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HomeMy WebLinkAboutReso 91-1987 RESOLUTION N0..~91-87~ CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION AUTHORIZING AN AGREEMENT FOR PROPERTY REHABILITATION LOAN SERVICES WHEREAS, on December 10, 1986 the City Council approved rehabilitation program guidelines for projects to be undertaken in connection with the City's Community Development Block Grant (CDBG) Housing Rehabilitation Program and the HUD Rental Rehabilitation Program; and WHEREAS, the City also desires to take advantage of the Department of Housing and Urban Development's Section 312 Rehabilitation Program; and WHEREAS, it is desirable to enter into a service agreement with an escrow corporation for loan document preparation, fund disbursement, and financial management services in order to operate the rehabilitation programs; and WHEREAS, the proposal received from United State Escrow has been deter- mined to provide the best available services for the program needs; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San Francisco that the Agreement attached as Exhibit "A" is hereby approved and the City Manager is authorized to execute the Agreement~ I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of South San Francisco at a regular meeting held on the~22nd..~day of July , 198:~._~_, by the following vote: AYES: NOES: ABSTAIN: ABSENT: .Councilmembers John '!Jack" Drago,.Richard A..Haffey, Gus ~ ] Nicolopulos, Roberta.Cerri Teglia, and Mark N. Addiego None None None EXHIBIT A TO RESOLUTION NO. 91-87 SERVICE AGREEHENT BY ~dqDB~EN THE CITY OF SOUTH SAN [~19JtNCISCO ~ UNITED STATES ESCRO#, INC. THIS AGREEMENT entered into as of the 22nd day of July 19 87 , by and between the CITY OF SOUTH SAN FRANCISCO a municipal corporation, (hereinafter referred to \ as the "CITY") and UNITED STATES ESCROW, INC., a Corporation organized and existing under the laws of the State of California (hereinafter referred to as the "CONTRACTOR"). WITNE S SETH WHEREAS, a property improvement loan program is being undertaken by the CITY utilizing funds provided by the United States Department of Housing and Urban Development, and WHEREAS, the CITY desires to engage the CONTRACTOR to render services in connection with loans made by the CITY for property improvements within the CITY, and WHEREAS, the CONTRACTOR represents that it is qualified to perform services under this contract; NOW, THEREFORE, AGREE AS FOLLOWS: THE PARTIES HERETO DO HEREBY MUTUALLY S~OPE OF SERVICES When and as requested in writing by the CITY, the CONTRACTOR shall provide escrow and related services for property improvements in connection with loans made by the CITY to homeowner and/or property/business owners for the improvement of the property. Service shall include, but shall not be limited to, the areas listed below. I. REhABILITATION/REVITALIZATION SERVICES A. LOAN DOCUMENT PREPARATION In connection with each loan application, CONTRACTOR will provide on request from the CITY the following items: a. Credit Report b. Applicable PIRT or Title Report Upon loan approval the CITY will forward to the CONTRACTOR a document request memorandum containing required information to complete the preparation of loan documents. In accordance with the document request memorandum, the CONTRACTOR will prepare and forward to the CITY the following documents: a. Control Instructions b. Promissory Note c. Notice of Recision d. Deed of Trust or other securing document e. Request for Notice (when applicable) f. Truth in Lending Disclosure Statement g. Insurance application form to up-grade policy (when applicable) h. Other documents agreed to by CITY and CONTRACTOR insurance Upon receiving prepared documents, the CITY, in coordination with the borrower, will execute documents referred to above. The CITY will then return to the CONTRACTOR the following original signed documents: a. Control Instructions b. Deed of Trust c. Request for Notice d. Insurance Application e. Agreement for Rehabilitation (copy) f. Loan Proceeds Once signed, the Deed of Trust and any Request for Notice will be sent by the CONTRACTOR to the County for recording. B. FUND DISBURSEMENT SERVICES Upon loan approval the CITY shall send loan proceeds completed Control Instructions to the CONTRACTOR. Control Instructions shall include the following data: a. Owner(s) name and The 3 b. Contractor(s) name c. Job site address