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HomeMy WebLinkAboutCONTRACT BETWEEN ARC AND ANTIOCH MINISTRIES INC IN AMT OF $291,553.00 YR YR 2010 HOME INVESTMENT PARTNERSHIP PROGRAM "hOLLEY STREET EAST PROJECT" YR 2010 � � CONTRACT Between AUGUSTA, GEORGIA And ANTIOCH MINISTRIES, INC. In the amount of $291,553.00 Two Hundred Ninety One Thousand Five Hundred and Fifty-Three Dollars & 00/100 For Fiscal Year 2010 Providing Funding From HuME INVESTMENT PARTNERSHIPS PROGRAM "Holley Street East Project" THIS AGREEMENT ("Contract"), is made and entered into as of the o2��da of � Y �`�`� 2011 ("the effective date") by and between Augusta, Georgia, acting through the Housing and Community Development Department (hereinafter referred to as "AHCDD") — with principal offices at 925 Laney Walker Blvd., 2 Floor, Augusta, Georgia 30901, as party of the first part (hereinafter called "Augusta"), and Antioch Ministries, Inc. , a non-profit organization pursuant to the Laws of the State of Georgia (hereinafter called "ANfI") as party in the second part. WITNESSETH WHEREAS, Augusta 'rs qualified by the U.S. Department of Housing and Urban Development (hereafter called HUD) as a HOME Program Participating Jurisdiction, and Augusta 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 eligible families; as defined by HUD; and WHEREAS, the grantee is a designated Community Housing and Development Organization (hereinafter called "CHDO") 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 it HOME Program grant funds, as described in the Augusta- Richmond County Consolidated Plan 2010-2014; and the Year 2010 Annual Action Plan; and Augusta Housing and Community Development Department Page 1 � � WHEREAS, Augusta must reserve not less than fifteen percent (15%) of its allocated HOME entitlement funds for investments in affordable housing to be developed, sponsored or owned by a designated CHDO; and WHEREAS, Augusta wishes to enter into a contractual agreement with Antioch Ministries, Inc. for the administration of HOME eligible affordable housing development activities; and WHEREAS, this activity has been determined to be an eligible HOME activity according to 24 CFR 92.504(c)(13), and will meet one or more of the national objectives and criteria outlined in Title 24 Code of Federal Regulations, Part 92 of the Housing and Urban Development Regulations. WHEREAS, AMI has been selected and approved through a solicitation process for development partners to assist in the redevelopment of Laney Walker/Bethlehem communities. WHEREAS, AMI has agreed to provide services funded through this contract free from political activities, religious influences or requirements; and WHEREAS, AMI has requested and Augusta has approved a total of $291,553.00 in loan funds to perform eligible activities as described in Article I below; NOW, TIIEREFORE, 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 a. Proiect Description � AMI agrees to utilize approved HOME funds to support project related costs associated with the Holley Street East project. This project is the construction of affordable housing units which involves development and construction of two single family units within the Holley Street Community. Under this agreement: Augusta Housing and Community Development Department Page 2 �� w i. Perform new construction services for 2(two) single family unit. ii. Perform all required and requested �narketing and advertising activities; in accordance with "Fair Housing" regulations iii. All projects are to posses the following components: 1. Evidence of additional financing resources "Leveraging" 2. Evidence of Site Control 3. At the time of sales, 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 Program funds shall be used by AMI 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 funds under this agreement: a. Construction Loan An amount not to exceed $218,553.00 in a loan shall be expended by AMI from year 2010 HOME Program funds for construction costs related to the development of an affordable single family unit in the Holley Street Community. The design and specifications must be approved by AHCDD prior to construction (E�ibit A). Funds will be used to assist with the cost of all construction related fees. This unit will be constructed by AMI and made available for purchase by HOME Program eligible low and moderate income homebuyers. The address for this project is: i. 1218 Hollev Street & 1224 Hollev Street, Augusta , Georgia 30901 AMI may request a change of address through written request. AMI will provide 75% of the construction cost through a construction loan. The total project cost is estimated to be approximately $523,368.00 Initial: Augusta Housing and Community Development Department Page 3 , . b. Demolition and Clearance An amount not to exceed $18,000.00 in a grant shall be expended by AMI to support the demolition and clearing of sites to be used construct affordable single-family housing units to be made available for purchas by HOME program eligible low and moderate- income homebuyers. c. Developers Fee An amount not to exceed $20,000.00 in a grant shall be expended to Laney-Walker in support of the project development fees. AMI can draw down up to $10,000.00 per house to pay itself a project developer's fee. Draw downs are to be requested at the milestones listed below: i. $ 1,000.00 When plans have been approved by AHCD and AMI has entered into a contract to begin construction. ii. $ 