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HomeMy WebLinkAboutContract Between Augusta Georgia And Laney Walker Development Corporation Augusta Richmond GA DOCUMENT NAME: CDntro..ct be;t<...0~cn ~u.~v.5tc.. ~<D~~~ Cind L.o.ne-y - Wo.\ Ker ~ e\Je\o'~w, ei"l-t. C6r~y~6~ "-.) DOCUMENT TYPE: eon -trC"-GG YEAR:C);:l BOX NUMBER: \7 FILE NUMBER: I G3t ~ NUMBER OF PAGES: 25 ~"~ -.:-~~" -.- :-' " " CONTRACT between AUGUSTA, GEORGIA And Laney-Walker Development Corporation in the amount of $350,000.00 Three Hundred Fifty Thousand Dollars for Fiscal Year 2002/03 Providing funding for HOME INVESTMENT PARTNERSHIPS PROGRAM "Laney-Walker Neighborhood Revitalization Program" TIllS AGREEMENT ("Contract"), is made and entered into as of the J ~ rJ- day of &.A ~ J, 2002, ("the effective date") by and between Augusta, Georgia, acting ~ the H~d Neighborhood Development Department (hereinafter referred to as "HND") - with principal offices at One 10th Street, Suite 430, Augusta, Georgia 3090 I, as party of the first part, hereinafter called "Augusta", and Laney Walker Development Corporation, a non-profit corporation; organized pursuant to the Laws of the State of Georgia, hereinafter called "LWDC" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called BUD) as a HOME Program Participating Jurisdiction, and has received HOME Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HOD for the purpose of providing and retaining affordable housing for HOME Program eligible families; as defined by HUD; and WHEREAS, the grantee is a designated Community Housing and Development Organization (CHDO) - hereinafter referred to as L WDC - and will be involved in: HOME ~ligible activities; and WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the stock of affordable housing for HOME Program eligible low and moderate income families through eligible uses of its HOME Program grant funds, as described in the Augusta-Richmond County Consolidated Plan 1998~2002, and the Year 2002 Annual Action Plan; and WHEREAS, Augusta must reserve not less than fifteen percent (15%) of its allocated HOl'vIE entitlement funds for investment in affordable housing to be developed, sponsored or owned by a designated Community Housing Development Corporation CCRDO); and WHEREAS, Augusta wishes to enter' into a contractual agreement with the L WDe for the administration of HOME eligible affordable housing development activities; and -; .,. WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR 92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24 Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations. WHEREAS, L WDC has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, L WDC has requested and Augusta has approved a total of $350,000.00 in grant funds to perform HO'NIEProgram eligible activities as described in Article I, 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 1. SCOPE OF SERVICES A. Scope of Services Project Description: L WDC agrees to utilize approved HOME funds to support project related costs associated with the Laney-Walker Neighborhood Revitalization Project. This multi-phase effort - involves the planning, design, acquisition of development sites, construction and rehabilitation of affordable housing throughout the Laney -Walker Neighborhood. Under this Year 2002 agreement, Laney Walker will acquire the necessary HOME development sites to accommodate the development of approximately 10 affordable housing units under Phase I of this development program These units will be made available for purchase or rental by eligible low and moderate-income homebuyers. B. Use of Funds: HOME funds shall be used by L WDC for the purposes and objectives stated in Article I, Scope of'Services, and Exhibit "A" of this Agreement-and for no other purpose(s). The following budget items summarize the proposed uses of HOME Program funds under this Agreement: 1. Administration An amount not to exceed $50,000.00 shall be expended by LWDC from Year 2002 HOME funds to support administrative costs associated with the implementation of the Laney Walker Revitalization Project. These administrative funds shall not be used to support general administrative and operating expenses of the Laney Walker Development Corporation. These funds will be prorated and provided to L WDC on a maximum twelve-12 month performance period. Release of administrative funds will be based strictly on L WDe's progress related to the production of affordable housing units consistent with Scope of Services and terms and conditions of this a'greement. 2. Pre-Development and Professional Services An amount not to exceed $50,000.00 shall be expended by L WDe to support pre-development costs associated with the implementation of the Laney Walker Revitalization Project. These services will include the solicitation of professional consultant services, architectural engineering services, permit fees, property and environmental surveys. A Request For Proposal for professional development services, architectural engineering and related services shall be coordinated with HND to solicit the services of a professional architectural engineering and/or development consultant to assist L WDe and HND in defining a rational development program for the Laney-Walker Neighborhood Revitalization Program. The 2 .