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HomeMy WebLinkAboutRES 09-373 RESOLUTION NO. 09-373 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an agreement with Habitat for Humanity of Jefferson County in the amount of $92,398 to assist with the construction of two (2) new homes located in the Jehovah Jireh Subdivision that will be sold to eligible low/moderate income families. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 22nd day of December, 2009. �Ep,UMp -C - AW �A - Mayor Becky Ames - X HOME SUBRECIPIENT AGREEMENT between the CITY OF BEAUMONT And *HABITAT FOR HUMANITY OF JEFFERSON COUNTY* This HOME Subrecipient Agreement ("Agreement" hereinafter) is made and entered into by and between the CITY OF BEAUMONT, a Home Rule Municipal Corporation incorporated under the laws of the State of Texas ("City" hereinafter), and HABITAT FOR HUMANITY OF JEFFERSON COUNTY (HABITAT), a Texas non-profit corporation ("Habitat"hereinafter), located at 610 Trinity, Beaumont, TX 77705. WHEREAS, the City of Beaumont has received a HOME grant from the United States Department of Housing and Urban Development (HOME Program Nos. M-07- MC-48-0201 and M-08-MC-48-0201); WHEREAS, the City has the objective of providing for the development of low-to- moderate income housing for residents of the City through its Community Development Division; WHEREAS, HABITAT FOR HUMANITY OF JEFFERSON COUNTY. (HABITAT), through its express purpose as set forth in its corporate bylaws, shares this common goal with the City as a City of Beaumont approved Community Housing Development Organization("Habitat" hereinafter); WHEREAS, pursuant to the authority of Resolution Number 09-373 , passed by the Beaumont City Council on 12/22/09 HABITAT FOR HUMANITY OF JEFFERSON COUNTY (HABITAT) will enter into a contract with the City for 2007 and 2008 HOME funds totaling Ninety-two thousand three hundred ninety-eight dollars and no/100 ($92,398.00); WHEREAS, The HOME allocation of Ninety-two thousand three hundred ninety- eight dollars and no/100 ($92,398.00) will be used for the eligible project costs related to the development of up to two (2) new homes located in the Jehovah Jireh Village Subdivision. New construction will provide decent, safe and sanitary housing for eligible families; WHEREAS, the City desires to assist Habitat in providing for the development of low-to-moderate income housing through funds provided by HUD's Home Investment Partnerships Program (HOME Program); NOW, THEREFORE, FOR AND IN CONSIDERATION of the mutual purposes and obligations set forth herein, the City and Habitat covenant and agree as follows: 1 This Agreement sets forth the understanding of the parties concerning the City's HOME allocation as approved by HUD. It is the intent of this Agreement to outline what eligible activities and procedures Habitat must comply with in order to qualify for a portion of the City's HOME Habitat set aside. The parties have severally and collectively agreed, and by the execution hereof are bound, to the mutual obligations and to the performance and accomplishment of the tasks described herein. Section 1 - City's Responsibilities A. The Housing Manager, or other designated Community Development Staff, will act as liaison on behalf of the City. B. The City agrees to assume overall responsibility as the "PJ" for ensuring that the Housing Assistance programs using HOME funds are carried out in accordance with the HOME INVESTMENT PARTNERSHIPS PROGRAM. The City shall complete and provide documentation as required by HUD for program reporting requirements. C. The City agrees to pay eligible costs, up to a maximum total amount of Ninety- two thousand three hundred ninety-eight dollars and no/100 ($92,398.00) on a reimbursement basis to Habitat for eligible activities as outlined in 24 CFR 92.206 (attached hereto as Exhibit "A"), carried out within the City's jurisdictional boundaries, specifically, 2 lots located in the Jehovah Jireh Village Subdivision. Specifically, activities carried out will include a site development subsidy of up to $27,450 per home; down payment/closing costs subsidy not to exceed $14,999 per home buyer; and developer's fees of$5,000 per home upon closing for a total of no more than $47,449 per home. Habitat agrees that down payment assistance provided to home buyers will be limited to what is actually needed as evidenced by the lender's inability to extend a mortgage without said amount of down payment. All files must contain documentation to show the basis for the amount of down payment assistance provided to home buyers. Section 2 - HABITAT's Responsibilities A. The Executive Director for Habitat, or other designated Habitat staff, will act as liaison on behalf of Habitat. B. Habitat agrees to execute any and all documents requested by the City for compliance with the HOME Investment Partnership Program, as specified in 24 CFR 92.505(b) (attached hereto as Exhibit "B") and agrees to comply with all uniform administrative requirements and standards as more particularly described in OMB Circular A-110 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments). C. Habitat agrees to assure that all acquisition or rehabilitation projects will meet or exceed all written locally adopted Property Standards as well as all applicable local and state codes and other federal requirements. Texas House Bill-730 (HB-730) warranty requirements must be met through the purchase of a warranty plan with development requirements that meet or exceed those imposed by HB-730. Within ninety (90) days of the execution of this agreement, the