HomeMy WebLinkAboutANTIOCH MINISTRIES $440,030.00 NEIGHBORHOOD STABILATION PROGRAM 1 CDG PROGRAM 1CONTRACT
between
AUGUSTA, GEORGIA
And
ANTIOCH MINISTRIES, INC.
in the amount of
$440,030.00
Four Hundred Forty Thousand and Thirty Dollars & 00 /100
for Fiscal Year 2010
Providing funding for
NEIGHBORHOOD STABILATION PROGRAM I
&
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
"Florence Street Multi - Family Project"
THIS AGREEMENT ( "Contract'), is made and entered into as of the _ day of June 2010 ( "the
effective date ") by and between Augusta, Georgia, acting through the Housing and Community
Development Department (hereinafter referred to as "AHCD ") - with principal offices at 925 Laney
Walker Blvd., 2 nd Floor, Augusta, Georgia 30901, as party of the first part, hereinafter called
"Augusta or AHCDD ", and Antioch Ministries, Inc., a developer, organized pursuant to the Laws of
the State of Georgia, hereinafter called "AMI" as party in the second part.
1 i1: W w&lml.1:1
WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development
(hereinafter called HUD) as a Neighborhood Stabilization Program Participating Jurisdiction, and has
received Neighborhood Stabilization (hereinafter called NSP or the NSP Program) funds from HUD
for the purchase of foreclosed or abandoned NSPs to rehabilitate, resell, or redevelop these NSPs in
order to stabilize neighborhoods and stem the decline of house values of neighboring NSPs; as defined
by HUD; and
WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the
supply of affordable housing for eligible low and moderate income families through eligible uses of its
NSP Program grant funds, as described in the Augusta - Richmond County Consolidated Plan 2010-
2015, and the Year 2010 Annual Action Plan; and
WHEREAS, Augusta wishes to enter into a contractual agreement with Antioch Ministries, Inc. for
the administration of NSP eligible affordable housing development activities; and
WHEREAS, this activity has been determined to be eligible NSP activity and will meet one or more
of the national objectives and criteria outlined in Title III of Division B of the Housing and Economic
Recovery Act, 2008(HERA).
WHEREAS, this activity has been determined to be an eligible CDBG activity therefore the
developer is required to comply with the Community Development Block Grant Program regulations
at 24 CFR Part 570 and the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970, as amended, at 49 CFR 24.
WHEREAS, Antioch Ministries, Inc. has been selected and approved through a solicitation process
for development partners to assist in the redevelopment of NSP eligible communities based on
designated zip codes selected prior by HUD as areas of greatest need.
WHEREAS, Antioch Ministries, Inc. has agreed to provide services funded through this contract free
from political activities, religious influences or requirements; and
WHEREAS, Antioch Ministries, Inc. has requested and Augusta has approved a total of $ 440,030.00
in loan funds to perform NSP eligible activities as described in Article 1, below:
NOW, THEREFORE, the parties of this agreement for the consideration set forth below, do here and
now agree to the following terms and conditions:
ARTICLE I. SCOPE OF SERVICES
A. Scope of Services
Project Description: Antioch Ministries, Inc. agrees to utilize approved NSP funds to support project
related costs associated with the Florence Street Project. This project is a multi - family affordable
housing effort which involves development and construction of new multi- family housing units along
the Florence Street. Under this agreement:
Perform new construction services for 2 multi- family NSPs
- Perform all required and requested marketing and advertising activities; in accordance with
"NSP" program "Fair Housing" regulations
Perform all functions required to ensure that the property has full occupancy of those persons
meeting the requirements of the NSP 25% set aside for households at or below 50% AMI in
accordance with HUD regulations for LH 25 and that all agreements for residency and
services provided meet such guidelines and requirements of such a facility.
All projects are to posses the following required components:
• Evidence of additional financing resources "Leveraging"
• Materials list to include brand name and/or model number and price of all lighting,
flooring, cabinets, plumbing fixtures and appliances
• At the time of title transfer to Antioch Ministries, Inc., evidence that a qualified tenant
has been identified based on total household income for all residents equaling no more
than 50% of AMI for that given year prior to the assigning of a lease agreement.
B. Use of Funds NSP funds shall be used by Antioch Ministries, Inc. for the purposes and
objectives stated in Article I, Scope of Services, and Exhibit "A" of this Agreement. The use
of NSP funds for any other purpose(s) is not permitted. The following summarizes the
proposed uses of NSP Program funds under this Agreement:
1. Construction
An amount not to exceed $440,030.00 in a loan shall be expended by Antioch Ministries, Inc.
from NSP Program funds for construction costs related to the development of 2 affordable
multi - family housing units as part of the Florence Street Project. The design and specifications
have been approved by AHCD prior to construction (Exhibit D). Funds will be used to assist
with the cost of all construction related fees. These units will be constructed by Antioch
Ministries, Inc. and managed as low income rental housing to eligible low and very-low
income tenants for a period of no less than twenty -five (25) years.
The addresses for this project
(a) 1128/1130 Florence Street Augusta, GA 30901
(b) 1134 and 1136 Florence Street Augusta, GA 30901
Antioch Ministries, Inc. will provide 25% of the construction cost through a construction loan.
Loan estimated to be approximately $145,146.00.
Developer's Fee
An amount not to exceed $93,000.00 in a grant shall be expended to Antioch Ministries, Inc.
in support of the project development fees.
