HomeMy WebLinkAboutPROMISE LAND COMMUNITY DEVELOPMENT CORPORATION $150,000.00
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CONTRACT
between
AUGUSTA, GEORGIA
And
PROMISE LAND COMMUNITY DEVELOPMENT CORPORATION
in the amount of
$150,000.00
One Hundred Fifty Thousand Dollars
for Fiscal Year 2007 - COMPETITIVE
Providing funding for
HOME INVESTMENT PARTNERSHIPS PROGRAM
"South Augusta Acquisition and Rehabilitation Project"
THIS AGREEMENT ("Contract"), is made and entered into as of the I s:r' day of
~ 2007 ("the effective date") by and between Augusta, Georgia, acting through the
tI~us~ng. ~d Community Development Department (hereinafter referred to as "HCD") - with
principal offices at 925 Laney Walker Blvd., 2nd Floor, Augusta, Georgia 30901, as party of the
first part, hereinafter called "Augusta", and 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 defmed by HUD; and
WHEREAS, the grantee is a designated Community Housing and Development Organization
(CHDO)- hereinafter referred to as PLCDC - and will be involved in 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 2007 Annual Action Plan; and
WHEREAS, Augusta must reserve not less than fifteen percent (15%) of its allocated HOME
entitlement funds for investment in affordable housing to be develOped, sponsored or owned by a
designated Community Housing Development Corporation (CHDO); and
WHEREAS, Augusta wishes to enter into a contractual agreement with Promise Land Community
Development Corporation for the administration of HOME} eligible affordable housing development
activities; and
WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR
92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24
Code of Federal Regulations, Part 92 of the Housing and Urban Development regulations.
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WHEREAS, PLCDC has agreed to provide services funded through this contract free from political
activities, religious influences or requirements; and
WHEREAS, PLCDC has requested and Augusta has approved a total of$150,000.00 in grant funds to
perform HOME eligible activities as described in Article I, ~elow:
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 South Augusta Rehabilitation Project. This project involves the purchase of five
(5) single family units for the purpose of rehabilitation of scattered site and in fill affordable housing
single family units throughout the target community. Under this agreement:
... Perform acquisition of sites five (5) single family homes
... Perform rehabilitation of five (5) single family homes to be sold to eligible low and moderate
income homebuyers
... Perform all required and requested marketing and advertising activities; in accordance with
"HOME" program "Fair Housing" regulations
... All projects are to posses the following required components:
· Evidence of Site Control
· Evidence of additional financing resources "Leveraging"
· Evidence that the programmatic "MATCH" requirement has been met
· Evidence that a qualified home buyer has been identified, received and completed a
comprehensive home buying education course(s) and pre-purchase housing
counseling program; prior to the completion of the assigned home.
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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. Acquisition Homes for Rehabilitation
An amount not to exceed $ 150,00.00 shall be expended by PLDC to support the acquisition
of five homes to be rehabilitated or reconstructed and made available for purchase by HOME
program eligible low and moderate-income homebuyers.
Address will be submitted prior to purchase. Environmental clearance and feasibility must be
completed prior to purchase of homes.
Upon approval from Augusta PLCDC may purchase property and be reimbursed.
C. Program 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.
D. Proiect Elig:ibility Determination
It has been determined that the use of HOME funds by the PLCDC will be in compliance with
24 CFR Part 92. Notwithstanding any other provisions of this contract, PLCDC shall provide
activities and services as described in the description of the project, including use of funds, its
goals and objectives, tasks to be performed and a detailed schedule for completing the tasks
for this project as provided in Exhibit A of this contract.
ARTICLE II. BUDGET AND METHOD OF PAYMENT
PLCDC will be compensated in accordance with this Article II, Budget and Method of Payment, that
specifically identifies the use of HOME and other project funding as represented in Article II. Co2 of
this Agreement. PLCDC, its directors, officers and staff will carry out and oversee the implementation
of projects to be funded with HOME funds. PLCDC agrees to perform the required services under the
general coordination of the Augusta Housing and Community Development Department. In addition
and upon approval by Augusta, 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 $ 150,000.00 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.
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2. The method of payment shall be in accordance with Financial Procedures as described in
Article I or Exhibit A, attached hereto and made part thereof.
