HomeMy WebLinkAboutSOUTH AUGUSTA REDEVELOPMENT $70,412.00 HOME INVESTMENT PART PROGRAM
CONTRACT
between
AUGUST A, GEORGIA
And
SOUTH AUGUSTA REDEVELOPMENT, INC.
in the amount of
$70,412.00
Seventy Thousand Four Hundred Twelve Dollars
for Fiscal Year 2008 - COMPETITIVE
Providing funding for
HOME INVESTMENT PARTNERSHIPS PROGRAM
"New Dover Community Development Project"
THIS AGREEMENT ("Contract"), is made and entered into as ofthe .J~ day of '1:://;ts:r ,
200(1 ("the effective date") by and between Augusta, Georgia, acting through the Hou ng and
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 South Augusta Redevelopment, Inc., a non-profit corpor~tion, organized
pursuant to the Laws of the State of Georgia, hereinafter called" SAR" 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, Community Based Development Organization (CBDO) - hereinafter referred to as
SAR- and will be involved in HOME eligible activities; and
WHEREAS, Augusta wishes to increase homeownership opportunities and preserve and increase the
supply of affordable housing for HOME Program eligible low and moderate income families through
eligible uses of its HOME Program grant funds, as described in the Augusta-Richmond County
Consolidated Plan 2005-2009, and the Year 2008 Annual Action Plan; and
WHEREAS, Augusta must reserve not less than fifteen percent (15%) of its allocated HOME
entitlement funds for investment in affordable housing to be developed, sponsored or owned by a
designated Community Housing Development Corporation (CRDO); and
WHEREAS, Augusta wishes to enter into a contractual agreement with South Augusta
Redevelopment, Inc. 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 CPR
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 ofthe Housing and Urban Development regulations.
WHEREAS, South Augusta Redevelopment, Inc. has agreed to provide services funded through this
contract free from political activities, religious influences or requirements; and
WHEREAS, South Augusta Redevelopment, Inc. has requested and Augusta has approved a total of
$46,724.000 in loan funds/ $23,688.00 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: SAR agrees to utilize approved HOME funds to support project related costs
associated with the New Dover Community Development Project. This project is an affordable
housing effort which involves the development and reconstruction (rehabilitation) of a single-family,
scattered site, in-fill affordable housing unit within the New Dover Community Development Project.
Under this agreement:
... Perform redevelopment services for 1 single family home
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 homebuyer has been identified, received and completed a
comprehensive home buying education course(s) and pre-purchase housing
counseling program; prior to the completion of the assigned home.
B. Use of Funds: HOME funds shall be used by SAR for the purposes and objectives stated in
Article I, Scope of Services, and Exhibit "A" of this Agreement. The use of HOME funds for
any other purpose(s) is not permitted. The following summarizes the proposed uses of HOME
Program funds under this Agreement:
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1. Construction Loan
An amount not to exceed $70,412.00 in a loan/grant shall be expended by SAR from Year
2008 HOME funds for construction costs related to the redevelopment of 1 affordable single
family housing unit in the New Dover Community Development Project area. The design and
specifications must be approved by AHCD prior to construction (Exhibit D). Funds will be
used to assist with the cost of the following items: permits, footings, foundation, floor
framing, exterior wall framing, rough plumbing, rough HV AC, rough electric & developer's
fees only. The unit will be constructed by SAR and sold to eligible low and very-low income
homebuyers.
2525 Miles Street
SAR may request a change in addresses through a written request.
2. Developer's Fee
SAR can draw up to $12,000.00 per house or 8% to pay itself a project developer's fee.
Draw downs are to be requested at the milestones listed below:
(1) $ 1,200.00
When plans have been approved by AHCD and SAR has
entered in to a contract to begin reconstruction.
(2) $ 2,400.00
When reconstruction is 50% complete.
(3) $ 2,400.00
When reconstruction is 100% complete.
(4)$ 6,000.00
At closing of property.
C. Program Location and Specific Goals to be Achieved
SAR shall conduct project development activities and related services in its project area (also
known as the New Dover Community Development Project and its designated geographic
boundaries approved by AHCD.