Construction Interest
An amount not to exceed $2905.00 shall be expended to Antioch Ministries, Inc. in support of
repayment of principal and simple interest. Antioch Ministries, Inc. has been awarded a line
of credit with an interest rate of 6.25 %. AHCD agrees to pay interest on loan until
construction of the units is complete and a Certificate of Occupancy (C /O) is awarded.
Antioch Ministries, Inc. must submit interest payment statements in order to be reimbursed.
NSP funds shall be used by Antioch Ministries for the purposes and objectives stated in
Article I, Scope of Services, and Exhibit "A" of this Agreement. The use of NSP funds for
any other purpose(s) is not permitted. The following summarizes the proposed uses of CDBG
Program funds under this Agreement:
C. Program Location and Specific Goals to be Achieved
Antioch Ministries, Inc. shall conduct project development activities and related services in its
project area (also known as the Laney Walker Community) that incorporates the following
boundaries: l I Street on the West; 12 Street on the East; Cedar Road on the South; and
Laney Walker Boulevard on the North and its designated geographic boundaries approved by
AHCD.
D. Project Eli ig bility Determination
It has been determined that the use of NSP funds by the Antioch Ministries, Inc. will be in
compliance with Division B, Title III of the Housing and Economic Recovery Act (HERA) of
2008. Notwithstanding any other provisions of this contract, Antioch Ministries, Inc. shall
provide activities and services as described in the description of the project, including use of
funds, its goals and objectives, tasks to be performed and a detailed schedule for completing
the tasks for this project as provided in Exhibit A of this contract.
ARTICLE II. BUDGET AND METHOD OF PAYMENT
Antioch Ministries, Inc. will be compensated in accordance with this Article 11, Budget and Method of
Payment, that specifically identifies the use of NSP and other project funding as represented in Article
ILC.2 of this Agreement. Antioch Ministries, Inc. will carry out and oversee the implementation of
project to be funded with NSP funds. Antioch Ministries, Inc. agrees to perform the required services
under the general coordination of the Augusta Housing and Community Development Department. In
addition and upon approval by Augusta, Antioch Ministries, Inc., may engage the services of outside
professional services consultants and contractors to help carry out the program and projects.
A. Augusta shall designate and make NSP Project funds available in the following manner:
1. Augusta agrees to pay Antioch Ministries, Inc, a maximum of $ 440,030.00 under this
agreement for project expenses incurred as outlined in ARTICLE 1, Scope of Services, subject
to Antioch Ministries, Inc. compliance with all terms and conditions of this agreement and the
procedures for documenting expenses and activities as set forth in ARTICLE V.
2. The method of payment shall be on a reimbursement basis. The Reimbursement Form can be
found in Appendix B. For invoicing, Antioch Ministries, Inc. will include documentation
showing proof of payment in the form of a cancelled check or check register and completed
reimbursement form that includes amount requested, amount remaining and specific line items
names that relate to contract budget found in Appendix A.
3. AHCD will monitor the progress of the project and Antioch Ministries, Inc.'s performance on
a weekly basis with regards to the production of housing units and the overall effectiveness of
project.
4. Upon the termination of this agreement, any unused or residual funds remaining shall revert to
Augusta and shall be due and payable on such date of the termination and shall be paid no
later than thirty (30) days thereafter.
5. Funds may not be transferred from line to line item in the project budget without the prior
written approval of Augusta.
6. The use of funds described in this agreement is subject to the written approval of the U. S.
Department of Housing and Urban Development.
7. This Agreement is based upon the availability of NSP Program Funds.
8. Antioch Ministries, Inc. will make reasonable efforts to secure additional funding sources
using the $ 440,030.00 in NSP funds awarded under this agreement as leverage to support the
"Florence Street Project ". A copy of this letter will be attached in Appendix D.
B. Project Financing
The Augusta Housing and Community Development Department (AHCD) will fund no more
than seventy -five percent (75 %) of the total development costs of this project, and seeks to
provide Antioch Ministries, Inc. with the necessary NSP Funding Agreement upon receipt of
Antioch Ministries, Inc. financial commitment letter for 25% of the total cost of construction
from a reputable financial institution.
Additionally, this funding is being committed specifically for construction related costs as
well as for other project related costs as described below:
• Antioch Ministries, Inc.'s construction interest will be subsidized by AHCDD via its funding
allocation at a rate not to exceed 6.25% for 12 months or when construction is complete or
whichever occurs first.
All funding is being provided at a 0% non - amortizing loan to remain as a second lien against
the property for no less than twenty -five (25) years as a guarantee of tenant affordability and
assurance of HUD regulations under the LH25 set aside. At which time designated as the
conclusion of the full twenty -five year period, starting from title transfer of the property into
the name of Antioch Ministries, Inc., the full balance NSP1 funding into the project will be
fully forgiven.
C. Timetable for Completion of Project Activities
Antioch Ministries, Inc. shall obligate the designated NSP funds within thirteen (13) months
of the date of execution of this Agreement. Based on the budget outlined in C.2 below,
Antioch Ministries, Inc. will provide a detailed outline of critical project milestones and
projected expenditures during the course of the development project as Exhibit C. These
documents will become an official part of the contractual agreement and provide the basis for
overall project performance measurements.