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3.
HCD will monitor the progress of the project and PLCDCs performance on a monthly basis
with regards to the production of housing units and the overall effectiveness of project.
4. Upon the termination of this agreement, any unused or residual funds remaining shall revert to
Augusta and shall be due and payable on such date of the termination and shall be paid no
later than thirty (30) days thereafter.
5. Funds may not be transferred from line to line item in the project budget without the prior
written approval of Augusta.
6. The use of funds described in this agreement is subject to the written approval of the U. S.
Department of Housing and Urban Development.
7. This Agreement is based upon the availability of HOME Program Funds.
8. PLCDC will make reasonable efforts to secure additional funding sources using the
$ 150,000.00 in HOME funds awarded under this agreement as leverage to support the "South
Augusta Acquisition & Rehabilitation Project".
B. Timetable for Completion ofProiect Activities
1. PLCDC shall obligate the designated HOME funds within thirteen-13 months of the date of
execution of this Agreement. Based on the budget outlined in C.2 below, PLCDC will
provide a detailed outline of critical project milestones and projected expenditures during the
course of the development project. These documents will become an official part of the
contractual agreement and provide the basis for overall project performance measurements.
C. Proiect Budget: Limitations
1. PLCDC shall be paid a total consideration of $150,000.00 for full performance of the services
specified under this Agreement. Any cost above this amount shall be the sole responsibility of
the PLCDC 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. PLCDC shall adhere to the following budget in the performance of this contract.
A.
Proiect Activity Cost
$ 150,000.00
Purchase 5 Homes @ $30,000 each
(cost per unit is not to exceed $30,000)
TOTAL HOME PROJECT COST: $ 150,000.00
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ARTICLE ill - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)]
1. The Resale/Recapture Provisions in this Article III shall ensure compliance with the HOME
Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4).
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A. Resale Provisions r24 CFR 92.254(5)(i)l
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)l
If the eligible homebuyer (who received down payment assistance [HOME Program] funds
from Augusta) sells their property, then Antioch shall recapture the HOME funds and return
the funds to Augusta, which will ensure that the recaptured HOME Program funds are
reinvested in other affordable housing in Augusta for low and moderate-income persons.
This shall be accomplished through deed restrictions, property liens, and contractual
obligations, as described in Article I.B of this Agreement.
ARTICLE IV. TERM OF CONTRACT
The term of this agreement shall commence on the date when this agreement is executed by Augusta
and the PLCDC...(wlti€heverdate~' is later) .aad..sball''e1'i.d:'fit'"the--eompletioIi{)Lall program activities,
within the time specified in Article I.D, or in accordance with ARTICLE IX: Suspension and
Termination.
ARTICLE V. DOCUMENTATION AND PAYMENT
A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to
the PLCDC or any subcontractor hereunder. All payments to the 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.
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-II0 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations" as well as the procurement policy of Augusta.
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G. Requests by the PLCDC for payment shall be accompanied by proper documentation and shall
be submitted to HCD, transmitted by a cover memo, for approval no later than thirty (30)
calendar days after the last date covered by the request. For purposes of this section, proper
documentation includes: "Reimbursement Request" form supplied by HCD, copies of invoices,
receipts, other evidence of indebtedness, budget itemization and description of specific activities
undertaken. Where HOME funds are to be used to reimburse salary expenditures, proper
documentation to include: "Time Sheet" forms supplied by Augusta, photoc~pies of paychecks,
paycheck stubs and/or payroll documentation. Invoices shall not be honored if received by
Augusta later than sixty (60) calendar days after expiration date of this Agree~ent.
H. PLCDC shall maintain an adequate financial system and internal fiscal controls.
I. Unexpended Funds: Unexpended funds shall be retained by Augusta. Up~m written request,
Augusta may consider the reallocation of unexpended funds to eligible projects proposed by the
PLCDC. .
ARTICLE VI.
REP A YMENTIPROGRAM INCOME
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.
'I....;;;.. . .~'.<B. <,;.1 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 report shall indicate how
the funds were acquired and how the funds were utilized.