~ 'j\ ;.:" l' " " " ~ results of this effort will outline a rational multi-year affordable housing and community development program for the target community and the proposed sources and uses of public and private funding. 3. Acquisition of HOME Development Sites An amount not to exceed $150,000.00 shall be expended by LWDC from Year 2002 HOME funds for acquisition costs related to the assemblage of development lots for the Laney Walker Revitalization Project. These lots will facilitate the construction of affordable housing units for sale or rental to HOME Program eligible homebuyers and renters. These funds are awarded as a grant to L WDC with the stipulation that the investment of all HOME Program funds shall be secured by a Deed to Secure Debt and Promissory Notes executed between each homebuyer and the L WDC. Prior to the purchase of any HOME funded development sites, L WDC shall notify HND of the proposed location, the estimated acquisition prices and a proposed schedule for redevelopment of the development sites. Proposed site acquisition shall be supported with a valid appraisal or reasonable basis for the purchase price for the property. 3. New Construction - Development of Home Sites A total of $100,000.00 is budgeted to support construction cost associated with the construction of 10 single-family affordable housing units, throughout the Laney Walker Neighborhood Revitalization Project area. L WDC may proceed with the construction of 2 to 4 units at any time during the implementation of this project. These affordable housing units will be constructed by L WDC and sold or rented to eligible low and very low-income homebuyers. Permanent mortgage financing to be" secured by each homebuyer will serve to replace the construction funds utilized to support construction costs of the individual units. 4. Down Payment Assistance for Eligible Homebuyers Down Payment assistance shall be provided in an amount not to exceed $15,000 per home buyer or household to help reduce the purchase price to the homebuyer. Augusta will make available Home funds in the form of a 5-year Deferred Payment Loan (DPL) to each eligible homebuyer. This assistance is a zero percent (0%) interest bearing second mortgage to the home buyer - with the full amount to be repaid if the owners sell or transfer ownership within the first five years on the loan anniversary date each year. Funds will be issued to the L WDC _ at the JoaJl cl9~ing _fOr eac:hparticipating. homebuyer. Augusta_ J:equires that each homebuyer receiving down payment assistance through the HOME Program to sign a Promissory Note and a Deed to Secure Debt to protect the investment of HOME Program funds. L WDe is the primary mortgage holder for Deferred Payment Loan. C. Program Location and Specific Goals to be Achieved LWDC shall conduct project development activities and related services in the Laney Walker Community south of Laney Walker Boulevard. This development area incorporates the following boundaries: 12th Street on the West; 9th Street on the East; Wrightsboro Road on the South; and Laney Walker Boulevard on the North. D. Project Eligibility Determination It has been determined that the use of HOME funds by the LWDC will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, L WDC shall provide " .J r '~i ;- ~ 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 Aofthis contract. ARTICLE n. BUDGET AND lVIETHOD OF P A ThIENT The L WDC will be compensated for work performed under this agreement in accordance with this Article II, Budget and Method of Payment, that specifically identifies the use of HOME and other project funding as represented in the Agreement. The L WDC, its directors, officers and staff will carry out and oversee the implementation of projects to be funded with HOME funds. The L WDC also agrees to perform the required services under the general coordination with and management by the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the L WDC may engage the services of outside professional services consultants and contractors to help carry out the program and projects. A. Augusta (the Augusta) shall designate and make HOME Project funds available III the following manner: 1. Augusta agrees to pay LWDC a maximum of$350,000.00 under this agreement for project . expenses incurred as outlined in ARTICLE I, Scope of Services, subject to LWDC's 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 in accordance with Financial Procedures as described in Article I or Attachment X, attached hereto and made part thereof. 3. END will monitor the progress of the project and LWDC's performance on a monthly basis with regards to the general administration of the project, 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 payabie 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 oEROME Program Funds. 