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HomeMy WebLinkAboutPROMISE LAND CDBG $38,393.00 2006 CONTRACT " between AUGUSTA, GEORGIA ( And PROMISE LAND COMMUNITY DEVELOPMENT CORPORATION in the amount of $ 38,393.00 Thirty-Eight Thousand Three Hundred Ninety-Three Dollars for Fiscal Year 2006 Providing funding for HOME INVESTMENT P ARTNERSIDPS PROGRAM "Gordon Woods Phase ll" THIS AGREEMENT ("Contract"), is made and entered into as of the 20th day of June, 2006, ("the effective date") by and between Augusta, Georgia, acting through the Housing and Community Development Department (hereinafter referred to as "AHCD") - with principal offices at 925 Laney Walker Blvd., 2D Floor, Augusta, Georgia 30901, as party of the first part, hereinafter called "Augusta", and Promise Land Community Development Corporation, a non-profit corporation, organized pursuant to the Laws of the State of Georgia, hereinafter called "PLCDC" as party in the second part. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) as a 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, the grantee is a designated Community Housing and Development Organization (CHDO) and Community Based Development Organization (CBDO) - hereinafter referred to as PLDC - 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 2006 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 PLCDC for the administration of HOME eligible affordable housing development activities; and 1 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 ~nd Urban Development regulations. ( WHEREAS, PLCDC agreed to provide services funded through this contract free from political activities, religious influences or requirements; and ( ( WHEREAS, PLCDC requested and Augusta has approved a total of $38,393.00 in grant funds to perform HOME eligible activities as described in Article I, below: NOW, THEREFORE, the parties of this agreement for the consideration set forth below, do here and now agree to the following terms and conditions: ARTICLE I. SCOPE OF SERVICES A. Scope of Services Project Description: PLCDC agrees to utilize approved HOME funds to support project related costs associated with the Gordon Woods Phase II Project. <,This project involves the construction of a single family home that will be sold to an eligible low to moderate income homebuyer. B. Use of Funds: HOME funds shall be used by PLCDC for the purposes and objectives stated in Article I, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for any other purpose(s) is not permitted. The following summarizes the proposed uses of HOME Program funds under this Agreement: 1. Construction Cost An amount not to exceed $ 38,393.00 shall be expended by PLDC to support the construction of one single family home to be constructed and made available for purchase by a HOME program eligible low and moderate-income homebuyer. 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 & building supplies. Address will be submitted prior to construction. Environmental clearance and feasibility must be completed prior to construction of property. Upon approval from AHCD,PLCDC may begin construction and be reimbursed. C. Pro2fam Location and Specific Goals to be Achieved PLDC shall conduct project development activities and related services in its project area (also known as the South Augusta Communities that incorporates the following boundaries: Western Edge as Fort Gordon, the Southern edge as Deansbridge Road, Eastern edge as Bobby Jones Expressway and Milledgeville Road as the Northern edge. The project area includes Barton Village, Meadowbrook, Old McDuffie and subdivisions located along Barton Chapel Road. 2 D. Proiect Eli,gibilitv Determination It has been determined that the use of HOME funds by the PLCDC will be in compliance with 24 CFR Part 92. Notwith~tmding any other provisions of this contract, PLCDC shall provide activities and services as descri~ed in the description of the project, including use of funds, its goals and objectives, tasks to be perfoI1l1ed and a detailed schedule for completing the tasks for this project as provided in Exhibit A of this qontract. ARTICLE ll. BUDGET AND METHOD OF PAYMENT ! The PLCDC will be compensated in accordance with this Article II, Budget and Method of Payment, that specifically identifies the use of HOME and other projectfunding as represented in Article II. C.2 of this Agreement. The PLCDC, its directors, officers' and staff will carry out and oversee the implementation of projects to be funded with HOME funds. The PLCDC agrees to perform the required services under the general coordination of the Augusta Housing and Economic Development Department. In addition and upon approval by Augusta, PLCDC 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 PLCDC a maximum of $ 38,393.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to PLCDCs 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 V, attached hereto and made part thereof. 3. AHCDD will monitor the progress of the project and PLCDC'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. Dep~ent of Housing and Urban Development. 