D. Augusta will be responsible for monitoring the reuse of the proceeds.
E. Any real property under 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.
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ARTICLE
VII. 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: ('
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1. Maximum acquisition prices [24 CFR 92.205A.2]
2. Maximum per unit HOME Progra:ntsubsidy amount [Section 221 (d)(3)]
3. Combined affordability of assisted tinits
4. Income eligibility of home buyers i
5. Inspection of the homebuyer units tb comply with HUD required Property Standards
6. Acquisition, Displacement and Relocation Requirements [24 CFR 92.353]
7. Environmental Review !
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8. 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
Financial" and "Annual Report". Further explanation and report due dates are found in
APPENDIX B below.
F. PLCDC shall maintain books and records in accordance with generally accepted accounting
principles. Documents shall be maintained in accordance with practices that sufficiently and
properly reflect all expenditure of funds provided by Augusta under this Agreement.
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-II 0 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.
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I. In connection with the expenditure of federal funds, PLCDC shall provide to Augusta an
organization -wide audited financial statement consisting of a balance sheet, income statement
and a,'statement of changes in its financial position. All documents shall be prepared by a
certified public accountant. Such financial disclosure information shall be filed with Augusta
within one hundred eighty (180) calendar days after the close of the PLCDC's fiscal year.
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
propefly 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
reque~t be submitted to it. Further, PLCDC agrees to comply with the provisions of the Open
Meetings Law and the following compliance measures will be taken: PLCDC will provide
notice to the Augusta Chronicle and the Augusta Focus or the Metro Courier of its regular
board meeting schedule and of any special called meetings except emergency meetings; it will
post notices of its meetings in a public place at the meeting sites and it will keep a written
agenda, minutes, attendance, and voting record for each meeting and make the same available
for inspections by the press, the public and the Grantee, subject to the provisions of the Open
Meetings Law. he press, public and the Grantee shall not be denied admittance to the
PLCDC's board meetings, except for such portions of the meeting as may be closed pursuant
to the Open Meetings Law. PLCDC shall provide to the Grantee a tentative annual schedule
of the Board of Directors' meetings. Publications and minutes of each meeting shall be
submitted to Grantee within 30 days after each meeting.
ARTICLE
VIII ADMINISTRATIVE REQUIREMENTS
A. Conflict of Interest
PLCDC 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 in parcel to this Agreement)
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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 PLCDC. In such instances, PLCDC shall consult
with HCD/ Augusta on any changes that will result in substantive changes to this Agreement.
All such changes shall be made via written amendments to this Agreement and shall be
approved by the governing bodies of both Augusta and 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 PLCDCs publications and/or advertisements. (24 CFR
570.601).
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 fmanced 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)
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2. Labor Matters: No person employed in the work covered by this contract shall be
discharged or in any way discriminated against because he or she has filed any
complaint or instituted or caused to be instituted any proceeding or has testified or is
about to testify in any proceeding under or relating to the labor standards applicable
hereunder to his or her employer. (24 CFR 570.603)
E. Environmental Standards
PLCDC agrees that in accordance with the National Environmental Policy Act of 1969 and 24
CFR part 58, it will cooperate with Augusta/HCD in complying with the Act and regulations,
and that no activities will be undertaken until notified by Augusta/HCD that the activity is in
compliance with the Act and regulations. Prior to beginning any project development activity,
an environmental review must be conducted by the Augusta-Richmond County Planning
Department pursuant to (24 CFR 570.604).
F. Flood Insurance
Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), 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
FEMA notification and flood insurance has been obtained in accordance with section 102(a)
ofthe 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 CFR
570.606).
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. PLCDC will in all solicitations or
advertisements for employees placed by or on behalf of 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 570.697).
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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 I with regard to notification of
the hazards of lead-based paint poisoning and the elimination oHead-based paint hazards.
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K.
Debarred~ Suspended or Ineligible Contractor
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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 HCD. '
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 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 explicitly stated in any
and all pieces of publicity; including but not limited to flyers, press releases, posters,
brochures, public service announcements, interviews, and newspaper articles.
N. Timelv Expenditure of Funds
In accordance with 24 CFR 85.43, if 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 PLCDC shall obligate and expend its funds as
designated under ARTICLE II. (B).
o. Compliance with Laws and Permits
PLCDC shall comply with all applicable laws, ordinances and codes of the federal, state, and
local governments and shall commit no trespass on any public or private property in
performing any of the work embraced by this contract. PLCDCagrees to obtain all necessary
permits for intended improvements or activities.