8. L WDC will make reasonable efforts to secure additional fundin~ sources using the $350,000.00 in HOME funds awarded under this agreement as leverage to support the Laney Walker Neighborhood Revitalization Project. B. Timetable for Completion of Project Activities L WDC shall obligate the designated HOtvlE funds within eighteen-18 months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, L WDC will provide a detailed outline of critical project milestones and projected expenditures during the course of 4 i' :. '.- .. ~ the development project. These documents will become an official part of the contractual agreement and provide the basis for overall project performance measurements. C. Project Budget: Limitations 1. L WDC shall be paid a total consideration of $350,000.00 for full performance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the L WDC. 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 L WDC. 2. The L WDC shall adhere to the following budget in the performance of this contract. A. Administrative Cost: $ 50,000.00 Wages & Salaries Fringe Benefits Travel Insurance . Space Cost and Rental Utilities and Telephone TOTAL: Administrative Cost Pre- Development/Planning/Design Acquisition Construction - Infrastructure Down Payment Assistance $ 50,000.00 $ 300,000.00 50,000.00 150,000.00 100,000.00 B. Project Activity Cost TOTAL HOME PROJECT COST: $ 350,000.00 ARTICLE ill - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The ResalelRecapture Provisions in this Article III will ensure compliance with the HOl.\.1E Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). A. Resale Provisions [24 CFR 92.254(5)(i)] \ If the initial purchaser of the property sells the home during the five year loan period, L WDC has the "right of first refusal" to repurchase the property for subsequent resale to other HOME Program-eligible purchasers. If L WDC exercises its right of first refusal and then sells the property to another HOME program-eligible purchaser, the new purchaser must agree to accept the restrictions on the use of the property required by the HOME Program through the execution of a new Promissory Note and a new Deed to Secure Debt. B. Recapture Provisions [24 CFR 92.254(5)(ii)] If the eligible homebuyer (who received down payment assistance [HOME Program] funds from Augusta) sells their property, then L WDC shall recapture the HOME funds and return 5 i' .",) i' l' the funds to Augusta, which will ensure that the recaptured HOME 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. ARTICLE IV. TERM OF CONTRACT The term of this agreement shall commence on the date when this agreement is executed by Augusta and the L WDC (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article II.B.l or in accordance with ARTICLE IX: Suspension and Termination. ARTICLEV. DOCUMENTATION AND PAYMENT A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to the L WDC or any subcontractor hereunder. All payments to the L WDC by Augusta will be made on a reimbursement basis. B. L WDC shall maintain a separate account and accounting process for HOME funding sources. C. L WDC shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to L WDC's 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 the L WDC for payment shall be accompanied by proper documentation and shall be submitted to HND, 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 HND, copies of invoices, receipts, other evidence of indebtedness, budget itemization and description of specific activities undertaken. Where HOME funds are to be used to reimburse salary expenditures, proper documentation to include: "Time Sheet" forms supplied by HND, photocopies of paychecks, paycheck stubs and/or payroll documentation. Invoices shall not be honored if received by Augusta later than sixty (60) calendar dayS after expiration date of this Agreement. G. L WDC shall maintain an adequ~te financial system and internal fiscal controls. H. 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 LWDC. ARTICLE VI. REPAYMENTIPROGRAM INCOME A. L WDC is to return to Augusta one hundred percent of any program income (100% - less expenses described below) of the HOME funds it draws down under this contract to construct 6 " j' or rehabilitate houses for sale to eligible home buyers. The L WDC shall return these funds on an individual project (i.e., per house) basis. The return of the funds shall be due immediately on the date of closing when possible - but not later than ten (10) days after the sale of each house. Program income means gross income received by the L WDC directly generated from the use of HOME funds in accordance with 24 CFR 92.504(c)(3. Program income includes but is not limited to the following: 1. Proceeds from the sale or long-term lease of real property acquired or improved with HOME funds; 2. Gross income from the use or rental of real property acquired or improved with HOME funds - less incidental costs; Monthly reports must be submitted by L WDC on a timely basis. Please refer to Appendix B. 3. Payments of principal and interest on loans made using HOME funds; 4. Proceeds from the sale