7. This Agreement is based upon the availability of HOME Program Funds. 8. PLCDC will make reasonable efforts to secure additional funding sources using the $ 38,393.00 in HOME funds awarded under this agreement as leverage to support the construction of a single family home in the Gordon Woods Phase II Project. 3 .. B. Timetable for Completion ofProiect Activities 1. PLCDC will provide a detailed outline within ten days of receiving the executed agreement 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. Completion reports must be submitted no later than 120 days after the final reimbursement. C. Proiect Budget: Limitations 1. PLCDC shall be paid a total consideration of$ 38,393.00 for full performance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of the PLCDC. It is also understood by both parties to this contract that the funding provided under this contract for this specific project shall be the only funds provided by Augusta - unless otherwise agreed to by Augusta and PLCDC. 2. The PLCDC shall adhere to the following budget in the performance of this contract. A. Proiect Activity Cost $ 38,393.00 Construction 38,393.00 TOTAL HOME PROJECT COST: $ 38,393.00 ARTICLE ill - RESALEIRECAPTURE PROVISIONS [24 CFR 92.254(5)] 1. The Resale/Recapture Provisions in this Article ill shall ensure compliance with the HOME Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). A. Resale Provisions r24 CFR 92.254(5)0)1 If the initial purchaser of the property sells the home. during the 20-year loan period, PLCDC has the "right of first refusal" to repurchase the property for subsequent resale to other HOME Program-eligible purchasers. If PLCDC exercises its right of first refusal and then sells the property to another HOME program-eligible purchaser, the new purchaser must agree to accept the restrictions on the use of the property required by the HOME Program through the execution of a new Promissory Note and a new Deed to Secure Debt. B. Recapture Provisions 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 PLCDC shall recapture the HOME funds and return the funds to Augusta, which will ensure that the recaptured HOME Program funds are reinvested in other affordable housing in Augusta for low and moderate-income persons. This shall be accomplished through deed restrictions, property liens, and contractual obligations. 4 ARTICLE IV. TERM OF CONTRACT The term of this agreement shall commence on the date when this agreement is executed by Augusta and the PLCDC (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article II.B, or in accordance with ARTICLE X: 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 PLCDC or any subcontractor hereunder. All payments to PLCDC by Augusta will be made on a reimbursement basis. B. PLCDC 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. C. PLCDC shall maintain a separate account and accounting process for HOME funding sources. D. PLCDC shall not use these funds for any purpose other than the purpose set forth in this Agreement. E. Subject to PLCDC's compliance with the provisions of this Agreement, Augusta agrees to reimburse all budgeted costs allowable under federal, state, and local guidelines. 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 PLCDC for payment shall be accompanied by proper documentation and shall be submitted to AHCD, 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 AHCD, copies of invoices, receipts, other evidence of indebtedness, budget itemization and description of specific activities undertaken. Invoices shall not be honored if received by Augusta later than sixty (60) calendar days after expiration date of this Agreement. H. PLCDC shall maintain an adequate financial system and internal fiscal controls. I. Unexpended Funds: Unexpended funds shall be recaptured by Augusta. PLCDC has thirteen months from the date of this contract to expend funds. Upon written request, Augusta will notify PLCDC of the recapture of any unexpended funds which will be used for other eligible projects proposed by Augusta. 5 ARTICLE VI. REPAYMENTIPROGRAMINCOME A. PLCDC may retain all the proceeds generated from a CHDO development activity. The proceeds shall be used in the following manner: ~ HOME - eligible activities ~ 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. B. All funds retained by PLCDC must be used for HOME-eligible activities or other housing activities that benefit low-income families as required by 24 CFR 92.300 (a)(2). C. PLCDC shall report quarterly the use of proceeds to Augusta. The ireport 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 PLCDC control that was acquired or improved in whole or in part with HOME funds in excess of $25,0000 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. ARTICLE vu. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS A. PLCDC shall carry out its HOME assisted activities in compliance with all HOME Program laws and regulations described in 24 CFR Part 92 Subpart E (Program Requirements), Subpart F (project Requirements), and Subpart H (Other Federal Requirements). These compliance activities include, but are not limited to: 1. Maximum acquisition prices [24 CFR 92.205A.2] 2. Maximum per unit HOME Program subsidy amount [Section 22 I (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. 