P. Assignment of Contract
PLCDC shall not assign any interest in this contract or transfer any interest in the same
without the prior written approval of Augusta.
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Q. Equal Employment OpportunIty
PLCDC agrees to comply W~th 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 R~habilitation 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 pa~ 8 shall include sleeping accommodations.
R. Affirmative Action
PLCDC will not discriminate against any employee or applicant for employment because of
race, color, religion, sex, national origin, or familial status. PLCDC will take affirmative
action to insure that appli~ants 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 tran~fer; 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. PLCDC agrees to make efforts to encourage the use of minority and
women-owned business enterprises in connection with HOME supported activities.
S. Religious Influence
PLCDC will not discriminate against any employee or applicant for employment on the basis
of religion and will not give preference of persons on the basis of religion. PLCDC will not
discriminate against any person applying for shelter on the basis of religion. PLCDC will
provide no religious instruction or counseling, conduct no religious worship or services,
engage in no religious proselytizing and exert no religious influence in the provision of shelter
and other eligible activities funded by this grant.
T. Indirect Costs
Indirect costs will only be paid if PLCDC has indirect cost allocation plan approved by the
Department of Housing and Urban Development prior to the execution of this Contract.
U. Travel
If applicable, PLCDC shall obtain prior written approval from the Grantee for any travel
outside the State of Georgia with funds provided under this contract. All Federal Travel
Regulations are applicable (41 CFR Part 301).
v. Construction Requirements - SEE APPENDIX C
All housing units [rehabilitated, reconstructed or newly constructed] and assisted with HOME
Program funds must, before occupancy, meet the Property Standards specified at 25 CFR
92.251 [the HOME Program Regulations). The Property Standards at 24 CFR 92.251 require
that the homes receiving HOME Program funds must meet all local codes' for new
construction. In the absence of local codes, properties must meet the HUD Section 8 Housing
Quality Standards [HQS]. All housing assisted under this Agreement is "new construction"
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by HOME Program definition and therefore must meet the local building codes for new
housing in Augusta-Richmond County, as applicable.
~TICLE
A.,;
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B.!
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D:
x.
SUSPENSION AND TERMINATION
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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.
Notwithstanding the above, 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 PLCDC for the
purposes of set off until such time as the exact amount of damages is determined.
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.
Notwithstanding any termination or suspension of this Agreement, PLCDC shall not be
relieved of any duties or obligations imposed on it under ARTICLES V, VI, VII, VIII, IX, XI,
and XII of this agreement with respect to HOME funds previously disbursed or income
derived therefrom.
ARTICLE XI. NOTICES
Whenever either party desires to give notice unto the other, such notice must be in writing, sent by
certified United States mail, return receipt requested, addressed to the party for whom it is intended, at
the place last specified, and the place for giving of notice shall remain such until it shall have been
changed by written notice.
Augusta will receive all notice at the address indicated below:
Office of the Administrator
Municipal Building
530 Green Street, Suite 801
Augusta, Georgia 30911
With copies to:
Augusta Housing and Community Development Department
925 Laney Walker Blvd., 2nd Floor
Augusta, Georgia 30901
Promise Land Community Development Corporation will receive all notices at the address indicated
below:
Promise Land Community Development Corporation
2409 Amsterdam Drive
Augusta, Georgia 30906
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ARTICLE XII.
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 XIII.
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 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 Augusta,
the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and successors.
Additionally, 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 PLCDC
hereunder shall be cancelable without at least fifteen days advance written notice to the Grantee. All
insurance policies required hereunder or copies thereof shall be promptly submitted for approval by
the Augusta.
ARTICLE XIV.
