or an Affiliate's) (A) gross negligence, fraud, willful misconduct, (B) knowing or intentional violation of law, or (C) actions performed outside the scope of the authority of a General Partner pursuant to this Agreement. The indemnification provided under this subsection 15.2 shall include, but not be limited to, the costs and expenses (including reasonable attorneys' fees) of the removal of any liens affecting any property of the indemnitee as a result of such legal action. 15.3 The Administrative General Partner, jointly and severally, shall defend, indemnify, and save harmless the Nonprofit General Partner from any loss,liability, damage, cost,or expense (including reasonable attorneys' fees) incurred by reason of any demands, claims, suits, actions, or proceedings arising out of a default under any debt or other obligation incurred by the Partnership except to the extent that such default was the direct and proximate result of the Nonprofit General Partner's (A) gross negligence, fraud, willful misconduct, (B) knowing or intentional violation of law, or (C) actions performed outside the scope of the authority of the Non General Partner pursuant to this Agreement. SECTION 16 DISSOLUTION AND WINDING UP 16.1 Covenant Not to Withdraw or Cause Dissolution. Except as otherwise permitted by this Agreement, each Partner hereby covenants not to withdraw from the Partnership and agrees not to take any voluntary action that would cause the Partnership to dissolve. Notwithstanding any provision of the Act, the Partnership shall not dissolve prior to the occurrence of a Dissolution Event or the admission of a New Partner or a Substitute Partner. 16.2 Dissolution Events. The Partnership shall dissolve and commence winding up and liquidating upon the first to occur of any of the following dissolution events ("Dissolution Events"): (a) The Majority Approval of the Partners to dissolve,wind up, and liquidate the Partnership; or (b) The sale or transfer of the Project or all (or substantially all) of the Partnership Property; or (c) A dissolution is required by law (and the law does not permit any agreement to the contrary). Notwithstanding anything in the Act to the contrary, the foregoing events are the exclusive events that 10 Hawthorne Villa Apartaments Partnership Agreement J:\Personal\Rentals\Hawthorne Villa\Hawthome Village Partnership Agreement(v2).docx may cause the Partnership to dissolve. Upon the death, Incapacity or Bankruptcy of any Partner, the Partnership shall not be dissolved or required tq be wound up. 16.3 Winding Up. Upon the occurrence of a Dissolution Event,the Partnership shall continue solely for the purposes of winding up its affairs in an orderly manner,liquidating its assets and satisfying the claims of its creditors, and neither of the General Partners shall take any action that is inconsistent with,or not necessary to or appropriate for, the winding up of the Partnership's business and affairs. The Administrative General Partner shall (a)be responsible for overseeing the winding up and dissolution of the Partnership,(b)take full account of the Partnership's liabilities and Partnership Property,(c)cause the Partnership Property to be liquidated as promptly as is consistent with obtaining the fair value thereof;(d) cause the proceeds therefrom, to the extent sufficient therefore, to be applied and distributed in the order below,and(e)to file a certificate of cancellation,as provided in the Act,upon completion of all obligations under this Agreement and the Act. (i) first,to the payment and discharge of all of the Partnership's debts and liabilities to creditors, other than any General Partner; (ii) second,to the payment and discharge of all of the Partnership's debts and liabilities to the General Partners incurred in accordance with this Agreement; and (iii) the balance,if any,to the Partners in accordance with the distribution provisions in subsection 13.2. 16.4 Compliance With Regulations; Deficit Capital Accounts. If the Partnership is "liquidated" within the meaning of Regs. § 1.704-1(b)(2)(ii)(g), distributions shall be made pursuant to this Article 16 to the Partners who have positive Capital Accounts in compliance with Regs. § 1.704- 1(b)(2)(ii)(b)(2). If any Partner has a deficit Capital Account balance (after giving effect to all Contributions, distributions and allocations for all Fiscal Years, including the Fiscal Year during which such liquidation occurs), such Partner shall have no obligation to make any contribution with respect to such deficit, and such deficit shall not be considered a debt owed to the Partnership or to any other Person for any purpose whatsoever. SECTION 17 TAXES 17.1 Elections.The Tax Matters Partner may make any tax elections for the Partnership allowed under the Code or the tax laws of any state or other jurisdiction having taxing jurisdiction over the Partnership,including,but without limitation,elections: (a) to adjust the basis of Partnership Property pursuant to §§ 754, 734(b) and 743(b) of the Code, or comparable provisions of state or local law, in connection with transfers of Interest in the Partnership and Partnership distributions; and (b) to extend the statute of limitations for assessment of tax deficiencies against Partners with respect to adjustments to the Partnership's federal, state or local tax returns. 11 Hawthorne Villa Apartaments Partnership Agreement J:\Personal\Rentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx 17.3 Tax Matters Partner. The Administrative General Partner shall act as the Tax Matters Partner of the Partnership pursuant to § 6231(a)(7)of the Code. SECTION 18 RIGHT TO PURCHASE PARTNERSHIP INTERESTS 18.1 Right to Purchase Nonprofit General Partnership Interest. Notwithstanding any other term or condition of this Agreement, at any time during the term of this Partnership Agreement, the Administrative General Partner shall have the right to purchase the Interest of the Nonprofit General Partner upon thirty days written notice. The Administrative General Partner may exercise such right directly, or through a related entity, or may assign such right to a third party who may exercise such right in lieu of the Administrative General Partner. 18.2 Purchase Price for Nonprofit General Partnership Interest. The purchase price for the Nonprofit General Partner's interest shall be equal to the then fair market value of such interest which for such purposes shall mean the then fair market value of the Property less all liens and encumbrances multiplied by 0.05%. Upon the payment of the purchase price,the Nonprofit General Partner shall convey its partnership interest to the Administrative General Partner or its nominee by an assignment of partnership interest. SECTION 19 GENERAL CONTRACT PROVISIONS 19.1 Governing Law. This Agreement shall be governed by and construed in accordance with the substantive laws of the State of Oregon and not in accordance with any conflict-of-law provisions that would apply the law of a different jurisdiction. 19.2 Amendments. Any amendment to this Agreement shall be in writing and be effective only upon execution by all Partners. 19.3 Savings Clause. If any provision of this Agreement shall be held to be invalid and unenforceable, the remainder of this Agreement or the application of such provision to Persons or circumstances other than those as to which it is held invalid shall not be affected hereby. 19.4 Attorney Fees and Costs. If action becomes necessary in connection with this Agreement or any rights.arising therefrom or thereunder, or to recover damages for breach of any terms of this Agreement, or to obtain injunctive or other equitable relief, the prevailing party in such action shall be entitled to recover reasonable attorney fees and costs incurred in such action as determined by the arbitrator, arbitration panel or the trial court. In the event of any appeal from the action, the prevailing party shall be entitled to recover its reasonable attorney fees and costs incurred in such appeal,review,or ' petition for review, as determined by the appropriate appellate court. The term "costs" shall include, in addition to statutory costs and disbursements, all costs associated with the initial investigation of, and determination whether to commence, an action, and all costs associated with discovery depositions, 12 Hawthorne Villa Apartaments Partnership Agreement J:\Personal\Rentals Hawthorne Villa\Hawthorne Village Partnership Agreement(v2),docx witness fees (expert and otherwise), and out-of-pocket costs incurred by the prevailing party in the prosecution or defense of the action. For the purpose of this subsection,the term"action"shall be deemed to include any proceeding commenced in any court of general or limited jurisdiction, including any proceeding commenced in the bankruptcy courts of the United States,or before any arbitrator or arbitration panel. 19.5 Construction. The General Partners, and any tribunal rendering any decision in connection with this Agreement shall construe this Agreement as follows: (a) The section headings are used for ease of reference only. (b) This Agreement shall not be construed against any party as the party who drafted the Agreement. The parties agree that there shall be a conclusive presumption that each party to an equal degree drafted the Agreement. (c) All references to Persons in the singular or in the plural, in the masculine or in the feminine, or in the neuter, shall, where the context so suggests, be construed to include the plural or singular, the masculine or feminine,or the neuter,so as to give the appropriate meaning to such Person(s). 19.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed an original and all of which counterparts, taken together, shall constitute but one and the same agreement. Duplicates of the same signature page or pages with the original signatures on different pages may be attached to the original Agreement without affecting the validity thereof or the liability of the Partners or General Partner. 19.7 Heirs, Successors and Assigns. Each and all of the covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Agreement, their respective heirs, legal representatives, successors and assigns. 19.8 Notices. (a) All notices required or permitted to be given under this Agreement shall be in writing. Notices may be served only by one of the following means: (i)by certified or registered mail,postage paid with return receipt requested; (ii)by private courier,prepaid; (iii)by email or other telecommunication device capable of transmitting or creating a written record;or(iv)personally. Mailed notices shall be deemed delivered five(5) days after mailing,properly addressed. Couriered notices shall be deemed delivered when delivered as addressed, or if the addressee refuses delivery, when delivery is refused. Email notices shall be deemed delivered when receipt is either confirmed by confirming transmission equipment or acknowledged by the addressee or its office. Personal delivery shall be effective when accomplished. Unless a party changes its address by giving notice to the other party as provided herein,notices shall be delivered to the parties at the following addresses: 13 Hawthorne Villa Apartaments Partnership Agreement J:1Personahltentals\Hawthorne Villa\Hawthorne Village Partnership Agreement(v2).docx If to the Administrative General Partner: Hawthorne Villa LLC 13489 NW Trevino Street Portland, Oregon 97229 Attention: Rajiv Jain Email: rsj100@gmail.com If to the Nonprofit General Partner: Resident Resources 4800 SW Meadows Road,#300 Attention: William Maxwell Email: William.Maxwell@marcusmillichap.com (b) Any Partner may change its notice address by providing Notice hereof to all other Partners. 19.9 Rights and Remedies Cumulative. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law,statute, ordinance or otherwise. 19.10 Waivers. The failure of any party to seek redress for violation of, or to insist upon the strict performance of,any covenant or condition of this Agreement shall not prevent a subsequent act that would have originally constituted a violation from having the effect of an original violation. [Remainder of Page Intentionally Blank] [Signature Page Follows] 1 Hawthorne Villa Apartaments Partnership Agreement J:\PersonallRentals\Hawthore Villa\Hawthome Village Partnership Agreement(v2).docx [SIGNATURE PAGE TO HAWTHORNE VILLA APARTMENTS PARTNERSHIP AGREEMENT] IN WITNESS WHEREOF,the parties have executed this Agreement with the intent that it be effective as of the Effective Date. ADMINISTRATIVE GENERAL PARTNER: HAWTHORNE VILLA LLC, an Oregon limited liability company By: Rajiv Jain, Sole Member NONPROFIT GENERAL PARTNER; RESIDENT RESOURCES, an Oregon nonprofit corporation By: /4-2.