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HomeMy WebLinkAboutEas Augusta Community Development Corporation Augusta Richmond GA DOCUMENT NAME: G 1+S i A\) 9U S Tn c..o m PlI)fIJ I TY b ~" e Lo{J/ll e'" <r (ft ~ r oUJ<T."'^ DOCUMENT TYPE: C-Df1V -r(Z~ cT' YEAR: ;2.0D~ BOX NUMBER: ) lo FILE NUMBER: "L, ~ y. ot NUMBER OF PAGES: Id-~ " :J.J, # Ih ~,'J . CONTRACT between AUGUSTA, GEORGIA And East Augusta Community Development Corporation in the amount of $100,000.00 One Hundred Thousand Dollars for Fiscal Year 2002/03 Providing funding for HOME INVESTMENT PARTNERSHIPS PROGRAM "East Augusta Lease to Purchase Program" THIS AGREEMENT ("Contract"), is made and entered into as of the I ( ~ day of 2002, ("the effective date") by and between Augusta, Georgia - actin~gh the Housi g and Neighborhood Development Department (hereinafter referred to as "HND") with principal offices located at One 10th Street, Suite 430, Augusta, Georgia 30901, as party of the first part, hereinafter called "Augusta", and the East Augusta Community Development Corporation, a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "EACDC" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) as a HOME Program Participating Jurisdiction, and has received HOME Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for the purpose of providing and retaining affordable housing for HOME Program eligible families; as defined by HUD; 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, it is in the best interest of Augusta to enter into a contractual agreement with the EACDC 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, the EACDC has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, the EACDC has requested and Augusta has approved a total of$100,000.00 in grant funds to perform HOME 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 I. SCOPE OF SERVICES A. Scope of Services: EACDC agrees to utilize approved HOME funds to support the ImplementatIOn ot a Lease to Purchase Program in the East Augusta Area. The program is designed to assist those difficult to serve low-income families and individuals who cannot be served through the traditional homeownership processes. Under this agreement, EACDC will make available through the "lease to purchase" program a total of five (5) three and four bedroom single family homes to eligible families and households who qualify as low income. EACDC will identify eligible client households from an existing pool of clients who have applied for homeownership but currently are not credit ready. B. Use of Funds: HOME funds shall be used by EACDC for the purposes and objectives stated in Article 1, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for any other purpose(s) under this agreement is not permitted. The following provides a summary of the proposed uses of HOME Program funds under this Agreement: 1. Administration: An amount not to exceed $30,000.00 shall be expended by EACDC trom Year 2002 HOME funds to support administrative costs associated with the implementation of the Lease to Purchase Program only. These administrative funds shall not be used to support general administration and operating expenses of the EACDC. These funds will be prorated and provided to EACDC on a maximum twelve-12 month performance period Release of these administrative funds will be based strictly on EACDC's progress related to the implementation of the Lease to Purchase Program consistent with the Scope of Services and terms and conditions of this agreement. 2. Program Development: An amount not to exceed $45,000.00 shall be expended by EACUC to support program design and development and program evaluation and assessment activity associated with implementation of the lease to purchase program. The various components of this program will include but not be limited to the following: professional services, workshops, credit and consumer counseling services and program evaluation and assessment. 3. Downpayment Assistance: An amount not to exceed $20,000 shall be expended by EACUC to support the provision of down payment assistance to eligible low and moderate income clients in connection with the Lease to Purchase Program. Down payment assistance shall be provided in an amount not to exceed $15,000 per homebuyer or household (unless otherwise justified by EACDC and approved by AugustalHND) to help reduce the purchase price to the homebuyer. Augusta will make available HOME Program 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 2 \ owners sell or transfer ownership within the first five years on the loan anniversary date each year. Funds will be issued to EACDC at the loan closing for each participating homebuyer. Each homebuyer receiving down payment assistance through the HOME Program must sign a Promissory Note and a Deed to Secure Debt to protect the investment of HOME Program funds. EACDC will be the primary mortgage holder for the Deferred Payment Loan. B. Program Location and Specific Goals to be Achieved EACDC shall conduct project development activities and related services, exclusive of administrative operations, in the areas throughout its designated geographic boundaries. C. Project Eligibility Determination It has been determined that the use of HOME funds by the EACDC will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, the EACDC shall provide activities and services as described in the EACDC's 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 ll. BUDGET AND METHOD OF PAYMENT The EACDC will be compensated in accordance with this Article II, Budget and Method of Payment, that specifically identify the use of HOME and other project funding as represented in Article II. C.2 of this Agreement. The EACDC, its directors, officers and staff will carry out and oversee the implementation of projects to be funded with HOME funds. The EACDC agrees to perform the required services under the general coordination of the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the EACDC 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 ill the following manner: 1. Augusta agrees to pay the EACDC a maximum of$100,000.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to EACDC'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 and/or Exhibit A attached hereto and made part of this agreement. 3. EACDC shall be reimbursed a total of $100,000.00 for project expenses related to the provision of services and activities, subject to approval by Augusta, in compliance with 24 CFR 570 Subpart C. 4. HND will monitor the progress of the project and EACDC's performance on a monthly basis with regards to general administration of the project, the successful placement of lease purchase clients and the overall effectiveness of project. '"' ;) , 5. Upon the tennination of this agreement, any unused or residual funds remaining shall revert to Augusta and shall be due and payable on such date of the tennination and shall be paid no later than thirty (30) days thereafter. 6. Funds may not be transferred from line to line item in the project budget without the prior written approval of AugustalHND. 7. This Agreement is based upon the availability of HOME Program Funds. 8. EACDC shall make reasonable efforts to secure additional funding sources using the $100,000 in HOME funds awarded under this Agreement as leverage to support implementation of the East Augusta Lease to Purchase Program. B. Timetable for Completion of Project Activities 1. EACDC shall obligate the designated HOME funds within 12 months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, EACDC will provide a detailed outline of critical project milestones and projected expenditures during the course of the development project. These documents shall be submitted to HND within 10 to 15 days after execution of this agreement and will become an official part of the contractual agreement and provide the basis for overall project perfonnance measurements. C. Project Budget: Limitations 1. EACDC shall be paid a total consideration of $1 00,000.00 for full perfonnance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the EACDC. 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 EACOC. 2. The EACDC shall adhere to the following budget in the perfonnance of this contract. A. Administrative Costs: $ 30,000.00 1. Wages & Salaries $ 22,000.00 2. Fringe Benefits $ 3,300.00 3. Travel $ 500.00 5. Space Cost and Rental $ 2,000.00 6. Utilities and Telephone $ 1,500.00 7. Advertisement $ 700.00 TOTAL: Administrative Cost $ B. Program Activity Costs: $ 70,000.00 1. Program DesignlManagement $ 20,000.00 2. Education/Program Assessment $ 25,000.00 3. Down Payment Assistance $ 20,000.00 4. Computer & Software $ 5,000.00 TOTAL HOME PROJECT COST: $100,000.00 4 ." ARTICLE ill - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The Resale/Recapture Provisions in Article III shall ensure compliance with the HOME 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 5-year loan period, EACDC has the "right of first refusal" to repurchase the property for subsequent resale to other HOME Program eligible purchasers. If EACDC 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 EACDC shall recapture the HOME funds and return 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 EACDC (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article ill, or in accordance with ARTICLE IX.: Suspension and Termination. ARTICLE V. DOCUMENTATION AND PAYMENT A. This is a pay-far-performance contract and in no event shall Augusta provide advance funding to the EACDC or any subcontractor hereunder. All payments to the EACDC by Augusta wiil be made on a reimbursement basis. B. EACDC shall maintain a separate account and accounting process for HOME funding sources. C. EACDC shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to EACDC'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-IIO "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 EACDC for payment shall be accompanied by proper documentation and shall be submitted to HND, transmitted by a cover memo, for approval within thirty (30) calendar 5 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. EACDC shall maintain an adequate 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 EACDC. ARTICLE VI. REP A YMENT/PROGRAM INCOME A. EACDC 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 or rehabilitate houses for sale to eligible home buyers. The EACDC 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 EACDC 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 EACDC on a timely basis. Please refer to Appendix B incorporated herein by reference. 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. EACDC agrees that any program income generated by an activity that is only partially assisted with H01VIE funds shall be prorated to reflect the percentage of program income to be returned to Augusta by EACDC. C. The receipt and disposition by EACDC 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 EACDC 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 6 closing costs; developer fees, and; other expenses as approved by Augusta. The only pre- approved exception is described in Paragraph C (3) 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 a homebuyer exceed the appraised value of the property, EACDC will retain no less than $8500.00 as a developer fee. D. All funds retained by EACDC must be used for H01v1.E-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), EACDC shall transfer to Augusta upon expiration of this contract, any H01v1.E funds on hand at the time of expiration of any accounts receivable attributable to the use of said HOME funds. D. Any real property under the EACDC's control that was acquired or improved in whole or in part with HOME funds in excess 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-CDBG funds for site acquisition purposes and/or improvements to the property. ARTICLE VIT. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS A. EACDC 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). As applicable, these compliance activities include but are not limited to the following: 1. Acquisition requirements and maximum acquisition prices 2. Maximum per unit HOME Program subsidy amount [Section 221 (d)(3)] 3. Combined affordability of assisted units 4. Income eligibility of homebuyers 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). EACDC shall maintain records that document all clients served with HOME funds. In addition, EACDC shall document each client's race, family, 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 EACDC, shall provide the information and verification described above. C. EACDC shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply EACDC with the following report forms and require the same to 7 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. D. EACDC shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be maintained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. E. EACDC 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. F. In compliance with OMB Circular A-II0 regarding retention and custodial requirements for records, EACDC shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following qualifications: 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 H01tIE 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. G. In connection with the expenditure of federal funds, EACDC 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 such documents are to 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 EACDC,s fiscal year. The EACDC is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. The EACDC shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. H. Open Records Disclosure: EACDC'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.C.G.A. 9 50-18-70). EACDC agrees to comply with the Open Records Act should a request be submitted to it. Further, EACDC agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: EACDC 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 EACDC's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. EACDC shall provide to the Grantee a tentative annual schedule 8 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 ADMlNISTRATIVE REQUlREMENTS A. Conflict of Interest EACDC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, 570.611, OMB Circular A-II0 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 EACDC. 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 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. EACDC 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. EACDC 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 EACDC. In such instances, EACDC shall consult with HNDI 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 EACDC. D. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in Appendix A and are incorporated herein by reference. ARTICLE LX. OTHER REQUIRElVlENTS A. Fair Housing EACDC 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 EACDC publications and/or advertisements. (24 CFR 570.601). 9 B. Non-Discrimination EACDC 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. C. Non-Discrimination and Residential Property EACDC 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 aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. D. Labor Standards 1. General: EACDC agrees that in instances in which there is construction work of over :li:l,UUU financed in whole or in part with HOME funds under this Agreement, the EACDC 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 EACDC 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 Protection Act of 1973 (42 USC 4001-4128), EACDC 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 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 FEIvIA notification and tlood insurance has been obtained in accordance with section I 02e a) of the Flood Disaster Protection Act of 1973. 