HomeMy WebLinkAboutLANEY WALKER DEV $92,128.50
~
CONTRACT
between
AUGUSTA, GEORGIA
And
LANEY WALKER DEVELOPMENT CORPORATION
in the amount of
$ 92,128.50
Ninety-Two Thousand One Hundred Twenty-Eight Dollars and Fifty Cents
for Fiscal Year 2005
Providing funding for
HOME.INVESTMENT PARTNERSHIPS PROGRAM
"Laney Walker Revitalization- Phase II Project"
THIS AGREEMENT ("Contract"), is made and entered into as of the 18~day of ~J. ,
.
2005, ("the effective date") by and between Augusta, Georgia, acting through the Housing and
Economic Development Department (hereinafter referred to as "AHEDD") - with principal offices at
One 10th Street, Suite 430, Augusta, Georgia 30901, as party of the first part, hereinafter called
"Augusta", and Laney Walker Development Corporation, a non-profit corporation, organized pursuant
to the Laws of the State of Georgia, hereinafter called "L WDC" 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
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 2005 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 (CRDO); and
WHEREAS, Augusta wishes to enter into a contractual agreement with Laney Walker Development
Corporation 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, Laney Walker Development agreed to provide services funded through this contract
free from political activities, religious influences or requirements; and
WHEREAS, LWDC requested and Augusta has approved a total of $92,128.50 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: L WDC agrees to utilize approved HOME funds to support project related costs
associated with the Laney Walker Revitalization - Phase II Continuation. This project is a single
affordable housing effort which involves the development and construction of new single-family,
scattered site, affordable housing unit. Under this agreement:
... Perform new construction services for up to 10 single families
... Perform all required and requested marketing and advertising activities; in accordance with
"HOME" program "Fair Housing" regulations
... 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 home buyer 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 AMI for the purposes and objectives stated in
Article I, Scope of Services, and Exhibit "A" ofthis 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:
1. Construction
An amount not to exceed $ 92,128.50 shall be expended by LWDC from Year 2005 HOME
funds for construction costs related to the development of up to 10 affordable single family
housing unit on Martin Luther King Blvd. 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 L WDC and sold or rented to eligible low and very-low income homebuyers.
Address will be submitted prior to construction. L WDC may request a change in construction
address through a written request. Upon approval, L WDC may construct and be reimbursed.
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C. Program Location and Specific Goals to be Achieved
L WDC shall conduct project development activities and related services in its project area
LWDC shall conduct project development activities and related services in the Laney Walker
Community south of Laney Walker Boulevard. This development area fncorporates the
following boundaries: 12th Street on the West; 9th Street on the East; Wrightsboro Road on
the South; and Laney Walker Boulevard on the North to include the following new boundary
of the area bounded on the East by Old Savannah Road and running along a the South border
along Old Savannah Road into Camille Street; which is bounded on the South of Camille
Street and bounded on the West by Martin Luther King Blvd and north from Camille Street to
the intersection to Old Savannah Road. Property addresses will be submitted prior to
purchase.
D. Proiect Eligibility Determination
It has been determined that the use of HOME funds by the L WDC will be in compliance with 24 CFR
Part 92. Notwithstanding any other provisions of this contract, LWDC shall provide activities and
services as described in the description of the project, including use of funds, its goals and objectives,
tasks to be performed and a detailed schedule for completing the tasks for this project as provided in.
Exhibit A of this contract.
ARTICLE II. BUDGET AND METHOD OFP A YMENT
The L WDC 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. L WDC, its directors, officers and staff will carry out and oversee the
implementation of projects to be funded with HOME funds. L WDC agrees to perform the required
services under the general coordination of the Augusta Housing and Economic Development
Department. In addition and upon approval by Augusta, L WDC 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 L WDC a maximum of $ 92,128.50 under this agreement for project
expenses incurred as outlined in ARTICLE I, Scope of Services, subject to L WDCs
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. AHED will monitor the progress of the project and LWDC'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.
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7. This Agreement is based upon the availability of HOME Program Funds.
8. L WDC will make reasonable efforts to secure additional funding sources using the
$ 92,128.50 in HOME funds awarded under this agreement as leverage to support the Laney
Walker Revitalization - Phase II Continuation Project.
B. Timetable for Completion of Proiect Activities
1. L WDC 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. Project must be completed within thirteen months from the signing of this
agreement.