- Ana Trevino,President SCHEDULE I DEFINITIONS "Act" shall mean the Oregon Revised Partnership Act, as the same may be amended from time to time. "Acquisition Documents" shall mean any and all document that the Administrative General Partner deems necessary or advisable in connection with the acquisition and financing of the Project, including initial bridge financing and subsequent permanent financing. "Additional Contribution" shall mean any Contribution made pursuant to subsection 11.2. "Additional Partner(s)" shall mean a New Partner or a Substitute Partner. "Adjusted Deficit(s)" shall mean,with respect to any Partner,the deficit balance, if any, in such Partner's Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: (a) The Capital Account shall be increased by any amounts that such Partner is obligated to restore pursuant to any provision of this Agreement or is deemed to be obligated to restore pursuant to the next-to-the-last sentence of Regulations Sections 1.704-2(g)(1) and 1.70402(i)(5); and (b) The Capital Account shall be decreased by the items described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5)and 1.704-1(b)(2)(d)(6)of the Regulations. The foregoing definition of Adjusted Deficit is intended to comply with the provisions of Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently therewith. "Affiliate"means,with respect to any Person,any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with that Person. The term "control" (including, with correlative meaning, the terms "controlled by" and "under common control with"), as used with respect to any Person, means the possession, directly or indirectly,of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or partnership interests, by contract or otherwise. If a party is a natural person, then "Affiliate" shall include that Person's spouse,children and grandchildren(and in the case of children and grandchildren,"Affiliate"shall include their respective spouses as well). "Agreement" shall mean this Partnership Agreement as originally executed and as amended or restated from time-to-time in accordance with the terms hereof. "Applicable Law"shall mean, as to any Person, all federal, state and local laws(statutory or common), treaties, rules, regulations, determinations, orders,judgments, ordinances, decrees, injunctions, writs, interpretations or Governmental Approvals, in each case applicable to or binding on such Person or any of its property or to which such Person or any of its property is subject. "Bank Account" shall have the meaning set forth in subsection 10.2. "Bankruptcy" shall mean an order for relief under Title 11 of the United States Code or a comparable order under a successor statute of general application or a comparable order under federal, state or foreign law governing insolvency. "Capital Account(s)" shall mean the account maintained with respect to a Partner determined in accordance with subsection 11.3. "Capital Event" shall mean the sale or refinancing of any Partnership Property. "Claim" shall have the meaning set forth in subsection 15.1. "Code" shall mean the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent superseding federal revenue laws. "Consent" shall mean the written consent or approval of a Partner which consent or approval shall be obtained prior to the taking of the action for which Consent is required under this Agreement. Unless otherwise stated in the Agreement, the Consent of any partner shall not be unreasonably withheld. "Contribution(s)" shall mean contributions of capital in the form of cash by a Partner and, more particularly, a Partner's Initial Contribution and Additional Contribution(s). "Depreciation" shall mean for each Fiscal Year an amount equal to the depreciation, amortization or other cost-recovery deduction allowable with respect to an asset for such Fiscal Year, except that if the Gross Asset Value of any asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost-recovery deduction for such Fiscal Year bears to such beginning adjusted tax basis;provided,however,that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Fiscal Year is zero, depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner. "Dissolution Event(s)" shall mean any of the events identified in subsection 16.2. "Distribution" shall have the meaning set forth in subsection 13.2. "Economic Rights" shall mean a Partner's rights to distributions of Partnership assets pursuant to the Act and this Agreement. "Effective Date" shall have the meaning set forth in the preamble to this Agreement. "Fiscal Year(s)" shall mean the Partnership's fiscal year,which shall end December 31. "General Partner" shall have the meaning set forth in the Preamble of this Agreement. "General Partner Default"shall have the meaning set forth in subsection 9.4. "General Partner Event of Default"shall have the meaning set forth in subsection 9.4. "Governmental Approval" shall mean all consents, rights, exemptions, concessions, permits, easements, rights of way, licenses, authorizations, certificates, orders, franchises, determinations or other approvals of or notices to or filings with any Governmental Authority. "Governmental Authority" shall mean any governmental department, commission, board,regulatory authority,bureau,legislative body,agency,or any instrumentality of any federal, state, local or municipal government or domestic court. "Gross Asset Value" shall mean an asset's adjusted basis for federal income tax purposes, except as follows: (1) The initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset,as determined by the contributing Partner; (2) The Gross Asset Values of all assets shall be adjusted to equal their respective gross fair market values, as determined by the Partnership,as of the following times: (a)the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis initial Contribution; (b)the distribution by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership; and (c) the liquidation of the Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g);provided,however,that adjustments pursuant to clauses(a)and (b) above shall be made only if the Partnership reasonably determines that such adjustments are necessary or appropriate to reflect the relative Economic Rights of the Partners. (3)The Gross Asset Value of any asset distributed to any Partner shall be adjusted to equal the gross fair market value of such asset on the date of distribution as determined by the distributee and the Partnership; (4) The Gross Asset Values of assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulation Section 1.704-1(b)(2)(iv)(m) and subparagraph (6) under the definition of Profits and Losses set forth below; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph(4) to the extent the Partnership determines that an adjustment pursuant to subparagraph (2) hereof is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this subparagraph (4); and (5) The foregoing adjustments shall be made in lieu of any adjustments or allocations provided for in the Act. If the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraph (1), (2) or (4) above, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses. "Initial Contribution(s)" shall mean the initial Contribution made by a Partner pursuant to subsection 11.1,and listed on Schedule 2. "Initial Property Manager"shall mean Hawthorne Villa LLC,an Oregon limited liability company. "Interest" shall mean the percentage ownership rights in the Partnership set forth in subsection 6.2, and listed on Schedule 2. "Losses,"see the definition for"Profits and Losses." "Major Decisions"shall have the meaning set forth in subsection 8.2.1. "Majority Approval"shall mean,with respect to any proposed action,the written consent or approval of Partners holding at least fifty percent(50%)of the Interests in the Partnership which consent or approval shall be obtained prior to the taking of the action. "Management Expenses" shall mean all amounts payable by the Partnership reimbursement as for expenses incurred on behalf of, or as the direct result of performing duties for,the Partnership, as provided in subsection 9.5. "Net Cash from Operations" shall mean all cash and cash equivalents of the Partnership that result from the ordinary course of business of the Partnership after payment, in the following order: 1. Operating Expenses. 2. Amounts owed to the Nonprofit General Partner pursuant to Section 9.5(a). "New Partner"shall mean a Person that is not an initial Partner and who becomes a Partner in the Partnership by the issuance of Interests to such Person by the Partnership after the date of this Agreement other than by a transfer of Interests hereunder. "Operating Expenses" for a given fiscal period means all expenses reasonably incurred by the Partnership in acquiring,holding,or operating the Project and the Partnership Property during such period, including without limitation:utilities, principal and interest payments on any loan and other sums paid to lenders,property taxes and assessments,the fees of the Initial Property Manager or Substitute Property Manager,required deposits to reserves,repairs, capital improvement and replacement items not paid out of reserves or insurance proceeds,and any costs and expenses relating to the operating and management(but not the formation)of the Partnership, including without limitation,accounting fees,audit fees,and reimbursed partnership expenses incurred by the Partners,including without limitation expenses and fees incurred by the Administrative General Partner pursuant to$ection 9.5(bl. "Paid-In Capital" shall mean the Contributions paid by Partners to the Partnership in exchange for the issuance of their Interests and any Additional Contributions that they may thereafter make to the Partnership. "Partner(s)" shall mean each of General Partner and the Limited Partner and each of the Persons who may hereafter become New or Substitute Partners. "Partnership" shall mean the entity named in Section 2. "Partnership Minimum Gain" shall mean the same as "partnership minimum gain" as set forth in Section 1.704-2(b)(2)and 1.704-2(d)of the Regulations. "Partnership Property" shall mean real property located in Washington County, City of Tigard, commonly known as Hawthorne Villa Apartments and located at 7705 SW Pfaffle Street, Tigard, OR 97223 and legally described in the deed by which the Partnership shall acquire such real property, and all appurtenances(excepting certain items not acquired)thereto including all easements, if any,benefiting the described property, any right, title or interest in adjacent rights- of-way, and any governmental approvals and development rights pertaining to the described property and all improvements,including fixtures,located on the real property owned by the Partnership. "Person(s)" shall mean any natural person,partnership(whether general or limited), limited liability company,corporation, government(including a country, state,county or any other governmental subdivision,agency or instrumentality), custodian,nominee or any other individual or entity(or series thereof)in its own or any representative capacity,and the heirs, executors,administrators,legal representatives, successors and assigns of such"Person" where the context so permits. "Profit(s)" and "Loss(es)" shall mean, for each Fiscal Year, an amount equal to the Partnership's taxable income or loss for such Fiscal Year, determined in accordance with Code Section 703(a)(for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: (1) Any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this paragraph shall be added to such taxable income or loss; (2) Any expenditures of the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704- 1(b)(2)(iv)(i),and not otherwise taken into account in computing Profits or Losses pursuant to this paragraph shall be subtracted from such taxable income or loss; (3) If the Gross Asset Value of any Partnership asset is adjusted pursuant to subparagraphs (2) or)under the paragraph defining Gross Asset Value, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses; (4) Gain or loss resulting from any disposition of Partnership assets with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the Partnership assets disposed of,notwithstanding that the adjusted tax basis of such assets differ from its Gross Asset Value; (5) In lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year,computed in accordance with the definition thereof;and (6) To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4)to be taken into account in determining Capital Accounts as a result of a distribution other than in complete liquidation of a Partner's Interest,the amount of such adjustment shall be treated as an item of gain(if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of the asset and shall be taken into