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HomeMy WebLinkAboutRES 97-271 RESOLUTION NO. q"/c) 7I BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to enter into a contract with the Statewide Consolidated Community Development Corporation (SCCDC), in the amount of Twenty- eight Thousand and Five-Hundred ($28,500) dollars from the 1997 HOME Grant funds. The contract is substantially in the form attached hereto. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of��� 1997. 1 - Mayor - CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program No. M-97-MC-48-0201); WHEREAS, pursuant to the authority of Resolution Number , passed by the Beaumont City Council on , 1997, the Statewide Consolidated Community Development Corporation, Inc. (SCCDC) will enter into a contract with the City for HOME funds totaling TWENTY-EIGHT THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($28,500); WHEREAS, the HOME allocation of TWENTY-FIVE THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($25,500) will be used for the financing, planning, design, construction and other cost related to the development of one (1) new home in the Charlton-Pollard Neighborhood. New construction will provide decent, safe and sanitary housing for eligible families. Funds may be used for home buyer's assistance to include mortgage principal buy down, closing cost, pre-paids or any eligible project costs. WHEREAS, THREE THOUSAND AND N0 1100 DOLLARS ($3,000) of grant funds will be used for a development fee paid upon the completion and sale of the home. WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. provides various services to eligible families of the City of Beaumont, Jefferson County, Texas that enable such families to obtain a suitable place to reside; WHEREAS, the Statewide Consolidated Community Development Corporation, Inc. will secure the financial match requirements for the M-97-MC-48-0201 HOME grant. The financial funding match requirement totals Three Thousand Five Hundred Sixty-three Dollars and no/100 ($3,563). 1 NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenant, promises, and agreements contained therein, the City of Beaumont, hereinafter referred to as "City", acting by and through Ray A. Riley, its duly authorized City Manager, and the Statewide Consolidated Community Development Corporation, Inc., hereinafter referred to as "Grantee", acting by and through Robert Jones, its duly authorized Chairman, do hereby covenant and agree as follows: 1. Grantee, located at 1395 College Street, shall use the Federal 1997 HOME grant funds, herein provided, to provide down payment and closing cost assistance to eligible families. Grantee covenants and agrees to expend federal grant funds in accordance with 24 CFR Part 92 (as now in effect and as may be amended from time to time), which is incorporated by reference and constitutes part of the agreement. It is expressly understood and agreed by Grantee that this contract and the procurement authorized and provided for hereunder have as their purpose or goal to provide decent, safe and sanitary housing units to eligible families. Grantee agrees to do all things necessary under this contract to complete the program set out in "Exhibit A" attached hereto. Grantee will adhere to the Charlton-Pollard Neighborhood New Construction Design Criteria as shown in "Exhibit B" attached hereto. 2. It is understood and agreed that in no event shall the total distribution of federal grant funds made to or in behalf of the Grantee pursuant to this agreement exceed the total sum of TWENTY-EIGHT THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($28,500). 3. The City agrees to provide Grantee with TWENTY-EIGHT THOUSAND FIVE HUNDRED AND N01100 DOLLARS ($28,500) of 1997 HOME grant funds to be available through the City's draw process on or after the effective date of this contract. Grantee agrees and understands that this contract shall terminate on June 30, 1998. Payment shall be made by the U.S. Treasury, who will disburse 1997 HOME funds (wire transfer) through Cash Management Information System (CM/I) directly to the City, who will make payments upon receipt of invoices or payment vouchers from Grantee certifying that all requirements have been met. Grantee 2 understands and agrees that project activities (construction) must be committed (an acceptable Project Set-up Report is entered into the CM/I) by May 30, 1998. Failure to comply with the aforementioned commitment will jeopardize funding. The Grantee understands that all grant monies awarded may be terminated for cause or convenience. It is expressly understood and agreed by and between the City and Grantee that any and all program income will be used by Grantee for (a) financing, planning, design, construction and other cost related to the development and construction of new houses in the Charlton Pollard Neighborhood and (b) for home buyer's assistance to include, but not limited to lease-purchase, mortgage principal buy down, closing cost, pre-paids or any other eligible expenses. Grantee further agrees that any grant funds remaining after this agreement expires will revert to the City of Beaumont. 4. If construction cannot be commenced by its start date as set out in "Exhibit A": SCCDC shall notify the City in writing at least 30 days prior to the commencement date of the specific nature of the events that prevent the commencement of construction. The City shall either approve a new commencement date or deny the request for extension. The decision of the City's representative shall be final. If a new start date is not approved funds allocable to the structure will be removed from the contract and SCCDC will be required to deed to the City any real property provided. The home to be constructed under this contact will meet or exceed the design criteria and specifications as set out in "Exhibit B". Variations from "Exhibit B" should be approved in writing by the City's representative. Quality and affordability shall be the criteria used to determine whether a requested variance will be approved. 5. Grantee understands and agrees that should Grantee become defunct or insolvent, any and all grant funds on hand and any accounts receivable attributable to the use of grant funds shall transfer to the City of Beaumont. 3 Grantee further understands and agrees to and shall transfer to the City of Beaumont any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Grantee becomes defunct or insolvent. 