of loans made with HOME funds, or the sale of obligations secured by such loans. B. L WDC agrees that any program income generated by an activity that is only partially assisted with HOME funds shall be prorated to reflect the percentage of program income to be retumed to Augusta by LWDC. C. The receipt and disposition by LWDC of repayments as defined in 24 CFR 92.503(b) shall be in accordance with provisions of 24 CFR 92.504(c)(3) which provides that all repayment interest and other return on the investment of HOME funds shall be remitted by the LWDC to Augusta unless otherwise specified. Where HOME funds are used to rehabilitate or construct affordable homes for sale to eligible buyers; repayment shall be remitted to Augusta in accordance with the following procedure: 1. The 100 percent of funds stated above shall include the total amount of funds approved in the project summary (Exhibit B) plus other pre-approved project cost and advanced during the construction period. Expenses as referenced above include: second mortgage notes; approved closing costs; developer fees, and; other expenses as approved by Augusta. The only pre- approved exception is described in Paragraph C.2 below. In order for an expense to be included as part of the development cost for the purposes of this paragraph, the expense must be approved by HND. . 2. Should the cost of developing a property for sale to ahomebuyer exceed the appraised value of the property, L WDC will retain no less than $8500.00 as a developer fee. L WDC may reduce the HOME funds it is to return to Augusta as described in Paragraph VLA above by any deficit amount. In order for an expense to be included as part of the development cost for the purposes of this paragraph, the expense must be approved by HND. D. All funds retained by L WDC must be used for HOME-eligible activities or other housing activities that benefit low-income families as required by 24 CFR 92.300(a)(2). E. In accordance with 24 CFR 570.503 (b) (8), L WDC shall transfer to Augusta upon expiration of this contract, any HOME funds on hand at the time of expiration of any accounts receivable attributable to the use 'of said HOME funds. 7 ", t ;. F. Any real property under the L WDC's control that was acquired or improved in whole or in part with HOME funds in e?<cess of $25,000 must either: 1. Be used to meet one of the national objectives in 24 CFR 570.208 for at least five years after the expiration of this Agreement; or 2. Be disposed of in a manner that results in Augusta being reimbursed in the amount of the current fair market value of the property, less any portion of the value attributable to expenditures of non-HOwlE funds for site acquisition purposes and or " improvements to the pr9perty. " ARTICLE VIT. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS A. L WDC shall carry out its HOME assisted activities in compliance with all HOME Program laws and regulations described in 24 CFR Part 92 Subpart E (Program Requirements), Subpart F (Project Requirements), and Subpart H (Other Federal Requirements). These compliance activities include, but are not limited to: 1. Maximum acquisition prices [24 CFR 92.205A.2] 2. Maximum per unit HOME Program subsidy amount [Section 221 (d)(3)] 3. Combined affordability of assisted units 4. Income eligibility of home buyers 5.' Inspection of the homebuyer units to comply with HUD required Property Standards 6. Acquisition, Displacement and Relocation Requirements [24 CFR 92.353] 7. Environmental Review 8. Lead-based Paint Abatement B. To document low and moderate-income benefits required in 24 CFR 570.200(a) (2). LWDC shall maintain records that document all clients served with HOME funds. In addition, L WDC shall document each client's race, family size, annual household income, and whether or not the family is female-headed. Augusta shall supply "Income Verification" forms which, when completed by those clients served by L WDC, shall provide the information and verification described above. C. L WDC shall prepare and submit reports r,elative to this project to Augusta at Augusta's request. Augusta shall supply L WDC with the foHowing report forms and require the same to be completed as requested by Augusta: "Monthly Services", "Quarterly Progress", "Quarterly Financial" and "Annual Report": Further explanation and report due dates are found in APPENDIX B below. F. L WOC shall maintain books and records in accordance with generally accepted accouhting principles. Documents shall be maintained in .accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. G. LWDC shall make all records for this project available to Augusta, the U.S. Department of Housing and Urban Development, the Comptroller General of the United States, or any of their duly authorized representatives for the purpose of making audits, examinations, excerpts and transcriptions. H. In compliance with OMB Circular A-II 0 regarding retention and custodial requirements for records, L WDC shall maintain financial records, supporting documents, statistical records, 8 ", r and all other records