10 G. Displacement and Relocation EACDC agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HOME 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 EACDC 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 ofrace, color, religion, sex or national origin. The EACDC will in all solicitations or advertisements for employees placed by or on behalf of the EACDC, 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 EACDC agrees that to the greatest extent feasible, opportunities for training and employment be given to 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, EACDC 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 EACDC 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 HND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, EACDC 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 EACDC 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 11 "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 EACDC 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 EACDC shall obligate and expend its funds as designated under ARTICLE I. (C) and (D). O. Compliance with Laws and Permits The EACDC 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. EACDC agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The EACDC 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 EACDC agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 V.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 V.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 EACDC will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The EACDC 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 familiai 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 EACDC 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 EACDC agrees to make efforts to encourage the use of minority and women-owned business enterprises in connection with HOME supported activities. 12 S. Religious Influence The EACDC 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 EACDC will not discriminate against any person applying for shelter on the basis of religion. EACDC 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 EACDC has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. U. Travel If applicable, EACDC 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 Compliance with construction requirements as outlined in EXHIBIT C is required. All housing units [rehabilitated, reconstructed or newly constructed] and assisted with HOME Program funds must, before occupancy, meet the Property Standards specified at 25 CFR 92.251 [the HONIE Program Regulations]. The Property Standards at 24 CFR 92.251 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 HUD Section 8 Housing Quality Standards [HQS]. All housing assisted under this Agreement is "new construction" by HONIE 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 EACDC 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 Work, or the provisions of ARTICLE VIII (N), Augusta may withhold cash payments until EACDC cures any breach of the agreement. If EACDC fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for EACDC's program. B. Notwithstanding the above, the EACDC shall not be relieved of its liability to Augusta for damages sustained by Augusta by virtue of any breach of this agreement by EACOC. In addition to any other remedies it may have at law or equity, Augusta may withhold any payments to the EACOC 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. [n the event 13 Augusta terminates the Agreement, Augusta shall pay EACDC for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, EACDC 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. Augusta will receive all notice at the address indicated below: Office of the Administrator Municipal Building 537 Green Street, Room 801 Augusta, Georgia 30911 With copies to: Augusta Housing and Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 EACDC shall receive all notices at the following address: East Augusta Community Development Corporation 1011 12th Street Augusta, Georgia 30901 ARTICLE Xll. lNDEMN1FICATION The EACDC 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, the EACDC 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 xm. INSURANCE AND BONDING EACDC 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, EACDC 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 EACDC handling or charged with the responsibility for handling funds and property pursuant to this contract. EACDC shall procure and provide, for approval by the Augusta, comprehensive general liability . 14 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, members, employees, and successors. Additionally, the EACDC 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 the EACDC 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 except as provided in ARTICLE XN. 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 EACDC 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. 15 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: AUGUSTA, GEORGIA ;:; , /~/ ..:l, ?,- - '-SEAL"~ ....... . ~ ~."='-J ~ _. 1-" - - ....- I ~ ~ .-.:... ~ _ _ ~; ':'i. . ~ .._~ >- .-, W .. - - . - . _ ena BOMer -'- . - I Clerk of Commission ~- .~ ty: ; ...' .( ATTEST: EAST AUGUSTA COMMUNITY DEVELOPMENT CORPORATION ( Grantee ) SEAL 16 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") 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-B3 - 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 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 Travel Log Conflict ofInterest Affidavit 17 APPENDIX B REPORTING REQUIREMENTS The EACDC 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 IS, 2002. 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 xvn of Title 29, Code of Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972.) 1. Part 1926 - Safety and Health Regulations for Construction, Chapter xvn 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 & 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 contractors 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 HOD 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 fIND Construction and Rehabilitation Inspector prior to release of the funds for that project. 20 ATTACHMENTS EACDC Notebook and all contents therein including the statutes and forms listed in APPENDIX A are hereby attached and included as part in parcel to this Agreement. 21 EXHIBIT "A" PROJECT AND DEVELOPMENT MANAGEMENT PROCEDURES 1. Augusta through the Housing and Neighborhood Development Department agrees to provide up to $100,000.00 of HOME funds and to EACDC to: 2. Actual Project development sites, houses, construction time tables, sales prices, funding amounts, and the like will be specified in EXHIBIT-B. Each new project added under EXHIBIT -B must be reviewed and approved by the Executive Director of the Housing and Neighborhood Development Department or his/her designated representative. 3. HND must approve all design plans and specifications for each project before work is commenced and before funds are released for reimbursement. Construction payments released to EACDC In accordance with a payment schedule outlined in a construction contract between EACDC and the Contractor. 3. EACDC (the grantee) will provide the lots on which all new houses are to be built under this agreement. 4. With HND approval, EACDC may use HOME funds: a. To help pay the development costs as outlined below in item 6. b. As permanent financing (second mortgage loans) for qualified homebuyers as outlined in item 7. c. As the source of funds from which a project developer fee as outlined in item 7 below will be paid. 5. CONSTRUCTION COSTS AND REQUIRE1vfENTS 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. EACDC will provide construction management for the project to ensure that construction work is being carried out in accordance with plans and specifications (on time and within budget). c. EACDC must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each house, EACDC must also collect a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. d. EACDC 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 22 . is not being built or rehabilitated in accordance with plans and specifications, or if project is not on schedule. 6. 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 prices of each house shall not exceed the appraised value of the house. b. The purchasers of houses constructed with HOrvIE 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, EACDC may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. EACDC will, however, be required to assign these loans to HND once they have been executed. 7. PROJECT DEVELOPER FEES a. EACDC can draw down up to $8,500 per house of the HOrvIE 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 EACDC 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: Any other developer fee must be incorporated in the project development summary and budget and negotiated and approved by the Executive Director of HND or his/her designated representative prior to payment to grantee. ')'" _J .. .1~' . EXHlBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: TYPE DEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: New Construction NEIGHBORHOOD Rehabilitation [ ]4 [ ]4 []3 [ ]2 [] 1 []3 [ ]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~~Y PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRlCE NON-PROFIT FUNDS HOME FUNDS REQUESTED PROJECTED HOME SUBSIDY SF SF SF SF SF 24 . <;" It EXHIBIT "C" PROJECT SCHEDULE OF COMPLETION 1) Begin construction on the fIrst three (3) houses by May 1,2002 at the latest. 2) Complete construction on the fIrst three (3) houses by November 14, 2002 at the latest. 3) Complete construction of all houses under this contract within twelve (12) months of the contract date. 25 \ J CONTRACT between AUGUSTA, GEORGL-'\ And Sand Hills Neighborhood Association, Incorporated in the amount of $200,000.00 Two Hundred Thousand Dollars for Fiscal Year 2002/03 Providing funding for HOME INVESTMENT PARTNERSHIPS PROGRAlVI "Sand Hills Neighborhood Revitalization Project" THIS AGREEMENT ("Contract"), is made and entered into as of the /$ 1- day of 0 ct. , 2002, ("the effective date") by and between Augusta, Georgia, acting through the Housing and Neighborhood Development Department (hereinafter referred to as "HND") - with principal offices at One 1 Oth Street, Suite 430, Augusta, Georgia 30901, as party of the first part, hereinafter called "Augusta", and Sand Hills Neighborhood Association. Inc., a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "SNA" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) as a HarvIE Program Participating Jurisdiction, and has received HO~ffi Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for the purpose of providing and retaining affordable housing for HOME Program eligible families; as defmed by HUD; and WHEREAS, the grantee is a designated "sub-recipient" - hereinafter referred to as SNA, Inc. and will be involved in HOME eligible 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 wishes to enter into a contractual agreement with the SNA for the administration ofHOl\iIE 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, SNA has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, the SNA has requested and Augusta has approved a total of $200,000.00 in grant funds to perform HOME eligible activities as described in Article I, below: NOW, THEREFORE, the parties ofthis 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: SNA agrees to utilize approved HOrvill funds to support initial start-up and development related activities associated with the introduction of an affordable housing and community development program in the Sand Hills Community. This multi-year affordable housing development program will involve the construction, rehabilitation and reconstruction of single-family scattered site affordable housing throughout the community. Phase I of this development effort will be oriented to building capacity for the new community development organization. This will include initial planning and pre-development activities. Under this Year 2002 agreement, SNA will construct and/or rehabilitate 4 to 5 affordable housing units. These units will made available for purchase or rental by eligible low and moderate-income homebuyers. B. Use of Funds: HOME funds shall be used by SNA for the purposes and objectives stated in Article r, Scope of Services, and Exhibit "A" of this Agreement. The use ofHOIvIE funds for any other purpose(s) under this agreement is not permitted. The following summarizes the proposed uses of ROME Program funds under this Agreement: 1. Administration An amount not to exceed $50,000.00 shall be expended by SNA from Year 2002 HOIv'lE funds to support administrative costs associated with the implementation of the Sand Hills Revitalization Project. These administrative funds shall not be used to support general administrative and operating expenses of the Sand Hills Neighborhood Association. These funds will be prorated and provided to SNA over a twelve- 12 month performance period. Release of administrative funds will be based strictly on SNA's progress related to the production of affordable housing units consistent with the Scope of Services and terms and conditions of this agreement. 2. Pre-Development Services An amount not to exceed $10,000 shall be expended by SNA to support pre-development costs associated with the implementation of the Sand Hills Revitalization Project. These costs will include such costs as architectural engineering services, permit fees, property and environmental surveys. 3. Acquisition of HOME Development Sites A total of $15,000.00 shall be expended by SNA from Year 2002 HOrvill funds for [he acquisition of project development sites. These lots will facilitate the construction of :2 affordable housing units for sale to HOME Program eligible homebuyers. These funds are awarded as a grant to SNA 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 SNA. Prior to the purchase of any HOrvIE funded development sites, SNA shall notify .HND of the location and costs. This information shall be supported with a valid appraisal or reasonable basis for establishing the purchase price of the property after construction. 