01-007 Santa Clara Housing TrustAGREEMENT BETWEEN THE CITY OF CUPERTINO
AND THE HOUSING TRUST OF SANTA CLARA COUNTY
THIS AGREEMENT is made and entered into a;s of February ~, 2001, by and between
the City of Cupertino (City) and the Housing Trust of Santa Clara County ("Corporation"), a
California nonprofit corporation.
RECITALS
A. The Housing Trust Fund of Santa Clara (:ounty (HTF) Endowment Fund ("Endowment
Fund"), an investment pool fund in which private corporations and public agencies
participate, has been created by the Fund for the purpose of establishing a revolving
loan fund and grant-making program to address the issue of affordable, available
housing in Santa Clara County.
B. On February 13, 2001 the City Council of the City of Cupertino approved a contribution
of $250,000 in Affordable Housing Fund:> to the Housing Trust Fund, herein known as
the Housing Trust Fund of Santa Clara County (HTF) Endowment Fund.
C. The City's Housing Mitigation Policy re~auires that the funds be used to implement
those policies contained in the Housing Element of the General Plan for providing
assistance in expanding, preserving, or improving the supply of low and moderate
housing in the City.
D. The City desires to increase, improve, or preserve affordable housing for persons and
families of low and moderate income in the City of Cupertino, by participating in the
Endowment Fund as specified in this Agreement.
E. The purpose of this Agreement is to set fourth the mutual agreement of the City and the
Fund regarding the use of the City's Affordable Housing Funds through the
Endowment Fund.
In view of the above, the parties agree as follows:
SECTION 1 AUTHORITY AND STATU:i OF CORPORATION
Corporation represents and warrants that the information contained in this Agreement is true
and accurate to the best of its knowledge, arn~ that it is a duly organized, validly existing
nonprofit corporation in good standing under the laws of its place of incorporation; that its
signatory to this Agreement is authorized b~~ resolution, bylaws, or constitution of the
nonprofit corporation, currently, in full force and effect, to execute this Agreement on
Corporation's behalf.
SECTION 2 DEPOSIT OF CITY'S AFFORDABLE HOUSING FUNDS INTO
ENDOWMENT FUND
City agrees to deposit the sum of $250,000 into the Endowment Fund within 30 days after the
mutual execution and delivery of this Agreement:.
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SECTION 3 USE OF CITY'S AFFORDABLE HOUSING FUNDS BY
ENDOWMENT
3.1 Fund agrees that no fees will be charged to City's Affordable Housing Funds on
deposit in the Endowment Fund for administrative or overhead costs, including
but not limited to fundraising expenses. The sole administrative expenses
which may be charged to City's Affordable Housing Funds on deposit in the
Endowment Fund shall be as set forth in Section 6.
3.2 The Fund shall serve as the Endowment Fund's fiscal agent. Subject to this
Section 3.2, the City's Affordable Housing Funds may be disbursed either as
loan or grant funds. The initial disbursement of the City's Affordable Housing
Funds from the Endowment Fund shall be used exclusively for one or more
projects that meet all of the following criteria:
3.2.1 Any such project must increase, improve or preserve affordable housing
in the City of Cupertino.
3.2.2 Such housing must be affordable to low or very low income households
as those terms are defined by the Department of Housing and Urban
Development as pertains to the San Jose Metropolitan Statistical Area.
3.2.3 The Fund shall use the City's Affordable Housing Funds to increase,
improve or preserve affordable housing for homeless individuals and
families, affordable rental housing and/or provide first-time homebuyers
assistance programs for persons and families of low or very low income
households, by methods of providing financial assistance that include,
but are not limited to, the methods set forth in California Health and
Safety Code Section 33334.2 (e).
3.2.4 Any new or substantially rehabilitated housing that is developed,
financed or assisted, in whole or in part, with the City's Affordable
Housing Funds shall remain available at affordable housing costs to
persons and families of low or very low income households, as the case
may be, for the longest feasible time, but not less than (a) fifty (50) years
for rental units, or (b) thirty (30) years for owner-occupied units. The
Fund shall require the recording in the office of the County Recorder of
covenants or restrictions implementing this Section 3.2.4 for each parcel
or unit of real property subject to this Section 3.2.4, which covenants or
restrictions shall run with the land and shall be enforceable against the
original owner and successors ir? interest, by the City or the Fund.
3.2.5 There shall be no discrimination against or segregation of any person, or
group of persons, on account of race, color, religion, national origin,
ancestry, gender, marital status, sexual preference, or handicap status in
the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment
of any such project, or any part thereof, nor shall any recipient of the
City's Affordable Housing Funds, or any person claiming under or
through such person, establish or permit any such practice or practices
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of discrimination or segreg~~tion with reference to the selection, location,
number use or occupancy of tenants, lessees, subtenants, sublessees,
or vendees of any such project.