HABITAT FOR HUMANITY OF JEFFERSON COUNTY will adopt the City's construction specifications and standards to be used on projects funded by this agreement. All floor plans must be certified as having met or 2 exceeded the Model Energy Code prior to construction. Variations from these standards 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. D. Habitat agrees to complete all acquisition, rehabilitation or new construction projects and sell all those properties to eligible low or moderate income families within two (2) years from the date of this agreement, or by federally required deadlines, whichever is sooner. For projects including acquisition for new construction, the construction must begin within one (1) year of the acquisition of the property. All construction must be properly insured. The issuance of a building permit will constitute start of construction. If construction cannot be commenced by its start date as set out in Exhibit "A", Habitat 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 Habitat will be required to deed to the City any real property provided. E. Habitat agrees that an annual audit report is a condition of funding, and that Habitat will secure an acceptable audit engagement letter for the 2009 audit report by April 30, 2010. The completed 2009 audit report will be provided to both parties by June 30, 2010. F. Habitat agrees to provide the City full and complete documentation of all eligible acquisition, materials, professional fees and labor expenses fourteen (14) calendar days prior to the requested reimbursement date. All eligible expenses must be already "paid in full" by Habitat prior to submittal to the City. The Community Development Administrator may waive this requirement to facilitate program goals and objectives. G. Habitat agrees to collect homeownership applications, determine eligibility, gather all initial data connected with these applications, and to assist the prospective homebuyer with the negotiation of permanent financing with participating lenders. Habitat agrees to ensure the long term affordability of the property as specified in the City's locally adopted Recapture Provisions (attached hereto as Exhibit "C(1)) pursuant to 24 CFR 92.254 (attached hereto as Exhibit "C"). Affordability must be enforced through the use of 2nd Lien Deeds of Trust and deed restrictions. Habitat will file copies of all applicable mortgage documents in each homebuyer's file. This involves securing, recording, and placing a copy of the recorded legal document with Recapture Provisions in each file as required by the City's policies and procedures and the HOME regulations. Habitat will also forward copies of applicable mortgage documents to the City. H. Habitat agrees to affirmatively market all properties to eligible low or moderate income families as described 24 CFR 92.351 (a) (Exhibit "D"). 1. Habitat agrees to furnish the City with information on the program participants necessary to meet HUD reporting requirements (i.e., income verifications, ethnicity, age, sex, family status, disability status and head-of-household status). This requirement applies to the initial home buyer and upon sale, any future home buyer of HOME assisted properties. Approval by the City is required prior to the applicant receiving an approval letter from Habitat. Habitat also agrees to make all files on projects/programs 3 funded by this agreement available for inspection by City staff. Habitat will report any project and/or program delays or modifications and await City approval before proceeding. Habitat will also report any instances of client fraud or program abuse to the City. J. Habitat agrees to refund all HOME funds found to have been used for ineligible and/or unapproved programs or activities. These repayments will be made within thirty (30) days of notification by the City of the ineligible expenditures. K. Habitat agrees to meet with the City to discuss progress or concerns as the need arises and at the City's request. Habitat also agrees to report on a bi-annual basis to the City on program/project status. This must be a written report of the status on recently completed, ongoing, and pre-approved programs and/or projects, and must include information for the reporting period to include the status on applicant approvals/denials; projects/programs approved; fund disbursements; project bidding information; property sales; contractor/subcontractor utilization (amounts, ethnicity, addresses, social security numbers and amounts billed and paid); use of Habitat proceeds; and other information as appropriate and required by the attached program guidelines (Exhibit "D"). Habitat agrees that the Program will be administered according to all applicable regulations and guidelines per the City of Beaumont's 2009 Action Plan (as it may be amended), program design criteria and construction standards. L. Habitat agrees to place all sales proceeds gained from this program back into its Affordable Housing Initiative Program, and more specifically, into other HOME eligible Habitat housing projects located within the jurisdictional boundaries of Beaumont for as long as Habitat is certified by the City as a Habitat. Eligible activities include (a) eligible project costs related to the development and construction of new houses including, but not limited to, lease-purchases, mortgage principal buy down, down payment assistance, closing costs, pre-paid or any other reasonable and necessary eligible related project costs, (b) Habitat Operating costs, or(c) homebuyer counseling. Habitat understands