HomeMy WebLinkAboutEAST AUGUSTA DEVELOPMENT CORPORATION $190,897.00
i.
CONTRACT
between
AUGUSTA, GEORGIA
And
EAST AUGUSTA DEVELOPMENT CORPORATION
in the amount of
$190,897.00
One Hundred Ninety Thousand and Eight Hundred Ninety-Seven Dollars
for Fiscal Year 2008 - COMPETITIVE
Providing funding for
HOME INVESTMENT PARTNERSHIPS PROGRAM
"Magnolia Avenue Housing Project - Phase II"
THIS AGREEMENT ("Contract"), is made and entered into as of the /$~ day of -:Jl.~~,
2008 ("the effective date") by and between Augusta, Georgia, acting through the Housing d
Community Development Department (hereinafter referred to as "HCD") - with principal offices at
925 Laney Walker Blvd., 2nd Floor, Augusta, Georgia 30901, as party of the first part, hereinafter
called "Augusta", and 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 HOD) 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 HOD; and
WHEREAS, the grantee is a designated Community Housing and Development Organization
(CHDO}- hereinafter referred to as EACDC - 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 2005-2009, and the Year 2008 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 East Augusta Community
Development for the administration of HOME eligible affordable housing development activities; and
..
WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR
92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24
Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations.
WHEREAS, East Augusta Community Development Corp. has agreed to provide services funded
through this contract free from political activities, religious influences or requirements; and
WHEREAS, East Augusta Community Development Corp. has requested and Augusta has approved
a total of $190,897.00 in grant/loan 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: EACDC agrees to utilize approved HOME funds to support project related costs
associated with the Magnolia Avenue Housing Project - Phase II. This project is a multi-phased
affordable housing effort which involves the development and construction of new single-family,
scattered site, in-fill affordable housing units throughout the East Augusta Community. Under this
agreement:
4. Perform demolition and clearing of sites.
4. Perform new construction services for 3 single family homes
4. Perform all required and requested marketing and advertising activities; in accordance with
"HOME" program "Fair Housing" regulations
4. All projects are to posses the following required components:
· Evidence of Site Control
· Evidence of additional financing resources "Leveraging"
· Evidence that the programmatic "MATCH" requirement has been met
· Evidence that a qualified homebuyer has been identified, received and completed a
comprehensive home buying education course(s) and pre-purchase housing
counseling program; prior to the completion of the assigned home.
B. Use of Funds: HOME funds shall be used by EACDC 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
HOME Program funds under this Agreement:
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I. Construction Loan
An amount not to exceed $144,473.00 in a loan shall be expended by EACDC from Year 2008
HOME funds for construction costs related to the development of 3 affordable single family
housing units in the Magnolia Avenue Housing Project. The design and specifications must be
approved by AHCD prior to construction. Funds will be used to assist with the cost of the
following items: permits, footings, foundation, floor framing, exterior wall framing, rough
plumbing, rough HV AC, rough electric & developer's fees only. These units will be
constructed by EACDC and sold to eligible low and very-low income homebuyers.
(a) 220 Magnolia Avenue
(b) 222 Magnolia Avenue (c) 224 Magnolia A venue
EACDC may request a change in addresses through a written request.
2. Soft Cost Loan
An amount not to exceed $16,424.00 in a loan shall be expended by EACDC to support the
soft cost of construction to be used to construct affordable single-family housing units to be
made available for purchase by HOME program eligible low and moderate-income
homebuyers.
3. Developer's Fee
An amount not to exceed $30,000.00 in a grant shall be expended to EACDC in support of the
project development fees. EACDC can draw up to $10,000.00 per house to pay itself a
project developer's fee. Draw downs are to be requested at the milestones listed below:
(1) $ 1,000.00
When plans have been approved by AHCD and EACDC has
entered in to a contract to begin construction.
(2) $ 3,000.00
(3) $ 5,000.00
(4) $ 1,000.00
When construction is 50% complete.
When construction is 100% complete.
At closing of property.
