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HomeMy WebLinkAboutMOU AMENDMENT BETWEEN AUGUSTA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT AND COMMUNITY DEVELOPMENT COLLABORATIVE, LLC_ HOME INVESTMENT PARTNERSHIP_ OLLIE ROAD PROJECT MEMORANDUM OF UNDERSTANDING AMENDMENT BETWEEN AUGUSTA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT AND COMMUNITY DEVELOPMENT COLLABORATIVE,LLC HOME INVESTMENT PARNERSHIP PROGRAM-011ie Road Project(Phase I Bldg II) This Memorandum of Understanding(MOU)is made and entered into this_ day of .2018, ("the effective date")by and between Augusta,Georgia,acting through the Housing and Community Development Department(hereinafter referred to as"HCD")-with principal offices at 925 Laney Walker Blvd.,3rd Floor,Augusta,Georgia 30901,as party of the first part,hereinafter called "Augusta",and Community Development Collaborative,LLC,a Georgia limited partnership company,organized pursuant to the Laws of the State of Georgia, hereinafter called"The Collaborative"as party in the second part. The purpose of this MOU Amendment is to clarify the terms of the original agreement dated May 20, 2013 and re-establish the responsibilities and requirements to be assumed by Nonprofit for the construction and management of the total eight HOME units being constructed within the 011ie Road Project with HOME Investment Partnership Program Funding. Building one consists of four units and building two consists of four units. WITNESSETH WHEREAS, Augusta is qualified by the U. S. Department of Housing and Urban Development (hereinafter called HUD) as a HOME Program Participating Jurisdiction, and has received HOME Investment Partnerships Act (hereinafter called HOME or the HOME Program) funds from HUD for the purpose of providing and retaining affordable housing for HOME Program eligible families; as defined by HUD; and WHEREAS,Augusta wishes to increase rental 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 2010-2014,and the Year 2013 Annual Action Plan;and WHEREAS,The Community Development Collaborative,LLC has agreed to continue to partner with Augusta Housing and Community Development Department for the 011ie Road Project for Building II in the amount of$ 519,935.80 in HOME funds as evidenced by Contract dated May 20. 2013, which is attached. WHEREAS, this activity has been determined to be eligible HOME activity according to 24 CFR 92.504(c)(3)(ii) 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. It has been determined that the HOME funds that the Collaborative will be using will be in compliance with 24 CFR Part 92.The project has been underwritten in accordance with underwriting standards and criteria of Augusta and that the amount of subsidy provided is appropriate. Notwithstanding MOU—011ie Road Project Page 12 any other provisions of this contract, The Collaborative 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;and WHEREAS,The Collaborative has agreed to provide services funded through this contract free from political activities,religious influences or requirements;and NOW,THEREFORE,the parties of this contract for the consideration set forth below,do here and now agree to the following terms and conditions: ARTICLE I. PROJECT DESCRIPTION Nonprofit/CHDO shall provide services related to the construction and management of the 011ie Road Project located off of Barton Chapel Road. These units will be rented to eligible low to moderate renters. The Nonprofit/CHDO shall do,perform and carry out the HOME program rules and regulations in a satisfactory manner. It is the responsibility of the Nonprofit/CHDO to ensure that all supporting documentation is legitimate and valid based on the following Scope of Services: .i. Perform new construction services for 4 row townhome rental units. Project will consist of two(2)three bedroom units and two(2)two bedroom units with 2 units being accessible Perform all required and requested marketing and advertising activities;in accordance with "HOME"program"Fair Housing"regulations 4. Demonstrate the project possesses the following required components: • Evidence of Site Control • Evidence that units are occupied by low to very low-income end users and rental guidelines are followed and appropriated documentation is retained for review. ARTICLE H. TERMS OF TERMINATION A. The services of the Nonprofit/CHDO are to continue and be undertaken and completed in accordance with HOME Investment Partnership Program rules,regulations and guidelines. B. The parties agree that the Department may terminate this MOU upon the recommendation of the Director of the Augusta Housing and Community Development Department. Termination shall be effected by delivery of a Notice of Termination signed by the Director, and mailed or delivered to the Nonprofit/CHDO. C. The Department reserves the right to terminate this MOU if the Nonprofit/CHDO: a. Fails to carry out the intended HOME Program activities,and/or; b. Fails to dispose of the property in compliance with the project or program for which it was acquired. MOU—011ie Road Project Page 13 D. The Community Development Collaborative reserves the right to terminate this MOU if Augusta Housing and Community Development Department: a. Fails to carry out their responsibilities as outlined in Article IV of this agreement. b. Termination shall be effective by delivery of a 30 Day Notice of Termination signed by the Officers of Nonprofit/CHDO. ARTICLE III. KEY PERSONNEL A. Nonprofit/CHDO shall assign to this MOU the following key personnel: a. Scylance B.Scott,Jr., President b. Charlene Watkins,Secretary c. Beverly Wright,Financial.Officer ARTICLE IV. ROLES AND RESPONSIBILITIES The Community Development Collaborative,LLC has agreed to continue their partnership with Augusta Housing in the construction and the management of the 011ie Road Project. The roles and responsibilities are as follows: Augusta Housing and Community Development Department(AHCDD): - Will provide a grant to the Collaborative for all expenses related to construction. - Will provide a management fee as referenced in Article VI to the Collaborative for their service in ensuring that this project is completed and all compliance requirements are adhered to. - Will be responsible for inspecting