HomeMy WebLinkAboutCONTRACT BETWEEN AUGUSTA GA AND J & B CONSTRUCTION AND SERVICES AMOUNT OF $129,033.42CONTRACT
Between
AUGUSTA, GEORGIA
And
J & B CONSTRUCTION AND SERVICES, INC.
In the amount of
$129,033.42
One Hundred Twenty -Nine Thousand Thirty -Three Dollars & 42/100
For Fiscal Year 2012
Providing Funding From
HOME INVESTMENT PARTNERSHIPS PROGRAM
"1217 Pine Street"
THIS AGREEMENT ( "Contract "), is made and entered into as of the R day of
2012 ( "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 J & B Construction and Services, Inc., a developer, organized
pursuant to the Laws of the State of Georgia (hereinafter called "J &B ") as party in the second
part, and Asset Property Disposition, as agent authorized to administer and monitor project
(hereinafter called "APD ") as party in the third part.
WITNESSETH
WHEREAS, Augusta is 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, 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
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families through eligible uses of it HOME Program grant funds, as described in the Augusta -
Richmond County Consolidated Plan 2010 -2014; and the Year 2012 Annual Action Plan; and
WHEREAS, Augusta wishes to enter into a contractual agreement with J &B 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, J &B has been selected and approved through a solicitation process for
development partners to assist in the redevelopment of Laney Walker /Bethlehem communities.
WHEREAS, J &B has agreed to provide services funded through this contract free from
political activities, religious influences or requirements; and
WHEREAS, J &B has requested and Augusta has approved a total of $129,033.42 in loan funds
to perform 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:
A. Scope of Services
a. Project Description
ARTICLE I. SCOPE OF SERVICES
J &B agrees to utilize approved HOME funds to support project related costs
associated with 1217 Pine Street, a Single Family housing unit. This project is the
construction of an affordable housing effort which involves development and
construction of a new single family unit within the Heritage Pine Community. Under
this agreement:
i. Perform new construction services for a single family unit.
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ii. Perform all required and requested marketing 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 J &B 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 Costs
An amount not to exceed $108,658.83 in a loan shall be expended by J &B from year
2012 HOME Program funds for construction costs related to the development of an
affordable single family unit in the Heritage Pine Community. The design and
specifications must be approved by AHCDD prior to construction (Exhibit A). Funds will
be used to assist with the cost of all construction related fees. This unit will be
constructed by J &B and made available for purchase by HOME Program eligible low and
moderate income homebuyers.
The address for this project is:
i. 1217 Pine Street, Augusta , Georgia 30901
J &B may request a change of address through written request.
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b. Profit and Overhead
An amount not to exceed $19,558.59 in a grant shall be expended to J &B in support of
the project construction fees. Profit and overhead is calculated at 18% of total
construction cost of $129,033.42.
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C. Program Location and Specific Goals to be Achieved
J &B shall conduct project development activities and related services in its project area
(also known as the Heritage Pine Community) that incorporates the following
boundaries: James Brown Blvd. on the West; 12 Street on the East; Wrightsboro Road
on the South; and Laney Walker Blvd on the North and its designated geographic
boundaries approved by AHCDD.
D. Project Eligibility Determination
It has been determined that the use of HOME Program funds by J &B will be in
compliance with 24 CFR Part 92. Notwithstanding any other provisions of this contract,
J &B 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
J &B will be compensated in accordance 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 II. C. 2 of this Agreement. J &B will carry out this project with implementation
oversight provided by APD. J &B agrees to perform the required services under the general
coordination of AHCDD. In addition and upon approval by Augusta, J &B 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 J &B a maximum of $129,033.42 under this agreement
for project expenses incurred as outlined in ARTICLE I, Scope of Services,
subject to J &B compliance with all terms and conditions of this agreement
and the procedures for documenting expenses and activities as set forth in
ARTICLE V.
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b. The method of payment shall be on a reimbursement basis. The
Reimbursement Form can found in Appendix B. For invoicing, J &B 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.
c. APD will monitor the progress of the project and J &B performance on a
weekly basis with regards to the production and overall effectiveness of the
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 funds 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. J &B will make reasonable efforts to secure additional funding sources using
the $129,033.42 in HOME Program funds awarded under this agreement as
leverage to support the "1217 Pine Street ". A copy of this letter will be
attached in Appendix C.
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B. Project Financing
AHCDD will fund a hundred percent (100 %) of the total construction costs of a
single project, and seeks to provide J &B with the necessary HOME Program
Agreement. The HOME funding can be used for other project related costs as
described below:
a. J &B's construction interest will be subsidized by AHCDD via its funding
allocation at a rate not to exceed 5% for 12 months or when house sells or
whichever occurs first.
b. J &B's developer's gap will be subsidized by AHCDD.