pertinent to this Agreement for a period of three years, with the following qual!fications: 1. If any litigation, claim or audit is started before the expiration of the 3-year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 2. Records for non-expendable personal property acquired with HOME grant funds shall be retained for three years after its final disposition. Non-expendable personal property means tangible personal property having a useful life of more than one year and an acquisition cost of $300 or more per unit. 1. In connection with the expenditure of federal funds, L WDCs shall provide to Augusta an organization -wide audited financial statement consisting of a balance sheet, income statement and a statement of changes in its financial position. All documents shall be prepared by a certified public accountant. Such financial disclosure information shall be filed with Augusta within one hundred eighty (180) calendar days after the close of the LWDC's fiscal year. The L WDC is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and tennination of the contract. The LWDC shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures offunds provided by Augusta under this Agreement. J. Open Records Disclosure: L WDC's records related to this Agreement and the services to be provided under the grant may be a public record subject to Georgia's Open Records Act (O.e.G.A. ~ 50-18-70). LWDC agrees to comply with the Open Records Act should a request be submitted to it. Further, L WDe agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: L WDC will provide notice to the Augusta Chronicle and the Augusta Focus or the Metro Courier of its regular board meeting schedule and of any special called meetings except emergency meetings; it will post notices of its meetings in a public place at the meeting sites and it will keep a written agenda, minutes, attendance, and voting record for each meeting and make the same available for inspections by the press, the public and the Grantee, subject to the provisions of the Open Meetings Law. The press, public and the Grantee shall not be .denied admittance to the LWDC's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. L WDC shall provide to the Grantee a tentative annual schedule of the Board of Directors' meetings. Publications and minutes of each meeting shall be submitted to Grantee within 30 days after each meeting. ARTICLE VIII ADlVIJl'jiSTRATIVE REQUIREMENTS A. Conflict of Interest L WDC 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-I02 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 the L WDC. No person described above who exercises, may exercise or has exercised any functions or responsibilities with respect to the HOME activities supported under this contract; or who are in a position to participate in a decision- making process or gain inside infonnation 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 9 -, 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. L WDC 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. LWDC shall comply with the requirements and standards of OMB Circular A-122 "Cost Principles for Non-Profit Organizations" and 24 CFR part 570.502(b), "Applicability of Uniform Administrative Requirements." C. Augusta may, from time to time, request changes to the scope of this agreement and obligations to be performed hereunder by the L WDe. In such instances, L WDC shall consult with HND/ 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 the L WDe. D. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in Appendix A and are incorporated herein by reference. ARTICLE IX. OTHER REQUIREMENTS A. Fair Housing L WDC agrees that it will conduct and administer HOME 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 L WDC publications and/or advertisements. (24 CFR 570.60 I). B. Non-Discrimination L WDC 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. e. Non-Discrimination and Residential Property L WDC agrees, in accordance with Executive Order 11063 and 12259 that it will not discriminate because of race, color, religion, sex, or national origin in the sale, leasing, ,rental or other disposition of residential property and related facilities, or in the use of occupancy thereof, if such property and related facilities are, among other things, provided in whole or in part with the aidofloans, advances, grants, or contributions agreed to be made by the Federal Government. 10 i' '. D. Labor Standards 1. General: L WDC agrees that in instances in which there is construction work of over $2,000 financed in whole or in part with HOME funds under this Agreement, the L WDC 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) 2. 