all phases of this construction project to warrant that all work is completed in accordance to construction codes and regulations. - Will be responsible for all insurance,bonding and responsibilities of this project. - Will assist procured property management firm in recordkeeping,monitoring requirements and reporting requirements related g q to this project. Community Development Collaborative,LLC: The Collaborative shall conduct project development activities and related services in its project area that incorporates the following boundaries(also known as Barton Village: All that lot,tract or parcel of land,together with improvements thereon,if any,lying,being,and situate in the State of Georgia and County of Richmond,being known and designated as Lots No 1,2, 3,20,21,22 and 23 of The Aubern at Barton Chapel,as shown on a plat of survey recorded in the Office of the Clerk of Superior Court of Richmond County,Georgia in Plat Book 4,Page 6,reference being made to said plat for a more complete and accurate description as to metes,bounds,courses and distances of said property. MOU—011ie Road Project Page 14 Also included is the parcel listed on said Plat as Outparce1.35 Acres,which is bounded as follows: On the Northwest by Lot No.3,40.8 feet,more or less;on the Northeast by Lots 4 through 8 for 118.29 feet,more or less;on the East by Lots 9 through 11 for 66.86 feet,more or less; on the South by lands now or formerly of Ki Cheul Yu for 116.81 feet,more or less;and on the West by Barton Chapel Road,158.15 feet,more or less. Tax Map No.083-1-010-00-0. This project consist of the construction of 8 row townhome units as the site addressed as 600 011ie Road,Augusta,GA 30906. - Will work closely with AHCDD to ensure that all compliance requirements are met. - Will maintain all recordkeeping,monitoring requirements and reporting requirements related to this project. - Will certify that all pay requests are reviewed for completion and processed in a timely manner. - Will work with the procured property management company to ensure that all rental requirements are being adhered to such as rents,utility allowances and certification process. ARTICLE V. PERFORMANCE MONITORING The Department will monitor the performance of the Nonprofit/CHDO against goals and performance standards required for the HOME program.Substandard performance as determined by the Department will constitute non-compliance with this MOU.If actions to correct substandard performance are not taken by the Nonprofit/CHDO within 30 days following written notification by the Department,MOU termination procedures will be initiated. ARTICLE VI. COMPENSATION The Collaborative will be compensated in accordance with this Article VI, Compensation, that specifically identifies the use of HOME and other project funding as represented in this Agreement. The Collaborative will carry out and oversee the implementation of projects to be funded with HOME funds. The Collaborative agrees to perform the required services under the general coordination of the Augusta Housing and Community Development Department. In addition and upon approval by Augusta, The Collaborative, may engage the services of outside professional services consultants and contractors to help carry out the program and projects. A. Augusta shall designate and make HOME Project funds available in the following manner: MOU—011ie Road Project Page 15 1. Augusta agrees to pay The Collaborative,a maximum of$519,935.80 under this agreement for project expenses incurred as outlined in ARTICLE I, Scope of Services,subject to The Collaborative compliance with all terms and conditions of this contract and the procedures for documenting expenses and activities as set forth in ARTICLE V. 2. AHCD will monitor the progress of the project and The Collaborative performance on a weekly basis with regards to the production of housing units and the overall effectiveness of the project. 3. Upon the termination of this contract, any unused or residual funds remaining shall revert to Augusta, shall be due and payable on such date of the termination, and shall be paid no later than thirty(30)days thereafter. 4. Funds may not be transferred from line item to line item in the project budget without the prior written approval of Augusta. 5. The use of funds described in this contract is subject to the written approval of the U. S. Department of Housing and Urban Development. 6. The Augusta Housing and Community Development Department(AHCD)will fund hundred percent (100%) by utilizing HOME funding therefore no subsidy layering will be required for the total construction cost of this single project, and seeks to provide the Collaborative with the necessary HOME Program Agreement. All 8 units within this project are HOME assisted units. The HOME funding can be used for other project related costs as described below: a. Collaborative management fee in the amount of$41,552.20 b. All funding is being provided as a grant and must be utilized for project related costs. Use of Funds: HOME funds shall be used by The Collaborative for the purposes and objectives stated in this Agreement. The use of HOME funds for any other purpose(s) is not permitted. The following summarizes the proposed uses of HOME Program funds under this agreement: 1. Construction An amount not to exceed$519,935.80 in a grant shall be expended by The Collaborative from Year 2012 HOME funds for construction costs related to the development of 4 row townhome rental units in the Barton Chapel 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 the following items: permits, footings, foundation, floor framing, exterior wall framing, rough plumbing, rough HVAC, rough electric and all other MOU—011ie Road Project Page 16 construction related fees. These units will be constructed by The Collaborative and rented to eligible low and very-low income persons. 2. Management Fees An amount not to exceed$41,552.20 in a grant shall be requested by The Collaborative from Year 2012 HOME funds to support the cost of management fees for the project. Fees will be provided at various intervals of the project. 20% When Notice to Proceed is given. 30% Construction is 50%complete. 20% Construction is 100%complete. 