account for purposes of computing Profits or Losses. "Project" shall mean a 118 unit low-income housing development located on and consisting of the Partnership Property and known as Hawthorne Villa Apartments. "Project Lender" shall mean one or more entities as selected by the Administrative General Partner to provide one or more loans for the acquisition and/or permanent financing relating to the Project and/or the Partnership Property. "Regulations" or "Regs." shall mean proposed, temporary and final regulations promulgated under the Code in effect as of the date of execution of this Agreement and the corresponding sections of any regulations subsequently issued that amend or supersede such regulations. "Resident Services Plan" shall mean the plan of the Partnership to provide resident services to tenants, including emergency rental assistance, financial literacy education, child care and health referrals, access to computers,transportation, and job assistance. "Substitute Partner" shall mean a Person that becomes a Partner by acquiring Interests from an existing Partner pursuant to a permitted transfer hereunder. "Substitute Property Manager"shall mean a property management company authorized to manage low-income housing tax credit properties within the state of Oregon as shall be selected by the Administrative General Partner subject to the Consent of the Nonprofit General Partner. "Tax Matters Partner" shall mean the Person appointed pursuant to subsection 17.3. AIS-3414 9. Business Meeting Meeting Date: 03/27/2018 Length (in minutes): 15 Minutes Agenda Title: CONSIDER AUTHORIZING THE CITY MANAGER TO SIGN AN IGA WITH TVWD AND HILLSBORO FOR TEMPORARY WATER SUPPLY Prepared For: John Goodrich Submitted By: John Goodrich, Public Works Item Type: Meeting Type: Council Business Meeting- Main Public Hearing Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the City of Tigard enter into an intergovernmental agreement with the Tualatin Valley Water District (TVWD) and the City of Hillsboro for temporary water supply,including upsized piping for a potential future emergency water supply? STAFF RECOMMENDATION / ACTION REQUEST Approve the intergovernmental agreement with TVWD and the City of Hillsboro. KEY FACTS AND INFORMATION SUMMARY The purpose of this agenda item is for council to consider an agreement with TVWD and the City of Hillsboro for temporary water supply. Within the scope of regional water interconnections for emergency resilience abilities,Tigard has the ability to upsize the original design of this temporary water supply for meet future requirements. This is also incorporated into the agreement as a benefit in meeting resiliency goals. Background The City of Tigard received a request from the TVWD and City of Hillsboro for a proposed temporary connection with Tigard's water distribution system. TVWD and the City of Hillsboro are working together to construct: •The Willamette Water Supply System (WWSS) to provide municipal drinking water from the Willamette River to their respective water systems. •The Roy Rogers Road Waterline Project ("Project") to install a section of the WWSS transition pipeline from the Urban Growth Boundary to the intersection of Scholls Ferry Road.This is a section of the WWSS transmission pipeline from Wilsonville to TVWD and Hillsboro,which will be constructed,yet not placed into service until approximately 2026,when construction of the remainder of the WWSS components are completed. •A temporary potable water connection between the Project and Tigard's water system for the purposes of testing and maintaining the Project. The temporary potable water connection will no longer be needed by TVWD and Hillsboro once construction of the WWSS is complete and the WWSS begins water service to TVWD and Hillsboro. Tigard recognizes that this request for temporary water supply may provide an opportunity to construct additional improvements to make a permanent emergency connection to the WWSS with a flow capacity of five (5) million gallons per day (mgd),which will require a separate agreement between the Parties prior to use. Through the proposed agreement,Tigard would share allocated costs to upsize the water supply pipe connection from 6-inch diameter pipe to 12-inch diameter pipe. Project engineers estimate for Tigard's cost share is approximately$82,000. Agreement Key elements of the proposed agreement include: •Project Description: The Parties agree that TVWD and Hillsboro may design and construct a temporary six-inch connection between the Tigard water distribution system and the Project. •Cost: TVWD and Hillsboro will be solely responsible for all costs to design, construct, operate,maintain, repair,and replace one temporary connection for testing and maintenance of the Project. Tigard will be solely responsible for all costs to upsize the temporary connection for the purpose of a future 5 MGD permanent emergency connection. •Future Tigard Agreement:Tigard must negotiate and seek approval for a separate agreement regarding construction, connection,metering, and use of WWSS water for the permanent emergency connection. •Cost of Water and Payment: Tigard will sell water to TVWD and Hillsboro,and the cost of the water shall be charged for the actual water used. As part of the proposed agreement,Tigard will review utility and development plans to ensure utilities accommodate the Project in Tigard's right of way and allow for connection to Tigard's water system. The city attorney has reviewed the proposed agreement and exhibits, and suggested no changes. OTHER ALTERNATIVES Council could choose not to approve the agreement with the Tualatin Valley Water District and the City of Hillsboro. COUNCIL OR TCDA GOALS, POLICIES, MASTER PLANS May 2010 Water Master Plan;June 2014 Water Master Plan Addendum DATES OF PREVIOUS CONSIDERATION This is council's first consideration on this agreement. Fiscal Impact Cost: 88,000 Budgeted (yes or no): yes Where Budgeted (department/program): Water CIP Additional Fiscal Notes: Tigard cost share is estimated at 32% of construction costs associated with the water supply connection between the WWSS pipeline and Tigard water distribution system. The engineer's estimate for Tigard's share is $80,123 to upsize the required pipe from 6-inch diameter to 12-inch diameter. Staff is adding a 10%project contingency to bring the estimated total to $88,000 for allocated cost share. Attachments Resolution for Temporary Water Supply Proposed TVWD/Hillsboro Temporary Water IGA CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- • A RESOLUTION ADOPTING AN AGREEMENT FOR TEMPORARY WATER SUPPLY BETWEEN THE TUALATIN VALLEY WATER DISTRICT, THE CITY OF HILLSBORO AND THE CITY OF TIGARD. WHEREAS,ORS 190 authorizes units of local government to enter into intergovernmental agreements for the performance of any or all functions and activities that a Party to the Agreement has the authority to perform; and WHEREAS, Tualatin Valley Water District (TVWD) and Hillsboro have agreed to construct the Roy Rogers Road Waterline Project from the Urban Growth Boundary approximately 2,600 feet north of Southwest Beef Bend Road to Southwest Scholls Ferry Road (Project), which will be part of the Willamette Water Supply System (WWSS) providing municipal drinking water from the Willamette River to their respective water systems;and WHEREAS,the Project will be built as part of Washington County's Roy Rogers Road Project for roadway and waterline improvements,which will commence on Southwest Roy Rogers Road approximately 2,600-ft north of Southwest Beef Bend Road to the intersection of Southwest Scholls Ferry Road;and WHEREAS,the Project is a section of the WWSS transmission pipeline from Wilsonville to TVWD and Hillsboro,which will be constructed,yet not placed into service until approximately 2026,when construction of the remainder of the WWSS components are completed;and WHEREAS, the Project will need a temporary potable water connection between the Project and Tigard's water system for the purposes of testing and maintaining the Project;and WHEREAS, the temporary potable water connection will no longer be needed by TVWD and Hillsboro once construction of the WWSS is complete and the WWSS begins water service to TVWD and Hillsboro;and WHEREAS, Tigard may wish to construct additional improvements to make a permanent emergency connection to the WWSS with a flow capacity of five (5) million gallons per day (MGD),which will require a separate agreement between the Parties prior to use;and WHEREAS, Tigard will review utility and development plans to ensure utilities accommodate the Project in Tigard's right of way and allow for connection to Tigard's water system. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: City Council approves the agreement for temporary water supply between the Tualatin Valley Water District,the City of Hillsboro,and the City of Tigard,in substantially the form attached hereto as Exhibit"A." SECTION : This resolution is effective immediately upon passage. RESOLUTION NO. 18- Page 1 PASSED: This - day of 2018. Mayor-City of Tigard A 'EST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 2 I'1 INTERGOVERNMENTAL AGREEMENT BETWEEN TUALATIN VALLEY WATER DISTRICT, THE CITY OF HILLSBORO, AND THE CITY OF TIGARD FOR TEMPORARY WATER SUPPLY This Intergovernmental Agreement(Agreement) is entered into between the Tualatin Valley Water District, a domestic water supply district organized under ORS Chapter 264(TVWD),the City of Hillsboro, an Oregon municipal corporation (Hillsboro), and the City of Tigard, an Oregon municipal corporation (Tigard),each also referred to as"Party"or collectively as "Parties." RECITALS A. WHEREAS, ORS 190 authorizes units of local government to enter into intergovernmental agreements for the performance of any or all functions and activities that a Party to the Agreement has the authority to perform;and B. WHEREAS,TVWD and Hillsboro have agreed to construct the Roy Rogers Road Waterline Project from the Urban Growth Boundary approximately 2,600-ft north of Southwest Beef Bend Road to Southwest Scholls Ferry Road (Project),which will be part of the Willamette Water Supply System (WWSS) providing municipal drinking water from the Willamette River to their respective water systems; and C. WHEREAS,the Project will be built as part of Washington County's Roy Rogers Road Project(Road Project)for roadway and waterline improvements,which will commence on Southwest Roy Rogers Road approximately 2,600-ft north of Southwest Beef Bend Road to the intersection of Southwest Scholls Ferry Road;and D. WHEREAS,the Project is a section of the WWSS transmission pipeline from Wilsonville to TVWD and Hillsboro,which will be constructed,yet not placed into service until approximately 2026,when construction of the remainder of the WWSS components are completed; and E. WHEREAS,the Project will need a temporary potable water connection between the Project and Tigard's water system for the purposes of testing and maintaining the Project;and F. WHEREAS,the temporary potable water connection will no longer be needed by TVWD and Hillsboro once construction of the WWSS is complete and the WWSS begins water service to TVWD and Hillsboro; and G. WHEREAS,Tigard may wish to construct additional improvements to make a permanent emergency connection to the WWSS with a flow capacity of five (5) million gallons per day(MGD),which will require a separate agreement between the Parties prior to use; and H. WHEREAS,Tigard will review utility and development plans to ensure utilities accommodate the Project in Tigard's right of way and allow for connection to Tigard's water system;and Page 1 of 10 I. WHEREAS,TVWD,as the Managing Agency of the WWSS Project, is responsible for receiving payments from Tigard for upsizing and paying Tigard invoices for pipeline construction water use. AGREEMENT NOW,THEREFORE, in consideration of the terms, conditions, and covenants set forth below, and the Recitals which are incorporated into this Agreement as if fully set forth herein,the Parties agree as follows: ARTICLE 1 - Project Description 1.1. The Parties agree that TVWD and Hillsboro may design and construct a temporary six- inch connection between the Tigard water distribution system and the Project within the City of Tigard at such location as the Parties mutually agree, shown on Exhibit A.The point of connection shall be in a public right of way and the Parties agree that Tigard, TVWD, and Hillsboro shall have full and complete access at all times to operate and maintain the valves,vaults,and appurtenances.The TVWD and Hillsboro design will provide for a future permanent emergency connection with a capacity of 5 million gallons per day (MGD) near Friendly Lane so that Tigard can obtain future emergency water supply for its water system from the Project.The size of the emergency connection is anticipated to be 12-inch diameter to provide the desired 5 MGD flow capacity. 