D. Proiect Eligibilitv Determination
It has been determined that the use of HOME funds by the South Augusta Redevelopment,
Inc. will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this
contract, SAR 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.
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ARTICLE II. BUDGET AND METHOD OF PAYMENT
South Augusta Redevelopment, Inc. will be compensated in accordance with this Article II, Budget
and Method of Payment, that specifically identifies the use of HOME and other project funding as
represented in Article II. C.2 of this Agreement. SAR its directors, officers and staff will carry out and
oversee the implementation of projects to be funded with HOME funds. South Augusta
Redevelopment, Inc. 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, South Augusta Redevelopment Inc., 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 South Augusta Redevelopment, Inc., a maximum of$ 70,412.00 under
this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services,
subject to SARs compliance with all terms and conditions of this agreement and the
procedures for documenting expenses and activities as set forth in ARTICLE V.
2. The method of payment shall be in accordance with Financial Procedures as described in
Article I or Exhibit A, attached hereto and made part thereof.
3. AHCD will monitor the progress of the project and SARs 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. South Augusta Redevelopment, Inc. will make reasonable efforts to secure additional funding
sources using the $ 70,412.00 in HOME funds awarded under this agreement as leverage to
support the "New Dover Community Development Project".
B. Timetable for Completion ofProiect Activities
1. South Augusta Redevelopment, Inc. 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, SAR will provide a detailed outline of critical project milestones and projected
expenditures during the course of the development project as Exhibit C. These documents
will become an official part of the contractual agreement and provide the basis for overall
proj ect performance measurements.
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C. Proiect Budget: Limitations
1. South Augusta Redevelopment, Inc. shall be paid a total consideration of $70,412.00 for full
performance of the services specified under this Agreement. Any cost above this amount shall
be the sole responsibility of the SAR. 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 South Augusta
Redevelopment, Inc.
2. South Augusta Redevelopment, Inc. shall adhere to the following budget in the performance
of this contract.
A.
Proiect Activitv Cost
$ 70,412.00
Soft Cost (Loan) 46,724.00
Construction Grant 23.688.00
TOTAL HOME PROJECT COST: $ 70,412.00
ARTICLE III - RESALE/RECAPTURE PROVISIONS [24 CFR 92.254(5)]
I. The Resale/Recapture Provisions in this Article III shall ensure compliance with the HOME
Program "Period of Affordability" requirements pursuant to 24 CFR 92.254(a)(4). 24 CFR
92.254 requires that the City, its subrecipients, and CRDOs follow certain resale/recapture
restrictions with regard to its HOME-funded homebuyer program. Each property sold to a
homebuyer will remain affordable for the duration of the affordability period or the City will
use the recapture option.
A. Recapture Provisions r24 CFR 92.254(5)(ii)1
If the eligible homebuyer (who received down payment assistance [HOME Program] or other
development subsidy funds from Augusta) sells their property, then South Augusta
Redevelopment 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 LB 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 SAR (whichever date is later) and shall end at the completion of all program activities, within
the time specified in Article LD, 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 South Augusta Redevelopment, Inc., or any subcontractor hereunder. All payments to the
SAR by Augusta will be made on a reimbursement basis.
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B. South Augusta Redevelopment, Inc. 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. South Augusta Redevelopment, Inc. shall maintain a separate account and accounting process
for HOME funding sources.
D. South Augusta Redevelopment, Inc. shall not use these funds for any purpose other than the
purpose set forth in this Agreement.
E. Subject to SAR'S compliance with the prOViSIOns of this Agreement, Augusta agrees to
reimburse all budgeted costs allowable under federal, state, and local guidelines.
F. All purchases of capital equipment, goods and services shall comply with the procurement
procedures of OMB Circular A-II0 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education, Hospitals and Other Non-Profit
Organizations" as well as the procurement policy of Augusta.
G. Requests by the South Augusta Redevelopment, Inc. 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 a~e to be used
to reimburse salary expenditures, proper documentation to include: "Time Sheet" forms supplied
by Augusta, photocopies of paychecks, paycheck stubs and/or payroll documentation. Invoices
shall not be honored if received by Augusta later than sixty (60) calendar days after expiration
date of this Agreement.
H. South Augusta Redevelopment shall maintain an adequate financial system and internal fiscal
controls.