C. . 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.
D. Proiect Eligibility Determination
It has been determined that the use of HOME funds by the East Augusta Community
Development Corp. will be in compliance with 24 CFR Part 92. Notwithstanding any other
provisions of this contract, EACDC shall provide activities and services as described in the
description of the project, including use of funds, its goals and objectives, tasks to be
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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
East Augusta Community Development Corp. 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 II. C.2 of this Agreement. EACDC, its directors, officers and staff
will carry out and oversee the implementation of projects to be funded with HOME funds. East
Augusta Community Development Corp. agrees to perform the required services under the general
coordination of the Augusta Housing and Community Development Department. In addition and
upon approval by Augusta, East AugustaCommunity Development Corp., 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:
I. Augusta agrees to pay East Augusta Community Development Corp., a maximum of
190,897.00 under this agreement for project expenses incurred as outlined in ARTICLE I,
Scope of Services, subject to EACDCs 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. HCD will monitor the progress of the project and EACDCs 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. East Augusta CDC will make reasonable efforts to secure additional funding sources using the
$ 190,897.00 in HOME funds awarded under this agreement as leverage to support the
"magnolia Avenue Housing Project".
B. Timetable for Completion ofProiect Activities
l. East Augusta CDC shall obligate the designated HOME funds within thirteen-13 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 as Exhibit C. These documents will become an official
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part of the contractual agreement and provide the basis for overall project performance
measurements.
C. Proiect Budget: Limitations
l. East Augusta CDC shall be paid a total consideration of $190,897.00 for full performance 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 East Augusta CDC.
2. East Augusta CDC shall adhere to the following budget in the performance of this contract.
A.
Proiect Activitv Cost
$ 190,897.00
Construction Loan
Soft Cost Loan
Developer's Fee
144,473.00
16,424.00
30.000.00
TOTAL HOME PROJECT COST:
$ 190,897.00
ARTICLE III - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)]
I. 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). 24 CFR
92.254 requires that the City, its subrecipients, and CHDOs follow certain resale/recapture
restrictions with regard to its HOME-funded homebuyer program. Each property sold to a
homebuyer will remain affordable for the duration of the affordability period or the City will
use the recapture option.
A. Recapture Provisions [24 CFR 92.254(5)(ii)]
If the eligible homebuyer (who received down payment assistance [HOME Program] or other
development subsidy funds from Augusta) sells their property, then East Augusta CDC shall
recapture the HOME funds and return the funds to Augusta, which will ensure that the
recaptured HOME Program funds are reinvested in other affordable housing in Augusta for
low and moderate-income persons. This shall be accomplished through deed restrictions,
property liens, and contractual obligations, as described in Article I.B of this Agreement.
ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the EACDC (whichever date is later) and shall end at the completion of all program activities,
within the time specified in Article I.D, or in accordance with ARTICLE IX: Suspension and
Termination.
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ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to
the East Augusta CDC, or any subcontractor hereunder. All payments to the EACDC by
Augusta will be made on a reimbursement basis.
B. East Augusta CDC will be responsible for providing MATCH in an amount equal to no less than
12.5 percent of the total HOME funds drawn down for project cost.
C. East Augusta CDC shall maintain a separate account and accounting process for HOME funding
sources.
D. East Augusta CDC shall not use these funds for any purpose other than the purpose set forth in
this Agreement.
E. 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.
F. 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.
G. Requests by the East Augusta CDC for payment shall be accompanied by proper documentation
and shall be submitted to HCD, transmitted by a cover memo, for approval no later than thirty
(30) calendar days after the last date covered by the request. For purposes of this section, proper
documentation includes: "Reimbursement Request" form supplied by HCD, copies of invoices,
receipts, other evidence of indebtedness, budget itemization and description of specific activities
undertaken. 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.
H. East Augusta CDC shall maintain an adequate financial system and internal fiscal controls.
I. Developer's subsidy will be determined after construction is complete and the home buyer
subsidy will be determined after the amount of the buyer's permanent mortgage has been
determined.
J. 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
East Augusta CDC.
ARTICLE
VI.
REPAYMENT~ROGRAMINCOME
A. East Augusta CDC may retain a portion of the profit from sale of the house as proceeds
generated from a CHDO development activity. The proceeds shall be used in the following
manner:
4. HOME - eligible activities
4. Other low income housing activities, which may include operational support of the CHDO
(assuming the CHDO continues to meet its mission of providing affordable housing.
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B. All funds retained by East Augusta CDC 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).
C. East Augusta CDC shall report quarterly the use of proceeds to Augusta. The report shall
indicate how the funds were acquired and how the funds were utilized.
D. Augusta will be responsible for monitoring the reuse of the proceeds.
E. Any real property under East Augusta CDC 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 acquisition of, or improvement to, the property.