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c. J &B'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)
d. All funding is being provided at a 0% non - amortizing loan to be repaid once
the house sales.
C. Timetable for Completion of Project Activities
J &B 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, J &B
will provide a detailed outline of critical project milestones and projected
expenditures during the course of the development project as Exhibit B. These
documents will become an official part of the contractual agreement and provide the
basis for overall project performance measurements.
a. Liquidated Damages
i. J &B shall complete this project no later than 150 Days from the
effective date of this Agreement "October 1, 2012" unless otherwise
approved by Director of AHCDD. The penalty for non - completion is
$200 a day for every day over the stated deadline.
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D. Project Budget: Limitations
J &B shall be paid a total consideration of $129,033.42 for full performance of the
services specified under this Agreement. Any cost above this amount shall be the sole
responsibility of J &B. 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 J &B.
J &B shall adhere to the following budget in the performance of this contract:
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Augusta Housing and Community Development Department
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Construction
Profit and Overhead
$108,658.83
$19,558.59
Total Project Activity Cost $129,033.42
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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 su recipients, 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 J &B (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.
ARTICLE V: DOCUMENTATION AND PAYMENT
A. This is a pay- for - performance contract and in no event shall Augusta provide advance
funding to J &B, or any subcontractor hereunder. All payments will be made to J &B.
B. J &B shall maintain a separate account and accounting process for HOME funding
sources.
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C. J &B shall not use these funds for any purpose other than the purpose set forth in this
Agreement
D. Subject to J &B compliance with the provisions of this Agreement, Augusta agrees to
reimburse all budgeted costs allowable under federal, state, and local guidelines.
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 J &B for payment 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. J &B 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 J &B
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ARTICLE VI. REPAYMENT/PROGRAM INCOME
A. Augusta will be responsible for monitoring the reuse of the proceeds.
B. Any real property under J &B 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
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value attributable to expenditures of non -HOME funds for acquisition of, or
improvement to, the property.
C. 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 J &B
D. Any HOME funds invested in a project that is terminated before completion, either
voluntarily or otherwise, must be repaid by J &B.
E. If J &B 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
J &B 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. Maximum acquisition prices [24 CFR 92.205A.2]
b. Maximum 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
f. Acquisition, Displacement and Relocation Requirements [24 CFR 92.353]
g. Environmental Review
h. Lead -based Paint Abatement
i. Property Value [Section 203(b) Limits]
To document low and moderate - income benefits required in 24 CFR 570.200(a)(2). J &B shall
maintain records that document all clients served with HOME funds. In addition, J &B 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 J &B, shall provide the information and verification described above.
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J &B shall prepare and submit reports relative to this project to Augusta at Augusta's request.
Augusta shall supply J &B 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.
J &B 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.
J &B 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, J &B 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:
b. 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.
c. Records for non - spendable personal property acquired with HOME grant
funds shall be retained for three years after its fmal 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.
In connection with the expenditure of federal funds, J &B 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 shall be filed with Augusta within one
hundred eighty (150) calendar days after the close of the J &B fiscal year. J &B is responsible for
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any cost associated with the audit. Failure to comply may result in the reallocation of funding
and termination of the contract. J &B 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: J &B'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). J &B agrees to comply with the Open Records Act should a request be
submitted to it. Further, J &B agrees to comply with the provision of the Open Meetings Law and
the following compliance measures will be taken:
a. J &B 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. J &B 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 Laney- Walker's
board meetings, except for such portions of the meeting as may be closed pursuant to
the Open Meetings Law.
d. J &B 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 Grantee
within 30 days after each meeting.
ARTICLE VIIL ADMINISTRATIVE REQUIREMENTS
J &B 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- 102 as appropriate.
This conflict of interest provisions applies to any person who is an employee, agent, consultant,
officer, or elected official or appointed official of J &B. 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
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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. J &B 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)
J &B 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 J &B. In such instances, J &B 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 J &B.
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.
Augusta Housing and Community Development Department
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ARTICLE IX. OTHER REQUIREMENTS
A. J &B agrees that it will conduct and administer HOME Program 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
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activity is to use the fair housing symbol and language in J &B's publications and/or
advertisements. (24 CFR 570.601).
B. J &B agrees that the ownership in the housing assisted units must meet the defmition of
"homeownership" in §92.2.
C. J &B 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.
D. J &B agrees that in instances in which there is construction work over $2,000 financed in
who or in part with Laney Walker Bond funds, HOME funds, and/or NSP funds under
this Agreement, J &B will adhere to the Davis -Bacon Act (40 U.S.0 276), 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 U.S.C.