I. Developer's subsidy will be determined after construction is complete and the homebuyer
subsidy will be determined after the amount of the buyer's permanent mortgage has been
determined.
J. Unexpended Funds: Unexpended funds shall be retained by Augusta. Upon written request,
Augusta may consider the reallocation of unexpended funds to eligible projects proposed by the
South Augusta Redevelopment.
ARTICLE VI.
REPAYMENT/PROGRAM INCOME
A. South Augusta Redevelopment, Inc. may retain a portion of the profit from sale of the house
as proceeds generated from the 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.
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B. All funds retained by South Augusta Redevelopment, Inc. 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. South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc., control that was acquired or
improved in whole or in part with HOME funds in excess of $25,000 must either:
1. Be used to meet one of the national objectives in 24 CFR 570.208 for at least five years
after the expiration of this Agreement; or
2. Be disposed of in a manner that results in Augusta being reimbursed in the amount of the
current fair market value of the property, less any portion of the value attributable to
expenditures of non-HOME funds for acquisition of, or improvement to, the property.
F. Any Home funds invested in housing that does not meet the affordability requirements for the
period specified in S 92.252 or S 92.254, as applicable, must be repaid by South Augusta
Redevelopment, Inc.
G. Any HOME funds invested in a project that is terminated before completion, either
voluntarily or otherwise, must be repaid by South Augusta Redevelopment, Inc.
ARTICLE
VII. RECORD KEEPING, REPORTING AND MONITORING
REQUIREMENTS
A. South Augusta Redevelopment, Inc. shall carry out its HOME assisted activities in compliance
with all HOME Program laws and regulations described in 24 CFR Part 92 Subpart E
(Program Requirements), Subpart F (Project Requirements), and Subpart H (Other Federal
Requirements). These compliance activities include, but are not limited to:
1. Maximum acquisition prices [24 CFR 92.205A.2]
2. Maximum per unit HOME Program subsidy amount [Section 221(d)(3)]
3. Combined affordability of assisted units
4. Income eligibility of home buyers
5. Inspection of the homebuyer units to comply with HUD required Property Standards
6. Acquisition, Displacement and Relocation Requirements [24 CFR 92.353]
7. Environmental Review
8. Lead-based Paint Abatement
9. Property value (203)(B) Limits
B. To document low and moderate-income benefits required in 24 CFR 570.200(a) (2). South
Augusta Redevelopment, Inc. shall maintain records that document all clients served with
HOME funds. In addition, SAR 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 South
Augusta Redevelopment, Inc., shall provide the information and verification described above.
C. South Augusta Redevelopment, Inc. shall prepare and submit reports relative to this project to
Augusta at Augusta's request. Augusta shall supply SAR with the following report forms and
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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.
H. South Augusta Redevelopment, Inc. shall maintain books and records in accordance with
generally accepted accounting principles. Documents shall be maintained in accordance with
practices that sufficiently and properly reflect all expenditure of funds provided by Augusta
under this Agreement.
I. South Augusta Redevelopment, Inc. shall make all records for this project available to
Augusta, the u.s. Department of Housing and Urban Development, the Comptroller General
of the United States, or any of their duly authorized representatives for the purpose of making
audits, examinations, excerpts and transcriptions.
J. In compliance with OMB Circular A-110 regarding retention and custodial requirements for
records, South Augusta Redevelopment, Inc. shall maintain fmancial records, supporting
documents, statistical records, and all other records pertinent to this Agreement for a period of
three years, with the following qualifications:
1. If any litigation, claim or audit is started before the expiration of the 3-year period, the
records shall be retained until all litigation, claims, or audit findings involving the
records have been resolved.
2. Records for non-expendable personal property acquired with HOME grant funds shall
be retained for three years after its final disposition. Non-expendable personal
property means tangible personal property having a useful life of more than one year
and an acquisition cost of $300 or more per unit.
K. In connection with the expenditure of federal funds, South Augusta Redevelopment, Inc. 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
South Augusta Redevelopment Inc. 's fiscal year. The South Augusta Redevelopment Inc. is
responsible for any cost associated with the audit. Failure to comply may result in the
reallocation of funding and termination of the contract. The South Augusta Redevelopment
Inc. shall supply, upon request, documentation maintained in accordance with practices which
sufficiently and properly reflect all expenditures of funds provided by Augusta under this
Agreement.