3,000.00 When construction is 50% complete. iii. $ 5,000.00 When construction is 100% complete. iv. $ 1,000.00 At closing of property. Initial: d. Soft Cost An amount not to exceed $35,000.00 in a loan shall be expended to AMI for to support the soft cost of construction to be used to construct two affordable single-family housing units to be made available for purchase by HOME program eligible low and moderate- income homebuyers. Initial: C. Program Location and Specific Goals to be Achieved AMI shall conduct project development activities and related services in its project area (also known as the Holley Street Community) that incorporates the following boundaries: Holley Street on the West; 12�' Street on the East; Wrightsboro Road on the South; and Laney Walker Boulevard on the North and its designated geographic boundaries approved by AHCD. Augusta Housing and Community Development Department Page 4 D. Proiect Eligibility Determination It has been determined that the use of HOME Program funds by AMI will be in compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract, AMI 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 AMI will be compensated in accardance with this Article II, Budget and Method of Payment, that specifically identifies the use of HOME funds and any other project funding as represented in Article IL C. 2 of this Agreement.. Antioch Ministries, Inc. agrees to perform the required services under the general coordination of AHCD. In addition and upon approval by Augusta, AMI may engage the services of outside professional services, consultants, and contractors to help carry out the program and project. A. Funds Augusta shall designate and make HOME Program funds available in the following manner: a. Augusta agrees to pay AMI a maximum of $291,553.00 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services, subject to AMI's compliance with all terms and conditions of this agreement and the procedures for documenting expenses and activities as set forth in ARTICLE V. b. The method of payment shall be on a reimbursement basis. The Reimbursement Form can found in Appendix B. For invoicing, Antioch Ministries, Inc. will include documentation showing proof of payment in the form of a cancelled check attached with its respective invoice and completed reimbursement form that includes amount requested amount remaining and specific line item names that relate to the contract budget found in Appendix A. Augusta Housing and Community Development Department Page 5 c. AHCD will monitor the progress of the project and AMIs performance on a monthly basis with regards to the production of housing units and the overall effectiveness of project. d. 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. e. Funds may not be transferred from line item to line item in the project budget without prior written approval of Augusta thru AHCDD. f. The use of fiznds described in this agreement is subject to the written approval of the U. S. Department of Housing and Urban Development. g. This Agreement is based upon the availability of HOME Program funds. h. Antioch Ministries, Inc. will make reasonable efforts to secure additional funding sources using the $291,553.00 in HOME Program funds awarded under this agreement as leverage to support the "Holley Street East". A copy of this letter will be attached in Appendix C. Initial: � B. Proiect Financin� AHCDD will fund no more than twenty-five percent (25%) of the total construction costs of a single project, and seeks to provide AMI with the necessary HOME Program Agreement upon receipt of AMI financial commitment letter for 75% of the total cost of construction from a reputable financial institution. The other portion can be used for other project related costs as described below: a. AMI's funding can be used to cover project related soft costs (architectural/engineering fees, other related professional fees, affirmative marketing and fair housing services, and other soft costs as deemed eligible) b. All funding is being provided at a 0% non-amortizing loan to be repaid once the house sales. Initial: Augusta Housing and Community Development Department Page 6 � C. Timetable for Completion of Proiect Activities AMI shall obligate the designated HOME Program funds within six months of the date of execution of this Agreement. Based on the budget outlined in C.2 below, Antioch lV�inistries, Inc. will provide a detailed outline of critical project milestones and projected expenditures during the course of the development project as E�ibit B. These documents will become an official part of the contractual agreement and provide the basis for overall project performance measurements. Initial.• �Z��'" D. Proiect Budget: Limitations AMI shall be paid a total consideration of $291,553.00 for full performance of the services specified under this Agreement. Any cost above this amount shall be the sole responsibility of Antioch Ministries, Inc.. 