d. Dollar amount of funds being escrowed e. Instructions on how funds are to be disbursed f. Original signatures of Owner and CITY Representative or Agent When and as requested in writing by the CITY, the CONTRACTOR shall provide check disbursements to parties designated by CITY in connection with loans made by the CITY or its Agent for property improvement. Written ment Authorization containing information regarding amount of disbursement, the parties to be paid, contain signatures of CITY representatives authorized request disbursements. instructions shall be in the form of a Disburse- the and to Upon receipt of Disbursement CONTRACTOR shall identify and Authorization as follows: Authorization, the verify the Payment a. Amount requested is available b. Total loan amount equals amount escrowed c. Owner's and CITY Representative's signatures are the same as on the original escrow instructions St Upon the proper verification, the CONTRACTOR shall pre- pare a check for the amount shown on the payment authori- zation and shall send the check to the Agency. 4 At the request of the CITY, CONTRACTOR shall hold a retention fund for up to 30 days after recording of the Notice of Completion. CONTRACTOR shall record the Notice of Completion with the County. C. LOAN COLLECTION SERVICES The CITY will provide necessary loan information (loan terms, due dates, borrower's name and address etc.) to CONTRACTOR to activate account. 2. The CONTRACTOR will notify the borrower(s) in writing that all loan repayments shall be made to the CONTRACTOR. At the request of the CITY, the CONTRACTOR will establish an impound account for each borrower for payment of property taxes and/or insurance premiums pending on the property securing the loan. ® The CONTRACTOR will collect all loan payment proceeds received and forward to the CITY, less any authorized deductions. Once a month, the CONTRACTOR will provide to the CITY a status report of collection accounts showing payments made and remaining balance. Where collection of regular monthly payments is required, the CONTRACTOR will provide borrower with monthly notices indicating the total amount due and payable. Collection 5 proceeds are forwarded to the CITY along with a monthly status report of collection accounts. The CONTRACTOR will hold as a reserve 20% of one month's payment for check assurance· The CONTRACTOR will notify the borrower in writing of delinquent payments at intervals of fifteen (15), thirty (30) and sixty (60) days past the payment due date. Upon issuance of such sixty (60) day notice no further action shall be required of the CONTRACTOR with respect to the delinquent account unless otherwise instructed in writing by the CITY. The CONTRACTOR shall begin foreclosure proceedings if requested by the CITY. CONTRACTOR shall assess the borrower a late charge of six percent (6%) of the payment amount for payments more than ten (10) days late. The CONTRACTOR shall process and record a Substitution of Trustee and Full Reconveyance at borrower's expense, upon loan satisfaction or when property is sold. D. COMPUTER ACCOUNTING SERVICES The CONTRACTOR shall supply to the CITY a monthly computer printout of all transactions completed to date and the balances remaining in each account. E. MAINTENANCE OF FILES AND AVAILABILITY OF DATA CONTRACTOR lished under the period of five provisions of this (5) years after the shall maintain records of all accounts estab- Agreement for a closing of each account. CONTRACTOR shall, upon request and within thirty (30) days of such request, make available all records, financial and otherwise, dealing with its activities performed pursuant to the provisions of this Agreement to authorized auditors and monitors of the CITY or the United States Department of Housing and Urban Development. II. RENTAL RE~%BILITATION SERVICES A. CASH MANAGEMENT DEPOSITORY SERVICES 1 . The CONTRACTOR shall establish a separate Rental Reha- depository account with a local financial of CONTRACTOR'S choice for receipt funds received from HUD. Funds shall HUD Cash Management System and disbursed without delay by CONTRACTOR to payees upon receipt of the proper disburse- ment authorizations from the CITY. bilitation institution and deposit of be received via automatic transfers as required under the B. ACCOUNT ACTIVATION AND FUND DISBURSEMENT SERVICES Upon loan funds CONTRACTOR. The following data: loan proceeds