203 B Program 9. Lead-based Paint Abatement B. To document low and moderate-income benefits required in 24 CFR 570.200(a)(2). PLCDC shall maintain records that document all clients served with HOME funds. In addition, PLCDC shall document each client's race, family size, annual household income, and whether or not the family is female-headed. Augusta shall supply "Income Verification" forms which, when completed by those clients served by PLCDC, shall provide the information and verification described above. C. PLCDC shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply PLCDC with the following report forms and require the same to be completed as requested by Augusta: "Monthly Services", "Quarterly Progress", "Quarterly 6 Financial" and "Annual Report".',<Further explanation and report due dates are found III APPENDIX B below. F. PLCDC shall maintain books and records in accordance with generally accepted accounting principles. Documents shall be m~intained in accordance with practices that sufficiently and properly reflect all expenditure of funds provided by Augusta under this Agreement. G. PLCDC shall make all records for this project available to Augusta, the U.S. Department of Housing and Urban Development, the Comptroller General of the United States, or any of their duly authorized representatives for the purpose of making audits, examinations, excerpts and transcriptions. H. In compliance with OMB Circular A-110 regarding retention and custodial requirements for records, PLCDC shall maintain financial records, supporting documents, statistical records, and all other records pertinent to this Agreement for a period of three years, with the following qualifications: 1. If any litigation, claim or audit is started before the expiration of the 3-year period, the records shall be retained until all litigation, claims, or audit findings involving the records have been resolved. 2. Records for non-expendable personal property acquired with 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. I. In connection with the expenditure of federal funds, PLCDC shall provide to Augusta an organization -wide audited fmancial statement consisting of a balance sheet, income statement and a statement of changes in its fmancial position. All documents shall be prepared by a certified public accountant. Such financial disclosure information shall be filed with Augusta within one hundred eighty (180) calendar days after the close of the PLCDC ~ fiscal year. PLCDC is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. PLCDC shall supply, upon request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. J. Open Records Disclosure: PLCDC's records related to this Agreement and the services to be provided under the grant may be a public record subject to Georgia's Open Records Act (O.C.G.A. ~ 50-18-70). PLCDC agrees to comply with the Open Records Act should a request be submitted to it. Further, PLCDC agrees to comply with the provisions of the Open Meetings Law and the following compliance measures will be taken: PLCDC will provide notice to the 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 Grantor, subject to the provisions of the Open Meetings Law. The media, public and the Grantor shall not be denied admittance to PLCDC's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. PLCDC shall provide to the Grantor a tentative annual schedule of the Board of Directors' meetings. Publications and minutes of each meeting shall be submitted to Grantor within 30 days after each meeting. 7 ( ARTICLE VIII ADMINISTRATIVE REQUIREMENTS A. (Conflict ofInterest rPLCDC agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, [570.611, OMB Circular A-II0 and OMB Circular A-I02 as appropriate. ~ This conflict of interest provision applies to any person who is an employee, agent, consultant, : officer, or elected official or appointed official of PLCDC. No person described above who : exercises, may exercise or has exercised any functions or responsibilities with respect to the , HOME activities supported under this contract; or who are in a position to participate in a : decision-making process or gain inside information with regard to such activities, may obtain , any financial interest or benefit from the activities, or have a financial interest in any contract, . sub-contract, or agreement with respect to the contract activities, either for themselves or those 'with whom they have business or family ties, during their tenure or for one year thereafter. ,For the purpose of this provision, "family ties", as defined in the above cited volume and ,provisions of the Code of Federal Regulations, include those related as Spouse, Father, ,Mother, Father-in-law, Mother-in~law, Step-parent, Children, Step-children, Brother, Sister, ,Brother-in-law, Sister-in-law, Grandparent, Grandchildren