PRIOR AND FUTURE AGREEMENTS
This document incorporates and includes all prior negotiations, correspondence, conversations,
agreements or understandings applicable to the matters contained herein and the parties agree that
there are no commitments, agreements, or understandings concerning the subject matter of this
agreement that are not contained in this document. 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
i
This agreement is executed in two (2) counterparts - each of which shall be deemed an origihal and
together shall constitute one and the same Agreement with one counterpart being delivered to each
party hereto. c:
,
IN WITNESS WHEREOF, the parties have set their hands and seals as of the date firsHwrltten
above: (
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AUGUST A. GEORGIA I
(A~sta) ~ 4--
By: ( j) ;G1. / i
. As Its Mayor 111'
ATTEST:
-~
. Lena B ner
Clerk of Commission
ATTEST:
(!?-~{::J - JUjA~
As Its Corporate Secretary
0zrd~ /f) I N JLh-
(Plain Witness)
PROMISE LAND COMMUNITY DEVELOPMENT CORPORATION
R . (Grantee)
B'\ 'JU
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APPENDIX A
Statutes:
24 CFR Part 92, HOME Investment Partnerships Program (':HOME")
(
OMB Circular A-II0 - Uniform Administrative Requirments for Grants and Agreement with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
!
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OMB Circular A- 122 - Cost Principles for Non-Profit Orgartizations
I
OMB Circular A-B3 - Audits of Institutions of Higher Educ~tion & other Non-Profit Institutions
40 USC 276 Davis-Bacon Act
40 use 327 Contract Work Hours and Safety Standard Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint
Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being
sold, Final Rule
Augusta-Richmond County Procurement Policy
Forms:
Income Verification and Income Limits Table
Inventory
Time Sheet
Reimbursement Request
Monthly Statistical Reports
Quarterly Program Progress
Quarterly Financial Report
Annual Program Report
Travel Log
Conflict of Interest Affidavit
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APPENDIX B
REPORTING REQUIREMENTS
PLCDC shall submit to the Grantee the following reports for the term of this agreement.
1. Monthly Statistical Reports
Due each ~onth by the 10th for the previous month.
r
2. Quarterly~Progress & Financial Reports
Due: April 15, 2007, July 15,20073, September 15,2007 and December 15,2007.
3. Annual P*ogress Report (January 16,2008)
4. Audit/Financial Report
i
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 HCD review upon request
3. Eligible Contractors: Any contractor desiring to bid on HOME or CDBG projects may apply for
inclusion on the HCD Approved Contractor List. Applications will be processed and either
approved or disapproved within 10 working days. Under no circumstances will barred,
disapproved, or otherwise ineligible contractors be allowed to bid on CDBG funded projects.
4. Project Review. All plans, specifications, work write-ups, projected cost estimates, punch lists or
other means of outlining work on a particular project will be submitted in writing to HCD for
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review and approval prior to bidding. HCD Construction and Rehabilitation Inspectors will
review these items for compliance with new construction and/or rehabilitation standards and
materials use.
5. Rehabilitation Standards. All rehabilitation work will comply with the "Uniform Physical
Condition Standards for 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 HCD Approved Contractors List. A copy is enclosed for inclusion.
6. Inspections. All projects will be inspected and approved by an HCD Construction and
Rehabilitation Inspector prior to release of the funds for that project.
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EXHIBIT "A"
,
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PROJECT DEVELOPMENT AND MANAGEMENT PROCEDu,mS
(
1. Augusta through the Housing and Community Development Department agrees to provide up
to $150,000.00 in Year 2007 HOME Investment Partnerships Funds to the PLCDC. These
funds will support acquisition and rehabilitation of five (5) affordable single family residential
units in connection with the continuation of the South Augusta Acquisition & Rehabilitation
~~ [
2. In connection with the acquisition of HOME funded development sites, PI1CDC shall submit
to HCD an overall land development plan. This plan should identify the proposed properties
to be acquired in connection with the phased implementation of the South Augusta
Acquisition and Rehabilitation Project. Prior to the purchase of any HOME funded
development sites, PLCDC shall notify HCD of the proposed location and estimated
acquisition prices. This information shall be supported with a valid appraisal or reasonable
basis for establishing the purchase price for the property. The acquisition of HOME
development sites, the proposed houses, construction timetable, sales amount and other project
development information will be specified in EXlllBIT B. Each new project added under
EXlllBIT B must be submitted to HCD for review and approval by the Executive Director of
the Housing and Community Development Department or his or her designated project
representative.
3. HCD 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.
4. PLCDC will provide the lots on which all new affordable homes are to be built under this
agreement and in connection with the South Augusta Acquisition & Rehabilitation Project.