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 Antioch Ministries; Inc. AMI shall adhere to the following budget in the performance of this contract: Construction $ 218,553. Soft Costs $ 35,000 Demolition and Clearance $ 18,000 Developer's Fee $ 20,000 Total Project Activity Cost $ 291,553.00 Initial: Augusta Housing and Community Development Department Page 7 , ARTICLE III. RESALE/RECAPTURE PROISIONS [24 CFR 92.254(5)] 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 required that the City, its subrecipients, and CHDOs 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. If the eligible homebuyer (who received down payment assistance [HOME Program] or other development subsidy funds from Augusta) sells their property, then AHCDD shall capture the HOME funds 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 AMI (whichever date is later) and shall end at the completion of all program activities, within the time specified in Article I. D, or in accordance with Article VII: Suspension and Termination. I ARTICLE V: DOCUMENTATION AND PAYMENT A. This is a pay-for-performance contract and in no event shall Augusta provide advance funding to Antioch Ministries, Inc., or any subcontractor hereunder. B. AMI shall maintain a separate account and accounting process for HOME funding sources. C. AMI shall not use these funds for any purpose other than the purpose set forth in this Agreement D. Subject to AMI compliance with the provisions of this Agreement, Augusta agrees to reimburse all budgeted costs allowable under federal, state, and local guidelines. Augusta Housing and Community Development Department Page 8 E. All purchases of capital equipment, goods and services shall comply with the procurement procedures of OMB Circular A-110 "Uniform Administrative Requirements for Grant Agreements with Institutions of Higher Education, Hospitals and other Non- Profit Organizations" as well as the procurement policy of Augusta. F. Requests by AMI farpayment shall be accompanied by proper documentation and shall be submitted to AHCDD, transmitted by a cover memo, for approval no later than their (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. Invoices shall not be honored if received by AHCDD later than sixty (60) calendar days after expiration date of Agreement. The reimbursement request form is in Appendix B. G. AMI shall maintain an adequate financial system and internal fiscal controls H. The homebuyer subsidy will be determined after the amount of the buyer's permanent mortgage has been determined. I. Unexpended funds shall be retained by Augusta. Upon written request, Augusta may consider the reallocation of unexpended funds to eligible projects proposed by Laney- Walker. Initial: ARTICLE VI. REPAYMENT/PROGRAM INCOME A. AMI may retain a portion of the profit for from sale of the house as proceeds generated from a CHDO development activity. The proceeds shall be used in the following manner: a. HOME eligible activities b. Other 1ow income housing activities, which may include operational support of the CHDO (assuming the CHDO continues to meet its mission of providing affordable housing.) B. All funds retained by Laney-Walker 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. AMI shall report quarterly the use of proceeds to Augusta. The report shall indicate how the funds are acquired and how the funds were utilized. D. Augusta will be responsible for monitoring the reuse of the proceeds. Augusta Housing and Community Development Department Page 9 E. Any real property under AMI control that was acquired or improved in whole or in part with HOME funds in excess of $25,000 must either: a. 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 b. 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 §92.252 or §92.254, as applicable, must be repaid by AML G. Any HOME funds invested in a project that is terminated before completion, either voluntarily or otherwise, must be repaid by AML H. If AMI is found to be in non-compliance with the HOME Program laws and regulations as describe in 24 CFR Part 92, the organization will be required to reimburse the City for the funding associated with the noncompliance issues. ARTICLE VII. RECORD KEEPING, REPORTING AND MONITORING REQUIREMENTS AMI 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: a. M�imum acquisition prices [24 CFR 92.205A.2] b. Ma�imum per unit HOME Program subsidy amount [Section 221(d)(3)] c. Combined affordability of assisted units d. Income eligibility of assisted unites e. Inspection of the homebuyer units to comply with HUD required Property Standards £ Acquisition, Displacement and Relocation Requirements [24 CFR 92.353] g. Environmental Review h. Lead-based Paint Abatement i. Property Value [Section 203(b) Limits] Augusta Housing and Community Development Department Page 10 To document low and moderate-income benefits required in 24 CFR 570.200(a)(2). Antioch Ministries, Inc. shall maintain records that document all clients served with HOME funds. In addition, AMI shall document each client's race, family size, annul 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 AMI, shall provide the information and verification described above. AMI shall prepare and submit reports relative to this project to Augusta at Augusta's request. Augusta shall supply Laney-Walker 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. AMI 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. AMI 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. In compliance with OMB Circular A-110 regarding retention and custodial requirements for records, AMI 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: a. 