L. Open Records Disclosure: South Augusta Redevelopment, Inc.'s records related to this
Agreement and the services to be provided under the grant may be a public record subject to
Georgia's Open Records Act (O.C.G.A. S 50-18-70). South Augusta Redevelopment, Inc.
agrees to comply with the Open Records Act should a request be submitted to it. Further,
South Augusta Redevelopment, Inc. agrees to comply with the provisions of the Open
Meetings Law and the following compliance measures will be taken: South Augusta
Redevelopment Inc. 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,
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subject to the provisions of the Open Meetings Law. The press, public and the Grantee shall
not be denied admittance to the South Augusta Redevelopment, Inc. 's board meetings, except
for such portions of the meeting as may be closed pursuant to the Open Meetings Law. South
Augusta Redevelopment, Inc. 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
South Augusta Redevelopment, Inc. agrees to comply with the conflict of interest provisions
contained in 24 CFR 85.36, 570.611, OMB Circular A-110 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 South August. Redevelopment, Inc. 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 fmancial 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
defmed 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. South Augusta
Redevelopment, Inc. in the persons of Directors, Officers, Employees, Staff, Volunteers and
Associates such as Contractors, Sub-contractors and Consultants shall sign and submit a
Conflict of Interest Affidavit. (Affidavit form attached as part in parcel to this Agreement)
B. South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. In such
instances, South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc.
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.
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ARTICLE
IX. OTHER REQUIREMENTS
A. Fair Housing
South Augusta Redevelopment, Inc. agrees that it will conduct and administer HOME
activities in conformity with Pub. L. 88-352, "Title VI ofthe 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 SARs publications
and/or advertisements. (24 CFR 570.601).
B. Principal Residence
South Augusta Redevelopment, Inc. agrees that the HOME funded housing must be acquired
by a homebuyer whose family qualifies as low-income family and the housing must be the
principal residence ofthe family throughout the period of affordability. Annually, SAR shall
forward a letter to the homeowner certifying that the HOME assisted property is still their
principal place of residency.
C. Period of Affordabilitv
South Augusta Redevelopment, Inc., agrees to comply with S 92.254(a)3, which states that the
HOME assisted housing must meet the affordability requirements for not less than the
applicable period specified within this regulation and beginning after project completion.
D. Ownership Interest
South Augusta Redevelopment, Inc., agrees that the ownership in the housing assisted must
meet the definition of "homeowners hip" in S92.2.
E. Non-Discrimination
South Augusta Redevelopment, Inc. agrees to comply with 24 CFR Part I, which provides that
no person shall be excluded from participation in this project on the grounds of race, color,
national origin, or sex; or be subject to discrimination under any program or activity funded
in whole or in part with federal funds made available pursuant to the Act.
F. Non-Discrimination and Residential Property
South Augusta Redevelopment, Inc. 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: South Augusta Redevelopment, Inc. 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, SAR 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
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not less than prevailing wage-rates as determined by the Secretary of Labor. By
reason of the foregoing requirement, the Contract Work Hours and Safety Standards
Act (40 USC 327 et seq.) also applies. These requirements apply to the rehabilitation
of residential property only if such property contains eight or more units. (24 CFR
570.603)
3. Labor Matters: No person employed in the work covered by this contract shall be discharged
or in any way discriminated against because he or she has filed any complaint or instituted or
caused to be instituted any proceeding or has testified or is about to testify in any proceeding
under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR
570.603)
E. Environmental Standards
South Augusta Redevelopment, Inc. 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), South
Allgusta Redevelopment, Inc. 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
South Augusta Redevelopment, Inc. agrees to take all reasonable steps to mmlffi1Ze
displacement of persons as a result of HOME assisted activities. Any such activities assisted
with HOME funds will be conducted in accordance with the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (URA) and the Housing and Community
Development Act of 1974 (24 CFR 570.606).
