HomeMy WebLinkAboutCONTRACT BETWEN AUGUSTA, GEORGIA AND SAND HILLS URBAN DEVELOPMENT, INC. FOR FISCAL YEAR 2017_ HOME INVESTMENT PARTNERSHIP_ 2889 PEPPERDINE DRIVE CONTRACT
Between
AUGUSTA,GEORGIA
And
SAND HILLS URBAN DEVELOPMENT,INC.
In the amount of
$90,000.00
Ninety Thousand Dollars &00/100
For Fiscal Year 2017
Providing Funding From
HOME INVESTMENT PARTNERSHIPS PROGRAM
"2889 Pepperdine Drive— Single Family "
THIS AGREEMENT("Contract"), is made and entered into as of the day of , 2018 ("the
effective date")by and between Augusta, Georgia, a political subdivision of the State of Georgia,acting
through the Housing and Community Development Department(hereinafter referred to as"AHCD")—
with principal offices at 925 Laney Walker Blvd.,2nd Floor,Augusta,Georgia 30901,as party of the first
part(hereinafter called"Augusta"),and Sand Hills Urban Development,Inc., a developer, organized
pursuant to the Laws of the State of Georgia(hereinafter called"Sand Hills") as party in the second 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, Sand Hills will be involved in HOME eligible activities; and
WHEREAS,Augusta wishes to increase homeownership opportunities and preserve and increase the
supply of affordable housing for HOME Program eligible low and moderate income families through
eligible uses of its HOME Program grant funds, as described in the Augusta-Richmond County
Consolidated Plan 2014-2018; and the Year 2017 Annual Action Plan; and
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WHEREAS,Augusta wishes to enter into a contractual agreement with Sand Hills 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, Sand Hills has been selected and approved to partner with Capital Rise as development
partners to assist in the development of the Sand Ridge Community.
WHEREAS, Sand Hills has agreed to provide services funded through this contract free from political
activities,religious influences or requirements; and
WHEREAS, Sand Hills has requested and Augusta has approved a total of$90,000.00 in loan/grant
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:
ARTICLE I. SCOPE OF SERVICES
A. Scope of Services
a. Project Description
Sand Hills agrees to utilize approved HOME funds to support project related costs associated
with 2889 Pepperdine Drive, 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 Dover Community.Under this agreement:
i. Perform new construction services for a single family unit.
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
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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 Sand Hills 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$90,000.00 in a loan/grant shall be expended by Sand Hills from year
2017 HOME Program funds for construction costs and fencing as related to the development of
an affordable single family unit in the Sand Hills Community. The design and specifications must
be approved by AHCD 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 Sand Hills and made
available for purchase by HOME Program eligible low and moderate income homebuyers.
The address for this project is:
i. 2889 Pepperdine Drive, Hephzibah, Georgia 30815
Initial:
C. Program Location and Specific Goals to be Achieved
Sand Hills Urban Development shall conduct project development activities and related services
in its project area(also known as the Sand Ridge Community)that incorporates the
following boundaries: Tobacco Road on the North, Highway 1 on the West, Willis
Foreman Road on the South and Windsor Spring Road on the East and its designated
geographic boundaries approved by AHCD.
Project Eligibility Determination
It has been determined that the use of HOME Program funds by Sand Hills will be in compliance
with 24 CFR Part 92.Notwithstanding any other provisions of this contract, SHUD shall provide
activities and services as described in the description of the project, including use of funds, its
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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
Sand Hills 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. Sand Hills will carry out this project with implementation oversight provided by
AHCD. Sand Hills agrees to perform the required services under the general coordination of AHCD. In
addition,and upon approval by Augusta, Sand Hills Urban Development,Inc.,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:
$90,000.00 loan/grant under this agreement for project expenses incurred as outlined in
ARTICLE I, Scope of Services, subject to Sand Hills compliance with all terms and
conditions of this agreement and the procedures for documenting expenses and activities as
set forth in ARTICLE V.
a. The method of payment shall be on a reimbursement basis.The Reimbursement
Form can found in Appendix B.For invoicing, Sand Hills will include documentation
showing proof of payment in the form of a cancelled check attached with its
respective invoice and completed reimbursement form that includes amount
requested,amount remaining and specific line item names that relate to the contract
budget found in Appendix A.
b. AHCDD will monitor the progress of the project and Sand Hills performance on a
weekly basis with regards to the production and overall effectiveness of the project.
c. Upon the termination of this agreement, any unused or residual funds remaining shall
revert to Augusta and shall be due and payable on such date of the termination and
shall be paid no later than thirty(30)days thereafter.
d. Funds may not be transferred from line item to line item in the project budget without
prior written approval of Augusta thru AHCDD.
e. The use of funds described in this agreement is subject to the written approval of the
U. S.Department of Housing and Urban Development.
f. This Agreement is based upon the availability of HOME Program funds.