1.2. In accordance with the allocation of costs and Tigard's portion to be paid under Article 2.1.5 below,TVWD and Hillsboro will include in their design the following improvements as part of the Project: 1.2.1. An emergency connection at the Project which will connect to Tigard's 18-inch transmission line at a mutually agreeable location near Friendly Lane. 1.2.2. One temporary connection will be made between the Project and Tigard's system using 12-inch piping,fittings, isolation valves,a six-inch back flow device, and six-inch flow meter for the purposes of filling and testing the pipeline, as shown in Exhibit A. ARTICLE 2 - Cost 2.1. The cost allocation of this portion of the Project will be determined according to the percentage split as shown in Exhibit B and as described in 2.1.4 below,the total cost of which will be finalized once construction is complete.Generally,the cost of this portion of the Project will be determined as follows: 2.1.1. TVWD and Hillsboro will be solely responsible for all costs to design, construct, operate, maintain, repair,and replace one temporary connection for testing and maintenance of the Project until the entire WWSS is completed and water is produced and delivered from the WWSS. 2.1.2. Tigard will be solely responsible for all costs to upsize the temporary connection for the purpose of a future 5 MGD permanent emergency connection near Friendly Lane. Page 2 of 10 2.1.3. The design of the 5 MGD permanent emergency connection shall be compatible with and provide for interoperability so that TVWD and Hillsboro may use the temporary connection as described in this Agreement, including filling,testing, and maintaining the Project.The TVWD and Hillsboro design consultant has provided an engineer's estimate to construct the six-inch temporary connection to periodically draw testing and maintenance water from Tigard for use in sections of the WWSS,which is "Cost A."The design consultant has provided an engineer's estimate for the additional cost of upsizing the temporary six-inch connection to a full 12-inch connection compatible with the future 5 MGD permanent emergency connection,the cost of which includes the cost of the meter and control vaults,which is"Cost B." Future costs for designing and constructing the full 5 MGD permanent emergency connection will be the sole responsibility of Tigard and shall be included as part of a future Emergency Water Supply IGA. 2.1.4. The proportion of Cost A attributable to the temporary connection to Cost B (i.e., Cost A divided by [Cost A+Cost B] x 100=Cost A percentage) results in 68%of the cost of the connection to be covered by TVWD and Hillsboro.The remaining proportion (32%)will be covered by Tigard.The total cost to be paid by Tigard will be the percentage set forth in this paragraph and will be based on the final amount paid to the contractor for the work performed (including original bid amount, construction change orders, and associated construction administration costs).The cost split and anticipated cost to each party is shown in Exhibit B. 2.1.5. TVWD and Hillsboro will bid the work described in Article 1 to establish the construction cost of that work. If Tigard successfully negotiates an agreement for a future emergency connection,Tigard will be responsible for the full cost of additional design,management,and construction of the full build-out of the emergency connection. 2.1.6. Tigard will be billed its percentage allocation for any and all costs to upsize the temporary connection (32% of the total cost of the connection) as costs are billed by the designer and contractor to TVWD.The total cost to upsize the temporary connection for the work described in Article 1 includes design, construction costs, construction contract change orders, plus any associated administration costs with the work, as set forth in Article 2.1.4. Payment will be due and payable to TVWD within thirty(30) days of the invoice. 2.1.7. TVWD and Hillsboro will notify Tigard of any potential construction contract change orders that may affect Tigard's cost for the connection construction at the earliest possible time after TVWD and Hillsboro receive notice from Washington County.TVWD and Hillsboro will endeavor to avoid or minimize change order requests from Washington County that affect Tigard. If Tigard does not approve the change order that increases Tigard's cost,the Parties recognize that Washington County, in its sole discretion or with approval by TVWD and Hillsboro, may still approve the change order and, in such case, TVWD and Hillsboro will be responsible to pay the change order amount, provided, however,that TVWD and Hillsboro may seek contribution from Tigard Page 3 of 10 for Tigard's proportional share (32% of contract change orders and associated construction administration costs), and the Parties reserve all rights as to responsibility for payment and agree to resolve the matter through dispute resolution. ARTICLE 3 - System Connections and Operation Protocols 3.1. Following construction, each Party shall appoint a representative to coordinate the use, operation, maintenance, repair, and replacement of the connection and valves according to prudent utility practices. 3.2. The TVWD/Hillsboro temporary connection installed as part of the Project construction will include two installed 12-inch isolation valves, a six-inch flow meter,and a six-inch approved backflow prevention device that will connect to the Tigard system. Both isolation valves will remain closed to the Tigard system except for those periods when water from Tigard will be used to test and maintain the Project and WWSS. 3.3. The Parties will be responsible for and maintain control of separate valves,vaults,and appurtenances, including all costs associated therewith as defined here. Responsibility will be as shown in Exhibit A with the piping from the WWSS main pipeline to the meter vault, and the valve separating the two vaults being the joint responsibility of TVWD and Hillsboro.The remaining portion from that valve,through and including the pressure regulating/control valve and vault to the point of connection with Tigard's system will be the responsibility of Tigard. 3.4. All Parties agree to maintain their portion of the connection in good working order so that they are available to be put in service when a water draw is needed. 3.5. The TVWD and Hillsboro representative will develop a schedule for Project water requirements and provide it to the Tigard representative for review and approval so Tigard will have sufficient notice (minimum 48 hours)of when TVWD and Hillsboro will need to draw water from the Tigard system.The project schedule should be updated and provided to Tigard on a weekly basis during the project construction period. 3.6. The flow from the Tigard system shall be limited to no more than 700 gallons per minute without prior authorization from Tigard, and Tigard will maintain control and operate all valves which are part of the Tigard system.Tigard requires 48-hours' notification for the operation of valves. ARTICLE 4- Term 4.1. The term of this Agreement and use of water by TVWD and Hillsboro shall continue until construction of the WWSS is complete and begins potable water delivery service to TWVD and Hillsboro,which is anticipated to occur in 2026.This Agreement shall automatically terminate when both: (a)the WWSS is complete; and (b)the WWSS begins potable water delivery service to TVWD and Hillsboro. Upon termination under this section, and if Tigard does not wish to have the permanent emergency connection as described in this Agreement,then TVWD and Hillsboro will remove the temporary connection and cost splits for the removal of the connection will be as defined in 2.1.4. Page 4 of 10 ARTICLE 5 - Future Tigard Agreement 5.1. This Agreement confers no rights or privileges upon Tigard to the WWSS,to the Project, or to any water through or from the WWSS. If Tigard desires a permanent 5 MGD emergency connection to the WWSS,then Tigard must negotiate and seek approval for a separate agreement regarding construction, connection, metering, and use of WWSS water for the permanent emergency connection.TVWD and Hillsboro will not provide WWSS water to Tigard in the absence of such an agreement.The permanent emergency connection shall be the sole cost responsibility of Tigard, including any and all costs of making the conversion to a permanent connection, including, but not limited to,a seismic valve, electrical,SCADA,flow control devices,and a meter to measure usage. ARTICLE 6 - Construction Coordination 6.1. The design and construction of the items in this Agreement will be conducted as part of the Project and the Road Project.The Parties will coordinate with each other during the design and construction to provide for minimal inconvenience to each other.The Parties will each conduct review and approval of construction submittals at no charge to the other Parties.TVWD and Hillsboro will coordinate with Tigard on the inspection of the facilities associated with the connection. ARTICLE 7 - Fiscal and Operational Impacts and Use of Water 7.1. The Parties agree to work together to determine how best to provide the water to fulfill the need to test and maintain the sections of the Project. When temporary water is required ("water draw"),TVWD and Hillsboro will notify Tigard (48-hour notification)to coordinate the timing, method, and conditions for drawing water into the WWSS from Tigard.The water will be sold by Tigard to TVWD and Hillsboro as outlined in Article 8. The Parties agree that they will hold harmless and indemnify each other from adverse fiscal or operational impacts as a direct result of this Agreement. ARTICLE 8 - Cost of Water and Payment 8.1. Following the sale by Tigard after a water draw under this agreement,Tigard will read the meter and determine the quantity supplied. 8.1.1. Tigard will sell water to TVWD and Hillsboro, and the cost of the water shall be charged for the actual water used at the Tier One residential rate or a rate that is at or below the approved residential customer class rate adopted by Tigard. Recognizing the temporary and sporadic nature of the need,there will be no system delivery charge,system development charge, connection fee,or other fixed charge associated with this use. 8.1.2. The cost of water, as determined under Article 8.1.1,will be billed by Tigard to TVWD and Hillsboro and payable within thirty(30)days of invoice. ARTICLE 9 - Indemnity 9.1. Each Party agrees to indemnify and hold harmless the other Party(ies), its officers, employees, and agents from and against all claims, demands, and causes of actions and suits of any kind or nature for personal injury, death, or damage to property on account of or arising out of services performed or the omissions of services, or in any way Page 5 of 10 resulting from the negligent or wrongful acts or omissions of the indemnifying Party and its officers,employees, and agents.To the extent applicable,the above indemnification is subject to and shall not exceed the limits of liability of the Oregon Tort Claims Act (ORS 30.260 through 30.300). Notwithstanding the foregoing, each Party shall be solely responsible for any contract claims, delay damages, permit compliance, permit violations,or similar items to the extent arising from or caused by the action or inaction of the Party under this Agreement. ARTICLE 10 - General Provisions 10.1. Notices. Any notices regarding operation, maintenance, repair, replacement, breach, termination, or other issues shall be deemed sufficient if deposited in the United States Mail, First Class, postage prepaid,addressed to the Parties as follows: To TVWD: To Hillsboro: Tualatin Valley Water District City of Hillsboro Attn:Chief Executive Officer Attn:Water Director 1850 SW 170th Avenue 150 East Main Street Beaverton, OR 97003 Hillsboro,OR 97123 To Tigard: City of Tigard Attn: City Manager 13125 SW Hall Blvd. Tigard, OR 97223 10.2. Dispute Resolution.The Parties hereby agree that resolution of any and all disputes arising out of the terms of this Agreement or interpretation thereof shall follow a prescribed process beginning with negotiation and subsequently moving to mediation, provided the dispute remains unresolved. If the interests of TVWD and Hillsboro are aligned on a dispute with Tigard,TVWD and Hillsboro shall be deemed a single Party for purposes of dispute resolution. If a dispute arises between the Parties regarding this Agreement,the Parties shall follow the dispute resolution provisions below: 10.2.1. Written Notice.A written notice regarding the dispute (Dispute Notice) shall be sent to the other Parties. 