of the individual holding any < interest in the subject matter of this Agreement. PLCDC in the persons of Directors, Officers, , Employees, Staff, Volunteers and Associates such as Contractors, Sub-contractors and Consultants shall sign and submit a Conflict of Interest Affidavit. (Affidavit form attached as part of this Agreement) B. PLCDC shall comply with the requirements and standards of OMB Circular A-122 "Cost Principles for Non-Profit Organizations" and 24 CFR part 570.502(b), "Applicability of Uniform Administrative Requirements." C. Augusta may, from time to time, request changes to the scope of this agreement and obligations to be performed hereunder by the PLCDC. In such instances, PLCDC shall consult with AHCD/ Augusta on any changes that will result in substantive changes to this Agreement. All such changes shall be made via written amendments to this Agreement and shall be approved by the governing bodies of both Augusta and the PLCDC. 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 REQillREMENTS A. Fair Housing PLCDC agrees that it will conduct and administer HOME activities in conformity with Pub. L. 88-352, "Title VI of the Civil Rights Act of 1964", and with Pub. L. 90-284 "Fair Housing Act", and that it will affIrmatively further fair housing. One suggested activity is to use the fair housing symbol and language in PLCDC publications and/or advertisements. (24 CFR 570.601). 8 B. Non-Discrimination PLCDC agrees to comply with 24 CFR Part I, which provides that no person shall be excluded from participation in this project on the grounds of race, color, national origin, or sex; or be subject to discrimination under any program or activity funded in whole or in part with federal funds made available pursuant to the Act. C. Non-Discrimination and Residential Property PLCDC agrees, in accordance with Executive Order 11063 and 12259 that it will not discriminate because of race, color, religion, sex, or national origin in the sale, leasing, rental or other disposition of residential property and related facilities, or in the use of occupancy thereof, if such property and related facilities are, among other things, provided in whole or in part with the aid of loans, advances, grants, or contributions agreed to be made by the Federal Government. D. Labor Standards 1. General: PLCDC agrees that in instances in which there is construction work over $2,000 financed in whole or in part with HOME funds under this Agreement, PLCDC will adhere to the Davis-Bacon Act (40 USC 276), as amended, which requires all laborers and mechanics working on the project to be paid not less than prevailing wage-rates as determined by the Secretary of Labor. By reason of the foregoing requirement, the Contract Work Hours and Safety Standards Act (40 USC 327 et seq.) also applies. These requirements apply to the rehabilitation of residential property only if such property contains eight or more units. (24 CFR 570.603) 2. Labor Matters: No person employed in the work covered by this contract shall be discharged or in any way discriminated against because he or she has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR 570.603) E. Environmental Standards PLCDC agrees that in accordance with the National Environmental Policy Act of 1969 and 24 CFR part 58, it will cooperate with AugustalAHCD in complying with the Act and regulations, and that no activities will be undertaken until notified by Augusta! AHCD that the activity is in compliance with the Act and regulations. Prior to beginning any project development activity, an environmental review must be conducted pursuant to 24 CFR 570.604. F. Flood Insurance Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), PLCDC agrees that HOME funds shall not be expended for acquisition or construction in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards (representing the 100-year floodplain). Exceptions will be made if the community is participating in the National Flood Insurance Program or less than a year has passed since 9 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 PLCDC 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 QFR 570.606). L H. Non-Discrimination in Emplovrnent PLCDC agrees to comply with Executive Order 11246 and 12086 and the regulations issued pursuant thereto (41 CFR 60) which provides that no person shall be discriminated against on the basis of race, color, religion, sex or national origin. The PLCDC will in all solicitation~ or advertisements for employees placed by or on behalf of the PLCDC, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. I. Emplovrnent and Business Opportunities PLCDC 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 570.607). J. Lead-Based Paint In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the CDBG Regulations, PLCDC agrees to comply with the Lead Based Paint Poisoning Prevention Act pursuant to prohibition against the use of lead-based paint in residential structures and to comply with 24 CFR 570.608 and 24 CFR 35 with regard to notification of the hazards of lead-based paint