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:
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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.
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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
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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.
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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
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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
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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
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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
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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
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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
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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).
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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.
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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
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"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
;:; ,
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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.
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ATTEST:
,
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Lena Bonner
Clerk of Commission
A ITEST:
SAND IDLLS NEIGHBORHOOD ASSOCIA nON, INC.
(Grantee)
SEAL
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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
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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)
'- ",-,,~,>.
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;-~;.~"- ~Wp_/
Len . er
Clerk" ~f Commission
cfBY:
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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.
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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
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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
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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.
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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
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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:
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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.
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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:
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AUGU
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ATTEST:
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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
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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.
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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.
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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.
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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.
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"
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.
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. .
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.
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"
... ..
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
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"
~ . # .
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.
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