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. b. Records for non-spendable personal property acquired with HOME grant funds shall be retained for three yeaxs 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. Augusta Housing and Community Development Department Page 11 In connection with the expenditure of federal funds, AMI shall provide to Augusta and 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 certified public accountant. Such financial disclosure information sha11 be filed with Augusta within,one hundred eighty (180) calendar days after the close of the AMI fiscal year. AMI is responsible for any cost associated with the audit. Failure to comply may result in the reallocation of funding and termination of the contract. AMI shall supply, up on request, documentation maintained in accordance with practices which sufficiently and properly reflect all expenditures of funds provided by Augusta under this Agreement. Open Records Disclosure: AMI's records related to this Agreement and the services to be provided under the agreement may be a public record subject to Georgia's Open Records Act (O.C.G.A. §50-18-70). AMI agrees to comply with the Open Records Act should a request be submitted to it. Further, Antioch Ministries, Inc. agrees to comply with the provision of the Open Meetings Law and the following compliance measures will be taken: a. AMI 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; b. AMI 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 provision of the Open Meetings Law. c. The press, public, and the Grantee shall not be denied admittance to AMI's board meetings, except for such portions of the meeting as may be closed pursuant to the Open Meetings Law. d. AMI shall provide the Grantee a tentative annual schedule of the Board of Director's meetings. Publications and minutes of each meeting shall be submitted to Crrantee within 30 days after each meeting. ARTICLE VIII. ADMINISTRATIVE REQUIREMENTS Antioch Ministries, Inc. agrees to comply with the conflict of interest provisions contained in 24 CFR 85.36, 570.61 l, OMB Circular A- 110 and OMB circular A- 102 as appropriate. Augusta Housing and Community Development Department Page 12 This conflict of interest provisions applies to any person who is an employee, agent, consultant, ofFicer, or elected official or appointed official of AMI. No person described above who exercises, may exercise or has exercised any functions or responsibilities with 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 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. Antioch Ministries, 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) AMI 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." Augusta may, from time to time, request changes to the scope of this agreement and obligations to be performed hereunder by AML In such instances, AMI shall consult with AHCDD/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 AMI. Statutes, regulations, guidelines and forms referenced throughout this Agreement are listed in Appendix D and are attached and included as part of parcel to this Agreement. Initial: Augusta Housing and Community Development Department Page 13 ARTICLE IX. OTHER REQUIREMENTS A. Fair Housin� Antioch Ministries, Inc. 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 AMIs publications andlor advertisements. (24 CFR 570.601). B. Princinal Residence Antioch Ministries, 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 of the family throughout the period of affordability. Annually, AMI shall forward a letter to the homeowner certifying that the HOME assisted property is still their principal place of residency. C. Period of Affordability Antioch Ministries, Inc., agrees to comply with § 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 Antioch Ministries, Inc., agrees that the ownership in the housing assisted must meet the definition of "homeownership" in §92.2. E. Non-Discrimination Antioch Ministries, 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. Augusta Housing and Community Development Department Page 14 F. Non-Discrimination and Residential Propertv Antioch Ministries, 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. G. Labor Standards 1. General: Antioch Ministries, 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, 'AMI will adhere to the Davis-Bacon Act (40 USC 276), as amended, which requires all laborers and mechanics working on the project to be paid not less than prevailing wage-rates as determined by the Secretary of Labor. By reason of the foregoing requirement, the Contract Work Hours and Safety Standards Act (40 USC 327 et seq.) also applies. These requirements apply to the rehabilitation of residential property only if such property contains eight or more units. (24 CFR 570.603) 2. Labor Mat�ers: 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 standaxds applicable hereunder to his or her employer. (24 CFR 570.603) H. Environmental Standards Antioch Ministries, 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 envirorunental review must be conducted by the Augusta-Richmond County Planning Department pursuant to (24 CFR 570.604). I. Flood Insurance Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128), Antioch Ministries, Inc. agrees that HOME funds shall not be expended for acquisition or Augusta Housing and Community Development Department Page 15 construction in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards (representing the 100-year floodplain). Exceptions will be made if the community is participating in the National Flood Insurance Program or less than a year has passed since FEMA notification and flood insurance has been obtained in accordance with section 102(a) of the Flood Disaster Protection Act of 1973. J. Displacement and Relocation Antioch Ministries, Inc, 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). K. Non-Discrimination in Emplovment Antioch Ministries, Inc. 