10.2.2. Negotiations. Within thirty(30) days following receipt of the Dispute Notice,the Parties to the dispute ("Disputing Parties")shall each assign a representative to participate in good faith negotiations for a period not to exceed sixty(60) days after appointment of the representatives. 10.2.3. Mediation. If, after the sixty(60)day period of negotiation (or a period not to exceed ninety (90)days following the receipt date of the Dispute Notice),the dispute(s) cannot be resolved,the Disputing Parties agree to submit the matter to non-binding mediation.The Disputing Parties shall attempt to agree on a mediator in a period not to exceed one hundred twenty(120)days following the receipt date of the Dispute Notice and proceed accordingly. Page 6 of 10 10.2.4. Litigation. If the Parties cannot agree on a mediator within the allocated time, or if the mediator cannot resolve the dispute(s)within one hundred eighty(180) days following the receipt date of the Dispute Notice,either of the Disputing Parties may file suit in a court of competent jurisdiction. Each of the Disputing Parties shall bear its own attorneys'fees and expert witness fees at all stages of the dispute resolution process, including at trial or in any appeals. In addition, nothing shall prevent the Disputing Parties from waiving any of the dispute resolution steps by mutual consent. 10.3. Default.The failure of a Party to perform any duty imposed upon it by this Agreement shall constitute a default. 10.3.1. Notice of Default.The non-defaulting Party shall have the right to give the defaulting Party a written notice of default,which shall describe the default in reasonable detail and state the day by which the default must be cured,which date shall be at least ten (10) days after receipt of the notice of default. 10.3.2. Rights Upon Default. Recognizing time is of the essence, a defaulting Party shall have ten (10)days to cure a default,following written notice thereof, unless cure within such ten (10) day period is not reasonably possible; in that case,the period to cure the default shall be extended to thirty(30) days, or such other time that the non-defaulting Party is willing to agree to, provided that the defaulting Party has diligently begun to work, in good faith,to cure the default within the original prescribed ten (10) day period. In addition,the non- defaulting Party may pursue any other remedy available at law or in equity against the defaulting Party,subject to the dispute resolution procedures set forth in Article 10.2. 10.4. Termination.Any Party may terminate this Agreement under any of the following conditions: 10.4.1. For breach of a material term of this Agreement, after written notice under Section 10.3.1 and failure to cure under Section 10.3.2. 10.4.2. By mutual written agreement of all Parties to terminate for convenience. 10.5. Excused Performance. No party shall be deemed to be in default where delays or default is due to war, insurrection, strikes,walkouts, riots,floods, drought,earthquakes, fires, casualties,acts of God,governmental restrictions imposed or mandated by governmental entities other than the parties,acts of conflicting state or federal laws or regulations, new or supplementary environmental regulation, litigation or similar bases for excused performance that are not within the reasonable control of the Party to be excused. 10.6. Effective Date.This Agreement is effective on the last date signed by the Parties below and remains in effect until terminated as provided herein. 10.7. Integration.This Agreement, including all exhibits attached hereto,contains the entire and integrated agreement between the Parties and supersedes all prior written or oral discussions, representations, or agreements. In case of conflict among these documents, the provisions of this Agreement shall control. Page 7 of 10 10.8. Assignment/Additional Parties.TVWD and Hillsboro may create further Intergovernmental Agreement(s) between them as well as with other municipal water suppliers that may own or use the Project and the WWSS. Tigard agrees to assignment of the rights, obligations, and covenants of this Agreement to include those municipal water suppliers individually, along with TVWD and Hillsboro,or to assign rights, obligations,and covenants of this Agreement to a successor intergovernmental entity formed by TVWD and Hillsboro under ORS Chapter 190. 10.9. Adherence to Law.The Parties shall adhere to all applicable federal,state, and local laws. Any certificates, licenses, or permits that are required by law to be obtained or maintained in order to perform any work described in this Agreement shall be obtained and maintained throughout the term of this Agreement. 10.10. Governing Law.This Agreement is governed by the laws of the State of Oregon.Venue for any litigation shall be in Washington County, Oregon. 10.11. Nonwaiver. Failure by any Party at any time to require performance by any other Party of any of the provisions of this Agreement shall in no way affect the Party's rights hereunder to enforce the same, nor shall any waiver by the Party of the breach hereof be held to be a waiver of any succeeding breach or a waiver of this nonwaiver clause. 10.12. Severability. In case any one or more of the provisions contained in this Agreement shall be judicially deemed invalid, illegal,or unenforceable in any respect,the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. 10.13. Amendment.The terms of this Agreement may be amended or supplemented by mutual agreement of the Parties. Any amendment or supplement shall be in writing, shall refer specifically to this Agreement, and shall be executed by the Parties. 10.14. Survival Terms and Conditions.The provisions of this Agreement shall survive their termination to the full extent necessary for their enforcement and the protection of the Party in whose favor they run. 10.15. Time of the Essence.Time is expressly made of the essence in the performance of this Agreement. 10.16. Number,Gender,and Captions. In construing this Agreement, it is understood that, if the context so requires,the singular pronoun shall be taken to mean and include the plural,the masculine,the feminine, and the neuter, and that,generally, all grammatical changes shall be made, assumed, and implied to individuals and/or corporations and partnerships.All captions and paragraph headings used herein are intended solely for convenience of reference and shall in no way limit any of the provisions of this Agreement. 10.17. Good Faith and Cooperation.The Parties agree and represent to each other good faith, cooperation, and due diligence in the performance of all obligations of the Parties pursuant to this Agreement. 10.18. Interpretation.This Agreement shall be deemed and construed to have been prepared mutually by each Party, and it shall be expressly agreed that any uncertainty or ambiguity existing therein shall not be construed against any Party. Page 8 of 10 10.19. Counterparts.This Agreement may be signed in one or more counterparts,each of which shall be deemed an original and,when taken together,shall constitute one and the same agreement. 10.20. Authority. Each person signing on behalf of a Party hereby warrants actual authority to bind his/her respective Party. 10.21. Access to Books, Records,and Accounting.TVWD and Hillsboro shall maintain books, records,and reports regarding the connection to the Project showing all income, receipts, expenses,and costs.These records shall be maintained for a period of three (3) years following final completion of the Project.All such books, records, and reports may be examined,and copies made by Tigard staff at reasonable times upon reasonable notice. 10.22. No Third-Party Beneficiary. Nothing in this Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to any person not a Party to this Agreement.There shall be no express or implied third-party beneficiary of this Agreement. No entity or person, other than the Parties, shall have the right to enforce any right under this Agreement. Page 9 of 10 IN WITNESS WHEREOF, the Parties hereto have set their hands as of the day and year hereinafter written. CITY OF TIGARD, OREGON TUALATIN VALLEY WATER DISTRICT By CHIEF EXECUTIVE OFFICER Date Date Approved as to Form Approved as to Form CITY OF HILLSBORO, OREGON By Date Approved as to Form Page 10 of 10 Exhibit A-1 0 CC 1 M 5]i 1 �1---"''.r.1.' C7 H- a5 - ....rat aNEDa Ot. Mz111 r: ._.. STA C.1.1.3 EW mae 0 , oEt'na�v F 2 nac®aza-nr, _ \ 9},1 O.rws:u-t.rwca le m O • •� • '. 1.61. w i it Crxtr E+ae¢.eero T z_ 3?C,S _ . ,,,_, . i I r t 'qr .s ce I-1r� srr+-ns FWENDLY LN ND h IL , ._._ - _..- sZliFMOlZ BC �-: anc � 3O'� Na�+noFw E ex e i i „N4,E fir ern _ OWNED. 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SICUEIC-SEG a KA SASSES IIEVEDIV.110,1,41.US C......sEIEWASK.S E BACKFLOW PREVENTER VAULT SECTION(Ts, SIM SPEIAOSICS.SIWICO.110$*Sea[ISSUE ISMAREISESTS PCS tteDICSTATC Lei,MO 1,19,...04TH SIISS.KOSSTIV.- AMIDE.MA4 C.04POMENT 31,1•S 1 • , • Exhibit B Summary of costs ITEM TOTAL COST NOTES WWSP Share Tigard Share COST OF WORK 68% 32% $ 167,368 WWSP cost to install temporary 6-inch $ 113,810 Cost"A" Tigard cost(difference between 12-inch and 6-inch $ 53,558 Cost"B" temporary connections) Additional Design Costs $ 37,560 $ 17,675 $ 55,235 Additional Construction Management Costs $ 8,160 $ 3,840 $ 12,000 Additional Overhead Costs $ 10,880 $ 5,120 $ 16,000 Anticipated total costs $ 170,410 $ 80,193 $ 250,603 AIS-3420 10. Business Meeting Meeting Date: 03/27/2018 • Length (in minutes): 15 Minutes Agenda Title: Consider Resolution to Approve Purchase and Sale Agreement for Willamette Intake Facility Prepared For: John Goodrich Submitted By: John Goodrich, Public Works Item Type: Meeting Type: Council Business Meeting- Main Public Hearing Newspaper Legal Ad Required?: Public Hearing Publication Date in Newspaper: Information ISSUE Shall the City of Tigard approve the purchase of joint ownership in the Willamette Intake Facility? STAFF RECOMMENDATION / ACTION REQUEST Adopt the resolution approving and authorizing signature to the agreement. KEY FACTS AND INFORMATION SUMMARY Introduction Council is considering a proposed Purchase and Sale Agreement with Tualatin Valley Water District(TVWD) to provide joint ownership of existing constructed assets for the Willamette Intake Facility (WIF),and participate in an expansion of the facility to 150 million gallons per day (mgd). The City of Tigard took action through an ordinance on February 13,2018, to enter into an intergovernmental agreement recognizing TVWD,City of Wilsonville, City of Sherwood,City of Hillsboro, City of Beaverton, and City of Tigard as Parties to the Willamette Intake Facility Project. Purchase and Sale Agreement- Excess System Capacity in Willamette Intake Facility The WIF structure is capable of expansion to a maximum capacity of 150 mgd. TVWD has determined that excess system capacity in the WIF is available to other water providers,including Tigard. Through an allocation formula,TVWD has extended an offer to Tigard for an ownership share equaling 10 percent of the total capacity or 15 mgd. Council provided direction to proceed with a purchase agreement with TV`VD. WIF Governance Under the agreement adopted by council on February 13,2018,the WIF is shared through an ownership by six parties including the cities of Wilsonville,Sherwood,Tigard,Beaverton,Hillsboro,and TVWD. The WIF IGA establishes the general operating procedures for the WIF Commission,including designating TVWD as its managing agency (MA). Wilsonville will be the Operating Agency until 2026. The WIF houses the raw water pumps that safely and reliably draw water from the Willamette River.The existing raw water pumps currently provide water to the existing water treatment plant(WTP). The Willamette Water Supply Program (WWSP),which is a partnership of the City of Hillsboro and TVWD,is designing improvements to the WIF that will expand its capacity,improve its seismic reliability,and enable it to deliver water to the future Willamette Water Supply System water treatment plant. Through the action of approving the proposed Purchase and Sale Agreement,Tigard will participate in the WIF expansion to 150 mgd,will be a member of the"Commission" and will retain 15 mgd in allocated capacity within the WIF. Willamette River Charter Prohibition The City Charter states in Chapter IX,Section 51: "The City of Tigard shall not use the Willamette River as a drinking water source for its citizens unless the question of using the Willamette River as a drinking water source has been approved by not less than fifty (50%) percent of voters voting in a City-wide election (Measure 34-8,September 21, 1999 Election)." This prohibition does not apply to