poisoning and the elimination of lead-based paint hazards. K. Debarred. Suspended or Ineligible Contractor PLCDC agrees to comply with 24 CFR 570.609 with regards to the direct or indirect use of any contractor during any period of debarment, suspension or placement in ineligibility status. No contract will be executed until such time that the debarred, suspended or ineligible contractor has been approved and reinstated by AHCD. L. Drug Free Workplace In accordance with 24 CFR part 24, subpart F, PLCDC agrees to administer a policy to provide a drug-free workplace that is free from illegal use, possession or distribution of drugs or alcohol by its beneficiaries as required by the Drug Free Workplace Act of 1988. M. Publicity Any publicity generated by the PLCDC for the project funded pursuant to this Agreement, during the term of this 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 10 explicitly stated in any and all pieces of publicity; inchiding but not limited to flyers, press releases, posters, brochures, public service announcements, interviews, and newspaper articles. < N. Timelv Expenditure of Funds In accordance with 24 CFR 85.43, if the PLCDC fails to expend its grant funds in a timely manner, such failure shall constitute a material failure to comply with this Agreement and invoke the suspension and termination provisions of ARTICLE X. For purposes of this Agreement, timely expenditure of funds means the PLCDC shall obligate and expend its funds as designated under ARTICLE II (B). O. Compliance with Laws and Permits The PLCDC shall comply with all applicable laws, ordillances and codes of the federal, state, and local governments and shall commit no trespass o,n any public or private property in performing any of the work embraced by this contract. PLCDC agrees to obtain all necessary permits for intended improvements or activities. P. Assignment of Contract The PLCDC shall not assign any interest in this contract or transfer any interest in the same without the prior written approval of Augusta. Q. Equal Employment Opportunity The PLCDC agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 CFR part 146 and the prohibitions against otherwise qualified individuals with handicaps under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. For purposes of the emergency shelter grants program, the term dwelling units in 24 CFR part 8 shall include sleeping accommodations. R. Affirmative Action The PLCDC will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. The PLCDC will take affirmative action to insure that applicants are employed, and that employees are treated during employment, without regard to their race, color, -religion, sex, national origin, or PLCDC 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. PLCDC agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by Augusta setting forth the provisions of this nondiscrimination clause. The PLCDC agrees to make efforts to encourage the use of minority and women-owned business enterprises in connection with HOME supported activities. S. Relil:rious Influence The PLCDC will not discriminate against any employee or applicant for employment on the basis of religion and will not give preference to persons on the basis of religion. PLCDC will 11 not discriminate again~ any person applying for shelter on the basis of religion. PLCDC will provide no religious instruction or counseling, conduct no religious worship or services, engage in no religious proselytizing and exert no religious influence in the provision of shelter and other eligible activ,ities funded by this grant. T. Indirect Costs Indirect costs will only be paid if PLCDC has a indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. , , U. Travel If applicable, PLCDC shall obtain prior written approval from the Grantor 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 Reauirements - 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 PLCDC materially fails to comply with any terms of this agreement, including the timely completion of activities as described in the timetable and/or contained in ARTICLE I, Scope of Services, Augusta may withhold cash payments until PLCDC cures any breach of the agreement. If PLCDC fails to cure the breach, Augusta may suspend or terminate the current award of HOME funds for the PLCDC's program. B. Notwithstanding the above, the PLCDC shall not be relieved of its liability to Augusta for damages sustained as a result of any breach of this agreement. In addition, to any other remedies it may have at law or equity, Augusta may withhold any payments to the PLCDC for the purposes of set off until such time as the exact amount of damages is determined. C. In the best interest of the program and to better serve the people in the target areas and fulfill the purposes of the Act, either party may terminate this Agreement upon giving thirty (30) days notice in writing of its intent to terminate, stating its reasons for doing so. In the event Augusta terminates the Agreement, Augusta shall pay PLCDC for documented, committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, PLCDC shall not be relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, Vill, IX, XI, and XII of this agreement with respect to HOME funds previously disbursed or income derived therefrom. 