F. Any Home funds invested in housing that does not meet the affordability requirements for the
period specified in S 92.252 or S 92.254, as applicable, must be repaid by East Augusta CDC.
G. Any HOME funds invested in a project that is terminated before completion, either
voluntarily or otherwise, must be repaid by East Augusta Community Development Corp.
ARTICLE
VII. RECORD KEEPING, REPORTING AND MONITORING
REQUIREMENTS
A. East Augusta Community Development Corp. 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:
I. 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
9. Property value (203)(B) Limits
B. To document low and moderate-income benefits required in 24 CFR 570.200(a) (2). East
Augusta Community Development Corporation shall maintain records that document all
clients served with HOME funds. In addition, EACDC 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 East Augusta CDC shall provide the information and verification described above.
C. East Augusta CDC. 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 be completed as requested by Augusta: "Monthly Services", "Quarterly Progress",
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"Quarterly Financial" and "Annual Report". Further explanation and report due dates are
found in APPENDIX B below.
H. East Augusta CDC 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.
I. East Augusta CDC 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.
J. In compliance with OMB Circular A-110 regarding retention and custodial requirements for
records, East Augusta CDC 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.
K. In connection with the expenditure of federal funds, East Augusta CDC 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 East
Augusta CDC fiscal year. The East Augusta CDC 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 East Augusta CDC 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.
L. Open Records Disclosure: East Augusta CDC'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). East Augusta CDC agrees to comply with the Open
Records Act should a request be submitted to it. Further, East Augusta CDC agrees to
comply with the provisions of the Open Meetings Law and the following compliance
measures will be taken: East Augusta CDC 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 East Augusta CDC's board
meetings, except for such portions of the meeting as may be closed pursuant to the Open
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Meetings Law. East Augusta CDC 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 REQUIREMENTS
A. Conflict of Interest
East Augusta CDC 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-102 as appropriate.
This conflict of interest provision applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of East Augusta CDC. 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 ofthis 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. East Augusta CDC
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. East Augusta CDC shall comply with the requirements and standards ofOMB 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 East Augusta CDC. In such instances, East
Augusta CDC shall consult with HCD/Augusta on any changes that will result in substantive
changes to this Agreement. All such changes shall be made via written amendments to this
Agreement and shall be approved by the governing bodies of both Augusta and East Augusta
CDC.
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
East Augusta CDC 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 EACDCs publications and/or advertisements. (24
CFR 570.601).
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B. Principal Residence
East Augusta CDC agrees that the HOME funded housing must be acquired by a homebuyer
whose family qualifies as low-income family and the housing must be the principal residence
of the family throughout the period of affordability. Annually, EACDC shall forward a letter
to the homeowner certifying that the HOME assisted property is still their principal place of
residency.
C. Period of Affordability
East Augusta CDC agrees to comply with ~ 92.254(a)3, which states that the HOME assisted
housing must meet the affordability requirements for not less than the applicable period
specified within this regulation and beginning after project completion.
D. Ownership Interest
East Augusta CDC agrees that the ownership in the housing assisted must meet the definition
of "homeownership" in S92.2.
E. Non-Discrimination
East Augusta CDC 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.
F. Non-Discrimination and Residential Property
East Augusta CDC 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
I. General: East Augusta CDC 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, 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)
3. 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
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under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR
570.603)
E. Environmental Standards
East Augusta Community Development Corp. agrees that in accordance with the National
Environmental Policy Act of 1969 and 24 CFR part 58, it will cooperate with Augusta/HCD in
complying with the Act and regulations, and that no activities will be undertaken until notified
by Augusta/HCD that the activity is in compliance with the Act and regulations. Prior to
beginning any project development activity, an environmental review must be conducted by
the Augusta-Richmond County Planning Department pursuant to (24 CFR 570.604).
F. Flood Insurance
Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), East Augusta
Community Development Corp. 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 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
East Augusta Community Development Corp. 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
East Augusta Community Development Corp. 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. East Augusta Community Development Corp. will in all solicitations or advertisements
for employees placed by or on behalf of East Augusta Community Development Corp. 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
East Augusta Community Development Corp. 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, East Augusta Community Development Corp. agrees to comply with the
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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
East Augusta Community Development Corp. 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
HCD.