D. Project Budget: Limitations
1. Antioch Ministries shall be paid a total consideration of no more than $440,030.00 for full
performance of the services specified under this Agreement. Any cost above this amount shall
be the sole responsibility of the Antioch Ministries, Inc. It is also understood by both parties
to this contract that the funding provided under this contract for this specific project shall be
the only funds provided by Augusta — unless otherwise agreed to by Augusta and Antioch
Ministries, Inc.
2. Antioch Ministries, Inc. shall adhere to the following budget in the performance of this
contract.
A. Project Activity Cost $ 580,585.00
Construction 342, l 49.00
Construction Interest (NSP) 2,905.00
Developer's Fee (NSP) 93.000.00
TOTAL NSP /CDBG PROJECT COST: $440,030.00
ARTICLE III. RESALE/RECAPTURE PROVISIONS 124 CFR 92.254(5)]
1. The Resale/Recapture Provisions in this Article III shall ensure compliance with the NSP
Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). 24 CFR
92.254 requires that the City, its sub - recipients, and CHDOs follow certain resale /recapture
restrictions with regard to its NSP - funded homebuyer program. Each property sold to a NSP
recipient will remain affordable for the duration of the affordability period or the City will use
the recapture option.
A. Recapture Provisions 124 CFR 92.254(5)(ii
If the eligible recipient (who received NSP Program funding or other development subsidy
funds from Augusta) sells their property, then AHCD shall recapture the NSP funds which
will ensure that the recaptured NSP Program funds are reinvested in other affordable housing
in Augusta for low and moderate- income persons. This shall be accomplished through deed
restrictions, property liens, and contractual obligations, as described in Article I.B of this
Agreement. The Recapture Provision will remain in effect for the full twenty -five (25) year
period as described in Article II.B of this agreement.
ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the Antioch Ministries, Inc. (whichever date is later) and shall end at the completion of all
program activities, within the time specified in Article I.D, or in accordance with ARTICLE IX:
Suspension and Termination.
ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay- for - performance contract and in no event shall Augusta provide advance funding to
the Antioch Ministries, Inc., or any subcontractor hereunder. All payments to the Antioch
Ministries, Inc. by Augusta will be made on a reimbursement basis.
B. Antioch Ministries, Inc. shall maintain a separate account and accounting process for NSP
funding sources.
C. Antioch Ministries, Inc. shall not use these funds for any purpose other than the purpose set
forth in this Agreement.
D. Subject to Antioch Ministries, Inc. compliance with the provisions of this Agreement, Augusta
agrees to reimburse all budgeted costs allowable under federal, state, and local guidelines.
E. All purchases of capital equipment, goods and services shall comply with the procurement
procedures of OMB Circular A -110 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education, Hospitals and Other Non -Profit
Organizations" as well as the procurement policy of Augusta.
F. Requests by Antioch Ministries, Inc. for payment shall be accompanied by proper
documentation and shall be submitted to AHCD, transmitted by a cover memo, for approval no
later than thirty (30) calendar days after the last date covered by the request. For purposes of this
section, proper documentation includes: "Reimbursement Request" form supplied by HCD,
copies of invoices, receipts, other evidence of indebtedness, budget itemization and description
of specific activities undertaken. Invoices shall not be honored if received by Augusta later than
sixty (60) calendar days after expiration date of this Agreement. Reimbursement request form is
in Appendix A.
G. Antioch Ministries, Inc. shall maintain an adequate financial system and internal fiscal controls.
H. Developer's fee will be determined after construction is complete and C/O is obtained.
I. Unexpended Funds Unexpended funds shall be retained by Augusta. Upon written request,
Augusta may consider the reallocation of unexpended funds to eligible projects proposed by the
Antioch Ministries, Inc.
ARTICLE VIII. ADMINISTRATIVE REQUIREMENTS
A. Conflict of Interest
Antioch Ministries, Inc. agrees to comply with the conflict of interest provisions contained in
24 CFR 85.36, 570.611, OMB Circular A -110 and OMB Circular A -102 as appropriate.
This conflict of interest provision applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of J &B Construction. No person described
above who exercises, may exercise or has exercised any functions or responsibilities with
respect to the NSP activities supported under this contract; or who are in a position to
participate in a decision - making process or gain inside information with regard to such
activities, may obtain any financial interest or benefit from the activities, or have a financial
interest in any contract, sub - contract, or agreement with respect to the contract activities,
either for themselves or those with whom they have business or family ties, during their tenure
or for one year thereafter. For the purpose of this provision, "family ties ", as defined in the
above cited volume and provisions of the Code of Federal Regulations, include those related
as Spouse, Father, Mother, Father -in -law, Mother -in -law, Step - parent, Children, Step-
children, Brother, Sister, Brother -in -law, Sister -in -law, Grandparent, Grandchildren of the
individual holding any interest in the subject matter of this Agreement. J &B Construction in
the persons of Directors, Officers, Employees, Staff, Volunteers and Associates such as
Contractors, Sub - contractors and Consultants shall sign and submit a Conflict of Interest
Affidavit. (Affidavit form attached as part in parcel to this Agreement)
B. Augusta may, from time to time, request changes to the scope of this agreement and
obligations to be performed hereunder by Antioch Ministries, Inc. In such instances, Antioch
Ministries, Inc. shall consult with HCD /Augusta on any changes that will result in substantive
changes to this Agreement. All such changes shall be made via written amendments to this
Agreement and shall be approved by the governing bodies of both Augusta and Antioch
Ministries, Inc.
C. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in
Appendix A and are attached and included as part in parcel to this Agreement.
ARTICLE IX. OTHER REQUIREMENTS
A. Fair Housing
Antioch Ministries, Inc. agrees that it will conduct and administer NSP activities in
conformity with Pub. L. 88 -352, "Title VI of the Civil Rights Act of 1964 ", and with Pub. L.
90 -284 "Fair Housing Act" and that it will affirmatively further fair housing. One suggested
activity is to use the fair housing symbol and language in Antioch Ministries Inc.'s
publications and/or advertisements. (24 CFR 570.601).
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B. Ownership Interest
Antioch Ministries, Inc. agrees that the ownership in the housing assisted units must meet the
definition of "HOMEownership" in §92.2.
C. Non - Discrimination
Antioch Ministries, Inc. agrees to comply with 24 CFR Part I, which provides that no person
shall be excluded from participation in this project on the grounds of race, color, national .
origin, or sex; or be subject to discrimination under any program or activity funded in whole
or in part with federal funds made available pursuant to the Act.
D. Labor Standards
1. General Antioch Ministries, Inc. agrees that in instances in which there is
construction work over $2,000 financed in whole or in part with NSP funds under this
Agreement, Antioch Ministries, Inc. will adhere to the Davis -Bacon Act (40 USC
276), as amended, which requires all laborers and mechanics working on the project
to be paid not less than prevailing wage -rates as determined by the Secretary of Labor.
By reason of the foregoing requirement, the Contract Work Hours and Safety
Standards Act (40 USC 327 et seq.) also applies. These requirements apply to the
rehabilitation of residential property only if such property contains eight or more
units. (24 CFR 570.603)
Labor Matters No person employed in the work covered by this contract shall be discharged
or in any way discriminated against because he or she has filed any complaint or instituted or
caused to be instituted any proceeding or has testified or is about to testify in any proceeding
under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR
570.603)
E. Environmental Standards
Antioch Ministries, Inc. agrees that in accordance with the National Environmental Policy Act
of 1969 and 24 CFR Part 58, it will cooperate with Augusta/HCD in complying with the Act
and regulations, and that no activities will be undertaken until notified by Augusta/HCD that
the activity is in compliance with the Act and regulations. ,Prior to beginning any project
development activity, an environmental review must be conducted by the Augusta- Richmond
County Planning Department pursuant to (24 CFR 570.604).
F. Flood Insurance
Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001 - 4128), J &B
Construct agrees that NSP funds shall not be expended for acquisition or construction in an
area identified by the Federal Emergency Management Agency (FEMA) as having special
flood hazards (representing the 100 -year floodplain). Exceptions will be made if the
community is participating in the National Flood Insurance Program or less than a year has
passed since FEMA notification and flood insurance has been obtained in accordance with
section 102(a) of the Flood Disaster Protection Act of 1973.
G. Displacement and Relocation
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Antioch Ministries, Inc. agrees to take all reasonable steps to minimize displacement of
persons as a result of NSP assisted activities. Any such activities assisted with NSP funds will
be conducted in accordance with the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (URA) and the Housing and Community Development Act
of 1974 (24 CFR 570.606).
H. Non- Discrimination in Employment
Antioch Ministries, Inc. agrees to comply with Executive Order 11246 and 12086 and the
regulations issued pursuant thereto (41 CFR 60) which provides that no person shall be
discriminated against on the basis of race, color, religion, sex or national origin. Antioch
Ministries, Inc. will in all solicitations or advertisements for employees placed state that all
qualified applicants will receive consideration for employment without regard to race, color,
religion, sex, national origin or familial status.
I. Employment and Business Opportunities
Antioch Ministries, Inc. agrees that low and moderate income persons residing within
Augusta - Richmond County; and that contracts for work in connection with the project be
awarded to eligible business concerns which are located in or owned in substantial part by
persons residing in Augusta - Richmond County - (24 CFR 570.697).
Lead -Based Paint
In accordance with Section 92.355 of the NSP Regulations and Section 570.608 of the CDBG
Regulations, J &B Construction agrees to comply with the Lead Based Paint Poisoning
Prevention Act pursuant to prohibition against the use of lead -based paint in residential
structures and to comply with 24 CFR 570.608 and 24 CFR 35 with regard to notification of
the hazards of lead -based paint poisoning and the elimination of lead -based paint hazards.
K. Debarred, Suspended or Ineligible Contractor
Antioch Ministries, Inc. agrees to comply with 24 CFR 570.609 with regards to the direct or
indirect use of any contractor during any period of debarment, suspension or placement in
ineligibility status. No contract will be executed until such time that the debarred, suspended
or ineligible contractor has been approved and reinstated by AHCD.
L. Drug Free Workplace
In accordance with 24 CFR part 24, subpart F, Antioch Ministries, Inc. agrees to administer a
policy to provide a drug -free workplace that is free from illegal use, possession or distribution
of drugs or alcohol by its beneficiaries as required by the Drug Free Workplace Act of 1988.
M. Publici
Any publicity generated by Antioch Ministries, Inc. for the project funded pursuant to this
Agreement, during the term of this Agreement or for one year thereafter, will make reference
to the contribution of Augusta Georgia in making the project possible. The words "Augusta
Georgia Department of Housing and Community Development" will be explicitly stated in
any and all pieces of publicity; including but not limited to flyers, press releases, posters,
brochures, public service announcements, interviews, and newspaper articles.