or other non-Rental Rehabilitation and completed Control Instructions to Control Instructions shall include approval the CITY shall send private sector CITY the the a. Owner(s) name b. Contractor(s) name c. Job site address d. Dollar amount of funds being escrowed along with the participation breakdown in dollar amounts of non-Rental Rehabilitation and Rental Rehabilita- tion program funds e. Instructions on how funds are to be disbursed f. Original signatures of Owner and CITY Representative or Agent When and CONTRACTOR designated as requested in writing by the CITY, the shall provide check disbursements to parties by the CITY in connection with loans made by the CITY or its Agent for property improvements. Written instructions shall be in the form of a Disburse- ment Authorization containing information regarding the amount of disbursement, the parties to be paid, and shall contain original signatures of CITY Representatives authorized to request disbursements. 8 Each Disbursement Authorization submitted by the CITY to the CONTRACTOR shall indicate what portion of the disbursement is to be drawn from non-Rental Rehabilita- tion funds and what portion to be drawn from Rental Rehabilitation funds. A copy of the HUD Rental Rehabili- tation payment voucher shall be sent to the CONTRACTOR by the CITY along with the Disbursement Authorization in cases where monies are to be drawn from Rental Rehabili- tation funds (unless Item D4 of this Agreement applies). Upon receipt of Disbursement Authorization and HUD pay- ment voucher (if required), the CONTRACTIR shall identify and verify the payment authorization as follows: Se Amount requested is available (including any necessary HUD automatic transfer deposits as indicated by the submitted HUD payment voucher) Owner's signature(s) are the same as on the original escrow instructions CITY Representative's signature(s) are the same as on the original escrow instructions or on an approved signature list of those Representatives having the authority to authorize disbursements If there is a delay in the CONTRACTOR receiving HUD automa- tic transfers, then at the CITY'S request, the CONTRACTOR shall draw available monies from project non-Rental Rehabilitation funds to pay without delaying Rental Rehabilitation drawdown requests. The CONTRACTOR shall Co then reimburse the non-Rental Rehabilitation fund monies disbursed in covering Rental Rehabilitation drawdowns when HUD fund transfers are received. those fund Upon the proper verification, the CONTRACTOR shall pre- pare a check(s) for the amount shown on the payment authorizations and shall send the check(s) to the CITY. At the request of the CITY, CONTRACTOR shall hold a retention fund for up to 30 days after recording of the Notice of Completion. CONTRACTOR shall record the Notice of Completion with the County. HUD RENTAL REHABILITATION/CASH MANAGEMENT COMPLIANCE ACCOUNTING As required under HUD guidelines, CONTRACTOR shall maintain separate escrow accounting records of Rental Rehabilitation and non-Rental Rehabilitation funds. Separate accounting records for non-comingled non-Rental Rehabilitation and Rental Rehabilitation program funds will show receipt, disbursement and running balance entries for each project. Accounting information and records will be available to the CITY during project rehabilitation and will be submitted to the CITY at project completion. At the beginning of each project, the CONTRACTOR shall forward to HUD Central the project Pre-Rehabilitation Report upon completion by the CITY. 10 Upon receipt of disbursement authorization and copy of HUD payment voucher, the CONTRACTOR shall forward voucher to HUD Central prior to next request for Rental Rehabili- tation program funds. Copies of payment voucher as well as disbursement authorization will be kept by CONTRACTOR in a permanent project file. CONTRACTOR shall submit copy of the monthly reconcilia- tion of program activity to HUD Central as required under HUD Rental Rehabilitation guidelines. CONTRACTOR shall submit Project Completion Report to HUD Central within ninety (90) days of rehabilitation comple- tion and will retain a copy of the report in a permanent project file. De ADDITIONAL HUD RENTAL REHABILITATION ADMINISTRATIVE AND COMPLIANCE SERVICES Upon receipt of Control Instructions from the CITY, the CONTRACTOR shall contact HUD Central Office of Administra- tion to set up a new Rental Rehabilitation project account. The CONTRACTOR will be authorized with the proper HUD security clearance to gain access to HUD's Cash Management Information System required to set up new projects and request drawdowns. The CONTRACTOR will transmit to HUD Central, the information required to have the appropriate amount of Rental Rehabilitation funds allocated for the project. 