Initial:
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B. Project Financing
AHCDD will fund a fifty percent(50%)of the total construction/development costs of a
single project.The project financing breakdown is as follows:
a. This agreement will consist of a 75 %loan and a 25 %grant which of that will be repaid
at the time of closing.
b. SHUD agrees to repay(to AHCD) 75%of funded amount at closing($ 67,500.00).
c. SHUD agrees to retain 25%of the funded amount at closing to be used as developer's fee
(16%max)&programmable funds as part of a future HOME project($22,500.00).
d. SHUD agrees to bring 50%of total construction cost of unit through the partnership of
Capital Rise. (See funding commitment letter)
e. SHUD agrees that AHCD HOME funding will be utilized at the beginning of the
construction phase of this project with J.L. Lovett Construction funding completing the
unit.
Initial: CD
C. Timetable for Completion of Project Activities
Sand Hills shall obligate the designated HOME Program funds within six months of the date
of execution of this Agreement. Based on the budget outlined in D below, Sand Hills 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. Sand Hills shall complete this project no later than 150 Days from the
effective date of the Notice To Proceed. unless otherwise approved by
Director of AHCD. The penalty for non-completion is$200 a day for every
day over the stated deadline.
Initial:
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Project Budget:Limitations
1. The Collaborative shall be paid a total consideration of$90,000.00 for full performance of the
services specified under this contract. Any cost above this amount shall be the sole responsibility
of the Collaborative. 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 The Collaborative.
2. The Collaborative shall adhere to the following budget in the performance of this contract.
Construction $ 90,000.00
$ 90,000.00
3. The per-unit subsidy requirements are described in the HOME regulations at 24 CFR 92.250. The
minimum HOME investment in rental housing is $1,000 times the number of HOME assisted
units as described in the HOME regulations at 24 CFR 92.205(c).The maximum per unit subsidy
for this project is listed below:
Section 234 Basic Limit HCP HOME Maximum Per
Bedrooms Subsidy Limit
2 79,782 240% 191,476.80
3 103,212 240% 247,708.80
ARTICLE III. RESALE/RECAPTURE PROVISIONS [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
Augusta, 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 Augusta 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.
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ARTICLE IV. TERM OF CONTRACT
The term of this Agreement shall commence on the date when this agreement is executed by Augusta and
Sand Hills Urban Development(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
Sand Hills or any subcontractor hereunder. All payments will be made to Sand Hills unless
otherwise requested by Sand Hills Urban Development.
B. Sand Hills shall maintain a separate account and accounting process for HOME funding sources.
C. Sand Hills shall not use these funds for any purpose other than the purpose set forth in this
Agreement.
D. Sand Hills will utilize program income from this project to fund future HOME project.
E. Subject to Sand Hills compliance with the provisions of this Agreement,Augusta agrees to
reimburse all budgeted costs allowable under federal, state, and local guidelines.
F. All purchases of capital equipment, goods and services shall comply with the procurement
procedures of OMB Circular A-110 "Uniform Administrative Requirements for Grant
Agreements with Institutions of Higher Education,Hospitals and other Non-Profit Organizations"
as well as the procurement policy of Augusta.
G. Requests by Sand Hills 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.
H. Sand Hills shall maintain an adequate financial system and internal fiscal controls
I. The homebuyer subsidy will be determined after the amount of the buyer's permanent mortgage
has been determined.
J. Unexpended funds shall be retained by Augusta.Upon written request,Augusta may consider the
reallocation of unexpended funds to eligible projects proposed by Sand Hills.
Initial:
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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 Sand Hills 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.
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 Sand Hills.
D. Any HOME funds invested in a project that is terminated before completion,either voluntarily or
otherwise,must be repaid by Sand Hills.
E. If Sand Hills is found to be in non-compliance with the HOME Program laws and regulations as
described in 24 CFR Part 92,the organization will be required to reimburse Augusta for the
funding associated with the noncompliance issues.