N. Timely Expenditure of Funds
In accordance with 24 CFR 85.43, if J &B Construction fails to expend its grant funds in a
timely manner, such failure shall constitute a material failure to comply with this Agreement
and invoke the suspension and termination provisions of ARTICLE X. For purposes of this
Agreement, timely expenditure of funds means Antioch Ministries, Inc. shall obligate and
expend its funds as designated under ARTICLE II. (B).
O. Compliance with Laws and Permits
Antioch Ministries, Inc. shall comply with all applicable laws, ordinances and codes of the
federal, state, and local governments and shall commit no trespass on any public or private
property in performing any of the work embraced by this contract. Antioch Ministries, Inc.
agrees to obtain all necessary permits for intended improvements or activities.
P. Assignment of Contract
Antioch Ministries, Inc. shall not assign any interest in this contract or transfer any interest in
the same without the prior written approval of Augusta.
Q. Equal Employment Opportunity
Antioch Ministries, Inc. agrees to comply with the prohibitions against discrimination on the
basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 -07) and implementing
regulations at 24 CFR part 146 and the prohibitions against otherwise qualified individuals
with handicaps under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and
implementing regulations at 24 CFR part 8. For purposes of the emergency shelter grants
program, the term dwelling units in 24 CFR Part 8 shall include sleeping accommodations.
R. Affirmative Action
Antioch Ministries, Inc. will not discriminate against any employee or applicant for
employment because of race, color, religion, sex, national origin, or familial status. Antioch
Ministries, Inc. will take affirmative action to insure that applicants are employed, and that
employees are treated during employment, without regard to their race, color, religion, sex,
national origin, or Antioch Ministries, Inc. social status. Such action shall include, but not be
limited to the following: employment, upgrading, demotion or transfer; recruitment or
advertising; lay -off or termination, rates of pay or other forms of compensation; and selection
for training, including apprenticeship. Antioch Ministries, Inc. agrees to post in conspicuous
places, available to employees and applicants for employment, notices to be provided by
Augusta setting forth the provisions of this nondiscrimination clause. Antioch Ministries, Inc.
agrees to make efforts to encourage the use of minority and women -owned business
enterprises in connection with NSP supported activities.
S. Religious Influence
Antioch Ministries, Inc. will not discriminate against any employee or applicant for
employment on the basis of religion and will not give preference of persons on the basis of
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religion. Antioch Ministries, Inc. will not discriminate against any person applying for shelter
on the basis of religion. Antioch Ministries, Inc. will provide no religious instruction or
counseling, conduct no religious worship or services, engage in no religious proselytizing and
exert no religious influence in the provision of shelter and other eligible activities funded by
this grant.
T. Indirect Costs
Indirect costs will only be paid if Antioch Ministries, Inc. has indirect cost allocation plan
approved by the Department of Housing and Urban Development prior to the execution of this
Contract.
U. Travel
AHCD shall not approve any travel or travel related expenses to Antioch Ministries, Inc. with
funds provided under this contract.
V. Construction Requirements - SEE APPENDIX C
All housing units newly constructed with NSP Program funds must, before occupancy, meet
the Property Standards specified at 25 CFR 92.251 [the NSP Program Regulations]. The
Property Standards at 24 CFR 92.251 require that the NSPs receiving NSP Program funds
must meet all local codes for new construction. In the absence of local codes, properties must
meet the HUD Section 8 Housing Quality Standards [HQS]. All housing assisted under this
Agreement is "new construction" by NSP Program definition and therefore must meet the
local building codes for new housing in Augusta Georgia, as applicable.
ARTICLE X. SUSPENSION AND TERMINATION
A. In the event Antioch Ministries, Inc. materially fails to comply with any terms of this
agreement, including the timely completion of activities as described in the timetable and/or
contained in ARTICLE I, Scope of Services, Augusta may withhold cash payments until
Antioch Ministries, Inc. cures any breach of the agreement. If Antioch Ministries, Inc. fails to
cure the breach, Augusta may suspend or terminate the current award of NSP funds for
Antioch Ministries, Inc.
B. Notwithstanding the above, Antioch Ministries, Inc. shall not be relieved of its liability to
Augusta for damages sustained as a result of any breach of this agreement. In addition, to any
other remedies it may have at law or equity, Augusta may withhold any payments to Antioch
Ministries, Inc. for the purposes of set off until such time as the exact amount of damages is
determined.
C. In the best interest of the program and to better serve the people in the target areas and fulfill
the purposes of the Act, either party may terminate this Agreement upon giving thirty (30)
days notice in writing of its intent to terminate, stating its reasons for doing so. In the event
Augusta terminates the Agreement, Augusta shall pay Antioch Ministries, Inc., for
documented committed eligible costs incurred prior to the date of notice of termination.
D. Notwithstanding any termination or suspension of this Agreement, Antioch Ministries, Inc
shall not be relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII,
VIII, IX, XI, and XII of this agreement with respect to NSP funds previously disbursed or
income derived therefrom.
ARTICLE XI. NOTICES
Whenever either party desires to give notice unto the other, such notice must be in writing, sent by
certified United States mail, return receipt requested, addressed to the party for whom it is intended, at
the place last specified, and the place for giving of notice shall remain such until it shall have been
changed by written notice.