5. With HCD approval, PLCDC may use HOME funds under this agreement for the following
purposes:
a. To support development costs as outlined in Item 6 below.
6. Construction Costs and Requirements
a. The amount that can be used to pay for development costs will be identified on a project-
by-project basis in EXlllBIT 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 Department of Licenses and
Inspection.
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d. PLCDC must collect progress and ft4al lien releases from the contractor, subcontractors
and material suppliers prior to making~a payment to a contractor.
I
e. HCD may continually inspect each ~ouse for contract compliance and to determine the
percent of completion prior to processing a draw request and releasing payment. HCD
may elect to make up to five (5) paYments per house. HCD may choose not to release
payments if the work being performed is not of acceptable quality to HCD and if the house
is not being built or rehabilitated in accordance with plans and specifications, or if project
is not on schedule. [
7. Permanent Financing and Sales Prices
a. The sales price of each home sold in: accordance with this agreement must be based on a
formal appraisal. Unless otherwise agreed to by HCD, the sales price of each house shall
not exceed the appraised value of the house.
b. The purchasers of houses constructed with HOME funds must meet HOME and City of
Augusta program requirements.
c. Buyers will be required to borrow no less than 60% of the sale price of the house from a
private lending institution unless otherwise agreed to by HCD.
d. When necessary, PLCDC may leave HOME development funds in a house as a second
mortgage permanent loan to the purchaser. PLCDC will, however, be required to assign
these loans to HCD once they have been executed.
Proiect Developer Fees
a. PLCDC can draw down up to 15% of a development cost and fees of the HOME funds
awarded under this agreement to pay itself a project developer's fee. This fee will be
collected at the time of closing.
b. The total development cost must be met if there is to be a reduction in sell price of the home,
developer shall understand the reduction originates from developers fee. The developer will
not receive agreed development percentage.
Note: The above developer fee structure relates only to single family affordable housing development
projects. Any other development fee such as that for a multi-family rental project (or other
commercial development) must be negotiated separately and approved by the Executive Director of
HCD or his/her designated representative prior to payment to grantee.
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EXHIBIT B:,r ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS
,
,
PROJECT ~DRESS:
TYPE DEVELOPMENT:
LOT SIZE: '.
NO. OF BEDROOMS:
NO. OF BATHROOMS:
S.F. HEATED SPACE:
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New Construction
NEIGHBORHOOD
Rehabilitation
[ ]4
[ ]4
[]3 [ ]2 [] 1
[]3 [ ]2 [] 1
LAND, CONSTRUCTION & SOFT COST: ESTIMATES Per S.F. Cost
Land and Construction Costs
Property Acquisition
Site Preparation
General Construction - Contract Amount
Contingency
Sewer Tap
Water Meter
Landscaping
Fencing
Grading
Aluminum Mini-Blinds
Alarm System
Termite Treatment
Other - Specify
Total Estimated Land & Construction Costs
Per S.F. Cost
Soft Costs
Appraisal
Title Search
Survey
Plans, Specs, A&E
Real Estate Commission
Advance on Non-Profit Developer Fee
Temporary Utilities
Yard Maintenance during Sale Period
Property Taxes
Builders Risk Insurance
Construction Interest on Bank Loans
Closing Cost
Other- Specify
Total Estimated Soft Costs
Per S.F. Cost
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DEVELOPMENT COST SUMMARY
PROPOSED DEVELOPMENT COSTS
PROPOSED SALE PRICE
NON-PROFIT FUNDS
HOME FUNDS REQUESTED
PROJECTED HOME SUBSIDY
SF
SF
SF
SF
SF
EXHIBIT "C"
PROJECT SCHEDULE OF COMPLETION
PLCDC MUST PROVIDE A COMPLETED SCHEDULE OF COMPLETION AS EXHIBIT C - WITH
APPROPRIATE PROJECT MILESTONES WITHIN 10 TO 15 DAYS AFTER SIGNING THIS
AGREEMENT. THIS SCHEDULE MUST BE PROVIDED IN SUFFICIENT DETAIL TO PERMIT
HCD TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE
OF THIS AGREEMENT. A SAMPLE SCHEDULE IS PROVIDED BELOW.
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