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 L WDC agrees that in accordance with the National Environmental Policy Act of 1969 and 24 CFR part 58, it will cooperate with Augusta/HND in complying with the Act and regulations, and that no activities will be undertaken until notified by Augusta/HND 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 PiOtection Act of 1973 (42 USC 4001-4128), LWDC agrees that HOME 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 thel OO-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. L WDC agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HOrvlE funds will be conducted in accordance with the Uniform-Relocation Assistance and Real Properry Acquisition Policies Act of 1970 (URA) and the Housing and Community Development Act of 1974 (24 CFR 570.606). H. , Non-Discrimination in Employment 'L WDC 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. The L WDC will in all solicitations or advertisements for employees placed by or on behalf of the L WDC, state that all qualified 11 -', .' 'applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. 1. Employment and Business Opportunities L WDC 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). J. Lead-Based Paint In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the CDBG Regulations, L WDC 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 L WDC 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 fIND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, L WDC 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. Publicity Any publicity generated by the L WDC 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-Richmond County in making the project possible. The words "Augusta-Richmond County Department of Housing and Neighborhood 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 the LWDC 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 IX. For purposes of this Agreement, timely expenditure of funds means the L WDC shall obligate and expend its funds as designated under ARTICLE I. (C) and (D). 12 -, O. Compliance with Laws and Permits The L WDC shall comply- with all applicable laws, ordiftances and codes of the federal, state, and local govemments and shall commit no trespass on any public or private property in performing any of the work embraced by this contract. L WDC agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The L WDC 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 The L WDC 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 The L WDC will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. TheLWDC 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 familial 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 payor other forms of compensation; and selection for training, including apprenticeship. The L WDC 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. The L WDC agrees to make efforts to encourage the use of minority and women- owned business enterprises in connection with HOME supported activities. S. Religious Influence The L WDC 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 religion. The LWDC will not discriminate against any person applying for shelter on the basis of religion. L WDC 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 L WOC has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. 13 '. U. Travel If applicable, L WDC shall obtain prior written approval from the Grantee for any travel outside the State of Georgia with funds provided under this 'contract.. All Federal Travel Regulations are applicable (41 CFR Part 301). V. Construction Requirements - SEE APPENDIX C All housing units [rehabilitated, reconstructed or newly constructedJand assisted with HOME Program funds must, before occupancy, meet the Property Standards specified at 25 CFR 92.251 [the HOME Program Regulations]. The Property Standards at 24 CFR92.251 require that the homes receiving HOME Program funds must meet all local codes for new construction. In the absence of local codes, properties must meet the BUD Section 8 Housing Quality Standards [HQS]. All housing assisted under this Agreement is "new construction" by HOME Program definition and therefore must meet the local building codes for new housing in Augusta-Richmond County, as applicable. ARTICLE x. SUSPENSION AND TERMINATION A. In the event L WDC 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, or the provisions of ARTICLE VIII(N), Augusta may withhold cash payments until L WDC cures any breach of the agreement. If L WDC fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for the L WDC program. B. Notwithstanding the above, the L WDC shall not be relieved of liability to Augusta for damages sustained by Augusta 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 the L WDC 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 L WDC for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, L WDC 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 HOME 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. 