C. Proiect Budget: Limitations
1. L WDC shall be paid a total consideration of $ 92,128.50 for full performance of the services
specified under this Agreement. Any cost above this amount shall be the sole responsibility of
the L WDC. It is also understood by both parties to this contract that the funding provided
under this contract for this specific project shall be the only funds provided by Augusta -
unless otherwise agreed to by Augusta and L WDC.
D. Developer's Fee
1. L WDC shall collect an amount not to exceed fifteen percent (15%) of the total expense of
each home produced. This amount will serve as a "developer's fee" which acts as an expense
charged against each house produced; and to be collected at the time of closing.
2. The L WDC shall adhere to the following budget in the performance of this contract.
A.
Proiect Activity Cost
$ 92,128.50
Construction Cost
TOTAL HOME PROJECT COST: $ 92,128.50
ARTICLE III - RESALEIRECAPTURE 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). L WDC
must assure that Resale/Recapture Provisions is included in all sale contracts.
A. Resale Provisions r24 CFR 92.254(5)(i)]
If the initial purchaser of the property sells the home during the 20-year loan period, L WDC
has the "right of first refusal" to repurchase the property for subsequent resale to other HOME
Program-eligible purchasers. If L WDC exercises its right of first refusal and then sells the
property to another HOME program-eligible purchaser, the new purchaser must agree to
accept the restrictions on the use of the property required by the HOME Program through the
execution of a new Promissory Note and a new Deed to Secure Debt.
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B. Recapture Provisions r24 CFR 92.254(5)(ii)1
If the eligible homebuyer (who received down payment assistance [HOME Program] funds
from Augusta) sells their property, then L WDC shall recapture the HOME funds and return
the funds to Augusta, which will ensure that the recaptured HOME Program funds are
reinvested in other affordable housing in Augusta for low and moderate-income persons.
This shall be accomplished through deed restrictions, property liens, and contractual
obligations, as described in Article I.B of this Agreement.
ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the L WDC (whichever date is later) and shall end at the completion of all program activities,
within the time specified in Article I.D, or in accordance with ARTICLE IX: Suspension and
Termination.
ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to
L WDC or any subcontractor hereunder. All payments to L WDC by Augusta will be made on a
reimbursement basis.
B. LWDC 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 upon the request for
reimbursement. L WDC must supply to Augusta in writing how they will meet their MATCH
requirement upon receipt of the executed agreement.
C. L WDC shall maintain a separate account and accounting process for HOME funding sources.
D. L WDC shall not use these funds for any purpose other than the purpose set forth in this
Agreement.
E. Subject to L WDC's compliance with the proVISIons of this Agreement, Augusta agrees to
reimburse all budgeted costs allowable under federal, state, and local guidelines.
F. 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.
G. Requests by the LWDC for payment shall be accompanied by proper documentation and shall
be submitted to AHED, 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 AHED, 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 ofthis Agreement.
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H. L WDC shall maintain an adequate financial system and internal fiscaJ controls.
I. Unexpended Funds: Unexpended funds shall be recaptured by Augusta. L WDC has thirteen
months from the date of this contract to expend funds. Upon written request, Augusta will
notify L WDC of the recapture of any unexpended funds which will be used for other eligible
projects proposed by Augusta. .
ARTICLE VI.
REPAYMENT~ROGRAMINCOME
A. Program income means gross income received by the L WDC directly generated from the use
of HOME funds in accordance with 24 CFR 92.504(c)(3. Program income includes but is not
limited to the following:
1. Proceeds from the sale or long-term lease of real property acquired or improved with
HOME funds;
2. Gross income from the use or rental of real property acquired or improved with
HOME funds - less incidental costs; Monthly reports must be submitted by L WDC
on a timely basis. Please refer to Appendix B 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. L WDC agrees that any program income generated by an activity that is only partially assisted
with HOME funds shall be prorated to reflect the percentage of program income to be returned
to Augusta by L WDC.
C. The receipt and disposition by L WDC 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 L WDC 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, L WDC will retain no less than 15 % of construction cost as a developer fee.
L WDC 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 AHED.
D. All funds retained by L WDC must be used for HOME-eligible activities or other housing
activities that benefit low-income families as required by 24 CFR 92.300(a)(2).
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E. In accordance with 24 CFR 570.503 (b) (8), LWDC 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.
F. Any real property under the LWDC'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 acquisition of, or improvement to, the
property .