3.2.6 The restrictions of this Section 3.2 shall apply only to the initial use of the
City's Affordable Housing Funds by the Fund. After the initial use of the
City's Affordable Housing Funds by the Fund, reinvestment of funds that
are repaid to or otherwise recaptured by the Fund shall not be subject to
this Section 3.2, but shall otherwise assist affordable housing projects
through the Housing Trust F=und in accordance with the Fund's Articles of
Incorporation or bylaws.
3.2.7 The Fund shall refund to the City any portion of the City Affordable
Housing Funds that have not been disbursed or contractually committed
to be disbursed in accordance with this Section 3.2 by the date that is six
(6) months after the mutu~rl execution and delivery of this Agreement.
Provided the City's Affordable Housing Funds are disbursed or
contractually committed to Ise disbursed in accordance with this Section
3.2 within such six-month i~eriod, the Fund shall have no obligation to
repay any portion of the Cit~r's Affordable Housing Funds to the City.
3.3 All disbursements by the Fund shill be made with the advice and suggestion of
the Endowment Fund Steering (committee which has been formed by the
Endowment Fund Initiative Committee and which includes two members of the
Santa Clara County Board of Supervisors. The Fund shall follow the
recommendations regarding disbursements rendered by the Endowment Fund
Steering Committee unless to do so would be a violation of law, this Agreement,
or the Fund's Articles of Incorporation or Bylaws.
SECTION 4 INVESTMENT OF THE FUPJD
Fund shall hold, manage, invest and reinvest the Endowment Fund in accordance with the
"reasonably prudent person" standard.
SECTION 5 FINANCIAL REPORTS
5.1 Fund shall establish and maintain, in accordance with generally accepted
accounting principles, a complete record of all financial transactions related to
the Endowment Fund.
5.2 Fund shall provide City with quarterly reports which shall set forth in detail all
financial transactions related to thc: Endowment Fund. Fund shall also provide
City with a copy of its audited report, prepared by independent certified public
accountants.
5.3 Fund shall provide City with a written report on the initial expenditure of the
City's Affordable Housing Funds, including, at a minimum, for each project
assisted with City's Affordable Housing Funds, the following information:
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location and description of the assisted project(s); number of units; rent or sale
price and income
restrictions; and term of restrictions.
SECTION 6
ADMINISTRATIVE FEES
Fund may charge an annual administrative fee equal to one percent (1 %) of the fair market
value of the Endowment Fund against the Endowment Fund. Fund may also charge against
the Endowment Fund reasonable bank fees. One-Twelfth (1/12) of the annual fees will be
deducted monthly. Fund shall report the fees charged against the Endowment Fund in its
quarterly and annual reports.
SECTION 7 NOTICES
Any communication or notice which either party is required to send to the other or which
either party desires to send to the other, shall be in writing and shall be either personally
delivered or mailed in the United States mail, postage prepaid, to the respective parties
addressed as follows:
City: City of Cupertino
Housing Division
10300 Torre Avenue
Cupertino, CA 95014
Fund: Housing Trust of Santa Clara County
PO Box 1537
San Jose, CA 95109-1537
Either party may change its address by sending notice of the new address to the other party
pursuant to this Section.
SECTION 8 COMPLIANCE WITH ALL LAWS
Fund shall comply with all applicable laws, ordinances, codes and regulations of the federal,
state and local governments.
SECTION 9 MISCELLANEOUS PROVISIONS
A. The parties agree that this Agreement shall be governed and construed in accordance
with the laws of the State of California. In the event that suit shall be brought by either
party to this Agreement, the parties agree that venue shall be exclusively vested in the
state courts of the County of Santa Clara, or where otherwise appropriate, exclusively
in the United States District Court, Northern District of California, San Jose, California.
B. The headings of the sections and subsections of this Agreement are inserted for
convenience only. They do not constitute a part of this agreement and shall not be
used in its construction.
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C. The waiver by any party to this Agreement of a breach of any provision of this
Agreement shall not be deemed a continuing waiver or a waiver of any subsequent
breach of that or any other provision of this Agreement.
D. Any and all exhibits which are referred to in this Agreement are incorporated herein by
reference and are deemed a part of this Agreement. This Agreement may only be
amended by formal written agreement executed by both parties.
E. If a court of competent jurisdiction adjudges any provision of this Agreement as void or
unenforceable, the remaining provisions shall not be affected hereby and shall remain
in full force and effect; provided that construction of the agreement without the invalid
or unenforceable provision does not deprive the parties of the benefit of their bargain.
Where this agreement refers to City and no Officer of the City is named, the City Manager
shall have the authority to act on the City's behalf.
CITY OF CUPERTINO
Z. zG a c
David W. Knapp
City Manager
ATTEST:
K
Kimberly Smith
City Clerk
APPROVED AS TO FORM:
Charles it a
City Attorney
I~OUSING TRUST OF SANTA CLARA
COUNTY
~., s Block
I.xecutive Director
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