30% When the Certificate of Occupancy is received. The Collaborative shall obligate the designated HOME within six months of the date of execution of this Contract. Based on the budget outlined in D.2 below, The Collaborative will provide a detailed outline of critical project milestones and projected expenditures during the course of the development project in the form provided in Exhibit C. These documents will become an official part of the contractual agreement and provide the basis for overall project performance measurements. 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: Bedrooms Section 234 Basic Limit HCP HOME Maximum Per Subsidy Limit 2 79,782 240% 191,476.80 3 103,212 240% 247,708.80 Article VII.QUALIFICATION AS AFFORDABLE HOUSING-RENTAL[24 CFR 92.252] The HOME-assisted units in a rental housing project must be occupied only by households that are eligible as low-income families and must meet the following requirements to qualify as affordable housing. The affordability requirements also apply to the HOME-assisted non-owner-occupied units in single family rental housing purchased with HOME funds in accordance with 92.252. a. Rent limitation. HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lessor of: 1. The fair market rent of existing housing for comparable units in the area as established by HUD under 24 CFR 888.111;or MOU—011ie Road Project Page 17 2. A rent that does not exceed 30 percent of the adjust income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD, with adjustments for number of bedrooms in the unit. The HOME rent limits provided by HUD will include average occupancy per unit and adjusted income assumptions. 3. PJ must approve the property's rent structure at project lease-up, and must approve all rent increases during the affordability period. Any changes in rents for occupied units are subject to terms of the tenant's lease. b. Additional Rent Limitation: In rental projects with five or more HOME-assisted rental units, twenty (20) percent of the HOME-assisted units must be occupied by very low income families. c. Income Limits: HUD requires that every HOME-assisted rental unit be occupied by a household that is a low-income. This project requires that at least 20 percent of the units be occupied by households that are very low-income. 1. The maximum amount of annual gross income that a household may earn to qualify for a HOME-assisted unit is called the income limit. Income limits are issued by HUD for low income households and very low income households on an annual basis. HCD will provide the updated limits to the Collaborative annually. 2. The HOME income targeting requirements requires for initial occupancy and for properties with more than five units: a. Initial Occupancy: For each annual HOME allocation,at initial project lease up at least 90 percent of the households assisted through the rental-housing program must have incomes at or below 60 percent of area median income. The remaining units must have incomes that do not exceed 80 percent of the area median income. b. Properties with Five or More HOME-Assisted Units: For rental properties with five or more HOME-assisted units, HOME require deeper income targeting to serve needier residents. At least 20 percent of the HOME assisted rental units be occupied by families who have annual gross incomes at or below 50 percent of area median income. These units must be rented at no more than the LOW HOME Rents. The remaining units can be rented at no more than the HIGH HOME Rents. 3. Income Certification: Collaborative will utilize the web based income calculator tool to determine whether a family's anticipated annual gross income is below the applicable HOME income limit. The tool is available on HUD's HOME Program web page at: http://www.jud.gov/offices/cpd/affordablehousing/training/calculate r/calculator.cfm in combination with the Internal Revenue Service (IRS) definition of adjusted gross income as defined for reporting on the IRS Form 1040. 4. Tenant Income-Eligibility Recertification: Each tenant household's income must be examine every year during the affordability period to determine if the household continues to be income-eligible to occupy its HOME-assisted unit. Source documentation must be used to verify the income initially and every sixth year during. MOU—011ie Road Project Page 18 a. Once the tenant household's anticipated annual gross income is recertified,a comparison with the recent HOME income limits for the type of unite the household occupies will be made. If the tenant's income has increased above the HOME income limits the property will be temporarily out of compliance. The household rent will be adjusted as soon as permissible by the lease agreement. The over- income tenant must pay the lesser of: i. The rent amount payable under state or local law; ii. 30 percent of the tenant's monthly adjusted family income d. The HOME Program does set affordability periods based on the amount of HOME funds provided as the HOME rules require assisted properties to remain affordable for a specific period of time,depending on the level of HOME funds invested. e. Therefore, as a recipient of the HOME Program, you must comply with the HOME Program's period of affordability. The affordability for this project is twenty (20) years.The 20 year affordability period begins the day of final Certificate of Occupancy and/or filing of Deed Restrictions. During the n-year affordability period, you must ensure that the units remain affordable. f. AHCDD is required to place certain restrictions on assisted rental properties in order to help preserve affordable housing in our communities through a deed restriction filed in Superior Court of Richmond County 24 CFR 92.252(e)(1)(ii).At which time designated as the conclusion of the full twenty-year period. The property will remain in the name of the Augusta Land Bank Authority as the official landholder for Augusta,Georgia. g. All funding is being provided as a grant with a lien against the property for no less than twenty(20)years as a guarantee of tenant affordability and assurance of HUD regulations under 92.252.At which time designated as the conclusion of the full twenty- year period. The property will remain in the name of the