ARTICLE
VII. RECORD KEEPING, REPORTING AND MONITORING
REQUIREMENTS
A. L WDC shall carry out its HOME assisted activities in compliance with all HOME Program
laws and regulations described in 24 CFR Part 92 Subpart E (Program Requirements), Subpart
F (Project Requirements), and Subpart H (Other Federal Requirements). These compliance
activities include, but are not limited to:
1. Maximum acquisition prices [24 CFR 92.205A.2]
2. Maximum per unit HOME Program subsidy amount [Section 221 (d)(3)]
3. Combined affordability of assisted units
4. Income eligibility of 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. 203 B Program
9. Lead-based Paint Abatement
B. To document low and moderate-income benefits required in 24 CFR 570.200(a) (2). LWDC
shall maintain records that document all clients served with HOME funds. In addition, L WDC
shall document each client's race, family size, annual household income, and whether or not
the family is female-headed. Augusta shall supply "Income Verification" forms which, when
completed by those clients served by L WDC, shall provide the information and verification
described above.
C. L WDC shall prepare and submit reports relative to this project to Augusta at Augusta's
request. Augusta shall supply L WDC 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. L WDC 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.
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E. LWDC shall make all records for this project available to Augusta, the U.S. Department of
Housing and Urban Development, the Comptroller General of the United States, or any of
their duly authorized representatives for the purpose of making audits, examinations, excerpts
and transcriptions.
F. In compliance with OMB Circular A-110 regarding retention and custodial requirements for
records, L WDC 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.
G. In connection with the expenditure of federal funds, L WDC shall provide to Augusta an
organization -wide audited financial statement consisting of a balance sheet, income statement
and a statement of changes in its financial position. All documents shall be prepared by a
certified public accountant. Such financial disclosure information shall be filed with Augusta
within one hundred eighty (180) calendar days after the close of the LWDC's fiscal year.
L WDC is responsible for any cost associated with the audit. Failure to comply may result in
the reallocation of funding and termination of the contract. LWDC 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: L WDC's records related to this Agreement and the services to be
provided under the grant may be a public record subject to Georgia's Open Records Act
(O.c.G.A. S 50-18-70). LWDC agrees to comply with the Open Records Act should a
request be submitted to it. Further, L WDC agrees to comply with the provisions of the Open
Meetings Law and the following compliance measures will be taken: L WDC will provide
notice to the media 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 media, public and the Grantee
shall not be denied admittance to L WDC's board meetings, except for such portions of the
meeting as may be closed pursuant to the Open Meetings Law. L WDC shall provide to the
Grantee a tentative annual schedule of the Board of Directors' meetings. Publications and
minutes of each meeting shall be submitted to Grantee within 30 days after each meeting.
ARTICLE
VIII ADMINISTRATIVE REQUIREMENTS
A. Conflict of Interest
L WDC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36,
570.611, OMB Circular A-I10 and OMB Circular A-I02 as appropriate.
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This conflict of interest provision applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of LWDC. 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. L WDC in the persons of Directors, Officers,
Employees, Staff, Volunteers and Associates such as Contractors, Sub-contractors and
Consultants shall sign and submit a Conflict of Interest Affidavit. (Affidavit form attached as
part in parcel to this Agreement)
B. LWDC shall comply with the requirements and standards of OMB Circular A-122 "Cost
Principles for Non-Profit Organizations" and 24 CFR part 570.502(b), "Applicability of
Uniform Administrative Requirements."
C. Augusta may, from time to time, request changes to the scope of this agreement and
obligations to be performed hereunder by the L WDC. In such instances, L WDC shall consult
with AHED/ 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 LWDC.
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
L WDC agrees that it will conduct and administer HOME activities in conformity with Pub. L.
88-352, "Title VI of the Civil Rights Act of 1964", and with Pub. L. 90-284 "Fair Housing
Act", and that it will affirmatively further fair housing. One suggested activity is to use the fair
housing symbol and language in L WDC publications and/or advertisements. (24 CFR
570.601).
B. Non-Discrimination
L WDC agrees to comply with 24 CFR Part I, which provides that no person shall be excluded
from participation in this project on the grounds of race, color, national origin, or sex; or be
subject to discrimination under any program or activity funded in whole or in part with federal
funds made available pursuant to the Act.