other jurisdictions served by Tigard,including Durham,King City,and the Tigard Water District. In 2010,the city attorney rendered an opinion that the purchase of future pipeline capacity—constructed by others and not connected to the Tigard water system—was not a violation of the City Charter. OTHER ALTERNATIVES Council could not adopt the resolution to approve and authorize signature to the agreement. Staff would request council direction regarding either not participating in the WIF or re-negotiating the proposed agreement. COUNCIL OR TCDA GOALS, POLICIES,MASTER PLANS May 2010 Water Master Plan;June 2014 Water Master Plan Addendum DATES OF PREVIOUS CONSIDERATION Council considered and adopted an ordinance regarding the joint ownership,operation,and management of the WIF on Tuesday,February 13 during regular session. This ordinance required 30 days before officially adopted. Fiscal Impact Cost: $751,000 Budgeted (yes or no): yes Where Budgeted (department/program): Water CIP Additional Fiscal Notes: This purchase and sale agreement (PSA) provides an allocated capacity share of the WIF for an initial buy-in of existing capital infrastructure for$751,000;and future capacity share of expansion capital construction of$2,300,000 over the construction period as Tigard's cost share. Tigard will be assigned 10% capacity, estimated at 15 million gallons per day,in the WIF asset. Attachments Resolution WIF Purchase and Sale Agreement Proposed WIF Purchase Sale Agreement AgendaQuick©2005-2018 Destiny Software Inc.,All Rights Reserved CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 18- A RESOLUTION ADOPTING AN AGREEMENT FOR TRANSFER, PURCHASE AND SALE OF THE WILLAME 1'1'E INTAKE FACILITIES BETWEEN TUALATIN VALLEY WA 1'ER DISTRICT AND THE CITY OF TIGARD. WHEREAS, this is an Agreement for Transfer, Purchase and Sale of the Willamette Intake Facilities ("Agreement") between the Tualatin Valley Water District("TVWD")and the City of Tigard;and WHEREAS,TVWD is a domestic water supply district organized under ORS Chapter 264,which distributes potable water to its water system users;and WHEREAS, Tigard is a municipal corporation that operates a municipal water supply utility under ORS Chapter 225 to distribute potable water to its water system users;and WHEREAS,TVWD and the City of Wilsonville entered into an Agreement Regarding Water Treatment Plant Design, Construction, Operation and Property Ownership dated July 6, 2000 (2000 Master Agreement), the Accord Agreement dated June 19, 2001 (Accord Agreement) and the First Amendment to the 2000 Master Agreement (First Amendment) to construct and operate intake facilities, pumps, a water treatment plant and certain transmission facilities upon real property jointly owned by them (Willamette River Water Treatment Plant or WRWTP Supply Facilities) for the purpose of supplying potable water to Wilsonville and providing a future supply to TVWD.The ownership interests in the real property and WRWTP Supply Facilities of TVWD and Wilsonville are specified in those agreements;and WHEREAS, TVWD and the City of Sherwood entered into an Agreement on December 27, 2006 for the purchase and sale of five (5) million gallons per day("MGD") of capacity in the WRWTP Supply Facilities;and WHEREAS, the WRWTP Supply Facilities include components referred to herein as Intake Facility Assets or Intake Facilities, including fish screens, intake pipe, protective bollards, caisson, pump station building, pipe, electrical conduit,instruments and controls and related appurtenances that convey raw water to the WRWTP; and WHEREAS, TVWD has received an offer from Tigard dated March 20, 2017 to purchase a portion of TVWD's capacity ownership interest in the Intake Facility Assets, for the purpose of providing Tigard with a total of a 10 percent ownership interest in the Intake Facility or Fifteen (15) MGD capacity in the Intake Facility, contingent upon, among other things, completion of capacity expansion improvements so that the Intake Facilities can deliver approximately 150 MGD;and WHEREAS, TVWD and Tigard will become members of the Willamette Intake Facilities Commission (WIF Commission) established by the Willamette Intake Facilities Intergovernmental Agreement effective April 1, 2018,to govern management and operation of the Intake Facilities;and WHEREAS, according to the terms of the 2000 Master Agreement and Accord Agreement and in consideration of the terms and conditions of the First Amendment,Wilsonville has agreed to waive exercise of RESOLUTION NO. 18- Page 1 its Right of First Offer as to the ownership capacity for the 15 MGD capacity in the existing and expanded Intake Facilities conveyed to Tigard under this Agreement;and WHEREAS, the Parties hereto wish to state the terms and conditions of transfer, purchase and sale of a portion of existing TVWD Intake Facilities capacity from TVWD to Tigard and participation by Tigard in the expansion and construction of Intake Facility improvements to obtain a total capacity of 150 MGD. Notwithstanding Tigard's future intent to utilize supply in the future,Tigard does not plan to use the Willamette River as a source for Tigard water system users for a significant period of time. Tigard's intent is to lease,build, or invest in other facilities or supply contracts that are not a part of this Agreement to deliver water from the Intake Facilities to its service area or become a wholesale customer to the Willamette Water Supply System. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: City Council approves the agreement for transfer, purchase and sale of the Willamette Intake Facilities between the Tualatin Valley Water District and the City of Tigard, in substantially the form attached hereto as Exhibit"A." SECTION 2: This resolution is effective immediately upon passage. PASSED: This day of 2018. Mayor-City of Tigard ATTEST: City Recorder-City of Tigard RESOLUTION NO. 18- Page 2 Exhibit "A" AGREEMENT FOR TRANSFER,PURCHASE AND SALE OF THE WILLAMETTE INTAKE FACILITIES BETWEEN TUALATIN VALLEY WATER DISTRICT AND THE CITY OF TIGARD EFFECTIVE MARCH 1,2018 This is an Agreement for Transfer,Purchase and Sale of the Willamette Intake Facilities ("Agreement")between the Tualatin Valley Water District("TVWD")and the City of Tigard ("Tigard"). RECITALS A. TVWD is a domestic water supply district organized under ORS Chapter 264, which distributes potable water to its water system users. B. Tigard is a municipal corporation that operates a municipal water supply utility under ORS Chapter 225 to distribute potable water to its water system users. C. TVWD and the City of Wilsonville entered into the Agreement Regarding Water Treatment Plant Design, Construction, Operation and Property Ownership dated July 6, 2000 ("2000 Master Agreement"), the Accord Agreement dated June 19, 2001 ("Accord Agreement")and the First Amendment to the 2000 Master Agreement dated , 2018 ("First Amendment") to construct and operate intake facilities, pumps, a water treatment plant and certain transmission facilities upon real property jointly owned by them ("Willamette River Water Treatment Plant" or "WRWTP" Supply Facilities) for the purpose of supplying potable water to Wilsonville and providing a future supply to TVWD. The ownership interests in the real property and WRWTP Supply Facilities of TVWD and Wilsonville are specified in those agreements. D. TVWD and the City of Sherwood entered into an Agreement on December 27, 2006 ("Sherwood TVWD WRWTP Agreement") for the purchase and sale of five (5) million gallons per day("MGD") of capacity in the WRWTP Supply Facilities. E. The WRWTP Supply Facilities include components referred to herein as Intake Facility Assets or Intake Facilities, to wit: fish screens, intake pipe, protective bollards, caisson, pump station building, pipe, electrical conduit, instruments and controls and related appurtenances that convey raw water to the WRWTP. F. TVWD has received an offer from Tigard dated March 20, 2017 to purchase a portion of TVWD's capacity ownership interest in the Intake Facility Assets, for the purpose of providing Tigard with a total of a 10 percent ownership interest in the Intake Facility or Fifteen (15) MGD capacity in the Intake Facility, contingent upon, among other things, completion of capacity expansion improvements so that the Intake Facilities can deliver approximately 150 MGD. G. TVWD and Tigard will become members of the Willamette Intake Facilities Commission (WIF Commission) established by the Willamette Intake Facilities Intergovernmental Page 1 of 11 Exhibit "A" Agreement ("WIF Agreement") effective April 1, 2018, to govern management and operation of the Intake Facilities. H. According to the terms of the 2000 Master Agreement and Accord Agreement and in consideration of the terms and conditions of the First Amendment, Wilsonville has agreed to waive exercise of its Right of First Offer as to the ownership capacity for the 15 MGD capacity in the existing and expanded Intake Facilities conveyed to Tigard under this Agreement. I. The Parties hereto wish to state the terms and conditions of transfer,purchase and sale of a portion of existing TVWD Intake Facilities capacity from TVWD to Tigard and participation by Tigard in the expansion and construction of Intake Facility improvements to obtain a total capacity of 150 MGD. Notwithstanding Tigard's future intent to utilize supply in the future, Tigard does not plan to use the Willamette River as a source for Tigard water system users for a significant period of time. Tigard's intent is to lease, build, or invest in other facilities or supply contracts that are not a part of this Agreement to deliver water from the Intake Facilities to its service area or become a wholesale customer to the Willamette Water Supply System. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: AGREEMENT Based on the foregoing Recitals and the mutual promises and obligations set forth herein, and other good and fair consideration, the sufficiency of which is hereby acknowledged, the Parties agree: 1. Effective Date. This agreement is effective as of March 1, 2018. 2. Recitals. The Recitals above are incorporated and made part of this Agreement. 3. Intake Facilities. Intake Facilities shall mean the facilities used to withdraw and transmit water from the Willamette River to the Parties at the System Separation Point between the WRWTP and the Willamette Water Supply System Water Treatment Plant ("WWSS WTP"), as defined in the WIF Agreement, including the screens, intake pipe, wetwell, pump station building, pumps and associated electric and mechanical systems (e.g. wire, conduit, electrical devices and ventilation equipment). Intake Facilities includes both the existing Intake Facilities and the Intake Facilities after they are expanded and upgraded to the anticipated 150 MGD. 4. Sale of Existing Intake Facility Capacity. TVWD hereby agrees to sell, transfer and assign, and Tigard agrees to purchase, an amount of TV WD's capacity ownership interest in the Intake Facilities so that Tigard Page 2 of 11 Exhibit "A" will obtain an undivided 10 percent ownership interest as tenant in common of the capacity of the existing Intake Facilities set forth on Exhibit I, attached hereto and incorporated by reference. It is intended that when the existing Intake Facilities are expanded and modified as provided in Section 5, Tigard will own 15 MGD of capacity in the expanded Intake Facilities. Accordingly, the sale and transfer of the existing Intake Facility capacity is expressly contingent upon the expansion and upgrade of the Intake Facility to achieve the approximate 150 MGD capacity, subject to proportionate reduction based on actual capacity achieved as set forth in Section 5.2. 5. Expansion and Upgrade of Intake Facilities. 5.1 TVWD and Tigard, as well as the cities of Beaverton, Sherwood, Hillsboro and Wilsonville, have executed or will execute the WIF Agreement as well as separate agreements with TVWD to provide for the permitting, design and construction of screens, intake pipe, protective bollards, building(s), pumps, electrical wire, conduit and equipment, instrumentation and controls and seismic improvements to achieve Intake Facilities approximate capacity of 150 MGD ("Expansion Project"). Upon completion of expansion,the ownership capacity of the Intake Facilities is expected to be: Entity Ownership Capacity Ownership Interest (MGD) (%) TVWD 59.1 39.40 Wilsonville 25.0 16.67 Sherwood 9.7 6.47 Hillsboro 36.2 24.13 Tigard 15.0 10.00 Beaverton 5.0 3.33 TOTAL 150.0 100.00 5.2 Following completion of the Expansion Project, if the total capacity of the Intake Facilities is less than 150 MGD, all parties have agreed that the reduction shall be proportionately shared by all of the above Parties; except that in no event will TVWD's capacity share be reduced below 56.5 MGD nor will Wilsonville's and Sherwood's share be reduced below 20 MGD and 5 MGD respectively. If proportionate reductions are still necessary once these minimum thresholds are reached, the remaining parties will proportionately share in the additional reduction as provided in the WIF Agreement. 