Augusta Land Bank Authority as the official landholder for Augusta,Georgia. h. Project Requirements 1. A written lease of at least 1 year is required and must be approved by Augusta. Lease is to comply with State and local tenant-landlord laws. 2. Prohibited lease terms: Any provision of the Lease which falls within the classifications below shall not apply and not be enforced by the Landlord. a) Confession of Judgment.Consent by the Tenant to be sued,to admit guilt,or to a judgment in favor of the landlord in a lawsuit brought in connection with the Lease. MOU—011ie Road Project Page 19 b) Treatment of Property.Agreement by the Tenant that the Landlord may take or hold the Tenant's property,or may sell such property without notice to the Tenant and a court decision on the rights of the parties. c)Excusing the Landlord from Responsibility.Agreement by the Tenant not to hold the Landlord or Landlord's agent legally responsible for any action or failure to act,whether intentional or negligent. d) Waiver of Legal Notice.Agreement by the Tenant that the Landlord may institute a lawsuit without notice to the Tenant. e) Waiver of Court Proceedings for Eviction.Agreement by the Tenant that the Landlord may evict the Tenant Family(i)without instituting a civil court proceedings in which the Family has the opportunity to present a defense,or(ii) before a decision by the court on the rights of the parties. f) Waiver ofJury Trial.Authorization to the Landlord to waive the Tenant's right to a trial by jury. g) Waiver of Right to Appeal Court Decision.Authorization to the Landlord to waive the Tenant's right to appeal a court decision or waive the Tenant's right to sue to prevent a judgment from being put into effect. h) Tenant Chargeable with Cost of Legal Actions Regardless of Outcome of the Lawsuit.Agreement by the Tenant to pay lawyer's fees or other legal costs whenever the Landlord decides to sue,whether or not the Tenant wins. 3. Termination of tenancy requires 30 days'notice and for good cause. 4. Must provide a thirty day written notice before implementing rent increases. 5. Management company is to provide tenant selection criteria, including notice of reasons for rejection,to be approved by Augusta. 6. Mandatory fees for services for people with special needs are prohibited and any optional fees must be approved by Augusta. ARTICLE VIII ADMINISTRATIVE REQUIREMENTS A. Conflict of Interest The Collaborative agrees to comply with the conflict of interest provisions contained in 24 CFR 92.356 (0 as appropriate. This conflict of interest provision applies to any person who is an employee, agent, consultant, officer, or elected official or appointed official of The Collaborative. No person described above who exercises, may exercise or has exercised any functions or responsibilities with respect to the HOME activities supported under this contract; or MOU—011ie Road Project Page 110 who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain any financial interest or benefit from the activities, or have a financial interest in any contract, sub-contract, or agreement with respect to the contract activities, either for themselves or those with whom they have business or family ties, during their tenure or for one year thereafter. For the purpose of this provision,"family ties",as defined in the above cited volume and provisions of the Code of Federal Regulations, include those related as Spouse, Father, Mother, Father-in-law, Mother-in-law, Step-parent, Children, Step-children, Brother, Sister, Brother-in-law, Sister-in-law, Grandparent, Grandchildren of the individual holding any interest in the subject matter of this Contract. The Collaborative 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 Contract. B. Augusta may,from time to time,request changes to the scope of this contract and obligations to be performed hereunder by The Collaborative. In such instances,The Collaborative shall consult with HCD/Augusta on any changes that will result in substantive changes to this Contract. All such changes shall be made via written amendments to this Contract and shall be approved by the governing bodies of both Augusta and The Collaborative. C. Statutes,regulations,guidelines and forms referenced throughout this Contract are listed in Appendix A and are attached and included as part in parcel to this Contract. ARTICLE IX. OTHER REQUIREMENTS A. Fair Housing The Collaborative agrees that it will conduct and administer HOME activities in conformity with Pub.L.88-352,"Title VI of the Civil Rights Act of 1964",and with Pub.L.90-284"Fair Housing Act",and that it will affirmatively further fair housing.One suggested activity is to use the fair housing symbol and language in The Collaborative publications and/or advertisements.(24 CFR 570.601). Non-Discrimination and Accessibility The Collaborative 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. Reasonable accommodations will be offered MOU—011ie Road Project Page 111 to all disabled persons who request accommodations due to disability at any time during the application,resident selection and rent up process. Enforcement Provisions 1. AHCD will conduct yearly on-site inspections of assisted units to verify they are maintained in standard condition and meet applicable housing quality standards to include ongoing maintenance requirements. 2. AHCDD is required to place certain restrictions on assisted homebuyer properties in order to help preserve affordable housing in our communities through a deed restriction filed in Superior Court of Richmond County 24 CFR 92.252(e)(1)(ii).At which time designated as the conclusion of the full twenty-year period. The property will remain in the name of the Augusta Land Bank Authority as the official landholder for Augusta,Georgia. 3. Breach of Agreement or default:Breach occurs when a party to a contract fails to fulfill his or her obligation as described in the contract,or communicates an intent to fail the obligation or otherwise appears not to be able to perform his or her obligation under the contract. Any obligations by either party not being upheld by said agreement will constitute as noncompliance and result in termination of agreement. HCD will notify Collaborative if the agreement is in default or has been breached in any manner. 