and agrees that should Habitat 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. Habitat further understands and agrees to, and shall transfer to the City, any program income, real properties, equipment, supplies and any assets acquired as a result of grant funds if Habitat becomes defunct or insolvent. M. Habitat agrees to secure the financial match requirements for M-07-MC-48-0201 and M-08-MC-48-0201 HOME funds pursuant to 24 CFR 92.218-221. The financial funding match requirement is 25% of total expenditures less Habitat Operating funds except where Match requirements are waived or reduced in areas of a presidentially declared disaster. N. The City agrees to provide Habitat with Ninety-two thousand three hundred ninety-eight dollars and no/100 ($92,398.00) of 2007 and 2008 HOME funds to be available through the City's draw process on or after the effective date of this contract. Payment shall be made directly to Habitat, upon receipt of invoices or payment vouchers from Habitat certifying that all requirements have been met. O. Habitat also understands and agrees to adhere to the City's procurement process (attached hereto as Exhibit "E"). The City shall reserve the right to investigate, examine 4 and monitor, at any time, any and all such records relating to the operations or expenditures of Habitat under this Agreement. Section 3 - General Terms A. This Agreement shall be fully executed in writing by both parties, and extend from December 23, 2009 - December 31, 2010. With agreement by both parties, this Agreement may be extended for a time specified in a jointly signed and approved term extension memorandum, not to exceed 24 months from the original effective date. B. This Agreement and the rights and obligations contained herein may not be assigned by either party. C. This Agreement has been made under, and shall be governed by, the laws of the State of Texas. The parties agree that performance and all matters related thereto shall be in Beaumont, Texas. D. This Agreement may only be amended by written instrument, approved and executed by both parties. E. The City may terminate this agreement for any reason, with or without cause, at any time after thirty(30) day written notice to Habitat. F. It is expressly understood and agreed by and between the City and Habitat that this Agreement is wholly conditioned upon the actual availability of federal HOME funds allocated to the City by the U S Department of Housing and Urban Development (HOME Program No. M-07-MC-48-0201 and M-08-MC-48-0201) and that all monies distributed to, or in behalf of the, Habitat hereunder shall be exclusively from federal monies received under said HOME Program, and not from any other monies of the City. G. This Agreement does not provide for any administrative and/or operating costs incurred by Habitat related or unrelated to carrying out this Agreement. H. The Agreement does not provide for Predevelopment costs as defined in 24 CFR Part 92.301 (attached hereto as Exhibit "F") 1. If any provision(s) of this Agreement shall be held to be invalid, illegal, or unenforceable by a court, by HUD, or other competent tribunal, the validity, legality, and enforceability of the remaining provisions shall not be impaired thereby. In such event, the parties hereby agree to use their best efforts to replace the respective provision or provisions with terms and conditions approximating the original intent of the parties and conforming in all respects with applicable law and HUD regulations and directives. J. 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. K. This written instrument 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. I 5 L. Habitat 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 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. M. No officer, employee or member of Habitat or Habitat'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 Habitat. Any willful violation of this paragraph with the knowledge, expressed or implied, of Habitat or its subcontractors, shall render this contract voidable by the City of Beaumont. N. No grants shall be made by Habitat to its directors or officers, either directly or indirectly, through family members, business partners or employees. Habitat 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 Habitat shall render this contract voidable by the City. O. Habitat covenants and agrees that its officers, members, agents, employees, program participants and subcontractors shall abide by and comply with federal, state and local laws, including all ordinances, rules and regulations of the City of Beaumont, as amended. Habitat further covenants and agrees that it will fully comply with the terms and conditions of the HOME Program, under which these funds are granted. P. Each party has the full power and authority to enter into and perform this Agreement, and the person signing on behalf of each party has been properly authorized and empowered to execute this Agreement. Q. The parties hereby acknowledge that they have read, understand, and intend to be bound by the terms and conditions contained herein. 6 HABITAT FOR HUMANITY OF JEFFERSON COUNTY Uliana Trylowsky, , Date STATE OF TEXAS § § ACKNOWLEDGMENT CITY OF BEAUMONT § This instrujpent wa_s acknowledged before me on the I day of\. � , 2010,by � LQ�i� �isu�5 , asC>Lt t DvVtk c. of 6ab,Eat tnr 144ra wc , a no - if of said orgp�ization. GWL LYNN HAIL L MY COMMISSION 2013 PINES Z Notary Public h and for the State of Texas CITY OF BEAUMONT` By. L y Z- zz - Iv Kyle Hayes, City Manager Date AT T ST: Tina Broussard, City Clerk Date 7