5.3 TVWD and Tigard agree that the Expansion Project will be managed by TVWD as Managing Agency under the WIF Agreement unless the Parties later mutually agree upon a construction agreement for the Project. 6. Consideration. 6.1 On or before May 1, 2018, Tigard shall pay TVWD $750,239 in return for a 10 percent (15 MGD) ownership interest in the capacity of the Intake Facilities as set forth on Exhibit I attached hereto and incorporated by reference. Page 3 of 11 Exhibit "A" 6.2 In addition, Tigard shall pay to TVWD, through the Willamette Water Supply Program (WWSP), a proportionate share of actual costs incurred for permitting, acquiring and installing new screens, design and construction of seismic improvements, and all other improvements necessary to expand the Intake Facilities to 150 MGD at the estimated cost set forth on Exhibit I, attached hereto and incorporated by reference. These actual costs include costs expended to date and costs incurred for ongoing work to complete the Expansion Project. As Managing Agency of the WIF Commission,TVWD will cause the WWSP staff to manage all aspects of the Expansion Project. 6.3 The Parties agree that the cumulative amounts described in paragraphs 6.1 and 6.2 above constitute full consideration (the "Purchase Price")for Tigard's 10 percent (15 MGD) ownership interest in the capacity of the Intake Facilities. If the Expansion Project achieves a maximum intake capacity in excess of 150 MGD, Tigard is entitled to ownership of the proportionate increase in the capacity in excess of 15 MGD based on the Ownership Capacity table shown in Section 5.1 above. 6.4 The Purchase Price paid to TVWD under paragraphs 6.1 and 6.2 above entitles Tigard to 10 percent ownership interest in the capacity of the Intake Facilities with the expectation of realizing 15 MGD of capacity ownership. If the final approved design capacity of the expanded Intake Facilities is less than 150 MGD, such that Tigard's resulting capacity is less than 15 MGD, TVWD and Tigard will renegotiate the cost shares of the Purchase Price based on the updated total capacity of the expanded Intake Facilities, following the same methodology used to calculate the proposed Purchase Price that assumed the total capacity of 150 MGD. If Tigard's resulting capacity exceeds 15 MGD, TVWD is not entitled to an increase in the Purchase Price. 7. Payment. 7.1 TVWD will submit a monthly progress payment invoice to Tigard for the City's proportionate share of Expansion Project costs incurred. The invoice may include costs incurred from previous months that were carried forward provided they are separately listed. 7.2 Tigard shall review each invoice and pay any uncontested charges within 30 days of the invoice date. Tigard shall provide a written notice for any contested charge. Within 15 days of receiving the notice, TVWD and Tigard shall discuss and attempt to resolve the objection. If not resolved, the matter will be submitted to Dispute Resolution. 7.3 When a disputed cost is resolved and results in payment of all or a part of the amount originally invoiced, Tigard shall pay the amount within 10 days along with interest at the rate TVWD would have earned upon the amount in the Local Government Investment Pool commencing 30 days from the date of the original invoice to the date of payment. 8. Conditions of Sale. TVWD and Tigard agree that the sale and transfer of capacity ownership of the existing Intake Facilities is conditioned upon satisfaction of the following: 8.1 Tigard and TVWD shall each become a party to the Willamette Intake Facilities Intergovernmental Agreement and a member of the WIF Commission. Page 4 of 11 Exhibit "A" 8.2 The Intake Facilities will be expanded and upgraded to achieve approximate capacity of 150 MGD as provided in Section 5.2. 8.3 The grant of an easement to the WIF Commission by TVWD and Wilsonville over, under and through the WRWTP Property to access, locate, design, construct, operate, maintain, repair, replace and reconstruct the Intake Facilities. The easement form is part of the WIF Agreement and by signature below is acceptable to the Parties. 8.4 The grant of an easement by TVWD and Wilsonville to Hillsboro, Beaverton and Tigard, or to an intergovernmental entity to which they are parties, over, under and through the WRWTP Property for a raw water pipeline, electrical ductwork, surge tanks, electrical equipment, instrumentation and controls and any necessary structures or buildings to take raw water from the System Separation Point and convey it to the WWSS WTP. The easement form attached hereto is acceptable to the Parties. 8.5 Tigard has water rights through the Willamette River Water Coalition with an approved point of diversion at the WRWTP, River Mile 39. 9. Wilsonville. 9.1 TVWD has entered into various agreements with the City of Wilsonville regarding co-ownership of the Property upon which the WRWTP, the Supply Facilities that comprise the WRWTP, and the Intake Facilities are located. 9.2 Under the 2000 Master Agreement and the Accord Agreement, Wilsonville and TVWD have reciprocal rights of first offer in any proposed sale or transfer of Property or Supply Facilities as well as a right to notice of any requested expansion of facilities to determine whether leasing is available to defer the capital expansion proposed in the notice and whether to participate. By letter dated June 7, 2017, Wilsonville declined to exercise its right of first offer for this sale and transfer by TVWD to Tigard. TVWD has retained capacity ownership of 59.1 MGD in the Intake Facilities and Wilsonville and TVWD have agreed that the right of first offer remains as to TVWD's 56.5 MGD and Wilsonville's 25 MGD capacities respectively. Tigard's 15 MGD capacity ownership is not subject to the rights of first offer in the 2000 Master Agreement, Accord Agreement or First Amendment. 9.3 Wilsonville has also consented to expansion of the Intake Facilities to 150 MGD with the expectation that its capacity ownership will increase to 25 MGD. Under the First Amendment between TVWD and Wilsonville, among other consideration, those parties agreed that Wilsonville's expansion cost share would only be $75,000 for intake permitting and $50,000 for new screens. TVWD and Tigard understand and agree that this cap on Wilsonville's cost share will cause the other Parties to the WIF Commission to pay for all other costs for expansion and upgrade at the actual costs as estimated on Exhibit I. 9.4 Tigard understands and agrees that by entry into this agreement, it does not become a party to the 2000 Master Agreement, Accord Agreement or First Amendment, nor does it acquire any ownership interest in the Property or the remaining WRWTP Supply Facilities, existing raw water pumps, existing electrical equipment or the existing raw water pipeline from the System Separation Point into the WRWTP except as provided in this Agreement(i.e. the easements). Page 5 of 11 Exhibit "A" 10. Intake Facilities Expansion. 10.1 Tigard agrees that TVWD, as the Managing Agency of the WIF Commission, will be responsible for the permitting, design, construction and commissioning of the Intake Facilities Expansion Project. TVWD shall act by and through the WWSP staff. Under the WIF Agreement, TVWD shall: 10.1.1 Serve as the contracting agency for the Expansion Project including, but not limited to, the preparation and administration of RFPs and RFQs and all procurement solicitations, manage all contracts and change orders in accordance with TVWD Local Contract Review Board Rules. 10.1.2 Following receipt of bids or proposals, WWSP staff shall develop a written recommendation of award for presentation to all participants in the Expansion Project. Tigard shall have 10 days to approve or object. If approved, then TVWD will issue the Notice of Intent to Award. The Parties will reasonably cooperate to resolve objections. A final decision on award must be made within the timelines stated in the solicitation. 10.1.3 Any change order or procurement contract that will exceed $100,000 of Tigard's proportionate share of the contract price will require prior approval except in the case of emergency. 10.1.4 A change order that is deemed an emergency may be approved by the WWSP Program Director, or designee, as the Program Director deems reasonable under the circumstances. The emergency change order will be provided to Tigard as soon thereafter as reasonable. 10.1.5 WWSP will prepare a Work Plan and Cash Requirements Schedule for the Expansion Project and update it periodically so that Tigard can monitor progress, expenditures and forecast when monetary contributions to the Expansion Project are due and payment required. 10.1.6 TVWD and Tigard anticipate entering into a subsequent agreement(s) regarding design and construction of the Expansion Project. The Parties may elect to have that agreement, if created, supersede this Agreement and govern the Expansion Project. 11. Representations by TVWD. 11.1 The execution, delivery and performance of this Agreement have been duly authorized by TVWD's Board of Commissioners and the person signing below has full power to bind TVWD to the terms of this Agreement. 11.2 The entry into this Agreement will not result in a breach or violation of, or constitute a default under, any other agreement to which TVWD is a party. 12. Representations by Tigard. 12.1 The execution, delivery and performance of this Agreement have been duly authorized by the Tigard City Council and the person signing below has full power to bind Tigard to the terms of this Agreement. 12.2 The entry into this Agreement will not result in a breach or violation of, or constitute a default under, any other agreement to which Tigard is a party. 13. Existing Intake Facilities Assets and WIF Site Conditions. Page 6of11 Exhibit "A" 13.1 AS-IS. The Parties agree that TVWD makes no representation or warranties as to the condition of the Existing Intake Facility Assets and Tigard accepts them in AS- IS condition. 13.2 Site Conditions. The Parties agree that TVWD makes no representation or warranty as to the condition of the property site for construction of the expanded and upgraded facilities. Tigard accepts the site conditions AS-IS and any and all risks (known or unknown) as to what may be encountered when the Expansion Project occurs. 13.3 Risk of Loss. Risk of loss, damage or destruction of the Intake Facilities assets will be borne by TVWD for the period prior to the effective date of the Agreement. Thereafter, risk of loss, damage or destruction to the Intake Facilities (Existing and Expanded) shall be borne by Tigard to the extent of Tigard's proportionate capacity ownership. 14. Sale,Transfer and Assignment. The Parties agree that any subsequent sale,transfer or assignment of any interest in the Intake Facilities shall be subject to the WIF Agreement. 15. Dispute Resolution. 15.1 Mediation and Litigation. If a dispute arises regarding any term of this Agreement or the performance thereof, then one Party shall give written notice to the other specifying the dispute. The chief executive officer of each Party shall meet. If the matter is not resolved within 30 days from the date of notice, then either Party may request mediation by notice to the other Party, mailed or delivered within 15 days after impasse. The Parties shall mutually agree on a mediator. If no mediator is selected or if mediation is not successfully completed within 60 days of the notice requesting mediation, then the Parties may proceed to litigation in the Circuit Court of the State of Oregon for Washington County. The Parties may also mutually agree to arbitration. A Party may seek all legal and equitable remedies. Interest on any judgment shall accrue at the statutory rate. 15.2 Consent to Joinder of Disputes. The Parties understand that TVWD has similar agreements with Beaverton, Sherwood, Hillsboro, and Wilsonville regarding the Project and that a dispute under this Agreement or a dispute under those agreements may impact each other and the Parties desire to avoid conflicting decisions in the case of disputes affecting the Project. Therefore,the Parties to this Agreement consent to joinder of any dispute hereunder with similar disputes between TVWD and those other Partners. This obligation to joinder as a party will apply to mediation or any litigation in Circuit Court. 16. Breach of Agreement and Remedies. 