H. Non-Discrimination in Employment
South Augusta Redevelopment, Inc. agrees to comply with Executive Order I 1246 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. South
Augusta Redevelopment, Inc. will in all solicitations or advertisements for employees placed
by or on behalf of South Augusta Redevelopment, Inc., state that all qualified applicants will
receive consideration for employment without regard to race, color, religion, sex, national
origin or familial status.
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1. Employment and Business Opportunities
South Augusta Redevelopment, Inc. 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, South Augusta Redevelopment, Inc. 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
South Augusta Redevelopment, Inc. 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, SAR 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 South Augusta Redevelopment, Inc. for the project funded
pursuant to this Agreement, during the term of this Agreement or for one year thereafter, will
make reference to the contribution of Augusta-Richmond County in making the project
possible. The words "Augusta-Richmond County Department of Housing and Community
Development" will be explicitly stated in any and all pieces of publicity; including but not
limited to flyers, press releases, posters, brochures, public service announcements, interviews,
and newspaper articles.
N. Timely Expenditure of Funds
In accordance with 24 CFR 85.43, if South Augusta Redevelopment, Inc. 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 South Augusta
Redevelopment, Inc. shall obligate and expend its funds as designated under ARTICLE II.
(B).
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O. Compliance with Laws and Permits
South Augusta Redevelopment, Inc. 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. South Augusta
Redevelopment, Inc. agrees to obtain all necessary permits for intended improvements or
activities.
P. Assignment of Contract
South Augusta Redevelopment, Inc. shall not assign any interest in this contract or transfer
any interest in the same without the prior written approval of Augusta.
Q. Equal Emplovment Opportunity
South Augusta Redevelopment, Inc. agrees to comply with the prohibitions against
discrimination on the basis of age under the Age Discrimination Act of1975 (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 CFRpart 8 shall include sleeping
accommodations.
R. AffIrmative Action
. South Augusta Redevelopment, Inc. will not discriminate against any employee or applicant
for employment because of race, color, religion, sex, national origin, or familial status. South
Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. 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. South Augusta
Redevelopment, Inc. 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. South Augusta Redevelopment, Inc. agrees to make efforts to
encourage the use of minority and women-owned business enterprises in connection with
HOME supported activities.
S. Religious Influence
South Augusta Redevelopment, Inc. 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. South Augusta Redevelopment, Inc. will not discriminate against any person
applying for shelter on the basis of religion. South Augusta Redevelopment, Inc. 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.
13
T. Indirect Costs
Indirect costs will only be paid if South Augusta Redevelopment, Inc. 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, South Augusta Redevelopment, Inc. 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 "reconstruction" 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 South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. cures any breach of the agreement. If South
Augusta Redevelopment, Inc. fails to cure the breach, Augusta may suspend or terminate the
current award of HOME funds for the South Augusta Redevelopment, Inc.'s program.
B. Notwithstanding the above, South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. for
documented committed eligible costs incurred prior to the date of notice of termination.
D. Notwithstanding any termination or suspension of this Agreement, South Augusta
Redevelopment, Inc. 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.
14
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
South Augusta Redevelopment, Inc. will receive all notices at the address indicated below:
South Augusta Redevelopment, Inc.
P.O. Box 6805
Augusta, Georgia 30916-6805
ARTICLE XII.
INDEMNIFICATION
South Augusta Redevelopment, Inc. will at all times hereafter indemnify and hold hat:mless Augusta,
its officers, agents and employees, ag~inst 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, South Augusta Redevelopment, Inc. specifically consents to jurisdiction and venue in the
Superior Court of Richmond County, Georgia and waives any right to contest jurisdiction or venue in
said Court.
Should it become necessary to determine the meaning or otherwise interpret any work, phrase or
provision of this Agreement, or should the terms of this Agreement in any way be the subject of
litigation in any court of laws or equity. It is agreed that the laws of the State of Georgia shall
exclusively control same.
The parties hereto do agree to bind themselves, their heirs, executors, administrators, trustees,
successors and assigns, all jointly and severally under the terms of this Agreement.
ARTICLE XIII.
INSURANCE AND BONDING
South Augusta Redevelopment, Inc. 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, South Augusta Redevelopment, Inc.