3. New Construction - Development of Home Sites A total of $11 0,000.00 is budgeted to support construction and related cost of approximately 4 single-family affordable housing units throughout the Sand Hills Revitalization Project area. For project development and management purposes, SNA will proceed with the construction of 2 to 3 affordable housing units at any time during the implementation of this project. These affordable housing units will be constructed by SNA and sold to eligible low and very low- income homebuyers. Permanent mortgage financing will be secured by each homebuyer 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 homebuyer 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 (OPL) to each eligible homebuyer. This assistance is a zero percent (0%) interest bearing second mortgage to the homebuyer - 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 SNA at the loan closing for each participating homebuyer. Each homebuyer receiving down payment assistance through the HOl'vlE Program must sign a Promissory Note and a Deed to Secure Debt to protect the investment of HOME Program funds. SNA is the primary holder for the Deferred Payment Loan. C. Project Location and Specific Goals to be Achieved SNA shall conduct project development activities and related services in its project area (also known as the Sand Hills Community) that incorporates the following boundaries: North View Avenue and Oakland Avenue on the North; Bransford Road on the West; Wheeler Road (bordering the Augusta Club) on the South; and Johns Road on the East. D. Project Eligibility Determination It has been determined that the use of HOME funds by the SNA will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, SNA 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 A1"'ID METHOD OF PAYMENT The SNA will be compensated in accordance with Article II, Budget and Method of Payment, that specifically identifies the use of HOME Program funds and other project funding as represented in Article II. C.2 of this Agreement. The SNA. its directors, officers and staff will carry out and oversee 3 the implementation of projects to be funded with HOME funds. The SNA agrees to perfonn the required services in cooperation with the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the SNA may engage the services of outside professional services consultants and contractors to assist in carrying out the program and projects. A. Augusta shall designate and make HONfE Project funds available in the following manner: 1. Augusta agrees to pay the SNA a maximum of$200,000.00 under this agreement for project expenses incurred as outlined in ARTICLE I, provided that SNA has complied 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. HND will monitor the progress of the project and SNA'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 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 HOME Program Funds. 10.. SNA shall make reasonable efforts to secure additional funding sources using $200,000.00 in HONfE funds awarded under this agreement as leverage to support the Sand Hills Neighborhood Revitalization. B. Timetable for Completion of Project Activities 1. SNA shall obligate the designated HOME funds within eighteen-18 months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, SNA will provide a detailed outline of critical project milestones and projected expendirures during the course of the development project. These documents will become an official part of the contractual agreement and provide the basis for overall project performance measurements. 2. Project Budget: Limitations 1. SNA shall be paid a total consideration of $200,000.00 for full perfonnance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the SNA. 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 SNA. 4 2. The SNA shall adhere to the following budget in the performance of this contract. A. Administrative Cost: $ 50,000.00 Wages & Salaries 36,000.00 Fringe Benetits 2,400.00 Insurance 1,200.00 Utilities and Telephone 3,600.00 Equipment Purchases 5,000.00 Training and Conferences 1,800.00 TOTAL: Administrative Cost $ 50,000.00 Project Activity Cost $ 150,000.00 Pre-Development/Consultant Svcs. 10,000.00 Acquisition - Site Clearance 15,000.00 Construction - Infrastructure 110,000.00 Down Payment Assistance 10,000.00 Other: Marketing, Closing Cost 5,000.00 B. TOTAL HOl\1E PROJECT COST: $ 200,000.00 ARTICLE ill - RESALEIRECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The Resale/Recapture Provisions in this Article III will ensure compliance with the HONIE Program "Period of Affordability" requirements in 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 5-year loan period, SNA has the "right of first refusal" to repurchase the property for subsequent resale to other HONIE Program-eligible purchasers. If SNA exercises its right of first refusal and then sells the property another HOME program-eligible purchaser, tbe new purchaser must agree to accept the restrictions on the use of the property required by the HOME Program througb 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 SNA shall recapture the HOME funds and return the funds to Augusta, which will ensure that the recaptured HOl.\iIE 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 LB of this Agreement. 5 ARTICLE IV. TERivI OF CONTRA.CT The term of this agreement shall commence on the date when this agreement is executed by Augusta and the SNA (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article ID, or in accordance with ARTICLE IX: Suspension and Termination. ARTICLE V. DOCUMENTATION AJ.'ID PAYMENT A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to the SNA or any subcontractor hereunder. All payments to the SNA by Augusta will be made on a reimbursement basis. B. SNA shall maintain a separate account and accounting process for HON1E funding sources. C. SNA shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to SNA'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 OJ\.1B Circular A-II0 "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 SNA for payment shall be accompanied by proper documentation and shall be submitted to END, transmitted by a cover memo, for approval within 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 HOl\l1E funds are to be used to reimburse salary expenditures, proper documentation shall 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. SNA shall maintain an adequate 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 SNA. ARTICLE VI. REPAYlVIENT/PROGRAM INCOME A. SNA is to return to Augusta one hundred percent of any program income (100% - less expenses described below) of the HOI\tIE funds it draws down under this contract to construct or rehabilitate houses for sale to eligible home buyers. The SNA 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 SNA directly generated from the use of HOI\tIE funds in accordance with 24 CFR 92.504(c)(3. Program income includes but is not limited to the following: 6 1. Proceeds from the sale or long-term lease of real property acquired or improved with HOivlE 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 SNA on a timely basis. Please refer to Appendix B - herein incorporated by reference. 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. SNA 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 returned to Augusta by SNA. C. The receipt and disposition by SNA of repayments as defined in 24 CFR 92.503(b) shall be in accordance with provisions of24 CFR 92.504(c)(3) which provides that all repayment interest and other return on the investment of HOivIE funds shall be remitted by the SNA to Augusta unless otherwise specified. Where HOivIE 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: 2. 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 (3) below. 3. Should the cost of developing a property for sale to a homebuyer exceed the appraised value of the property, SNA will retain no less than $8500.00 as a developer fee. SNA 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 SNA must be used for HOlYIE-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), SNA shall transfer to Augusta upon expiration of this contract, any HONIE funds on hand at the time of expiration of any accounts receivable attributable to the use of said HOtv'lE funds. E. Any real property under the SNA's control that was acquired or improved in whole or in part with HONIE funds in excess 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 ,., 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 ::my portion of the value attributable 7 to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. ARTICLE VII. RECORD KEEPING, REPORTING Al'ID MONlTORJNG REQUIREMENTS A. SNA shall carry out its HOtvIE 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 HOtvtE 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). SNA shall maintain records that document all clients served with HOME funds. In addition, SNA 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 SNA, shall provide the information and verification described above. C. SNA shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply SNA with the following 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. D. SNA shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be maintained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. E. SNA 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. F. In compliance with OMB Circular A-IIO regarding retention and custodial requirements for records, SNA shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following qualifications: 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. 8 2. Records for non-expendable personal property acquired with HOwlE grant funds shall be retained for three years after its final disposition. Non-expendable personal property means tangible personal property having a usefullife of more than one year and an acquisition cost of $300 or more per unit. G. In connection with the expenditure of federal funds, SNAs 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 SNA's fiscal year. The SNA is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. The SNA shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. H. Open Records Disclosure: SNA'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.C.G.A. S 50-18-70). SNA agrees to comply with the Open Records Act should a request be submitted to it. Further, SNA agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: SNA 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 SNA's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. SNA 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 vm ADMINISTRATIVE REQUIRE:MENTS A. Conflict ofInterest SNA agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, 570.611, OMB Circular A-lIO and orvrn Circular A-I 02 as appropriate. This cont1ict of interest provision applies to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the SNA. No person described above who exercises, may exercise or has exercised any functions or responsibilities with respect to the HOlVCE 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 tinancial 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. SNA in the persons of Directors, Officers, 9 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. SNA shall comply with the requirements and standards of OM:B 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 SNA. In such instances, SNA 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 SNA. 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 SNA agrees that it will conduct and administer HOME activities in conformity with Pub. 1. 88-352, "Title VI of the Civil Rights Act of 1964", and with Pub. 1. 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 SNA publications and/or advertisements. (24 CFR 570.601). B. Non-Discrimination SNA 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. C. Non-Discrimination and Residential Property SNA 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 aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. D. Labor Standards 1. General: SNA agrees that in instances in which there is construction work of over $2,000 financed in whole or in part with HOl\tIE funds under this Agreement, the SNA 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 10 327 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 SNA agrees that in accordance with the National Environmental Policy Act of 1969 and 24 CFR part 58, it will cooperate with AugustaIHND in complying with the Act and regulations, and that no activities will be undertaken until notified by AugustaIHND 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 use 4001-4128), SNA agrees that HOME funds shall not be expended for acquisition or construction in an area identified by the Federal Emergency Management Agency (FE.tvlA) 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 SNA agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HOME 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 SNA 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 SNA will in all solicitations or advertisements for employees placed by or on behalf of the SNA, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. 1. Emplovment and Business Opportunities SNA 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). [1 J. Lead-Based Paint In accordance with Section 92.355 of the H01vfE Regulations and Section 570.608 of the CDBG Regulations, SNA 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 compiy 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 SNA 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 HND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, SNA 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 SNA 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 SNA 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 SNA shall obligate and expend its funds as designated under ARTICLE 1. (C) and (D). O. Compliance with Laws and Permits The SNA shaIl 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. SNA agrees to obtain all necessary permits for intended improvements or activities. P. Assi!!nment of Contract ~ The SNA shall not assign any interest in this contract or transfer any interest in the same without the prior written approval of Augusta. 12 Q. Equal Employment Opportunity The SNA agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 D.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 D.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 SNA will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The SNA 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 SNA 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 SNA agrees to make efforts to encourage the use of minority and women-owned business enterprises in connection with HOlVffi supported activities. S. Religious Influence The SNA 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 SNA will not discriminate against any person applying for shelter on the basis of religion. SNA 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 SNA has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. u. Travel If applicable, SNA 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 CFRPart301). v. Construction Requirements - SEE APPENDIX C All housing units [rehabilitated, reconstructed or newly constructed] and 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 CFR 92.251 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" 13 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 SNA 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 the ARTICLE I, Scope of Work, or the provisions of ARTICLE VIII. (N), Augusta may withhold cash payments until SNA cures any breach of the agreement. If SNA fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for the 30901 DC. B. Notwithstanding the above, the SNA 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, may withhold any payments to the SNA 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 area 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 SNA for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, SNA shall not be relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, Vlli, 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. Augusta will receive alI notice at the address indicated below: Office of the Administrator Municipal Building 530 Green Street With copies to: Augusta Housing and Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 Sand Hills Neighborhood Association, Inc. shall receive all notices at the following address: Sand Hills Neighborhood Association P. O. Box 3151 Augusta, GA 30901-3151 14 ARTICLE XII. INDEMNIFICATION The SNA 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, the SNA 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 XIII. INSURANCE AND BONDING SNA 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, SNA 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 SNA handling or charged with the responsibility for handling funds and property pursuant to this contract. SNA 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, members, employees, and successors. Additionally, the SNA 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 the SNA 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 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 SNA beyond the tenn of this Agreement. ARTICLE XV. LEGAL PROVISIONS DEElYIED lNCLUDED 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. 