ARTICLE VII. RECORD KEEPING,REPORTING AND MONITORING
REQUIREMENTS
Sand Hills 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]
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To document low and moderate-income benefits required in 24 CFR 570.200(a)(2). Sand Hills shall
maintain records that document all clients served with HOME funds. In addition, Sand Hills shall
document each client's race, family size, annual household income, and whether or not the family is
female-headed. Augusta shall supply"Income Verification"forms which,when completed by those
clients served by Sand Hills, shall provide the information and verification described above.
Sand Hills shall prepare and submit reports relative to this project to Augusta at Augusta's request.
Augusta shall supply Sand Hills 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.
Sand Hills 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.
Sand Hills 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,
Sand Hills 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 years after its final disposition.Non-expendable personal
property means tangible personal property having a useful life of more than one year
and an acquisition cost of$300 or more per unit.
In connection with the expenditure of federal funds, Sand Hills 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 fifty(150) calendar days
after the close of Sand Hill's fiscal year. Sand Hills is responsible for any cost associated with the audit.
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•
Failure to comply may result in the reallocation of funding and termination of the contract. Sand Hills
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: Sand Hills' 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). Sand Hills agrees to comply with the Open Records Act should a request be submitted to it. Further,
Sand Hills agrees to comply with the provision of the Open Meetings Law and the following compliance
measures will be taken:
a. Sand Hills 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. Sand Hills 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 Sand Hills' board
meetings,except for such portions of the meeting as may be closed pursuant to the Open
Meetings Law.
d. Sand Hills 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 VIII. ADMINISTRATIVE REQUIREMENTS
Sand Hills 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 Sand Hills.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,
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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. Sand Hills 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)
Sand Hills 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 Sand Hills. In such instances, Sand Hills shall consult with AHCD/Augusta on
any changes that will result in substantive changes to this Agreement.All such changes shall be made via
written amendments to this Agreement and shall be approved by the governing bodies of both Augusta
and Sand Hills.
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: -53
ARTICLE IX. OTHER REQUIREMENTS
A. Sand Hills 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 activity is to use
the fair housing symbol and language in Sand Hills' publications and/or advertisements. (24 CFR
570.601).
B. Sand Hills agrees that the ownership in the housing assisted units must meet the definition of
"homeownership"in §92.2.
C. Sand Hills 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
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subject to discrimination under any program or activity funded in whole or in part with federal
funds made available pursuant to the Act.
D. Sand Hills 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, Sand Hills 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. Sand Hills agrees that in accordance with the National Environmental Policy Act of 1969 and 24
CFR part 58, it will cooperate with Augusta/AHCD 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 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. Sand Hills 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. Sand Hills 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
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basis of race, color,religion, sex or national origin. Sand Hills will in all solicitations or
advertisements for employees placed by or on behalf of Sand Hills state that all qualified
applicants will receive consideration for employment without regard to race,color,religion, sex,
national origin or familial status.
J. Sand Hills will not discriminate against any employee or applicant for employment because of
race,color,religion, sex,national origin,or familial status. Sand Hills 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. Sand Hills 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. Sand Hills 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
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, Sand Hills 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. Sand Hills 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 AHCD.
O. In accordance with 24 CFR part 24, subpart F, Sand Hills 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 Sand Hills 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
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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 Sand Hills 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 Sand Hills shall obligate and expend its funds as designated under
ARTICLE II.C.
R. Sand Hills 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. Sand Hills agrees to obtain all necessary permits for
intended improvements or activities.
S. Sand Hills shall not assign any interest in this contract or transfer any interest in this same
without the prior written approval of Augusta.
T. Sand Hills 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 Sand Hills has an indirect cost allocation plan approved by the
Augusta/AHCDD prior to the execution of this Contract.
V. If applicable,Laney-Walker 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.
Initial: CaV
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ARTICLE X. SUSPENSION AND TERMINATION
A. In the event Sand Hills 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 II.C,
Augusta may withhold cash payments until Sand Hills cures any breach of the agreement. If Sand
Hills fails to cure the breach,Augusta may suspend or terminate the current award of funds. Sand
Hills will not be eligible to receive any other funding.
B. Notwithstanding the above, Sand Hills 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 Laney-Walker 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 Sand Hills Revitalization Plan, 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 Sand Hills for documented
committed eligible costs incurred prior to the date of notice of termination.