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 South Augusta Redevelopment, Inc. handling or charged with
15
the responsibility for handling funds and property pursuant to this contract. South Augusta
Redevelopment, Inc. 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, South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment, Inc. 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 South Augusta Redevelopment,
Inc. beyond the term of this Agreement.
ARTICLE XV.
LEGAL PROVISIONS DEEMED INCLUDED
Each and every provision of any law or regulations and clause required by law or regulation to be
inserted in this Agreement shall be deemed to be inserted herein and this Agreement shall be read and
enforced as though it were included herein and if, through mistake or otherwise, any such provision is
not inserted or is not correctly inserted, then upon application of either party this Agreement shall
forthwith be amended to make such insertion.
16
ARTICLE XVI.
COUNTERPARTS
This agreement is executed in two (2) counterparts - each of which shall be deemed an original and
together shall constitute one and the same Agreement with one counterpart being delivered to each
party hereto.
IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written
above:
'-'.'- ':,.:"
AUGUST A. GEORGIA
(Augusta)
By. (j~:'~ver
As Its yor
hester A. Wheeler, III
Director, AHCD
ATTEST:
LJ&!
"it,
"!i\;
,,' ',~
SEAL
ATTEST:
SOUTH AUGUSTA REDEVELOPMENT. INCORPORATION
(Grantee)
By:
r~~J.~;j7
Pres W\tJl'\.it 1 5R R
SEAL
17
APPENDIX A
Statutes:
24 CFR Part 92, HOME Investment Partnerships Program ("HOME")
OMB Circular A-110 - Uniform Administrative Requirements for Grants and Agreement with
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations
OMB Circular A- 122 - Cost Principles for Non-Profit Organizations
OMB Circular A-133 - Audits of Institutions of Higher Education & other Non-Profit Institutions
40 USC 276 Davis-Bacon Act
40 USC 327 Contract Work Hours and Safety Standard Act
Uniform Relocation Assistance and Real Property Acquisition Policies Act
Lead Based Paint Poisoning Prevention Act
24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint
Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being
sold, Final Rule
Augusta-Richmond County Procurement Policy
Forms:
Income Verification and Income Limits Table
Inventory
Time Sheet
Reimbursement Request
Monthly Statistical Reports
Quarterly Program Progress
Quarterly Financial Report
Annual Program Report
Travel Log
Conflict of Interest Affidavit
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APPENDIX B
REPORTING REQUIREMENTS
South Augusta Redevelopment, Inc. shall submit to the Grantee the following reports for the term of
this agreement.
1. Monthly Statistical Reports
Due each month by the 10th for the previous month.
2. Quarterly Progress & Financial Reports
Due the 15th ofthe new quarter.
3. Annual Progress Report (January 16, 2010)
4. AuditlFinancial Report
5. Grantee shall maintain files on each person assisted. Each file shall contain, but is not
restricted to, income data and verification for each person assisted; application for
services; record of services provided; amount of services provided; documentation of
costs for which assistance is provided; transportation log; documentation of medical
need regarding prescriptions; and any other document that will provide proof of
needed service(s) and subsequent provision of such service(s) as allowed under this
contract.
19
APPENDIX C
CONSTRUCTION REQUIREMENTS
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).
1. 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 federal funded projects.
4. Project Review. All plans, specifications, work write-ups, projected cost estimates, punch lists or
other means of outlining work on a particular project will be submitted in writing to HCD for
20
review and approval prior to bidding. HCD Construction and Rehabilitation Inspectors will
review these items for compliance with new construction and/or rehabilitation standards and
materials use.
5. Rehabilitation Standards. All rehabilitation work will comply with the "Uniform Physical
Condition Standards for 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.
21
EXHIBIT "A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
1. Augusta through the Housing and Community Development Department agrees to provide up
to $70,412.00 in Year 2008 HOME Investment Partnerships Funds to the South Augusta
Redevelopment, Inc. These funds will support redevelopment of approximately 1 affordable
single family residential unit in connection with the New Dover Community Development
Project.
2. In connection with the acquisition of HOME funded development sites, SAR shall submit to
HCD an overall land development plan. This plan should identify the proposed properties to
be acquired in connection with the implementation of the New Dover Community
Development Project. Prior to the purchase of any HOME funded development sites, SAR
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 EXHIBIT B. Each new project added under EXHIBIT 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 SAR in accordance with a payment schedule outlined in the construction contract
between SAR and the Contractor.