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. Antioch Ministries, Inc. will in all solicitations or advertisements for employees placed by or on behalf of Antioch Ministries, Inc., state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin or familial status. L. Emplovment and Business Opportunities Antioch Ministries, 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 570.697). M. Lead-Based Paint In accordance with Section 92.355 of the HOME Regulations and Section 570.608 of the CDBG Regulations, Antioch Ministries, 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. Augusta Housing and Community Development Department Page 16 N. Debarred, Suspended or Ineligible Contractor Antioch Ministries, 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 ar 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. O. Dru� Free Workplace In accordance with 24 CFR part 24, subpa.rt F, AMI 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. P. Publicitv Any publicity generated by Antioch Ministries, 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. Q. Timelv Expenditure of Funds In accordance with 24 CFR 85.43, if Antioch Ministries, 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 Antioch Ministries, Inc. shall obligate and expend its funds as designated under ARTICLE II. (B). R. Compliance with Laws and Permits Antioch Ministries, 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 ar private property in performing any of the work embraced by this contract. Antioch Ministries, Inc. agrees to obtain all necessary permits for intended improvements or activities. Augusta Housing and Community Development Department Page 17 5. Assi�nment of Contract Antioch Ministries, Inc. shall not assign any interest in this contract or transfer any interest in the same without the prior written approval of Augusta. T. Epual Emplovment Opportunitv Antioch Ministries, Inc. agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101-07) and implementing regulations at 24 CFR part 146 and the prohibitions against otherwise qualified individuals with handicaps under section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. For purposes of the emergency shelter grants program, the term dwelling units in 24 CFR part 8 shall include sleeping accommodations. U. Affirmative Action Antioch Ministries, Inc. will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, or familial status. Antioch Ministries, Inc. will take affirmative action to insure that applicants are employed, and that employees are treated during employment, without xegard to their race, color, religion, sex, national origin, or Antioch Ministries, 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 pay or other forms of compensation; and selection for training, including apprenticeship. Antioch Ministries, 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. V. Reli�ious Influence Antioch Ministries, 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. Antioch Ministries, Inc. will not discriminate against any person applying for shelter on the basis of religion. Antioch Ministries, 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. Augusta Housing and Community Development Department Page 18 _ __ _ _ W. Indirect Costs Indirect costs will only be paid if Antioch Ministries, Inc. has indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. X. Travel If applicable, Antioch Ministries, 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). Y. Construction Repuirements - SEE APPENDIX C All housing units [rehabilitated, reconstructed or newly constructed] and assisted with HOME Program funds must, before occupancy, meet the Property Standards specified at 25 CFR 92.251 [the HOME Program Regulations]. The Property Standards at 24 CFR 92.251 require that the homes receiving HOME Program funds must meet all local codes for new construction. In the absence of local codes, properties must meet the HUD Section 8 Housing Quality Standards [HQS]. All housing assisted under this Agreement is "new construction" by HOME Program definition and therefore must meet the local building codes for new housing in Augusta-Richmond County, as applicable Initial: ARTICLE X. SUSPENSION AND TERMINATION A. In the event Antioch Ministries, Inc. materially fails to comply with any terms of this agreement, including the timely completion of activities as described in the timetable andJor contained in ARTICLE II.C, Augusta may withhold cash payments until AMI cures any breach of the agreement. If AMI fails to cure the breach, Augusta may suspend or terminate the current award of funds. AMI will not be eligible to receive any other funding. B. Notwithstanding the above, AMI 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 Augusta Housing and Community Development Department Page 19 remedies it may have at law or equity, Augusta may withhold any payments to AMI for the purposes of offsetting the exact amount of damages once determined. C. In the best interest of the project and to better serve the people in the target areas and fulfill the purposes of the Holley Street Community project, 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 this Agreement, Augusta shall pay AMI for documented committed eligible costs incurred prior to the date of notice of termination. D. Notwithstanding any termination or suspension of this Agreement, AMI shall not be relieved of any duties or obligations imposed on it under this Agreement with respect to HOME Program 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 Greene Street, Suite 801 Augusta, GA 3 0911 With copies to: Augusta Housing and Community Development Department 925 Laney Walker Blvd., 2" Floor Augusta, GA 3 0901 Augusta Housing and Community Development Department Page 20 Antioch Ministries will receive all notices at the address indicated below: Antioch Ministries, Inc. P.O. Box 1565 Augusta, GA 30913 ARTICLE XIL• INDEMNIFICATION Antioch Ministries, Inc. 