11 Upon receipt of a disbursement authorization from the CITY, the CONTRACTOR shall contact HUD Central to make the appropriate drawdown request of Rental Rehabilitation fund monies as authorized by the CITY. submit the required project data voucher number, amount of request, The CONTRACTOR shall (i.e. project number, type of draw, dates of construction, etc.) to obtain drawdown approval. Approved drawdowns will be automatically transferred by HUD Central to CONTRACTOR'S depository account and disbursed by CONTRACTOR upon receipt (per Section II of this Agreement). Also upon receipt of a disbursement authorization from the CITY, the CONTRACTOR shall prepare a payment voucher for the amount requested from the Rental Rehabilitation fund. Payment vouchers required by HUD as a written follow-up document to the drawdown request, will be assigned a document number and submitted to HUD in sequential order for accountability. Ee RECONCILIATION OF RENTAL REHABILITATION DEPOSIT ACCOUNT ACTIVITY The CONTRACTOR shall prepare a monthly reconciliation of HUD's monthly bank disbursement report with the Rental Rehabilitation depository account activity for all HUD automatic transfers and disbursements. A Rental Reha- bilitation depository statement of account along with 12 copies of deposit receipts, payment vouchers, and checks will be attached to the reconciliation statement. The CONTRACTOR shall submit the prepared monthly reconci- liation to the CITY as well as HUD Central as required. F. MAINTENANCE OF PERMANENT PROJECT FILES CONTRACTOR shall compile all pertinent project data into a permanent file for CITY and HUD auditing. Each project file shall contain copies of all deposits, checks, payment vouchers, disbursement authorizations, pre-rehabilitation and project completion reports and separate accounting statements of non-Rental Rehabilitation and Rental Rehabilitation fund activity. As required by HUD, show that: project files will be prepared to At no time was there a comingling of Rehabilitation funds with private or Agency funds. Rental other At no time did draws on Rental Rehabilitation funds exceed draws on non-Rental Rehabilita- tion funds. G. COMPUTER ACCOUNTING SERVICES CONTRACTOR shall supply to the CITY a monthly computer print-out of all transactions completed to date and the balance remaining in each account. 13 H. MAINTENANCE OF FILES AND AVAILABILITY OF DATA CONTRACTOR shall maintain records of all accounts estab- lished under the provisions of this Agreement for a period of five (5) years after the closing of each account. CONTRACTOR shall, upon request and within thirty (30) days of such request, make available all records, financial and otherwise, dealing with its activities performed pursuant to the provisions of this Agreement to authorized auditors and monitors of the CITY or the United States Department of Housing and Urban Development. III. SECTION 312 RE~%BILITATION LOAN SERVICES SECTION 312 LOAN PACKAGING AND UNDERWRITING ANALYSIS SERVICES In the event the CITY wishes to package and underwrite a loan under the Section 312 Rehabilitation Loan Program, the CITY shall submit to CONTRACTOR a 312 Loan Packaging Request for Preliminary Report and completed loan application on HUD Form 6230. CONTRACTOR will be responsible for ordering the following: 1. Employment verification 2. Income verification 3. Deposit verification 4. Credit history 14 Upon receipt of above reports, CONTRACTOR will issue to CITY a letter of favorable risk or questionable risk. If borrower is favorable risk, CONTRACTOR will continue to package loan. If borrower is questionable risk, CONTRACTOR will discontine packaging loan until letter of decision to continue has been received from the CITY. Upon receipt of request to continue packaging from CITY or in view of preliminary favorable risk, CONTRACTOR will order all additional reports necessary to provide CITY with data necessary for CITY to make a final underwriting decision. Upon review of all reports and documents, CONTRACTOR