D. Notwithstanding any termination or suspension of this Agreement, Sand Hills 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
535 Telfair Street, Suite 910
Augusta, GA 30901
Augusta Housing and Community Development Department Page 15
With copies to:
Augusta Housing and Community Development Department
925 Laney Walker Blvd.,2nd Floor
Augusta, GA 30901
Sand Hills will receive all notices at the address indicated below:
Sand Hills Urban Development, Inc.
3062 Damascus Road, Suite 10
Augusta,Georgia 30909
ARTICLE XII: INDEMNIFICATION
Sand Hills 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,Laney-Walker 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: Sti3
ARTICLE XIII. INSURANCE AND BONDING
Sand Hills 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, Sand Hills 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 Sand Hills handling
Augusta Housing and Community Development Department Page 16
or charged with the responsibility for handling funds and property pursuant to this contract. Sand Hills
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, Sand Hills 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 Sand
Hills hereunder shall be cancelable without at least fifteen(15)days advance written 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 Sand Hills 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.
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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-
t
By:___14:\if__
' Ago lt..
NI Hardie Davis, r. Date
i / 4;4P .AC Oil A4,
,. .,, t As Its Mayor
"lei' _/14i./"4 i 12/I2/4
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I, a F J. 8 ice A.Jacks;11 Date
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ATTEST: Sand Hills Urban Development,Inc.
(Grantee)
SEAL: N
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(Plain witne;.
Augusta Housing and Community Development Department Page 18
' t
APPENDIX"A"
PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES
1. Augusta through the$ 90,000.00 in Fiscal Year 2017 HOME Program funds to Sand Hills.These
funds will support new construction with the production of approximately one(1)affordable
single-family residential unit in connection with the continuation of 2889 Pepperdine Drive,
Hephzibah,GA 30815.
2. AHCD must review and approve all residential design plans,project specifications and total
development cost for each residential development project before work is commenced and before
funds can be released for payment reimbursement. Construction payments will be released to
Sand Hills in accordance with the attached drawdown schedule and budget.
3. AHCD will provide the lots on which all new affordable homes are to be built under this
agreement and in connection with the Sand Hills Urban Development Revitalization Project.
4. With AHCD approval, Sand Hills Urban Development 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,AHCD may:
i. Terminate the contractor in accordance with the"Provisions for Augusta Housing
and Community Development Department(AHCD)"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; 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 AHCD in writing of the cause of the delay. If the facts
show the delay to be properly excusable under the terms of this contract,AHCD
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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. AHCD 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. Sand Hills Urban Development must make sure contractors obtain and post all permits on
job site.Prior to releasing fmal payment on each house, Sand Hills must also secure a
Certificate of Occupancy from the contractor that has been issued by the Department of
Licenses and Inspections.
d. Sand Hills must collect progress and fmal lien releases from the contractor,
subcontractors,and material suppliers prior to making a payment to a contractor.
e. AHCD 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. AHCD may choose not to release payments if the work being performed is not
of acceptable quality to AHCD and if the house is not being built or rehabilitated in
accordance with plans and specifications,or if 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 AHCD,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 AHCD.
8. Augusta Housing and Community Development Department will deliver building lots,or vacant
buildings, free of encumbrances,and ready for building in accordance with local zoning and land
use regulations applicable to the location of the parcel being developed.
Augusta Housing and Community Development Department Page 20
APPENDIX"B"
REPORTING REQUIRMENTS
Sand Hills Urban Development,Inc. shall submit to the Grantee the following reports for the term
of this Agreement.
1. Bi-Weekly Construction Meeting
a. SHUD and contractor must attend bi-weekly Construction meeting to discuss
project throughout construction phase of project.
2. Monthly/Quarterly Progress&Financial Reports
a. Due the 15th of the new quarter.
3. Annual Progress Report
a. Due 365 days from the effective date of this agreement
4. Program Income Quarterly Report
5. Time
6. Audit/Financial Report
7. 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.
APPENDIX"C"
FINANCING LETTER
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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
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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
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.
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• 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.4700.
Project Review: All plans, specifications,work write-ups,projected cost estimates,punch lists or other
means of outlining work on a particular project will be submitted in writing to AHCD for review and
approval prior to bidding.AHCD Construction and Rehabilitation Inspectors will 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
AHCD 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.
EXHIBIT"B"
PROJECT SCHEDULE OF COMPLETION
Sand Hills Urban Development 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 AHCD to monitor and assess progress in connection with the
performance of this agreement.
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