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).
E. 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.
F. J &B agrees that in accordance with the National Environmental Policy Act of 1969 and
24 CFR part 58, it will cooperate with Augusta/AHCDD in complying with the NEPA
Act and regulations, and that no activities will be undertaken until notified by
Augusta/AHCDD 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. (24 CFR 570.604)
G. Consistent with the Flood Disaster Protection Act of 1973 (42 U.S.0 4001- 4128), J &B
agrees that Laney Walker Bond funds, HOME funds, and/or NSP 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
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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.
H. J &B agrees to take all reasonable steps to minimize displacement of persons as a result of
HOME assisted activities. Any such activities with HOME funds, and/or NSP 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).
I. J &B 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. J &B will in all
solicitations or advertisements for employees placed by or on behalf of J &B, state that all
qualified applicants will receive consideration for employment without regard to race,
color, religion, sex, national origin or familial status.
J. J &B will not discriminate against any employee or applicant for employment because of
race, color, religion, sex, national origin, or familial status. J &B will take appropriate
action to ensure that applicants are employed, and that employees are treated fairly during
employment, without regard to their race, color, religion, sex, national origin, or social
status.
K. J &B 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. Except as prohibited by law or the March 14, 2007 Court Order
in the case Thompson Wrecking, Inc. v. Augusta, Georgia, Civil Action No. 1:07 -CV-
019 (S.D. GA 2011). ANY LANGUAGE THAT VIOLATES THIS COURT ORDER
IS VOIDABLE BY THE AUGUSTA GOVERNMENT. J &B agrees to comply with
any federally mandated requirements as to minority and women owned- business
enterprises.
L. J &B agrees the low and moderate income persons residing within Augusta - Richmond
County and that contract for work in connection with the project be awarded to eligible
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businesses which are located in or owned in substantial part by persons residing in
Augusta - Richmond County. (24 CFR 570.697)
M. In accordance with Section 92.355 of the HOME Regulations and Section 571.608 of the
CDBG Regulations, J &B 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.
N. J &B agrees to comply with 254 CFR 570.609 with regards to the direct or indirect use of
any contractor during any period of debarment, suspension or placement in ineligible
status. No contract will be executed until such time that the debarred, suspended, or
ineligible contractor has been approved and reinstated by AHCDD.
O. In accordance with 24 CFR part 24, subpart F, J &B 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. Any publicity generated by J &B 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. In accordance with 24 CFR 85.43, if J &B 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 VII. For purposes of this
Agreement, timely expenditure of funds means J &B shall obligate and expend its funds
as designated under ARTICLE II.C.
R. J &B shall comply with all applicable laws, ordinances and codes of the federal, state, and
local governments and shall commit to trespass on any public or private property in
performing any of the work embraced by this contract. J &B agrees to obtain all necessary
permits for intended improvements or activities.
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S. J &B shall not assign any interest in this contract or transfer any interest in this same
without the prior written approval of Augusta
T. J &B agrees to comply with the prohibitions against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.0 6101 -07) and handicaps under
section 504 of the Rehabilitation Act of 1973 (29 U.S.0 794) 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. Indirect costs will only be paid if J &B has an indirect cost allocation plan approved by
the Augusta/AHCDD prior to the execution of this Contract.
V. If applicable, J &B 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).
W. All housing unites [rehabilitated, reconstructed, or newly constructed] and assisted with
HOME Program funds must, before occupancy, meet the Property Standards specified at
25 CFR 92.25. The Property Standards at 24 CFR 92.251 require that the homes
receiving funds must meet the HUD Section 8 Housing Quality Standards [HQS]. All
housing assisted under this Agreement is "new construction" by HOME Programs
definition and therefore must meet the local building codes for new housing in Augusta -
Richmond County, as applicable.
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ARTICLE X. SUSPENSION AND TERMINATION
A. In the event J &B 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 ILC, Augusta may withhold cash payments until J &B cures any breach of the
agreement. If J &B fails to cure the breach, Augusta may suspend or terminate the current
award of funds. J &B will not be eligible to receive any other funding.
B. Notwithstanding the above, J &B 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 J &B for
the purposes of offsetting the exact amount of damages once determined.
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C. In the best interest of the project and to better serve the people in the target areas and
fulfill the purposes of the Laney Walker/ Bethlehem Revitalization 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 J &B for documented committed eligible costs incurred
prior to the date of notice of termination.