Augusta will receive all notice at the address indicated below:
Office of the Administrator
Municipal Building
530 Green Street, Suite 801
Augusta, Georgia 30911
With copies to:
Augusta Housing and Community Development Department
925 Laney Walker Blvd., 2 nd Floor
Augusta, Georgia 30901
Antioch Ministries, Inc., will receive all notices at the address indicated below:
Antioch Ministries, Inc,
P.O. Box 1565
Augusta, GA 30913 -1565
ARTICLE XII. INDEMNIFICATION
Antioch Ministries, Inc. will at all times hereafter indemnify and hold harmless Augusta, its officers,
agents and employees, against any and all claims, losses, liabilities, or expenditures of any kind,
including court costs, attorney fees and expenses, accruing or resulting from any or all suits or
damages of any kind resulting from injuries or damages sustained by any person or persons,
corporation or property, by virtue of the performance of this Agreement. By execution of this
agreement, AMI specifically consents to jurisdiction and venue in the Superior Court of Richmond
County, Georgia and waives any right to contest jurisdiction or venue in said Court.
Should it become necessary to determine the meaning or otherwise interpret any work, phrase or
provision of this Agreement, or should the terms of this Agreement in any way be the subject of
litigation in any court of laws or equity. It is agreed that the laws of the State of Georgia shall
exclusively control same.
The parties hereto do agree to bind themselves, their heirs, executors, administrators, trustees,
successors and assigns, all jointly and severally under the terms of this Agreement.
ARTICLE XIII. INSURANCE AND BONDING
Antioch Ministries, Inc. shall acquire adequate insurance coverage to protect all contract assets from
loss or damage resulting from theft, fraud or physical damage. All policies and amounts of coverage
shall be subject to approval by Augusta. Additionally, Antioch Ministries, Inc. shall procure and
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provide for approval by Augusta a blanket fidelity bond in the amount of at least $100,000.00 covering
all personnel of AMI handling or charged with the responsibility for handling funds and property
pursuant to this contract. AMI shall procure and provide, for approval by the Augusta, comprehensive
general liability insurance in the amount of at least $1,000,000.00 insuring the Grantee and adding as
named insured the City of Augusta, the Mayor, Commissioners, and Augusta's officers, agents,
members, employees, and successors.
Additionally, AMI shall procure officers and directors liability insurance under policies to be approved
by the Augusta. All of the above policies shall provide that no act or omission of the grantee, its
agents, servants or employees shall invalidate any insurance coverage for other named insured. No
insurance policy providing insurance coverage required to be provided by Antioch Ministries, Inc.
hereunder shall be cancelable without at least fifteen days advance written notice to the Grantee. All
insurance policies required hereunder or copies thereof shall be promptly submitted for approval by
the Augusta.
ARTICLE XIV. PRIOR AND FUTURE AGREEMENTS
This document incorporates and includes all prior negotiations, correspondence, conversations,
agreements or understandings applicable to the matters contained herein and the parties agree that
there are no commitments, agreements, or understandings concerning the subject matter of this
agreement that are not contained in this document. Accordingly, it is agreed that no deviation from
the terms hereof shall be predicated upon any prior representations or agreements whether oral or
written. Augusta is not obligated to provide funding of any kind to Antioch Ministries, Inc. beyond
the term of this Agreement.
ARTICLE XV. LEGAL PROVISIONS DEEMED INCLUDED
Each and every provision of any law or regulations and clause required by law or regulation to be
inserted in this Agreement shall be deemed to be inserted herein and this Agreement shall be read and
enforced as though it were included herein and if, through mistake or otherwise, any such provision is
not inserted or is not correctly inserted, then upon application of either party this Agreement shall
forthwith be amended to make such insertion.
ARTICLE XVI. COUNTERPARTS
This agreement is executed in two (2) counterparts — each of which shall be deemed an original and
together shall constitute one and the same Agreement with one counterpart being delivered to each
party hereto.
IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written
above:
ATTEST:
SEAL
Lena Sinner
Clerk of Commission
AUGUSTA, GEORGIA
(Augusta)
By:
David S1 Copenhaver
As Its Mayor
13
Frederick Rus
Admi ' trat
Chester A. Wheeler, III
Director, AHCD
ATTEST:
SEAL
0
;+ RG
I If I III
ANTIOCH MINISTRIES, INC.
(Grantee)
By:
Witness)
APPENDIX A
Statutes: (Available on Request)
Section 2301(c)(2), Neighborhood Stabilization Program ( "NSP1 ")
OMB Circular A -110 - Uniform Administrative Requirements for Grants and Agreement with
Institutions of Higher Education, Hospitals, and Other Non - Profit Organizations
OMB Circular A- 122 - Cost Principles for Non -Profit Organizations
OMB Circular A -133 - Audits of Institutions of Higher Education & other Non - Profit Institutions
40 USC 276 Davis -Bacon Act
40 USC 327 Contract Work Hours and Safety Standard Act
14
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 — HUD Requirements for Notification, Evaluation and Reduction of Lead -Based Paint
Hazards in Housing Receiving Federal Assistance and Federally -Owned Residential Property being
sold, Final Rule
Augusta - Richmond County Procurement Policy
Conflict of Interest Affidavit
Forms:
Reimbursement Form
15
APPENDIX B
REPORTING REQUIREMENTS
Antioch Ministries, Inc. shall submit the following reports for the term of this agreement.