4. Repayment of HOME Funds: If property does not meet the affordability requirements for the period of affordability,funding will be paid back with nonfederal funds. D. Labor Standards 1. General: The Collaborative agrees that in instances in which there is construction work over $2,000 financed in whole or in part with HOME funds under this Contract, The Collaborative will adhere to the Davis-Bacon Act (40 USC 276), as amended, which requires all laborers and mechanics working on the project to be paid not less than prevailing wage-rates as determined by the Secretary of Labor. By reason of the foregoing requirement, the Contract Work Hours and Safety Standards Act (40 USC 327 et seq.) also applies. These requirements apply to the rehabilitation of residential property only if such property contains eight or more units.(24 CFR 92.354) 2. Labor Matters: No person employed in the work covered by this contract shall be discharged or in any way discriminated against because he or she has filed any complaint or instituted or caused to be instituted any proceeding or has testified or is about to testify in any proceeding under or relating to the labor standards applicable hereunder to his or her employer. (24 CFR 92.354) MOU—011ie Road Project Page 112 E. Environmental Standards The Collaborative agrees that in accordance with the National Environmental Policy Act of 1969 and 24 CFR part 58,it will cooperate with Augusta/HCD in complying with the Act and regulations,and that no activities will be undertaken until notified by Augusta/HCD that the activity is in compliance with the Act and regulations. Prior to beginning any project development activity,an environmental review must be conducted by the Augusta-Richmond County Planning Department pursuant to(24 CFR 92.352). F. Flood Insurance Consistent with the Flood Disaster Protection Act of 1973 (42 USC 4001-4128),The Collaborative agrees that HOME funds shall not be expended for acquisition or construction in an area identified by the Federal Emergency Management Agency(FEMA)as having special flood hazards(representing the 100-year floodplain). Exceptions will be made if the community is participating in the National Flood Insurance Program or less than a year has passed since FEMA notification and flood insurance has been obtained in accordance with section 102(a) of the Flood Disaster Protection Act of 1973. G. Displacement and Relocation The Collaborative agrees to take all reasonable steps to minimize displacement of persons as a result of HOME assisted activities. Any such activities assisted with HOME funds will be conducted in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970(URA)and the Housing and Community Development Act of 1974(24 CFR 92.353). H. Non-Discrimination in Employment The Collaborative 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. The Collaborative will in all solicitations or advertisements for employees placed by or on behalf of The Collaborative;state that all qualified applicants will receive consideration for employment without regard to race, color,religion,sex,national origin or familial status. 1. Employment and Business Opportunities The Collaborative agrees that low and moderate income persons residing within Augusta- Richmond County;and that contracts for work in connection with the project be awarded to eligible business concerns which are located in or owned in substantial part by persons residing in Augusta-Richmond County- (24 CFR 570.697). AIM MOU—011ie Road Project Page 113 J. Lead-Based Paint In accordance with Section 92.355 of the HOME Regulations the Collaborative 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 with regard to notification of the hazards of lead- based paint poisoning and the elimination of lead-based paint hazards. K. Debarred.Suspended or Ineligible Contractor The Collaborative agrees to comply with 24 CFR Part 24 with regards to the direct or indirect use of any contractor during any period of debarment,suspension or placement in ineligibility status. No contract will be executed until such time that the debarred,suspended or ineligible contractor has been approved and reinstated by HCD. L. Drug Free Workplace In accordance with 24 CFR Part 24,subpart F,The Collaborative agrees to administer a policy to provide a drug-free workplace that is free from illegal use,possession or distribution of drugs or alcohol by its beneficiaries as required by the Drug Free Workplace Act of 1988. M. Publicity Any publicity generated by The Collaborative for the project funded pursuant to this Contract, during the term of this Contract or for one year thereafter,will make reference to the contribution of Augusta-Richmond County in making the project possible.The words"Augusta- Richmond County Department of Housing and Community Development"will be explicitly stated in any and all pieces of publicity;including but not limited to flyers,press releases, posters,brochures,public service announcements,interviews,and newspaper articles. N. Timely Expenditure of Funds In accordance with 24 CFR 85.43,if The Collaborative fails to expend its grant funds in a timely manner,such failure shall constitute a material failure to comply with this Contract and invoke the suspension and termination provisions of ARTICLE X. For purposes of this Contract,timely expenditure of funds means The Collaborative shall obligate and expend its funds as designated under ARTICLE II. (B). 