6. It is expressly understood and agreed by and between the City and Grantee that this agreement is wholly conditioned upon the actual availability of federal HOME grant funds under the United States Department of Housing and Urban Development (HOME Program No. M-97- MC-48-0201) and that all monies distributed to or in behalf of Grantee hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. 7. Grantee agrees to keep accurate records to document its adherence to applicable federal regulations and all "other federal requirements", along with documentation and records of all expenditures of said HOME Program funds. Grantee further understands and agrees to comply with the applicable requirements and standards of OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments), said provisions being incorporated herein by reference. The Grantee also understands and agrees to adhere to the City's procurement process. The City shall reserve the right to investigate, examine and audit, at any time, any and all such records relating to the operations or expenditures of Grantee under this Agreement. The SCCDC will provide an acceptable audit engagement letter for the 1997 audit report to the City of Beaumont by January 31, 1998. The completed 1997 audit report will be provided to the City by April 30, 1998. The audit fee will be paid directly to the auditor from other City funds. Failure to complete the audit report by April 30, 1998 may result in contract termination. The SCCDC will provide an acceptable audit engagement letter for the 1998 audit report to the City of Beaumont by January 31, 1999. The completed 1998 audit report will be provided to the City of Beaumont by April 30, 1999. The audit fee will be paid directly to the auditor from other City funds. 4 8. Grantee covenants and agrees to fully cooperate with the City in monitoring the effectiveness of the expenditure of grant funds and the City shall have access at all reasonable times to the offices, premises and records of Grantee in regard to the administration of this Contract. 9. Grantee shall operate hereunder as an independent contractor and not as an officer, agent, servant or employee of the City. Grantee shall have exclusive control of the program and all persons involved in same subject only to the terms of this agreement and shall be solely responsible for the acts and omissions of its officers, members, agents, servants, employees, subcontractors, program participants, licensees and invitees. It is expressly understood and agreed that, other than those people who receive wages on a regular basis from Grantor, that no officer, member, agent, servant, employee, subcontractor, licensee, invitee of Grantee nor any program participant hereunder is in the paid service of the City. It is also expressly understood and agreed that Grantor will provide technical assistance to Grantee in the furtherance of its program. 10. Grantee hereby covenants and agrees, in consideration for the funds herein provided to provide decent, safe and sanitary housing to an eligible family of the City of Beaumont, Jefferson County, Texas by constructing a new home in the Charlton-Pollard Neighborhood for sale. It is understood that Grantee adheres to HOME affordability requirements. 11. No officer, employee or member of Grantee or Grantee's subcontractors shall have a financial interest, direct or indirect, in this contract or the monies transferred hereunder, or be financially interested, directly or indirectly, in any contract relating to the operations conducted by it, nor in any contract for furnishing services or supplies to Grantee. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee or its subcontractors, shall render this contract voidable by the City of Beaumont. 5 12. No grants shall be made by Grantee to its directors or officers, either directly or indirectly, through family members, business partners or employees. Grantee agrees that no HOME funds shall be used, either directly or indirectly, for religious purposes. Any willful violation of this paragraph with the knowledge, expressed or implied, of Grantee shall render this contract voidable by the City of Beaumont. 13. Grantee covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with all Federal, State and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Grantee further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program under which these funds are granted. 14. The provisions of this agreement are severable and if for any reason a clause, sentence, paragraph, or other part of this agreement shall be determined to be invalid by a court or federal or state agency, board or commission having jurisdiction over the subject matter thereof, such invalidity shall not affect the other provisions which can be given effect with the invalid provision. 15. The failure of the City to insist upon the performance of any term or provision of this agreement or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 16. This written instniment and attachments constitute the entire agreement by the parties hereto concerning the matter performed hereunder and any prior or contemporaneous, oral or written agreement which purports to vary from the terms hereof shall be void. 17. Grantee covenants and agrees to hold harmless the City and its officers, agents, servants and employees, from and against any and all claims or suits for property loss or damage and 6 personal injury, including death to any and all persons, or whatever kind of character whether real or asserted, arising out of or in connection with the execution, performance, attempted performance or non-performance of this contract and agreement and the operations, activities and services of the program described herein, whether or not caused, in whole or in part, by alleged negligence of officers, agents, servants, employees, contractors, or sub-contractors of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in Beaumont, Jefferson County, Texas, this day of A.D., 19 THE CITY OF BEAUMONT ATTEST: By: Ray A. Riley Patrice Fogarty City Manager City Clerk THE STATEWIDE CONSOLIDATED COMMUNITY DEVELOPMENT CORPORATION, INC. ATTEST: By: Robert Jones Leon Jake Campbell Chairman Secretary-Treasurer 7 "EXHIBIT A" PROJECT BUDGET I. Eligible project costs for construction $25,500 of one (1) new home in the Charlton- Pollard Neighborhood II. Eligible development fee 3,000 TOTAL PROJECT BUDGET PROJECT SCHEDULE 1. Construction of the home will begin on or before January 31, 1998. 2. Construction will be completed on the home by May 30, 1998. 3. The home will be closed and occupied by a low income family on or before June 30, 1998.