Weekly Status Reports
Due by 1.0:00 a.m. Monday morning for the previous week. Report will contain
actual /estimated costs /date, issues and concerns. MS Project schedule will be
manually updated so that Asset Property Disposition (procured consultant for Laney
Walker /Bethlehem Revitalization Project) can input data to master schedule.
2. Monthly /Quarterly Progress & Financial Reports
Due the 15' of the new quarter.
3. Annual Progress Report (January 16, 20xx)
4. Audit/Financial Report
5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not
restricted to, income data and verification for each person assisted; application for
services; record of services provided; amount of services provided; documentation of
costs for which assistance is provided; transportation log; documentation of medical
need regarding prescriptions; and any other document that will provide proof of
needed service(s) and subsequent provision of such service(s) as allowed under this
contract.
16
APPENDIX C
CONSTRUCTION REQUIREMENTS
1. All construction projects shall comply with Federal, State, and local codes and ordinances,
including, but not limited to, the following:
A. "Standard Building Code ", 2000 Edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
B. "Standard Plumbing Code ", latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
C. Standard Mechanical Code, latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
D. "National Electric Code ", latest edition, National Fire Protection Association, Quincy,
Massachusetts.
E. Model Energy Code, 1997, Council of American Building Officials.
F. "ADA Accessibility Guidelines for Buildings and Facilities ", Department of Justice,
American with Disabilities Act of 1990 ".
G. Williams- Steiger Occupational Safety and Health Act of 1970, Public Law 91 -596.
H. Part 1910 — Occupational. Safety and Health Standards, Chapter XVII of Title 29, Code of
Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972).
I. Part 1926 - Safety and Health Regulations for Construction, Chapter XVII of Title 29, Code
of Federal Regulations (Federal Register, Volume 37, Number 243, December 16, 1972.
J. Section 106 of the National Historic Preservation. Act (16 U.S.C. 470f).
2. Bidding:
A. Only contractors included on the Augusta- Richmond County Housing & Community
Development Department Approved Contractor List may bid on construction projects
funded with NSP funds
B. All bids will be awarded to the lowest bidder submitting an accurate and qualified bid.
C. All bidding documents and procedures will be made available for AHCD review upon
request
3. Eligible Contractors: Any contractor desiring to bid on NSP or CDBG projects may apply for
inclusion on the AHCD Approved Contractor List. Applications will be processed and either
approved or disapproved within 10 working days. Under no circumstances will barred,
disapproved, or otherwise ineligible contractors be allowed to bid on NSP funded projects.
17
4. Project Review. All plans, specifications, work write -ups, projected cost estimates, punch lists or
other means of outlining work on a particular project will be submitted in writing to AHCD for
review and approval prior to bidding. AHCD Construction and Rehabilitation Inspectors or
AHCD's agent will review these items for compliance with new construction and/or rehabilitation
standards and materials use.
5. Rehabilitation Standards. All rehabilitation work will comply with the "Uniform Physical
Condition Standards for HUD Housing." Workmanship and material standards will comply with
the Augusta - Richmond County Housing & Community Development Department Contractors
Manual and Performance Standards. A copy of this manual is provided to every contractor when
included on the AHCD Approved Contractors List. A copy is enclosed for inclusion.
6. Inspections. All projects will be inspected and approved by an AHCD Construction and
Rehabilitation Inspector or AHCD's agent prior to release of the funds for that project.
18
EXHIBIT "A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
Augusta through the Housing and Community Development Department agrees to provide up
to $ 440,030.00 in Year 2010 NSP funds to Antioch Ministries, Inc. These funds will support
new construction with the production of approximately 2 affordable multi - family residential
units in connection with the Florence Street Project. See attached construction plans.
2. AHCD must review and approve all residential design plans, project specifications and total
development cost for each residential development project before work is commenced and
before funds can be released for payment reimbursement. Construction payments will be
released to Antioch Ministries, Inc. in accordance with the attached drawdown schedule and
budget.
3. AHCD will provide the lots on which all new affordable NSPs are to be built under this
agreement and in connection with the Florence Street Project.
4. With AHCD approval, Antioch Ministries, Inc., may use NSP funds under this agreement for
the following purposes:
a. To support development costs as outlined in Item 6 below.
5. Completion Delays, Remedies, and Penalties
A. If the Contractor fails to complete the work within the time frame specified in the
contract, plus any authorize delays, AHCD may:
1. Terminate the contractor in accordance with the "Provisions for Augusts Housing and
Community Development Department (AHCD)" clause of this contract.
2. Assess liquidated damages of fifty dollars ($100.00) per working day from the
schedule of completion to the date of final acceptance of the project. The total
amount of liquidated damages will be deducted from the total contract price, plus any
change order amounts.
B. The Contractor shall not be charged with liquidated damages for any delays in the
completion of the work due:
1. To any acts of the Federal, State, or City /County Government; including
controls or restrictions upon or requisitioning of materials, equipment, tools or
labor by reason of war, National Defense, or any other National, State, or
City /County emergency.
2. To any acts of the Owner that hinder the progress of the work;
3. To causes not reasonable foreseeable by the parties to this contract at the time
of the execution of the contract which are beyond the control and without the
fault or negligence of the Contractor; including but not restricted to acts of
God; acts of the public enemy; acts of another contractor in the performance
of some other contract with the owner; fires; floods; epidemics; quarantine
E
restrictions; strikes; freight embargoes; and weather of unusual severity such
as hurricanes, tornadoes, cyclones, and other extreme weather conditions; and
4. To any delay of the subcontractor occasioned by any other causes specified in
subparagraphs A and B above. Provided, however, that the contractor
promptly (within 10 days) notifies AHCD in writing of the cause of the delay.