0. Compliance with Laws and Permits The Collaborative shall comply with all applicable laws,ordinances and codes of the federal, state,and local governments and shall commit no trespass on any public or private property in performing any of the work embraced by this contract.The Collaborative agrees to obtain all necessary permits for intended improvements or activities. MOU—011ie Road Project Page 114 P. Assignment of Contract The Collaborative shall not assign any interest in this contract or transfer any interest in the same without the prior written approval of Augusta. Q. Equal Employment Opportunity The Collaborative agrees to comply with the prohibitions against discrimination on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C.6101-07)and implementing regulations at 24 CFR Part 146 and the prohibitions against otherwise qualified individuals with handicaps under section 504 of the Rehabilitation Act of 1973 (29 U.S.C.794)and implementing regulations at 24 CFR Part 8. For purposes of the emergency shelter grants program,the term dwelling units in 24 CFR part 8 shall include sleeping accommodations. R. Affirmative Action The Collaborative will not discriminate against any employee or applicant for employment because of race,color,religion,sex,national origin,or familial status.The Collaborative will take affirmative action to insure that applicants are employed,and that employees are treated during employment,without regard to their race,color,religion,sex,national origin,or The Collaborative social status.Such action shall include,but not be limited to the following: employment,upgrading,demotion or transfer;recruitment or advertising;lay-off or termination,rates of pay or other forms of compensation;and selection for training,including apprenticeship.The Collaborative 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.The Collaborative agrees to make efforts to encourage the use of minority and women-owned business enterprises in connection with HOME supported activities. S. Affirmative Marketing Plan The Collaborative and managing agent shall adopt the affirmative marketing procedures and requirements as specified in the HOME Final Rule 92.351 for The 011ie Road Project. T. Religious Influence The Collaborative will not discriminate against any employee or applicant for employment on the basis of religion and will not give preference of persons on the basis of religion.The Collaborative will not discriminate against any person applying for shelter on the basis of religion.The Collaborative will provide no religious instruction or counseling,conduct no religious worship or services,engage in no religious proselytizing and exert no religious influence in the provision of shelter and other eligible activities funded by this grant. MOU—011ie Road Project Page 115 U. Indirect Costs Indirect costs will only be paid if The Collaborative has indirect cost allocation plan approved by the Department of Housing and Urban Development prior to the execution of this Contract. V. Travel If applicable,The Collaborative 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 Construction Requirements-SEE APPENDIX C All housing units [rehabilitated,reconstructed or newly constructed]and assisted with HOME Program funds must,before occupancy,meet the Property Standards specified at 25 CFR 92.251 [the HOME Program Regulations]. The Property Standards at 24 CFR 92.251 require that the units receiving HOME Program funds must meet all local codes for new construction. In the absence of local codes,properties must meet the HUD Section 8 Housing Quality Standards [HQS]. All units assisted under this Contract is"new construction"by HOME Program definition and therefore must meet the local building codes for new housing in Augusta-Richmond County,as applicable. All units must meet applicable property standards upon project completion. Article X.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 Augusta,GA 30911 With copies to: Augusta Housing and Community Development Department 925 Laney Walker Blvd.,3rd Floor Augusta,GA 30901 Collaborative will receive all notices at the address indicated below: Community Development Collaborative,LLC MOU—011ie Road Project Page 116 1378 Laney Walker Blvd. Augusta,Georgia 30901 Article XI. The Collaborative 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 Contract. By execution of this agreement,The Collaborative 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 Contract,or should the terms of this Contract in any way be the subject of litigation in any court of laws or equity. It is agreed that the laws of the State of Georgia shall exclusively control same. The parties hereto do agree to bind themselves, their heirs, executors, administrators, trustees, successors and assigns,all jointly and severally under the terms of this Contract. ARTICLE XII. INSURANCE AND BONDING Collaborative 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,Collaborative 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 Collaborative handling or charged with the responsibility for handling funds and property pursuant to this contract.Collaborative 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,Collaborative 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 Collaborative 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. MOU—011ie Road Project Page I 17 ARTICLE XIII. 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 The Collaborative beyond the term of this Contract. ARTICLE XIV. 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 Contract shall be deemed to be inserted herein and this Contract 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 Contract shall forthwith be amended to make such insertion. ARTICLE XV. ANTI-LOBBYING To the best of the jurisdiction's knowledge and belief: No Federal appropriated funds have been paid or will be paid,by or on behalf of it,to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress,an officer or employee of Congress,or an employee of a Member of Congress in connection with the awarding of any Federal contract,the making of any Federal grants If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency,a Member of Congress, an officer or employee of Congress,or an employee of a Member of Congress in connection with this Federal contract,grant,or cooperative agreement,it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying,"in accordance with its instructions;and It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. MOU-011ie Road Project Page X18 ARTICLE XVI. COUNTERPARTS ' This Agreement is executed in two (2)counterparts-each of which shall be deemed an original and together shall constitute one and the same Agreement with one counterpart being delivered to each party hereto. IN WITNESS WHEREOF,the parties have set their hands and seals as of the date first written above: ATTEST: AUGUSTA.GEORGIA (Augusta) i"?' 15* - ,, By: 4 v a,. '.' „jn Hardie s,Jr. Date ' � l As Its Mayor t , , 4 ll',. li�/i S Len. :enfer v W n Cler pItiunm#sslati ' I a 1 �,.