D. Notwithstanding any termination or suspension of this Agreement, J &B 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:
With copies to:
Office of the Administrator
Municipal Building
530 Greene Street, Suite 801
Augusta, GA 30911
Augusta Housing and Community Development Department
925 Laney Walker Blvd., 2nd Floor
Augusta, GA 30901
J &B will receive all notices at the address indicated below:
J &B Construction and Services, Inc
3550 Gordon Highway
Grovetown, GA 30813
Augusta Housing and Community Development Department
Page 17
ARTICLE XII: INDEMNIFICATION
J &B 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, J &B
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.
ARTICLE XIII. INSURANCE AND BONDING
J &B 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, J &B 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
J &B handling or charged with the responsibility for handling funds and property pursuant to this
contract. J &B shall procure and provide, for approval by Augusta, comprehensive general
liability insurance in the amount of at least $1,000,000.00 insuring the Grantee and adding as
named insured the City of Augusta, the Mayor, Commissioners, and Augusta's officers, agents,
members, employees, and successors.
Additionally, J &B 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 J &B hereunder shall be cancelable without at least fifteen (15) days advance written
Augusta Housing and Community Development Department Page 18
notice to the Grantee. All insurance policies required hereunder or copies thereof shall 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 J &B 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.
ARTICLE XVI. DISCLAIMER
Any and all language in this agreement pertaining to HUD regulations and/or the utilizations of
HOME funding is deemed voidable when utilizing Laney Walker Bond funds in its entirety.
However, if there are any federal funds utilized by this project, including Homebuyer Subsidy
funds, this Agreement will be enforceable in its entirety.
Augusta Housing and Community Development Department
Page 19
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:
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Augusta Housing and Community Development Department
401
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AUGUSTA, GEORGIA
(Augusta)
By c_Pet‹i
David S. Copenhaver
As Its Mayor
Frederick Russell
Ad ►, strator
Chester A. Wheeler, III
Director, AHCDD
J &B CONSTRUCTION AND SERVICES, INC.
(Grantee)
Jerome Jones
As Its Owner
Page 20
APPENDIX "A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
1. Augusta through the Housing and Community Development Department agrees to
provide up to $129,033.42 in Fiscal Year 2012 HOME Program funds to J &B. These
funds will support new construction with the production of approximately 1 affordable
single - family residential unit in connection with the continuation of 1217 Pine Street.
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 J &B in accordance with the attached drawdown schedule
and budget.
3. AHCDD will provide the lots on which all new affordable homes are to be built under
this agreement and in connection with the Laney- Walker/Bethlehem Revitalization
Project.
4. With AHCDD approval, J &B may use funds under this agreement for the following
purposes:
a. To support development costs as outlined in Item 6 below.
5. 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
total 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;
Augusta Housing and Community Development Department Page 21
floods; epidemics; quarantine restrictions; strikes; freight embargoes; and
weather or unusual severity such as hurricanes, tornadoes, cyclones, and
other extreme weather conditions; and
iv. To any delay of the subcontractor occasioned by any other causes
specified in subparagraphs A and B above. Provided, however, that the
contractor promptly (within 10 days) notifies AHCDD and APD in writing
of the cause of the delay. If the facts show the delay to be properly
excusable under the terms of this contract, AHCDD shall extend the
contract time by a period commensurate with the period of authorized
delay to the completion of the work as whole; in the form of an
amendment to this contract.
6. 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 maximum per unit
amount defined at 24 CFR 92.250
b. J &B 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. J &B must make sure contractors obtain and post all permits on job site. Prior to
releasing final payment on each house, J &B must also secure a Certificate of
Occupancy from the contractor that has been issued by the Department of
Licenses and Inspections.
d. J &B 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 work
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.
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 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 22
APPENDIX "B"
REPORTING REQUIRMENTS
APD shall submit to the Grantee the following reports for the term of this Agreement.
1. Weekly Status Reports
a. Due by 10:OOam Monday morning for the previous week. Report will
contain actual /estimated costs /date, issues and concerns. MS Project
schedule will be manually updated so that APD can input data to master
schedule.
2. Monthly /Quarterly Progress & Financial Reports
a. Due the 15 of the new quarter.
3. Annual Progress Report
a. Due 365 days from the effective date of this agreement
4. Audit/Financial 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.
Augusta Housing and Community Development Department Page 23
APPENDIX "C"
FINANCING LETTER
Augusta Housing and Community Development Department
Page 24
APPENDIX "D"
STATUTES (AVAILABLE ON REQUEST)
1. 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 USC 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.
1. Reimbursement Form
FORMS
Augusta Housing and Community Development Department Page 25
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 Federal Regulations (Federal Register, Volume 37, Number 243, December 16,
1972).
• Section 106 of the National Historic Preservation Act 916 U.S.C. 470f).
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 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 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 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 26
EXHIBIT `B"
PROJECT SCHEDULE OF COMPLETION
J &B 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 27