16.1 Notice. If a Party to this Agreement believes that the other Party is in material breach of its obligations under this Agreement, the non-breaching Party must provide the breaching Party with not less than 10 days' written notice of the breach in the case of nonpayment or 30-day notice in all other cases. 16.2 Cure. Within 10 days of receipt of such notice, the breaching Party must provide a written response stating how cure will be performed. If the default is for failure to make payment, then payment must be made within 10 days unless the Parties mutually Page 7 of 11 Exhibit"A" agree otherwise. The disputed amount will be paid but the Party so making payment may proceed to dispute resolution to obtain repayment of the money. Cure for defaults other than failure to make payment must be completed within 30 days unless a longer period to cure is necessary. In such case, within 30 days, the breaching party must begin diligent cure. Nothing herein prevents a Party from seeking Dispute Resolution. 16.3 Remedies. Following Dispute Resolution, the non-breaching Party may seek all available legal or equitable remedies available under Oregon law. 17. Termination. 17.1 This Agreement may be terminated by mutual agreement of the Parties. 17.2 The Parties agree that voluntary or involuntary termination and transfer of any interest in the Intake Facilities shall be governed by the terms and provisions of the WIF Agreement. 18. Force Majeure. The obligations of a Party, other than the payment of money, shall be suspended to the extent and for the period that performance is prevented by any cause, whether foreseen, foreseeable or unforeseeable, beyond the Party's reasonable control if the Party is making a good faith effort to resolve or avoid the cause, including without limitation labor disputes (however arising and whether or not employee demands are reasonable or within the-power of the Party to grant); acts of God, laws, regulations, orders, proclamations, instructions or requests of any government or governmental entity; judgments or orders of any court; inability to obtain on reasonably acceptable terms any public or private license, permit or other authorizations; curtailment or suspension of activities to remedy or avoid an actual or alleged, present or prospective violation of federal, state, or local environmental standards; acts of war or condition arising out of or attributable to war, whether declared or undeclared, riot, civil strife, insurrection or rebellion, fire, explosion, earthquake, storm, flood, sinkholes, drought or other adverse weather conditions out of the ordinary; material delay or failure by suppliers or transporters of materials, parts, supplies, utilities or services; accidents, breakdown of equipment,machinery or facilities, or any other cause whether similar or dissimilar to the foregoing, provided that the affected Party shall give notice to the other Party within 30 days of the suspension of performance or as soon as reasonably possible, stating in such notice the nature of the suspension, the reasons for the suspension and the expected duration of the suspension. The affected Party shall resume performance as soon as reasonably possible. 19. Severability. Should any provision of this Agreement be rendered invalid by a court of competent jurisdiction or arbitrator with authority to render a provision invalid, it is agreed that every other part of the Agreement shall remain in full force and effect so long as the benefit of the bargain remains. 20. Entire Agreement. This Agreement, including all attached exhibits, and the referenced Agreements contains the entire and final understanding of the Parties and supersedes all prior Page 8 of 11 Exhibit"A" Agreements and understandings between the Parties related to the subject matter of this Agreement. 21. No Joint and Several Liability Each Party to this Agreement assumes its own rights and obligations and does not assume the rights and obligations of any other Party. 22. Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute a single Agreement. 23. Covenant of Good Faith The Parties agree in construing this Agreement no covenants shall be implied between the Parties except the covenants of good faith and fair dealing. 24. Governing Law and Judicial Review. This Agreement and construction thereof shall be governed by and interpreted in accordance with the laws of the State of Oregon without regards to principles of conflicts of law. Subject to Dispute Resolution, any claim, action or proceeding between the Parties that arises from or relates to this Agreement shall be brought in the Circuit Court of the State of Oregon for Washington County. 25. Amendments and Modifications. Any modification or amendment to this Agreement must be in writing and signed by both Parties. 26. Successors and Assigns This Agreement shall bind and insure to the benefit of the Parties and their successors and assigns. 27. Third Parties. The Parties recognize and agree that TVWD has entered into this Agreement with Tigard for sale and purchase of a portion of TVWD's existing Intake Facilities and the commitment by Tigard to participate in the Expansion Project. This Agreement is pursuant to a larger plan with the Cities of Beaverton, Sherwood and Hillsboro under nearly identical agreements. Therefore, the Parties hereto recognize that those other entities are third party beneficiaries of this Agreement and the Parties to this Agreement are third party beneficiaries of those agreements. 28. Non Waiver. Failure of any Party at any time to require performance of any provision of this Agreement shall not limit the Party's right to enforce the provision, nor shall any waiver of any breach of any provision be a waiver of any succeeding breach of the provision or a waiver of the provision itself or any other provisions. 29. Time is of the Essence. Page 9 of 11 Exhibit"A" Time is of the essence of each and every term, covenant, and condition set forth in this Agreement. A material consideration of the Parties for entering into this Agreement is that each Party will make all payments as and when due and will perform all other obligations under this Agreement in a timely manner. 30. Further Assurances. Each Party agrees that it will, without further consideration, execute and deliver such other documents and take such other action as may be reasonably requested by the other Party to more effectively consummate or achieve the purposes or subject matter of this Agreement. 31. Notices. All notices, payments and other communications to the Parties under this Agreement must be in writing, and shall be addressed respectively as follows: Tigard: City of Tigard Attention: City Manager 13125 SW. Hall Blvd Tigard, Oregon 97223 TVWD: Tualatin Valley Water District Attention: Chief Executive Officer 1850 SW 170th Avenue Beaverton,Oregon 97003 All notices shall be given by (i) personal delivery to the Party, (ii) certified or registered mail, or (iii) electronic communication followed immediately by registered or certified mail return receipt requested. All notices shall be effective and shall be deemed delivered (a) if by personal delivery, on the date of delivery, (b) if by certified or registered mail on the date delivered to the United States Postal Service as shown on the receipts; and(c) if by electronic communication, on the date the confirmation is delivered to the United States Postal Service as shown on the actual receipt. Upon a change in ownership, a new Party shall, upon entering into this Agreement,notify the other Party or Parties of their contact person, address and facsimile number. Any Party may change its address from time to time by notice to the other Parties. 32. Remedies Not Exclusive. Each and every power and remedy specifically given to the non-defaulting Party shall be in addition to every other power and remedy now or hereafter available at law or in equity (including the right to specific performance), and each and every power and remedy may be exercised from time to time and as often and in such order as may be deemed expedient. All such powers and remedies shall be cumulative, and the exercise of one shall not be deemed a waiver of the right to exercise any other or others. No delay or omission in the exercise of any such power or remedy and no renewal or extension of any payments due under this Agreement shall impair any such power or remedy or shall be construed to be a waiver of any default. Page 10 of 11 Exhibit"A" 33. Survival of Terms and Conditions. The provisions of this Agreement shall survive its termination to the full extent necessary for their enforcement and the protection of the Party in whose favor they run. TUALATIN VALLEY WATER DISTRICT CITY OF TIGARD By: By: Title: Title: Approved as to Form: Approved as to Form: District Counsel City Attorney Page 11 of 11 SUPPLEMENTAL PACKET FOR 3 . a 7 o ( a (DATE OF MEETING) NI ■ City of Tigard TIGARD Memorandum To: Honorable Mayor Cook and Tigard City Council From: John Goodrich,Public Works Operations Manager Re: Next Steps for Willamette Water Supply Project Agreements Date: March 15, 2018 During the regular business meeting on March 27, council will consider two agreements pertaining to the Willamette Water Supply Program. Next steps include Tigard City Council consideration of two agreements: • A purchase and sale agreement with Tualatin Valley Water District (TVWD) for the Willamette Intake Facility, and • An intergovernmental agreement with the Tualatin Valley Water District (TVWD) and the City of Hillsboro for temporary water supply. Willamette Intake Facilities (WIF) expansion The Willamette Intake Facilities (WIF) are located at the Willamette River Water Treatment Plant (WRWTP) in Wilsonville, OR. The WIF houses the raw water pumps that safely and reliably draw water from the Willamette River. The Willamette Water Supply Program (WWSP), which is a partnership of the City of Hillsboro and the Tualatin Valley Water District (TVWD), is designing improvements to the WIF that will expand its capacity,improve its seismic reliability, and enable it to deliver water to the future Willamette Water Supply System (WWSS) water treatment plant. To move forward with participation in WIF expansion, Council is being asked to consider a proposed Purchase and Sale Agreement with Tualatin Valley Water District (TVWD) to provide joint ownership of existing constructed assets for the WIF, and to participate in an expansion of the facility to 150 million gallons per day (mgd). Excess System Capacity TVWD has determined that excess system capacity in the WIF is available to other water providers,including Tigard. Through an allocation formula,TVWD has extended an offer to Tigard for an ownership share equaling 10 percent of the total capacity or 15 mgd. Council provided direction to staff to proceed with drafting a purchase agreement for the additional capacity. Purchase and Sale Agreement Staff is requesting council consider approving the Purchase and Sale Agreement, allowing Tigard to fully participate in the WIF expansion to 150 mgd, continue membership in the "WIF Commission" and to retain 15 mgd in allocated capacity within the WIF. In order for Tigard to someday receive and distribute water from the WIF,the city would need to construct or partner with others for additional water treatment capacity and pipeline conveyance. However, these would be long-range costs that would occur when Tigard's water service area needs grow to a point where additional water supply capacity is warranted. Temporary Water Agreement The second item for council consideration on March 27 is a proposed agreement to provide "construction" water through a temporary water supply for the WWSS pipeline project on Roy Rodgers Road. This request for temporary water supply provides an opportunity to construct additional improvements to make a permanent emergency connection to the WWSS with a flow capacity of five (5) million gallons per day (mgd) for Tigard use. Future action items to fully develop this connection will require a separate agreement with the Willamette Water Supply Program regarding terms and conditions for water use. Water will not be available from the WWSS until 2026. Through the proposed agreement, Tigard would share costs to upsize the water supply pipe connection from 6-inch diameter pipe to 12-inch diameter pipe. Tigard's cost share is approximately$82,000. Tigard would be responsible for any further costs associated with completing the permanent connection, such as special control valves or water quality monitoring equipment. Staff recommends adopting both resolutions to approve the Purchase and Sale Agreement and Temporary Water Supply Agreement to provide resilient and redundant water supply options for emergency or supplemental water needs for the community.