12 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 Greene Street, Suite 801 Augusta, Georgia 30911 With copies to: Augusta Housing and Community Development Department 925 Laney Walker Blvd., 20d Floor Augusta, Georgia 30901 PLCDC will receive all notices at the address indicated below: Promise Land Community Development Corporation 2409 Amsterdam Drive Augusta, Georgia 30906 ARTICLE XU. INDEMNIFICATION PLCDC will at all times hereafter indemnify and hold harmless Augusta, its officers, agents and employees, against any and all claims, losses, liabilities, or expenditures of any kind, including court costs, attorney fees and expenses, accruing or resulting from any or all suits or damages of any kind resulting from injuries or damages sustained by any person or persons, corporation or property, by virtue of the performance of this Agreement. By execution of this Agreement, PLCDC specifically consents to jurisdiction and venue in the Superior Court of Richmond County, Georgia and waives any right to contest jurisdiction or venue in said Court. ARTICLE xm. INSURANCE AND BONDING PLCDC shall acquire adequate insurance coverage to protect all contract assets from loss or damage resulting from theft, fraud or physical damage. All policies and amounts of coverage shall be subject to approval by Augusta. Additionally, PLCDC shall procure and provide for approval by Augusta a blanket fidelity bond in the amount of at least $100,000.00 covering all personnel of the PLCDC handling or charged with the responsibility for handling funds and property pursuant to this contract. PLCDC shall procure and provide, for approval by the Augusta, comprehensive general liability insurance in the amount of at least $1,000,000.00 insuring the Grantee and adding as named insured the City of Augusta, Georgia, the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and successors. Additionally, the PLCDC shall procure officers and directors liability insurance under policies to be approved by the Augusta. All of the above policies shall provide that no act or omission of the grantee, its agents, servants or employees shall invalidate any insurance coverage for other named insured. No insurance policy providing insurance coverage required to be provided by the PLCDC hereunder shall be cancelable without at least fifteen days advance written notice to the Grantee. All 13 insurance policies required hereunder or copies thereof shall be promptly submitted for approval by the City of 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 PLCDC beyond the term of this Agreement. ARTICLE XV. LEGAL PROVISIONS DEEMED INCLUDED Each and every. provision of any law or regulations and clause required by law or regulation to be inserted in this Agreement shall be deemed to be inserted herein and this Agreement shall be read and enforced as though it were included herein and if, through mistake or otherwise, any such provision is not inserted or is not correctly inserted, then upon application of either party this Agreement shall forthwith be amended to make such insertion. 14 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) - .. ........ .... Y4wd1J -LenaB cr; ~ : ' "Clerk-of Conimisslon ~y: ATTEST: SEAL ~~jMM As Its orporate Secretary '~ /)J,r/J~ (Plain Witness) 15 APPENDIx A Statutes: ( 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") OMB Circular A-110 - Uniform Administrative Requirements for Grants and Agreement with Institutions of Higher Education, Hospitals, and OtheiNon-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 CFR35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being sold, Final Rule Augusta-Richmond County Procurement Policy Forms: Income Verification and Income Limits Table Inventory Time Sheet Reimbursement Request Monthly Statistical Reports Quarterly Program Progress Quarterly Financial Report Annual Program Report Travel Log Conflict of Interest Affidavit 16 APPENDIX B REPORTING REQillREMENTS The PLCDC shall submit to the Grantee the following reports for the term of this agreement. 1. Monthly Statistical Reports Due by the lOth of each month for the period covering the previous month. 2. Quarterly Progress & Financial Reports Due Quarterly from date of agreement. 3. Annual Progress Report 4. Audit/Financial Report (No later than April 15, 2007) 5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not restricted to, income data and verification for each person assisted; application for services; record of services provided; amount of services provided; documentation of costs for which assistance is provided; transportation log; documentation of medical need regarding prescriptions; and any other document that will provide proof of needed service(s) and subsequent provision of such service(s) as allowed under this contract. 