C. Non-Discrimination and Residential Property
L WDC agrees, in accordance with Executive Order 11063 and 12259 that it will not
discriminate because of race, color, religion, sex, or national origin in the sale, leasing, rental
or other disposition of residential property and related facilities, or in the use of occupancy
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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: L WDC 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, LWDC
will adhere to the Davis-Bacon Act (40 USC 276), as amended, which requires all
laborers and mechanics working on the project to be paid not less than
prevailing wage-rates as determined by the Secretary of Labor. By reason of the
foregoing requirement, the Contract Work Hours and Safety Standards Act (40 USC
327 et seq.) also applies. These requirements apply to the rehabilitation of residential
property only if such property contains eight or more units. (24 CFR 570.603)
2. Labor Matters: No person employed in the work covered by this contract shall be
discharged or in any way discriminated against because he or she has filed any
complaint or instituted or caused to be instituted any proceeding or has testified or is
about to testify in any proceeding under or relating to the labor standards applicable
hereunder to his or her employer. (24 CFR 570.603)
E. Environmental Standards
L WDC agrees that in accordance with the National Environmental Policy Act of 1969 and 24
CFR part 58, it will cooperate with Augusta!AHED in complying with the Act and
regulations, and that no activities will be undertaken until notified by Augusta! AHED 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 Departmen~ pursuant to (24 CFR 570.604).
F. Flood Insurance
Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), 30901 DC
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
L WDC agrees to take all reasonable steps to minimize displacement of persons as a result of
HOME assisted activities. Any such activities assisted with 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
LWDC 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
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the basis of race, color, religion, sex or national origin. The L WDC will in all solicitations or
advertisements for employees placed by or on behalf of the L WDC, state that all qualified
applicants will receive consideration for employment without regard to race, color, religion,
sex, national origin or familial status.
I. Employment and Business Opportunities
L WDC agrees that low and moderate income persons residing within Augusta-Richmond
County; and that contracts for work in connection with the project be awarded to eligible
business concerns which are located in or owned in substantial part by persons residing in
Augusta-Richmond County - (24 CFR 570.697).
J. Lead-Based Paint
In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the
CDBG Regulations, L WDC agrees to comply with the Lead Based Paint Poisoning Prevention
Act pursuant to prohibition against the use of lead-based paint in residential structures and to
comply with 24 CFR 570.608 and 24 CFR 35 with regard to notification of the hazards of
lead-based paint poisoning and the elimination of lead-based paint hazards.
K. Debarred. Suspended or Ineligible Contractor
L WDC agrees to comply with 24 CFR 570.609 with regards to the direct or indirect use of
any contractor during any period of debarment, suspension or placement in ineligibility status.
No contract will be executed until such time that the debarred, suspended or ineligible
contractor has been approved and reinstated by AHED.
L. Drug Free Workplace
In accordance with 24 CFR part 24, subpart F, LWDC 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
L WDC for the project funded pursuant to this Agreement, during the term of this Agreement
or for one year thereafter, will make reference to the contribution of Augusta-Richmond
County in making the project possible. The words "Augusta-Richmond County Department of
Housing and Economic Development" will be explicitly stated in any and all pieces of
publicity; including but not limited to flyers, press releases, posters, brochures, public service
announcements, interviews, and newspaper articles.
N. Timely Expenditure of Funds
In accordance with 24 CFR 85.43, if the LWDC fails to expend its grant funds'in a timely
manner, such failure shall constitute a material failure to comply with this Agreement and
invoke the suspension and termination provisions of ARTICLE IX. For purposes of this
Agreement, timely expenditure of funds means the L WDC shall obligate and expend its
funds as designated under ARTICLE I. (C), (D) and (E).
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O. Compliance with Laws and Permits
The L WDC 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. L WDC agrees to obtain all necessary
permits for intended improvements or activities.
P. Assignment of Contract
L WDC shall not assign any interest in this contract or transfer any interest in the same without
the prior written approval of Augusta.
Q. Equal Employment Opportunity
L WDC 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 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
L WDC will not discriminate against any employee or applicant for employment because of
race, color, religion, sex, national origin, or familial status. L WDC 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 L WDC 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. L WDC agrees to post in
conspicuous places, available to employees and applicants for employment, notices to be
provided by Augusta setting forth the provisions of this nondiscrimination clause. The L WDC
agrees to make efforts to encourage the use of minority and women-owned business
enterprises in connection with HOME supported activities.
S. Religious Influence
The L WDC will not discriminate against any employee or applicant for employment on the
basis of religion and will not give preference of persons on the basis of religion. L WDC will
not discriminate against any person applying for shelter on the basis of religion. L WDC will
provide no religious instruction or counseling, conduct no religious worship or services,
engage in no religious proselytizing and exert no religious influence in the provision of shelter
and other eligible activities funded by this grant.