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, AMI 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 the 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. Initial: ARTICLE XIII. INSURANCE AND BONDING AMI 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, AMI 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 AMI handling or charged with the responsibility for handling funds and property pursuant to this contract. AMI shall procure and provide, for approval by Augusta, comprehensive general liability insurance in the amount of at least $1,000,000.00 insuring the Augusta Housing and Community Development Department Page 21 Grantee and adding as named insured the City of Augusta, the Mayor, Commissioners, and Augusta's officers, agents, members, employees, and successors. Additiona.ily, AMI shall procure officers and directors liability insurance under policies to be approved by 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 required to be provided by AMI hereunder shall be cancelable without at least fifteen (15) days advance written notice to the Grantee. All insurance policies required hereunder or copies thereof sha11 be promptly submitted for approval by 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 Antioch Ministries, 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. Augusta Housing and Community Development Department Page 22 ARTICLE XVII. COUNTERPARTS This Agreement is executed in two (2) counterparts — each of which shall be deemed an original and together shall constitute one and the same Agreement with one counterpart being delivered to each party hereto. IN WITNESS WHEREOF, the parties have set their hands and seals as of the date first written above: ATTEST: AUGUSTA, GEORGIA (Augusta) SEAL By: 1..�` ���x�r( --.� ��p� David S. openha�er ����0�� � " � ,a �������� Q���� As Its Mayor �^�fln,9p � `d.h �,' ��� � , � 6��,p�� % C,� c i1 � �:-� e f :� ��� Y , b� .�' 3 ���,� �� . iz. Lena Bonne � �� � � ��� ° ;� � <.: � ;, . ;s Clerk of Co � s�ior� �.: . .� ��`� �,�;� � :� �� m 'r` > (15�2� Frederick Russell �� �����,a�>��= � ���� �`�������.°�" Admi ' trator � .._ Chester A. Wheeler, III Director, AHCDD ATTEST: ��,,,,�,»s�,►�,.,,, ANTIOCH MINSTRIES, INC.. � t ,. � � � N t S T R � , � ° � �•,,, � ,�,� ;�.>.,� s � ,,., (Grantee) . ey � �: SEAL = z c,�`aU�r� =� d �'' � 's gEP�' . B .- ,. � . ., ,,. '.. ,�� Its: �..sr Dc'.�r�T/�E� ,�,,, �� „►,,, (Plain witness) Augusta Housing and Cornmunity Development Department Page 23 APPENDIX "A" PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES 1. Augusta through the Housing and Community Development Department agrees to provide up to �291,553.00 in Fiscal Year 2010 HOME Program funds to Antioch Ministries, Inc.. These funds will support new construction with the production of approximately 2 affordable single-family residential units in connection with the Holley Street East Proj ect. 2. AHCDD 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 AMI in accordance with the attached drawdown schedule and budget. � 3. With AHCDD approval, AMI may use funds under this agreement far the following purposes: a. To support development costs as outlined in Item 6 below. 4. Completion delays, remedies, and penalties. a. If the Contractor fails to complete the work within the time frame specified in the contract, plus any authorized delays, AHCDD may: i. Terminate the contractor in accordance with the "Provisions for Augusta Housing and Community Development Department (AHCDD)" clause of this contract. ii. Assess liquidated damages of Two Hundred Dollars ($200) per working day from the schedule of completion to the date of final acceptance of the project. The total amount of liquidated damages will be deducted from the tota.l contract price, plus any change order amounts. b. The contractor shall not be charged with liquidated damages for any delays in the completion of the work due: i. To any acts of the Federal, State, or City/County Government; including controls or restrictions upon or requisitioning of materials, equipment, tools or labor by reason of war, National Defense, or any other National, State, or City/County emergency. ii. To any acts of the Owner that hinder the progress of the work; iii. To cause not reasonable foreseeable by the parties in this contract at the time the execution of the contract which are beyond the control and without the fault or negligence of the Contractor; including but not restricted to acts of God; acts of the public enemy; acts of another contractor in the performance of some other contract with the owner; fires; floods; epidemics; quarantine restrictions; strikes; freight embargoes; and Augusta Housing and Community Development Department Page 24 weather or unusual severity