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 East Augusta Community Development Corp. 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
Community Development" will be explicitly stated in any and all pieces of publicity;
including but not limited to flyers, press releases, posters, brochures, public service
announcements, interviews, and newspaper articles.
N. Timely Expenditure of Funds
In accordance with 24 CFR 85.43, if East Augusta Community Development Corp. fails to
expend its grant funds in a timely manner, such failure shall constitute a material failure to
comply with this Agreement and invoke the suspension and termination provisions of
ARTICLE X. For purposes of this Agreement, timely expenditure of funds means East
Augusta Community Development Corp. shall obligate and expend its funds as designated
under ARTICLE II. (B).
O. Compliance with Laws and Permits
East Augusta Community Development Corp. 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.
East Augusta Community Development Corp. agrees to obtain all necessary permits for
intended improvements or activities.
P. Assignment of Contract
East Augusta Community Development Corp. shall not assign any interest in this contract or
transfer any interest in the same without the prior written approval of Augusta.
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Q. Equal Employment Opportunity
East Augusta Community Development Corp. 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
East Augusta Community Development Corp. will not discriminate against any employee or
applicant for employment because of race, color, religion, sex, national origin, or familial
status. East Augusta Community Development Corp. 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 East Augusta Community Development
Corp. social status. Such action shall include, but not be limited to the following: employment,
upgrading, demotion or transfer; recruitment or advertising; lay-off or termination, rates of
payor other forms of compensation; and selection for training, including apprenticeship. East
Augusta Community Development Corp. 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. East Augusta Community Development Corp.
agrees to make efforts to encourage the use of minority and women-owned business
enterprises in connection with HOME supported activities.
S. Religious Influence
East Augusta Community Development Corp. 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. East Augusta Community Development Corp. will not discriminate
against any person applying for shelter on the basis of religion. East Augusta Community
Development Corp. 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 East Augusta Community Development Corp. has indirect
cost allocation plan approved by the Department of Housing and Urban Development prior to
the execution of this Contract.
U. Travel
If applicable, East Augusta Community Development Corp. 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).
13
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 HOD Section 8 Housing
Quality Standards [HQS]. All housing assisted under this Agreement is "new construction"
by HOME Program definition and therefore must meet the local building codes for new
housing in Augusta-Richmond County, as applicable.
ARTICLE
x.
SUSPENSION AND TERMINATION
A. In the event East Augusta Community Development Corp. materially fails to comply with any
terms of this agreement, including the timely completion of activities as described in the
timetable and/or contained in ARTICLE I, Scope of Services, Augusta may withhold cash
payments until East Augusta Community Development Corp. cures any breach of the
agreement. If East Augusta Community Development Corp. fails to cure the breach, Augusta
may suspend or terminate the current award of HOME funds for the East Augusta Community
Development Corp.'s program.
B. Notwithstanding the above, East Augusta Community Development Corp. 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 East Augusta Community Development Corp. 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 East Augusta Community Development
Corp. for documented committed eligible costs incurred prior to the date of notice of
termination.
D. Notwithstanding any termination or suspension of this Agreement, East Augusta Community
Development Corp. 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 Community Development Department
925 Laney Walker Blvd., 2nd Floor
Augusta, Georgia 30901
East Augusta Community Development Corp. will receive all notices at the address indicated below:
East Au~usta Community Development Corporation
1011 12 Street
Augusta, Georgia 3090 I
ARTICLE XII.
INDEMNIFICATION
East Augusta Community Development Corp. 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, East Augusta Community Development Corp. specifically consents to jurisdiction and
venue in the Superior Court of Richmond County, Georgia and waives any right to contest jurisdiction
or venue in said Court.
Should it become necessary to determine the meaning or otherwise interpret any work, phrase or
provision of this Agreement, or should the terms of this Agreement in any way be the subject of
litigation in any court of laws or equity. It is agreed that the laws of the State of Georgia shall
exclusively control same.
The parties hereto do agree to bind themselves, their heirs, executors, administrators, trustees,
successors and assigns, all jointly and severally under the terms of this Agreement.
ARTICLE XIII.
INSURANCE AND BONDING
East Augusta Community Development Corp. 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, East Augusta Community
Development Corp. 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 East Augusta Community Development
Corp. handling or charged with the responsibility for handling funds and property pursuant to this
contract. East Augusta Community Development Corp. 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.