14 ,. ..... c. Augusta will receive all notice at the address indicated below: Office of the Administrator Municipal Building 530 Greene Street, Suite 801 Augusta, Georgia 30911 With copies to: Augusta Housing and Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 L WDC shall receive all notices at the following address: Laney -Walker Development Corporation 851 Laney Walker Blvd. Augusta, Georgia 30901 ARTICLE XU. INDEMNIFICATION The LWDC wi1l'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, them L WDC 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. ARTICLE XIll. INSURANCE AND BONDING L WDC 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, L WDC shall procure and provide for approval by Augusta a blanket fidelity bond in the amount of at least $100,000.00 covering all personnel of the LWDC handling or charged with the responsibility for handling funds and property pursuant to this contract. L WDC 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 Augusta, the Mayor, Commissioners, and Augusta's officers, agents, memb~rs, employees, and successors. Additionally, the L WOC shall procure officers and directors liabiiity 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 the L WDC 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. 15 .. . 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 except as provided in ARTICLE XIV. 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 L WDC 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. ~ : ~ ..... oJy: ..... ',~ e . .onner' -::'Clerk-ofthe C~mmission ('-~t~7,\ .' ATTEST: . .~-(<1'~'('1'f7r'f'l'l'r,", ~~- ~~v -*"fIr r~..-: "" ,,"- /..r'~ $' ". _...""O>~~..."e- v- -~ ~ -~.~"-~~ ~ ~~,<l~.~SE~L ~.~[ .~~)~~~ J -......~. ..-....!. ~-s:: ~ ::: ":;;:; .: ~ ~ ~ ~1fb.- r. ~ .;' ...., ,~. -... 'I!..~. V'--./ ~ ~ ~~,=-~ s.::Iis ~o~Urate Secretary ~ ~ ".. '" r~, ~<!'l-'" ~ ~~ ',:.. ?~"'"' ~~ ~-~. '. "'~'. . '''''''''--.' -<<"'.:x...-::-; '''r , ' _j:; . . ~- _ ;;;" "/0". - "':~(IPlaih' W' LANEY WALKER DEVELOPMENT CORPORATION Grantee) 16 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") OMB Circular A-II0 - 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 ofInstitutions of Higher Education & other Non-Profit Institutions 40 USC 276 Davis-Bacon Act 40 USC 327 Contract Work Hours and Safety Standard Act 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 Forms: Income Verification and Income Limits Table Inventory Time Sheet Reimbursement Request Monthly Statistical Reports Quarterly Program Progress Quarterly Financial Report Annual Program Report TravelLog Conflict ofInterest Affidavit 17 APPENDIX B REPORTING REQUIREMENTS The L WDC shall submit to the Grantee the following reports for the term of this agreement. 1. Monthly Statistical Reports Due each month by the 10th for the previous month. 2. Quarterly Progress & Financial Reports Due: October 15, 2002, January 15,2003, April 15, 2003 and July 15,2003. 3. Annual Progress Report 4. AuditlFinancial 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. 18 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, Americans 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 D.S.C. 470f). 2. Bidding: A. Only contractors included on the Augusta-Richmond County Housing & Neighborhood Development Department Approved Contractor List may bid on construction projects funded with CDBG 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 HND review upon request 3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for inclusion on the HND 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 contracto~s be allowed to bid on CDBG funded projects. 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 HND for 19 review and approval prior to bidding. HND Construction and Rehabilitation Inspectors 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 & Neighborhood Development Department Contractors Manual and Performance Standards. A copy of this manual is provided to every contractor when included on the HND Approved Contractors List. A copy is enclosed for inclusion. 6. Inspections. All projects will be inspected and approved by an HND Construction and Rehabilitation Inspector prior to release of the funds for that project. 20 ATTACHMENTS L WDC Notebook and all contents tlierein including the statutes arid forms listed in APPENDIX A are hereby attached and included as part in parcel to this Agreement. 21 EXHIBIT "A" PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES 1. Augusta through the Housing and Neighborhood Development Department agrees to provide up to $350,000.00 in Year 2002 HOME Funds to the Laney Walker Development Corporation. These funds will support pre-development services, administration, acquisition of HOME sites, construction, down payment assistance and other costs associated with the production of affordable housing in connection with the Laney Walker Revitalization Project. 2. In connection with the proposed acquisition of properties under this multi-phased development effort, L WDC shall submit to HND an overall land and area development plan that represents a phased approach to the acquisition and redevelopment of property in connection with the Laney Walker Neighborhood Revitalization Project. Prior to the purchase of any HOME funded development sites, L WDC shall notify HND of the proposed location and estimated acquisition prices. This information shall be supported with a valid appraisal or reasonable basis for establishing. the purchase price for the property. The acquisition of HOME development sites, houses, construction timetable, sales amount and other project development information will be specified in EXHIBIT B. Each new project added under EXHIBIT B must be submitted to HND for review and approval by the Executive Director of the Housing and Neighborhood Development Department or his or her designated project representative. ' 3. HND 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 L WDC in accordance with a payment schedule outlined in the construction contract between L WDC and the Contractor. 