15 ARTICLE XVI. COUNTERPARTS This agreement is executed in (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 herein. IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written above. :..~- ~ ,- ~- 1/ ~,' ~ '. "-:::. SEAT. cry ATTEST: , _/ Lena Bonner Clerk of Commission A ITEST: SAND IDLLS NEIGHBORHOOD ASSOCIA nON, INC. (Grantee) SEAL By: ~ J;/;j~ g' ~ - ~' ~ '/ ... 16 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") OrvIB Circular A-II0 - Uniform Administrative Requirements for Grants and Agreement with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations Ol\1B Circular A- 122 - Cost Principles for Non-Profit Organizations 01vIB 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 Travel Log Contlict ofInterest Affidavit 17 APPENDIX B REPORTING REQUIREMENTS The SNA 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 REQUIRElYIENTS 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., B inningham, Alabama. B. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc., Birmingham, Alabama. C. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc., Birmingham, Alabama. D. Standard Mechanical Code", latest edition, Southern Building Congress, International, Inc., Birmingham, Alabama. E. ''National Electric Code", latest edition, National Fire Protection Association, Quincy, Massachusetts. F. Model Energy Code, 1997, Council of American Building Officials. G. "ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice, Americans with Disabilities Act of 1990." H. Williams-Steiger Occupational Safety and Health Act of 1970. Public Law 91-596. 1. 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). J. Part 1926 - Safety and Health Regulations for Construction, Chapter XV1I of Title 29, Code of Federal Regulations (Federal Register, Volume 37, Number 243, December 16,1972. K. Section 106 of the National Historic Preservation Act (16 D.S.C. 470t) 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 COBG 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 HONlE 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 contractors be allowed to bid on CDBG funded projects. 19 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 review and approval prior to bidding. fIND 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 ATTACIDv1ENTS SNA Notebook and all contents therein including the statutes and forms listed in APPENDIX A are hereby attached and included as part in parcel to this Agreement. 21 EXHIBIT "A" PROJECT DEVELOPMENT Ai'ID MAl"fAGElYIENT PROCEDURES 1. Augusta through the Housing and Neighborhood Development Department agrees to provide up to $200,000.00 in Year 2002 HOME Investment Partnerships Funds to the Sand Hills Neighborhood Association. These funds will support administration, acquisition, down payment assistance and other costs associated with the production of approximately 20 affordable single family residential units in connection with the continuation of the Sand Hills Revitalization Project. 2. The acquisition of project 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 SNA in accordance with a payment schedule outlined in the construction contract between SNA and the Contractor. 4. SNA will provide the lots on which all new affordable homes are to be built under this agreement and in connection with the Bethlehem-Turpin Hill Revitalization Project. 5. With HND approval, SNA 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 rna.ximum per unit amount as defined at 24 CFR 92.250. b. SNA will provide construction management for the project to ensure that construction work is being carried out in accordance with plans, spec ifications and the project budget. c. SNA must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each house, SNA must also secure a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. d. SNA must collect progress and tinal lien releases from the contractor, subcontractors and material suppliers prior to making a payment to a contractor. 22 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 HONIE funds must meet HONIE 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, SNA may leave HONIE development funds in a house as a second mortgage permanent loan to the purchaser. SNA will, however, be required to assign these loans to HND once they have been executed. Project Developer Fees a. SNA can draw down up to $8,500 per house of the HOrvIE 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 fIND and SNA 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 developerfee strZlcture relates only to single family affordable housing development projects. Any other development fee SZlch as that for a multi-famiZv 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. ~~ L.~ . ./ ~ t EXHIBIT B: ESTllVIATED PER UNIT AL~D/OR TOTAL DEVELOPlVIENT COSTS New Construction NEIGHBORHOOD Rehabilitation PROJECT ADDRESS: TYPE DEVELOPNIENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: [ ]4 [ ]4 []3 []2 []l []3 [ ]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 DEVELop~mNTCOSTS~~Y PROPOSED DEVELOPrvlENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS HOME FUNDS REQUESTED SF SF SF SF 24 . .' , PROJECTED HOlvIE SUBSIDY SF EXHIBIT "e" PROJECT SCHEDlTLE OF CO:MPLETION SNA J.vfUST PROVIDE A COlYlPLETED SCHEDULE OF COJ.vlPLETION AS EXHIBIT C - WITH APPROPRIATE PROJECTkIILESTONES WITHIN 10 TO 15 DA YS AFTER SIGNING THIS AGREEJ.\lfENT. THIS SCHEDULE lvfUST BE PROVIDED IN SUFFICIENT DETAIL TO PERJvJJT HND TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE P ERFORi.'vfANCE OF THIS AGREE1\IfENT. A SA}.;fPLE SCHEDULE IS PROVIDED BELOW 25 '- J CONTRACT between AUGUSTA, GEORGIA And Antioch Ministries, Incorporated in the amount of $250,000.00 Two-Hundred Fifty Thousand Dollars for Fiscal Year 2002/03 Providing funding for HOl\1E INVESTl\1ENT PARTNERSHIPS PROGRAM "Florence Street Revitalization Project" TillS AGREEl\1ENT ("Contract"), is made and entered into as of the J~ I- day of k ^ ~ 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 30901, as party of the first part, hereinafter called "Augusta", and Antioch Ministries, Inc., a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "AMI" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) 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 CCRDO) and Community Based Development Organization (CBDO) - hereinafter referred to as A1\1I and will be involved in HOME eligible 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 HOME entitlement funds for investment in affordable housing to be developed, sponsored or owned by a designated Community Housing Development Corporation (CHDO); and WHEREAS, Augusta wishes to enter into a contractual agreement with the AMI for the administration of HOME eligible affordable housing development activities; and WHEREAS, the project 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, AMI has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and A1v1I has requested and Augusta has approved a grant in the amount of $250,000.00 in grant funds, to perform HOME 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 I. SCOPE OF SERVICES A. Scope of Services Project Description: AMI agrees to utilize approved HOME funds to support project related costs associated with the Florence Street Revitalization Project. This multi-phase affordable housing project involves the development and construction of approximately 20 single-family scattered site and in fill affordable housing units throughout the Florence Street Community. Under this Year 2002 agreement, AMI will construct 4 to 6 affordable single family housing units that will be made available for purchase by eligible low and moderate-income homebuyers. B. Use of Funds: HOME funds shall be used by AMI for the purposes and objectives stated in ArtIcle 1, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for any purpose(s) is not permitted. The following summarizes the proposed uses of HOME Program funds under this Agreement: 1. Administration An amount not to exceed $50,000.00 shall be expended by AMI from Year 2002 HOME funds to support administrative costs associated with the implementation of the Florence Street Revitalization Project. These administrative funds shall not be used to support general administrative and operating expenses of Antioch Ministries, Inc. Administrative funds wiIl be prorated and provided to AMI on an eighteen-I 8 month performance based period - and will be based on AMI's progress related to the production of affordable housing units consistent with the terms and conditions of this agreement. 2. Acquisition, Demolition and Site Preparation - HOME Development Sites An amount not to exceed $100,000.00 shall be expended by AMI to support acquisition, demolition and site preparation costs related to the development of 4 to 6 affordable housing units. These funds are awarded as a grant to AMI 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 AMI. Prior to the purchase of any HOME funded development sites, AMI shall notify HND of the location and acquisition costs. This information shall be supported with a valid appraisal or reasonable basis for establishing the purchase price of the property after construction. 2 t f 3. New Construction - Development of Home Sites To support construction related cost of the single-family affordable units in connection with the Florence Street Revitalization Project, AMI will utilize a $250,000.00 Revolving Loan Fund that has been provided by the Augusta Neighborhood Improvement Corporation. This revolving loan fund will provide interim construction funds that will facilitate the construction of individual affordable housing units under this agreement. For project development and management purposes, AMI may proceed with the construction of 2 to 3 units at any time during the implementation of this project. These affordable housing units will be constructed by AMI and sold to eligible low and very low-income homebuyers. Permanent mortgage financing to be secured by each homebuyer will serve to replace the revolving loan funds utilized to support construction costs related to the implementation of this project. 4. Down Payment Assistance for Eligible Homebuyers An amount not to exceed $100,000.00 will be allocated to support down payment assistance costs associated with the sale of houses to be constructed under this contract agreement. Down Payment assistance shall be provided in an amount not to exceed $15,000 per homebuyer 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 AMI at the loan closing for each participating homebuyer. Augusta requires that each homebuyer receiving down payment assistance through the HOrvIE Program to sign a Promissory Note and a Deed to Secure Debt to protect the investment of HOME Program funds. AMI is the primary mortgage holder for Deferred Payment Loan. C. Program Location and Specific Goals to be Achieved AMI shall conduct project development activities and related services in its project area (also known as the Florence Street Community) that incorporates the following boundaries: Holly Street on the West; 12th 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 HOrvIE funds by the AMI will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, AMI shall complete the project activities and services as described in the description of the project, including use of funds, specific tasks to be performed and a detailed schedule for completing the tasks for this project as provided in Exhibit A of this contract - which is herein incorporated by reference. ARTICLE II. BUDGET AND METHOD OF PAYMENT AMI will be compensated for performance of services under this agreement in accordance with this Article II, Budget and Method of Payment. This Article specifically identifies the use of HOrvIE and other project funding as represented in Article IT, C.2. The A.l\1I, its directors, officers and staff will carry out and oversee the implementation of projects to be funded with HOIvlE funds. The AMI agrees to perform the required services under the general coordination of the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the AMJ may 3 " engage the services of outside professional services consultants and contractors to help carry out the program and projects. A. Augusta shall designate and make HOJ\1E Project funds available in the following manner: 1. Augusta agrees to pay the AMI a maximum of $250,000.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to AMI'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 and or Exhibit A as attached hereto and made part thereof. 3. HND will monitor the progress of the project and AMI'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. Any unused or residual funds remaining upon the termination of this agreement 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. This agreement is based upon the availability ofHOJ\1E Program Funds. 9. AMI shall make reasonable efforts to secure additional funding sources using the $250,000.00 in grant funds awarded under this agreement as leverage to support the Florence Street Revitalization Project. B. Timetable for Completion of Project Activities 1. AMI shall obligate the HOME funds provided with this agreement within 18 months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, AMI will provide a detailed outline of critical project milestones and projected expenditures during the course of 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. AMI shall be paid a total consideration of $250,000.00 for full performance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the AMI. 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 AMI. 4 '.. 2. The AMI shall adhere to the following budget in the performance of this contract. A. Administrative: $ 50,000.00 Wages & Salaries Fringe Benefits TraveIlTraining Insurance Space Cost and Rental Utilities and Telephone 47,000.00 3,000.00 B. Project Activity Costs $ 200,000.00 Pre-Development Acquisition 100,000.00 Consultant Services Construction - Infrastructure Down Payment Assistance 100,000.00 TOTAL HOME PROJECT COST: $ 250,000.00 ARTICLE ill - RESALEfRECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The ResalelRecapture Provisions in this Article III shall ensure compliance with the HOlV1E 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 5-year loan period, AMI has the "right of first refusal" to repurchase the property for subsequent resale to other HOlV1E Program-eligible purchasers. If AlvlI 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 AMI shall recapture the HOME funds and return 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 LB 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 AMI (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article LD, or in accordance with ARTICLE IX: Suspension and Termination. 