such as hurricanes, tornadoes, cyclones, and other extreme weather conditions; and 5. Construction Costs and Requirements a. The amount that can be used to pay for development costs will be indentified on a project-by-project basis. In no case will this amount exceed the ma�imum per unit amount defined at 24 CFR 92.250 b. AMI will provide construction management for the project to ensure that construction work is being carried out in accordance with plans, specifications and the proj ect budget. c. AMI must make sure contractors obtain and post all permits on job site. Prior to releasing final payment on each house, Antioch Ministries must also secure a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspections. d. AMI must collect progress and final lien releases from the contractor, subcontractors, and material suppliers prior to making a payment to a contractor. e. AHCDD or its agent may continually inspect each house for contract compliance and to determine the percent of completion prior to processing a draw request and releasing payment. AHCDD may choose not to release payments if the wark being performed is not of acceptable quality to AHCDD and if the house is not being built or rehabilitated in accordance with plans and specifications, or if the project is not on schedule. 6. 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 AHCDD, the sales price of each house shall not exceed the appraised value of the house. b. The purchasers of houses constructed must meet the City of Augusta program requirements c. Buyers will be required to borrow no less than 75% of the sale prices of the house from a private lending institution unless otherwise agreed to by AHCDD. Augusta Housing and Community Development Department Page 25 APPENDIX "B" REPORTING REQUIRMENTS Antioch Ministries, Inc. shall submit to the Grantee the following reports for the term of this Agreement. 1. Monthly/Quarterly Progress & Financial Reports a. Due the 15�' of the new quarter. 2. Annual Progress Report a. Due 365 days from the effective date of this agreement 3. Audit/Financial Report 4. 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; documPntation of inedical 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. APPENDIX "C" STATUTES (AVAILABLE ON REQUEST) l. 24 CFR Part 92, HOME Investment Partnerships Program ("HOME") 2. OMB Circular A-110 — Uniform Administrative Requirements for Grants and Agreement with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations. 3. OMB Circular A-122 — Cost Principals for Non-Profit Organizations 4. OMB Circular A-133 — Audits of Institutions of Higher Education & other Non- Profit Institutions 5. 40 USL 276 Davis-Bacon Act 6. 40 USC 327 Contract Work Hours and Safety Standard Act 7. Uniform Relocation Assistance and Real Property Acquisition Policies Act 8. Lead Based Paint Poisoning Prevention Act 9. 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 10. Augusta-Richmond County Procurement Policy 11. Conflict of Interest Affidavit. FORMS 1. Reimbursement Form Augusta Housing and Community Development Department Page 26 EXHIBIT "A" CONSTRCUTION REQUIREMENTS All construction projects shall comply with Federal, State, and Local codes and ordinances, including, but not limited to, the following: •"Standard Building Code", 2000 Edition, Southern Building Congress, International, Inc., Birmingham, Alabama. •"Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc., Birmingham, Alabama. •"Standard Mechanical Code", latest edition, Southern Building Congress, International, Inc., Birmingham, Alabama. •"National Electric Code", latest edition, National Fire Protection Association, Quiney, Massachusetts. • Model Energy Code, 1997, Council of American Building Officials •"ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice, American with Disabilities Act of 1990. • Williams-Steiger Occupational Safety and Health Act of 1970, Public Law 91-596. • 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). • Part 1926- Safety and Health Regulations for Construction. Chapter XVII of Title 29, Code of Feder�l Regulations (Federal Register, Volume 37, Number 243, December 16, 1972). • Section 106 of the National Historic Preservation Act 916 U.S.C. 470�. Project Review: All plans, specifications, work write-ups, projected cost estimates, punch lists or other means of outlining work on a particulax proj ect will be submitted in writing to AHCDD for review and approval prior to bidding. AHCDD Construction and Rehabilitation Inspectors will review these items for compliance with new construction and/or rehabilitation standards and materials used Rehabilitation Standards: All rehabilitation work will comply with the "Uniform Physical Condition Standards far 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 AHCDD Approved Contractors List. Inspections: All projects will be inspected and approved by and AHCDD Construction and Rehabilitation Inspector prior to release of the funds for that request. Augusta Housing and Community Development Department Page 27 EXHIBIT "B" PROJECT SCHEDULE OF COMPLETION AMI must provide a completed schedule of completion as Exhibit "B" with appropriate milestones within 10 to 15 days after the signing of this agreement. This schedule must be provided in sufficient detail to permit AHCDD to monitor and assess progress in connection with the performance of this agreement. Augusta Housing and Community Development Department Page 28