If the facts show the delay to be properly excusable under the terms of this
contract, AHCD shall extend the contract time by a period commensurate
with the period of authorized delay to the completion of the work as whole; in
the form of an amendment to this contact.
6. Construction Costs and Requirements
a. Antioch Ministries, Inc. will provide construction management for the project to ensure
that construction work is being carried out in accordance with plans, specifications and the
project budget.
b. Antioch Ministries, Inc. must make sure contractor obtains and posts all permits on job
site. Prior to releasing final payment on each house, Antioch Ministries, Inc., must also
secure a Certificate of Occupancy from the contractor that has been issued by the
Department of Licenses and Inspection.
c. Antioch Ministries, Inc. must collect progress and final lien releases from the contractor,
subcontractors and material suppliers prior to making a payment to a contractor.
d. AHCD or its agent may continually inspect each house for contract compliance and to
determine the percent of completion prior to processing a draw request and releasing
payment. AHCD may choose not to release payments if the work being performed is not
of acceptable quality to AHCD and if the house is not being built or rehabilitated in
accordance with plans and specifications, or if project is not on schedule.
EXHIBIT "C"
PROJECT SCHEDULE OF COMPLETION
ANTIOCH MINISTRIES, INC. MUST PROVIDE A COMPLETED SCHEDULE OF
COMPLETION AS EXHIBIT C - WITH APPROPRIATE PROJECT MILESTONES WITHIN 10
TO IS DAYS AFTER SIGNING THIS AGREEMENT. THIS SCHEDULE MUST BE PROVIDED
IN SUFFICIENT DETAIL TO PERMIT HCD TO MONITOR AND ASSESS PROGRESS IN
CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT. A SAMPLE SCHEDULE
IS PROVIDED BELOW.
Fill
EXHIBIT "D"
FINANCING LETTER
21
RENTAL HOUSING DEVELOPMENT BUDGET wlNe space data cmy
PROJECT: VLORENCE MULTI PANIC
NUMBER OF UNITS: 4 TOTAL COST PER UNIT: 145,146
ITEM COST I % TOTAL I DepibW I Amortize I N.4nmw. F6stwk RTC I LIHTC 4% 1 LMTC 9%
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SOURCES OF FUNDS FLORENCE MULTI-FAWY
PRriM—_ r ecw rrornue
% Comneraal
0.00%
Ar4i ' Yaer of Sale
0
Cap Role at Sale
0.00%
Cost of Sale
0%
Tax Rate at Sale
D%
LIM ASSUMPTIONS
Project TYM (t�drehab, 2 =bond, 3 co nstr.) 3
LIHTC Oaarperley Percetuage 0 3
Bldg AcgLMIUan Eligible I-fw. OaM 0
Investor Tax Rate
D%
Investor Owrsratw
0.00%
Basis for Equity (1 =Sale Rate, 2 =IRR, 3 - $Amt.
1
1. LIHTC Safe Rate
$0.00
2 Fvacted Internal Rate of Return (IRR)
0.00%
3. Ernrky kwesMm t Corm ftM
so
.taq eo�laaoro asamq
HISTORIC REHAB. ASSUMPTIONS
HLtiYOrie Rehabilitation 19res, 0-no p
�HtWOde RTC Ea+Ay Rate SO.IXt
I IHTC 4% R ate
LIHTC 9% Rate
U Boras Area 1 O— 0
EOIATY ATTRACTED
EquitV Att Based on Selo Rate SO
Equity Af racted Based on IRR g0
Equity Atkr tl Based m Dollar Amount $p
DEBT ATTRACTION CALCULATION
irengrft
Rate
6.50%
0. 00%
0.00%
0.00%
O.OD%
0.00%
0.00%
O.OD%
I Loan AML
Dot CovW, Ratio
1.20
TOTAL LOANS
$153.706
Loan to Value Ratio
75%
$104,925
Capitalmation Rate
MOM
Stabilized NOI
$13,990
Fair Market Value
$139,909
Loan Amount 141AmL, 2=DCR, 3 DCR and LVR
1
Bank Loan Committed
$145,146
Loot Amount Based on DCR
$163,706
Loan Amaxd Based on DCR and LVR
5194.925
PROPOSED PERMANENT FWAMMMt'
BANK
Amo ' ' me Lo
Amortmm Lo
Low
Interest Loan
Interest Oniy Loan
Deferred Loam
Deferred Loan
ID--W Loan
Cash Flux LOW
Amount
145,146
0
0
0
0
0
0
0
0
Rate
6.50%
0. 00%
0.00%
0.00%
O.OD%
0.00%
0.00%
O.OD%
30
D
0
0
0
0
0
Tom, Ipwft
30
0
0
0
0
D
0
0
D
Souroe
0
0
1
1
1
40.00% -.. %of CF
TOTAL LOANS
145,146
Gram - Non Basis
435.439
Grant - Other
0
TOTAL GRANTS
43
2
3,692
al
4,440
41
5,225
-
5
6,050
EQUITY
0
TOTAL SOURCES
500,585
TOTAL DEV. COST
580,585
-TOTAL SOURCES
5w,
GAP
0
CASH FLOW
1
2,153
ACTUAL IRR
O.OD%