5 '& ARTICLE V. DOCUMENTATION AND PAYMENT A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to the AMI or any subcontractor hereunder. All payments to the AMI by Augusta will be made on a reimbursement basis. B. AMI shall maintain a separate account and accounting process for HOME funding sources. C. AMI shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to AMI'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 O.MB Circular A-IIO "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 AMI 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 shall 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. AMI shall maintain an adequate 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 AMI. ARTICLE VI. REPAYMENTfPROGRAM INCOME A. AMI 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 or rehabilitate houses for sale to eligible home buyers. The AMI shall return these funds on an individual project (i.e., per house) basis. The return of the funds shall be due immediately on tbe 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 AMI directly generated from the use of HO~lE funds in accordance with 24 CFR 92.504(c)(3. Program income includes but is not limited to tbe following: 1. Proceeds from the sale or long-term lease of real property acquired or improved with HOME funds; 6 '. 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 AMI on a timely basis. Please refer to Appendix B - which is incorporated herein by reference. 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. AMI 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 returned to Augusta by AMI. C. The receipt and disposition by AMI of repayments as defined in 24 CFR 92.503(b) shall be in accordance with provisions of24 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 AMI 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: 2. 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 (3) 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. 3. Should the cost of developing a property for sale to a homebuyer exceed the appraised value of the property, AMI will retain no less than $8500.00 as a developer fee. D. All funds retained by AMI 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), AMI 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. E. Any real property under the AMI's control that was acquired or improved in whole or in part with HOME funds in excess 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 ofthe property, less any portion of the value attributable to expenditures of non-HOME funds for site acquisition purposes and improvement to the property. 7 . ARTICLE Vll. RECORD KEEPING, REPORTING A..t~ MONITORING REQUIREMENTS A. AL\1I 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 22 1 (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). AMI shall maintain records that document all clients served with HOME funds. In addition, AMI 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 to A1\1I which, when completed by those clients served by AMI, shall provide the information and verification described above. C. AMI shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply AIvII with the following 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. D. AMI shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be maintained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. E. AMI 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. F. In compliance with OrvtB Circular A-II0 regarding retention and custodial requirements for records, AMI shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following qualifications: 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. 8 G. In connection with the expenditure of federal funds, AMI 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 AMI's fiscal year. The AMI is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. The AMI shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. H. Open Records Disclosure: AMI'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.C.G.A. 9 50-18-70). AMI agrees to comply with the Open Records Act should a request be submitted to it. Further, AMI agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: AMI 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 AMI's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. AMI 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 VllI ADMINISTRATIVE REQUIREMENTS A. Conflict of Interest AMI agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, 570.611, OMB Circular A-IIO 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 AMI. 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 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. AMI 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) 9 B. AMI 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 AMI. In such instances, AMI 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 AMI. 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 AMI agrees that it will conduct and administer HONIE 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 AMI publications and/or advertisements. (24 CFR 570.601). B. Non-Discrimination MIl 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. C. Non-Discrimination and Residential Property AMI 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 aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. D. Labor Standards 1. General: AMI agrees that in instances in which there is construction work of over :!l2,UUU financed in whole or in part with HOrvIE funds under this Agreement, the AMI will adhere to the Davis-Bacon Act (40 use 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 10 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 AMI agrees that in accordance with the National Environmental Policy Act of 1969 and 24 CFR part 58, it will cooperate with Augusta/BND 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 Protection Act of 1973 (42 USC 4001-4128), AMI agrees that HOrvIE 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 AMI agrees to take all reasonable steps to minimize displacement of persons as a result of HOrvIE assisted activities. Any such activities assisted with HOME 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 AMI 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 AMI will in all solicitations or advertisements for employees placed by or on behalf of the AMI, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. 1. Employment and Business Opportunities AMI agrees that to the greatest extent feasible, opportunities for training and employment be given to 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). 11 J. Lead-Based Paint In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the CDBG Regulations, AMI 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 AMI 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 HND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, AMI 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 AMI 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 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 AMI 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 AMI shall obligate and expend its funds as designated under ARTICLE 1. (C) and (D). O. Compliance with Laws and Permits The AMI 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. AMI agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The AMI shall not assign any interest in this contract or transfer any interest in the same without the prior written approval of Augusta. 12 Q. Equal Employment Opportunity The AMI agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 V.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 V.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 AMI will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The Alv1I 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 AMI 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 AMI 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 AMI 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 AND will not discriminate against any person applying for shelter on the basis of religion. AMI 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 A1v1I has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. V. Travel If applicable, AMI 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, reconstntcted or newly constntcted] and assisted with HOME Program funds must, before occupancy, meet the Property Standards specified at 25 CFR 92.251 [the HONCE Program Regulations]. The Property Standards at 24 CFR 92.251 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 HOD Section 8 Housing Quality Standards [HQS]. All housing assisted under this Agreement is "new construction" 13 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 AMI 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 ANI cures any breach of the agreement. If AMI fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for AMI's program. B. Notwithstanding the above, the AMI 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 AMI 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 AMI for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, AMI shall not be relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, VIII, IX, Xl, and XlI of this agreement with respect to HOrvIE 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 notices at the following address: Office of the Administrator Municipal Building 530 Green Street, Room 801 Augusta, Georgia 30911 With copies to: Augusta Housing and Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 Antioch Ministries, Inc. shall receive all notices at the following address: Antioch Ministries, Inc. P. O. Box 6/1454 Florence Street Augusta, Georgia 30901 14 ARTICLE XlI. INDEMNIFICATION The AMI 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, the 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. ARTICLE XllI. INSURANCE AND BONDING AMI 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, AMI 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 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 Augusta, the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and successors. Additionally, the 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 the AMI 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 except as provided in ARTICLE XN. 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 AMI 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. 15 ARTICLE XVI. COUNTERP ARTS 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 AUGUSTA, GEORGIA (Augusta) '- ",-,,~,>. ~ . ./.1--,( ~ "-t, , -~" ~ ~-~~~'~~~~:_'~~ ;-~;.~"- ~Wp_/ Len . er Clerk" ~f Commission cfBY: , -\...1 if',) A TIEST: ANTIOCH MINISTRIES, INCORPORATED ( Grantee) ~~ - By: 16 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") 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 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 Travel Log Conflict of Interest Affidavit 17 APPENDIX B REPORTING REQUIREMENTS The AMI shall submit to the Grantee the following reports for the term ofthis 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 REQUlRElVIENTS 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 xvn of Title 29, Code of Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972.) 1. 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 V.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 contractors 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 AL\1I Notebook and all contents therein including the statutes and 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 $250,000.00 in Year 2002 Ho.ME Investment Partnerships Funds to Antioch Ministries, Inc. These funds will support administration, acquisition, down payment assistance and other costs associated with the production of approximately 20 affordable single family residential units in connection with the continuation of the Florence Street Revitalization Project. 2. Prior to the use of acquisition funds under this contract, Antioch Ministries, Inc. shall submit to HND an overall land development plan that identify proposed properties to be acquired in connection with a phased approach to the acquisition of property in connection with implementation of the Florence Street Revitalization Project. Prior to the purchase of any HOME funded development sites, AMI 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, proposed 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 AMI in accordance with a payment schedule outlined in the construction contract between AMI and the Contractor. 4. AMI will provide the lots on which all new affordable homes are to be built under this agreement and in connection with the Florence Street Revitalization Project. 5. With HND approval, AMI 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. AMI 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. 22 c. AMI must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each house, AMI must also secure a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. d. AMI 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 HONIE 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, AMI may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. AMI will, however, be required to assign these loans to HND once they have been executed. Project Developer fees a. AMI 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 AMI 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 ] 00% complete. 4. $1,000.00 - Upon the sale of house and at the closing Note: The above developer fee structure relates onZv to single family affordable housing development projects. Any other developer fee such as that for a multi-family rental project (or other commercial development proposal) must be negotiated and approved by the Executive Director of HND or his/her designated representative prior to payment to grantee. ')"l --' . ^ EXHIBIT B: ESTIl\1ATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: TYPE DEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: New Construction NEIGHBORHOOD Rehabilitation [ ]4 [ ]4 []3 [ ]2 [] 1 []3 [ ]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 DEVELOPMENT COST SUMMARY PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS HOME FUNDS REQUESTED PROJECTED HOME SUBSIDY SF SF SF SF SF 24 . . ~ " EXHIBIT "C" PROJECt SCHEDULE OF COMPLETION AMI MUST PROVIDE A COJvfPLETED SCHEDULE OF COJvfPLETION 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 PERlvJIT HND TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE OF THIS AGREElvlENT. A SAMPLE SCHEDULE IS PROVIDED BELOW. 