will issue to Agency an underwriting analysis along with all supporting documents. For loans submitted on HUD Application Form 6230, CONTRACTOR will analyze Affordability, Credit History, Value of the Security, and Scope of Rehabilitation. B. LOAN DOCUMENT PREPARATION Upon loan approval the CITY will forward to the CONTRACTOR a document request memorandum containing required information to complete the preparation of loan documents. In accordance with the document request memorandum, the CONTRACTOR will prepare and forward to the CITY the following documents: 15 a. Control Instructions b. Project Set Up Form c. Notice of Right to Cancel d. Repayment Schedule e. Truth in Lending Disclosure Statement and Amount Financed Itemization (two copies) f. Promissory Note and Risk Premium Rider g. Security Instrument h. Rehabilitation Loan Agreement i. Written opinion of Public Body Counsel (form letter provided for Agency Counsel's signature) j. Insurance Application Form(s) to upgrade Insurance (when applicable) k. Post Settlement Transmittal Letter (two copies) Upon receiving prepared documents, the CITY, in coordination with the borrower, will execute documents referred to above. The CITY will then return to the CONTRACTOR the following: a. Control Instructions (original) b. Promissory Note and Risk Premium Rider (original) c. Security Instrument d. Rehabilitation Loan Agreement (original) e. Completed Insurance Application or certified copy of Insurance Policy and copies of most recently paid tax bills f. Opinion of Public Body Counsel 16 g. Copy of Application (HUD Form 6230) h. Truth in Lending Disclosure Statement (original) i. Notice of Right to Cancel (original) j. Post Settlement Transmittal Letter k. Check for application fee and check for taxes and insurance escrow deposit (if not part of loan proceeds) 1. Additional public or private funds required for rehabilitation The executed Promissory Note, Security Instrument, and Rehabilitation Loan Agreement will be sent by CONTRACTOR to the County for recording. Following loan settlement, CONTRACTOR will transmit loan documentation to the Master Servicer. Transmittal documents include: a. Post Settlement Transmittal Letter (two copies) b. Promissory Note and Risk Premium Rider c. Security Instrument (original) d. Rehabilitation Loan Agreement (original) e. Title evidence f. Check for application fee or statement that application provides for deduction from loan proceeds g. Memorandum of Insurance or certified copy of insurance policy and copies of most recently paid tax bills h. Opinion of Public Body Counsel 17 i. Copy of Application (HUD Form 6230) j. Servicer loan set-up and additional information form k. Truth in Lending Disclosure Statement (original) 1. Notice of Right to Cancel m. Check for taxes and insurance escrow deposit (if not part of the loan proceeds) CONTRACTOR will order upgraded insurance, loss payee. naming HUD as C. SECTION 312 CASH MANAGEMENT SERVICES 1. CASH MANAGEMENT DEPOSITORY SERVICES In the event the CITY makes a loan under the Section 312 Rehabilitation Loan Program, the CONTRACTOR will establish a separate Section 312 depository account with a local financial institution of its choice. The financial institution shall be federally insured and be a member of the Automated Clearing House. Funds shall be received via the Automated Clearing House System as required under the HUD Cash Management System and disbursed without delay by CONTRACTOR to payees upon receipt of the proper disbursement authorizations from the CITY. If additional private or public funds will be used to supplement a Section 312 loan, a separate sub- escrow account will be maintained for those monies. 18 9. ~CCOUNT ~CTIVATXON ~ND FUND DXSBI]RS~ OPTION A -- MULTIPLE DISBURSEMENTS & DRAWDOWNS a® Upon loan approval and following project set up with the Cash Management Contractor by authorized HUD field office personnel, CITY shall forward completed Control Instructions and any public or private funds to CONTRACTOR. The Control Instructions shall include the following data: 1) Owner(s) name 2) Contractor(s) name 3) Job site address 4) Dollar amount of funds being escrowed along with the participation breakdown in dollar amounts of non-Section 312 and Section 312 program funds when applicable 5) Instructions on how funds are to be disbursed 6) Original signatures of Owner, Construction Contractor, and