4. L WDC will provide the lots on which all new affordable homes are to be built under this agreement and in connection with the Laney Walker Neighborhood Revitalization Project. 5. With HND approval, L WDC may use HOME funds under this agreement for the following purposes: a. To support development costs as outlined in Item 6 below. . b. As the source of funds from which a project developer fee will be paid as outlined in Item 7 below. 6. Construction Costs and Requirements a. The amount that can be used to pay for development costs will be identified on a project- by-project basis in EXHIBIT B. In no case will this amount exceed the maximum per unit amount as defined at 24 CFR 92:250. b. L WDC 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. c. L WDC must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each house, L WDC must also secure a Certificate of Occupancy from the contractor that has been issued by the DepartmentofLicenses and Inspection. 22 d. L WDC must collect progress and final lien releases from the contractor, subcontractors and material suppliers prior to making a payment to a contractor. e. HND may continually' inspect each house for contract compliance and to determine the percent of completion prior to processing a draw request and releasing payment. HND may elect to make up to five (5) payments per house. HND may choose not to release payments if the work being performed is not of acceptable quality to HND and if the house is not being built or rehabilitated in accordance with plans and specifications, or if project is not on schedule. 7. Permanent Financing and Sales Prices a. The sales price of each home sold in accordance with this agreement must be based on a formal appraisal. Unless otherwise agreed to by HND, the sales price of each house shall not exceed the appraised value of the house. b. The purchasers of houses constructed with HOME funds must meet HOME and City of Augusta program' requirements. c. Buyers will be required to borrow no less than 60% of the sale price of the house from a private lending institution unless otherwise agreed to by HND. d. When necessary, L WDC may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. L WDC will, however, be required to assign these loans to HND once they have been executed. Project Developer Fees a. L WDC can draw down up to $8,500 per house of the HOME funds awarded under this agreement to pay itself a project developer fee. Draw downs are to be requested at the milestones listed below: 1. $1,000.00 - When design plans and development costs have been approved by HND and L WDC has entered in to a contract with a contractor to build a house. 2. $2,500.00 - When construction is 50 percent complete. 3. $4,000.00 - When construction is 100% complete. 4. $1,000.00 - Upon the sale of house and at the closing Note: The above developer fee structure relates only to single family affordable housing development projects. Any other development fee such as that for a multi-family rental project (or other commercial development) must be negotiated separately and approved by the Executive Director of HND or his/her designated representative prior to payment to grantee. 23 .. EXHIBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS New Construction NEIGHBORHOOD Rehabilitation PROJECT ADDRESS: TYPE DEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: []4 []3 [ ]4.. []3 [ ]2 [] 1 [ ]2 []1 LAND, CONSTRUCTION & SOFT COST: ESTIMATES Per S.F. Cost Land and Construction Costs Property Acquisition . Site Preparation General Construction - Contract Amount Contingency Sewer Tap Water Meter Landscaping Fencing Grading Aluminum Mini-Blinds Alarm System Termite Treatment Other - Specify Total Estimated Land & Construction Costs Per S.F. Cost Soft Costs Appraisal Title Search Survey Plans, Specs, A&E Real Estate Commission Advance on Non-Profit Developer Fee Temporary Utilities Yard Maintenance during Sale Period Property Taxes Builders Risk Insurance ' Construction Interest on Bank Loans Closing Cost Other- Specify Total Estimated Soft Costs Per S.F. Cost DEVELOPMENTCOSTS~ARY PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS HOME FUNDS REQUESTED PROJECTED HOME SUBSIDY SF SF SF SF SF 24 r-:;' EXHIBIT "C" PROJECT SCHEDULE OF COMPLETION L WDC MUST PROVIDE A COMPLETED SCHEDULE OF COMPLETION .AS EXHIBIT C - WITH APPROPRIATE PROJECT MILESTONES WITHIN 10 TO 15 DAYS AFTER SIGNING THIS AGREEMENT. THIS SCHEDULE MUST BE PROVIDED IN SUFFICIENT DETAIL TO PERMIT HND TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT. A SAMPLE SCHEDULE IS PROVIDED BELOW. 25