��44 om j • Janice A.Jai ��n Date T ; �''' .,,.„.40**** dminist ` t Ctt lttft�` 0'14%k ri-)'allTS' Nhorned'" -r,Jr. Date i -ctor,AH 0 ATTEST: COMMUNITY DEVELOPMENT COLLARD ' 'FIVE.LLC (Grantee) I!%► By: �m►i �/ ► taiskb Its: F uttOri,N"T Date Its: Date (Plain witness) Date MOU-011ie Road Project Page 119 APPENDIX A Statutes: 24 CFR Part 92,HOME Investment Partnerships Program ("HOME") OMB Circular A-110 - Uniform Administrative Requirements for Grants and Agreement with Institutions of Higher Education,Hospitals,and Other Non-Profit Organizations OMB Circular A-122-Cost Principles for Non-Profit Organizations OMB Circular A-133-Audits of Institutions of Higher Education&other Non-Profit Institutions 40 USC 276 Davis-Bacon Act 40 USC 327 Contract Work Hours and Safety Standard Act Uniform Relocation Assistance and Real Property Acquisition Policies Act Lead Based Paint Poisoning Prevention Act 24 CFR 35 - HUD Requirements for Notification, Evaluation and Reduction of Lead-Based Paint Hazards in Housing Receiving Federal Assistance and Federally-Owned Residential Property being sold,Final Rule Augusta-Richmond County Procurement Policy Conflict of Interest Affidavit Forms: Reimbursement Form Contract and Subcontract Activity Report Monthly Report Quarterly Report Annual Report MOU—011ie Road Project Page X20 APPENDIX B REPORTING REQUIREMENTS The Collaborative shall submit to the Grantee the following reports for the term of this agreement and maintain applicable documentation for the full term of the affordability period.Augusta reserves the right to change reporting requirements,as needed as well as the right to review records and reports for the public,HUD,IG or any other interested party as deemed appropriate. 1. Monthly/Quarterly Progress &Financial Reports Due the 15th of the month for each new quarter. 2. Annual Progress Report(January 16th)each year until 2037Audit/Financial Report by April 30th each year until 2037 3. Contract & Subcontract Activity Report Due on April 5, 2013, October 5, 2013,and April 5,2014 4. Rent and Occupancy Report due by June 30th each year until 2037 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; Rental housing application, worker order requests, inspection reports, payment history, pest control log, violation report; and any other document that will provide proof of needed service(s)and subsequent provision of such service(s)as allowed under this contract 6. Collaborative shall establish and maintain an Affirmative Marketing file to hold advertisements, flyers and other public information. Must also keep records of its activities in implementing the affirmative marketing plan, including other community outreach efforts and its annual analysis. and 7. Collaborative shall keep up-to-date records based on census data, applications, surveys about community residents, applicants, residents of the project, and records about tenant selection or rejection. MOU-011ie Road Project Page X21 APPENDIX C CONSTRUCTION REQUIREMENTS 1. All construction projects shall comply with Federal, State, and local codes and ordinances, including,but not limited to,the following: A. "Standard Building Code", 2000 Edition, Southern Building Congress, International, Inc., Birmingham,Alabama. B. "Standard Plumbing Code", latest edition, Southern Building Congress, International, Inc., Birmingham,Alabama. C. Standard Mechanical Code, latest edition, Southern Building Congress, International, Inc., Birmingham,Alabama. D. "National Electric Code", latest edition, National Fire Protection Association, Quincy, Massachusetts. E. Model Energy Code, 1997,Council of American Building Officials. F. "ADA Accessibility Guidelines for Buildings and Facilities", Department of Justice,American with Disabilities Act of 1990". G. Williams-Steiger Occupational Safety and Health Act of 1970,Public Law 91-596. H. Part 1910 - Occupational Safety and Health Standards, Chapter XVII of Title 29, Code of Federal Regulations (Federal Register,Volume 37,Number 202,October 18, 1972). I. Part 1926 - Safety and Health Regulations for Construction, Chapter XVII of Title 29, Code of Federal Regulations (Federal Register,Volume 37,Number 243, December 16, 1972. J. Section 106 of the National Historic Preservation Act(16 U.S.C.470f). 2. Eligible Contractors:Any contractor desiring to bid on HOME projects may apply for inclusion on the AHCD Approved Contractor List.Applications will be processed and either approved or disapproved within 10 working days. Under no circumstances will barred, disapproved, or otherwise ineligible contractors be allowed to bid on federally funded projects. 3. 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 use. 4. Change Orders: Change orders are a part of doing business in, but will be managed by written request to AHCD for approval. No one can give a verbal change order on site. Documentation must be submitted and approved by Program Manager and Director of HCD. 5. Retainage for 10%of each draw will be withheld until all the work is complete. MOU—011ie Road Project Page 122 6. Property Standards: 92.251(a)(1) requires new construction projects to meet State and local codes,ordinances,and zoning requirements..In the absence of an applicable State or local code for new construction,HOME-assisted projects must meet the International Code Council's (ICC's) International Residential Code or International Building Code,whichever is applicable to the type of housing being developed. §92.251(a)(2)incorporates or specifies additional standards: • Accessibility requirements as applicable,in accordance with Section 504 of the Rehabilitation Act,the Americans with Disabilities Act,and the Fair Housing Act.These requirements are not new. • Disaster mitigation standards,in accordance with State and local requirements or as established by HUD,where they are needed to mitigate the risk of potential disasters (such as earthquakes,hurricanes,flooding,and wildfires).This is a new requirement. §92.251(a)(iv)and(v)adds requirements to improve project oversight for new construction. HCD must: • Review and approve written cost estimates,construction contracts,and construction documents. • Conduct construction progress and final inspections to ensure that work is done in accordance with the applicable codes,the construction contract,and construction documents. 