City Representative or Agent 0 CONTRACTOR will be authorized through the HUD office of Information Policies and Systems to gain access to the HUD Cash Management Contractor to request drawdowns. Upon receipt of a disbursement authorization by CITY and signature Contractor the a disbursement voucher of borrower, and of when requesting a with required Construction Construction 19 de Contractor's identify and follows: progress payment, verify the payment CONTRACTOR shall authorization as 1) 2) 3) Amount requested is available Owner's signature(s) and Construction Con- tractor's signature(s) are the same as on the original escrow instructions City Representatives signature(s) are the same as on the original escrow instructions or on an approved signature list of those Representatives having the authority to authorize disbursements Where applicable, each Disbursement Authorization submitted by the CITY to the CONTRACTOR shall indicate what portion of the disbursement is to be drawn from non-Section 312 funds and what portion is to be drawn from Section 312 funds. Contractor shall then contact the HUD Cash Management Contractor by phone to make the appropriate drawdown. The CONTRACTOR shall submit the required project data (i.e., project number, voucher number, amount of request, type of disbursement [interim or final]) to obtain drawdown approval. Approved drawdowns will be automatically transferred by HUD Cash Management Contractor to CONTRACTOR'S depository account and immediately disbursed by CONTRACTOR upon receipt. The CONTRACTOR shall 2O prepare a check(s) for the amount shown payment authorizations and shall send the to the CITY. on the check(s) e® Payment vouchers required by the HUD Cash Management Contractor as written follow-up documentation of the drawdown request, will be submitted to HUD Cash Management Contractor on the same day as the drawdown request is made. OPTION B -- MULTIPLE DISBURSEMENT & SINGLE DRAW DOWN Se Upon loan approval and following project set up with the Cash Management Contractor by authorized HUD field office personnel, CITY shall forward completed Control Instructions and all project funds to CONTRACTOR. The Control Instructions shall include the following data: 1) Owner(s) name 2) Contractor(s) name 3) Job site address 4) Dollar amount of funds being escrowed along with the participation breakdown in dollar amounts of non-Section 312 and Section 312 program funds when applicable 5) Instructions on how funds are to be disbursed 6) Original signatures of Owner, Construction Contractor, and City Representative or Agent 21 CONTRACTOR will be authorized through the HUD office of Information Policies and Systems to gain access to the HUD Cash Management Contractor to request a single reimbursement drawdown. Upon receipt of a disbursement authorization by the CITY and signature Contractor Contractor's identify and follows: a disbursement voucher of borrower, and of when requesting a progress payment, verify the payment with required Construction Construction CONTRACTOR shall authorization as 1) 2) 3) Amount requested is available Owner's signature(s) and Construction Con- tractor's signature(s) are the same as on the original escrow instructions City Representatives signature(s) are the same as on the original escrow instructions or on an approved signature list of those Representatives having the authority to authorize disbursements The CONTRACTOR shall prepare a check(s) for the amount shown on the payment authorizations and shall send the check(s) to the CITY. Upon final disbursement, CONTRACTOR shall then contact the HUD Cash Management Contractor by phone to make the appropriate drawdown. CONTRACTOR shall submit the required project data (i.e., project 22 number, voucher number, amount of request, type of disbursement) to obtain drawdown approval. Approved drawdown will be automatically transferred by HUD Cash Management Contractor to CONTRACTOR'S depository account. Upon receipt of payment authorization and receipt of 312 funds to CONTRACTOR'S depository account; the CONTRACTOR will cut a check to the CITY for project reimbursement. Payment vouchers required by the HUD Cash Management Contractor as written follow-up documentation of the drawdown request, will be submitted to HUD Cash Management Contractor on the same day as the drawdown request is made. RECONCILIATION OF 312 ESCROW ACCOUNT AND PROJECT ACTIVITY