T. Indirect Costs
Indirect costs will only be paid if L WDC has a indirect cost allocation plan approved by the
Department of Housing and Urban Development prior to the execution ofthis Contract.
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V. Travel
If applicable, L WDC shall obtain prior written approval from the Grantee for any travel
outside the State of Georgia with funds provided under this contract. All Federal Travel
Regulations are applicable (41 CFR Part 301).
V. Construction Requirements - SEE APPENDIX C
All housing units [rehabilitated, reconstructed or newly 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 TERMINATION
A. In the event L WDC materially fails to comply with any terms of this agreement, including the
timely completion of activities as described in the timetable and/or contained in ARTICLE I,
Scope of Services, or the provisions of ARTICLE VIII(N), Augusta may withhold cash
payments until L WDC cures any breach of the agreement. If L WDC fails to cure the
breach, Augusta may suspend or terminate the current award of HOME funds for the L WDC's
program.
B. Notwithstanding the above, the L WDC 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 L WDC for
the purposes of set off until such time as the exact amount of damages is determined.
C. In the best interest of the program and to better serve the people in the target areas and fulfill
the purposes of the Act, either party may terminate this Agreement upon giving thirty (30)
days notice in writing of its intent to terminate, stating its reasons for doing so. In the event
Augusta terminates the Agreement, Augusta shall pay L WDC for documented committed
eligible costs incurred prior to the date of notice of termination.
D. Notwithstanding any termination or suspension of this Agreement, L WDC shall not be
relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, VIII, IX, XI,
and XII of this agreement with respect to HOME funds previously disbursed or income
derived therefrom.
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ARTICLE XI. NOTICES
Whenever either party desires to give notice unto the other, such notice must be in writing, sent by
certified United States mail, return receipt requested, addressed to the party for whom it is intended, at
the place last specified, and the place for giving of notice shall remain such until it shall have been
changed by written notice.
Augusta will receive all notice at the address indicated below:
Office of the Administrator
Municipal Building
530 Green Street, Suite 801
Augusta, Georgia 30911
With copies to:
Augusta Housing and Economic Development Department
925 Laney Walker Blvd, 2nd Floor
Augusta, Georgia 30901
L WDC will receive all notices at the address indicated below:
Laney Walker Development Corporation
851 Laney Walker Blvd.
Augusta, Georgia 30901
ARTICLE XII.
INDEMNIFICATION
L WDC 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, L WDC specifically
consents to jurisdiction and venue in the Superior Court of Richmond County, Georgia and waives any
right to contest jurisdiction or venue in said Court.
ARTICLE XIII.
INSURANCE AND BONDING
L WDC shall acquire adequate insurance coverage to protect all contract assets from loss or damage
resulting from theft, fraud or physical damage. All policies and amounts of coverage shall be subject
to approval by Augusta. Additionally, LWDC shall procure and provide for approval by Augusta a
blanket fidelity bond in the amount of at least $100,000.00 covering all personnel of the LWDC
handling or charged with the responsibility for handling funds and property pursuant to this contract.
L WDC shall procure and provide, for approval by the Augusta, comprehensive general liability
insurance in the amount of at least $1,000;000.00 insuring the Grantee and adding as named insured
the Augusta, the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and
successors.
Additionally, L WDC 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 L WDC
hereunder shall be cancelable without at least fifteen days advance written notice to the Grantee. All
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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 L WDC beyond the term of this
Agreement.
ARTICLE XV.
LEGAL PROVISIONS DEEMED INCLUDED
Each and every provision of any law or regulations and clause required by law or regulation to be
inserted in this Agreement shall be deemed to be inserted herein and this Agreement shall be read and
enforced as though it were included herein and if, through mistake or otherwise, any such provision is
not inserted or is not correctly inserted, then upon application of either party this Agreement shall
forthwith be amended to make such insertion.
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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
(Augusta)
~
Lena B n .
Clerk of Commission
'ftB
ATTEST:
LANEY WALKER DEVELOPMENT CORPORATION
(Grantee) ... ~
~~/" ... ~
By:
As Its President e
. SEAL
~def!~~ Y1l~/
,{AS ts Corporate Secretary
. /-
- /;1 -
(Plain Witness)
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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 L WDC shall submit to the Grantee the following reports for the term of this agreement.
1. Monthly Statistical Reports
Due each month by the 10th for the previous month.