4. SAR will provide the lots on which all new affordable homes are to be built under this
agreement and in connection with the New Dover Community Development Project.
5. With HCD approval, SAR 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 EXHIBIT B. In no case will this amount exceed the maximum per unit
amount as defined at 24 CFR 92.250.
b. SAR 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. SAR must make sure contractor obtains and posts all permits on job site. Prior to
releasing final payment on each house, SAR must also secure a Certificate of Occupancy
from the contractor that has been issued by the Department of Licenses and Inspection.
d. SAR must collect progress and final lien releases from the contractor, subcontractors and
material suppliers prior to making a payment to a contractor.
22
e. HCD may continually inspect each house for contract compliance and to determine the
percent of completion prior to processing a draw request and releasing payment. HCD
may elect to make up to five (5) payments per house. HCD may choose not to release
payments if the work being performed is not of acceptable quality to HCD and if the house
is not being built or rehabilitated in accordance with plans and specifications, or if project
is not on schedule.
7. Permanent Financing and Sales Prices
a. The sales price of each home sold in accordance with this agreement must be based on a
formal appraisal. Unless otherwise agreed to by HCD, the sales price of each house shall
not exceed the appraised value of the house.
b. The purchasers of houses constructed with HOME funds must meet HOME and City of
Augusta program requirements.
c. Buyers will be required to borrow no less than 60% of the sale price of the house from a
private lending institution unless otherwise agreed to by HCD.
d. When necessary, SAR may leave HOME development funds in a house as a second
mortgage permanent loan to the purchaser. SAR will, however, be required to assign these
loans to HCD once they have been executed.
Note: The above developer fee structure relates only to single family affordable housing development
projects. Any other development fee such as that for a multi-family rental project (or other
commercial development) must be negotiated separately and approved by the Executive Director of
HCD or his/her designated representative prior to payment to grantee.
23
EXHIBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS
PROJECT ADDRESS: 2525 Miles Street NEIGHBORHOOD
TYPE DEVELOPMENT: New Construction X
LOT SIZE:
NO. OF BEDROOMS:
NO. OF BATHROOMS:
S.F. HEATED SPACE:
Dover-Lvman
Rehabilitation
[ ]4
[ ]4
2,100
[x ]3
[ ]3
[]2
[x]2
[ ]1
[ ]1
LAND, CONSTRUCTION & SOFT COST: ESTIMATES Per S.F. Cost
Land and Construction Costs
Property Acquisition ($2,486.00)
Site Preparation! Clearance & Demolition ($ 4,111.00)
General Construction - Amount ($ 94,752.00)
Contingency ($12,000.00)
Sewer Tap
Water Meter
Landscaping ($1,500.00)
Fencing
Grading
Aluminum Mini-Blinds
Alarm System
Termite Treatment
Other - Specifj;(Construction Loan Interest - $ 740.00)
Other - (Construction Loan Origination - $ 1,500.00)
Total Estimated Land & Construction Costs $ 117,089.00
Soft Costs
Appraisal ($ 350.00)
Title Search
Survey ($ 300.00)
Plans, Specs, A&E ($ 1,500.00)
Real Estate ($ 700.00)
DeveloperFee ($12,000.00)
Property Taxes ($ 324.00)
Builders Risk Insurance ($ 363.00)
Construction Interest on Bank Loans
Closing Cost
Other- Specifj;(Permits - $ 400.00)
Environmental ($ 4,450.00)
Other - Professional Fees - ($ 2,400.00)
Other - Marketing - ($ 600.00)
Total Estimated Soft Costs
$ 24,387.00
Total Development Costs
$141,476.00
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DEVELOPMENTCOSTS~Y
PROPOSED DEVELOPMENT COSTS
PROPOSED SALE PRICE
NON-PROFIT FUNDS
HOME FUNDS REQUESTED
PROJECTED HOME SUBSIDY
141,476
110,000
71,064
70,412
28,300
EXHIBIT "C"
PROJECT SCHEDULE OF COMPLETION
SAR 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
26