The CONTRACTOR shall prepare a monthly reconcili- ation of the monthly Bank Disbursement Report (received from HUD Cash Management Contractor) with the Section 312 depository account activity for all automatic transfers and disbursements. A Section 312 depository statement of account along with copies of deposit receipts, payment vouchers, and checks will be attached to the reconciliation statement. Be The CONTRACTOR shall submit the prepared monthly reconciliation to the CITY. 23 HAINTENANCE OF PERI, ANENT PROJECT FILES AND CASB HANAGEHENT COHPLIANCE ACCOUNTING ae CONTRACTOR shall compile all pertinent project data into a permanent project file for CITY and HUD auditing. Each project file will contain the following data: 10) 11) 12) 1) Borrower name 2) Cash management loan number 3) Date of submission of the application to HUD 4) Obligation date 5) Settlement date 6) Amortization Effective Date 7) Drawdown requests -- amount and date 8) Remaining funds availability 9) Date funds received at local financial institution Dates and amounts of check issuance Monthly escrow account reconciliations Where applicable, separate accounting state- ments of non-Section 312 fund activity Where applicable, and as required by HUD, files will be prepared to show that: project 1) At no time was there a commingling of Section 312 funds with private or other public funds 2) At no time did draws on Section 312 funds exceed draws on non-Section 312 funds 24 LOAN CLOSEOUT After the Amortization Effective Date is reached or the final drawdown has been released (whichever comes first), CONTRACTOR shall prepare Notice to Superior Lienholder (when applicable) requesting notification to HUD in the event of default by the borrower, a Final Transmittal Letter to the Master Servicer (two copies), and a final Disposition of Funds Statement. documents will be forwarded to CITY to prepare for transmittal to the Master Servicer. These loan 6. COMPUTER ACCOUNTING SERVICES CONTRACTOR shall supply to the CITY a monthly computer print-out of all transactions completed to date and the balance remaining in each account. 7. RETENTION OF FILES AND AVAILABILITY OF DATA ae CONTRACTOR shall retain records of all accounts established under the provisions of this Agreement for a period of three (3) years after the closing of each account. CONTRACTOR shall, upon request and within thirty (30) days of such request, make available all records, financial and otherwise, dealing with its activities performed pursuant to the provisions of this Agreement to authorized auditors and monitors of the CITY or the United States Department of Housing and Urban Development. 25 SCHEDUI~E OF FEES In return for the services provided by the CONTRACTOR, the CITY shall pay fees to the CONTRACTOR according to the following schedule: A. LOAN DOCUMENT PREPARATION SERVICES For each loan application for which documents are prepared: $125.00 plus outside costs including, but not limited to, title, credit, and recording fees. For each loan application for which title and credit report have been supplied by CONTRACTOR, but which is thereafter cancelled without performance of loan document preparation or disbursement services: a cancellation fee of $37.50 plus outside costs for title and credit reports. A fee of $10.00 will be charged to CITY for each separate document to be redrawn due to actions by the CITY. In the event the CITY wishes the CONTRACTOR to order employment and income verifications, an additional fee of $15.00 for each loan application will be charged. 26 B. FUND DISBURSEMENT SERVICES ~or services (excluding 312 disbursement) are performed: recording fees· each loan application for which escrow disbursement and Rental Rehabilitation an additional $67.50 plus C. LOAN COLLECTION SERVICES For collection of monthly payment loans, a monthly fee of 1/24 of 1% of borrower's original loan amount or $8.00 whichever is greater, plus a one time account set-up charge of $20.00 per loan. Collection fees for existing loans will be based on the current loan balance at the time of transfer to CONTRACTOR. A one time $45.00 per loan to maintain collection reporting for non-monthly payment loans. charge of accounting For loans requiring the monitoring of property tax, a fee of $42.50 per loan for outside costs. D. SECTION 312 FULL SERVICE 1. Pre Approval Packaging and Issuance of Preliminary Loan Risk Report 2. Full