2. Quarterly Progress & Financial Reports
3. Annual Progress Report
4. AuditlFinancial Report (No later than April 15, 2006)
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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APPENDIX C
CONSTRUCTION REQUIREMENTS
1. All construction projects shall comply with Federal, State, and local codes and ordinances,
including, but not limited to, the following:
A. "Standard Building Code", 2000 Edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
B. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
C. Standard Mechanical Code, latest edition, Southern Building Congress, International, Inc.,
Birmingham, Alabama.
D. "National Electric Code", latest edition, National Fire Protection Association, Quincy,
Massachusetts.
E. Model Energy Code, 1997, Council of American Building Officials.
F. "ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice,
American with Disabilities Act of 1990".
G. Williams-Steiger Occupational Safety and Health Act of 1970, Public Law 91-596.
H. Part 1910 - Occupational Safety and Health Standards, Chapter XVII of Title 29, Code of
Federal Regulations (Federal Register, Volume 37, Number 202, October 18, 1972).
I. Part 1926 - Safety and Health Regulations for Construction, Chapter XVII of Title 29, Code
of Federal Regulations (Federal Register, Volume 37, Number 243, December 16, 1972.
J. Section 106 of the National Historic Preservation Act (16 U.s.C. 470f).
2. Bidding:
A. Only contractors included on the Augusta-Richmond County Housing & Economic
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 AHED review upon
request
3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for
inclusion on the AHED 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.
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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 AHED for
review and approval prior to bidding. AHED 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 & Economic Development Department Contractors
Manual and Performance Standards. A copy of this manual is provided to every contractor when
included on the AHED Approved Contractors List. A copy is enclosed for inclusion.
6. Inspections. All projects will be inspected and approved by an AHED Construction and
Rehabilitation Inspector prior to release of the funds for that project.
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EXHIBIT "A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
1. Augusta through the Housing and Economic Development Department agrees to provide up to
$92,128.50 in Year 2005 HOME Investment Partnerships Funds to Laney Walker
Development Corporation. These funds will support construction and other costs associated
with the production of approximately 10 affordable single family residential units in
connection with the continuation of the Laney Walker Revitalization - Phase II.
2. In connection with the acquisition of HOME funded development sites, the L WDC shall
submit to AHED an overall land development plan. This plan should identify the proposed
properties to be acquired in connection with the phased implementation of the Laney Walker
Revitalization - Phase II. Prior to the purchase of any HOME funded development sites,
L WDC shall notify AHED 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 AHED for review and approval by the Executive Director of the Housing and Economic
Development Department or his or her designated project representative.
3. AHED must review and approve all residential design plans, project specifications and total
development cost for each residential development project before work is commenced and
before funds can be released for payment reimbursement. Construction payments will be
released to L WDC in accordance with a payment schedule outlined in the construction
contract between L WDC and the Contractor.
4. L WDC will provide the lots on which all new affordable homes are to be built under this
agreement and in connection with the Laney Walker Neighborhood Revitalization - Phase II
Project.
5. With AHED approval, L WDC may use HOME funds under this agreement for the following
purposes:
a. To support development costs as outlined in Item 6 below.
b. As the source of funds from which a project developer fee will be paid as outlined in
Item 7 below.
6. Construction Costs and Requirements
a. The amount that can be used to pay for development costs will be identified on a project-
by-project basis in EXHIBIT B. In no case will this amount exceed the maximum per unit
amount as defined at 24 CFR 92.250.
b. L WDC will provide construction management for the project to ensure that construction
work is being carried out in accordance with plans, specifications and the project budget.
c. L WDC must make sure contractor obtains and posts all permits on job site. Prior to
releasing final payment on each house, L WDC must also secure a Certificate of Occupancy
from the contractor that has been issued by the Department of Licenses and Inspection.
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d. L WDC must collect progress and final lien releases from the contractor, subcontractors and
material suppliers prior to making a payment to a contractor.
e. AHED may continually inspect each house for contract compliance and to determine the
percent of completion prior to processing a draw request and releasing payment. AHED
may elect to make up to five (5) payments per house. AHED may choose not to release
payments if the work being performed is not of acceptable quality to AHED 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 AHED, 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 AHED.
d. When necessary, LWDC may leave HOME development funds in a house as a second
mortgage permanent loan to the purchaser. L WDC will, however, be required to assign
these loans to AHED once they have been executed.
Proiect Developer Fees
a. L WDC can draw down up to 15 % of development cost and fees 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:
b. The total development cost must be met if there is to be a reduction in sell price of the
home, developer understand the reduction originates from developers fee. The developer
will not receive agreed development percentage.
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 AHEDD or his/her designated
representative prior to payment to grantee.
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