25 't CONTRACT between AUGUSTA, GEORGIA And 30901 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 "Bethlehem-Turpin Hill Revitalization Project" , THIS AGREEMENT ("Contract"), is made and entered into as of the day of 2002, ("the effective date") by and between Augusta, Georgia, acting through the ou ng and Neighborhood Development Department (hereinafter referred to as "HND") - with principal offices at One 10th Street, Suite 430, Augusta, Georgia 30901, as party of the fIrst part, hereinafter called "Augusta", and 30901 Development Corporation, a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "30901DC" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HOD) as a HOME Program Participating Jurisdiction, and has received HOME Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for the purpose of providing and retaining affordable housing for HOME Program eligible families; as defmed by HOD; and WHEREAS, the grantee is a designated Community Housing and Development Organization (CHOO) and Community Based Development Organization (CBDO) - hereinafter referred to as 30901DC - and will be involved in HOME eligible activities; and WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the supply 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 HOME entitlement funds for investment in affordable housing to be developed, sponsored or owned by a designated Community Housing Development Corporation (CHDO); and WHEREAS, Augusta wishes to enter into a contractual agreement with the 30901DC for the administration of HOME eligible affordable housing development activities; and WHEREAS, this activity has been determined to be eligible HONIE activity according to 24 CFR 92.504(c)(l3), 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, 30901DC has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, the 30901DC has requested and Augusta has approved a total of $350,000.00 in grant funds to perform HOME 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 I. SCOPE OF SERVICES A. Scope of Services Project Description: 30901DC agrees to utilize approved HOME funds to support project related costs associated with the Bethlehem-Turpin Hill Revitalization Project and continuation of the Faith View Estates Single Family Development. This multi-phase effort involves the development, construction and rehabilitation of scattered site and in fill affordable housing single family units throughout the target community. A significant component of the Revitalization Project is the continuation of development activity related to the 28-unit Faith View Estates Development. Phase I of this development has been completed and Phase II work will continue utilizing Year 2002 HOME funds under this agreement. Under this agreement, 14 to 25 affordable housing units will be newly constructed, rehabilitated or reconstructed and made available for purchase or rental by HOME program eligible low and moderate-income homebuyers. B. Use of Funds: HONIE funds shall be used by 30901DC for the purposes and objectives stated in Article I, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for any other purpose(s) is not permitted. The following summarizes the proposed uses of HONIE Program funds under this Agreement: 1. Administration An amount not to exceed $50,000.00 shall be expended by 30901DC from Year 2002 HONIE funds to support administrative costs associated with the implementation of the Bethlehem- Turpin Hill Revitalization Project - including the continuation of development activities associated with the Faith View Estates Single Family affordable housing development. These administrative funds shall not be used to support general administrative and operating expenses of the 30901 Development Corporation. These funds will be prorated and provided to 30901DC on a minimum twelve- 12 month performance period. Release of administrative funds will be based on 30901DC's progress related to the production of affordable housing units consistent with the Scope of Services and terms and conditions of this agreement. 2. Pre-Development Services ,~..l: illuount not to ex~eed $35,000 shaH b~ e~\j.i~iHl~d by 30901 DC to SUppOl't pl'(;-J.(;VClopiJl~iil costs associated with the implementation of the Bethlehem-Turpin Hill Revitalization Project. 2 // These costs will include such costs as architectural engineering services, permit fees, property and environmental surveys. 3. Acquisition of HONIE Development Sites An amount not to exceed $30,000.00 shall be expended by 30901DC from Year 2002 HOlvIE funds for acquisition costs related to 10 development lots to be acquired through the Augusta Concentrated Code Enforcement Program. These lots will facilitate the construction of affordable housing units for sale to HOlvIE Program eligible homebuyers. These funds are awarded as a grant to 30901DC 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 30901DC. Prior to the purchase of any HOME funded development sites, 30901DC shall notify HND of the location and costs. This information shall be supported with a valid appraisal or reasonable basis for establishing the purchase price of the property after construction. 3. New Construction - Development of Home Sites A total of $235,000.00 is budgeted to support construction related cost of up to 14 single- family affordable housing units throughout the Bethlehem-Turpin Hill Revitalization Project area. For project development and management purposes, 30901DC 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 30901DC and sold 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 homebuyer - 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 3090 I DC at the loan closing for each participating homebuyer. Each homebuyer receiving down payment assistance through the HOME Program must sign a Promissory Note and a Deed to Secure Debt to protect the investment of HOME Program funds. 30901DC is the primary mortgage holder for the deferred payment loan. C. Program Location and Specific Goals to be Achieved 30901DC shall conduct project development activities and related services in its project area (also known as the Bethlehem-Turpin Hill Community) that incorporates the following boundaries: McCauley Street on the West; lih Street on the East; Wrightsboro Road on the North; and Tutt Street on the South. D. Project Eligibility Determination It hfrS been determined that the use of IIO~v1E funds by the 30901 DC ',;\.';1: b~ i~ ~~~pUu~~c ".,",:ith 24 CFR Part 92. Notwithstanding any other provisions of this contract, 30901 DC shall provide activities 3 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 The 30901DC will be compensated 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 Article ll. C.2 of this Agreement. The 30901DC, its directors, officers and staff will carry out and oversee the implementation of projects to be funded with HOME funds. The 30901DC agrees to perform the required services under the general coordination of the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the 30901DC 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 HOME Project funds available in the following manner: 1. Augusta agrees to pay 3090 IDC a ma.ximum of $350,000.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to 30901DC'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 Exhibit A, attached hereto and made part thereof. 3. HND will monitor the progress of the project and 30901DC's performance on a monthly 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 HOME Program Funds. 8. 30901DC will make reasonable efforts to secure additional funding sources using the $350,000.00 in HOME funds awarded under this agreement as leverage to support the Bethlehem-Turpin Hill Redevelopment Project and the Faith View Estate Single Family Development. B. Timetable for Completion of Project Activities 1. 30901 DC shall obligate the designated HOME funds within eighteen- I 8 months of the date of executioR of this Agreement. Based on the budget outlined in C.2 below, 3090 lDC will pi'ov~Jc a detailed outline of critical project iTIil~5Luiic.5 aiid pi"ujcc~cd c;~pcijdiLi.ire5 during the 4 course of 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. 30901DC shan 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 30901DC. 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 30901 DC. 2. The 30901DC shall adhere to the following budget in the performance of this contract. A. Administrative Cost: $ 50,000.00 Wages & Salaries Fringe Benefits Travel Insurance Utilities and Telephone B. Project Activity Cost $ 300,000.00 Pre- Development/PlanninglDesign Acquisition Construction - Infrastructure Down Payment Assistance Other Cost (Identify) 35,000.00 30,000.00 235,000.00 TOTAL HOME PROJECT COST: $ 350,000.00 ARTICLE ill - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The Resale/Recapture Provisions in this Article III shall ensure compliance with the HOME 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 20-year loan period, 3090 IDC has the "right of first refusal" to repurchase the property for subsequent resale to other HOME Program-eligible purchasers. If 3090lDC 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(S)(ii)] If the eligible homebuyer (who received down payment assistance [HOME Program] funds from Augusta) sells their property, then 3090lDC shall recapture the HOME funds and return 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. 5 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 30901DC (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 PAYlVIENT A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to the 30901DC or any subcontractor hereunder. All payments to the 30901DC by Augusta will be made on a reimbursement basis. B. 30901DC shall maintain a separate account and accounting process for HONIE funding sources. C. 30901DC shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to 30901DC'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 30901DC 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 Augusta, 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. 30901DC shall maintain an adequate 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 30901DC. ARTICLE VI. REPAYMENTIPROGRAIVI INCOME A. 30901DC 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 vr r~habilii.aL\J huu:::;\,;;j fur :::;al\; to \,;ligibll; hUliU.; uuy\,;r:::;. Th.\; 3090 IDe shaH return these [uiiuS on an individual project (i.e., per house) basis. The return of the funds shall be due 6 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 3090lDC 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: I. 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 30901DC on a timely basis. Please refer to Appendix B incorporated herein by reference. 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. 30901DC 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 returned to Augusta by 30901DC. C. The receipt and disposition by 3090 IDC 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 30901DC 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: 2. 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 (3) below. 3. Should the cost of developing a property for sale to a homebuyer exceed the appraised value of the property, 30901DC will retain no less than $8500.00 as a developer fee. 3090lDC may reduce the HOME funds it is to return to Augusta as described in Paragraph VI.A 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 30901DC 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), 30901DC 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. E. Any real property under the 30901DC's control that was acquired or improved in whole or in part with HOME funds in excess of$25,000 must either: 7 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-CDBG funds for acquisition of, or improvement to, the property . ARTICLE VII. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS A. 30901DC 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). 30901DC shall maintain records that document all clients served with HOME funds. In addition, 30901DC 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 30901DC, shall provide the infonnation and verification described above. C. 30901DC shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply 30901DC with the following 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. D. 3090lDC shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be maintained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. E. 3090 I DC 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. F. In compliance with OMB Circular A-I 10 regarding retention and custodial requirements for records, 30901 DC shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following yuaiiii<.:atiuns: 8 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 fmdings involving the records have been resolved. 2. Records for non-expendable personal property acquired with HONIE 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. G. In connection with the expenditure of federal funds, 30901DCs shall provide to Augusta an organization -wide audited financial statement consisting of a balance sheet, income statement and a statement of changes in its [mancial 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 3090 I DC IS fiscal year. The 30901DC is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. The 30901DC shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. H. Open Records Disclosure: 30901DC'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.C.G.A. S 50-18-70). 30901DC agrees to comply with the Open Records Act should a request be submitted to it. Further, 30901DC agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: 30901DC 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 30901DC's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. 30901DC 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 ADMINISTRATIVE REQUffiEMENTS A. Conflict ofInterest 30901DC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36,570.611, OMB Circular A-I 10 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 30901DC. 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 i!1side information with regard to such activities, may obtain any financial interest or benefit from the activities, or have a financial interest in any contract, 5ub-conuact, or agreement Vv'ith respect to the conLlact activitit;;j, cilhcr fur tht;in~elvcs \.if thut:t~ with whom they have business or family ties, during their tenure or for one year thereafter. 9 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. 3090lDC 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. 3090lDC shall comply with the requirements and standards of ONfB 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 30901DC. In such instances, 30901DC shall consult with END/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 30901DC. D. 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 30901DC 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 3090lDC publications and/or advertisements. (24 CFR 570.601). B. Non-Discrimination 30901DC 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. C. Non-Discrimination and Residential Property 30901DC 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 aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. 10 D. Labor Standards 1. General: 30901DC agrees that in instances in which there is construction work over $2,000 financed in whole or in part with HOME funds under this Agreement, 30901DC 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 30901DC 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 Protection Act of 1973 (42 USC 4001-4128), 30901DC agrees that HONIE 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 30901DC agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HONIE 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 30901DC 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 ofrace, color, religion, sex or national origin. The 3090 1DC will in all solicitations Of advertisenlents for emplo):ees pluced by or on behalf of the 1f\I"\A1'r'\'-' _...._..._ ....1__.... _'1 .JUYU i.i.i'-, .jUi.i.~ LHaL ail 11 qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. 1. Employment and Business Opportunities 30901DC 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, 30901DC 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 30901 DC 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 HND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, 30901DC 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 30901DC 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 30901DC 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 30901DC shall obligate and expend its funds as designated under ARTICLE 1. (C), (D) and (E). 12 O. Compliance with Laws and Permits The 30901DC 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. 