Packaging 3. Underwriting Analysis 4. Loan Document Preparation 5. Cash Management Services Option A Option B $ 50.00 $ 50.00 $300.00 $150.00 $175.00 $ 75.00 27 Plus outside costs includin9, but not limited to credit reports, and recordation· title, If City utilizes all 312 servicing (one through five), CONTRACTOR will waive both the pre-approval and full packaging fee. For any loan for which a Preliminary Loan Risk Report is issued and which is thereafter cancelled, the fee will be $50.00 plus outside costs. E. RENTAL REHABILITATION SERVICES fee of 3/4 of 1% of the total amount escrowed A minimum fee of $225.00 and a maximum of $750.00 Rental Rehabilitation services defined in Section II this Agreement. with a for of IV. ADDITIONAL TERMS A. EQUAL OPPORTUNITY During the performance of this Agreement, agrees as follows: the CONTRACTOR 1. The CONTRACTOR will not discriminate against any employee or applicant for religious creed, physical handicap, employment because of their race, color, national origin, ancestry, medical condition, marital status, or 28 sex. The CONTRACTOR will take affirmative action to ensure that the applicants are employed, and that employees are treated during employment without regard to their race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, or sex. Such action shall include, but not be limited to, the following: employment, upgrading, demo- tion or transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. The CONTRACTOR will, in all solicitations or advertise- ments for employees placed by or on behalf of the CONTRACTOR, state that all qualified applicants will receive consideration for employment without regard to race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, or sex. The CONTRACTOR will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will be binding upon each subcontractor, provided that the foregoing provi- sions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials. 29 B. REPRESENTATIONS As an inducement to the execution of this Agreement, the CONTRACTOR represents and agrees that it has, and will continue to have, adequate and proper facilities and personnel to perform the services and work agreed to be performed by it hereunder; that it is duly qualified by law not employed any person to solicit or procure this Agreement, and has not made, and will not make, any payment or any agreement for the payment of any commission, percentage, brokerage, contingent fee or other compensation in connection with the procurement of this Agreement. to perform such services and work, and that it has C. TERMINATION OF SERVICES In the hereof, notice event of breach of any condition or provision the CITY shall have the right, by prior written to the CONTRACTOR, to terminate its employment hereunder and cancel this Agreement and have the work called for hereby otherwise performed, without prejudice to any other rights or remedies of the CITY. The CITY shall have the benefit of such work as may have been completed up to the time of such termination and with respect to any part which shall have been delivered to and accepted by the CITY, there shall be an equitable adjustment of compensation. 3O Irrespective of any default hereunder, the CITY may also, at any time at its discretion, terminate this Agreement, in whole or in part, by giving the CONTRACTOR thirty (30) days written notice thereof and in such event, the CONTRACTOR shall be entitled to receive compensation specified herein for all work completed and accepted prior to such thirty (30) days notice of termination or cancellation; an equitable adjustment shall be made, as compensation to the CONTRACTOR to the date of such termination or cancellation, but not yet delivered to the CITY. The CONTRACTOR at its discretion may terminate this Agreement, in whole or in part, by giving the CITY thirty (30) days written notice. The term of the Agreement shall commence upon execution of this Agreement by both parties and shall continue for one year thereafter. This Agreement shall automatically renew for successive one year terms. 31 IN WITNESS HEREOF, the CITY and CONTRACTOR have executed this Agreement as of the date first hereinabove set forth. APPROVED AS TO CONTENT: BY: CITY OF SOUTH SAN FRANCISCO a Municipal Corporation CITY MANAGER APPROVED AS TO FORM: UNITED STATES ESCROW, INC. a California Corporation CITY g~TTORNEY BY: VICE PRESIDENT ATTEST: 32