HomeMy WebLinkAboutPROMISE LAND CDBG $38,393.00 2006
CONTRACT
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between
AUGUSTA, GEORGIA
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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
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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.
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WHEREAS, PLCDC agreed to provide services funded through this contract free from political
activities, religious influences or requirements; and (
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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.
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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
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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.
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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.
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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.
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ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to
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.
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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
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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.
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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).
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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
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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
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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
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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.
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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).
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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.
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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.
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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
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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.
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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)
-
.. ........ .... Y4wd1J
-LenaB cr; ~
: ' "Clerk-of Conimisslon
~y:
ATTEST:
SEAL
~~jMM
As Its orporate Secretary
'~ /)J,r/J~
(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 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
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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.
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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 & 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
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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.
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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.
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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.
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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
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