30901DC agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The 30901DC 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 30901DC 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 30901DC will not discriminate against any employee or applicant for employment because ofrace, color, religion, sex, national origin, or familial status. The 30901DC 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 fJ0901DClial 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 30901DC 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 30901DC agrees to make efforts to encourage the use of minority and women-owned business enterprises in connection with HOl'vIE supported activities. S. Religious Influence The 30901DC 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 30901DC will not discriminate against any person applying for shelter on the basis of religion. 30901DC 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 3090 I DC 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, 30901DC 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 constructedJ and 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 CFR 92.251 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 HUD Section 8 Housing Quality Standards [HQS]. All housing assisted under this Agreement is "new construction" by HONIE Program definition and therefore must meet the local building codes for new housing in Augusta-Richmond County, as applicable. ARTICLE x. SUSPENSION AND TERMlNATION A. In the event 30901DC 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 VIll(N), Augusta may withhold cash payments until 30901DC cures any breach of the agreement. If 30901 fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for the 30901DC's program. B. Notwithstanding the above, the 30901 DC 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 the 30901DC 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 30901DC for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, 30901DC 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 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 Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 30901DC will receive all notices at the address indicated below: 30901 Development Corporation 1448 Linden Street Augusta, Georgia 30901 ARTICLE XII. INDEMNIFICATION The 30901DC 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, the 30901DC 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 Xli. INSURANCE AND BONDING 30901DC 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, 30901DC 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 30901DC handling or charged with the responsibility for handling funds and property pursuant to this contract. 30901DC 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, members, employees, and successors. Additionally, the 30901DC 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 the 30901DC 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. 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 30901DC 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: -.::~ ~ " -- ;;r~ ~/<<r . '" '~:~FAL':, AUGU ( ATTEST: ~. ..' .~'. .' ...----:--... '--' - ,..~ -:- . -.-: -. , ~..~~/ L~ cry Clerk. of Commission ATTEST: 30901 DEVELOPMENT CORPORATION (Grantee) (Plain Witness) 16 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") OMB Circular A-l10 - 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 Travel Log Conflict ofInterest Affidavit 17 APPENDIX B REPORTING REQUIREMENTS The 30901DC 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 REQUIREl\1ENTS 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 & 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 contractors be allowed to bid on CDBG funded projects. 'to rruJt:t:i. Rt:vit:w. Ali pial1~, spt:t:ilit:ai.iull~, wurk wlii.C:-llt'~, I-'r0jc~teJ cost estimates, punch lists Of 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 30901DC Notebook and all contents therein including the statutes and 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 Investment Partnerships Funds to the 30901 Development Corporation. These funds will support administration, acquisition, down payment assistance and other costs associated with the production of approximately 20 affordable single family residential units in connection with the continuation of the Bethlehem-Turpin Hill Redevelopment Project. 2. In connection with the acquisition of HOME funded development sites, the 30901 DC shall submit to HND an overall land development plan. This plan should identify the proposed properties to be acquired in connection with the phased implementation of the Bethlehem- Turpin Hill Redevelopment Project. Prior to the purchase of any HOME funded development sites, 3090 lDC 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, the proposed 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 3090lDC in accordance with a payment schedule outlined in the construction contract between 30901DC and the Contractor. 4. 30901DC will provide the lots on which all new affordable homes are to be built under this agreement and in connection with the Bethlehem-Turpin Hill Revitalization Project. 5. With HND approval, 3090lDC 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 ma.ximum per unit amount as defined at 24 CFR 92.250. b. 3090lDC 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. 30901DC must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on eaeh house, 30901DC must a!sa secure a Certificate of 22 Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. d. 30901DC 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, 30901DC may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. 30901DC will, however, be required to assign these loans to HND once they have been executed. Project Developer Fees a. 30901DC 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 30901DC 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 Ex.ecutive Director of HND or his/her designated representative prior to payment to grantee. 23 . , ~ EXHIBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: TYPE DEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: New Construction NEIGHBORHOOD Rehabilitation [ ]4 [ ]4 []3 []2 []1 []3 [ ]2 [] I 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 DEVELOPMffiNTCOSTSUMMARY PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS SF SF SF HOrviE FlJt..JDS REQtJESTED ",.., ur PROJECTED HOME SUBSIDY SF 24 . ~. EXHIBIT "C" PROJECT SCHEDULE OF COMPLETION 30901DC MUST PROVIDE A COMPLETED SCHEDULE OF COMPLETION AS EXHIBIT C- WITH APPROPRIATE PROJECT lvfILESTONES WITHIN 10 TO 15 DAYS AFTER SIGNING THIS AGREEAfENT. 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 '- ;J CONTRACT between AUGUSTA, GEORGIA And Promise Land Community Development Corporation in the amount of $150,000.00 One Hundred Fifty Thousand Dollars for Fiscal Year 2002/03 Providing funding for HOME INVESTMENT P ARTNERSIDPS PROGRAM "South Augusta Acquisition and Rehabilitation Project" TillS AGREEMENT ("Contract"), IS made and entered into as of the day of 2002, ("the effective date") by and between Augusta, Georgia, acting t ou the ous g an Neighborhood Development Department (hereinafter referred to as "HND") - with principal offices at One 10th Street, Suite 430, Augusta, Georgia 30901, as party of the first part, hereinafter called "Augusta", and Promise Land Community Development Corporation., a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "PLCDC" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) as a HOill Program Participating Jurisdiction, and has received HONfE Investment Partnerships Act (hereinafter called HOME or the HONIE Program) funds from HUD for the purpose of providing and retaining affordable housing for HONIE Program eligible families; as defined by HUD; and WHEREAS, the grantee is a designated Community Housing and Development Organization (CHDO) - hereinafter referred to as PLCDC and will be involved in HOill eligible activities; and WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the stock of affordable housing for HOill 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 HOME entitlement funds for investment in affordable housing to be developed, sponsored or owned by a designated Community Housing Development Corporation (CHDO); and '- 1 WHEREAS, Augusta wishes to enter into a contractual agreement with the PLCDC for the administration of HOME eligible affordable housing development activities; and WHEREAS, the project 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, PLCDC has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, the PLCDC has requested and Augusta has approved a total of $150,000.00 in grant funds to perform HOME activities as described in Article I of this agreement 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: PLCDC agrees to utilize approved HOME funds to support project related costs associated with the continuation of an acquisition and rehabilitation program in the South Augusta area including: Barton Village, Meadowbrook and McDuffie Communities. Under this agreement, PLCDC will acquire and rehabilitate four (4) single family affordable housing units that will be made available for purchase by eligible low and moderate-income homebuyers. B. Use of Funds: HOME funds shall be used by PLCDC for the purposes and objectives stated in Article I, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for any other purpose(s) under this agreement is not permitted. The following summarizes the proposed uses of HOME Program funds under this Agreement: I. Administration An amount not to exceed $15,000.00 shall be expended by PLCDC from Year 2002 HOME funds to support administrative costs associated with implementation of the Acquisition and Rehabilitation Project. These administrative funds shall not be used to support general administrative and operating expenses of the PLCDC. These funds will be prorated and provided to PLCDC on a twelve-12 month performance period. Release of administrative funds will be based on PLCDC's progress related to the acquisition and rehabilitation of affordable housing units consistent with the terms and conditions of this agreement. 2. Acquisition and Rehabilitation - HOME Development Sites An amount not to exceed $135,000.00 shall be expended by PLCDC from Year 2002 HOME funds for acquisition and rehabilitation of 4 to 6 housing units. These housing units will be made available for sale to HOME Program eligible homebuyers. These funds are awarded as a grant to PLCDC 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 PLCDC. Prior to the purchase of any HOME funded development sites, PLCDC shall notify HND of the location and estimated purchase and rehabilitation cost. This 2 :i information shall be supported with a valid appraisal or reasonable basis for establ ishing the purchase price of the property after construction. 4. Down Payment Assistance for Eligible Homebuyers Down Payment assistance shall be provided in an amount not to exceed $15,000 per homebuyer 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 homebuyer - 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 PLCDC at the loan closing for each participating homebuyer.. Each homebuyer that receives down payment assistance through the HONIE Program must sign a Promissory Note and a Deed to Secure Debt to protect the investment of HONIE Program funds. PLCDC is the primary mortgage holder for the Deferred Payment Loan. C. Program Location and Specific Goals to be Achieved PLCDC shaH conduct project development activities and related services in various communities in the South Augusta Area, to include: Barton Village, McDuffie and Meadowbrook Communities D. Project Eligibility Determination It has been determined that the use of HOME funds by the PLCDC will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, PLCDC shall complete the project activities and services as described in the description of the project, including use of funds, specific tasks to be performed and a detailed schedule for completing the tasks for this project as provided in Exhibit A of this contract. ARTICLE ll. BUDGET AND METHOD OF PAYMENT PLCDC will be compensated for performance of services under this agreement in accordance with this Article II, Budget and Method of Payment. This Article specifically identifies the use of HO"ME and other project funding as represented in Article II, C.2. The PLCDC, its directors, officers and staff will carry out and oversee the implementation of projects to be funded with HOME funds. The PLCDC agrees to perform the required services under the general coordination of the Augusta Housing and Neighborhood Development Department. In addition and upon approval by Augusta, the PLCDC may engage the services of outside professional services consultants and contractors to help carry out the program and projects. A. Augusta shaH designate and make HOME Project funds available in the foHowing manner: 1. Augusta agrees to pay the PLCDC a maximum of $150,000.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to PLCDC's compliance with all terms and conditions of this agreement and the procedures for documenting expenses and activities as set forth in ARTICLE. 2. The method of payment shall be in accordance with Financial Procedures as described in Article [ and or Exhibit A as attached hereto and made part thereof. " -' 3. HND will monitor the progress of the project and PLCDC'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 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. This agreement is based upon the availability of HOME Program Funds. 9. PLCDC will make reasonable efforts to secure additional funding sources to support the acquisition and rehabilitation project activities in this agreement utilizing the $150,000 in HOME grant funds awarded under this agreement as leverage to support the South Augusta Acquisition and Rehabilitation Project. B. Timetable for Completion ofPro;ect Activities I. PLCDC shall obligate the HOME funds provided with this agreement within 18 months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, PLCDC will provide a detailed outline of critical project milestones and projected expenditures during the course of 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. PLCDC shall be paid a total consideration of$150,000.00 for full performance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the PLCDC. 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 PLCDC. 