17 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 & 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 AHCD review upon request 3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for inclusion on the AHCD 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 AHCD for review and approval prior to bidding. AHCD Construction and Rehabilitation Inspectors will 18 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 & Community Development Department Contractors Manual and Performance Standards. A copy of this manual is provided to every contractor when included on the AHCD Approved Contractors List. A copy is enclosed for inclusion. 6. Inspections. All projects will be inspected and approved by an AHCD Construction and Rehabilitation Inspector prior to release of the funds for that project. 19 EXHIBIT "A" PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES 1. Augusta through the Housing and Community Development Department agrees to provide up to $38,393.00 in Year 2006 HOME Investment Partnerships Funds to the Promise Land Community Development Corporation. These funds will support the construction of one single family residential unit to be sold to an eligible low to moderate homebuyer in connection with the Gordon Woods Phase II Project. 2. AHCD 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 PLCDC in accordance with a payment schedule outlined in the construction contract between PLCDC and the Contractor. 3. With AHCD approval, PLCDC may use HOME funds under this agreement for the following purposes: a. To support development costs as outlined in Item 6 below. b. As the source of funds from which a project developer fee will be paid as outlined in Item 8. 6. Construction Costs and Requirements a. The amount that can be used to pay for development costs will be identified on a project- by-project basis in EXHIBIT B. In no case will this amount exceed the maximum per unit amount as defined at 24 CFR 92.250. b. PLCDC will 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. PLCDC must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each house, PLCDC must also secure a Certificate of Occupancy from the contractor that has been issued by the Augusta-Richmond County License and Inspection Department. d. PLCDC must collect progress and final lien releases from the contractor, subcontractors and material suppliers prior to making a payment to a contractor. e. AHCD may continually inspect each house for contract compliance and to determine the percent of completion prior to processing a draw request and releasing payment. AHCD may elect to make up to five (5) payments per house. AHCD may choose not to release payments if the work being performed is not of acceptable quality to AHCD 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 AHCD, the sales price of each house shall not exceed the appraised value of the house. 20 b. The purchasers of houses con~cted with HOME funds must meet HOME and City of Augusta program requirement~. ( c. Buyers will be required to botTow no less than 60% of the sale price of the house from a private lending institution unless otherwise agreed to by AHCD. c d. When necessary, PLCDC may leave HOME development funds in a house as a second mortgage permanent loan to the purchaser. PLCDC will, however, be required to assign r these loans to AHCD once they have been executed. 8. Proiect Developer Fees a. PLCDC 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. This fee will collected at the time of closing. b. The total development cost must be met if there is to be a reduction in the sales price of the home. The developer understands the reduction originates from developers fee and will not receive agreed development percentage. Note: The above developer fee structure relates only to single family affordable housing development projects. Any other developmentfee such as thatfor a multi-family rental project (or other commercial development) must be negotiated separately and approved by the Director of AHCD or his/her designated representative prior to payment to grantee. 21 EXInBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: TYPE PEVELOPMENT: LOT SIZE: NO. OF BEDROOMS: NO. OF BATHROOMS: S.F. HEATED SPACE: NEIGHBORHOOD New Construction Rehabilitation []4 []3 [ ]2 [] 1 []4 []3 [ ]2 [] 1 LAND, CONSTRUCTION & SOFT COST: ESTIMATES Per S.F. Cost Land and Construction Costs Property Acquisition Site Preparation General Construction - Contract Amount Contingency Sewer Tap Water Meter Landscaping Fencing Grading Aluminum Mini-Blinds Alarm System Termite Treatment Other - Specify Total Estimated Land & Construction Costs Per S.F. Cost Soft Costs Appraisal Title Search Survey Plans, Specs, A&E Real Estate Commission Advance on Non-Profit Developer Fee Temporary Utilities Yard Maintenance during Sale Period Property Taxes Builders Risk Insurance Construction Interest on Bank Loans Closing Cost Other- Specify Total Estimated Soft Costs Per S.F. Cost DEVELOPMENT COST SUMMARY PROPOSED DEVELOPMENT COSTS PROPOSED SALE PRICE NON-PROFIT FUNDS HOME FUNDS REQUESTED PROJECTED HOME SUBSIDY SF SF SF SF SF 22