15
Additionally, East Augusta Community Development Corp. 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 East Augusta Community Development Corp. hereunder shall be
cancelable without at least fifteen days advance written notice to the Grantee. All insurance policies
required hereunder or copies thereof shall be promptly submitted for approval by the Augusta.
ARTICLE XIV.
PRIOR AND FUTURE AGREEMENTS
This document incorporates and includes all prior negotiations, correspondence, conversations,
agreements or understandings applicable to the matters contained herein and the parties agree that
there are no commitments, agreements, or understandings concerning the subject matter of this
agreement that are not contained in this document. Accordingly, it is agreed that no deviation from
the terms hereof shall be predicated upon any prior representations or agreements whether oral or
written. Augusta is not obligated to provide funding of any kind to East Augusta Community
Development Corp. 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.
16
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
}7f. usta)
By: (Y ,-J?"><t .
David S. Cope
As Its Mayor
.:~ ~~1
....:: >~
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lil
it"
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ATTEST:
EAST AUGUSTA COMMUNITY DEVELOPMENT CORP.CORPORATION
(Grantee)
\..,
"._ /J~'~
~7' ~///~1 .
As Its C~rporate Secretary
By:
SEAL
17
APPENDIX A
Statutes:
24 CFR Part 92, HOME Investment Partnerships Program ("HOME")
OMB Circular A-IIO - 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 - HOD 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
18
APPENDIX B
REPORTING REQUIREMENTS
East Augusta Community Development Corp. shall submit to the Grantee the following reports for
the term of this agreement.
I. Monthly Statistical Reports
Due each month by the 10th for the previous month.
2. Quarterly Progress & Financial Reports
Due the 15th of the new quarter.
3. Annual Progress Report (January 16,2009)
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.
19
APPENDIX C
CONSTRUCTION REQUIREMENTS
I. All construction projects shall comply with Federal, State, and local codes and ordinances,
including, but not limited to, the following:
A. "Standard Building Code", 2000 Edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
B. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
C. Standard Mechanical Code, latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
D. "National Electric Code", latest edition, National Fire Protection Association, Quincy,
Massachusetts.
E. Model Energy Code, 1997, Council of American Building Officials.
F. "ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice,
American with Disabilities Act of 1990".
G. Williams-Steiger Occupational Safety and Health Act of 1970, Public Law 91-596.
H. Part 1910 - Occupational Safety and Health Standards, Chapter XVII of Title 29, Code of
Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972).
I. Part 1926 - Safety and Health Regulations for Construction, Chapter XVII of Title 29, Code
of Federal Regulations (Federal Register, Volume 37, Number 243, December 16, 1972.
J. Section 106 of the National Historic Preservation Act (16 U.S.C. 470f).
2. Bidding:
A. Only contractors included on the Augusta-Richmond County Housing & Community
Development Department Approved Contractor List may bid on construction projects
funded with 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 HCD review upon request
3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for
inclusion on the HCD 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 HCD for
20
review and approval prior to bidding. HCD 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 & Community Development Department Contractors
Manual and Performance Standards. A copy of this manual is provided to every contractor when
included on the HCD Approved Contractors List. A copy is enclosed for inclusion.
6. Inspections. All projects will be inspected and approved by an HCD Construction and
Rehabilitation Inspector prior to release of the funds for that project.
21
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. HCD may continually inspect each house for contract compliance and to determine the
percent of completion prior to processing a draw request and releasing payment. HCD
may elect to make up to five (5) payments per house. HCD may choose not to release
payments if the work being performed is not of acceptable quality to HCD 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 HCD, 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 HCD.
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 HCD once they have been executed.
Note: The above developer fee structure relates only to single family affordable housing development
projects. Any other development fee such as that for a multi-family rental project (or other
commercial development) must be negotiated separately and approved by the Executive Director of
HCD 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. HEA TED 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
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
EACDC MUST PROVIDE A COMPLETED SCHEDULE OF COMPLETION AS EXHIBIT C _
WITH APPROPRIATE PROJECT MILESTONES WITHIN 10 TO 15 DAYS AFTER SIGNING THIS
AGREEMENT. THIS SCHEDULE MUST BE PROVIDED IN SUFFICIENT DETAIL TO PERMIT
HCD TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE
OF THIS AGREEMENT. A SAMPLE SCHEDULE IS PROVIDED BELOW.
25