2. The PLCDC shall adhere to the folIowing budget in the performance of this contract. A. Administrative: $ 15,000.00 Wages & Salaries Fringe Benefits Travel Space Cost and Rental Utilities and Telephone B. Project Activity Costs $ 135,000.00 Pre-Development Acquisition Construction TOTAL HOME PROJECT COST: $ 150,000.00 4 ARTICLE ill - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The Resale/Recapture Provisions in this Article III shall ensure compliance with the HOME 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 (5) year loan period, PLCDC has the "right of first refusal" to repurchase the property for subsequent resale to other HOME Program-eligible purchasers. If PLCDC 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 PLCDC shall recapture the HOME funds and return 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 LB 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 PLCDC (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article LD, 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 PLCDC or any subcontractor hereunder. All payments to the PLCDC by Augusta will be made on a reimbursement basis. B. PLCDC shall maintain a separate account and accounting process for HOME funding sources. C. PLCDC shall not use these funds for any purpose other than the purpose set forth in this Agreement. D. Subject to PLCDC'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-II0 "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 PLCDC 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) 5 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 shall 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. PLCDC shall maintain an adequate 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 PLCDC. ARTICLE VI. REPAYMENT~ROGRAMINCOME A. PLCDC 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 or rehabilitate houses for sale to eligible home buyers. The PLCDC 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 PLCDC 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 PLCDC 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. PLCDC 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 returned to Augusta by PLCDC. C. The receipt and disposition by PLCDC 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 PLCDC to Augusta unless otherwise specified. Where HONIE 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: 2. The 100 percent of funds stated above shall include the total amount of funds approved in the -~~,icc+ ~..~-n:-v fC"h:t..:t 0, -Ius o+\...~- __n app-o..n..l --o,icc+ ~o~+ ~_..l n..l"an""d ..lu":-- +\...e plVJ ... ~UUJlUu..1.J \.1..J^'-l JUI LJ) P LJ.I\...o1 1-'1"-'- I v\"u }-II J L "" ~L QJ..JU auv I\...\; U 1111t:; L.11 construction period. Expenses as referenced above include: second mortgage notes; approved 6 closing costs; developer fees, and; other expenses as approved by Augusta. The only pre- approved exception is described in Paragraph C (3) 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. 3. Should the cost of developing a property for sale to a homebuyer exceed the appraised value of the property, PLCDC will retain no less than $8500.00 as a developer fee. D. All funds retained by PLCDC 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), PLCDC shaIl 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. E. Any real property under the PLCDC's control that was acquired or improved in whole or in part with HOME funds in excess 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-HOME funds for site acquisition purposes and improvement to the property. ARTICLE VIT. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS A. PLCDC 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). PLCDC shaIl maintain records that document all clients served with HOME funds. In addition, PLCDC 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 to PLCDC which, when completed by those clients served by PLCDC, shall provide the information and verification described above. c. PLeDe shall picpaic and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply PLCDC with the following report forms and require the same to 7 be completed as requested by Augusta: "Monthly Services", "Qu~rter1y Progress", "Quarterly Financial" and "Annual Report". Further explanation and report due dates are found in APPENDIX B below. D. PLCDC shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be maintained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. E. PLCDC 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, explanations, excerpts and transcriptions. F. In compliance with OMB Circular A-110 regarding retention and custodial requirements for records, PLCDC shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following qualifications: 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 HONIE 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. G. In connection with the expenditure of federal funds, PLCDC 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 PLCDC's fiscal year. The PLCDC is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. The PLCDC shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. H. Open Records Disclosure: PLCDC'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.C.G.A. S 50-18-70). PLCDC agrees to comply with the Open Records Act should a request be submitted to it. Further, PLCDC agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: PLCDC 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 PLCDC's board meetings, except for such portions of the meeting as may be ciost::u pursuant Lu tilt:: Open Meetings Law. PLeDe shall provide to the Grantee a tentative 8 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 vm ADMINISTRATIVE REQUIREMENTS A. Conflict of Interest PLCDC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, 570.611, OMB Circular A-I10 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 PLCDC. 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 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. PLCDC 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. PLCDC 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 PLCDC. In such instances, PLCDC shall consult with HND/ Augusta on any changes that will result in substantive changes to this Agreement. All such changes shaH be made via written amendments to this Agreement and shaH be approved by the governing bodies of both Augusta and the PLCDC. D. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in Appendix A and are incorporated herein by reference. ARTICLE L~. OTHER REQUIRElVIENTS A. Fair Housing PLCDC 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 PLCDC publications and/or advertisements. (24 CFR 570.601). 9 B. Non-Discrimination PLCDC 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. C. Non-Discrimination and Residential Property PLCDC 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 aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. D. Labor Standards 1. General: PLCDC agrees that in instances in which there is construction work of over $2,UUU financed in whole or in part with HOME funds under this Agreement, the PLCDC 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 PLCDC 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 Protection Act of 1973 (42 USC 4001-4128), PLCDC 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 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 FErv1A notification and flood insurance has been obtained in accordance "vvith section 1 02(a) of the Flood Disaster Protection Act of 1973. 10 G. Displacement and Relocation PLCDC agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HONIE 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 PLCDC 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 PLCDC will in all solicitations or advertisements for employees placed by or on behalf of the PLCDC, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. 1. Employment and Business Opportunities PLCDC agrees that to the greatest extent feasible, opportunities for training and employment be given to 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, PLCDC 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 oflead-based paint poisoning and the elimination oflead-based paint hazards. K. Debarred, Suspended or Ineligible Contractor PLCDC 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 HND. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, PLCDC 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 PLCDC for the project funded pursuant to this Agreement, during the term of this ~^~greement or for one year theretifter, "\-vill make reference to the contribution of Augusta in making the project possible. The words "Augusta-Richmond 11 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 PLCDC 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 PLCDC shall obligate and expend its funds as designated under ARTICLE 1. (C) and (D). O. Compliance with Laws and Permits The PLCDC 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. PLCDC agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The PLCDC 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 PLCDC 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 V.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 PLCDC will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. PLCDC 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 PLCDC 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 PLCDC 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 PLCDC 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. PLCDC will 12 not discriminate against any person applying for shelter on the basis of religion. PLCDC 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 PLCDC has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. U. Travel If applicable, PLCDC 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 constructed] and 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 CFR 92.251 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 HUD 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 TERMlNATION A. In the event PLCDC 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 vrn (N), Augusta may withhold cash payments until PLCDC cures any breach of the agreement. If PLCDC fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for PLCDC's program. B. Notwithstanding the above, the PLCDC 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 the PLCDC 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 PLCDC for documented and committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, PLCDC shall not be relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, VIII, IX, XI, and xn of this agreement with respect to HOME funds previously disbursed or income derived therefrom. 13 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 notices at the following address: Office of the Administrator Municipal Building 530 Greene Street Augusta, Georgia 30911 With copies to: Augusta Housing and Neighborhood Development Department One, Tenth Street, Suite 430 Augusta, Georgia 30901 Antioch Ministries, Inc. shall receive all notices at the following address: Promise Land Community Development Corporation 313D Telfair Street Augusta, Georgia 30901 ARTICLE XII. INDEMNIFICATION The PLCDC 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, the PLCDC 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 xm. INSURANCE AND BONDING PLCDC 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, PLCDC 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 PLCDC handling or charged with the responsibility for handling funds and property pursuant to this contract. PLCDC shall procure and provide, for approval by the Augusta, comprehensive general liability insurance in the amount of at least $ I ,000,000.00 insuring the Grantee and adding as named insured the Augusta, the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and successors. Additionally, the PLCDC 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 14 insured. No insurance policy providing insurance coverage required to be provided by the PLCDC 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 except as provided in ARTICLE XN. 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 PLCDC 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. -? .y, /,~~ - ry ArrEST ' ~ :- A TIEST: PROMISE LAND COMMUNITY DEVELOPMENT CORPORA nON (Grantee) a~&p~ Its President .. " " , V!~in Wimess) --:;.,. . - . ~. 15 APPENDIX A Statutes: 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") 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 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 Travel Log Conflict of Interest Affidavit 16 APPENDIX B REPORTING REQUIREMENTS The PLCDC 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. 17 APPENDLX 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 XVU 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 XVU 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 & 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 contractors be allowed to bid on CDBG or HOME funded projects. 18 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 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. 19 ATTACHMENTS PLCDC Notebook and all contents therein including the statutes and forms listed in APPENDIX A are hereby attached and included as part in parcel to this Agreement. 20 " EXHIBIT "A" PROJECT DEVELOPMENT AND :MANAGEMENT PROCEDURES I. Augusta through the Housing and Neighborhood Development Department agrees to provide up to $150,000.00 in Year 2002 HOME Investment Partnerships Funds to the Promise Land CDC. These funds will support administration and other project related costs associated with the acquisition and rehabilitation of approximately four (4) single family residential units in selected communities in the South Augusta area. 2. Prior to the use of acquisition funds under this contract, PLCDC shall identify the proposed properties to be acquired in connection with implementation of the acquisition and rehabilitation Project. Prior to the purchase of any HOME funded development sites, PLCDC 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, construction timetable, estimated rehabilitation costs 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 acquisition and rehabilitation project before work is commenced and before funds can be released for payment reimbursement. Construction payments will be released to PLCDC in accordance with a payment schedule outlined in the construction contract between PLCDC and the Contractor. 4. PLCDC will facilitate the acquisition of properties to be rehabilitated in connection with the Acquisition and Rehabilitation Project. 5. With HND approval, PLCDC 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. PLCDC will coordinate any and all construction management activities associated with the project with HND and its construction staff to ensure that construction work is being carried out in accordance with plans, specifications and approved project budget. c. PLCDC must make sure that contractors obtain and post all permits on job site. Prior to releasing final payment on each house, PLCD - as necessary- will secure a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. 21 . . d. PLCDC 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 HONIE 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, PLCDC may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. PLCDC will, however, be required to assign these loans to HND once they have been executed. Project Developer Fees a. PLCDC 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 PLCDC 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 stnicture relates only to single family affordable housing development projects. Any other developer fee such as that for a multi-family rental project (or other commercial development proposal) must be negotiated and approved by the R"ecutive Director of HND or his/her designated representative prior to payment to grantee. 22 " ... .. EXHIBIT B: ESTIMATED PER UNIT AL~D/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: TYPE DEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: NEIGHBORHOOD New Construction Rehabilitation []4 []3 [ ]2 [] 1 []4 []3 [ ]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~Y PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS HOMF FlJNDS F~QlJESTED PROJECTED HONIE SUBSIDY SF SF SF SF SF 23 " ~ . # . EXIDBIT "e" PROJECT SCHEDULE OF COMPLETION PLCDC MUST PROVIDE A COlvf.PLETED SCHEDULE OF COMPLETION AS EXHIBIT C - WITH APPROPRIATE PROJECT MILESTONES WITHIN 10 TO 15 DA YS AFTER SIGNING THIS AGREElviENT. THIS SCHEDULE MUST BE PROVIDED IN SUFFICIENT DETAIL TO PEKMIT HND TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE OF THIS AGREEMENT. A SAlvf.PLE SCHEDULE IS PROVIDED BELOW. 24