7. Inspections. The project will be inspected and approved by an AHCD Construction and Rehabilitation Inspector prior to release of the funds for that project. 8. HOME-assisted rental housing must meet the re propertyuired h applicablestandards tthe time of the housing quality project completion and must be maintained in accordance standards throughout the affordability period. MOU—011ie Road Project Page X23 EXHIBIT"A" PROJECT DEVELOPMENT AND MANAGEMENT PROCEDURES 1. Augusta through the Housing and Community Development Department agrees to provide up to $1,109,472.00 in Year 2012 HOME Investment Partnerships Funds to The Collaborative. These funds will support new construction with the production of approximately 8 affordable rental row townhome units. 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 The Collaborative in accordance with the attached drawdown schedule and budget. 3. With AHCDD approval, The Collaborative may use HOME funds under this contract for all the following purposes: a. To support development costs as outlined in Item 6 below. 4. Completion Delays,Remedies,and Penalties A. If the Contractor fails to complete the work within the time frame specified in the contract,plus any authorized delays,AHCDD may 1. Terminate the contractor in accordance with the "Provisions for Augusta Housing and Community Development Department(AHCDD)"clause of this contract. 2. Assess liquidated damages of fifty dollars ($50.00) 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: 1. 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 or war,National Defense,or other National,State or City/County emergency. MOU—011ie Road Project Page X24 2. To any acts of the Owner that hinder the progress of the work 3. To causes not reasonable foreseeable by the parties to this contract at the time of 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; as of the public enemy; acts of another contractor in the performance of some other contract with the owner; fires; epidemics; quarantine restrictions; strikes; freight embargoes; and weather of unusual severity such as hurricanes, tornadoes, cyclones,and other extreme weather conditions;and 4. 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 in writing of the cause of the delay. If the fact 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 identified on a project- by-project basis in EXHIBIT B. In no case will this amount exceed the maximum per unit amount as defined at 24 CFR 92.250. b. The Collaborative 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. The Collaborative must make sure contractor obtains and posts all permits on job site. Prior to releasing final payment on each unit, the Collaborative must also secure a Certificate of Occupancy from the contractor that has been issued by the Department of Licenses and Inspection. d. The Collaborative must collect progress and final lien releases from the contractor, subcontractors and material suppliers prior to making a payment to a contractor. MOU—011ie Road Project Page 125 e. HCD may continually inspect each unit for contract compliance and to determine the percent of completion prior to processing a draw request and releasing payment. HCD may elect to make up to five (5) payments per unit. HCD may choose not to release payments if the work being performed is not of acceptable quality to HCD and if the unit is not being built or rehabilitated in accordance with plans and specifications, or if project is not on schedule. MOU-011ie Road Project Page 126 EXHIBIT B: ESTIMATED PER UNIT AND/OR TOTAL DEVELOPMENT COSTS PROJECT ADDRESS: NEIGHBORHOOD TYPE DEVELOPMENT: New Construction Rehabilitation LOT SIZE: NO.OF BEDROOMS: [ ]4 [ ]3 []2 [ ]1 NO.OF BATHROOMS: [ ]4 [ ]3 []2 [ ]1 S.F.HEATED SPACE: LAND,CONSTRUCTION&SOFT COST:ESTIMATES Per S.F. Cost Land and Construction Costs Property Acquisition Site Preparation General Construction-Contract Amount Contingency Sewer Tap Water Meter Landscaping Fencing Grading Aluminum Mini-Blinds Alarm System Termite Treatment Other -Specify Total Estimated Land&Construction Costs Per S.F.Cost MOU—011ie Road Project Page 127 Soft Costs Appraisal Title Search Survey Plans,Specs,A&E Real Estate Commission Advance on Non-Profit Developer Fee Temporary Utilities Yard Maintenance during Sale Period Property Taxes Builders Risk Insurance Construction Interest on Bank Loans Closing Cost Other-Specify Total Estimated Soft Costs Per S.F.Cost DEVELOPMENT COST SUMMARY PROPOSED DEVELOPMENT COSTS SF PROPOSED SALE PRICE SF NON-PROFIT FUNDS SF HOME FUNDS REQUESTED SF PROJECTED HOME SUBSIDY SF 1 MOU—011ie Road Project Page X28 EXHIBIT"C" PROJECT SCHEDULE OF COMPLETION THE COLLABORATIVE MUST PROVIDE A COMPLETED SCHEDULE OF COMPLETION AS EXHIBIT C- WITH APPROPRIATE PROJECT MILESTONES WITHIN 10 TO 15 DAYS AFTER SIGNING THIS CONTRACT. THIS SCHEDULE MUST BE PROVIDED IN SUFFICIENT DETAIL TO PERMIT HCD TO MONITOR AND ASSESS PROGRESS IN CONNECTION WITH THE PERFORMANCE OF THIS CONTRACT. A SAMPLE SCHEDULE IS PROVIDED BELOW tart date 9/2 :/2014'' 9/30/2014. • Excavation' 10/25/2414 10/29/2014 4, Concrete ' 11/1/2014 '"';':-11/13/201'+ 12 .' �r�k�aekfill:; 11,/;13/2414 11/15/2014 2 ; Fraln�ng " , 10/25/2014 12/5/2014 41 Roof it/19/2014 Plumbing:. 10/29/20.14 12/x/2014 a 41 i Windows 11/22/2014 12/1.5/2014 23 HVAC 11/29/2014 12j o/20 4 21 lectrical; 12/10/2014a 12/22/2014 House wrap 12/27/2014 12/3.0/2014 3 Insulation ` 12/3/2014 :12/21/20143 18 Drywall 1/3/2015.,, 1/23/2015 2Q: Exterior stone 1/x/2015 ;1/17/2015 14' error ase vunr • 1/4/2015 1./13/2015 9 Cabinets1/18/2015. 3/6/2015. 4 Plumbing-hang inks 2/16/2015 2/23/201;5 7 MOU—011ie Road Project Page ( 29 Interiordoors 2/25/2015 3/9/2015 ;12 1�+[rllwork' 2/15/2015 2/17/2615 2 Interior p inting 2/28/2015 4/14/2015 .45 Sc edule ttfler:.' 2/28/2015 = 3/10/2015 1i Interior doors ang/4 hardware 5/3/2015 5/13/2015 10 Appliances 5/2/2015 `5/3/2015 .1 Plumbing:' 5/.2/2015 5/5/2015 3 Plectricl 5/3/201.5 5/11/2015 0} Ralhrcoom�l ss . 5/9/2015 5/13/2015 ' NAL Ins ections 5/2/2015 5/2/2015 0 r E:. Wrapn /rvl an n 5/9/2015 6/5/2015 Com l to"' 6/1/2015 6/1/2015 ',0 i